SIP Project (Revathi) New

EXECUTIVE SUMMARY
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GEN Society’s Global Business School , Hubli
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Executive Summary
Now a day, there is a tough competition in financial avenues due to increase in

the investment products. People can get many investment options to invest their
savings. Selecting one from the many available options considering many associated
factors is a very complex process.
Reliance Mutual Fund is one of India's largest brokerage and securities distribution
house in India. It is new to Securities market but still among the top 5 performing
company leaving far behind the oldest companies. It is considered to be one of the
leading investment broking houses catering to the needs of both institutional and
non-institutional investor categories with presence all over the country through
franchisees and co-coordinators.
When it comes to saving money, people often opt for fixed deposits, considering
them to be relatively risk free. The security of having the money in the bank is
apparently a great factor. But we need to introspect that is this actually saving of
money or rather losing of it?
Fixed deposits of FDs may give attractive returns on paper, but with the tax payable
at the current tax slab, the more one invests in FDs, the more tax one has to pay.
Taking in consideration the rate of inflation over the years, it is possible that one
may actually be facing a loss by investing in FDs.
In the case of Mutual Funds or MFs, the scenario is a wee bit different.. Although
MFs are affected by market volatility and do have a level of risk, they are managed
by professional fund managers, who do their best not only to protect investments but
also to grow it.
In this project I studied the schemes of Reliance Mutual fund and their returns in
various period of time which helped me in knowing how the various schemes are
performing and the reasons behind it. I also came to know the risk associated with
the various schemes and how risk and returns are related. Hence my topic of study is
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“Analysis of Equity Based Systematic Investment Plan (SIP)
Schemes to design SIP Portfolio”
After the analysis made on Equity based Systematic Investment Plan Schemes of
Reliance Mutual Fund I can conclude that as per the analysis of 5years
performance of Equity based SIP Mutual Funds some are giving best returns like
Reliance Small Cap Fund, Reliance focused equity fund, Reliance Tax
Saver(ELSS) Fund, Reliance Mid Cap Fund, Reliance Large Cap Fund, are doing
extremely well in the market satisfying the customer wants of high returns , it is
quite clear that the equity based mutual fund schemes have lot of potential to give
high returns but investors should be aware about the Schemes those are really
operating & giving high returns.
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INDUSTRY PROFILE
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INDUSTRY OVERVIEW:
Reliance Mutual Fund is one of the top-performing mutual funds in India.

Incorporated in the year 1995, within a very short span of time, Reliance Mutual
Fund has established its existence as one of the top mutual funds. With its presence
in more than 160 cities across the country, Reliance MF deals in five main funds
namely Debt Funds, Equity Funds, Retirement Funds, Gold Funds and Liquid
Funds. To provide its investors with the best possible investment solutions, RMF
strives for introducing innovative products.
Investments in securities are spread across a wide cross section of industries and
sectors and thereby reduce the risk. Asset Management Companies (AMCs)
normally come out with a number of schemes with different investment objectives
from time to time. A mutual fund is required to be registered with the Securities and
Exchange Board of India (SEBI), which regulates securities markets before it can
collect funds from the public.
HISTORY OF MUTUAL FUNDS:
Prof K Geert Rouwenhorst in 'The Origins of Mutual Funds', states that the origin of
pooled investing concept dates back to the late 1700s in Europe, when "a Dutch
merchant and broker invited subscriptions from investors to form a trust to provide
an opportunity to diversify for small investors with limited means." The emergence
of "investment pooling" in England in the 1800s brought the concept closer to the
US shores.
The enactment of two British laws, the Joint Stock Companies Acts of 1862 and
1867, permitted investors to share in the profits of an investment enterprise and
limited investor liability to the amount of investment capital devoted to the
enterprise. Shortly thereafter, in 1868, the Foreign and Colonial Government Trust
was formed in London.
It resembled the US fund model in basic structure, providing "the investor of

moderate means the same advantages as the large capitalists by spreading the
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investment over a number of different stocks." More importantly, the British fund
model established a direct link with the US securities markets, helping finance the
development of the post-Civil War US economy.
The Scottish American Investment Trust, formed in February 1873, by fund pioneer
Robert Fleming, invested in the economic potential of the US, chiefly through
American railroad bonds. Many other trusts followed them, who not only targeted
investment in America, but led to the introduction of the fund investing concept on
the US shores in the late 1800s and the early 1900s. The first mutual or 'open-ended'
fund was introduced in Boston in March 1924. The Massachusetts Investors Trust,
which was formed as a common law trust, introduced important innovations to the
investment company concept by establishing a simplified capital structure,
continuous offering of shares, and the ability to redeem shares rather than holding
them until dissolution of the fund and a set of clear investment restrictions as well as
policies.
The stock market crash of 1929 and the Great Depression that followed greatly
hampered the growth of pooled investments until a succession of landmark
securities laws, beginning with the Securities Act, 1933 and concluded with the
Investment Company Act, 1940, reinvigorated investor confidence. Renewed
investor confidence and many innovations led to relatively steady growth in industry
assets and number of accounts.
THE MUTUAL FUND INDUSTRY IN INDIA:
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India (UTI) at the initiative of the Reserve Bank of India (RBI) and the Government
of India. The objective then was to attract small investors and introduce them to
market investments. Since then, the history of mutual funds in India can be broadly
divided into six distinct phases.
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Phase I (1964-87):
Growth Of UTI:
In 1963, UTI was established by an Act of Parliament. As it was the only entity
offering mutual funds in India, it had a monopoly. Operationally, UTI was set up by
the Reserve Bank of India (RBI), but was later delinked from the RBI. The first
scheme, and for long one of the largest launched by UTI, was Unit Scheme 1964.
Later in the 1970s and 80s, UTI started innovating and offering different schemes to
suit the needs of different classes of investors. Unit Linked Insurance Plan (ULIP)
was launched in 1971. The first Indian offshore fund, India Fund was launched in
August 1986. In absolute terms, the investible funds corpus of UTI was about Rs
600 Crores in 1984. By 1987-88, the assets under management (AUM) of UTI had
grown 10 times to Rs 6,700 Crores.
Phase II (1987-93):
Entry of Public Sector Funds:
The year 1987 marked the entry of other public sector mutual funds. With the
opening up of the economy, many public sector banks and institutions were allowed
to establish mutual funds. The State Bank of India established the first non-UTI
Mutual Fund, SBI Mutual Fund in November 1987. This was followed by Canbank
Mutual Fund,LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual
Fund, GIC Mutual Fund and PNB Mutual Fund. From 1987-88 to 1992-93, the
AUM increased from Rs 6,700 crores to Rs 47,004 crores, nearly seven times.
During this period, investors showed a marked interest in mutual funds, allocating a
larger part of their savings to investments in the funds.
Phase III (1993-96):
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Emergence of Private Funds:
A new era in the mutual fund industry began in 1993 with the permission granted for
the entry of private sector funds. This gave the Indian investors a broader choice of
'fund families' and increasing competition to the existing public sector funds. Quite
significantly foreign fund management companies were also allowed to operate
mutual funds, most of them coming into India through their joint ventures with
Indian promoters.
The private funds have brought in with them latest product innovations, investment
management techniques and investor-servicing technologies. During the year 1993-
94, five private sector fund houses launched their schemes followed by six others in
1994-95.
Phase IV (1996-99):
Growth and SEBI Regulation:
Since 1996, the mutual fund industry scaled newer heights in terms of mobilization
of funds and number of players. Deregulation and liberalization of the Indian
economy had introduced competition and provided impetus to the growth of the
industry.
A comprehensive set of regulations for all mutual funds operating in India was
introduced with SEBI (Mutual Fund) Regulations, 1996. These regulations set
uniform standards for all funds. Erstwhile UTI voluntarily adopted SEBI guidelines
for its new schemes. Similarly, the budget of the Union government in 1999 took a
big step in exempting all mutual fund dividends from income tax in the hands of the
investors. During this phase, both SEBI and Association of Mutual Funds of India
(AMFI) launched Investor Awareness Programme aimed at educating the investors
about investing through MFs.
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Phase V (1999-2004):
Emergence of a Large and Uniform Industry:
The year 1999 marked the beginning of a new phase in the history of the mutual
fund industry in India, a phase of significant growth in terms of both amount
mobilized from investors and assets under management. In February 2003, the UTI
Act was repealed. UTI no longer has a special legal status as a trust established by
an act of Parliament. Instead it has adopted the same structure as any other fund in
India - a trust and an AMC.
UTI Mutual Fund is the present name of the erstwhile Unit Trust of India (UTI).
While UTI functioned under a separate law of the Indian Parliament earlier, UTI
Mutual Fund is now under the SEBI's (Mutual Funds) Regulations, 1996 like all
other mutual funds in India.
The emergence of a uniform industry with the same structure, operations and
regulations make it easier for distributors and investors to deal with any fund house.
Between 1999 and 2005 the size of the industry has doubled in terms of AUM which
have gone from above Rs 68,000 crores to over Rs 1,50,000 Crores.
Phase VI (From 2004 Onwards):
Consolidation and Growth:
The industry has lately witnessed a spate of mergers and acquisitions, most recent
ones being the acquisition of schemes of Allianz Mutual Fund by Birla Sun Life,
PNB Mutual Fund by Principal, among others. At the same time, more international
players continue to enter India including Fidelity, one of the largest funds in the
world.
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ADVANTAGES OF MUTUAL FUNDS:
Mutual fund investments in stocks, bonds and other instruments require considerable
expertise and constant supervision, to allow an investor to take the right decisions.
Small investors usually do not have the necessary expertise and time to undertake
any study that can facilitate informed decisions. While this is the predominant
reason for the popularity of mutual funds, there are many other benefits that make
mutual funds appealing.
 Diversification Benefits:
Diversified investment improves the risk return profile of the portfolio. Optimal
diversification has limitations due to low liquidity among small investors. The large
corpus of a mutual fund as compared to individual investments makes optimal
diversification possible. Due to the pooling of capital, individual investors can
derive benefits of diversification.
 Low Transaction Costs:
Mutual fund transactions are generally very large. These large volumes attract lower
brokerage commissions and other costs as compared to smaller volumes of the
transactions that individual investors enter into. The brokers quote a lower rate of
commission due to two reasons. The first is competition for the institutional
investors business. The second reason is that the overhead cost of executing a trade
does not differ much for large and small orders. Hence for a large order these costs
spread over a large volume enabling the broker to quote a lower commission rate.
 Availability of Various Schemes:
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There are four basic types of mutual funds: equity, bond, hybrid and money market.
Equity funds concentrate their investments in stocks. Similarly bond funds primarily
invest in bonds and other securities. Equity, bond and hybrid funds are called long-
term funds. Money market funds are referred to as short-term funds because they
invest in securities that generally mature in about one year or less. Mutual funds
generally offer a number of schemes to suit the requirement of the investors.
 Professional Management:
Management of a portfolio involves continuous monitoring of various securities and

