Leading asset management firm Reliance Mutual Fund today launched an open-ended index fund which will invest in companies whose securities are covered in the Nifty and the Sensex.

The scheme proposes to invest 95-100 per cent in equities and equity-related securities covered by the Nifty and the Sensex, Reliance Mutual Fund said in a statement.

Available in both growth and dividend option, the minimum investment amount is Rs 5,000, it said, adding, entry load is nil for the scheme, whereas the exit load is 1 per cent for holding period of up to 12 months and Nil thereafter.

Reliance Index Fund provides investors an opportunity to participate in India's growth story by investing in well-diversified portfolio of fundamentally strong, highly liquid and well-known companies, said Reliance Capital Asset Management CEO Sundeep Sikka.

"We have decided not to charge any asset management fees for this fund in our effort towards financial inclusion and to make this product more attractive for our investors – especially in smaller cities or first time investors who have not participated in the success of capital markets in India," he said.

The new fund offer which opened today closes on September 23, 2010