28 Feb 2011 ... Value Averaging Investment Plan (VIP). For. A unique investment discipline
available to Indian Retail Investors ...
Value Averaging Investment Plan (VIP) For
A unique investment discipline available to Indian Retail Investors
About Benchmark S&P CNX 500 Fund
About S&P CNX 500 Index Scientifically developed index managed by IISL (Joint Venture of NSE & CRISIL) Broad based benchmark of the Indian Capital Market Industry weightages in the index mirror the industry weightages in the universe Index values are calculated using free float market capitalization weighted method The base year for S&P CNX 500 index is 1994 with base value being 1000 Represents about 87.23% of total market capitalisation and about 90.26% of the total turnover (in Rs.) on the NSE as on Feb 28, 2011
About S&P CNX 500 Index Represents around 72 Industry Indices Flexibility in the number of Industry Indices & companies within each Industry Index, so as to attain the objective of being a dynamic market indicator Selection of the stocks is based on criteria such as
Industry representation Trading Interest Financial Performance Others
* - For criteria of S&P CNX 500 Index kindly refer the indices section of NSE website i.e. www.nseindia.com
850000 750000 650000 550000 450000 350000 250000 150000
S&P CNX 500
Rs. Initial Investment As On Jan 1st, 1998 Value As On Feb 28th, 2011 CAGR(%)
S&P CNX Nifty
BSE Sensex
S&P CNX 500 S&P CNX Nifty BSE Sensex 100000
100000
100000
627924
493271
482415
14.97%
12.89%
12.69%
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Source: MFI Explorer & Internal. Data as on 28th Feb 2011
01-Jan-11
01-Jan-10
01-Jan-09
01-Jan-08
01-Jan-07
01-Jan-06
01-Jan-05
01-Jan-04
01-Jan-03
01-Jan-02
01-Jan-01
01-Jan-00
01-Jan-99
50000
01-Jan-98
Normalised To 1 Lac As On Jan 01, 1998
Performance - Indices
Performance - Indices 60 49
45
48
(%)
40
20
15
13
5 Yrs Rolling, Frequency – Daily, Period – 4th Jan 99 to 28th Feb 2011
13
0
-20
Minim um -8 -7 -10 S&P CNX 500
M axim um
S&P CNX Nifty
Average
BSE Sensex
80 66 60
63
40 (%)
3 Yrs Rolling, Frequency – Daily, Period – 3rd Jan 97 to 28th Feb 2011
59
13
20
12
12
0 Minim um -20
-16 -23
Maxim um
Average
-18
-40 S&P CNX 500
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Source: MFI Explorer & Internal. Note: The above performance is CAGR(%)
S&P CNX Nifty
BSE Sensex
Benchmark S&P CNX 500 Fund The fund which could be held as a core holding in the portfolio Gives you participation in top 500 companies in India Includes mid cap as well as small cap companies and hence less likely to miss out on emerging star An Index fund from Benchmark Mutual Fund, who is committed to philosophy of indexing
Benchmark S&P CNX 500 Fund is a ‘Total Stock Market Index Fund’ that eliminates the risk of individual stocks, sectors, individual fund manager etc i.e all ‘Unsystemic risks’ only the ‘Systemic’ or market risk remains which is common to all equity investments
Overview Investment Objective The investment objective of the Benchmark S&P CNX 500 Fund 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
Investment Pattern Type of Instruments
Normal Allocation (% of Net Assets)
Securities constituting S&P CNX 500 and derivatives on the securities constituting S&P CNX 500
90-100%
Money Market Instruments, G-Secs, Bonds, Debentures and Cash at call
0-10%
The notional exposure of Scheme in derivative instruments shall be restricted to 10% of the net assets of the Scheme.
Options
Growth Dividend – a) Dividend Payout B) Dividend Reinvestment
Scheme Features Minimum Application Amount Rs. 10,000/- (Rupees Ten Thousands) and in multiple of Re. 1/- thereafter in an option of the Scheme.
Systematic Investment Plan (SIP) The minimum amount for each installment is Rs. 1,000/- and in multiple of Re. 1/- thereafter and minimum number of installment for SIP will be 12. Please refer to SIP Enrolment Form for term & conditions before enrolment.
