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Press Release

For immediate publication September 27, 2011

IIFL launches the lowest cost equity fund- IIFL Nifty ETF
NFO opens on Sep 28, 2011 and closes on Oct 12, 2011
India Infoline Asset Management Company Ltd (IIFL AMC), is launching a New Fund Offer (NFO) IIFL Nifty ETF on September 28, 2011. This is an Open-ended, Index- linked, Exchange Traded Fund. The investment objective of this fund is to provide returns, before fees and expenses, which correspond as closely as possible to the total returns of securities as represented by S&P CNX Nifty (Nifty) subject to tracking error. All the fees and expenses are capped at 0.25% or a quarter of a rupee for managing Rs 100 for one year. As on date, there is no other equity fund in the country which has a cost structure lower than this. The NFO will open on September 28, 2011 and close on October 12, 2011. As per latest report from CRISIL viz S&P CRISIL SPIVA June 2011, Among equity-oriented funds, majority of large cap and diversified equity funds underperformed their benchmark indices, viz, the S&P CNX Nifty and the S&P CNX 500, respectively, in all three time periods of analysis (1, 3 and 5 years). Mr. R. Venkataraman, Managing Director of India Infoline Ltd, pointed out CRISIL study reiterates many other studies and our own experience that for a small investor the leading benchmark index is a much better way to play the market. In true IIFL tradition we combine the best of product with the lowest cost. IIFL Nifty ETF will revolutionize the mutual fund industry, the way broking industry was when we launched our 5paisa.com, more than a decade ago. The Chairman, Mr. Nirmal Jain added We are committed to build this business in a customer centric way over the long term, resorting to no short cuts. Globally ETFs account for around 5% of funds, while in India they account for only 1% of the industry. There are more than 1300 ETFs in the USA alone, whereas there are only 30 ETFs in India. This underlines the huge untapped potential of the ETF industry. IIFL Nifty ETF will invest in the securities which are constituents of the S&P CNX Nifty Index, in the same proportion as the Index. The Index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. S&P CNX Nifty stocks represent about 63.94% of the total free

float market capitalization of the universe of stocks traded on NSE as on June 30, 2011. It is a welldiversified 50 stock index accounting for 24 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives, structured products, ETFs and index funds. IIFL Nifty ETF gives investors an opportunity to take exposure in Nifty through an ETF which tracks performance of S&P CNX Nifty at a low cost of 0.25% p.a. for all expenses including management fees. Commenting on the launch, Mr. Gopinath Natarajan, CEO, IIFL AMC said, We at IIFL AMC are proud to launch our first offering IIFL Nifty ETF, which provides investors a well diversified equity exposure with an objective to generate stable returns over a longer period of time at the lowest cost. During NFO, the minimum application amount is Rs. 5,000 and multiples of Re. 1/- thereafter. Mr Manish Bandi, Chartered Accountant with over 11 years of experience in the financial services sector, will be the Fund Manager of the scheme.

About India Infoline Asset Management Company Ltd. India Infoline Asset Management Company Ltd. (IIFL AMC) is a public limited company incorporated under the Companies Act, 1956 on March 22, 2010. IIFL AMC has been appointed as the Investment Manager to IIFL Mutual Fund by India Infoline Trustee Company Ltd. (IIFL Trustee). The Board of Directors of IIFL AMC comprises Ms Homai Daruwalla, Mr Pranab Pattanayak and Mr R. Venkataraman, who are personnel with impeccable academic and professional credentials and have adequate experience in finance and financial services related field.

About the IIFL Group


The India Infoline group (IIFL), comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636, Bloomberg: IIFL) and its subsidiaries, is one of the leading players in the Indian financial services space. India Infoline Ltd. is the Sponsor of IIFL Mutual Fund. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. It owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by FinanceAsia, Country Awards, 2011 and Best Equity Broker of the year at the BloombergUTV Financial Leadership Awards, 2011. IIFL Private Wealth Management was also adjudged as Best Wealth Management House in India

by The Asset Triple A Investment Awards 2011. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia.

