Indian Infoline Asset Management Company has come out with a new fund offer (NFO), IIFL Nifty ETF. This is an open-ended index-linked exchange traded fund. The fund, being the first offering by the company since its inception, will invest its corpus in securities which are constituents of the S&P CNX Nifty Index, in the same proportion as the Index.
The offer is open from September 28 to October 12.
The minimum subscription amount is Rs. 5,000 during the NFO period.
Addressing presspersons here on Thursday, R. Venkataraman, Managing Director, said the management fees and other expenses were capped at 25 paise for managing Rs. 100 a year.
According to him, globally ETFs accounted for around 5 per cent of all schemes while in India they accounted for only 1 per cent. There were more than 1,300 ETFs in the U.S. alone.
Untapped potential
In India only 30 ETFs were available underlining the huge untapped potential in this segment, the Managing Director said.
Mr. Venkataraman said the Nifty ETF provided investors an opportunity to take exposure in Nifty through an ETF which tracked the performance of S&P Nifty, the 50 stock index representing 24 sectors of the industry.
