SYSTEMATIC INVESTMENT PLANING

Reliance Systematic Investment Plan Invest as little as Rs. 100 per month.

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 (SIP) 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. 1000 every month from March 2009 to Feb 2010 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 12 months.   Date NAV (Rs.) Units Amount (Rs.) 2/03/09 190.47 5.25 1000.00 13/04/09 233.32 4.29 1000.00 11/05/09 252.50 3.96 1000.00 10/06/09 339.27 2.95 1000.00 10/07/09 307.21 3.26 1000.00 10/08/09 343.02 2.92 1000.00 10/09/09 375.56 2.66 1000.00 12/10/09 392.46 2.55 1000.00 10/11/09 392.76 2.55 1000.00 10/12/09 416.48 2.40 1000.00 11/01/10 439.79 2.27 1000.00 10/02/10 412.21 2.43 1000.00 Total 4095.04 37.47 12000.00 Average Cost = Total Cash Outflow / Total Number of units = Rs. 12000/ 37.47 = Rs. 320.24 Average Price = sum of all NAVs at which you have invested/Number of months of investment = Rs. 4095.04/12 = Rs. 341.25 Average Cost < Average Price Note: The above table considers the actual NAV of Reliance Growth Fund to explain the concept of Rupee Cost Averaging. The NAV do not in any manner indicate the future NAVs of the any of the schemes of Reliance Mutual Fund Past performance may or may not be sustained in future. 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 Aug 31, 2010  (Vision Fund) Period                  1 Year 3 Year 5 Year Since inception SIP Start Date 40057 39326 38596 34980 Current NAV (As on 31/08/2010) 272.68 272.68 272.68 272.68 Total No. of units accumulated 48.69 180.98 339.25 7269.96 Total Amount Invested in Rs. 12000 36000 60000 179000 Market Value if invested in  Scheme in Rs. 13276.93 49349.33 92506.63 1982357.62 Market Value if invested in Benchmark in Rs. 12764.39 46074.44 85533.46 705013.60 Return on SIP in Scheme 0.212812334 0.219514364 0.175064725 0.285267609 Return on SIP in Benchmark (BSE 100) 0.13 0.17 0.14 0.17 Past performance may or may not be sustained in future.                          SIP Return as on Aug 31, 2010 (Growth Fund) Period                  1 Year 3 Year 5 Year Since inception SIP Start Date 40057 39326 38596 34980 Current NAV (As on 31/08/2010) 476.39 476.39 476.39 476.39 Total No. of units accumulated 28.19 110.76 216.99 6208.70 Total Amount Invested in Rs. 12000 36000 60000 179000 Market Value if invested in  Scheme in Rs. 13428.12 52764.89 103370.57 2957750.41 Market Value if invested in Benchmark in Rs. 12764.39 46074.44 85533.46 705013.60 Return on SIP in Scheme 0.238846987 0.269133049 0.221120936 0.330830258 Return on SIP in Benchmark (BSE 100) 0.13 0.17 0.14 0.17 Past performance may or may not be sustained in future.   Returns on SIP and Benchmark are annualized and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions have been worked out on “Excel” spreadsheet function known as XIRR. Calculations assume that all payouts during the period have been reinvested in the units of the scheme at then prevailing NAV. It is assumed that a SIP of Rs. 1000/- each executed on 10th of every month has been taken into consideration including the first installment. It may please be noted that load has not been taken into consideration. SIP Disclaimer: The amounts invested in SIP and the market values of such investments at respective periodic intervals thereof are simulated for illustrative purposes for understanding the concept of SIP. This illustration should not be construed as a promise, guarantee on or a forecast of any minimum returns. The Mutual Fund or the Investment Manager does not assure any safeguard of capital and the illustrated returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. SIP does not guarantee or assure any protection against losses in declining market conditions.   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 installments of Rs. 100/- each or 12 installments of Rs. 500/- each or 6 installments of Rs. 1,000/- each and in multiples of Re. 1/- thereafter. Quarterly SIP Option - 12 installments of Rs. 500/- each or 4 installments of Rs.1,500/- each and in multiples of Re. 1/- thereafter. The first SIP installments could be submitted on any working day. However, the subsequent installments 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).   Disclaimer: Statutory Details: Reliance Mutual Fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882. Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Company Limited. Investment Manager: Reliance Capital Asset Management Limited (Registered Office of Trustee & Investment Manager: "Reliance House" Nr. Mardia Plaza, Off. C.G. Road, Ahmedabad 380 006). The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. 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. 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. Asset Allocation: Equity and Equity related Instruments: 100 to 65%, Debt Instruments & Money Market Instruments: 35 to 0%, Entry Load - Nil, Exit Load - 1%, if redeemed or switched out on or before completion of 1 year from the date of allotment of units, Nil thereafter. 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. Asset Allocation: Equity and Equity related Instruments: 100 to 60%, Debt Instruments: 30 to 0%, Money Market Instruments: 10 to 0%. Entry Load –Nil, Exit Load - 1%, if redeemed or switched out on or before completion of 1 year from the date of allotment of units, Nil thereafter. Terms of issue: The NAV of the Schemes will be calculated and declared on every Working Day. The Schemes provide sale / switch – in & repurchase /switch - out facility on all Business Days at NAV based prices. 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. Reliance Growth Fund and Reliance Vision Fund are the names of the Schemes and do not in any manner indicates either the quality of the Scheme; its future prospects or returns. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. 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 Scheme Information Document (SID) and Statement of Additional Information (SAI) carefully before investing. Copies of SID and SAI is available at all the DISC, Distributors and www.reliancemutual.com.