reliance sip insure - mutual fund · in future. keep siping ... free life insurance cover provided...

Reliance SIP Insure

Slide

Goal Based Investing

“ Aligning Life And Wealth”

Slide

We All Have Dreams…..

…..But The Challenge Is How Do We Accomplish These Dreams ?

Slide

Goal Focused Investment Planning….To convert dream into

reality!

“ Never Invest In Any Idea

You Can’t Illustrate With A Crayon”

- Quoted By Peter Lynch

SIP may help you achieve your financial goals

Pen Down A Roadmap

Slide

Systematic Investment Plan (SIP)

can also be a

“Bridge Between Goal & Accomplishment”

Slide

SIP: Helps Develop Healthy Attitude Towards

Financial Goals

Key Lifetime

Goals

Comfortable

Life at

Retirement

Managing

Current

Requirement&

Emergency

Leaving a

legacy of

Wealth

Owning a

home & Car

Financing

Education of

Children

To Achieve Financial Goals

Wealth Building is Important

Power Of Compounding

Disciplined Savings & Investments Is A Must

Rupee Cost Averaging

Obviate The Need Of Timing

The Market

Slide

So What’s Your KEY To Achieve Financial Goals?

Its not the timing but the time in the market which matters

Start Early – Inculcate Savings habit & Invest Regularly

Invest Long term – Aim at Wealth Creation

Invest for a Goal

Last but not the least “Insure your goal”

Slide

SIP is a disciplined way to save small amounts month on month

Little by little…. You can save a lot

Your typical spends on weekends

A dinner for your family Movie for 2 Buying new clothes

What if you save a bit? Rs. 10000 pm saved over 10 years is Rs. 12 Lakhs

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Slide

Start Early & Invest Regularly

A & B invest Rs. 2000 every month, earning interest @ 8% p.a.(assumed rate) on a monthly

compounding basis

A starts at the age of 25 yrs, while B starts investing at the age of 35 yrs

Both of them invest for 5 yrs ( Rs. 1.2 lacs) and hold their investments till 60 yrs. of age

A’s investment appreciated to over Rs 14.88 lacs while B’s investment grew to only Rs. 6.89

lacs

Bottom Line - Just by starting early, A’s wealth grew more than double, that of B Only an illustration to explain the power of compounding.

Slide

Invest Long term

Money grows over a period of time…Rs 1000 invested at 8%p.a every month

for…

This is an hypothetical illustration to explain the concept of “Power of Compounding”. Past Performance may or may not be sustained

in future.

KEEP SIPING

Bottom Line - Money grows over a period of time. As seen over longer term horizon, Rs 1000 p.m has

accumulated to

Rs 1.20 lakhs over 10 yrs which has grown to Rs 1.84 lakhs with an assumed rate of Interest of 8% p.a.

Rs 2.40 lakhs over 20 yrs which has grown to Rs 5.92 lakhs with an assumed rate of Interest of 8% p.a.

Slide

What does it take to create wealth…

This is just an illustration, explaining the power of compounding concept and should not be assumed as a promise, guarantee or forecast on

minimum returns and safeguard of capital. SIP does not assure a profit or guarantee protection against loss in a declining market. The calculation

shows the outcome of investing a specified amount at a certain assumed rate of interest per annum.

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 8% & 15% p.a respectively

Assumed Rate of

Returns 8% 15%

Value /Yrs 10 15 20 10 15 20

5,00,000 2,715 1,435 843 1,794 739 330

10,00,000 5,430 2,871 1,686 3,589 1,477 660

25,00,000 13,575 7,177 4,216 8,972 3,694 1,649

50,00,000 27,150 14,354 8,432 17,943 7,387 3,298

100,00,000 54,300 28,707 16,865 35,886 14,774 6,597

Slide

Everyone has one or more of the above reasons to invest for!

Child’s Education

Child’s Marriage

Housing

Retirement Car

Invest for a Goal

Most likely reasons to invest…..

