Investors commit Rs4,000 cr for Reliance Gold Fund

Investors commit Rs4,000 cr for Reliance Gold Fund

New Delhi: Anil Ambani group firm Reliance Mutual Fund on Wednesday said its new Gold Savings Fund has got applications from over two lakh investors -- a record for any new fund offer (NFO) -- with actual investments and firm commitments worth Rs4,000 crore.

The country’s first gold savings fund, which enables investments in gold without any locker or demat account, opened on 14 February and closed on 28 February.

The new fund is different from gold ETFs (exchange traded funds) that require subscribers to have a demat account. It also offered investors the option to invest as little as Rs100 per month, Reliance MF said.

The fund house, the largest in the country, said in a statement that it received over two lakh applications for the Reliance Gold Fund.

The fund also registered the largest number of applicants for any NFO till date under the systematic investment plan (SIP).

Commenting on the development, Reliance MF CEO Sundeep Sikka said: “Through SIPs, we have a commitment of Rs350 crore every year for the next 10 years, thereby locking in about Rs3500 crore. This is in addition to the lump sum investment of close to Rs500 crore."

“Going by the encouraging response, I am sure we would see more of such product offerings from the industry participants," Sikka added.

Close on the heel of Reliance Gold Savings Fund being announced, Kotak Mutual Fund also announced a gold fund, which opened for subscription on 4 March and closes on 18 March.

The allocation of investment in the Reliance Gold Savings Fund would be completed by 14 March, after which the scheme would reopen for investments.

Sikka said that the robust response to the fund indicates that gold could emerge as one of the largest asset classes for the Indian MF industry.

A part of Anil Ambani group’s financial services arm Reliance Capital, Reliance Capital Asset Management is the country’s largest fund house and manages assets worth $24 billion across mutual funds, pension funds, managed accounts and hedge funds.