Religare Tax Plan mutual fund has outperformed its category average since inception.
FUND FACTS
INCEPTION: December 2006
CATEGORY: Equity Tax Planning
TYPE: Open-ended
AUM: Rs 108.14 crore
BENCHMARK INDEX: BSE 100
Religare Tax Plan: How has the fund performed?
NAV:Rs 15.86 (G) | Rs 10.62 (Div)
MIN INVESTMENT:Rs 500
MIN SIP AMOUNT:Rs 500
EXPENSE RATIO:2.48%
EXIT LOAD:Nil
WHO SHOULD INVEST IN IT?
The fund's ability to provide downside protection accompanied with decent returns during markets rallies help investors over the long run. The fund invests across market capitalisation and sectors and spreads its assets over 20-50 stocks without being overly diversified. Despite an allocation of over 60% to mid and small caps, its fall of around 50% in 2008 was 6% below the category average and 5% less than the BSE 100 without a high cash exposure.
Despite the fund's strategy for 2008 resulting in lower than expected returns in 2009, it stands vindicated in the current market downturn. The risk of investing in this fund lies in its aggressive sector bets.
MEET THE FUND MANAGER
V Subramaniam
Fund manager V Subramaniam has increased the number of stocks in the portfolio. Allocation to a single stock is normally restricted to 6%. He plays it safe by betting on quality of balance sheet and strength of underlying cash flows.
(Data and analysis of the fund have been sourced from Value Research)
