The NFO opens on June 06 and closes on June 19, 2012
IIFL Mutual Fund today announced the launch of its open ended index fund called IIFL Dividend Opportunities Fund Index Fund. The scheme will be benchmarked against CNX Dividend Opportunities Index, a thematic index consisting of 50 high dividend yield companies listed on NSE. The index consists of 25 diversified sectors comprising large and mid-cap stocks.
The fund will invest a minimum of 95% in CNX Dividend Opportunities Index and up to 5% in debt and money market instruments.
The fund comes with dividend and growth options and carries an exit load of 1%. SIP is also available. The minimum application size is Rs. 5,000 under lump sum and Rs. 1,000 per month (for minimum of six months) through SIPs.
“We are pleased to offer an attractive investment opportunity to investors in the current volatile equity markets. IIFL Dividend Opportunities Fund is good for those investors who aim to reap benefits from high dividend yield, cash flow generating companies, which share their profits by way of dividend. The scheme is not only suited for investors looking at tactical allocation but also to investors looking at potential long term gains,” said Gopinath Natarajan, CEO, IIFL AMC.
The fund will be managed by Manish Bandi.
Unlike an ETF, this fund will not be listed on the stock exchanges. It can be directly purchased or redeemed through AMCs or the stock exchange channels like Mutual Fund Service System (MFSS) and BSE’s StAR platform.
This is the second equity offering from IIFL. Earlier, it had launched a lowest cost ETF called IIFL NIFTY ETF in October 2011 with an expense ratio of 0.25%. The fund collected had collected Rs. 34 crore. IIFL has launched three FMPs subsequently.
The fund house aims to initially build a track record through passive funds and then will venture into active funds. IIFL’s assets under management stood at Rs. 72 crore as on March 2012.
