Reliance Capital Asset Management Plans to Launch Islamic Funds in Malaysia

Recently, a subsidiary of Reliance Capital Asset Management has announced to launch two Islamic funds in Malaysia by July. It will roll out products for retail investors in two years.

About the Reliance Capital Islamic Funds, economictimes.indiatimes.com writes, “Reliance, India's largest asset management company, will launch a fund investing in Indian stocks next week and a quantitative global equity fund investing in the US, Europe and Asia in July. Both funds would be managed out of Malaysia.”

Vikrant Gugnani who is the Reliance Capital's international businesses CEO said to ET, “The long-term objective is to target the retail sharia market in the region. We believe the retail story in Malaysia has yet to unfold and we want to be positioned well before to take advantage of (it).”

Reliance Capital Asset Management is the part of financial services firm Reliance Capital. It manages more than $33 billion of Reliance Capital.

About the new funds of Reliance Capital, online.wsj.com writes, “The Malaysian unit of Reliance Capital Asset Management, India's largest asset management firm, plans to launch its two maiden Shariah-compliant funds as it seeks to tap into Malaysia's importance as a Shariah-compliant financial hub and the growing demand for Islamic funds from the region.”

The news portal quotes a statement of Vikrant Gugnani who is the Reliance Capital's international business chief executive, “We are targeting institutional investors for these funds but eventually we will broaden our reach to include the retail market. Our Malaysian company will be the flagship venture in the Islamic asset management business and a global hub for Shariah-complaint products. The total net asset value of Islamic funds in Malaysia currently exceeds MYR22 billion.”

According to the Ian Lancaster who is the Reliance Asset Management Malaysia's chief executive, “The Global Equity fund is a 24-country developed market fund that will invest across 2,500 stocks.”

Islamic Funds in Malaysia by Reliance Capital has gotten the biggest buzz after ICICI Prudential Nifty Junior Index Fund. Now, Reliance is the global leader in market funds.

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ICICI Prudential Nifty Junior Index Fund Launched

Recently, ICICI Prudential AMC announced the launch of Nifty Junior Index Fund. It is an open-ended index fund that allows users to invest in companies whose securities are included in Nifty Junior Index.

The New Fund Offer opens from June 10. It will end on June 21. It is declared in a statement by the company.

The fund is being considered as the country's first open-ended index fund to track CNX Nifty Junior.

About the ICICI Prudential Nifty Junior Index Fund economictimes.indiatimes.com, an online news portal about news and economy says, “Mutual fund major, ICICI Prudential AMC launched its ICICI Prudential Nifty Junior Index Fund, an open-ended index fund that will invest in companies whose securities are included in Nifty Junior Index.”

So, it is an open-ended index fund. You are able to invest in companies whose securities are included in Nifty Junior Index.

Further the news portal quotes a statement of the company about the ICICI Prudential Nifty Junior Index Fund, “Its New Fund Offer (NFO) opens from June 10 and will close on June 21.”

The news portal says, “The Company claimed it to be the country's first open-ended index fund to track CNX Nifty Junior. The fund aims to track 90-95 per cent of the index, maintaining cash balance between 5-10 per cent of the net assets to meet redemptions and other liquidity requirements.”

The news portal gives a conclusion about the fund, “The fund will also track upto 100 per cent of the index as and when the liquidity in the index improves.”

Overall, the new fund - ICICI Prudential Nifty Junior Index Fund has introduced a great investment plan for the consumers. It has great flexibility and it aims to track 90-95 % of the index. There is no doubt that it is a new fund. The new fund has been launched by ICICI Prudential as Nifty Junior Index Fund. The fund will be able to release business cycle.

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