Reliance amc


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Reliance amc

  2. 2. MUTUAL FUND ?“A mutual fund is a company that pools money from manyinvestors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets,or some combination of these investments. The combinedholdings the mutual fund owns are known as its portfolio.Each share represents an investors proportionateownership of the funds holdings and the income thoseholdings generate “
  3. 3. RELIANCE MUTUAL FUND• India’s leading Mutual Fund• Average Assets under Management: 1,02,179 Cr• Investor Count : 73 Lakh Folios• Presence in 159 Cities across country• 14 years of extensive market experience, 35 schemes combined with a strong performance track record. • - AMFI Website, 2010 WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 3
  4. 4. CONSTITUTION AND MANAGEMENT Sponsor Trust AMC Reliance Mutual Fund Reliance Capital Trustee (RMF) Co. Ltd [Name of Fund House] (RCTC) [Trustee] Reliance Capital Asset Reliance Capital Limited Management Limited (RCL) Net Worth : 841.32 Cr Reliance Mutual Fund [Trust]
  5. 5. 47 FUNDS  RCAMReliance Growth Fund Reliance Vision Fund Reliance Fixed Horizon Fund VI Reliance Liquidity Fund (June(September 1995) (September 1995) (December 2007) 2005)Reliance Income Fund Reliance Liquid Fund (March Reliance Fixed Horizon Fund VII Reliance Interval Fund (March(December 1997) 1998) (January 2008) 2007)Reliance Medium Term Fund Reliance Short Term Fund Reliance Fixed Horizon Fund IX Reliance Equity Advantage(August 2000) (December 2002) (March 2008) Fund (June 2007)Reliance Fixed Term Scheme Reliance Banking Fund (May Reliance Fixed Horizon Fund X Reliance Fixed Horizon Fund V(March 2003) 2003) (August 2008) (September 2007)Reliance Gilt Securities Fund Reliance Diversified Power Reliance Fixed Horizon Fund XII Reliance Fixed Horizon Fund IV(July 2003) Sector Fund (March 2004) (November 2008) (August 2007) Reliance InfrasReliance EquityReliance Monthly Income Plan Reliance Floating Rate Fund Reliance Fixed Horizon Fund Linked Saving Fund - Series I(December 2003) (August 2004) (April 2006) (December 2007)Reliance Pharma Fund ( May Reliance NRI Equity Fund Reliance Natural Resources Reliance Fixed Horizon Fund II (2004) (October 2004) Fund (January 2008) November 2006)Reliance Media & Reliance Fixed Horizon Fund Reliance Index Fund (February Reliance Long Term EquityEntertainment Fund VIII (March 2008) 2005)* Fund (November 2006)(September 2004)Reliance NRI Income Fund Reliance Fixed Maturity Fund – Reliance Banking Exchange Reliance Equity Fund (February(October 2004) Series I (March 2005) Traded Fund (May 2008) 2006) Reliance Fixed Horizon Fund XIReliance Equity Opportunities Reliance Regular Savings Fund Reliance Fixed Tenor Fund (October 2008)tructure FundFund (February 2005) (May 2005) (November 2005) (June 2009)Reliance Fixed Maturity Fund – Reliance Tax Saver (ELSS) Fund Reliance Gold Exchange Traded Reliance Fixed Horizon Fund ISeries II (April 2005) (July 2005) Fund (October 2007) (August 2006)Reliance Fixed Horizon Fund III Reliance Money Manager Fund(March 2007) (March 2007) WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 5
  6. 6. TRUSTEE AMC Registered Office: Corporate Office : Registered Office: Corporate Office : EO1, Reliance Greens, Express Building (4th & 6th EO1, Reliance Greens, Express Building (4th & 6th Village Motikhavdi, Floor), Village Motikhavdi, Floor), P.O. Digvijaygram, 14, E Road, Churchgate, P.O. Digvijaygram, 14, E Road, Churchgate, District Jamnagar - Opp. Churchgate Station, District Jamnagar - Opp. Churchgate Station, 361140 Mumbai 400 020. 361140 Mumbai 400 020. (GUJARAT) Tel. 022 – 3041 4800, (GUJARAT) Tel. 022 – 3041 4800, Reliance Capital Trustee Co. Limited (RCTC), acompany incorporated under the Companies Act, 1956, hasbeen appointed as the Trustee to the Fund vide the TrustDeed dated April 25, 1995 executed between the Sponsorand the Trustee. For Eg: OD says that RCTC has been appointed as the Trustee to “Reliance India Power Fund”, a Venture Capital Fund registered with the SEBI vide registration number IN/VCF/05-06/062 dated June 16, 2005 An application has also been filed for registration of “Reliance Venture Capital Fund” with SEBI. WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 6
  7. 7. BANKERS TO RCAM• ABN Amro Bank• Axis Bank• Citibank N. A.• Deutsche Bank AG• Development Bank of Singapore• HDFC Bank Limited• HSBC Bank• ICICI Bank Limited• IDBI Bank• Ing Vysya Bank• Kotak Mahindra Bank• State Bank of India• Standard Chartered Bank• Yes Bank WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 7
  8. 8. STRUCTURE OF AMC Board of Directors CEO Mr. Sudeep Sikka Head Equity Head Fixed Investments Income Mr. Madhusudan Mr. Amitabh Kela Mohanty Equity Fund Debt Fund Managers Managers WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 8
  9. 9. ROLE OF AMCTransparencyLiquidityFlexibilityDecision MakingValuationDrafting of Structure of Scheme
