Benchmark Mutual Fund Has Launched Beneficial - Nov 19, 2008

Benchmark Mutual Fund house has launched Benchmark S&P CNX 500 Fund. It is an open ended index scheme. The new offer period (NFO) will be open for subscription from 17 November to 15 December. The face value of new issue is Rs 10 per unit.The investment objective of the scheme is to generate capital appreciation through Equity investments by investing in securities .

Which are constituents of S&P CNX 500 Index in the same proportion as in the index. The scheme offers two options viz. growth and dividend option. Dividend option further offers dividend payout and dividend reinvestment facility.

The minimum application amount will be Rs 10,000 and in multiples of Re. 1 thereafter. And the minimum amount for the subsequent purchase will be Rs 1000 and in multiples of Re. 1 thereafter. The scheme looks for collection of a minimum target amount of Rs 1 crore during the NFO period. The scheme will invest 90%-100% in securities constituting S&P CNX 500, derivative on the securities constituting S&P CNX 500 with medium to high risk profile.

It invests upto 10% in money market instruments, G-Secs, Bonds Debentures and cash at call with low to medium risk profile. The scheme would invest in derivatives instrument when it is unable to buy any stocks which it is required to invest as per its investment objective or whenever it is beneficial to take exposure in derivatives instead of the equity security.