innumerable economic variables that may affect a portfolio's performance. This
requires a lot of time and effort on part of the investors along with in-depth
knowledge of the functioning of the financial markets. Mutual funds are managed by
fund managers generally with knowledge and experience whose time is solely
devoted to tracking and updating the portfolio. Thus investment in a mutual fund not
only saves time and effort for the investor but is also likely to produce better results.
 Liquidity:
Liquidating a portfolio is not always easy. There may not be a liquid market for all
securities held. In case only a part of the portfolio is required to be liquidated, it may
not be possible to see all the securities forming a part of the portfolio in the same
proportion as they are represented in the portfolio; investing in mutual funds can
solve these problems. A fund house generally stands ready to buy and sell its units
on a regular basis. Thus it is easier to liquidate holdings in a Mutual Fund as
compared to direct investment in securities.
 Returns:
In India dividend received by investors is tax-free. This enhances
the yield on mutual funds marginally as compared to income from other
investment options. Also in case of long-term capital gains, the investor
benefits from indexation and lower capital gain tax.
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 Flexibility:
7y6iolFeatures of a MF scheme such as regular investment plan, regular withdrawal

plans and dividend reinvestment plan allows investors to systematically invest or
withdraw funds according to the needs and convenience.
 Well Regulated:
All mutual funds are registered with SEBI and they function within the provisions of
strict regulations designed to protect the interest of investors. The SEBI regularly
monitors the operations of an AMC.
STRUCTURE OF MUTUAL FUNDS IN INDIA:
In India, the mutual fund industry is highly regulated with a view to imparting
operational transparency and protecting the investor's interest. The structure of a
mutual fund is determined by SEBI regulations. These regulations require a fund to
be established in the form of a trust under the Indian Trust Act, 1882. A mutual fund
is typically externally managed. It is now an operating company with employees in
the traditional sense.
Instead, a fund relies upon third parties that are either affiliated organizations or
independent contractors to carry out its business activities such as investing in
securities. A mutual fund operates through a four-tier structure. The four parties that
are required to be involved are a sponsor, Board of Trustees, an asset management
company and a custodian.
Sponsor:
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A sponsor is a body corporate who establishes a mutual fund. It may be one person
acting alone or together with another corporate body. Additionally, the sponsor is
expected to contribute at least 40% to the net worth of the AMC. However, if any
person holds 40% or more of the net worth of an AMC, he shall be deemed to be a
sponsor and will be required to fulfill the eligibility criteria specified in the mutual
fund regulation.
Board Of Trustees:
A mutual fund house must have an independent Board of Trustees, where two-thirds
of the trustees are independent persons who are not associated with the sponsor in
any manner. The Board of Trustees of the trustee company holds the property of the
mutual fund in trust for the benefit of the unit-holders. They are responsible for
protecting the unit-holder's interest.
Asset Management Company:
The role of an AMC is highly significant in the mutual fund operation. They are the
fund managers i.e. they invest investors' money in various securities (equity, debt
and money market instruments) after proper research of market conditions and the
financial performance of individual companies and specific securities in the effort to
meet or beat average market return and analysis. They also look after the
administrative functions of a mutual fund for which they charge management fee.
Custodian:
The mutual fund is required by law to protect their portfolio securities by placing
them with a custodian. Nearly all mutual funds use qualified bank custodians. Only
a registered custodian under the SEBI regulation can act as a custodian to a mutual
fund.
Disadvantages of Mutual Funds:
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 Fluctuating Returns:
Mutual funds are like many other investments without a guaranteed return.
There is always the possibility that the value of your mutual fund will depreciate.
Unlike fixed-income products, such as bonds and Treasury bills, mutual funds
experience price fluctuations along with the stocks that make up the fund. When
deciding on a particular fund to buy, you need to research the risks involved - just
because a professional manager is looking after the fund, that doesn't mean the
performance will be stellar.
Another important thing to know is that mutual funds are not guaranteed by
the U.S. government, so in the case of dissolution, you won't get anything back. This
is especially important for investors in money market funds. Unlike a bank deposit,
a mutual fund will not be FDIC insured.
 Diversification:
Although diversification is one of the keys to successful investing, many

mutual fund investors tend to over diversify. The idea of diversification is to reduce
the risks associated with holding a single security; over diversification (also known
as diworsification) occurs when investors acquire many funds that are highly related
and so don't get the risk reducing benefits of diversification. To read more on this
subject, see this article.
At the other extreme, just because you own mutual funds doesn't mean you are
automatically diversified. For example, a fund that invests only in a particular
industry or region is still relatively risky.
 Cash, Cash and More Cash:

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As you know already, mutual funds pool money from thousands of investors,
so everyday investors are putting money into the fund as well as withdrawing
investments. To maintain liquidity and the capacity to accommodate withdrawals,
funds typically have to keep a large portion of their portfolio as cash. Having ample
cash is great for liquidity, but money sitting around as cash is not working for you
and thus is not very advantageous.
 Costs:
Mutual funds provide investors with professional management; however, it comes at

a cost. Funds will typically have a range of different fees that reduce the overall
payout. In mutual funds the fees are classified into two categories: shareholder fees
and annual fund-operating fees. The shareholder fees, in the forms of loads and
redemption fees are paid directly by shareholders purchasing or selling the funds.
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THE DIFFERENT TYPES OF MUTUAL FUNDS:
Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended

scheme depending on its maturity period.
Open-ended Fund/ Scheme
An open-ended fund or scheme is one that is available for subscription and

repurchase on a continuous basis. These schemes do not have a fixed maturity
period. Investors can conveniently buy and sell units at Net Asset Value (NAV)
related prices, which are declared on a daily basis. The key feature of open-end
schemes is liquidity.
Close-ended Fund/ Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The
fund is open for subscription only during a specified period at the time of launch of
the scheme. Investors can invest in the scheme at the time of the initial public issue
and thereafter they can buy or sell the units of the scheme on the stock exchanges
where the units are listed. In order to provide an exit route to the investors, some
close-ended funds give an option of selling back the units to the mutual fund through
periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least
one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV
generally on weekly basis.
Schemes according to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced

scheme considering its investment objective. Such schemes may be open-ended or
close-ended schemes as described earlier. Such schemes may be classified mainly as
follows:
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Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long-
term. Such schemes normally invest a major part of their corpus in equities. Such
funds have comparatively high risks. These schemes provide different options to the
investors like dividend option, capital appreciation, etc. and the investors may
choose an option depending on their preferences. The investors must indicate the
option in the application form. The mutual funds also allow the investors to change
the options at a later date. Growth schemes are good for investors having a long-
term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate
debentures, Government securities and money market instruments. Such funds are
less risky compared to equity schemes. These funds are not affected because of
fluctuations in equity markets. However, opportunities of capital appreciation are
also limited in such funds. The NAVs of such funds are affected because of change
in interest rates in the country. If the interest rates fall, NAVs of such funds are
likely to increase in the short run and vice versa. However, long-term investors may
not bother about these fluctuations.
Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion
indicated in their offer documents. These are appropriate for investors looking for
moderate growth. They generally invest 40-60% in equity and debt instruments.
These funds are also affected because of fluctuations in share prices in the stock
markets. However, NAVs of such funds are likely to be less volatile compared to
pure equity funds.
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Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity,
preservation of capital and moderate income. These schemes invest exclusively in
safer short-term instruments such as treasury bills, certificates of deposit,
commercial paper and inter-bank call money, government securities, etc. Returns on
these schemes fluctuate much less compared to other funds. These funds are
appropriate for corporate and individual investors as a means to park their surplus
funds for short periods.
Gilt Fund
These funds invest exclusively in government securities. Government securities

have no default risk. NAVs of these schemes also fluctuate due to change in interest
rates and other economic factor as is the case with income or debt oriented schemes.
Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive
index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the
same weight age comprising of an index. NAVs of such schemes would rise or fall
in accordance with the rise or fall in the index, though not exactly by the same
percentage due to some factors known as "tracking error" in technical terms.
Necessary disclosures in this regard are made in the offer document of the mutual
fund scheme. There are also exchange traded index funds launched by the mutual
funds, which are traded on the stock exchanges.
Sector specific funds/schemes
These are the funds/schemes, which invest in the securities of only those sectors or
industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Fast
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Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these
funds are dependent on the performance of the respective sectors/industries. While
these funds may give higher returns, they are more risky compared to diversified
funds. Investors need to keep a watch on the performance of those sectors/industries
and must exit at an appropriate time. They may also seek advice of an expert.
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the
Income Tax Act, 1961 as the Government offers tax incentives for investment in
specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes
launched by the mutual funds also offer tax benefits. These schemes are growth
oriented and invest pre-dominantly in equities. Their growth opportunities and risks
associated are like any equity-oriented scheme.
Load or no-load Fund
A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each
time one buys or sells units in the fund, a charge will be payable. This charge is used
by the mutual fund for marketing and distribution expenses. Suppose the NAV per
unit is Rs.10. If the entry as well as exit load charged is 1%, then the investors who
buy would be required to pay Rs.10.10 and those who offer their units for
repurchase to the mutual fund will get only Rs.9.90 per unit. The investors should
take the loads into consideration while making investment as these affect their
yields/returns. However, the investors should also consider the performance track
record and service standards of the mutual fund, which are more important. Efficient
funds may give higher returns in spite of loads. A no-load fund is one that does not
charge for entry or exit. It means the investors can enter the fund/scheme at NAV
and no additional charges are payable on purchase
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COMPANY PROFILE
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COMPANY PROFILE:
Reliance Mutual Fund (RMF) is one of India' leading mutual funds, with average
Assets under management (AAUM) of Rs 2,22,575.73 crores (April 2019- June
2019 QAAUM) and 88.65 lakhs folios (as on June 30, 2019)
Reliance Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani (ADA) Group,
is one of the fastest growing mutual funds in India. RMF offers investors a well-
rounded portfolio of products to meet varying investor requirements and has
presence in 160 cities across the country. RMF constantly endeavours to launch
innovative products and customer service initiatives to increase value to investors.
Reliance Mutual Fund (RMF) takes pride in being considered as one of

