This is an open-ended mutual fund offered by Reliance AMC, i.e. Reliance Nippon Life Asset Management Ltd. This fund is suitable for investors across all investment categories. At present, there are 3 separate options for the fund – the equity variant, the debt variant and the hybrid variant. As a result of the availability of these three variants, this mutual fund option is suitable for all investors irrespective of their risk profile.
Types of Reliance Regular Savings Fund
The following are the three Reliance Regular Savings Fund variants that an individual investor can choose from:
- Reliance Regular Savings Fund – Equity Scheme: a majority of the fund’s investments are made in equities and equity-related instruments. This scheme is thus capable of generating potentially high returns. However, there is also a higher risk associated with this scheme variant.
- Reliance Regular Savings Fund – Debt Scheme: the primary area of investment in various debt instruments available in the market as well as debt-linked securities. This is a lower risk variant of the regular savings fund offered by Reliance, however, this lower risk does come with the potentially lower rate of returns as compared to the equity variant of the scheme.
- Reliance Regular Savings Fund – Balanced Scheme: this option offered by Reliance AMC attempts to provide a balance between the high risk of the equity investment and the lower risk of debt investments. As a result of this balanced approach, the returns offered by Reliance Regular Savings Fund – Balanced scheme are higher than those offered by the debt variant, but lower than that of the equity option of the fund.
Objective of the Scheme
This mutual fund scheme offered by Reliance AMC has the dual focus of providing capital appreciation as well as consistent ROI to its investors over the long term. The primary investment area (equity, debt or both) of the scheme will vary from one scheme variant to another.
Key Features of the Scheme
Inception: The Reliance Regular Savings Fund was established on the 9th of June 2005 thus has a proven track record of over a decade, which makes it a relatively safe choice for investors seeking to grow their wealth.
Suitability: This investment option from Reliance AMC is designated suitable for long-term capital growth through investment in equity/equity-related instruments, debt/debt-related instruments and a balance between equity-debt investments.
Entry Load: This open-ended fund is not subject to an entry load when the investor subscribes to any of the variants of the scheme.
Exit Load: This is a charge that the AMC applies at the time of redemption of an investor’s investment in the Reliance Regular Savings Scheme. In case the investment is redeemed with a one year period of making the initial investment, a 1% exit load is applicable on the redeemed amount. Additionally, the exit load is zero in case the investment in Reliance Regular Income Scheme is redeemed after completion of the 1 year time period counted from the day the investment was processed.
Minimum Investment: The minimum lump sum investment in this scheme is Rs. 500 and thereafter multiples of the same amount i.e. Rs. 500 are applicable as the amount suitable for initial investment. The minimum SIP investment amount that can be made in this scheme ranges from Rs. 100 onwards with multiples of Rs. 1 increments allowed on the initial scheme.
Risk Level: The level of risk applicable to this investment varies from moderately high to low depending on which Reliance Regular Savings Fund variant i.e. equity, debt or balanced (hybrid) the investor has invested in. Thus, equity option features moderately high risk, debt option will feature low risk and the hybrid option will feature moderate level of risk.
Taxation: Depending on whether the equity, debt or balanced (hybrid) option is chosen, the taxation rules for the Reliance Regular Savings Fund will vary. In case of the equity option, in case the investment is held for at least 1 year, no capital gains taxes will apply. In case of debt or hybrid option, the minimum holding period is 3 years to prevent any capital gains taxes being levied at the time of redemption. In case the holding period is less than what is mentioned above, taxes are applied as per the applicable income tax slab rate of the investor.
Fund Manager: The current fund manager for the Reliance Regular Savings Fund is Omprakash Kuckian. Prior to managing this Reliance AMC fund, he has worked with leading companies such as HDFC Securities and Religare Invesco.
