News Line
Reliance Mutual Fund unveils income, equity schemes

8th August 2006: Reliance Capital Asset Management Ltd on Monday filed initial papers with India's market regulator to launch an open-end income scheme and a three-year close-end equity fund.

Reliance Liquid Multiplier Fund would have the freedom to invest its entire corpus in debt and money market instruments of up to a year's maturity, but can also invest up to half the money in longer-term securities.

On the other hand, the Reliance Long Term Equity Fund would primarily invest in mid-cap and small-cap stocks, allocating at least 70% of its corpus to equity and up to 30% to debt-related securities.

In its offer document filed with the Securities and Exchange Board of India, the fund house said the minimum subscription requirement for the income fund would be 100,000 rupees under the retail plan and 10 million rupees for institutions.

The fund would charge no entry load but an exit load of 0.15% for redemption within 15 days.

For the equity scheme, there would be no entry load during the offer period but varying exit loads would be charged for redemption in the first three years.

The fund house managed assets worth about 262 billion rupees at the end of July, data from the Association of Mutual Funds in India showed.