Reliance sees no impact of mkt rout on new fund
Reliance Capital Asset Management is seeing no impact of the stock market turmoil on response to its new equity fund.business Updated: Jan 30, 2008 14:08 IST
India's No 1 fund firm, Reliance Capital Asset Management, is seeing no impact of the stock market turmoil on response to its new equity fund and expects to collect about 30 billion rupees, a top official said on Wednesday.
The firm expected to raise money from about a million investors in Reliance Natural Resources Fund, Chief Executive Officer Vikrant Gugnani told Reuters.
The fund ends its initial subscription today.
Gujnani said there was no sign of a mutued response from investors as a result of last week's stock market rout.
"I think investors have become far more educated. They now see it an opportunity to buy at dips," he said.
India's main index was down about 15 per cent from life-time high on Tuesday, sliding more than 10 per cent intra-day for two successive days last week, as investors sold amid margin calls on sliding shares and global downturn fears.
Gugnani, whose firm collected a record 58 billion rupees in Reliance Equity Fund in 2006, said he was not expecting a huge response to his latest offering -- a thematic fund targeting firms discovering and developing natural resources.
The fund house, an unit of India's Reliance Capital, managed assets worth about 808 billion rupees in the 5.5-trillion-rupee local mutual fund industry, data from the Association of Mutual Funds in India showed.
(Reporting by Nishant Kumar; editing by Prem Udayabhanu)