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How do i add a taxonomy term filter in a rule ?

Recently i was trying to set up a simple rule to add a taxonomy term when a new node is created.The new term will have the title of the node. So i followed the standard procedure of adding a rule ( admin/rules/trigger/add ) and then adding my custom options but when i tried to find the action "add a new term" or something similar to this i came to a dead end.In my "Select an action to add" drop down list there isn't an "add term" option which I was expecting to find.There is no such a rules - action . So how do we solve this ? This is probably stating the obvious, but you need to select the action "Load a vocabulary" before the option "Add a new term" will become available".It's as simple as that.