Reliance MF announces Further Fund Offer 3 for CPSE ETF

Mumbai: Reliance Mutual Fund (RMF) Tuesday announced Further Fund Offer 3 (FFO3) of its Central Public Sector Enterprises - Exchange Traded Fund (CPSE ETF). RMF plans to raise up to Rs 14,000 crore in FFO3, which includes a base amount of Rs 8,000 crore. The fund is part of the government's overall disinvestment programme, announced earlier, using the exchange traded fund.

"We feel confident that the timing of the issue will help investors benefit from their exposure in a diversified basket like CPSE ETF that includes a list of PSUs who are leaders in their respective sectors," Reliance Nippon Life Asset Management's executive director and CEO, Sundeep Sikka said.

The fund offers an opportunity for investors, especially retail and retirement funds, to invest in the country's growth story at an attractive valuation, low expense and embedded discounts, he said.

CPSE ETF has a very low expense ratio of 0.95 bps. The FFO3 is open for all categories of investors including anchor investors, retail investors, retirement funds, QIBs, non-institutional investors and foreign portfolio investor (FPIs).

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As part of the FFO3, an upfront discount of 4.5 per cent is being offered to all categories of investors. FFO3 to open and close for anchor investors on November 27, 2018 and for non-anchor investors on November 28, 2018 and close on November 30, 2018.