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Reliance Capital Limited is a financial services company and part of a Reliance Anil Dhirubhai Ambani Group.

It is registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. as a public limited company in 1986 and is now listed on the Bombay Stock Exchange and the National Stock Exchange (India).[2] RCL has a net worth of over Rs '3,300 crore and over 165,000' shareholders. On conversion of outstanding equity instruments, the net worth of the company will increase to about Rs 4,100 crore. It is headed by Anil Ambani and is a part of the Reliance ADA Group. Reliance Capital ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in :[3]

Asset management. Mutual funds. Life and general insurance. Private equity and proprietary investments. Stock broking. Reliance PMS. Depository services and financial products. Consumer finance and other activities in financial services.

Reliance Anil Dhirubhai Ambani Group (usually referred as Reliance Group) is one of India's largest conglomerates, headquartered in Navi Mumbai, India. The company, which was formed after Dhirubhai Ambani's business empire was divided up, is headed by his younger son Anil Ambani.[1] It has a market capitalization of US$ 15 billion, net assets US$ 7 billion.[2] The ADAG Reliance Group has a business presence that extends to over 20,000 towns and 4.5 lakhs (450,000) villages in India, and across the globe. The shareholder base is over 12 million, among the largest in the world. The group is present in many sectors including Telecom, Capital, Power, Infrastructure, Entertainment and Health.

History
Main article: Dhirubhai Ambani Reliance group was founded by Dhirubhai Ambani in 1966 as a polyester firm. Dhirubhai started the equity cult in India. Reliance later entered into financial services, petroleum refining, power sector. By 2002 Reliance had grown into a $15 billion conglomerate. After the death of Dhirubhai Ambani on July 6, 2002, Reliance was headed by his sons. The group was formed after the two feuding brothers Mukesh Ambani and Anil Ambani, split Reliance Industries.[3][4] Anil Ambani got the responsibility of Reliance Infocomm, Reliance Energy, Reliance Capital and RNRL. This led to a new beginning called RELIANCE. Later this group entered the power sector through Reliance Power, and the entertainment sector by acquiring Adlabs.

Reliance Mutual Fund is India's largest mutual fund. Reliance General Insurance is a general insurance company and among the top 3 private sector insurers. Reliance Money is brokerage and distributor of financial products in India with over 2.7 million customers and has the largest distribution network. Its brokerage, arm Reliance Securities is planning to invest Rs 300 crore (Rs 3 billion) for upgrading infrastructure, hiring staff and enhancing the capability of its online trading platform.

What type of a mutual fund is a SIP?


I was taken aback by this question before I realised the person posing it thought a SIP was a type of mutual fund. Unfortunately, many new investors seem to be under this misconception. A Systematic Investment Plan is not a type of mutual fund. It is a method of investing in a mutual fund. Here's to coming to terms with it. How you can invest in a mutual fund There are two ways in which you can invest in a mutual fund. 1. A one-time outright payment If you invest directly in the fund, you just hand over the cheque and you get your fund units depending on the value of the units on that particular day. Let's say you want to invest Rs 10,000. All you have to do is approach the fund and buy units worth Rs 10,000. There will be two factors determining how many units you get. Entry load This is the fee you pay on the amount you invest. Let's say the entry load is 2%. Two percent on Rs 10,000* would Rs 200. Now, you have just Rs 9,800 to invest. NAV The Net Asset Value is the price of a unit of a fund. Let's say that the NAV on the day you invest is Rs 30. So you will get 326.67 units (Rs 9800 / 30). 2. Periodic investments The best funds to invest in

