The largest mutual fund in India, Reliance Mutual Fund, has launched the Reliance Infrastructure Fund. The scheme launched with intention to gain long-term capital appreciation by investing in infra companies and companies related the infrastructure sector.
Its list of sectors include construction, power and power equipments, metals and minerals,ports and other related areas in the segment. The fund intends to have 35 per cent of its assets in cash and fixed income investment.
Details of the Fund:
Type: Open-End Equity Fund
NFO Opens: May 25, 2009
NFO Closes: June 23, 2009
Minimum Application Amount: Retail Plan: Rs. 5,000/-
Minimum SIP Investment: Rs. 100/- per month
Plans: Retail Plans with Growth, Bonus and Dividend (Payout & Reinvestment) options.
Benchmark: BSE 100
Entry Load: 2.25 per cent;
Exit Load: 1 per cent if investment is redeemed within 1 year.
Should an investor invest or not ?
Yes, but not now. Though the infra story is here to stay, investors could wait and buy later, when the fund is available on an ongoing basis. Investors can use the SIP method for investing in this fund, on declines.