Mumbai, Maharashtra, India, February 13, 2006 (XTVWorld.Com) --Reliance Mutual Fund launched the Reliance Equity Fund – a diversified equity fund with derivative strategies that aim to minimise risk and take advantage of both the rising and falling market conditions.  These strategies will help investors capitalise on the booming Indian economy by investing in equities, and at the same time will endeavour to insulate them against market volatility.  The NFO will remain open till March 7, 2006.  There will be no entry load on investments made during the NFO.  The Reliance Equity Fund comes at a time when the markets are at an all time high and there is need for such an innovative product.

The  Reliance Equity Fund aims to capitalise on both the rising and falling markets.   The  investment strategy being that even if the markets go down, the  fund has a part of it’s portfolio hedged, which aims at minimising the downside  risk.  The fund will not only use hedging techniques to limit the downside risk but will also try & capitalise on short selling opportunities to  generate  additional  returns  for  the  investors.  The  percentage of exposure  in  derivatives  will be linked to the P/E of the Index (Nifty) & can go up or down as per the P/E movement.

The fund will invest in the top 100 companies by market capitalisation and companies which are available in the derivatives segment.  The fund will invest 75-100% in equity and equity related instruments and 0-25% in debt and money market securities.

The  Reliance  Any  Time  Money  Card  will also be offered to the Reliance Equity  Fund  investors. Typically, the time taken to liquidate investments in mutual funds ranges from three to seven days. Now, with the Reliance Any Time  Money  Card,  the  liquidity  paradigm  for  mutual  funds  has been redefined, where withdrawals are instant.

About Reliance Mutual Fund:
Reliance  Mutual  Fund is one of the fastest growing mutual funds in India, offering  a  well  rounded  portfolio  of products to meet varying investor requirements.  With a focus on retail investments, Reliance Mutual Fund has a  presence in over 80 cities across the country. It is amongst the leading mutual  funds  in  the  country,  with  an investor base of over 1 million, managing assets over Rs. 16,700 crore as on January 31, 2006#.

Investment  Objective: The primary investment objective of the scheme is to seek   to   generate   capital  appreciation  &  provide  long-term growth opportunities  by  investing  in a portfolio constituted of equity & equity related  securities  of  top  100  companies  by market capitalization & of companies  which are available in the derivatives segment from time to time and  the secondary objective is to generate consistent returns by investing in  debt  and  money  market  securities.   Investment Pattern:  75-100%  in equity  and  equity  related instruments, upto 25% in debt and money market instruments  (including  investments  in  securitised  debt) Available Load Structure:  Entry  Load:  For  Subscription  below Rs.2 crores – 2.25%. For Subscription  of  Rs.  2 crores & above and below Rs. 5 crores – 1.25%.

For Subscriptions of Rs.5 crores & above – Nil (However, there will be no entry load  during  New Fund Offer). Exit Load: For Fresh subscription during the NFO  including  the  1st  installment  of  RIP  /  SIP  and  for  switch-in applications  to  Reliance Equity Fund from any other scheme - an exit load of  2.00% shall be levied if redeemed/switched before 6 months and 1.00% if redeemed  / switched before 1 year from the date of allotment for amount  up to  Rs  5  crores.  There  shall  be no exit load for amount of Rs. 5 Crs & above.   (However  for  subscription  during continuous offer the exit load shall be Nil).

Sponsor: Reliance Capital Limited.
Trustee: Reliance Capital Trustee Co.
Limited Investment Manager: Reliance Capital Asset Management Limited.

Statutory Details:
The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act, 1956. Minimum Application Amount: Rs. 5,000/- and in multiples of Re. 1 thereafter under each option Minimum Additional Investment* (During Continuous Offer): Rs. 1000/- and in multiples of Re. 1 thereafter (*including switch in after opening a folio with minimum of Rs 5000) Terms of Issue: The AMC will calculate and publish the first NAV of the Scheme not later than 30 days from the closure of the New Fund Offer. Subsequently the NAVs will be calculated and disclosed at the close of every business day.

Purchase and redemption of units on all working days.

General Risk Factors: Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. Reliance Equity Fund is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects or returns. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. The Mutual Fund is not guaranteeing or assuring any dividend/ bonus. The Mutual Fund is also not assuring that it will make periodical dividend/bonus distributions, though it has every intention of doing so. All dividend/bonus distributions are subject to the investment performance of the Scheme. For details of scheme features apart from those mentioned above and scheme specific risk factors, please refer to the provisions of the Offer Document. Offer Document and Key Information Memorandum cum Application Forms are available at AMC office/Investor Service centres/AMC website/Distributors.

Please read the offer document carefully before investing.

Contact:
Indira.Das @ relianceinfo.com