Benchmark Index - S&P CNX 500 Index Entry Load - Nil Exit Load
Redeemed within 1 year from date of allotment – 1.50% Redeemed after 1 years from date of allotment – Nil
Investor benefits and general services Investors can also subscribe to the units through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE) and Mutual Fund Service System (MFSS) of NSE. Investors can subscribe units either in physical or demat form. The AMC will calculate and disclose the NAV of the Scheme at the close of every Business Day.
Note: Please refer to Scheme Information Document for more details.
Does Indexing Work In India ?
Popular Perceptions Indian markets are inefficient and Indexing does not work Good Fund Managers will out perform indices consistently Past performance is useful tool to decide future performance
Let us do some reality check....
Analysis Methodology All diversified equity schemes with benchmark index as S&P CNX Nifty/BSE Sensex/BSE 100/CNX 100 and having track record of at least 7 calendar years as on Dec 31, 2010 (Based on this criteria we have selected 53 schemes) 3 years rolling returns (CAGR %) calculated on daily basis have been considered for each scheme under analysis Average returns of diversified equity schemes have been considered for calculating out performance over Nifty BeES in absolute terms, also each individual schemes performance is compared vis-à-vis Nifty BeES for calculating no. of funds underperformed(%) on daily basis for the period under analysis The start date (i.e 22nd Dec 2006) of rolling returns is the day when all the schemes under analysis have completed 3 yrs time frame since inception. The last observation date is Dec 31, 2010 All the performance are calculated for growth/dividend reinvestment plan (All payouts during the period have been reinvested in the units of the Scheme at the then prevailing NAV)
Active Funds Outperform ance/Underperform ance Over Nifty BeES
8 6 4 2 0 -2 -4 -6 -8
100 80 60 40
(%)
20
Absolute %Outperformance - LHS
19-Nov-10
14-Sep-10
12-Jul-10
10-May-10
3-Mar-10
22-Dec-09
16-Oct-09
10-Aug-09
08-Jun-09
26-Mar-09
16-Jan-09
06-Nov-08
25-Aug-08
17-Jun-08
09-Apr-08
16-Jan-08
04-Oct-07
27-Jul-07
23-May-07
08-Mar-07
0 22-Dec-06
(%)
Indexing Vs Active Management
No. of Funds Underperformed (%) - RHS
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
Data as on 31st Dec 2010. Source: MFI Explorer & Internal
About Value Averaging
What is Value Averaging? It is an averaging technique where portfolio balance increases in defined way irrespective of market movement It was developed by former Harvard University professor Michael E. Edleson The investment amount for each period is different Investment amount is calculated based on the following formula
Investment Amount = Target Portfolio Value – Actual Portfolio Value
Target Portfolio Value is calculated based on the long term average return
Value Averaging - Advantages As a discipline it invests more rupee amount when markets are lower and less when markets are higher As a discipline, it helps investor overcome emotions In most cases of back testing it generates higher returns than normal SIP which is based on rupee cost averaging technique It achieves lower cost of acquisition in most scenarios of back testing as compared to SIP The probability of achieving target value for a portfolio is much higher and hence ideal for financial planning Longer the investor horizon, higher the benefits
Source : Internal
VIP - Salient Features Very powerful combination of an ideal long term investment discipline combined with ideal equity fund for long term core holding Very simple to understand and operate Facility of advance SMS intimation of monthly debit amount The investment objective of Benchmark S&P CNX 500 Fund 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 No Fund Manager risk Lower annual expenses
VIP - Salient Features Nominal Investment Amount This is the amount which the investor will invest at the time of enrolment for VIP. The nominal amount would be used to calculate target portfolio amount and in the circumstances when market rises in straight line giving the target return, this amount would be the actual amount to be invested. The minimum nominal amount shall be Rs. 2,000/- and in multiples of Re.1/- thereafter and there is no maximum cap on this amount.
Minimum Investment Amount Per Month = 0 (Zero) Maximum Monthly Debit Amount This amount is the maximum amount which the investor would allow the Fund to debit from their account. There is no upper limit for this amount but the amount shall be higher than the nominal amount.
The rate of return to be considered for VIP is 15% per annum, based on which the monthly installments of investments to be invested by the investor would be calculated.
Note: Please refer to Scheme Information Document for more details.
