Reliance Mutual Fund has launched a pharma fund in India -- its third sector specific fund after banking and power -- and expects to raise over Rs 200 crore (Rs 2 billion).

The initial offer of Reliance Pharma Fund opened on May 10 and closes on May 26, 2004, the mutual fund company said in a statement on Wednesday.

The units would be offered at Rs 10 per unit and the minimum application amount is Rs 10,000.

Reliance MF CEO Amitabh Chaturvedi said, "We believe that certain sectors are poised to grow at a rate that is higher than the industry average. The pharma fund is ideal for investors who believe in the opportunity that the sector offers and are looking for a long term investment horizon."

Reliance pharma fund is an open-ended scheme that can invest up to 100 per cent in equity and equity related securities in this sector and can also shift focus to fixed income securities and money market instruments upto 100 per cent in extreme cases of bearish equity market.

The pharma fund is managed by Reliance Capital Asset Management Ltd, which has over Rs 10,000 crore (Rs 100 billion) assets under management as on May 10, 2004.