Reliance Mutual Fund is a part of Reliance Anil Dhirubhai Ambani (ADA) Group and it is one of the largest growing asset management companies in India.

It has an asset under management of nearly 2.5 lakh crores (as on 31st March 2018). It manages approximately 94 lakh folios (comes in top 5 mutual fund houses in the country)

The mutual fund house is present across 160 cities in the country. The main motto of the asset management company is as follows:

  • Launch products that are not only innovative, but also conducive for investors;
  • The fund house  believes in increasing the value of investors

Reliance Mutual Fund provides a host of mutual funds across various categories, be it equity, debt and hybrid. The schemes have a well-managed portfolio and it has pioneered to become one of the most trusted and largest asset management companies in India.

Reliance Mutual Fund has been sponsored by Reliance Capital Limited and Nippon Life Insurance Company of Japan.

Reliance Mutual Fund Fact Sheet

Fund House Reliance Nippon Life Asset Management Limited
Commencement of Operations June 30, 1995
Sponsor Reliance Capital (India) & Nippon Life Insurance Company (Japan)
Coverage 160 cities with 65,300 empanelled distributors
Trustee Reliance Capital Trustee Co. Ltd.
Executive Director & CEO Mr. Sundeep Sikka
Deputy CEO Mr. Himanshu Vyapak
Compliance Officer Mr. Muneesh Sud
CIO – Equity Investments Mr. Manish Gunwani
CIO – Fixed Income Investments Mr. Amit Tripathi

Overall Performance of Reliance Mutual Fund

Let us look at the QAAUM (Quarterly Average Assets under Management) for the last few years in each category in order to gauge the performance of the fund.

Date Equity Debt Liquid ETFs
March 2015 44,437 47,668 57,011 87,143
March 2016 62,865 76,422 1,03,137 99,053
March 2017 27,707 33,543 37,995 45,412
March 2018 2,115 1,775 12,748 13,296

Note: Figures in Rs. Crores

Looking at the performance we can clearly say that the fund house has been clocking solid growth in the last few years with a steady increase of flows in all the categories i.e equity, debt, liquid and ETFs.

Financial Performance of the Fund House (In Crores)

Particulars FY 2018 FY 2017
Gross Income 1815 1436
Profit before tax (PBT) 726 581
Net Profit 522 402
EPS 8.74 6.85

Key People at Reliance Fund House

These are 4 key people at Reliance Fund House

1.Sundeep Sikka

Mr. Sikka is the Executive Director & CEO of the Company and brings in a lot of risk experience with him.

He became the youngest CEO in the asset management industry of India when we was designated as President and CEO of the house.

He has also been the member of RBI, AMFI, NSDL and FICCI.

2. Himanshu Vyapak

A gold medalist in MBA, Mr. Vyapak joined the company in October 2003. He is the Deputy CEO.

He has been instrumental in expanding the fund house’s footprints both on the domestic, as well as on the international front.

He is also a member on the ARN committee of AMFI. He has also worked in Reliance Capital group in divisions such as credit cards and unsecured loans.

Prior to joining the fund house, he held key positions with ICICI Bank and Escorts Finance.

3.Manish Guwani

He is an alumnus of IIT Madras and then completed MBA from IIM Ahmedabad, Mr. Gunwani has over 20 years of experience in the markets.

He became the CIO – Equities at Reliance Mutual Fund in September 2017. Prior to joining RNAM, Mr. Gunwani has worked in various firms such as ICICI Prudential AMC, Prime Securities, and SSKI etc.

Amit Tripathi

Having entered the markets in 1997, Mr. Amit Tripathi has over 20 years of experience in the markets.

Currently, he serves as the CIO of Fixed Income Investments at RNAM. He had joined the fund house in 2003 as a Fund Manager.

He also interacts closely with other functions of the firm such as compliance, risk, sales and product. Prior to joining the firm, Mr. Tripathi has worked in companies such as Sun Invest Associates Ltd., CFS Financial Services Pvt. Ltd., and New India Assurance Company Ltd. Mr. Tripathi has completed MBA in Finance.

Top Fund Managers at Reliance Mutual Fund

1. Ashwani Kumar

Mr. Kumar serves as Senior Equity Fund Manager at Reliance Nippon Asset Management Company. He manages the following funds for Reliance:

  • Reliance Regular Savings Fund (Equity Option);
  • Reliance Quant Plus Fund – Sensex Plan;
  • Reliance Quant Plus Fund – Nifty Plan;
  • Reliance NRI Equity Fund;
  • Reliance Tax Saver (ELSS) Fund;
  • Reliance Monthly Income Plan

Prior to joining Reliance, he worked as a Senior Research Analyst at Zurich Asset Management Co. India Pvt. Ltd. He has a B. Sc degree and also holds MBA from IIM Bangalore.

