Reliance MF to introduce new close ended fund

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Reliance MF to introduce new close ended fund
Reliance Mutual Fund, which is one of India"s leading Mutual Funds organization, is considering introduction of an income scheme. The institution has already filed draft papers with the Indian capital market regulator, SEBI. The units of new close ended fund named as Reliance Fixed Horizon Fund - XX can be purchased only during the offered period.

The portfolio of the fund will be invested across the central and state government securities and other fixed income or debt securities and will be benchmarked against Crisil's Short Term Bond Fund Index. The minimum application amount of the new fund will be Rs 5,000 and in multiples of Re 1 thereafter.

As it will be a close ended fund, the units will not be allowed to be redeemed or repurchased during the lock in period. However, the units held in dematerialised form can be traded on the Stock Exchange where they are listed as ETFs. 

Reliance Mutual Fund is one of India"s leading Mutual Funds, with Average Assets Under Management of Rs 1,01,577 crore and an investor count of over 66.71 Lakh folios. As on March 2011. The fund is a a part of the Reliance ADA Group, and one of the fastest growing mutual funds in India. Reliance Capital Asset Management Limited is the asset manager of the fund.

Last month, reports came in that in a step to restrict mis-selling of Mutual Fund schemes, SEBI is considering introduction of fresh rules and regulations. As the initial measure towards such activity, the regulator has made it compulsory to the asset management companies to ensure due diligence to be followed by their distributors with respect to the selling of various schemes.

Read more about: mutual funds, adag, sebi, ril
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