IDBI Mutual Fund has announced a dividend of 0.40 paisa per unit under the IDBI Nifty Index Fund – Dividend Plan. The fund was launched in May 2010. This is the second dividend since allotment of units in June 2010. The Record Date of dividend 14th Oct 2010.
Speaking on the occasion, Mr. Krishnamurthy Vijayan, MD & CEO of IDBI Asset Management Ltd., said “Tax-free dividends are not only about cash flows: they give an investor the comfort that he has taken some profits home. Many fund managers see payouts in the context of reduction in AUM, but we see it as a service request that needs to be fulfilled. As such, I am happy that we have been able to help investors en-cash the recent boom, by paying out 2 dividends in 2 months, within 4 months of launch of IDBI Nifty Index Fund.”
All investors registered in the Dividend Plan as on October 14, 2010 will receive this tax-free dividend. Pursuant to payment of dividend, the NAV of the fund would fall to the extent of payout at the close of business hours on record date.
Disclaimer:
Scheme Nature & Objective of IDBI Nifty Index Fund: An open - ended passively managed equity scheme tracking the S&P CNX Nifty Index. The investment objective of the scheme is to invest only in and all the stocks comprising the S&P CNX Nifty Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of S&P CNX Nifty index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the S&P CNX Nifty index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the S&P CNX Nifty index (Total Returns Index) and the Scheme.
Additional details of the fund:
- NFO period- May 3rd – May 31, 2010
- Declared 1.2% dividend on August 31, 2010
About IDBI Asset Management Ltd.
IDBI Asset Management Ltd, is a wholly-owned subsidiary of IDBI Bank Ltd. The sponsor for the IDBI MF is IDBI Bank Ltd and the Trustee Company is IDBI MF Trustee Company Ltd. IDBI Mutual Fund’s mission is to promote financial inclusion, by assisting the common man in making informed investment choices, through mutual funds and thus bring to him, the prosperity of the capital markets.” www.idbimutual.co.in