Direct Plan: The Reliance Money Manager Fund direct plan can be availed by any investor seeking to make their investment directly with the fund house. This variant of the scheme features a lower expense ratio as compared to the regular plan and this can potentially increase the overall returns marginally in the long term. However, due to the slightly higher NAV of this variant as compared to the scheme’s regular plan, fewer units may be purchased, which in turn minimizes the impact of the scheme’s lower expense ratio.
Regular Plan: Available through multiple routes including the fund house and 3rd party intermediaries such as Paisabazaar.com, an investor can easily choose to invest in the scheme’s regular plan through either the online or the offline route. The Reliance Money Manager Fund regular plan features a higher expense ratio as compared to its direct plan variant, which leads to a lower scheme NAV as compared to the direct plan. However, the returns even in the long term for this scheme are only marginally lower than the fund’s direct plan. The regular plan of this mutual fund is thus more commonly availed by investors due to easy availability.
Growth Option: In case an investor is seeking higher levels of capital appreciation, he/she should consider investing in the Reliance Money Manager Fund Growth Option. This scheme variant does not offer the benefit of periodic income while the investor stays invested in the scheme. However, once the investor decides to switch his/her scheme units, a profit in the form of capital gains can be booked. This is because, in case of the growth option, profits generated by the fund are invested back into the scheme which increases the NAV of the units and helps generate capital gains for the investor at a later date.
Dividend Option: For investors seeking periodic income from their mutual fund investment, the dividend option might be the preferred investment route. That said, dividend pay outs are actually not guaranteed because being a market linked instrument, the Reliance Money Manager Fund Dividend option does not guarantee returns to the investor. Moreover, the dividend payout is on a per unit basis which leads to a decrease in the NAV of the units held by an equal amount. Thus, the dividend plan of this scheme features a lower NAV as compared to the growth option of the Reliance Money Manager Fund. Current choices for investors choosing the dividend option include daily dividend, weekly dividend, monthly dividend, dividend reinvest, etc.