Reliance SIP+Insure Forms Downloads

Kindly find the link to download forms for Reliance SIP+Insure

Reliance SIP+Insure Form Download(<-Click here) (A new window to a file sharing site shall open)

This forms are for No Broker(ARN-Direct) Applications only. In case you have an existing broker and wish to continue with the same kindly do not download this form.


Why not to invest in Reliance SIP+Insure Plan

Listed below are reasons why you should not invest in Reliance SIP+Insure.

7 Reasons for not investing in Reliance SIP+Insure Plan.

1] The type of Insurance is Group Insurance Policy. The cheapest and easiest form of insurance policy available with any insurance company.

2] Only the 1st Holder is insured. So, in case, a couple subscribes to SIP +Insure then only one person can avail of the insurance benefits.

3] The Sum Assured, in case of death is not paid to the nominee, but shall go back to the scheme of the AMC(Reliance Asset Management Company). Remember, the scheme benfits more than the dependents of the deceased in case of death of the holder.

4] Huge exit load of 2% for discontinued SIP. If you agree to pay your SIP for 11 yrs but pay only for 10 long and tiring yrs, still the scheme charges you 2% for the remaining 1 yr which you do not wish to continue.(learn to calculate exit load charges)

5] No insurance upto 90 days (exception to it is accident cases only) , i.e 3 months. In case of death within 3 months, except of accidental deaths, the scheme shall not pay the dependents a penny.

6] The dependents will end up paying the scheme 2% back if the death occurs within 3 months due to reasons other than accidental death.

7] Minimum period of investment is 3 yrs and Rs 2,000 for each installment, i.e totalling to Rs 36,000 for Group insurance worth less than 10 lacs.

There are group insurance polices availables at a very low costs, which can be availed of for insurance requirements. Insurance worth of Rs 10 lacs may or may not be sufficient for your entire family’s needs.

The Exit loads are relatively very high even if investor is paying his SIP for a long period, if he discontinues even 1 day prior, he ends up paying 2% Exit loads.

Sunny Side to life :

SIP is also available without this offer.

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Reliance SIP + Insure

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Reliance SIP + Insure

Reliance SIP Insure (Systematic Investment Plan) facility is an add on feature of life insurance cover under Group Term Insurance to individual investors opting for SIP in the designated schemes.

It helps to encourage individual investors to save & invest regularly through Systematic Investment Plan (SIP) and help achieve their financial objective without any hindrance

What is the Facility?

  • Reliance SIP Insure provides free life insurance cover to investors at no extra cost. In the unfortunate event of the demise of an investor during the tenure of the SIP, the insurance company will pay for the sum assured as per the terms and conditions of the facility.
  • Thus, the nominee* would be able to continue in the scheme 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 time horizon, even if he/she dies prematurely.

Reliance SIP Insure- Benefits to the investor

**The benefit of Long Term Equity Investment

  • Equities provide relatively better returns among all asset classes over a longer period of time

**The benefit of Systematic Investment Plan:

  • Inculcates Savings Habit
  • Rupee Cost Averaging & Eliminates the need to time the market

**Free Life Insurance Cover

  • Helps to complete the planned investments
  • Maturity Proceeds at NAV based prices


  • Wide choice of eligible schemes


  • Auto Debit from 4 banks namely ICICI bank, HDFC bank, AXIS bank & HSBC
  • ECS facility across – 65 locations

*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding

Designated Schemes in which Reliance SIP Insure will be offered

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

Amount of Life Insurance Cover Available:

Under Reliance SIP Insure, the investors are provided life insurance cover without any extra cost under a Group Term Insurance scheme.

The Life Insurance Cover under ‘SIP Insure’ facility will be enhanced as per the following clauses;

  • In the event of death of unit holder within the 1st two years of the commencement of the insurance cover: An amount equivalent to the aggregate balance of unpaid SIP instalments, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios.
  • In the event of death of the unit holder after completion of 2 years (i.e. w.e.f. commencement of 3rd year onwards): An amount equivalent to two times the targeted SIP contribution (committed at the time of registration) i.e. Number of SIP Instalments enrolled for X Amount of Instalment X 2, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios.

The amount of life insurance cover shall be invested in the Nominee’s account in the same scheme* under which the deceased investor has enrolled for SIP Insure at the applicable price based on the closing NAV on the date on which the cheque for insurance claim settlement is received by the AMC from the insurance company, subject to completion of requisite procedure for transmission of units in favour of the nominee.