top. Mutual fund (MF). It comes under the roof of the Reliance Anil Dhirubai
Ambani (ADA) group. RMF was founded as a trust, under Indian trusts Act, 1882.
Reliance capital limited (RCL) was its sponsor/settler and reliance capital trustee.
RMF was established to launch a variety of schemes under which the

units are issued to the investors with an aim to make it contribute to the capital
market and provide the investors with the opportunities to invest in diversified
securities.
The main objectives of RMF are:
1. To carry on the activity of a mutual fund as may be permitted at law, and

formulate and devise various collective schemes of savings and investments
for people in India and abroad, and also ensure liquidity of investments for
the unit holders;
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2. To deploy funds thus raised so as to help the unit holders earn reasonable
returns on their savings; and
3. To take such steps as may be necessary from time to time to realise the
effects without any limitation.
VISION AND MISSION STATEMENT:
Vision Statement:
To be a globally respected wealth creator with an emphasis on customer care and a

culture of good corporate governance.
Mission Statement:
To create and nurture a world-class, high performance environment aimed at

delighting our customers.
DIFFERENT TYPES OF MUTUAL FUND OFFERED BY

RELIANCE MUTUAL FUND:
Equity/Growth Schemes:
The aim of growth funds is to provide capital appreciation over the medium to long-
term. Such schemes normally invest a major part of their corpus in equities. Such
funds have comparatively high risks. These schemes provide different options to the
investors like dividend option, capital appreciation, etc. and the investors may
choose an option depending on their preferences. The investors must indicate the
option in the application form. The mutual funds also allow the investors to change
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the options at a later date. Growth schemes are good for investors having a long-
term outlook seeking appreciation over a period of time.
 Reliance Large Cap fund:
(An open ended equity scheme predominantly investing in large cap stocks)The
primary investment objective of the scheme is to seek to generate long term capital
appreciation by investing predominantly into equity and equity related instruments
of large cap companies. The secondary objective is to generate consistent returns by
investing in debt, money market securities, REITs and InvITs. However, there can
be no assurance that the investment objective of the Scheme will be realized.
 Reliance Tax Saver (ELSS) Fund :
(An Open-ended Equity Linked Savings Scheme.) The primary objective of the
scheme is to generate long-term capital appreciation from a portfolio that is invested
predominantly in equity and equity related instruments.
 Reliance Vision Fund :
(An Open-ended Equity Growth Scheme.) The primary investment objective of the
Scheme is to achieve long term growth of capital by investing in equity and equity
related securities through a research based investment approach. However, there can
be no assurance that the investment objective of the Scheme will be realized, as
actual market movements may be at variance with anticipated trends.
 Reliance Growth Fund :
(An Open-ended Equity Growth Scheme.) The primary investment objective of the
Scheme is to achieve long term growth of capital by investment in equity and equity
related securities through a research based investment approach.
 Reliance Small Cap Fund :
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(An open-ended equity scheme predominantly investing in small cap stocks) The
primary investment objective of the scheme is to generate long term capital
appreciation by investing predominantly in equity and equity related instruments of
small cap companies and the secondary objective is to generate consistent returns by
investing in debt and money market securities.
 Reliance Multi Cap :
(An open ended equity scheme investing across large cap, mid cap, small cap
stocks) The primary investment objective of the scheme is to seek to generate capital
appreciation & provide long-term growth opportunities by investing in a portfolio
constituted of equity securities & equity related securities and the secondary
objective is to generate consistent returns by investing in debt and money market
securities.
 Reliance Balanced Advantage Fund :
(An Open Ended Dynamic Asset Allocation Fund) The investment objective of the
scheme is to capitalize on the potential upside in equity markets while attempting to
limit the downside by dynamically managing the portfolio through investment in
equity & equity related instruments and active use of debt, money market
instruments and derivatives. There is no assurance or guarantee that the investment
objective of the scheme will be achieved.
Debt/Income Schemes:
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate
debentures, Government securities and money market instruments. Such funds are
less risky compared to equity schemes. These funds are not affected because of
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fluctuations in equity markets. However, opportunities of capital appreciation are
also limited in such funds. The NAVs of such funds are affected because of change
in interest rates in the country. If the interest rates fall, NAVs of such funds are
likely to increase in the short run and vice versa. However, long term investors may
not bother about these fluctuations.
 Reliance Money Market Fund:
(An open ended debt scheme investing in money market instruments) The
investment objective of the Scheme is to generate optimal returns consistent
with moderate levels of risk and liquidity by investing in money market
instruments.
 Reliance Liquid Fund :
(An Open Ended Liquid Scheme) The investment objective of the Scheme is
to generate optimal returns consistent with moderate levels of risk and high
liquidity by investing in debt and money market instruments.
 Reliance Ultra Short Duration Fund :
(An open ended ultra-short term debt scheme investing in debt and money
market instruments such that the Macaulay duration of the portfolio is
between 3 - 6 months) The investment objective of the Scheme is to generate
optimal returns consistent with moderate levels of risk and liquidity by
investing in debt and money market instruments.
 Reliance Floating Rate Fund :
An open ended debt scheme predominantly investing in floating rate

instruments (including fixed rate instruments converted to floating rate
exposures using swaps/ derivatives) The primary objective of the scheme is
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to generate regular income through investment predominantly in floating rate
and money market instruments and fixed rate debt instruments.
Sector Specific Schemes
These are the funds/schemes which invest in the securities of only those sectors or
industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast
Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these
funds are dependent on the performance of the respective sectors/industries. While
these funds may give higher returns, they are more risky compared to diversified
funds. Investors need to keep a watch on the performance of those sectors/industries
and must exit at an appropriate time. They may also seek advice of an expert.
Exchange Traded Fund:
Exchange Traded Funds (ETFs) are usually passively managed mutual fund schemes
tracking a benchmark index and reflect the performance of that index. These
schemes are listed on the stock exchange and therefore have the flexibility of trading
like a share on the stock exchange. It can also be looked as a security that tracks an
index, a commodity or a basket of assets like an index fund, but trades like a stock
on an exchange, thus experiencing price changes throughout the day as it is bought
and sold.
Fixed Maturity Plans (FMPs):
Fixed Maturity Plans (FMPs) are basically debt oriented investment schemes with a
pre-specified tenure offered by mutual funds. FMPs invest in a portfolio of debt
instruments whose maturity coincides with the maturity of the concerned FMP. The
primary objective of a FMP is to generate income while aiming to protect the capital
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by investing in a portfolio of debt and money market securities. Since FMPs are
available with several maturity options, one can invest in the relevant plan
depending upon his investment horizon and the requirement of cash flows.
Mutual Fund Reliance Mutual Fund

Setup Date June-30-1995
Incorporation Date Feb-24-1995
Sponsor Nippon Life Insurance Company &Reliance Capital
Limited
Trustee Reliance Capital Trustee Co. Ltd.
Chairman N.A
CEO & ED Mr. Sundeep Sikka
CIO Mr. Manish Gunwani (E) / Mr. Amit Tripathi (FI)
Compliance Officer Mr. Muneesh Sud
Investor Service Officer Mr. Bhalchandra Joshi
Assets Managed Rs. 2,40,445.37 Crore (June-30-2018)
RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED
Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset
Management Limited)(RNAM) is the asset manager of Reliance Mutual Fund
(RMF). Reliance Capital Limited and Nippon Life Insurance Company are the
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promoters of RNAM and currently hold 85.75% of its total issued and paid-up
equity share capital. Equity Shares of RNAM are listed on BSE Limited and
National Stock Exchange of India Limited.
Reliance Capital Limited is one of India’s leading and fastest growing, RBI
registered Non-Banking Finance Company (NBFC). and has its business interests in
Asset Management, Life Insurance, General Insurance, Private Equity, Proprietary
Investments, Stock Broking, & other activities in the Financial Services Sector.
Nippon Life Insurance Company (“NLI”) is a Japan’s leading private life insurer
and offers a wide range of financial products, including individual and group life
and annuity policies through various distribution channels, mainly using face-to-face
sales channels for its traditional insurance products. It primarily operates in Japan,
North America, Europe and Asia, and is headquartered in Osaka, Japan. NLI
conducts asset management operations in Asia, through its subsidiary Nissay Asset
Management Corporation (“Nissay”), which manages assets globally.
Reliance Mutual Fund – Organization Structure
Reliance Capital Limited

Sponsor
(CIN: L65910MH1986PLC165645)
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Co-Sponsor Nippon Life Insurance Company
Reliance Capital Trustee Co. Limited

Trustee
(CIN : U65910MH1995PLC220528)
Reliance Nippon Life Asset Management Limited

