STRUCTURE – RELIANCE MUTUAL FUND

B Y

G A G A N P A R E E K P A R V E Z R A N G W A L A

S A I N A T T H W A G H

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MUTUAL FUND ?

“A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each share represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate “

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RELIANCE MUTUAL FUND

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• India’s leading Mutual Fund• Average Assets under Management: 1,02,179 Cr• Investor Count : 73 Lakh Folios• Presence in 159 Cities across country• 14 years of extensive market experience, 35

schemes combined with a strong performance track record.

• - AMFI Website, 2010

CONSTITUTION AND MANAGEMENT

AMCTrustSponsor

Reliance Capital Limited (RCL)

Reliance Capital Trustee Co. Ltd

(RCTC)[Trustee]

Reliance Mutual Fund (RMF)

[Name of Fund House]

Reliance Capital Asset Management

Limited Net Worth : 841.32

CrReliance Mutual Fund

[Trust]

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47 FUNDS RCAM

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Reliance Growth Fund (September 1995)

Reliance Vision Fund (September 1995)

Reliance Fixed Horizon Fund VI (December 2007)

Reliance Liquidity Fund (June 2005)

Reliance Income Fund (December 1997)

Reliance Liquid Fund (March 1998)

Reliance Fixed Horizon Fund VII (January 2008)

Reliance Interval Fund (March 2007)

Reliance Medium Term Fund (August 2000)

Reliance Short Term Fund (December 2002)

Reliance Fixed Horizon Fund IX (March 2008)

Reliance Equity Advantage Fund (June 2007)

Reliance Fixed Term Scheme (March 2003)

Reliance Banking Fund (May 2003)

Reliance Fixed Horizon Fund X (August 2008)

Reliance Fixed Horizon Fund V (September 2007)

Reliance Gilt Securities Fund (July 2003)

Reliance Diversified Power Sector Fund (March 2004)

Reliance Fixed Horizon Fund XII (November 2008)

Reliance Fixed Horizon Fund IV (August 2007)

Reliance Monthly Income Plan (December 2003)

Reliance Floating Rate Fund (August 2004)

Reliance InfrasReliance Equity Linked Saving Fund - Series I (December 2007)

Reliance Fixed Horizon Fund (April 2006)

Reliance Pharma Fund ( May 2004)

Reliance NRI Equity Fund (October 2004)

Reliance Natural Resources Fund (January 2008)

Reliance Fixed Horizon Fund II ( November 2006)

Reliance Media & Entertainment Fund (September 2004)

Reliance Index Fund (February 2005)*

Reliance Fixed Horizon Fund VIII (March 2008)

Reliance Long Term Equity Fund (November 2006)

Reliance NRI Income Fund (October 2004)

Reliance Fixed Maturity Fund – Series I (March 2005)

Reliance Banking Exchange Traded Fund (May 2008)

Reliance Equity Fund (February 2006)

Reliance Equity Opportunities Fund (February 2005)

Reliance Regular Savings Fund (May 2005)

Reliance Fixed Horizon Fund XI (October 2008)tructure Fund (June 2009)

Reliance Fixed Tenor Fund (November 2005)

Reliance Fixed Maturity Fund – Series II (April 2005)

Reliance Tax Saver (ELSS) Fund (July 2005)

Reliance Gold Exchange Traded Fund (October 2007)

Reliance Fixed Horizon Fund I (August 2006)

Reliance Fixed Horizon Fund III (March 2007)

Reliance Money Manager Fund (March 2007)

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TRUSTEE

Registered Office: Corporate Office :

EO1, Reliance Greens,Village Motikhavdi,P.O. Digvijaygram,District Jamnagar - 361140(GUJARAT)

Express Building (4th & 6th Floor),14, 'E' Road, Churchgate,Opp. Churchgate Station,Mumbai 400 020.Tel. 022 – 3041 4800,

Reliance Capital Trustee Co. Limited (RCTC), a company incorporated under the Companies Act, 1956, has been appointed as the Trustee to the Fund vide the Trust Deed dated April 25, 1995 executed between the Sponsor and the Trustee.

For Eg: OD says that RCTC has been appointed as the Trustee to “Reliance India Power Fund”, a Venture Capital Fund registered with the SEBI vide registration number IN/VCF/05-06/062 dated June 16, 2005

An application has also been filed for registration of “Reliance Venture Capital Fund” with SEBI.

