IDBI AMC launches first NFO
The fund house, a wholly-owned subsidiary of state-run IDBI Bank, launched its first new fund offer (NFO) – IDBI Nifty Index Fund -- on May 3, which would close on May 31.
"For the time being we plan to launch only index funds at least for next few years. We are targeting a break-even within three years," IDBI AMC MD and CEO Krishnamurthy Vijayan said.
The AMC had received approval from the market regulator SEBI in March for launching the mutual fund products. The scheme re-opens for continuous sale and repurchase from June 30. The face value of the new issue will be Rs 10 per unit.
"For the time being we will concentrate on equity products benchmarked against index. We will be launching short term, liquid and all kind of debt products. Debt products are in the planning stage," Vijayan said.
The asset management company is currently using the IDBI Bank network to distribute the products.
"IDBI Bank already has 700 branches and 300 more are likely to be added. We have set up 12 distribution centres across all major cities," he added.
When asked if the fund house is looking for acquisitions, he said: "If the right opportunity comes then surely we would be ready to buy something. As of now we are planning to grow organically."
The fund would be investing all stocks comprising the S&P CNX Nifty Index with the objective. "We will
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