The Hindu Business Line : Reliance Capital new fund offer mops up Rs 5,660 crore

Mumbai, Feb. 15 Reliance Capital Asset Management Company has mopped up Rs 5,660 crore through Reliance Natural Resources Fund (RNRF) — the second largest collection by any new fund offer.

Reliance Natural Resources Fund is an open-ended equity fund, which was launched in January 2008. The fund will invest in companies principally engaged in the discovery, development, production or distribution of natural resources. The scheme also seeks to generate consistent returns by investing in debt and money market securities.

Regulatory conditions

The fund can invest 70-100 per cent in domestic equities and can also invest up to 30 per cent of its corpus in foreign securities, subject to regulatory conditions. Earlier, Reliance Long-Term Equity Fund had collected Rs 5,700 crore in 2005. “The deployment of the new fund has already begun and the whole amount will be deployed in the next six months,” said Mr Vikrant Gugnani, CEO, Reliance Mutual Fund. “We are hoping to finish the allotment towards the end of this month,” added Mr Gugnani.

The first net asset value of the RNRF will be reported by the end of this month, he said.

According to the latest data available with Associations of Mutual funds in India (AMFI), Reliance Mutual Fund had total AUM of Rs 77,210 crore at the end of January.

Record applications

Reliance Capital Asset Management Company has said that, Reliance Natural Resources Fund received 15.36-lakh applications for the NFO, which is the highest so far in the private sector mutual fund industry.

These applications came from over 1,200 cities and towns across India, giving it the largest footprint across the MF industry till date. With the launch of this new fund, Reliance Mutual Fund has also crossed 60-lakh folios, which is again the largest in the private sector, the company further said.

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