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AMC

Registered Office: Corporate Office :

EO1, Reliance Greens,Village Motikhavdi,P.O. Digvijaygram,District Jamnagar - 361140(GUJARAT)

Express Building (4th & 6th Floor),14, 'E' Road, Churchgate,Opp. Churchgate Station,Mumbai 400 020.Tel. 022 – 3041 4800,

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BANKERS TO RCAM

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• ABN Amro Bank • Axis Bank • Citibank N. A. • Deutsche Bank AG • Development Bank of

Singapore • HDFC Bank Limited • HSBC Bank • ICICI Bank Limited • IDBI Bank • Ing Vysya Bank • Kotak Mahindra Bank • State Bank of India • Standard Chartered Bank • Yes Bank

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STRUCTURE OF AMC

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CEO Mr. Sudeep Sikka

Head Equity Investments

Mr. Madhusudan

Kela

Equity Fund Managers

Head Fixed Income

Mr. Amitabh Mohanty

Debt Fund Managers

Board

of

Dire

ctors

ROLE OF AMC

Transparency

Liquidity

Flexibility

Decision Making

Valuation

Drafting of Structure of Scheme

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CEO of AMC ensures fund complies with SEBI norms and investments made are in norms of Fund objectives as in OD

Investment decisions made in interest of unit holders.

Fund Managers ensure that investments are made in the interest of Unit holders and as per the norms and objectives of FOD

AMC shall not utilize the services of Sponsor for purchase of new securities

AMC reports data to both SEBI and Trustees.

The RCAM shall not invest in any of its schemes unless full disclosure of its intention to invest has been made in the offer documents

Decision are taken by team comprising of

Fund Managers Investment Committee

Based on Research Report Market Intelligence Analysis of Macro and Micro

economic indicators Market Trends

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DUTIES AND OBLIGATIONS OF THE AMC

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a) RCAM will be responsible for making, floating, issuing Schemes for the Trust after approval of the same by the Trustees and SEBI as well as investing and managing the funds mobilized under various Schemes, in accordance with the provisions of the Trust Deed and SEBI Regulations.

b) RCAM must disclose the basis of calculating the repurchase/redemption price and Net Asset Value of the various Schemes of the Fund to the investors, at such intervals as may be specified by SEBI and/or the Trustees and in accordance with the SEBI Regulations.

c) RCAM must maintain books and records about the operation of various Schemes of the Fund to ensure compliance with the Regulations and guidelines for Mutual Funds as may be issued by SEBI from time to time, and shall submit a Scheme wise quarterly report on functioning of the Fund to the Trustee or at such intervals and in such manner as may be required or called for by the Trustee or SEBI.

d) RCAM shall exercise all due diligence and vigilance in carrying out its duties and in protecting the rights and interest of the

unit holders.

e) RCAM will at all times ensure that the Trust Fund is segregated from assets of RCAM and assets of any other funds for which RCAM is responsible.

f) RCAM shall submit to the Trustee all information concerning the operation of the various Schemes of the Fund managed by RCAM at such intervals and in such manner as required by the Trustee to ensure that RCAM is complying with the provisions of the Trust Deed and SEBI Regulations.

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IMA AND DUTIES OF RCAM

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Trustee main duties before Fund Launch:

(i) Systems in place for its back office, dealing room and accounting

(ii) Appointed all key personnel including fund manager(s) for the Scheme(s) and submitted their bio-data which shall contain the educational qualifications, past experience in the securities market to SEBI, within 15 days of their appointment;

(iii) Appointed Auditors to audit its accounts;

(iv) Appointed a Compliance Officer to comply with regulatory requirement and to redress investor grievances;

(v) Appointed Registrars and laid down parameters for their supervision;

(vi) Prepared a compliance manual and designed internal control mechanisms including internal audit systems; and

(vii) Specified norms for empanelment of brokers and marketing agents.

The Trustees shall obtain the consent of the unit holders of the Scheme:

(i) Whenever required to do so by SEBI in the interest of the unit holders;

(ii) Whenever required to do so, on the requisition made by three-fourths of the unit holders of any Scheme under the Mutual Fund;

(iii) When the majority of the Trustees decide to wind up the Scheme or prematurely redeem the Units

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DUTIES AND OBLIGATIONS OF THE TRUSTEES

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1. Trust Deed

2. Right to Obtain Information from AMC

3. Monitors broker and AMC transactions

4. Ensures AMC works as per SEBI regulations, 1996

5. Informs SEBI for 1 Lac Plus transactions

6. Informs Unit holders and SEBI for change in structure and load if situation demands change1. Unit holders are given a option to Exit 2. Change is advertised in Leading Newspaper

7. Periodically review service contracts like Custodian documents

8. Periodically Review Customer Complaints and Review.

9. Appoint Statutory Auditors and have one Independent Director

10.Due Diligence

11. Signs the IMA with the AMC

12. Keeps a check on Vacant Positions and nominates individual.

13.Prescribe and adhere to a code of ethics by the Trustees, Asset Management Company and its personnel. 13

DUTIES AND OBLIGATIONS OF THE TRUSTEES

THE CUSTODIAN

Trustee has appointed Deutsche Bank as Custodian

Duties of Custodian: Provide post-trading and custodial services to the Mutual Fund; Keep securities and other instruments belonging to the Scheme in safe

custody; Ensure smooth inflow/outflow of securities and such other instruments as

and when necessary, in the best interests of the unit holders Be responsible for loss of or damage to the securities due to negligence on

its part or on the part of its approved agents.

