Religare MF launched its new fund 'Religare Nifty ETF' (an open ended exchange traded fund). The Fund seeks to generate returns which closely correspond to the returns generated by securities as represented by S&P CNX Nifty Index subject to tracking error, if any. The New Fund Offer opens for subscription today and will close for subscription on June 6, 2011. The fund offers exposure to Nifty stocks in a single order.
The fund will follow a passive investment strategy and will invest in companies comprising the S&P Nifty Index in the same weights as in the Index with an endeavor to track the benchmark index with as low tracking error as possible. Each unit of Religare Nifty ETF will be approximately equal to 1/10th of the value of the S&P CNX Nifty.
Speaking on the occasion Saurabh Nanavati, Chief Executive Officer, Religare MF said "We are delighted to add the Religare Nifty ETF to our range of ETF products; this reaffirms our commitment to investors to provide diverse investment options suiting different investment needs. Investors, who believe in passive investment strategy, want to keep investments simple and are looking for selective diversification can consider investing in this fund. For the first time investor to the equity market, Nifty ETF is certainly the ideal product, he should be looking at."
Investors can buy units of Religare Nifty ETF directly from the fund house during the New Fund Offer Period. The minimum investment amount during the NFO is Rs. 10,000 and in multiples of Re.1 thereafter. Post the New Fund Offer Period; Units of Religare Nifty ETF will be listed on the National Stock Exchange. Investors can buy and sell units of Religare Nifty ETF on the exchange through any registered broker. The fund manager of the scheme is Mr. Pranav Gokhale.