Reliance Growth Fund is going open-end on September 27, three years before its redemption date. The fund manages assets worth Rs 44 crore. The fund will now be available to investors for sale and repurchase of units on a continuous basis. The fund has a NAV of Rs 21.57 as on August 12. Reliance Growth Fund has been ranked number one for the three year period with a return of 108 per cent while it has been ranked number three for the the one year period with a return of 70 per cent. The NAV of the fund has been on a steady rise, moving from Rs 14.66 on January 29 to Rs 15.77 on April 29 and Rs 21.57 on August 12. For the three-month period, the fund has given a return of 33 per cent.With a handful of closed-end equity funds left, the species is close to extinction. Of the 26 closed-end equity funds, as many as 18 are coming up for redemption in the next two years. These include UTI schemes like Mastergrowth, UGS 2000, UGS 5000 and Equity-Opportunity Fund. Another growth fund, LIC Dhanasmriddhi will goopen-end from September 22. The fund, with a net asset value of Rs 4.70, manages assets worth Rs 11 crore. After going open-end, the fund will charge an entry load of 1 per cent on fresh subscriptions with minimum subscription pegged at Rs 5,000. Zurich Indian Quantum has also approached stock exchanges to delist the units. The Rs 90 crore fund is due for redemption in January, 2000. The seven year fund was launched in 1993 and has given a return of 85 per cent for the 3-year period ended July 31.
The open-end funds have emerged as a hot favourite among investors and offer a number of advantages including daily sale and repurchase of units at a NAV-linked price, daily declaration of NAV and systematic investment and withdrawal plans. The last couple of years has not seen launch of any closed-end equity funds except UTI's B-group fund which tapped investors last year.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page