Skip to main content

Reliance Top 200 Fund

 
Reliance Top 200 Fund
Category: Large Cap Analyst
Rating: Silver
Investment Style: Large Growth
Investment Process:
Reliance Top 200 Fund invests in companies that have high/rising ROEs and scalable business models.
Fund Manager: Sailesh Raj Bhan


Reliance Top 200 Fund is a predominantly large-cap Fund. However, its investment approach allows the manager to invest up to 30% of assets in mid-cap stocks. While the manager stays clear of investing in small-caps, the allocation to midcap stocks has hovered in the range of 10%-20% for a long time now. As of July 2017, large caps accounted for almost 88% of the portfolio. Bhan is benchmark-aware here, but takes reasonable sector deviations based on his top-down view. He prefers large-cap companies or companies with large-cap capabilities while investing. Hence, he scouts for businesses which are established, have a track record, or have dominance in their area. The companies qualifying this criterion are usually leaders in their respective sectors.

The idea here is to contain risk in the portfolio. Currently, significant portion of the portfolio is biased towards domestic growth recovery as Bhan believes that it is an important theme to capitalise on over the long haul. Having said that, the fund may struggle if this theme doesn't play out as per Bhan's expectation; the year 2016 is a case in point. But 2016 did provide him attractive investment opportunities and a chance to rejig the portfolio to make it future ready. While the core structure of the portfolio was not disturbed; the manager bought into NBFCs, healthcare, and insurance companies given their attractive valuations. From August 2011 (when the new strategy came in effect) through July 2017, the fund has had an impressive showing, outscoring its benchmark index and 86% of category peers.

Despite its underperformance in calendar years 2013 and 2016, it boasts an impressive track record over a three-year and five-year period. Over a 3-year period, it clocked an annualised return of 16.1%, outperforming its benchmark index, the S&P BSE 200 (11.7%), and 85% of peers. Similarly, over a 5-year period, it returned 19.8% annualised, beating the benchmark index (15.7%) and 86% of the category peers.

After a difficult 2011, the fund made a comeback in 2012 and had its best year ever in a peer-relative sense, beating 96% of the competition. Bhan's select small/mid-cap bets and investments in benchmark heavyweights (ICICI Bank and HDFC Bank) paid off handsomely. In 2013, the fund returned 4% and underperformed both the index and the category average.

A combination of factors--

Bhan's relatively higher exposure to small/mid-caps, his underweight position in the defensive sectors, and investment in few select stocks--led to the underwhelming result. While the fund had a good run in 2014 and 2015, it struggled in 2016 as demonetisation and Bhan's bet on domestic growth didn't pan out as expected. However, it bounced back this year and has so far (till July 2017) outperformed 89% of competition.





Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
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