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Reliance Equity Rewrites History

Collects Rs 5,000 crore to become the largest equity fund and the most successful NFO of all time

Reliance Equity Fund is reported to have collected Rs 5,000 crore to become the largest equity fund and the most successful NFO of all time. It is also the largest fund of Reliance Mutual Fund, nearly double the second largest fund of the AMC. With this, the fund house might just surpass Pru ICICI Mutual Fund to become the largest private AMC, managing assets in excess of Rs 21,858 crore.

More importantly, the fund house's equity assets will swell to Rs 13,277 crore or 61 per cent of its total assets, again the highest among all fund houses.

Before this, UTI Mastergain '92 (now known as UTI Equity Fund), had raised Rs 4,472 crore in 1992.

Reliance Equity's astounding success underscores the mutual fund IPO boom that is going on. So far this year, 12 funds have already collected Rs 16,287 crore, nearly 65 per cent of the total collection by equity funds in 2005.

Having collected such a huge sum, the AMC now has a big task to deploy the money. But the biggest challenge would be to meet investors' expectations.