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Reliance SIP InsureA unique facility to Save, Grow & Insure
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. .
A dinner for your family
Watching movie with your spouse
*installments
Confidential Slide
*please refer slide 3 for more details
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per month @ 15%p.a for 15 yrsmakes you a
Millionaire
Rate of Return 8% 15%
Value /Yrs 10 15 20 10 15 20
5,00,000 2,715 1,435 843 1,794 739 330
10,00,000 5,430 2,871 1,686 3,589 1,477 660
25,00,000 13,575 7,177 4,216 8,972 3,694 1,649
50,00,000 27,150 14,354 8,432 17,943 7,387 3,298
100,00,000 54,300 28,707 16,865 35,886 14,774 6,597
The table shows the SIP amount required to be invested per month for achieving the target amount in the specified timeperiod. The hypothetical rate of return on the investments is assumed at 8% & 15% p.a respectively
Confidential Slide
This is just an illustration, explaining the power of compounding concept and should not be assumed as a promise, guarantee or forecast onminimum 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.
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..
Childs Education
Childs Marriage
Housing
Safety
Confidential Slide
Everyone has one or more of the above reasons to invest for!
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Start early
Dont time the market
Prudent Asset allocation Would you like
Invest regularlyo guess e
8th
habit that
Have a set investment objective
you?
Invest for long term
Confidential Slide
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nsure your nanc a goa s..
Confidential Slide
Before we know more about this product.let us understand
the investment climate around us!
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Impact of Inflation on monthly expenses of Rs 20,000
53,06660,000
20,000
25,526
32,578
41,579
30,000
40,000
50,000
thlyExpsin
Rs
-
10,000
20,000
Today 5 years 10 years 15 years 20 years
Mon
Value of Rs 1 lac over timePeriod
100,000
78,353
100,000
120,000
y
,,
61,391
48,102
37,68940,000
60,000
80,000
ValueofMon
e
Confidential Slide
Inflation @ 5% p.a-
20,000
Today 5 years 10 years 15 years 20 years
Period
This is an hypothetical illustration to explain the concept of Power of
Compounding. Past Performance may or may not be sustained in future.
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Chit fund/NBFC,
9.4
Real Estate, 5
Equity market, 1.1
Life insurance, 32.8
Gold, 5.8Mutual Fund, 1.2
Banks, 44.9
,
11.6
Source: Invest India Incomes and Savings Survey 2007**
Confidential Slide
Mutual Fund as an Asset Class has a very low penetration
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Long Term Investing Case Studies
Invest Systematically..Invest Systematically..
Its not the timing
Confidential Slide
but the time in the market which matters
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A holds for
20 years30 years
Start Early
1,488,6031,500,000g
eof
120,000 120,000
689,511
-
500,000
1,000,000
oun
tatthe
60
A & B invest Rs. 2000 every month, earning interest @ 8% p.a. on a monthlycom oundin basis
A B
People Who have invested
Am
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
As investment appreciated to over Rs.14,88,603 while Bs investment grew to only Rs.
Confidential Slide
, ,
Only an illustration to explain the power of compounding.
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Past Performance of SIP in Reliance Growth Fund
RGF
SIP Installment/Yrs 3 5 10 Since Inception
47,384 85,310 711,113 2,804,629
1001,000 45,635 77,664 334,587 720,548
3,000142,153 255,930 2,133,340 8,413,886136,905 232,993 1,003,762 2,161,644
236,921 426,551 3,555,567 14,023,144
, , , , , , ,
10,000
473,843 853,101 7,111,135 28,046,288
456,350 776,643 3,345,874 7,205,479
15,000
710,764 1,279,652 10,666,702 42,069,432
684,525 1,164,964 5,018,811 10,808,218
Inception Date: 8th Oct 1995. Returns are of Retail Plan- Growth Plan Growth option as on 31st May 2011. 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 1000 p.m in the above fund
since inception on 8th Oct 1995 would have invested Rs 1.88 lacs by 31st May 2011 and have earnt a total amount of Rs 28.04 lacs.
regular monthly subscriptions have been worked out on excel spreadsheet function known as XIRR. Calculations assume that all payouts
during the period have been reinvested in the units of the scheme at then prevailing NAV. It is assumed that a SIP of Rs. 1000/- each
executed on 10th of every month has been taken into consideration including the first installment. It may please be noted that load has not
been taken into consideration. The amounts invested in SIP and the market values of such investments at respective periodic intervals
Confidential Slide
thereof are simulated for illustrative purposes for understanding the concept of SIP. This illustration should not be construed as a promise,
guarantee on or a forecast of any minimum returns. The Mutual Fund or the Investment Manager does not assure any safeguard of capital
and the illustrated returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with otherinvestments. SIP does not guarantee or assure any protection against losses in declining market conditions.