Investment
Manager / AMC (CIN : L65910MH1995PLC220793 )
The Sponsor, the Trustee and the Investment Manager

are incorporated under the Companies Act, 1956 and the
Statutory Details
Co-sponsor is a mutual company registered under the laws
of Japan
ABOUT RELIANCE NIPPON LIFE ASSET MANAGEMENT

LIMITED
Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset
Management Limited)is a listed public limited company incorporated under the
Companies Act, 1956 on February 24, 1995, having its registered office at
Reliance Centre, 7th Floor, South Wing, Off Western Express Highway,
Santacruz (East), Mumbai – 400055
and its Corporate Office at
Reliance Centre,
7th Floor South Wing,
Off Western Express Highway,
Santacruz (East), Mumbai – 400 055.
RNAM has been appointed as the Asset Management Company (AMC) of Reliance
Mutual Fund (RMF) by the Trustees of RMF vide Investment Management
Agreement (IMA) dated May 12, 1995 amended on August 12, 1997, January 20,
2004 and February 17, 2011 in line with Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996.
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OTHER ACTIVITIES OF RNAM
RNAM has been registered as a Portfolio Manager vide SEBI Registration Number
PM/INP000000423 and the same was last renewed for the period of 3 years with
effect from August 1, 2015 till July 31, 2018.Under this license, RNAM is permitted
to manage portfolios of its clients in terms of Securities and Exchange Board of
India (Portfolio Managers) Regulations, 1993. In addition to this, RNAM renders
advisory services to its offshore clients and has an approval to manage and/or advise
pooled assets including offshore funds, insurance funds, provident funds and
pension funds.
SUBSIDIARIES OF RNAM
From time to time, RNAM has set up subsidiary companies after seeking the
necessary approvals and registrations, as applicable, including that from SEBI.
Presently, RNAM has the following subsidiaries:
India
 Reliance AIF Management Company Limited for acting as Investment

Manager / Advisor of Alternative Investment Funds
Overseas
 Reliance Asset Management (Singapore) Pte. Limited, in Singapore
 Reliance Asset Management (Mauritius) Limited, in Mauritius
RNAM has ensured that key personnel of the AMC, the systems, back office, and
bank and securities accounts are segregated activity-wise and there exists systems to
prohibit access to inside information of various activities. As per SEBI regulations,
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it will further ensure that the AMC meets the capital adequacy requirements, if any,
separately for each such activity.
However, there is no conflict of interest inter–se between various “other activities”,

as being directly or indirectly carried out by RNAM.
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OBJECTIVES &
METHODOLOGY
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Design of the Study
Need for the Study:
The study will help the organization in knowing how the Equity schemes of the
company’s are performing and which schemes are preferred most by the investors.
Objectives of the project
1) To study the factors influencing risk minimization in SIP mutual funds
2) To compare the performances of selected Equity based SIP mutual funds

( Large cap, mid cap and small cap ).
3) To design the best portfolio for SIP investment.
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Literature Review
 Title Name : Long Term Performance of Equity Based Mutual Funds

(Systematic Investment Plan)
 Author Name : Saudagar Godase & Suchismitaa Sengupta
 Year: 2014
From this research it is quite clear that the equity based mutual fund
schemes have lot of potential to give high returns but investors should be aware
about the Schemes those are really operating & giving high returns.
They conclude that how much risk is include in certain schemes and the
comparatives returns .
 Title Name : A Dea Comparison Of Systematic And Lump Sum

Investment In Mutual Funds
 Author Name : Dimple Batra & Gunjan Batra
 Year: 2th May 2012
Many of people do not have invested in mutual fund due to lack of

awareness although they have money to invest . The investors prefer to go for fixed
deposits in bank because of their less risky nature, some of the investors treat mutual
funds risky but which is not supported by calculations of these research which says
that always gives good returns in mutual funds if investment is for long time period
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 Title Name : A Study on Performance Evaluation of Mutual
Funds Schemes in India
 Author Name : N. Bhagyasree & Mrs. B. Kishori
 Year: 2016
The historical performance of the selected schemes were evaluated on basis of

sharpe, Treynor, and Jensen’s measure whose results will be useful for investors
for taking better investment decision .
 Title Name : A Study On Systematic Investment Plan As An Effective

Investment Option In Mutual Funds
 Author Name: B. Raghava Reddy & P. Sreenivasulu
 Year: 2015
It discloses the fast becoming common term in the investment market.

But a lot of people are still uncertain some are cynical in new thing in the market
while most are just confused. This article is an attempt to avoid all confusions of
investors.
 Title Name : Mutual Funds and Systematic Investment plans with their
best performing funds
 Author Name: Rishab Telukunta
 Year: 2017
It concluded that the future of mutual funds in India has lot of positive things to
offer to investors. These concepts help in understanding the concepts of Mutual
funds and Systematic investment plans in a better way.
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RESEARCH DESIGN
TITLE OF THE PROJECT:
“ Analysis of Equity Based Systematic Investment Plan(SIP)

Schemes to design SIP Portfolio”
Study area:
Reliance Nippon Life Asset Management Limited –Reliance Mutual Fund Court
circle Hubli.
METHODOLOGY:
DATA COLLECTION METHOD:
 Primary data
I collected information through personal interaction with Branch Manager
and Cluster head about Organization Structure, Investment. No of
employees, about schemes and also I interacted with Operational manager
and office boy.
 Secondary data
Some information is collected from
1. Fact sheet
2. Reliance mutual fund website
3. Literature review
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 Tools Used for Data Caluculation:
Tools for data analysis I used MS Excel software for calculation.
 Duration of the Project :
2 Months
Limitation of the study:
Apart from Details about mutual funds it has some limitations due to that all the
details could not be published & displayed. It has been done on the basis of
secondary sources like Journals, Websites & like factsheet .
Limitations of the study can be pointed out as follows
 Time constraints: - Due to shortage or less availability of time it may be

possible that all the related & concerned aspects may not be covered in the
project.
 Analysis done is limited to the availability of data.
 It is very difficult to evaluate the accuracy of secondary data. Before using
secondary data.
 The quality of internal secondary data may be exaggerated or biased
 Selection of schemes for study is very difficult because lot of Varieties in

equity Scheme.
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Systematic Investment Plans
--A rupee a day, keeps worries away
Higher the returns from the invested amount,greater the benefit accrued due to the
powerof compounding
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Introduction
A Systematic Investment Plan (SIP) is good tool that retail investors can utilize to
optimize their investment strategy. SIP is nothing but a simple method of investing a
fixed sum of money in a specific investment scheme, on a regular basis, for a pre-
determined period of time. A recurring deposit with the post office or a recurring
deposit with the bank is also a SIP . SIP was already famous and proven in Mutual
Fund context but now SIP has also come directly into equity stocks which is
essentially Individual Stocks. Equity SI is a new facility thorugh which you can buy
a script for a regular interval over a period of time for specified amount or for a
specified quantity.
SIP requires to invest a particular amount in a specific mutual fund scheme. In

comparison, it functions much like a recurring deposit. You can plan a savings
scheme for yourself and commit a particular sum of money each month on a pre-
fixed date to the scheme. You ca begin with as low as Rs 500 in ELSS (Equity
Linked Saving Schemes) scheme and move on to Rs 1000 a month for other
diversified schemes SIP follows a simple mantra – buy when high and sell when
low. This is simple way to win in the stock markets.
The discipline associated with investing strictly on a regular basis works much better
that setting aside lump sums each month. Since you begin at a relatively younger
age, tha benefits of compounding are all yours. The convenience involved too is
good, since you have to submit a request for purchase of shares only once. SIPs
work for investors in the slightly long run and are useful to those who work on fixed
budgets for the month, since the pre-planning helps. SIP is very useful for a time
horizon of 10-15 years. An investor should carefully fix the amount to be invested
so that it does not impact his cash flows over this time horizon. SIP imparts
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discipline to savings. On giving a post dated cheques or ECS instruction to any fund
saving and investing happens automatically.
SYSTEMATIC INVESTMENT PLAN
SIP or Systematic Investment Plan is a type of investment scheme offered by mutual

