Bangalore: Religare Mutual Fund has launched its new open-ended equity scheme - Religare PSU Equity Fund. The fund seeks to generate capital appreciation by investing in companies where the central/state government has majority shareholding or where the management control lies with the government. The fund aims to select fundamentally sound companies having the potential to deliver superior growth in the long term. The fund will invest in government companies having presence in core sectors and companies, which are expected to benefit from the divestment process and reforms. At least 65 percent of the assets will be invested in companies, which are part of the BSE PSU Index. Balance 35 percent will be invested in PSUs outside the BSE PSU Index. The fund will also participate in forthcoming IPOs of government companies. In addition, the fund mandate has been carefully thought through and provides the flexibility to hold up to 20 percent of the companies even after the Government exits or becomes a minority shareholder, past examples being Hindustan Zinc and Maruti. The new fund offer (NFO) opens for subscription on September 29, 2009 and closes on October 28, 2009. The face value of the new issue will be 10 per unit. The scheme offers both growth and dividend options with dividend payout and dividend reinvestment facility. For lumpsum purchase, the minimum application amount is 5000 and in multiples of Re.1 thereafter. For SIP investments, the minimum application amount is 1000 and in multiples of Re.1 thereafter per month. The minimum tenure for SIP enrollment is six months under the monthly option and four months under the quarterly option. The entry load for the scheme is nil. Exit Load of one percent if redeemed/switched-out on or before one year from the date of allotment. The schemes performance will benchmarked against BSE PSU Index. The Fund Manager of the scheme is Pradeep Kumar.