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

How Is Reliance Equity Savings Fund Better Than FDs?

Mutual funds have been gaining momentum in India over the past few years. As per the information provided by AMFI, there are nearly 25.2 million SIP accounts in the mutual fund industry. Further, around 9.74 lakh SIP accounts have been averagely added per month during the financial year 2018-19. With the increasing attractions towards mutual funds, investors are searching for more options to park their money with savings purposes. Reliance Equity Savings Fund also aims to provide savings option by investing in equity, debt, arbitrage opportunities, and money market instruments for capital appreciation. It was launched on 30th May 2015 with a focus on maintaining adequate returns to the investors.

Here are some benefits of Reliance Tax Savings Fund G over fixed deposits that make it a better savings options and return a generator.

Extra Tax Savings Returns

Most of the equity saving schemes have been launched after the 2014 Union Budget when the holding period changed from 1 to 3-years for capital gains in debt funds. The industry has introduced tax friendly mutual fund products, equity savings fund, for the investors to provide tax savings benefits in shorter as well as longer period. Reliance Equity Fund has adequate exposure to equity instruments to provide the advantage of equity tax saving benefits instead of debt taxation. 

Reliance Equity Savings Fund Growth is also one of them to provide risk-adjusted returns and tax savings benefits for the investors. It invests in a mix of debt and equity securities which provide tax benefits and savings option.

The portfolio of this scheme holds 46.33% equity instruments, 23.42% debt instruments, and around 30.25% cash equivalents.

Beat the Inflation

Even the experts at MySIPonline suggest parking your money in Reliance Equity Savings Fund G instead of fixed deposits. They give the reason that the interest earned on fixed deposits is not sufficient to beat inflation in long-term. The equity savings fund provide predictable returns along with little risk by maintaining a diversified portfolio.

With the investment in equity instruments, Reliance Equity Savings Fund generates higher returns against the inflation in long-term. Although it has higher exposure to equity as compared to debt instruments, it is a better option to generate higher returns with the low-risk measure.

Active Equity Allocation

The active equity exposure in the portfolio of Reliance Equity Savings Fund maintains a diversified portfolio of different market caps and sectors. Apart from this, it has a large-cap exposure as well to reduce overall risk in the portfolio. If you are looking for an option which can generate higher and inflation-adjusted returns than FD interest rates, this active equity portfolio is suitable to help in generating additional returns.

Fixed Income Exposure

Reliance Equity Savings Fund has a significant exposure to debt instruments, however, less than equity instruments, to enjoy equity taxation benefits. It invests majorly in unrated papers to get benefits of credit rating improvements.

Hedging Benefits

Arbitrage profits generated from hedge positioning makes Reliance Equity Savings Fund produce additional risk-free returns.

Reliance Equity Savings Fund is a good option over fixed deposits considering hedging benefits, active equity exposure, fixed income assets, high returns, and tax savings benefits. If you have any query regarding the above information or regular plan, you can mention it in the below-provided link to get assistance ASAP. https://goo.gl/WofRJm

Top Performing ELSS Mutual Funds for Tax Saving in 2019

Everyone likes getting free stuff on the purchases they make. The joy of getting multiple things for the price of one is just overwhelming. This is one of the major reasons, the popularity of the ELSS mutual funds have increased in the past 1 decade. By investing in these schemes, an investor can enjoy dual benefits of high growth from equity instruments, as well as tax saving benefits on investments up to Rs. 1.5 lakhs. But, a lot of investors are confused regarding the right scheme from this category that can be chosen for optimal growth. So today, we will see the ELSS - Tax Saving schemes, which you can invest in to enjoy great growth.

Aditya Birla Sun Life Tax Relief 96’ Fund (G)

This scheme is one of the oldest schemes of this category and since the inception has secured a position in the top performing mutual funds list. The biggest proof of its exceptional performance is the average annualized return of more than 24% that it has provided since its inception. A great choice for investors with a long-term investment horizon and moderately high risk appetite.

