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Reliance Regular Saving Fund

The Reliance Regular Saving Fund is an open-ended mutual scheme offered by Reliance AMC. This scheme is suitable for potential investors across all investment categories. At present, each option of this mutual fund scheme has been renamed w.e.f. April 28, 2018 as –

  • Reliance Value Fund (formerly known as Reliance Regular Savings Fund - Equity Option)

  • Reliance Equity Hybrid Fund (formerly known as Reliance Regular Savings Fund - Balanced Option)

  • Reliance Credit Risk Fund (formerly known as Reliance Regular Savings Fund - Debt Option)

As a result of the availability of these three variants, this mutual scheme option is suitable for all potential investors irrespective of their risk profile.

Types of Reliance Regular Savings Scheme

Reliance Value Fund (formerly known as Reliance Regular Savings Fund - Debt Option) NAV on 19 Oct 2018, INR65.2984

Returns-
2 Years4.8
3 Years6.2
5 Years7.5

This scheme is meant to deliver capital appreciation and to bring regular returns based on active investments in equity related securities. Largely, towards value stocks. Reliance Equity Hybrid Fund (formerly known as Reliance Regular Savings Fund - Balanced Option) INR53.5681NAV as on September 28, 2018

Returns-
1 Year-4.0
3 Year6.5
5 Year7.8

The main investment aim of this scheme is to deliver returns and capital appreciation investments into a mix of securities such as equity, and related instruments via fixed income instruments. Reliance Credit Risk Fund (formerly known as Reliance Regular Savings Fund - Debt Option)

INR 24.767 NAV as on 19 Oct, 2018

Returns-
1 Year4.8
2 Year6.2
3 Year7.5

The major investment objective of the scheme is to deliver good returns at minimal risk levels. This flow can be backed by appreciation in the capital of this portfolio. Similarly, investments should go towards debt & money market issues.

Features of the Reliance Regular Liquid Fund

Minimum Investment

The smallest investment sum in this scheme is INR 500 and after this, it multiplies the same amount of INR 500 as the amount suitable for initial investment. The smallest SIP investment amount feasible on this scheme starts from INR 500 onwards with multiples of INR 1 in increment after the initial fund is managed.

Risk

The level of risk applicable to this investment varies from moderately high to low depending on which Reliance Regular Savings Scheme variant the investment has gone in. This means that the equity option has moderately higher risk, debt option will feature low risk and the hybrid option will feature moderate level of risk.

Compatibility

The investment front from Reliance AMC is considered great for long-term capital growth through investment in equity/equity-related instruments, debt/debt-related instruments and a balance between equity-debt investments.

Initiation

The Reliance Regular Savings Scheme was established on the 9th of June 2005. Thus, it has a proven track record of over a decade, which makes it a relatively safe choice for potential investors seeking to grow their wealth.

Tax

Depending on whether the equity, debt or balanced (hybrid) option is chosen, the taxation rules for the Reliance Regular Savings Scheme will vary. In the situation of the equity option, in situation of the investment is held for at least 1 year, no capital gains taxes will apply. In the situation of debt or hybrid option, the minimum holding period is 3 years to prevent any capital gains taxes being levied at the time of redemption. In the situation when the holding period is less than what is mentioned above, taxes are applied as per the applicable income tax slab rate of the investor.

Scheme Management

The current scheme manager for each of the Reliance Regular Savings Scheme :

Reliance Value Fund (formerly known as Reliance Regular Savings Fund - Equity Option) is managed by Ms. Meenakshi Dawar Reliance Equity Hybrid Fund (formerly known as Reliance Regular Savings Fund - Balanced Option) is managed by Mr. Amit Tripathi | Mr. Sanjay Parekh Reliance Credit Risk Fund (formerly known as Reliance Regular Savings Fund - Debt Option) is managed by Mr. Prashant Pimple

Entry Load

This open-ended scheme is not subject to an entry load when the investor subscribes to any of the variants of the scheme.

Exit Load

This is the amount that the AMC charges at the time of recovery of the investor’s investment in the Reliance Regular Savings Scheme. In the situation when the investment is redeemed with a one-year period of making the initial investment, a 1% exit load is applicable on the redeemed amount. Additionally, the exit load is zero in the situation of the investment in Reliance Regular Savings Fund is redeemed after completion of the 1-year time period counted from the day the investment was processed.

An Overview

Reliance Equity Hybrid Fund (formerly known as Reliance Regular Savings Fund - Balanced Option)

Being a debt-oriented scheme option, which provides steady growth along with minimal risk and next to no exposure to equities. The main areas of investment in the debt option scheme comprise of debt and related securities, cash, call, money market instruments.

Reliance Value Fund (formerly known as Reliance Regular Savings Fund - Equity Option)

As this option is primarily invested in equities and equity-linked options traded in the stock market, the major chunk comprises of equity investments made by the scheme. Much smaller amounts are invested in other investments like money market schemes, cash/call, other mutual schemes, etc.

Reliance Equity Hybrid Fund (formerly known as Reliance Regular Savings Fund - Balanced Option)

The balanced option of Reliance Regular Savings Scheme is designed to provide a moderately high level of capital appreciation while maintaining a commensurate level of risk. To this end, the scheme follows the strategy of diversified investments in equity/equity–linked investments, debt/debt instruments, money market schemes, cash/call derivatives as well as mutual scheme.

