IDFC Mutual Fund has announced plans to launch a Fund of Funds (FoF) investing in US equities. JP Morgan US Growth Fund will be the primary fund.
The new fund offer period will start from July 29 till August 12. However, the FoF is an open-ended fund and therefore it will be open for subscription beyond that time period as well.
The minimum application during new fund offer is rupees 5,000 with a minimum systematic investment plan (SIP) which starts from rupees 1,000.
There is an exit load of 1 per cent in case of return within a year while the minimum expense ratio is 2.25 per cent.
JP Morgan US Growth Fund has a 60 to 90 stock portfolio, large-cap focused with some mid-cap exposure with USD 1.8 billion in assets as on June 2021.
The JP Morgan Growth fund has a global exposure and 40 per cent of the revenue of the primary equities contributed by countries outside of the Uinted States. The fund performance has transcend the benchmark from 2014 till now except in one year.
JP Morgan US Growth Fund is slightly underweight for few sectors that includes Technology, Health, Consumer Discretionary, Telecom, Energy and Real estate. It is overweighted in financials and industrials sectors.
Alphabet, Apple, Microsoft, Facebook and Amazon among others are the fund’s top 10 holdings.
IDFC Mutual Fund says that the fund of funds is suitable for investors who are seeking to create wealth over a long period as well as for the ones who are looking to expand returns through investing in a fund which will mainly invest in the overseas fund.