Reliance Mutual Fund started in the year 1995 and has since then been growing by introducing new funds every now and then. The sponsor is Reliance Capital Ltd. The registrar of this mutual fund house is Karvy Computershare Pvt Ltd.

Best Reliance Mutual Funds to Invest in 2018

Below are some of the top performing mutual funds by Reliance Mutual Fund.

Reliance Small Cap Fund

This is easily one of the best Reliance mutual funds in 2018 – and not just 2018 – it has been a top-performing mutual fund for many years now.

This fund is a small-cap fund where the majority of the investment is made in small-cap stocks. This fund is very aggressive and is suitable for investors looking to take a risk.

Investment in this fund should be made for a long duration i.e investment should be made for more than 3 years.

More than 90% investment is made in equity and a minor part is kept as cash for liquidity purpose.

Approx 50% invested in small-cap stocks, followed by 40% in mid-cap and remaining in large-cap stocks. It has diversified its investment in various sectors with the majority in consumer goods, Industrial Manufacturing and Financial Services. 3 year and 5 year returns are higher than the benchmark, which shows that its good for long-term investment.

Past performance shows that the fund has been performing really well. Also, the fund manager is making right choices of stocks to invest in. This fund is recommended for investment with a long-term horizon provided the investor is ready to take a risk.

This small-cap fund is easily one of the best Reliance mutual funds due to its repeated good performance.

NAV of Reliance Small Cap Fund: Rs. 46.6539

Risk High
Expense Ratio 1.16 %
Fund size 6371 Cr
1 year Return 20.82 %
3 year Return 24.12 %
5 year Return 36.74 %

Top Holdings:

Company name Sector
Navin Flourine Internation Ltd Chemicals
Deepak Nitrite Ltd Chemicals
CBLO (CCIL) Current Assets
Zydus Wellness Ltd Consumer Goods
VIP Industries Ltd Consumer Goods
Cyient Ltd IT
RBL Bank Financial Services

Reliance Tax Saver Fund

This is an aggressive fund in the tax-saver schemes, taking on greater exposure to small- and mid-caps compared to its competitor schemes.

It favors taking concentrated bets in its top scrips and is also confident in deviating substantially from its benchmark index in both sector and scrip positions.

Reliance Taxsaver Fund’s drift approach allows it to produce higher alpha than many competitor schemes.

However, this also results in much greater volatility in performance, with the scheme doing far better in a rising market than during a flat or bear market. The fund is suitable for investors confident with taking on higher risk in search of greater return during a market rally.

The fund manager follows a bottoms scrip picking approach to his portfolio and identifies stocks at attractive valuations with high growth potential. About half of the portfolio holding of Reliance Tax Saver Fund is invested in small and midcap stocks.

The fund manager has reduced his exposure to mid caps and invested more in large caps.

In the ELSS category, this fund remains one of the best performers by reliance mutual fund.

NAV of Reliance Tax Saver Fund: Rs. 59.4422

Risk Moderately high
Expense Ratio 1.21 %
Fund size 10758 Cr
1 year Return 0.88 %
3 year Return 7.39 %
5 year Return 19.49 %

Top Holdings:

Company Sector Cap Size
Tata Motors Ltd Automobile Large Cap
ICICI Bank Ltd Financial Services Large Cap
State Bank of India Financial Services Large Cap
Tata Steel Ltd Metals Large Cap
Ambuja Cements Ltd Cements Large Cap

Reliance Equity Hybrid Fund

This mutual fund was earlier known as Reliance Regular Savings Fund.

 The Reliance Equity Hybrid Direct Fund Balanced scheme is for investors looking for long-term capital appreciation with moderate levels of risk.

As such the fund is a right investment option for investors in the moderate risk category, who are planning for retirement or have long-term financial goals.

The fund managers aim to generate significant alphas through active sector management.

NAV of Reliance Equity Hybrid Fund: Rs. 57.509

Risk Moderately high
Expense Ratio 0.84 %
Fund size 11334 Cr
1 year Return 12.27 %
3 year Return 12.71 %
5 year Return 17.60 %

Top Holdings:

Company name Sector
HDFC Bank Ltd. Financial Services
Yes Bank Ltd. Financial Services
Grasim Industries Ltd. Cement & Cement Production
Reliance Industries Ltd. Dec 24 2020 Energy
ICICI Bank Ltd. Financial Services
Infosys Ltd. IT
Larsen & Toubro Ltd. Construction

Reliance Large Cap Fund

This top performing Reliance mutual fund was earlier known as Reliance Top 200 Fund.

Reliance Large Cap Fund Direct has made a portfolio of companies that are leaders in their respective businesses. While large caps contribute 84.6 % of the fund’s portfolio, mid-cap contributes 15.4 %.

Essentially, the fund manager sticks to the growth at reasonable valuation philosophy and picks companies that can give a 3 to 5 % higher earnings growth than the benchmark.

Companies that show scope for considerable betterment in return on equity over a three to four-year tenure find their way into the fund’s portfolio.

The fund is a mix of 40 to 45 shares, of which top 10 contribute approx 40 to 45 % of the portfolio.

The fund manager is now bullish on corporate banks, engineering, consumption, and pharma as he believes valuations are cheap and earnings could get better as growth comes back.

The fund has performed better than its benchmark comfortably by 3 to 4 % over the past 1, 3, 5 and 7 year tenure.

The fund has increased allocation to beaten-down technology and pharma sectors by adding Infosys and Sun Pharma.

Stocks like TVS Motors, Bajaj Finance, and Bharat Forge were good performers over the past year.

NAV of Reliance Large Cap Fund: Rs. 33.1041

Risk Moderately high
Expense Ratio 1.32 %
Fund size 4149 Cr
1 year Return 10.53 %
3 year Return 10.96 %
5 year Return 17.78 %

Top Holdings:

Company name Sector
ITC Ltd. Consumer goods
State Bank of India Financial services
Infosys Ltd. IT
ICICI Bank Ltd. Financial Services
HDFC Bank Ltd. Financial Services
Larsen & Toubro Ltd. Construction
HCL Technologies Ltd. IT

Reliance Liquid Fund

Investors looking to get the benefit of liquidity while not taking much risk can look to invest in Reliance Liquid Fund. The risk involved in this fund is very low and the fund size is 21,747 crores.

The investment objective of the fund is to generate optimal returns consistent with moderate risk and high liquidity. Returns are taxed as per your Income Tax slab if sold before 3 years. The expense ratio for this fund is as low as 0.15 %. Over the years, it has given a decent return and has been slightly higher than the Groww Debt Benchmark.

NAV of Reliance Liquid Fund: Rs. 4277.6638

Risk Very Low
Expense Ratio 0.15 %
Fund size 21747 Cr
1 year Return 6.90 %
3 year Return 7.43 %
5 year Return 8.15 %

Top Holdings:

Company name Sector
Treasury Bill (91D) Sovereign
NABARD Financial services
Axis Bank Financial Services
ICICI Bank Ltd. Financial Services
HDFC Bank Ltd. Financial Services
Export Import Bank of India (313D) Financial Services
Treasury Bill (91D) Sovereign

Conclusion

While investing in any of the above-mentioned funds, the investor should keep in mind the duration for which they are investing. Moreover, the risk they are willing to take will also be an important factor in determining the fund he is willing to invest in.

Based on all of this, an investor can decide for himself the fund he is willing to invest in.

Happy investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.