* Not applicable for Reliance Tax Saver (ELSS) Fund. Investors are requested to note that there will be a lock – in period of 3 years for each SIP Insure installment under ‘Reliance Tax Saver (ELSS) Fund’ as per the Government Notification of 2005 and in the event of demise of the unitholder, the nominee would be able to withdraw the investment amount only after the completion of one year from the date of allotment of the units or anytime thereafter without any exit load. The insurance amount as per the above clauses a) and b) subject to a maximum of Rs. 10 lakhs in a lumpsum in cash will be paid to the nominee in case of death of the unitholder (unlike other schemes, wherein the insurance amount will be compulsorily invested in the respective scheme and the nominee is allotted the units.)

Thus, the amount of free life insurance cover could go upto 360 times of the monthly SIP installment depending upon the enrolled SIP tenure.


  • All individual investors enrolling for investments via SIP & opting for ‘Reliance SIP Insure’
  • Only individual investors whose completed age is greater than 20 years and less than 46 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.

Investment Details

  • Minimum Investment per installment: Rs.1000 per month & in multiples of Re 1 thereafter. (Except for Reliance Tax Saver (ELSS) Fund where it is Rs 1000 p.m and in multiples of Rs 500 thereafter). There is no upper limit.
  • Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter.
  • Maximum Period of Contribution: 15 years OR till attaining 55 years of age, whichever is earlier (e.g., a person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The insurance cover ceases when the investor attains 55 years of age.
  • Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated Cheques shall not be accepted )

Reliance SIP Insure – How does this work?

  • An investor does a monthly SIP of Rs.5,000 for 5 years in Reliance Growth Fund
  • If he dies after a period of 3 yrs, then his Sum Assured= Number of SIP Instalments enrolled for X Amount of Instalment X 2 = 60 X 5,000 X 2 = Rs 3 lacs X 2 = Rs 6,00,000

This amount will be paid by life insurance company to SIP investor’s nominee account* with Reliance Mutual Fund and will be invested in Reliance Growth Fund (in the same scheme in which the deceased has earlier invested)

Commencement of Insurance Cover: The Insurance cover shall commence after “waiting period” of 90 days from the commencement of SIP installments. However, the waiting period will not be applicable in respect of accidental deaths.

*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding

Cessation of Insurance Cover:

The insurance cover shall cease upon occurrence of any of the following:

  • At the end of mandated Reliance SIP Insure tenure. i.e., upon completion of payment of all the monthly installments as registered.
  • Discontinuation SIP installments midway by the investor i.e., before completing the opted SIP tenure /installments.
  • Redemption / switch-out of units purchased under Reliance SIP Insure before completion the mandated SIP tenure / installments
  • In case of default in payment of two consecutive monthly SIP installments or four separate occasions of such defaults during the tenure of the SIP duration chosen.

Note -There is no provision for revival of insurance cover, once the insurance cover ceases as stated above

Exclusions for Insurance cover

No insurance cover shall be admissible in respect of death of the SIP-Insure unitholder (the insured person) on account of –

  • Death due to suicide
  • Death within 90 days from the commencement of SIP installments except for death due to accident
  • Death due to pre-existing illness, disease(s) or accident which has occurred prior to the start of cover.

Load Structure

  • The Entry Load under Reliance SIP Insure shall be same as applicable to normal purchase /additional purchase transactions in the respective designated schemes
  • However, there will an Exit Load of 2%, if the accumulated units acquired or allotted under Reliance SIP Insure are redeemed or switched out to another scheme before the maturity of SIP tenure as opted in the respective scheme either by the SIP-Insure unitholder or by the nominee*, as the case may be.


  • In the event of the death of the investor before completion of SIP Insure Tenure, in case of any contingency there is an option with the nominee* to redeem the amount by paying an exit load of 2% on the repurchase units.
  • However, if the units are redeemed on completing the opted SIP tenure, there will not be any exit load in the respective scheme.

*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding
The insurance cover for the above schemes is being arranged by the AMC through “Reliance Group Term Insurance Scheme” of Reliance Life Insurance Company Limited. The cost of the insurance premia shall be borne by the AMC.
Free life insurance cover provided as a part of an add on feature called as ‘Reliance SIP Insure’ is arranged and funded by Reliance Capital Asset Management Limited through “Reliance Group Term Insurance Scheme” of Reliance Life Insurance Company Limited.
During the first 2 years of coverage, the sum assured will be limited to the sum of the outstanding SIP instalments from the date of death to be payable in lump sum, subject to a maximum of INR 10 Lakhs. From the third year onwards, the sum assured will be a flat cover equivalent to twice the initial sum assured (i.e., monthly SIP instalment * SIP period in months), subject to a maximum of INR 10 Lakhs. Subject to Conditions.

