Reliance Mutual Fund announced the launch of systematic investment plan (SIP) in gold through Reliance Gold Savings Fund. Sundeep Sikka, CEO, Reliance Capital Asset Management, introducing the SIP in gold here, said the scheme was aimed to cultivate a regular savings habit among investors to accumulate gold in small amount through SIP mode, Mr. Sikka said.
The fund allows small regular investments as low as Rs. 100 a month and in multiples of Re 1 thereafter.
The new fund offer is a convenient way to diversify investment portfolio and reap the returns of gold from a long-term perspective. The investment objective of the scheme is to provide returns that closely correspond to the returns provided by Reliance Gold Exchange Traded Fund, Mr. Sikka said.
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Investors can directly subscribe or redeem units on all business days directly from the AMC through the physical mode at the various designated investor service centres.
The fund helps the investor easily avail add-on facilities such as systematic transfer plan, systematic withdrawal plan, auto-switch and trigger facility.
The Fund enables the investor to avail long-term taxation benefits from first year.
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Entry load is nil for the scheme, as per the Securities and Exchange Board of India's guidelines, whereas the exit load is two per cent, if redeemed or switched out on or before completion of first year from the date of allotment of units.
The NFO which opened on February 14 closes on February 28.