I. HIGHLIGHTS, RISK FACTORS AND DUE · PDF fileI. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE ... accretions and additions to the corpus. - The Mutual Fund is not guaranteeing or ...

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I. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE

HIGHLIGHTS

- The Sponsor of the Mutual Fund is Reliance Capital Limited (RCL) having a net worth of over Rs.1,399.81 crores as on March 31, 2004 and is a member ofthe Reliance Group.

Choice of Investment Plans:

- The Scheme will launch the following schedule of Plans:

- Monthly Plan (I – XI)

- Quarterly Plan (I – III)

- Half Yearly Plan (I)

- Annual Plan (I, II & III)

- Each Plan will have a fixed term. Each Plan will maintain a separate portfolio.

- Each Plan will have a growth and dividend option and will have a portfolio of securities normally maturing in line with the time profile of the respective Plans.

Growth Option: No dividend distribution is envisaged under this option. The income attributable to the units allotted under this option will continue to remaininvested in the plan and will be reflected in the Net Asset Value of units under the option.

Dividend Option: It is proposed to declare dividend on maturity of the respective Plans to be launched under the Scheme. Distribution of dividend will besubject to the availability of distributable surplus, as computed in accordance with the SEBI Regulations.

However, the Trustees reserve the right to declare dividends during the interim period. There is no assurance or guarantee as to the rate and frequency of dividenddistribution.

Dividends as and when declared will be paid to eligible unitholders of record, within 30 days of the declaration of dividend. The actual date of declaration ofdividend will be notified by display at the designated investor service centres.

Investors are required to clearly indicate the option under the plans in the application form. In the absence of clear indication as to the choice of option underthe respective Plans, units will by default be allotted under the Growth Option of the respective Plans.

Investment Objective - The primary investment objective of the Scheme is to seek to achieve growth of capital by investing in a portfolio of fixed incomesecurities normally maturing in line with the time profile of the respective plans.

Transparency – The NAV shall be computed on daily basis. It shall be published at least in two daily newspapers at intervals of not exceeding one week. Itshall be uploaded on the AMFI site and Reliance Mutual Fund site i.e. www.reliancemutual.com on a daily basis.

_ Publication of Abridged Half-yearly Financial Extracts in the Publications or as may be prescribed under the Regulations from time to time.

- Communication of Portfolio on a half-yearly basis to the Unitholders directly or through the Publications or as may be prescribed under the Regulations fromtime to time.

- Dispatch of the Annual Reports of the Scheme within the stipulated period as required under the Regulations.

RISK FACTORS AND SPECIAL CONSIDERATIONS

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 thecapital markets.

- Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme.

- Reliance Fixed Maturity Fund - Series II is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, it’s future prospectsor 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 settingup of the Mutual Fund and such other accretions and additions to the corpus.

- The Mutual Fund is not guaranteeing or assuring any dividend. The Mutual Fund is also not assuring that it will make periodical dividend distributions, thoughit has every intention of doing so. All dividend distributions are subject to the investment performance of the Scheme.

SCHEME SPECIFIC RISK FACTORS

-The NAV of the Scheme may be affected, inter alia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transferprocedures.

-The liquidity of the Scheme’s investments may be inherently restricted by trading volumes, settlement periods and transfer procedures. In the event of aninordinately large number of redemption requests, or of a re-structuring of the Scheme’s investment portfolio, these periods may become significant. Please readthe Sections of this Offer Document entitled “Special Considerations” and “Right to Limit Redemptions”.

- As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No.10/22701/03, each scheme and individual plan(s) under the schemes shouldhave a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such scheme/plan(s). In case ofnon-fulfillment with either of the above two conditions, the investor’s money would be refunded, in full, immediately after the close of the IPO.

-A Unitholder in Reliance Fixed Maturity Fund - Series II should be aware of the risks generally associated with investments in the fixed income and moneymarket instruments. Given below are some of the common risks associated with investments in fixed income and money market securities. These risks includebut are not restricted to:

Interest Rate Risk: As with all debt securities, changes in interest rates will affect the Scheme’s Net Asset Value as the prices of securities generally increaseas interest rates decline and generally decrease as interest rates rise. Prices of longer-term securities generally fluctuate more in response to interest rate changesthan do shorter-term securities. Interest rate movements in the Indian debt markets can be volatile leading to the possibility of large price movements up or downin debt and money market securities and thereby to possibly large movements in the NAV.

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Liquidity or Marketability Risk: This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is thespread between the bid price and the offer price quoted by a dealer. Liquidity risk is characteristic of the Indian fixed income market.

Credit Risk: Credit risk or default risk refers to the risk which may arise due to default on the part of the issuer of the fixed income security (i.e. will be unableto make timely principal and interest payments on the security). Because of this risk debentures are sold at a yield spread above those offered on Treasurysecurities, which are sovereign obligations and generally considered to be free of credit risk. Normally, the value of a fixed income security will fluctuate dependingupon the actual changes in the perceived level of credit risk as well as the actual event of default.

Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme or from maturities in the Schemeare reinvested. The additional income from reinvestment is the “interest on interest” component. The risk refers to the fall in the rate for reinvestment of interimcashflows.

Risks for various type of securities

CREDIT RISK LIQUIDITY RISK PRICE RISK

Listed Depends on credit quality Relatively Low Depends on duration of instrument

Unlisted Depends on credit quality Relatively High Depends on duration of instrument

Secured Relatively low Relatively Low Depends on duration of instrument

Unsecured Relatively high Relatively High Depends on duration of instrument

Rated Relatively low and depends Relatively Lowon the rating Depends on duration of instrument

Unrated Relatively high Relatively High Depends on duration of instrument

- It should be noted that the Schedule for the intended launch of various plans given in this Offer Document elsewhere is only indicative and the Trustee maydecide not to launch Plan (s) or alter, either partly or fully, the proposed schedule of launch of Plans. The Trustees, reserve the right to increase / decreasethe number of working days under the specified redemption period and alter / modify / change the specified subscription / repurchase period / dividend date(s).

Such revision shall be notified by a notice at the Designated Investor Service Centre atleast two days before any such changes are applicable. However, wheresuch changes which amount to change in the fundamental attributes, the Trustees, shall comply with SEBI Regulation 18(15A) as detailed elsewhere in the OfferDocument. For this purpose, fundamental attribute shall mean:

(i) Type of scheme

Close-ended income Scheme

(ii) Investment Objectives & Policies

Primary objective is to seek to achieve regular returns / growth of capital by investing in a portfolio of fixed income securities normally maturing in line withthe time profile of the plan with the objective of limiting interest rate volatiltiy.

Investment Pattern is as indicated in section V point no.1 Investment Objectives & Policies.

(iii) Terms of Issue

Repurchase/redemption of units as defined in ‘Redemption of Units’

Fees and expenses as stated in section VII point no. C-2 “Recurring Expenses of the Scheme” (As % of Average weekly Net Assets) / as permitted by theRegulations.

Different types of securities in which the scheme would invest as given in the offer document carry different levels and types of risk. Accordingly, the scheme’srisk may increase or decrease depending upon its investment pattern e.g. corporate bonds carry a higher level of risk than Government securities. Further evenamong corporate bonds, bonds which are AAA rated are comparatively less risky than bonds which are AA rated.

The scheme may invest upto 100% in Securitised debt including Pass Through Certificates (PTCs).

As with any other debt instrument, the following risk factors have to be taken into consideration while investing in PTCs:

a) Credit Risk : Since most of the PTCs are drawn from a cherry picked pool of underlying assets, the risk of delay / default due to poor credit quality is low.Further more most of the PTCs enjoy additional cashflow coverage in terms of subordination by another lower class of PTCs or in terms of excess cashcollateralisation. Moreover, we intend to invest mostly but not exclusively in PTCs rated AAA or equivalent so as to keep control on credit risk. However, itshall be understood that not all PTCs shall be AAA rated and thus credit risk may be higher as the credit risk is based on the rating. PTCs which are AAArated are comparatively less risky than PTCs which are AA rated.

b) Liquidity Risk: Since the maturity of the PTCs will be in line with the maturity of the FMP, the risk arising from low secondary market liquidity of such instrumentsis low.

c) Price Risk / Interest Rate Risk : The price risk of these instruments shall be in line with the maturity / duration of such instruments. However given the factthat these instruments will have a maturity profile upto 2 years, the duration risk is relatively less.

Domestic Securitised debt can have different underlying assets and these assets have different risk characteristics. These may be as given in the followingexample:

Security 1 -Backed by receivables of personal loans originated by ICICI Bank

Specific Risk Factors: Loss due to default and/or payment delay on Receivables, Premature Termination of Facility Agreements, Limited loss cover, Delinquencyand Credit Risk, Limited Liquidity and Price Risk, Originator/Collection Agent Risk, Bankruptcy of the Originator, Co-mingling of funds

Security2 - Senior Series Pass Through Certificates backed by commercial vehicles and two-wheeler loan and loan receivables from IndusInd Bank Limited

Specific Risk Factors - Credit And Rating Downgrade Risk, Prepayment And Foreclosures Risk for Senior PTC Series , Prepayment And Foreclosures Risk forSenior PTC Series, Servicing Agent Risk, Co-mingling Risk, Bankruptcy of the Seller

The scheme reserves the right to invest it’s entire allocation in debt and money market securities in any one of the fixed income security classes.

- Each Plan will have a specific Maturity Date. At the time of maturity of the plan, the unitholder shall have the following choices as indicated at the time ofmaking an application for units under the plan:

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(i) Units under the plan will be compulsorily and without any further act by the unitholder(s) be redeemed on the specified Maturity date at applicable NAV.

(ii) Units under the plan will be compulsorily and without any further act by the unitholder(s) be reinvested on the specified Maturity date at applicable NAVin another plan of similar tenure which is opening for fresh subscription on the said date and will be continued till the time the unitholder applies for redemption.In this case, the consent for the application in respect of the first plan shall be deemed to be taken as consent for all subsequent plans and the terms and conditionsof the subsequent plans shall be binding upon the unitholders.

-The tax benefits described in this Offer Document are as available under the present taxation laws and are available subject to relevant conditions. Theinformation given is included only for general purposes and is based on advise received by the Investment Manager regarding the law and practice currentlyin force in India and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, therecan be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In viewof the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.

SPECIAL CONSIDERATIONS

The Mutual Fund is not assuring or guaranteeing that it will be able to make regular periodical distributions to its Unitholders though it has every intentionto manage the portfolio so as to make periodical income distributions to Unitholders. Periodical distributions will be dependent on the returns achieved by theAsset Management Company through the active management of the portfolio. Periodical distributions may therefore vary from period to period, based oninvestment results of the portfolio.

RCAM may use various derivative products, from time to time, in an attempt to protect the value of the portfolio and with an intention to enhance Unit holder’sinterest of the Scheme.

Risk attached with the use of derivatives

As and when the Scheme trades in the derivatives market there are risk factors and issues concerning the use of derivatives that investors should understand.Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. Theuse of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of adequatecontrols to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interestrate movements correctly. There is a possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to asthe “counterparty”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuationof derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices.

The Trustees have the right in their sole discretion, to limit redemptions under certain circumstances.

Investors should study this Offer Document carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation,investment or any other matters. Investors are advised to consult their legal, tax, investment and other professional advisors to determine legal, tax,financial or other considerations of subscribing to or redeeming units, before making a decision to invest/redeem units.

Investors are urged to study the terms of the Offer carefully before investing in this Scheme, and to retain this Offer Document for future reference.

DUE DILIGENCE CERTIFICATE

It is confirmed that:

- The Draft Offer Document of Reliance Fixed Maturity Fund – Series II, forwarded to SEBI, is in accordance with the SEBI (Mutual Funds) Regulations, 1996and the guidelines and directives issued by SEBI from time to time.

_ All the legal requirements in connection with the launch of the Scheme as also the guidelines, instructions etc., issued by the Government and any othercompetent authority in this behalf, have been duly complied with.

_ The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment inthe Scheme.

_ According to the information provided to us, Deutsche Bank, the Custodian, Karvy Computeshare Pvt. Ltd, the Registrar and HDFC Bank Limited and ICICIBank Limited the Collecting Bankers are registered with SEBI and until the date, such registrations are valid.

-The contents of the Offer Document including figures, data, yields etc. have been checked and are factually correct.

Place : Mumbai Name : Ravi O.V.

Date : February 1, 2005 Designation: Compliance Officer

Note : The Due Diligence Certificate as stated above was submitted to the Securities and Exchange Board of India on February 10, 2005

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II. DEFINITIONS AND ABBREVIATIONS

In this Offer Document, the following words and expressions shall have the meaning specified below, unless the context otherwise requires:

Asset Management Company / AMC / Investment Manager / RCAM

Reliance Capital Asset Management Limited, the Asset Management Company incorporated under the Companies Act, 1956, and authorized by SEBI to act asthe Investment Manager to the Schemes of Reliance Mutual Fund.

CDSC

Contingent Deferred Sales Charge (CDSC), a charge imposed when the units are redeemed within the first four years of unit ownership. The SEBI (MFs)Regulations, 1996, direct that a CDSC may be charged only for the first four years after purchase and mandates the maximum amount that can be charged ineach year.

Custodian

Deutsche Bank, Mumbai, acting as Custodian to the Scheme, or any other custodian who is appointed by the Trustee. Designated Investor Service Centres/ DISCLocations mentioned in this Offer Document or any other locations as may be defined as such by the Asset Management Company from time to time, whereinvestors can tender the request for subscription, redemption or switching of units, etc.

Cut-Off timings for redemption :

The cut-off timings for redemptions will be 3.00 p.m. on all working days. Applications for redemptions received after the cut-off time will be considered ashaving been received for the next working day.

All valid applications for switch-out shall be treated as redemption with applicable NAV of the scheme.

CBLO: Collateralised Borrowing and Lending Obligation (CBLO) is a money market instrument, approved by RBI, (developed by CCIL) for the benefit of theentities who have either been phased out from inter bank call money market or have been given restricted participation in terms of ceiling on call borrowingand lending transactions and who do not have access to the call money market. CBLO is a discounted instrument issued in electronic book entry form for thematurity period ranging from one day to one year.

Depository: Depository as defined in the Depositories Act, 1996 (22 of 1996)

Designated Investor Service Centres (DISC / Official point of acceptance for transaction): Any location, as may be defined by the Asset ManagementCompany from time to time, where investors can tender the request for subscription (during the initial offer period for a close-ended scheme), redemption orswitching of units, etc.

Dividend: Income distributed by the Scheme on the Units

Entry Load: Load on purchases / switch-in of units

Exit Load: Load on redemptions / switch-out of units

FII: Foreign Institutional Investors, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995.

Investment Management Agreement (IMA)

The Agreement entered into between Reliance Capital Trustee Co. Limited and Reliance Capital Asset Management Limited by which RCAM has been appointedthe Investment Manager for managing the funds raised by RMF under the various schemes, and all amendments thereof.

Initial Offer/Initial Issue

Offer of the units under respective Plan(s) of Reliance Fixed Maturity Fund - Series II during their respective Initial Offer Periods.

Indexation benefit

Indexation benefits are available to investors of mutual fund for units held for a minimum period of 365 days. The government allows an investor to adjusthis Long Term Capital Gains for inflation by applying an appropriate factor from Cost Inflation Index as notified by it, to the original price of units.

Load

A charge that may be levied as a percentage of NAV at the time of entry into the Scheme/ Plan or at the time of exiting from the Scheme/ Plan.

Local Cheque

A Cheque handled locally and drawn on any bank, which is a member of the Banker’s Clearing house located at the place where the application form issubmitted.

Plans -

Monthly Plan, Quarterly Plan, Half Yearly Plan, Annual Plan - Double Indexation Benefit and Annual Plan are the plans to be launched under Reliance FixedMaturity Fund – Series II.

Mutual Fund Regulations/ Regulations/ SEBI Regulations

Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended up to date and such other Regulations, as may be in force from timeto time, to regulate the activities of the Mutual Fund.

NAV

Net Asset Value of the Units in each plan and option of the Scheme. The NAV is calculated in the manner provided in this Offer Document or as may beprescribed by Regulations from time to time. It will be computed upto four decimal places.

NRI

Non-Resident Indian

Offer Document

The document issued by Reliance Mutual Fund, offering units of Reliance Fixed Maturity Fund - Series II for subscription.

PTC: PTC is the abbreviated form for Pass Through Certificates. A pass through certificate represents beneficial interest in an underlying pool of cashflows.These cashflows represent dues against single or multiple loans originated by the seller of these loans. This pool of dues / receivables, after due sorting / cherrypicking, is packaged as PTCs and sold to end investors like bank / mutual funds etc.

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PIO

Person of Indian Origin

Purchase Price

Purchase Price to the investor of Units of any of the plans computed in the manner indicated in this Offer Document.

Reserve Bank of India (RBI)

Reserve Bank of India, established under the Reserve Bank of India Act, 1934.

RMF / Mutual Fund / The Fund: Reliance Mutual Fund, (formerly known as Reliance Capital Mutual Fund) a Trust established under Indian Trusts Act, 1882and registered with SEBI vide registration number MF/022/95/1 dated June 30, 1995.

RCTC / Trustee / Trustee Company

Reliance Capital Trustee Co. Limited, a Company incorporated under the Companies Act, 1956, and authorized by SEBI and by the Trust Deed to act as the Trusteeof Reliance Mutual Fund.

RCL / Sponsor / Settlor

Reliance Capital Limited

Redemption Price

Redemption Price to the investor of Units of the plans computed in the manner indicated in this Offer Document.

Registrar / Karvy

Karvy Computershare Private Ltd., who have been appointed as the Registrar; or any other Registrar who is appointed by RCAM.

SEBI

The Securities and Exchange Board of India.

SPVs

Special Purpose Vehicles approved by the appropriate authority or the Government of India.

Trust Deed

The Trust Deed entered into on April 24, 1995 between the Sponsor and the Trustee, and any amendment thereof.

Trust Fund

The corpus of the Trust, unit capital and all property belonging to and / or vested in the Trustee.

Unit

The interest of the investors in any of the plans of the Scheme which consists of each Unit representing a share in the assets of the corresponding plan of theScheme.

Unitholder

A person who holds Unit(s) under any plan of the Scheme.

Unitholders Record

Unitholders whose names appear on the unitholders register of the concerned plan/(s) on the date of determination of dividend, subject to realisation of theamount towards purchase.

Working Day For Redemptions

Any day, provided such day is not a Saturday or Sunday or any day on which Banks in Mumbai are closed but the Stock Exchange, Mumbai and National StockExchange are closed for transactions or a day on which banks are open but The Stock Exchange, Mumbai and National Stock Exchange are closed for transactionsor a day on which sale of units is suspended by the AMC or a day on which normal business could not be transacted due to storms, floods, bandhs, strikesetc, subject to modifications by RCAM from time to time.

Words and Expressions used in this Offer Document and not defined shall have the same meaning as in the Regulations.

III. SUMMARY OF THE SCHEME

The Scheme : Reliance Fixed Maturity Fund – Series II

Structure

A Close-ended Income Scheme

Investment Pattern:

For details on investment allocation of Monthly Plan, Quarterly Plan, Half-Yearly Plan, Annual Plan please refer to section V of the Offer Document.

Investment Objectives

The primary investment objective of the Scheme is to seek to achieve growth of capital by investing in a portfolio of fixed income securities normally maturingin line with the time profile of the respective plans.

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Choice of plans/options:

The Scheme will be launching the following Plans:

- Monthly Plan (I – XI)

- Quarterly Plan (I – III)

- Half-Yearly Plan (I)

- Annual Plan (I, II & III)

Each Plan will have a growth and dividend option and will have a portfolio of securities normally maturing in line with the time profile of the respective Plans.

Each Plan will have a fixed term. Each Plan will maintain a separate portfolio.

Duration of Initial Offer:

Plans Scheme Opens Scheme Closes Duration of the Plan

Monthly Plan – I 25/04/2005 25/04/2005 31 days from the date of allotment of units

Monthly Plan – II 26/05/2005 26/05/2005 32 days from the date of allotment of units

Monthly Plan – III 27/06/2005 27/06/2005 31 days from the date of allotment of units

Monthly Plan – IV 28/07/2005 28/07/2005 32 days from the date of allotment of units

Monthly Plan – V 29/08/2005 29/08/2005 31 days from the date of allotment of units

Monthly Plan – VI 29/09/2005 29/09/2005 32 days from the date of allotment of units

Monthly Plan – VII 31/10/2005 31/10/2005 31 days from the date of allotment of units

Monthly Plan – VIII 01/12/2005 01/12/2005 32 days from the date of allotment of units

Monthly Plan – IX 02/01/2006 02/01/2006 31 days from the date of allotment of units

Monthly Plan – X 02/02/2006 02/02/2006 32 days from the date of allotment of units

Monthly Plan – XI 06/03/2006 06/03/2006 31 days from the date of allotment of units

Quarterly Plan – I 26/07/2005 26/07/2005 91 days from the date of allotment of units

Quarterly Plan – II 25/10/2005 25/10/2005 91 days from the date of allotment of units

Quarterly Plan – III 24/01/2006 24/01/2006 91 days from the date of allotment of units

Half-Yearly Plan - I 14/12/2005 15/12/2005 181 days from the date of allotment of units

Annual Plan – I 05/05/2005 06/05/2005 402 days from the date of allotment of units

Annual Plan – II 03/05/2005 18/05/2005 392 days from the date of allotment of units

Annual Plan –III 27/07/2005 28/07/2005 368 days from the date of allotment of units

The Trustees may decide to extend the initial offer period, but not more than 30 days, as per SEBI Regulations.

RCAM, in consultation with the Trustees, reserves the right to increase / decrease the number of working days under the specified redemption period and alter/ modify / change the repurchase period / dividend date(s) as per SEBI Regulations. Such a revision shall be notified by a notice at the Designated InvestorService Centre atleast two days before any such changes are applicable.

Initial Offer price: Rs.10/- per unit for cash at par.

Minimum subscription amount:

The Minimum investment amount for all categories of investors is as under:-

(i) Monthly Plan, Quarterly Plan, Half-Yearly Plan, Annual Plan (I & III)

Rs.1 lac per plan per option and in multiples of Re. 1 thereafter.

(ii) Annual Plan - II

Rs. 5,000 per option and in multiples of Re. 1 thereafter

Since the Scheme is a close-ended scheme, units can be subscribed for, only during the initial offer period of the Plans.

Initial Issue Expenses:

The initial issue expenses incurred during initial public offer will be debited to the scheme to the extent of 6% of the funds raised during the initial public offerand the same will be amortized on a weekly basis over the period of the scheme. However, as per SEBI (Mutual Fund) Regulations any expense more than 6%of the initial net assets shall be borne by the AMC.

Subscription:

Each Plan will have a specified initial offer period during which investors may purchase units from the Fund.

The cut-off timings for the subscription during the initial offer period will be 3.00 p.m. and the high value cheques/ account transfer transactions will be acceptedwithin the cut-off timings during the IPO in order to facilitate early allotment of units.

After the expiry of the specified initial offer period for a plan, the plan launched under a specific schedule will be closed for purchase of units.

Redemption:

Each Plan will have a specific Maturity Date. At the time of maturity of the plan, the unitholder shall have the following choices as indicated at the time ofmaking an application for units under the plan:

(iii) Units under the plan will be compulsorily and without any further act by the unitholder(s) be redeemed on the specified Maturity date at applicable NAV.

(iv) Units under the plan will be compulsorily and without any further act by the unitholder(s) be reinvested on the specified Maturity date at applicable NAVin another plan of similar tenure which is opening for fresh subscription on the said date and will be continued till the time the unitholder applies for redemption.

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In this case, the consent for the application in respect of the first plan shall be deemed to be taken as consent for all subsequent plans and the terms and conditionsof the subsequent plans shall be binding upon the unitholders.

For redemptions made on the maturity date, the AMC does not intend to charge any load, at present. The unitholders may also redeem their investments on allworking days in the Plans, at the applicable NAV, subject to the payment of an exit load.

Switching of Units:

Unitholders may switch part/full unitholdings, which are not under any lien, from the Plans/ Options under the scheme to any other eligible scheme/ Plan/ Optionsand vice-versa, subject to conditions as specified under the “Switching Option” in the offer document.

Load:

Entry Load: Nil

Exit Load:

Plans Load

Monthly Plan 0.10% if redeemed before maturity

Quarterly Plan 0.30% if redeemed before maturity

Half-Yearly Plan 0.60% if redeemed before maturity

Annual Plan 1.00% if redeemed before maturity

No exit load will be charged upon maturity of the plans issued under the Scheme. No load will be charged on Inter-Option switches (i.e. within growth and dividendoptions) within the Plan of the same schedule in the Scheme. Units cannot be switched within the same Plan of different schedule.

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 functioningof the Scheme, on a prospective basis. At the time of changing the Load Structure:

(i) The addendum detailing the changes will be attached to Offer Document and Abridged Offer Document. The addendum will be circulated to all the distributors/brokers so that the same can be attached to all Offer Documents and Abridged Offer Documents already in stock. The addendum may be sent along with thenewsletter sent to the Unitholders immediately after the changes.

(ii) Arrangements will be made to display the changes/modifications in the Offer Document in the form of a notice in all the Investor Service Centres anddistributors/brokers office.

(iii) The introduction of the Exit Load alongwith the details will be stamped in the acknowledgement slip issued to the investors on submission of the applicationform and will also be disclosed in the Account Statement or in the covering letter issued to the Unitholders after the introduction of such Load.

Benchmark Index: CRISIL Liquid Fund Index for Monthly, Quarterly, Half-Yearly Plans, CRISIL Short Term Bond Fund Index for Annual Plan

IV. CONSTITUTION AND MANAGEMENT OF THE FUND

1. THE FUND

Reliance Mutual Fund

Reliance Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882 with Reliance Capital Limited, as the Settlor/Sponsor and RelianceCapital Trustee Co. Limited, as the Trustee. RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of the Mutual Fund has been changed from Reliance Capital Mutual Fund to Reliance Mutual Fund effective March 11,2004 vide SEBI’s letter no. IMD/PSP/4958/2004 date March 11, 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issuedto the public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities.

The main objects of the Trust are: -

i. To carry on the activity of a Mutual Fund as may be permitted by law and formulate and devise various collective Schemes of savings and investments forpeople in India and abroad and also ensure liquidity of investments for the Unitholders;

ii. To deploy Funds thus raised so as to help the Unitholders earn reasonable returns on their savings; and

iii. To take such steps as may be necessary from time to time to realise the effects without any limitation.

2. SPONSOR COMPANY

Reliance Capital Limited

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) ofReliance Capital Asset Management Limited is held by Reliance Capital Limited.

Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd. (RCL). RCL has been promoted by Reliance Industries Limited (RIL), one of India’slargest private sector enterprise. RIL has a net worth of Rs.34,452 crores as on March 31, 2004 and currently has a large family of shareholders. Reliance CapitalLimited is a Non Banking Finance Company engaged in leasing, investment and other fund based activities. The networth of RCL is Rs. 1,399.81 crores ason March 31, 2004. Given below is a summary of RCL’s financials:

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(Rs. in crores)

Particulars 2003-04 2002-03 2001-02

Total Income 356.79 458.78 548.59

Profit Before Tax 105.79 102.63 101.22

Profit After Tax 105.79 102.63 101.22

Reserves & Surplus 1271.84 1208.50 1147.99

Net Worth 1399.81 1336.33 1275.82

Earnings per Share (Rs.) 8.31 8.06 7.91

(Basic + Diluted) (Basic+ Diluted)

Book Value per Share (Rs.) 109.96 104.54 99.81

Dividend (%) 29% 29% 29%

Paid up Equity Capital 127.84 127.83 127.83

RCL has contributed Rupees One Lac as the initial contribution to the corpus for the setting up of the Mutual Fund. RCL is responsible for discharging its functionsand responsibilities towards the Fund in accordance with the SEBI Regulations.

The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the contribution of an amount of Rupees one lakh madeby them towards the initial corpus for setting up the Fund and such other accretions and additions to the corpus.

C. THE TRUSTEE

Reliance Capital Trustee Co. Limited Corporate OfficeEO1, Reliance Greens, Kamala Mills Compound,Village Motikhavdi, Trade World, B Wing,7th P.O. Digvijaygram, Floor, S. B. Marg,District Jamnagar - 361140 Lower Parel (West),(Gujarat) Mumbai-400 013

Reliance Capital Trustee Co. Limited (“RCTC”), a company incorporated under the Companies Act, 1956, has been appointed as the trustee to the Fund videthe Trust Deed dated April 25, 1995 executed between the Sponsor and the Trustee.

1. The DirectorsDirectors of RCTC are:Name and Address Other DirectorshipsMr. D. Chaturvedi * Partner:273, Tahinee Heights, Chaturvedi & Shah, Chartered Accountants.‘D’ Building, Petit Hall,66, Napeansea Road, Chairman:Mumbai - 400 006. Reliance Capital Limited

Chartered Accountant

Mr. Vinod M. Ambani * President & Company Secretary7-D, Lands End, Reliance Industries Limited.29-D, Doongersey Road, Director:Malabar Hill, Reliance Enterprises Limited, Reliance WelfareMumbai – 400 006 Association, Reliance Logistics Limited

Senior Corporate Executive

Ms. Kalpana Merchant Partner: Kanga & Company, Advocates & Solicitors.Advocates & SolicitorsC/o Kanga & CompanyReadymoney Mansion,43, Veer Nariman Road,Mumbai 400 023.

Solicitor

Dr. A.C. Shah Director:Lloyds Garden ‘C’ Wing, Gujarat Petro Synthesis; S. Kumars Nationwide1st Floor, Flat No.2, Limited; Elcon Engineering Ltd. Adani ExportsAppa Saheb Marathe Limited; Kopran Limited, Standard Chartered AssetMarg, Prabhadevi, Management Company Private Limited,Mumbai - 400025 Benchmark MF Trustee Company Private Limited

Former Chairman & ManagingDirector of Bank of Baroda

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Mr. Pradyumna N. Shah Director: P.I. Industries Limited, Udaipur; Secure Meters Limited, Udaipur;Shantiniketan, Block No.51 Lipi Data Systems, Mumbai; Taparia Tool Limited,Prabhat Colony, Road No.1 Indo Count Industries Limited, Mumbai,Santacruz (E), Standard Tea Processing Company LimitedMumbai 400 055 Ahmedabad, Wolkem India Limited, Udaipur.

