Reliance Index Fund

Reliance Index Fund is managed by Mr. Krishan Daga. The scheme seeks to replicate the composition of the Sensex, with a view to generate returns that are commensurate with the performance of the Sensex, subject to tracking errors. The scheme’s performance has been pathetic in comparison to other funds in this category.

Where does Reliance Index Fund invest your money?

Reliance Index Fund is a large cap index fund which means majority of your money will be invested in stocks of large sized companies replicating the composition of sensex. Large cap companies tend to be stable compared to mid cap and small cap companies while mid cap companies give kicker returns. Presently it has just 99% exposure to large sized companies and just 1% exposure to cash and cash equivalents.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creation of wealth
  • Lifestyle needs
How has Reliance Index Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in October 2010, your value of investments would have sadly dropped to Rs 91,925. The performance has not been similar to other mid and small cap mutual funds. It has been giving around -4% returns for those who have stayed invested since inception.  

Assume you had invested Rs 10,000 every month in Reliance Index Fund through SIP since inception today you would just have around Rs 2.34 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Reliance Index Fund is 0.93%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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