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Simple, straightforward way to
.
The alternative is to :
create long term wealth
Understand and embrace
Follow markets very closely
risk
Put time on your side
Time your entry and exit very
Well
The choice is yours to make..
Invest systematically
Dont worry about market
Select your stocks
judiciously
A tried & tested methodAnd hope that you get it right
more often than not!
Confidential Slide
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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.
Protects againstImprovesprobability
Eliminatesneed fortiming
cost ofinvestment
o etterreturns
Confidential Slide
Inculcates
savings habit
markets
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Do you want aninvestment
..
investing for the longterm??
technique which can
make you investregularly??
ChooseChooseene ancee ance
InsureInsure
Do you want a freelife insurance
cover??Do you want your
planned investments to
Confidential Slide
unforeseen death??
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A unique facility to Save, Grow & Insure
Confidential Slide
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- ,
Free Life Insurance Cover-
Enjoy Insurance on SIPs
Ensuring that the planned
investments are completed
Market Linked NAV
based maturity
Eliminates need for
procee s
Why Reliance SIP Insure ?
Inculcates savin s
timing markets
Helps averaging costof investment
Confidential Slide
habit
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-
An add-on feature of life insurance cover under a Group Term Insurance provided
invest regularly through Systematic Investment Plan (SIP) and help them achieve
their financial objective without any extra cost.
Objective:
n e un or una e even o e em se o an nves or ur ng e enure o e ,
the insurance cover will take care of the unpaid installments.
Thus, the nominee* would be able to continue in the scheme without havin to
make any further contribution. Investors long term financial planning and objective
of investing through SIP could still be fulfilled as per the targeted time horizon,
Confidential Slide
even if he/she dies prematurely.
*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding
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Reliance SIP Insure Product Features
Eligibility
All individual investors enrolling for investments via SIP and opting for Reliance SIP
Insure
Onl individual investors whose com leted a e is between 18 ears & 45 ears inclusive
of both) at the time of investment
In case of multiple holders in the any scheme, only the first unit holder will be
eligible for the insurance cover.
Minimum Investment per installment : Rs.1000 per month. (Except for Reliance Tax Saver (ELSS)
Investment Details
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 for SIP: No upper limit for SIP tenure. The investor can opt for
Perpetual SIP also. However the insurance cover ceases when the investor attains 55 years of age or
the completion of the SIP insure tenure whichever is earlier.
Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated
Confidential Slide
Cheques shall not be accepted )
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Load StructureThere will an Exit Load of 2%, if the accumulated units acquired or allotted under Reliance SIPInsure are redeemed or switched out or the SIP Insure is discontinued or it is defaulted before the
ma ur y o comm e nsure enure or e ore comp e on o yrs o age w c ever s ear er
as opted in the respective scheme either by the SIP-Insure unitholder or by the nominee, as thecase may be.
pon comp e on o years o age, ere are s a ance unpa ns a men s, ose wbe treated as Normal SIP with the relevant exit load as may be existing from time to time.
The following exit load structure is applicable for all kinds of redemptions in the following schemesas on a e v z : e ance row un - e a an, e ance s on un - e a an, e anceEquity Opportunities Fund - Retail Plan, Reliance Equity Fund - Retail Plan, Reliance EquityAdvantage Fund- Retail Plan, Reliance Regular Savings Fund Equity option, Reliance RegularSavings Fund Balanced option, Reliance Banking Fund Retail Plan, Reliance Pharma Fund,
e ance e a n er a nmen un , e ance vers e ower ec or un e a an,Reliance Natural Resources Fund Retail Plan, Reliance Quant Plus Fund Retail Plan,Reliance Long Term Equity Fund and Reliance Infrastructure Fund Retail Plan.
Confidential Slide
- re eeme sw c e ou on or e ore comp e on o year rom e a e o a o men ounits. Nil if redeemed/switched after completion of 1 year from the date of allotment of units.
