BenchMark MF Unevils S&P CNX 500 Fund

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 seeks to collect 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.
The schemes exposure in derivative instruments shall be restricted to 10% of the net assets of the scheme.
The scheme will not levy any entry load.
Exit 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 upto 3 months from date of allotment and nil for the redemption made after 3 months from the date of allotment.
The benchmark index for the scheme would be S&P CNX 500 Index
Vishal Jain will be the fund manager for the scheme.