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Impact of Demonetization

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

 

 

 

As on 31st Oct 2016

Simple Annualised (Return in %)

Compounded Annualised (Return in %)

 

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

Accrual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Duration Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ultra Short Term Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short Term Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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