Reliance Mutual Fund: A Comprehensive Investment Guide

Reliance Mutual Fund is one of the most reputable mutual funds in India, with a strong pedigree and a history of benchmark-beating returns. Founded in 1882 under the Indian Trust Act, it is now part of the Anil Dhirubhai Ambani Group or Reliance group, one of India's most successful conglomerate companies. Reliance Mutual Fund offers a wide range of products to cater to diverse investor needs, including equity funds, fixed-income funds, ETF schemes, and retirement schemes. The fund has a strong distribution network and is known for its innovative features and customer service.

In 2019, Reliance's stake was acquired by Nippon Life Insurance Company, and the fund was renamed Nippon India Mutual Fund. This fund house is one of the leading asset management companies in India, offering a range of investment options such as managed accounts, pension funds, alternative investments, and offshore funds. With assets under management worth Rs. 431,308 crores, Nippon India Mutual Fund is led by CEO Sundeep Sikka and boasts a talented team of fund managers.

How to invest in Reliance Mutual Fund as an NRI

Non-Resident Indians (NRIs) can invest in mutual funds in India, provided they adhere to the rules set out in the Foreign Exchange Management Act (FEMA). This act defines an NRI as an Indian citizen residing outside of India. According to the Income-tax Act of 1961, an NRI is someone who has been in India for less than 120 days during a financial year.

Step 1: Set Up an Account

NRIs will need to open either an NRE (Non-Resident External) or an NRO (Non-Resident Ordinary) account.

• NRE Account: This account is suitable for NRIs who want to transfer their overseas earnings to India. Investments and interest earned in this account are freely repatriable.
• NRO Account: This account is used for managing income generated in India, such as rental income or proceeds from property sales. Money in an NRO account cannot be easily repatriated.

Step 2: Get Your KYC Done

Before investing in Indian mutual funds, NRIs must complete the Know Your Customer (KYC) process. This involves submitting the following documents:

• Copy of passport (including relevant pages with name, date of birth, photo, and address)
• Proof of foreign residence (e.g., utility bills, bank statements, rental agreements)
• Proof of Indian address (if applicable)
• PAN card (Permanent Account Number)
• Recent photographs
• In some cases, in-person verification may be required, which can be done at the Indian Embassy in the NRI's country of residence.

Step 3: Choose Your Investment Method

Once the NRI's account is activated and the KYC process is completed, they can invest in Reliance Mutual Fund through one of the following methods:

• Direct or Self: NRIs can invest directly in mutual fund schemes through regular banking channels using their NRE/NRO account. They will need to submit the required KYC documents and indicate that the investment is on a repatriable or non-repatriable basis.
• Through Power of Attorney (PoA): NRIs can also appoint someone else to invest on their behalf. The PoA holder can make investment decisions and take other actions related to the investments. Both the NRI and the PoA holder must sign the KYC documents for this method.

Step 4: Understand Taxation

When investing in mutual funds, NRIs should be aware of the tax implications:

• Mutual fund investments made by NRIs are subject to TDS (Tax Deducted at Source) in India.
• If India has signed a Double Taxation Avoidance Treaty (DTAA) with the NRI's country of residence, they will not have to pay double taxes. If taxes have been paid in India, tax relief can be claimed in the NRI's country of residence.
• The taxes on mutual funds vary depending on the type of fund and the holding period. For example, returns from equity funds held for less than 12 months are taxed at 15%, while returns from equity funds held for 12 months or more are tax-free up to Rs. 1 lakh.

By following these steps, NRIs can successfully invest in Reliance Mutual Fund and take advantage of the economic growth and investment opportunities in India.

How to invest in Reliance Mutual Fund online

Reliance Mutual Fund changed its name to Nippon India Mutual Fund in 2019. It is one of the top asset management companies in India, with a presence in 263 locations across the country and 243.16 lakhs investor accounts.

To invest online in Nippon India Mutual Fund schemes, you can use one of the following methods:

Visit the Asset Management Company's (AMC) official website

If you choose to invest through Nippon India Mutual Fund's official website, you will need to register and create an account using your PAN card and KYC details. However, this option can be cumbersome if you plan to invest in multiple mutual fund schemes from various fund houses, as tracking and managing your investments may become difficult.

