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Index funds are mutual funds that endeavor to track/replicate the constituents of the target index.
Index Funds generally hold securities in the same proportion as the target index.
Index Funds are passively managed funds :
There is no active selection of stocks by the Fund Manager.
The portfolio is rebalanced periodically only when companies enter/exit the index.
The expense ratio of index funds are generally less than actively managed equity funds.
Index funds in India, generally track S&P CNX Nifty & BSE Sensex Indices.
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Index funds are the simplest of the mutual fund products to understand, even for a layman who
just has a vague idea about the equity markets.
Provides an opportunity to participate in India growth story by investing in well-diversified portfolio
of fundamentally strong, highly liquid, well known companies.
Index funds aims to minimize unsystematic risk (risk pertaining to companies, sectors etc) of an
investor’s portfolio to a certain extent.
Performance of the portfolio is generally in tune with the performance of the target index:
Any variation in performance (known as tracking error) is generally due to the % of cash
allocation & expenses of the fund.
Lower management fees & lower portfolio turnover makes it cost efficient.
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S&P CNX Nifty is a true representative of Indian Economy, since the constituents are blue chip
companies which are the most liquid, biggest & widely owned companies.
S&P CNX Nifty is a well diversified 50 stock index accounting for 19 sectors of the economy &
representing almost 62% of free float market cap of NSE.
S&P Nifty Index is widely accepted among the Indian & Global Investors.
It is professionally maintained & provides the time series data over a fairly long period of time,
thus, capturing all heightened activities of bull & bear runs, in the most judicial manner.
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Index values have been rebased at 100
Performance As On 31st August 2010
Absolute (%)
CAGR(%)
Indices
6 Months
1 Year
3 Years
5 Years
10 Years
S&P CNX Nifty
9.75
15.88 6.56 17.76 14.50
Performance of S&P CNX Nifty – Systematic Investment Plan
SIP Performance As On 31st August 2010
XIRR(%)
Indices
1 Year
3 Years
5 Years
10 Years
S&P CNX Nifty
13.37
14.82 13.25 19.40
Source: www.nseindia.com. Past Performance may or may not be sustained in future.The above table and graph gives an
illustration of the performance of S & P CNX Nifty on the basis of historical data, if invested directly or through Systematic Investment Plan. The same should not be construed as a indication, promise, guarantee or a forecast of any returns. The details may not necessarily provide a basis for comparison with any other investment avenues. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.
a) Returns on SIP are annualized and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions on 1st of every month have been worked out on excel spreadsheet function known as XIRR.
b) It is assumed that a SIP of Rs. 1000/- each executed on 1st 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.
c) The amounts invested in SIP and the market values of such investments at respective periodic intervals 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 other investments. SIP does not guarantee or assure any protection against losses in declining market conditions.
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A Conservative Large Cap Oriented Index Linked Fund
The fund aims to provide regular income in form of defined dividend frequency*
Investment Management Fee will not be charged for the first calendar quarter, once the
scheme re opens for continuous sale and repurchase (i.e. till December 31, 2010)**
*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. Pursuant to payment of dividend the NAV of the scheme would fall to the extent of payout and statutory levy, if any.
**However for further periods, investors will be notified (through our website) about the Investment Management Fee that will be charged to the Scheme on a quarterly basis at the beginning of the quarter in case of any change.
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Passively managed fund which aims to mirror S&P CNX Nifty so as to commensurate with the
performance of the underlying Index, subject to tracking errors.
Ideal for those investors who would like to participate in the India growth story by investing in
well-diversified portfolio of well known large cap companies.
The funds will aim to charge relatively low expense as compared to other actively managed
equity funds.
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Investment Objective
The primary investment objective of the scheme is to replicate the
composition of the NIFTY, with a view to generate returns that are
commensurate with the performance of the NIFTY, subject to tracking
errors.
Nature of the Scheme
An Open Ended Index Linked Scheme
Benchmark
S&P CNX NIFTY INDEX
Proposed Asset Allocation
Equities & equity related securities covered by Nifty - 95% to100%
Cash/CBLO/Repo & Reverse Repo & Money Market instruments
(CPs,CDs, Tbills, Mibor linked instruments with daily Put/Call options &
overnight Interest rate Reset Linked Instruments)but excluding
Subscription and Redemption Cash Flow # - 0% to 5%
#Subscription Cash Flow is the subscription money in transit before deployment and Redemption Cash Flow is the money kept aside for meeting redemptions.