LIC Mutual Fund Trustee Co. Pvt. Ltd.Chartered Accountant Partner : Shah & Co., Chartered Accountants , Mumbai

Shah & Associates, Chartered Accountants, Mumbai

* Associate Director: Shri D. Chaturvedi is the Chairman of Reliance Capital Limited, the Sponsor. Shri Vinod Ambani is President and Company Secretary of RelianceIndustries Limited. He was the Director on the AMC Board from 27/03/1997 to 20/02/2001.

2. Duties and Obligations of the Trustee

In accordance with SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed constituting the Mutual Fund, the Trustees are required to fulfill several dutiesand obligations, including the following:

a. The Trustee and the Asset Management Company shall with the prior approval of SEBI enter into an Investment Management Agreement (IMA).

b. The Investment Management Agreement shall contain such clauses as are mentioned in the Fourth Schedule of the SEBI (MFs) Regulations, 1996 and othersuch clauses as are necessary for the purpose of making investments.

c. The Trustees shall have a right to obtain from the Asset Management Company such information as is considered necessary by the Trustees.

d. The Trustee shall ensure before the launch of any scheme that the Asset Management Company possesses/has done the following:

(i) Systems in place for its back office, dealing room and accounting;

(ii) Appointed all key personnel including fund manager(s) for the Scheme(s) and submitted their bio-data which shall contain the educational qualifications,past experience in the securities market to SEBI, within 15 days of their appointment;

(iii) Appointed Auditors to audit its accounts;

(iv) Appointed a Compliance Officer to comply with regulatory requirement and to redress investor grievances;

(v) Appointed Registrars and laid down parameters for their supervision;

(vi) Prepared a compliance manual and designed internal control mechanisms including internal audit systems; and

(vii) Specified norms for empanelment of brokers and marketing agents.

e. The Trustee shall ensure that the Asset Management Company has been diligent in empanelling the brokers, in monitoring securities transactions with brokersand avoiding undue concentration of business with any broker.

f. The Trustee shall ensure that the Asset Management Company has not given any undue or unfair advantage to any associate or dealt with any of the associatesof the Asset Management Company in any manner detrimental to interest of unitholders.

g. The Trustee shall ensure that the transactions entered into by the Asset Management Company are in accordance with the SEBI (Mutual Funds) Regulations,1996 and the Scheme.

h. The Trustee shall ensure that the Asset Management Company has been managing the Mutual Fund Scheme independent of other activities and have takenadequate steps to ensure that the interest of investors of one Scheme are not compromised with those of any other scheme or of other activities of the AssetManagement Company.

i. The Trustee shall ensure that all the activities of the Asset Management Company are in accordance with the provisions of SEBI (Mutual Funds) Regulations,1996.

j. Where the Trustees have reason to believe that the conduct of the business of the Mutual Fund is not in accordance with the Regulations and the Scheme,they shall forthwith take such remedial steps as deemed necessary by them and shall immediately inform SEBI of the violation and the action taken by them

k. Each Trustee shall file the details of his transactions in securities (above Rs.1 Lac per transaction) with the Mutual Fund on a quarterly basis.

l. The Trustees shall be accountable for and be the Custodian of the funds and property of the respective Schemes and shall hold the same in trust for the benefitof the unitholders in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the provisions of the Trust Deed.

m. The Trustees shall take steps to ensure that the transactions of the Mutual Fund are in accordance with the provisions of the Trust Deed.

n. The Trustees shall be responsible for the calculation of any income due to be paid to the Mutual Fund and also of any income received in the Mutual Fundfor the unitholders of any Scheme in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

o. The Trustees shall obtain the consent of the unitholders of the Scheme:

(i) Whenever required to do so by SEBI in the interest of the unitholders;

(ii) Whenever required to do so, on the requisition made by three-fourths of the unitholders of any Scheme under the Mutual Fund;

(iii) When the majority of the Trustees decide to wind up the Scheme or prematurely redeem the Units

p. The Trustees shall ensure that no change in the fundamental attributes of any Scheme or the Trust or fees and expenses payable or any other change whichwould modify the Scheme and affects the interest of unitholders, shall be carried out unless :-

(a) A written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper havingnationwide circulation as well as in a newspaper published in the language of the region where the head office of the Mutual Fund is situated; and

(b) The unitholders are given an option to exit at the prevailing net asset value without any exit load.

q. The Trustee shall call for the details of transactions in securities by the key personnel of the Asset Management Company in his own name or on behalf ofthe Asset Management Company and shall report to SEBI, as and when required.

r. The Trustee shall quarterly review all transactions carried out between the Mutual Fund, Asset Management Company and its associates.

s. The Trustee shall quarterly review the net worth of the Asset Management Company and shall ensure that the same is in accordance with the clause (f) ofsub-regulation (1) of regulation 21 of SEBI (Mutual Funds) Regulations, 1996.

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t. The Trustee shall periodically review all service contracts such as custody arrangements, transfer agency of the securities and satisfy itself that such contractsare executed in the interest of the unitholders.

u. The Trustee shall ensure that there is no conflict of interest between the manner of deployment of the net worth by the Asset Management Company andthe interest of the unitholders.

v. The Trustee shall periodically review the investor complaints received and the redressal of the same by the Asset Management Company.

w. The Trustee shall abide by the Code of Conduct as specified in the Fifth Schedule of the SEBI (Mutual Funds) Regulations, 1996.

x. The Trustee shall furnish to SEBI on a half-yearly basis the following:

(i) A report on the activities of the Mutual Fund;

(ii) A certificate stating that the Trustees have satisfied themselves that there have been no instances of self-dealing or front-running by any of the Trusteesand by the directors and key personnel of the Asset Management Company; and

(iii) A certificate to the effect that the Asset Management Company has been managing the Scheme independently of any other activities and in case any activitiesof the nature referred to in regulation 24(2) of the SEBI (Mutual Funds) Regulations, 1996 have been undertaken by the Asset Management Company, adequatesteps to ensure that the interest of the unitholders are protected, have been taken.

y. The independent Trustees referred to in sub-regulation (5) of Regulation 16 shall give their comments on the report received from the Asset ManagementCompany regarding the investments by the Mutual Fund in the securities of group companies of the Sponsor.

z. The Trustees shall exercise due diligence as under:

General Due Diligence:

i) The Trustees shall be discerning in the appointment of the directors on the Board of the Asset Management Company.

ii) The Trustees shall review the desirability or continuance of the Asset Management Company if substantial irregularities are observed in any of the Schemesand shall not allow the Asset Management Company to float new Schemes.

iii) The Trustee shall ensure that the trust property is properly protected, held and administered by proper persons and by a proper number of such persons.

iv) The Trustee shall ensure that all the service providers are holding appropriate registrations from SEBI or concerned regulatory authority.

v) The Trustees shall arrange for test checks of service contracts.

vi) The Trustees shall immediately report to SEBI of any special developments in the Mutual Fund.

Specific Due Diligence:

The Trustees shall:

i) Obtain internal audit reports at regular intervals from independent auditors appointed by the Trustees.

ii) Obtain compliance certificates at regular intervals from the Asset Management Company.

iii) Hold meetings of the Trustees once in two calendar months and atleast six such meetings shall be held in every year.

iv) Consider the reports of the independent auditor and compliance reports of Asset Management Company at the meetings of Trustees for appropriate action.

v) Maintain records of the decisions of the Trustees at their meetings and of the minutes of the meetings.

vi) Prescribe and adhere to a code of ethics by the Trustees, Asset Management Company and its personnel.

vii) Communicate in writing to the Asset Management Company of the deficiencies and checking on the rectification of deficiencies.

aa. The independent directors of the trustees shall pay specific attention to the following, as may be applicable, namely:-

i) The Investment Management Agreement and the compensation paid under the agreement.

ii) Service contracts with affiliates as to whether the Asset Management Company has charged higher fees than outside contractors for the same services.

iii) Selection of the Asset Management Company ‘s independent directors

iv) Securities transactions involving affiliates to the extent such transactions are permitted by Regulations.

v) Selecting and nominating individuals to fill independent directors vacancies.

vi) Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection with personal securities transactions.

vii) The reasonableness of fees paid to Sponsors, Asset Management Company and others for services provided.

viii) Principal underwriting contracts and renewals

ix) Any service contract with the associates of the Asset Management Company.

ab. The Trust Deed shall not be amended without obtaining the prior approval of SEBI, and the unitholders approval would be obtained where it affects theinterest of unitholders.

Where SEBI Regulations provide for seeking the approval of the Unit Holders for any purpose, the Trustee may adopt any of the following procedures:

(i) Seeking approval by postal ballot or

(ii) Approval of the Unit-holders present and voting at a meeting to be specifically convened by the Trustee for the purpose. For this purpose, the Trustees shallgive 21 days notice to the Unit Holders and the Trustees may lay down guidelines for the actual conduct and accomplishment of the voting at the meeting andannouncement of the results.

Under the Trust Deed, duties and obligations also include the following:

i) In carrying out its responsibility, the Trustee and its directors shall maintain arms length relationship with other companies, or institutions or financialintermediaries or any body corporate with which they may be associated.

ii) The Directors of the Trustee shall not participate in any decision-making process/resolutions of its board meetings for any investment in which they maybe interested.

iii) All the Trustees shall furnish to the Board of Trustees or Trustee Company particulars of interest which he may have in any other company, or institutionor financial intermediary or any corporate by virtue of his position as Director, partner or with which he may be associated in any other capacity.

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iv) The Trustee shall not acquire or allow the AMC to acquire any asset out of the Trust Fund and/or Unit Capital, which involves the assumption of unlimitedliability or results in encumbrance of Trust Fund and/or Unit Capital in any way.

v) The Trustee shall not make or guarantee loans or take up any activity in contravention of SEBI Regulations except with the prior approval of SEBI nor shallit allow the AMC to do so.

However, as and when there is an addition / modification / deletion in the duties and responsibilities of the Trustee, due to a change in the SEBI Regulations,such addition / modification / deletion shall be applicable here, accordingly.

The Trustee shall not be held liable for acts done in good faith if they have exercised adequate due diligence honestly.

The Trustees shall meet at least once in two calendar months and at least six such meetings shall be held in every year to review the information / reports submittedby the AMC in accordance with the Regulations. As per Regulations prevailing during the year ended March 31, 2004, six meetings of the Board of Directorsof the Trustee Company were held.

The Trustees have also appointed the statutory auditors to verify the books of accounts and to ascertain the true and fair representation of the state of affairsas on a particular day and to ascertain profit/ loss of the Mutual Fund, as at the end of the financial year.

The Board of Trustees has constituted an Audit Committee, chaired by an independent Trustee. The Committee meets periodically to discuss the internal controlsystems, the scope of audit of the internal auditors, as well as the observations made by them. It also reviews the half-yearly and annual financial accounts.Recommendations, if any, of the audit committee on any matter relating to financial management etc. are considered in the subsequent Board meeting of AMCand Trustees.

3. Trusteeship Fees

Pursuant to the Trust Deed constituting the Fund, the Fund is authorised to pay the Trustee, a fee for their services, in addition to the reimbursement of all costs,charges and expenses, sum computed at the rate of 0.05% of the amount, being the aggregate of the Trust Fund and Unit Capital of all the Schemes put togetheron 1st April each year or a sum of Rs.5 Lacs, which ever is lower or such other sum as may be agreed upon between the Settlor and the Trustee from timeto time. The Trustee may charge further fees as permitted from time to time under the Trust Deed and the Regulations.

D. ASSET MANAGEMENT COMPANY (AMC)

Reliance Capital Asset Management Limited

Reliance Capital Asset Management Limited (RCAM), a company registered under the Companies Act, 1956 was appointed to act as the Investment Managerof Reliance Mutual Fund.


Reliance Capital Asset Management Limited was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and was amendedon August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorised to act as Investment Manager of the MutualFund. The networth of the Asset Management Company as on March 31, 2004 is Rs.16.84 crores. The Mutual Fund has launched nineteen Schemes till date,namely: Reliance Vision Fund (September 1995), Reliance Growth Fund (September 1995) Reliance Income Fund (December 1997), Reliance Liquid Fund (March1998), Reliance Medium Term Fund (August 2000), Reliance Short Term Fund (December 2002) and Reliance Fixed Term Scheme (March 2003), Reliance BankingFund (May 2003), Reliance Gilt Securities Fund (July 2003), Reliance Monthly Income Plan (December 2003), Reliance Diversified Power Sector Fund (March 2004)Reliance Pharma Fund ( May 2004), Reliance Floating Rate Fund (August 2004), Reliance Media & Entertainment Fund (September 2004), Reliance NRI EquityFund (October 2004), Reliance NRI Income Fund (October 2004), Reliance Index Fund (January 2005), Reliance Equity Opportunities Fund (February 2005) &Reliance Fixed Maturity Fund - Series I (March 2005)

RCAM has been registered as a portfolio manager vide SEBI Registration No. INP000000423 and renewed effective 1st August, 2003.

RCAM has commenced these activities. It has been ensured that key personnel of the AMC, the systems, back office, bank and securities accounts are segregatedactivity wise and there exists systems to prohibit access to inside information of various activities. As per SEBI Regulations, it will further ensure that AMCmeets the capital adequacy requirements, if any, separately for each such activity.

1. Name and Address of the Asset Management Company for the Mutual Fund

Reliance Capital Asset Management Limited

Regd. Office: Corporate Office:EO1, Reliance Greens, Kamala Mills Compound,Village Motikhavdi, Trade World, B Wing, 7th Floor,P.O. Digvijaygram, S. B. Marg, Lower Parel (West),District Jamnagar – 361140 Mumbai-400 013.(Gujarat)2. Shareholders of AMC


3. Directors

The Directors of RCAM are:

Name and Address Other Directorships

Mr. Amitabh Jhunjhunwala * Director:Flat A-212, NCPA Apartments Reliance Capital LimitedNariman Point Reliance Energy Investments LimitedMumbai, 400 021

Senior Corporate Executive

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Mr. D.J.Kapadia * Director:

32, “Sangita” Reliance Capital Limited27 / 28 Arthur Bunder Road,Colaba, Mumbai 400 005.

Finance Consultant

Mr. Shailesh S. Vaidya Partner:

Kanga & Co. Advocates & Kanga & Company, Advocates &

Solicitors Solicitors

Readymoney Mansion43, Veer Nariman Road Director:Mumbai 400 023. Prabhukripa Overseas Limited

Dwarikesh Sugar Industries Limited

Solicitor Member:

Law Committee - Indian Merchants Chamber

Mr. P.S. Gopalakrishnan Chairman:

Apartment No.B-202&203 Mega International (P) Limited, New Delhi.Keshav Dugar Shriram Overseas Finance Limited, Chennai1, East Avenue, KeshavPerumalpuram, R.A.Puram Director:Chennai – 600 028 Kothari Sugars & Chemicals Limited, Chennai

Former Chairman of IFCI

Mr. V.H. Pandya Chairman:

Flat 1202, 12th Floor IFCI Financial Services Ltd., New Delhi, Srei Capital Markets Limited, KolkataParkside -II Bldg.Wing ‘B’ Raheja Estate Director:Kulupwadi Road No. 1 Hindustan Aegis LPG Bottling Co. LimitedBorivali (East), GIC Asset Management Co. Limited, MumbaiMumbai – 400066 Libord Infotech Limited., Mumbai, Srei International Finance Limited, Kolkata

Pranav Financial Services Pvt. Limited. Mumbai

Ex- SEBI Executive Director

* Associate Directors: Shri D.J. Kapadia and Shri Amitabh Jhunjhunwala are Directors of Reliance Capital Limited, the Sponsor.

4. Duties and Obligations of the Asset Management Company

In accordance with SEBI (Mutual Funds) Regulations, 1996, the Trust Deed and the Investment Management Agreement, the Investment Manager has severalduties and obligations, including the following:

1. The Asset Management Company shall take all reasonable steps and exercise due diligence to ensure that the investment of funds pertaining to any schemeis not contrary to the provisions of SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

2. The Asset Management Company shall exercise due diligence and care in all its investment decisions as would be exercised by other persons engaged in thesame business.

3. The Asset Management Company shall be responsible for the acts of commissions or omissions by its employees or the persons whose services have beenprocured by the Asset Management Company.

4. The Asset Management Company shall submit to the Trustees quarterly reports on its activities and the compliance with SEBI (Mutual Funds) Regulations,1996, amended up-to-date.

5. The Trustees, at the request of the Asset Management Company, may terminate the assignment of the Asset Management Company at any time provided thatsuch termination shall become effective only after the Trustees have accepted the termination of assignment and communicated their decision in writing to theAsset Management Company.

6. Notwithstanding anything contained in any contract or agreement or termination, the Asset Management Company or its directors or other officers shall notbe absolved of any liability to the Mutual Fund for their acts of commission or omission, while holding such position or office.

7. The Chief Executive Officer of the AMC shall ensure that the Fund complies with the provisions of the SEBI Regulations and that the investments made bythe Fund Managers are in the interest of the Unitholders and shall also be responsible for the overall risk management function of the Fund.

8. The Fund Manager shall ensure that the funds of the Scheme are invested to achieve the objectives of the Scheme and are in the interest of the Unitholders.

9. An Asset Management Company shall not, through any broker associated with the sponsor, purchase or sell securities, which is average of 5% or more ofthe aggregate purchases and sale of securities made by the mutual fund in all its schemes. Provided that for the purposes of the relevant sub-regulation, aggregatepurchase and sale of securities shall exclude sale and distribution of units issued by the mutual fund. Provided further that the aforesaid limit of 5% shall applyfor a block of any three months. An Asset Management Company shall not purchase and sell through any broker (other than an associated broker referred toabove) which is average of 5% or more of the aggregate purchases and sale of securities made by the mutual fund in all its Schemes, unless the Asset ManagementCompany has recorded in writing the justification for exceeding the limit of 5% and reports of all such investments are sent to the Trustees on a quarterly basis.Provided that the aforesaid limit shall apply for a block of three months.

10. An Asset Management Company shall not utilise the services of the Sponsor or any of its associates, employees or their relatives, for the purpose of anysecurities transaction and distribution and sale of securities, provided that an Asset Management Company may utilise such services if disclosure to that effectis made to the unitholders and the brokerage or commission paid is also disclosed in the half yearly annual accounts for the Mutual Fund.

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11. As per the SEBI Circular dated May 24, 2001 no brokerage will be payable for investments made by Sponsors of the Mutual Fund in any of the Schemesof the Fund, on a prospective basis.

12. The Asset Management Company shall file with the Trustee the details of transactions in securities by the key personnel of the Asset Management Companyin their own name or on behalf of the Asset Management Company and shall also report to SEBI, as and when required by SEBI.

13. In case the Asset Management Company enters into any securities transaction with any of its associates, a report to that effect shall be sent to the Trusteeat their next meeting.

14. In case any company has invested more than 5% of the net asset value of a scheme, the investment made by that scheme or by any other scheme of thesame mutual fund in that company or its subsidiaries, if any, shall be brought to the notice of the Trustees by the Asset Management Company and be disclosedin the half-yearly and annual accounts with justification for such investment provided that the latter investment has been made within one year of the date ofthe former investment calculated on either side.

15. The Asset Management Company shall file with the Trustees and SEBI: -

(i) Detailed bio-data of all its directors along with their interest in other companies within 15 days of their appointment;

(ii) Any change in the interest of directors every six months and

(iii) A quarterly report to the Trustees giving details and adequate justification about the purchase and sale of securities of the group companies of the Sponsoror the Asset Management Company as the case may be, by the Mutual Fund during the said quarter.

16. A statement of holding in securities of the directors of the Asset Management Company shall be filed with the Trustees, with the dates of acquisition of suchsecurities at the end of each financial year.

17. The Asset Management Company shall not appoint any person as a key personnel who has been found guilty of any economic offence or involved in violationof securities laws.

18. The Asset Management Company shall appoint Registrars and Transfer Agents who are registered with SEBI. Provided if the work relating to the transferof Units is processed in-house, the charges at competitive market rates may be debited to the Scheme and for rates higher than the competitive market rates,prior approval of the Trustees shall be obtained and reasons for charging higher rates shall be disclosed in the annual accounts.

19. The RCAM shall not undertake any other business except that permitted under the Regulations. The RCAM shall meet with the capital adequacy requirements,if any, separately for each of the separate activity, if any undertaken by the AMC and obtain separate approval, if necessary under the Regulations.

20. The RCAM shall not invest in any of its schemes unless full disclosure of its intention to invest has been made in the offer documents.

21. The RCAM shall not charge any fees on its investment in that scheme.

22. The RCAM does not face any contingent interest in connection with the business activities carried on by it.

23. The Asset Management Company shall abide by the Code of Conduct as specified in the Fifth Schedule to the SEBI (Mutual Funds) Regulations, 1996.

24. The independent directors of the AMC shall pay specific attention to the following, as may be applicable, namely:-

(i) The Investment Management Agreement and the compensation paid under the agreement.

(ii) Service contracts with affiliates whether the Asset Management Company has charged higher fees than outside contractors for the same services.

(iii) Selection of the Asset Management Company‘s independent directors

(iv) Securities transactions involving affiliates to the extent such transactions are permitted.

(v) Selecting and nominating individuals to fill independent directors’ vacancies.

(vi) Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection with personal securities transactions.

(vii) The reasonableness of fees paid to Sponsors, Asset Management Company and others for services provided.

(viii) Principal underwriting contracts and the renewals.

(ix) Any service contract with the associates of the Asset Management Company.

Under the Investment Management Agreement, the duties and obligations also include the following:

a) RCAM will be responsible for making, floating, issuing Schemes for the Trust after approval of the same by the Trustees and SEBI as well as investing andmanaging the funds mobilised under various Schemes, in accordance with the provisions of the Trust Deed and SEBI Regulations.

b) RCAM must disclose the basis of calculating the repurchase/redemption price and Net Asset Value of the various Schemes of the Fund to the investors, atsuch intervals as may be specified by SEBI and/or the Trustees and in accordance with the SEBI Regulations.

c) RCAM must maintain books and records about the operation of various Schemes of the Fund to ensure compliance with the Regulations and guidelines forMutual Funds as may be issued by SEBI from time to time, and shall submit a Scheme wise quarterly report on functioning of the Fund to the Trustee or atsuch intervals and in such manner as may be required or called for by the Trustee or SEBI.

d) RCAM shall exercise all due diligence and vigilance in carrying out its duties and in protecting the rights and interest of the unitholders.

e) RCAM will at all times ensure that the Trust Fund is segregated from assets of RCAM and assets of any other funds for which RCAM is responsible.

f) RCAM shall submit to the Trustee all information concerning the operation of the various Schemes of the Fund managed by RCAM at such intervals and insuch manner as required by the Trustee to ensure that RCAM is complying with the provisions of the Trust Deed and SEBI Regulations.

RCAM shall observe the above-mentioned powers, duties and obligations. Notwithstanding this, the powers, duties and obligations as stated in the regulations,from time to time, shall prevail upon the powers stated above.

As and when there is an addition/deletion/modification in the duties and responsibilities of the AMC due to a change in the Regulations, such additions/deletions/modifications shall be made here, accordingly.

The AMC shall not be liable to the Trustee in the event that the Mutual Fund suffers a decline in its Net Asset Value or fails to achieve any increase therein;unless such decline or failure is caused by any acts of commission or omission or by the default or negligence of the AMC, a bonafide error of judgement notbeing regarded as default or negligence nor as an act of commission or omission.

Investment decisions

The investment decisions are taken by a team comprising of the Chief Investment Officer and Fund Managers based on research reports, market intelligence,analysis of macro and micro economic indicators, market trends etc. Detailed discussions take place among the team members before investments are finally made.

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Such discussions/ meetings occur more than once during a day if situations warrant viz. major economic or political events for a review of earlier decisions. TheFund Managers along with their rationale record all such investment decisions.

The Chief Executive Officer shall be responsible for compliances of all statutory requirements including SEBI Regulations and will supervise investments decisionsof Fund Managers taking into consideration the overall interest of the Unitholders and assume responsibility for the day to day and overall Risk Managementfunction of Mutual Fund.

Under him Fund Manager(s) will look after investment of the funds of the Scheme(s) in a manner to achieve the investment objective of the Scheme and in theinterest of Unitholders. The performance of the Schemes is reviewed by the Board of AMC and Trustees in their periodical meetings. The trustee will review theperformance of the scheme on a periodical basis and submit a half yearly report to SEBI on various matters related to compliance and performance of the scheme.They may also compare the performance of the scheme against a benchmark index. The Benchmark index for Monthly, Quarterly and Half-Yearly Plans is CRISILLiquid Fund Index and for Annual Plan Double Indexation Benefit & Annual Plan is CRISIL Short Term Bond Fund Index.

4. AMC FeesIn terms of the Investment Management Agreement and the Regulations, the AMC is entitled to a management and advisory fee at the rate of 1.25% per annumof the average daily net assets for net assets upto Rs.100 crore and at the rate of 1.00% per annum for the net assets in excess of Rs.100 crore. For Schemeslaunched on a No- Load basis, the AMC is entitled to collect an additional management fee of upto 1% per annum of the average net assets outstanding in eachfinancial year and the total management fee shall not exceed the limit stated under the Regulation 52(6) of SEBI Regulations.

5. Key Personnel of AMC & their relevant experience:

Name Age Designation Educational Qualification Type and Nature of past experience including assignmentsheld during the past 10 years

Mr. Amitabh Chaturvedi 36 Chief Executive Officer B.Com, F.C.A. Over 15 yrs of experience in Banking & Finance 1998-2003ICICI Bank Limited Head - Retail Channels & Liabilities Group1994-1998 Lloyds Finance Limited Head of Merchant Banking1992-1994 Apple Finance Limited Merchant Banking Division

Mr. K. Rajagopal 56 Chief Investment Officer M.A. CAIIB Over 33 years experience in commercial Banking, treasury andinvestment operations 2001 till date -Reliance Capital AssetManagement Limited Chief Investment Officer FundManagement, 1971-2001State Bank of India - ProbationaryOfficer- International Banking & Loans Syndication RegionalAdministration of Branches & Business DevelopmentGeneralManager - Treasury- Treasury Operations including LiquidityManagement, Investment Operations, Trading, ComplianceFunctions

Mr. V. Ananthakrishnan 52 Vice President B.Com., M.B.A. Over 30 years experience in the field of Banking & Finance. Feb2002 till date Reliance Capital Asset Management Limited Head- Sales & Marketing Branch AdministrationAug 2000 - Feb 2002Reliance Life Insurance Co. Ltd. Investment Officer Investmentdecisions & Marketing May 1997 to Aug 2000 Centurion BankLimited Country Head - Capital Markets Retail Banking &setting up capital market division, handling equity trading/investments, IPO funding, merchant Banking, depository areasetc. Apr 1994- Apr 1997DSJ Finance Corp. Ltd. President &Executive DirectorAreas involving portfolio management,merchant Banking, equity research, project appraisal &funding, equity/ debt placements with banks/FIs/ FIIs,resource mobilisation, bill discounting, leasing & hirepurchases Oct 1991- Mar 1994S.M. Finance Limited Sr. VicePresident Handling equity-based operations of the company,controlled areas involving corporate financing, billdiscounting, merchant Banking, project appraisal & funding,resource mobilisation, leasing & hire purchase and forexservices.

Mr. K. Suresh Babu 49 Vice President M.Com, C.A.I.I.B.,C.I.F. Over 25 years experience in the area of Financial Operations,Banking & Client Servicing Sept 2002 till dateReliance CapitalAsset Management Limited Vice-President Operations &Compliance Aug 2000 - Sept 2002 JF Asset Management (I) Pvt.Ltd. (a part of JP Morgan Chase Group), Head of ClientServices & Operations including Compliance, Marketing andLiaisoning with service providers.Jun 1997 - Jul 2000Konakanchi Consultancy Services Pvt. Ltd., HyderabadConsultant Project Financing consultant, loan syndication Apr1994 - May 1997CRB Capital Markets Ltd. Sr. VicePresidentMerchant Banking Operations Aug 1989 - May1993On deputation from Indian Bank to Indbank MerchantBanking Services Pvt. Ltd. Asst. Vice President MerchantBanking, money market dealer operations, corporate clientelemarketing and public relations.Oct 1978 - Mar 1994 Indian BankMiddle Management Cadre (at exit) Commercial Banking

Annual Plan is CRISIL Short Term Bond Fund Index.

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Name Age Designation Educational Qualification Type and Nature of past experience including assignmentsheld during the past 10 years

Mr. Madhusudan Kela 36 Head - Equity B.Com, MMS. Over 13 years experience in Equity Sales & Dealing 2001-03Vice President - Reliance Capital Ltd. Contributing to thedevelopment of the Mutual Fund (100% owned by RCL)1998-99 Peregrine Securities Vice President - Equity & SalesDealing 1996-98 UBS Securities - Asst Vice President EquitySales & Dealing 1994-96 Motilal Oswal - Equity Sales

Mr. Ashwani Kumar 35 Fund Manager-Equity B.Sc., MBA Finance Over 10 years of experience 1992 - 2003 Zurich Assetmanagement Co. India P. Ltd Senior Research Analyst

Mr. Sunil Singhania 37 Fund Manager-Equity B.Com. CFA, FCA Over 10 Years of experience in Capital Markets 1997 - 2003Advani Share Brokers P Ltd Director - Institutional Sales &Research, Equity Derivatives1994-97 Motisons Securities PLtd. President Instrumental in setting up the broking business,NSE Trading membership, developing the systems.

Mr. Amit Tripathi 29 Fund Manager-Debt B.Com(H), PGDM Over 6 years experience1999-2003 The New India AssuranceCo. Limited Assistant Admin Officer - Investment Dept. 1998-1999 Sun Invest Associates Limited Analyst -Equity MarketOperations1997-1998 CFS Financial Services Pvt. LimitedEquity Dealer

Mr Balkrishna Kini 48 Investor Relations B.Sc. (Hons), LL.B, March 2004 till date Handling Customer Relations & webOfficer Master of initiatives. April 2003 to November 2003 UTI AMC Ltd.

