Reliance SIP Insure

A Reliance Capital company

“A unique facility to Save, Grow &

Insure”

Reliance SIP Insure

What Rs 1000 p.m can get you….

A dinner for your family

Watching movie with your spouse

Buy clothes for your kids

Make you a Millionaire* & also get you free life

insurance on your SIP installments*please refer slide 3 for more details

What does it take to create wealth…

Value /Yrs 3 5 10 15

5,00,000 11,000 6,000 1,800 750

10,00,000 22,000 11,200 3,600 1,500

25,00,000 55,000 28,000 9,000 3,700

50,00,000 1,10,000 56,000 18,000 7,400

100,00,000 2,20,000 1,15,000 36,000 14,800

This is just an illustration, explaining the power of compounding concept and should not be assumed as a promise, guarantee or forecast on minimum returns and safeguard of capital. SIP does not assure a profit or guarantee protection against loss in a declining market. The calculation shows the outcome of investing a specified amount at a certain assumed rate of interest per annum.

The table shows the SIP amount required to be invested per month for achieving the target amount in the specified time period. The hypothetical rate of return on the investments is assumed at 15% p.a.

Investing Rs 1500 per month @ 15% p.a for 15 yrs makes you

a Millionaire

Most likely reasons to invest…..

Everyone has one or more of the above reasons to invest for!

Child’s Education

Child’s Marriage

Housing

Retirement

Safety

7 Successful habits of investing

Start early

Don’t time the market

Prudent Asset allocation

Invest regularly

Understand the risk reward ratio

Have a set investment objective

Invest for long term

Would you like to guess the 8th habit that we got for you?

Insure your financial goals…..

Before we know more about this product….let us understand the investment climate around us!

Value of Money over time

Impact of Inflation on monthly expenses of Rs 20,000

20,00025,526

32,578

41,579

53,066

-

10,000

20,000

30,000

40,000

50,000

60,000

Today 5 years 10 years 15 years 20 years

Period

Month

ly E

xps in

Rs

Inflation @ 5% p.a

Value of Rs 1 lac over time

100,000

78,353

61,391

48,10237,689

-

20,000

40,000

60,000

80,000

100,000

120,000

Today 5 years 10 years 15 years 20 years

Period

Val

ue

of

Mo

ney

Inflation – A Devil, we need to beat it!Inflation – A Devil, we need to beat it!

Where do people save their money?

Banks, 44.9

Postal Savings, 11.6

Life insurance, 32.8

Chit fund/NBFC, 9.4

Gold, 5.8Mutual Fund, 1.2

Real Estate, 5

Equity market, 1.1

Source: Invest India Incomes and Savings Survey 2007**

Mutual Fund as an Asset Class has a very low penetration

Its not the timing

but the time in the market which matters

Long Term Investing – Case Studies

Invest Systematically…..Invest Systematically…..

Invest Long term…

Money grows over a period of time…

Rs 1000 invested at 8%p.a every month for…

… just like a rolling snowball gathers snow & grows.

This is an hypothetical illustration to explain the concept of “Power of Compounding”. Past Performance may or may not be sustained in future.

Power of Compounding

184,166

348,345

592,947

60,000

240,000180,000

120,00073,967

-100,000200,000300,000400,000500,000600,000

5 yrs 10 yrs 15 yrs 20yrs

Period

Am

ou

nt a

fter

com

po

un

din

g

Principal Amount

It always pays to start early & save for retirement

B holds for 20 years

A holds for 30 years

A & B invest Rs. 2000 every month, earning interest @ 8% p.a. on a monthly compounding basis

A starts at the age of 25 yrs, while B starts investing at the age of 35 yrs Both of them invest for 5 yrs ( Rs. 1.2 lacs) and hold their investments till 60 yrs. of

age A’s investment appreciated to over Rs.14,88,603 while B’s investment grew to only

Rs. 6,89,511

Only an illustration to explain the power of compounding.

