Reliance SIP Insure Presentation

8/3/2019 Reliance SIP Insure Presentation

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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

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*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

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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..

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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

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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**

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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

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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

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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

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unforeseen death??


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A unique facility to Save, Grow & Insure

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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

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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,

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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

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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.

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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

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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

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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.

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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

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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

Documents

Reliance SIP Insure Presentation