Double option index fund from Pioneer ITI

Our Special Correspondent

CHENNAI, AUG. 23. Having shed Kothari from its name to reflect the change in the ownership, Pioneer ITI Mutual Fund is set to launch an index fund with double option.

The Pioneer ITI Index Fund will open and close on August 27. It will offer investors choice of two indices - BSE Sensex and NSE Nifty.

The option with Nifty index focus is designed to provide investors returns that closely correspond to the total return of 50 stocks as represented by S&P CNX Nifty. Similarly, the BSE Sensex-specific option, it is explained, may yield returns that closely correspond to the total return of 30 stocks as represented by the BSE Sensex.

The index fund also provides investors a twin option - either growth or dividend. Dividends are tax-free up to March 31,2002. The fund has prescribed a floor investment of Rs. 10,000. The index fund will have a one per cent entry load. There will, however, be no exit load.

For the first time perhaps in the Indian mutual fund industry, investors to the Pioneer ITI Index Fund will have the facility to sell and buy units under the scheme from the very second day of the launch of the index fund.

The fund will use an indexing strategy to pick stocks. It is expected to pick up stocks of Nifty and BSE Sensex in approximately the same proportion as the index.

Addressing a press conference here today, Mr. Vivek Reddy, Chief Executive Officer of Pioneer ITI AMC Ltd., felt good fundamentals and weak sentiments offered the right setting for investors to look at the index fund. He was of the firm view that the structural efficiency of the market had indeed picked up.

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Section  : Business
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