Reliance MF to launch new close-ended equity scheme

Reliance Mutual fund today said it will launch a new scheme -- Reliance close-ended equity fund- series A -- having a five year lock-in period.

The new fund offer will open for subscription from November 15 and close on November 29.

"After six years, markets are in a consolidation mode. Despite the recent rally in key market indices, large number of companies are at attractive levels in valuation terms. We feel this is the right time for launching this product," Senior Fund Manager (Equities) at Reliance MF Sailesh Raj Bhan told PTI here.

The scheme will provide capital appreciation to the investors for long-term goal of savings, he added.

Referring to the investment strategy, Bhan said the scheme would invest across all market caps to retain the flexibility in portfolio adjustment.

The fund house, which has already started investor road- shows, also said it is getting encouraging response from investors.

Though Bhan declined to comment on the amount of funds that the company is aiming to raise through this scheme, market sources said the company plans to raise more than Rs 300 crore from the offer.

Reliance MF had an average assets under management of Rs 93,249 crore at the end of September quarter.