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Load Structure:While Reliance Small Cap Fund has the following exit load; 2% If redeemed or switched out on or before com letion of 12 months from the date of
allotment of units
1% If redeemed or switched out after 12 months but on or before completion of 24 monthsfrom the date of allotment of units Nil If redeemed or switched out after the com letion of 24 months from the date of allotmentof units
While nil load in Reliance Tax Saver (ELSS) Fund
Notes:1. There will be Nil exit load (For the units acquired under SIP Insure before the age of 55
years), if the SIP Insure is discontinued before the maturity of committed SIP Insure tenureor before com letion of 55 rs of a e whichever is earlier and redeemed after com letion of
55 yrs of age either by the SIP-Insure unit holder or by the nominee, as the case may be.2. In the event of the death of the investor and the redemption by the nominee, before
completion of SIP Insure Tenure or before attaining 55 yrs of age, there shall be an an exitload of 2% on the re urchase units.
Confidential Slide
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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;
,
maximum of Rs.10 lakhs per investor across all schemes / plans and folios will be invested in
the Nominees* account
Confidential Slide
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The Life Insurance amount will be invested in the Nominees account, in the same scheme*under which the deceased investor has enrolled for SIP. The investment will be at the applicable
rice based on the closin NAV on the date on which the che ue for insurance claim settlement
is received by the AMC from the insurance company, subject to completion of requisiteprocedure for transmission of units in favour of the nominee.
ot app ca e or e ance ax aver un . or e ance ax aver un ;
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 an time thereafter without an exit load.
The insurance amount as per the sum assured clause in earlier slides 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
Confidential Slide
un o er un e o er sc emes, w ere n e nsurance amoun w e compu sor y nves e
in the respective scheme and the nominee is allotted the units.)
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An investor does a monthly SIP of Rs. 10,000 for 5 yearsin Reliance Growth Fund
If he dies after a eriod of 3 rs then his
Sum Assured= Unpaid SIP installments
= 2 yrs ( 5 yrs-3 yrs) X 12 months X 10, 000
*
= s , ,
Reliance Mutual Fund and will be invested in Reliance Growth Fund (in the same scheme in
which the deceased has earlier invested)
Confidential Slide
*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding
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One can aim to have a target insurance cover as per ones requirement by referringto the matrix attached below
Life Insurance
Cover/Yrs 3 5 10 15 20 251,000,000 27,778 16,667 8,334 5,556 4,167 3,333
, , , , , , ,
800,000 22,222 13,333 6,667 4,444 3,333 2,667
700,000 19,444 11,667 5,833 3,889 2,917 2,333
600,000 16,667 10,000 5,000 3,333 2,500 2,000
500,000 13,889 8,333 4,167 2,778 2,083 1,667
400,000 11,111 6,667 3,333 2,222 1,667 1,333
300,000 8,333 5,000 2,500 1,667 1,250 1,000
Cells in yellow would not be applicable under Minimum SIP amount category under Reliance SIP Insure Facility
200,000 5,556 3,333 1,667 1,111 833 667100,000 2,778 1,667 833 556 417 333
Confidential Slide
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 at the time of registration in Reliance SIP Insure Facility,
one can invest Rs 5,556 p.m for a period of 15 yrs as per the cell highlighted in pink.
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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 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
Reliance Long Term Equity Fund
Confidential Slide
Reliance Infrastructure Fund- Retail Plan
Reliance Small Cap Fund
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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 or till attaining 55 years of age whichever is earlier
Discontinuation of SIP installments midway by the investor i.e., before completing the opted
SIP tenure /installments or till attaining 55 years of age whichever is earlier
Redemption / switch-out of units purchased under Reliance SIP Insure before completion
the mandated SIP tenure / installments or till attaining 55 years of age whichever is earlier
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 or till attaining 55
Confidential Slide
years of age whichever is earlier
Note -There is no provision for revival of insurance cover, once the insurance cover ceases as stated above. The Cost of the Insurance premia will continue
to be borne by RCAM.
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No SIP Insure 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.
Confidential Slide
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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
Confidential Slide
For our existing investors there is no need to give the first SIP cheque
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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.
Confidential Slide
The figures projected refer to the 321 million paid work force of India in the presentation.
Source: IIMS Data Works survey
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Thank You