The Hindu : Reliance MF launches MIP

Online edition of India's National Newspaper
Wednesday, Dec 10, 2003

Business

Business

Reliance MF launches MIP

By Our Special Correspondent

MUMBAI DEC. 9. Reliance Mutual Fund has launched `Reliance Monthly Income Plan.' The initial offer for the Reliance MIP opens on December 10 and closes on December 29.

The scheme offers three plans for its investors, a monthly dividend plan, a quarterly dividend plan and a growth plan. The primary objective of the scheme is to generate regular income in order to make regular dividend payments to unitholders, with the secondary objective of growth in capital. To achieve the same, the scheme proposes to invest up to 80 per cent of net assets in debt instruments — corporate paper and government securities.

"The debt component will be actively managed, keeping the overall maturity of the debt portfolio between one to seven years under normal circumstances,'' said Sandeep Bagla, Fund Manager of Reliance MIP. The scheme will also invest up to 20 per cent of the net assets in equity instruments, "as equities generally generate higher returns than other fixed income instruments over longer time horizons.'' The overall allocation between debt and equity will be undertaken based on the outlook on equity markets and is likely to vary to keep equity exposure to 10 to 20 per cent of the overall net assets, depending on market conditions.

Printer friendly page
Send this article to Friends by E-Mail

Business