Reliance Mutual Fund has filed offer document with SEBI (Securities and Exchange Board of India) to launch Reliance Infrastructure Debt Fund-Series 3, a close-ended infrastructure debt fund (tenure shall be decided at the time of launch). The new fund offer price is Rs. 10 lakh per unit. The tenure of the scheme will be five to 15 years.
The investment objective of the scheme is to generate regular income and capital appreciation by investing into investment themes within the infrastructure sector. According to the company, the fund will benefit both the mutual fund industry and companies engaged in the development of infrastructure. It would help in the objective of channelising the country’s household savings into productive assets.
Pankaaj Maalde, head-financial planning, ApnaPaisa.com, said, “The minimum application amount is Rs. 1 crore and is targeted at high net worth individuals, institutional and corporate investors. The fund is a close-ended fund and will be listed on the Bombay Stock Exchange. This means liquidity will be poor as nobody can predict the volumes after its listing. The fund will invest 90%-100% in debt instruments of infrastructure companies and up to 10% in money market instruments or equity shares of companies engaged in infrastructure whether listed at recognised stock exchanges in India or not.”
Mr Maalde, added, “Infrastructure sector itself is passing through the bad phase and shares of the infrastructure companies are also trading at low price. Investing in a fund with a particular sector in mind always has a higher risk compared to diversified portfolio. It is also important to know whether fund will invest in AAA-rated companies only or not. One needs to know risk involved in the fund before investing in it.”