Contact a mutual fund distributor or broker

Another option is to invest through a mutual fund distributor or broker. However, this may result in a higher expense ratio as the agent's commission can reduce your overall returns.

Use an online investment platform

The simplest and most cost-effective way to invest in Nippon India Mutual Fund is through an online investment platform like ET Money. You can sign up using their website or mobile app, and invest in schemes from different AMCs at a lower expense ratio since it is a direct investment platform. ET Money also allows you to track your existing portfolio and view all your old and new investments in one place.

Steps to invest via ET Money:

• Sign up using your email and OTP.
• Select the fund, enter the investment amount, and choose the investment type: one-time (lumpsum) or SIP.
• Enter your PAN, full name, and verify your mobile number.
• Provide your bank account details and select the payment mode. If you choose SIP, set up a mandate.
• Follow the KYC process, which includes submitting a selfie and a live video, providing essential details, and eSigning documents.
• The transaction will be processed upon verification of your KYC documents.

Documents required for KYC:

• PAN Card (mandatory)
• Any other valid identity card issued by the Central or State Government
• Bank account statement or bank passbook
• Utility bills (electricity or gas bills)

It typically takes 3-5 working days for KYC verification, which is done by government-certified agencies.

How to invest in Reliance Mutual Fund through SIP

SIP stands for Systematic Investment Plan, a smart and disciplined way to invest money in mutual funds or Unit Linked Insurance Plans (ULIPs) at regular intervals. SIPs are a planned approach to investments, helping investors build the habit of saving and accumulating wealth for the future through small investments made over a long period.

Benefits of Reliance SIP

• Discipline: SIPs inculcate a habit of regular savings, helping investors attain their financial goals.
• Flexibility: Investors can choose the investment amount and tenure, starting with a small amount and gradually increasing it.
• Long-Term Gains: SIPs offer the advantage of rupee-cost averaging and compounding, delivering attractive returns over a long investment horizon.
• Convenience: SIPs are easy to set up and manage, with the option of auto-debit facilities from your bank account.
• Rupee-Cost Averaging: By investing a fixed amount regularly, you buy more units when the market is low and fewer units when the market is high, averaging out the cost of investment.
• Power of Compounding: SIPs reinvest returns along with regular contributions, leading to exponential growth over time.
• Understand your risk appetite and investment objectives: Determine your risk tolerance and financial goals, such as saving for retirement, education, or other goals.
• Choose a suitable market-linked fund: Select funds that align with your risk profile and goals. Consider factors such as asset allocation, past performance, and fund management.
• Select the date and duration of SIP: Decide on a convenient date for auto-debit from your bank account and the duration of your SIP based on your financial goals.
• Decide between offline or online investment: You can invest in SIPs through offline or online channels, with online investing offering the convenience of auto-debit.
• Stay invested for the long term: SIPs are designed for long-term wealth creation, so commit to staying invested for the entire investment period without frequent monitoring of market fluctuations.
• Diversify your SIP investments: Opt for a diversified portfolio by investing in a mix of market-linked funds, including large-cap, small-cap, mid-cap, and multi-cap funds.
• Complete your KYC: Fulfill Know Your Customer (KYC) requirements by providing documents such as PAN card, address proof, and possibly a cancelled cheque.
• Choose a platform: Decide where to invest, such as directly with a fund house, through a broker, or a robo-advisor.
• Select the SIP plan: Research market-linked funds offered by Reliance Mutual Fund based on your goals and risk tolerance.
• Decide on the investment amount and SIP date: Choose the monthly investment amount and withdrawal date that aligns with your financial plan.
• Start your SIP: Visit the website of the chosen fund house, register or log in, select the fund, add bank details, and choose the SIP/lump sum option along with the initiation date.

By following these steps, you can start investing in Reliance Mutual Fund through SIP, taking advantage of the benefits of discipline, flexibility, and potential for long-term returns.

