Taurus Mutual Fund (MF), which has asset under management of Rs 3056 Crore (May 31, 2010), is all set to launch its first ever index fund, Taurus Nifty Index Fund. The new fund offer (NFO) opens on June 04, 2010 and closes on June 10.
The investment objective of the scheme is to replicate the S&P CNX Nifty index by investing in securities of CNX Nifty Index in the same proportion. The NFO will invest 95-100 per cent in securities belonging to the Nifty. The balance 0-5 per cent will be invested in debt and money market instruments. As the fund mirrors the CNX Nifty, the number of stocks it will invest will be close to 50. The prime focus of investment will be to reduce the tracking error to the minimum.
With this launch, Taurus MF will have seven equity funds in its portfolio, the other six being Taurus Bonanza, Taurus Discovery, Taurus Ethical, Taurus Infrastructure, Taurus Starshare, Taurus Tax Shield (an equity-linked savings scheme). All the above schemes have outperformed their category averages in one-year trailing returns with Taurus Bonanza posting a robust one-year trailing return of 227 per cent as on May 31, 2010.
The Taurus Nifty Index Fund offers both growth and dividend options. The minimum application amount will be Rs 5,000. One per cent exit load will be applicable if an investor exits the fund within one year.