Value Averaging - Challenges Classical Value Averaging posses some challenges which has been overcome by introducing some practical modifications In constantly falling markets the investment amount may increase much beyond the investor’s cash flow (Addressed by introducing investor defined maximum monthly debit in the Scheme) In rising market it generates sell which may result in unwarranted short term taxation and transaction charges (Addressed by avoiding sell / redemption and instead have minimum investment amount as zero in the Scheme) If left to Individual investors, they may select aspirational rate of target return rather then long term average, which can perpetually result in higher investment amount and strained cash flows (Addressed by keeping default target rate of return at 15% p.a. in the Scheme which is a long term historical return offered by S&P CNX 500 index)
Distinguishing Features – Value Averaging Vs. Rupee Cost Averaging Parameters
Value Averaging (VIP)
Rupee Cost Averaging (SIP)*
Performance
Better compared to SIP in most scenarios of back testing
Lower compared to VIP in most scenarios of back testing
Cost of acquisition of units
Lower as compared to SIP in most scenarios of back testing
Higher as compared to VIP in most scenarios of back testing
Monthly investment amount
Variable
Fixed
Portfolio volatility
Lower compared to SIP
Higher compared to VIP
Expected growth rate of portfolio
Yes, should be known while starting the investment
Not applicable
Target maturity amt. for meeting financial goals
Yes, can be achieved (if mkt. returns are less More amt. is invested.)
Not applicable
*SIP – Systematic Investment Plan
Performance – VIP Vs SIP Returns – CAGR*(%) VIP
SIP
CAGR* Outperformance of VIP over SIP
Dec-98
-3.37%
-5.97%
2.61%
95.14%
Dec-99
38.97%
38.40%
0.57%
91.34%
Dec-00
13.03%
9.01%
4.01%
96.71%
Dec-01
-8.04%
-11.99%
3.94%
90.97%
Dec-02
-0.56%
-4.21%
3.66%
94.45%
Dec-03
50.11%
48.72%
1.38%
92.23%
Dec-04
48.54%
46.83%
1.72%
82.64%
Dec-05
50.01%
47.14%
2.88%
90.68%
Dec-06
40.98%
38.88%
2.10%
91.24%
Dec-07
54.54%
52.52%
2.02%
89.16%
Dec-08
-21.88%
-21.03%
-0.86%
87.41%
Dec-09
27.60%
17.86%
9.74%
86.69%
Dec-10
27.25%
23.25%
4.00%
85.96%
Average
24.40%
21.49%
2.91%
90.36%
Rolling Three Year Period Ending on
VIP average cost$ As % of SIP Cost
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments . CAGR* - Compounded Annual Growth Return, $-VIP average cost calculation: A = Average cost of VIP as of a date, for the three year rolling period, is arrived by dividing the total investment till date by total no. of units held till date. B = Average cost of SIP as of a date, for the three year rolling period, is arrived by dividing the total investment till date by total no. of units held till date. VIP average cost as a % of SIP average cost = (A) / (B) (as derived above) in percentage terms. Note: (1) In the above table S&P CNX 500 index is the underlying in which we are investing every month for a particular period. (2) For VIP the nominal amount considered for investment is Rs.2000. The minimum and the maximum amount considered for investment are 0 (Zero) and Rs. 20,000 per month and the target rate of return considered is 15% p.a. (3) For SIP a fixed amount of Rs. 2,000 per month is considered for investment. (4) The above data is for illustrative purpose only.
VIP - A Dynamic Investment Tool 22000 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0
6000 VIP investment amount reduces to Rs.0/- when index rises as against Rs.2000 invested in SIP
5000 4000 3000 2000 1000
S&P CNX 500 Index Value
M o nthly Inv estm ent-VIP -LH S
M o nthly Inves tm ent-SIP -LH S
2-Feb-09
3-Nov-08
1-Aug-08
2-May-08
1-Feb-08
1-Nov-07
1-Aug-07
3-May-07
1-Feb-07
1-Nov-06
1-Aug-06
0 2-May-06
Investment Amt(Rs.)
(For Illustrative Purpose Only)
VIP investment amount increases to Rs.20000/when index falls as against Rs.2000 invested in SIP
Index Value-R H S
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Note: (1) In the above graph of VIP & SIP, S&P CNX 500 index is the underlying in which we are investing every month for the period between May 2006 to Apr 2009. (2) For VIP the nominal amount considered for investment is Rs.2000. The minimum and the maximum amount considered for investment are 0 (Zero) and Rs. 20,000 per month and the target rate of return considered is 15% p.a. (3) For SIP a fixed amount of Rs. 2,000 per month is considered for investment. (4) The above data is for illustrative purpose only.
VIP – An Illustration NAV
Month
1 2 3 4 5 6
VIP Investor Target Actual Portfolio % VIP Total Portfolio Units Value Rs. Appreciation/ Value(Rs.) Amount Bought No. of (Rs.) Depreciation (Rs.) Units 10 11 12 13 11 10
10 9.09 8.33 -15.38 -9.09
2000 4025 6075.31 8151.25 10253.14 12381.31
0 2200 4390.91 6581.59 6897.21 9321.04
2000 1825 1684 1570 3356 3060
200 166 140 121 305 306
200 366 506 627 932 1238
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
Note: (1) The above NAV data is hypothetical. (2) For VIP the nominal amount considered for investment is Rs.2000. The minimum and the maximum amount considered for investment are 0 (Zero) and Rs. 20,000 per month and the target rate of return considered is 15% p.a. (3) The above data is for illustrative purpose only.
VIP – An Illustration S IP Investor M onth 1 2 3 4 5 6 7 8 9 10 11 12
NAV (Rs.) SIP Amoun t Un its (Rs.) Bough t 10 11 12 13 11 10 9 8 9 8 9 10
2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
200 182 167 154 182 200 222 250 222 250 222 200
VIP In vestor VIP Units Amo unt Boug ht (Rs.) 2000 200 1825 166 1684.40 140 1569.67 121 3355.93 305 3060.27 306 3392.90 377 3796.82 475 119.25 13 4339.56 542 0 0 0 0
Total Amo unt Invested (Rs.) 24000 25144 Total No. of Units Bo ught 2451 2645 Average Co st Per Unit (Rs.) 9.79 9.50 Market Value As on June (Rs.) 24508 26454 CAGR(%) 4.95% 10.60% Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Note: (1) The above NAV data is hypothetical. (2) For VIP the nominal amount considered for investment is Rs.2000. The minimum and the maximum amount considered for investment are 0 (Zero) and Rs. 20,000 per month and the target rate of return considered is 15% p.a. (3) For SIP a fixed amount of Rs. 2,000 per month is considered for investment. (4) The above data is for illustrative purpose only. (5) CAGR(%) is based on XIRR calculations.
Value Averaging Transfer Plan (VTP) An Investor who has decided how much to invest in Benchmark S&P CNX 500 Fund but does not know when to invest can avail this Plan It works as follows
Investor invests the target lump sum amount in Benchmark Short Term Fund
Investor than fills up VTP form, where he/she specifies the Nominal amount at the time of initial investment (For e.g. - If an investor wants to deploy a lump sum amount of Rs. 12 Lakhs over one year, then Rs. 1,00,000 can be specified as nominal amount)
Every month, based on value averaging method of Benchmark S&P CNX 500 Fund a variable amount will be transferred from his/her investment in Benchmark Short Term Fund to Benchmark S&P CNX 500 Fund
Amount will vary each month between minimum (zero) and maximum as mentioned in the enrolment form or amount available in Benchmark Short Term Fund.
Entry and exit load in Benchmark Short Term Fund is Nil, hence investors need not worry about entry and exit from Benchmark Short Term Fund
Note: Please refer to Scheme Information Document & VTP enrollment form for more details.