Administrative Managment Head of Centralized Monitoring of schemes & Administrationof UTI Vashi Office. April 2000 to April 2003 Branch Head- UTI Mumbai Main/ JVPD Branches

Mr. Ravi O V 37 Company Secretary B Com, B. L, ACS Ten years experience in Corporate Law, Legal & Secretarial& Compliance Officer functions. June 2002-October 2003 Mphasis BFL Limited Head

- Legal and Company Secretary Jan 2001 - June 2002 NovellSoftware Development Ltd. Company Secretary June 1998 -September 2000 Kakatiya Textiles Company Secretarial &Finance Dept Jan 1996 - June 1998 Lanco Industries CompanySecretarial & Finance Dept Jan 1994 - Dec 1995 Marthi & Co.,Company Secretaries

Ms. Geeta Chandran 52 Associate Vice President - B A -Economics, June 2002 till date Reliance Capital Asset Management Ltd.Operations & Settlement Bachelor of Law Handling Day to day operations including Investor Relations

Department & settlement July 1993 to May 2002RelianceIndustries Ltd. Heading Treasury Operations September 1973to June 1993 Bank of America NT & SAOfficer in Charge ofTreasury operations

Ms. Sangya Nigam 32 Head- Risk Management B Com (Hons) From April 2004 till date Certified Financial Risk ManagerCertified Treasury MIBM Reliance Capital Asset Management Ltd. From SeptemberManager 2000 to October 2003 Pricewaterhouse Coopers Deputy

Manager From June 1998 to August 2000 2000 MecklaiCommercial & Financial Services Ltd.Analyst

Mr. Sailesh Raj Bhan 32 Fund Manager-Equity MBA (Finance)CFA (ICFAI) Over 9 years experience in Equity Securities research andanalysis 2001-2003 Emkay Share & Stock Broker Pvt. Ltd Head- Research 1996-2001Shah & Sequeira Invst. Pvt. Ltd Analyst- Equity research 1995-1996ICFAI- Securities Research CenterAnalyst - Equity research

Mr. Prashant Pimple 27 Fund Manager - Debt MBA (Finance)CTM (ICFAI) Over 4 years experience in Treasury 2003-2004 ICICI Bank LtdManager- Treasury Investment Advisory Services 2002-2003Bank Of Bahrain and Kuwait, B.S.C Asst Manager-Treasury (Dealing Room) 2000-2002 The Saraswat Co-op BankLtdDealer- Treasury

Mr. Ramesh Rachuri 34 Fund Manager-Debt PGDM, IIM Over 6 years experience in Investment Trading and FinancialMarkets, September 2004 till date, Reliance Capital AssetManagement Limited, April 2001-August 2004, STCI Limited- Dealer, Trading in the Indian Debt Market, July 1995 -September 1998, Business Manager World Index PTELimited, Global Spot Forex Margin Trading , April 1992-June1992, Assistant Manager Magus Mark eting Credit cardAuthorisation

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Chief Executive Officer: Mr. Amitabh ChaturvediChief Investment Officer: Mr. K. RajagopalHead - Equities: Mr. Madhusudhan Kela

Fund Managers:

Equity - Mr. Sunil Singhania, Mr. Ashwani Kumar, Sailesh Raj Bhan.

Debt - Mr. Amit Tripathi., Mr. Prashant Pimple, Mr. Ramesh Rachuri

Compliance Officer: Mr. Ravi O V

Investor Relations Officer: Mr. Balkrishna Kini

Fund Management Team

Mr. K. Rajagopal*

Mr. Madhusudhan Kela*

Mr. Sunil Singhania*

Mr. Ashwani Kumar*

Mr. Sailesh Rajbhan*

Mr. Amit Tripathi*

Mr. Prashant Pimple *

Mr. Ramesh Rachuri*

* Specific details mentioned under Section on Key Personnel above.

Mr. R. Seshagiri

The Details of Mr. R. Seshagiri are as under:AGE: 42MSc CAIIB, 2003 till date, Reliance Capital Asset Management LimitedHead Dealing (Equity) 1991 - 2002Middle Management and executive cadreCanbank Mutual Fund - Investment Banking, Fund Management, Market Operations & Product Marketing1983 – 1991 Junior Management CadreCanara Bank - Commercial Banking

E. STATUTORY AUDITORS:Auditors to the SchemeHaribhakti & Co.Chartered Accountants42, Free Press House, Nariman Point, Mumbai - 400 021.

Auditors to the Asset Management CompanyC.C. Chokshi & Co.Chartered Accountants12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate,Worli Mumbai - 400 018

Auditors to the Trustee CompanyM/s. Malpani & AssociatesChartered Accountants307, Chartered House, Dr. C.H. Street, Near Marine Lines Church, Mumbai - 400 002.

F. THE CUSTODIAN

The Trustee has appointed Deutsche Bank A.G. located at Kodak House, Mumbai-400 023, as the Custodian of the securities that are bought and sold underthe Scheme. A Custody Agreement has been entered with Deutsche Bank in accordance with SEBI Regulations. The Custodian is approved by SEBI underregistration no. IN/CUS/003 to act as Custodian for Mutual Funds.

In terms of Custody Agreement dated September 6, 1995 between the Mutual Fund and Deutsche Bank, the Custodian shall, inter alia:

• Provide post-trading and custodial services to the Mutual Fund;

• Keep securities and other instruments belonging to the Scheme in safe custody;

• Ensure smooth inflow/outflow of securities and such other instruments as and when necessary, in the best interests of the unitholders;

• Ensure that the benefits due to the holdings of the Mutual Fund are recovered; and

• Be responsible for loss of or damage to the securities due to negligence on its part or on the part of its approved agents.

The Custodian will charge the Mutual Fund, portfolio fee, transaction fee and out-of -pocket expenses in accordance with the terms of the Custody Agreementand as per any modification made thereof from time to time.

G. THE REGISTRAR

RCAM has appointed M/s. Karvy Computershare Pvt. Limited to act as the Registrar and Transfer Agent to the Scheme. M/s. Karvy Computershare Pvt. Limited(KCSPL) having their office at Karvy Plaza, 21, Road No. 4, Street No.1, Banjara Hills, Hyderabad 500 034, is a Registrar and Transfer Agent registered withSEBI under registration no. INR000000221. RCAM and the Trustee have satisfied themselves, after undertaking appropriate due diligence measures, that theycan provide the services required and have adequate facilities, including systems facilities and back up, to do so. The Trustee has also laid down broad parametersfor supervision of the Registrar. As Registrar to the Scheme, KCSPL will accept and process investor’s applications, handle communications with investors,perform data entry services, despatch Account Statements and also perform such other functions as agreed, on an ongoing basis.

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The Registrar is responsible for carrying out diligently the functions of a Registrar and Transfer Agent and will be paid fees as set out in the agreement enteredinto with it and as per any modification made thereof from time to time.

H. BANKERS TO THE ISSUEThe Bankers to the initial offer will be as under:Name of the Bank : SEBI Registration No.ICICI Bank Limited : INBI 00000004HDFC Bank Limited : INBI 00000063Applications for the initial offer will be accepted at all the Designated Investor Service Centers (DISC’s), as mentioned in the application form.

V. INVESTMENT FOCUS, OBJECTIVES, POLICIES & LIMITATIONS OF THE SCHEME

1. Investment Objectives:

The primary investment objective of the Scheme is to seek to achieve growth of capital by investing in a portfolio of fixed income securities normally maturingin line with the time profile of the respective plans.

2. Asset Allocation: The anticipated asset allocation is as under:

Monthly Plan (I – XI) :

Instrument Asset Allocation Risk Profile

Minimum Maximum

Money market instruments includingcall, Repo and CBLO 0% 100% Low

G-Secs 0% 20% Low

Corporate bonds and other debt securities* 0% 100% Medium to Low

The maturity of any instrument in the portfolio will be less than 3 months. (For instruments which have staggered payment, the average maturity of the instrumentshall be considered.) *Investments in Securitised debt including PTCs may go up to 100%.

Quarterly Plan (I – III) :


Minimum Maximum


G-Secs 0% 20% Low


The maturity of any instrument in the portfolio will be less than 6 months. (For instruments which have staggered payment, the average maturity of the instrumentshall be considered.) *Investments in Securitised debt including PTCs may go up to 100%.

Half Yearly Plan (I):


Minimum Maximum


G-Secs 0% 20% Low


The maturity of any instrument in the portfolio will be less than 1 year. (For instruments, which have staggered payment, the average maturity of the instrumentshall be considered.) *Investments in Securitised debt including PTCs may go up to 100%.

Annual Plan - II & III and Annual Plan – I:


Minimum Maximum

Money market instrumentsincluding call, Repo and CBLO 0% 100% Low

G-Secs 0% 20% Low


The maturity of any instrument in the portfolio will be less than 18 months. (For instruments which have staggered payment, the average maturity of theinstrument shall be considered.) *Investments in Securitised debt including PTCs may go up to 100%.

Derivatives may be used upto 50% of the Scheme’s net assets to hedge, in order to protect the interests of the Unitholders under the Scheme.

The above Asset Allocation Pattern is only indicative and the Trustees, reserves the right to change the above pattern in the interest of the investor dependingon market conditions for a short term period on defensive considerations.

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For purposes of the Offer Document, fixed income securities includes, but is not confined to debt obligations of the Government of India, state and localgovernments, government agencies, statutory bodies, public sector undertakings, Financial Institutions, public and private sector banks and corporate entities.The scheme reserves the right to invest it’s entire allocation in debt and money market securities in any one of the fixed income security classes. Investmentsin rated fixed income securities will be in securities rated by at least one recognized rating agency. Investments in unrated securities will be made with theapproval of the Investment Committee of RCAM, within the parameters laid down by the Board of Directors of the AMC & the Trustees. Securitised Debt canbe a part of the debt securities. The investments in Securitised debt including PTCs may go up to 100% of the corpus of the Scheme. However, no investmentsshall be made in foreign securities (including foreign securitised debt).

PTC is the abbreviated form for Pass Through Certificates. A pass through certificate represents beneficial interest in an underlying pool of cashflows. Thesecashflows represent dues against single or multiple loans originated by the seller of these loans. This pool of dues / receivables, after due sorting / cherry picking,is packaged as PTCs and sold to end investors like bank / mutual funds etc.

PTCs may be backed, but not exclusively, by receivables of personal loans, car loans and two wheeler loans and other assets subject to SEBI/other Regulations.

Money Market instruments includes commercial papers, commercial bills, treasury bills, Corporate Debt, Government Securities having residual maturity up toone year, call or notice money certificate of deposit, usance bills and any other like instruments as specified by the Reserve Bank of India from time to time.Short-term debt considerations for this Scheme includes maintaining an adequate float to meet anticipated levels of redemptions, expenses, and other liquidityneeds.

The Fund may also enter into “Repo”, hedging or such other transactions as may be allowed to Mutual Funds from time to time.

The scheme intends to invest its assets in securities of Government of India and /or State Government to the extent of SEBI prescribed limits. Such securitiesmay be:

i. Supported by the ability to borrow from the Treasury or

ii. Supported by Sovereign guarantee or the State Government or

iii. Supported by Government of India / State Government in some other way.

The above will depend upon the nature of securities invested.

The schemes may also enter into repurchase and reverse repurchase obligations in all securities held by them as per the guidelines and regulations applicableto such transactions. It is the intention of the scheme to trade in the derivatives market as per the Regulations.

The above-mentioned securities could be listed, unlisted, secured, unsecured, rated or unrated and may be acquired through initial public offerings, secondarymarket offerings, private placements, rights offers etc. To avoid duplication of portfolios and to reduce expenses, the Scheme may invest in any other schemesof the Fund to the extent permitted by the Regulations. In such an event, the AMC will not charge management fees on the amounts of the Schemes so invested,unless permitted by the Regulations.

While it is the intention of the Scheme to maintain the maximum exposure guidelines provided in the table above, there may be instances when these percentagesmay be exceeded. Typically, this may occur while the Scheme is new and the corpus is small thereby causing diversification issues.

Investments may be in listed or unlisted debt instruments, as permitted under SEBI Regulations. These would cover secondary market purchases, Initial PublicOffers (IPOs), other public offers, placements, rights offers, etc., subject to SEBI Regulations.

Investments in debentures and bonds will usually be in instruments, which have been assigned investment grade ratings by an approved rating agency. Theinstruments may be rated / unrated and listed / unlisted. In cases where the debt instrument is unrated, specific approval from the Investment Committee ofRCAM shall be obtained.

Investments in securitised debt including PTCs may go up to 100% is a provisional clause. The final portfolio will depend on the availability and desirabilityof assets in terms of maturity profile, asset quality and yields. There will be no impact on the credit profile and a marginal impact in terms of liquidity risk.In normal conditions, the investments shall be made in instruments depending upon the availability and attractiveness of the specific instrument. The portfolioformulation is a dynamic process and thus, an instrument which is attractive today may not be attractive tomorrow.

Investments in corporate bonds is an enabling provision. Investments shall be made in instruments depending upon the availability and attractiveness of thespecific instrument. The average maturity of the portfolio shall be in line with the average maturity of the plan.

Change in the investment pattern:

Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, marketopportunities, applicable regulations, and political and economic factors. It must be clearly understood that the percentages stated above are only indicative andnot absolute. These proportions can vary substantially depending upon the perception of the Investment Manager; the intention being at all times to seek toprotect the interests of the Unitholders. Such changes in the investment pattern will be for short term and for defensive considerations only.

The Fund shall seek Unitholders’ approval if necessary and in accordance with the Regulations, if there is any change in the Fundamental Attributes, pursuantto the change in Investment Pattern.

3.Investment strategy:

The fund management team will endeavor to maintain a consistent performance in the scheme by maintaining a balance between safety, liquidity and profitabilityaspects of various investments. The fund manager will try to achieve an optimal risk return balance for management of the fixed income portfolios.

The investments in debt instruments carry various risks like interest rate risk, liquidity risk, default risk, purchasing power risk etc. While they cannot be doneaway with, they can me minimized by diversification and effective use of hedging techniques.

The fund management team will take an active view of the interest rate movement by keeping a close watch on various parameters of the Indian economy, aswell as developments in global markets.

Investment views / decisions will be taken on the basis of the following parameters:

1. Prevailing interest rate scenario

2. Quality of the security / instrument (including the financial health of the issuer)

3. Maturity profile of the instrument

4. Liquidity of the security

5. Growth prospects of the company / industry

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6. Any other factors in the opinion of the fund management team

Risk Measurement / Control: The Fund Management propose to use analytic risk management tools like VAR / convexity/ modified duration for effective portfoliomanagement.

Benchmark Index: The Benchmark index for Monthly, Quarterly and Half-Yearly Plans is CRISIL Liquid Fund Index and for Annual Plan is CRISIL Short TermBond Fund Index.

4. Debt Market in India: Poised for a Major Growth

Debt Market in India: The Indian Debt market is facing major shift in the recent times. The substantial growth in Mutual Fund collections in the past few yearshave provided an easy route for the investors to channelise their savings into the debt market, which otherwise is largely dominated by Banks and otherInstitutional investors.

At present, the Indian debt market is dominated by issues of Central Government bonds, Coporate Debentures and PSU Bonds. The new Securitised instrumentsare also very attractive in the primary market. Risk associated with securitized Debt or PTCs are credit risk, liquidity risk and price risk/interest rate risk. Theother instruments available for investment are Commercial Papers, Certificate of Deposits, Government guaranteed bonds, etc. Brief details about theseinstruments are given below as on March 31, 2005:

Instruments Listed/ Unlisted Current Yield Range Liquidity Risk profileAs on January 5, 2005

Central Government Securities Listed 4.90% to 7.20% High Low

Corporate Debentures / PSU Bonds Listed 5.15% to 7.22% Moderate Moderate

CPs/CDs (short term) Listed 5.20% to 6.25% Moderate Moderate

Call Money unlisted 3.50% to 4.80% High Low

Mibor linked Papers listed +50 to70 bps Low Moderate

PTCs Unlisted 5.5% to 7.5% Low Low to medium

A brief description about yields presently available on Central Govt. Securities /Bonds & Debentures of various maturities is as follows:

Annualised yields (as on March 31, 2005) are:

Yrs < 1yr 2-7yrs 7-11yrs 11-20 yrs

Central Government securities/ Treasury Bills 4.90% to 5.65% 5.70% to 6.45% 6.45% to 6.70% 6.70% to 7.20%

Debentures/ Bonds (AAA rated) 5.15% to 6.15% 6.15% to 7.00% 7.00% to 7.22% NA

The price and yield on various debt instruments fluctuate from time to time depending upon the macro economic situation, inflation rate, overall liquidityposition, foreign exchange scenario, etc. Also, the price and yield varies according to maturity profile, credit risk etc.

5. Derivatives and hedging products:

Trading in Derivatives:

The scheme may use derivative instruments like Interest rate swaps, Forward rate agreements or such other derivative instruments as may be introduced fromtime to time for the purpose of hedging and portfolio balancing as may be permitted under the Regulations and Guidelines.

The sum total of derivative contracts outstanding shall not exceed the SEBI prescribed limits.

An interest rate swap is a financial contract between two parties exchanging a stream of interest payments for a notional principal amount on multiple occasionsduring a specified period.

Typically, one party receives a pre-determined fixed rate of interest while the other party, receives a floating rate, which is linked to a mutually agreed benchmarkwith provision for mutually agreed periodic resets.

Accounts are generally settled on a net basis on predetermined settlement dates. Accordingly, on each agreed payment date, amounts owed by each party iscalculated by applying the agreed rate i.e. fixed in one case and floating in the other, on the notional amount. The party who owes the higher amount i.e. thedifference between the interest rate amount and the floating interest rate amount or vice versa, makes a payment of the net amount. No principal amount isexchanged.

Generally, interest rate swaps involve exchange of a fixed rate to a floating rate of interest or vice versa. These are known as Plain Vanilla Swaps. The RBIhas currently allowed only these swaps in the Indian market.

Example:

The most common type of swaps is where one party agrees to pay a fixed rate of interest ( fixed-rate payer) to the other party who agrees to pay a floatingrate of interest ( floating-rate

payer). The payments are exchanged on designated dates during the life of the contract at agreed rates.

Suppose, the view on interest rate is that they would come down over the next three months if a particular investment is yielding a rate of return at 10% p.a.currently, the Fund Manager would like to lock-in this rate of return which in a downward interest rate scenario would appear attractive.

He, then, enters into a swap transaction with a counterparty who is willing to pay a fixed rate of 10% p.a. and accept a floating rate linked to say, MIBORwhich would vary everyday but is currently at 7% p.a. The transaction would be represented thus:

Receives fixed rate@10% p.a.

RMF Counterparty B

Pays Floating Rate MIBOR

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Note:

1. No principal amount is exchanged. A notional principal amount is agreed upon for interest calculation purposes.

2. Only the difference between the two rates is exchanged at agreed intervals or payment dates. When fixed interest rate amount is higher, the fixed rate payerpays the difference amount i.e. fixed interest rate amount minus the floating interest rate amount or vice-versa.

Forward Rate Agreements (FRAs):

A FRA is a financial contract between parties agreeing to exchange interest payments for a notional principal amount on settlement dates for a specified periodfrom start date to maturity date.

A FRA enables parties to fix interest cost on a future borrowing or fix an interest rate for a future investment.

Hedging a future asset:

Example: Suppose, RMF has funds to invest after two months for a period of three months. The Fund Manager expects interest rates to soften in the next twomonths. He, therefore, would like to lock-in the interest rate today for his investment to be made after two months. The instrument in which he wishes to investis a 91-day Treasury Bill at 8.25% p.a. He, therefore, enters into

an agreement where he sells a 2 x 5 FRA for a notional principal amount. 2 represents the start date of the FRA and 5 represents the maturity date or end date.

The details will be as under:

Asset : 91-day T’ Bill

Tenor : 3 months commencing from 2 months from date of agreement.

Indicative 2 x 5 : 8.25% p.a.

Benchmark : 91-day T’ Bill cut-off yield on the last auction preceding settlement date

So RMF receives 8.25% p.a. on the notional amount on settlement date. Counterparty will receive 91-day T’ Bill cut-off rate on the 91-day T’ Bill auction, onthe auction just preceding

the settlement date.

Both, IRS and FRAs can be thus effectively used as hedging products for interest rate risks.

Risk Factors:

Derivatives products carry the credit risk (risk of default by counterparty), market risk (due to market movements) and liquidity risk (due to lack of liquidityin derivatives).

3. No principal amount is exchanged. A notional principal amount is agreed upon for interest calculation purposes.

4. Only the difference between the two rates is exchanged at agreed intervals or payment dates. When fixed interest rate amount is higher, the fixed rate payerpays the difference amount i.e. fixed interest rate amount minus the floating interest rate amount or vice-versa.

6. Portfolio Turnover

It is presently anticipated that the portfolio turnover rate will be low. However, trading opportunities may emerge from time to time due to inefficiencies in themarket causing the portfolio turnover rate to rise. A high portfolio turnover rate may be representative of arbitrage opportunities that exist for securities in theportfolio rather than an indication of the Investment Manager’s view on a sector or security.

7. Investment Limitations

The investment policy of the scheme comply with the rules, regulations and guidelines laid out in SEBI (Mutual Funds) Regulations, 1996. As per theRegulations, specifically the Seventh Schedule, the following investment limitations are currently applicable:

1. The Scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a creditrating agency. This investment limit may be extended to 20% of the NAV of the Scheme with the prior approval of the Board of the Trustee Company and theBoard of the AMC. This limit shall not apply to investments in government securities and money market instruments. Provided further that investment withinsuch limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

1A. The Scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total of such instruments shall notexceed 25% of the NAV of the Scheme. All such investments will be made with the prior approval of the Investment Committee of RCAM.

Note: Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debtinstruments as specified under clause 1 and 1A above. Further, it is clarified that the investment limits mentioned in (1) and (2) above are applicable to all debtsecurities which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by eithercentral or state government. Government securities issued by central/state government or on its behalf by RBI are exempt from the above referred investmentlimits.

3. Transfers of investments from one scheme to another scheme in the Mutual Fund shall be allowed only if:

a) Such transfers are done at the prevailing market price for quoted instruments on spot basis;

b) The securities so transferred shall be in conformity with the investment objectives & policies of the Scheme to which such transfer has been made.

4. The initial issue expenses of the Scheme shall not exceed 6% of the funds raised under the Scheme.

5. The scheme shall not invest in any Scheme unless full disclosure of its intention to invest is made in the offer document. The Scheme may invest in anotherscheme being managed by the same investment manager or in any other mutual fund without charging any fees, provided the aggregate inter scheme investmentsmade by the Scheme under the same management or in schemes under the management of any other AMC shall not exceed 5% of NAV of the Scheme.

6. The fund may buy and sell securities on the basis of deliveries and will not make any short sales or engage in carry forward transactions or badla financeor use funds in option trading.

Provided that mutual funds shall enter into derivative transactions in a recognised stock exchange for the purpose of hedging and portfolio balancing, inaccordance with the guidelines issued by SEBI.

7. The Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned scheme, wherever investments are intended tobe of a long-term nature.

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8. The fund’s schemes shall not make any investment in :

a) Any unlisted security of an associate or group company of the sponsor

b) Any security issued by way of private placement by an associate or group company of the sponsor

c) The listed securities of group companies of the sponsor which is in excess of 25% of the net assets of the scheme.

8. The Scheme shall not invest in a fund of funds scheme.

9. Pending deployment of funds of the Scheme in securities in terms of the investment objectives and policies of the Scheme, the Fund can invest the fundsof the Scheme in short term deposits of scheduled commercial banks. The investments in short term deposits of scheduled commercial banks, if any for shortterm liquidity requirements, should be reported to the trustees along with the reasons for the investment which, interalia, would include comparison with theinterest rates offered by other scheduled commercial banks.

Further, RCAM shall ensure that the reasons for such investments are recorded in the manner prescribed in SEBI Circular MFD/CIR/6/73/2000 dated July 27,2000.

10. All the Schemes investment will be in transferable securities.

11. No term loans for any purpose will be advanced by the Scheme.

12. The AMC may invest in the Scheme either in the initial offer or subsequently. However, it shall not charge any investment management fee on such amountsinvested by it.

13. In case any company has invested more than 5% of the net asset value of a scheme, the investment made by that scheme or by any other scheme of thesame Mutual Fund in that company or its subsidiaries, if any, shall be brought to the notice of the Trustees by RCAM and be disclosed in the half-yearly andannual accounts with justification for such investment provided that the latter investment has been made within one year of the date of the former investmentcalculated on either side.

14. RCAM shall not undertake any other business except that permitted under the MF Regulations. RCAM shall meet with the capital adequacy requirements,if any, separately for each of the separate activity, if any undertaken by the AMC and obtain separate approval, if necessary under the MF Regulations.

All the scheme investments will be in transferable securities.

All investment restrictions stated above shall be applicable at the time of making investment.

The Scheme will not enter into any transaction which exposes it to unlimited liabilities or results in the encumbering of its assets in any way so as to exposethem to unlimited liability.

These investment limitations / parameters as expressed / linked to the net asset / net asset value / capital, shall in the ordinary course, apply as at the date ofthe most recent transaction or commitment to invest. Changes do not have to be effected merely because of appreciation or depreciation in value or by reasonof the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, orat any repayment or redemption or other reason outside the control of the Fund, any such limits would thereby be breached. If these limits are exceeded forreasons beyond its control, AMC shall adopt as a priority objective the remedying of that situation, taking due account of the interests of the Unit holders.

The Trustee Company / AMC may alter these above stated limitations from time to time, and also to the extent the Regulations change, so as to permit the Schemeto make its investments in the full spectrum of permitted investments in order to achieve its investment objectives & policies. As such all investments of theScheme will be made in accordance with the Regulations, including Schedule VII thereof and the Fundamental Attributes of this Scheme.

At RMF, to ensure robust risk management and adequate portfolio diversification internal Investment policy for various debt schemes has been framed. Theinvestment policy at RMF specifies limits both on overall basis (across all schemes) as well as on individual scheme level. Guidelines for following parametersfor liquid as well as non liquid schemes has been specified in the policy:

1. Eligible Instruments: Defines the eligible instruments where the scheme can invest

2. Minimum Liquidity : Defines the instruments considered as liquid instruments and the minimum investments in these instruments as a percentage of totalnet assets

3. Maximum Illiquid component : Defines the instruments considered as illiquid and the maximum investment that can be made in these instruments as apercentage of net assets.

4. Rating: Defines minimum and/ or maximum investment in a particular rating as a percentage of total portfolio.

5. Maturity : Defined the weighted average maturity of a portfolio. Also defines the weighted average maturity, maximum and maturity for certain asset typeslike corporate bond, PTCs, Gilts etc

8. Fundamental Attributes

Notwithstanding the above, the Trustees, in accordance with Regulation 18(15)(A) of the SEBI (Mutual Funds) Regulations, 1996, ensure that no change in thefundamental attributes of any Scheme or the Trust or fees and expenses payable or any other change which would modify the Scheme and affect the interestof the unitholders, shall be carried out unless: -

i) A written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwidecirculation as well as in the newspaper published in the language of the region where the Head Office of the Mutual Fund is situated and

ii) The unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.

For the purposes of this section, “fundamental attributes” of the scheme shall mean:

(i) Type of scheme : Close-ended income Scheme

(ii) Investment Objectives & Policies

Primary objective is to seek to achieve growth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profileof the respective plans.

Investment Pattern is as indicated in section V point no.1 Investment Objectives & Policies.

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(iii) Terms of Issue

Repurchase/redemption of units as defined in ‘Redemption of Units’

Fees and expenses as stated in section VII point no. C-2 “Recurring Expenses of the Scheme” (As % of Average weekly Net Assets) / as permitted by theRegulations.

Fundamental Attributes will not cover such actions of the Trustees of the Mutual Fund or the Board of Directors of the Asset Management Company, made inorder to conduct the business of the Trust, the Scheme or the Asset Management Company, where such business is in the nature of discharging the duties andresponsibilities with which they have been charged. Nor will it include changes to the Scheme made in order to comply with changes in regulation with whichthe Scheme has been required to comply.

9. Underwriting by the Scheme

Subject to SEBI Regulations, the Scheme may also undertake underwriting activities in order to augment its income, after the Mutual Fund obtains a certificateof registration in terms of the Securities and Exchange Board of India (Underwriters) Rules and Securities and Exchange Board of India (Underwriters)Regulations 1993 authorising it to carry on activities as underwriters. The total underwriting obligations of the Scheme, at any time, shall not exceed the totalvalue of the corpus of the Scheme together with undistributed profits lying to the credit of the Scheme. The decision to take up any underwriting commitmentshall be made as if the Scheme is actually investing in that particular security. As such, all investment restrictions and prudential guidelines relating toinvestments, individually and in aggregate as mentioned in SEBI regulations shall, in so far as may be applicable, apply to underwriting commitments whichmay be undertaken under the Scheme.

10. Borrowing by the Mutual Fund

To meet the temporary liquidity needs of the Scheme for the purpose of repurchase, redemption, or payment of income /dividend to the unit holders, the Schememay borrow upto 20% of its net assets for a period of upto six months or as may be permitted by the pertinent rules and regulations. Loans may be obtainedfrom any entity / organisation which are not specifically debarred to give loans to Mutual Funds and also loan is available from such entity / organisation atcompetitive terms. However, if loan is obtained from any associates such loans will be obtained only at extremely competitive terms at equal to or lower thanmarket rates. These loans may be secured by securities or assets of the Scheme pledged to such entity / organisation. Borrowing by the Mutual Fund on accountof the Scheme will tend to increase the impact of investment gains and losses on the NAV of the Scheme.

There were no borrowings for the financial year ended March 31, 2002, March 31, 2003 and March 31, 2004 under any of the Schemes of RMF. There wereborrowings during the financial year ended March 31, 2005.

11. Computation of Net Asset Value

The Net Asset Value (NAV) of the Units will be determined at intervals not exceeding weekly. The NAV shall be calculated in accordance with the following formula,or such other formula as may be prescribed by SEBI from time to time.

Market/Fair Value of Scheme’s Investments + Receivables + AccruedIncome + Other Assets - Accrued Expenses- Payables- Other Liabilities

NAV =___________________________________________________________________________________

Number of Units Outstanding

Example: If the applicable NAV is Rs. 10.00, sales/entry load is 2 per cent and the exit/repurchase load is 2 percent then the sales price will be Rs. 10.20 andthe repurchase price will be Rs. 9.80.

12. Valuation of Assets

The NAV of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation date.The Fund shall value its investments according to the valuation norms, as specified in Schedule VIII of the Regulations, or such norms as may be prescribedby SEBI from time to time. The broad Valuation norms are detailed below:

1. Traded Securities:

(i) The securities shall be valued at the last quoted closing price on the stock exchange.

(ii) When the securities are traded on more than one recognised stock exchange, the securities shall be valued at the last quoted closing price on the stockexchange where the security is principally traded.

