Money Today-Plexus Management new fund evaluation
Benchmark S&P CNX 500 Fund
FUND FACTS
Offer open: Till 15 December
Scheme type: Open-ended exchange traded fund
Minimum investment: Rs 10,000; unit price: Rs 10
Loads: Entry load: Nil; Exit load: 1.5% (within 1 year); 1% (1-2 years); 0.5% (2-3 years)
Options: Growth and dividend (payout & reinvestment)
Investor grievances: Benchmark Mutual Fund; Tel: 022-66512727; Fax: 022-22003412;
E-mail: webmaster@benchmarkfunds.com
FUND STATS
Objective: To effect capital appreciation by investing in securities which constitute the S&P CNX 500 index, in the same proportion as in the index.
Benchmark: S&P CNX 500
Fund manager: Vishal Jain
Asset allocation: 90-100% securities and derivatives on securities constituting S&P CNX 500
0-10% DEBT & CASH
Comparable existing schemes: Among open-ended ETF funds, it’s the only one to follow S&P CNX 500.
FUND PROGNOSIS
Idea distiller: A fund that will actively mirror an index that covers nearly 92% of equity transactions and will incorporate all capitalisations and styles of investing. This will help it make money at most times.
Fund house report: Benchmark mutual fund manages assets worth Rs 3,413 crore across seven schemes (as on 31 October).
RETURNS PROFILE: 3/5
RISK PROFILE: 3/5
Fund manager’s report: Performance of fund manager
RETURNS PROFILE: 2/5
RISK PROFILE: 3/5
Scheme DNA: Four fundamentals of the fund scheme
Unique idea: Low
Risk: High
Return possibility: High
Operability/complexity: High
MARKET COVERAGE
S&P CNX 500: 92.61%
S&P CNX Nifty: 63.32%
BSE Sensex: 48.14%
INVESTOR TAKEAWAYS
Who should apply: All investors, as there is a probability that it will make money. It is a passive fund with a large basket and the fund house specialises in tracking indices. The current low of the markets is the icing on the cake.
Comments: This type of fund is investment-friendly for retail investors. The only damper is the high exit loads, especially in the first two years.