The Custodian will charge the Mutual Fund, portfolio fee, transaction fee and out-of -pocket expenses in accordance with the terms of the Custody Agreement and as per any modification made thereof from time to time.

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THE REGISTRAR

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•RCAM has appointed M/s. Karvy Computershare Pvt. Limited

•As Registrar to the Scheme KCPL will accept and process investor's applications handle communications with investorsperform data entry services Dispatch Account Statementsother functions as agreed, on an ongoing basis.

•The Registrar is responsible for carrying out diligently the functions of a Registrarand Transfer Agent and will be paid fees as set out in the agreement entered into with it and as per any modification made thereof from time to time.

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FEES

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AMC Fees : In terms of the Investment Management Agreement and the Regulations, the AMC is entitled to a management and advisory fee at the rate of 1.25% of the average daily net assets for net assets up to Rs.100 crore and at the rate of 1.00% for the net assets in excess of Rs.100 crore. For Schemes launched on a No- Load basis, the AMC is entitled to collect and additional management fee of up to 1% of the average net assets outstanding in each financial year and the total management fee shall not exceed the limit stated under the Regulation 52(6) of SEBI.Trust Fees: Pursuant to the Trust Deed constituting the Fund, the Fund is authorized to pay the Trustee, a fee for their services, in addition to the reimbursement of all costs, charges and expenses, sum computed at the rate of 0.05% of the amount, being the aggregate of the Trust Fund and Unit Capital of all the Schemes put together on 1st April each year or a sum of Rs.5Lacs, which ever is lower or such other sum as may be agreed upon between the Settler and the Trustee from time to time. The Trustee may charge further fees as permitted from time to time under the Trust Deed and the Regulations.

SPONSOR LOSS PROTECTION

RCL contributes Rupees One Lac as the initial contribution to the corpus for the setting up of the Mutual Fund.

RCL is responsible for discharging its functions and responsibilities towards the Fund in accordance with the SEBI Regulations.

The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the contribution of an amount of Rupees one lakh made by them towards the initial corpus for setting up the Fund and such other accretions and additions to the corpus

DUTIES AND OBLIGATIONS OF INVESTOR

Study of Offer Document

In case of dividend declaration, investors have a right to receive the dividend within 30 days of declaration

On redemption request by investors, the AMC must dispatch the redemption proceeds within 10 working days of the request.

Investors can obtain relevant information from the trustees and inspect documents like trust deed, investment management agreement, annual reports, offer documents, etc. They must receive audited annual reports within 6 months from the financial year end.

Investors have a right to be informed about changes in the fundamental attributes of a scheme. Fundamental attributes include type of scheme, investment objectives and policies and terms of issue.

Investors can approach the investor relations officer for grievance redressal

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MUTUAL FUND CYCLE

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Investors

Fund manage

r

Securities

Returns

MUTUAL FUND OPEARATION

PRODUCTDESIGN

PRODUCTMARKETING

FUNDMANAGEMENT

OUTSOURCING

INVESTOR’SSERVICE

THE CHAIN OFOPERATION

MUTUAL FUND OPERATION

PRODUCT DESGIN

INNOVATIONSUPERIOR DESIGNADAPATABILITY

PRODUCT MARKETING

COSTAGGRESSIVE MARKETINGUPFRONT COST

FUND MANAGEMENT

CAPITAL PROTECTIONMARKET TIMINGASSET QUALITY

OUTSOURCING

COST CONTROLFLEXIBILITYCHOICE

INVESTOR SERVICE

CUSTOMER FOCUSBETTER CONFIDENCEEFFICIENT SERVICE

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TYPES OF MUTUAL FUNDS

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Type of Mutual Fund

Schemes

Structure

Open Ended Funds

Close Ended Funds

Investment Objective

Growth Funds

Income Funds

Balanced Funds

Money Market Funds

Special Schemes

Industry Specific

Schemes

Index Schemes

Sectoral Schemes

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Thank You