IDBI NIFTY JUNIOR INDEX FUND NEW FUND OFFER

An Open Ended Index Fund

Opens on: Sep 02nd 2010

Closes on: Sep 15th 2010

INVESTMENT OBJECTIVE:
SNAPSHOTS The investment objective of the scheme is to invest only in and all the stocks comprising the
CNX Nifty Junior Index in the same weights of these stocks as in the Index with the objective
Min. Investment: ` 5000/-
to replicate the performance of the Total Returns Index of CNX Nifty Junior Index. The
MIN. S.I.P.: `500/- scheme may also invest in derivatives instruments such as Futures and Options linked to
Benchmark: CNX Nifty Junior Index. stocks comprising the Index or linked to the CNX Nifty Junior Index. The scheme will adopt a
Exit Load: 1% for exit (Repurchase / passive investment strategy and will seek to achieve the investment objective by minimizing
Switch-out / SWP / STP) on or
before 1 year from the date of the tracking error between the CNX Nifty Junior Index (Total Returns Index) and the Scheme.
allotment for the subscriptions
received during the NFO period. ASSET ALLOCATION PATTERN
The scheme will invest between 95-100% of funds available predominantly in Equity & Equity
related securities of companies constituting the CNX Nifty Junior Index and derivative
FUND MANAGER instruments linked to the CNX Nifty Junior Index exchange traded derivatives on the CNX
Mr. Gautam Kaul Nifty Junior Index and 0-5% of its net asset will be invested in Cash and Money Market
Mr. Gautam Kaul has over 9 years of experience in debt Instruments including money at call but excluding Subscription and Redemption Cash Flow.
markets including 5 years in the mutual fund industry.
?Mar 2010 till date COMPANY PROFILE
IDBI Asset Management Limited, the Asset Management Company of IDBI Mutual Fund is
Fund Manager. Fixed Income IDBI Asset Management
sponsored by IDBI Bank. As one of India's largest banks, IDBI has played a major role in the
?November 2006-Feburary 2010 country's industrial & economic progress for over 40 years, first as a development financial
Dealer and Fund manager Fixed Income, Religare institution & later as a full-fledged Commercial Bank.
Mutual Fund.
?November 2005-November 2006 CNX NIFTY JUNIOR
Dealer Fixed Income, Sahara Mutual Fund The next rung of liquid securities after S&P CNX Nifty is the CNX Nifty Junior. It may be useful
?April 2001-October 2005 to think of the S&P CNX Nifty and the CNX Nifty Junior as making up the 100 most liquid
stocks in India. As with the S&P CNX Nifty, stocks in the CNX Nifty Junior are filtered for
Dealer - Government Securities and Corporate Bond
liquidity, so they are the most liquid of the stocks excluded from the S&P CNX Nifty. CNX Nifty
Mata Securities Private Limited Junior represents about 12% of the total market capitalization as on December 31, 2009. The
average traded value for the last six months of all Junior Nifty stocks is approximately 15% of
the traded value of all stocks on the NSE.
RELATIVE PERFORMANCE AS ON 06-09-2010.
120 RISK PROFILE & SUITABILITY
As IDBI NIFTY JUNIOR INDEX FUND will invest in the CNX Nifty Junior and the fund may
100 maintain the portfolio of all the securities in the same proportion as in the benchmark index.
80 So the risk profile of this fund is less than the actively managed funds. The Scheme's NAV
may react almost in line with its benchmark.
60 Those who are risk-averse and do not want to bet on a particular fund manager style, but
believe that the India growth story will play out in the next few years, can consider investing in
40
this index fund.
20
COMMENTS
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The Scheme will track CNX Nifty Junior Index and is a passively managed scheme i.e. the
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fund manager attempts to mirror the performance of CNX Nifty Junior Index. The investment
decisions will be determined as per the CNX Nifty Junior Index. Unlike other Fund, the
CNX Nifty Junior CNX500 S&P Nifty Scheme does not try to "beat" the markets they track and do not seek temporary defensive
positions when markets decline or appear over valued. The AMC does not make any
judgments about the investment merit of a particular stock or a particular industry segment
VALUATION RATIO AS ON 06-09-2010 nor will it attempt to apply any economic, financial or market analysis. The biggest advantage
P/E P/B Div Yield of investing in an index fund is that firstly one knows exactly the shares the fund would invest
CNX NIFTY 23.46 3.65 1.09 in. Besides, for an individual investor, it is practically impossible to create a portfolio that
NIFTY JUNIOR 18.94 3.28 0.98 matches an index fund portfolio and also index funds largely eliminate the risk of poor stock
selection by a fund manager. CNX Nifty Junior Index constitutes with next 50 stocks after
CNX 500 21.66 3.32 1.08
those forming part of S&P CNX Nifty, diversified with 26 sectors of the economy. The Index
CNX MIDCAP 21.37 2.85 1 tracks the behavior of a portfolio of Large Cap companies. The index captures approximately
12% (as of Dec 31, 2009) of its float-adjusted market capitalization of the companies listed at
ANALYST National Stock Exchange (NSE) and is a true reflection of the Indian stock market. So it
creates an exciting investment opportunities for those investor who are optimistic about
Bhaskar Mandal India's remarkable growth story.
bhaskar.mandal@smcindiaonline.com

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