How to invest?

Investing in a Reliance AMC mutual scheme of your choice is easy . One may initiate the transaction within minutes with the easy to use eKYC system under Aadhaar. Once you have your account up and running, you can easily set up immediate or scheduled transactions in the Reliance mutual schemes of your choice. It is simple to make comparison of your Reliance mutual scheme with those given by various other AMCs as per the key criteria such as 1 year, 3 year and 5-year yearly returns, risk level and type of scheme option – equity, hybrid or debt. One may quite simply make complete investment of your liking using net banking and get your units allocated automatically based on the applicable NAV.

FAQs on Reliance Regular Saving Fund

Can I invest in Reliance Regular Savings Scheme?

Yes. The scheme’s performance has been good and you could invest in this scheme for the long run.

Is Reliance Regular Savings Scheme profitable

Reliance Regular Savings Scheme is over a decade old scheme with about 20 per cent annualised returns over the past three years. The investment objective of this scheme is to generate consistent returns by investing a major portion in equity and a small portion in debt and money market instruments. It will invest up to 50 per cent of its assets in equities and equity related securities and at least 25 per cent of its assets in debt and money market instruments that mature in 1 to 7 years on an average.

Is it a good idea to change to Reliance Regular Savings Scheme?

Yes. The scheme aims to generate consistent returns by investing in equity or equity related securities. It will invest at least 80% of its assets in equity and equity related securities.

Up to 20% of its assets will be invested in debt and money market instruments with an average maturity of 5 to 10 years. The direct fallout of the aggressive churn strategy that the scheme adopts is that the market cap keeps changing. My reliance ELSS tax saving mutual scheme is in correction mode for the past 4 months. Is this good? Don’t judge the scheme by its 1-month performance since the whole market has been down. While it might be disappointing for you to lose your hard-earned money, but remember these golden rules of equity investments.

  • All equity investments should be held for a long term (5 years or more).

  • They can give negative returns in the short term.

  • You can make losses in the short term.

  • The longer you hold your equity investments, the lower is the probability of loss.

  • Higher the risk the scheme takes, higher will be its returns and higher can it fall.

Reliance Tax saver is a good scheme and one of the top performing one. So, relax and stay calm. If after even 6 months you feel it’s not performing well especially when others are, then you could consider taking some action.

Should I invest for 5 years in Reliance Mutual Scheme?

Investment in this scheme should be made for a long duration i.e. investment should be made for more than 3 years. Investments that go into equity and small segment set aside as cash for liquidity purpose is more than 90%. Around 50% investment goes into small-capital stocks, another 40% goes to mid capital and remainder goes to large-capital stocks. With diversified investments along a variety of segments, the majority goes towards consumer goods, Industrial Manufacturing and Financial Services. 3 to 5 year return are above the benchmark, making this good as a long-term investment option.

Which is a better? Saving Mutual Scheme or Reliance Regular Savings Scheme?

Reliance regular savings scheme is the better growth plan. This is considering the amazing returns that it has delivered since its initiation, making it a good option for investors seeking regular income out of their lumpsum investment in the balanced funds and therefore operating upon moderate risk.

I want to invest in SIP INR 5000/- per month in Reliance Regular Savings Scheme. Is it worth?

Reliance Tax Saver is a star performer of the previous 3 years. The scheme is a good pick for tax saving purpose for aggressive potential investors as it has higher exposure to small and mid-cap stocks. And due to the same reason if it falls down, it will fall down aggressively, so it’s better to go according to your risk appetite. We suggest you check out Axis Long Term Equity Scheme - Direct Growth. This scheme too has performed amazingly and one can expect above average returns with lesser volatility compared to its peers.

How do I buy Reliance Regular Savings Scheme online?

You should proceed to conveniently purchase Reliance Regular Savings Scheme at reliancemutual.com/FundsAndPerformance/Pages/Reliance-Value-Fund.aspx

The main investment goal with this fund is to gather capital appreciation and generate regular returns through active investment in equity and equity related securities. Mainly value stocks.

Reliance Regular Savings Scheme Company’s Contact Number?

Probably the most common and one of the easiest ways to get in touch with Reliance Mutual Scheme customer service is to just give them a call on their toll-free number – 1800-300-11111. By using this number, you will approach an interactive voice response system that can direct you to the required department.

Who should invest in a Reliance Regular Savings Scheme?

Reliance Regular Savings Scheme Balanced Option has delivered 10 years of solid performance. Potential investors with moderate risk profiles may consider this product for their retirement planning and other long-term financial objectives, through systematic investment plans or lump sum route. Given its good dividend pay-out track record, potential investors who prefer dividends can invest in the dividend plan of the Reliance Regular Savings Scheme Balanced Option.

Why should I invest in Reliance Regular Savings Scheme?

The scheme has consistently outperformed its benchmark (CRISIL Hybrid 35+65 - Aggressive Index) and its peers (schemes ranked under the balanced schemes category in December 2017 CRISIL Mutual Scheme Ranking) across all trailing periods under analysis.

The scheme has weathered many bull and bear phases, and has outperformed its benchmark and the category in most phases.

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