Reliance MF recommences sale of gold savings fund

NEW DELHI: Nearly three months after suspending new subscription to its gold saving scheme, Reliance Mutual Fund today resumed acceptance of fresh investors money for this fund.

The resumption of fresh subscription in Reliance Gold Savings Fund, one of its biggest schemes, has begun days ahead of Diwali festivals that is considered an auspicious occasion for gold related investments.

The fund house had suspended the sale with effect from August 1, 2013 on growing concerns over huge gold imports hurting the country's economic strength.

"...considering the current macro economic environment, it has decided to re-commence the acceptance of subscription in Reliance Gold Savings Fund, with effect from October 23, 2013," Reliance Mutual Fund said in a public announcements.

The gold fund is part of Reliance Capital controlled by Anil Ambani. The fund is estimated to have a total asset under management of over Rs 2,200 crore.

Dhanteras and Diwali festivals approaching next week. Besides, the government and Reserve Bank had taken slew of measures this year to curb the demand of gold to combat ballooning trade deficit and a weak currency.

Earlier in June, Reliance Capital had said it would suspend sale of gold coins and other physical forms of the yellow metal to support the "policy objectives" of the government and the Reserve Bank.