(iii) When on a particular valuation day, a security has not been traded on the Principal stock exchange, the value at which it is traded on another stock exchangemay be used.

(iv) When a security (other than debt securities) is not traded on any stock exchange on a particular valuation day, the value at which it was traded on the selectedstock exchange, as the case may be, on the earliest previous day may be used provided such date is not more than thirty days prior to valuation date.

When a debt security (other than Government Securities) is not traded on any stock exchange on any particular valuation day, the value at which it was tradedon the principal stock exchange or any other stock exchange, as the case may be, on the earliest previous day may be used provided such date is not more thanfifteen days prior to valuation date. When a debt security (other than Government Securities) is purchased by way of private placement, the value at which itwas bought may be used for a period of fifteen days beginning from the date of purchase.

2. Thinly Traded Securities:

(i) Thinly Traded Equity/Equity Related Securities: “When trading in an equity/equity related security (such as convertible debentures, equity warrants, etc.)in a month is both less than Rs. 5 lacs and the total volume is less than 50,000 shares, it shall be considered as a thinly traded security and valued accordingly”.

For example, if the volume of trade is 100,000 and value is Rs. 400,000, the share does not qualify as thinly traded.

Also if the volume traded is 40,000, but the value of trades is Rs. 600,000, the share does not qualify as thinly traded.

In order to determine whether a security is thinly traded or not, the volumes traded in all recognised stock exchanges in India may be taken into account.

(ii) Thinly Traded Debt Securities: A debt security (other than Government Securities) shall be considered as a thinly traded security if on the valuation date,there are no individual trades in that security in marketable lots (currently Rs 5 crore) on the principal stock exchange or any other stock exchange.

A thinly traded debt security as defined above would be valued as per the norms set for non-traded debt security.

3. Non Traded Securities: When a security (other than Government Securities) is not traded on any stock exchange for a period of thirty days prior to thevaluation date, the scrip must be treated as a ‘non traded’ security.

Valuation Of Non-Traded / Thinly Traded Securities Non traded/ thinly traded securities shall be valued “in good faith” by the AMC on the basis of thevaluation principles laid down below:

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(i) Non-traded / thinly traded equity securities:

(a) Based on the latest available Balance Sheet, net worth shall be calculated as follows:

(b) Net Worth per share = [share capital + reserves (excluding revaluation reserves) – Misc. expenditure and Debit Balance in P&L A/c] Divided by number ofPaid up Shares.

(c) Average capitalisation rate (P/E ratio) for the industry based upon either BSE or NSE data (which should be followed consistently and changes, if any notedwith proper justification thereof) shall be taken and discounted by 75% i.e. only 25% of the Industry average P/E shall be taken as capitalisation rate (P/E ratio).Earnings per share of the latest audited annual accounts will be considered for this purpose.

(d) The value as per the net worth value per share and the capital earning value calculated as above shall be averaged and further discounted by 10% for ill-liquidity so as to arrive at the fair value per share.

(e) In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised earning.

(f) In case where the latest balance sheet of the company is not available within nine months from the close of the year, unless the accounting year is changed,the shares of such companies shall be valued at zero.

(g) In case an individual security accounts for more than 5% of the total assets of the scheme, an independent valuer shall be appointed for the valuation ofthe said security.

To determine if a security accounts for more than 5% of the total assets of the scheme, it should be valued by the procedure above and the proportion whichit bears to the total net assets of the scheme to which it belongs would be compared on the date of valuation.

(ii) (a) Non Traded /Thinly Traded Debt Securities of Upto 182 Days to Maturity: As the money market securities are valued on the basis of amortization(cost plus accrued interest till the beginning of the day plus the difference between the redemption value and the cost spread uniformly over the remainingmaturity period of the instruments) a similar process should be adopted for non-traded debt securities with residual maturity of upto 182 days, in the absenceof any other standard benchmarks in the market. Debt securities purchased with residual maturity of upto 182 days are to be valued at cost (including accruedinterest till the beginning of the day) plus the difference between the redemption value (inclusive of interest) and cost spread uniformly over the remainingmaturity period of the instrument. In case of a debt security with maturity greater than 182 days at the time of purchase, the last valuation price plus accruedinterest should be used instead of purchase cost. All other non-traded Non Government debt instruments shall be valued using the method suggested in (ii)(b).

(ii) (b) Non Traded/ Thinly Traded Debt Securities of Over 182 Days to Maturity.

For the purpose of valuation, all Non Traded Debt Securities would be classified into “Investment grade” and “Non Investment grade” securities based on theircredit ratings. The non-investment grade securities would further be classified as “Performing” and “Non Performing” assets.

• All Non Government investment grade debt securities, classified as not traded, shall be valued on yield to maturity basis as described in the applicable SEBIcircular.

• All Non Government non-investment grade performing debt securities would be valued at a discount of 25% to the face value.

• All Non Government non-investment grade non-performing debt securities would be valued based on the provisioning norms.

Valuation of securities with Put/Call Options: The option embedded securities would be valued as follows:

Securities with call option: The securities with call option shall be valued at the lower of the value as obtained by valuing the security to final maturity andvaluing the security to call option.

In case there are multiple call options, the lowest value obtained by valuing to the various call dates and valuing to the maturity date is to be taken as the valueof the instrument.

Securities with Put option: The securities with put option shall be valued at the higher of the value as obtained by valuing the security to final maturity andvaluing the security to put option.

In case there are multiple put options, the highest value obtained by valuing to the various put dates and valuing to the maturity date is to be taken as the valueof the instruments.

Securities with both Put and Call option on the same day: The securities with both Put and Call option on the same day would be deemed to mature onthe Put/Call day and would be valued accordingly.

(iii) Government securities : Government securities will be valued as per SEBI Guidelines (Crisil GILT valuer).

(iv) Illiquid Securities:

(a) Aggregate value of “illiquid securities” of scheme, which are defined as non-traded, thinly traded and unlisted equity shares, shall not exceed 15% of thetotal assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.

Provided that in case any scheme has illiquid securities in excess of 15% of total assets as on September 30, 2000 then such a scheme shall within a periodof two years bring down the ratio of illiquid securities within the prescribed limit of 15% in the following time frame:

(i) all the illiquid securities above 20% of total assets of the scheme shall be assigned zero value on September 30, 2001.

(ii) All the illiquid securities above 15% of total assets of the scheme shall be assigned zero value on September 30, 2002.

(b) All funds shall disclose as on March 31 and September 30 the scheme-wise total illiquid securities in value and percentage of the net assets while makingdisclosures of half yearly portfolios to the Unitholders. In the list of investments, an asterisk mark shall also be given against all such investments, which arerecognised as illiquid securities.

(c) Mutual Funds shall not be allowed to transfer illiquid securities among their schemes w.e.f. October 1, 2000.

(d) In respect of close ended funds, for the purposes of valuation of illiquid securities, the limits of 15% and 20% applicable to open-ended funds should beincreased to 20% and 25% respectively.

(e) Where a scheme has illiquid securities as at September 30, 2001 not exceeding 15% in the case of an open-ended fund and 20% in the case of close endedfund, the concessions of giving time period for reducing the illiquid security to the prescribed limits would not be applicable and at all time the excess over15% or 20% shall be assigned nil value.

v) Value of “Rights” entitlement

Until they are traded, the value of the “rights” entitlement would be calculated as: Vr = n/m x (P ex – P of )

where Vr = Value of rights n = no. of rights Offered m = no. of original shares held P ex = Ex-Rights price P of = Rights Offer price

b) Where the rights are not traded pari-passu with the existing shares, suitable adjustments would be made to the value of rights. Where it is decided not tosubscribe for the rights but to renounce them and renunciations are being traded, the rights would be valued at the renunciation value.

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vi) Expenses and Incomes Accrued: All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV. For this purpose,major expenses like management fees and other periodic expenses would be accrued on a day-to-day basis. The minor expenses and income will be accruedon a periodic basis, provided the non-daily accrual does not affect the NAV calculations by more than 1%.

vii) Changes in securities and in number of units: Any changes in securities and in the number of units will be recorded in the books not later than the firstvaluation date following the date of transaction. If this is not possible, given the frequency of NAV disclosure, the recording may be 42 delayed up to a periodof seven days following the date of the transaction, provided as a result of such non recording, the NAV calculation shall not be affected by more than 1%.

The valuation guidelines as outlined above are as per prevailing Regulations and are subject to change from time to time in conformity with changes made bySEBI.

Valuation of Derivative Products:

i. The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause 1 of the Eighth Schedule to theSecurities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time.

ii. The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments prescribed in sub clauses (i) and (ii)of clause 2 of the Eighth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time.

13. Accounting Policies and Standards

In accordance with SEBI Regulations, the Fund shall follow the following accounting policies currently in force and are subject to change from time to timein conformity with changes made by SEBI.

a) RCAM shall keep and maintain proper books of Accounts, records and documents, for the Scheme so- as to explain its transactions and to disclose at anypoint of time the financial position of the Scheme and in particular give a true and fair view of the state of affairs of the Fund.

b) For the purposes of the financial statements, the Fund shall mark all Investments in the balance sheet at market value.

However, since the unrealised gain arising out of appreciation on investments cannot be distributed, provisions shall be made for exclusion of this item whenarriving at distributable income.

c) Dividend income earned by the Scheme shall be recognized, not on the date the dividend is declared, but on the date the share is quoted on an ex-dividendbasis. For investments, which are not quoted on the stock exchange, dividend income would be recognised on the Date of Declaration.

d) In respect of all interest-bearing investments, income shall be accrued on a day to day basis as it is earned. Therefore when investments are purchased, interestpaid for the period from the last interest due date upto the date of purchase shall not be treated as cost of purchase but shall be debited to Interest RecoverableAccount. Similarly, interest received at the time of the sale for the period from the last interest due date upto the date of sale shall not be treated as an additionto sale value but credited to Interest Recoverable Account.

e) In determining the holding cost of Investments and the gains or loss on sale of Investments, the “average cost” method shall be followed.

f) Transaction for purchase or sale of investments shall be recognised as of the trade date and not as of the settlement date, so that the effect of all investmentstraded during the financial year are recorded and reflected in the financial statements for that year. Where investment transactions take place outside the StockMarket, for e.g. acquisitions through private placements or purchases or sales through private treaty the transaction shall be recorded, in the event of the purchase,as of the date on which the Scheme obtains an enforceable obligation to pay the price or in the event of the sale, when the Scheme obtains an enforceable rightto collect the proceeds of sale or an enforceable obligation to deliver the instruments sold.

h) Where income receivable on investments has been accrued and has not been received for period of 12 months beyond the due date, provision should be madeby debit to the revenue account for the income so accrued and no further accrual of income shall be made in respect of such investment.

i) In the case of a close -ended Scheme which provide unitholders the option for an early redemption or repurchase of their own units, the par value of theunits have to be debited to the Capital Account and the difference between the purchase price and the par value of the unit, if positive, shall be credited toreserves and if negative should be debited to reserves.

j) The cost of investments acquired or purchased should include brokerage, stamp charges and any charge customarily included in the brokers bought note. Inrespect of privately placed debt instruments any front-end discount offered shall be reduced from the cost of the investment.

k) Underwriting commission should be recognised as revenue only when there is no devolvement on the Scheme. When there is devolvement on the Scheme,the full underwriting commission received and not merely the portion applicable to the devolvement shall be reduced from the cost of investment.

The accounting policies and standards outlined above are as per the existing Regulations and are subject to change as per changes in the Regulations.

Guidelines for Identification and Provisioning for Non Performing Assets (Debt Securities) For Mutual Funds:

(A) Definition of a Non Performing Asset (NPA): An ‘asset’ shall be classified as non performing, if the interest and/or principal amount have not been receivedor remained outstanding for one quarter from the day such income / installment has fallen due.

(B) Effective date for classification and provisioning of NPAs: The definition of NPA may be applied after a quarter past due date of the interest. For e.g.if the due date for interest is 31.12.2002, it will be classified as NPA from 01.04.2003.

(C) Treatment of income accrued on the NPA and further accruals : After the expiry of the 1 st quarter from the date the income has fallen due, there willbe no further interest accrual on the asset i.e. if the due date for interest falls on 31.12.2002 and if the interest is not received, accrual will continue till31.03.2003 after which there will be no further accrual of income. In short, taking the above example, from the beginning of the 2nd quarter there will be nofurther accrual on income.

On classification of the asset as NPA from a quarter past due date of interest, all interest accrued and recognized in the books of accounts of the Fund till thedate, should be provided for. For e.g. if interest income falls due on 31.12.2002, accrual will continue till 31.03.2003 even if the income as on 31.12.2002 hasnot been received. Further, no accrual will be done from 01.04.2003 onwards. Full provision will also be made for interest accrued and outstanding as on31.12.2002.

(D) Provision for NPAs – Debt Securities : Both secured and unsecured investments once they are recognized as NPAs call for provisioning in the same mannerand where these are related to close ended scheme the phasing would be such that to ensure full provisioning prior to the closure of the scheme or the scheduledphasing which ever is earlier.

The value of the asset must be provided in the following manner or earlier at the discretion of the fund. Fund will not have discretion to extend the period ofprovisioning. The provisioning against the principal amount or installments should be made at the following rates irrespective of whether the principal is duefor repayment or not.

• 10% of the book value of the asset should be provided for after 6 months past due date of interest i.e. 3 months form the date of classification of the assetas NPA.

• 20% of the book value of the asset should be provided for after 9 months past due date of interest i.e. 6 months from the date of classification of the asset

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as NPA.

• Another 20% of the book value of the assets should be provided for after 12 months past due date of interest i.e. 9 months form the date of classification ofthe asset as NPA.

• Another 25% of the book value of the assets should be provided for after 15 months past due date of interest i.e. 12 months from the date of classificationof the asset as NPA.

• The balance 25% of the book value of the asset should be provided for after 18 months past due date of the interest i.e. 15 months form the date of classificationof the assets as NPA.

Book value for the purpose of provisioning for NPAs shall be taken as a value determined as per the prescribed valuation method.

(E) Reclassification of assets: Upon reclassification of assets as ‘performing assets’:

1. In case a company has fully cleared all the arrears of interest, the interest provisions can be written back in full.

2. The asset will be reclassified as performing on clearance of all interest arrears and if the debt is regularly serviced over the next two quarters.

3. In case the company has fully cleared all the arrears of interest, the interest not credited on accrual basis would be credited at the time of receipt.

4. The provision made for the principal amount can be written back in the following manner: -

• 100% of the asset provided for in the books will be written back at the end of the 2 nd quarter where the provision of principal was made due to the interestdefaults only.

• 50% of the asset provided for in the books will be written back at the end of the 2 nd quarter and 25% after every subsequent quarter where both installmentsand interest were in default earlier.

5. An asset is reclassified as ‘standard asset’ only when both overdue interest and overdue installments are paid in full and there is satisfactory performancefor a subsequent period of 6 months.

(F) Receipt of past dues: When the fund has received income/principal amount after their classifications as NPAs;

For the next 2 quarters, income should be recognized on cash basis and thereafter on accrual basis. The asset will be continued to be classified as NPA for thesetwo quarters.

During this period of two quarters although the asset is classified as NPA no provision needs to be made for the principal if the same is not due and outstanding

If part payment is received towards principal, the asset continues to be classified as NPA and provisions are continued as per the norms set at (D) above. Anyexcess provision will be written back.

Some of the investments made by mutual funds may become non-performing (NPAs) or illiquid at the time of maturity/ closure of schemes. In due course oftime, these NPAs and illiquid securities may be realised by the mutual funds i.e. after the winding up of the schemes. Such amount would be distributed, ifit is substantial and is realised within two years, to the old investors. In case the amount is not substantial or it is realised after two years, it may be transferredto the Investor Education Fund maintained by each mutual fund as specified in SEBI circular MFD/CIR/9/120/2000 dated November 24, 2000. The decisionas to the determination of substantial amount shall be taken by the Trustee of mutual funds after considering the relevant factors.

(G) Classification of Deep Discount Bonds as NPAs: Investments in Deep Discount Bonds can be classified as NPAs, if any two of the following conditionsare satisfied:

• If the rating of the Bond comes down to grade ‘BB’ or below.

• If the company is defaulting in their commitments in respect of other assets, if available.

• Full Net worth erosion.

Provision should be made as per the norms set at (D) above as soon as the asset is classified as NPA. Full provision can be made if the rating comes downto grade ‘D’

(H) Reschedulement of an asset: In case any company defaults either interest or principal amount and the fund has accepted a re-schedulement of the scheduleof payments, then the following practice may be adhered to:

(i) In case it is a first re-schedulement and only interest is in default, the status of the asset namely, ‘NPA’ may be continued and existing provisions shouldnot be written back. This practice should be continued for two quarters of regular servicing of the debt. Thereafter, this be classified as ‘performing asset’ andthe interest provided may be written back.

(ii) If the re-schedulement is done due to default in interest and principal amount, the asset should be continued as non-performing for a period of 4 quarters,even though the asset is continued to be serviced during these 4 quarters regularly. Thereafter, this can be classified as ‘performing asset’ and all the interestprovided till such date should be written back.

(iii) If the re-schedulement is done for a second/third time or thereafter, the characteristic of NPA should be continued for eight quarters of regular servicingof the debt. The provision should be written back only after it is reclassified as ‘performing asset’.

(I) Disclosure in the Half Yearly Portfolio Reports: The mutual funds shall make scripwise disclosures of NPAs on half yearly basis along with the half yearlyportfolio disclosure.

The total amount of provisions made against the NPAs shall be disclosed in addition to the total quantum of NPAs and their proportion of the assets of themutual fund scheme.

In the list of investments an asterisk mark shall be given against such investments which are recognized as NPAs. Where the date of redemption of an investmenthas lapsed, the amount not redeemed shall be shown as ‘Sundry Debtors’ and not investment provided that where an investment is redeemable by installmentsthat will be shown as an investment until all installments have become overdue

14. INVESTMENT BY THE AMC IN THE FUND: RCAM reserves the right to invest its own funds in the Scheme upto a maximum extent of its networth.As per SEBI Regulations, such investments are permitted, subject to disclosure being made in the Offer Document. Further, RCAM shall not charge any feeson its investment in the Scheme, unless allowed to do so under SEBI Regulations in the future.

15. DEPOSITORY: If the Securities are held in dematerialised form the rules of the Securities and Exchange Board of India (Depositories Participants)Regulations, 1996 will apply.

16. POLICY FOR INTER-SCHEME TRANSFERS: The scheme may purchase / sell securities under the scheme through the mode of inter-scheme transfers,if such a security is under the buy / sell list of this Scheme and is on the sell / buy list of another scheme under the Fund. Under such circumstances, thetransactions will be effected based on the prevailing market price on spot basis and in conformity with regulations. The valuation of untraded / unquotedsecurities and debt instruments shall be done in accordance with the general valuation policies of the Fund.

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VI. UNITS

A. UNITS AND OFFER

Objective:

Reliance Fixed Maturity Fund - Series II is a close-ended income scheme comprising of a schedule of investment plans of varying maturities which seek to achievegrowth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective plans. Each Plan offersa growth and dividend option.

Initial Offer Period:

Plans Initial offer Opens Initial offer ClosesMonthly Plan – I 25/04/2005 25/04/2005Monthly Plan – II 26/05/2005 26/05/2005Monthly Plan – III 27/06/2005 27/06/2005Monthly Plan – IV 28/07/2005 28/07/2005Monthly Plan – V 29/08/2005 29/08/2005Monthly Plan – VI 29/09/2005 29/09/2005Monthly Plan – VII 31/10/2005 31/10/2005Monthly Plan – VIII 01/12/2005 01/12/2005Monthly Plan – IX 02/01/2006 02/01/2006Monthly Plan – X 02/02/2006 02/02/2006Monthly Plan – XI 06/03/2006 06/03/2006

Quarterly Plan – I 26/07/2005 26/07/2005Quarterly Plan – II 25/10/2005 25/10/2005Quarterly Plan – III 24/01/2006 24/01/2006

Half-Yearly Plan - I 14/12/2005 15/12/2005

Annual Plan – I 05/05/2005 06/05/2005Annual Plan – II 03/05/2005 18/05/2005Annual Plan –III 27/07/2005 28/07/2005

RCAM, in consultation with the Trustees, also reserve the right to extend the closing date, but not later than 30 days from the date of the initial offer. The dateof actual launch of the plans will be decided by RCAM at the time of launch of the respective schedule of plans through a notice in the designated investorservice centres and in the newspaper atleast 2 days before the launch of the schedule. RCAM also reserves the right to not to launch / defer the launch of specificplans.

Initial Offer Price

The initial offer price will be Rs. 10 per unit for cash at par, for various plans launched under the scheme.

Who can Invest?

The following persons (subject, wherever relevant, to purchase of units being permitted under their respective constitutions and relevant State regulations) areeligible to subscribe to the units of Reliance Fixed Maturity Fund – Series II:

- Resident Indian Adult Individuals, either single or jointly (not exceeding three)

- Non-Resident Indians, Persons of Indian Origin residing abroad and Foreign Institutional Investors (registered with SEBI), on a full repatriation/nonrepatriationbasis subject to the Regulations prescribed by SEBI and RBI from time to time

- Parents / Lawful guardians on behalf of Minors- Hindu Undivided Families (HUFs) in the sole name of the Karta- Companies (including Public Sector Undertakings), Bodies Corporate, Association of Persons, Body of Individuals and Co-operative Societies & Trade unions- Banks (including Regional Rural Banks) and Financial Institutions- Religious and Charitable Trusts (through Trustees), Private Trusts authorised to invest in Mutual Fund schemes under their Trust Deeds- Special Purpose Vehicles (SPVs) approved by appropriate authority (subject to RBI approval)- International Multilateral Agencies approved by the Government of India- Army/Navy/Air Force, Para Military Units and other eligible institutions- Unincorporated body of persons as may be accepted by RCTC- Partnership Firms- Scientific and Industrial Research Organisations- Trustee, AMC or Sponsor or their associates may subscribe to Units under the SchemesRCAM reserves the right to invest its own funds in the Scheme(s) upto a maximum extent of its networth. As per SEBI Regulations, such investments are permitted,subject to disclosure being made in the respective Scheme Offer Document(s). Further, RCAM shall not charge any fees on its investment in the Scheme(s), unlessallowed to do so under SEBI Regulations in the future.It is expressly understood that at the time of investment, the investor/unitholder has the express authority to invest in units of the Scheme and the AMC / Trustee/ Mutual Fund will not be responsible if such investment is ultravires the relevant constitution.RCAM reserves the right to include / exclude new / existing categories of investors to invest in this Scheme from time to time, subject to SEBI Regulations, if any.

Minimum Corpus

In case of Monthly Plan (I – XI), Quarterly Plan (I – III), Half yearly Plan (I), Annual Plan - I & III, the Fund seeks to collect a minimum corpus of Rs. 20 lakhsin each of the above Plans.In case of Annual Plan - II, the Fund seeks to collect a minimum corpus of Rs. 1 lakh.There will not be any maximum limit on the amount raised and the Fund will make full and firm allotment against all valid applications.In the event this amount is not raised during the initial offer period, the amount collected will be refunded to the applicants in accordance with SEBI Regulations.Refund of subscription amount to applicants whose applications are invalid for any reason whatsoever, will commence after the allotment process is completed.

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Minimum number of investors in scheme/plan:

As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No. 10/22701/03, each scheme and individual plan(s) under the schemes should have a minimumof 20 investors and no single investor should account for more than 25% of the corpus of such scheme/plan(s). In case of non-fulfillment with either of the abovetwo conditions, the investor’s money would be refunded, in full, immediately after the close of the IPO.

Initial Issue Expenses:

The initial issue expenses incurred during initial public offer will be debited to the scheme to the extent of 6% of the funds raised during the initial public offerand the same will be amortized on a weekly basis over the period of the scheme. However, as per SEBI (Mutual Fund) Regulations any expense more than 6%of the initial net assets shall be borne by the AMC.

Allotments and Refund

All the applicants whose subscription proceeds have been realised will receive full and firm allotment of Units, provided their applications are valid in all otherrespects. RCAM retains the discretion to reject any application. The process of allotment of units and mailing of account statement will be completed within 30days from the date of closure of the initial offer period.

No interest will be payable on any subscription money refunded within 30 days. If the Fund refunds the amount after 30 days, interest @ 15% p.a. will be paidto the applicant and borne by the AMC for the period from the day following the date of expiry of 30 days until the actual date of the refund. Refund orderswill be marked “A/c. payee only” and drawn in the name of the applicant in the case of a sole applicant and in the name of the first applicant in all other cases.In both cases, the bank account number and bank name, as specified in the application, will be mentioned in the refund order. The bank and/ or collection charges,if any, will be borne by the applicant. All the refund payments will be mailed by registered post or as required under Regulations.

Joint Applicants

If an Account has more than one holder, the first-named holder (as determined by the records of the Registrar) only will receive all notices and correspondencewith respect to the Account, as well as the proceeds of any redemption request or dividend or other distributions. In addition, such holder will have the votingrights, associated with such Units as permitted. In the case of death of any joint holder, the survivor(s) shall be the only person(s) recognised by RMF as havingany title to or interest in the units.In the case of holdings specified as ‘jointly’, all requests will have to be signed by all the joint holders in sequence of their holdings.However, in the case of holdings specified as ‘any one or survivor’, any one of the joint holders may sign such requests.If an Account has more than one holder and the mode of operation is not specified i.e whether it is a ‘Jointly’ or ‘Either or survivor’ or ‘Anyone or survivor’then it will be considered as ‘Jointly’.

Account Statement / Unit Certificate

Upon allotment, an Account Statement will be sent to each Unitholder stating the number of Units allotted. The Account Statement shall be non transferable.The Trustees may issue a Unit Certificate in lieu of the Account Statement in respect of units held, to such unitholders who request for the same, after receiptof a specific request from the Unitholder. The Trustees reserve the right to make the Units transferable at a later date, subject to Regulations issued from timeto time. Further, the Trustee also reserves the right to issue transaction confirmation slips on an ongoing basis in lieu of Account Statements, indicating the price,and the units debited or credited to the account of the Investor, along with the closing balance of their Account.All Units will rank pari passu amongst Units within the same Scheme / Plan as to assets, earnings and the receipt of dividend distribution, if any.Mailing of account statements will be completed within thirty days from the date of closure of the initial offer period of the respective Plans under the RelianceFixed Maturity Fund – Series – II.However, RCAM reserves right to provide the account statement / transaction confirmation slip to investor through an alternative mechanism as may be decidedby the Fund, from time to time with the consent of the investor.

The alternative mechanism may include electronic means of communication such as e-mail etc. For example, if an investor in future, redeems or switches his unitsto another scheme /plan on the internet, then an online account statement / transaction confirmation may be provided to the investor or the same may be sentto his email address.

Applicable NAV

For redemptions /switch out

Applicable NAV is the net asset value per unit at the close of the working day on which the application for redemption/ switch out is received at the DesignatedInvestor Service Center and is considered accepted on that day. An application is considered accepted on that day subject to is being complete in all respectsand received prior-to the cut-off timings on that working day.

Currently, the cut-off timing is 3.00 p.m. on all working days. Any applications received after the cut-off timings on a working day will be considered as havingbeen received for the next working day.

NAV Information: The NAV shall be computed on daily basis. It shall be published at least in two daily newspapers at intervals of not exceeding one week. Itshall be uploaded on the AMFI site and Reliance Mutual Fund site i.e. www.reliancemutual.com on a daily basis.

The information on NAV may also be obtained by the Unitholders, on any day from the office of the AMC / the office of the Registrar in Hyderabad or anyof the other Designated Investor Service Centres.

Investors may also obtain information on the purchase /sale price for a given day on any Working Day from the office of the AMC / the office of the Registrarin Hyderabad/ any of the other Designated Investor Service Centres.

For any NAV information, investor may also call our Touchbase customer service centre at 3030 1111, callers outside India, please dial 91-40-30301111.

Listing of Units

The Regulations require that every close-ended Scheme shall be listed in a recognised stock exchange within six months of the closure of the subscription period unlessthe Scheme provides for periodic repurchase facility to all the Unitholders with restriction, if any, on the extent of repurchase; or if the details of such repurchase facilityare clearly disclosed in the Offer document; or if the Scheme opens for repurchase within a period of six months from the closure of the subscription period.Units of the Scheme shall not be listed in view of a repurchase facility being offered to investors.

Transfer Facility

As the Fund will be repurchasing the Units on an ongoing basis, no transfer facility is required. However, if a transferee becomes a holder of the Units by operationof law, then RCAM shall, subject to production of such evidence, which in its opinion is sufficient, effect the transfer, if the intended transferee is otherwiseeligible to hold the Units, within 30 days from the date of receipt of all relevant documents, as specified in Regulation 37(2).A person becoming entitled to hold the Units in consequence of the death, insolvency, or winding up of a sole holder or the last survivor of the joint holders,upon producing evidence to the satisfaction of the Fund shall be registered as the holder.

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Purchase of Units

Since Reliance Fixed Maturity Fund - Series II is a close-ended scheme, units of a face value of Rs. 10 per unit can be purchased only during the initial offerperiod of respective plans launched under the Scheme.

The cut-off timings for the subscription during the initial offer period will be 3.00 p.m. and the high value cheques/ account transfer transactions will be acceptedwithin the cut-off timings during the IPO in order to facilitate early allotment of units. Purchases will include switch-in transactions.

Minimum Investment

The following are the minimum investment amounts for the various plans in the Scheme for all categories of investors:-(i) Monthly Plan (I – XI), Quarterly Plan (I – III), Half-Yearly Plan (I), Annual Plan –I & III

Rs.1 lac per plan per option and in multiples of Re. 1 thereafter.

(ii) Annual Plan - II

Rs. 5,000 per option and in multiples of Re. 1 thereafter

RCAM may revise the minimum / maximum amounts and the methodology for subscriptions as and when necessary for the plans in the Scheme. Such changemay be brought about after taking into account the cost structure for a transaction/account and /or market practices etc.

Transmission

In case of death of the unitholder, Units shall be transmitted in favour of the second-named joint holder or nominee, as the case may be, on production of acertified copy of the death certificate or such other document /s to the satisfaction of the Fund.

