Wednesday, July 22, 2009

Reliance Mutual Fund Introduction By Infrastructure Fund - July 22, 2009

The initial public offering of Reliance Mutual Fund's Reliance Infrastructure Fund (RIF), which closed on 23 June 2009, has debuted at Rs 10.0704 per unit as against a face value of Rs 10 per unit on 20 July 2009. Dring new fund offer (NFO) period of RIF, which is an open-ended equity fund, Reliance Mutual Fund has collected about Rs 2350 crore.

The prime investment aim of the scheme is to create long-term capital appreciation by investing mainly in equity, equity related instruments of companies engaged in infrastructure and infrastructure related sectors.

These companies should be incorporated or have their area of primary activity in India and their secondary purpose is to generate steady returns by investing in debt and money market securities.

However, this scheme might invest up to 65%-100% in equities and equity related securities as well as derivatives engaged in infrastructure sectors and infrastructure related sectors.

This scheme is said to have investment coverage up to 35% in debt and money market securities together with investments in securitized debt, where investment should be up to 30%.

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