About Benchmark
Benchmark - Highlights Differentiation in Investment Philosophy, Product structures and Product delivery mechanism Clear Positioning – Indexing and Quantitative Asset Management A track record of successfully conceptualizing and launching innovative products with many firsts Excellent track record in investment performance
About Us India’s First Asset Management Company to focus on Indexing and Quantitative Asset Management Endeavour to bring newer products in India Run and Co-promoted by Professionals with long experience in Indian and International Financial Markets Average assets under management of Benchmark Mutual Fund for month of Feb 2011 is approximately Rs. 3369.07 Crores
About Us Mutual Fund Products :
Nifty BeES – The First ETF In Asia (Barring Japan) Junior BeES – The First Midcap ETF In India Liquid BeES – The First Money Markey ETF In The World and The Only One In India Bank BeES – The First Sector Based ETF In India Benchmark Derivative Fund – The First Equity Arbitrage Fund In India Gold BeES – The First Gold ETF In India BEDOF – Benchmark Equity And Derivatives Opportunities Fund PSU Bank BeES – The First PSU Bank Sector Based ETF In India Benchmark S&P CNX 500 Fund – The First and Only Index Fund In India benchmarked to S&P CNX 500 Index Shariah BeES – The First S&P CNX Nifty Shariah Based ETF In India Hang Seng BeES – India’s First ETF investing in overseas securities which are constituents of Hang Seng Index Benchmark Short Term Fund Infra BeES - India’s First Index ETF on Infrastructure sector
Achievement Nifty Benchmark Exchange Traded Scheme (Nifty BeES) was Awarded Best Performing Mutual Fund of The Year Award in the Index Fund Category at the CNBC – TV18 – CRISIL Mutual Fund of The Year Award 2007, 2008, 2009 & 2010* respectively
Nifty BeES 2007
Nifty BeES 2008
Nifty BeES 2009
Nifty BeES 2010
Eligibility Criteria & Methodology In total 11 schemes in year 2007, 12 schemes in year 2008, 13 schemes in year 2009 and 14 schemes in year 2010 were eligible for award universe. Schemes present in all four quarterly CRISIL Mutual Fund Ranking for each calendar year were considered for the award. The award is based on consistency of the scheme’s performance in the four quarterly CRISIL Mutual Fund Rankings released during the respective calendar year. The individual CRISIL Mutual Fund Ranking parameter scores averaged for the four quarters for each calendar year were further multiplied by the parameter weights as per the CRISIL Mutual Fund Ranking methodology to arrive at the final scores. A detailed methodology of the CRISIL Mutual Fund Ranking is available at www.crisil.com. Past performance is no guarantee of future results. Rankings and Award Source: CRISIL Fund Services, CRISIL Ltd.
* - Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
Nifty Benchmark Exchange Traded Scheme (Nifty BeES) Investment Objective The investment objective of Nifty BeES is to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the S&P CNX Nifty Index. However, the performance of Scheme may differ from that of the Underlying Index due to tracking error.
Investment Pattern Upto 100% of net assets in Securities covered by the S&P CNX Nifty Index; Upto 10% of net assets in Money Market instruments, convertible bonds & other securities including cash at call but excluding subscription & redemption Cash Flow
An Open-ended, exchange listed, Index Scheme Terms of Issue On NSE, the units of Nifty BeES can be purchased/sold in minimum lot of 1unit and in multiples thereof. Directly with the Fund - The minimum number of units of Nifty BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof.
Pricing : Each Unit is priced at 1/10th of the S&P CNX Nifty Index Entry & Exit Load : NIL Options: The Scheme offers only Growth Option. Units of the scheme will be issued/repurchased and traded compulsorily in demat form.
Benchmark Short Term Fund Investment Objective The investment objective of the Scheme is to enhance returns with minimum risk by investing in a portfolio of money market and debt instruments while maintaining the safety and liquidity.
Investment Pattern 0% - 100% of net assets in Debt Instruments having residual maturity upto 1 year; 0% - 50% of net assets in Debt Instruments having a residual maturity between 1 year and 3 years.
An Open-ended Debt Scheme Minimum Application Amount Rs. 10,000/- (Rupees Ten Thousand only) and in multiples of Re.1/- thereafter in an Option of the Scheme. Additional investment would be Rs. 1000 (One Thousand Only) and in multiples of Re. 1/thereafter.
Systematic Investment Plan (SIP) The minimum amount of Rs. 1,000/- for monthly frequency and in multiples of Re.1/- with minimum 12 installments in an option of the Scheme.
Benchmark Short Term Fund Value Averaging Transfer Plan (VTP) The minimum nominal amount of Rs. 2,000/- for monthly frequency and in multiples of Re.1/- with minimum 12 installments in an option of the Scheme and there is no maximum cap on this amount. The amount would be calculated as per the formula of value averaging investment plan of Benchmark S&P CNX 500 Fund.
