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Reliance SMART STEP
Reliance SMART STEP - an enhanced Systematic Transfer Plan that is based on a scientific model, which aims to consolidate bull and bear cyclical trends of equity markets in one cycle. This model enables investors to invest more when the current market is positioned at lower level and invest less when current stock market is positioned at higher level. So, irrespective of market conditions, you stand to win with this flexible 'smart plan'.

Why invest through Systematic Transfer Plan (STP)?
Equity markets cannot be timed perfectly, specially emerging markets like ours. Thus, STP would act as an investment catalyst, aiming to derive the combined benefits of stability of debt along with power of equity at the same time.
STP involves the process of investing lump sum in a liquid/debt scheme which would give fairly stable returns and then transferring a fixed amount to an equity scheme in a regular fashion. Once the equity allocation is determined as per the total portfolio consideration, equity investment can be allocated in a disciplined manner through STP.This would enable the investor to achieve a buildup in their portfolio of equities with a low amount of risk along with relatively stable returns of debt in the interim time period.

Preamble to Reliance SMART STEP - An Enhanced Version of STP
  • Reliance SMART STEP is a special product feature which works on a proprietary scientific model, which adds intelligence to disciplined, long term and systematic investment habit.
  • The scientific model aims to integrate the cyclical trend of equity markets in one cycle, which also depicts the inter-relation of macro & micro economic factors.
  • The scientific model consolidates bull & bear phases in one cycle, which enables to portray the current positioning of the market.
  • Thus, Reliance SMART STEP works on a simple but smart & attractive concept of "INVEST MORE when the current stock market is positioned at lower levels, INVEST LESS when current stock market is positioned at higher levels.


Why Invest in Reliance SMART STEP
  • RMF is the first mutual fund house to launch such a special facility where in amount of each transfer from all liquid/debt schemes to equity schemes, would be determined on the basis of a logical & scientific model.
  • The scientific model captures intrinsic volatility in a technique which enables to buy more units with less investment, as compared to Normal STP, for longer period of investment.
  • Reinforces the proven fact that the optimum way of reaping benefits in any market cycle would be through a disciplined, regular and long term investment, along with the concept of low investment at higher levels and high investment at lower levels.
  • Through this new offering, RMF aims to empower the investor with the high-yielding returns of equity along with stable returns of debt, through a systematic investment linked to the market levels.

Historical Reference of Scientific Model



The scientific model has been tested since 1980. The above table and graph gives an illustration of various periods during which the scientific model has been tested and has given the values to be transferred at those BSE SENSEX levels. For illustration purpose, the periods are randomly selected which also depicts that the inherent volatility are captured by the model in a manner which aligns with the objective of Reliance SMART STEP .

Investment Process Flow
At the time of enrolment of the facility, the investor selects any one of the Transferor (Liquid/Debt) Scheme, any one of the Transferee (Equity) Scheme and one plan out of the 4 plans. The investment is made initially in any of the Transferor (Liquid/Debt) Schemes selected by the investor either in lump sum or SIP mode. The system would calculate the monthly amount to be transferred under the selected plan, 2 trading days before the transfer date (10th of every month), based on the scientific model. However actual amount shall be transferred from Transferor (Liquid/Debt) Scheme and invested in the Transferee (Equity) Scheme on 10th of every month. Incase 10th is a non - transaction day, the amount shall be transferred on next working day.

The 5 different plans, each with 3 transfer amounts are as follows:

Plan Low Medium High
Plan A Rs.500 Rs.1,000 Rs.1,500
Plan B Rs.1,500 Rs.3,000 Rs.4,500
Plan C Rs.8,000 Rs.12,000 Rs.16,000
Plan D Rs.15,000 Rs.22,500 Rs.30,000
Plan E* X 1.5X 2X

*X amount would be decided by the investor at the time of enrollment for Plan E of Reliance SMART STEP. The minimum investment amount of X in Plan E would be Rs.30,000 & in multiples of Rs.500 thereafter. Investors should clearly indicate plans as mentioned above. Please note that if no Plan is mentioned / indicated in the Application Form, Plan A shall be considered as default Plan.

Eligible Transferor (Liquid/Debt) and Transferee (Equity) Schemes

Transferor (Liquid/Debt) Schemes:
  • Reliance Floating Rate Fund
  • Reliance Liquidity Fund
  • Reliance Liquid Fund - Treasury Plan
  • Reliance Liquid Fund – Cash Plan
  • Reliance Medium Term Fund
  • Reliance Short Term Fund
  • Reliance Gilt Securities Fund
  • Reliance Monthly Income Plan
  • Reliance Money Manager Fund
  • Reliance Income Fund,
  • Reliance Regular Savings Fund - Debt Option

The list is subject to change.

Transferee (Equity) Schemes:
  • Reliance Growth Fund,
  • Reliance Vision Fund
  • Reliance Equity Opportunities Fund
  • Reliance Equity Fund
  • Reliance Equity Advantage Fund
  • Reliance Quant Plus Fund
  • Reliance Regular Savings Fund - Equity option
  • Reliance Regular Savings Fund - Balanced option
  • Reliance Natural Resources Fund
  • Reliance Banking Fund-Retail Plan
  • Reliance Pharma Fund
  • Reliance Media & Entertainment Fund
  • Reliance Diversified Power Sector Fund
  • Reliance Infrastructure Fund
  • Reliance Tax Saver (ELSS) Fund*
  • Reliance Long Term Equity Fund

*Investment in the scheme is subject to the lock in period of three years. **This can be transferee scheme only after conversion into an open-ended scheme upon maturity. Reliance Tax Saver Fund is not an eligible transferee scheme for Plan E.Reliance Capital Asset Management Limited (RCAM) reserves the right to introduce or withdraw any of the above mentioned transferor or transferee schemes.

