Skip to main content

Mutual Fund Review: Reliance MIP

 

 

Smart bets on the debt portfolio added zing to Reliance MIP's performance over the past five years

This fund has managed to be a top quartile performer in four years, out of the five of its existence. And while investors may encounter hiccups, it has the ability to bounce back.

Since its launch to 2006, the fund's average portfolio maturity was in line with the category average, barring slight deviations. From 2007 onwards, the fund manager has played opportunistic bets. In the second half of 2007, he began to increase the average maturity from 2.52 years (June 2007) to 7.99 years (March 2008). The category as a whole moved much more gradually. Although, 10-year benchmark yields came down slightly in the second half of 2007, it started moving up from January 2008. With no interest rate cut in the credit policy review of January 2008, yields moved up and the fund got hit in the first quarter that year.

But that did not stop the fund from delivering an enviable 9.57 per cent return (category average: -3.42%) in 2008, which bagged it the No. 4 slot (out of 59). While equity allocation fluctuated between 20 per cent and 6.74 per cent, it was the bets on the debt portfolio that made its day. When the yields began to decline towards the end of 2008, the fund manager increased the average maturity of the portfolio from 1.27 years (June) to 10.24 years (December). The category average maturity increased from 1.48 years to 3.34 years over the same period.

 

The fund's equity allocation fluctuates. Its fund manager also actively churns his portfolio among stocks of all market caps. While earlier it was aggressive on the equity front, now it has a more diversified portfolio. Currently, the fund holds 34 stocks in its equity portfolio with none accounting for more than 1 per cent of the portfolio, while earlier there have been instances of allocation to a single stock going up to around 7 per cent (April 2006).

If one looks at the quarterly performances, there are a lot of ups and downs, as a result of which the dividend too fluctuates. However, a look at the annual performances and returns over a longer period indicate that it evens out. While the amount of dividend declared varies, the fund has managed to declare one in 65 months out of the 77 of its existence.

 

Over the past six months there has been a welcome dip in its expense ratio from 2.02 per cent to 1.61 per cent, below the category average of 1.72 per cent.

Popular posts from this blog

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now