If cleared by SEBI, this will only be the second such fund in the industry
19-Dec-2009 •Research Desk
Reliance Asset Management Company has filed an offer document with the market regulator, the Securities and Exchange Board of India (SEBI), for the launch of a new fund Reliance Liquid Exchange Traded Fund (ETF).
ETFs can be bought or sold like any other stock on the National Stock Exchange (NSE) through terminals spread across the country. After the closure of the new fund offer (NFO), if and when it is cleared, the Units of the Scheme will be listed on the Capital Market Segment of the National Stock Exchange of India Ltd (NSE) or any other stock exchange.
After Liquid Benchmark ETF, this is the second such fund in the entire industry which might see the light of the day, if the market regulator approves it. It is an open ended exchange listed fund, which aims to provide high liquidity to the investors.
The fund would invest short term government securities, money market instruments and short term debt securities. It will have daily dividends, but a compulsory re-investment of dividends is enforced.
The fund would be managed by Anju Chhajer, a 37-year-old Chartered Accountant. She has been a fund manager, managing investment for debt schemes, with Reliance Capital Asset Management since October, 2007. She earlier worked at the National Insurance Company.
The NFO price will be Rs 1,000 per unit and the minimum application amount will be Rs 5,000. The fund has been benchmarked under Crisil Liquid Fund Index.
