Benchmark MF to float 9 sector funds

The funds would be based on sectoral indices of the NSE.

Very soon investors would be able to invest a sector without necessarily relying on the abilities of a fund manager.

Benchmark Mutual Fund, the first asset management company to introduce exchange-traded funds (ETFs) in the country, is planning to launch nine sectoral ETFs.

The funds would be based on sectoral indices of the National Stock Exchange. These sectors are automobiles, cement, electrical equipment, infotech, pharmaceuticals, power, services, steel and telecommunications. Currently, these sectoral indices are managed by the NSE, but not in the public domain.

"We have got the approval for sectoral exchange-traded funds and we would be launching these funds in phases based on demand for these themes," said Rajan Mehta, head of sales, Benchmark Mutual.

At present, the Benchmark Mutual manages four schemes "" Nifty BeES, Junior BeES, Bank BeES and Liquid BeES. While the first three are based on equity indices, Liquid BeES is a money market related product which is used as a cash management tool. Liquid BeES was the first of its kind in the world.

Apart from Benchmark, there are two other ETFs in the country one each from UTI Mutual and Prudential ICICI Mutual Fund. While Prudential Spice is an Sensex-based fund, UTI Mutual's Sunder is based on the 20-share Nifty index.