  10. 10. DUTIES AND OBLIGATIONS OF THE AMCCEO of AMC ensures fund complies withSEBI norms and investments made arein norms of Fund objectives as in OD Decision are taken by team comprising ofInvestment decisions made in interest  Fund Managersof unit holders.  Investment CommitteeFund Managers ensure thatinvestments are made in the interest ofUnit holders and as per the norms and Based onobjectives of FOD  Research ReportAMC shall not utilize the services ofSponsor for purchase of new securities  Market Intelligence  Analysis of Macro and Micro economicAMC reports data to both SEBI andTrustees. indicators  Market TrendsThe RCAM shall not invest in any of itsschemes unless full disclosure of itsintention to invest has been made in theoffer documents WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 10
  11. 11. IMA AND DUTIES OF RCAMa) RCAM will be responsible for making, floating, d) RCAM shall exercise all due diligence andissuing Schemes for the Trust after approval of the vigilance in carrying out its duties and in protectingsame by the Trustees and SEBI as well as investing the rights and interest of theand managing the funds mobilized under various unit holders.Schemes, in accordance with the provisions of the e) RCAM will at all times ensure that the Trust FundTrust Deed and SEBI Regulations. is segregated from assets of RCAM and assets ofb) RCAM must disclose the basis of calculating the any other funds for which RCAM is responsible.repurchase/redemption price and Net Asset Value f) RCAM shall submit to the Trustee all informationof the various Schemes of the Fund to the concerning the operation of the various Schemesinvestors, at such intervals as may be specified by of the Fund managed by RCAM at such intervalsSEBI and/or the Trustees and in accordance with and in such manner as required by the Trustee tothe SEBI Regulations. ensure that RCAM is complying with the provisions of the Trust Deed and SEBI Regulations.c) RCAM must maintain books and records aboutthe operation of various Schemes of the Fund toensure compliance with the Regulations andguidelines for Mutual Funds as may be issued bySEBI from time to time, and shall submit a Schemewise quarterly report on functioning of the Fund tothe Trustee or at such intervals and in such manneras may be required or called for by the Trustee orSEBI. WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 11
  12. 12. DUTIES AND OBLIGATIONS OF THE TRUSTEESTrustee main duties before Fund Launch:(i)Systems in place for its back office, dealing room and accounting(ii) Appointed all key personnel including fund manager(s) for the Scheme(s) and submittedtheir bio-data which shall contain the educational qualifications, past experience in thesecurities market to SEBI, within 15 days of their appointment;(iii) Appointed Auditors to audit its accounts;(iv) Appointed a Compliance Officer to comply with regulatory requirement and to redressinvestor grievances;(v) Appointed Registrars and laid down parameters for their supervision;(vi) Prepared a compliance manual and designed internal control mechanisms includinginternal audit systems; and(vii) Specified norms for empanelment of brokers and marketing agents.The Trustees shall obtain the consent of the unit holders of the Scheme:(i) Whenever required to do so by SEBI in the interest of the unit holders;(ii) Whenever required to do so, on the requisition made by three-fourths of the unit holdersof any Scheme under the Mutual Fund;(iii) When the majority of the Trustees decide to wind up the Scheme or prematurely redeemthe Units WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 12
  13. 13. DUTIES AND OBLIGATIONS OF THE TRUSTEES1. Trust Deed2. Right to Obtain Information from AMC3. Monitors broker and AMC transactions4. Ensures AMC works as per SEBI regulations, 19965. Informs SEBI for 1 Lac Plus transactions6. Informs Unit holders and SEBI for change in structure and load if situation demands change 1. Unit holders are given a option to Exit 2. Change is advertised in Leading Newspaper7. Periodically review service contracts like Custodian documents8. Periodically Review Customer Complaints and Review.9. Appoint Statutory Auditors and have one Independent Director10. Due Diligence11. Signs the IMA with the AMC12. Keeps a check on Vacant Positions and nominates individual.13. Prescribe and adhere to a code of ethics by the Trustees, Asset Management Company and its personnel. WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 13
  14. 14. THE CUSTODIANTrustee has appointed Deutsche Bank as CustodianDuties of Custodian: Provide post-trading and custodial services to the Mutual Fund; Keep securities and other instruments belonging to the Scheme in safe custody; Ensure smooth inflow/outflow of securities and such other instruments as and when necessary, in the best interests of the unit holders Be responsible for loss of or damage to the securities due to negligence on its part or on the part of its approved agents.The Custodian will charge the Mutual Fund, portfolio fee, transaction fee and out-of - pocket expenses in accordance with the terms of the Custody Agreement and as per any modification made thereof from time to time.
