Reliance PMS set for Jan.15 launch

Reliance Money, the financial services arm of Anil Ambani group company, Reliance Capital Ltd, is all set to launch the portfolio management services (PMS) on the occasion of Makarsankranti, on January 15, 2008.

The service targeted at the executives and professionals in metros and smaller towns, would be available with an investment limit of between Rs 5 lakh and Rs 75 lakh only.

"It would have an unique value creation, positioned for the masses at the retail level," said Sudip Bandyopadhyay, chief executive officer of the company.

Typically, the PMS services present in India targets high net worth individuals, who can invest at least Rs 50 lakh and above, with the usual entry barrier set between Rs 50 lakh to Rs 1 crore, but the Bondyopadhyay said they want to be a pioneer for bringing down the entry level at the lowest possible limit, mandated by the industry regulator.

"Portfolio management has been an exclusive club and we want to break that thereby opening the market at the retail level" he added.

Another highlight of the scheme would be that no fees would be charged unless the return is 8 percent.

"We would not charge any fees if the return are less than 8 percent," the CEO said while talking with the media.

However if the return is between 8-20 percent it would charge 10 percent as fees, whereas for the return above 20 percent the fees would be 20 percent.

The company has tied up with Forum for Integrated Development and Research to popularise a disciplined financial investment culture in semi-urban and rural areas.

The tie-up would unable Reliance Money to provide its range of financial products and services to over a million people across the states of West Bengal, Bihar, Orissa, Andhra Pradesh and Jharkhand.

Currently the company has more than 4000 outlets across the country and it intends to increase it to 10,000 by the end of this fiscal covering 5000 centers across the country.