Start Early

120,000 120,000

1,488,603

689,511

-

500,000

1,000,000

1,500,000

A B

People Who have invested

Am

ou

nt

at t

he

Ag

e o

f 60

& Don’t Time the Market…

Scenarios Investor buys at Market Peaks

Investor buys at Market Lows

Investor buys at constant interval

BSE Sensex 12.64% 18.99% 15.30%

BSE 100 13.32% 20.33% 16.48%

Reliance Growth Fund-Retail Plan- Growth Plan – Growth Option* (RGF)

33.01% 38.31% 34.75%

Rs 10,000 invested every year for a period of 12 years in RGF from Jan 96 to June 08

Past Performance may or may not be sustained in future.

*Returns as on 30th June 08

Past Performance of SIP in

Reliance Growth Fund

RGF

BSE 100

Inception Date: 8th Oct 1995. Returns are of Retail Plan- Growth Plan – Growth option as on 30th June 08

Past Performance may or may not be sustained in future.

The above table shows the historical SIP performance of Reliance Growth Fund (Retail Plan – Growth Plan – Growth

option) vis its benchmark BSE 100.

For example; A person who had made an SIP of Rs 10,000 p.m in the above fund since inception on 8 th Oct 1995 would

have invested Rs 15.30 lacs by 30th June 08 and have earned a total amount of Rs 1.81 crs (As per the highlighted cell)

SIP Installment /Yrs 3 5 10 Since Inception

1,000

43,410 135,304 944,707 1,811,655

40,056 98,734 340,658 488,893

3,000

130,230 405,914 2,834,120 5,434,964

120,169 296,202 1,021,974 1,466,680

5,000

217,051 676,524 4,723,534 9,058,273

200,282 493,670 1,703,289 2,444,467

10,000

434,102 1,353,048 9,447,067 18,116,545

400,565 987,340 3,406,579 4,888,933

15,000

651,153 2,029,572 14,170,601 27,174,818

600,847 1,481,010 5,109,868 7,333,400

Simple, straightforward way to create long term wealth

Understand and embrace risk

Put time on your side

Invest systematically

Don’t worry about market timing

A tried & tested method2Make the right choice….

The alternative is to :

Follow markets very closely

Time your entry and exit very

well

Select your stocks judiciously

And hope that you get it right

more

often than not!

The choice is yours to make………..1

Systematic Investment Plan (SIP) & its benefits

Inculcates savings habit

Eliminates need for timing

markets

Helps averaging cost of investment

Protects against market

volatility

Improves probability

of better returns

SIP is a long term investment technique under which you invest a fixed sum of money

on a monthly or quarterly basis in a mutual fund scheme at the prevailing NAV.

This allows you to save and invest regularly while you are earning.

Are you looking at investing for the long

term??

Do you want a free life insurance

cover??

Do you want an investment

technique which can make you invest

regularly??

Do you want your planned investments to be completed after your

unforeseen death??

thenChoose Choose

Reliance SIP Reliance SIP InsureInsure

Here comes the most sought after product……..

“A unique facility to Save, Grow & Insure”

Investor Benefits- “Save, Grow & Insure”

Inculcates savings habit

Free Life Insurance Cover-

Enjoy Insurance on SIPs

Eliminates need for timing markets

Helps averaging cost of investment

Ensuring that the planned investments are completed

Market Linked NAV based maturity

proceedsWhy Reliance SIP Insure ?

An add-on feature of life insurance cover under a Group Term Insurance provided to

individual investors with a view to encourage individual investors to save and invest regularly

through Systematic Investment Plan (SIP) and help them achieve their financial objective

without any extra cost.

Objective:

In the unfortunate event of the demise of an investor during the tenure of the SIP, the

insurance cover will take care of the unpaid installments.

Thus, the nominee* would be able to continue in the scheme without having to make any

further contribution. Investor’s long term financial planning and objective of investing through

SIP could still be fulfilled as per the targeted time horizon, even if he/she dies prematurely.

Reliance SIP Insure- What is it?

*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding

Minimum Investment per installment : Rs.1000 per month. (Except for Reliance Tax Saver (ELSS) Fund

where it is Rs 1000 p.m and in multiples of Rs 500 thereafter). There is no upper limit.

Minimum Period of Contribution : 3 years and in multiples of 1 month thereafter.

Maximum Period of Contribution : 15 years OR till attaining 55 years of age, whichever is

earlier (e.g., a person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The

insurance cover ceases when the investor becomes 55 years of age.

Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated

Cheques shall not be accepted )

Reliance SIP Insure – Product Features

Eligibility

All individual investors enrolling for investments via SIP and opting for ‘Reliance SIP

Insure’ Only individual investors whose completed age at entry is greater than 20 years and

less than 46 years. In case of multiple holders in the any scheme, only the first unit holder will be

eligible for the insurance cover.Investment Details

Load Structure

The Entry Load under Reliance SIP Insure shall be same as applicable to normal purchase

/additional purchase transactions.

However, there will an Exit Load of 2%, if the accumulated units acquired or allotted under

Reliance SIP Insure are redeemed or switched out to another scheme before the maturity of

SIP tenure as opted in the respective scheme either by the SIP-Insure unitholder or by the

nominee, as the case may be.

In the event of the death of the unitholder, if the Nominee chooses to redeem the outstanding

balance of units before completing the opted SIP tenure the repurchase of units shall be

subject an exit load of 2%

However, if the units are redeemed on completing the opted SIP tenure, there will not be any

exit load in the respective scheme.


Commencement of Insurance Cover: The Insurance cover shall commence after “waiting

period” of 90 days from the commencement of SIP installments. However the waiting period will

not be applicable in respect of accidental deaths.

Amount of Life Insurance Cover Available

The Life Insurance Cover under ‘SIP Insure’ facility will be revised as per the following

clauses; In the event of death of unit holder within the 1st two years of the commencement of the

insurance cover: An amount equivalent to the aggregate balance of unpaid SIP instalments,

subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios. In the event of death of the unit holder after completion of 2 years (i.e. w.e.f.

commencement of 3rd year onwards): An amount equivalent to two times the targeted SIP

contribution (committed at the time of registration) i.e. Number of SIP Instalments enrolled for

X Amount of Instalment X 2, subject to a maximum of Rs.10 lakhs per investor across all

schemes / plans and folios.

Thus, the amount of free life insurance cover could go upto 360 times of the monthly SIP

installment depending upon the enrolled SIP tenure.


The Life Insurance amount will be invested in the Nominee’s account, in the same scheme*

under which the deceased investor has enrolled for SIP. The investment will be at the applicable

price based on the closing NAV on the date on which the cheque for insurance claim settlement

is received by the AMC from the insurance company, subject to completion of requisite

procedure for transmission of units in favour of the nominee.

* Not applicable for Reliance Tax Saver (ELSS) Fund. For Reliance Tax Saver (ELSS) Fund;

Investors are requested to note that there will be a lock - in period of 3 years for each SIP

Insure installment under ‘Reliance Tax Saver (ELSS) Fund’ as per the Government

Notification of 2005 and in the event of demise of the unitholder, the nominee would be able

to withdraw the investment amount only after the completion of one year from the date of

allotment of the units or anytime thereafter without any exit load.

The insurance amount as per the above clauses a) and b) (as per earlier slide) subject to a

maximum of Rs. 10 lakhs in a lumpsum in cash will be paid to the nominee in case of death

of the unitholder (unlike other schemes, wherein the insurance amount will be compulsorily

invested in the respective scheme and the nominee is allotted the units.)


This amount will be paid by life insurance company to SIP investor’s nominee account * with

Reliance Mutual Fund and will be invested in Reliance Growth Fund (in the same scheme in

which the deceased has earlier invested)

Reliance SIP Insure–How does this work?

An investor does a monthly SIP of Rs. 5,000 for 5 years in Reliance Growth Fund

If he dies after a period of 3 yrs, then his

Sum Assured= Number of SIP Instalments enrolled for X Amount of Instalment X 2

= 60 X 5,000 X 2 = Rs 3 lacs X 2

= Rs 6,00,000

*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding


One can aim to have a target insurance cover from 3rd year onwards as per one’s requirement by referring to the matrix attached below

Cells in yellow would not be applicable under Minimum SIP amount category under Reliance SIP Insure Facility

The table shows the SIP amount per month to be invested for the required combination of Eligible Insurance

Cover & Tenure. For example, to have a maximum cover of Rs 10 lacs from third year onwards (from

commencement of the insurance cover) in Reliance SIP Insure Facility, one can invest Rs 2800 p.m for a period

of 15 yrs as per the cell highlighted in pink.

