Reliance Mutual Fund Plans NFOs
Sensex has missed 1,600 points from its highest level and ratings have descended to 17 times profits from a high of 21 times and lots of brokerage houses consider it is a beneficial time to buy.
Mutual funds do not want to ignore this chance moreover. According to sources, Reliance Mutual Fund is all set to initiate novel funds worth Rs 8,000-Rs 12,000 crore shortly.
The sources said these New Fund Offerings (NFO) are expected to be close-ended funds for long-run capital admiration. Reliance Mutual Fund also aspires to augment Assets Under Management to Rs 85,000 crore by end of this current fiscal that are Rs 65,000 crore as on August 1.
Reliance Money is also projecting to build up its distribution network from 4,000 centers in 700 cities at the moment. It also intents to raise its client base to two lakh by 2008-end.
Globally the risk appetite has declined. Psychoanalysts’ state mutual funds will have hard time to place returns in these ambitious times, so we have to hold off and notice whether these New Fund Offerings amidst so much uncertainty will take off.