5 Tips to Handle Reliance Value Fund in Market Volatility

Established on June 2005, Reliance Value Fund has been categorized under the equity value-oriented fund category. The primary objective of this scheme is to produce consistent returns and capital appreciation by investing in a mix of equity, fixed income, and money market instruments. Mr Meenakshi Dawar has recently joined the scheme and replaced Mr Sanjay Parekh and Amit Tripathi as the fund manager. The AUM of the scheme is Rs 3,124 crore (as on 30th Nov 2018). It creates a saving option for investors by actively managing the equity portfolio with a value-based investment approach. Here are 5-tips to handle this fund during the market volatility.

Follow a Disciplined Mode of Investment

Systematic Investment Plan (SIP) is a great way to make investors disciplined with their investments. Further, this regular savings helps the investors in achieving the financial goal. Reliance Value Fund G invests approximately 97.56% corpus in equity and equity related instruments. As equity category has a high risk-appetite and nature to swing by the market volatility, the investor can utilise this behaviour and get the advantage of the market downturn as well. When the market is up, as an investor, you purchase fewer units of Reliance Value Fund through regular SIP, whereas, when the market is correcting, you can purchase more units, and that too at lower NAV. In the market downturn, there is an option of additional purchase as well to take advantage of this situation.

With this scheme, you can start with as minimum as Rs 100 through SIP and make an additional purchase of minimum Rs 500.

Don’t Worry About Daily Market Volatility

You are required to understand that volatility will pass in some weeks or months or years. So, if you are investing in Reliance Value Fund, you should be calm as the market swings as what you are watching today will pass, just like it did in the past. However, you can consider the performance of the fund in different market swings in longer duration to predict the expected returns.

Stay Updated with Go-Around

Reliance Value Fund follows a value investment style in choosing the stock. The investor is required to be updated with the latest information regarding the stocks in the portfolio to predict the market in advance. It also helps the investors to sustain the market swings as he/she understands the reason behind that.

Stay Invested for a Long-Term

Reliance Value Fund Growth is good to invest for a long-term duration. Such a long tenure helps the scheme to produce risk-adjusted returns and survive through the market volatility.

In last 5, 7, and 10-years, it has produced 16.74%, 16.73%, and 18.18% annualised returns, respectively, and outperformed the benchmark. Considering the long-term returns, you can expect a higher growth from the fund over a time horizon of 5-years and more.

Maintain Diversified Portfolio

To maintain a diversified portfolio to sustain the market volatility, the investors are required to invest some portion of assets in debt and liquid funds as well. The diversification not only helps the investors in sustaining the market volatility. but also generates better risk-adjusted returns in long-term.

All the five tips as mentioned above are useful to sustain the market volatility in Reliance Value Fund growth and generate risk-adjusted returns over a time horizon. If you have any query regarding the regular plan, you can mention in the below-provided link to get further assistance from experts at MySIPonline ASAP. https://goo.gl/WofRJm