Reliance Mutual Fund

Reliance Mutual Fund

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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:

  1. It has a rich distribution network all over the country.
  2. It is a pioneer in the mutual fund industry.
  3. RMF is the mutual fund expert having more than 20 years experience.
  4. It provides excellent customer service.
  5. 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:

  1. Ultra-Short Term - This is a fixed-income instrument that has short-term maturity.
  2. GILT - These are comparatively safe bonds that make investments in government securities.
  3. Short-Term - Generally, this fund is short-term, which makes investments in less risky and superior quality bonds.
  4. Long-Term - Mostly, these funds hit maturity in the time span of 10 years.
  5. 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.
  6. 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.
  7. 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.

3.  ETF

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.