Reliance Mutual Fund (RMF) takes pride in being one of India's top mutual funds. It comes under the umbrella of The Reliance Anil Dhirubhai Ambani (ADA) group. Under the Indian Trusts Act, 1882, it was founded as a trust, Reliance Capital Limited (RCL) was its Sponsor/Settler and Reliance Capital Trustee Co. Limited (RCTC) was its Trustee.
It is growing at a fast speed and has a presence in more than 160 cities across India. RMF provides the mutual fund investors with an all-around product portfolio that helps them to meet various investing needs. In order to increase its value, Reliance Mutual Fund strives to launch innovative products in the market and provide the best customer care support.
On June 30, 1995, Reliance Mutual Fund registered itself with the SEBI (Securities & Exchange Board of India) and its registration number is MF/022/95/1. Reliance Capital Mutual Fund was renamed as Reliance Mutual Fund w.e.f March 11, 2004, vide, Securities & Exchange Board of India’s letter no. IMD/PSP/4958/2004, dated March 11, 2004.
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.
As accounted on December 31, 2016, its Average Assets Under Management (AAUM) is worth Rs. 1,95,845 Crores for the period of October 20 16 to December 2016 (Quarter Q3).
The Key Features of Reliance Mutual Fund
Reliance Mutual Fund helps investors to fetch great returns on their investments. The key features of Reliance Mutual Funds are as follows:
- It has a rich distribution network all over the country.
- It is a pioneer in the mutual fund industry.
- RMF is the mutual fund expert having more than 20 years experience.
- It provides excellent customer service.
- It offers tax benefit(s) on a wide range of investment instruments.
Different Types of Reliance Mutual Fund
The following range of mutual fund products is offered by RMF.
1. Debt Funds
These funds act as a saving instrument that provides medium returns with enhanced safety and reliability as compared to equity funds.
The following debt fund schemes come under this category:
- Ultra-Short Term - This is a fixed-income instrument that has short-term maturity.
- GILT - These are comparatively safe bonds that make investments in government securities.
- Short-Term - Generally, this fund is short-term, which makes investments in less risky and superior quality bonds.
- Long-Term - Mostly, these funds hit maturity in the time span of 10 years.
- MIP - It is the abbreviation for Monthly Income Plan. A MIP offers stable monthly income, which is ideal for the people who are retired or are retiring soon.
- Dynamic - It provides investors with the flexibility of switching in between short and long-term investment instruments, depending upon fund managers’ outlook and of course, the market situation.
- Equity Funds
Equity Funds are invested in stocks or equities in the mutual fund market. The risk factor involved in it is medium to high level, which fetches dynamic return on investments.
2. Diversified Large-Cap Funds
These funds let you spread your total investment across various securities to neutralize the risk factor present.
It is the abbreviation for Exchange-Traded Fund. These funds make investments in various securities, being traded during the day, which is different from a mutual fund.
4. Diversified Multi-Cap Funds
DMC fund makes an investment in diverse securities disregarding their market capitalization, such as investing in small-cap as well as large-cap investment instruments together.
5. Sector Funds
These funds are sector-specific and invest in versatile sectors like oil, finance, infrastructure, and so on.
6. Diversified Small-Cap and Mid -Cap Funds
Alike diversified multi-cap, investment are made in small and mid instruments.
7. Tax-Saving Funds
These are also known as Equity-Linked Saving Scheme (ELSS). Its USP is that it helps to save tax under Section 88 of the Income Tax Act.
8. Index Funds
These are the funds formulated to keep a track of a particular index; for Instance, S&P 500, Sensex.
9. Arbitrage Funds
These funds make the best use of the price (difference of different securities) available in the mutual fund market, with simultaneous purchase of low-priced securities from a market, and then selling them off in another market by quoting a relatively higher price of the same securities.
10. Balanced Funds
These funds have almost an equal amount of debt as well as equity instruments.
11. International Funds
These equity funds make investments in international securities.
12. Liquid Funds
Generally, these funds are selected as a supplement for short-term funds. The investments are made in less-risky money markets. For these funds, the lock-in period varies from nil to minimal.
13. Gold Funds
These funds make investments in gold or traded stocks of gold-mining companies. These funds offer investors the opportunity to purchase pure gold at lower prices and sell them in the market at linked prices, as any issue of theft is offset.
