Being a Index based Mutual Fund, investors will have to rely upon the end of the day NAV calculations, and they will not have any opportunity to benefit from the intra-day price movements to trade on intraday basis, like that available in ETF's.
Other than that, there are charges for exit load which investors should be aware of.
The details are as below:
Overall, this Reliance Index Fund - Nifty Plan Sensex Plan Fund seems to be a large cap specific index fund.
Mr. Krishan Daga will be the fund manager.
The money will be invested in the following proportions:
95% to 100% - Stocks & Derivatives in the respective index specific stocks and derivatives
Rest 0-5% in domestic debt and money market instruments or cash
During NFO, the units of this Fund will cost Rs 10 per unit.
Are there any alternatives to Reliance Index Fund - Nifty Plan Sensex Plan Fund?
Yes, as mentioned above, Instead of an Index Fund, you can look for a same index based ETF or Exchange Traded Fund which is benchmarked to Nifty or sensex. You will get the benefit of both the prices as well as intraday price fluctuations enabling you to trade and benefit from intra-day price movements. You can even short an ETF but cannot short an index fund. See Comparison of Index Funds & ETF with Example
The Reliance Index Fund - Nifty Plan Sensex Plan Fund will be benchmarked to Nifty and Sensex respectively
Minimum Investment:
Purchases : Rs. 5,000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is available? - No info
No Tax Benefit is available in the Reliance Index Fund - Nifty Plan Sensex Plan Fund
Investment Options for Reliance Index Fund - Nifty Plan Sensex Plan Fund :
- Growth Plan:
- Dividend (Payout and Reinvestment)
The entry load for Reliance Index Fund - Nifty Plan Sensex Plan Fund is as follows:
Entry Load for Reliance Index Fund - Nifty Plan Sensex Plan Fund :
Zero Entry Load
Exit Load for Reliance Index Fund - Nifty Plan Sensex Plan Fund:
1% if the amount sought to be redeemed within 1 year from date of allocation.
Nil afterwards
Final Thoughts about the Reliance Index Fund - Nifty Plan Sensex Plan Fund?
This fund can be a good investment for investors willing to bet on the large caps and believe that the large cap index stocks will give good returns. However, nothing is guaranteed, as it will depend upon the trading activities of the fund manager. My verdict will be to go for the ETF's for the respective benchmark indices
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