Reliance mutual fund

About Us
Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Average Assets
Under Management (AAUM) of Rs. 1,04,511 Crores and an investor count of over 73.30 Lakh
folios. (AAUM and investor count as of August 2010) AAUM Source :
http://www.amfiindia.com/

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the
fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of
products to meet varying investor requirements and has presence in 159 cities across the country.
Reliance Mutual Fund constantly endeavors to launch innovative products and customer service
initiatives to increase value to investors. "Reliance Mutual Fund schemes are managed by
Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital Limited, which
holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by
minority shareholders."

Reliance Capital Ltd. is one of India’s leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life
and general insurance, private equity and proprietary investments, stock broking and other
financial services.

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: Mutual Funds and securities investments are subject to market risks and
there is no assurance or guarantee that the objectives of the Scheme will be achieved. As
with any investment in securities, the NAV of the Units issued under the Scheme can go up
or down depending on the factors and forces affecting the capital markets. Past performance
of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme.
The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme
beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such
other accretions and additions to the corpus. The NAV of the Scheme may be affected, interalia,
by changes in the market conditions, interest rates, trading volumes, settlement periods and
transfer procedures. The Mutual Fund is not assuring that it will make periodical dividend
distributions, though it has every intention of doing so. All dividend distributions are subject to
the availability of distributable surplus in the Scheme. For details of scheme features and for
scheme specific risk factors, please refer to the Scheme Information Document. Please read the
Statement of Additional Information and Scheme Information Document carefully before
investing.
Vision & Mission Statement
Vision Statement
To be a globally respected wealth creator with an emphasis on customer care and a culture of
good corporate governance.

Mission Statement
To create and nurture a world-class, high performance environment aimed at delighting our
customers.

Corporate Governance
Our Corporate Governance Policy :

Reliance Capital Asset Management Ltd. has a vision of being a leading player in the Mutual
Fund business and has achieved significant success and visibility in the market.

However, an imperative part of growth and visibility is adherence to Good Conduct in the
marketplace. At Reliance Capital Asset Management Ltd., the implementation and observance of
ethical processes and policies has helped us in standing up to the scrutiny of our domestic and
international investors.

Management:
The management at Reliance Capital Asset Management Ltd. is committed to good Corporate
Governance, which includes transparency and timely dissemination of information to its
investors and unit holders. The Board of Directors of RCAM is a professional body, including
well-experienced and knowledgeable Independent Members. Regular Audit Committee meetings
are conducted to review the operations and performance of the company.

Employees:
Reliance Capital Asset Management Ltd. has at present, a code of conduct for all its officers. It
has a clearly defined prohibition on insider trading policy and regulations. The management
believes in the principles of propriety and utmost care is taken while handling public money,
making proper and adequate disclosures.

All personnel at Reliance Capital Asset Management Ltd are made aware of their rights,
obligations and duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They
are taken through a well-designed HR program, conducted to impart work ethics, the Code of
Conduct, information security, Internet and e-mail usage and a host of other issues.

One of the core objectives of Reliance Capital Asset Management Ltd. is to identify issues
considered sensitive by global corporate standards, and implement policies/guidelines in
conformity with the best practices as an ongoing process.

Reliance Capital Asset Management Ltd. gives top priority to compliance in true letter and spirit,
fully understanding its fiduciary responsibilities.
Sponsors
Reliance Capital Limited :

Corporate & Registered Office :

Reliance Capital Ltd. H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne,
Navi Mumbai - 400 710.Tel. 022 – 30327000, Fax. 022 – 30327202

Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited.,
a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM,
the balance paid up capital being held by minority shareholders. Reliance Mutual Fund (RMF)
has been sponsored by Reliance Capital Ltd (RCL). The promoter of RCL is AAA Enterprises
Private Limited. Reliance Capital Limited is a Non Banking Finance Company. Reliance Capital
Limited is one of the India’s leading and fastest growing financial services companies, and ranks
among the top three private sector financial services and banking companies, in terms of
networth.

Reliance Capital has interests in asset management and mutual funds, life and non-life insurance,
private equity and proprietary investments, stock broking and other activities in the financial
services sector. The net worth of RCL is Rs. 6086 crore as on March 31, 2008. Given below is a
summary of RCL’s financials:

Particulars
2007-08 2006-07 2005-06
(Rs.in crores)
Total Income 2079.79 883.86 652.02
Profit Before Tax 1171.45 733.18 550.61
Profit After Tax 1025.45 646.18 537.61
Reserves & Surplus 5779.06 4915.07 3849.58
Net Worth 5927.50 5161.23 4122.46
41.75 28.39 29.74
Earnings per Share (Rs.)
(Basic + Diluted) (Basic + Diluted) (Basic + Diluted)
Dividend (%) 55% 35% 30%
Paid up Equity Capital 246.16 246.16 223.40

