Reliance Media & Entertainment Fund

Reliance Media & Entertainment fund is being managed by Shailesh Raj Bhan.Overall the media & entertainment industry has registered good growth in 2011. You can continue your investments in this fund but new investors might want to skip this one for now. No more than 30% of your total investment portfolio must be allocated to this fund.

Where does Reliance Media & Entertainment Fund invest your money?

Reliance Media & Entertainment fund is a thematic fund with bias towards small and mid cap companies in the sector. Close to 6% of the fund’s assets are invested in cash and its equivalents. Of the equity portion this fund has 49% exposure to mid size companies and 36.05% exposure in small size companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns. Unfortunately it does not happen too frequently.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not Suitable for?
  • Child's Education
  • Child's Marriage
  • Planning for Retirement
  • Buying a house 
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 100 per month. Make Reliance Media & Entertainment Fund as part of your core portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio. Core portfolio is investments that are made for your basic goals. Reliance Media & Entertainment Fund can be part of the core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
How has Reliance Media & Entertainment Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Dec 1993, your value of investments would be around Rs 3.75 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.25 lakhs. The performance has been not better than or similar to other small and mid cap mutual fund. The fund has been giving at around 4.63% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Reliance Media & Entertainment fund through SIP for the past 5 years today you would have around Rs 9.16lakhs.

When to review 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 charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first timeinvestor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from yourinvestment 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 Media & Entertainment Fund is 2.50%. 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.

When to exit?

Withdraw when you see that the theme is no longer the one that’s ‘in’. Do not remove the money during when the markets go up or down in the short term. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Reliance Media & Entertainment fund does not qualify for sec 80C ELSS benefits.

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