Reliance NRI Equity Fund

Reliance NRI Equity Fund is one of the good performing funds in its category. Don’t let the name get you to think that this fund invests in foreign securities or is restricted to NRIs. This fund is managed by Omprakash Kuckian who has over 18 years of experience. He has been managing the fund from its inception in Nov 2004. Fund returns have been above average while portfolio risk is only average. 

Where does Reliance NRI Equity Fund invest your money?

Reliance NRI Equity Fund is a large cap fund which means your money will be invested in stocks of large sized companies. The fund has 73.36% exposure to large companies and about 22% exposure to medium size companies. It invests in high growth companies primarily drawn from the companies in the BSE 200 Index.

Suitable for what?
  • Child's education
  • Child's marriage
  • Buying house
  • Planning for retirement
Not suitable for what?
  • Creation of wealth
  • Lifestyle needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 100 per month. Do not make Reliance NRI Equity Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Do not make 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. Reliance NRI Equity Fund can be part of the satellite portfolio.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment.
Recommended
How has Reliance NRI Equity fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2004, your value of investments would be around Rs 4.46 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.5 lakhs. The performance has been better or similar to other mutual funds in this category. The fund has been giving at around 8.3% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Reliance NRI Equity Fund through SIP for the past 5 years today you would have around Rs 8.58 lakhs.

How will Relaince NRI Equity fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 

We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review 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 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 NRI Equity Fund is 2.94%. 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 enter ?

Now! There is no good time to invest rather than now. Do not try to time the market and especially if it is an SIP. Do not follow news channel and other experts trying to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. 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 NRI Equity Fund does not qualify for section 80C ELSS benefits

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