Indiabulls Equity Hybrid Fund – Worthy To Tactically Allocate Your Money?
Dec 03, 2018

Author: Aditi Murkute

Indiabulls Equity Hybrid Fund (IEHF) is the latest offering from Indiabulls Mutual Fund. It is an open-ended aggressive hybrid fund that will invest predominantly in equity and equity related instruments, along with significant allocation to debt and money market instruments.  

The fund has the freedom or flexibility to invest across market capitalisation and would not be restricted to any one segment, which means apart from large caps, the fund is expected to hold significant allocation to mid and small caps as well. Therefore, from the risk-returns point of view, the risk would be on the higher side. This makes Indiabulls Equity Hybrid Fund suitable for investors who have a stomach to bare high risk and have an investment time horizon of at least 5 years.

[Read: Why Comparing Returns to Risk Is More Meaningful!]

Table1: NFO Details of IEHF

An open-ended hybrid scheme investing predominantly in equity and equity related instruments Category Aggressive Hybrid Fund
Investment Objective To generate periodic returns and long-term capital appreciation from a judicious mix of equity and debt instruments.

However, there can be no assurance that the investment objective of the scheme will be achieved.The Scheme does not assure or guarantee any returns.
Min. Investment Rs 500 and in multiples of Re 1 thereafter Face Value Rs 10 per unit
Plans  • Regular
• Direct
Options • Growth option (default)
• Dividend (Payout & Reinvestment)
Entry Load Not Applicable Exit Load For exit within 12 months from the date of allotment:
  • For 10% of investment – Nil
  • For remaining investments - 1.00%
  • For exit after 12 months from the date of allotment – Nil
Fund Manager Mr Sumit Bhatnagar (Head -Equity), Mr Malay Shah (Head- Fixed Income) and Mr Veekesh Gandhi (Co-Fund Manager –Equity) Benchmark Index CRISIL Hybrid 35+65 - Aggressive Index
Issue Opens November 22, 2018 Issue Closes: December 06, 2018
(Source: Scheme Information Document)

How will the Indiabulls Equity Hybrid Fund allocate its assets?

Under normal circumstances, the scheme will allocate its assets as follows:

Table 2: IEHF's Asset Allocation

Indicative allocation
(% of Net Assets)
Risk Profile
(High/ Medium/ Low)
Equity and Equity related securities* 65% to 80% High
Debt, Money Market instruments, Cash and equivalent 20% to 35% Medium
* The Scheme may invest up to a maximum of 50% of its net assets in Derivatives
(Source:Scheme Information Document)

What will be the Investment Strategy?

To achieve the objective of capital appreciation over longer periods of time, Indiabulls Equity Hybrid Fund will invest mainly in equity and equity related instruments, along with some portion into debt.

Equity Investments:

The Scheme will have reasonably well-diversified Portfolio without being overly diversified. The investment environment, valuation parameters, return ratios, competitive positioning and other investment criteria will determine the sector allocation, stock weights and the investment style.

The AMC will construct the portfolio using a bottom-up approach and will have the flexibility to invest across the market capitalization. The fund managers will conduct an in-house research in order to identify investable ideas. They will evaluate appreciation potential of individual stocks from:

  • A fundamental perspective,

  • Assess industry and company fundamentals,

  • Robustness of the business model,

  • Sustainability of moat,

  • Valuations,

  • Quality of management,

  • Corporate governance standards etc.

Debt Investments:

The Scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments. Investment in Debt securities and Money Market Instruments will be as per the limits in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. The investment management team will decide the actual percentage of investment in various fixed income securities after considering the prevailing political conditions, the economic environment (including interest rates and inflation), the performance of the corporate sector and general liquidity and other considerations in the economy and markets. The investment management team is allowed full discretion to make a sale and purchase decisions within the limits established.

  • The fund endeavours to invest in quality debt instruments across maturities based on the interest rate outlook,

  • The fund will be actively managed,

  • The scheme invests in debt instruments such as government securities, corporate debentures and bonds, quasi-government bonds and money market instruments.

Who will manage Indiabulls Equity Hybrid Fund?

Indiabulls Equity Hybrid Fund will be managed by Mr Sumit Bhatnagar (Head - Equity), Mr Malay Shah (Head - Fixed Income) and Mr Veekesh Gandhi (Co-Fund Manager - Equity).

Mr Sumit Bhatnagar has completed his MBA from the University of Toronto and has CFA (USA) to his credit. He has over 15 years of experience in Banking & Capital Markets. Prior to joining Indiabulls, he has worked with SEBI for close to 4.5 years in the Investment Management Department. He has also worked in Banking Industry in retail and corporate assets.

