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The primary investment objective of the scheme is to seek to generate regular returns and growh of capital by investing in a diversified portfolio of

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Latest NAVs

Scheme	Current NAV	Nav Date
3YEAR PLAN-SERIES-I - INSTITUTIONAL DIVIDEND PLAN	10.0000	06 Apr 2010
3YEAR PLAN-SERIES-I - INSTITUTIONAL GROWTH PLAN	13.0633	06 Sep 2010
3YEAR PLAN-SERIES-I - RETAIL DIVIDEND PLAN	12.9800	06 Sep 2010
3YEAR PLAN-SERIES-I - RETAIL GROWTH PLAN	12.9800	06 Sep 2010

Product Features

RATIONALE FOR LAUNCHING THIS FUND

Reliance Fixed Horizon Fund V - 3 Years Plan - Series 1 provides a good investment opportunity with;
The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of: -

Risk adjusted returns on a holding period of 3 years with Nil exposure in equities
Low Volatility in returns since the maturity of the scheme will be in line with the maturity of the instruments in the portfolio
Investment in good credit instruments with an aim of capital preservation & competitive returns
Gives the benefit of triple indexation for the investors

It will endeavor to maintain a consistent performance by maintaining an optimum balance between safety and yield, with minimum interest rate risk.

Investment Objective
The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of: -

Central and State Government securities and
Other fixed income/ debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility

Type of Scheme : A close – ended income scheme

Duration of in this Fund

3 years from the date of allotment of units

PLANS
Each Series will have the following plans;

Institutional Plan
Retail Plan

Each Plan will have a growth and dividend option
(There is no assurance or guarantee as to the rate and frequency of dividend distribution. Dividend distribution is subject to availability of distributable surplus in the scheme.)

Asset Allocation Pattern

Instrument	Asset Allocation		Risk Profile
	Minimum	Maximum
Money Market instruments	0%	70%	Medium to Low
Government Securities issued by Central &/or State Govt & other fixed income/ debt securities* including but not limited to Corporate bonds and securitised debt	30%	100%	Medium to Low

*Debt Securities will also include Securitised Debt, which may go up to 100% of the portfolio. Average maturity of the securities will be in line with the maturity profile of the scheme. The above is only indicative and the trustees reserve the right to change the above pattern in the interest of the investors depending on the market conditions for a short-term period of defensive consideration

Minimum Subscription Amount

Institutional Plan - Rs. 1 crore per option and in multiples of Re. 1 thereafter
Retail Plan – Rs. 5,000/- per option and in multiples of Re. 1 thereafter.

Applicable Load Structure in this Fund

Entry Load	Exit Load
Nill	1.50% if redeemed on or before completion of 1 Year 1.00% if redeemed between 1 year-1 day & on or before completion of 2 Years 0.50% if redeemed between 2 year-1 day & before completion of 3 Years

No exit load will be charged on redemptions made upon maturity of the series launched under the Scheme. No load will be charged on Inter-Option switches (i.e. within growth and dividend options) within the same plans however, units cannot be switched to different Plans.
RCAM, in consultation with the Trustees, reserves the right to change the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Scheme, on a prospective basis.

Benchmark

Crisil Composite Bond Fund Index

Issue Price

The new fund offer price will be Rs. 10 per unit for various series launched under the scheme.

Initial Issue Expenses

The initial issue expenses incurred during new fund offer will be debited to the scheme to the extent of 6% of the funds raised during the New Fund Offer and the same will be amortized over a period of the scheme. However, as per SEBI (Mutual Funds) Regulations, 1996, any expense more than 6% of the initial net assets shall be borne by the AMC.

Further, the investors are requested to note that, if the units are redeemed before maturity of the respective plan then an amount equivalent to the proportionate unamortized initial issue expense would be recovered from the investor over and above the exit load.

Example : An example to illustrate the impact of initial issue expenses on Net Asset Value is given below :
For Series 1
Suppose the scheme has mobilized Rs. 100 crore during the NFO period and Rs.6 crores has been incurred towards Initial Issue expenses. Rs. 6 cores will be amortized equally on a daily basis over a period of 36 months. If any investor opts for redemption of 10,000 units after expiry of 6 months, unamoritsed balance of Initial Issue expenses will be recovered from the investor by way of an early exit charge. This will be calculated as follows;
NFO Mobilisation Rs. 100 crores
NFO Units Creation 10 crore (100/10)
NFO Expenses Rs. 6 crore
Amortisation Period 36 months
Amortisation Per Day (6,00,00,000/(36*30) = Rs.55555.56
Amortisation Per Unit Per Day (55555.56/100000000) = Rs. 0.000556
Units redeemed after 6 months 10,000
Per Unit At the end of 6 months = (4,99,99,999/10,00,00,000) i.e. 0.4999
Per Unit Early Exit Charge Applicable at the end of 6 months Rs. 0.4999
Unamortised Initial Issue Expenses
Assumed NAV at the end of 6 months Rs.10.5000
Amount payable to the investors Rs.10.5000(-)0.4999(-) 1.5% Exit Load= Rs.9.9801/-

Applicable NAV

Sale of Units by Reliance Mutual Fund

The Scheme will have a New Fund Offer period during which investors may purchase units from the Fund. After the expiry of the specified New Fund Offer period, the scheme will be closed for purchase of units. (Business Day shall have the same meaning as working day, wherever used)

Repurchase/Redemption :

In respect of valid applications received upto 3 p.m. by the Mutual Fund, same day’s closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day shall be applicable.

Fund Manager

Mr Amit Tripathi

Risk Factors

Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Co. Limited. Investment Manager: Reliance Capital Asset Management Limited. Statutory Details: The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. Terms of Issue: The AMC will calculate and publish the first NAV of the scheme not later than 30 days from the closure of the new fund offer. Subsequently the NAVs will be calculated and disclosed at the close of every business day. Redemption of units on all working days with applicable exit loads.

GENERAL RISK FACTORS :

Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. Reliance Fixed Horizon Fund V is only the name of the Scheme and do not in any manner indicate either the quality of the Scheme; it's future prospects or returns. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. The Mutual Fund is not guaranteeing or assuring any dividend/ bonus. The Mutual Fund is also not assuring that it will make periodical dividend/bonus distributions, though it has every intention of doing so. All dividend/bonus distributions are subject to the investment performance of the Scheme. For details of scheme features apart from those mentioned above and scheme specific risk factors, please refer to the provisions of the offer document. Offer Document and Key Information Memorandum cum Application Forms are available at AMC office/ Investor Service centres/AMC website / Distributors. The details contained herein are meant only for information purposes and nothing contained herein shall be construed to be an advertisement or solicitation for sale of Mutual Fund products. The AMC/Mutual Fund/Trustees accept no liability for the accuracy or adequacy of the information.
This note is meant only for the distributors/agents of Reliance Mutual Fund and is not meant for circulation to the members of public. Any distributor/agent circulating the same shall be responsible for any loss/damages & RCAM/RMF does not take any responsibility for such Acts.

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