fund companies. SIPs allow one to invest a small amount of money periodically
(quarterly, monthly, weekly) into a selected mutual fund.
SIP mainly helps us to get addicted to an investment the principle of
Income – Saving = Expenditure, instead of following the principle of
Income - Expenditure = Savings.
SIP can be used in any type of mutual fund, equity or fixed income. This strategy is
best used in an equity fund where an investor can capture the volatility in the equity
markets to reduce the cost of investment. The NAV of any fund is determined by the
market price of stocks the fund has invested in. when an investor invests a fixed sum
every month or quarter he gets more units of the fund when the markets are down
and NAV is low than when the markets are up and the NAV is high. By investing
across time horizons and market cycles, investors stand a better chance of lowering
their investment cost.
SIP also helps investors to overcome the problem of ‘when’ to invest in the equity
markets as irrespective of the state of the market an investor is always invested. SIP
takes away the decision-making and converts it into a mechanized one. The
lowering of risk, by entering at different time periods, however has the disadvantage
of “averaging” out returns.
A very important aspect to be kept in mind is the entry and exit load charged by all
mutual funds. In a normal investment most funds either charge entry load or exit
load. But in a SIP along with an entry load charged for each installment, an exit load
is charged if the program is withdrawn before a specified period. This period could
vary from six months to two years. This double whammy will reduce the returns in
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the short term. This makes SIP an inflexible investment program and expensive if
withdrawn prematurely due to unforeseen emergencies.
Finally, when considering a SIP, investors should note that it does not assure a
return and continue investing without interruption as missing a few installments
could lead to termination of the SIP. Since the time equity markets have been
engulfed by volatility, the most frequently heard advice is that best way to invest in
equities is “invest via the systematic investment plan rout for long-term.” When an
investor chooses to invest in mutual funds via a SIP, he makes investment (usually)
in smaller denominations at regular intervals of time rather than making a single
lump sum investment. By doing so investor benefits from the investing principle
known as Rupee Cost Averaging. It is just like a recurring deposit with the post
office or bank where you put in a small amount every month. The difference here is
that the amount is invested in a mutual fund.
How does it work?
A SIP is a flexible and easy investment plan. Your money is auto-debited from your
bank account and invested into a specific mutual fund scheme.You are allocated
certain number of units based on the ongoing market rate (called NAV or net asset
value) for the day.
Every time you invest money, additional units of the scheme are purchased at the
market rate and added to your account. Hence, units are bought at different rates and
investors benefit from Rupee-Cost Averaging and the Power of Compounding.
Rupee-Cost Averaging
With volatile markets, most investors remain skeptical about the best time to invest
and try to ‘time’ their entry into the market. Rupee-cost averaging allows you to opt
out of the guessing game. Since you are a regular investor, your money fetches
more units when the price is low and lesser when the price is high. During
volatile period, it may allow you to achieve a lower average cost per unit.
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Power of Compounding
Albert Einstein once said, “Compound interest is the eighth wonder of the world. He
who understands it, earns it... he who doesn't... pays it.” The rule for compounding
is simple - the sooner you start investing, the more time your money has to grow.
Example
If you started investing Rs. 10000 a month on your 40th birthday, in 20 years time
you would have put aside Rs. 24 lakhs. If that investment grew by an average of 7%
a year, it would be worth Rs. 52.4 lakhs when you reach 60.
However, if you started investing 10 years earlier, your Rs. 10000 each month
would add up to Rs. 36 lakh over 30 years. Assuming the same average annual
growth of 7%, you would have Rs. 1.22 Cr on your 60th birthday – more than double
the amount you would have received if you had started ten years later!
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Why should you invest in SIP?
 It is easier for a person to shell a smaller amount every month rather than a big
amount all at once. Investing through SIP is lighter on the pocket. It’s easier to pay
Rs 8,000 per month for a year, instead of investing Rs 96,000 at the same time.
 The major advantage of SIP is a concept of rupee-cost averaging. SIP allows you
to buy more units as the market goes down and fewer units as markets moves up.
 The other advantage of SIP is that it trains you to become a disciplined investor.
Once you begin SIP, every month you have got to contribute certain money in
mutual fund and that habit is cultivated.
 SIP presents a very convenient way of investing. It is only required to submit a

filled up enrolment form along with a cheque, which is to be deposited on the date
requested by the mutual fund. Thereafter, units will be credit to your account & a
notification will be sent out for the same.
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 Capital gains, if applicable, are taxable on a first-in, first-out basis.
What are the benefits of SIP ?
 Power of saving:
The power of saving underlines the essence of making money work if only invested
at an early age. The longer one delays in investing, the greater the financial burden
to meet desired goals. Saving a small sum of money regularly at an early age makes
money work with significant impact on wealth accumulation explained through the
illustration below.
Illustration:
At end of Year 5% 10% 15% 20%
1 Rs.1,050 Rs.1,110 Rs.1,115 Rs.1,120
5 Rs.1,276 Rs.1,611 Rs.2,011 Rs.2,488

10 Rs.1,623 Rs.2,594 Rs.4,046 Rs.6,192
15 Rs.2,079 Rs.4,177 Rs.8,137 Rs.15,407
25 Rs.3,386 Rs.10,835 Rs.32,919 Rs.95,396
The above is for illustration purpose only. The SIP amount, tenure of SIP, expected
rate of return and unit price are assumed figures for the purpose of explaining the
concept of advantages of SIP investments. The actual result may vary from depicted
results depending on scheme selected. It should not be construed to be indicative of
scheme performance in any manner. Past performance may or may not be sustained
in future.
2. Rupee Cost Averaging:

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Timing the market is a difficult task. Rupee cost averaging is an automatic market-
timing mechanism that eliminates the need to time one`s investments. Here, one
need not worry about where share prices or interest are headed as investment of a
regular sum is done at regular intervals; with fewer units being bought in a declining
market and more units in a rising market. Although SIP does not guarantee profit, it
can go a long way in minimizing the effects of investing in volatile markets.
3. Convenience:
SIP is a hassle-free mode of investment. You can issue a standing instruction to

your bank to facilitate auto-debits from your bank account.
4. Disciplined Investing:
It’s the key to investing success. Regular investment makes you disciplined in your
savings and also leads to wealth accumulation. Systematic investing is a time-tested
discipline that makes it easy to invest automatically. Investing regularly in small
amounts can often lead to better results than investing in a lump sum.
Other Benefits of Systematic Investment Plans
· Disciplined Saving – Discipline is the key to successful investments. When you

invest through SIP, you commit yourself to save regularly. Every investment is a
step towards attaining your financial objectives.
· Flexibility – While it is advisable to continue SIP investments with a long-term

perspective, there is no compulsion. Investors can discontinue the plan at any time.
One can also increase/ decrease the amount being invested.
· Long-Term Gains – Due to rupee-cost averaging and the power of compounding

SIPs have the potential to deliver attractive returns over a long investment horizon
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How to Invest in SIP ?
Set Investment Goals
Every mutual fund has a specific goal and purpose. You need to choose one that
suits your requirements. Let us know your financial goals and income details and we
will handpick the plans for you.
Choose
Make an informed decision based on your individual needs and choose an

Systematic Investment Plan mutual fund you want to invest in. You can also
delegate this task to the ClearTax team.
KYC
All our mutual fund investments mandate KYC documentation and a netbanking
account. We offer e-KYC option to upload all the documents online from the
comfort off your home or office. There is usually no need to sign cheques and fill
out forms.
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DATA ANALYSIS
&
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INTERPRETATION
Factors Influencing Risk Minimization
 SIP i.e systematic investment plan is a strategy used to take maximum

benefit of market volatility and to earn high returns by minimizing risks.
Through SIP mode investor can invest small sum of money in the market on
regular basis so that when market is down he can get more units(shares) and
when market is high is can get high returns. this is called as rupee cost
averaging.
It is very popular because it gives the benefits like
-habit of saving & investment
-investment at low money
-Low risk
-Good returns
-indirect investment and advantage of stock market

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SIP helps accumulate decent wealth if hold for longer duration.
 People say, it carries 100% investment risk if it is done in equity market. But
do not get disheartened. Historically, equity has been the best asset class of
investment with highest returns. Stocks has been the biggest wealth creator
for many investors.
For beginners and conservative investors, SIP is the best mode of

investment available. It is the best investment with high returns and almost
zero risk.
I will tell you why. In SIP, since, investment is made in installments you will get the
following benefits.
Your investment cost will get averaged. For example, let us assume that
you start your SIP of Rs.5000/- or Rs.500/- per month when the market is at
11,000 level. Next month when you are investing 2nd installment, the
market may be at 10800 level and in third month let us assume the market
to be at 11200 and in fourth month market to be at 10500 and in fifth month
it is at 10200. Then your investment will be at an average level of 10740.
You will be following a disciplined way of savings.
You are free from concerns of the volatility in the market and many more.
 Start Early , Invest regularly , Invest for Long term, Invest in right
assets,
In such a scenario, an ‘Equity SIP’ concept may bring in much needed
discipline among small investors to invest regularly in equities and not
to invest lump sum in high risk stocks when markets are on an all time
high.
 Duration
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Historically, the spread of returns on equity markets has been like the below:
Investing Period Average Return Variation of return from
avg.
1 Year 18% ± 34%
3 Year 13% ± 16%
5 Year 13% ± 13%
7 Year 13% ± 10%
10 Year 13% ± 9%
1 2Year 13% ± 8%
1 4Year 12% ± 7%
What the above means is that if you were to have a holding period of say 10
years, then your return would be between 13+9 = 22% p.a. and 13–9 = 4%
p.a. for nearly 70% of the cases (more technically, at 1 sigma, 68%
confidence).
Risk is however related to holding period and usually, the longer the holding
period, the lower the risk.
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To compare the performances of selected Equity based SIP
mutual fund schemes.
Report as on: 09-Aug-2018
Compounded Annualised (Return in %)

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Five years data i,e from 2013-2018
Reliance Large Cap Fund - Growth
Table 1:
Schemes Category (Large Cap Fund)

Reliance Large Cap Fund – Growth
NAV (9-Aug-2018) 33.9568 Years Returns Rank
Launch Date 08-Aug-07 1 12.955 7
Corpus (in Crores) 10897.825 ( 31-Jul-2018 ) 2 16.749 2
Since Inception 11.742 3 10.374 7
Since Inception Rank 18 5 21.769 1
Table 2:
Years Beta Standard deviation Sharpe Ratio

1 0.9727 2.6125 0.0676
2 0.9812 2.3053 0.1524
3 1.0429 4.9407 0.2875
5 1.02 4.34 0.09
Type of Scheme
An open ended equity scheme predominantly investing in large cap stocks
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Reliance Large Cap Fund is a predominantly investing in stocks of top 100
companies(Bench mark - S&P BSE 100 ) by full market capitalization. It invests in
emerging large cap companies which have an established business model with a
proven management track record and a potential to generate high cash flows.
Interpretation:
Table 1 gives the clear picture of scheme’s performance for 5years that is from
2014-2018,
 The returns of the scheme shows increasing trend apart for 3rd year (2016).
 It is clear that the annual compounded returns value range from 10.37% to
21.76% (2014-2018). The highest returns is observed in the year 2018 and
lowest in the year 2015.
 The fund was ranked 2nd in the 2nd year, which has come down to 7 th rank in
3rd year.
 Reliance Large Cap Fund ranks 18 since inception.
From the table 2 it is found that,
 Beta is the coefficient of mutual funds volatility. The beta ranges from (0.97
to 1.04) Highest risk is observed in 3rd year, and lowest being the 1 st year.
Beta value less than one indicates the risk being below average and beta
value more than 1 indicates above average risk.
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 Sharpe ratio ranges from 0.06 to 0.28, as the more Sharpe ratio results in the
high performance, highest performance is observed in the 3 rd year and lowest
in 1st year.
Reliance Vision – Growth
Table 1:
Schemes Category (Large & Mid Cap Fund)

Reliance Vision – Growth
Launch Date 08-Oct-95 1 -2.611 21
Table 2:

1 1.0035 2.8187 0.0355
2 1.018 2.534 0.1194
3 1.1677 5.6413 0.2655
5 1.05 4.69 0.00
Type of Scheme
An open ended equity scheme investing in both large cap and mid cap stock .
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Reliance Vision is an open ended equity scheme investing in both large cap and mid
cap stocks. The fund attempts to invest in high quality businesses who are market
leaders in their respective sectors, with a proven track record across market
conditions. The primary investment objective of the scheme is to achieve long- term
growth of capital by investment in equity and equity related securities through a
research based investment approach.
Interpretation:
2014-2018,
 The returns of the scheme shows fluctuating trend.

