The Hindu Business Line : Reliance Vision: Invest

Investors looking for an aggressively managed, large-cap-biased fund can consider Reliance Vision. With a solid annualised return of 55 per cent over the past five years, Reliance Vision is among the top five funds in the performance chart for the same period. It is also one of the few funds with a track record of over 10 years.

Suitability: While Reliance Vision can be termed a large-cap fund based on its current stock holding, the fund has, in the past, capitalised on momentum in the mid- and small-cap space as well. What distinguishes Reliance Vision from other large-cap funds such as HDFC Equity or Franklin Bluechip is its aggressive management style. This factor also enhances its risk profile. The fund does not shy away from taking short-term opportunistic calls and churns its portfolio more frequently than the above-mentioned peers. While the fund qualifies to form part of any core portfolio, investors not comfortable with dynamic moves can consider this as a diversifying option.

Investments can be made in a phased manner to gain from any market weakness. As the fund style is aggressive, a dividend option is favoured for conservative investors, as it allows one to periodically cash out accumulated gains.

Performance: Reliance Vision has returned 62 per cent over the past year, comfortably outpacing its benchmark, the BSE-100. It has also consistently beaten the benchmark on a rolling-return basis over the past year. In months when the BSE-100 had negative returns, the fund's decline was higher than the former. This clearly reflects its high-risk, high-return profile.

The fund continues to be bullish on capital goods and has maximum allocation to the sector. The top 10 stocks in the portfolio account for 44 per cent of the asset size. Reliance Vision has remained highly focused in number of stocks held and has a portfolio of about 30.

Another fund from the same house, Reliance Growth, a mid-cap fund, faced difficulties with swelling asset size and had to close subscriptions for some time before re-opening. Reliance Vision is, however, unlikely to face such difficulties if it continues with its present large-cap bias.

Fund facts: Reliance Vision was launched in 1995 and is now managed by Mr Ashwani Kumar. It charges an entry load of 2.25 per cent and no exit load.

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