Slide

Would you like

to guess the 8th

habit that we

got for you?

Insure your financial goals…..

Slide

How about?

14

+

Free life insurance cover provided as a part of an add on feature called as ‘Reliance SIP Insure’ is arranged and funded by Reliance Nippon Life

Asset Management Limited through “Reliance Group Term Assurance Plus” (UIN 121N104V01) of Reliance Nippon Life Insurance Company

Limited (IRDAI Reg. No. 121). Under Reliance SIP Insure, the investors are provided with life insurance cover without any extra cost (i.e free of

cost). The cost of the insurance premia will be borne by the AMC. Please refer to annexure for more details

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Reliance SIP Insure

15





Slide

Free Life Insurance Cover *-

Enjoy Insurance on SIPs

Inculcates savings

habit

Eliminates need for

timing markets

Helps averaging cost

of investment

Ensuring that the planned

investments are taken care

Market Linked NAV

based maturity

proceeds

Why Reliance SIP Insure ?

Investor Benefits - “Save, Grow & Insure”

Please refer to annexure for more details on free life insurance cover

Slide

Schemes

Reliance Growth Fund

Reliance Vision Fund

Reliance Tax Saver (ELSS) Fund

Reliance Retirement Fund – Wealth Creation Plan

Reliance Retirement Fund – Income Generation Plan

Eligible schemes

Slide

Goal Based Planning + Reliance SIP Insure

18

• Goals: Wealth

Creation

• Goals: Wealth

Creation

• Goals: Tax

Planning +

Wealth creation

• Goals:

Retirement &

Tax Planning +

Wealth Creation Reliance

Retirement Fund




Free Life

Insurance

Cover *

* Please refer to annexure for more details on free life insurance cover

Slide

Case for Goal based investment planning

Individuals hardly get time for tax planning !

Most of the times, it results in quick & a hasty decision

making process, when it comes to “where to invest?”

So as a savvy investor, how about looking at…..

Automating Yearly commitments towards tax planning

Doing away with timing the market

Aiming at Competitive Returns

Automated - Yearly SIP @ 1.5

lacs providing 80C benefit #

Wealth Creation in Retirement Fund(Wealth

Creation Plan)

Free Life Insurance Cover

of 15 lacs*

Reliance SIP Insure + Reliance Retirement Fund Please refer to annexure for more details on free life insurance cover. *Calculation of cover from 3rd year onwards- 120

Times the equivalent # Monthly SIP Installment = 120 X (1.5 lacs/12) , Refer to slide 25 for more details. # Maximum amount eligible for deduction under Section 80C of Income Tax Act, 1961 across various eligible schemes is Rs.

1.5 lacs and is subject to applicable tax laws

Slide

Annexure

Slide

An add-on feature of life insurance cover under a Group Term Insurance

provided to individual investors with a view to encourage individual investors

to save and invest regularly through Systematic Investment Plan (SIP) and

help them achieve their financial objective without any extra cost.

Objective:

In the unfortunate event of the demise of an investor during the tenure of the

SIP, the insurance cover will take care of the unpaid installments.

Thus, the nominee is compensated with the sum assured 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

investment amount, even if he/she dies prematurely.

Reliance SIP Insure





Slide

Commencement of Insurance Cover

The Insurance cover shall commence after “waiting period” of 45 days from the commencement

of SIP installments. However, the waiting period will not be applicable in respect of accidental

deaths.

Reliance SIP Insure

All individual investors enrolling for investments via SIP and

opting for ‘Reliance SIP Insure’

Frequencies/options: Monthly, Quarterly and/or Yearly

Only individual investors whose entry age is 18 years & more

and less than 51 years at the time of investment

In case of multiple holders in the any scheme, only the first

unit holder will be eligible for the insurance cover.