 It is clear that the annual compounded returns value range from -2.611% to
 The fund was ranked 20th in the 1 st year, which has gone up to 13th rank in
5th year.
 Beta is the coefficient of mutual funds volatility. The beta ranges from
(1.0035 to 1.1677) Highest risk is observed in 3rd year, and lowest being the
1st year. Beta value less than one indicates the risk being below average and
beta value more than 1 indicates above average risk.
in 5th year.
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Reliance Small Cap Fund – Growth
Table 1:
Schemes Category (Small Cap Fund)

Reliance Small Cap Fund – Growth
Launch Date 16-Sep-10 1 15.424 3
Table 2:

1 0.7884 2.7178 0.1153
2 0.9085 2.6718 0.2116
3 1.0095 6.6620 0.4410
5 0.97 5.68 0.17
Type of Scheme
An open ended Equity Scheme predominantly investing in small cap stocks
The fund attempts to generate relatively better risk adjusted returns by focusing on
the smaller capitalization companies. Small cap stocks, for the purpose of the fund
are defined as stocks whose market capitalization is below top 250
companies(Bench mark - S&P BSE SmallCap) in terms of full market
capitalization. The fund focuses on identifying good growth businesses with
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reasonable size, quality management and rational valuation. The investment
approach adopts prudent risk management measures like margin of safety and
diversification across sectors & stocks with a view to generate relatively better risk
adjusted performance over a period of time.
The primary investment objective of the scheme is to generate long term capital
appreciation by investing predominantly in equity and equity related instruments of
small cap companies and the secondary objective is to generate consistent returns by
investing in debt and money market securities.
Interpretation:
2014-2018,
 The returns of the scheme shows increasing trend apart for 3rd year (2016-
2017).
 The fund was ranked 3rd in the 2nd year, which has come down to 4 th rank in
3rd year.
 Beta is the coefficient of mutual funds volatility. The beta ranges from
(0.7884 to 1.0095) Highest risk is observed in 3rd year, and lowest being the
1st year. Beta value less than one indicates the risk being below average and
beta value more than 1 indicates above average risk.
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in 1st year.
Reliance Growth – Growth
Table 1:
Schemes Category (Mid Cap Fund)

Reliance Growth – Growth
NAV (9-Aug-2018) 1119.8927 Years Returns
Launch Date 08-Oct-95 1 6.835
Corpus (in Crores) 6830.421 ( 31-Jul-2018 ) 2 13.083
Since Inception 22.934 3 9.058
5 22.816
Table 2:

1 0.9502 2.7246 0.0544
2 0.9733 2.4954 0.1456
3 1.0078 5.3109 0.3290
5 0.96 4.80 0.06
Type of Scheme
Mid Cap Fund - An open ended equity scheme predominantly investing in mid cap
stocks
The fund focuses on identifying potential market leaders at an early stage with a
view to create long term alpha. Investment Objective: The primary investment
objective of the Scheme is to achieve long-term growth of capital by investment in
equity and equity related securities through a research based investment approach.
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The above table 1 gives the clear picture like when scheme has launched and how
the scheme performance was taken for 5years that is from 2014-2018, where in the
1st year the returns low as compare to other years, then in the 2year it performed
well, then in 3year again went down where the return is low because of the market
volatility and the portfolio performance, but in the 5 th year the market performed
well so there was high returns compare to other years.
Interpretation:
2014-2018,
 The returns of the scheme shows increasing trend apart for 1st year (2014).
in 1st year.
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Reliance Value Fund – Growth
Table 1:
Schemes Category (Value Fund)

Reliance Value Fund – Growth
Launch Date 08-Jun-05 1 12.595 3
Table 2:

1 0.9406 2.7195 0.0498
2 0.9657 2.513 0.1437
3 1.0905 5.4860 0.2755
5 0.62 5.03 0.06
Type of Scheme
An open ended Equity Scheme following a value investment strategy
Value investment strategy with an aim to participate in investment opportunities

across all sectors and market capitalization. The primary investment objective of
this scheme is to seek capital appreciation and/or to generate consistent returns by
actively investing in equity/ equity related securities predominantly
into value stocks. However there can be no assurance that the investment objective
of the Scheme will be realized.
Interpretation:
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2014-2018,
 The fund was ranked 7th in the 2nd year, which has come down to 9th rank in
3rd year.
to 1.09) Highest risk is observed in 3rd year, and lowest being the 5 th year.
in 1st year.
Reliance Equity Hybrid Fund – Growth
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Table 1:
Schemes Category (Aggressive Hybrid Fund)

Reliance Equity Hybrid Fund – Growth
Launch Date 08-Jun-05 1 7.409 12
Table 2:

1 0.881 3.7592 -0.0013
2 1.0635 1.8047 0.1556
3 1.2091 4.0005 0.3257
5 1.15 3.23 0.12
Type of Scheme
An open ended hybrid scheme investing predominantly in equity and equity related
instruments
Reliance Equity Hybrid Fund endeavors to generate relatively better risk adjusted
returns by investing in a combination of Equities and Fixed Income instruments. The
fixed income strategy is focused on generating higher accrual through investments
in high quality instruments with a moderate duration. The primary investment
objective of this option is to generate consistent return and appreciation of capital by
investing in a mix of securities comprising of equity, equity related instruments and
fixed income instruments.
Interpretation:
2014-2018,
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 The fund was ranked 7th in the 2nd year, which has come up to 5 th rank in 3rd
year, and ranked 1st in 5th year.
 Sharpe ratio ranges from -0.0013 to 0.3257, as the more Sharpe ratio results
in the high performance, highest performance is observed in the 3rd year and
lowest in 1st year.
Reliance Focused Equity Fund – Growth
Table 1:
Schemes Category (Focused Fund)

Reliance Focused Equity Fund – Growth
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Launch Date 26-Dec-06 1 10.078 9
Table 2:

1 0.9697 2.707 0.0603
2 0.9837 2.393 0.1417
3 0.9845 4.6631 0.2343
Type of Scheme
An open ended Multi Cap Equity Scheme investing in maximum 30 stocks
Reliance Focused Equity Fund is a multi cap fund which endeavors to invest in an
active and concentrated portfolio of up to 30 stocks across market capitalization.
The fund adopts a combination of top-down and bottom-up investment approach to
identify sector and stock weightage in the portfolio. The portfolio is well diversified
across stocks & themes.
Interpretation:
2014-2018,
 The returns of the scheme shows increasing trend apart for 3 rd year (2016-
2017).
 The fund was ranked 7th in the 2nd year, which was same in 3rd year and
ranked 1st in 5th year.
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value more than 1 indicates above average risk. Here it is observed that beta
values are at the same range.
in 1st year.
Reliance Multi Cap Fund – Growth
Table 1:
Schemes Category (Multi Cap Fund)

Reliance Multi Cap Fund – Growth
Launch Date 28-Mar-05 1 10.861 14
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Table 2:

1 0.869 2.4791 0.0884
2 0.8598 2.2224 0.1636
3 0.9997 5.1389 0.2818
5 1.03 4.56 0.02
Type of Scheme
An open ended equity scheme investing across large cap, mid cap, small cap stocks
The primary investment objective of the scheme is to seek to generate capital

appreciation & provide long term growth opportunities by investing in a portfolio
constituted of equity securities & equity related securities and the secondary
objective is to generate consistent returns by investing in debt and money market.
Interpretation:
2014-2018,
 The fund was ranked 18th in the 2nd year, which has come down to 23th rank
in 3rd year.
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to 1.03) Highest risk is observed in 5th year, and lowest being the 2nd year.
in 5th year.
Reliance Arbitrage Fund – Growth
Table 1:
Schemes Category (Arbitrage Fund)

Reliance Arbitrage Fund – Growth
Launch Date 14-Oct-10 1 0.87 13
Since Inception -19.452 3 5.904 3
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Table 2:

1 0.1998 0.1613 0.0885
2 0.2292 0.1411 0.218
3 0.6690 0.2498 0.3603
5 0.57 0.13 -0.10
Type of Scheme
An open ended scheme investing in arbitrage opportunities
A conservative arbitrage fund that aims to generate income through arbitrage

opportunities arising out of pricing mismatch in a security between cash and
derivative segment and with derivatives segment along with investments in debt
securities and money market instruments.
Interpretation:
2014-2018,
 The fund was ranked 3rd in the 3rd year, which has was same in 5th year.
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 Sharpe ratio ranges from -0.10 to 0.36, as the more Sharpe ratio results in the
in 5th year.
Reliance Tax Saver (ELSS) Fund – Growth
Table 1:
Schemes Category (ELSS)

Reliance Tax Saver (ELSS) Fund – Growth
Launch Date 21-Sep-05 1 -3.4 35
Table 2:

