Overview of Reliance Long Term Equity Fund (Reliance Mid & Small Cap Fund)
Reliance Long Term Equity Fund, as the name itself suggests, is a long-term mutual fund scheme primarily aimed at invetsment in equity and equity related securities. However, since January 2015, the name of the mutual fund scheme has been changed to Reliance Mid & Small Cap Fund and the benchmark of the fund has been changed from S&P BSE 200 Index to S&P BSE Mid-cap Index.
Type or nature of fund
Reliance Mid & Small Cap Fund is an open-ended diversified equity scheme.
Reliance Mid & Small Cap Fund seeks as primary objective, long-term capital appreciation as well as long-term growth opportunities by investing predominantly in equity, equity related securities and derivatives. The fund aims to invest basically in small and mid cap company stocks. Secondary objective of this mutual fund scheme is to generate consistent returns by investing in debt instruments and other money market securities.
Inception date •27th December 2006 CRISIL rank •4 in Small & Mid Cap Fund categories Options Growth and Investment Plans Schemes
Reliance Mid & Small Cap Fund - Direct Plan (D)
Reliance Mid & Small Cap Fund (D)
Reliance Mid & Small Cap Fund (G)
Reliance Mid & Small Cap Fund - Direct Plan (G)
Magnum Institutional Income - Investment Plan (D)
Reliance Small Cap Fund (Bonus)
Entry load NA Exit load 1% if redeemed before completion of 1 year, NIL if units are redeemed after completion of 1 year from the date of allotment of units Minimum investment Rs.5000and then in multiples of Re.1 and Rs.1000 (plus multiples of Re.1) for exiting customers who wish to make additional investment SIP
Systematic Investment Plan or SIP scheme is available for Reliance Long Term Equity Fund. Following are the investment amounts permissible for this.
Minimum investment amount for investing in SIP for Reliance Regular Savings Plan is listed below:
- Rs.100/- per month then in multiples of Re. 1/- for minimum 60 months
- Rs.500/- per month then in multiples of Re. 1/- for minimum 12 months
- Rs.1000/- per month then in multiples of Re. 1/- for minimum 6 months
- Rs.500/- per quarter then in multiples of Re. 1/- for minimum 12 quarters
- Rs.1500/- per quarter then in multiples of Re. 1/- for minimum 4 quarters
- Rs. 5000/- per year then in multiples of Rs. 500/- for minimum 2 years
Product label – Risk and target investors Moderately High, most suitable for investors who want long-term capital appreciation and are willing to take a higher risk Benchmark S&P BSE Mid Cap Index SWP Yes, Available STP Yes, Available Redemption Reliance Mid & Small Cap mutual fund units can be redeemed by placing a valid redemption request with the fund provider. Depending upon the request submission date, redemption of units is processed within a maximum of 10 working days. However, usually a standard redemption request gets processed in 3-4 days. Taxation Applicable taxes depend upon the type of mutual fund scheme availed and the amount and time of redemption of units. However, it is in the best interest of investors to consult a tax adviser for computation of applicable tax before redemption of units.
Mr. Sunil Singhania has been in the business of tracking and managing equity investments for the past 20 years. He endeavors to offer customers mutual funds that are not only smart investment choices but also offer substantial risk-adjusted returns. Sunil Singhania is a graduate from Narsee Monjee College, Mumbai after which he completed CFA course, USA as well as ICAI for Chartered Accountancy. He also secured an all India rank in the CA course.
Other funds managed by Mr. Sunil Singhania:
- Reliance Growth Fund
- Reliance Small Cap Fund
- Reliance Diversified Power Sector Fund
Investment philosophy or strategy
Following is the philosophy and strategy on which Reliance Long Term Equity or Reliance Mid Small Cap Fund is based.
- Aimed at investing in small cap holdings in order to balance out the risk-return equation
- Concentrated focus on mid and small cap stocks
- Parameters like valuation, earnings and price of stock are taken into account in order to diversify risks and returns in a volatile market
- Since it is an open-ended fund it has the flexibility to be aggresive
Portfolio – Sector / Top 10 holdings
Following are the stcoks in which Reliance Mid Small ap is invested currently.
HOLDING ASSET TYPE ALLOCATION(%) SECTOR UNITED SPIRITS LTD Equity 4.93% Consumer Non-durables SUNDARAM FINANCE Equity 3.69% Finance ABBOTT INDIA LTD Equity 3.35% Pharma HDFC Bank Ltd. Equity 3.10% Banks TUBE INVESTMENTS OF INDIA LTD Equity 2.94% Finance ADITYA BIRLA NUVO LTD Equity 2.90% Conglomerates MULTI COMMODITY EXCHANGE OF INDIA LTD Equity 2.63% Miscellaneous CREDIT ANALYSIS AND RESEARCH LIMITED Equity 2.61% Miscellaneous REDINGTON (INDIA) LTD Equity 2.51% IT GREAVES COTTON LTD Equity 2.50% Engineering & Capital Goods
Risk measures –
•Sharpe Ratio •0.18 •Alpha •NA •Beta •NA •Portfolio Turnover Ratio •NA
•AUM •Rs. 2,303.33 crores •NAV •19.13 •Expenses, expense ratio •NA
Following is the benchmark comparison for Reliance Mid & Small Cap Fund as per data from May 29th, 2015.
Compounded Annualised Returns Scheme Returns % Benchmark Returns % Returns for the last 1 year 10.23 8.09 Returns for the last 3 years 11.59 5.64 Returns for the last 5 years 6.03 4.28 Returns since inception (Inception date October 08, 1995) 7.45 4.88
Absolute Returns for 1, 3 and 5 years are mentioned above.
Expert view of the fund
Reliance Mid & Small Cap Fund invests your money majorly in stocks of mid and small cap companies. Exposure to large cap funds is limited since it only lends stability to the potfolio while actual returns are realized via small and mid cap stocks. This fund is ideal for investors looking for long term capital growth and for those who want to invest in equity and equity related products and securities.
How to apply for Reliance Mid & Small Cap Fund
Application form for Reliance Mid & Small Cap Fund can be filled both online or offline. For online application you will need to visit the Reliance Mutual Fund website wherein existing users can log in using their existing credentials. New users can first generate a log in and then enter the online portal. Online application form can then be filled and submiited.
For offline application of Reliance mutual fund, users need to visit any of the Reliance Mutual Fudn offices and fill up a physical application form. You then need to submit this form along with other rqeuired documents. Services of a mutual fund expert can be availed by calling up Reliance Mutual Funds. This expert will let you know everything about mutual funds and the respective schemes available and will guide you through the whole application process.
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