Reliance MF ties up with US firm for risk management

Anil Ambani Group company Reliance Mutual Fund on Wednesday announced a strategic partnership with the world's third largest risk management service provider, MSCI Barra, to offer such services across all its funds.

Reliance MF, the largest fund house in the country in terms of assets under management, aims to offer risk management services for investments in equity, fixed income and derivatives across all its funds through this tie-up.

"In an emerging capital market like India, there are many unique factors that influence return and risk of securities. MSCI Barra offers us with a powerful multi factor tools which describes Indian markets better," Reliance Mutual Fund President Vikrant Gugnani said in a statement.

"This tool helps us perform better portfolio analytics and risk management and enhances our investment decision capabilities," he added. MSCI Barra's risk models and analytics are global industry standard benchmarks for risk and performance reporting.

The partnership empowers Reliance Mutual Fund with access to the MSCI Emerging Markets Module that includes MSCI India Index, the common benchmark used by non-Indian investors looking to allocate money to Indian equity investments, the statement said.