IDFC MF to revise dynamic bond fund’s asset allocation, category from April 30

IDFC Mutual Fund will revise asset allocation and category of IDFC Dynamic Bond Fund with effect from April 30, the company stated in an addendum.

The revision comes after Securities and Exchange Board of India’s guidelines on October 6, where it had mandated fund houses to harmonise all existing and future schemes into five broad categories and 36 sub-categories for ease in investing.

Revisions are as follows:

PARTICULARS EXISTING PROVISION REVISED PROVISION
Category An open-ended income scheme An open-ended dynamic debt scheme investing across duration
Asset Allocation 10-100 percent in money market and debt instruments with residual maturity of less than one year.

0-90 percent in debt instruments with maturity above one year.

0-100 percent in debt securities including government securities and securitised debt and money market instruments.

0-10 percent in units issued by real estate and infrastructure investment trusts.

The notice further stated that the scheme can invest up to 20 percent in securities lending and also engage in credit default swaps. Unit holders who do not agree with the proposed changes, can exit from the scheme between March 28 and Apr 27, without paying any exit load. All other features of the scheme will remain the same.moneycontrol


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