Source : Reliance Mutual Fund website.

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We dont need no ULIP’s anymore.

Now various mutual fund houses have introduced Funds with insurance cover. And the product seems to a good match to ULIP. If product such as RELIANCE SIP, Century SIP from Birla MF catch on, the insurance agent might well be history.

Ganpat Bhai is an insurance agent. Be it the wedding of his friend’s daughter or a relative’s friend never misses a chance to sell a unitlinked insurance plan (Ulip) or two. Ganpat Bhai has sold them for years, playing on the twin emotions of fear and greed commonly found in human beings. For those who feared the future, he sold Ulip as insurance. And, for thhose who wanted their money to multiply, he sold them as investments.
Never mind the fear of mis-selling, client profiling which required, he managed to sell same product to all.
Mutual Funds often lost out because Ulip had this liquid-like property, where they took the shape of whatever vessel they were poured into. MF’s were rigid-they were purely investment products and did not provide for worldly happenings such as death.
Then, fund houses suddenly woke up. Take a leaf out of the insurance companies’ book, they started offering plans that offered insurance, too. DejaVu, the life of insurance agents turned into nightmares all of a sudden. The sky high commissions, mis-selling that they were used to all seemed to disappear in thin air.

Reliance SIP and Birla Sun Life Mutual Fund’s Century SIP is the latest in that line. Birla’s SIP is a systematic investment plan (SIP) that is optional. The plan should not be confused with a mutual fund scheme. While a scheme has a specific investment objective, an SIP is just a mode of investment that can be applies to any of the various schemes offered by a fund house. At present, Century SIP will be available on all 18 open-ended equity scheme offered by the fund house.
To participate in this plan, an investor needs to invest a minimum of Rs.1,000 every month. There is no upper limit for this investment. Under this plan, an MF investor will get insurance cover on his life 45 days after paying the first instalment. While some fund house charge a fee for this cover, Birla MF is offering it free of charge. In the first 45 days, only accidental deaths will be compensated.
The cover will be available to the investor till he or she turns 55. So the tenure of the cover under Century SIP will be 55 years minus the current age of the investor.
For an investor aged 40 years and five months, the tenure of the Century SIP insurance cover will be 14 years and seven months. Let’s say an investor starts an SIP of Rs 5,000 per month. If he dies within the first year of paying his instalments, his nominee is eligible for a cover of 19 times the SIP amount- Rs 50,000. If he dies during the second year of SIP payments, the nominee get 50 times the SIP amount as the life cover – Rs2.5 lakh. And if he dies any time in the third year or after that, the nominee gets 100 times the monthly SIP amount Rs5 lakh. Here again, thecover is subject to a maximum of Rs20 lakh.
The cover cannot be claimed if the SIP is discontinued before the completion of three years or if the investor defaults on payments of instalments on two consecutive occasions.
Investor who can afford to set aside at least Rs. 1,000 every month for equity investments can take this offer, depending, of course, on the underlying scheme’s compatibility with your investment goal. Thus, if none of the Birla schemes fits your needs, you should not take one just because it offers free insurance. But if one does, the Century SIP is a good reason to make that switch.
Ganpat Bhai still believes only insurance companies can offer good insurance. But, sooner or later, as the trend catches on, be sure even he will come around to seeing sense.

SIP with Life Cover from Reliance Mutual Fund

Reliance MF offers life insurance cover through SIP investment.

Reliance MF has introduced an add-on feature into their 10 schemes ‘Reliance SIP Insure’ to encourage investors to save and invest regularly through Systematic Investment Plan (SIP), to ensure that investors achieve their financial objective even in the unfortunate event of death before completing the SIP tenure as the balance amount towards the SIP installments remaining unpaid shall be made good from the life insurance cover and the nominee would be able to continue investing in the scheme without having to make any further contribution. The cost of life insurance premium will be borne by the AMC. The ‘Reliance SIP Insure’ feature will be available under the following schemes as: Reliance Growth fund, Reliance Vision Fund, Reliance Diversified Power Fund, Reliance Regular Saving Equity and Balance Option, Reliance Banking Fund, Reliance Pharma Fund, Reliance Media and Entertainment Fund, Reliance Equity Fund, Reliance Equity Opportunities Fund, Reliance Equity Advantage Fund.

Click Here to download latest Fact Sheet of Reliance Mutual Fund(May 2008 Factsheet).