Investment Plans and Options Available
As has already been mentioned earlier, the fund is available in 3 variants – equity, debt and balanced options. Additionally, there are two additional options i.e. growth and dividend for each scheme. The following is a short description of the various plans and options available for the Reliance Regular Savings Fund are as follows:
- Reliance Regular Savings Fund – Equity
- Reliance Regular Savings Fund – Debt
- Reliance Regular Savings Fund – Balanced
Reliance Any Time Money Scheme
This is a unique cashless ATM card facility offered by Reliance AMC to its investors in case of a wide variety of mutual funds, including Reliance Regular Savings Fund. Some of the key features of this program include:
- The option of cash withdrawal at all Visa ATMs as well as swipe transactions at POS terminal similar to any bank debit card.
- Potentially high withdrawal limit of up to half of total investments, Rs. 50,000 or any limit placed by the chosen ATM-operating bank.
- Potentially high purchase limit through swipe transactions of Rs. 1 lakhs or 50% balance of the total investment in the primary scheme.
- Fuel surcharge waiver at petrol pumps across India.
- The primary scheme in this case needs to be either the Reliance Money Manager Fund, the Reliance Liquid Fund – Cash Plan or the Reliance Liquid Fund- Treasury Plan. The Reliance Regular Savings Fund can be a secondary scheme attached to the same mutual fund account to facilitate the withdrawal.
Key requirements to avail the scheme include, but are not limited to, the following:
- The applicant must be an individual investor over 18 years old when applying. Other investor categories including Trusts, Proprietorship Firms, Partnership Firms, Private/Public Ltd. Companies, NRIs and Hindu Undivided Families are ineligible for the Reliance ATM Scheme.
- The applicant needs to have a current investment in the one of the 3 primary schemes – the Reliance Money Manager Fund, the Reliance Liquid Fund – Cash Plan or the Reliance Liquid Fund- Treasury Plan.
The investment in Reliance AMC’s funds by the applicant needs to be in one of the following formats – Single, Anyone or Survivor and Either or Survivor.
Portfolio Features of the Fund
Reliance Regular Savings Fund – Equity Option
As this option is primarily invested in equities and equity-linked options traded in the stock market, the major chunk comprises of equity investments made by the fund. Much smaller amounts are invested in other investments like money market funds, cash/call, other mutual funds, etc.
Table1. Portfolio snapshot of Reliance Regular Savings Fund – Equity Option*
|Sector||Key Companies in the Sector|
|Banking/Finance||HDFC Bank, Kotak Mahindra, SBI, ICICI Bank etc.|
|Engineering||Larsen, BEML, GE Power India, Siemens, ABB, KEC International, Cummins etc.|
|Information Technology||HCL Technologies, Hexaware Tech, Intellect Design, Infosys, etc.|
|Automotive||Bajaj Auto, Motherson Sumi, Tata Motors, etc.|
|Telecom||Honeywell Automation etc.|
|Food and Beverages||Jubiliant Food, Bombay Burmah, etc.|
|Cement||UltraTech Cement, India Cements, etc.|
|Oil and Gas||Indian Oil Corporation, etc.|
|Chemicals||Linde India, Zuari Global, etc.|
|Pharmaceuticals||Divis Labs, Torrent Pharma, etc.|
|Miscellaneous||Tube Investment, Syngene International, etc.|
*The above list is indicative and subject to period change based on key market factors and fund objectives
Reliance Regular Savings Fund – Debt Option
Being a debt oriented fund option which provides steady growth along with minimal risk and next to no exposure to equities. The key investment areas of the debt option scheme would include debt/debt-related securities, cash/call and money market instruments.
