Quick Facts: Reliance Capital Builder Fund IV – Series C NFO

NFO Name Reliance Capital Builder Fund IV – Series C
NFO Launch Date December 1, 2017
Last Date for Application December 15, 2017
Nature Close-ended equity oriented scheme
Fund manager Samir Rachh, Meenakshi Dawar
Tenure 1185 days (3 years and 3 months)

How to Invest in Reliance Capital Builder Fund IV – Series C NFO 2017

If you want to invest in Reliance Capital Builder Fund IV – Series C NFO, you have to follow the steps below-

  1. Log in to your Groww account. If you are a new user, sign up first– it is completely online and takes 2-3 working days.
  2. Decide the amount you would like to invest in Reliance Capital Builder Fund IV – Series C.
  3. Email Groww support on support@groww.in with a request or call/Whatsapp on 9108800604.

Key highlights of the Fund:

  • The Fund will focus on the Domestic Revival opportunities which can benefit from favourable dynamics like lower interest rates, Government led capex, policy reforms/actions etc.
  • There may be an overlap with the existing Small Cap Fund portfolio (Approx. 40 to 50%) with a focus on scalable ideas which can be potential multi baggers.
  • The fund will also tap into ideas which currently cannot be part of Reliance Small cap fund due to size considerations.
  • In order to maintain optimal fund size, the AMC may decide for an early closure of the NFO subject to achievement of the targeted corpus (approx. Rs. 500 Crs).
  • The portfolio will be well diversified across sectors with investments into 60-70 stocks.

Philosophy

  1. Select companies with attractive valuations
  2. Invest in companies with long term growth potential

 Objective

The investment objective of the fund is to provide long-term capital growth by investment in diversified portfolio of equity and equity-related instruments of entities with small exposure to fixed income securities.

Reliance Capital Builder Fund IV – Series C will focus on identifying scalable ideas which can be potential multi baggers. The fund will attempt to invest into 60-70 stocks. To achieve the same, fund will invest significantly in Smaller Capitalization companies with some allocations to Large & Mid Cap companies as well. The portfolio will be well diversified across sectors and stocks. Given the investment strategy, the fund may have some portfolio overlap with our existing Small Cap oriented offering – Reliance Small Cap Fund. The fund may also invest in opportunities which may not be a part of Reliance Small Cap Fund, on size considerations.

Investment Theme

 The fund shall seek to invest primarily in the Small Cap space with a focus on the Domestic Revival opportunities which can benefit from conducive factors such as lower interest rates, Government led capex, policy reforms/actions, among others. Some of them being –

  1. Beneficiaries of shift from Unorganized to Organized & GST:

  • Demonetization and GST to accelerate the shift from unorganized to organized sector
  • Corporate sector is likely to be big beneficiaries as there is going to be serious market share gains to the organized players across various sectors.

Key Themes: Apparels, Logistics, Building Products – Tiles, Plywood, Paint.

  1. Bank Recapitalization

  • The bank recapitalization initiative could provide a big boost of the MSME spaces as PSU banks will encouraged to use capital to lend to MSMEs

Key Themes: Small Banks, NBFCs

  1. Opportunity from China

  • Chinese companies are becoming less competitive due to new pollution
  • control norms which can lead to increased costs & closure of
  • non-compliant businesses thereby, opening an opportunity for the
  • Indian companies.

Key Themes: Chemicals, Metals

  1. Government led capital expenditure

  • Rs 6.92 Lakh crores to be spent on Road construction over next 5 years
  • Target to build 83,677 Kms of Roads including 34,800kms of Bharatmala programme by 2022
  • Indian Railways to incur Capex of Rs 8.6 trillion till 2019 focusing on Decongestion, Expansion, Doubling etc.
  • ‘Housing for All by 2022’: Target to build 5 crore homes over under
  • Pradhan Mantri Awaas Yojana – Urban and Gramin
  • Water – Large Projects like’ Namami Gange’ (20,000 crs), River Interlinking (55,000 crs) & Lift irrigation to drive spending

Key Themes: Industrials, Construction, Cement, Infrastructure

Rationale

  1. Opportunities at Current Valuations

    Though Absolute valuations based on trailing P/E levels may appear to be higher over the last 1 year or so, yet there have been stock specific opportunities which have generated relatively higher returns.

  2. ‘Research the Key Differentiator’

    Small Cap investing is a niche space characterized by large universe and limited coverage, wherein Reliance MF team has an edge in identifying winners:

  • One of the Largest Research & Experienced Fund Management Team
  • 200 + Mid/Small Cap companies tracked in-house

Fund Managers

Experienced Fund Management Team managed by Samir Rachh and Meenakshi Dawar. Mr. Samir has over 25 years of experience in Equity research specializing in Mid & Small Cap space. He also manages the key open ended mid/small cap offerings like Reliance Small Cap Fund & Reliance Mid & Small Cap Fund along with a multi cap offering Reliance Regular Savings Fund – Equity Option.

Reliance Capital Builder Fund IV – Scheme C: Other Options and details

Reliance Small Cap Fund:

An open ended equity scheme. Objective of the fund is long term capital growth via equity and equity-related securities of small cap companies.

Reliance Mid & Small Cap Fund:

An open ended diversified equity scheme. Objective of the fund is long term capital growth via equity and equity-related securities including derivatives.

Reliance Regular Savings Fund Equity Option:

An open ended scheme. Objective of the fund is long term capital growth via equity and equity-related securities.

NFO Risk

Reliance Capital Builder Fund IV – Series C NFO 2017 falls into the moderately high-risk category as per the company scheme information document indicating that the principal invested by the investors will be at moderately high risk. Trading volumes and settlement periods may restrict liquidity in equity and debt investments. Investment in Debt is subject to price, credit, and interest rate risk. The NAV of the Scheme may be affected, inter alia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The NAV may also be subjected to risk associated with investment in derivatives, foreign securities or script lending as may be permissible by the Scheme Information Document.

Disclaimer: the views expressed here are those of the author. Mutual funds are subject to market risks. Please read the offer document before investing.