Click Here to open a Reliance Mutual Fund account.

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Systematic Investment Plan( SIP)

The importance of Systematic Investment Pan.
The strategy and/or plan of investing at regular intervals is just as applicable to mutual funds as it is to common stock. Establishing such a plan can substantially reduce your long-term market risk and result in a higher net worth over a period of ten years or more.

A Technique that Drastically Reduces Market Risk

Systematic Investment Plan is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Many successful investors already practice without realizing it. Many others could save themselves a lot of time, effort and money by beginning a plan. In this article, you will learn the three steps to beginning a Systematic Investment Plan plan, look at concrete examples of how it can lower an investor’s cost basis, and discover how it reduces risk.

Systematic Investment Plan: What is It?

Instead of investing assets in a lump sum, the investor works his way into a position by slowly buying smaller amounts over a longer period of time.

This spreads the cost basis out over several years, providing insulation against changes in market price.

Setting Up Your Own Systematic Investment Plan Plan
In order to begin a Systematic Investment Plan plan, you must do three things:

Decide exactly how much money you can invest each month. Make certain that you are financially capable of keeping the amount consistent; otherwise the plan will not be as effective.
Select an investment (index funds are particularly appropriate, but we will get to that in a moment) that you want to hold for the long term, preferably five to ten years or longer.
At regular intervals (weekly, monthly or quarterly works best), invest that money into the security you’ve chosen. If your broker offers it, set up an automatic withdrawal plan so the process becomes automated.
An Example of a Systematic Investment Plan Plan
You have Rs15,000 you want to invest in XYZ Stock common stock. The date is January 1, 2000. You have two options: you can invest the money as a lump sum now, walk away and forget about it, or you can set up a Systematic Investment Plan plan and ease your way into the stock. You opt for the latter and decide to invest Rs1,250 each quarter for three years. (See chart for math of Systematic Investment Plan plan.)

Had you invested your Rs15,000 in January 2000, you would have purchased 264.46 shares at Rs56.72 each. When the stock closed for the year in December of 2002 at Rs13.69, your holdings would only be worth Rs3,620!

Had you Systematically Invested (thru SIP) into the stock over the past three years, however, you would own 746.21 shares; at the closing price, this gives your holdings a market value of Rs10,216. Although still a loss, XYZ Stock must only go up to Rs20.10 for you to break even, not Rs56.72, which would have been required without the Systematic Investment Plan.

To go a step further, without Systematic Investment Plan you would break even at Rs56.72. With Systematic Investment Plan, you would have turned a profit of Rs27,326 when the stock hit that price thanks to your lower cost basis (Rs56.72 sell price – Rs20.10 average cost basis = Rs36.62 profit x 746.21 shares = Rs27,326 total profit.)

Combining the Power of Systematic Investment Plan with the Diversification of a Mutual Fund
Index funds are passively managed mutual funds that are designed to mimic the returns of benchmarks such as the S&P 500, the Dow Jones Industrial Average, etc. An investor that puts money into a fund designed to mimic the Wilshire 5000, for example, is literally going to own a fractional interest in every one of the five thousand stocks that make up that index. This instant diversification comes with the added bonus. Traditionally, management fees of passive funds are less than one-tenth those of their actively managed counterparts. Over the course of a decade, for example, this can add up to tens of thousands of Rupees the investor would have paid in fees to the mutual fund company that, instead, are accruing to his or her benefit.

The Systematic Investment Plan component reduces market risk, while the index fund investment reduces company-specific risk. This combination can be among the best investment options for Rs individuals looking to build up their long term wealth by having a portion of their portfolio in equities.

Table 1: XYZ Stock with Systematic Investment Plan Plan
Invest date Amount Price per share Shares purchased
Jan. 2000 Rs 1,250 Rs 56.72 22.04
Apr. 2000 Rs 1,250 Rs 54.19 23.07
Jul. 2000 Rs 1,250 Rs 31.34 39.27
Oct. 2000 Rs 1,250 Rs 22.60 53.31
Jan. 2001 Rs 1,250 Rs 22.10 56.50
Apr. 2001 Rs 1,250 Rs 19.05 65.62
Oct. 2001 Rs 1,250 Rs 18.13 68.95
Jan. 2002 Rs 1,250 Rs 16.14 77.45
Apr. 2002 Rs 1,250 Rs 14.58 85.73
Jul. 2002 Rs1,250 Rs 8.66 144.34
Oct. 2002 Rs1,250 Rs11.64 107.39
Total Rs15,000 Rs20.10 avg. 746.21 sharesowned.