Reliance Small Cap Fund

Overview of Reliance Small Cap Mutual Fund

• Type or nature of fund

Reliance Small Cap fund is an open-ended equity mutual fund scheme

• Investment objective

Reliance Small Cap mutual fund is primarily invested into generating long-term capital gains by investing majorly into equity and equity related instruments of small cap stocks. However, the secondary objective of the scheme is to generate regular returns through investment in debt and money-market instruments.

• Fund Information

Inception date	•21st September 2010
CRISIL rank	•3
Options	Dividend and Growth
Schemes	Reliance Small Cap Fund Growth Reliance Small Cap Fund Bonus
Entry load	NIL
Exit load	2% if redeemed before completion of 1 year, 1% if redeemed after completion of 1 year but before completion of 2 years from date of allotment of units
Minimum investment	Rs.5000 and then in multiples of Re.1 and Rs.1000 (plus multiples of Re.1) for additional investment (for existing customers)
SIP	Yes. Following is the break-up for various plans. Minimum investment amount for investing: 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, best-suited for investors who want long-term capital appreciation
Benchmark (about the benchmark)	S&P BSE Small cap Index
SWP	Yes, Available
STP	Yes, Available
Redemption	Reliance Small Cap Mutual Fund redemption proceeds are dispatched within 10 working days after receiving a valid redemption request from customer. Fund provider is required by SEBI, to pay a penal rate of interest of 15% per annum if the redemption is not processed within the stipulated time frame
Taxation	Depending upon the type of fund scheme availed and the time period for which fund is held, taxation varies for various mutual fund schemes. Capital gains tax and Dividend Deduction Tax are the two taxes that generally apply to equity mutual fund returns

• Fund manager

The Fund Manager for Reliance Growth Fund is Mr. Sunil Singhania who 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. Sunil 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.

Apart from Reliance Small Cap Fund, Sunil is Fund Manager to the following funds too.

Reliance Growth Mutual Fund

Reliance Mid and Small Cap Mutual Fund

Reliance Diversified Sector Mutual Fund

• Investment philosophy or strategy

Following is the philosophy and strategy at which Reliance Small Cap Fund works.

• The fund aims to generate considerable returns by investing investors' capital into small cap stocks which have market capitalization in between the highest and the lowest market capitalization of companies on S&P BSE Small Cap Index at the time of investing funds
• Small cap stocks offer promise of considerable growth in the future as well as lower relative valuation
• Reliance Small Cap fund aims to recognize good growth companies with reasonable size and quality management and invest in them to reap returns for investors
• The fund investment strategy involves prudent risk management measures like diversification across sectors to generate superior returns and mitigate risk
• Portfolio – Sector / Top 10 holdings

Given below is the stock names and the sector break-up of stocks that Reliance Small Cal Fund is currently invested in.

Name	Sector	Class	Allocation %
Vindhya Telelin	Telecommunication	Equity	4.083.293.022.952.782.532.412.38
Navin Fluorine	Chemicals	Equity	3.5
Kalpataru Power	Engineering & Capital Goods	Equity	3.29
Orient Cement	Cement & Construction	Equity	3.02
HDFC Bank	Banking & Financial Services	Equity	2.95
Intellect Design	Information Technology	Equity	2.78
Arvind	Manufacturing	Equity	2.53
LG Balakrishnan	Engineering & Capital Goods	Equity	2.41
Cyient	Information Technology	Equity	2.38
Atul	Chemicals	Equity	2.35

• Risk measures –

The risk measures listed below have been calculated by taking rolling return for a 3 year period from 31/08/2012 to 31/08/2015

•Sharpe Ratio	•0.21
•Alpha	•NA
•Beta	•NA
•Portfolio Turnover Ratio	•0.82

• Fund Performance

•AUM	•Rs.1762.83 Crores
•NAV	•Rs.24.10 as of 1st September, 2015
•Expenses, expense ratio	•2.49%

Benchmark Comparison

Following is the benchmark comparison for Reliance Growth Fund as per data from May 29th, 2015.

Absolute Returns for 1, 3 and 5 years are mentioned above.

Expert view of the fund

Reliance Small Cap Mutual Fund is a scheme that identifies small cap companies and invests in those to yield substantial returns as well as low risk to investors. The fund has exposure to chemicals, software, industrial products and pharmaceuticals. Experts believe that the fund has huge potential to lure and then reward investors. Considering that the fund has been a clear out-performer for the past 3 years, it is good to invest in this fund. Investors who are looking to grow their capital can explore Reliance Small Cap fund for superior gains that are derived as a result of hedging of risk and diversification of investment capital.

How to apply for Reliance Small Cap Mutual Fund

There are two basic ways of applying for Reliance Small Cap Mutual Fund. First is the traditional way of physically visiting any of the Reliance Mutual Fund branches and filling out and submitting an application form along with the required documents. Second is to apply online using either the online platforms of the company or the mobile platforms like mobile website and mobile application. Alternatively, you can call up Reliance Mutual Funds and request for an adviser to take you through the details of various mutual fund schemes after which you can easily zero down on the scheme that suits your financial goals the best.