Bangalore: A new offering open ended Index Fund known as the IIFL Dividend Opportunities Index fund will be launched by IIFL Mutual Fund with an objective to provide returns to investors. Companies like CNX Dividend Opportunities Index which is a thematic index of 50 high dividend yield companies that are listed in the NSE and are spread across 25 diversified sectors that also comprises of mid-cap’s stocks. The asset allocation would 95 percent in CNX Dividend opportunities index and 5 percent in debt and money market instruments.

The fund carries an exit load of 1 percent and comes with dividend and growth. The lump sum amount of minimum application size is 5000 and per month is 1000 for at least six months period. Gopinath Natarajan the CEO of IIFL AMC says, “We are pleased to offer an attractive investment opportunity to investors in the current volatile equity markets. IIFL Dividend Opportunities Fund is good for those investors who aim to reap benefits from high dividend yield, cash flow generating companies, which share their profits by way of dividend. The scheme is not only suited for investors looking at tactical allocation but also to investors looking at potential long term gains.”

Manish Bandi is appointed as the Fund Manager of this scheme who is Science graduate and a Chartered accountant with a 12 years experience in financial service sector. This fund cannot be listed in the stock exchanges and can be directly purchased or redeemed through AMC’s or stock exchange channels such as Mutual Fund Service System and BSE’s STAR. Earlier IIFL had launched a lowest cost ETF (exchange traded fund) called IIFL NIFTY ETF with an expense ratio of 0.25 percent in October 2011 and this is its second equity offering. The fund collected 34 crore and has launched three FMP’s (fixed maturity plans). It aims to build a track record of passive funds and then it will venture into active funds. In March 2012 the IIFL’s assets under management stood at 72 crore.