Reliance Mutual Fund plans to hit the market with a new fund offering, Reliance Nivesh Lakshya Fund, to predominantly invest in long-dated government securities.
The fund will have a maturity of 25-30 years to begin with and most of the securities would be bought and held till maturity. Incremental investments will be made in similar securities.
The aim is to secure the currently prevailing interest rates for the long term and provide a cushion against falling rates in the future.
According to the fund house, the scheme would be suited for long-term goals such as retirement and children’s education. The accumulated corpus can be used to draw out annuity or regular cash flow, through systematic withdrawal plans.