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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@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
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.
@ Manshu
Thanks 🙂
when will trading get started? any idea?
You are welcome 🙂
I think trading should start at about the same time.
@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.
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.
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!
what is todays rate of new opned MF
As the NFO period is over can I now invest in this Fund, please reply on urgent basis.
Regards,
Arshad Shaikh
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.
@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 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.
Etry load is 2.25 %. but as per SEBI Entry load is zero.
Pl. clarify
I Invested in reliance infrastructure Rs.5000
and when will i get dividend and how much can expect
Pls give me the details
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
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
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.
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
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.
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