Life Insurance Cover/Yrs 3 5 10 15

1,000,000 13,900 8,350 4,500 2,800

900,000 12,500 7,500 3,750 2,500

800,000 11,150 6,700 3,350 2,250

700,000 9,750 5,850 2,950 1,950

600,000 8,350 5,000 2,500 1,700

500,000 7,000 4,200 2,100 1,400

400,000 5,600 3,350 1,700 1,150

300,000 4,200 2,500 1,250 850

200,000 2,800 1,700 850 560

100,000 1,400 850 425 280

If the aggregate total of SIP installments remaining unpaid under all schemes is less than

or equal to Rs. 10 Lakhs, then the life insurance cover shall be equal to the actual unpaid

balance in the respective schemes. If the aggregate total of SIP installments remaining unpaid under all schemes is greater

than Rs. 10 Lakhs & all the SIPs start on the same date, then the life insurance cover shall

be equal to Rs. 10 Lakhs, which shall be allocated / invested proportionately in the

respective scheme folios. If the aggregate total of SIP installments remaining unpaid under all schemes is greater

than Rs. 10 Lakhs & all the SIPs start on the different dates, then the life insurance cover

shall be equal to Rs. 10 Lakhs, which shall be allocated / invested on First in First out

basis in the respective scheme folios.


Eligible schemes Reliance Growth Fund - Retail Plan Reliance Vision Fund - Retail Plan Reliance Equity Opportunities Fund - Retail Plan Reliance Equity Fund - Retail Plan Reliance Equity Advantage Fund- Retail Plan Reliance Regular Savings Fund – Equity option Reliance Regular Savings Fund – Balanced option Reliance Banking Fund- Retail Plan Reliance Pharma Fund Reliance Media & Entertainment Fund Reliance Diversified Power Sector Fund – Retail Plan Reliance Natural Resources Fund- Retail Plan Reliance Quant Plus Fund – Retail Plan Reliance Tax Saver (ELSS) Fund


The insurance cover shall cease upon occurrence of any of the following:

At the end of mandated Reliance SIP Insure tenure, i.e., upon completion of payment of all

the monthly installments as registered.

Discontinuation SIP installments midway by the investor i.e., before completing the opted

SIP tenure /installments.

Redemption / switch-out of units purchased under Reliance SIP Insure before completion

the mandated SIP tenure / installments

In case of default in payment of two consecutive monthly SIP installments or four separate

occasions of such defaults during the tenure of the SIP duration chosen.

Reliance SIP Insure – Expiry of the policy

No insurance cover shall be admissible in respect of death of the SIP-Insure unitholder (the

insured person) on account of -

Death due to suicide

Death within 90 days from the commencement of SIP installments except for death due to

accident.

Death due to pre-existing illness, disease(s) or accident which has occurred prior to the

start of cover.

Reliance SIP Insure –

Exclusions for Insurance cover

It is mandatory for each investor to sign and submit the following documents under this

facility;

Application Form

ECS/ Direct Debit Form

Personal Statement of Health

Authorization Mandate (which forms a part of application form)

Reliance SIP Insure – Documentation

For our existing investors there is no need to give the first SIP cheque

Invest India Incomes and Savings Survey 2007

**The Survey consisted of two components:

1. Complete household listing (over one million households) from randomly selected 1815 wards covering

852 towns and 931 villages, and

2. 96,088 representative individual respondent interviews (urban sample 72,979 respondents and rural

sample of 23,109 respondents) carried out in the same locations.

Respondents were drawn mainly from earning members of the Indian workforce who derive cash incomes

from salaries, wages, profits and earnings from self employment and business activities (approximately

321 million persons nationally).

The 321 million figure is the base figure from which they have done about over a million households and

96,088 in depth interviews.

