As an investor, if you are doubtful that your fund is not performing well and whether to stick to it or not, then you must know that what is underperforming currently will not underperform in the long-term. Every fund has its tough time, so does the Reliance Multi Cap Fund has currently. But the fund will be going to perform well in the future. With an AUM of Rs 9,687 Cr as on May 31, 2018, the fund was earlier known as the Reliance Equity Opportunities Fund but has changed its name due to re-categorization rules as stated by SEBI. So, if you are looking for investing in the fund, the details are discussed as under:
A Brief About Reliance Multi Cap Fund:
An open-ended equity scheme, the fund invests in the diversified sectors under full market capitalization. The expense ratio of the fund is 1.98% as on May 31, 2018. The primary objective of the Reliance Multi-Cap is to seek the long-term capital appreciation by investing in the equity and equity-linked derivatives of the companies that fall in the large-cap, mid-cap, and small-cap. The secondary aim of the fund is to generate regular income by investing a part of the fund in debt and money-market securities.
Past Performance Analysis:
Reliance Multi Cap fund growth has provided the returns of 18.04% since its inception. The fund is following the S&P BSE 500 (TRI) as its benchmark and S&P BSE Sensex (TRI) as an additional benchmark. The fund was launched in the year 2005, and its performance has been tumbled in the year 2015 and 2016. Though the fund has gained back in the year 2017 and also outperformed its category and benchmark by providing the returns of 40.87%.
The trailing returns of the fund in the past three, five and seven years were 7.20%, 17.75%, and 14.53%, respectively. The calendar year returns of the fund for the year 2014 were 59.67%, for 2015 were 0.51% and for 2016 were -6.67%.
Mr. Sailesh Raj Bhan manages the fund since 2005. He has an experience of over 19 years in the fund management and equity research. He is Deputy CIO of the Reliance Mutual Fund and working with AMC with more than a decade.
Mr. Bhan follows the free-flowing approach of selecting the stocks. He chooses the companies on the basis of their potential and opportunities arising in it. Investing in the niche themes, he believes these emerging businesses have upside potential of performance.
Reliance Multi-Cap Fund G has the average market capitalization of Rs 32,341.72 Cr as on June 21, 2018. Out of this, the 34.42% is invested in giant companies, 15.48% in large-cap companies, 35.97% in mid-cap companies and 14.13% in small-cap companies.
The fund invests in diversified sectors, which includes finance and banking, services, engineering, construction, automobile, healthcare, etc. The fund has approximately 99% in equity stocks and 1% in debt instruments.
It holds the funds of various companies, out of which the top companies include State Bank of India, Indian Hotels, Divi’s Laboratories, Infosys, and Larsen & Toubro Constructions.
The NAV of Reliance Multi-Cap Fund is Rs 89.8646 as on June 21, 2018. The fund offers the long-term capital appreciation to the investors who have the appetite of tolerating moderately high-risk. The fund offers the options of growth and dividend both under regular and direct plans.
You may invest in the fund with a minimum amount of Rs 5,000. You may also invest in the fund under SIP mode, with a minimum amount of Rs 100 per month without any entry load.