This is referred to as a SIP. That means that, every month, you commit to investing, say, Rs 1,000 in your fund. At the end of a year, you would have invested Rs 12,000 in your fund. Let's say the NAV on the day you invest in the first month is Rs 20; you will get 50 units. The next month, the NAV is Rs 25. You will get 40 units. The following month, the NAV is Rs 18. You will get 55.56 units. So, after three months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit. This is because, when the NAV is high, you get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs 1,000. Here are some FAQs on the SIP 1. Is there a load? An exit load is a fee you pay the fund when you sell the units, just like the entry load is a fee you pay when you buy the units. Initially, funds never charged an entry load on SIPs. Now, however, a number of them do. You will also have the check if there is an exit load. Generally, though, there is none. Also, if there is an entry load, an exit load will not be charged. An exit load may be charged if you stop the SIP mid-way. Let's say you have a one-year SIP but discontinue after five months, then an exit load will be levied. These conditions will wary between mutual funds. 2. What is the minimum investment? If you do a one time investment, the minimum amount that you have to invest is Rs 5,000. If you invest via an SIP, the amount drops. Each fund has their own minimum amount. Some may keep it at least Rs 500 per month, others may keep it as Rs 1,000. 3. How often does one have to invest? It would depend on the fund. Some insist the SIP must be done every month. Others give you the option of investing once in three months or once in six months. They also give fixed dates. So you will get the option of various dates and you will have to choose one. Let's say you are presented with these dates: 1, 10, 20 or 30. You can pick any one date. How to invest in a mutual fund

If you pick the 10th of the month, then on that day, the amount you have decided to invest in the fund has to be credited to your mutual fund. 4. How must the payment be made? You can opt for the Electronic Clearance Service from your bank; this means the mutual fund will, as per your instructions, debit a certain amount from your account every month. Let's say you have a SIP of Rs 1,000 every month and you have chosen to invest in it on the 10th of every month. Under this option, you can instruct your mutual fund to directly debit your bank account of Rs 1,000 on the due date. If you don't have the required money in your account, then for that month, no units will be allocated to you. But, if this continues periodically, the mutual fund will discontinue the SIP. You need to check with each mutual fund what their parameters are. Alternately, you can give cheques to your mutual fund. In this case, they may ask for five Post Dated Cheques upfront with your first investment. Since these cheques are dated ahead of time, they cannot be processed till the date indicated. The importance of choosing the right funds

5. Must I state for how long I want the SIP? Yes. You will have to state whether you want it for a year or two years, etc. If, during the course of this period, you realise you cannot continue with the SIP, all you have to do is inform the fund 15 days prior to the payout. The SIP will be discontinued. You can continue to keep your money with the fund and withdraw it when you want. 6. Do all funds offer SIP? No. Liquid funds, cash funds and floating rate debt funds do not offer an SIP. These are funds that invest in very short-term fixed-return investments. Floating rate debt funds invest in fixed return investments where the interest rate moves in tandem with interest rates in the economy (just like a floating rate home loan). All types of equity funds (funds that invest in the shares of companies), debt funds (funds that invest in fixed-return investments) and balanced funds (funds that invest in both) offer a SIP. 7. Tax implications Let's say you have invested in the SIP option of a diversified equity fund. If you sell the units after a year of buying, you pay no capital gains tax. If you sell if before a year, you pay capital gains tax of 10%. Let's say you invest through a SIP for 12 months: January to December 2005. Now, in February 2006, you want to sell some units.

Will you be charged capital gains tax? The system of first-in, first-out applies here. So, the amount you invest in January 2005 and the units you bought with that money, will be regarded as the units you sell in February 2006. For tax purposes, the units that you sell first will be considered as the first units bought. 8. How will an SIP help? When you buy the units of a fund, you may do so when the NAV is really high. For instance, let's say you bought the units of a fund when the bull run was at its peak, leading to a high NAV. If the market dips after that, the value of your investments falls and you may have to wait for a long while to make a return on your investment. But, if you invest via a SIP, you do not commit the error of buying units when the market is at its peak. Since you are buying small amounts continuously, your investment will average out over a period of time. Most volatile mutual funds

THE AMC RELIANCE CAPITAL ASSET MANAGEMENT COMPANY Reliance Capital Asset Management Limited (RCAM), a company registered under the Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund. Reliance Capital Asset Management Limited (RCAM) was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorized to act as Investment Manager of Reliance Mutual Fund. The net worth of the Asset Management Company including preference shares as on September 30, 2007 is Rs.152.02 crores. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders. Reliance Capital Asset Management Limited (RCAM) was approved as the Asset Management Company for the Mutual Fund by SEBI by their letter no. IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorized to act as Investment Manager of Reliance Mutual Fund. The net worth of the Asset Management Company including preference shares as on March 31, 2005 is Rs.113.59 crores.