Slide

Minimum Investment per installment:

o Monthly - Rs.1000 per month & in multiples of Re 1^ thereafter

o Quarterly - Rs.3000 per quarter & in multiples of Re 1^ thereafter

o Yearly - Rs.12000 per year & in multiples of Re Re 1^ thereafter

^In the schemes of Reliance Tax Saver (ELSS) Fund & Reliance Retirement Fund

where minimum installment shall be in multiples of Rs 500 thereafter.

There is no upper limit.

Minimum Period of Contribution: Monthly –36 installments; Quarterly –12 installments; Yearly – 3

installments)

Maximum Period of Contribution: No upper limit for SIP tenure. The investor can opt for

Perpetual SIP also. However the insurance cover ceases when the investor attains 55 years of age

or upon the completion of the SIP insure tenure whichever is earlier.

Mode of payment of SIP installments is only through OTM and Direct Debit (Post Dated Cheques

shall not be accepted)

Reliance SIP Insure

Slide

Amount of Life Insurance Cover Available:

Under Reliance SIP Insure, the investors are provided with life

insurance cover without any extra cost (i.e free of cost) under a

Group Term Insurance scheme. The cost of the insurance premia will

be borne by the AMC.

The Life Insurance Cover under ‘Reliance SIP Insure’ facility will be as

per the following clause across all options / frequencies;

Year 1 – 10 Times the equivalent # Monthly SIP Installment

Year 2 – 50 Times the equivalent # Monthly SIP Installment

Year 3 onwards – 120 Times the equivalent # Monthly SIP

Installment

Limits above are subject to maximum coverage of Rs. 21 lakhs per investor **

**Since the limit is per investor, all his existing investments in Reliance SIP Insure across all

eligible schemes will be considered for calculating the maximum sum assured limit.

Reliance SIP Insure





Slide

Step 1- Before he calculates as per the formula, he should find out the equivalent

monthly installment for his SIP amount.

For Quarterly frequency, it is 3000/3 = Rs 1000 becomes his equivalent monthly SIP

installment

For Yearly frequency, it is 12000/12 = Rs 1000 becomes his equivalent monthly SIP

installment

Step 2 – Now he can refer to the formula for calculation of eligible insurance cover

(under quarterly as well as yearly frequencies each) which is as follows;

The Life Insurance Cover under ‘Reliance SIP Insure’ facility will be as per the

following clause;

Year 1 – 10 Times the equivalent # Monthly SIP Installment = 10 * 1000 = Rs 10,000

Year 2 – 50 Times the equivalent # Monthly SIP Installment = 50* 1000 = Rs

50,000

Year 3 onwards – 120 Times the equivalent # Monthly SIP Installment = 120 * 1000

= Rs 1,20,000

Reliance SIP Insure

# Illustration for Calculation of Life Insurance Cover

Suppose a person has enrolled for SIP under quarterly frequency with Min

installment amount of Rs 3000 per quarter for a period of 3 years & also for

yearly frequency with Min installment amount of Rs 12000 per year for a period

of 3 years.

Following is the way he should calculate the eligible life insurance cover

for different years;

Slide

The Life Insurance Cover under “Reliance SIP Insure” facility shall be as per the above terms and

conditions, subject to a maximum of Rs 21 lakhs per investor across all schemes / plans and folios, in

lumpsum, which will be paid/credited to the Nominee's bank account directly by the insurance company, in

the event of the death of the Unit Holder (subject to the terms and conditions of the insurance, read along

with the Certificate of Insurance, of the Group Term Insurance policy).

Note: Investors are requested to note the terms and conditions of the respective lock in period clause that shall be applicable for each SIP Insure

installment under the respective Scheme(s) e.g. 3 years in case of Reliance Tax Saver (ELSS) Fund and 5 years in case of Reliance Retirement fund –

(Wealth Creation Scheme & Income Generation Scheme)

Insurance cover would cease, if investor redeems (fully / partially) or switches out^^ (fully / partially) units

before completion of the Reliance SIP Insure tenure or discontinues his SIP before completion of

minimum period of contribution (Monthly –36 installments; Quarterly –12 installments; Yearly – 3

installments) of the opted SIP tenure

^^Switch out / Auto transfer between Reliance Retirement Fund ‐ Wealth Creation Scheme to Reliance Retirement Fund ‐Income Generation Scheme

or vice a versa will not be considered for Cessation of Insurance Cover.

