No tags yet.
Stock markets are volatile and because of that equity schemes are not performing well. Investors are looking for options in which they can invest to beat this market volatility. Well, if you are one of them then you are in luck as in this post we are going to discuss one such great option, which is Reliance Multi Cap Fund. Let's see what this scheme holds:-
Scheme Description
This scheme was launched on Mar 28, 2005, and was previously known as Reliance Equity Opportunities Fund. The fund follows the objective of providing high capital appreciation and long-term growth by investing in equity and equity-related securities. This scheme invests in a mix of large, mid, and small-cap equities, thus the risk associated with the fund is also low. As of now it has 48.59% of total investments in large-caps, 36.54% in mid-caps, and 14.87% in small-cap stocks. As for the sector allocation, the scheme has major investments in finance, services, engineering, construction, healthcare, and the automobile sector. The top holdings of this scheme are State Bank of India, Indian Hotels, Divi's laboratories, Infosys, Axis Bank, and HDFC Bank. For a detailed allocation analysis of this fund, you can visit MySIPonline.
Currently, Reliance Multi Cap Fund NAV is Rs 86.63 (as on Jul 16, 2018) and is managing an asset size of Rs 9,270 crore (as on Jun 30, 2018). As for the maintenance charges, the scheme has an expense ratio of 2.18% (as on Jun 30, 2018) which will be charged annually. There are no entry load charges, but an exit load of 1% will be charged if you redeem your investments before 365 days. Mr. Sailesh Raj Bhan is the current fund manager of the scheme and is managing this scheme since 2005. He has done MBA in finance and holds around 19 years of experience in equity research and fund management.
Performance Analysis
The scheme has been a consistent performer for most of its life. The short-term returns can get affected by the market volatility, but the long-term returns it provides are always better than the benchmark and category. As on Jul 16, 2018, the returns that are given by Reliance Multi Cap Fund in 1, 3, 5, and 10 years are 0.59%, 4.23%, 16.71%, and 17.08%, respectively and the returns given by the benchmark (NIFTY 500 TRI) in the respective time period are 8.02%, 10.26%, 16.27%, and 13.02%. Here we can see that the scheme is unable to beat the benchmark in 1 and 3 years trailing returns, but has shown considerable improvement in the 5 and 10 years of returns.
Who can Invest?
Reliance Multi Cap Fund is a great option for investors who have moderate risk appetite and are looking for an investment horizon of 5-7 years. This is also a great choice for investors who are new to the mutual fund market and want to invest in equity-type schemes, as with this fund they can experience the behavior of stocks from all three market caps.
Now you know that what Reliance Multi Cap Fund is and what are the benefits you can experience if you invest in this scheme. Although, you must consult your financial adviser before making the final decision. If you have any query about this scheme or if you want to make an investment in this scheme then you can visit MySIPonline, a one-stop solution to all your mutual fund investment needs.