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Reliance Hops Onto Infra Bandwagon


The biggest mutual fund in India, Reliance has launched its 18th equity fund on Wednesday, called the Reliance Infrastructure Fund.

The scheme seeks long-term capital appreciation by investing in infrastructure companies and companies indirectly related the infrastructure sector. Its ambit includes construction, metals and minerals, power and power equipments, telecom, banks, ports, and other related areas in the segment. The fund can have 35 per cent of its assets in cash and fixed income investment.

Fund Manager
The designated fund manager of the scheme is Sunil Singhania, a Chartered Accountant and Chartered Financial Analyst. He has been with Reliance Capital Asset Management since 2004 and manages five varied equity funds -- Reliance Growth, Reliance Equity, Reliance Long Term Equity, Reliance Diversified Power Sector and Reliance Banking. Prior to Reliance Capital, he has worked with stock brokerages for 10 years.

Fund Family
Reliance Mutual Fund has 17 equity funds with total assets of Rs 22,800 crore devoted to the sector. This makes it the largest equity fund manager in the mutual fund industry. Of these 17 funds, 4 funds are 4- or 5-star rated by Value Research. With over Rs 88,400 crore of total assets under management in April 2009, it controls 16 per cent of the total assets of the industry.

Basic Details
Type: Open-End Equity Fund
NFO Opens: May 25, 2009
NFO Closes: June 23, 2009
Minimum Application Amount:
Retail Plan: Rs. 5,000/-
Institutional Plan: Rs. 5 crore
Minimum SIP Investment: Rs. 100/- per month
Plans: Retail and Institutional Plans with Growth, Bonus and Dividend (Payout & Reinvestment) options.
Benchmark: BSE 100
Load Structure:
Entry Load: For investment below Rs. 2 crore, 2.25 per cent; for investments of Rs 2 crore or more but less than Rs 5 crore, 1.25 per cent.
Exit Load: For investments of less than Rs. 5 crore, 1 per cent if investment is redeemed within 1 year. For SIP, 1.5% if redeemed within 1 year and 1% if redeemed after 1 year but within 2 years. For STP, 1% if redeemed before 12 months.
(No entry / exit load is chargeable under Institutional Plan.)
Annual Recurring Expense (maximum): 2.50 percent (Retail Plan), 2.40 per cent (Institutional Plan). Investment management fee is 1.25 percent.