Reliance is looking to create a significant presence in the exchange traded fund (ETF) space as in just two months it has filed three draft offer documents for new ETF schemes. Would the new scheme be able to lure investors?
Moneylife Digital Team
Reliance Mutual Fund plans to launch another open-ended exchange traded fund (ETF)—R*Shares CNX 100 Fund. Last month the fund house filed its draft offer document to launch two ETFs— R*Shares Consumption Fund and R*Shares Dividend Opportunity Fund (Read: R*Shares ETFs: Should you invest in R*Shares Consumption Fund and R*Shares Dividend Opportunity Fund?). These would be the first schemes based on the respective index in the ETF space. The new schemes of Reliance MF which have been recently filed will be the first ETFs to be based on the CNX 100 index. Reliance presently has only one equity ETF scheme in the market—R* Shares Banking ETF (based on the CNX Bank Nifty index). This scheme, launched in June 2008, has been able to accumulate a corpus of just Rs11.43 crore despite having a low expense ratio of just 0.35%.