Investment Plans

The Scheme will have the following schedule of Plans:- Monthly Plan ( I – XI)- Quarterly Plan (I – III)- Half-Yearly Plan (I)- Annual Plan (I, II & III)

The schedule of various plans proposed to be launched under the Fixed Maturity Fund – Series II are as indicated in the following table:

Schedule of Plans Initial offer Opens Initial offer Closes

Monthly Plan – I 25/04/2005 25/04/2005Monthly Plan – II 26/05/2005 26/05/2005Monthly Plan – III 27/06/2005 27/06/2005Monthly Plan – IV 28/07/2005 28/07/2005Monthly Plan – V 29/08/2005 29/08/2005Monthly Plan – VI 29/09/2005 29/09/2005Monthly Plan – VII 31/10/2005 31/10/2005Monthly Plan – VIII 01/12/2005 01/12/2005Monthly Plan – IX 02/01/2006 02/01/2006Monthly Plan – X 02/02/2006 02/02/2006Monthly Plan – XI 06/03/2006 06/03/2006

Quarterly Plan – I 26/07/2005 26/07/2005Quarterly Plan – II 25/10/2005 25/10/2005Quarterly Plan – III 24/01/2006 24/01/2006

Half-Yearly Plan - I 14/12/2005 15/12/2005

Annual Plan – I 05/05/2005 06/05/2005Annual Plan – II 03/05/2005 18/05/2005Annual Plan –III 27/07/2005 28/07/2005

The offer for subscription of units during the initial offer period will be at par value.Investors may also opt to invest in all the plans of the Scheme; subject to the minimum subscription amounts under each plan.It should be noted that the schedule for the intended launch of various plans is only indicative and RCAM, in consultation with the Trustee, may decide notto launch Plan (s) or alter, either partly or fully, the proposed schedule of launch / proposed redemption / maturity date / duration of a Plan. Similarly, RCAM,in consultation with the Trustee, reserves the right to increase / decrease the number of working days under the specified redemption period and alter/ modify/ change the specified subscription / repurchase period / dividend date(s). Such a revision shall be notified to SEBI and also by way of a notice at the DesignatedInvestor Service Centres atleast two days before any such changes are applicable.

Investment Options within the Plan

In each plan, investors may choose either the Growth Option or the Dividend Option

Growth Option:No dividend distribution is envisaged under this option. The income attributable to the units allotted under this option will continue to remain invested in theplan and will be reflected in the Net Asset Value of units under the option.

Dividend Option:It is proposed to declare dividend on maturity of the respective Plans to be launched under the Scheme. Distribution of dividend will be subject to the availabilityof distributable surplus, as computed in accordance with the SEBI Regulations.However, the Trustees reserve the right to declare dividends during the interim period. There is no assurance or guarantee as to the rate and frequency of dividend distribution.Dividends as and when declared will be paid to eligible unitholders of record, within 30 days of the declaration of dividend.The actual date of declaration of dividend will be notified by display at the designated investor service centres.Investors are required to clearly indicate the option (s) under the plans in the application form. In the absence of clear indication as to the choice of option(s)under the Plans, units will by default be allotted under the Growth Option of the Plans.

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Effect of Dividends

When dividends are declared and paid with respect to the various Plans in the Scheme, the net assets attributable to Unitholders in the respective Dividend Planswill stand reduced by an amount equivalent to the product of the number of units eligible for dividend and the gross amount of dividend per unit declared onthe record date. The NAV of the Unitholders in the Growth Plan will remain unaffected by the payment of dividend.

Mode of Payment of Dividends

The Fund proposes to pay dividend in the following manner:

a) Direct credit to the bank account of unitholders: The Fund is arranging with select bankers to enable direct credits into the bank accounts of the investorsat these banks. The names of such banks will be intimated to the unitholders subsequently. As per the directive issued by SEBI, it is mandatory for an investorto declare his / her bank account number and accordingly, investors are requested to give their bank account details in the application form.

The Mutual Fund, on a best effort basis, and after scrutinising the names of the banks where unitholders have their accounts, will allow direct credit to theunitholders’ bank accounts.

b) Unitholders who do not wish to avail the above mentioned direct credit facility will receive dividend payments through payable at par cheques / DDs. In locationswhere payable at par facility is not available, dividend payments will be made through demand drafts.

Policy on unclaimed redemption and dividend amounts

As per SEBI guidelines, the unclaimed redemption and dividend amounts shall be deployed in call money market or money market instruments only or such otherinstruments, as permitted under Regulations. The investors who claim such amounts during the period of three years from the due date shall be paid at theprevailing Net Asset Value. After a period of three years, this amount will be transferred to a pool account and the investors can claim the amount at NAV prevailingat the end of the third year. The income earned on such funds shall be used for the purpose of investor education.

The Fund will make continuous efforts to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee chargedby AMC for managing unclaimed amounts shall not exceed 50 basis points.

How to apply?

The application forms for the respective Plans will be available in the Designated Investor Service Centres during their business hours. All cheques and bankdrafts must be drawn in favour of “Reliance Fixed Maturity Fund - Series II” and crossed “A/c. payee only”. A separate cheque / draft must be submitted forinvestment in each Plan. A common application form may be used for investing simultaneously in more than one Plans of the scheme being launched at the sametime, subject to minimum subscription amounts under each Plan.

Please mention the application number on the reverse of each cheque/ draft accompanying the application form.

As per the directives issued by SEBI, it is mandatory for an investor to declare his/her bank account number in the application form. This is to safeguard theinterest of unitholders from loss or theft of their redemption cheques / DDs. Investors are requested to provide their bank details in the Application Form failingwhich the same will be rejected as per current Regulations.

Wherever an application is of an amount of Rs. 50,000 or more per transaction, the applicant or in the case of application in joint names, each of the applicants,should mention his/her permanent account number (PAN) allotted under the Income Tax Act, 1961 or where the same has not been allotted, a declaration in FormNo. 60 (or Form No. 61) will be required to be furnished by the investor in duplicate alongwith a copy of the proof of address. Investors are therefore requestedto provide the same, in the absence of which the application form will not be accepted. In case where the same have been applied for and not allotted, pleasemention “Applied not allotted’’. For non-assesses please mention “Not an Assessee”.

As per the SEBI (Central Database of Market Participants) Regulations, 2003 as amended from time to time, all investors being bodies corporate along with theirpromoters and directors are required to mention their UIN for all transactions.

Please note that all resident investors not being bodies corporate who enter into any securities market transaction after March 31, 2005 (including any transactionin the primary market or secondary market in any listed securities and any transaction in units of mutual funds or collective investment schemes) of value ofone rupees or more are required to quote their UIN.

Mode of payment

Resident Investors:

Investors can make payment for the Units in any of the following means:

_ By local Cheques drawn in favour of “Reliance Fixed Maturity Fund - Series II”.

_ By a Demand Draft payable locally in the city of the Designated Investor Service Centre in which the application form / transaction slip is submitted and drawnon a bank which is a member of the Bankers Clearing House of that city and drawn in favour of “Reliance Fixed Maturity Fund - Series II”.

Non Resident Investors:

_ Mode of Payment on a Repatriation basis

In case of NRIs, and Persons of Indian Origin residing abroad, payment may be made by way of Indian Rupee drafts purchased abroad and payable locally atany of the Designated Investor Service Centres or by way of cheques drawn on Non-Resident (External) (NRE) Account payable at par at any of the DesignatedInvestor Service Centres.

Payments can also be made through rupee drafts payable locally at any of the Designated Investor Service Centres and purchased out of funds held in NREAccounts / FCNR Accounts.

In case of FIIs, the amount representing the investment is received by debit to the Special Non resident Rupee Account of the FII maintained with a designatedbank, approved by RBI.

All cheques/drafts should be made out in favour “Reliance Fixed Maturity Fund - Series II” and crossed “Account Payee Only”.

Documents required to be submitted alongwith the Application Forms:In case Indian Rupee drafts are purchased abroad or from FCNR/NRE A/c. an account debit certificate from the Bank issuing the draft confirming the debit.For subscription amounts remitted out of debit to NRE Accounts/ FCNR Accounts, the application forms must be accompanied with a Foreign Inward RemittanceCertificate (FIRC), issued by the investor’s banker(s).

Mode of payment on a Non-Repatriation basisIn case of NRIs/persons of Indian origin applying for Units on a non-repatriation basis, payments may be made by cheques/demand drafts drawn out of Non-Resident Ordinary (NRO) accounts payable locally at the Designated Investor Service Centres where the Application Form is submitted.All cheques/drafts should be made out in favour of “Reliance Fixed Maturity Fund – Series II” and crossed “Account Payee Only”.

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PLEASE NOTE THAT THE FOLLOWING WILL NOT BE ACCEPTED:

CashStockinvestsOutstation ChequesPost-Dated ChequesRCAM may specify various other modes of payments, from time to time.Returned cheques will not be presented again for collection and the accompanying application shall not be considered for allotment.

Where to submit the Application forms

Investors may submit / mail the completed application forms at any of the Designated Investor Service Centres mentioned in this Offer Document or any otherlocation designated as such by RCAM, at a later date. The addresses of the Designated Investor Service Centres are given at the end of this Offer Document.

Investors in cities other than where the Designated Investor Service Centres (DISC) are located, may send their application forms to any of the nearest DISC,accompanied by Demand Draft/s payable locally at that DISC.

Application under Power of Attorney

In the case of applications made under a Power of Attorney or by a limited Company or by a body corporate or a registered society, or a trust, the original Power ofAttorney or a duly certified copy thereof duly notarised or the relevant resolution or authority to make the application, as the case may be, or a duly certified copy thereof,alongwith a certified copy of the Memorandum and Articles of Association and Trust Deed/Bye laws must be lodged along with a photocopy of the Application formwithin 5 days of the Date of Subscription at any of the Designated Investor Service Centres as mentioned at the end of this Offer Document. However, in cases wheresuch documents are not received by the Fund / Registrar within the prescribed time, RCAM reserves right to act as deemed fit, on a case to case basis.

B. REDEMPTION OF UNITS

Each Plan will have a specific Maturity Date. At the time of maturity of the plan, the unitholder shall have the following choices as indicated at the time of makingan application for units under the plan:

(i) Units under the plan will be compulsorily and without any further act by the unitholder(s) be redeemed on the specified Maturity date at applicable NAV.

(ii) Units under the plan will be compulsorily and without any further act by the unitholder(s) be reinvested on the specified Maturity date at applicable NAVin another plan of similar tenure which is opening for fresh subscription on the said date and will be continued till the time the unitholder applies for redemption.In this case, the consent for the application in respect of the first plan shall be deemed to be taken as consent for all subsequent plans and the terms and conditionsof the subsequent plans shall be binding upon the unitholders.

For redemptions made on the maturity date, the AMC does not intend to charge any load, at present. The unitholders may also redeem their investments on allworking days in the Plans, at the applicable NAV, subject to the payment of an exit load.

The Units can be redeemed (sold back to the Fund) or switched-out to an eligible scheme on all working days, at the Redemption Price. The redemption requestin the prescribed format should be submitted or mailed to any of the Designated Investor Service Centres mentioned in this Offer Document or any other Centredesignated as such by RCAM, at a later date. Redemption requests in any other format shall not be acceptable. The redemption request can be made for anyamount or any number of units, subject to the minimum balance in Rupees which is required to be maintained in the account at the time of redemption or asmay be specified by the Fund, from time to time. The investor can also withdraw the entire balance in the account and close the account.

If a redemption/ switch request is for both, a specified rupee amount and a specified number of units in the respective Plans, the specified number of Units willbe considered as the definitive request. If the balance in the account of the Unitholder does not cover the amount stated in the redemption request, the MutualFund is authorised to close the Unitholders account and send such entire lesser balance to the Unitholder.

RCAM may revise the minimum/ maximum amounts and methodology for redemption as and when necessary. Such change may be brought about after takinginto account the cost structure for a transaction / account and / or Market practices and/or the interest of the unitholders. Further, such changes shall only beapplicable to transactions from the date of such change, on a prospective basis.

Units allotted against remittance of cheques/ DDs will not be eligible for redemption until the realisation of proceeds of the said cheques / DDs.

Redemption Price

The Redemption Price will be calculated in the following way:

Redemption Price = Applicable NAV x (1- Exit Load)

The Redemption Price will be published in at least in two daily newspapers at intervals of not exceeding one week

Currently, redemptions shall be effected at applicable NAV based prices subject to exit loads, if any. However, RCAM may revise the above pricing structure andtransaction timings from time to time, subject to an exit load chargeable in accordance with the Regulations. However, any such revision shall be in accordancewith SEBI Regulations. As per the Regulations, the repurchase price of units of a close-ended scheme shall not be lower than 95% of the NAV.

For detailed explanation on loads, please refer Section VII on “Loads and Recurring Expenses”. For the latest load structure, please contact any Designated InvestorService Centre.

After every redemption transaction, a fresh Account statement / Transaction confirmation Slip will be despatched, reflecting the updated holding of the Unitholder.

How to Redeem?

The transaction slip can be used by the investor to make a redemption or Inter-scheme Switch or Inter-plan Switch by entering the requisite details in the transactionslip and submitting the same at any of the Designated Investor Service Centres. Transaction slips can be obtained from any of the Designated Investor ServiceCentres.

The unitholder while redeeming units may either request that the redemption proceeds be mailed to his/her address or ask for it to be retained at the DesignatedInvestor Service Centre for collection by him/her.

However, RCAM reserves right to provide the facility of redeeming units of the Scheme through an alternative mechanism as may be decided by the Fund from timeto time. The alternative mechanism may include electronic means of communication such as redeeming units online through the RMF site or any other website etc.

Where to submit the Redemption request?

The unitholder should submit the transaction slip for a redemption / switch or request for closure of his / her account at any of the Designated Investor ServiceCentres mentioned in this Offer Document or designated as such by RCAM, at a later date.

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Payment of Proceeds

Resident Investors

The Fund proposes to pay redemption proceeds in the following manner :

a) Direct credit of redemption proceeds to the bank account of unitholders : The Fund is arranging with select bankers to enable direct credits of redemptionproceeds into the bank accounts of the investors at these banks. The names of such banks will be intimated to the unitholders subsequently.

As per the directive issued by SEBI, it is mandatory for an investor to declare his / her bank account number and accordingly, investors are requested to givetheir bank account details in the application form.

The Mutual Fund, on a best effort basis, and after scrutinising the names of the banks where unitholders have their accounts, will allow direct credit to theunitholders’ bank accounts.

b) Unitholders who do not wish to avail the above mentioned direct credit facility will receive redemption proceeds by cheques, marked “A/c. Payee only” and drawnin the name of the sole holder / first-named holder (as determined by the records of the Registrar). The Bank Name and Bank Account No., as specified in the Registrar’srecords, will be mentioned in the cheque. In case any investor does not give his bank details, for any reason whatsoever, the Fund shall in no way be responsiblefor any loss, on payment made without the Payee Bank details in the instrument. The cheques will be payable at par in all the cities where such facility is availablewith the specified bankers. For other cities, Demand Drafts will be issued payable at the city of his residence after deducting the Demand Draft charges.

Non Resident InvestorsIn case of non-resident investors, redemption proceeds will be remitted depending upon the source of investment as follows:

(a) Repatriation BasisWhen units have been purchased through remittance in foreign exchange from abroad by cheque / draft issued from proceeds of the unitholders’ FCNR depositor from funds held in the unitholders’ Non Resident (External) account kept in India, the proceeds can be remitted to the unitholder in foreign currency (anyexchange rate fluctuation will be borne by the unitholder). The proceeds can also be sent to his Indian address for crediting to his NRE / FCNR / non-resident(Ordinary) account or NRSR account, if desired by the unitholder.

(b) Non Repatriation Basisa) When units have been purchased from funds held in the unitholders’ non-resident (Ordinary) account, the proceeds will be sent to the unitholders’ Indianaddress for crediting to the unitholders’ non-resident (Ordinary) account / NRSR account.

b) When units have been purchased from funds held in the unitholders’ NRSR account, the proceeds will be sent to the Indian address for crediting to theunitholders’ NRSR account.

The Fund may make other arrangements for effecting payment of redemption proceeds in future.

Despatch of Proceeds

As per SEBI Regulations, the Mutual Fund shall despatch the redemption proceeds within the maximum period allowed, which is currently 10 working days fromthe date of receipt of the redemption request at the Designated Investor Service Centres. However, under normal circumstances, the Mutual Fund shall endeavourto despatch the redemption proceeds within three working days from the date of receipt of the redemption request at the Designated Investor Service Centres.A Redemption Confirmation Slip / Fresh Account Statement will also be sent to the Unitholders reflecting the new unit balance in his Account.

All payments shall be despatched by ordinary mail (with or without UCP) or Registered Post or by Courier, unless otherwise required under the Regulations.

Effect of Redemptions

(i) On the Fund

The Unit capital and Reserves of the Scheme will stand reduced by an amount equivalent to the product of the number of Units redeemed and the ApplicableNAV as on the date of redemption.

(ii) On the unitholder’s account

The balances in the unitholder’s account will stand reduced by the number of Units redeemed.

Right to Limit Redemption

RCAM may, in consultation with the Trustees, in the larger interest of the Unitholders of the Scheme under this Offer Document and keeping in view the unforeseencircumstances / unusual market conditions, limit the total number of Units which may be redeemed on any Working Day to 5% of the total number of Units thenissued and outstanding under any Scheme / Plan or such other percentage as the AMC may determine. RCAM may, in consultation with the Trustees, in responseto unforeseen circumstances or unusual market conditions including, but not limited to, extreme volatility of the stock, fixed income and money markets, naturalcalamities, communication breakdowns, internal system breakdowns, strikes, bandhs, riots or other situations, where it considers that such suspension is necessary,limit the total number of Units which may be redeemed on any working day to 5% of the total number of Units then issued or such higher percentage as RCAMmay determine, on a case to case basis.

Any Units, which by virtue of these limitations are not redeemed on a particular Working Day, will be carried forward for redemption to the next Working Day,in the order of receipt. Redemptions so carried forward will be priced on the basis of the Redemption Price of the Previous Day on which redemption is made.Under such circumstances, to the extent multiple redemption requests are received at the same time on a single Working Day, redemptions will be made on pro-rata basis, based on the size of each redemption request, the balance amount being carried forward for redemption to the next Working Day(s).

Suspension of Purchase and/ or Redemption of Units

The purchase and / or redemption of Units may be suspended, temporarily or indefinitely, by RCAM, after approvals from the Boards of the Trustee and AMC,when any of the following conditions exist at one/more Designated Investor Service Centres:- The stock market stops functioning or trading is restricted- Periods of extreme volatility in the stock market, fixed income or money market, which, in the opinion of the Investment Manager, are prejudicial or detrimentalto the interest of the investors- Natural calamity- For any bulk processing like dividend, mergers, etc.- If banks do not carry-out any of the normal banking activities at one or more Designated Investor Service Centres- In the event of breakdown in the means of communication used for the valuation of investments of the Scheme, without which the value of the securities cannotbe accurately calculated.- In the event of any force majeure or disaster that affects the normal functioning of the AMC or the designated investor service centres.- SEBI, by order, so directs.

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The normal time taken to process redemption and/ or purchase requests, as mentioned earlier, may not be applicable during such extraordinary circumstances.RCAM, in consultation with the Trustees, also reserves the right at its sole discretion to withdraw sale of Units in the Scheme temporarily or indefinitely, if theAMC views that increasing the Scheme’s size further may prove detrimental to the existing unitholders of the Scheme. An order/ request to purchase Units isnot binding on and may be rejected by the Trustee, the AMC or their respective agents, unless it has been confirmed in writing by the AMC or its agents and(or) payment has been received.

Minimum Account BalanceRedemptions can be for any amount or any number of units, subject to the minimum balance in Rupees, which is required to be maintained in the account, atthe time of the redemption.

RCAM reserves the right to close an investor’s account if the value of the unit balance in the account falls below:- Rs.1,00,000 in the Growth and Dividend Options of Monthly Plan (I – XI), Quarterly Plan (I – III), Half- Yearly Plan (I), Annual Plan I & III, under the Scheme.- Rs. 5,000 in the Growth and Dividend Option of Annual Plan - II

In such an event, RCAM reserves the right to compulsorily redeem the balance units in the account completely at the applicable redemption price.The Fund may revise the minimum/maximum amounts and methodology for redemptions as and when necessary. Such change may be brought about after takinginto account the cost structure for a transaction / account and / or Market practices and / or the interest of the unitholders. Further such changes shall be carriedout on a prospective basis from the date of notification of such change and would not, in any manner, be prejudicial to the interests of the investors who havejoined the scheme before such notification. Any changes would be informed to unitholders by way of an advertisement.

Other Facilities:Nomination by unitholdersThe nomination can be made only by individuals applying for / holding units on their own behalf singly or jointly. If the units are held jointly, all joint holderswill sign the nomination form. A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided bythe unit holder. Non-Resident Indians can be nominated subject to the guidelines issued by the RBI from time to time. Nomination can also be in favour of theCentral Government, State Government, a local authority, any person designated by virtue of his office or a religious or charitable trust. Non-individuals includingsociety, trust, body corporate, partnership firm, Karta of an HUF, holder of an power of attorney cannot nominate. The Nominee shall not be a trust, other thana religious or charitable trust, society, body corporate, partnership firm, Karta of Hindu Undivided Family or a Power of Attorney holder. Applicants can changethe nomination at any time during the periodicity of their holding in the Scheme. Those who wish to do so, can duly complete the relevant section in the Applicationform. If the applicant desires to nominate at a later date or change the nomination, he can request for a nomination form at any of the Designated Investor ServiceCentres. Payment to the nominee of the sums payable against redemption / dividends shall fully discharge the Fund of all liabilities towards the estate of theunitholder and their successors and legal heirs.

Switching OptionUnitholders may switch part/full unitholdings, which are not under any lien, from the Plans under the scheme to any other eligible scheme, at the applicable NAVsubject to the payment of applicable loads.Unitholders may also switch part/ full units from eligible schemes to the Plans in Reliance Fixed Maturity Fund - Series II only during the initial offer period ofthe respective Plans launched under the Scheme, at the applicable NAV subject to the payment of applicable loads.Unitholders may request for switch of part / full units from an existing Plan of the scheme to any other Plan provided such a switch is requested during the currencyof the initial offer period of such Plan, at the applicable NAV subject to payment of applicable loads.Unitholders may switch entire units within the dividend and growth options in the same Plans without any load. Units cannot be switched to different Plan.The switches would be done at the applicable NAV based prices and the difference between the NAVs of the two Schemes/ Plans/ Options will be reflected inthe number of units allotted.RCAM may charge an appropriate load equivalent to the difference between the entry load into the scheme and the prevailing entry load of the Scheme fromwhere units are being transferred. However, RCAM, in consultation with the Trustees, reserves the right to modify this structure, in accordance with SEBIRegulations. However, any such change shall be applicable only to units transacted pursuant to such change.As per the directives issued by SEBI, it is mandatory for an investor to declare his/her bank account number in the application form. This is to safeguard theinterest of unitholders from loss or theft of their redemption cheques / DDs. Investors are requested to provide their bank details in the Application Form failingwhich the same will be rejected as per current Regulations.RCAM reserves the right to change the procedures in respect of Inter-Scheme/ Inter-Plan/ Inter-Option Switches, from time to time.

How to Switch?The request for a switch can be either in terms of amount or in terms of the number of units. Instructions for switching may be provided by completing a transactionslip and submitting the same at any of the Designated Investor Service Centres.Investors are requested to mention the name of the Scheme and Plan/ Option into which the switch is being made. If the applicant does not mention his / herchoice of plan/ Option of the Scheme into which the switch is being effected, the Fund will treat the switch application as having been received under the defaultplan/ option of the Scheme.An Account Statement reflecting the updated Unit balance in the Scheme will be despatched to the Unitholder. RCAM may, in consultation with the Trustees,from time to time, charge a load on switching of units, on a prospective basis.

Lien on UnitsA lien on units allotted will be created, and such units shall not be available for redemption until the payment proceeds are realised by the Fund. In case a unitholderredeems units soon after making purchases, the redemption cheque will not be despatched until sufficient time has elapsed to provide reasonable assurance thatcheques or drafts for units purchased have been cleared. In case the cheque / draft is dishonoured by the bank, the transaction shall be reversed and the unitsallotted earlier shall be cancelled, and a fresh Account Statement / Confirmation slip shall be despatched to the Unitholder.

For non-individuals and NRIs, the Fund may mark a lien on units in case documents which need to be submitted are not given in addition to the applicationform and before the submission of the redemption request. However, RCAM reserves the right to change operational guidelines for lien on units from time to time.

Pledge of UnitsThe Units under the Scheme may be offered by the unitholder as security by way of a pledge in favour of scheduled banks, financial institutions or any otherbody, all specifically approved by the Mutual Fund. Upon a specific authorisation request made by a unitholder and upon completing necessary formalities bythe unitholder, the Fund will instruct the Registrar to mark a lien for a specific period on the Units standing to the credit of the unitholder’s account. However,the disbursement of such loans will be at the entire discretion of the concerned bank/financial institution/ any other body and the Mutual Fund assumes noresponsibility thereof. If by enforcing the pledge /charge, the scheduled bank/financial institution any other approved body seeks to transfer the units and havethem registered in its name, then the AMC shall comply with the request, if the necessary documentary evidence is made available. No Pledge or charge shallbe recognised by the AMC unless it is registered with the Registrar and the acknowledgement has been received. However, RCAM reserves the rights to changeoperational guidelines for pledge on units, from time to time.

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Contingent Deferred Sales Charge (CDSC)

Currently there is no CDSC chargeable under the Scheme. However, in accordance with SEBI Regulations, RCAM, in consultation with the Trustees, reservesthe right to charge CDSC on units redeemed. However, as and when this CDSC is implemented, it shall be applicable only to units subscribed to after the dateof such notification on a prospective basis.

Accordingly, as and when the CDSC is charged, a communication shall be given to this effect either to transacting investors, or to all investors in the form ofa mailer, or in any other manner. The maximum CDSC that may be charged on redemption transactions, if any, shall be as provided under SEBI Regulations.

Fractional Units

Fractional units on account of redemptions/ switch-outs, will be computed and accounted for up to three decimal places.

Duration of the Scheme / Plan:

RCAM in consultation with Trustees will launch the following plans under this offer document and any addendum thereto.

Duration of Initial Offer

Schedule of Plans Scheme Opens Scheme Closes Duration of the PlanMonthly Plan – I 25/04/2005 25/04/2005 31 days from the date of allotment of unitsMonthly Plan – II 26/05/2005 26/05/2005 32 days from the date of allotment of unitsMonthly Plan – III 27/06/2005 27/06/2005 31 days from the date of allotment of unitsMonthly Plan – IV 28/07/2005 28/07/2005 32 days from the date of allotment of unitsMonthly Plan – V 29/08/2005 29/08/2005 31 days from the date of allotment of unitsMonthly Plan – VI 29/09/2005 29/09/2005 32 days from the date of allotment of unitsMonthly Plan – VII 31/10/2005 31/10/2005 31 days from the date of allotment of units

Monthly Plan – VIII 01/12/2005 01/12/2005 32 days from the date of allotment of unitsMonthly Plan – IX 02/01/2006 02/01/2006 31 days from the date of allotment of units

Monthly Plan – X 02/02/2006 02/02/2006 32 days from the date of allotment of unitsMonthly Plan – XI 06/03/2006 06/03/2006 31 days from the date of allotment of units

Quarterly Plan – I 26/07/2005 26/07/2005 91 days from the date of allotment of units

Quarterly Plan – II 25/10/2005 25/10/2005 91 days from the date of allotment of units

Quarterly Plan – III 24/01/2006 24/01/2006 91 days from the date of allotment of units

Half-Yearly Plan - I 14/12/2005 15/12/2005 181 days from the date of allotment of units

Annual Plan – I 05/05/2005 06/05/2005 402 days from the date of allotment of unitsAnnual Plan – II 03/05/2005 18/05/2005 392 days from the date of allotment of unitsAnnual Plan –III 27/07/2005 28/07/2005 368 days from the date of allotment of units

The Plans will be wound up before the termination date in the following circumstances.

1. If there are changes in the capital markets, fiscal laws or legal system, or any event or series of events occurs which in the opinion of the Trustees, requirethe scheme/ Plan to be wound up; or

2. 75% of the Unitholders in the Plan pass a resolution that the Plan be wound up; or

3. SEBI directs the Scheme/ Plan to be wound up in the interest of Unitholders.

In the event of liquidation or winding up of the scheme/ plan, each Unitholder is entitled to receive its proportion of the Scheme’s/ Plan’s assets remaining afterpayment of debts and after providing for reserve for all debts and expenses.

Instead of receiving a final payment from the Scheme/ plan on liquidation or winding up, the Unitholder may opt to switch over to other eligible Schemes thenin operation at the prevailing terms of the Scheme to which the Unitholder is switching.

As per Regulations:

A close-ended Scheme shall be wound up on the expiry of duration fixed in the Scheme on redemption of units unless rolled over for a further period. A Schememay be wound up after repaying the amount due to the Unitholders -

a. On happening of any event which in the opinion of the Trustees requires the Scheme to be wound up or

b. If 75% of the Unitholders of a Scheme pass a resolution that the Scheme be wound up or

c. If SEBI so directs in the interest of Unitholders

Where the Scheme is to be wound up as above, the Trustees shall give notice disclosing the circumstances leading to the winding up of the Scheme to SEBI,in one daily newspapers having circulation all over India and in a vernacular newspaper circulating at the place where the Mutual Fund’s head office is situated.On and from the date of publication of such notice, the Trustee or the AMC, as the case may be, shall :

a. cease to carry on any business activities, in respect of the Scheme so wound up

b. cease to create or cancel Units in the Scheme

c. cease to issue or redeem the Units in the Scheme

The Trustee shall call a meeting of Unitholders to approve by simple majority of the Unitholders present and voting at the meeting a resolution for authorisingthe Trustees or any other person to take steps for winding up of the Scheme, provided that a meeting of the Unitholders shall not be necessary if the Schemeis wound up at the end of its maturity period.

The Trustees or the person so authorised shall dispose off the assets of the Scheme concerned in the best interest of the Unitholders of that Scheme. The proceedsof sale realised shall first be utilised towards discharge of such liabilities as are due and payable under the scheme and after making appropriate provision formeeting expenses connected with such winding up. The balance shall be paid to the Unitholders in proportion to their respective interest in the assets of thescheme as on the date when the decision of winding up was taken. On completion of winding up, the Trustee shall forward to SEBI and the Unitholders, a reporton the winding up, the steps taken for disposal of assets of the Scheme before winding up, net assets available for distribution to the Unitholders and a certificate

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from the auditors of the Fund. The provision for the disclosure of half-yearly and annual reports shall continue to be applicable until the winding up is completedor the Scheme ceases to exist. After receipt of the Trustees report, if SEBI is satisfied that all measures for winding up of the scheme have been complied with,the scheme shall cease to exist.