2. Shailesh Raj Bhan

Mr. Sailesh Raj Bhan, CFA serves as Deputy Chief Investment Officer of Equity Investments and Senior Equity Fund Manager at Reliance Nippon Life Asset Management Limited.

He is responsible for managing diversified equity investments at the firm.

Mr. Bhan is also a connoisseur in the market, as he has an ample amount of experience in equity research, analysis and fund management.

Prior to joining Reliance Mutual Fund, he has worked at Emkay Share & Stock Pvt. Ltd., Shah & Sequeira Investment Pvt. Ltd. He has completed CFA and also holds an MBA degree in Finance.

3.Samir Rachh

Mr. Rachh has graduated from Mumbai University and has a commerce degree.

He has a total experience of 25 years in the field, having worked following firm like, Capital Magazine, Anvicon Research (Managing Partner), Hinduja Finance, Emkay Global Financial Services Ltd.;

Mr. Rachh has been with Reliance Mutual Fund for more than eight years now and specializes in mid and small cap stocks. He also manages Reliance Small Cap Fund.

4. Sanjay Parekh

Mr. Parekh has over 18 years of work experience across fund management, covering various sectors in the economy.

He is currently a senior fund manager, managing equity investments at Reliance Nippon Life Asset Management Limited.

Prior to joining Reliance, Mr. Parekh has worked in ICICI Prudential Asset Management Ltd. and ASK Investment Managers. He manages Reliance Equity Hybrid Fund and Reliance Dual Advantage Fund.

5. Anju Chhajer

Ms. Chhajer is a debt fund manager at Reliance Nippon Life Asset Management Limited since October 2007.

She is responsible for debt investment portfolios at the firm. Prior to working at Reliance, she has worked in the Treasury Operations division at National Insurance Co. Ltd. and also D.C. Dharewa & Co. Ms. Chhajer is a Chartered Accountant and also has a B.Com degree.

Some of the funds managed by her include Reliance Medium Term Plan, Reliance Liquidity Fund, and Reliance Dual Advantage Fixed Tenure Fund etc.

Best Reliance Mutual Fund You Can Consider Investing In
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
NA NA NA NA NA NA
(NA)
NA
NA NA NA NA NA NA
(NA)
NA
NA NA NA NA NA NA
(NA)
NA
NA NA NA NA NA NA
(NA)
NA

Let us now look at each fund in detail:

1.Reliance Large Cap Fund

Key Information

AUM (Assets Under Management) 11,794 crores
NAV INR 35.5
Minimum SIP Amount 100
Expense Ratio 1.20%
Fund Type Equity – Large Cap
Risk Moderately High
Benchmark S & P BSE 100 TRI
Fund Manager Ashwani Kumar, Sailesh Raj Bhan
Exit Load Exit load is 1% for more than 10% of investments if redeemed within 1 year
Fund Started 01 – Jan – 2013

Sector Allocation

 

              Reliance Large Cap Fund

Main Sectors of allocation
Financials
Engineering
Healthcare

Why Invest in Reliance Large Cap Fund?

By looking at the portfolio of this fund, we can say that the fund managers firm believers in India’s growth story.

This is because there is heavy reliance on sectors such as financials, healthcare, engineering etc. Some of the great companies in the portfolio are SBI, L&T, Axis Bank Ltd., ICICI Ltd., HDFC Bank Ltd., ITC Ltd., Bajaj Finance etc.

The expense ratio of the fund is low at 1.20 percent. Also we can start an SIP with as low as INR 100 per month.

SBI Bluechip vs Reliance Large Cap – which is the better fund?

Top Holdings

Company Name Sector % Allocation
State Bank of India Financial Services 8.97%
Axis Bank Financial Services 7.28%
HDFC Bank Financial Services 5.86%
Infosys IT 5.34%
L&T Construction 5.20%
ITC FMCG 4.73%
ICICI Bank Financial Services 4.64%
Sun Pharma Healthcare 4.19%
Divi’s Laboratories Healthcare 3.25%
Bajaj Finance Financial Services 2.95%

2. Reliance Small Cap Fund

Key Information

AUM 7,260 crores
NAV INR 41.6
Minimum SIP Amount 100
Expense Ratio 1.15%
Fund Type Equity – Small Cap
Risk Moderately High
Benchmark S & P BSE Small Cap TRI
Fund Manager Samir Rachh, Dhrumil Shah
Exit Load Exit load of 1% if redeemed within 1 year
Fund Started 01 – Jan – 2013

Reliance Small Cap Fund: Is this the right small cap fund for you?

