Reliance Mutual Fund has stopped accepting fresh investments in its Reliance Gold Savings Fund from Thursday (July 31, 2013). However, it will continue to take investments made through the existing mandates, including systematic investment plan (SIP), systematic transfer plans (STP) and trigger (investments made when gold hits a particular price) & flexible asset selection tool.
A market leader among gold mutual fund schemes, Reliance has assets under management (AUM) of above Rs. 2,000 crore as of the June (2013) quarter, and commands a market share of 40% in the segment.
Mr. Sundeep Sikka, Chief Executive Officer, Reliance Mutual Fund, said, "The decision has been taken despite the risk of the fund losing its leadership position in the category. The initiative has been taken to support the Government’s drive of discouraging bulk investments and import of gold into India, in order to control the current account deficit
“Our decisions are not always based on commercial interest. We believe there Is life beyond AUM,” he added.
Reliance MF will also merge its Reliance Natural Resources Fund into Reliance Vision Fund with effect from September 7, 2013. Investors have been given the option to exit the scheme without paying the exit load between August 8 & September 6, 2013. It will also change the asset allocation pattern of Reliance Vision Fund.
According to the revised structure, the scheme will invest 65% in equity and equity related instruments & up to 35% in debt & money market instruments.
The scheme’s investment in American Depository Receipts, Global Depository Receipts & foreign securities will not exceed 20% of the net assets of the scheme.
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