  15. 15. THE REGISTRAR•RCAM has appointed M/s. Karvy Computershare Pvt. Limited•As Registrar to the Scheme KCPL will  accept and process investors applications handle communications with investors perform data entry services  Dispatch Account Statements other functions as agreed, on an ongoing basis.•The Registrar is responsible for carrying out diligently the functions of aRegistrarand Transfer Agent and will be paid fees as set out in the agreement enteredinto with it and as per any modification made thereof from time to time. WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 15
  16. 16. FEES AMC Fees : In terms of the Investment Management Agreement and theRegulations, the AMC is entitled to a management and advisory fee at the rateof 1.25% of the average daily net assets for net assets up to Rs.100 crore andat the rate of 1.00% for the net assets in excess of Rs.100 crore. For Schemeslaunched on a No- Load basis, the AMC is entitled to collect and additionalmanagement fee of up to 1% of the average net assets outstanding in eachfinancial year and the total management fee shall not exceed the limit statedunder the Regulation 52(6) of SEBI.Trust Fees: Pursuant to the Trust Deed constituting the Fund, the Fund isauthorized to pay the Trustee, a fee for their services, in addition to thereimbursement of all costs, charges and expenses, sum computed at the rateof 0.05% of the amount, being the aggregate of the Trust Fund and Unit Capitalof all the Schemes put together on 1st April each year or a sum of Rs.5Lacs, which ever is lower or such other sum as may be agreed upon betweenthe Settler and the Trustee from time to time. The Trustee may charge furtherfees as permitted from time to time under the Trust Deed and the Regulations. WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 16
  17. 17. SPONSOR LOSS PROTECTIONRCL contributes Rupees One Lac as the initial contribution to the corpus for the setting up of the Mutual Fund.RCL is responsible for discharging its functions and responsibilities towards the Fund in accordance with the SEBI Regulations.The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the contribution of an amount of Rupees one lakh made by them towards the initial corpus for setting up the Fund and such other accretions and additions to the corpus
  18. 18. DUTIES AND OBLIGATIONS OF INVESTORStudy of Offer DocumentIn case of dividend declaration, investors have a right to receive the dividend within 30 days of declarationOn redemption request by investors, the AMC must dispatch the redemption proceeds within 10 working days of the request.Investors can obtain relevant information from the trustees and inspect documents like trust deed, investment management agreement, annual reports, offer documents, etc. They must receive audited annual reports within 6 months from the financial year end.Investors have a right to be informed about changes in the fundamental attributes of a scheme. Fundamental attributes include type of scheme, investment objectives and policies and terms of issue.Investors can approach the investor relations officer for grievance redressal
  19. 19. MUTUAL FUND CYCLE Investors Fund Returns manager Securities WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 19
  22. 22. TYPES OF MUTUAL FUNDS Type of Mutual Fund Schemes Special Structure Investment Schemes Objective Industry Open Ended Growth Funds Specific Funds Schemes Close Ended Index Income Funds Funds Schemes Balanced Sectoral Funds Schemes Money Market Funds WELINGKAR INST OF MANAGEMENT AND DEVELOPMENT 22
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