Reliance Mutual Fund, like many mutual fund companies, is changing the names and categories of some of its mutual funds. This is happening after a recent circular by SEBI. This move by SEBI aims to make investing simpler for investors.
The new rule states that every mutual fund company can only have one mutual fund offering under each category.
Reliance Mutual Fund Name & Category Changes
|Old Scheme Name||Old Scheme Type||New Scheme Name||New Scheme Type|
|Reliance Diversified Power Sector Fund||An Open Ended Power Sector Scheme||Reliance Power & Infra Fund||
An Open Ended Equity Scheme investing in power & infrastructure sectors
|Reliance Media & Entertainment Fund||An Open Ended Media & Entertainment Sector Scheme||Reliance Consumption Fund||
An Open Ended Equity Scheme following consumption theme
|Reliance NRI Equity Fund||An Open-Ended Diversified Equity Scheme||Reliance Balanced Advantage Fund||An Open Ended Dynamic Asset Allocation Fund|
|Reliance Quant Plus Fund||An Open Ended Equity Scheme||Reliance Quant Fund||
An open ended equity scheme investing in quant model theme
|Reliance Regular Savings Fund – Balanced Option||An Open-Ended Scheme||Reliance Equity Hybrid Fund||
An open ended hybrid scheme investing predominantly in equity and equity related instruments
|Reliance Regular Savings Fund – Equity Option||An Open-Ended Scheme||Reliance Value Fund||
An open ended equity scheme following a value investment strategy
|Reliance Top 200 Fund||An Open-Ended Diversified Equity Scheme||Reliance Large Cap Fund||
An open ended equity scheme predominantly investing in large cap stocks
Reliance Mutual Fund Mergers
Two of Reliance Mutual Fund’s are being merged.
|Old Scheme Name 1||Old Scheme Name 2||New Scheme Name||New Scheme Type|
|Reliance Focused Large Cap Fund||Reliance Mid & Small Cap Fund||Reliance Focused Equity Fund||
An open ended Multi Cap Equity Scheme investing in maximum 30 stocks
Reliance Mutual Fund Names Changed: What to Do?
If Mutual Fund Name & Category Has Changed
If there is a category change, you might have to change your strategy of investment. These drastic changes are largely in equity mutual funds. Debt funds category names have changed too but there isn’t much difference in their investment style.
If you are confused, contact your mutual fund advisor for guidance on this issue.
Know More: New Mutual Fund Rules by SEBI: Categorization and Rationalization Of Mutual Fund Schemes
If Mutual Funds Are Being Merged
If mutual funds are being, you need not worry as the mutual fund company will take care of the merger. Since in the above mergers, there is no real category change, you do not need to make any changes to your investment strategy.
If Only Mutual Fund Name Has Changed
If only the name of the mutual fund has changed, then there is no need to worry or do anything. You can simply continue investing as you already were.
Why are Reliance Mutual Fund Names and Categories Changing?
There are several mutual funds offered by various mutual fund companies. Many of these are in effect duplicates of each other. Further, they also have names that might confuse and intimidate a new investor.
Keeping this in mind, SEBI has decided to recategorize mutual funds and schemes. It has also mandated that each mutual fund company can only have one mutual fund under each category.
Thus, all mutual fund companies are renaming, recategorizing, and merging mutual funds to comply with this circular by SEBI.
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