Reliance MF raises record Rs 5759 cr

Reliance Mutual Fund's new Reliance Equity Fund has created history for the highest collection ever among domestic mutual funds, by raising a record Rs 5759 crore from 9.29 applications received across the country.

With this, it replaces the 14-year-old record set by the erstwhile Unit Trust of India's Mastergain Fund, which raised Rs 4,780 crore. But the stage for large collection figures by equity funds was set some time ago.

Recently SBI Mutual Fund's BlueChip Fund pulled in Rs 2,850 crore and UTI Mutual Fund's Leadership Equity Fund attracted about Rs 2,100 crore.

The record collection also swells Reliance Mutual Fund's equity portfolio to Rs 14,500 crore as of today. It is the first diversified equity fund with derivative strategies that aims to minimise risks and take advantage of both rising and falling market conditions.

The Reliance Equity Fund aims to capitalise on both the rising and falling markets. The investment strategy is that even if the markets go down, the fund has a part of its portfolio hedged, which aims at minimising downside risks.

The fund will not only use hedging techniques, but will also try to capitalise on short-selling opportunities to generate additional returns for investors.

The fund will invest in the top 100 companies by market capitalisation and companies, which are available in the derivatives segment. It will invest 75-100 per cent in equity and equity-related instruments and 0-25 per cent in debt and money market securities.