Systematic Investment Plan (SIP) is a process of investing in Mutual Funds. As a leading mutual fund service provider in the country, Reliance SIP offers investors to invest a fixed amount into the mutual fund scheme of their choice at a regular interval of time weekly, monthly, quarterly.
Reliance Mutual Fund also provides an option to the investors to start investing in different fund houses via Reliance SIP Investment (Systematic Investment Plan). As per the suitability and requirement of the investors, they can choose from the array fund options like equity fund, gold funds, debt funds and liquid funds to invest in.
Let’s take a look at some of the key benefits of investing in Reliance SIP.
Disciplined Saving: Disciplined saving is the key aspect of successful investments. Reliance SIP investment provides an opportunity for investors to invest a small amount regularly over a long-term period. A disciplined investment helps the investors to invest a small amount regularly so that they can accumulate wealth over a long period of time and can achieve future financial objectives.
Long-Term Gain : With the extra advantage of compounding and rupee cost averaging, SIP investment has the potential to provide higher returns on investment over a long-term period. With the benefit of the power of compounding the investors can stay invested in Reliance SIP scheme for a longer period.
Flexibility: It is advised to the investors to invest through SIP with a perspective of long-term. However, there is no compulsion to this. Reliance Mutual Fund Sip plans come with a minimum investment of 3 years. Thus, there is no compulsion regarding investment and the investors can redeem their money at any point of time after the completion of the lock-in period. Moreover, the investors can also choose flex SIP which allows them to decrease/increase the investment amount as per their financial situation and requirement.
Convenience : Systematic investment plan offers a simple and convenient mode of investment. One can start investing via SIP by issuing standing instruction to the bank and facilitate the process of auto debit from the bank account. The investors can complete the whole process of investment right from fund selection to redemption/scheduling through the online process in a very simple and hassle-free way.
Types of Reliance SIP Plans
As one of the top performing fund houses in the country, Reliance Mutual Fund AMC has been very open to the requirements of the investors. To cater to the investment needs of the investors; there are different types of SIP plans offered by the company. Let’s take a look at the top performing funds offered by Reliance Mutual Fund.
Reliance Small Cap Fund: Reliance small-cap fund offered by Reliance Mutual Fund has been continuously performing well in the market from the past 3-5 years. As a small-cap fund, the majority of the amount is invested in the small-cap stock. This fund option is best suitable for individuals who want to gain maximum return on investment and has a high-risk appetite. In order to gain profitable returns, it is advisable to invest in this fund option for a long-term (more than 3 years). In Reliance Small Cap Fund 90% of the fund is invested equity and equity related instruments and the rest 10% of the fund is invested in small-cap stocks.
Reliance Tax Saver Fund: This is specifically designed fund option in which the fund offers the dual benefit of investment cum tax benefit. The fund has greater exposure to mid-cap and small-co fund option. Under this fund option, the maximum investment is made in equity and equity related instruments. The investors can avail tax benefit up to a maximum investment of Rs1.5 lakh under section 80C of Income Tax Act 1961. This fund option is beneficial for investors who have a high-risk appetite and wants to gain higher returns on investment in over a long-term period.
Reliance Equity Hybrid Fund : This fund option offered by Reliance Mutual Fund was previously known as Reliance Regular Saving Fund. This is a lucrative fund option of investment for investors who want to accumulate wealth in long-term and has a medium risk appetite. This fund option is best suitable for individuals who have long-term financial goals and wants to plan for retirement. With a fund size of 11334 Crore, Reliance Equity Hybrid Fund offered 17.60% return in the past 5 years and 12.71% returns in past 3 years.
Reliance Large Cap Fund : Under this fund option around 84.6% of the fund’s portfolio is invested in the large-cap fund and the rest 15.4% of the fund portfolio is invested in mid-cap securities. The reliance large-cap fund generally focuses on growth by following the philosophy of practical valuation and chooses companies which provide 3-5% higher returns than the benchmark. This fund option is best suitable for individuals who have a high-risk appetite and wants to accumulate wealth over a long-term period.
Reliance Liquid Fund: This is an open-ended fund option offered by Reliance Mutual Fund which aims to generate maximum return on investment and high liquidity by making investment majorly in debt and money market funds. This fund option comes with a moderate risk and has a fund size of 21,747 crores. The fund offers an expense ratio of 0.15% and has been continuously performing well in the market over past 3-5 years.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Features of Reliance Mutual Fund SIP
Reliance SIP investment offered the benefit to invest in the market. Thus, one does not need to time the market. As SIP investment includes regular and fixed investment over a long-term period one can buy higher units when the market is low and lower units when the market is high.
Reliance SIP plan helps to achieve the long-term financial goal of an individual by making a disciplined investment over a long-term
Reliance Mutual Fund SIP offers a minimum investment limit of Rs.500 and there is no upper limit on the maximum investment. Moreover, the investors can also invest in one or more than one SIP scheme at the same time and can also decrease or increase the investment amount according to their own requirement and choice.
