Reliance Natural Resource Fund garners Rs 5,660 cr

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Reliance Natural Resource Fund has garnered Rs 5,660 crore. Speaking to CNBC-TV18, Vikrant Gugnani, CEO, Reliance Mutual Fund said it is an indicator of the power of the brand and shows that people are using mutual funds to invest because of the volatility in the market.  

 

Gugnani added that there may not be an immediate allocation to any particular market or stock. The first NAV will be declared towards the end of February, he stated.

 

Excerpts from CNBC-TV18's exclusive interview with Vikrant Gugnani:

 

Q: Reliance Natural Resource has mopped up Rs 5,600 crore. How has the response been? Would you say that investor appetite has not really dulled after the recent stock market volatility?

 

A: I would like to thank 15.5 lakh investors in this fund, who have expressed confidence to invest with us from over 1,200 cities. It is not only an indicator of the power of the brand. It is also about people moving away from directly investing into markets and using mutual funds as a route to invest because of volatility and uncertainty in the market, so as to leave the investments with the experts.

 

Q: What kind of India allocation are we going to look at for this fund, considering that it is going to be investing in securities of companies listed across geographies?

 

A: The fund is enabled to invest up to 35% overseas. At this point of time, we will invest in stocks and markets that offer us definite long-term value. There are some opportunities in India and overseas.

 

Q: What would they be?      

 

A: They will be specific stocks in specific markets. One will have to wait and see when the portfolio gets disclosed at the end of February. But I do not anticipate an immediate allocation to any particular market or stock, because to invest Rs 5,660 crore is going to take sometime for the fund manager. We have a commitment to deliver long-term growth to our investors and not just a short-term strategy of growth.

 

Q: When will you declare your Net Asset Value (NAV)?

 

A: We will declare our first NAV towards the end of February.