Reliance Capital Ltd. has contributed Rupees One Lac as the initial contribution to the corpus for
the setting up of the Mutual Fund. Reliance Capital Ltd. is responsible for discharging its
functions and responsibilities towards the Fund in accordance with the Securities and Exchange
Board of India (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 Lac made by them towards the initial
corpus for setting up the Fund and such other accretions and additions to the corpus.

he AMC
About Reliance Capital Asset Management Ltd.
Reliance Capital Asset Management Ltd.(RCAM) is an unlisted Public Limited Company
incorporated under the Companies Act, 1956 on February 24, 1995, having its registered office
at "Reliance House", Near. Mardia Plaza, Off. C.G. Road, Ahmedabad, 380 006 and its
Corporate Office at One Indiabulls Centre, Tower 1, Jupiter Mills Compound , 841, Senapati
Bapat Marg, Elphinstone Road, Mumbai - 400 013. RCAM has been appointed as the Asset
Management Company of Reliance Mutual Fund by The Trustee vide Investment Management
Agreement (IMA) dated May 12, 1995 and executed between Reliance Capital Trustee Co.
Limited and Reliance Capital Asset Management Ltd. and amended on August 12, 1997 and
January 20, 2004 in line with SEBI (Mutual Funds) Regulations, 1996).

Pursuant to this IMA, RCAM is authorised to act as Investment Manager of the Mutual Fund.
The networth of the Asset Management Company based on audited accounts as on March 31,
2009 is Rs. 841.32 Crore. The Mutual Fund has launched Forty Seven Schemes till date, namely:

Reliance Growth Fund (September 1995)
Reliance Income Fund (December 1997)
Reliance Medium Term Fund (August 2000)
Reliance Fixed Term Scheme (March 2003)
Reliance Gilt Securities Fund (July 2003)
Reliance Monthly Income Plan (December 2003)
Reliance Pharma Fund ( May 2004)
Reliance Media & Entertainment Fund (September
2004)
Reliance NRI Income Fund (October 2004)
Reliance Equity Opportunities Fund (February
2005)
Reliance Fixed Maturity Fund – Series II (April
2005)
Reliance Liquidity Fund (June 2005)
Reliance Fixed Tenor Fund (November 2005)
Reliance Fixed Horizon Fund I (August 2006)
Reliance Fixed Horizon Fund III (March 2007)
Reliance Interval Fund (March 2007)
Reliance Equity Advantage Fund (June 2007)
Reliance Fixed Horizon Fund V (September 2007)
Reliance Equity Linked Saving Fund - Series I
(December 2007)
Reliance Natural Resources Fund (January 2008)
Reliance Fixed Horizon Fund VIII (March 2008)
Reliance Banking Exchange Traded Fund (May
2008)
Reliance Fixed Horizon Fund XI (October 2008)
Reliance Vision Fund (September 1995)
Reliance Liquid Fund (March 1998)
Reliance Short Term Fund (December 2002)
Reliance Banking Fund (May 2003)
Reliance Diversified Power Sector Fund
(March 2004)
Reliance Floating Rate Fund (August 2004)
Reliance NRI Equity Fund (October 2004)
Reliance Index Fund (February 2005)*
Reliance Fixed Maturity Fund – Series I
(March 2005)
Reliance Regular Savings Fund (May 2005)
Reliance Tax Saver (ELSS) Fund (July
2005)
Reliance Equity Fund (February 2006)
Reliance Fixed Horizon Fund (April 2006)
Reliance Fixed Horizon Fund II ( November
2006)
Reliance Long Term Equity Fund
(November 2006)
Reliance Money Manager Fund (March
2007)
Reliance Fixed Horizon Fund IV (August
2007)
Reliance Gold Exchange Traded Fund
(October 2007)
Reliance Fixed Horizon Fund VI (December
2007)
Reliance Fixed Horizon Fund VII (January
2008)
Reliance Fixed Horizon Fund IX (March
 2008)
Reliance Fixed Horizon Fund X (August
2008)
Reliance Fixed Horizon Fund XII
(November 2008)
Reliance Infrastructure Fund (June 2009)

RCAM has been registered as a Portfolio Manager vide SEBI Registration No. INP000000423
and renewed effective 1st August, 2009.

RCAM was appointed as the Investment Manager of “Reliance India Power Fund”, a Venture
Capital Fund registered with the SEBI vide registration number IN/VCF/05-06/062 dated June
16, 2005.
Reliance Capital Asset Management Limited has also incorporated a wholly owned subsidiary
named Reliance Capital Pension Fund Limited for managing the funds of Pension Fund
Regulatory and Development Authority (PFRDA) – Mandate vide Letter of appointment dated
March 13, 2009.

The AMC has also been rendering advisory services in respect of ‘Emergent India Investment
Limited’, an offshore fund for investment in India.

RCAM has commenced these activities. It has been ensured that key personnel of the AMC, the
systems, back office, bank and securities accounts are segregated activity wise and there exists
systems to prohibit access to inside information of various activities. As per SEBI Regulations, it
will further ensure that AMC meets the capital adequacy requirements, if any, separately for each
such activity.

