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| Home > Offerings > Hybrid Funds > IDFC Monthly Income Fund |
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| IDFC Monthly Income Plan (MIP) is a hybrid mutual fund scheme that invests in both debt and equity markets. The main objective of an MIP is to blend regular income from debt instruments to the capital appreciation potential of equity. The allocation in equity will be around 20% of the net assets of the scheme. |
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| Investment objective |
| The primary objective of Scheme is to generate regular returns through investment primarily in debt oriented Mutual Fund schemes (such as Income and Liquid funds). The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity oriented MF schemes. Monthly Income is not assumed and the same is subject to availability of distributable surplus |
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| The Fund of funds structure provides an edge over regular funds structures as creation of a separate debt and equity portfolio for MIPs is typically sub-optimal and the FOF structure allows them to directly participate in these asset classes by investing in the frontline equity/ debt funds that offer scale benefits. A fund of fund manager can also switch between themes easily. For example within the debt universe, the fund manager can move from long duration to short duration by switching the fund exposure rather than selling and rebuilding the securities portfolio. |
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| IDFC Monthly Income Plan - NFO starts on 11th Jan 2010 and closes on 9th Feb 2010. |
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