The Reliance Infrastructure Mutual Fund will primarily invest in shares of infrastructure companies in India. It will have at least 65% of its assets invested in shares of infrastructure companies and the balance in debt instruments. It will also invest in derivative instruments for hedging and rebalancing purposes.
The fund aims to capitalize on the fact that the infrastructure sector in India is lagging investments and is a focus area for the government to allow the economy to continue on its growth path and add momentum to the economic development.
The fund will invest in infrastructure and infrastructure related companies, but there is one thing that you need to be aware of.
Banks, financial institutions and such, which lend to this sector, also come under this category and the mutual fund may invest in such companies also. This is not a good or bad thing – just something to keep in mind. Most investors don’t equate a financing company with infrastructure and so are sometimes surprised when they hear that their infrastructure mutual fund holds State Bank of India or some other such bank or finance company.
Here is a list of sectors that the fund may invest in (from their prospectus): At first glance it may occur to you that the Reliance mutual fund will invest most of its assets in Airport, then Banks, then Cement and so on (which is what I felt), but this is not true. This is just a list of indicative sectors and is not in any particular order.
- Airports
- Banks, Financial Institutions and Term Lending institutions.
- Cement
- Coal
- Construction
- Electrical and Electric Component
- Engineering
- Energy
- Industry Capital Goods
- Metals and Minerals
- Ports
- Power and Power equipment
- Road and Railways
- Telecom
- Transportation
- Urban Infrastructure
- Mining
- Aluminum
Reliance Infrastructure Fund Manager
Mr. Sunil Singhania is the fund manager; he is a B.Com, CFA and has 11 years of experience in the capital markets. He also manages the Reliance Growth Fund, Reliance Equity Fund, Reliance Long Term Equity Fund, Reliance Diversified Power Sector Fund and Reliance Banking Fund.
Entry Load of Reliance Infrastructure Mutual Fund
- Subscription below Rs. 2 Crores: 2.25%
- Between Rs. 2 and 5 Crores: 1.25%
- Above Rs. 5 Crores: Nil
Exit Load of Reliance Infrastructure Mutual Fund
- 1% if redeemed within a year of allotment
- Nil if redeemed after a year of allotment
- Nil if subscription is more than Rs. 5 crores
Minimum Application Amount for Retail Investors
The minimum investment needed is Rs.5000 and if you want to invest additional money then you must invest a minimum of Rs.1000.
Plans offered by Reliance Infrastructure Mutual Fund
There are two types of plans in this fund:
- Growth Plan and
- Dividend Plan
The growth plan is meant for people who are not looking for regular dividend payouts from the mutual fund and the income from their funds will be reinvested in the fund. The Dividend plan on the other hand will give you dividend income (when the fund declares dividends). There is a dividend reinvestment plan also where the fund will reinvest your dividends to buy more units of the mutual fund.
How to Invest in the Reliance Infrastructure Mutual Fund NFO
If you have an online brokerage account like icicidirect.com, you can invest in this fund through them. You can also invest by filling out this form and submitting it in HDFC or Axis bank branches.
Tax Rates
The dividends are tax free in the hands of resident Indian investors. Similarly, there is no tax on long term capital gains. There is a 15% tax on short term capital gains of the scheme.
Disclosure: I will not be applying for this mutual fund. This is not a buy or sell recommendation for this fund, just a summary of it and my personal thoughts on it. If you are planning to buy or sell, please take advice specific to your financial situation and portfolio.
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i want to know how to invest in reliance infrastructure?
tell me the procedure?
what a minimum investment is?
what i have to do while investing?
please send me full detail about reliance infrastructure nfo
can i invest 1000/2000 rupees in reliance infrastructure mutual fund or i have to iinvest 5000 Rs.
i want to know how to invest in reliance infrastructure?
tell me the procedure?
what a minimum investment is?
how long should i invest?
shall i invest directly from my internet banking?
how can i switch when the market is down?
@ Anil and Mithun: The minimum amount is Rs. 5000.
@Anil, Aji @ Mithun: You can invest from online broker, not online banking but online broker like icicidirect.com etc.
Pl. send me the common form for applying direct for latest Rel infrastructure NFO
Yes it is good.
I want to know the minimum amt that should be spent on purchase on reliance infrastructure shares & whats the procedure to attain
Regards
Naresh Mehta
Application form says entry load is waived if you apply directly.
Is the entry load waived if you apply through icicidirect?
@A Thomas,
I went to icicidirect and it did show me an entry load, so I don’t think it is waived off, when you apply through icicidirect.
what will be the future of infrastructure Should i can expect a lot from it What is the difference of NFO & IPO
@jenin
NFO is a New fund offer, which means it is a new offer from a mutual fund. A mutual fund invests in shares of other companies.
IPO is an Initial Public Offering which means that a company is issuing its own shares to the public for the first time.
Question:
Sir, can you confirm me that there is lock in period of 3 years in reliance infra. and also confirm me that what is the application rate initally launched?
@ Vijay Kant,
This is an open ended mutual fund and so you will be able to buy and sell any time. But, if you sell before an year then there is a 1% load on your investment.
I am not sure what you mean by application rate.
See this ICICI Link for more about Open Ended Mutual Funds:
http://content.icicidirect.com/mutualfund/mfhelp.htm#16
i want to invent minimum amt for this MF
@Jai Narayan, The min amount is 5,000.
Does it have Tax saving benefit under 80C for the investment? and is there any tax deduction on its returns? Please clarify.
plz contact me for investing in reliance infa nfo mumbai 9819056060
1. Sponsors :The Sponsor of the Mutual Fund is Reliance Capital Limited (RCL) having a net
worth of over Rs.5161.23 crores as on March 31, 2007.
2. Name of the Scheme : Reliance Infrastructure Fund, A 36-Months close ended diversified equity fund with an automatic conversion into an open ended scheme on expiry of 36-months from the date of allotment .
3. Investment Objective: The primary investment objective of the scheme is to generate
long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure and infrastructure related sectors and which are incorporated or have their area of primary activity, in India and other parts of the world and the secondary objective is to generate consistent returns by investing in debt and money market securities.
4. Choice of Investment Plans: Reliance Infrastructure Fund offers Retail Plan and Institutional Plan and each plan will have Growth Plan and Dividend Plan .
For any more details you can mark a mail to the above given email address.
i want to invest minimum amt for this mf but i want to know how to invest in relience infrastructure & how this fund is beneficial for me & my future plan
Hi Nilima,
The portfolio and the analysis of the Fund in in pdf format which i cannot share here due to restrictions. U can call me on 9819237844 or mail me on the email address that is abhishekgoswami@dbs.com. Further more since im a banker, providing info is not bcoz of my personal interest but wholly on sharing info and my experience.
Regards,
Abhishek
If you dont want any brokerage to be charged for reliance infrastructure fund then apply at link given below:
https://converz.karvymfs.com/reliancenfo/online/SchemesToPurchase.aspx
Does it have Tax saving benefit under 80C for the investment? and is there any tax deduction on its returns? Please clarify.
Does it have Tax saving benefit under 80C for the investment? and is there any tax deduction on its returns? Please clarify.
i want to invest minimum amt for this mf but i want to know how to invest in relience infrastructure & how this fund is beneficial for me & my future plan
no, its nt a tax saving fund
and i suggest u invest as reliance has been doing gud on MF front. and minimum investment is Rs. 5000 and in multiples of 100 there after.
The Fund Details and risk factors attacthed along with Sharpe Ratio and Beta of the fund will not be on the hyperlink provided above. The same will be provided by banks and research teams, one of whic i am a part of. Any other deatils and factors other than the pure entry point websites can only be given by banks.
In case of any query on the same hit me on 9819237844.
Regards,
Abhishek
Hello,
Can anybody tell me how to invest in this mutule fund?
I dont have account in ICICI then what are the charges I have to pay to ICICI?
Is there any alternative to invest in this MF other than ICICI?
Regards,
AmolG
I Invested in reliance infrastructure Rs.5000
and when will i get dividend and how much can expect
Pls give me the details
Etry load is 2.25 %. but as per SEBI Entry load is zero.
Pl. clarify
I am Working at UAE. I Like to Invest reliance infrastructure Fund.
Somebody Says the Fund Closed End of June. Any Contact Details in Dubai?
Thanks.
@Raj,
Sebi has said that there is no load if you invest directly through the AMC and the request is not routed through any broker. So, the fee is basically if you invest through a broker.
I would appreciate if you could keep me posted with the template or the entire
details of Reliance Infrastructure Funds NFO
How to invest?
What is the minimum?
What is the duration?
How the dividend or profit assessed and can avail?
Appreciate a detailed note will suffice to think and proceed. Please do the needful.
As the NFO period is over can I now invest in this Fund, please reply on urgent basis.
Regards,
Arshad Shaikh
what is todays rate of new opned MF
hi
im a govt servant,i want to invest in reliance infrasture fund ,and i donot hav account in icici or axis bank.but i hav a bnak account with sbi.
and now m working in lonavala ,soi dont hav lot of time to spare,
so i request u to send me all d details of d fnd.
i.e.
how to invest ?
what s min amount?
locking period?
when it was launched?
@Santosh,
You will need to open some sort of a broker account. It is very easy and they cost around Rs. 500 per year or so. The MF has been launched recently and its minimum amount is Rs. 5,000. All the best!
Hi,
I have invested 5000 Rs through ICICI direct. But I am not sure what to do next. Still havn’t get any confirmation mail from reliance MF. What is current NAV? If I want to redeem money how to go for it? Pls guide me.
@Sachin,
The prospectus says that the scheme will open for sale or repurchase on or before 22nd July 2009, so I think this is the date you should look out for. There is no NAV right now because it hasn’t started trading yet.
@ Manshu
Thanks
when will trading get started? any idea?
You are welcome
I think trading should start at about the same time.
once again thanks
i have invested 5000 Rs. But havn’t got any mail from reliance or icici direct. where could I find this amount in my icici direct demat account? Previously it was showing pending status but I cant find any entry in order book. where do I find it? any idea? is my monry safe? I dont know much about online trading. This is my first time. Pls guide. Thanks in advance.
@Sachin,
I don’t know where in your account you will see this. I tried to search this info on the web but couldn’t find it.
Maybe you should write them in and ask or just call their helpdesk and ask.
This link has the contact details:
https://secure.icicidirect.com/customer/customer.asp
I had made an online transaction for taking this mutual fund for 10000.That time I dont have any info to send any document.
Now I’ve got a call that i have to send some pdf and self attested pan card copy to some address and the last date is over (30th June’09)
Kindly suggest me what pdf cause i only have the reference no not any pdf.
Parul,
I don’t know what PDF they are asking for. Sorry can’t help you there, call them back and find out what they are looking for.
hai, this is jhansi. i have invested 10000 rs in reliance infrstructure. but i did not get any papers from this.
I want to know that when will this unit price will rise.
i invest in reliance infrastructure fund but i not receive any bond and welcome later so please send me my documet.
Guys, this page is only to discuss about Reliance infrastructure fund, and no way that nobody is concerned about all your personnel investment issues with Reliance.
So please do not ask questions like i have not received this document, i have not received NAV value all those questions. Because author of this website, is not responsible for neither Relainnce MF nor the money you have invested.
Cheers
I am Interested to Buy a Mutal Funds but I am not decided which funds is good for me Please Suggest me.I have knowedge about Funds and shares market but Iam confuse to selected the fund please give suggestion. (Please gige the information about the min. amount which I invest )
Thanking You
Akhilesh Patnaik
Dear Sir,
From when the NAV rating of Relience Infrastructure will strat ,whose last date was 28th June.
Please tell me current opening rate of reliance infra structure
hi,
i have invested lots in equity through Insurance, please let me know that investing in Mutual Funds Like wise infrastructure fund will be a better option then i did, as i have some term policy also
I am investing Rs.2000/- per month in Reliance power sector and the locking period is
three years. Can you advise how much return will I get after three years ?
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