Tuesday, December 16, 2008

Benchmark S&P CNX 500 Fund Extends NFO Period - Dec 16, 2008

Benchmark Mutual Fund has extended the closing date of New Fund Offer (NFO) period of Benchmark S&P CNX 500 Fund till 16 December 2008 instead of 15 December 2008. The new fund offer was opened for subscription on 17 November 2008.


Benchmark S&P CNX 500 Fund is an open-ended index scheme. 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 will not levy any entry load.For investment less than Rs 2 crore, the scheme charges 1.50% of an exit loads if redeemed within 1 year from the date of allotment. 1.00% if redeemed after 1 year but within 2 years from the date of allotment. 0.50% if redeemed after 2 years but within 3 years from the date of allotment. And it will not charge any exit if redeemed after 3 years from the date of allotment.


For investments of Rs 2 crore and more, the scheme will charge 0.50% of an exit load if redeemed up to 3 months from date of allotment and nil for the redemption made after 3 months from the date of allotment.


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 fund manager for the scheme is Vishal Jain. The benchmark index for the scheme would be S&P CNX 500 Index.

1 comment:

Anonymous said...

For a more informed investor who has the time to research, I would recommend selecting mutual fund schemes to invest in based on the following criteria.

1. Longterm Performance , consistency in Returns
2. Short Term Performance (though a fund has performed well in the past, is there a let down in short to mid term performance)
3. Performance across market cycles, like during bullish and bearish phases (how well did the fund perform during the bearish phases)
4. Fund Corpus (When selecting midcap funds, the corpus size is very important)
5. Fund Managers performance with the scheme(If a fund just got a new fund manager, I would observe the performance under this new manager before I select the fund)
6. For equity mutual funds, one will also need to evaluate risk. (Exposure to midcaps, Standard Deviation of the fund)
7. For debt mutual funds, apart from risk one also need to examine entry/exit loads and expense ratio are very important.