Mr Sumit has been with Indiabulls since February 2009 and manages Indiabulls Blue Chip Fund, Indiabulls Arbitrage Fund, Indiabulls Value Discovery Fund and Indiabulls Tax Savings Fund

Mr Veekesh Gandhi has completed his M. Com from Mumbai University and has an MBA in Finance & Accounting from the University of Hartford in the USA to his credit. He has more than 10 years of experience in the field of finance. He was earlier associated with DSP Merrill Lynch Ltd, SSKI Securities and Motilal Oswal Securities, wherein he was responsible for tracking the BFSI sector and research on investment ideas.

Currently, he co-manages Indiabulls Blue Chip Fund, Indiabulls Arbitrage Fund, Indiabulls Value Discovery Fund and Indiabulls Tax Savings Fund at the fund house along with Mr Sumit Bhatnagar.

Mr Malay Shah is a Commerce Graduate (B. Com) with MMS degree to his credit and has an experience of around 15 years in the field of finance, especially in Debt - Dealing and Fund Management.

Prior to joining Indiabulls Mutual Fund, he was working as Head – Fixed Income with Peerless Funds Management Co. Ltd, managing all the debt Schemes.

Mr Malay is the dedicated fund manager for Debt Segment at Indiabulls Mutual Fund. Some of the schemes which he manages include Indiabulls Arbitrage Fund, Indiabulls Value Discovery Fund, Indiabulls Savings Income Fund, Indiabulls Liquid Fund, Indiabulls Ultra Short-Term Fund, Indiabulls FMP Series V-1175 days, Indiabulls Tax Savings Fund and Indiabulls Savings Fund

The Outlook of Indiabulls Equity Hybrid Fund:

With the aim of capturing the dual potential of equity and debt, Indiabulls Equity Hybrid Fund will offer diversification across asset class. The fund managers will follow bottom-up approach analysis to construct the portfolio, while the portfolio construction strategy will decide the fate of how the fund will perform. In an environment where the near-term sentiments in equity markets will be driven by macro-economic conditions, global and domestic political developments, along with the outcome of upcoming state and Lok Sabha elections, the markets are expteced to remain highly volatile. It would be wise to assess the fund’s performance for at least a span of 3 years before committing your investment in it.

[Read: Skip NFOs, Instead Consider Building A Strategic Mutual Fund Portfolio]

Editor’s note:

What if we tell you that certain unusual and lesser-known funds can generate big gains for you, the investor?

Yes, you can.

Believe it or not, unusual and lesser-known funds can generate big gains for you, the investor.

But any small sized fund will not do. After all, you do not want to pick lesser-known funds that have delivered a one-off performance.

If you are a risk-taker and do not have the time and skill to do your own research, here’s how you can add some hidden gems to your mutual fund portfolio before the crowd discovers them. 

Want to know which are these ‘Undiscovered’ funds? Click here to read more…

© Quanutm Information Services Pvt. Ltd. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of PersonalFN is strictly prohibited and shall be deemed to be copyright infringement.

Disclaimer: Quantum Information Services Pvt. Limited (PersonalFN) is not providing any investment advice through this service and, does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities. All content and information is provided on an 'As Is' basis by PersonalFN. Information herein is believed to be reliable but PersonalFN does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. PersonalFN and its subsidiaries / affiliates / sponsors or employees, personnel, directors will not be responsible for any direct / indirect loss or liability incurred by the user as a consequence of him or any other person on his behalf taking any investment decisions based on the contents and information provided herein. This is not a specific advisory service to meet the requirements of a specific client. Use of this information is at the user's own risk. The user must make his own investment decisions based on his specific investment objective and financial position and using such independent advisors as he believes necessary. All intellectual property rights emerging from this newsletter are and shall remain with PersonalFN. This is for your personal use and you shall not resell, copy, or redistribute this newsletter or any part of it, or use it for any commercial purpose. The performance data quoted represents past performance and does not guarantee future results. As a condition to accessing PersonalFN's content and website, you agree to our Terms and Conditions of Use, available here.

Quantum Information Services Pvt. Ltd. Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 16 Jolly Maker Chambers II, Nariman Point, Mumbai 400 021. Email: CIN: U65990MH1989PTC054667

SEBI-registered Investment Adviser. Registration No. INA000000680, SEBI (Investment Advisers) Regulation, 2013

Add Comments

Financial News. Simplified

Knowledge Center

Money Simplified Guides (FREE)

Mutual Fund Fact Sheets

Tools & Calculators