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1. What is Liquid BeES?

It is a unique AAA rated 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.

FREQUENTLY ASKED QUESTIONS (FAQS)


EARN BETWEEN TRADES

2. Why should I use Liquid BeES?

The returns accrue to the investors in the form of daily dividend, which is compulsorily reinvested in the Scheme Units of Liquid BeES are uploaded up to 3 decimals

The Face Value of each unit of Liquid BeES is Rs. 1000 and the Fund endeavors to keep the daily NAV at Rs. 1000. Since its launch (July 2003) the NAV has been constant at Rs. 1000 The units arising out of dividend reinvestment are credited to the beneficiary (Demat) account of the investors at least once in 30 days NSDL and CDSL have waived all charges (i.e. custody and transaction charges)

3. How will I receive my returns?

4. How do I sell Fractional Units?

of Liquid BeES. The only effort required here is to send a security 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) relating to Liquid BeES.

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 the form of units of Liquid BeES after deducting Dividend Distribution Tax; hence the returns in your hands are absolutely TAX FREE. If you regularly invest in Liquid BeES, 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, you can sell whole units on the market, while for the fractions, Benchmark AMC offers anytime buyback of fractional units directly free of charge.

If Liquid BeES are used, while buying any shares the process of redemption from a Liquid Fund and depositing a cheque to the broker can be avoided. The only thing you need to do is instruct your broker to buy the shares you want and sell equivalent amount

Liquid BeES is a 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. Also you do not have to go through the hassles of receiving a cheque, depositing it in your bank and after clearance, investing it in a Liquid Fund.

For Investors

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

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

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

For Brokers

Reduce back office load and smoothens cash flows Reduce credit risk on investor Pay Margins to the Stock Exchanges with 10% hair cut (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:

9. How can I buy/sell Liquid BeES directly from the Fund? 10.What is the rating of Liquid BeES? 11.What is the Investment Objective? Other Specifications:
Exchange Listed of India Ltd ISIN NSE Symbol

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.

An investor can buy/sell 2,500 units (Rs. 25,00,000) and in multiples of 1 units thereafter directly with the Fund. For further details, please call our toll free number or visit our website. Fitch Rating India Pvt. Ltd has assigned the following ratings to Liquid BeES.

AAA (ind): Funds rated AAA (ind) gives highest protection against losses from credit defaults.

7. What is the impact cost of liquidity of Liquid BeES on NSE? Some of the Broker/DPs as mentioned in the list have made this product virtually free of any transaction costs for their clients.

2) Brokerage Charges: 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.

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.
National Stock Exchange LIQUIDBEES Nil INF732E01037

Fitch Indias ratings are opinions on credit quality only and are not recommendations to buy, hold or sell any securities. The rating of Fitch is not an opinion on AMCs willingness or ability to make timely payment to investors.

V1+ (ind): Funds rated V1+ (ind) are considered to have the lowest market risk.

8. What are the returns delivered by Liquid BeES? You will always find a two-way quote of 999.99 1001.01 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. 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.

12.What is Benchmark Asset Management Company all about?


Entry / Exit Load Other Codes Reuters LBES.NS One unit/share Minimum Lot Total Expense Ratio ICICI Direct LIBEES 0.60% p.a. Bloomberg LBEES:IN

Benchmark Asset Management Company Pvt. Ltd. is the Investment Manager to Benchmark Mutual Fund. It is the first and only company with focus on Indexing and Quantitative Asset Management style.

> Currently it manages 9 Mutual Fund Schemes out of which 6 are Exchange Traded Funds. The details of various schemes are mentioned below: Annexure I Bank BeES: The First Sector Index Fund and ETF in India Gold BeES: The First Gold ETF in India PSU BeES: The First PSU Bank Sector Index Fund and ETF in India

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.

