Reliance MF invests Rs 2,000 cr; adds 1 lakh new investors

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New Delhi, Jan 30: Reliance Mutual Fund today said it has invested about Rs 2,000 crore in the wake of market corrections even as the Anil Ambani promoted firm has roped in over one lakh new investors over the last few days. Reliance Asset Management Head (Equities) Madhusudan Kela said in statement that the firm has got over Rs 1,000 crore investments in existing funds as the markets corrected.

He advised the investors to stay invested in good stocks, saying fluctuation is a good opportunity, and not a threat for long-term investors. Mr Kela added that there should be a long-term strategy to buy good companies at proper and good valuation. The investors need to rein in their expectations from return on investments in equities, said Mr Kela. In the long run, rupee will appreciate, imperative to reduce interest rate in the country to adjust with global scenario, Mr Kela said adding that with this hypothesis, banking, auto, and new sectors will attract investments, he said.

Market is in self-correcting mode and maturing fast and patient investors will get rewarded in equity as compared to other Assets class.

''Indian markets command premium to global markets but still linked to them and cannot operate in isolation. Indian markets cannot move ahead in valuation in isolation. If global markets correct, it will reflect in our markets with varying proportion, Mr Kela said.

''However, we will be first to bounce back as global foreign markets recover,'' he added.

On January 22, the Indian stock market tumbled by 1,408.35 points, the biggest single-day loss, shaving off over Rs six trillion from investors' wealth, following extremely weak global cues on increased fears of imminent recession in the US as well as a wave of selling by FIIs.

Reliance Mutual's assets under management stood at Rs 80,779 crore at the end of December, while the total assets of all the 32 funds in the country aggregates to Rs 5,49,942.02 crore.

UNI

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