Reliance SIP Insure

Slide

However, the insurance cover will continue if the SIP stops after the minimum period of contribution

(Monthly –36 installments; Quarterly –12 installments; Yearly – 3 installments) of the opted SIP tenure &

the sum assured, in such a scenario, will be equivalent to the fund value* subject to maximum of 120

times the equivalent # Monthly SIP Installment or max sum assured limit i.e 21 Lakhs whichever is lower.

The insurance cover will be continued till the committed tenure is completed or till 55 yrs of age whichever

is earlier.

* Fund Value = Value of units, accumulated under SIP Insure, at the last successfully executed SIP date seen from the day on which SIP is

discontinued.

The insurance amount as per the above sum assured clause under revised features subject to a

maximum of Rs. 21 lakhs in a lumpsum will be paid/credited to the Nominee's bank account directly by the

insurance company, in the event of the death of the Unit Holder (subject to the terms and conditions of the

insurance, read along with the Certificate of Insurance, of the Group Term Insurance policy).

Reliance SIP Insure

Slide

This amount will be paid/credited to the Nominee's bank account directly by the insurance company, in the

event of the death of the Unit Holder (subject to the terms and conditions of the insurance, read along with

the Certificate of Insurance, of the Group Term Insurance policy).

Reliance SIP Insure

An investor does a yearly SIP of Rs.1,50,000 for 10 years

in Reliance Retirement Fund- Wealth creation plan

Upon his unfortunate demise post 5 yrs of SIP Insure, if one

were to calculate the eligible sum assured, it will be as follows;

Sum Assured = 120 times * equivalent monthly sip installment

= 120 X 12,500

= Rs 15,00,000 (15 lacs)

Slide

Maximum Sum Insured with different Monthly SIP amounts over different years

The table shows the SIP amount per month to be invested for the required Eligible Insurance Cover as per the respective year of SIP.

For example, to have a maximum cover of Rs 21 lacs from 3rd year onwards of the registration of Reliance SIP Insure Facility, one

can invest Rs 17,500 p.m

Life Insurance

Cover targeted

Mthly SIP

Installment

year 1 (10

times of Mthly

SIP)

year 2 (50 times

of Mthly SIP)

year 3 onwards

(120 times of

Mthly SIP)

2,100,000 17,500 175,000 875,000 2,100,000

2,000,000 16,670 166,700 833,500 2,000,400

1,500,000 12,500 125,000 625,000 1,500,000

1,000,000 8,400 84,000 420,000 1,008,000

500,000 4,200 42,000 210,000 504,000

100,000 1000 10,000 50,000 120,000

Reliance SIP Insure

Slide

Cessation of Insurance Cover : The insurance cover shall cease

upon occurrence of any of the following:

1. At the end of mandated Reliance SIP Insure tenure. i.e., upon

completion of payment of all the installments as registered or till

attaining 55 years of age whichever is earlier

2. Discontinuation of SIP installments before completing the

minimum period of contribution (Monthly –36 installments;

Quarterly –12 installments; Yearly – 3 installments) of the opted

SIP tenure

Reliance SIP Insure

3. Partial or Full Redemption / switch-out^ of units purchased under Reliance SIP Insure before

completion of the mandated SIP tenure / installments or till attaining 55 years of age, whichever is

earlier

4. In case of default in payment of two consecutive monthly /quarterly /yearly SIP installments or four

separate occasions of such defaults during the tenure of the SIP duration chosen or till attaining 55

years of age, whichever is earlier.

