India Infoline Asset Management Company's new open-ended index fund seeks to to provide returns to investors across diversified sectors comprising large and mid-cap stocks.
CNX Dividend Opportunities Index would form the basis for what is known as the IIFL Dividend Opportunities Fund.
"It's a theme fund... We'll invest in top-50 companies that pay dividends regularly. The fund will be invested across market capitalisation and 25 sectors," said R. Venkataraman, managing director of IIFL Group, told The Economic Times.
"The CNX Dividend Index has generated over 30% returns in three years' time. It has outperformed other key indices in shorter time horizon as well," Mr Venkataraman said. There are two options offered under this scheme - growth and dividend option - and a 'systematic investment plan' facility for investors wanting to invest smaller amounts.
The minimum application amount is Rs 5,000 and in multiples of Rs 100 thereafter. In case of the Systematic Investment Plan , for the monthly option, the minimum amount will be Rs 1,000 per month for a minimum period of six months and in the case of the quarterly option, the minimum amount will be Rs 1,500 per quarter for a minimum period of four quarters.
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