StockMarketNifty.com

Quantum Mutual Fund has announced to launch its second equity offering, Quantum Index Fund. The scheme will be an open-ended exchange traded fund. The principal investment objective of the scheme is to invest in stocks of the companies comprising the S&P CNX Nifty Index and endeavour to achieve return equivalent to S & P CNX Nifty by “passive” investment. As per the stated asset allocation, the scheme will invest predominantly in companies that constitute the S & P CNX Nifty and / or Nifty futures. The investment would be done in almost all the fifty stocks of Nifty in approximately the same weightages as they represent in the Nifty Index. However, to meet the liquidity requirements, a small allocation of funds would be done to money market instruments, short-term debt instruments, securitized debt instruments and liquid schemes of mutual funds. Furthermore, the scheme will allocate 90-100% of its net assets to stocks comprising the Nifty Index and the remaining in money market instruments and other short-term debt instruments. Investments in securitized debt instruments can be made by the scheme up to 5% of the total fund size of the scheme. The new fund offer is open for subscription from June 9, 2008 to June 20, 2008. The scheme is benchmarked against S & P CNX Nifty and will be managed by the fund manager Mr. Hitendra Parekh.