Reliance Growth Fund shuts door for big investments

Reliance Growth Fund has withdrawn sale of units for subscriptions above Rs 5 lakh with effect from May 3, 2006 till further notice, in view of the reason that increasing the size of the corpus of the scheme further, may prove detrimental to the interest of the existing unitholders of the scheme. Reliance Growth Fund was managing assets worth Rs 2639 cr as on March 31, 2006.

This is the second time the fund has decided to shut its doors, though this time it´s only for big investments. In August last year, the fund had suspended fresh investments. However, it lifted the restriction later on.

Reliance Mutual Fund has stated that fresh or additional subscriptions will be accepted for an amount less than or equal to Rs 5 lakh. Also, subscriptions through Systematic Investment Plan, SIP, or Systematic Transfer Plan, STP, will be continued with each installment being less than or equal to Rs 5 lakh. This will not affect redemptions and switch-outs from the scheme and the existing SIP and STP transactions of any amount, already registered prior to May 3, 2006, which will be continued as per the terms and conditions mentioned in the offer document. This will also not affect dividend payment/ reinvestment.

Source : Equity Bulls

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