Reliance long-term fund garners Rs 2,100 crore

Source: Financial Express

Reliance Mutual Fund's new fund offer (NFO), Reliance Long Term Equity Fund (RLTEF), which had opened for subscription last month, and closed on December 11, has mobilised over Rs 2,100 crore, from over 300 cities of India. The fund received over 5.08 lakh applications.

RLTEF is a 36-month, close-ended diversified equity fund with an automatic conversion into an open ended scheme at the end of the 36 months from the allotment date. RLTEF will invest in select small and mid-cap stocks, which have the potential to grow and deliver attractive returns.

In a release, Vikrant Gugnani, president, Reliance MF, said, "Given the robust growth displayed by the Indian economy, the small and mid-cap companies have the potential to transform into large caps in the coming years." RLTEF will offer attractive growth potential to investors who have a long-term horizon. This offering is bound to strengthen our leadership status in the equity space, Gugnani added.

Meanwhile, according to a report, Reliance MF's cash holding in the month of November is pegged at 9.94% of its total AUM, which is higher than that of the previous month when it was 8.85%. On the other hand, according to the Association of Mutual Funds in India (Amfi), the AUM of the overall industry went up by 71.33% or Rs 1,42,130 crore to Rs 3,41,378 crore between January to November this year. The total AUM of the Indian private sector owned MFs has gone up by 76% or Rs 33,508 crore to Rs 77,106 crore between the same period.

However, the predominantly Indian bank-sponsored joint ventures, registered the lowest growth. The AUM in this segment went up by 48% or 5,164 crore to Rs 15,961 crore. However, the joints ventures of Indian banks with other types of entities have grown by 59.97% or Rs 16,524 crore to Rs 44,078 crore.

In November, the cash holdings of AMCs rose to 6.53% from 6.41%, a rise of Rs 2.71 billion. AMCs with cash in excess of 10% of AUMs are Sundaram BNP at 14.25%, StandChart at 11.81%, DBS Chola at 11.55%, Can MF at 11.46%, and Reliance MF at 10%.