Reliance Mutual Fund seeks SEBI approval for capital protection fund

Reliance Mutual Fund has sought the Securities and Exchange Board of India's approval to launch Reliance Capital Protection Oriented Fund-I (Plan A-Plan B), according to the draft offer document on SEBI's website.

Both plans will offer three tenures each. The close-ended plan (Tenure 1), with a tenure of 12 months and up to 13 months, will deploy 90-95 percent in debt and money market instruments and 5-10 percent in equity and equity related instruments.

The second plan (Tenure 2), with a tenure of 13 months 1 day and up to 37 months, will invest 65-95 percent in debt instruments, up to 30 percent in money market instruments and 5-20 percent in equity and equity related instruments.

The third plan (Tenure 3), with a tenure of more than 37 months and up to 61 months, will allocate 70-95 percent in debt instruments and up to 25 percent in money market instruments and 5-30 percent in equity and equity related instruments.

Other features:

* Plans: Direct and regular

* Options: Growth and dividend

* Minimum application: Rs 5,000 and in multiples of one rupee thereafter

* Exit load: Nil

* Performance benchmark:

    Tenure 1 - 95% Crisil Short Term Bond Fund Index and 5% Nifty 50

Tenure 2 - 85% Crisil Short Term Bond Fund Index and 15% Nifty 50

    Tenure 3 - 80% Crisil Composite Bond Fund Index and 20% Nifty 50

* Fund managers: Sanjay Parekh and Anju Chhajer