Inflation over time depletes your idle money lying in the safe. This Diwali, give it a chance to beat inflation. #YehDiwaliMutualFundWali

Reliance Liquid Fund

Liquid funds are open ended mutual fund schemes which help manage short term cash surpluses of investors and endeavour to provide optimal returns with low levels of risk and high liquidity. These funds generate returns through interest accrual by investing in money market instruments like commercial papers, certificate of deposits, CBLO/ Repos and in short term debt instruments.

Why should you invest in Reliance Liquid Funds
Ideally one should invest in liquid funds, when there is surplus money lying idle and needs to be deployed for a short period of time. These funds would invest in very short term debt & money market instruments (upto 91 days), which generally have good credit quality, providing easy liquidity and returns in line with that prevailing at the market conditions at the shorter end of the yield curve.
Benefits of Reliance Liquid Fund
  • Minimal capital Risk: Liquid funds invest in good credit quality assets, signifying lower credit risk. The scheme invests in instruments with a maturity profile of 91 days or below. The very short maturity of the Securities helps minimize the MTM volatility in the portfolio thus minimizing capital risk.
  • Return Efficiency: Investors start earning returns from the date of investment itself thus minimizing any return leakage.
  • Optimizing cash management: Investors could even invest for as less as one day, in order to optimally use the fund for their cash management purposes„.
  • Real Time Redemption: In addition to traditional modes of redemption, the fund also allows access to your investments through Reliance Any Time Money Card.
  • No entry and exit loads.

Reliance Credit Risk Fund

The Reliance Credit Risk fund aims to generate optimal returns with moderate risk and invests in Debt & Money Market instruments.

Why should you invest in Reliance Credit Risk Fund
  • The fund is suitable for all kinds of interest rate scenario as the fund emphasis is on maintaining relatively high carry on an ongoing basis.
  • The fund also endeavours to provide protection in a rising yield scenario on a steep yield curve mainly because of roll down in maturity and higher gross yields due to the exposure to high accrual assets.
Benefits of Reliance Credit Risk Fund
  • It is Tax efficient due to the indexation benefit available to debt fund if investment is long term as per definition of sec 2 (29A) of The Income Tax Act, 1961. This fund is well positioned for investors with a holding period of 3 years.
  • It is ideal for investors who have a low appetite for interest rate volatility and seeking accrual returns. The fund is intended for investors having a holding period of 3 years or more.
  • The fund invests based on short to medium term interest rate view and shape of the yield curve. It typically maintains a moderate duration up to 2 years and invests in well researched credits/ structures for yield enhancement.

Reliance Balanced Advantage Fund

Reliance Balanced Advantage Fund attempts to reduce volatility associated with equity investments, and hence provide a better investment experience

Why should you invest in Reliance Balanced Advantage Fund
  • Invest in a volatile market.
  • Aim to gain from growth potential of equities.
Benefits of Reliance Balanced Advantage Fund
It attempts to generate better risk-adjusted returns by adopting the following key tenets:
  • Avoid emotional bias by following a model to ascertain the level of equity exposure.
  • Attempt to reduce drawdown's / lose less, by reducing equity exposure when markets are expensive.
  • Have a diversified portfolio of investing across sectors.
Tax Advantage - Long term Capital Gain shall be computed without considering indexation benefit and such long-term capital gains is taxable at the rate of 10% as per provision of Section 112A of The Act. Further, Threshold benefit of Rs. 1,00,000 available on such long term capital gain. Short-term capital gains is taxable at the rate of 15 per cent as per provision of Section 111A of The Act.

This year, Don’t Have a “Safe” Diwali

Inflation over time depletes your idle money lying in the safe. This Diwali, give it a chance to grow.

Read more

Diwali, the most eagerly awaited Indian festival is also synonymous with Lakshmi Pujan, where we pray to Goddess Lakshmi for her eternal blessings.

While we do everything we can to attract Goddess Lakshmi (money) to us, are we sure we do enough to protect and grow the money we already have? Most of us are unaware of the perils of inflation and the depleting effect it has on our idle money.

 Inflation is like your money sailing against the tide. Over time, it depletes your idle money as the value of your money doesn’t grow & it depreciates its value. There are newer avenues for your hard-earned money than the more traditional ways of saving in a safe at home This Dhanteras, rather than keeping all our money in a “safe” at homes, think different.

Let’s give money an opportunity to grow. You may consider the following three offerings from RMF –

Reliance Liquid Fund (An Open Ended Liquid Scheme)

A liquid fund is true to its name in terms of liquidity, it being similar as that of a savings account. At RMF, we understand the concerns you might have with your contingency or surplus money. You would want to keep it always-available.

By investing in debt and money market instruments with very short maturity periods (up to 91 days), liquid funds are comparatively ranked low on risk and aim to provide stable returns.  Your physical surplus cash at home can be invested in liquid funds, in order to let it grow.

RELIANCE BALANCED ADVANTAGE FUND (an open ended dynamic asset allocation fund)

 Another option available for you to consider is Reliance Balanced Advantage Fund. The fund endeavours to benefit from the potential upside in equity market while limiting the downside. This is done by managing the portfolio between investment in equity & equity related instruments and active use of debt, money market instruments and derivatives.

RELIANCE CREDIT RISK FUND (An open-ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds))

In case you are a moderate risk taker with a holding period of 3 years or more, you may consider this fund. This Scheme primarily aims to generate optimal income consistent with a moderate level of risk. This income may be complemented by capital appreciation in the portfolio. Accordingly, investments shall mainly be made in Debt and Money Market Instruments.  This may also help you avail tax efficiency due to the indexation benefit available to debt funds if the investment is long-term (as per definition of sec 2 (29A) of The Income Tax Act, 1961)

It may be prudent to consider various options before deciding on the ones that are in-line with your investment objectives. We are happy to assist you.

Diwali is about family, happiness and growth. Just like your money. So, this festive season, let us “unsafe” by investing money differently.

After all, #YehDiwaliMutualFundWali!

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsors, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.

Reliance Liquid Fund (An Open Ended Liquid Scheme)
This product is suitable for investors who are seeking*:
Income over short term
Investment in debt and money market instruments
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Reliance Credit Risk Fund (An open ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds)
This product is suitable for investors who are seeking*:
Income over medium term
Investment predominantly in AA and below rated corporate bonds
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Reliance Balanced Advantage Fund (An open ended debt scheme predominantly investing)
This product is suitable for investors who are seeking*:
Long term capital growth
Investment in equity and equity related instruments, debt, money market instruments and derivatives
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.