Leading asset management firm Reliance Mutual Fund has launched an open-ended index fund which will invest in companies whose securities are covered in the Nifty and the Sensex. The new fund offer (NFO) closes on September 23, 2010. The minimum investment amount for the scheme is Rs 5,000.

The scheme investment portfolio includes 95-100% investment in equities and equity-related securities covered by the Nifty and the Sensex.

Available in both growth and dividend option, the entry load is nil for the scheme, whereas the exit load is 1% for holding period of up to 12 months and nil thereafter.

According to the sources, Reliance Index Fund provides investors an opportunity to participate in India’s growth story by investing in well-diversified portfolio of fundamentally strong, highly liquid and well-known companies.

According to the sources, the company has decided not to charge any asset management fees for this fund in their effort towards financial inclusion and to make this product more attractive for investors – especially in smaller cities or first time investors who have not participated in the success of capital markets in India.