COMPANY PROFILE

OLLOWING ARE SOME OF THE SCHEMES LAUNCHED BY RELIANCE MUTUAL FUND: Reliance Growth Fund (September 1995) Reliance Income Fund (December 1997) Reliance Medium Term Fund (August 2000) Reliance Gilt Securities Fund Reliance Vision Fund (September 1995) Reliance Liquid Fund (March 1998) Reliance Short Term Fund (December 2002) Reliance Banking Fund

(July 2003) Reliance Monthly Income Plan (December 2003) Reliance Pharma Fund ( May 2004) Reliance Media & Entertainment Fund (September 2004) Reliance NRI Income Fund (October 2004) Reliance Equity Opportunities Fund (February 2005) Reliance Liquidity Fund (June 2005) Reliance Fixed Tenor Fund (November 2005) Reliance Fixed Horizon Fund I (August 2006) Reliance Fixed Horizon Fund III (March 2007) Reliance Liquid Plus Fund (March 2007) Reliance Long Term Equity Fund (Nov 2006) Reliance Fixed Horizon Fund IV (August 2007) INVESTMENT OBJECTIVES a) RELIANCE MONTHLY INCOME PLAN

(May 2003) Reliance Diversified Power Sector Fund (March 2004) Reliance Floating Rate Fund (August 2004) Reliance NRI Equity Fund (October 2004) Reliance Index Fund (February 2005) Reliance Regular Savings Fund (May 2005) Reliance Tax Saver (ELSS) Fund (July 2005) Reliance Equity Fund (February 2006) Reliance Fixed Horizon Fund (April 2006) Reliance Fixed Horizon Fund II (November 2006) Reliance Long Term Equity Fund (November 2006) Reliance Interval Fund (March 2007) Reliance Fixed Horizon Fund V (September 2007)

It aims to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital.

b) RELIANCE INCOME FUND It aims to generate optimal returns consistent with moderate levels of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. c) RELIANCE MEDIUM TERM FUND It aims to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital. d) RELIANCE LIQUID FUND It aims to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. e) RELIANCE LIQUIDITY FUND It aims to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. f) RELIANCE SHORT TERM FUND It aims to generate stable returns for investors with a short term investment horizon by investing in fixed income securities of a short term maturity. g) RELIANCE GILT SECURITIES FUND It aims to generate optimal credit risk free returns by investing in a portfolio of securities issued and guaranteed by the Central Government and State Governments h) RELIANCE FLOATING RATE FUND It aims to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitized debt and Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). i) RELIANCE REGULAR SAVINGS FUND DEBT OPTION The primary investment objective of this plan is to generate optimal returns consistent with moderate level of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly investments shall predominantly be made in Debt & Money Market Instruments. j) RELIANCE REGULAR SAVINGS FUND EQUITY OPTION

The primary investment objective is to seek capital appreciation and or consistent returns by actively investing in equity / equity related securities. k) RELIANCE REGULAR SAVINGS FUND HYBRID OPTION The primary investment objective is to generate consistent return by investing a major portion in debt & money market securities and a small portion in equity & equity related instruments. l) RELIANCE GROWTH FUND It aims to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach. m) RELIANCE VISION FUND It aims to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach. n) RELIANCE EQUITY OPPORTUNITIES FUND It aims to generate capital appreciation & provide long term growth opportunities by investing in a portfolio constituted of equity securities & equity related securities.

