NFO (New Fund Offer) “IIFL Nifty ETF” an open-ended, S&P CNX Nifty index-linked, ETF, will open for subscription on September 28., 2011.
All the fees and expenses are capped at 0.25% or a quarter of a rupee for managing Rs 100 for one year. As on date, there is no other equity fund in the country that has a cost structure lower than this. The NFO will close on October 12, 2011.
The investment objective of this fund is to provide returns, before fees and expenses, corresponding as closely as possible to the total returns of securities as represented by S&P CNX Nifty.
IIFL Nifty ETF will invest in the securities, which are constituents of the S&P CNX Nifty Index, in the same proportion as the index. Nifty is a well-diversified, 50-stock index accounting for 24 sectors of the economy.
Mr. R Venkataraman, MD, India Infoline, said, “Our own experience and many other studies reiterate that for a small investor, the leading benchmark index is a much better way to play the market. Nifty ETF will revolutionise the mutual fund industry, the way broking industry was, when we launched our 5paisa.com, more than a decade ago.“
Mr. Nirmal Jain, Chairman, India Infoline said, “We are committed to build this business in a customer centric way over the long term, resorting to no short cuts.“
About ETFs..!
World wide ETFs account for about 5% of funds, while in India, they account for only 1%t of the industry. There are more than 1,300 ETFs in the US alone, whereas, there are only 30 ETFs in India.
No comments:
Post a Comment