Taurus Mutual Fund on Thursday announced the launch of Taurus Nifty Index Fund, an open-ended index linked equity scheme.
The NFO opens on June 4 and closes on June 10. "The fund will replicate the the S&P CNX Nifty Index by investing in the securities of S&P CNX Nifty Index in the same proportion/weightage," Taurus Mutual Fund's Chief Executive, Waqar Naqvi, told reporters here.
The Fund is expected to garner Rs 25-crore from the new fund offer. The total size of the index fund is Rs 1,100- crore, Naqvi said.
The fund is expected to provide an opportunity to own 50 of the fundamentally strong and best-known companies in India.
In developed markets like the USA and Europe, index funds are more favoured by retail investors as compared to actively managed funds. But at least 70 per cent of the actively managed funds fail to outperform the S&P 500 Index consistently over various time-frames.
However, in India, historically a majority of the actively managed funds have outperformed the index funds in the long-term since the markets were in the evolutionary stage, he said.
Source: http://economictimes.indiatimes.com/personal-finance/mutual-funds/mf-news/Taurus-MF-to-launch-Nifty-Index-Fund/articleshow/6007729.cms
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