Depository Participants who have waived all charges, i.e. Transaction and Custody charges for Liquid BeES > It is also managing Portfolio Management Schemes based on Quantitative Models.
Kantilal Chhaganlal Securities Pvt. Ltd. Karvy Consultants Ltd. KB Capital Markets Pvt. Ltd. Khambatta Securities Ltd. LKP Securities Ltd. Mafatlal Securities Ltd. Maheshwari Technical & Financial Services Ltd. Manali Trading & Holdings Pvt. Ltd. Manashvi Securities Ltd. Mangal Keshav Securities Ltd. Manubhai Mangaldas Securities Pvt. Ltd. Mehta Vakil & Co. Pvt. Ltd. Morgan Stanley India Financial Services Pvt. Ltd. Mother India Securities Pvt. Ltd. Motilal Oswal Securities Ltd. Nirmal Bang Securities Pvt. Ltd. o3 Securities Pvt. Ltd. Orbis Financial Corporation Ltd. PACE Financial Services Prabhudas Lilladher Pvt. Ltd. Pratibhuti Viniyog Ltd. R N Patwa Shares and Stock Brokers Ltd. Refco - Sify Securities India Pvt. Ltd. RRS Shares & Stock Brokers Pvt. Ltd. Saaketa Consultants Ltd. Sajag Securities Ltd. Satco Securities & Financial Services Ltd. Sharavu Financial Pvt. Ltd. SKI Capital Services Ltd. SKP Securities Ltd. SMC Global Securities Ltd. SPS Share Brokers Pvt. Ltd. Stock Holding Corporation of India Ltd. Sunflower Broking Pvt. Ltd. Sunidhi Securities and Finance Ltd. Sushil Finance Consultants Ltd. SVV Share and Stock Brokers Pvt. Ltd. Sykes and Ray Equities (I) Ltd. Systematix Shares & Stocks (I) Ltd. Techno Shares and Stocks Ltd. The Omniscient Securities Pvt. Ltd. UTI Bank Ltd. VNS Finance & Capital Services Ltd. Vogue Commercial Co Ltd. Way2Wealth Brokers Pvt. Ltd. A C Choksi Share Brokers Pvt. Ltd. Abhipra Capital Ltd. Action Financial Services (India) Ltd. Ajmera Associates Ltd. Alankit Assignments Ltd. Allegro Capital Advisors Pvt. Ltd. Anagram Stock Broking Ltd. Anand Rathi Securities Pvt. Ltd. Antique Stock Broking Ltd. Arihant Capital Markets Ltd. Arihant Fincap Ltd. Axis Shares & Securities Pvt. Ltd. B D Shah Securities Ltd. Balance Equity Broking (India) Pvt. Ltd. Bharat Bhushan Equity Traders Ltd. Birla Sunlife Securities Ltd. Bonanza Portfolio Ltd. CD Equisearch Pvt. Ltd. Churiwala Securities Pvt. Ltd. Composite Investments Pvt. Ltd. Crosseas Capital Services Pvt. Ltd. Dalal & Broacha Stock Broking Pvt. Ltd. DBS Cholamandalam Securities Ltd. Dhyan Stock Broking Pvt. Ltd. DSP Merrill Lynch Ltd. Eastern Financiers Ltd. Emkay Share and Stock Brokers Pvt. Ltd. Eureka Stock & Share Broking Services Ltd. Frontline Capital Services Ltd. Gandhi Securities & Investment Pvt. Ltd. Geojit Securities Ltd. Global Trust Bank Ltd. GoldCrest Capital Markets Ltd. Grishma Securities Pvt. Ltd. IFCI Financial Services Ltd. India Capital Markets Pvt. Ltd. India Infoline Securities Pvt. Ltd (5paise.com) Infrastructure Leasing & Financial Services Ltd. Integrated Enterprises (India) Ltd. Inter - Connected Stock Exchange of India Ltd. Inventure Growth & Securities Ltd. Jhaveri Securities Pvt. Ltd. JM Financial Services Pvt. Ltd. Joindre Capital Services Ltd. K M Jain Stock Brokers Pvt. Ltd. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90.

