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Gold Benchmark Exchange Traded Scheme

Benchmark Mutual Fund has launched the country's first Gold Exchanged Traded Fund- Gold BeES. This open-ended fund will track domestic prices of gold through investments in physical gold. After the NFO, it will be listed on the National Stock Exchange.

During the NFO period, the fund will be available for subscription from February 15 to February 23, 2007. The minimum investment is Rs.10,000 and in multiples of Rs.1,000, thereafter. The units shall be allotted within 30 days from the date of the closure of the new fund offer and the same shall be deemed to be the date of allotment.

After the NFO, investors can buy or sell units of the fund from the secondary market on the NSE. The minimum number of units that can be bought or sold is one unit.

Alternatively, authorised participants and large investors can directly buy/sell Gold BeES from the fund in 'creation unit' size. Each creation unit consists of 1,000 units of Gold BeES and cash component, if any.

Gold BeES will be issued/ repurchased and traded compulsorily in dematerialised form. Each unit issued under the scheme will be approximately equal to the price of one gram of gold. As regards the asset allocation, the fund will invest 90-100 per cent of its assets in physical gold, while up to 10 per cent may be invested in debt and money market instruments.

The entry load during the new fund offer period will be as follows:

Investment Entry Load
Rs 10,000 - Rs 49.99 lakh 1.50%
Rs 50 lakh - Rs 1.99 crore 1.00%
Rs 2 crore - Rs 4.99 crore 0.50%
Rs 5 crore & Above Nil

Type of fund: Open-ended ETF
Minimum investment: Rs 10,000 during NFO
Fund Manager: Vishal Jain
Offer opens: February 15, 2007
Offer closes: February 23, 2007