IDBI Mutual Fund has launched Nifty Junior Index Fund NFO, an open ended equity scheme tracking the CNX Nifty Junior Index. The investment objective of the scheme is to invest only in and all the stocks comprising the CNX Nifty Junior Index in the same weights of these stocks as in the Index, to replicate the performance of the Returns of CNX Nifty Junior Index.
Terms of Issue: Offer for units of Rs.10 per unit during the NFO and the minimum subscription amount is Rs.5000.
Load structure: Entry load: Nil; Exit load of 1% for Redemption on or before 1 year from the date of allotment.
Plans on offer: Growth Plan and Dividend Plan with option for dividend payout and re-investment.
SIP facility is available.
The offer is open from Sep 3 – Sep 15 2010.
So, what is this Nifty Junior Index Fund is all about?
The next list of liquid securities after CNX Nifty is the CNX Nifty Junior and it consists of 100 stocks selected based on liquidity. Also we don’t have that many schemes tracking Nifty Junior apart from ICICI Prudential Nifty Junior Index Fund, which was launched just a few months ago.
We have Nifty Bees and many other ETFs and these kind of ETFs are yet to catch up the Indian investors in a big way. Hence, this scheme is for investors who want to invest in the next big index fund and with that an opportunity for them to buy the next heavyweight stocks of tomorrow.