Options
Growth Dividend
Dividend Reinvestment (Daily and Weekly Frequency)
Entry & Exit Load Nil
Benchmark Index CRISIL Liquid Fund Index
Benchmark Short Term Fund Special Facilities Available (Please refer to the Enrolment Form for terms & conditions before enrolment)
Value averaging Transfer Plan (VTP) Systematic Investment Plan (SIP) Systematic Transfer Plan (STP)
Investor benefits and general services Investors can also subscribe to the units through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE) and Mutual Fund Service System (MFSS) of NSE. Investors can subscribe units either in physical or demat form. The AMC will calculate and disclose the NAV of the Scheme at the close of every Business Day.
Disclaimer RISK FACTORS Pertaining To VIP: • As the monthly investment amount is variable, it would be difficult for the investors to manage their cash flows. • If the market moves in one direction i.e. either up or down, VIP may generate less return compared to SIP. • If the NAV of the Benchmark S&P CNX 500 Fund continuously decreases, the absolute loss to the investor would be more than what the investor would have incurred by investing in SIP. General: • All Mutual funds and Securities investments are subject to market risks and there can be no assurance or guarantee that the objective of the Schemes will be achieved. • As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Schemes can go up or down depending on the factors and forces affecting the securities market/bullion market. • Past performance of the Sponsors / Investment Manager / Mutual Fund and its affiliates does not indicate the future performance of the Schemes and may not necessarily provide a basis of comparison with other investments. • Nifty Benchmark Exchange Traded Scheme (Nifty BeES), Nifty Junior Benchmark Exchange Traded Scheme (Junior BeES), Banking Index Benchmark Exchange Traded Scheme (Bank BeES), PSU Bank Benchmark Exchange Traded Scheme (PSU Bank BeES), Shariah Benchmark Exchange Traded Scheme (Shariah BeES), Infrastructure Benchmark Exchange Traded Scheme (Infra BeES), Liquid Benchmark Exchange Traded Scheme (Liquid BeES), Gold Benchmark Exchange Traded Scheme (Gold BeES), Hang Seng Benchmark Exchange Traded Scheme (Hang Seng BeES), Benchmark Derivative Fund (BDF), Benchmark Equity & Derivatives Opportunities Fund (BEDOF), Benchmark S&P CNX 500 Fund and Benchmark Short Term
Contd… Fund are names of the Schemes and do not in any manner indicate either the quality of the Schemes or its future prospects and its returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Schemes. • The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund. • The Schemes are not guaranteed or assured returns Schemes. • NAV of the Schemes will react to the securities market/bullion market movements. The Investor could lose money over short periods due to fluctuation in the NAV of the Schemes in response to factors such as economic and political developments, changes in interest rates and perceived trends in securities prices/bullion prices, market movements and over longer periods during market downturns, respectively. • Benchmark Derivative Fund (BDF), Benchmark Equity & Derivatives Opportunities Fund (BEDOF), Benchmark S&P CNX 500 Fund and Benchmark Short term Fund are required to have (i) minimum 20 investors and (ii) no single investor holding>25% of corpus. If the aforesaid point (i) is not fulfilled within the prescribed time, the Scheme will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribed period, the investor's holding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. • “S&P®” and “Standard and Poor’s®” are trademarks of the McGraw-hill Companies, Inc. (“S&P”), and have been licensed for use by India Index Services & Products Limited in connection with the S&P CNX 500 Index. The Product is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P"). Neither IISL nor S&P makes any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product.
Contd… • Please read the full Disclaimers in relation to the S&P CNX 500 Index in the Scheme Information Document (SID) before investing. • The returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. • Please read the Scheme Information Documents (SID) and Statement of Additional Information (SAI) carefully before investing. • For Schemes specific risk factors, please refer SID. Statutory Details: Constitution: Benchmark Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882 Trustee: Benchmark Trustee Company Pvt. Ltd. Investment Manager: Benchmark Asset Management Company Pvt. Ltd. Sponsor: Niche Financial Services Pvt. Ltd. For more details please refer the SID, Key Information Memorandum and Application Form which are available at the Office of the AMC or can be downloaded from www.benchmarkfunds.com
Thank You
