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| Reliance MF eyes more unique plans |
| BS Reporter / Mumbai/ Ahmedabad Dec 28, 2011, 00:09 IST |
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Expects 100,000 ATM cards sales in Gujarat over one year.
With securities market regulator, Securities and Exchange Board of India (SEBI) giving clear indication to the mutual fund companies to offer new themes under new fund offers (NFOs), Reliance Mutual Fund has set its eyes on innovative investment plans.
The Anil Dhirubhai Ambani Group (ADAG)'s finance arm, Reliance Capital Asset Management Ltd is looking to generate more business from gold savings plans and its recently launched Reliance Any Time Money (ATM) Card.
According to company officials, Gujarat market would continue to contribute 14-15 per cent to the company's total assets under management. "Gujarat has been a promising market for us. Especially, for our new product, ATM card, we are hopeful to sell about 100,000 cards in Gujarat alone over the next one year," informed Himanshu Vyapak, deputy CEO, Reliance Capital Asset Management. Nationally, the company aims to sell 500,000 to 1 million ATM cards in a year's time.
While launching the ATM Card linked to mutual fund investments, Vyapak informed that latest regulatory compulsions would bring innovation in the financial products in the mutual fund space, while keeping the investors interested towards mutual funds.
"There have been high redemptions in past six months, but we, as a company, are hopeful for a better year ahead. Investors need to be made aware that mutual funds have multiple investment linkages other than merely equities. Hence, equity fluctuations need not hamper growth of mutual funds," said Vyapak.
Recently, SEBI made it clear that it was not encouraging mutual fund companies to float new schemes.
In Chennai recently, UK Sinha, chairman, SEBI had maintained, "We are asking them (mutual fund) companies to launch less and less new schemes and we are not encouraging them to float new schemes, unless it has new themes, which can be exploited in the new launches."
The regulator has also asked the mutual fund companies to merge the existing schemes, which have similar investment themes.
According to Vyapak, gold investments through mutual funds is attracting more attention from the first time investors. "We have received over 75,000 accounts from the first time investors for our gold savings fund. A total of over 500,000 people taken the advantage of this fund. The total assets under management of this fund is about Rs 2,500 crore," he added.
Giving details about the ATM card, he mentioned that Reliance ATM Card will be available to investors investing in Reliance Mutual Funds designated schemes through their online account with the asset management company.
The card will be linked to investments made in the designated funds and can be used to withdraw cash from any VISA authorised ATM or payments at Point of Sale (PoS) outlets. The card has no annual fees or transaction charges within India.
Reliance Mutual Fund has strong presence in Gujarat with over 1.05 million investors being served through 21 branches located across the state.
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