Fund Manager
Krishan Daga
Choice of Plans/Options
(a) Growth Plan
(1) Growth Option
(2) Bonus Option
(b) Dividend Plan (Payout Option & Reinvestment Option)
(1) Quarterly Dividend Option
(2) Half Yearly Dividend Option
(3) Annual Dividend Option
Minimum Investment
Rs. 5000 & in multiples of Re 1 thereafter
Load Structure
(During New Fund Offer &
Continuous Offer including
SIP Installments)
Entry Load* : Nil
Exit Load :
1% of the applicable NAV if redeemed or switched out on or before
completion of 1 year from the date of allotment of units.
There shall be no exit load after completion of 1 year from the date of
allotment of units
*In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load will be charged for purchase / additional purchase / switch-in accepted by the Fund with effect from August 01, 2009. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/ systematic transfer plans accepted by the Fund with effect from August 01, 2009.
How to invest
The investor can invest into Reliance Index Fund- Nifty Plan through following different routes:
¾
Online Investment Mode through Reliance Mutual Fund Website - please click on the links below:•
Existing Investor with IPIN through a transact online modelTransact Online is a an online facility offered for Existing Investors to Purchase, Redeem , Switch units or any other transaction of Reliance Mutual Fund schemes via online mode if they have an I-pin login.
•
Existing Investor and New Investor without IPIN through an invest online modelInvest Online is an online facility offered to Existing as well as New or Upcoming investors to purchase in Reliance Index Fund-Nifty Plan without having an I-pin Login.
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Through the Mutual Fund Exchange Transaction Platform on Bombay Stock Exchange Ltd / NationalStock Exchange Of India Ltd:
The investor can apply through the brokers associated with the NSE/BSE who are also registered with AMFI (ARN holders) as Mutual Fund Advisors and have empanelled with Reliance Mutual Fund.
¾
Physical Application Forms :•
The NFO subscription application forms of Reliance Index Fund-Nifty Plan can be submitted at thedesignated bank collection of AXIS Bank Ltd and Kotak Mahindra Bank Ltd centre as per the details given below during the NFO period. Such NFO subscription application form will not be accepted at the investor service centre of RCAM
•
However the NFO subscription application form of Reliance Index Fund-Nifty Plan for an investor who hasapplied for switch and auto switch facility can be submitted at any of the Designated Investor Service Centre (DISC) of RCAM. Please click here for details of the same.
http://www.reliancemutual.com/ContactUs/KarvyInvestorServiceCentre.aspx
AXIS Bank Main Locations :
Agra: Shop No. 1, 3 To 16, Block No 51anupam Plaza II, Sanjay Placeagra 282002 (U.P.), Ahmedabad:
‘Trishul’, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380 006, Gujarat,
Amritsar: 29, Kennedy Avenue, Court Road, Amristar 143001, Amristar District, Punjab.Bangalore: No. 9,
M. G. Road, Block A, Bangalore 560001. Chandigarh: SCO 343-344, Sector 35-B, Chandigarh 160 022.
Chennai: 82, Dr.Radhakrishnan Salai, Mylapore, Chennai 600 004. Cochin (Kochi): 41/419, Ground Floor,
Chicago Plaza, Rajaji Road, Ernakulum, Kochi - 682 035. Coimbatore: Vigneswar Cresta, No.1095, Avinashi Road, Pappanaickenpalayyam, Coimbatore – 641 037. Dehradun: Shri Ram Arcade,74(New No.250/466), Rajpur Road,Dehradun 248001, Uttarakhand. Guwahati: Ground Floor, Chibber House, G.S. Road, Dispur, Guwahati 781 005, Assam. Hyderabad: 6-3-879/B, G. Pulla Reddy Bldg. First Floor, Begumpet Road, Hyderabad 500 016. Indore: Kamal Palace, 1, Yeshwant Colony, Y N Road, Indore 452003. Jaipur: O-15, Green House, Ashok Marg, C-Scheme, Jaipur 302 001. Jamshedpur: Voltas House, Near Ram Mandir, Bistupur, Jamshedpur 831 001. Kanpur: 16/104 A , Civil Lines, Infront Of Icai Bhawan Kanpur 208001, Uttar Pradesh. Kolkata: Ground & First Floors, 7, Shakespeare Sarani, Kolkata 700 071.
