Saturday, July 18, 2009

Reliance Mutual Fund Documents Offer Text With Sebi - July 18, 2009

Reliance Mutual Fund has filed offer document with Sebi to launch Reliance Arbitrage Advantage Fund. It is an open ended equity scheme. The face value of the new issue will be Rs 10 per unit. The primary investment objective of the scheme is to seek to generate capital appreciation to the investors by using equity derivative strategies, arbitrage opportunities and pure equity investments and the secondary objective is to provide income distribution to the investors by investing the balance in debt and money market instruments.

Investment option: The scheme shall have following plans, Retail Plan, Institutional Plan, Both the above plans will have growth plan & dividend plan as speciļ¬ed below:

Growth Plan: Growth Option, Dividend Plan: Dividend Payout Option & Dividend Reinvestment Option.

Minimum Application Amount: (During NFO and Continuous Offer Period):

Retail Plan: Rs 5000 and in multiples of Re. 1 thereafter.

Institutional Plan: Rs. 1 crore in multiples of Re. 1 thereafter.

The scheme seeks to collect a minimum subscription amount of Rs 1 crore during NFO period.

Asset allocation: Under normal circumstances, the anticipated asset allocation would be: 65-90% in equities and equity related instruments, 65-90% in derivatives including index futures, stock futures, index options, & stock options, etc. and 10-35% in debt and Money market securities (including investments in securitized debt upto 30%).

Load structure: For Retail Plan, Entry Load: Nil, Exit Load: For subscription of less than Rs. 1 crore per purchase transaction:

1% if redeemed/switched on or before completion of 6 months from the date of allotment of units.

0.50% if redeemed/switched after 6 months-1 day and on or before completion of 12 months from the date of allotment of units.

Nil if redeemed/switched after completion of 12 months from the date of allotment of units.

For subscription of Rs 1 crore & above per purchase transaction - Nil

For Institutional Plan:

Entry Load: Nil

Exit Load: Nil

Benchmark index: Crisil Liquid Fund Index.

Fund Manager: Krishan Daga will be fund manager for the scheme.

No comments: