An open - ended passively managed equity scheme tracking the CNX Nifty Junior Index (Total Returns Index).
Investment Objective
The investment objective of the scheme is to invest only in and all the stocks comprising the CNX Nifty Junior Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of CNX Nifty Junior index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the CNX Nifty Junior index as and when the derivative products on the same are made available. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the CNX Nifty Junior index (Total Returns Index) and the Scheme.
Investment Strategy
The investment strategy for the Scheme would be to hold the constituents of the CNX Nifty Junior Index in the portfolio of the scheme in the same weights as in the Index. Exposure to each stock in the Index will be either through the cash segment or through the derivative segment. Investment through derivative products shall be possible only if the Exchange resume derivative contracts on CNX Nifty Junior Index. Through this strategy, the Scheme will seek to minimize the tracking error to with the objective to realize the performance of the Total Returns Index of CNX Nifty Junior Index.
Asset Allocation
The asset allocation pattern for the scheme is detailed in the table below:
Instrument
Indicative Allocation (% of total assets)
Risk Profile
Minimum
Maximum
Stocks in the CNX Nifty Junior Index and derivative instruments linked to the CNX Nifty Junior Index as and when the derivative products are made available on the same.
95%
100%
Medium to High
Cash and Money Market Instruments including money at call but excluding Subscription and Redemption Cash Flow
0%
5%
Low to Medium
Fund Manager
Mr. V Balasubramanian.
Benchmark
CNX Nifty Junior Index (Total Returns Index)
Face Value
Rs. 10 for cash at par.
Entry Load
Nil.
Exit Load
1% for exit (SWP/STP) on or before 1 year from the date of allotment& in case of SIP, on or before 1 year from the date of allotment of each installment.
Plans Available
Growth Plan and Dividend Plan with option for payout & re-investment of dividend.
Minimum Investment
Rs.5,000 and in multiples of Re.1 thereafter.
Additional Purchase
Rs. 1,000 and in multiples of Re.1 thereafter.
Systematic Investment
Plan (SIP)
Monthly Option: Rs. 500 per month for a minimum period of 12 months or Rs.1,000 per month for a minimum period of six months.
Quarterly Option: Rs. 1,500 per quarter for a minimum period of 4 quarters.
Investments above the minimum amount mentioned, shall be made in multiples of Re.1 for all SIP irrespective of frequency of SIP
Taxation
IDBI Nifty Junior Index Fund
Resident Investors
Mutual fund
Tax on Dividend
Nil
Nil
Capital Gains
● Long Term
● Short Term
Nil
Nil
15% (plus applicable
surcharge and cess)
Nil
Unit holders of the Scheme will be charged securities transaction tax (STT) @ 0.25% on value of redemption of units or at applicable rates.
Expense Ratio
1.50%
Expense Ratio Effective From
20-09-2010
Statutory Details:
IDBI Mutual Fund has been set up as a trust sponsored by IDBI Bank Ltd. (liability restricted to Rs.10 lakhs) with IDBI MF Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with IDBI Asset Management Ltd. as the Investment Manager. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