Load Structure
Entry Load
  • Transferor Scheme - Nil
  • Transferee Scheme - Nil
Exit Load
  • Transferor Scheme - As applicable in the respective scheme.
  • Transferee Scheme - As applicable in the respective scheme.
    In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor.
    For more details refer addendum no. 70 dated December 1, 2009 available on our website www.reliancemutual.com

Sponsor:Reliance Capital Limited Trustee: Reliance Capital Trustee Co. Limited Investment Manager: Reliance Capital Asset Management Limited. Statutory Details: The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956.

Reliance Floating Rate Fund (An Open-ended Liquid Scheme): The primary investment objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitised debt, Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). The scheme shall also invest in Fixed Rate Debt Securities (including fixed rate securitised debt, Money Market Instruments and Fixed Rate Debt Instruments swapped for fixed returns). Reliance Liquidity 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. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. Reliance Liquid Fund (An Open-ended Liquid Scheme): The primary investment objective of the scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. Reliance Medium Term Fund (An Open-ended Income Scheme with no assured returns): The primary investment objective of the scheme is to generate regular income in order to make regular dividend payments to unitholders and the secondary objective is growth of capital. Reliance Short Term Fund (An Open-ended Income Scheme): The primary investment objective of the scheme is to generate stable returns for investors with a short term investment horizon by investing in fixed income securities of a short term maturity. Reliance Gilt Securities Fund (An Open-ended Government Securities Scheme): The primary investment objective of the scheme is to generate optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by the Central Government and State Government. Reliance Monthly Income Plan (An Open-ended Fund-Monthly Income is not assured & is subject to the availability of distributable surplus): The primary investment objective of the scheme is to generate regular income in order to make regular dividend payments to unitholders and the secondary objective is growth of capital. Reliance Money Manager Fund (Open ended income scheme): The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities. Reliance Income Fund (An Open-ended Income Scheme): The primary investment objective of the scheme is to generate optimal returns consistent with moderate level of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt & Money Market Instruments. Reliance Regular Savings Fund (An open ended Scheme) Debt Option: The primary investment objective of this Option is to generate optimal returns consistent with moderate level of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly investments shall predominantly be made in Debt & Money Market Instruments. Equity Option: The primary investment objective of this Option is to seek capital appreciation and/or to generate consistent returns by actively investing in equity / equity related securities. Balanced Option: The primary investment objective of this Option is to generate consistent return and appreciation of capital by investing in mix of securities comprising of Equity, Equity related Instruments & Fixed income instruments. 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 investing in equity and equity related securities through a research based investment approach. 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 investment in equity and equity related securities through a research based investment approach. Reliance Equity Opportunities Fund (An Open-ended Diversified Equity Scheme): 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 Equity Fund (An open-ended Diversified Equity Scheme): 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 & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Equity Advantage Fund (An Open ended Diversified Equity Scheme): The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio predominately of equity & equity related instruments with investments generally in S & P CNX Nifty stocks and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Banking Fund (An Open-ended Banking Sector Scheme): The primary investment objective of the scheme is to generate continuous returns by actively investing in equity and equity related or fixed income securities of Banks. Reliance Pharma Fund (An Open-ended Pharma Sector Scheme): The primary investment objective of the scheme is to seek to generate consistent returns by investing in equity and equity related securities or fixed income securities of Pharma and other associated companies. Reliance Media & Entertainment Fund (An Open-ended Media & Entertainment Sector Scheme): The primary investment objective of the scheme is to generate continuous returns by investing in equity and equity related or fixed income securities of Media & Entertainment and other associated    companies. Reliance Diversified Power Sector Fund (An Open-ended Power Sector Scheme): The primary investment objective of the scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of Power and other associated companies. 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 Long Term Equity Fund(Open Ended Diversified Equity Scheme): The primary investment objective of the scheme is to seek to generate long term capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities and Derivatives and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Infrastructure Fund (An Open-ended Equity Scheme): The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure and infrastructure related sectors and which are incorporated or have their area of primary activity, in India and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Natural Resources Fund (An Open Ended Equity Scheme): The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in companies principally engaged in the discovery, development, production, or distribution of natural resources and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Quant Plus Fund (An Open-ended Equity Scheme): The investment objective of the Scheme is to generate capital appreciation through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation by investing in an active portfolio of stocks selected from S & P CNX Nifty on the basis of a mathematical model. Reliance Small Cap Fund (An Open Ended Equity Scheme): 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 Index Fund - Nifty Plan (An Open Ended Index Linked Scheme): The primary investment objective of the scheme is to replicate the composition of the Nifty, with a view to generate returns that are commensurate with the performance of the Nifty, subject to tracking errors. Reliance Index Fund – Sensex Plan (An Open Ended Index Linked Scheme): The primary investment objective of the scheme is to replicate the composition of the Sensex, with a view to generate returns that are commensurate with the performance of the Sensex, subject to tracking errors. Reliance Arbitrage Advantage Fund (An Open Ended Arbitrage Scheme): The investment objective of the scheme is to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment along with investments in debt securities & money market instruments.

Risk Factors :
Mutual Funds and securities investments are subject to market risks and there is no assurance and no guarantee that the objective of the respective scheme will be achieved. As with investments in any securities, the NAV of the units issued under the Scheme can go up or down depending on the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of future performance of the Scheme. The names of the schemes do not in any manner indicate either the quality of the Scheme, its future prospects or returns. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lac towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. The NAV of the Scheme may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The Mutual Fund is not assuring that it will make periodical dividend distributions, though it has every intention of doing so. All dividend distributions are subject to the availability of distributable surplus in the Scheme.Please read the respective Scheme Information Document(s), Key Information Memorandum (s) and Statement of Additional Information carefully before investing.