India Infoline (IIFL) Mutual Fund has come out with its second offering. While the AMC’s first was an exchange traded fund (ETF) launched last year, this one is an open-ended index fund -- IIFL Dividend Opportunities Index Fund. This scheme aims to replicate its benchmark, the CNX Dividend Opportunities Index. This index comprises large- and mid-cap stocks of 50 high dividend yielding companies spread across 25 sectors.
The investment objective is to provide returns that closely correspond to the total return of CNX Dividend Opportunities Index, subject to tracking errors.
CNX Dividend Opportunities Index includes companies based on the following criteria:
• Ranked within the top 500 companies by average free-float market capitalization and aggregate turnover over the last six months
• Ranked within the top 50 companies ranked by Annual Dividend Yield
• Positive earnings growth over three years
• Positive net-worth and profit making, based on the most recently audited financial results
• Maximum weightage of each company in the index is 10 per cent
Mr. Manish Bandi is the fund manager of this scheme. Mr. Bandi is a science graduate and a CA with 12 years of experience in the financial services industry. He has been a part of the investment committee and fund management team and held senior managerial positions in the field of equity advisory, portfolio management services, equity broking, business and process reviews and audits in his previous roles. Mr. Bandi also manages IIFL Nifty ETF.
IIFL Mutual Fund is just a year old and manages Rs 28 crores, as on March 31, 2012.
NFO Opens: June 6, 2012
NFO Closes: June 19, 2012
NFO Price: Rs.10 per unit
Options: Growth & Dividend (with payout & re-investment option)
Minimum Application Amount for Lump-sum: Rs.5000/-
Minimum Application Amount for SIP: Rs.1000/- per month for monthly, Rs.1500 per month for quarterly option
Exit Load: 1% if repurchased/switched-out/SWP/STP within 12 months of allotment
Benchmark: CNX Dividend Opportunities Index