Reliance Money Precious Metals (RMPM) which is a Reliance Capital company offers Reliance My Gold Plan. You would have seen several advertisements these days indicating that you can get 26% extra gold on this Akshaya Tritiya. How this company is able to give 26% extra gold? Even Gold ETF and Gold Mutual funds are not able to provide returns of what bank FD’s are able provide. If you opt for even 1 year scheme, of this Reliance My Gold Plan, you can get 26% more gold by doing nothing. Is this true? What are the hidden things in this Reliance My Gold Plan?
How Reliance My Gold Plan works?
Reliance Money Precious Metals which is a Reliance Capital company is offering this Reliance My Gold Plan. Your subscriptions would be split into 20 equal tranches and utilized for 20 business days for allotment of gold grams in a month. Gold would be allotted as per daily gold price. E.g. if you are investing Rs 2,000 per month in this gold saving scheme, this scheme would purchase gold for Rs 100 per every business day..
Features of Reliance My Gold Plan
- Gold is purchased at the daily average price which would reduce market fluctuations
- Initial subscription of minimum of Rs 1,000
- Monthly subscription of Rs 1,000 and above.
- Tenure of this gold plan is 1 Year for 15 years with a 1 year interval time
- 24 Karat Gold with 99.5% purity
- Payment through cheque, DD, ECS and Online banking
- Monthly statement of gold purchased would be sent to the subscription holder
- 24 Karat Gold is subject to fulfillment of denomination of 0.5 /1/2/5/8/10/20/50/100 grams of gold coins
- Jeweler option available through empanelled jewelers
- Gold purchased would be deposited with the Trustee
- At the end of the plan, physical gold would be delivered to your door step
What are the negative points in Reliance my Gold Plan?
1) 1.5% Administrative charges: An amount of Rs 1.5% charge is levied on every gold gram allotted. This amount is non refundable.
2) Fulfillment processing charge of 2.5%: This will be charged on submission of fulfillment requests within 1 year of generation of Customer ID. This charge will be calculated as 2.5% of the difference between 12 times the monthly subscription amount and the cumulative subscription amount successfully realized from the customer.
3) Storage charges for not taking delivery: In case the customer doesn’t take delivery of coins/Jewellery during the validity period of the voucher then the customer will have to request for a new fulfillment voucher. The customer shall be liable to pay "Safekeeping Charge" (towards the cost of storage and Insurance) at the rate of 0.50% per annum on the Invoice amount.
Who is offering 26% extra gold this Akshaya Tritiya?
This offer is not for all subscribers. This is specific to Fundsindia subscribers. Reliance capital would contribute 20% and Fundsindia would contribute to 6% of the extra gold amount to be given to subscribers. However, there are a few terms and conditions for this.
- This offer is only for Fundsindia subscribers. You cannot get this offer if you directly opt for this scheme from Reliance My Gold plan
- The offer is open between subscriptions done between 20th April, 2014 to 20th May, 2014 (1 month)
- Offer only for the first SIP amount of Rs 1,000 and above
Also Read: Can you invest in TBZ New Gold Plan Scheme?
Explained this with an example
- Ms. Maithili opted for this scheme Rs 5,000 monthly SIP instalment for 1 year and she would pay pay Rs 60,000 per annum and she would get 26% extra gold on Rs 5,000 first SIP instalment. It would be approx Rs 1,300. Means she would be getting 2.17% extra amount on your overall investment (26% on first instalment or 2.17% would be an overall investment).
Should you opt for Reliance My Gold Plan?
There are several positive points like gold price cost averaging, 24 Karat gold delivery at door step etc. However, whether we should opt or not depends on your requirement. If you are planning for gold jewelry, then several gold saving schemes are being offered (e.g. 12th instalment in a year would be paid by gold jeweler and you need to pay only 11 instalments) where you can benefit up to 8% of your total investment amount. Instead of opting for Reliance my gold plan you can look for such options. However, if you are looking for 24 Karat gold coin purchases for your daughter's marriage through monthly installments, which would be long term, you can opt for Reliance My Gold Plan. Alternatively, you can invest in Gold ETF and Mutual funds which any ways offer SIP method.
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Reliance My Gold Plan Saving scheme
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