Reliance Mutual Fund: Fund-linked ATM card

Reliance Mutual Fund recently launched its new mutual fund-linked ATM/debit card. The company, one of the largest in India in terms of assets under management (AUM), hopes to attract more retail investors into its fold through this product.

Mr. Himanshu Vyapak Deputy CEO, Reliance Capital Asset Management said, "Since its soft launch a month ago, we have added more than 40,000 new in
vestors for the card, with total investments amounting to Rs 800 crore. The company has been doing 1,000 transactions on a daily basis through the cards, In the next one year, we intend to add new investments of about Rs 10,000 crore for the card with at least five lakh investors on board. In the next one year, we intend to mop up investments of nearly Rs. 10,000 cr"

At a time when most mutual fund (MF) companies are getting a larger share of business from debt funds, short-term liquid funds and gold ETFs than equity funds, Reliance MF believes that the convenience the card offers in terms of easy redemption, will bring in more customers to its liquid funds.
The liquid funds give 2 to 3% higher returns than savings bank accounts.

The card can be used like a regular ATM debit card at point of sale (POS) terminals and for cash withdrawal at ATMs. The liquid fund investments will be linked to the card, to be used as the primary account, against which, he can redeem investments. Based on the value for which the card is swiped, the corresponding number of units accumulated by the customer gets sold.

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