The Trustee also reserves the right to suspend / terminate offering fresh Plans of any maturity for subscription whenever it feels that the prevailing businessenvironment is not conduciveto the launch of such plans.

VII. LOADS AND RECURRING EXPENSES

A. LOAD STRUCTURE OF THE SCHEME

The Load structure shall be as indicated in para B below on the ‘Applicable Load Structure”. Under the Scheme, RCAM, in consultation with the Trustees, reservesthe right to change the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Scheme on the investment on prospective basis.The same will be notified to the unitholders. The Load Structure would comprise of an Entry Load and /or an Exit Load / CDSC, as may be permissible underthe Regulations. All loads including CDSC for the Scheme shall be maintained in a separate account and may be utilised towards meeting the selling and distributionexpenses as permitted under the Regulations. Any surplus in this account may be credited to the scheme, whenever felt appropriate by RCAM.

B. APPLICABLE LOAD STRUCTURE

The following Load Structure is applicable in the scheme till further notice.

Entry Load: Nil

Exit Load:

Plans Load

Monthly Plan 0.10% if redeemed before maturity

Quarterly Plan 0.30% if redeemed before maturity

Half-Yearly Plan 0.60% if redeemed before maturity

Annual Plan 1.00% if redeemed before maturity

Contingent Deferred Sales Charge (CDSC): Nil

No exit load will be charged upon maturity of the relevant plans issued under the Scheme. No load will be charged on Inter-Option switches (i.e. within growthand dividend options) within the same Plan. Units cannot be switched from one plan to another plan.

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 functioningof the scheme, on a prospective basis. At the time of changing the Load Structure:

(1) The addendum detailing the changes will be attached to Offer Document and Abridged Offer Document. The addendum will be circulated to all the distributors/brokers so that the same can be attached to all Offer Documents and Abridged Offer Documents already in stock. The addendum may be sent along with thenewsletter sent to the Unitholders immediately after the changes.

(2) Arrangements will be made to display the changes/modifications in the Offer Document in the form of a notice in all the Investor Service Centres and distributors/brokers office.

(3) The introduction of the Exit Load alongwith the details will be stamped in the acknowledgement slip issued to the investors on submission of the applicationform and will also be disclosed in the Account Statement or in the covering letter issued to the Unitholders after the introduction of such Load.

C. FEES AND EXPENSES OF THE SCHEMEAs per the provisions of the Regulations (as amended up to date), the following fees and expenses will be chargeable to the Scheme:

1. Expenses of Initial Issue : Present Scheme (Reliance Fixed Maturity Fund – Series I) :

The initial issue expenses incurred during initial public offer will be debited to the scheme to the extent of 6% of the funds raised during the initial publicoffer and the same will be amortized on a weekly basis over the period of the scheme. However, as per SEBI (Mutual Fund) Regulations any expense more than6% of the initial net assets shall be borne by the AMC.

Example: Unitholder’s Investment Rs. 100

Unit face value Rs. 10, Initial Issue Expenses Rs. 6

Duration of the Plan : 31 daysTherefore, Amortisation of Initial Issue Expense will happen over a period of 31 days

NAV Day one Rs. (94+5.8064)/10 = 9.9806

The estimated break up for the initial issue expenses are as follows:

Actuals

%

Advertising / Marketing 1.00Brokerage / Commission 0.50Printing and Despatch 0.50Registrar’s Fees 0.25Banker’s fees 0.25Other expenses 0.50

3.00

The above expenses are estimates only and are subject to change as per actuals.

Reliance Index Fund - The scheme was launched on January 29, 2005. Actual amount mobilized Reliance Index Fund - Nifty Plan – Rs. 15.80 crores and in SensexPlan – Rs. 3.72 crores. Actual Initial Issue Expenses –Nifty Plan – 0.79% and Sensex Plan – 0.81% of the amount mobilized in the respective plans. As mentionedin the Offer Document of the Reliance Index Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years.

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Reliance Fixed Maturity Fund Series I - The scheme was launched on March 29, 2005. Actual amount mobilized - Rs. 201.69 crores. Actual Initial Issue Expenses- Nil

Reliance Equity Opportunities Fund - The scheme was launched on Februaru 14, 2005. Actual amount mobilized - Rs. 1772.68 crores. Actual Initial Issue Expenses- 3.1026% of the amount mobilized. As mentioned in the Offer Document of the Reliance Equity Opportunities Fund, actual initial issue expenses were debitedto the scheme and will be amortized over a period of 5 years.

Reliance NRI Equity Fund - The scheme was launched on October 16, 2004. Actual amount mobilized - Rs. 92.96 crores. Actual Initial Issue Expenses - 3.39%of the amount mobilized. As mentioned in the Offer Document of the Reliance NRI Equity Fund, actual initial issue expenses were debited to the scheme andwill be amortized over a period of 5 years.

Reliance NRI Income Fund - The scheme was launched on October 16, 2004. Actual amount mobilized - Rs. 2.03 crores. Actual Initial Issue Expenses - 2.45%of the amount mobilized. As mentioned in the Offer Document of the Reliance NRI Income Fund, actual initial issue expenses were debited to the scheme andwill be amortized over a period of 5 years.

Reliance Media & Entertainment Fund - The scheme was launched on September 16, 2004.Actual amount mobilized - Rs. 81.32 crores, Actual Initial Issue Expenses- 0.86% of the amount mobilized. As mentioned in the Offer Document of the Reliance Media & Entertainment Fund, actual initial issue expenses were debitedto the scheme and will be amortized over a period of 5 years.

Reliance Floating Rate Fund - The scheme was launched on August 23, 2004.

Actual amount mobilized - Rs. 590.59 crores, Actual Initial Issue Expenses - 0.02% of the amount mobilized

As mentioned in the Offer Document of the Reliance Floating Rate Fund, actual initial issue expenses were debited to the scheme and will be amortized overa period of 5 years.

Reliance Fixed Term Scheme - The scheme was launched March 28, 2003.

Actual amount mobilized - Rs. 80.20 crores, Actual Initial Issue Expenses - 0.004% of the amount mobilized

As mentioned in the Offer Document of the Scheme, the Asset Management Company has borne the entire initial issue expenses.

Reliance Banking Fund : The scheme was launched on May 8, 2003.

Actual amount mobilised - Rs. 60.88 crores, Actual Initial issue expenses -0.10% of the amount mobilised

As mentioned in the Offer Document of Scheme, the Asset Management Company has borne the entire initial issue expenses.

Hence, for every Rs. 10 contributed by the investor, the entire Rs. 10 was invested in the Scheme.

Reliance Gilt Securities Fund : The scheme was launched on June 27, 2003

Actual amount mobilised - Rs. 110.80 crores, Actual Initial issue expenses - 0.10% of the amount mobilised.

As disclosed in the offer document of Scheme, all the initial issue expenses were borne by the AMC.

Reliance Monthly Income Plan: The Scheme was launched on December 10, 2003.

Actual amount mobilized - Rs. 700.47 crores, Actual initial issue expenses - 0.5387% of the amount mobilized.

As mentioned in the Offer Document of Scheme, the Asset Management Company has borne the entire initial issue expenses.

Reliance Diversified Power Sector Fund: The scheme was launched on March 29, 2004.


As mentioned in the Offer Document of Reliance Diversified Power Sector Fund, the Asset Management Company has borne the entire initial issue expenses.

Reliance Pharma Fund: The scheme was launched on May 10, 2004.


As mentioned in the Offer Document of the scheme, the Asset Management Company has borne the entire initial issue expenses.

2. Expenses on an ongoing basis

The ongoing fees and expenses of operating the Scheme, is expressed as a percentage of the amount of the Scheme’s average weekly net assets, are estimatedas follows :

Monthly Plan (I – XI), Quarterly Plan (I – III), Half-Yearly Plan (I), Annual Plan – I & III

%

AMC Fees 0.25

Marketing Expenses 0.10

Operational Expenses 0.05

Total 0.40

Annual Plan – II:

%

AMC Fees 0.25

Marketing Expenses 0.30

Operational Expenses 0.10

Total 0.65

The above expenses are estimates only and are subject to change as per actuals.

As per the Regulations, RCAM can charge Investment Management fees @ 1.25% of the average weekly net assets for net assets upto Rs.100 crores and 1%on the balance amount above Rs.100 crores, calculated on a daily basis. However, no AMC fees shall be chargeable on RCAM’s investment in the Scheme.

The Trustee Company, RCTC, shall be entitled to receive a sum computed @ 0.05% of the Unit Capital of all the Schemes of RMF on 1st April each year or asum of Rs.5,00,000/- which ever is lower or such other sum as may be agreed upon between the Settlor (RCL) and the Trustee (RCTC) from time to time in accordancewith the SEBI Regulations or any other authority, from time to time.

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The above estimates have been made in good faith as per the information available to RCAM and are subject to change as per actuals. Expenses on an ongoingbasis will not exceed the following percentage of the weekly average net assets or such maximum limits as may be specified by SEBI Regulations from time to time.

Net Assets Maximum Expenses %Upto Rs.100 crores 2.50%Next Rs. 300 crores 2.25%Next Rs.300 crores 2.00%Balance 1.75%

Provided that such recurring expenses shall be lesser by at least 0.25% of the average net assets outstanding in each financial year in respect of a scheme investingin bonds.

The Fund will strive to reduce the level of these expenses so as to keep them within the maximum limits allowed by SEBI.

The total expenses of the Plan including the investment management and advisory fee shall not exceed the limit stated in Regulation 52(6).

VIII. UNITHOLDER’S RIGHTS AND SERVICES

A. UNITHOLDERS’ RIGHTS

1) Unit holders under the Scheme have a proportionate right in the beneficial ownership of the assets of the Plan of the Scheme in which they have investedin, and to the dividend/ bonus declared, if any, by the Fund under the Plan in which they have invested.

2) The Trustee shall be bound to make such disclosures to the unit holders as are essential in order to keep them informed about any relevant information, especiallythat which may have an adverse bearing on their investments.

3) a) If the Mutual Fund declares a dividend under the Scheme, the unit holders are entitled to receive dividend warrants within 30 days of the date of declarationof the dividend.

b) Unit holders are entitled to receive Redemption cheques within 10 working days from the date of redemption.

4) The appointment of RCAM for the Fund may, with the prior approval of SEBI, be terminated by 75% of the unit holders or by a majority of the Board of Directorsof the Trustee.

5) Unitholders shall also have the following rights:

(i) To inspect all the documents listed under the heading “Documents Available for Inspection”.

ii) To receive an abridged scheme-wise annual report which shall be mailed to all unitholders not later than six months from the date of closure of the relevantaccounting year and the full annual report shall be available for inspection at the head office of the fund and a copy shall be made available to the unitholderson request on payment of nominal fees if any,

iii) Before expiry of one month from the close of each half year that is on 31/3 and 30/9, the Fund shall publish its unaudited financial results in one national Englishdaily newspaper and in a newspaper in the language of the region where the Head Office of the fund is situated. These shall also be displayed on the web site of theReliance Mutual Fund that is www.reliancemutual.com and that of AMFI. Full portfolio in the prescribed format shall also be disclosed either by publishing it in thenewspapers or by sending to the unitholders within one month from the end of each half-year and it shall also be displayed on the web site of mutual fund.

iv) The trustees shall ensure that no change in the fundamental attributes of any scheme or the trust or fees and expenses payable or any other change whichwould modify the scheme and affects the interest of the unitholders, shall be carried out unless, (i) a written communication about the proposed change is sentto each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the languageof the region where the Head Office of the mutual fund is situated; and (ii) the unitholders are given an option to exit at the prevailing Net Asset Value withoutany exit load.

(v) Suspension or restriction of repurchase/ redemption facility under any scheme of the Mutual Fund shall be made applicable only after the approval from theBoard of Directors of the Asset Management Company and the Trustee Company. The approval from the AMC Board and the Trustees giving details ofcircumstances and justification for the proposed action shall also be informed to SEBI in advance.

vi) The process of allotment of units and mailing of account statement will be completed within 30 days from the date of closure of the initial offer period orwithin SEBI prescribed limits.

vii) Policy for Unclaimed Redemption and Dividend Amount.

As per SEBI guidelines, the unclaimed redemption and dividend amounts shall be deployed in call money market or money market instruments only or such otherinstruments, as permitted under Regulations. The investors who claim such amounts during the period of three years from the due date shall be paid at theprevailing Net Asset Value. After a period of three years, this amount will be transferred to a pool account and the investors can claim the amount at NAV prevailingat the end of the third year. The income earned on such funds shall be used for the purpose of investor education.

The Fund will make continuous efforts to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee chargedby RCAM for managing unclaimed amounts shall not exceed 50 basis points.

viii) The Trust Deed shall not be amended without obtaining the prior approval of SEBI, and the unitholders approval would be obtained where it affects theinterest of unitholders.

6) 75% of the unit holders can pass a resolution to wind-up the Scheme

7) The Trustee is obliged to convene a meeting on a requisition of 75% of the unit holders of a Scheme

8) The Trustee is obliged to obtain the consent of the unit holders -

(a) Whenever required to do so by SEBI in the interest of the unit-holders; or

(b) Whenever required to do so on the requisition made by three-fourths of the unit holders of the Scheme; or

(c) When the majority of the Board of Directors of the Trustee decides to wind up or prematurely redeem the units.

B. REGISTER OF UNIT HOLDERS : A Register of Unit holders shall be maintained at the office of RCAM and / or at the office of the Registrars and at suchother places as the Trustee may decide and the register shall contain particulars as follows:

a) The names and addresses of Unit holders

b) The number of units held by each such holder

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C. VOTING RIGHTS OF THE UNIT HOLDERS: Subject to the provisions of the Regulations as amended from time to time, the consent of the unit holders shallbe obtained, entirely at the option of the Trustee, either at the meeting of the unit holders or through postal ballot. Only one Unit holder in respect of each folioor account representing a holding shall vote and he shall have one vote per unit in respect of each resolution to be passed.

D. ACCOUNT STATEMENTS

The Account Statement issued in lieu of the Unit Certificate under the Scheme shall be non-transferable. This Account Statement shall not be construed as aproof of title and is only a computer printed statement indicating the details of transactions under the Scheme during the current financial year and giving theirclosing balance of units for the information of the unitholder. Further, it is not compulsory for the Account Statement to be signed by any Authorised Signatory.The Trustee may issue a Unit Certificate in lieu of the Account Statement in respect of the units held, to such unitholders who request for the same, after receiptof a specific request from the unitholder, at the cost and expense of the unitholder or otherwise, as may be decided from time to time. Further, the Trustee alsoreserves right to issue Transaction Confirmation Slips on an ongoing basis in lieu of Account Statements, indicating the price, and the units debited or creditedto the Account of the unitholder / investor, alongwith the closing balance of his/her/ their Account.

E. DISCLOSURE OF INFORMATION UNDER THE REGULATIONS

The Scheme-wise Annual Report of RMF will be prepared and mailed to all unitholders within six months from the date of the closure of the relevant financialyear. Whenever the report is published in summary form, the full Annual Report will be available for inspection at the Head Office of the Mutual Fund and acopy will be made available on request to the unitholders, from time to time.

The audited and / or unaudited financial extracts will be published through an advertisement in one English daily newspaper with nationwide circulation and ina newspaper published in the language of the region where the Head Office of the Mutual Fund is situated, before the expiry of one month from the close ofeach half year, i.e. 31st March and 30th September or as may required under the Regulations, from time to time. The Fund will publish the scheme’s portfolioin the prescribed format as per SEBI guidelines, before the expiry of one month from the close of each half year, i.e. 31st March and 30th September or as mayrequired under the Regulations, from time to time, in one national English daily and in a newspaper in the language of the region where the H.O. of the Fundis situated or send a copy of the same to all eligible unitholders.

Investors may call our Touchbase customer service center at 3030 1111, callers outside India, please dial 91-040-3030 1111.

F. SERVICES TO UNITHOLDERS

1. Investor Services

It is the endeavour of the Fund to provide consistently high quality service to its investors. This would encompass all interactions by the unitholder / Investorwith the Fund. The Fund will strive to upgrade the quality of services through implementation of technology, through ensuring quality consciousness amongstits service personnel and agencies associated with it. The Fund will endeavour to provide a high degree of convenience for the investors’ dealings with itself.The Fund will strive to constantly increase this level of convenience.

2. Facilitating Enquiries and Transactions

Unitholders’ enquiries and transactions will be entertained at the offices of the AMC / the office of the Registrar in Hyderabad or any of the other DesignatedInvestor Service Centre.

3. Finding Solutions to Problems

The Fund will follow up with the Registrar on complaints and enquiries received from investors. The Fund will strive to speedily resolve investor complaints.

4. Unitholder Grievances Redressal Mechanism : Investor grievances will normally be received at the Corporate Office of the AMC or at the head office of theRegistrar. All grievances received at the AMC, will then be forwarded to the Registrar, if required, for necessary action. The complaints will be closely followedup with the Registrar to ensure timely redressal and prompt investor service.

Mr. Balkrishna Kini is the Investor Relations Officer for the Fund. All related queries should be addressed to him at the following address:

Mr. Balkrishna Kini

Reliance Capital Asset Management Limited.Kamla Mills Compound, Trade World, ‘B’ Wing, 7th Floor, Lower Parel (W),Mumbai - 400 013. Tel: 022-30414813; Fax: 022-30414899Email: [email protected]

5. Correspondence : All correspondence, including change in the name, address, designated bank account number and bank branch, loss of Account Statement/ Unit Certificates, etc. should be addressed to M/s. Karvy Computershare Private Limited - UNIT RMF , 21, Road No. 4, Street No.1, Banjara Hills, Hyderabad500 034. (Tel No. 040- 23394828). For any further information, you may send us an E-mail to : [email protected] or contact Touchbase our customerservice centre at 30301111, callers outside India, Please dial 91-40-30301111

6. Investors' Complaints History

Reliance Mutual Fund mails to its Investors their Account Statement not later than one month from the date of the closure of the Initial Offer period or within five workingdays on an ongoing basis. Since then RMF has received, either directly or through its Registrars, some complaints / requests, the bulk of which pertain to non-receiptof Account Statement or correction of Name or Address etc. RMF works closely with its Registrar to provide prompt service to its Investors and has been able to attendto most standard complaints within normal response times. The status of complaints relating to RMF Schemes received upto March 31, 2005 is given below:

Period Complaints Complaints ComplaintsReceived Redressed Pending

Reliance Growth Fund 2001-2002 39 39 Nil2002-2003 29 29 Nil2003-2004 118 118 Nil

1 April - 31 March, 2005 693 693 Nil

Reliance Vision Fund 2001-2002 23 23 Nil2002-2003 27 27 Nil2003-2004 283 283 Nil

1 April - 31 March, 2005 1033 1033 Nil

Reliance Income Fund 2001-2002 61 61 Nil2002-2003 58 58 Nil2003-2004 203 203 Nil

1 April - 31 March, 2005 392 392 Nil

38

Period Complaints Complaints ComplaintsReceived Redressed Pending

Reliance Liquid Fund 2001-2002 1 1 Nil2002-2003 2 2 Nil2003-2004 26 26 Nil

1 April - 31 March, 2005 110 110 Nil

Reliance Medium Term Fund 2001-2002 101 101 Nil 2002-2003 60 60 Nil2003-2004 51 51 Nil

1 April - 31 March, 2005 322 322 Nil

Reliance Short Term Fund Dec 2002-Mar 2003 Nil Nil Nil2003 -2004 74 74 Nil

1 April - 31 March, 2005 41 41 Nil

Reliance Fixed Term Scheme Mar 2003 Nil Nil Nil2003 -2004 1 1 Nil

1 April - 31 March, 2005 11 11 Nil

Reliance Banking Fund May 03 - 31 March, 2004 1 1 Nil1 April - 31 March, 2005 23 23 Nil

Reliance Gilt Securities Fund June 03 - 31 March, 2004 4 4 Nil1 April - 31 March, 2005 4 4 Nil

Reliance Monthly Income Plan Jan 04 - 31March, 2004 475 475 Nil1 April - 31 March, 2005 815 815 Nil

Reliance Diversified Power Sector Fund March 04 to 31 March, 2005 917 917 Nil

Reliance Pharma Fund May 04 to 31 March, 2005 352 352 Nil

Reliance Floating Rate Fund August 04 to 31 March, 2005 11 11 Nil

Reliance Media & Entertainment Fund September 04 to 31 March, 2005 50 50 Nil

Reliance NRI Equity Fund November 04 to 31 March, 2005 110 110 Nil

Reliance NRI Income Fund November 04 to 31 March, 2005 16 16 Nil

Reliance Index Fund January 05 to 31 March 2005 2 2 Nil

Please note that 41 complaints were received through SEBI from April 1, 2001 to March 31, 2005 and the same were duly redressed.

IX. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND:

The certain tax benefits are available to the Mutual Fund and the Unit holders as mentioned hereinafter.

It may however be noted that the information given hereinafter is only for general information purposes and is based on the advice received by the AMC regardingthe law and practice currently in force in India and the Investors/ Unit holders should be aware that the relevant fiscal rules or their interpretation may change orit may not be acceptable to the tax authorities. As is the case with any interpretation of any law, there can be no guarantee that the tax position or the proposedtax position prevailing at the time of an investment in the Scheme will be accepted by the tax authorities or will continue to accepted by them indefinitely.

Further statements with regard to tax benefits mentioned herein below are mere expressions of opinion and are not representations of the Mutual Fund to induceany investor to acquire units whether directly from the Mutual Fund or indirectly from any other persons by the secondary market operations. In view of theabove, and since the individual nature of tax consequences may differ in each case on its merits and facts, each Investor / Unit holder is advised to consult his/ her or its own professional tax advisor with respect to the specific tax implications arising out of its participation in the Scheme, as a unit holders.

In view of the above, it is advised that the unit holders appropriately consult their investment / tax advisors in this regard.

Tax Benefits to the Mutual Fund : Reliance Mutual Fund is a Mutual Fund registered with the Securities & Exchange Board of India and hence the entire incomeof the Mutual Fund will be exempt from income tax in accordance with the provisions of Section 10(23D) of the Income-tax Act, 1961, (the Act). The Mutual Fundwill receive all income without any deduction of tax at source under the provisions of Section 196(iv) of the Act.

Effective from 9 July 2004, income distribution, if any, made by the Mutual Fund will attract distribution tax under Section 115R of the Act, calculated at the rateof 13.06875 per cent (inclusive of surcharge on income-tax at 2.5 per cent and an additional surcharge by way of education cess at the rate of 2 per cent on theamount of tax inclusive of surcharge) in case income is distributed to individuals and Hindu Undivided Families (HUFs), and calculated at the rate of 20.91 percent (inclusive of surcharge on income-tax at 2.5 per cent and an additional surcharge by way of education cess at the rate of 2 per cent on the amount of taxinclusive of surcharge as per the Act) in case income is distributed to persons other than individuals and HUFs.

Tax Benefits to Unit holders

(i). Income-tax

Tax on Income distribution

Income distributed by the Mutual Fund

All Unit holders

Income received by unit holders in respect of the units of the Mutual Fund, is exempt from tax under Section 10(35) of the Act.

Tax Deduction at Source

All Unit holders

In view of the exemption of income in the hands of the Unit holders, no income tax is deductible at source, on income distribution by the Mutual Fund on orafter April 1, 2003, under the provisions of Sections 194K and 196A of the Act.

39

As per section 196B of the Act, tax is required to be deducted at the rate of 10.455 per cent (inclusive of surcharge on income-tax at the rate of 2.5 per centand an additional surcharge by way of education cess at the rate of 2 per cent on the amount of tax inclusive of surcharge) from income payable in respect ofunits purchased in foreign currency to approved overseas financial organizations.

Tax Treaty: In the case of a non-resident unit holder who is resident of a country with which India has signed a Double Taxation Avoidance Agreement (which is in force)income tax is payable at the rate provided in the Act or at the rate provided in the such agreement, whichever is more beneficial to such non resident unit holder.

Foreign Institutional Investors: Long-term capital gains arising on sale/repurchase of units, held for a period of more than twelve months, would be taxed at therate of 10 per cent under Section 115AD of the Act. The said tax rate would be increased by surcharge of 2.5 per cent surcharge. Further, an additional surchargeof 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Such gains would be calculated without inflation index andcurrency fluctuations.

Short-term capital gains arising on sale/repurchase of units would be taxed at 30 per cent and 10% if such short term capital gains is of the nature referred insection 111A of the Act. The said applicable tax rate would be increased by 2.5 per cent surcharge. Further, an additional surcharge of 2 per cent by way of educationcess would be charged on amount of tax inclusive of surcharge.

Specified overseas financial organizations: As per the provisions of section 115AB of the Act, long-term capital gains arising on sale/repurchase of unitspurchased in foreign currency shall be liable to tax at the rate of 10 per cent. The said tax rate would be increased by 2.5 per cent surcharge. Further, an additionalsurcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. However, such gains shall be computed withoutthe benefit of cost indexation.

Short-term capital gains arising on sale/repurchase of units would be taxed at 40 per cent in case of foreign companies and 30 per cent in case of others. Thesaid tax rate would be increased by applicable surcharge of 10 per cent in case of non-corporate Unit holders, where the total income exceeds Rs.850,000 and2.5 per cent surcharge in case of corporate Unit holders irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way ofeducation cess would be charged on amount of tax inclusive of surcharge.

Other Unit holders: Long-term capital gains arising on sale/repurchase of units, held for a period of more than twelve months, will be chargeable under Section112 of the Act, at the rate of 10 per cent. The said tax would be increased by surcharge of 10 per cent in case of non-corporate Unit holders, where the totalincome exceeds Rs.850,000 and 2.5 per cent surcharge in the case of corporate Unit holders irrespective of the amount of taxable income. Further, an additionalsurcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge.

Short-term capital gains other than referred in section 111A of the Act, arising on sale/repurchase of units would be taxed at the applicable tax rate and the taxwould be increased by surcharge of 10 percent in the case of non-corporate unit holders and at 35 per cent plus 2.5 per cent surcharge in case of corporate Unitholders irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount oftax inclusive of surcharge.

Dividend Stripping

All Unit holders : As per Section 94(7) of the Act, loss arising on sale of Units, which are bought within 3 months prior to the record date (i.e. the date fixedby the Mutual Fund for the purposes of entitlement of the Unit holders to receive the income) and sold within 9 months after the record date, shall be ignoredfor the purpose of computing income chargeable to tax to the extent of exempt income received or receivable on such Units.

Tax Deduction at Source on Capital Gains

Domestic Unit holders: No income tax is deductible at source from income by way of capital gains under the provisions of the Act.

Foreign Institutional Investors : Under Section 196D of the Act, no deduction shall be made from any income by way of capital gains, in respect of transfer ofunits referred to in Section 115AD of the Act.

Specified overseas financial organizations : As per section 196B of the Act, income tax is deductible on long-term capital gains arising on repurchase of unlistedunits purchased in foreign currency, at the rate of 10 per cent. The said tax rate would be increased by applicable surcharge of 2.5 per cent surcharge in caseof corporate Unit holders irrespective of the amount of taxable income. Income tax is deductible on short-term capital gains arising on sale / repurchase of unitsat the rate of 40 per cent plus applicable surcharge at the rate of 2.5 per cent in case of foreign companies. Further, an additional surcharge of 2 per cent byway of education cess would be deducted on amount of tax inclusive of surcharge

Other Non-resident Unit holders : Part II of the First Schedule to the Finance Act, 2004, provides for deduction of tax at source from capital gains at the rateof 20 per cent, where they relate to long-term capital gains arising on sale/ repurchase of units at the marginal rates, viz. at 30 per cent in case of non-corporateholders and at 40 per cent in case of corporate Unit holders. Surcharge on income tax will be levied at 10 per cent on such tax in respect of all Unit holders,other than corporate Unit holders, where the total income exceeds Rs. 850,000 and in respect of all corporate Unit holders at 2.5 per cent of such tax.

Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge.

In accordance with the provisions of Circular no.728 dated October 30, 1995 issued by the Central Board of Direct Taxes (‘CBDT’), in case of a non resident unitholder who is a resident of a country with which India has signed a Double Taxation Avoidance Agreement (which is in force) the tax should be deducted atsource under section 195 of the Act at the rate provided in the Finance Act of the relevant year or the rate provided in the said agreement, whichever is morebeneficial to such non-resident unit holder. However, such a non-resident unit holder will be required to provide appropriate documents to the Fund, to be entitledto a beneficial rate under such agreement.

Exemptions from long-term capital gains

(i) As per the provisions of section 54EC of the Act, long-term capital gains arising on repurchase or sale of unlisted units shall be exempt from tax to the extentsuch capital gains are invested, within a period of six months of such transfer, in acquiring specified bonds and remain so invested as specified.

(ii) As per the provisions of section 54ED of the Act, long-term capital gains arising on repurchase or sale of unlisted units shall be exempt from tax to the extentsuch capital gains are invested, within a period of six months of such transfer, in acquiring the equity shares forming part of a public issue of an Indian publiccompany and remain so invested as specified.

Other Benefits : Investments in Units of the Mutual Fund will rank as an eligible form of investment under Section 11 (5) of the Act read with Rule 17C of theIncome-tax Rules, 1962, for Religious and Charitable Trusts.

(ii). Wealth-tax: Units held under the respective Plans are not treated as assets as defined under Section 2(ea) of the Wealth-tax Act, 1957 and thereof wouldnot liable to wealth-tax.

(iii). Gift-tax: The Gift-tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998. Gifts of Units, purchased under the respective Plans, wouldtherefore, be exempt from gift-tax. Where however the gifts, exceeding Rs. 25,000, made on after 1-9-04, the same is to be included as income in the hands ofdonee under new sub-clause (xiii) inserted in section 2(24) read with new section 56(v) by the Finance (No.2) Act, 2004.

The tax benefits to the Mutual Fund and Unit Holders is in accordance with the prevailing tax laws.

40

EACH INVESTOR IS ADVISED TO CONSULT HIS OR HER OWN TAX CONSULTANT WITH RESPECT TO THE SPECIFIC TAX IMPLICATIONS ARISINGOUT OF HIS OR HER PARTICIPATION IN THE SCHEME.

