Thursday, 4 November 2010

Reliance Mutual Fund foresees big opportunity in retail debt segment

One of the top officials of India’s largest fund house, Reliance Mutual Fund, said that they saw big opportunity for business growth in the retail debt segment in the coming period. He continued that
huge money presently is lying in the bank deposits and they saw a big opportunity to mobilize these funds in the market through retail participants.

Fixed deposits in banks are much higher than Investment in fixed income mutual funds in India. Now the participation in debt schemes is increasing and in last one year it has almost doubled. Income or debt funds aims to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds, government securities, corporate debentures and money market instruments and the fluctuations in the stock market does not affect these schemes.

The official continued that Reliance Mutual Fund is focusing on higher participation by small investors and their new mantra is “retail”.  The company has a basket of debt fund products in liquid, ultra short term, short term income, long term income and the gilt categories.

This is a good movement from the largest fund house in India and we hope that more people will divert their investments in mutual funds, especially in debt funds because it is more secure than equity funds, even if the return is comparatively less than equity funds.

Courtesy: The Economic Times

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