The Hindu Business Line : Benchmark Mutual postpones scheme

BENCHMARK Mutual Fund has decided to postpone the launch of the Nifty StraP (Systematically Trading Portfolio) scheme because it feels most market intermediaries are not sophisticated enough to properly promote it.

Mr Rajan Mehta, Benchmark Asset Management's Executive Director, said the mutual fund had decided to hold back the launch of StraP for the moment though its offer document was recently approved by SEBI.

The decision comes on the heels of its public offer for a Fund of Funds scheme where the response did not satisfy the company, said Mr Mehta.

Benchmark uses a quantitative method to invest in securities that aims to avoid a subjective assessment of a security's value.

Benchmark's brochures stress that its model's aim is to remove a fund manager's bias.

Mr Mehta said the model that was proposed for the StraP scheme is used to run the company's Portfolio Management Scheme (PMS) business.

He added that the PMS is receiving a good response, helped by direct promotion that the company is able to carry out. The minimum investment required by the PMS is Rs 10 lakh.