Table2. Portfolio snapshot of Reliance Regular Savings Fund – Debt Option*
|Bond Type/Instrument||Key Companies in the Sector|
|FITCH A+||Jhajjar Power Ltd., etc.|
|CRISIL AA-||PVR Limited, Vedanta Limited, etc.|
|CARE AA+ (SO)||Tata Motors Limited, etc.|
|CARE AA (SO)||Hansdeep Industries & Trading Co. Ltd., Welspun Renewables Energy Private Limited, etc.|
|CARE AAA||PNB Housing Finance Limited, Indiabulls Housing Finance Limited, etc.|
|ICRA AA||Tata Housing Development Company ltd., Dalmia Cement (Bharat) Ltd., etc.|
|ICRA AA+||Aditya Birla Housing Finance ltd., etc.|
|FITCH AA+||Adani Transmission Limited, Mahindra Rural Housing Finance, etc.|
|CRISIL A+||Tata Sky ltd., Bank of India, etc.|
|BRICKWORK AA-(SO)||Coffee Day Enterprises Limited, Adani Properties Pvt. Ltd.|
|Money Market||HDFC Ltd., etc.|
*The above list is indicative and subject to period change based on key market factors and fund objectives.
Reliance Regular Savings Fund – Balanced Option
The balanced option of Reliance Regular Savings Fund is designed to provide a moderately high level of capital appreciation while maintaining a commensurate level of risk. To this end, the fund follows the strategy of diversified investments in equity/equity–linked investments, debt/debt instruments, money market funds, cash/call derivatives as well as mutual funds.
Table3. Portfolio snapshot of Reliance Regular Savings Fund – Balanced Option
|Sector||Key Companies in the Sector|
|Banking/Finance||HDFC Bank, IDFC Bank, Kotak Mahindra, Bank of Baroda, RBL Bank, IIFL Holdings etc.|
|Engineering||Suzlon Energy, Larsen, Crompton Greaves, Texmaco Rail, etc.|
|Information Technology||Infosys,Tech Mahindra, Intellect Design, HCL Technology, etc.|
|Automotive||Maruti Suzuki, Motherson Sumi, Mahindra & Mahindra, Tata Motors, Sundaram Clayto, etc.|
|Telecom||Reliance Communications, Bharti Airtel, Idea Cellular, etc.|
|Food and Beverages||United Spirit, Tata Coffee, etc.|
|Cement||India Cements, etc.|
|Oil and Gas||Indian Oil Corporation, GAIL , Reliance, etc.|
|Pharmaceuticals||Cipla, Strides Shasun, Sun Pharma, Aurobindo Pharma, Divis Labs etc.|
|Miscellaneous||Tube Investment, Syngene International, Indian Tobacco Company, etc.|
|Media and Entertainment||TV18 Broadcast, UFO Moviez, etc.|
|Debt and Debt-Related Instruments|
|Government Securities||Government of India Securities, State Government Securities, etc.|
|CRISIL AAA||HDFC Bank Limited, Axis Bank Limited, LIC Housing Finance Limited, Power Finance Corporation Limited, Rural Electrification Corporation Limited, SBI Cards & Payments Services Pvt. Ltd. etc.|
|CARE AAA||Bajaj Finance Limited, Punjab National Bank Housing Finance Limited, Indiabulls Housing Finance Limited, etc.|
|ICRA A1||Reliance Power Limited, etc.|
|CRISIL AA-||Vedanta Limited, etc.|
|ICRA AA+||Aditya Birla Housing Finance Ltd., etc.|
|Money Market Instruments||CBLO, ICICI Bank Limited, Mahindra & Mahindra Financial Services Limited, JM Financial Products Ltd., Muthoot Finance Limited, Tata Capital Financial Services ltd., Indiabulls Commercial Credit ltd. and others|
How to Invest in Reliance Mutual Funds through Paisabazaar.com
The above list is indicative and subject to period change based on key market factors and fund objectives. Investing in a Reliance AMC mutual fund of your choice is easy in case you have a free paisabazaar.com account. You can open the account in minutes with the easy to use eKYC option through Aadhar. Once you have your account up and running, you can easily set up immediate or scheduled transactions in the Reliance mutual funds of your choice. You can also easily compare your Reliance mutual fund with those offered by other AMCs on the basis of key criteria such as 1 year, 3 year and 5 year annualised returns, risk level and type of fund option – equity, hybrid or debt. You can easily complete the investment of your choice through net banking and get your units allocated automatically based on the applicable NAV.