IDBI AMC launches NFO for IDBI Nifty Index Fund

MUMBAI: IDBI Asset Management (IDBI AMC), a wholly-owned subsidiary of state run IDBI Bank, on Monday announced its first new fund offer (NFO) for ' IDBI Nifty Index Fund', which is meant for Indian investors.

"A Nifty Index Fund offers multiple advantages to existing as well as first-time investors. An investor can own the top 50 blue chip companies across 22 sectors, which represent the India growth story," IDBI AMC CEO and Managing Director Krishnamurthy Vijayan said in a statement.

The NFO, which was open for sale from today, will close on May 31, it said, adding that it will reopen for continuous sale and repurchase from June 30.

The face value of each unit will be Rs 10 and the minimum investment will be Rs 5,000. Under Systematic Investment Plan (SIP), investors can pay Rs 500 per month for 12 months or Rs 1,000 per month for six month or Rs 1,500 per quarter for a minimum four quarters continuously, it added.

Nifty Index Fund, it said, will seek to achieve the investment objective by minimising the tracking error between the Total Returns Index of S&P CNX Nifty Index and the scheme.