Reliance's new fund bets on infrastructure

MUMBAI (Reuters) - Reliance Capital Asset Management launched a stock fund on Monday to invest in infrastructure firms in the country, a sector which is widely expected to get a boost from the new government.

India needs an estimated $500 billion in the five years to 2012 to upgrade airports, roads and inadequate utilities.

"We observe a pick-up of infrastructure spending in the economy, driven by strong political will and ease of project financing," the fund firm said in the offer document posted on its website.

Reliance Infrastructure Fund will invest at least 65 percent of its assets in engineeing, cement and power stocks as well as banks, which also fund such projects, while the rest will be invested in debt and money market instruments.