Religare Mutual Fund unveils Religare Gold Fund

Religare MF announced the launch of its new fund 'Religare Gold Fund (an open ended fund of funds scheme). The Fund seeks to generate returns, which closely correspond to the returns generated by Religare Gold ETF. The New Fund Offer opens for subscription today and will close for subscription on November 29th, 2011. The fund will be passively managed and will invest 95 % -100% of its assets in Units of Religare Gold ETF and upto 5% of its assets in money market instruments.

Speaking on the occasion, Saurabh Nanavati, Chief Executive Officer, Religare MF said, "The fund offers more convenience to retail investors who want to make a portfolio allocation to gold. Unlike Gold ETF's, the fund does not require a demat account and the stock exchange route for liquidity. Investors can subscribe and redeem units directly with the fund house. The fund offers add on facilities like the Systematic Investment Plan thereby allowing investors to make small and regular investments in Gold."

The fund offers both Growth and Dividend options. Units will be issued at Rs. 10 per unit. For Lump sum purchase, the minimum application amount is Rs. 5000/-and in multiples of Re.1/- thereafter. For SIP investments, the minimum application amount is Rs. 1000/- and in multiples of Re.1/- thereafter per month. The minimum tenure for SIP enrollment is 6 months. The fund is benchmarked to the price of Gold.

An exit load of 2% will be charged if units are redeemed/ switched-out on or before 6 months from the date of allotment while if the units are redeemed/ switched-out after 6 months but before 1 year from the date of allotment, an exit load of 1% will be charged. No exit load will be charged after 1 year from the date of allotment. The fund manager of the scheme is Mr. Nitish Sikand.

The Religare Enterprises Ltd stock closed the day at Rs.435.20, up by Rs.9.10 or 2.14%. The stock hit an intraday high of Rs.440 and low of Rs.423.15.

The total traded quantity was 2498 compared to 2 week average of 1279.

Source : Equity Bulls

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