RELIANCE SMART STeP

RELIANCE SMART STeP:
 
Reliance SMART ST_EP - an enhanced Systematic Transfer Plan that is based on a scientific model, which aims to consolidate bull and bear cyclical trends of equity markets in one cycle. This model enables investors to invest more when the current market is positioned at lower level and invest less when current stock market is positioned at higher level. So, irrespective of market conditions, you stand to win with this flexible 'smart plan'.

Why invest through Systematic Transfer Plan (STP)?
 
Equity markets cannot be timed perfectly, specially emerging markets like ours. Thus, STP would act as an investment catalyst, aiming to derive the combined benefits of stability of debt along with power of equity at the same time.
STP involves the process of investing lump sum in a liquid/debt scheme which would give fairly stable returns and then transferring a fixed amount to an equity scheme in a regular fashion. Once the equity allocation is determined as per the total portfolio consideration, equity investment can be allocated in a disciplined manner through STP.This would enable the investor to achieve a buildup in their portfolio of equities with a low amount of risk along with relatively stable returns of debt in the interim time period.

Preamble to Reliance SMART ST_EP - An Enhanced Version of STP

• Reliance SMART ST_EP is a special product feature which works on a proprietary scientific model, which adds intelligence to disciplined, long term and systematic investment habit.
• The scientific model aims to integrate the cyclical trend of equity markets in one cycle, which also depicts the inter-relation of macro & micro economic factors.
• The scientific model consolidates bull & bear phases in one cycle, which enables to portray the current positioning of the market.
• Thus, Reliance SMART ST_EP works on a simple but smart & attractive concept of "INVEST MORE when the current stock market is positioned at lower levels, INVEST LESS when current stock market is positioned at higher levels.

Why Invest in Reliance SMART ST_EP

• RMF is the first mutual fund house to launch such a special facility where in amount of each transfer from all liquid/debt schemes to equity schemes, would be determined on the basis of a logical & scientific model.
• The scientific model captures intrinsic volatility in a technique which enables to buy more units with less investment, as compared to Normal STP, for longer period of investment.
• Reinforces the proven fact that the optimum way of reaping benefits in any market cycle would be through a disciplined, regular and long term investment, along with the concept of low investment at higher levels and high investment at lower levels.
• Through this new offering, RMF aims to empower the investor with the high-yielding returns of equity along with stable returns of debt, through a systematic investment linked to the market levels.

Investment Process Flow
 
At the time of enrolment of the facility, the investor selects any one of the Transferor (Liquid/Debt) Scheme, any one of the Transferee (Equity) Scheme and one plan out of the 4 plans. The investment is made initially in any of the Transferor (Liquid/Debt) Schemes selected by the investor either in lump sum or SIP mode. The system would calculate the monthly amount to be transferred under the selected plan, 2 trading days before the transfer date (10th of every month), based on the scientific model. However actual amount shall be transferred from Transferor (Liquid/Debt) Scheme and invested in the Transferee (Equity) Scheme on 10th of every month. Incase 10th is a non - transaction day, the amount shall be transferred on next working day.

The 5 different plans, each with 3 transfer amounts are as follows:

Plan	Low	Medium	High
Plan A	Rs.500	Rs.1,000	Rs.1,500
Plan B	Rs.1,500	Rs.3,000	Rs.4,500
Plan C	Rs.8,000	Rs.12,000	Rs.16,000
Plan D	Rs.15,000	Rs.22,500	Rs.30,000
Plan E*	X	1.5X	2X

*X amount would be decided by the investor at the time of enrollment for Plan E of Reliance SMART STEP. The minimum investment amount of X in Plan E would be Rs.30,000 & in multiples of Rs.500 thereafter. Investors should clearly indicate plans as mentioned above. Please note that if no Plan is mentioned / indicated in the Application Form, Plan A shall be considered as default Plan.

Eligible Transferor (Liquid/Debt) and Transferee (Equity) Schemes

Transferor (Liquid/Debt) Schemes:

• Reliance Floating Rate Fund
• Reliance Liquidity Fund
• Reliance Liquid Fund - Treasury Plan
• Reliance Liquid Fund – Cash Plan
• Reliance Medium Term Fund
• Reliance Short Term Fund
• Reliance Gilt Securities Fund
• Reliance Monthly Income Plan
• Reliance Money Manager Fund
• Reliance Income Fund,
• Reliance Regular Savings Fund - Debt Option

The list is subject to change.

Transferee (Equity) Schemes:

• Reliance Growth Fund,
• Reliance Vision Fund
• Reliance Equity Opportunities Fund
• Reliance Equity Fund
• Reliance Equity Advantage Fund
• Reliance Quant Plus Fund
• Reliance Regular Savings Fund - Equity option
• Reliance Regular Savings Fund - Balanced option
• Reliance Natural Resources Fund
• Reliance Banking Fund-Retail Plan
• Reliance Pharma Fund
• Reliance Media & Entertainment Fund
• Reliance Diversified Power Sector Fund
• Reliance Infrastructure Fund
• Reliance Tax Saver (ELSS) Fund*
• Reliance Long Term Equity Fund