Mumbai: Seeking to tap the tremendous potential offered by the Indian media and entertainment Industry, Reliance Mutual Fund today (Sep 20, 2004) has launched the 'Reliance Media & Entertainment Fund', an open-ended media and entertainment sector scheme.

Reliance Media & Entertainment Fund is an open-ended fund that invests in equity/equity related or fixed income securities of media and entertainment and other associated companies to tap into the growth potential of this sector.

Reliance Media & Entertainment Fund, harnessing the opportunities provided by the Indian media and entertainment sector will invest in various segments like print, television, radio, cinema, outdoor advertising and also emerging genres such as Internet advertising, media portals, companies that provide online content for Internet, mobile, broadband, etc.

Speaking on the occasion of the launch, Amitabh Chaturvedi, CEO, Reliance Mutual Fund said, "The launch is in-line with our efforts to provide better investment avenues to the retail investor. The media and entertainment sector has become an integral part of our day-to-day lives today, touching all of us in some way or the other. We believe this sector holds extensive growth potential - especially with the emergence of new media like Internet, mobile and broadband, which are set to take the definition of media to a new high altogether. We now provide an avenue for the investors to be a part of this growth."

The issue will remain open from September 16 to September 27, 2004. During the period of the initial public offering (IPO), units will be offered to the investing public at Rs 10. Minimum application amount is Rs 10,000 for resident and non-resident investors and in multiples of Re 1, thereafter. No entry/exit load will be charged during the IPO. There will be an entry load of 2 % during the continuous offer, after the IPO.

The initial issue expenses incurred during IPO will be debited to the scheme to the extent of 6 % of the funds raised during initial public offer and the same will be amortized over a period of 5 years. As per SEBI (Mutual fund) regulations, any expense more than 6 % of the initial net assets shall be borne by the Asset Management Company (AMC).

Reliance Capital Asset Management Ltd is sponsored by Reliance Capital Ltd, which is part of the Rs 99,000 crore (as on March 31, 2004) Reliance Group. Reliance Mutual Fund has been ranked as the 3rd most trusted mutual fund brand in India for the year 2003 through a survey conducted by AC Nielsen ORG-MARG for 'The Economic Times'.