o) RELIANCE BANKING FUND

It aims to generate continuous returns by actively investing in equity / equity related or fixed income securities of banks. p) RELIANCE DIVERSIFIED POWER SECTOR FUND It seek to generate consistent returns by investing in equity / equity related or fixed income securities of Power and other associated companies. q) RELIANCE PHARMA FUND It aims generate consistent returns by investing in equity / equity related or fixed income securities of Pharma and other associated companies. r) RELIANCE MEDIA & ENTERTAINMENT FUND It aims to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies.

s) RELIANCE INDEX FUND-SENSEX PLAN

It aims to replicate the composition of the Sensex, with a view to endeavor to generate returns, which could approximately be the same as that of Sensex. t) RELIANCE INDEX FUND-NIFTY PLAN It aims to replicate the composition of the Nifty, with a view to endeavor to generate returns, which could approximately be the same as that of Nifty. u) RELIANCE NRI EQUITY FUND AIMS It to generate optimal returns by investing in equity and equity related instruments primarily drawn from the Companies in the BSE 200 Index. v) RELIANCE EQUITY FUND The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities. w) THE MUTUAL FUND ABOUT RELIANCE MUTUAL FUND Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settler /Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee. RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBIs letter no. IMD / PSP / 4958 / 2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. MAIN OBJECTIVE OF THE TRUST To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders; To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and

To take such steps as may be necessary from time to time to realize the effects without any limitation.

SWOT ANALYSIS
A type of fundamental analysis of the health of a company by examining its strengths(S), weakness (W), business opportunity (O), and any threat (T) or dangers it might be exposed to.

1. I. STRENGTHS

Brand strategy: as opposed to some of its competitors (e.g. HSBC), Reliance ADAG operates a multi-brand strategy. The company operates under numerous well-known brand names, which allows the company to appeal to many different segments of the market.

Distribution channel strategy: Reliance is continuously improving the distribution of its products. Its online and Internet-based access offers a combination of excellent growth prospects and its retail direct business also saw growth of 27% in 2002 and 15% in 2003.

Various sources of income: Reliance has many sources of income throughout the group, and this diversity within the group makes the company more flexible and resistant to economic and environmental changes.

Large pool of installed capacities. Experienced managers for large number of Generics. Large pool of skilled and knowledgeable manpower. Increasing liberalization of government policies.

1. II. WEAKNESS

Emerging markets: since there is more investment demand in the United States, Japan and the rest of Asia, Reliance should concentrate on these markets, especially in view of low global interest rates.

Mutual funds are like many other investments without a guaranteed return: there is always the possibility that the value of your mutual fund will depreciate. Unlike fixedincome products, such as bonds and Treasury bills, mutual funds experience price fluctuations along with the stocks that make up the fund. When deciding on a particular fund to buy, you need to research the risks involved just because a professional manager is looking after the fund, that doesnt mean the performance will be stellar. Fees: In mutual funds, the fees are classified into two categories: shareholder fees and annual operating fees. The shareholder fees, in the forms of loads and redemption fees are paid directly by shareholders purchasing or selling the funds. The annual fund operating fees are charged as an annual percentage usually ranging from 1-3%. These fees are assessed to mutual fund investors regardless of the performance of the fund. As you can imagine, in years when the fund doesnt make money, these fees only magnify losses.

1. III. OPPORTUNITIES

Potential markets: The Indian rural market has great potential. All the major market leaders consider the segments and real markets for their products. A senior official in a one of the leading company says foray into rural India already started and there has been realization that the rural market is both price and quantity conscious.

Entry of MNCs: Due to multinationals are entering into market job opportunities are increasing day by day. Also India Mutual Fund majors are tie up with other financial institutions.

1. IV. THREATS

Increased Competition: With intense competition by so many local players causing headache to the current marketers. In addition to this though multinational brands are not yet established but still they will soon hit the mark. Almost 60 to 70% of the revenue is spending on the management and services. Hedge funds: sometimes referred to as hot money, are also causing a threat for mutual funds have gained worldwide notoriety for bringing the markets down. Be it a crash in the currency, stock or bond market, usually a hedge fund prominently figures somewhere in the picture.

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