Lucknow: 25 B , Ashok Marg,Sikander Bagh Chauraha, Lucknow 226001. Ludhiana: Shop No.3, Lgf,
Surya Towers, 108, The Mall, Ludhiana (Punjab) 141 001. Mangalore: Essel Towers, Bunts Hostel Circle, Mangalore - 575 003. Mumbai: Universal Insurance Bldg. Ground Floor, Sir. P. M. Road, Fort, Mumbai 400 001. Nagpur: M. G. House,Rabindranath Tagore Road, Besides Board Office, Civil Lines Nagpur 440001.
Nasik: Mazda Towers, Tryambak Naka F.P.No.183, C.T.Sno.620/9 GPO Road, Nashik 422001,
Maharashtra. New Delhi: “Statesman House”, 148, Barakhamba Road, New Delhi 110 001. Panipat: 515-515B, Ward No. 8, Gaylord Hotel Building, G.T. Road, Panipat 132 103, Haryana. Panjim: Siddharth Bandodkar Bhavan, P. Shir Gaonkar Road Panaji 403001, GOA. Patna: Lok Nayak Jay Prakash Bhawandak Bungalow Crossing Patna 800001, Bihar. Pune: Sterling Plaza, Plot No.1262/B, Jangli Maharaj Road, Near Deccan Gymkhana, Pune 411004. Rajkot: “TITAN”, Near K K V Circle, Kalawad Road, Rajkot 360005. Surat: Digvijay Towers, Opp. St. Xavier’S School, Ghod Dod Road, Surat - 395 001. Vadodara: Vardhaman Complex, Opp. G.E.Brace Course Circle (North), Vadodara 390007.
Kotak Mahindra bank Ltd. Designated Branches:
Agra: Shriram Hospital, M.G.Road, Agra, Uttar Pradesh -282003. Ahmedabad: Ground Floor, Chandan house, Opp. Abhijeet III, Near Mithakali, Six Roads, Navrangpura, Ahmedabad. Amritsar: 10, Kennedy Avenue, The Main Mall Road, Amritsar, Punjab - 143001. Bangalore: 10/7, Umiya Land Mark, Next to Chancery Hotel, Lavelle Road, Bangalore - 560001. Baroda / Vadodara: Panorama Building, R.C.Dutta Road, Alkapuri, Vadodara-300097. Chandigarh: SCO 153-154-155, Madhya Marg, Sector 9 -c, Chandigarh - 160 009. Chennai: Capitale, Ground Floor, 555, Anna Salai, Chennai. Cochin: Ground Floor, Kumarapillai Estate, M G Road, Cochin. Coimbatore: 727, Avinashi Road, Skanda square, Coimbatore, Tamilnadu - 641018. Hyderabad: Pavani Jewel Tower, Ground Floor, Somajiguda, Hyderabad - 500089. Indore: 580, M.G.Road, Indore, 452001. Jaipur: 57, Krishna Tower, Sardar Patel Marg, C-Scheme, Jaipur - 302001. Kanpur: 17/03, The Mall, Meghdoot Hotel Building, Kanpur, UP - 208001. Kolkatta: LCC Kolkatta, Apeejay House, 15, Parkstreet, Kolkatta - 700016. Lucknow: 3GF, Speed Building, Shahanazaf Road, Lucknow - 226001. Ludhiana: SCO 120, Ground Floor, Feroze Gandhi Market, Ludhiana - 141001. Mumbai: 5 C/ II, Mittal Court, 224, Nariman Point, Mumbai. New Delhi: Ground Floor, Ambadeep, 14, K.G. Marg, New Delhi. Patna: Shop No 3, 4, 5, Ahmad Husain Complex, Exhibition Road, Gandhi Maidan, Patna - 800001. Pune: Bakre Avenue, FP NO 226/3, Bhandarkar Road, Pune - 411004. Rajkot: Nath Complex, Ground Floor, Near Race Course, Dr. Yagnik Road, Rajkot 360007. Surat: K.G. Point, Ghod Dod Road, Near Ganga Palace, Surat -395007. Raipur: Civil Lines, Opp Raj Bhavan, Raipur, Chattisgarh-492002. Bhopal: 214, Bhagwan Complex, Zone 1, M P Nagar, Bhopal, MadhyaPradesh - 462016. Trichy / Tiruchirapalli: B-17, Aishwaryam Building, Sasthiri Road, Thillai Nagar, Trichy, Tamilnadu - 620 017. Madurai: 1-A, West Perumal Maistry Street, Madurai - 625001, Tamilnadu. Udaipur: Trimurti Heights, 8-C, Bank Street, Madhuban, Udaipur - 313 001. Bhubaneshwar: 184, Ground Floor , Janpath , Bhubaneswar-751001, Oriss. Nashik: Shop No. 1 “Payas”, Opp. B.Y.K. College, Thatte Nagar Road, Nashik, Maharashtra - 422005. Jamshedpur: Gayatri Enclave, K- Road, S-Town, Bistupur, Jamshedpur 831001.
