Reliance Diversified Power Sector Fund

Reliance Diversified Power Sector fund is being managed by Sunil Singhania. Sunil has 15 years experience in equity markets and has been managing this fund since its inception. The energy sector in general has given mixed performance in the last 3 years but it is showing signs of recovery. If you have invested in this fund, exit now to invest in a better performing fund. Investing in sector funds is risky and such funds should only be part of a satellite portfolio.

Where does Reliance Diversified Power Sector Fund invest your money?

Reliance Diversified Power Sector fund is a multi cap sector fund which means most of your money is invested in giant, large, medium and small size companies in the energy sector. This fund has 30.73% exposure to large cap companies, 29.55% exposure to mid cap companies and 39.72% exposure to small cap companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Yet exposure to mid cap companies is not avoided due to prospects of kicker returns which unfortunately does not happen often. This fund provides opportunity to diversify within the sector, with focused approach and flexibility to invest in power distribution, transmission and generation related companies.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not Suitable
  • Child's education
  • Child's marriage
  • Retirement Plans
  • Home Purchase
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
How has Reliance Diversified Power Sector Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in April 2004 the value of your investments would be around Rs 5.03 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 0.75 lakhs. The performance has been very poor as compared to other mutual funds in this category in the last three years. The fund has been giving at around -5.6% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Reliance Diversified Power Sector through SIP from Jan 2008 today you would have just around Rs 5.18 lakhs.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Reliance Diversified Power Sector Fund is 2.34%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Reliance Diversified Power Sector fund does not qualify for sec 80C ELSS benefits.

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