MUMBAI, India, March 9, 2011 /PRNewswire-FirstCall/ -- - Over 2 Lakh Investors Participate in the Fund - Fund Records Largest Number of SIP Applications for any NFO to Date - SIP Investors Commit Rs 3500 crore - Rs 350 crore Each Year for 10 Years - Fund Collects Rs 500 crore Lump sum Investment In Addition to SIPs - Scheme to Open for Investment After Allotment From March 14, 2011
Reliance Mutual Fund, India's largest fund house, today announced that the company received over 2 lakh applications for its recently concluded Reliance Gold Fund. The fund also registered the largest number of applicants opting for the Systematic Investment Plan (SIP) for any NFO to date.
The announcement was made by Mr. Sundeep Sikka, CEO, Reliance Mutual Fund, here today.
"The retail investor has welcomed this new mode of investing in gold by registering the largest number of SIP applications for any NFO. Through SIPs, we have a commitment of Rs 350 Crs every year for the next 10 years, thereby locking in approx Rs 3500 Crs. This is in addition to the lump sum investment of close to Rs 500 Cr. Going by the encouraging response I'm sure we would see more of such product offerings from the industry participants", said Mr Sikka
The NFO was a first-of-its-kind fund-of-fund enabling investments in gold, in paper form, without any Demat account. This is unlike the existing gold investments in Exchange Traded Fund (ETF) mode where a Demat account is mandatory. The allocation of investment in the fund would be completed by March 14, 2011.
"The large participation in the fund reaffirms our belief that Gold will emerge as one of the largest asset classes for the Indian MF industry," said Mr. Sikka.
The fund, which opened on February 14 and closed on February 28, 2011, would reopen for investments after allotment from March 14, 2011.
"This is a high point for the industry especially as the new NFO guidelines with reduced NFO and allotment period meant that despite of our presence in over 1000 locations, only investors in 100 odd locations could take advantage of the fund. We are convinced that once the scheme reopens for investment, with no constraints on the number of locations and allotment, we would see investors pan India benefiting from the fund," said Mr Sikka.
About Reliance Mutual Fund
Reliance Capital Asset Management Limited (RCAM) manages US$ 24 billion (as on 31st January 2011) across mutual funds, pension funds, managed accounts and hedge funds. It is the only AMC in India to have been chosen to manage both public funds sponsored by the Indian government - the Provident Fund and Pension Fund. The company offers a well-rounded portfolio of products that meet varying requirements and constantly endeavors to launch innovative products and customer service initiatives to enhance value for its investors.
Reliance Mutual Fund (RMF) schemes are managed by RCAM, a part of Reliance Capital Limited which is one of India's largest financial services companies
Media Queries Sharad Goel Sr Vice President Corporate Communications Reliance Capital firstname.lastname@example.org +91(0)9324984296
SOURCE Reliance Capital Limited