The Concept of Mutual Fund
A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective. The ownership of the fund is thus ‘joint’ and ‘mutual’; the fund belongs to all investors
Reliance Mutual Fund
Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is India's leading Mutual Fund, with average Assets Under Management of Rs. 90,813 crores for the month of June 2008, and an investor base of over 6.7 million. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in 300 cities across the country and constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd.
Types of Mutual Funds on the Basis of Risk Vs Returns
Frequently used term in Mutual Funds
• Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.
• Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load.
• Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price
• Redemption Price
Is the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related.
• Sales Load
Is a charge collected by a scheme when it sells the units. Also called, ‘Front-end’ load. Schemes that do not charge a load are called ‘No Load’ schemes
• Repurchase or ‘Back-end’ Load
Is a charge collected by a scheme when it buys back the units from the unit holders.
Types of Reliance Mutual Funds
1. Reliance Growth Fund
2. Reliance Vision Fund
3. Reliance Banking Fund
4. Reliance Diversified Power Sector Fund
5. Reliance Pharma Fund
6. Reliance Media & Entertainment Fund
7. Reliance NRI Equity Fund
8. Reliance Equity opportunities Fund
9. Reliance Index Fund
10. Reliance Tax Saver (ELSS) Fund
11. Reliance Equity Fund
12. Reliance Long Term Equity Fund
13. Reliance Regular Saving Fund
The key term in mutual funds
Dividend Policy: Dividend will be distributed from the available distributable surplus after the deduction of the divided distribution surplus after the deduction of the dividend distribution tax and the applicable surcharge, if any. The mutual fund is not guaranteeing or assuring any dividend. Pease read the offer document for details. Further payment of all the dividends shall be in compliance with SEBI circular No. SEBI/IMD/CIR No. 1/64057/06 dated 4/4/06.
Applicable NAV : Sale of units by reliance mutual fund: in respect of valid applications received up to 3 p.m. by the mutual fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable.
Repurchase including Switch-out: in respect of valid applications received upto 3 pm by the mutual fund, same day’s closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the mutual fund, the closing NAV of the next business day shall be applicable.
Daily net Asset Value(NAV) publication: the NAV will be declared on all working days and will be published in 2 newspaper. NAV can also be viewed on www.reliancemutualfund.com and www.amfiindia.com .
Tax Benefits to the mutual fund: Reliance Mutual Fund is a Mutual fund registered with the securities & exchange board of India and hence the entire income of the mutual fund will be exempt from income tax in accordance with the provisions of section 10(23D) of the income tax act, 1961. The mutual fund will receive all income without any deduction of tax at source under the provisions of section 196(iv) of the act.
An exemption has been granted under the finance (No.2) act, 2004 to open ended equity oriented mutual funds from paying distribution tax on income distributed without any time limit, effective from 1 April 2004.
A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective. The ownership of the fund is thus ‘joint’ and ‘mutual’; the fund belongs to all investors
Reliance Mutual Fund
Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is India's leading Mutual Fund, with average Assets Under Management of Rs. 90,813 crores for the month of June 2008, and an investor base of over 6.7 million. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in 300 cities across the country and constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd.
Types of Mutual Funds on the Basis of Risk Vs Returns
Frequently used term in Mutual Funds
• Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.
• Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load.
• Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price
• Redemption Price
Is the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related.
• Sales Load
Is a charge collected by a scheme when it sells the units. Also called, ‘Front-end’ load. Schemes that do not charge a load are called ‘No Load’ schemes
• Repurchase or ‘Back-end’ Load
Is a charge collected by a scheme when it buys back the units from the unit holders.
Types of Reliance Mutual Funds
1. Reliance Growth Fund
2. Reliance Vision Fund
3. Reliance Banking Fund
4. Reliance Diversified Power Sector Fund
5. Reliance Pharma Fund
6. Reliance Media & Entertainment Fund
7. Reliance NRI Equity Fund
8. Reliance Equity opportunities Fund
9. Reliance Index Fund
10. Reliance Tax Saver (ELSS) Fund
11. Reliance Equity Fund
12. Reliance Long Term Equity Fund
13. Reliance Regular Saving Fund
The key term in mutual funds
Dividend Policy: Dividend will be distributed from the available distributable surplus after the deduction of the divided distribution surplus after the deduction of the dividend distribution tax and the applicable surcharge, if any. The mutual fund is not guaranteeing or assuring any dividend. Pease read the offer document for details. Further payment of all the dividends shall be in compliance with SEBI circular No. SEBI/IMD/CIR No. 1/64057/06 dated 4/4/06.
Applicable NAV : Sale of units by reliance mutual fund: in respect of valid applications received up to 3 p.m. by the mutual fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable.
Repurchase including Switch-out: in respect of valid applications received upto 3 pm by the mutual fund, same day’s closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the mutual fund, the closing NAV of the next business day shall be applicable.
Daily net Asset Value(NAV) publication: the NAV will be declared on all working days and will be published in 2 newspaper. NAV can also be viewed on www.reliancemutualfund.com and www.amfiindia.com .
Tax Benefits to the mutual fund: Reliance Mutual Fund is a Mutual fund registered with the securities & exchange board of India and hence the entire income of the mutual fund will be exempt from income tax in accordance with the provisions of section 10(23D) of the income tax act, 1961. The mutual fund will receive all income without any deduction of tax at source under the provisions of section 196(iv) of the act.
An exemption has been granted under the finance (No.2) act, 2004 to open ended equity oriented mutual funds from paying distribution tax on income distributed without any time limit, effective from 1 April 2004.