How to invest in Reliance Mutual Fund through a broker

Reliance Mutual Fund is one of the leading mutual funds in India, with a wide range of products catering to different investor requirements. It is a part of the Reliance - Anil Dhirubhai Ambani Group and has a presence in over 150 cities across the country.

Step 1: Find a Broker

To invest in Reliance Mutual Fund through a broker, the first step is to find a registered broker who can facilitate the investment process. You can search for brokers online or ask for recommendations from friends and family. Make sure to choose a broker who is reputable and has experience in dealing with mutual fund investments.

Step 2: Open an Account

Once you have selected a broker, you will need to open an account with them. This usually involves filling out an account opening form and providing the necessary documents, such as proof of identity and address. Your broker will guide you through this process and let you know the specific documents required.

Step 3: Discuss Investment Objectives

Before investing in Reliance Mutual Fund, it is essential to understand your investment goals and risk appetite. Discuss your financial goals, investment horizon, and risk tolerance with your broker. They will help you select the most suitable Reliance Mutual Fund schemes based on your profile.

Step 4: Choose the Right Scheme

Reliance Mutual Fund offers a wide range of schemes, including equity funds, debt funds, hybrid funds, tax-saving funds, and more. Based on your investment objectives and risk profile, your broker will assist you in choosing the right scheme or combination of schemes.

Step 5: Complete the Paperwork

After finalizing the scheme(s), your broker will provide you with the necessary forms and help you complete the paperwork. This typically includes an application form and a Know Your Customer (KYC) form. Make sure to carefully fill out all the required details and submit the documents to your broker.

Step 6: Make the Investment

The final step is to make the investment by transferring funds to the broker or the mutual fund company, as instructed by your broker. You can typically invest through various payment methods, such as cheque, demand draft, or online fund transfer. Your broker will guide you through the payment process.

Step 7: Monitor your Investment

After making the investment, remember to regularly monitor the performance of your chosen Reliance Mutual Fund scheme(s). You can usually do this through the broker's platform or the mutual fund company's website. Review your investments periodically and discuss any concerns or questions with your broker.

Investing in Reliance Mutual Fund through a broker can offer several benefits, such as expert guidance, convenience, and a personalized investment strategy. Remember to choose a reputable and experienced broker to ensure a smooth and informed investment journey.

How to invest in Reliance Mutual Fund for beginners

Reliance Mutual Fund is one of the most reputable mutual funds in India, with a strong pedigree and a history of providing returns that have beaten benchmark indices. Founded in 1882, it is part of the Anil Dhirubhai Ambani Group or Reliance group, one of India's most successful conglomerate companies.

• Register with a Platform: You will need to open an account with a platform that offers Reliance Mutual Fund. One such platform is Groww, which is registered with SEBI, AMFI, and BSE.
• Complete your KYC: You will need to provide identification and address proof documents, such as your passport, Voter ID, PAN card, Driving license, or Aadhaar.
• Determine your Investment Duration and Risk Level: Decide how long you want to invest for and what level of risk you are comfortable with. The risk level can be high, medium, or low. If you are unsure, consult a financial specialist.
• Choose the Appropriate Reliance Mutual Fund: Research the different schemes offered by Reliance Mutual Fund and select the one that aligns with your investment goals and risk appetite. There are over 600 schemes and 800 options to choose from, including equity funds, fixed-income funds, ETF schemes, and retirement schemes.
• Decide on Lump-Sum or SIP Investment: Determine whether you want to invest a lump sum amount or set up a Systematic Investment Plan (SIP). A lump-sum investment is a one-time payment, while an SIP allows you to invest smaller amounts at regular intervals.
• Complete the Investment Process: Follow the platform's instructions to complete the investment process. This may involve providing additional information, such as your bank account details, and confirming the investment amount and frequency.

By following these steps, you can start investing in Reliance Mutual Fund. Remember to consider your financial goals, risk tolerance, and investment horizon before making any investment decisions. It is always recommended to consult a financial advisor to ensure that your investment choices align with your specific circumstances.

Frequently asked questions