The fund will be benchmarked against the Standard & Poor''s Goldman Sachs Spot Commodity Index.

As the draft offer document filed with SEBI has mentioned, at least 70 per cent of the fund''s net assets will be invested in equities. There may be partial exposure to foreign securities, subject to regulatory limits.

Companies operating in natural resources industries include those that are considered as principally engaged in the discovery, development, production, or distribution of natural resources, or are service providers for these areas.

Also covered are companies engaged in the development of technologies for the production or efficient use of natural resources in addition also furnishing of related supplies or services.

Natural resources include energy sources, metals, forest products, food and agriculture, and other basic commodities. Companies related to these areas may own or produce oil, natural gas, precious metals etc. Further, these may provide related services such as mining, drilling, rigging and the like.

The SBI MF fund, launched in July 2005, has delivered 31 per cent or so since inception (as on June 6), according to Value Research. Its key holdings, as on end-May, include Gujarat Mineral Development Corporation, Reliance Industries, Jindal Saw and Kesoram. It managed about Rs445 crore.