MUMBAI: Reliance Capital Mutual Fund, which has 1,500 crore of assets under management, has lined up with the Reliance Banking Fund, and will launch it in the next three weeks. According to documents filed with the Securities Exchang Board of India (SEBI), the fund will be an open ended equiy scheme which will invest primarily in equity and equity linked instruments of banksand also in debt instruments floated by banking bodies. According to the draft offer document, the scheme will have a growth plan and a dividend plan. The growth plan is designed for investors with capital appreciation of their investment and not regular income. Accordingly, the fund will declare dividends under the growth plan. However, the income earned on the growth plan's corpus will remain invested in the growth plan. The dividend plan has been designed for investors who require regular income out of their investments. Under the dividend plan, the fund would endeavour to make regular dividend payments to the investors. The dividend plan has two options - a dividend payout option and a reinvestment option. Under the reinvestment option, the dividend distributed under the plan would be automatically reinvested at the ex-dividend net asset value on the transaction day following the date of declaration of dividend and additional units will be allotted accordingly. The growth plan has two options - the growth option and the bonus option. The growth option will not have any distribution of income, and the returns to the investor is only by way of capital gains/appreciation through redemption at applicable NAV of the units held by them. The bonus option is guided by the philosophy of value-oriented returns. The trustees may decide to periodically capitalise the sums from reserves including the amount of distributable surpluses of the schemes by way of allotment/credit of bonus units to unitholders’ accounts, the intent being to protect unitholders’ interests, the draft offer document says.