Reliance Mutual Fund, a part of the Anil Dhirubhai Ambani Group, plans to launch an income scheme and has filed draft papers with market regulator Sebi for the same.
The new fund offer (NFO), called Reliance Fixed Horizon Fund - XX, is a close-ended income scheme and the units can be purchased only during the period of NFO.
"The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio," according to the draft document filed with the Securities and Exchange Board of India.
The corpus of the fund would be invested in central and state government securities and other fixed income or debt securities. The scheme would be benchmarked against Crisil's Short Term Bond Fund Index.
The minimum application amount is Rs 5,000 for the scheme and in multiples of Re 1 thereafter. During the NFO period, the units on offer under the scheme would be priced at Rs 10 apiece.
The units of the scheme can not be redeemed or repurchased prior to the maturity of the close-ended schemes. However, units held in dematerialised form can be traded on the Stock Exchange where the units are listed, it added.
Reliance MF is the largest fund house in the country with over Rs 1 lakh crore of assets under management at the end of March, 2011.
