There
are numerous investment options present in the market in which people
may invest their surplus to earn the time value of money. Among many
options, one is mutual funds which is attracting attention of
investors across the country. With time, the number of assets
management companies have been increased and so havethe schemes. Reliance Mutual Fund is one of the AMCs that has brought
for investors many distinct products. Let’s read about one of them
which is Reliance Banking Fund.
What Is Reliance Banking Fund Growth?
Reliance Banking Fund Growth which was launched on May 26th, 2003 is a unique scheme which mainly invests in the banking sector companies and the companies that deal in the allied activities which are related to this sector. It mainly invests in equity and its related instruments, and thus involves moderately high risk. The experts at MySIPonline believe that this scheme is for investors who are aggressive in nature and are looking for an opportunity to park their surplus in the owner’s fund. Below are some facts about this scheme:
1. Asset Allocation
The assets under management as on July 31st, 2018 was Rs. 3044 crores which include about 97.64% investment in equity and 2.62% in debt. The investment in equity is further divided into giant, large, mid, and small-cap. The allocation percentage of assets in equity can be seen in the below pie chart as on July 31st, 2018.
The
top five companies in which it has invested its assets majorly are
HDFC Bank, ICICI Bank, State Bank of India, Axis Bank, and Bharat
Financial Inclusion with assets allocated in them being 13.60%,
12.18%, 10.15%, 6.49%, and 5.77%, respectively.
2. Performance
Trailing Returns (%) | 1-Year (%) | 3-Year (%) | 5-Year (%) |
Fund | 10.54 | 19.45 | 29.48 |
NIFTY Bank TRI | 16.44 | 18.77 | 27.35 |
Category | 9.66 | 15.65 | 23.27 |
As on August 28th, 2018
From the above table, it can be seen that the trailing returns yielded by this scheme in three-year and five-year is comparatively more than both its benchmark and its category. It has even surpassed its competitors such as Invesco India Financial Services Fund and Reliance ETF Bank BeES in five-year returns.
3. Risk
The standard deviation of Reliance Banking Fund is 17.96% as on July 31st, 2108 which is lower than both its benchmark and category. The Beta of this scheme is 0.90% which is also lower than its category. Both these measures state that this scheme will fluctuate less in comparison to both others. The Sharpe ratio of the scheme is 0.51% which is more than its benchmark and category, this shows that it is good in yielding returns compared to the risk taken.
4. Investment Details
The minimum investment amount with which you may start investing in Reliance Growth Fund is Rs. 5000. There is no entry load chargeable, however, if redemption is made within one year of investment, then you will be liable to pay 1% as exit charges. Reliance Banking Fund NAV as on August 28th, 2018 was Rs. 288.4049.
Why Should You Invest in Reliance Banking Regular Plan?
Banking sector plays an important role in India and is huge with a number of private and public sector banks and branches spread across. Being an equity banking fund, this scheme has chances for an investor to yield remarkable returns. As you have already gone through the performance and risk associated with this scheme in the above table, it is clear that investment in it is no less than an opportunity. According to the MySIPonline experts, in the coming time, the returns of the equity investments are anticipated to increase, therefore, investing in the same seems to be a good bet.
This was all about Reliance Banking Fund , in which you may invest if you wish to increase your savings with time. This is a great opportunity for investors with high risk appetite and who wish to invest in the banking sector. You may invest in Reliance Banking Fund online as well as through offline mode. To invest online, log on to MySIPonline, a leading investment platform that has a very simplified procedure.