X. CONDENSED FINANCIAL INFORMATION

Historical Per Unit Statistic Reliance Short Term FundReliance Monthly Reliance Floating

Income Plan Rate Fund

Date of allotment 24-Dec-02 13-Jan-04 2-Sep-04

April 2004 to2003 – 2004 2002 - 2003

April 2004 to2003 – 2004

Sept 2, 2004 toMar. 31, 2005 Mar. 31, 2005 Mar. 31, 2005

NAV At The Beginning of the periodGrowth Plan 10.9158 10.1626 10.0154 10.1318 10.0201 10.0044

Bonus Plan 10.9158 10.1626 N.A N.A N.A 10.0044

Dividend Plan 10.0529 10.0848 N.A N.A N.A 10.0044

Monthly Dividend Plan N.A. N.A. N.A 10.1318 N.A N.A

Quarterly Dividend Plan N.A. N.A. N.A 10.1318 N.A N.A

Net Income Per Unit 4.74 0.82 0.14 1.13 0.218 0.34

Dividends:Monthly Dividend plan 0.099 - N.A 0.320 - 0.146

Quarterly Dividend Plan - - 0.0719 0.241 - -

Dividend (Re Investment) Plan - 0.6673 N.A - - -

Institutional Monthly Dividend Plan 0.127 N.A N.A N.A N.A N.A

Transfer To Reserve (if Any) Nil Nil 6.2205 - - -

NAV at the End of the PeriodGrowth Plan 11.4960 10.9111 10.1626 10.6687 10.1003 10.2963

Monthly Dividend plan N.A. N.A. N.A 10.2073 10.1003 N.A

Quarterly Dividend Plan N.A. N.A. N.A 10.1692 10.1003 N.A

Bonus Plan N.A 10.9111 10.1626 - - N.A

Dividend Re-Investment Plan 10.4818 10.0486 N.A - - N.A

Daily Dividend Plan N.A N.A N.A N.A N.A 10.0447

Weekly Dividend Plan N.A N.A N.A N.A N.A 10.0668

Dividend Plan - 10.0848 - - - 10.0687

Institutional - Dividend N.A N.A. N.A. N.A. N.A. N.A.

Institutional - Growth N.A N.A. N.A. N.A. N.A. N.A.

Returns in (%) 5.36% 7.35% 1.485% 5.63% 0.7823% 2.92%

Benchmark Returns in (%) 4.17% 4.31% 1.31% 2.37% -0.16% 2.48%

Crisil Liquid Crisil MIP Crisil LiquidFund Index Blended Index Fund Index

Net Assets at the end of theperiod (Rs. In Crs.) 52.98 674.33 303.86 250.91 945.33 958.04

Ratio of Recurring expenses toNet Assets (%) 0.52 0.55 0.009 1.79 1.79 0.53

41

Historical Cost Per Unit Statistic Reliance Banking Fund Reliance Gilt Securities Fund

Date of allotment 28-May-03 10-Jul-03

NAV At The Beginning of the periodApril 2004

2003 – 2004April 2004

2003 – 2004to Mar. 31, 2005 to Mar. 31, 2005

Growth Option 18.3378 10.0589 N.A N.A

Bonus Option 18.3378 N.A N.A N.A

Dividend Plan 16.9187 N.A N.A N.A

Long Term Gilt Fund - Growth Option N.A N.A 10.9783 10.0162

Short Term Gilt fund - Growth Option N.A N.A 10.5468 10.0065

Long Term Gilt Fund - Bonus Option N.A N.A 10.9783 10.0162

Short Term Gilt fund - Bonus Option N.A N.A - N.A

Long Term Gilt Fund Dividend Re-investment Option N.A N.A 10.5335 10.0162

Short Term Gilt Fund Dividend Re-investment Option N.A N.A 10.1621 10.0066

Long Term Gilt Plan - AC Plan N.A N.A 10.9783 N.A

Net Income Per Unit 4.51 7.023 0.06 - LTP 4.568 - LTP

(0.74) - STP 6.526 - STP

Dividend:

Long Term Gilt Plan

Dividend Plan N.A. 1.00 N.A N.A.

Dividend (Re Investment) Plan N.A. N.A 0.0943 0.1221

Short Term Gilt Plan

Dividend (Re Investment) Plan N.A. N.A 0.0943 0.3258

Transfer to Reserve (if any) N.A. N.A N.A N.A

NAV at the End of period

Growth Plan 25.3447 18.04 N.A N.A

Bonus Plan 25.3545 18.04 N.A N.A

Dividend Plan 20.3438 16.65 N.A. N.A.

Dividend Re - Investment Option N.A. N.A. N.A N.A

Long Term Gilt Plan - Growth Option N.A. N.A. 11.4206 10.9298

Short Term Gilt Plan - Growth Option N.A N.A 10.5432

Long Term Gilt Plan - Bonus Option N.A N.A N.A 10.9298

Short Term Gilt Plan - Bonus Option N.A N.A - 10.5432

Long Term Plan - Institutional Plan - Growth N.A N.A - N.A

Short Term Plan - Institutional Plan - Growth N.A N.A - N.A

Long Term Gilt Plan

Dividend Re- Investment Option N.A N.A 10.8628 10.4869

Short Term Gilt Plan

Dividend Re- Investment Option N.A N.A N.A 10.1586

Long Term Gilt Plan - AC Plan N.A N.A 11.5563 N.A

Long Term Gilt Plan - DM Plan N.A N.A 11.4256 N.A

Long Term Gilt Plan - IG Plan N.A N.A N.A N.A

Returns in (%) 40.47% 79.32% 4.49% - RGSF - LTP 9.19% - RGSF - LTP1.02% - RGSF - STP 5.36% - RGSF - STP

Benchmark Returns in (%) 23.53% 78.99% (2.21)% - RGSF - LTP 8.01% - RGSF - LTP3.38% - RGSF - STP 4.77% - RGSF - STP

S & P CNX Banks Index Long Term Plan - I Sec Li-BEXShort Term Plan - I Sec Si-BEX

Net Assets at the end of the period (Rs in Crs.) 57.35 41.91 138.57- RGSF- LTP 120.46 - RGSF - LTP7.13 - RGSF- STP 6.61 - RGSF - STP

Ratio of Recurring expenses to Net Assets (%) 2.25 2.25 0.64 - RGSF- LTP 0.465 - RGSF- LTP0.44 - RGSF- STP 0.60 - RGSF- STP

42

Particulars Reliance Fixed Term Scheme

Annual Plan Annual Plan Quarterly Plan Monthly PlanSeries – III Series – IV Series – VII Series – XVII

Date of allotment 27-Mar-04 29-Jul-04 26-Oct-04 20-Dec-04

April 2004 to2003-2004

April 2004 to April 2004 to Dec 20, 2004 toMar. 31, 2005 Mar. 31, 2005 Mar. 31, 2005 Mar. 31, 2005

NAV at the beginning of the period (Rs.) 10.0123 10.0123 10.0029 10.0027 10.0015

Growth Plan NA NA NA NA NA

Bonus Plan NA NA NA NA NA

Annual Dividend Plan NA NA NA NA NA

Half-yearly Dividend Plan NA NA NA NA NA

Quarterly Dividend Plan NA NA NA NA NA

Monthly Dividend Plan NA NA NA NA NA

Dividend Plan NA NA NA NA NA

Dividend (Re-investment) Plan NA NA NA NA NA

Weekly Dividend (Re-investment) Option NA NA NA NA NA

Transfer to Reserve (If Any) NIL NIL NIL NIL NIL

Net Income Per Unit 1.00 0.01 1.00 1.00 0.04

Total Dividends paid per unit during the period * (Rs.) 0.0818

Annual Dividend Plan N.A N.A N.A N.A N.A

Half-yearly Dividend Plan N.A N.A N.A N.A N.A

Quarterly Dividend Plan N.A N.A N.A N.A N.A

Monthly Dividend Plan N.A N.A N.A N.A N.A

Dividend Plan N.A. N.A. N.A. N.A. N.A.

Dividend (Re-investment) Plan N.A N.A N.A N.A N.A

Weekly Dividend (Re-investment) Option N.A N.A N.A N.A N.A

NAV at the end of the period (Rs.)

Growth Plan 10.5387 10.0109 10.3576 10.1037 -

Bonus Plan NA NA NA NA NA

Annual Dividend Plan NA NA NA NA NA

Half-yearly Dividend Plan NA NA NA NA NA

Quarterly Dividend Plan NA NA NA NA NA

Monthly Dividend Plan NA NA NA NA NA

Dividend Plan 10.5387 10.0109 10.3576 10.0134 -

Dividend (Re-investment) Plan NA NA NA NA NA

Weekly Dividend (Re-investment) Option NA NA NA NA NA

Returns in (%) 5.27% NA 3.58% 1.04% NA

Benchmark Returns in (%) NA NA NA NA NA

Net Assets at the end of the period (Rs. Cr.) 152.07 194.49 173.12 334.38 990.79

Ratio of Recurring

Expenses to Net Assets (%) 0.40 0.4 0.30 0.35 0.25

Note : The details of Historical Per Unit Statistics of Reliance Fixed Term Scheme, a close-ended income scheme have been published for only those plans whichare in operation as on 5th January, 2005 (Yet to be redeemed/matured)

43

Historical Cost Per Unit StatisticReliance Diversified Reliance Pharma Fund Reliance Media &Power Sector Fund Entertainment Fund

Date of allotment 30-Apr-04 6-Jun-04 7-Oct-04

NAV At The Beginning of the periodApril 30, 2004 to June 6, 2004 to Oct 7, 2004 to

Mar. 31, 2005 Mar. 31, 2005 Mar. 31, 2005

Growth Option 10.0404 10.0048 10.0080

Bonus Option 10.0404 10.0048 10.0080

Dividend Plan 10.0404 10.0048 10.0080

Net Income Per Unit 0.41 0.45 0.40

Dividend:

Dividend Plan - - -

Transfer to Reserve (if any) - - -


Growth Option 14.3074 12.1514 10.3457

Bonus Option 14.3079 12.1513 10.2461

Dividend Plan 14.3085 12.1515 10.3469

Returns in (%) 42.50% 21.46% 3.37%

Benchmark Returns in (%) 11.33% 13.68% (2.76)%

India Power Index BSE Health Care Index S&P CNX Media &Entertainment Index

Net Assets at the end of the period (Rs in Crs.) 317.15 145.48 20.44

Ratio of Recurring expenses to Net Assets (%) 2.00 2.13 2.26

Historical Cost Per Unit StatisticReliance NRI Reliance NRI Reliance Index Fund Reliance Index Fund

Equity Fund Income Fund – Sensex Plan – Nifty Plan

Date of allotment 16-Nov-04 16-Nov-04 08-Feb-05 08-Feb-05

NAV At The Beginning of the periodNov 16, 2004 to Nov 16, 2004 to Feb 08, 2005 to Feb 08, 2005 to

Mar 31, 2005 Mar 31, 2005 Mar 31, 2005 Mar 31, 2005

Growth Option 10.0295 10.0234 9.9807 9.9827

Bonus Option 10.0295 10.0234 9.9807 9.9827

Dividend Plan 10.0295 10.0234 9.9807 9.9827

Net Income Per Unit 1.15 1.00 0.30 0.29

Dividend:

Dividend Plan - - - -

Transfer to Reserve (if any) - - - -


Growth Option 11.3381 10.1701 9.8005 9.8834

Bonus Option 11.3386 N.A 9.8132 9.8819

Dividend Plan 11.3309 10.1942 9.7936 9.8846

Returns in (%) 11.34% 1.46% (1.81)% (1.17)%

Benchmark Returns in (%) 10.62% 3.22% (0.79)% (0.95)%

BSE 200 Index Composite Bond BSE Index NSE IndexFund Index

Net Assets at the end of the period (Rs in Crs.) 88.88 2.29 0.85 2.15

Ratio of Recurring expenses to Net Assets (%) 2.50 1.53 1.5 1.5

Note: wherever the scheme has not completed one year, absolute returns are given.

All performance calculations are based only on NAV and the payouts to the unitholders. The annualised return is of Growth Plan/ Option.

$ For calculation of compounded annualised returns, the procedure specified in Standard Offer Document is followed.

The Benchmark indices for evaluating the performance of Debt-oriented Schemes were made available w.e.f. June 19, 2002. # No comparable index for Fixed TermScheme.

Return available for Period less than 1 year for the first accounting year (Irrespective of period of existence of the scheme) are given in absolute terms.

44

XI OTHER MATTERS

A. POWER TO MAKE RULES

Subject to the prior approval of SEBI / other applicable regulatory authorities, wherever necessary, RCAM may, from time to time, in consultation with the Trustee,prescribe such terms and make such rules for giving effect to the provisions of the scheme. Further, RCAM may in consultation with the Trustee, add to, alterand / or amend from time to time, all or any of the terms and conditions of the Scheme, and the same will be in line with the then prevalent regulations of SEBI/ other applicable regulatory authorities.

B. POWER TO REMOVE DIFFICULTIES

If any difficulties arise in giving effect to the provisions of this Scheme, RCAM may, in consultation with the Trustee, do anything not inconsistent with suchprovisions, which appear to them to be necessary, desirable or expedient, for the purpose of removing such difficulty.

C. SCHEME TO BE BINDING ON UNITHOLDERS

RCAM may, from time to time, in consultation with the Trustee, add to or otherwise vary or alter all or any of the features, investment options and terms of thisScheme after obtaining the prior approval of SEBI / Other applicable regulatory authorities and / or the Unitholders where necessary, in accordance with the thenprevalent Regulations and the same shall be binding on each Unitholder.

D. BOOKS AND RECORDSThe books and records of the Mutual Fund will be maintained at the office of the Mutual Fund. The fiscal year of the Mutual Fund ends on 31st March in each year.

E. TRANSACTIONS WITH ASSOCIATE COMPANIESThe AMC may, from time to time, for the purpose of conducting its normal business use the services of its Associates. AMC does not have any separate policy forinvestment in securities of the group companies. If at any time such investments are made, it will be done on pure commercial consideration for the benefit of the fund.

As per current regulations no investment will be made in any unlisted security of an associate or group company of the sponsor and in any security issued byway of private placement by an associate or group company of the sponsor. Further, no investment will be made in listed securities of the group company ofthe sponsor, which is in excess of 25% of the net assets of the Scheme of the fund. Investment in group companies will be done only in the interest of the fundand as per the Regulations.

The AMC may from time to time, for the purpose of conducting its normal business, use the services of the Sponsor and the subsidiaries.

The AMC from time to time, for the purpose of conducting its normal business may use the services of the Associates of the Sponsor / AMC, in existence orto be established at a later date, in case such an associate is in a position to provide the requisite services to the AMC. The AMC will conduct its business withthe aforesaid companies on commercial terms and on an arms length basis and at the then prevailing market prices to the extent permitted under the applicable lawsincluding the Regulations, after an evaluation of the competitiveness of the pricing offered by the associate companies and services to be provided by them.

Should the Fund enter into any transaction with / through associates / group companies of Sponsor/ AMC, it shall do so as may be permitted by the Regulationsand will disclose details of such investments or transactions in the manner required by the Regulations.

1. Underwriting obligations with respect to issues of Group/Associate Companies.Reliance Mutual Fund under its entire Scheme, has till date not entered into any underwriting contracts in respect of any public issue made by any of the group/associate companies of the Sponsor.

2. Subscription to issues lead managed by Group/ Associate Companies.No scheme of Reliance Mutual Fund has till date invested in any public issue lead managed by any Group/Associate company of the Sponsor.

3. Brokerage, Commission Paid.

The Mutual Fund has paid the following brokerage to Reliance Share & Stock Brokers Private Limited and IFCI Financial Services Ltd., the associate Companiesof the AMC.

YearBusiness Given Brokerage paid % of Brokerage

(Rs. in lacs) (Rs. in lacs) Commission

2000 - 2001 1,694.86 2.08 0.12

2001 - 2002 5.32 0.005 0.01

2002 - 2003 27,842.63 1.01 0.0036

2003 - 2004 37,249.65 1.50 0.0040

April 1, 2004 to March 31, 2005 NIL NIL NIL

4. Distribution of Units

Mutual Fund has till date not availed any services of associate companies of the Sponsor/AMC for distribution of Units.

5. Investments in Group Companies

The total investment in securities of Group companies under all the Schemes is disclosed below. Most of the equity shares, debentures, etc. were purchased fromthe open secondary market at relevant market prices over a period of time, based on the approved investment strategy

(At cost) (Rs.in lakhs)

Name of Scheme 2001-02 2002-03 2003-04April 1, 2004 toMarch 31, 2005

Reliance Growth Fund (RGF) 26.53 83.85 1889.35 1301.20

Reliance Vision Fund (RVF) 26.53 216.49 12082.71 5545.49

Reliance Income Fund (RIF) NIL NIL NIL 2153.29

Reliance Liquid Fund (RLF) NIL NIL NIL 1047.23

Reliance Medium Term Fund (RMTF) NIL NIL NIL NIL

Reliance Short Term Fund (RSTF) N. A. NIL NIL 6295.93

Reliance Fixed Term Scheme (RFTS) N. A. NIL NIL NIL

Reliance Banking Fund (RBF) N. A. NIL NIL NIL

Reliance Gilt Securities Fund (RGSF) N. A. NIL NIL NIL

45

Name of Scheme 2001-02 2002-03 2003-04April 1, 2004 toMarch 31, 2005

Reliance Monthly Income Plan (RMIP) N. A. NIL NIL 7251.31

Reliance Diversified Power Sector Fund (RDPSF) N.A. N.A. N.A. 3488.32

Reliance Pharma Fund (RPF) N.A. N.A. N.A. NIL

Reliance Floating Rate Fund (RFRF) N.A. N.A. N.A. 5579.55

Reliance Media & Entertainment Fund (RMEF) N.A. N.A. N.A. NIL

Reliance NRI Income Fund (RNIF) N.A. N.A. N.A. NIL

Reliance NRI Equity Fund (RNEF) N.A. N.A. N.A. 873.82

Reliance Index Fund (RInF) N.A. N.A. N.A. 141.47

Reliance Equity Opportunities Fund (REOF) N.A. N.A. N.A. 11,648.96

As on March 31, 2005, the aggregate market value of the holding in group companies of the Sponsor/ AMC by RGF, RIF, RMIP, RSTF, RMTF, RFTS, RBF, RGSF,RPF, RMEF, RNIF were Nil and that of RFRF as on March 31, 2005 is Rs. 1522.09 lakhs, RDPSF is Rs. 1916.60 lakhs, RNEF is Rs. 878.98 lakhs, RLF is Rs. 1044.00 lakhs,RVF is Rs. 3821.65 lakhs, RInF is Rs. 28.77 lakhs and REOF is Rs. 11,382.05 lakhs which constitutes 1.59%, 6.04%, 9.61%, 0.52%, 5.88%, 9.60% and 6.46% of Net Assetof respective schemes as on that day.Disclosure under Regulation 25(11) of SEBI (Mutual Funds) Regulations, 1996

