The Hindu Business Line : Reliance Growth Fund: Invest

Investments in Reliance Growth Fund can be considered based on its track record since inception. The fund has delivered a return of 34 per cent during the time-frame, making it an ideal option for investment in the midcap space. Apart from this, the fund has a good dividend payout record since the start of the 2003 bull run.

The fund’s five-year returns have outpaced the benchmark BSE 100 by a huge margin and Magnum Global, another star performer from this category, marginally.

Suitability: The fund is suitable even for conservative investors, given its dividend track record. The risk-averse have the option to pull out their profit by way of dividend.

The only major concern over the fund is its swelling asset size. The dearth of quality stocks in the mid-cap space has forced the fund to freeze the fresh inflow of asset for a couple of times during the past few years.

Performance: Reliance Growth Fund’s NAV has grown by 78 per cent for the past year and it bettered the benchmark BSE 100 by twenty percentage points.

The rally over the past few months has pushed up overall returns for midcap funds. When midcap stocks trailed the large cap ones July 2005-06, Reliance Growth managed to return 22 per cent, marginally trailed the benchmark BSE 100 and trailed the Sensex by 20 percentage points, reflecting on the risk of the fund. SIP returns for one and three years trailed the lumpsum investment substantially.

Portfolio overview: In the latest portfolio, 70 per cent of the asset was invested in 38 stocks and 17 per cent in other equities with less than per cent weight in the portfolio. Reliance Growth has 28 sectors and the top three secto rs account for 28 per cent of the portfolio. For about a year now, the fund appears bullish on the ferrous metals sector.

Fund facts: The fund was launched in 1995 and Mr Sunil Singhania manages it. The NAV per unit is Rs 318.40.

More Stories on : Mutual Funds | Recommendation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page