A Beginners Guide to Reliance Multi cap Fund
After a long stretch of underperformance, the equity market is again gaining balance. Almost all the market capitalizations are gaining stability after almost a year of volatility. Now, this is the perfect time to make an investment in multi-caps, as currently all the market caps are dealing at lower levels and will soon start recovering, and with investment in multi-cap schemes, you can enjoy the growth of all three market capitalization. Today, we are going to discuss a multi-cap scheme which has shown optimal performance over the years and is a great choice to get the full advantage of this market volatility.
A Brief Introduction
Reliance Multi-cap Fund was launched on Mar 28, 2005, and previously known as Reliance Equity Opportunities Fund. The scheme invests in a blend of stocks from different market caps and chooses those companies which are top players in the equity market and holds great chances of future growth. As of now, the scheme has 48.59% investment in large caps, 36.54% investment in mid-caps, and 14.87% in small-cap companies and the sectors in which it has major investments are finance, services, engineering, construction, and healthcare. The top equity holdings of the scheme are State Bank of India (8.39%), Indian Hotels (5.35%), Divi's laboratories (3.61%), Infosys (3.53%), and Axis Bank (3.47%). For seeing other companies that are part of its portfolio, you can visit MySIPonline.
Key Parameters
Reliance Multi Cap Fund NAV as on Jul 25, 2018, is Rs 89.72 and the assets under management as recorded on Jun 30, 2018, are worth Rs 9,270 crores. The scheme can be added to your portfolio with a minimum investment of Rs 5000, and thereafter you can start a SIP for as low as Rs 100. As for the additional charges, there is an expense ratio of 2.18% (as on Jun 30, 2018), and you will be liable to pay an exit load of 1% if you redeem your investments before 365 days. The fund is currently being managed by Mr. Sailesh Raj Bhan, who holds an MBA in finance and have around 19 years of experience in equity research and fund management. Now, let's see that how this scheme has performed over the years.
Performance Analysis
Reliance Multi Cap Fund has shown an optimal growth since its inception and has helped a lot of investors in creating considerable wealth in just 7-10 years. The returns that the scheme has given in the past 5, 7, and 10 years are 18.09%, 13.23%, and 16.41%, respectively (as on Jul 25, 2018). With these returns, the scheme has beaten its benchmark at all instances, which has provided returns of 17.16%, 12.19%, and 11.89% in the same time period.
Why Choose this Fund?
Reliance Multi Cap Fund is a great option for beating market volatility. By diversifying the funds across different market caps it provides your investments with an extra level of security. How? Well, let's say the mid-cap stocks are not performing well, and showing loss, at that time the stocks from other market caps will provide a support to the fund and vice versa. With the help of this, it can provide stable returns even when other equity funds are not performing well.
So, this is all the major information that you are going to need if you are planning on investing in Reliance Multi Cap Fund. It has made its name among the top performers several times and is expected to follow the same trend in future. If you have any queries regarding investment in this scheme, then you can visit MySIPonline, a one-stop solution to all your mutual fund-related queries.