Mumbai: IDBI Mutual Fund has launched its second index fund - the IDBI Nifty Junior Index Fund, which will be from September 2 to September 15. The scheme will re-open for continuous sale and repurchase with effect from September 27.

IDBI Nifty Index Fund is an open ended equity diversified fund, with an investment objective to invest only in and all stocks comprising the CNX Nifty Junior 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 CNX Nifty Junior 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.

The scheme may also invest in derivative instruments such as Futures and Options linked to stocks comprising the index or linked to CNX Nifty Junior Index.

The face-value of each unit will be Rs.10 and the minimum investment will be Rs.5,000 and in multiples of Rs.100 thereafter.

Under the Systematic Investment Plan (SIP), investors can pay Rs.500 per month for a minimum period of 12-months or Rs.1,000 per month for a minimum period of 6-months or Rs. 1,500 per quarter for a minimum four quarters continuously. The scheme will be benchmarked against CNX Nifty Junior Index and will be managed by Gautam Kaul.