Reliance Capital is a financial division of Anil Dhirubhai Ambani (ADA) Group, which was founded in 1986 and has its headquarters in Mumbai, Maharashtra.
The main operations undertaken by this company are the provision of financial products and services to probable investors. The range of business undertaken by this firm is quite vast. A few businesses covered under Reliance Capital are mutual funds, wealth management, insurance, home finance, equity etc.
Reliance Mutual Funds is the fastest growing subsidiary of Reliance Capital Anil Dhirubhai Ambani (ADA) Group. At present, it manages the investment of over 83 Lakh investors with a capital worth of over INR 2,40,445.37crores. Incorporated in 1995, Reliance Mutual funds have gained a good reputation in the market due to favorable returns to the investors over the past years. At present, reliance mutual funds are available for investment in over 160 states in India.
Various kinds of mutual funds offered by Reliance Mutual Fund Limited are-
Debt Funds
These funds instill the habit of saving amongst the investors. The returns offered by these investments are average in comparison to equity investment, but the amount of risk incurred by the investor is also substantially lower.
These funds have 6 major classifications-
- Ultra Short Term Debt Funds- These instruments offer a fixed rate of return over a very small tenure of investment.
- Short Term Debt Funds- These funds offer good returns with minimal risk and prove to be a fruitful investment option.
- Monthly Income Plan- This investment option is for those who wish to have a disposable income out of their investments. This is the most feasible mode of investment for people who are retired or looking for a steady secondary mode of income.
- Long term Debt funds- As the name suggests, these funds have a maturity timeline of about 10 years. The risk involved is marginally lower than short term investments, and they offer handsome returns over the investment
- Dynamic Funds- These funds provide the investor with the freedom of investing in both short term and long term mutual funds. This decision is made by the money managers after proper assessment of risks and rate of returns.
Equity Funds
These are investment options which deal with the money-market exchanges of stocks and commodities. These are high risk-bearing instruments which reap dynamic returns based on the market sentiment. These investments act as a financial aid for public and private limited companies.
- Diversified Large-Cap Fund- This instrument of fund investments invests in multiple types of companies with operations ranging from small-scale, medium scale to large scale. This helps in getting a fruitful return and makes this option the most favorite amongst the other variants of equity investment.
- Exchange Traded Fund– These investments trade in securities on dedicated exchange platforms such as National Stock Exchange, Bombay Stock Exchange etc. The risk factor in these investments is quite high but they have an ability to reap good returns.
- Diversified Multi-Cap Fund– This fund makes investments in a variety of securities irrespective of their scale of operation and returns assessment.
- Sector Fund– This fund is sector specific. This means that this fund invests all its resources in a particular sector of business such as infrastructure, banking, finance, marketing etc.
- Diversified Small-Cap and Mid -Cap Fund– These funds make investments in small and medium cap instruments.
Tax-Saving Funds
These funds are favored by investors who share an investment objective of saving tax. Popularly known as the Equity-Linked Saving Scheme (ELSS) funds, the returns earned through these funds are tax-deductible and the investment amount is tax adjustable under Income Tax Act.
Index Funds
These funds function on the basis of the sentiments of the index of the money market. In India, the various indexes which keep a record of the dynamic shifts and changes in the money market are National Stock Exchange (NSE), Bombay Stock Exchange (BSE), Nifty, Sensex etc.
Arbitrage Funds
These are the investment funds which invest more in equity funds and less in debt funds. These are the most appropriate investment option for those who wish to invest in the dynamic money market without the added risk factor. These funds also utilize the functionality of simultaneous purchase and sale of market instruments for an added advantage.
Balanced Funds
These funds make equal investments in both equity and debt instruments. By balancing both types of investments, these funds are able to sustain a nominal risk amount and a favorable rate of return for the investor.
International Funds
By the means of international funds, an investor can trade in foreign securities. These funds bear much less risk than directly investing in the international financial market.
Liquid Funds
As the name suggests, these funds make investments in highly liquefiable investment instruments such as saving schemes, government bonds etc. Also known as short-term funds, they carry fewer risks and have a shorter tenure which has the ability to reap substantial returns.
Gold Funds
This fund invests purely in the commodity of gold or in companies dealing in gold mining and trading. The investor has the freedom of investing in gold at very economical rates, without the fear of theft and pilferage.
Why are Reliance Mutual Funds worthy of being invested in?
- Reliance has the industry experience of over 20 years.
- Various products offered by Reliance mutual funds bear tax benefits.
- A strong and closely knit network of the best money managers in the country makes it highly reliable.
- Customer-centric staff and wonderful customer support channel are another great advantages.
- Multiple options of funds available for investment.
