Friday, July 25, 2008

Benchmark MF Plans To Launch Oil Bees - July 25 , 2008

The Benchmark Mutual Fund has filed the offer document with the Securities and Exchange Board of India (Sebi) for launching a dedicated scheme of Oil Benchmark Exchange Traded Scheme (Oil BeES). It's an open-ended exchange traded scheme.

The minimum application amount under the scheme is Rs. 10000 and in multiple of Re 1 thereafter. Each unit of Oil BeES issued under the scheme will be approximately equal to one tenth of the price of crude oil. The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the returns provided by crude oil by investing in units of overseas mutual fund schemes including exchange traded funds investing in securities/instruments linked to crude oil and exchange traded notes and other securities/instruments whose returns are linked to crude oil. The scheme will charge 2.25%, as an entry load during NFO period and for continuous offer there is no entry load.

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