Impact of Demonetization:
· Improvement in Government's fiscal position going forward:
Ø Higher benefits for the Government if lesser currency notes comes back into the system
Ø Increase in Tax Reporting leading to better revenue hence better fiscal
· System Liquidity to increase going forward
· Inflation expected to fall further
· Growth to be positively impacted over medium to long term with near term hiccups
Duration Funds:
In light of the above facts and expectations investors may consider long duration funds (Reliance Dynamic Bond Fund, Reliance Income Fund & Reliance Gilt Securities Fund) as these funds would benefit on further easing of yields over next 12 to 18 months.
'Reliance Dynamic Bond Fund' aims at generating returns even in stable interest rate markets by exploring different trading strategies. The strategy to differentiate Tactical Positions from CORE Positions has paid off and we continue to re-iterate that it seems to be the right strategy going ahead in the current market scenario. Hence we feel that investors with 12 -18 months investment horizon can look at either of the above three duration funds however investors with the preference for active duration management fund along with an investment horizon of 3 years and above can consider investing in Reliance Dynamic Bond fund.
Credit Funds:
We also strongly feel that investors can consider our credit funds - Reliance Corporate Bond Fund and Reliance Regular Savings Fund- Debt from a constant debt allocation perspective due to their potential of delivering returns across all times. In expectations of improving liquidity conditions and money shifting from informal segment to formal banking system, we feel, such a scenario will create demand for investment products such as credit funds especially from accrual perspective. Over next 3 years or more a combination of moderate duration along with healthy accruals can help investors yield better returns.
Performance Update of Some of Reliance Debt Schemes:
| Report as on: 15-Nov-2016 | ||||||||||||||||||
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| As on 31st Oct 2016 | Simple Annualised (Return in %) | Compounded Annualised (Return in %) |
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| Schemes | NAV | Launch Date | YTM | Modified Duration | 1 Day | 3 Days | 1 Week | 2 Weeks | 1 Month | 2 Months | 3 Months | 6 Months | 1 Year | 2 Years | 3 Years | 5 Years | Since Inception | Exit Load |
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| Reliance Corporate Bond Fund - Growth | 12.859 | 26-Jun-14 | 8.52% | 3.18 Years | 31.83 | 31.83 | 42.639 | 21.917 | 11.522 | 14.61 | 12.845 | 14.201 | 11.609 | 10.676 |
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| 11.087 | 1% for 1 Year. NIL thereafter |
| Reliance RSF - Debt - Growth | 22.119 | 8-Jun-05 | 9.17% | 1.86 Years | 22.249 | 22.249 | 28.157 | 15.855 | 10.408 | 12.635 | 11.323 | 11.797 | 10.347 | 9.711 | 10.263 | 9.637 | 7.181 | 1% for 1 Year. NIL thereafter |
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| Duration Funds |
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| Reliance Dynamic Bond Fund - Growth | 22.292 | 15-Nov-04 | 7.38% | 6.56 Years | 98.433 | 98.433 | 91.492 | 45.31 | 18.564 | 18.938 | 14.84 | 18.626 | 13.361 | 11.531 | 11.904 | 11.029 | 6.904 | 1% for 1 Year. NIL thereafter |
| Reliance G Sec Fund - Growth | 21.652 | 22-Aug-08 | 6.98% | 7.07 Years | 130.633 | 130.633 | 113.809 | 60.694 | 26.041 | 23.675 | 18.037 | 22.272 | 15.493 | 13.45 | 13.887 | 12.05 | 9.831 | Nil |
| Reliance Income Fund - G P - Growth | 53.322 | 1-Jan-98 | 7.14% | 6.97 Years | 113.467 | 113.467 | 98.521 | 48.946 | 21.305 | 19.349 | 14.987 | 18.992 | 13.296 | 11.274 | 11.513 | 10.173 | 9.268 | Nil |
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| Ultra Short Term Fund |
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| Reliance Money Manager Fund - Growth | 2188.341 | 20-Mar-07 | 7.40% | 313 Days | 15.089 | 15.089 | 18.001 | 11.741 | 7.535 | 8.743 | 8.237 | 8.713 | 8.606 | 8.603 | 8.809 | 9.098 | 8.44 | Nil |
| Reliance Medium Term Fund - Growth | 33.311 | 14-Sep-00 | 7.61% | 1.32 Years | 18.501 | 18.501 | 22.765 | 14.125 | 8.028 | 9.83 | 9.133 | 9.881 | 9.161 | 9.071 | 9.217 | 9.141 | 7.72 | 0.5% for 7 Days. NIL thereafter. |
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For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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