Reliance Alternative Investment Funds (Reliance AIF), part of Reliance Nippon Life Asset Management Ltd., has inaugurated its first commodity fund.
The new fund, Reliance Commodity Plus AIF, intends to secure about 700 crore rupees ($100 million).
Reliance AIF intends to deploy the new funds for taking exposure to commodity derivatives, exposure to non-credit debt and 10 percent of the fund will be kept in cash and cash equivalents to deal with redemptions.
The fund will initially invest in a basket of 11 commodities comprising gold, silver, nickel, zinc, aluminium, crude oil, palm oil, copper, soy, lead and natural gas and seeks to generate long-term returns.