Reliance Regular Savings Equity Fund

Reliance Regular Savings Fund- Equity Plan is one of the better performing funds in its category. This fund is managed by Omprakash Kuckian. The fund has been consistent in its performance. This is a good fund to hold on to for the long term.

Where does Reliance Regular Savings Equity invest your money?

Reliance Regular Savings Fund- Equity Plan is a mid cap fund which means most of your money will be invested in stocks of medium sized companies. About 24.44% of the fund’s money is allocated to stocks of mid size companies, 15.24% to stocks of small size companies and the remaining to those of large companies. Mid size stocks can give kicker returns as they turn into large stocks but this happens not so frequently.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How much to invest?

Minimum one time investment is Rs 500 and minimum SIP is Rs 100 per month. Do not make Reliance Regular Savings Fund- Equity Plan 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 Regular Savings Fund- Equity Plan can be part of your satellite portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment.
Recommended
How has Reliance Regular Savings Equity fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at June 2005, your value of investments would be around Rs 2.48 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.04 lakhs. The performance has been similar to other large cap mutual funds. The fund has been giving at around 6% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Reliance Regular Savings Fund- Equity Plan through SIP for the past 5 years today you would have around Rs 7.80 lakhs.

How will Reliance Regular Savings 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 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. 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 Regular Savings Fund- Equity Plan is 2.36%. 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 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 do not withdraw within 1 year. Reliance Regular Savings Fund does not qualify for sec 80C ELSS benefits.

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