Stocks

Reliance Mutual suspends fresh investments in gold scheme

Our Bureau Mumbai | Updated on March 12, 2018 Published on August 02, 2013

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Reliance Mutual Fund has stopped accepting fresh investments in its Reliance Gold Savings Fund from Thursday. However, it will continue to take investments made through the existing mandates, including systematic investment plan, systematic transfer plans and trigger (investments made when gold hits a particular price) and flexible asset selection tool.

A market leader among gold mutual fund schemes, Reliance has assets under management (AUM) of over Rs 2,000 crore as of the June quarter, and commands a market share of 40 per cent in the segment.

Sundeep Sikka, Chief Executive Officer, Reliance Mutual Fund, said the decision has been taken despite the risk of the fund losing its leadership position in the category. The initiative has been taken to support the Government’s drive of discouraging bulk investments and import of gold into India, in order to control the current account deficit, he said.

“Our decisions are not always based on commercial interest. We believe there’s life beyond AUM,” he added.

No exit fee

Reliance MF will also merge its Reliance Natural Resources Fund into Reliance Vision Fund with effect from September 7. Investors have been given the option to exit the scheme without paying the exit load between August 8 and September 6.

It will also change the asset allocation pattern of Reliance Vision Fund.

According to the revised structure, the scheme will invest 65 per cent in equity and equity related instruments and up to 35 per cent in debt and money market instruments.

The scheme’s investment in American Depository Receipts, Global Depository Receipts and foreign securities will not exceed 20 per cent of the net assets of the scheme.

>suresh.iyengar@thehindu.co.in

Published on August 02, 2013
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