Data Source for this presentation

•This presentation is drawn from the data of the Invest India Incomes and Savings Survey which was

completed in June 2007.

•This is based on in-depth interviews with 1 lakh respondents aged 18-59 yrs with cash incomes and

supported by a household listing sample of 1 million.

•The figures projected refer to the 321 million paid work force of India in the presentation.

Source: IIMS Data Works survey

Sponsor: Reliance Capital Limited Trustee: Reliance Capital Trustee Co. Limited. Investment Manager: Reliance Capital Asset Management Limited. Statutory Details: The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. Risk Factors: Reliance Growth Fund (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. Reliance Vision Fund (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. Reliance Equity Opportunities Fund (Open-ended Diversified Equity Scheme): 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 securities & equity related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Equity Fund (An open-ended Diversified Equity Scheme): 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. Reliance Equity Advantage Fund (Open ended Diversified Equity Scheme): The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio predominately of equity & equity related instruments with investments generally in S & P CNX Nifty stocks and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Regular Savings Fund (An open ended Scheme) Equity Option: The primary investment objective of this Option is to seek capital appreciation and/or to generate consistent returns by actively investing in equity / equity related securities. Balanced Option: The primary investment objective of this Option is to generate consistent return by investing a major portion in debt & money market securities & a small portion in equity & equity related instruments. Reliance Pharma Fund (Open-ended Pharma Sector Scheme): The primary investment objective of the scheme is to seek to generate continuous returns by investing in equity and equity related or fixed income securities of Pharma and other associated companies. Reliance Diversified Power Sector Fund (Open-ended Power Sector Scheme): The primary investment objective of the scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of Power and other associated companies. Reliance Media & Entertainment Fund (Open-ended Media & Entertainment Sector Scheme): The primary investment objective of the scheme is to generate continuous returns by investing in equity and equity related or fixed income securities of Media & Entertainment and other associated companies. Reliance Banking Fund (Open-ended Banking Sector Scheme): The primary investment objective of the scheme is to generate continuous returns by actively investing in equity and equity related or fixed income securities of Banks. Reliance Natural Resources Fund (An Open Ended Equity Scheme): The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in companies principally engaged in the discovery, development, production, or distribution of natural resources and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Tax Saver (ELSS) Fund (Open-ended Equity Linked Savings Scheme): The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. Reliance Quant Plus Fund (An open - ended equity scheme): The investment objective of the Scheme is to generate capital appreciation through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation by investing in an active portfolio of stocks selected from S & P CNX Nifty on the basis of a mathematical mode. Mutual Funds and securities investments are subject to market risks and there is no assurance and no guarantee that the Schemes objectives will be achieved. As with investments in any securities, the NAVs of the units issued under the Scheme can go up or down depending on the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of future performance of the Scheme. Reliance Growth Fund, Reliance Vision Fund, Reliance Equity Opportunities Fund, Reliance Equity Fund, Reliance Equity Advantage Fund, Reliance Regular Savings Fund, Reliance Banking Fund, Reliance Pharma Fund, Reliance Media & Entertainment Fund, Reliance Diversified Power Sector Fund, Reliance Natural Resources Fund, Reliance Tax Saver (ELSS) Fund and Reliance Quant Plus Fund are only the names of the scheme and do not in any manner indicate either the quality of the Scheme, its future prospects or returns. The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes beyond their initial contribution of Rs.1 lac towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. The NAV of the Schemes may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The Mutual Fund is not guaranteeing or assuring any dividends/ bonus. The Mutual Fund is also not assuring that it will make periodical dividend/ bonus distributions, though it has every intention of doing so. All dividend/ bonus distributions are subject to the availability of distributable surplus in the respective Scheme. For details of scheme features and scheme specific risk factors please refer to the scheme Offer Documents / Scheme Information Documents. Offer Document/Scheme Information Document and KIM cum application form is available at all the DISCs/ Distributors of RMF/www.reliancemutual.com. Please read the offer document(s) /Scheme Information Document(s) of the respective schemes carefully before investing.

A Reliance Capital company

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