Reliance Mutual Funds - FAQs
Q1) Which Reliance Mutual fund scheme should I invest into?
Reliance Mutual Funds is one of the top-performing AMCs in India. The company is one the fastest growing AMCs and has a presence in 160 plus cities across the country. Below enlisted are some of the top performing mutual fund schemes:
- Reliance Small Cap Fund
This is a small-cap fund wherein the majority of the investment is made in small-cap stocks. This fund is high on the risk factor and therefore is suitable for the individuals who don’t have problems taking risks.
Reliance Small Cap Fund works best if the investments in this fund are made for a longer duration of time such as for more than 3 years or so.
Under this scheme, around 90% of the investment is made in equity and the remaining part is kept as cash for the liquefying purpose.
- Reliance Low Duration Fund
Reliance Low Duration Fund was formerly known as Reliance Money Manager Fund. It is an open-ended debt scheme which invests in debt & money-market instruments for a low duration. Under this scheme, the Macaulay duration of the investment portfolio is kept between 6 to 12 months.
- Reliance Liquid Fund
Reliance Liquid Fund is an open-ended liquefying scheme and its primary objective is to help the investors get maximum returns (at moderate risk level) and high liquidity by making investments in debt & money market instruments.
These schemes are shortlisted based on their NAVs (Net Asset Values) and their individual annualized returns. However, it’s always better to consult a mutual fund advisor before making any investment. Take your time to learn and educate yourself about mutual funds. Always try to invest in mutual fund schemes that are in sync with your investment horizon, financial goals and your risk profile.
Q2) How do I buy Reliance Mutual Fund plan online?
Reliance Mutual Funds offers different ways to make the online application convenient for its customers. You can use either of the below-enlisted procedures to complete your online transaction:
- Official Website:
You can invest through their official website: https://www.reliancemutual[dot]com/ any time, 24X7. The website is simple and easy to use where you can easily complete a host of transactions online.
- Mobile App:
You can download Reliance Mutual Fund mobile app to carry out your online transaction which is simple, safe and easy to use. Use the ‘Simply Save' option to invest in a single step at anytime & anywhere.
- Through Stock Exchange Platform:
You can also subscribe or redeem units of Reliance Mutual Fund through MFSS Platform (NSE) and BSE STAR Platform (BSE). You can purchase any number of units through these platforms and they will be credited to your DEMAT account.
Q3) What are the tax benefits of mutual funds?
ELSS (Equity-Linked Savings Schemes) work as an ideal tax saving instrument as it provides you with an easy option to avail tax benefits. It also gives you an opportunity to harness the potential benefits of investing in the equity market.
- Income tax benefit –
Your investments made under ELSS schemes are eligible for tax deduction u/s 80C of the Income Tax Act.
- Lower lock-in period –
ELSS funds offer the shortest lock-in period of 3 years as compared to the traditional investment products like NSC, PPF that are available u/s 80C of the Income tax Act.
- Tax-free capital Gains/Dividends –
During the investment period, dividends declared under an ELSS scheme are eligible for tax deductions. Also, profits earned on the sale of ELSS units are taken as long-term capital gains and therefore, are considered as tax-free.
Q4) Why should I invest in Reliance mutual fund scheme?
There are reasons why Reliance Mutual Fund (RMF) is one of the most preferred choices among millions of progressive investors when it comes to mutual fund houses in India. Below enlisted are top 4 reasons why investing with Reliance Mutual Fund is a smart decision:
Big brands like Reliance Nippon Life Asset Management Limited and international experts such as Nippon Life Insurance are the stakeholders for Reliance Mutual Fund (RMF.
- Robust Distribution Network:
Reliance Mutual Fund house has a presence in over 160 locations across the country. The fund house also serves at international destinations such as Mauritius, Singapore and the United Kingdom.
- Pioneering Trends:
RMF constantly focuses on providing simplified investment solutions to its investors. The company is among the first ones to launch a Gold Savings fund (An open-ended fund).
Your money is managed through a team of expert in-house fund managers who have rich experience in handling different asset classes & sectors.
Q5) Do all mutual funds have tax benefits?
No, all mutual funds are not eligible for tax benefits.