A network of over 3,000 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All the offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at its branches.
Statutory Details: Constitution: IIFL Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Trustee: India Infoline Trustee Company Ltd. Investment Manager: India Infoline Asset Management Company Ltd. Sponsor: India Infoline Ltd. Scheme Name: IIFL Nifty ETF. Classification: An Open-ended Index Exchange Traded Fund Investment Objective: The investment objective of the scheme is to provide returns (before fees and expenses) that closely correspond to the total return of the S&P CNX Nifty Index, subject to tracking errors. Asset Allocation: Stocks comprising S&P CNX Nifty Index: 95% - 100%; Debt and money market instruments: 0% - 5%; For further details, please refer the SID. Load Structure: Entry Load Nil; Exit Load Nil In case of redemption of units of the Scheme for less than Creation Unit size, directly with the Fund, as detailed in SID, an investor can sell its units of the Scheme to the Fund with an exit load of 1% of NAV of the Scheme. Terms of issue and Mode of Sale and Redemption of Units: During NFO, investors can invest in the Scheme with a minimum investment of Rs. 5,000/- and in multiples of Re. 1/- thereafter. The units of the Scheme are issued / repurchased and traded compulsorily in dematerialized form. On the Exchange: Investor can buy/sell units on an ongoing basis on the National Stock Exchange of India Ltd. (NSE) at the traded prices which may be close to the actual NAV of the Scheme. The units are purchased in round lots of 1 unit. Directly with the Mutual Fund: The authorized participant/large investor can subscribe/redeem the units of the Scheme directly with the Mutual Fund only in creation unit size and in multiples thereof at the applicable NAV of the Scheme. Creation Unit is fixed number of units of the Scheme, which is exchanged for a basket of securities underlying the index called the Portfolio Deposit and a Cash Component equal to the value of 5000 units of the Scheme. Option: The Scheme will have Growth Plan only. Investor Benefits and General Services offered: NAV will be calculated and disclosed on all business days. Risk Factors: All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the Schemes objectives will be achieved. As the price/value/interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of units issued under the Scheme may go up or down depending upon the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance/results of the Scheme and may not provide a basis of comparison with other investments. India Infoline Asset Management Company Ltd. has no previous experience in managing a Mutual Fund. The present Scheme is not a guaranteed or assured return Scheme. IIFL NIFTY ETF is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects or returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme. Scheme Specific Risk Factors: Investment in the scheme shall be subject to various other risk factors including but not limited to risk associated with investment in Equities such as trading volumes, settlement risk, liquidity risk, tracking error risk, risk associated with investment in Debt and money market instruments, risk associated with investment in derivatives, etc. For detailed risk factors please refer the SID. The Sponsor is not responsible or liable for any loss or short fall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund. Unit holders / Investors are not being offered any guaranteed /assured returns under any scheme of IIFL Mutual Fund.

IISL Disclaimer: S&P and Standard and Poors are trademarks of Standard & Poors Financial Services LLC, and have been licensed for use by India Index Services & Products Limited in connection with the S&P CNX Nifty Index. IIFL Nifty ETF offered by IIFL Mutual Fund is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or S&P and its affiliates. Neither IISL nor S&P and its affiliates makes any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of IIFL Nifty ETF or any member of the public regarding the advisability of investing in securities generally or in IIFL Nifty ETF linked to S&P CNX Nifty Index or particularly in the ability of the S&P CNX Nifty Index to track general stock market performance in India. Please read the full Disclaimers in relation to the S&P CNX Nifty Index in the Scheme Information Document." NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE. Mutual Fund investments are subject to market risks. Please read the Statement of Additional Information (SAI) and the Scheme Information Document (SID) and Key Information Memorandum (KIM) carefully before investing. Copy of the SAI, SID & KIM along with application form can be obtained from any of our AMC offices / Customer Service Centres / Distributors as well as from our website www.iiflmf.com. Investors can also contact us on our toll free number 1800-200-2267 or send email at info.iiflmf@indiainfoline.com. India Infoline Asset Management Co. Ltd., IIFL Centre, 3rd floor Annex, Kamala City, S.B. Marg, Lower Parel, Mumbai 400 013

For further information please contact: Ms. Nikita Amlekar Corporate Communications India Infoline Ltd M : (+91) 90046 63042 E-mail: nikita.amlekar@indiainfoline.com Mr. Pranav Thakkar Sampark PR D: (+91 22) 4042 5565 M : (+91) 9833924775 E-mail: pranav.thakkar@sampark.com