The fund opens for subscription on 28 September and closes on October 12
Mumbai: The latest entrant in the Indian mutual fund industry announced the launch of its first open-ended Nifty ETF which opens for subscription on September 28, 2011. The scheme will invest in constituents of CNX Nifty Index. The fund will charge 0.25% per annum as recurring expense, the lowest in Indian ETF space.
It remains to be seen if other AMCs are able to match the expense ratio of this fund. Normally ETFs carry an annual expense ratio in the range of 0.50% to 1.50%. The other low cost ETF present in the market is Reliance Banking ETF which charges 0.35% recurring expenses.
Nirmal Jain, Chairman of India Infoline said that they will focus on index funds initially and then launch active funds. He gave a reassurance that they would make sure that market makers provide enough liquidity to investors.
“In true IIFL tradition we combine the best of product with the lowest cost. With no exit load and the lowest cost, IIFL Nifty ETF will revolutionize the mutual fund industry, the way broking industry was when we launched our 5paisa.com more than a decade ago,” said R. Venkataraman, Managing Director of India Infoline Ltd.
NFO Date: September 28 – October 12
Target Investors: The fund is mainly targeted at retail and HNIs.
Distribution: The fund will be distributed through its own 5,000 branches and associates network initially.
Benchmark: S&P CNX Nifty
Empanelled IFAs: The fund house is in the process of empanelling IFAs.
Minimum Application: Rs. 5,000 during NFO and Rs. 500 on an ongoing basis
Minimum Target Amount: The fund aims to collect Rs. 20 crore.
Plan: Growth
Total Recurring Expense: 0.25%
Fund Manager: Manish Bandi
Exit load: Nil
