IDFC Emerging Businesses Fund – Direct-Growth NAV & Expense Ratio [Complete Details]

The IDFC Emerging Businesses Fund is an equity fund that invests in fast-growing businesses across sectors. The fund’s objective is to offer investors capital appreciation by providing exposure to some of India’s most promising small and medium enterprises (SMEs). IDFC has a strong track record of investing in very high-growth businesses, and this fund offers investors an opportunity to participate in the country’s rapidly expanding economy.

Investors seeking exposure to India’s high-growth SME segment should consider investing in the IDFC Emerging Businesses Fund. The fund targets companies with a turnover of Rs. 100 crore or more, and has a portfolio comprising around 50 companies. Investments spread across technology, manufacturing, consumer goods, and financial services. IDFC believes that these businesses have the potential to grow at a much faster pace than the overall economy and offer compelling investment opportunities.

What is the IDFC emerging businesses fund?

IDFC mutual fund is an emerging businesses fund that invests in small and medium-sized companies. The fund aims to provide investors with growth and income by investing in a diversified portfolio of companies.

The fund has a minimum investment of Rs 5,000 and an exit load of 1%. The fund is managed by IDFC Asset Management Company and has been in operation since 25/02/2020.

On September 30, 2022, the fund had assets under management (AUM) of Rs 1,505 crore. The top holdings of the fund as of September 30, 2022, were Shaily Engineering Plastics Limited (3.6%), Metro Brands Limited (3.08%), Radico Khaitan Limited (2.93%), Kajaria Ceramics Limited (2.81%), and Carborundum Universal Limited (2.71%).

Main objectives of the IDFC fund

The IDFC emerging businesses fund has three objectives.
The first is to promote the growth of small and medium enterprises in India.
The second is to provide seed capital and venture capital for early-stage companies.
By investing in small and medium enterprises, the fund aims to support the development of India’s economy as a whole. In doing so, it seeks to create jobs and spur economic growth.
The Idfc emerging businesses fund regular plan is essential to the government’s efforts to promote inclusive growth.

Reasons to Invest in the IDFC emerging businesses fund

The Idfc emerging businesses fund is an excellent option for investors seeking exposure to up-and-coming companies in India.
The fund invests in various sectors, including healthcare, information technology, and consumer goods. While the risks are higher than investing in more established companies, the potential returns are also much higher.

The fund has a strong track record, delivering an annual return of 34.22% since its inception in 2020. For investors looking to take advantage of India’s economic growth, the Idfc emerging businesses fund is an excellent option.

How can you invest in the IDFC Emerging Businesses Fund?

IDFC Emerging Businesses Fund is an open-ended equity mutual fund scheme. Investments in small and mid-cap stocks offer superior returns but are also associated with higher risk. Since its inception, it has given a CAGR of 34.22%.

The scheme aims to provide long-term capital appreciation by investing predominantly in equities, a basket of equity-related instruments, and equity-linked securities of small companies that are relatively small in size but have the potential to generate high growth.

The scheme follows a bottom-up approach while stock selection. The project started on 25 February 2020 and is benchmarked against S&P BSE 250 Smallcap. The minimum investment amount is Rs 5000, with multiples of Rs 100 after that. There is no entry load but an exit load of 1% if redeemed one year from the date of allotment.

This fund is suitable for investors with five years plus investment horizon and willing to take moderate to high risk for higher returns than large-cap funds over the long term. The emergence of IDFC First Bank and improved clarity on its asset quality issues, along with attractive valuations, make this a compelling fund at current levels. Presence across multiple business segments enhances earnings visibility while improving returns profile.

Asset quality pressure, though, remains elevated; we believe an improving economic environment will support recovery in delinquencies, especially in the project lending portfolio going ahead. We have increased our target price to Rs 35 (from Rs 32 earlier), implying a 25% upside from current levels”. You can start SIP in this fund with just Rs 500 per month or make a lumpsum investment with as little as Rs 5,000″.
The fund invests in healthcare, education, financial services, and consumer goods. To invest in the IDFC Emerging Businesses Fund, you can contact IDFC AMC or any of its distributors or Invest online via Upstox as well (Recommended)

What are the benefits of investing in the IDFC Emerging Businesses fund?

The Idfc emerging businesses fund is a great way to invest in small and medium-sized businesses.

By investing in these businesses, you are not only helping them to grow, but you are also diversifying your portfolio.
These businesses often have high growth potential, so your investment may give you a higher return than traditional investments.

By investing in small businesses, you are supporting the local economy and helping to create jobs.
These factors make the Idfc emerging businesses fund an attractive option for investors.

FAQ’s on IDFC Emerging Businesses Fund

Is there a minimum investment amount for the fund?

The minimum application amount is Rs 5000, multiples of Rs 100 after that.

How often is the portfolio reviewed and adjusted?

The portfolio turnover ratio for the scheme was 34.22% for the year ending March 31, 2020. This indicates that the portfolio is regularly reviewed and adjusted. However, it is always important to remember that past performance does not imply future returns. Conducting your research and studying the fund’s holdings regularly is essential.

Is this fund suitable for all investors?

No, as with any investment, each individual’s risk tolerance and investment goals should be taken into consideration. This fund follows a bottom-up approach and invests primarily in small and medium-sized companies, which may lead to higher risk and potential for higher returns. This may not be suitable for all investors. It is essential to consider your financial situation before making any investment decisions.

Conclusion

The IDFC Emerging Businesses Fund is an excellent option for investors looking to diversify their portfolio and invest in small and medium-sized businesses with the potential for high growth. However, it is essential to keep in mind that investing in these types of companies may involve higher risk. Always conduct your research and make sure that the fund aligns with your individual investment goals and risk tolerance.