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Reliance Systematic Investment Plan
Invest as little as Rs. 100 per month.
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Welcome to Reliance Mutual Fund
Just as drops of water make an ocean, small but regular investments can go a long way in building wealth over time.
This way you grow step by step. It’s always prudent to invest with a long term horizon in mind. Small but regular investments go a long way in creating wealth over time.
Reliance Systematic Investment Plan helps you achieve just that. It is an investment technique where you deposit as little as Rs. 100 regularly every month into the mutual fund scheme at the then prevailing NAV (Net Asset Value), subject to applicable load.
No need to time the markets
Imagine, if you could always pick the right time to buy and sell.
However, timing the market is a time-consuming and risky task.
Through disciplined, regular investments you can stop worrying about when and how much to invest.
In short, it eliminates the need to actively track the markets.
Lower cost per unit
Since your investments are spread regularly over a period of time, buying fewer units during rising markets and buying more units during falling markets reduces the average cost per unit of your investments
- this concept is known as Rupee Cost Averaging.
Illustration - Rupee Cost Averaging
Say you have opted for Reliance Systematic Investment Plan, investing Rs. 100 every month from April 2004 to September 2004 in a diversified equity fund. Now check the average purchase cost per unit of your investments. It would be lower than the average NAV of your investment over 6 months. To see how your average purchase cost per unit is lower than the average NAV see the table along side.
| Date |
NAV (Rs.) |
Units |
Amount (Rs.) |
| 12/4/04 |
80.52 |
1.24 |
100.00 |
| 10/5/04 |
81.49 |
1.23 |
100.00 |
| 10/6/04 |
71.87 |
1.39 |
100.00 |
| 12/7/04 |
72.64 |
1.38 |
100.00 |
| 10/8/04 |
81.74 |
1.22 |
100.00 |
| 10/9/04 |
87.49 |
1.14 |
100.00 |
| Total |
475.75 |
7.60 |
600.00 |
| Average Cost |
78.91 |
| Average Price |
79.29 |
Average Cost = Total Cash Outflow / Total Number of units = Rs. 600 / 7.60 = Rs. 78.91 Average Price = Sum of all NAVs at which you have invested / Number of months of investment = Rs. 475.75 / 6 = Rs. 79.29 Average Cost < Average Price Note: Above table uses historical NAVs for illustration purpose. Past NAVs of a scheme are no indicator of future NAVs.
Start early - The power of compounding
Suppose A & B invest Rs. 100 every month earning interest @ 8% p.a. on a monthly compounding basis. A starts at the age of 25 years & B starts at the age of 35 years. Both of them invest for 5 years (Rs. 6000) & hold their investments till 60 years of age. A’s investment would have appreciated to approx. Rs. 74,430 whereas B’s investment would have grown to approx.
Rs. 34,475 only. Thus, A’s investment would have almost doubled by just starting earlier than B.
Achieve your financial goals
Reliance Systematic Investment Plan is an effective tool for financial planning. Be it your child’s education, marriage or buying a home. With Reliance SIP, you can choose a pertinent regime and achieve your goals, systematically. To see how you can achieve your goals see the Reliance Vision Fund and Reliance Growth Fund table along side.
| SIP Return as on Feb 26, 2010 (VISION FUND) |
| Period |
1 Year |
3 Year |
5 Year |
Since inception |
| SIP Start Date |
01/03/2009 |
01/03/2007 |
01/03/2005 |
08/10/1995 |
| Current NAV (As on 26/02/2010) |
239.55 |
239.55 |
239.55 |
239.55 |
| Total No. of units accumulated |
61.88 |
189.20 |
380.98 |
7113.10 |
| Total Amount Invested |
12000.00 |
36000 |
60000 |
173000 |
| Present Value |
14822.53 |
45321.57 |
91261.76 |
1703918.31 |
| Yield |
49.73% |
15.89% |
17.01% |
28.29% |
| Present Value if invested in Index |
14432.05 |
43642.27 |
86398.72 |
635739.64 |
| Yield From Index |
42.48% |
13.20% |
14.75% |
16.56% |
Past performance may or may not be sustained in future.
| SIP Return as on Feb 26, 2010 (GROWTH FUND) |
| Period |
1 Year |
3 Year |
5 Year |
Since inception |
| SIP Start Date |
01/03/2009 |
01/03/2007 |
01/03/2005 |
08/10/1995 |
| Current NAV (As on 26/02/2010) |
413.33 |
413.33 |
413.33 |
413.33 |
| Total No. of units accumulated |
37.47 |
118.57 |
249.06 |
6079.60 |
| Total Amount Invested |
12000.00 |
36000 |
60000 |
173000 |
| Present Value |
15488.30 |
49008.32 |
102941.66 |
2512869.93 |
| Yield |
62.32% |
21.56% |
22.01% |
32.90% |
| Present Value if invested in Index |
14432.05 |
43642.27 |
86398.72 |
635739.64 |
| Yield From Index |
42.48% |
13.20% |
14.75% |
16.56% |
Past performance may or may not be sustained in future.
Assumptions :
- Every SIP has an entry Load : till October 2004 - 2% and from November 2004 - 2.25% has been considered.
- SIP of Rs. 100/- each has been taken into consideration including the first installement. SIP happens on tenth of every month. Also note that we have assumed a/c opening and first SIP happens in the same month.
- Compounded annualised growth returns. Computations are done on the assumption that all payouts have been reinvested in the units of the scheme at the then prevailing NAV.
How to invest?
- Select Reliance Mutual Fund schemes of your choice.
Under the Reliance Systematic Investment Plan, you can choose from a range of equity and debt schemes which offer SIP.
- Investment periodicity - You can choose to make your investment on a monthly or quarterly basis.
- Minimum investment amount - Monthly SIP Option - 60 instalments of Rs. 100/- each or 12 instalments of Rs. 500/- each or 6 instalments of Rs. 1,000/- each and in multiples of Re. 1/- thereafter. Quarterly SIP Option - 12 instalments of Rs. 500/- each or 4 instalments of Rs.1,500/- each and in multiples of Re. 1/- thereafter. The first SIP instalment could be submitted on any working day.
However, the subsequent instalments can be dated 2nd, 10th, 18th or 28th of every month/quarter.
You can choose a day convenient for you. However, only one SIP transaction per month/quarter per folio is permitted.
- Investment method - The SIP facility can be availed by :
a) Electronic Clearing Service (ECS) or Direct Debit mandate, wherein the investor will have to give a debit mandate along with one signed cheque from his Savings Bank account.
b) Issuing Post-Dated Cheques (PDCs). (Rs.100 SIP can be processed only through Electronic Clearing Service (ECS) or Direct Debit).
Investment Objective : Reliance Vision Fund and Reliance Growth Fund aims to achieve long-term growth of capital by investment in equity and equity-related securities through a research-based investment approach.
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.
General Risk Factors :
Mutual Funds and Securities Investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. Reliance Vision Fund and Reliance Growth Fund are only the names of the Schemes and do not in any manner indicate either the quality of the Schemes; their 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 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. The Mutual Fund is not guaranteeing or assuring any dividend/bonus. The Mutual Fund is also not assuring that it will make periodical dividend/bonus distributions, though it has every intention of doing so. All dividend/bonus distributions are subject to availability of distributable surplus. For details of Scheme features apart from those mentioned above and scheme-specific risk factors, please refer to the provisions of the Offer Document. Offer Document and Key Information Memorandum cum Application Forms are available at AMC office/Investor Service centres/AMC website/Distributors.
Please read the Offer Document carefully before investing.
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