Below are the basic information and statistics of the fund:
Key Objective: The key objective of the fund is to generate capital appreciation and long-term growth of the money invested in various schemes. Institutional investors can also invest in this scheme for diversification of their portfolio by introducing potentially high return equity investments. It is an open-ended equity linked savings scheme i.e. the fund is open for investment/redemption by all investor groups round the year and it mainly invests in equities and equity-linked products.
Inception: IDBI Equity Advantage Fund was launched by Mr. V. Balasubramanian on 10th September 2013 and it has operated as an open-ended tax saver ELSS scheme from the date of inception.
Entry Load: According to a circular sent out by SEBI, there will be no entry load for any Mutual Fund scheme including the IDBI Equity Advantage Fund. The upfront fee on the investment will be paid by the investor to IDBI based on various factors such as services.
Exit Load: This is applicable for both normal transactions and SIP (Systematic Investment Plans). The allotment date for every installment will be considered for levying exit load at the time of scheme redemption.
Risk Level: IDBI Equity Advantage Fund is associated with risks which also includes the loss of principal amount. Since equity holdings of IDBI Equity Advantage Fund in mid-cap companies are the highest, therefore risk level will be high. The fund is associated with company related specific risks, financial stress, change in technology. The shares are prone to price change on a daily basis.
Redemption: Investors looking to redeem their investment has to file for it with the broker or AMC (Asset Management Company) through which the investment was made. Applications received before the cutoff timing will be processed at the closing value of the same day. On the other hand, applications received after the cutoff timing will feature closing value of the next working day.
Fund Management: IDBI Capital Markets Securities Ltd is a renowned Fund Management Company in India for Mutual Funds, Provident Funds, and Pensions. IDBI Capital is registered since 1998 with SEBI (Securities Exchange Board of India).
Tax Benefits: This fund has tax benefits as per the current tax laws and is subject to current conditions and tax laws. The IDBI Equity Advantage Fund provides tax benefits Under Section 80C of Income Tax Act 1961 and is an ELSS (equity linked savings scheme) mutual fund.
Plan Options: IDBI Equity Advantage Fund offers Regular Plan and Direct Plan for investment purposes. According to a SEBI circular, the investors are provided with a different Direct Plans to help them make direct investments, wherein the investments are not made through a distributor.
The direct investment plan has lower distribution costs, commissions, etc as the investment is made directly with the IDBI AMC. The IDBI Equity Advantage Fund features different NAV for the sub-options under Regular and Direct Plans. The direct plan and the regular plan shall be managed under a common portfolio.
Restrictions on Redemption: Such restrictions, which may be imposed periodically, are only allowed after approval from both the AMC Board and the Trustee Company. These restrictions are imposed immediately after intimating SEBI. The restrictions are imposed if there is any systematic crisis due to extraordinary circumstances that constrict market liquidity or otherwise hamper efficient functioning of markets.
Dividend Policy: Dividend Declaration under dividend options in the scheme is subject to availability of the distributable surplus and at the discretion of the AMC (Asset Management Company) and Trustee Company and no returns are assured under this scheme.