In a new series on mutual funds, we look at Reliance Growth, the largest and one of the oldest diversified equity funds.
FUND FACTS
WHAT IT COSTS
HOW HAS THE FUND PERFORMED?
Reliance Growth has consistently outperformed the category and its benchmark in the past five years.
WHERE DOES THE FUND INVEST?
Portfolio holdings as on 31 July 2009
WHO SHOULD INVEST IN IT?
One would have expected a fund with a preference for smaller companies to crash in the carnage of 2008. But high levels of cash, derivatives and a highly diversified portfolio kept it in good shape. Over the past few years, an individual stock has rarely accounted for more than 5% of the fund’s portfolio. Since April 2005, on an average, 17% of the portfolio has been allocated to stocks that account for less than 1% of the portfolio. The fund manager maintains a fine balance between churning and holding long-term bets. Investors looking for a mid-cap offering that doesn’t compromise on risk should consider this option.
MEET THE FUND MANAGER
Sunil Singhania has been doing a good job. In the past 13 years, Reliance Growth has underperformed the category average only two times. “We don’t take undue risks,” he says.
