The Hindu Business Line : Benchmark launches FoF

BENCHMARK Mutual Fund has launched its fund of funds scheme based on index investing. This is the first product in its category in India, according to Mr Rajan Mehta, Executive Director, Benchmark Mutual Fund.

The fund would invest in existing index funds of Benchmark Mutual fund - Junior BeEs and Nifty BeES and a combination of the two. Junior BeEs and Nifty BeEs are exchange-traded funds on NSE and they can be bought and sold like shares. The fund of funds schemes allows investors who do not have demat accounts and other requisites of trading in the stock markets to participate in these schemes.

"We had demand from many financial advisors to have index funds based on different indices in normal open ended fund format. The fund of fund structure will enable us to make indexing opportunities to a wider audience," said Mr Mehta.

"This thrust of this fund would be from the distribution side. Mutual fund distributors can now offer the option of exchange traded funds to their clients," said Mr Sanjiv Shah, Executive Director, Benchmark Asset Management Company.

The initial public offer of the fund remains open till June 22 and the minimum investment requirement is Rs 10,000.

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