^^Switch out / Auto transfer between Reliance Retirement Fund ‐ Wealth Creation Scheme to Reliance Retirement Fund

‐Income Generation Scheme or vice a versa will not be considered for Cessation of Insurance Cover.

Slide

Exclusions for Insurance Cover under ‘Reliance SIP Insure Scheme’:

No insurance cover shall be admissible in respect of death of the SIP-

Insure unit-holder (the insured person) on account of -

Death due to suicide shall be dealt with as per IRDAI Regulations

Death within 45 days from the commencement of SIP installments.

However the waiting period will not be applicable in respect of accidental

deaths.

Death due to pre-existing illness, disease(s) or accident which has

occurred prior to the start of cover.

Reliance SIP Insure

Load Structure

Exit load structure as prevailing at the time of investment /registration of SIP in the respective

eligible schemes of Reliance SIP Insure shall be applicable.

Slide

It is mandatory for each investor to sign and submit the following

documents under this facility;

a. Application Form (Nomination is mandatory for all investors with

mode of holding as single, Joint & Any one or Survivor)

b. SIP Insure Enrollment / One Time Bank Mandate (OTBM)

c. Authorization Mandate (forms part of Application Form)

Reliance SIP Insure

Slide

Name of Scheme This product is suitable for investors who are

seeking*:


(An Open Ended Equity

Growth Scheme)

• long term capital growth

• investment in equity and equity related

instruments through a research based

approach


(An open ended Equity Growth

Scheme)



instruments through a research based

approach


(An open ended Equity Linked

Savings Scheme)



securities

Reliance Retirement Fund –

Wealth Creation Scheme

(An open end notified tax

savings cum pension scheme

with no assured returns)

• long term growth and capital appreciation

• Investment primarily in equity and equity

related instruments and balance in fixed

income securities so as to help the investor in

achieving the retirement goals

Reliance Retirement Fund –

Income Generation Scheme

(An open end notified tax

savings cum pension scheme

with no assured returns)

• Income over long term along with capital

growth

• Investment primarily in fixed income securities

and balance in equity and equity related

instruments so as to help the investor in

achieving the retirement goals

PRODUCT LABELS

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Slide

Free life insurance cover provided as a part of an add on feature called as

‘Reliance SIP Insure’ is arranged and funded by Reliance Nippon Life Asset Management Limited through

“Reliance Group Term Assurance Plus” (UIN 121N104V01) of Reliance Nippon Life Insurance Company

Limited (IRDAI Reg. No. 121). On exercising an option to become a member of insurance scheme, the death

benefits (subject to the terms and conditions of the insurance, read along with the Certificate of Insurance, of

the Group Term Assurance Plus Policy), shall be paid/ credited directly to investor's nominee by Reliance

Nippon Life Insurance Company Limited. The investor is advised to refer to detailed sales brochure of

Reliance Group Term Assurance Plus before deciding to opt for insurance cover. Please refer to

http://www.reliancenipponlife.com/ for more details. There is no compulsion whatsoever that this insurance

cover has to be taken together with SIP. SIP is also available without insurance cover

Reliance SIP Insure is a special feature available under selected schemes of Reliance Mutual Fund and is

subject to such limits, operating guidelines, terms and conditions. Investors are requested to refer to the

Scheme Information Document (SID), Statement of Additional Information (SAI), Key Information

Memorandum (KIM) cum Application Form for further details.

The information herein above is meant only for general reading purposes and the views being expressed only

constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional

guide for the readers. Before making any investments, the readers are advised to seek independent

professional advice, verify the contents in order to arrive at an informed investment decision.

None of the Sponsors, the Investment Manager, the Trustee, their respective directors, employees, affiliates

or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive

or exemplary damages, including on account of lost profits arising from the information contained in this

material.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimers

http://www.reliancenipponlife.com/







Thank You

reliance sip insure - mutual fund · in future. keep siping ... free life insurance cover provided...

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