Junior BeES: The First and only Midcap Index Fund and ETF in India

Nifty BeES: The First ETF in Asia (Barring Japan)

Liquid BeES: The First and only Liquid ETF in the World Benchmark Equity & Derivatives Opportunities Fund: The Equity Arbitrage and Volatility Trading (various options based strategies) Fund Benchmark Split Capital Fund - Balanced Shariah BeES: Companies that are Sahriah compliant from the Nifty Sahriah index. Benchmark Derivative Fund: The First Equity Arbitrage Fund in India

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2. 3. 4.

Brokers charging brokerage only to cover statutory minimum charges on Liquid BeES transactions applicable to all clients, not restricted only to DP clients
Action Financial Services (India) Ltd. Abhipra Capital Ltd. Ajmera Associates Ltd. Anagram StockBroking Ltd. Antique Stock Broking Ltd. Arihant Fincap Ltd. Anand Rathi Securities Pvt. Ltd. Arihant Capital Markets Ltd. Axis Shares & Securities Pvt. Ltd. 32. Mehta Vakil & Co. Pvt. Ltd. 36. PACE Financial Services 31. Marwadi Shares and Finance Ltd. 29. Mangal Keshav Securities Ltd. 30. Manubhai Mangaldas Securities Pvt. Ltd. 28. Manashvi Securities Ltd.

6.

5.

7.

8.

11. Bonanza Portfolio Ltd.

9.

10. Balance Equity Broking (India) Pvt. Ltd. 12. Composite Investments Pvt. Ltd. 14. Dhyan Stock Broking Pvt. Ltd. 15. Eastern Financiers Ltd. 13. Crosseas Capital Services Pvt. Ltd.

37. Prabhudas Lilladher Pvt. Ltd. 41. Sajag Securities Ltd. 44. SKP Securities Ltd. 40. Saaketa Consultants Ltd. 38. Pratibhuti Viniyog Ltd.

35. Nirmal Bang Securities Pvt. Ltd.

33. Morgan Stanley India Financial Services Pvt. Ltd. 34. Motilal Oswal Securities Ltd.

39. RRS Shares & Stock Brokers Pvt. Ltd.

16. Gandhi Securities & Investment Pvt. Ltd. 17. GoldCrest Capital Markets Ltd. 18. Grishma Securities Pvt. Ltd. 19. IFCI Financial Services Ltd. 22. Jhaveri Securities Pvt. Ltd. 20. India Infoline Securities Pvt. Ltd.

42. SMC Global Securities Ltd. 46. Sushil Finance Consultants Ltd. 47. Sushil Stockbroker Pvt. Ltd. 45. Sunflower Broking Pvt Ltd. 43. SKI Capital Services Ltd.

25. KB Capital Markets Pvt. Ltd.

23. JM Financial Services Pvt. Ltd.

21. Inventure Growth & Securities Ltd.

26. Maheshwari Technical & Financial Services Ltd. 27. Manali Trading & Holdings Pvt. Ltd.

24. Kantilal Chhaganlal Securities Pvt. Ltd.

48. Sykes and Ray Equities (I) Ltd. 52. United Credit Securities Ltd. 50. Techno Shares and Stocks Ltd.

49. Systematix Shares & Stocks (I) Ltd.

RISK FACTORS: 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 and money 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 and may not necessarily provide a basis of comparison with other investments. Liquid Benchmark Exchange Traded Scheme (Liquid BeES) is the name of Scheme and does not in any manner indicate either the

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. Mutual Fund Investments are subject to market risk. Please read the Offer Document carefully before investing
quality of the Scheme of its future prospects and the returns. Investors are therefore urged to study the 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 of shortfall resulting from the operation of the Scheme beyond the initial contribution made by it of an amount Rs. 1 Lakh towards setting up of the Mutual Fund. Investors in the Scheme are not being offered any guarantee or assured returns.

Statutory Details

53. VNS Finance & Capital Services Ltd.

51. The Omniscient Securities Pvt. Ltd.

Benchmark Asset Management Company Pvt. Ltd. 405, Raheja Chambers, Free Press Journal Marg, 213, Nariman Point, Mumbai - 400021

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