1 0.9326 2.8575 0.0966
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2 0.9984 2.7229 0.1605
3 1.2639 6.5314 0.3210
5 1.16 5.31 0.03
Type of Scheme
An open ended equity linked saving scheme with a statutory lock in of 3 years and
tax benefit.
Seeks to maintain balance between large cap companies and mid cap companies.
Invest in companies with potential of high growth prospects over medium term (2-3
years). Generally, the fund has two or three sector calls at a time. They are mostly
in-line of emerging market trends. Small percentage of portfolio is invested in
contrarian calls. Significant percent of outstanding equity of the scheme is invested
in high conviction mid-cap companies. Significant allocation/exposure is taken in
Multinational Companies (MNC’s). Attempt to have a balanced portfolio on a
macro basis, allocating to themes like Domestic, Consumption & Defensive.
Interpretation:
2014-2018,
 It is clear that the annual compounded returns value range from -3.4% to
 The fund was ranked 29th in the 3th year, which has went come up to 3rd
rank in 5th year.
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in 5th year.
Reliance Balanced Advantage Fund – Growth
Table 1:
Schemes Category (Balanced Advantage Fund)

Reliance Balanced Advantage Fund – Growth
Launch Date 15-Nov-04 1 5.405 12
Table 2:

1 0.9236 2.4911 0.0607
2 0.9598 2.2512 0.1376
3 0.9895 4.6119 0.2052
5 1.40 4.00 0.04
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Type of Scheme
An Open Ended Dynamic Asset Allocation Fund
Reliance Balanced Advantage Fund, Objective: The scheme seeks to capitalize on

the potential upside in equity markets while attempting to limit the downside by
dynamically managing the portfolio through investment in equity & equity related
instruments and active use of debt, money market instruments and derivatives.
Interpretation:
2014-2018,
 The fund was ranked 5th in the 2nd year, which has come down to 9th rank in
3rd year.
to 1.40) Highest risk is observed in 5th year, and lowest being the 1st year.
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in 5th year.
Ranking of schemes
Schemes Sharpe Ratio Ranks
2
Reliance Small Cap Fund – Growth 0.17
1
Reliance Focused Equity Fund – Growth 0.23
7
Reliance Tax Saver (ELSS) Fund – Growth 0.03
5
Reliance Growth – Growth 0.06
5
Reliance Value Fund – Growth 0.06
4
Reliance Large Cap Fund – Growth 0.09
8
Reliance Multi Cap Fund – Growth 0.02
3
Reliance Equity Hybrid Fund – Growth 0.12
9
Reliance Vision – Growth 0
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6
Reliance Balanced Advantage Fund – Growth 0.04
10
Reliance Arbitrage Fund – Growth -0.1
From the above Sharpe ratio there the top 3 ranking schemes are
1. Reliance Focused Equity Fund – Growth

2. Reliance Small Cap Fund – Growth
3. Reliance Equity Hybrid Fund – Growth
Observation and Findings
 SIP is the best mode of investment available. It is the best investment with
high returns and almost zero risk.
 Long term returns of large cap equity growth fund schemes are
comparatively less than small & mid cap, Balanced Advantage Fund &
equity sector fund schemes. But this schemes risk is low as compare to small
& mid cap, Balanced Advantage Fund, equity sector fund schemes.
 As per the analysis of 5years performance of Equity based SIP Mutual Funds
some are giving best returns like Reliance Small Cap Fund, Reliance focused
equity fund, Reliance Tax Saver(ELSS) Fund, Reliance Mid Cap Fund,
Reliance Large Cap Fund.
 Investors those who don’t want to take big risk they can invest their money
into large cap equity schemes, as given in Large Cap Fund Table 2.
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 This research shows that long term return of Mid Cap & Focused Equity
Funds, some schemes are giving high returns as compared to other equity
based mutual fund.
 The investor who cannot offered lump sum amount of investment they can
start their long term investment in Equity based Mutual fund schemes
through SIP and get a good amount of returns.
Suggestion
 Should conduct a training to the distributors, Some people prefer to invest a
lump sum when they have the money available perhaps from a bonus at
work.
 SIP and Lump sum are two techniques to invest money in mutual fund.
People should not confuse about them.
 Agents are the main person who influences the investment decision.
Company can hire fresh graduates train them and sponsor for the AMFI
exam just like insurance companies who conduct IRDA training. This will
increase the feet on street for the mutual fund companies.
 Holding a seminar and presentations or Investors meet in the stock broking

firm help the investors to remove any misconception regarding the Mutual
Fund and this will create awareness of Mutual fund.
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 Company has to provide timely services to its customers so that it can
compete with its competitors like Franklin Templeton.
Conclusion
After the analysis made on Equity based Systematic

Investment Plan Schemes of Reliance Mutual Fund I can conclude that as per the
analysis of 5years performance of Equity based SIP Mutual Funds some are
giving best returns like Reliance Small Cap Fund, Reliance focused equity fund,
Reliance Tax Saver(ELSS) Fund, Reliance Mid Cap Fund, Reliance Large Cap
Fund, are doing extremely well in the market satisfying the customer wants of
high returns , it is quite clear that the equity based mutual fund schemes have lot
of potential to give high returns but investors should be aware about the Schemes
those are really operating & giving high returns.
Bibliography :
 Reliance Fact Sheets

 Reliance Sales Kit
Websites
www.reliancemutual.com
www.valueresearch.com
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ANNEXURE
Page | 79
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FAQs (Frequently asked Questions)
 Why Choose Systematic Investment Plan?
If you are short on cash to make a lump sum investment or if you want to reduce
your risks you can choose an SIP. Also, an SIP would bring in discipline, which
helps you to make logical decisions instead of succumbing to greedy impulses.
 When is the best time to invest in SIP?
There is nothing like a good timing when it comes to investments.It’s more about
what you need from that investment. In an SIP, you can automate your transfers, and
be hassle-free about the date in a particular month.
 Should I Choose SIP for Long term wealth?
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Any investment period can be chosen by a customer. But, it has been proven that a
long term investment has been rewarded with greater returns as compared to short
term investment.
 How much should I invest in a mutual fund through SIP?
In an SIP investment you can start with as low as Rs.500 as your investment and you
can go up to whatever limit you want to.
 Can I miss an SIP payment?
Yes, you can miss your payment and still your account wouldn’t be deactivated.
There are options to pause your payments in various mutual funds.
 Are all investments through SIP have tax benefits?
Only investments in ELSS through SIP have tax exemption up to Rs. 1.5 lakh PA
under Section 80C.
 Is SIP safe?
An SIP is just a mode of investment. The safe/risky component is related to the

investment which you choose.
 How do I start my SIP investment?
Just choose the investment in which you want to invest and you are ready to start.
One primary thing is that you have to fill your KYC documents before investing.
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 How to shorten SIP duration?
You can send a written application or ask for an request online to the fund
management company before the next SIP is scheduled. However, you should have
completed the minimum investment period, which is generally 6 months.
 How can I extend my SIP duration?
At the end of the SIP term, you will get an option for renewal of your investment.
You can fill out that form and then choose the desired duration of investment.
FAQs – Reliance SIP insure
Q. What is Reliance SIP insure and its objective?

A. With a view to encourage individual investors to save and invest regularly
through
Systematic Investment Plan (SIP) and help investors to achieve their financial
objectives,
‘Reliance SIP Insure’ is provided as an add-on feature of life insurance cover under
Group Term Insurance to individual investors opting for the same, without any extra
cost to the investors. (The cost of the insurance premia will be borne by AMC).
Q. Which investors are eligible to invest in Reliance SIP insure?
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A. Only individual investors whose entry age is 18 years & more and less than 51
years at
the time of investment are eligible to invest in Reliance SIP insure. It is mandatory
for
investor to provide the date of birth in the application form.
Q. Which are the schemes offering the Reliance SIP insure facility?
A. Reliance SIP insure facility is available in below schemes:
a) Reliance Growth Fund.
b) Reliance Vision Fund.
c) Reliance Tax Saver (ELSS) Fund.
d) Reliance Retirement Fund - Wealth Creation Scheme.
e) Reliance Retirement Fund - Income Generation scheme.
f) Reliance Large Cap Fund.
g) Reliance Value Fund.
h) Reliance Multi Cap Fund.
i) Reliance Small Cap Fund.
j) Reliance Banking Fund.
k) Reliance Pharma Fund.
l) Reliance Power & Infra Fund.
m) Reliance Consumption Fund.
n) Reliance Focused Equity Fund.
o) Reliance Balanced Advantage Fund.
p) Reliance Equity Hybrid Fund.
q) Reliance Equity Savings Fund.
r) Reliance Hybrid Bond Fund.
Q. What is the minimum investment amount under Reliance SIP Insure?

A. Monthly - Rs.500 per month & in multiples of Re 1^ thereafter
Quarterly - Rs.1,500 per quarter & in multiples of Re 1^ thereafter
Yearly - Rs.6,000 per year & in multiples of Re 1^ thereafter
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^In Reliance Tax Saver (ELSS) Fund & Reliance Retirement Fund minimum
installment
shall be in multiples of Rs 500 thereafter.
Q. What is the minimum tenure that for Reliance SIP Insure?