Sector Allocation

 

Reliance Small Cap Fund – Direct – Growth

Sector Allocation (%)
Engineering 15.7%
Chemicals 15.4%
Financials 14.7%
FMCG 11.4%

Why Invest in Reliance Small Cap Fund?

Consistent returns of the fund as compared to the benchmark, SIP amount as low as INR 100, an expense ratio of 1.15 percent and allocations to top sectors and companies makes this fund 5 star rated.

Therefore, we can surely think of investing in this fund for a long term perspective.

Top Holdings

Name Sector % of Assets
HDFC Ltd. (Commercial Paper) Financial Services 2.8%
Axis Bank Financial Services 2.5%
VIP Industries Chemicals 2.3%
HDFC Ltd. (Commercial Paper) Financial Services 2.3%
Vindhya Telelinks Ltd. Engineering 2.3%
Zydus Wellness Ltd. FMCG 2.1%
Deepak Nitrite Ltd. Chemicals 2.1%
Orient Electric Ltd. Engineering 1.9%
Navin Flourine International Ltd. Chemicals 1.9%
IDFC First Bank Ltd. Financial Services 1.9%

3. Reliance Equity Hybrid Fund

Key Information

AUM 12,643 crores
NAV INR 56.5
Minimum SIP Amount 100
Expense Ratio 1.00%
Fund Type Hybrid Aggressive
Risk Moderately High
Benchmark VR Balanced TRI
Fund Manager Amit Tripathi, Sanjay Parekh
Exit Load Exit load is 1% for units in excess of 10% of the investment and if the redemption is made within 12 months
Fund Started 01 – Jan – 2013

Sector Allocation

 

Reliance Equity Hybrid Fund – Direct – Growth

Sector Allocation (%)
Financial 43.5%
Construction 16.3%
Energy 12.9%
Technology 9.3%

Why Invest in Reliance Equity Hybrid Fund?

Though the fund has not provided great returns compared to the benchmark over one-year time horizon, but it is not the case if we look at the long term horizon (5 years).

Also, the expense ratio of the fund is 1 percent and the SIP amount is as low as INR 100, thereby, it is accessible to any retail investor.

Given these scenarios, Reliance Equity Hybrid Fund can be considered for long term investing by us.

Top Holdings

Name Sector % of Assets
HDFC Bank Ltd. Financial Services 9.4%
Infosys Ltd. Technology 4.7%
Grasim Industries Ltd. Construction 4.6%
SBI Financial Services 4.2%
ICICI Bank Ltd. Financial Services 3.8%
Reliance Industries Ltd. Energy 3.5%
L&T Construction 3.4%
HDFC Ltd. Financial Services 2.9%
ITC Ltd. FMCG 2.1%
Vedanta Ltd. Metals 1.9%

2.Reliance Liquid Fund – Direct – Growth

Key Information

AUM 44,993 crores
NAV INR 4538.8
Minimum SIP Amount 100
Expense Ratio 0.15
Fund Type Debt Liquid
Risk Low
Benchmark CCIL T Bill Liquidity Weight
Fund Manager Anju Chajjer
Exit Load NIL
Fund Started 01 – Jan – 2013

 Reliance Liquid Fund: Detailed Review

Sector Allocation

 

Reliance Liquid Fund – Direct – Growth

Sector Allocation (%)
Financial 86%
Communication 8.5%
Metals 6.5%

Why Invest in Reliance Liquid Fund

If we look at the returns generated by Reliance Liquid Fund as compared to its benchmark, CCIL T Bill Liquidity, we see that the fund has beaten the benchmark throughout and by approximately 3 percentage points.

Also, the fund has an expense ratio of 0.15 percent and exit load is nil. Given all these scenarios, we believe this fund is most suitable for investors who seek lower risk and stable returns.

Top Holdings

Name Sector Type of Investment % of Assets
Deutsche Bank Financial Services FDs 2.8%
Vijaya Bank Financial Services CD 2.7%
Vijaya Bank Financial Services CD 2.7%
Reliance Jio Infocomm Ltd. Communication CP 2.7%
National Housing Bank Financial Services CP 2.7%
Reliance Jio Infocomm Ltd.        Communication CP 2.6%
Indusind Bank Ltd. Financial Services CD 2.5%
Indian Bank Financial Services CD 2.5%
Reserve Bank of India Financial Services T- Bills 1.7%
Citibank N A. Financial Services BR 1.6%

Conclusion

Reliance Mutual Fund through its exceptional performance has been able to provide great returns to its investors.

With more than 20 years in the industry, it has been able to make a trustworthy name for itself. As discussed, it caters to the needs of every investor by providing products under various categories.

Therefore, people looking to invest in mutual funds with specific goals and term horizon can surely look to invest in few schemes offered by this fund house.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww