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Thursday, September 03, 2009

Reliance MSCI India Exchange Traded Fund files offer document with Sebi

An open-ended, exchange listed, index linked scheme

Reliance Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch Reliance MSCI India Exchange Traded Fund, an open-ended, exchange listed, index linked scheme tracking MSCI India Index. The new fund offer (NFO) price for the scheme is Rs 10 per unit.

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the MSCI India Index.

The plans / options are not applicable for the scheme.

The scheme would invest 90% to 100% of asset in securities covered by the MSCI India Index, with a risk profile of medium to high. The scheme would invest 0% to 10% of asset in money market instruments, G-secs, convertible bonds, debentures & other securities including CBLO (Collatarised Borrowing and Lending Obligation) with low risk profile. Debt securities will also include securitized debt, which may go up-to 10% of the portfolio.

Entry and exit load charge is nil for the fund brought or sold through the secondary market on the NSE. However, an investor would be paying cost in the form of a bid and ask spread and brokerage, as charged by his broker for buying / selling these ETF's. In case, there are no quotes on the NSE for five trading days consecutively, an investor can sell directly to the fund with an exit load of 5% of NAV. The payout of such redemptions will be on the respective pay-out day.

Minimum application amount for purchase will be Rs. 5000 per application. There after purchase / sale of units on the Stock Exchange will depend on demand and supply at that point of time and underlying NAV. There is no minimum investment, although units are purchased /sold in round lots of 1 unit.

The minimum subscription (target) amount of Rs. 50 lakh is expected to be raised during the NFO period of Reliance MSCI India Exchange Traded Fund.

The Scheme's performance will be benchmarked against MSCI India Index.

The fund manager of the scheme will be Krishan Daga.

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