However, there is no conflict of interest between various business activities carried on by Asset
Management Company

The Mutual Fund

About Reliance Mutual Fund

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882
with Reliance Capital Limited (RCL), as the Settlor/Sponsor and Reliance Capital Trustee Co.
Limited (RCTCL), as the Trustee.
RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration
number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been
changed to Reliance Mutual Fund effective 11th March 2004 vide SEBI's letter no.
IMD/PSP/4958/2004 date 11th March 2004. Reliance Mutual Fund was formed to launch
various schemes under which units are issued to the Public with a view to contribute to the
capital market and to provide investors the opportunities to make investments in diversified
securities.
The main objectives of the Trust are :

• To carry on the activity of a Mutual Fund as may be permitted at law and formulate and
devise various collective Schemes of savings and investments for people in India and
abroad and also ensure liquidity of investments for the Unit holders;
• To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on
their savings and

• To take such steps as may be necessary from time to time to realise the effects without
any limitation.

Custodian
Deutsche Bank, AG
The Trustee has appointed Deutsche Bank, AG located at Kodak House, Ground Floor, 222 Dr.
D.N.Road, Mumbai-400 001, as the Custodian of the securities that are bought and sold under
the Scheme. A Custody Agreement has been entered with Deutsche Bank in accordance with
SEBI Regulations. The Custodian is approved by SEBI under registration no. IN/CUS/003 to
act as Custodian for the Fund.

Deutsche Bank AG, the Custodian shall, inter alia:

• 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 unitholders.
• Ensure that the benefits due to the holdings of the Mutual Fund are recovered and

• Be responsible for loss of or damage to the securities due to negligence on its part on the
part of its approved agents.
Reliance Capital Asset Management Limited has appointed M/s. Karvy Computershare Pvt.
Limited to act as the Registrar and Transfer Agent to the Schemes of Reliance Mutual Fund.
M/s. Karvy Computershare Pvt. Limited (KCL) having their office at Karvy Plaza .21, Road No.
4, Street No.1, Adjacent to Rainbow Hospital, Banjara Hills, Hyderabad - 500 034, is a Registrar
and Transfer Agent registered with SEBI under registration no. INR000000221.
Reliance Capital Asset Management Ltd. and the Trustee have satisfied themselves, after
undertaking appropriate due diligence measures, that they can provide the services required and
have adequate facilities, including systems facilities and back up, to do so. The Trustee has also
laid down broad parameters for supervision of the Registrar. As Registrar to the Schemes, KCL
will accept and process investor's applications, handle communications with investors, perform
data entry services, despatch Account Statements and also perform such other functions as
agreed, on an ongoing basis.

The Registrar is responsible for carrying out diligently the functions of a Registrar and 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.

Trustees

Reliance Capital Trustee Co. Limited

Regd. Office : “Reliance House”, Near Mardia Plaza, Off C G Road, Ahmedabad 380006.

Corporate Office : One Indiabulls Centre, Tower 1, Jupiter Mills Compound , 841, Senapati
Bapat Marg, Elphinstone Road, Mumbai - 400 013. Boardline No.: 022 3099 4600.

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.

Our Schemes
Equity/Growth Schemes

stagin db The aim of growth funds is to provide capital appreciation over the medium to long-
term. Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risks. These schemes provide different options to the investors like dividend
option, capital appreciation, etc. and the investors may choose an option depending on their
preferences. The investors must indicate the option in the application form. The mutual funds
also allow the investors to change the options at a later date. Growth schemes are good for
investors having a long-term outlook seeking appreciation over a period of time.

Debt/Income Schemes

The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government
securities and money market instruments. Such funds are less risky compared to equity schemes.
These funds are not affected because of fluctuations in equity markets. However, opportunities
of capital appreciation are also limited in such funds. The NAVs of such funds are affected
because of change in interest rates in the country. If the interest rates fall, NAVs of such funds
are likely to increase in the short run and vice versa. However, long term investors may not
bother about these fluctuations.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those sectors or industries as
specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods
(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of
the respective sectors/industries. While these funds may give higher returns, they are more risky
compared to diversified funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) are usually passively managed mutual fund schemes tracking a
benchmark index and reflect the performance of that index. These schemes are listed on the stock
exchange and therefore have the flexibility of trading like a share on the stock exchange. It can
also be looked as a security that tracks an index, a commodity or a basket of assets like an index
fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day
as it is bought and sold.

Fixed Maturity Plans (FMPs)

Fixed Maturity Plans (FMPs) are basically debt oriented investment schemes with a pre-specified
tenure offered by mutual funds. FMPs invest in a portfolio of debt instruments whose maturity
coincides with the maturity of the concerned FMP. The primary objective of a FMP is to
generate income while aiming to protect the capital by investing in a portfolio of debt and money
market securities. Since FMPs are available with several maturity options, one can invest in the
relevant plan depending upon his investment horizon and the requirement of cash flows.