Skip to main content

Reliance Equity Opportunities Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Reliance Equity Opportunities is a good fit for investors willing to 'go anywhere' within the equity universe, to earn market-beating returns. Yes, Reliance Equity Opportunities is a 'go anywhere' multi-cap fund that can straddle across various market-cap segments and various themes in which it detects opportunities.

With a compounded annual return of 20.2 per cent since its launch in 2005, the fund beat its benchmark BSE 100 return of 14.7 per cent convincingly. The fund's ability to generate superior returns against the benchmark has moved up in the last 5 years. For instance, it managed 9.5 percentage points more than its benchmark in the last 5 years.

Suitability


Reliance Equity Opportunities is a good fit for a risk-taking investor's core portfolio. As stated earlier, the fund can 'go anywhere' to seek returns. This can increase the volatility in its performance. Hence, if you cannot stomach risks, this fund may not be apt for you. For instance, in the 2008 downturn, the fund fell as much as 56 per cent even as the bellwether index Sensex slid 52 per cent.

While the fund did bounce back in style the following year, the fall can panic you into stopping SIPs; an act that should be avoided. Just to give you an idea of the kind of returns that an SIP in the fund can deliver, especially if you hold through down markets, sample this: Over the last five years beginning February 2008, an SIP in the fund would have delivered an IRR of close to 20 per cent (11 per cent if invested through lump sum).


The benchmark BSE 100 delivered just 9 per cent through SIPs.


Another Opportunity fund, from the UTI stable, delivered about 15 per cent through SIPs in the same period. Reliance Equity Opportunities is therefore a ripe candidate to buy through the SIP route.

Performance


Over a five-year period, Reliance Equity Opportunities' rolling one-year returns was 19 per cent. This is higher than UTI Opportunities' 16.8 percent as well as diversified fund Quantum Long Term Equity's 17.4 percent. But the high return has come with volatility.


The fund's standard deviation, that is returns deviating from its average, is quite high when compared with the other two funds mentioned above. That means, the fund can not only manage higher than the average but also fall below the average. This is why the fund is best invested through the SIP route. This would help average the ups and downs.

 

That said, the fund has been adept in beating its benchmark; managing better returns 80 per cent of the times on the above rolling return basis. It also generated negative returns fewer times compared with its benchmark.

Portfolio


Reliance Equity Opportunities has an interesting mix of large- and mid-cap stocks. Almost half of it assets are invested in stocks with a market-cap of over Rs 10,000 crore. This strategy is in stark contrast to UTI Opportunities, which showcases over 85 per cent of its holdings in the over-Rs 10,000 crore market-cap segment. The former's portfolio clearly suggests a more aggressive strategy.


The fund seeks opportunities, often, in unexpected quarters. For instance, until 2011, media sector seemed lack luster. But the fund began to up exposure to this sector a year ago. Stocks such as Hathaway Cable and Datacom delivered as much as 86 per cent in the last one year following regulatory changes.

It also added small-cap stocks such as Hinduja Ventures and Hindustan Media Ventures; that have delivered well in the last couple of quarters. Another unlikely heavyweight is the retail sector with focused bets on stocks such as Trent and Shopper's Stop. These stocks too, contributed significant gains to the portfolio. Evidently, the fund has been picking these sectors ahead of the regulatory changes implemented in the respectively spaces last year.
The fund is managed by Sailesh Raj Bhan.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

Mutual Fund Review: Reliance Regular Savings Equity

    Despite high churn, Reliance Regular Savings Equity has managed to fetch good returns   In its short history, this one has made its mark. Though its annual and trailing returns are amazing, the fund started off on a lousy note (last two quarters of 2005). It managed to impress in 2006 and was turning out to be pretty average in 2007, till Omprakash Kuckian took over in November 2007 and wasted no time in changing the complexion of the portfolio. Exposure to Construction shot up to 28 per cent with almost 21 per cent cornered by Pratibha Industries and Madhucon Projects . Exposure to Engineering was yanked up (18.50%) while Financial Services lost its prime slot (dropped to 6.69%) and Auto was dumped. That quarter (December 2007), he delivered 54.66 per cent (category average: 25.70%).   When the market collapsed in 2008, thankfully the fund did not plummet abysmally. But even its high cash allocations could not cushion the fall which hovered around the category average. ...
Read more
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