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The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the readers. This information is meant for general reading purpose only and is not meant to serve as a professional guide for the readers. This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The Sponsor, The Investment Manager, The Trustee or any of their respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and opinions given fair and reasonable. This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. None of The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this material.
The Sponsor, The Investment Manager, The Trustee, any of their respective directors, employees including the fund managers, affiliates, representatives including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) / specific sectors mentioned herein.
Reliance Index Fund - Nifty Plan (An Open Ended Index Linked Scheme): The primary investment objective of
the performance of the Nifty, subject to tracking errors. Asset Allocation Pattern: Equities and equity related securities covered by Nifty – 95% to 100% Cash/CBLO/Repo & Reverse Repo & Money Market instruments (CPs,CDs, Tbills, Mibor linked instruments with daily Put/Call options & overnight Interest rate Reset Linked Instruments)but excluding Subscription and Redemption Cash Flow# – 0% to 5%. #Subscription Cash Flow is the subscription money in transit before deployment and Redemption Cash Flow is the money kept aside for meeting redemptions.
Load Structure: (for investments made during NFO and Ongoing offer period) Entry Load - Nil. Exit Load - 1% of the applicable NAV if redeemed or switched out on or before completion of 1 year from the date of allotment of units, Nil thereafter.
Terms of issue and mode of sale and redemption of units: The units of the Scheme are available at Rs. 10/- per
unit during NFO & thereafter at applicable NAV based prices. The Scheme will offer for Subscription/ Switch-in and Redemption / Switch-out of Units on every Business Day on an ongoing basis, within five business days of allotment. The redemption or repurchase proceeds shall be dispatched to the unitholders within 10 Business Days from the date of redemption or repurchase.
Investor benefits and general services offered: The Scheme offers Systematic Investment Plan, Auto Switch
facility, Online Transactions and Reliance Any Time Money Card during the NFO period. The NAV of Scheme shall be published on a daily basis by the Mutual Fund at least in two daily newspapers and will also uploaded on the AMFI site www.amfiindia.com and Reliance Mutual Fund site i.e. www.reliancemutual.com.
Statutory Details: Reliance Mutual Fund has been constituted as a trust in accordance with the provisions of the
Indian Trusts Act, 1882. Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Company Limited.
Investment Manager: Reliance Capital Asset Management Limited (Registered Office of Trustee & Investment
Manager: “Reliance House” Nr. Mardia Plaza, Off. C.G. Road, Ahmedabad 380 006). The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. 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.
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 securities market. Reliance Index Fund – Nifty Plan is only the name of the Scheme and do not in any manner indicates either the quality of the Scheme; its future prospects or returns. Past
performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. 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. The NAV of the Scheme may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. There are various risks associated with investing in Equities, Bonds, Derivatives, Securitised Debt and Short Selling & Securities Lending. For Scheme specific risk factors, please refer to the Scheme Information Document & Key Information Memorandum, which is available at all the DISC, Distributors and www.reliancemutual.com. Investors can also call at our call centre 1800-300-11111 (toll free) for more details. Please
read the Scheme Information Document and Statement of Additional Information carefully before investing.
“S&P®” and “Standard and Poor’s®” are trademarks of the “S&P”, and have been licensed for use by India
Index Services & Products Limited in connection with the S&P CNX Nifty Index. “The Product(s) are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or Standard and Poor’s Financial Services LLC (“S&P”).. Neither IISL nor S&P makes any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product. Please read the full Disclaimers in relation to the S&P CNX Nifty Index in the Scheme Information Document."