IDFC Mutual Fund revises classification of equity funds

IDFC Mutual Fund has revised the classification of six schemes namely– IDFC Infrastructure Fund, IDFC Dynamic Equity Fund, IDFC Tax Advantage (ELSS) Fund, IDFC Nifty ETF, and IDFC Sensex ETF with effect from March 22. The fund house has revised the classification to comply with the new guidelines laid down by the Securities and Exchange Board of India.

The regulator had directed mutual funds to categorise all existing and future schemes into five broad categories and 36 sub-categories to bring uniformity and standardisation across schemes.

Subsequently, IDFC Focused Equity Fund will be classified as an open-ended equity scheme investing in maximum 30 stocks with multi-cap focus, while IDFC Infrastructure Fund will come under the category of an open-ended equity scheme investing in infrastructure sector. IDFC Dynamic Equity Fund will be categorised as an open-ended dynamic asset allocation fund. At present, these three schemes are classified under open-ended equity schemes.

IDFC Tax Advantage (ELSS) Fund will be classified as an open-ended, equity-linked savings scheme with a statutory lock- in-period of three years and tax benefit as against an open-ended equity-linked savings scheme earlier. The two open-ended exchange-traded funds–IDFC Nifty ETF, and IDFC Sensex ETF will feature under the open-ended schemes tracking Nifty 50 Index, and S&P BSE Sensex Index, respectively. All other features of the schemes remain unchanged.