Benchmark Funds

1. What is Liquid BeES ?

It is a unique liquid fund that is listed and traded on the Capital Market Segment of the National Stock Exchange of India Ltd. (NSE) just like a share. It is the first and only Liquid Exchange Traded Fund ( ETF ) in the World

The Face value of each unit of Liquid BeES is Rs. 1000 and the Fund will endeavors to keep the daily NAV at Rs. 1000. Since its launch ( July 2004 ) the NAVav has been constant at Rs 1000
The returns accrue to the investors in the form of daily dividend, which is compulsorily reinvested in the Scheme.
The units arising out of dividend reinvestment are credited to the Beneficiary ( (Demat ) account of the investors at least once in 30 days
Units of Liquid BeES are uploaded up to 3 decimals.
NSDL and CDSL have waived all charges ( ie custody and transaction charges ) relating to Liquid BeES

2. Why should I use Liquid BeES

Liquid BeES is very efficient and convenient solution for utilizing your cash balance between trades in equity market (NSE). When you sell your shares on NSE, you can instruct your broker to purchase Liquid BeES of equal amount. This will ensure that from the date of settlement ( T+2 ) you will start earning dividends. What's more, you do not have to go through the hassles of receiving a cheque, depositing it in your bank and again; after clearance, investing in liquid fund.

At the time of buying any shares also you need not go through process of redemption from a Liquid fund and writing and sending cheque to the broker. The only thing you need to do is instruct your broker to buy the shares you want and sell equivalent amount of Liquid BeES. The only effort you will make is to send a securities transfer instruction to your DP ( You can avoid this if you are using speed - e facility or have given power of attorney to your broker / dp )

3. How will I receive my returns?

The Fund declares daily dividend. If you have units in your demat account, you become entitled to this dividend. The dividend declared is reinvested in to units of Liquid BeES after deducting Dividend Distribution Tax. All such extra units are automatically credited to your demat account at least once in 30 days. Your entitlement of dividend is based on the units which you already have in your demat account plus the extra units which have been accrued to you but not credited the units can be in fractions upto three digits.

4. How do I sell fractional units?

If you are regular user, it makes sense to let the fractions accumulate and become whole units. Since there is no custody charge, it does not cost you anything to keep fractions in your demat account. However if you decide to sell entire holding. You can sell only whole units on the market, while for the fractions, Benchmark AMC offers anytime buyback of fractional units directly, free of charge. Please call us on our toll free number whenever you want to sell your fractions.

You can also transfer fractional units to any other demat account to make it rounded off unit.

5. What are the advantages of investing in Liquid BeES?

Investors

Set off trades from equity to cash and from cash to equity in the same settlement.
Earn returns on idle funds without moving to banking system.
Tax Free returns in the hands of an investor.
Reduce credit risk on brokers.
Can be used for paying margins to brokers.

Brokers

Reduce back office load and smoothen cash flows.
Reduce credit risk on Investor.
Pay margins to the Stock Exchanges. (As "Cash or Cash Equivalent" for the Cash Component portion of the Additional base Capital and Margins)

6. What are the charges for buying / selling Liquid BeES?

There are mainly two charges that an investor may incur.

1) DP charges: The transaction cost is zero, if an investor has a demat account with any of the following Depository Participants mentioned in Annexure I. An investor must confirm zero transaction cost for Liquid BeES from the respective DP, before buying Liquid BeES

2) Brokerage: There are many brokers who charge nil / negligible brokerage (to cover statutory charges) for the trades on Liquid BeES. An illustrative list is provided in Annexure I. The following brokers will be levying only statutory transaction charges like stamp duty, turnover charge etc. Securities Transaction Tax is not applicable to Liquid BeES as it is debt fund . The investor must confirm the brokerage rates from the respective broker, before buying Liquid BeES

Some of the Broker - DPS as mentioned in the list have made this product virtually free of any transaction costs for their clients.

7. What is impact cost or Liquidity of Liquid BeES on NSE?

You will always find a two-way quote of 999.99-1000.01 for large amounts on either side. One can trade very large amount at these rates and hence the maximum impact cost for any size of trade is 0.001%, which is roughly a tenth of the daily dividend.

8. What are the returns delivered by Liquid BeES?

Returns are in line with those of other daily dividend liquid funds. For recent performance and the fact sheet please call our toll free number or visit our website.

9. How can I buy / sell Liquid BeES directly from the Fund?

An investor can buy / sell 2,500 units (Rs 25,00,000) and in multiples of 1 unit thereafter directly with the Fund. For further details, please call our toll free number or visit our website

10. What will be the taxation?

The dividend / income distributed by the Fund is exempt in the hands of unit holders The fund is required to pay distribution tax on the amount of dividend declared

11. What is the rating of Liquid BeES?

Fitch Ratings India Pvt. Ltd. has assigned the following ratings to Liquid BeES
AAA ( ind ) : Highest protection against losses from credit defaults.
V1+: Funds rated V1+(ind) are considered to have the lowest market risk

12. What is the Investment Objective?

The investment objective of the scheme is to enhance returns and minimize price risk by investing in basket of call money, short-term government securities and money market instruments of short and medium maturities while maintaining the safety and liquidity.

