Reliance Long Term Equity Fund

Reliance Long term Equity Fund is managed by Mr. Sunil Singhania and Mr. Samir Racch. The fund primarily focuses on the small and mid cap companies. The fund defines the small and mid cap stocks as follows: any stock having market capitalisation below Rs. 250 crores as a small cap stock and any stock having market capitalisation between Rs 250 crores to Rs. 1500 crores as a mid cap stock. If you have already invested in this scheme exit now. New investors can skip this fund for a better performing fund in this category.

Where does Reliance Long Term Equity Fund invest your money?

Reliance Long term Equity Fund is a mid and small cap fund which means majority of your money will be invested in stocks of medium and small sized companies. Large cap companies tend to be stable compared to mid cap and small cap companies. And just to give kicker returns it has exposure to mid cap companies. Presently it has just 13.32% exposure to large sized companies and 17.18% exposure to mid sized companies and 69.5% exposure in small sized companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has Reliance Long Term Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in December 2006, your value of investments would be around Rs 1.5 lakhs. If you had invested Rs 1 lakh 5 years back, your value of investments would be around Rs 1.25 Lakhs. The performance has not been similar to other mid and small cap mutual funds. It has been giving around 4.6% returns for those who have stayed invested for 5 years.  

Assume you had invested Rs 10,000 every month in Reliance Long term Equity Fund through SIP for 5 years today you would have around Rs 7.52 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

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 Long term Equity Fund is 2.04%. 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 an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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