INDIA Infoline Asset Management Company (IIFL AMC) on Tuesday launched its second equity fund, IIFL Dividend Opportunities Index Fund, an open-ended index fund, which would invest in stocks constituting CNX Dividend Opportunities Index.

CNX Dividend Opportunities Index is a thematic index of 50 high dividend yield companies listed on NSE, and spread across 25 diversified sectors.

The constituent stocks comprise largeand midcap stocks selected from a universe of 300 stocks selected on the basis of their dividend yield. "The index chosen for benchmarking investments in the scheme is the best performing index and has outperformed major indices in the past four years," said R Venkataraman, MD, IIFL.

CNX Dividend Opportunities Index has outperformed other key indices like S&P CNX, CNX 100 and CNX Midcap index in terms of return since October 2007 as dividend index base date.

The index is owned and maintained by India Index Services & Products, a joint venture between NSE and Crisil.

The stocks in the index are rebalanced every year in October. Companies are selected out of top 300 companies by average free float market capitalisation and aggregate turnover for the past six months.

The new fund offer opens on June 6, and closes on June 19.