Reliance SIP Insure - Reliance Mutual Fund

With stock market running high and lows of some 300 points a day, my safe bets are on Mutual funds. I was scouting for one which would give me some growth and also get some more value for money….And waaaaaaaalllla!! I think I found one, this one promises a good deal and its SIP easy on my pocket...I’m still salaried you know, with inflation hitting the roof !!

Some points that are unique to this fund -

The Reliance SIP Insure facility is an add-on feature of life insurance cover under Group Term Insurance to individual investors opting for SIP in the designated schemes.

It helps to encourage individual investors to save & invest regularly through Systematic Investment Plan (SIP) and help achieve their financial objective without any hindrance.

• Reliance SIP Insure provides free life insurance cover to investors at no extra cost… Can you believe that!!
• In the unfortunate event of the demise of an investor during the tenure of the SIP, the insurance company will pay for the balance amount towards the remaining unpaid SIP installments.
• Thus, the nominee would be able to continue in the scheme without having to make any further contribution.. Investor’s long term financial planning and objective of investing through SIP could still be fulfilled as per the targeted time horizon, even if he/she dies prematurely.

The benefits of Long Term Equity Investments are

1. Equities provide relatively better returns among all asset classes over a longer period of time.

2. The benefit of Systematic Investment Plan:

• Inculcates Savings Habit
• Rupee Cost Averaging & Eliminates the need to time the market

3. Free Life Insurance Cover

• Helps to complete the planned investments
• Maturity Proceeds at NAV based prices

4. Flexibility

• Wide choice of eligible schemes

5. Convenience

• Auto Debit from 4 banks namely ICICI bank, HDFC bank, AXIS bank & HSBC

Eligibility Designated Schemes in which Reliance SIP Insure will be offered

• Minimum Investment per installment: Rs.2000 per month & in multiples of Re 1 thereafter. There is no upper limit
• Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter.
• Maximum Period of Contribution: 15 years OR till attaining 55 years of age, whichever is earlier (e.g., a person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The insurance cover ceases when the investor attains 55 years of age.
• Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated Cheques shall not be accepted )

Amount of Life Insurance Cover Available:

• An amount equivalent to the aggregate balance of unpaid SIP installments, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios will be invested in the Nominee’s* account.
• This amount will be invested in the same scheme/s (under which the deceased investor has enrolled for SIP) at the applicable price based on the closing NAV on the date on which the cheque for insurance claim settlement is received by the AMC from the insurance company, subject to completion of requisite procedure for transmission of units in favour of the nominee*.

What does it take to create wealth?





The table shows the SIP amount required to be invested per month for achieving the target amount in the specified time period. The hypothetical rate of return on the investments is assumed at 10% p.a.

For example: One has to do an SIP of Rs 2,400 p.m for a period of 15 years to create wealth of Rs 10 lacs.

Now, isin't that a great Mutual Fund!! let me know your thoughts on this one.