Money & Banking

Reliance MF beats benchmark indices, finds Crisil

| | Updated on: Oct 14, 2014

Nine of the ten equity-focused schemes of Reliance Mutual Fund have outperformed its respective benchmarks, according to Crisil Research. The fund house, which completed 19 years of existence last week, had instituted the first of its kind study on its equity schemes to ascertain their performance.

The Reliance Focused Large Cap Fund, which delivered a return of 9.07 per cent since its inception on March 28, 2006, is the only fund that has underperformed its benchmark Nifty that had given a return of 10.80 per cent till September 30.

In contrast, Reliance Small Cap Fund has beaten the S&P BSE Small Cap index with a wide margin since it was launched in September, 2010. The fund has paid a return of 22 per cent against 1.21 per cent given by the benchmark index.

The asset under management of ten diversified schemes of Reliance Mutual Fund analysed by Crisil was Rs 25,996 crore as of last month and account for 11 per cent of the industry’s open-ended equity AUM. Crisil study includes Reliance Growth Fund and Reliance Vision Fund which have been existence since 1995. An investment of Rs 1 lakh made in these funds would have grown to Rs 66.33 lakh and Rs 38.56 lakh, respectively.

The Reliance Equity Composite Index formed with the 10 schemes has generated higher returns than Crisil-Amfi Equity Fund Performance Index, an industry barometer, and CNX Nifty across various time frames. An amount of Rs 1 lakh invested in RECI would have yielded a return of Rs 22.80 lakh over 15 years compared Rs 5.89 lakh delivered by Nifty.

Sundeep Sikka, President and CEO, Reliance Capital Asset Management said the consistent performance of the fund house is reflected from the fact that investors have managed to reap good returns both during the good and bad phases of the market.

Highlighting the fund house’s focus on retail investors, he said institutional investors account for just 10,000 to 20,000 of the total investor base of five million.

“India took 60 years to become $1.8 trillion economy. I believe the next trillion-dollar can be added in next six year and the subsequent trillion-dollar would come in four years,” he said.

Reliance Mutual Fund plans to launch a new overseas fund to attract Japanese investment into Indian equity market following encouraging response for its recently launched bond fund in that country.

Published on March 12, 2018

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