Canbank plans to float Nifty-based index fund.

(From Business Line)

Kolkata, May 19. CANBANK Mutual Fund has lined up an index fund based on the S&P CNX Nifty of the National Stock Exchange. The offer document for the proposed scheme, CanIndex, has been sent to SEBI for approval.

The fund would provide investors with the two usual plans, growth and dividend. According to Mr N.R. Ramanujam, Managing Director of Canbank MF, the 50-share Nifty was selected because of its relatively broadbased nature. "The NSE index is more appropriate for our purposes. It scores over the 30-share Sensex as it is more diversified and representative of the broad market," he said.

The proposed index fund would also …