Religare PSU Equity Fund NFO collects over Rs 229 crores

Religare MF today announced collection figures of Its recently concluded Religare PSU Equity Fund NFO. Religare PSU Equity Fund, an open ended equity scheme, seeks to generate capital appreciation by investing in companies where the Central / State Government (s) has majority shareholding or where the management control lies with the Government.

The fund aims to select fundamentally sound companies having the potential to deliver superior growth in the long term. The new fund offer from Sept 29 to October 28, had sought minimum application amount of Rs. 5,000 from resident and non-resident investors. Post the entry load ban that came into effect from August 01, 2009, and the lull witnessed with respect to sales of equity mutual funds, the response received to this new scheme from investors has been very encouraging.

Speaking on the occasion, Saurabh Nanavati, Chief Executive Officer, Religare Mutual Fund said The period August - October 2009 has actually seen equity outflows from the industry - both from a transaction perspective as well as AUM of over Rs. 3,900 crores moving out (as per AMFI data). This can be attributed to 1) Profit-booking by investors based on advice from their distributor and 2) Slowdown in fresh collections clue to the distributor undergoing a change in his business modal of charging advisory fees"

"In the backdrop of this tough environment for equity collections, I am extremely pleased to announce that the fund has collected over Rs. 229 crores, with close to 37,000 applications (Including 7,000 SIP applications), coming in from over 170 cities and towns across the country.

"Religare AMC wishes to thank the distributor community, especially the IFA channel for their continued support, and we will continue to increase our ground presence in tier 2 and tier 3 cities in the next 2 years to ensure better service to them".The Religare PSU Equity Fund will reopen for ongoing sale and repurchase (not later than) on November 27, 2009.

The Religare Enterprises stock closed the day at Rs.386.85, down by Rs.2.80 or 0.72%. The stock hit an intraday high of Rs.394.75 and low of Rs.379.75.

The total traded quantity was 6912 compared to 2 week average of 8510.

Source : Equity Bulls

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