Name of the CompanyInvestment during the period Holding as on

ended 31st March, 2005 31st March, 2005

Type of QuantityAmount

QuantityAmount

securityCost Market Value

Rs in Lacs Rs in Lacs

Reliance Income Fund

HDFC Bank Debt 10 1,121.91 - -

HDFC Ltd. Debt 1,850 18,678.76 50 498.74

ICICI Bank Debt 1,500 1,596.67 - -

IDBI Debt 12,900 17,656.78 - -

IDBI Bank Debt 2,500 2,280.30 - -

IDBI Caps Debt 5 2,500.00 - -

Larsen & Toubro Ltd. Debt 40 4,755.57 - -

Punjab National Bank Debt 150 1,504.30 - -

Reliance Industries Ltd. Debt 200 2,153.29 - -

Grasim Industries Debt 20 1,070.99 - -

Reliance Medium Term FundHDFC Bank Debt 18 2,020.34 - -

HDFC Ltd. Debt 150 1,546.25 100 997.65

ICICI Bank Debt 1,600 83.58 80 426.63

ICICI Bank Fixed Deposit - 2,200.00 - -

State Bank of Indore Fixed Deposit - 100.00 - -

UCO BANK Fixed Deposit - 500.00 - -

Reliance Short Term Fund

Bharti Televentures Debt 25 2,359.96 - -

Ashok Leyland Finance Ltd. Debt 78 5,516.97 - -


HDFC Ltd. Debt 2,650 22,499.03 - -

ICICI Bank Debt 5,500 5,922.90 - -

IDBI Bank Ltd Debt 7,000 7,868.94 - -

IDBI Capital Markets Debt 10 5,000.00 - -

IDBI Debt 40,950 35,323.55 - -

Larsen & Toubro Ltd. Debt 20 2,383.40 - -

Reliance Industries Ltd. Debt 420 6,295.93 - -

Sundaram Finance Debt 1,535 4,899.67 - -

UltraTech Chemco. Debt 10 1,034.70 - -


ICICI Bank Fixed Deposit - 2,100.00 - 2,500.00

Allahbad Bank Fixed Deposit - 1,600.00 - -

IDBI Bank Ltd Fixed Deposit - 5,000.00 - -

KARUR VYSYA BANK Fixed Deposit - 5,000.00 - -

46




QuantityAmount



State Bank of Hyderabad Fixed Deposit - 7,500.00 - -

THE JAMMU & KASHMIR BANK LTD Fixed Deposit - 8,000.00 - -

VIJAYA BANK Fixed Deposit - 2,500.00 - -

Reliance Banking FundICICI Bank Certificate of Deposit 500 481.00 - -

Allahbad Bank Equity 550,000 312.24 - -

ANDHRA BANK Equity 10,612,950 556.91 - -

BANK OF BARODA Equity 125,000 290.71 - -

HDFC Bank Equity 120,000 377.58 75,000 408.19

ICICI Bank Equity 650,000 1,824.49 125,000 491.25

KARUR VYSYA BANK Equity 98,946 335.07 50,000 203.83

Punjab National Bank Equity 665,000 1,907.14 65,000 255.65

THE JAMMU & KASHMIR BANK LTD Equity 86,000 408.84 36,000 131.02

UCO BANK Equity 97,300 11.67 - -

UNION BANK OF INDIA Equity 1,450,000 995.83 - -

VIJAYA BANK Equity 1,900,000 907.90 500,000 321.50

Allahbad Bank Fixed Deposit - 400.00 - -

ICICI Bank Fixed Deposit 0 400.00 - -

STATE BANK OF HYDERABAD Fixed Deposit 0 400.00 - -

Reliance Pharma FundHDFC Debt 500 2,476.40 - -

ICICI Bank Debt 1,000 691.00 - -

Dr Reddys Laboratories Ltd. Equity 150,000 1,120.57 25,000 184.78

Sun Pharmaceutical Industries Ltd. Equity 266,576 967.37 - -

ICICI Bank Fixed Deposit - 500.00 - -

KARNATAKA BANK Fixed Deposit - 500.00 - -

ALLAHABAD BANK Fixed Deposit - 200.00 - -

Reliance Diversified Power Sector FundHDFC Debt 800 3,979.64 - -

Ashok Leyland Debt 215 2,492.70 - -

ICICI Bank Debt 5,000 4,928.79 - -

IDBI Debt 1,500 1,535.28 - -

Reliance Energy Ltd. Equity 553,451 3,488.32 361,657 1,916.60

ICICI Bank Fixed Deposit - 900.00 - -

ALLAHABAD BANK TD Fixed Deposit - 5,000.00 - -

KARNATAKA BANK Fixed Deposit - 500.00 - -


Reliance FTS - MP 3IDBI Debt 1,275 1,277.71 - -

ANDHRA BANK Fixed Deposit 0 1,325.00 - -

THE JAMMU & KASHMIR BANK LTD Fixed Deposit 0 355.00 - -

VIJAYA BANK Fixed Deposit 0 1,325.00 - -

Reliance FTS - MP 4ICICI Bank Certificate of Deposit 1,000 995.49 - -

ICICI Bank Debt 200 199.03 - -

IDBI Debt 1,000 1,001.53 - -

THE JAMMU & KASHMIR BANK LTD Fixed Deposit 0 1,950.00 - -

Reliance FTS - MP 5

Ashok Leyland Finance Ltd. Debt 39 2,566.56 - -

GLOBAL TRADE FINANCE PVT LTD Debt 40 4,000.00 - -

ICICI Bank Debt 500 2,477.03 - -

Allahbad Bank Fixed Deposit 0 2,500.00 - -



47




QuantityAmount



Reliance FTS - MP 6 - -


HDFC Debt 1,000 2,982.12 - -

ICICI Securities & Fin Debt 1,000 4,986.28 - -

IDBI Debt 500 501.08 - -

ICICI Bank Fixed Deposit 0 2,000.00 - -



Reliance FTS - MP 7 - -


HDFC Debt 500 2,489.88 - -

ICICI Securities & Fin Debt 1,000 4,996.49 - -

ICICI Bank Debt 500 2,496.49 - -

IDBI Debt 5,500 2,504.32 - -



IDBI Fixed Deposit 0 2,500.00 - -


Reliance FTS - MP 8


ICICI Bank Debt 3,000 2,978.85 - -

IDBI Debt 2,500 2,528.60 - -



IDBI Fixed Deposit 0 2,500.00 - -


Reliance FTS - MP 9

IDBI Bank Debt 2,500 2,633.06 - -


IDBI Bank Fixed Deposit 0 7,537.34 - -


Reliance FTS - MP 10

IDBI Debt 2,500 2,501.79 - -


Indusind Bank Ltd Fixed Deposit 0 5,000.00 - -

KARUR VYSYSA BANK Fixed Deposit 0 5,000.00 - -

State Bank of Indore Fixed Deposit 0 2,000.00 - -



IDBI Bank Debt 2,500 2,644.59 - -






IDBI Bank Fixed Deposit 0 1,000.00 - -

Indusind Bank Fixed Deposit 0 5,000.00 - -

KARNATAKA BANK Fixed Deposit 0 4,000.00 - -




48




QuantityAmount



Reliance FTS - MP 13Allahbad Bank Fixed Deposit 0 7,500.00 - -

IDBI Bank Fixed Deposit 0 - - -

Indusind Bank Fixed Deposit 0 5,000.00 - -

KARNATAKA BANK Fixed Deposit 0 5,000.00 - -

State Bank of Indore Fixed Deposit 0 - - -


IDBI Bank Debt 1,700 2,509.23 - -


Ashok Leyland Ltd. Debt 400 1,986.94 - -

STERLITE INDUSTRIES INDIA LTD Debt 20 1,012.41 - -

IDBI Bank Debt 2,700 5,467.31 - -

Allahbad Bank Fixed Deposit - 10,000.00 - -

IDBI Bank Fixed Deposit - - - -

Indusind Bank Fixed Deposit - 6,000.00 - -

KARNATAKA BANK Fixed Deposit - 14,200.00 - -

State Bank of Indore Fixed Deposit - - - -


Reliance FTS - MP 15Ashok Leyland Ltd. Debt - - - -

STERLITE INDUSTRIES INDIA LTD Debt - - - -

IDBI Bank Debt - - - -

ELECTROSTEEL CASTNGS LIMITED Debt 25 2,498.94 - -

Allahbad Bank Fixed Deposit - 200.00 - -

IDBI Bank Fixed Deposit - 2,500.00 - -

Indusind Bank Fixed Deposit - - - -





Ashok Leyland Ltd. Debt - - - -

STERLITE INDUSTRIES INDIA LTD Debt 20 1,002.09 - -

IDBI Bank Debt 500 506.95 - -

ICICI Bank Debt 5,000 4,923.80 - -

ELECTROSTEEL CASTNGS LIMITED Debt 50 4,998.16 - -

Allahbad Bank Fixed Deposit - - - -




VIJAYA BANK Fixed Deposit - 2,100.00 - -




Ashok Leyland Ltd. Debt - - - -

STERLITE INDUSTRIES INDIA LTD Debt - - - -

IDBI Bank Debt 1,000 1,008.49 - -

ICICI Bank Debt 7,500 7,394.88 - -

ELECTROSTEEL CASTNGS LIMITED Debt - - - -

Allahbad Bank Fixed Deposit - - - -




49




QuantityAmount



VIJAYA BANK Fixed Deposit - - - -



Reliance FTS - AP 3IDBI Debt 25,000 2,723.62 25,000 2,569.27

THE JAMMU & KASHMIR BANK LTD Fixed Deposit 0 411.77 - -

KARNATAKA BANK Fixed Deposit 0 750.00 - -


Reliance FTS - AP 4

ICICI Debt 10 334.50 - -

IDBI Debt 2,000 2,146.04 - -

Sundaram Finance Ltd. Debt 1,000 1,013.13 1,000 1,006.17

KARNATAKA BANK Fixed Deposit 0 50.00 - -

Reliance MIP

Ashok Leyland Ltd. Debt 200 992.27 - -

HDFC Debt 3,780 34,924.39 - -


ICICI Bank Debt 5,000 6,992.13 1,000,000 1,000.00

IDBI Bank Debt 63,215 35,509.65 - -

IDBI Caps Debt 10 89.39 - -

LARSEN & TOUBRO LIMITED Debt 5 507.85 - -

Reliance Industies Ltd. Debt 270 4,751.49 - -

Sundaram Finance Debt 145 4,755.42 - -


Ashok Leyland Ltd. Equity 518,026 2,364.39 - -

BANK OF BARODA Equity 195,411 465.34 - -

Finolex Inds. Ltd. Equity 123,256 62.35 - -

Hero Honda Equity 589,122 2,624.47 - -

ICICI Bank Equity 725,835 2,156.45 - -

Indian Petrochemical Corporation Ltd. Equity 699,300 775.30 - -

INFOSYS Equity 51,800 2,690.72 - -

ITC Equity 150,346 4,875.75 - -

Maruti Udyog Equity 1,138,300 4,510.12 - -

Nestle India Ltd. Equity 44,083 307.52 - -

Patni Computer Systems Ltd. Equity 0 (0.00) - -

RELIANCE ENERGY LIMITED Equity 141,756 889.90 - -

Reliance Industies Ltd. Equity 300,000 1,323.09 - -

UNION BANK OF INDIA Equity 1,750,000 1,018.41 - -

Wipro Equity 99,000 1,083.58 - -


ICICI Bank Fixed Deposit 0 6,800.00 - 500.00

KARNATAKA BANK LIMITED Fixed Deposit 0 1,500.00 - -

STATE BANK OF HYDERABAD Fixed Deposit 0 4,600.00 - -


Reliance FTS - QP 5


Reliance FTS - QP 6

THE JAMMU & KASHMIR BANK LTD FIXED DEPOSIT - 1,500.00 - -

KARNATAKA BANK FIXED DEPOSIT - 3,000.00 - -

VIJAYA BANK FIXED DEPOSIT - 100.00 - -

Reliance FTS - QP 7

THE JAMMU & KASHMIR BANK LTD Certificate of Deposit 500 493.39 500 494.79

ICICI Bank Debt 4,000 4,297.58 3,000 2,890.39

50




QuantityAmount



INDUS IND BANK Debt 4,000 4,441.06 4,000 3,986.24

THE JAMMU & KASHMIR BANK LTD Debt 250 2,500.00 - -

THE JAMMU & KASHMIR BANK LTD FIXED DEPOSIT - 6,500.00 - 5,000.00

KARNATAKA BANK FIXED DEPOSIT - 4,500.00 - 1,500.00

VIJAYA BANK FIXED DEPOSIT - 100.00 - -

INDUS IND BANK FIXED DEPOSIT - 2,500.00 - 2,500.00

Reliance Floating Rate Fund -ICICI Bank Certificate of Deposit 16,000 15,445.66

ICICI Bank Debt 250 2,497.42

HDFC Debt 4,750 31,972.37 650 6,510.60

IDBI Debt 43,430 40,619.87 150 1,480.14

IDBI Caps Debt 30 296.36 - -

RELIANCE INDUSTRIES LIMITED Debt 400 4,057.47 150 1,522.09

STERLITE INDUSTRIES INDIA LTD Debt 40 3,020.49

Sundaram Finance Debt 1,505.03 1,519.09 35 1,505.17

Allahbad Bank FIXED DEPOSIT 0 20,853.48 - -

ICICI Bank FIXED DEPOSIT 0 12,000.00 - -

KARNATAKA BANK FIXED DEPOSIT 0 7,000.00 - 2,500.00

VIJAYA BANK FIXED DEPOSIT 0 2,500.00 - -

Reliance Media & Ent. Fund

ICICI Bank FIXED DEPOSIT 0 2,000.00 - -

Reliance NRI Equity FundITC Ltd Equity 45,000 528.49 - -

MARUTI UDYOG LTD Equity 300,000 1,199.00 - -

RELIANCE INDUSTRIES LTD Equity 161,000 873.82 161,000 878.98

ICICI Bank FIXED DEPOSIT - 1,700.00 - -

Allahbad Bank FIXED DEPOSIT - 2,100.00 - -


UCO BANK FIXED DEPOSIT - 4,000.00 - -

Reliance NRI Income Fund

ICICI Bank FIXED DEPOSIT 0 200.00 - -

Reliance Liquid Fund-Teasury Plan

ICICI BANK CERTIFICATE OF DEPOSIT 5,450,074,500 137,641.95 1,450.00 11,729.90

ALLAHBAD BANK CERTIFICATE OF DEPOSIT 2,500 24,171.64 7,500.00 7,401.58

UCO BANK CERTIFICATE OF DEPOSIT 2,500 7,065.19 7,500.00 7,078.87

THE JAMMU & KASHMIR BANK LTD CERTIFICATE OF DEPOSIT 7,600 21,502.18 1,350.00 13,125.36

ICICI BANK COMMERCIAL PAPERS 1,000 4,840.24 - -

RAYMOND LTD DEBT 702,600,000 10,500.00 - -

STERLITE INDUSTRIES INDIA LTD DEBT 254 11,535.22 - -

ICICI BANK DEBT 2,905,000,500 34,712.57 - -

IDBI BANK DEBT 3,894,518,775 115,499.42 6,000.00 5,858.15

ELECTROSTEEL CASTNGS LIMITED DEBT 50 4,997.89 - -

SUNDARAM FINANCE DEBT 800 4,881.24 - -

ALLAHBAD BANK FIXED DEPOSIT - 79,700.00 - -

ICICI BANK FIXED DEPOSIT - 79,574.72 - -

IDBI BANK FIXED DEPOSIT - 70,142.77 - -

INDUSIND BANK LTD FIXED DEPOSIT - 26,000.00 - -

KARNATAKA BANK FIXED DEPOSIT - 34,200.00 - 2,500.00

KARUR VYSYA BANK FIXED DEPOSIT - 5,000.00 - -

PUNJAB & NATIONAL BANK FIXED DEPOSIT - 13,000.00 - -

STATE BANK OF INDORE FIXED DEPOSIT - 10,900.00 - -

THE JAMMU & KASHMIR BANK LTD FIXED DEPOSIT - 25,900.00 - -

UCO BANK FIXED DEPOSIT - 47,000.00 - -

VIJAYA Bank FIXED DEPOSIT - 4,200.00 - -

51




QuantityAmount



Reliance Liquid Fund-Cash PlanIDBI BANK FIXED DEPOSIT 0 1,009.05 - -

IDBI BANK DEBT 16 8,034.77 - -

RAYMOND LTD DEBT 251,000,000 3,500.00 - -

STERLITE INDUSTRIES INDIA LTD DEBT 45 4,500.00 - -

Reliance Liquid Fund- Super Cash Plan

ICICI BANK CERTIFICATE OF DEPOSIT 30,000 29,963.31 - -

RAYMOND LTD DEBT 200,000,000 2,000.00 - -

ICICI BANK DEBT 750,005,000 12,501.86 - -

IDBI BANK DEBT 3,802,202,100 40,637.26 - -

Allahbad Bank FIXED DEPOSIT - 1,100.00 - -


State Bank of Indore FIXED DEPOSIT - 5,000.00 - -

ICICI BANK FIXED DEPOSIT 0 15,087.59 - -

IDBI BANK FIXED DEPOSIT 0 12,727.74 - -

Reliance Growth FundHERO HONDA EQUITY 178,929.00 199.23 0.00 0.00

HINDUSTAN ZINC EQUITY 1,426,415.00 1,384.89 1,150,000.00 1,955.00

PATNI COMPUTERS EQUITY 0.00 0.00 0.00 0.00

ICICI BANK LTD EQUITY 368,421.00 1,108.18 0.00 0.00

RELIANCE ENERGY EQUITY 0.00 0.00 0.00 0.00

RELIANCE INDUSTRIES EQUITY 300,000.00 1,301.20 0.00 0.00

GEOMETRIC SOFTWARE SOLUTIONS CO EQUITY 400,000.00 1,960.40 400,000.00 1,862.00

ITC LTD EQUITY 0.00 0.00 0.00 0.00

INDUS IND BANK EQUITY 4,371,266.00 2,408.52 2,500,000.00 1,251.25

WIPRO LIMITED EQUITY 100,000.00 585.01 0.00 0.00

IDBI EQUITY 975,540.00 889.20 975,540.00 899.94

IDBI BANK COMMERCIAL PAPERS 1,500,000.00 1,474.53 0.00 0.00

ASHOK LEYLAND EQUITY 7,490,695.00 1,637.13 7,490,695.00 1,573.05

VIJAYA BANK EQUITY 0.00 0.00 0.00 0.00

ICICI BANK LTD CERTIFICATE OF DEPOSIT 400,000,000.00 3,878.86 0.00 0.00

IDBI BANK DEBT 1,500,000.00 1,610.43 0.00 0.00

PUNJAB NATIONAL BANK EQUITY 475,171.00 1,504.20 0.00 0.00

PUNJAB NATIONAL BANK FIXED DEPOSITS 90,000,000.00 900.00 0.00 0.00

ICICI BANK LTD FIXED DEPOSITS 800,000,000.00 8,000.00 500,000.00 500.00

TATA CHEMICALS EQUITY 1,549,271.00 2,362.79 1,549,271.00 2,347.92

MARUTI UDYOG LTD EQUITY 854,267.00 3,294.60 300,000.00 1,237.35

GRASIM INDUSTRIES LTD EQUITY 142,574.00 1,672.43 0.00 0.00

ALLAHABAD BANK FIXED DEPOSITS 550,000,000.00 5,500.00 0.00 0.00

STATE BANK OF INDORE FIXED DEPOSITS 200,000,000.00 2,000.00 0.00 0.00

THERMAX INDIA LTD PREFERENCE SHARES 0.00 0.00 100,000.00 9.25

BAYER INDIA LTD EQUITY 400,000.00 996.71 0.00 0.00

Reliance Vision FundDR REDDY EQUITY 103,683.00 748.54 0.00 0.00

HERO HONDA EQUITY 203,600.00 901.90 0.00 0.00

HINDUSTAN ZINC EQUITY 0.00 0.00 0.00 0.00

PATNI COMPUTERS EQUITY 616,458.00 1,432.24 0.00 0.00

RELIANCE ENERGY EQUITY 0.00 0.01 0.00 0.00

RELIANCE INDUSTRIES EQUITY 1,085,000.00 5,545.48 700,000.00 3,821.65

IDBI EQUITY 1,000,000.00 716.54 0.00 0.00

STERLITE INDUSTRIES EQUITY 492,847.00 2,664.70 349,357.00 2,498.25

ITC LTD EQUITY 100,000.00 1,034.59 200,000.00 2,687.50

MARUTI UDYOG LTD EQUITY 1,375,000.00 5,896.08 0.00 0.00

52




QuantityAmount




ICICI BANK EQUITY 300,000.00 1,138.59 200,000.00 786.00

ICICI BANK FIXED DEPOSITS 100,000,000.00 997.55 500,000.00 500.00

ICICI BANK DEBT 500,000.00 561.00 0.00 0.00

ICICI BANK CERTIFICATE OF DEPOSIT 450,000,000.00 4,415.90 0.00 0.00

ASHOK LYELAND LIMITED EQUITY 17,609,850.00 3,934.29 12,924,843.00 2,714.22

ASHOK LYELAND LIMITED COMMERCIAL PAPERS 1,000,000.00 988.77 0.00 0.00

PUNJAB NATIONAL BANK EQUITY 354,685.00 900.45 0.00 0.00

STATE BANK OF INDORE FIXED DEPOSITS 350,000,000.00 3,500.00 0.00 0.00

ALLAHABAD BANK FIXED DEPOSITS 10,000,000.00 100.00 0.00 0.00

GRASIM INDUSTRIES LTD EQUITY 246,341.00 2,746.70 0.00 0.00

G. E SHIPPING EQUITY 667,181.00 825.72 0.00 0.00

Reliance Index Fund - Sensex PlanBHARATI TELE VENTURES LTD. EQUITY 3,649.00 7.93 895.00 1.85

DR REDDY EQUITY 564.00 4.15 136.00 1.01

GRASIM INDUSTRIES LTD EQUITY 721.00 9.65 172.00 2.09

HDFC BANK EQUITY 2,114.00 11.97 519.00 2.82

HERO HONDA EQUITY 980.00 5.27 239.00 1.31

ICICI BANK LTD EQUITY 7,230.00 26.40 1773.00 6.97

ITC LTD EQUITY 1,709.00 22.70 422.00 5.67

LARSEN & TOUBRO LIMITED EQUITY 1,101.00 10.80 272.00 2.71

MARUTI UDYOG LTD EQUITY 852.00 3.92 206.00 0.87

RELIANCE ENERGY LIMITED EQUITY 914.00 5.27 229.00 1.21

RELIANCE INDUSTRIES LIMITED EQUITY 7,561.00 40.52 1859.00 10.15


Reliance Index Fund - Nifty Plan

BHARATI TELE VENTURES LTD. EQUITY 20,735.00 44.89 3737.00 7.75

DR REDDY EQUITY 855.00 6.29 150.00 1.11

GRASIM INDUSTRIES LTD EQUITY 1,023.00 13.73 184.00 2.23

HDFC BANK EQUITY 3,205.00 18.30 578.00 3.15

HERO HONDA EQUITY 2,233.00 11.95 403.00 2.21

ICICI BANK LTD EQUITY 8,231.00 30.05 1475.00 5.79

INDIAN PETROCHEMICALS CORPRN. LTD. EQUITY 2,776.00 5.08 500.00 0.81

ITC LTD EQUITY 2,774.00 36.80 499.00 6.70

LARSEN & TOUBRO LIMITED EQUITY 1,453.00 14.15 259.00 2.59

MARUTI UDYOG LTD EQUITY 3,233.00 14.92 579.00 2.44

PUNJAB NATIONAL BANK EQUITY 2,967.00 12.08 529.00 2.08

RELIANCE ENERGY LIMITED EQUITY 2,074.00 11.98 375.00 1.99

RELIANCE INDUSTRIES LIMITED EQUITY 15,611.00 83.70 2824.00 15.42

SUN PHARMACEUTICALS LTD EQUITY 2,074.00 10.32 375.00 1.75

TATA CHEMICALS EQUITY 2,405.00 3.93 436.00 0.66


7. Investments by associates in the Schemes

The value of unit holding by associates and group companies in the schemes of Reliance Mutual Fund as on March 31, 2005 is as follows.

Name of the scheme Total Investments (Rs. In lakhs)

Reliance Income Fund 734.21

Reliance Liquid Fund 52824.73

Reliance Short Term Fund 146.06

Reliance Growth Fund 181.85

Reliance Gilt Securities Fund 22,314.68

Reliance Vision Fund 798.48

Reliance Monthly Income Plan Nil

Reliance Fixed Term Scheme 2592.45

53

Name of the scheme Total Investments (Rs. In lakhs)

Reliance Banking Fund 15.30

Reliance Medium Term Fund Nil

Reliance Diversified Power Sector Fund Nil

Reliance Pharma Fund 30.38

Reliance Floating Rate Fund 91.06

Reliance Media & Entertainment Fund Nil

Reliance NRI Income Fund Nil

Reliance NRI Equity Fund Nil

Reliance Index Fund 19.77

Reliance Equity Opportunities Fund 178.89

F. PROCEDURE AND MANNER OF WINDING UP: As per Regulation 39 (2), a scheme of a mutual fund may be wound up, after repaying the amount due tothe unitholders,-

(a) on the happening of any event which, in the opinion of the trustees, requires the scheme to be wound up; or(b) if seventy five per cent of the unit holders of a scheme pass a resolution that the scheme be wound up; or(c) if the Board so directs in the interest of the unit-holders.Where a Scheme is to be wound up pursuant to the above Regulations, the Trustee shall give notice of the circumstances leading to the winding up of the Scheme:-To SEBI; and in two daily newspapers having circulation all over India and also in a vernacular newspaper circulating at the place where the Mutual Fund is established.The Trustee shall call a meeting of the unit holders to consider and pass necessary resolutions by simple majority of the unit holders present and voting at themeeting for authorising the Trustee or any other person to take steps for winding up the Scheme.i) The Trustee or the person authorised as above, shall dispose of the assets of the Scheme concerned in the best interest of the unit holders of that Scheme.The proceeds of the Sale made in pursuance of the above, shall, in the first instance be utilised towards discharge of such liabilities as are properly due underthe Scheme and after making appropriate provision for meeting the expenses connected with such winding up, the balance shall be paid to the unit holders inproportion to their respective interest in the assets of the Scheme as on the date when the decision for the winding up was taken.ii) On the completion of the winding up, the Trustee shall forward to the Board and the unit holders, a report on the winding up containing particulars such ascircumstances leading to the winding up, the steps taken for disposal of assets of the Fund before winding up, expenses of the Fund for winding up, net assetsavailable for distribution to the unit holders and a certificate from the Auditors of the Scheme.iii) Notwithstanding anything contained herein, the application of the provisions of the Mutual Fund Regulations in respect of disclosures of half-yearly reportsand annual reports shall continue to apply.

After the receipt of the report referred to above under ‘Procedure and Manner of Winding Up’, if SEBI is satisfied that all measures for winding up of the Schemehave been completed, the Scheme shall cease to exist.

XII. PENALTIES AND PENDING LITIGATION

Penalties, pending litigation’s or proceedings, findings of inspection or investigation for which action may have been taken or is in process of being taken byany regulatory authority.1. Cases of penalties awarded by SEBI under the SEBI Act or any of its regulations against the Sponsor of the Mutual Fund or any company associated with theSponsor in any capacity including the AMC, Trustee Company/ Board of Trustees, or any of the directors or key personnel (specifically the Fund Managers) of theAMC and Trustee Company. Cases of penalties awarded by any financial regulatory body, including stock exchanges, for defaults in respect of shareholders, debentureholders and depositors and penalties awarded for any economic offence and violation of any securities laws, against the Sponsors and its associates.

Reliance Mutual Fund:SEBI had issued a show cause notice to Reliance Mutual Fund on February 12, 2003 regarding violation of investment restrictions for exceeding the investmentlimit in unrated debt securities (9.80% UTI Bank Bonds, 2007) beyond the permissible limit of 10% specified under the Regulations in one of the Schemes namelyReliance Medium Term Fund.(a) Reliance Mutual Fund had submitted reply on February 26, 2003 in this regard and also attended the adjudication proceedings held by SEBI on March 11, 2003 anda total fine of Rs.6 lacs was imposed by SEBI on both Reliance Capital Asset Management Limited and Reliance Mutual Fund. The said fine was borne by the AMC.(b) The Clearing Corporation of (I) Ltd. had levied penal charges to Reliance Mutual Fund on account of margin default on 14.03.03 of Rs. 35,996, on 17.03.03of Rs. 26,030, on 6.11.03 of Rs. 5,000 the said charges were borne by the AMC.For details of other penalties besides the above please refer below.2. Pending material litigation proceedings incidental to the business of the Mutual Fund to which the Sponsor of the Mutual Fund or any company associatedwith the Sponsor in any capacity including the AMC, Board of Trustees/ Trustee Company or any of the directors or key personnel is a party.NIL3. Pending criminal cases against the Sponsor or any company associated with the Sponsor in any capacity including the AMC, Board of Trustees/ TrusteeCompany or any of the directors or key personnel.Reliance Capital Limited: There are 44 cases pertaining to equity shares of Reliance Capital Limited pending in various Civil/ Criminal courts and other forums.The total amount involved in the above mentioned cases is approximately Rs.1,63,820/-. Similarly, 2 cases are pending in the High Court of Mumbai amountingto Rs.5,82,41,649/-, in relation to business operations of the company.Reliance Industries Limited: There are 2369 legal cases pertaining to equity shares of Reliance Industries Limited which are under various stages of legalproceedings. The amount involved in the above-mentioned cases is approximately Rs. 1,18,92,773/-

The following criminal proceedings are pending against Reliance Industries Limited, its Directors and Key Personnel, in their capacity as such.

1. Two charge sheets filed under the provisions of Indian Penal Code, 1860 by CBI in 1996 in the court of Additional Chief Metropolitan Magistrate alleging that certainof Letters of Credit (LC’s) had been ante dated in May 1985 relating to proposed import of PTA under OGL, is pending against Reliance Industries Limited and its official.

2. On a Complaint filed by the CBI in March 2002, the Learned Chief Metropolitan Magistrate, Delhi, has taken cognizance of the offences u/s 5(2) alongwith5(4) of the Official Secrets Act, 1923 and Section 120-B of Indian Penal Code, 1860 and has issued summons to Reliance Industries Limited and three of its officialsfor allegedly entering into conspiracy and receiving certain documents alleged to be classified/secret. The Complaint is pending disposal.

54

3. A Complaint filed by Excise Authorities at Ahmedabad against Reliance Industries Limited, some officers and employees of the Company in 1984 is pendingin the court at Ahmedabad for alleged wrongful availment of Credit of Excise Duty in 1983, to the extent of Rs. 1.17 Crores.

4. Deficiency in the systems and operations of the Sponsor of the Mutual Fund or any company associated with the sponsor in any capacity including the AMC or theTrustee Company which SEBI has specifically advised to be disclosed in the offer document, or which has been notified by any other regulatory agency to be disclosed.

Nil5. Enquiry/ adjudication proceedings under the SEBI Act and the Regulations made thereunder, that are in progress against the Sponsor of the Mutual Fund or anycompany associated with the Sponsor in any capacity including the AMC, Board of Trustees/ Trustee Company or any of the directors or key personnel of the AMC.Reliance Industries Limited:1. Securities Exchange Board of India (“SEBI”) has issued a show cause notice under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penaltiesby Adjudication Officer) Rules, 1995 on February 27th, 2002 and initiated adjudicating proceedings to enquire into and adjudge the alleged contravention ofRegulation 7(1) and 7(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 by Reliance Industries Limited. SEBI has issued an Orderdated 29th May, 2002 directing Reliance Industries Limited to pay a penalty of Rs. 4,75,000, which Reliance Industries Limited has paid. Reliance Industries Limitedis contemplating filing an appeal against the Order.2. The Department of Company Affairs has pursuant to the notices dated 18th September 2001 under section 209A of the Companies Act, 1956 commencedinspection of Books of Accounts of Reliance Industries Limited. The Department of Company Affairs has issued three show causes notices dated 30, July 2002to Reliance Industries Limited and its officers in default for certain technical irregularities under the Companies Act, 1956. Reliance Industries Limited and nineof its directors namely, Shri. Mukesh Ambani, Shri. Anil Ambani, Shri. Nikhil Meswani, Shri. Hital Meswani, Shri. R.L.Ambani, Shri. M.L.Bhakta, Shri. Y.P. Trivedi,Shri. T.Ramesh. U. Pai and Shri H.S Kohli have filed compounding applications with respect to the technical irregularities. Regional Director has passed Orders acceptingthe two applications and has directed the applicants to pay compounding fee. The other two compounding applications are expected to be heard shortly.3. On the basis of the complaint filed by Mr. S. Gurumurthy on 20th, January 2002, SEBI has sought clarifications with regard to (i). Issue of NCD’s aggregating to Rs.300crs along with detachable warrants to 34 entities said to be associated with Reliance group and conversion of the said warrants to equity shares; (ii). Issue of NCD’s aggregatingto Rs.300 crs along with non-detachable warrants to Unit Trust of India and conversion of such warrants into shares of Rs. 10 each at a premium of Rs. 391.

Reliance Consultancy Services Limited : Reliance Consultancy Services Limited (RCSL) was an associate of the Sponsor/Trustee Company and was acting asRegistrars and Transfer Agents of the Sponsor. By an order dated October 16, 1996, SEBI suspended the license issued to RCSL for having allegedly issuedduplicate shares of Reliance Industries Limited in contravention of the provisions of the Companies Act, 1956. It was ordered that the period of suspension ofregistration would be operative from February 1, 1997 till July 31, 1997 subject to the condition that from October 17, 1996 till January 31, 1997 RCSL will nottake up any work as a registrar to an issue and share transfer agent of any company other than seven principals who appeared before SEBI. As on the datehereof RCSL is not an associate of the Sponsor/Trustee Company.

XIII. JURISDICTION

Any dispute arising out of this issue shall be subject to the exclusive jurisdiction of the Courts in India.

Statements in this Offer Document are, except where otherwise stated, based on the law, practice currently in force in India, and are subject to changes therein.

XIV. OMNIBUS CLAUSE

Subject to the Mutual Fund Regulations permitting besides the AMC, the Trustee or Sponsor may also absorb expenditures incurred in addition to the limits laiddown under the Regulations.

Further, any amendment/clarification and guidelines in the form of notes or circulars issued from time to time by SEBI for the operation and management of mutualfund shall be applicable.

AMC confirms that there are no deviations from the regulation and no subjective interpretations have been applied to the provisions of the Regulations.

XV. Amendments to the Offer Document

Necessary amendments shall be made to the Offer Document of the Scheme by RCAM, subject (if and as required) to approval of SEBI / Unitholder. Further,RCAM reserves the right to issue operational procedures for implementing marketing / service plans from time to time.

XVI. DOCUMENTS AVAILABLE FOR INSPECTION

Copies of the following documents will be available for inspection by the unitholders between 11.00 a.m. and 1.00 p.m. on any working day at the head officeof the Mutual Fund: -1. Memorandum and Articles of Association each of RCAM and RCTC.2. The Custodial Agreement between RMF and Deutsche Bank A.G.3. Trust Deed and subsequent amendments thereto4. Mutual Fund Registration Certificate from SEBI5. The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.6. Registrar’s consent letter7. Investment Management Agreement.8. Auditor’s consent letter9. Indian Trusts Act, 1882.10. Offer Document of this Scheme and subsequent amendments theretoNotwithstanding anything contained in the Offer Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines thereunder, shallbe applicable.

For and behalf of the Board of Directors ofRELIANCE CAPITAL ASSET MANAGEMENT LIMITED

[Asset Management Company for Reliance Mutual Fund]

Place: Mumbai Amitabh ChaturvediDate : April 20, 2005 Chief Executive Officer

Single

Joint

Any one or survivor(s)

TO BE FILLED IN CAPITAL LETTERS. Pl. use one box for each letter, leaving one box blank between two words

EXISTING FOLIO NO. (For existing unitholders )

Name of Sole / 1st applicant/Minor/Karta of HUF/Non-individual Mr. / Mrs. / Miss / Master / M/s. Date of Birth

Name of Parent/ Guardian In case of Minor Mr. / Mrs. / Miss

Name of 2nd applicant Mr. / Mrs. / Miss Date of Birth

Name of 3rd applicant Mr. / Mrs. / Miss Date of Birth

3rd applicant

1st applicant

2nd applicant

PAN (Mandatory for Investment of Rs.50,000 & Above (Ref. Instruction No. 9) Unique Identification No. (Ref. Inst.No.10)

APPLICANT DETAILS

CONTACT DETAILS

Contact Person for Non-Individual applicants

Tel. No. STD Code Office Residence

Mobile No. E-mail Id.

Fax

Indian Address*

City District State PIN

Foreign Address in respect of NRI / FII applicants

City Country ZIP

D D M M Y Y Y Y

D D M M Y Y Y Y

D D M M Y Y Y Y

Cheque No. Bank BranchDate

Signature & Stamp

Received from:

Trade World, ‘B’ Wing, 7th floor, Kamala Mills Compound, S. B. Marg, Lower Parel (W), Mumbai - 400 013.

Trade World, ‘B’ Wing, 7th floor, Kamala Mills Compound, S. B. Marg, Lower Parel (W), Mumbai - 400 013.

Business

Service

Student

Others

Professional

Retired

Housewife

HUF Others

Partnership firm

AOP/BOI

Trust

Flls

Banks

Society

Company/Body Corporate

Fls

st1 Applicant

nd2 Applicant

rd3 Applicant

Resident Indian NRI

Resident Indian NRI

Resident Indian NRI

Minor Resident Indian NRI

STATUS INDIVIDUAL STATUS NON-INDIVIDUAL

Sale of Units of Rs.10/- per unit for cash at par during the Initial offer period.

Sale of Units of Rs.10/- per unit for cash at par during the Initial offer period

Market Status

For Office Use

*NRI s are requested to furnish their Indian address in this section

Address for Correspondence (for NRI Applicants only)

Growth Option Dividend OptionReliance Fixed Maturity Fund - Series II

Form 60 / 61 attachedORPan Proof Attached



Residence Office

Indian Foreign

(PTO)

Amt. In Rs. (Rupees

Pin Code

Monthly PlanQuarterly Plan

Half-yearly PlanAnnual Plan

SUBSCRIPTION DETAILS

NOMINATION (Please see Instruction No.14)

Nominee's Name : Mr. / Mrs. / Miss /Master Date of Birth

Guardian (In case of Minor Nominee)

Address of Nominee /Guardian

City PIN

DECLARATION & SIGNATURE/S (refer instruction 6)

I/We would like to invest in Reliance Fixed Maturity Fund - Series II subject to terms of the Offer Document and subsequent amendments thereto. I/We have read the instructions and the Offer Document before filling the Application Form. I/We have understood the details of the scheme and I/We have not received nor been induced by any rebate or gifts, directly or indirectly, in making this investment.

I/We confirm that I am/We are Non-Resident of Indian Nationality/Origin and I/We hereby confirm that the funds for subscription have been remitted from abroad through normal banking channels or from funds in my/our Non-Resident External / Ordinary Account/FCNR Account.

APPLICABLE TO NRIs ONLY:

SIGNATURE/S

stSole/ 1 applicant/GuardianAuthorised Signatory

nd2 applicant /Authorised Signatory

rd3 applicantAuthorised Signatory

Place : Date:

BANK ACCOUNT DETAILS (Please Refer Instruction 4)

Bank Name

Branch

Branch Address

Account No.

A/c. Type SB Current NRO NRE

PIN 9 Digit MICR Code

Direct Credit (Facility available with HDFC Bank, HSBC & ICICI Bank)

Cheque to address

D D M M Y Y Y Y

I / We wish to receive the following through e-mail instead of physical document :

Account Statement

Quarterly Newsletter / Fact-sheets

Annual Report

I/We would like to apply for :

I-Pin for Internet based facilities through www.reliancemutual.com

T-Pin for Call center facilities

E-MAIL & OTHER OPTIONS

Specimen Signature of Nominee/Minor Nominee's Guardian

(OPTIONAL)

Drawn on Bank

Branch

Account Type SB Current NRO NRE FCNR

Payable at (City)

Amount Invested Rs.Net Cheque / DD Amount

Rs.Cheque No. Cheque Date

Cheque/DD Amt. In Words(Account Type to be furnished by NRI/FII Applicants)

Your Application Form is complete in all respect, Name, Address & contact details are mentioned in full, signed by all applicants.

Bank Account Details are entered completely and correctly. Permanent Account Number (PAN) of all Applicants is mentioned if the

investment amount is Rs.50,000/- or more. If PAN is not available, pleaseattach Form 60 / 61 in duplicate, with requisite address proof.

Unique Identification Number (UIN) is mentioned (for Bodies Corporate). Appropriate Option is ticked. The Cheque / DD is drawn in favour of “Reliance Fixed Maturity Fund”,

dated and dully signed. Application Number is mentioned on the reverse of the Cheque / DD. Documents as listed alongside are submitted along with the Application

(as applicable to your specific case).

CHECKLIST

The relevant form/s may please be dispatched emailed to me/us

1. Resolution/Authorisation to invest2. List of Authorised Signatories withSpecimen Signatures(s)3. Memorandum & Articles of Association4. Trust Deed5. Bye-Laws6. Partnership Deed7. Overseas Auditor’s Certificate8. Notarised Power of Attorney9. For applications for Rs. 50,000 & above :- Proof of PAN or- Form 60 / 61 alogwith Proof of Address

Documents Companies Trusts SocietiesPartnership

Firms FllsInvestments throughConstituted Atorney

All documents above should be originals / true copies certified by the Director / trustee / Company Secretary / Authorised Signatory / Notary Public.

Growth Option Dividend Option

Repatriable basis Non Repatriable basis (Applicable for NRI applicants only)

FCNR

Please ensure that:

Monthly Plan

Quarterly Plan

Half-yearly Plan

Annual Plan