Reliance top 200 fund

Overview

• Launched in 2007, Reliance Top 200 is a retail plan designed by the proficient team of fund managers of Reliance Mutual Fund. It is a three-star rated scheme and is among the top-performing funds in India. It falls under the equity fund class and is subdivided into large-cap funds. It is best suited for investors who are seeking long-term capital appreciation with minimum risk exposure. Here we have provided a synopsis for this strategy which would assist you in making a wise decision for selecting this strategy for your portfolio.
• Fund has 98.11% investment in Indian stocks of which 73.43% is in large-cap stocks, 8.48% is in mid-cap stocks, 2.95% in small-cap stocks.

Suitable For:

Investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for the possibility of moderate losses in their investments.

Reliance Large Cap Fund G: Investment Details

• The primary investment objective of this scheme is to generate long-term capital appreciation by investing in the equity and equity-related instruments of the companies. These corporates are the ones whose market capitalization is within the range of the highest & lowest market cap of the BSE 200 Index. In addition to this, it also aims to provide consistent returns by investing in debt and money market securities. It is an open-ended growth scheme whose performance is measured against S&P BSE 200. It provides high flexibility along with many other benefits to the investors.
• Reliance Top 200 Fund requires a minimum amount of Rs.100 as SIP to initiate investing. Furthermore, making a lump sum investment requires a minimum amount of Rs.5000 only. To cater to the divergent needs of the investors, this plan has a well-designed portfolio that confirms higher returns. NAV of Reliance Top 200 Fund as of November 01, 2016, amounted to Rs. 25.6638. This scheme has maintained a recognized position in the market due to its profit-oriented nature of investing.
• Reliance Mutual Fund has recategorized its popular Reliance Top 200 Fund to a large-cap fund and renamed it as Reliance Large Cap Fund (with effect from April 28, 2018). The fund will now focus on the top 100 stocks by market capitalization.
• Launched way back in 2007, as Reliance Equity Advantage Fund, the fund had a broader investment mandate where it could invest in stocks across market caps, although with a large-cap bias. However, effective August 23, 2012, the fund was renamed as Reliance Top 200 Fund, while its investment universe was restricted to stocks present in the S&P BSE 200 index or the top 200 stocks by market capitalization.
• By categorizing to large-cap, the fund has further trimmed its investment universe to the top 100 stocks. SEBI’s classification demands that large-cap funds should hold a minimum 80% investment in equity & equity-related instruments of large-cap companies. Large-cap stocks are defined as the top 100 companies by market capitalization.
• The fund managers, Mr. Sailesh Raj Bhan and Mr. Ashwani Kumar had been with the fund since its inception. However, in May 2018, the co-fund manager Mr. Ashwani Kumar gave way to Mr. Kinjal Desai to co-manage the fund.
• Seeing the upsurge in its performance in 2017, the fund quickly attracted many investors, and also saw a dramatic increase in its AUM, from about Rs 3,500 crore to over Rs 10,000 crore within a year.
• It is noteworthy that the fund now has a new mandate and will share a common investment objective with its large-cap peers. Will the fund managers be able to use the revised mandate to the advantage of the fund or will it lose its charm? Only time will tell.
• In this brief analysis, we take a close look at the features and performance of Reliance Large Cap Fund, which was more driven by its broader investment mandate followed earlier.

Investment Objective of Reliance Large Cap Fund

The primary investment objective of Reliance Large Cap Fund is to seek to generate long-term capital appreciation by investing predominantly into equity and equity-related instruments of large-cap companies. The secondary objective is to generate consistent returns by investing in debt, money market securities, REITs, and InvITs.

From April 28, 2018, the new investment allocation of Reliance Large Cap Fund –

• 80% - 100% to stocks of large-cap companies as defined by the regulator and prepared by AMFI

• 0% - 20% to other equity and equity-related instruments

• 0% - 20% to debt and money market instruments

• 0% - 10% to units of REIT/InvITs

• 0% - 10% to Non-convertible preference shares

Reliance Top 200 Fund: Performance Review

• This mutual fund investment plan has been ranked third under the Large Cap category by CRISIL for the quarter ended in June 2016. It has offered tremendous returns since its inception which averaged 10.74% until now. Moreover, it's three- and five-year investment yields 21.4 and 16.6 percent annualized returns respectively. Furthermore, as per the records, the absolute annual returns for the years 2012 and 2014 were 40.3 and 54.6 percent.
• If you are willing to make an informed investment in this plan, you must calculate the returns of this scheme before investing with the use of the SIP Calculator. You should be able to conclude how much wealth you can create with this fund. As per the past performance and many other parameters, our fund analysts are of the view that Reliance 200 is among the must-have schemes for a portfolio.

