The Hindu Business Line : Reliance Vision Fund: Invest

Investments can be considered in Reliance Vision Fund, based on its long-term track record. The fund's three- and five-year returns are over 50 per cent and it finds a place among the top quartile of diversified funds.

In the same period, it significantly outpaced the benchmark BSE-100 and marginally beat the HDFC Equity Fund, which has a similar investment style of marginal exposure to mid-cap stocks.

Suitability: Reliance Vision is now predominantly invested in large-cap stocks, though it has some exposures to mid- and small-cap stocks too.

However, it has a flexible investment style and in the past year, its exposure to stocks with market capitalisation of less than Rs 5,000 crore did rise to as high as 25 per cent.

In comparison to some of its peers, such as HDFC Equity, Reliance Vision churns its portfolio more actively.

Investors who prefer to have marginal exposure to mid- and small-cap stocks to boost their returns can consider investment in this fund and it can also be part of your core portfolio.

The fund has had a track record of declaring high dividends, paying out close to 100 per cent for the past three years.

Performance: The NAV has grown by 52 per cent the past year. Over the same time-frame it outpaced the benchmark BSE-100 by 8 percentage points.

The recovery in mid-cap stocks helped the fund outpace peers such as HDFC Equity. Despite the presence of mid-cap stocks in the portfolio, the fund's SIP returns trailed lump-sum investments for the past five years.

Profile: Reliance Vision has a very compact portfolio and hold, on an average, close to 30 stocks. Capital goods, software, pharmaceuticals and petroleum products have been the preferred choices over the past year.

The top ten stocks account for 45 per cent of the assets. Stock-specific exposures were restricted to 8 per cent each of the portfolio.

The fund had a significant exposure to auto stocks, which have under-performed the past year, possibly dragging down the fund's returns.

Fund facts: Reliance Vision is one of the few funds with a 10-year track record. The fund was launched in October 1995 and Mr Ashwani Kumar manages it. The minimum one-time investment is Rs 5,000 and the entry load is 2.25 per cent.

Suresh Parthasarathy

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