A. Given below is the minimum tenure for different frequencies:
Monthly – 36 installments
Quarterly – 12 installments
Yearly – 3 installments
Q. What is the maximum tenure that the investor can invest in Reliance SIP
Insure?
A. There is no upper limit on the SIP Insure tenure. The investor can opt for
perpetual SIP
also.
Q. Will the insurance cover be valid for entire life of the investor in case of
perpetual SIP?
A. No. If the investor has opted for perpetual SIP, the insurance cover will be valid
only
upto completion of 55yrs of age, after which the SIP installments will be treated as
normal SIP and the insurance cover ceases.
Q. What will be the maximum insurance cover under Reliance SIP insure
facility?
A. Maximum insurance cover under Reliance SIP Insure shall be Rs.50 lakhs per
investor
across all schemes / plans and folios across all frequencies/options.
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Given below are the details of Maximum Sum Assured applicable for registrations
received under Reliance SIP insure Facility:
Registrations received before October 15, 2015: Rs.10,00,000/-
Registrations received on or after October 15, 2015 to May 31, 2018: Rs.21,00,000/-
Registrations received on or after May 31, 2018: Rs.50,00,000/-
For e.g.
Type of Registrations Registrations Registrations Max Sum

Investors done before done after 15th done on or Assured
15th October 2015 after Applicable
October 2015 but before 1st 1st June 2018 (amt in lakhs)
June 2018
Existing Yes No No 10
Investors
Existing No Yes No 21
Investors
Existing Yes Yes No 21
Investors
Existing Yes No Yes 50
Investors
Existing No Yes Yes 50
Investors
Existing Yes Yes Yes 50
Investors
New Investors No No Yes 50
# Example on Max Sum Assured Calculation for more details (amount in lakhs)
Sum Assured Sum Assured Sum Assured D=(A+B+C) Sum Assured

for for for Rs. Eligibility
old SIP insure old SIP insure new SIP insure
registration (A) registration (B) registration (C)
Rs. (Max Rs. (Max Cover Rs. (Max Cover
Cover - - -
10 lakhs) 21 lakhs) 50 lakhs)
Page | 85
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10 4 0 14 14
10 20 0 30 21
7 20 0 27 21
7 13 0 20 20
10 4 25 39 39
10 20 30 60 50
7 20 28 55 50
7 13 29 49 49
Q. How will the sum assured be calculated for registrations received under Reliance
SIP
insure facility?
A. The Life Insurance Cover under Reliance SIP Insure facility for SIP insure
registrations
received on or after 15th Oct’15, is as mentioned below:
• Year 1 – 10 Times the equivalent# Monthly SIP Installment.
• Year 2 – 50 Times the equivalent# Monthly SIP Installment.
• Year 3 onwards – 120 Times the equivalent# Monthly SIP Installment.
The above applies to all the frequencies/ options.

Limits above are subject to maximum coverage of Rs. 50 lakhs per Life Insured.
Since the limit is per investor, all his existing investments in Reliance SIP Insure
across all
eligible schemes will be considered for calculating the maximum sum assured limit.
For registrations received prior to 15th Oct’15, maximum coverage is Rs. 10 Lakhs
per
Life Insured. For registrations received between 15th Oct’15 and 31st May’18,
Page | 86
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maximum coverage is Rs. 21 Lakhs per Life Insured. Kindly refer the terms and
conditions applicable at the time of registration.
# Illustration for Calculation of Life Insurance Cover

Suppose a person has enrolled for SIP under quarterly frequency with Min
installment
amount of Rs 3000 per quarter for a period of 3 years and also for yearly frequency
with
Min installment amount of Rs 12000 per year for a period of 3 years
Following is the way he should calculate the eligible life insurance cover for
different
Years
Step 1 – Before he calculates as per the formula, he should find out the equivalent
monthly installment for his SIP amount.
For Quarterly frequency,, , it is 3000/3 = Rs 1000 becomes his equivalent monthly
SIP
installment
For Yearly frequency, it is 12000/12 = Rs 1000 becomes his equivalent monthly SIP
Installment
Step 2 – Now he can refer to the formula for calculation of eligible insurance cover
(Under quarterly as well as yearly frequencies each) which is as follows;
The Life Insurance Cover under ‘Reliance SIP Insure’ facility will be as per the
following
Clause;
Year 1 – 10 Times the equivalent # Monthly SIP Installment = 10 * 1000 = Rs
10,000
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Year 2 – 50 Times the equivalent # Monthly SIP Installment = 50* 1000 = Rs
50,000
Year 3 onwards – 120 Times the equivalent # Monthly SIP Installment = 120 * 1000
=
Rs.1,20,000
Q. What are the scenarios under which the insurance cover would cease to
exist?
A. The insurance cover shall cease upon occurrence of any of the following:
a. At the end of mandated Reliance SIP Insure tenure. i.e., upon completion of
payment of all the installments as registered or till attaining 55 years of age
whichever is earlier.
b. Partial or Full Redemption / switch-out^ of units purchased under Reliance SIP

Insure before completion of the mandated SIP tenure / installments or till attaining
55 years of age, whichever is earlier.
c. In case of default in payment of three consecutive monthly / quarterly / yearly SIP

Installments or five separate occasions of such defaults during the tenure of the SIP
Duration chosen or till attaining 55 years of age, whichever is earlier.
d. Discontinuation of SIP installments before completing the minimum period of

Contribution (Monthly – 36 installments; Quarterly – 12 installments; Yearly – 3
Installments) of the opted SIP tenure. However, for SIP insure registrations
received prior to October 15, 2015, discontinuation of SIP installments midway
(before or after completion of 3 years) would lead to cessation of insurance
cover.
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^ Switch out / Auto transfer between Reliance Retirement Fund Wealth Creation
Scheme to Reliance Retirement Fund Income Generation Scheme or vice a versa
will not
be considered for Cessation of Insurance Cover.
Q. What will be the sum assured in case the investor discontinues SIP insure
after
completion of minimum period of contribution (Monthly – 36 installments;
Quarterly
– 12 installments; Yearly – 3 installments)?
A. In such a scenario, sum assured will be equivalent to the fund value* subject to
maximum of 120 times the Monthly SIP installment or max sum assured limit i.e. 50
Lakhs whichever is lower.
The insurance cover will be continued till the committed tenure is completed (in
case of
a specific tenure opted by the investor) or till 55 yrs of age (in case of perpetual SIP
option).
* Fund Value = Value of units, accumulated under SIP Insure, at the last
successfully
executed SIP date seen from the day on which SIP is discontinued.
Q. What are the different modes of payment available under Reliance SIP
insure?
A. One Time Bank Mandate, Direct Debit & ECS (Post Dated Cheques shall not be
accepted)
Q. Is nomination mandatory in Reliance SIP Insure?

A. Yes. Nomination is mandatory and following fields need to be provided
mandatorily:
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1. Name of the Nominee.
2. Nominee Date of Birth (Guardian details if the nominee is minor).
3. Relationship with investor (Mandatory for all nominees).
4. Allocation Ratio
Q. Can investor change the bank details for Reliance SIP Insure during the
tenure?
A. Yes, the investor can change the bank details for Reliance SIP Insure during the
tenure.
Q. Who can submit the claim request in case of death of the insured who has
opted for sip insure?
A. The registered nominee/ second holder (wherever the nominee is not registered)
in the
folio can submit the claim request in case of death of the insured who has opted for
SIP
Insure.
Q. Where does the nominee need to submit the sip insure claim documents in
case of death of the insured?
A. In case of death of the insured, the nominee needs to submit the claim documents
to
the address stated below:
Kiran Kumar
Reliance Nippon Life Insurance Co. Ltd
Reliance Centre, 5th floor, South Wing
Prabhat Colony, Santacruz (W)
Mumbai – 400055
Q. How many days does it take for the sip insure claim to be processed in case
of death of the insured?
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A. It takes 45 calendar days for the SIP Insure claim to be processed from the receipt
of
claim request by Reliance Life Insurance Company in case of death of the insured.
Q. When will the insurance cover commence under Reliance SIP insure?
A. The Insurance cover shall commence after “waiting period” of 45 days from the
commencement of SIP installments. However, the waiting period will not be
applicable
in respect of accidental deaths.
Q. What are the exclusions for insurance cover in case of Reliance SIP insure?
A. No insurance cover shall be admissible in respect of death of the SIP-Insure
unitholder
(the insured person) on account of:
 Death due to suicide shall be dealt with as per IRDAI Regulations.

 Death within 45 days from the commencement of SIP installments except for
death
due to accident.
 Death due to pre-existing illness, disease(s) or accident which has occurred
prior to the start of cover.
Mutual Fund investments are subject to market risks, read all scheme related
documents carefully.
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EXECUTIVE SUMMARY

Now a day, there is a tough competition in financial avenues due to increase in

Reliance Mutual Fund is one of the top-performing mutual funds in India.

HISTORY OF MUTUAL FUNDS:

It resembled the US fund model in basic structure, providing "the investor of

THE MUTUAL FUND INDUSTRY IN INDIA:

Entry of Public Sector Funds:

Phase III (1993-96):

Growth and SEBI Regulation:

Emergence of a Large and Uniform Industry:

Phase VI (From 2004 Onwards):

Consolidation and Growth:

 Low Transaction Costs:

 Availability of Various Schemes:

Management of a portfolio involves continuous monitoring of various securities and

7y6iolFeatures of a MF scheme such as regular investment plan, regular withdrawal

STRUCTURE OF MUTUAL FUNDS IN INDIA:

Asset Management Company:

Disadvantages of Mutual Funds:

Although diversification is one of the keys to successful investing, many

 Cash, Cash and More Cash:

Mutual funds provide investors with professional management; however, it comes at

Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and

Close-ended Fund/ Scheme

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced

Income / Debt Oriented Scheme

These funds invest exclusively in government securities. Government securities

Sector specific funds/schemes

Tax Saving Schemes

Load or no-load Fund

Reliance Mutual Fund (RMF) takes pride in being considered as one of

RMF was established to launch a variety of schemes under which the

The main objectives of RMF are:

1. To carry on the activity of a mutual fund as may be permitted at law, and

VISION AND MISSION STATEMENT:

To be a globally respected wealth creator with an emphasis on customer care and a

To create and nurture a world-class, high performance environment aimed at

DIFFERENT TYPES OF MUTUAL FUND OFFERED BY

 Reliance Large Cap fund:

 Reliance Tax Saver (ELSS) Fund :

 Reliance Vision Fund :

 Reliance Growth Fund :

 Reliance Small Cap Fund :

 Reliance Multi Cap :

 Reliance Balanced Advantage Fund :

 Reliance Money Market Fund:

 Reliance Liquid Fund :

 Reliance Ultra Short Duration Fund :

 Reliance Floating Rate Fund :

An open ended debt scheme predominantly investing in floating rate

Sector Specific Schemes

Exchange Traded Fund:

Fixed Maturity Plans (FMPs):

Mutual Fund Reliance Mutual Fund

RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED

Reliance Mutual Fund – Organization Structure

Reliance Capital Limited

Reliance Capital Trustee Co. Limited

Reliance Nippon Life Asset Management Limited