Reliance Mutual Fund will change the name of Reliance Equity Advantage Fund to Reliance Top 200 Fund with effect from August 26, 2011. Along with the change of name, the investment objective, the benchmark index and the asset allocation pattern of the scheme will be also be altered.
Like all the other fund the primary investment objective of the scheme is to seek to generate long term capital appreciation. But the new mandate says the investment should be made in equity instruments of companies whose market capitalization is within the range of highest and lowest market capitalization of BSE 200 Index. This does not mean that all companies will be from BSE 200 list. The secondary objective is to generate consistent returns by investing in debt and money market securities.
To fulfil the secondary objective the asset allocation pattern has also been revised. Now the fund manager can invest 65% to 100% of assets in equity instruments. On the other side it would allocate upto 30% of assets in debt instruments with low to medium risk profile.
So the fund will move closer towards hybrid funds with an equity tilt, as this will ensure the tax advantage. The fund will be benchmarked against BSE 200.
Unit holders of the scheme are being provided with an option to exit the scheme at the prevailing NAV without any exit load. The option to exit without payment of exit load will be valid from July 27, 2011 upto August 25, 2011.