IDBI Mutual Fund today announced the launch of its second index fund -- the

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IDBI Nifty Junior Index Fund.

The new fund offer (NFO) will be available from September 2 to September 15, a press release issued here stated.

The scheme will re-open for continuous sale and repurchase with effect from September 27.

The investment objective of the IDBI Nifty Index Fund is 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 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 release said.

It will seek to achieve the investment objective by minimising the tracking error between the Total Returns Index of CNX Nifty Junior Index and the scheme, it added.

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.