Other Specifications:
Exchange Listing National Stock Exchange of India Ltd.
NSE symbol LIQUIDBEES
ISIN INF732E01037
Entry / Exit Load NIL
Other Codes Reuters - LBES.NS Bloomberg - LBEES IN

13. What is Benchmark Asset Management Company all about?

Benchmark Asset Management Company Pvt. Ltd, who is the fund manager for Liquid BeES is and SEBI Approved Asset Management Company. BAMC focuses on Indexing and quantitative asset management. BAMC floated the first exchange-traded fund in India called Nifty BeES. Currently it runs four exchange-traded funds including Liquid BeES and Nifty BeES. Other two ETFs are Junior BeES and Bank BeES. BAMC also launched India's first Market Neutral fund called Benchmark Derivative fund.

It also runs Portfolio Management Schemes based on quantitative models.

14. What are the risk factors?

Mutual funds and Securities investments are subject to market risks and there can be no assurance or guarantee that the objective of the Scheme will be achieved.
As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Scheme can go up or down depending on the factors and forces affecting the capital market.
Past performance of the Sponsors and its affiliates, Mutual Fund and its scheme(s) and the AMC does not indicate the future performance of the schemes of the Mutual Fund.
Liquid Benchmark Exchange Traded Scheme (Liquid BeES) is the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and the returns. Investors are therefore urged to study Offer Document carefully and consult their Investment Advisor before they invest in the Scheme.
Though ETFs are popular abroad, it is still a new concept in India
The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Scheme beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund.
Investors in the Scheme are not being offered any guaranteed or assured returns.
The Scheme's NAV will react to interest rate movements. The Investor could lose money over short periods due to fluctuation in the Scheme's NAV in response to factors such as fiscal, economic and political developments, changes in interest rates, inflation and other monetary factors.

Annexure I

List of DPs who have waived off charges and brokers who are charging Nil / Negligible brokerage charges

	Name of The Broker DP	DP Charges	Brokerage
1	A C Choksi Share Brokers Pvt Ltd	Yes
2	Action Financial Services ( India ) Limited	Yes	Yes
3	Alankit Assignments Ltd	Yes
4	Anand Rathi Securities Pvt Ltd	Yes	Yes
5	Arihant Fincap Limited	Yes
6	B D Shah Securities Ltd	Yes
7	Bharat Bhushan Equity Traders Ltd	Yes
8	Birla Sunlife Securities Ltd	Yes	Yes
9	Churiwala Securities Private Limited	Yes
10	DSP Merrill Lynch Ltd	Yes	Yes
11	Emkay Share and Stock Brokers Pvt Ltd	Yes
12	Geojit Securities Ltd	Yes
13	Global Trust Bank Limited	Yes
14	Grishma Securities Pvt Ltd	Yes
15	India Infoline Securities Pvt Ltd	Yes	Yes
16	Infrastructure Leasing & Financial Services Limited	Yes
17	Integrated Enterprises ( India ) Ltd	Yes
18	Inter - connected Stock Exchange of India Limited	Yes
19	Joindre Capital Services Ltd	Yes
20	K M Jain Stock Brokers Pvt Ltd	Yes
21	Karvy Consultants Ltd	Yes
22	Khambatta Securities Ltd	Yes
23	LKP Shares and Securities Limited	Yes
24	Mafatlal Securities Limited	Yes
25	Manubhai Mangaldas Securities Pvt Ltd	Yes	Yes
26	Mother India Securities Pvt Ltd	Yes
27	Motilal Oswal Securities Ltd	Yes	Yes
28	R N Patwa Shares and Stock Brokers Ltd	Yes
29	Prabhudas Lilladher Pvt Ltd	Yes
30	Refco - Sify Securities India Pvt Ltd	Yes
31	Ski Capital Services Ltd	Yes	Yes
32	SPS Share Brokers Private Limited	Yes
33	Stock Holding Corporation of India Ltd	Yes
34	Sushil Finance Consultants Ltd	Yes	Yes
35	SVV Share and Stock Brokers Pvt Ltd	Yes
36	Sykes and Ray Equities ( I ) Ltd	Yes	Yes
37	Techno Shares and Stocks Ltd	Yes	Yes
38	The Omniscient Securities Pvt Ltd	Yes
39	UTI Bank Ltd	Yes
40	Vogue Commercial Co Ltd	Yes
41	Yogesh Securities Pvt Ltd	Yes

Statutory Details:

Benchmark Mutual Fund has been set up as a Trust by Niche Financial Services Pvt. Ltd. with Benchmark Trustee Company Pvt. Ltd. as the Trustee (Trustee under the Indian Trust Act, 1882) and Benchmark Asset Management Company Pvt. Ltd. as the Investment Manager.

For further queries please contact your NSE broker or