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From today onwards Indian investors can invest in China with India’s First International ETF-Hang Seng BeES listed on the NSE with symbol HNGSNGBEES. The fund was open for public subscription last month from 15-24 Feb.

ETFs are mutual fund units and comprise baskets of securities from the underlying Index, it trades like individual stocks on an exchange and unlike regular open-ended mutual funds, can be bought and sold throughout the trading hours like any stock and charge lower annual expenses than any open-ended index mutual fund.

The fund is first international ETF promoted by Benchmark Mutual Fund and tracks Hang Seng Index that comprises of 42 companies including HSBC Holdings, China Mobile, Bank of China, Cathay Pacific Airways and China Construction Bank Corporation and represents approximately 60% of the total market capitalisation of Hong Kong stock Exchange.

The asset allocation under this scheme will be 90-100% in securities constituting Hang Seng Index and; 0-10% in money market instruments, G-Secs, bonds, debt instruments and cash at call, mutual fund schemes / overseas exchange traded funds based on Hang Seng Index.

Hang Seng BeES is design to take care of the foreign exchange conversions and investors in India can invest in Rupee terms through their Dmat and Trading account or through a NSE member who can execute the order.

The fund is ideal for investors who want to have international exposure and are bullish on China, which even in the face of a global recession has been a source of interest for investors around the world.

Fund Name: Hang Seng Benchmark Exchange Traded Scheme (Hang Seng BeES)

Benchmark Index: Hang Seng Index

Investment Objective: The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of securities as represented by Hang Seng Index of Hang Seng Data Services Limited, by investing in the securities in the same proportion as in the Index

Option: The Scheme offers only Growth Option

Load: Entry Load: NIL ; Exit Load: NIL

Terms of Issue:

On the Exchange:The units of Hang Seng BeES are listed on the Capital Market Segment of the National Stock Exchange of India Ltd. (NSE). On NSE, the units of Hang Seng BeES can be purchased/sold in minimum lot of 1 unit and in multiples thereof.

Directly with the Fund:The Minimum number of units of Hang Seng BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof.

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.

Source: Business Wire India

 

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