Benchmark MF files offer document for Infrastructure fund

Benchmark Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch Infrastructure Benchmark Exchange Traded Scheme (Infra BeES), an open-ended, exchange listed, index scheme tracking CNX Infrastructure Index.

The new fund offer (NFO) price for the scheme is Rs 10 per unit.

Investment objective:The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Infrastructure Index. However, the performance of scheme may differ from that of the underlying index due to tracking error.

Option:The scheme offers only growth option.

Asset allocation:The scheme will invest 90-100% in securities covered by the CNX Infrastructure Index and 0-10% in money market instruments, g-secs, bonds, debentures and cash at call. As the CNX Infrastructure Index is an Equity Index, the constituents of the Index do not include debt securities. Cash at call includes cash component of the portfolio deposit received for subscription and payable on redemptions, dividend received by the Scheme which is pending deployment, etc. For the time duration of change in the index constituents, the scheme may have to invest in derivatives to maintain the respective weightage for the companies, constituting the index. These investments would be for a short period of time. The notional exposure of the scheme in derivative instruments shall be restricted to 10% of the net assets of the scheme.

Load structure:The scheme will charge neither entry nor exit load.

Minimum investment amount:Investors can invest under the scheme with a minimum investment amount of Rs 10,000 and in multiples of Re 1 thereafter.

Minimum target amount:The scheme seeks to collect a minimum target amount of Rs 10 million during the NFO period.

Benchmark index:The scheme`s performance will be benchmarked against CNX Infrastructure Index.

Fund manager:Vishal Jain will be the fund manager for Infrastructure Benchmark Exchange Traded scheme.

Source:http://www.myiris.com/newsCentre/storyShow.php?fileR=20090814121344707&dir=2009/08/14&secID=livenews