Reliance NRI Equity Fund is a mutual fund scheme invested in stocks of high growth companies in the BSE top 200 index. The fund has freedom to choose from other BSE listed stocks as well. The fund is popular owing to its above average returns in recent years while the associated risk is average. The fund has sufficient exposure to large as well as small cap companies.
Type or nature of fund
Reliance NRI Equity Fund is an open-ended diversified equity scheme
Investment objective
Reliance NRI Equity Fund aims to generate returns by investing in stocks of large and mid cap companies generally listed within the top 200 companies of BSE. The scheme has the freedom to invest in other stocks listed on the BSE Index. This mutual fund scheme may also invest in large IPOs and has the flexibility to choose from a broad range of companies. The actual returns of the fund however, depend solely on how the fund investments perform in the market and are not guaranteed.
Fund Information
| Inception date | 16th November 2004 |
| CRISIL rank | NA |
| Options | Dividend, Growth and Bonus |
| Schemes |
Reliance NRI Equity Fund – Direct Plan (D) Reliance NRI Equity Fund – Direct Plan (G) Reliance NRI Equity Fund – Direct Plan (B) Reliance NRI Equity Fund (D) Reliance NRI Equity Fund (G) Reliance NRI Equity Fund (B) |
| Entry load | NA |
| Exit load | 1% if mutual fund units are redeemed before completion of 1 year of availing the fund and nil if units are redeemed after completion of 1 year from the date of allocation of the same |
| Minimum investment | Rs.5000 and in multiples of Re.1, thereafter. |
| SIP | Yes. Systematic Investment Plan or SIP is available for Reliance NRI Equity Fund. |
| Product label – Risk and target investors | Moderately high risk is associated with this fund. Investors who are looking for long term capital growth by investing in equity and related instruments should avail this fund. The risk appetite of the customers should be decent since fund performance is based solely on market movement |
| Benchmark | S&P BSE 200 Index |
| SWP | Yes, Available |
| STP | Yes, Available |
| Redemption | Mutual fund units for Reliance NRI Equity Fund can be redeemed by placing a redemption request. Typically it takes around 3-4 days for the fund provider to process a redemption request, the maximum time limit however is 10 days. |
| Taxation | For exact taxation process of mutual funds, customers are advised to consult a tax expert. Returns of a mutual fund scheme are absolutely tax-free provided the fund has been held for at least 1 year or more. Reliance NRI Equity Fund does not qualify for tax benefit under section 80C ELSS. |
Fund manager
Omprakash Cuckian is the fund manager for R* shares banking ETF. Omprakash graduated from Mumbai university where he studied commerce and then completed his AICWA degree. Apart from finance he also enjoys theater and music. Other funds managed by Omprakash include the following:
- R*Shares CNX 100 ETF
- Reliance Index Fund – Nifty Plan
- R*Shares Consumption ETF
- R*Shares Nifty ETF
- R*Shares Dividend Opportunities ETF
- R*Shares Sensex ETF
- R*Shares NV20 ETF
- R*Shares Gold ETF
- Reliance Gold Savings Fund
- Reliance Capital Builder Fund III – Series A
- Reliance Dual Advantage Fixed Tenure Fund
Investment philosophy or strategy
Reliance NRI Equity Fund is based on the following investment strategy and philosophy.
- Generate optimum returns by equity and equity related investments primarily in top 200 companies listed on BSE Index
- Invest in large IPOs to generate substantial returns and higher growth
- Investing in companies that reflect the growth of the Indian economy
- Flexibility to invest in a host of companies in order to maximize returns and minimize risk
Portfolio – Sector / Top holdings
Listed below are the top ten stock holdings of Reliance NRI Equity Fund.
| HOLDING | ALLOCATION(%) | SECTOR | TYPE |
| HDFC Bank Ltd. | 5.91% | Banking | Equity |
| Larsen & Toubro | 5.71% | Engineering & Capital Goods | Equity |
| Reliance | 5.33% | Oil & Gas | Equity |
| Cummins | 4.58% | Engineering & Capital Goods | Equity |
| Infosys Ltd. | 4.31% | Banking | Equity |
| SBI | 4.25% | IT | Equity |
| HCL Tech. Ltd. | 4.25% | IT | Equity |
| Tata Motors | 4.08% | Auto | Equity |
| ICICI Bank | 4.02% | Banking | Equity |
| BPCL | 3.94% | Oil & Gas | Equity |
Fund Performance
| AUM | Rs. 89.01 crores |
| NAV | Rs. 24.988 |
| Portfolio Turover Ratio | 0.0058 |
| Sharpe Ratio | 0.0014 |
Benchmark and Returns Comparison
Following is the benchmark comparison for Reliance NRI Equity Fund as per data from May 29th, 2015.
| Compounded Annualised Returns | Scheme Returns % | Benchmark Returns % |
| Since inception till June 30, 2015 | 19.71 | 15.12 |
| June 30, 2014 to June 30, 2015 | 17.92 | 12.01 |
| June 28, 2013 to June 30, 2014 | 32.13 | 34.45 |
| June 29, 2012 to June 28, 2013 | 37.3133 | 16.70 |
Expert view of the fund
Reliance NRI Equity Fund is one of the most successfully performing funds in this category. The fund invests majorly in stocks of large and mid cap companies in order to spread out risk and enhance returns. This fund is a great buy if you are looking to grow your money and have a decent risk appetite. The fund is most suitable for long term financial goals like child's education, child's marriage, buying a house or for retirement goals. This mutual fund scheme from Reliance is not meant for creation for wealth or for other lifestyle needs. The fund is also available in SIP form wherein investors can invest a minimum amount at a particular frequency and reap benefits without the burden of one-time payment. It is recommended to have not more than two mutual fund instruments in your portfolio at any point of time.
How to apply for Reliance NRI Equity Fund
Reliance NRI Equity Fund can be applied both via online modes. You can visit any of the Reliance Mutual Fund offices for offline application of mutual fund. An application form needs to be filled and submitted along with certain required documents. Similarly, online application can be made by visiting the Reliance Mutual Fund website and logging in to the system. A user id and password are required for this. Existing customers can use their existing credentials while new customers can first generate a login id and password and then apply for the mutual fund scheme of their choice.
Also, customers who wish to learn more about various mutual fund products before investing in any can request for a fund expert who can visit their place and guide them through the whole application process.
