HT Bureau
Guwahati, Oct 6: IDFC Mutual Fund announced the launch of the IDFC Transportation and Logistics Fund, an open-ended equity scheme investing in the transportation and logistics sector, intending to benefit from the multi-year growth opportunity in the mobility services sector. The New Fund Offer opens on, October 4 and closes on October 18, next.
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Highlighting the rationale behind launching the IDFC Transportation and Logistics Fund, Vishal Kapoor, CEO, of IDFC AMC said, “Rapid urbanisation is accelerating growth in personal mobility requirements. Additionally, powerful enablers like a strong demand-led recovery cycle and margin improvement provide visibility for strong earnings growth for the transportation and logistics sector. Growth in this sector is expected to be driven by rising aspirations, enhanced infrastructure, volume surge, and export-driven opportunities. The IDFC Transportation and Logistics Fund will be actively managed by a team that has a strong pedigree and expertise in leveraging the vast opportunities across this attractive value chain.”
Daylynn Pinto, fund manager for IDFC Transportation and Logistics Fund added, “The Transportation and Logistics sector consists of 16 sub-sectors, providing a wide spectrum of investment opportunities and facilitating effective portfolio diversification. NSE data as of August 2022 indicates that the Nifty Transportation and Logistics Index has outperformed the Nifty 500 Index in 8 out of 11 calendar years from 2012 to 2022 (YTD Aug’22), demonstrating the potential of this sector to provide relatively higher returns over the long term.
The IDFC Transportation and Logistics Fund has a bottom-up stock selection approach with investment across market cap segments, facilitating focus on the business-specific aspects and aligning the execution with a medium to long-term view. The fund invests predominantly in companies that are part of the Transportation and Logistics sector with the flexibility to allocate up to 20% of its net assets to international businesses and companies of other sectors that have a compelling risk-reward opportunity.”
