The latest entrant in the country’s mutual fund business IDBI Asset Management Company on Wednesday said it targets to break-even by 2013-14.
The fund house 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,” said Mr Krishnamurthy Vijayan, MD and CEO, IDBI AMC. The scheme re-opens for continuous sale and repurchase from June 3 0. 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,” said Mr Vijayan. 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 focus on Nifty companies so that we do not take investment decision on our own, we will leave it to the performance of the market,” Mr Vijayan added. The minimum investment will be Rs 5,000 and in multiples of Rs 100 thereafter. Under the Systematic Investment Plan (SIP) investors can pay Rs 500 per month for a minimum period of 12 months.