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.

Read More: Categorization and Rationalization of Mutual Fund Schemes

Happy investing!
Disclaimer: the views expressed here are of the author and do not reflect those of Groww.