Reliance Large Cap Growth Plan: Portfolio Analysis

• The asset under management of this scheme is Rs. 2,388 crores as of September 30, 2016. This shows that it manages the capital of a large section of investors and is fulfilling its goals. It has made investments of around 98.3 percent in equity stocks of companies and has put the remaining asset in the debt instruments. The diversification of funds by this scheme has been made in a way that the risk exposure has been reduced up to a maximum extent, and it is offering greater returns so far.
• The sector allocation graph shows the allotment of the funds in varied industries. They include financial, energy, automobile, engineering, and FMCG. Furthermore, the holdings of this plan also include the top entities of the country viz., State Bank of India, Reliance Industries, HDFC Bank, Larsen & Toubro, ICICI Bank, ITC, Castrol India, and many more. Hence, one can conclude here that with the association of the best-performing companies, this mutual fund program can yield extraordinary returns.
• Nippon India Top 200 Fund is an equity-linked, moderately high-risk fund that invests in companies across all small, mid, and large caps. The aim is to generate long-term capital growth for investors and also to balance out the risk associated with the fund. The fund aims to generate alpha while owning the best of the BSE Sensex stocks.
• Reliance Large Cap Fund has a track record of over a decade. The year-on-year performance comparison of the fund vis-à-vis its benchmark – S&P BSE 200 -TRI Index shows that the fund has outperformed the benchmark in only 5 out of the last 10 calendar years. The bulk of the alpha was generated in CY 2012 and CY 2014. In 2014, it outperformed the benchmark by over 15 percentage points. But this euphoria was short-lived. In gloomy and uncertain market conditions of 2015 and 2016, the fund was found struggling. Nevertheless, in CY 2017 the fund capitalized on the up move with a 3 percentage point gain over the benchmark.

Investment objective

Reliance Large Cap Fund is primarily focused on generating long-term capital appreciation via investments in equity and equity-related securities of companies whose market capitalization is between the highest and the lowest market capitalization of the S&P BSE 200 Index. The scheme also invests in debt instruments and money market instruments to generate consistent returns and mitigate the overall risk associated with the fund.

About SIP:

Following is the break-up for the minimum amount applicable for Reliance Large Cap Fund SIP -

Rs.100/- per month and then in multiples of Re.1/- for a minimum of 60 months

Rs.500/- per month and then in multiples of Re.1/- for a minimum of 12 months

Rs.1000/- per month and then in multiples of Re.1/- for a minimum of 6 months

Rs.500/- per quarter and then in multiples of Re.1/- for a minimum of 12 quarters

Rs.1500/- per quarter and then in multiples of Re.1/- for a minimum of 4 quarters

Rs. 5000/- per year and in multiples of Rs. 500/- thereafter for a minimum of 2 years

Product label – Risk and target investors              

Moderately high risk. Best suited for investors who are looking for long-term capital growth and who are looking to achieve this goal via investment in equity and equity-related securities.

Points to Remember While Selecting Reliance Best Mutual Funds

Consistency and Volatility: It is essential to check the consistency and volatility of the fund to ensure the safety and growth of the amount invested. The fund needs to be consistent in delivering the expected outcomes under different market conditions. The returns of the Reliance best mutual fund can fluctuate according to the market conditions but will mostly be above the benchmark and category’s average.

Fund Manager: The fund manager plays a key role in molding the outcomes and other features of a mutual fund. It is essential to check the history and mindset of the fund manager before investing. Reliance Mutual Fund has a team of highly experienced and qualified fund managers. The performance of the funds managed by an individual manager can be checked under different market conditions to know more about his/her investment style before investing.

Risk/Reward Ratio: The equity schemes possess higher risk while the debt schemes are conservative. It is important to check whether the risk involved is in line with the returns it has provided in the past. The risk to reward ratio can be checked by comparing the Sharpe and Sortino ratios with that of the benchmark and category’s average.

Portfolio Structure: The portfolio of any mutual fund can be easily accessed online which is regularly released by the AMC. Smart investors can check the prospect of the portfolio by deeply analyzing the stocks or securities present in the portfolio. The instruments can give a slight idea of the outcome in the future to allow investors to make better investment-related decisions.

Conclusion

• This fund takes a large-cap tilt but retains a higher mid-cap exposure compared to many of its peers. The mid-cap picks are mostly among the leaders in their segment and display strong capabilities to scale up. The fund takes a conservative approach, and does not deviate too much against its benchmark index in terms of sector exposure. While it is more aligned with the benchmark and does not dabble in stocks outside the benchmark index, it is not an index hugger.
• The portfolio is very compact, which is an outcome of its risk positioning. It also allows the fund to retain healthy exposure in its top picks but ensures exposure to mid-caps does not exceed 3% of the portfolio. With fund managers of proven capabilities at the helm, this fund is a good pick.

Questions and Answers

What is the Suitability of Reliance Large Cap Fund?

Large-cap-oriented funds are better poised to handle market volatility vis-à-vis mid-and-small caps. Stable businesses, greater market share, quality of management, and sustainability prospects are factors that seem convincing to take exposure to large-caps at the current level.

Why Invest in the Best Reliance Mutual Fund Scheme?

Reliance Mutual Fund is a top-notch company in the business of asset management. It has fulfilled the financial goals of the majority of investors and enhanced the financial strength of millions of successful investors. The best funds of Reliance Mutual Fund can allow investors to enjoy superior long-term wealth through supreme management strategies. The AMC is committed to providing the optimum customer support and best schemes in the market. A majority of the best Reliance Mutual Fund schemes have been toppers in India. Investors can either research on their own or can choose the schemes recommended by our financial experts to save time and effort.