IDBI Mutual Fund: Dynamic Bond Fund

Debasish Mallick, MD, IDBI AMC

IDBI Mutual Fund, the mutual fund arm of IDBI Bank, on recently announced the launch of IDBI Dynamic Bond Fund, a diversified, actively managed, open ended debt scheme that would invest in debt and money market instruments to generate optimum risk-adjusted returns.

The NFO (New Fund Offer) which is open for subscription up to February 14, 2012 comes at a time when debt is the flavour of the season and retail interest in debt investment is catching up.

Mr. Debasish Mallick, MD and CEO, IDBI AMC said, “The fund has not set any limit for investment in any particular debt or money market instrument so as to take advantage of the emerging market situations, while moving investments from one instrument to another in a dynamic manner.” This flexibility in portfolio composition will generate optimum risk-adjusted returns making this scheme relevant under all market consitions"

The fund will allocate 100% of the inflows in government securities, treasury bills, PSU bonds and corporate bonds a cross various maturities. However, the fund will invest in high-quality paper that also have enough liquidity in the market.

The investment objective of the scheme is to generate income, while maintaining liquidity and asset quality through active management of a port
folio comprising of debt and money market instruments.

The fund is benchmarked to CRISIL Composite Bond Fund Index.

Investors will have to pay 1% for exit within one year from the date of allotment. The allotment in the scheme after the closure of the NFO will be done on February 22.

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