Axis Long Term Equity Fund (G)

This scheme is a perfect tax saving solution for investors who want a stable growth. In the past 1 year, even during extreme volatility, this ELSS scheme showed a great performance by providing Year to Date return of 4.09%. One of the best features of the scheme is its high turnover ratio, which allows it to change the portfolio allocation based on the equity market conditions. This scheme too has been among the top performing ELSS mutual funds from a very long time.

L&T Tax Advantage Fund (G)

This scheme is a great pick for investors who want to invest in a diversified portfolio of equities. L&T Tax Advantage Fund has also shown exceptional performance in the long-term, by providing annual average returns of more than 18% in the past 10 years. One of the main reasons behind its consistency is the exceptional management skills of Mr. Soumendra Nath Lahiri, who is also managing other top performing mutual funds from L&T, such as L&T Midcap Fund, L&T Emerging Businesses Fund, and many others.

DSP Tax Saver Fund (G)

A great choice in the current market phase and the reason for that is its high allocation in the finance sector (38.10%). Now, as you may know, a lot of experts are holding convictions for the growth of this sector in the next 1 year and with the enhancement of cash inflows by the government in PSU banks has increased the chances. So, by investing in this top performing mutual fund scheme, you can enjoy the growth of this sector firsthand. 


These were top performing schemes that you can invest in for saving taxes up to Rs. 43,650 in the year 2019. An added benefit of these schemes is the lock-in period of just 3 years, which is the lowest among all the 80C instruments. So, don’t wait anymore and start your investments now. For hassle free investments in these top performers, you can visit MySIPonline. You can also check the top performing mutual fund schemes from other categories and can create a full fledged portfolio for optimal long-term growth.

Long-Term Goal? Invest in HDFC Top 100 Fund via MySIPonline

MySIPonline provides the important information about HDFC Top 100 Fund to help investors in their investment decision. HDFC Top 100 Fund was launched on 3rd Sept 2018 with an investment objective to invest significantly in large-cap companies to generate long-term capital appreciation. The asset under management of HDFC Top 100 Fund is Rs 14,699 crore as on 31st Oct 2018. Mr Prashant Jain is the fund manager of the scheme since Jan 2002. Before joining HDFC Mutual Fund, he has worked with SBI Mutual Fund and Zurich AMC. Here is the detailed information about HDFC Top 100 Fund.

Detailed Portfolio

HDFC Top 100 Fund is a pure equity fund which invests purely in equity instruments. There is a total of 49 stocks in the portfolio of the fund as noted on 29th Nov 2018. The top 10 stocks consist 60.66% assets. Coming to the asset allocation based on the market capitalisation, HDFC Top 100 Fund invests majorly (approximately 88.92%) in stocks of large-cap companies, and the remaining around 11.07% in mid-cap companies.

The portfolio of HDFC Top 100 Fund suggests that a strong large-cap exposure will help the fund to sustain in the market volatility and generate long-term capital appreciation for investors.

When it comes to sector allocation, HDFC Top 100 Fund G invests majorly in the financial sector which consists around 36.39%. The top 3 sectors in the portfolio measure for 74.40%.

Performance

The fund has generated exceptional returns at 19.87% annualised rate for investors since inception as noted on 29th Nov 2018. Since last one year, the fund is not performing well, but for long-term investment goal, this underperformance is not to worry about as our experts at MySIPonline suggest.

The fund has generated 11.60% returns in 3-years and outperformed the category’s average, although benchmark return has not been touched. Considering long-term returns, HDFC Top 100 Fund has produced 15.06% trailing returns which are higher than the category’s average (13.34%) and benchmark (14.22%). In the last 10-years, the fund has generated returns at 18.14% and outperformed the category’s average (15.51%) and benchmark (17.20%).

During unfavourable market conditions in 2008 and 2011, the fund was able to maintain the losses below the benchmark and category.

Risk-Appetite

As HDFC Top 100 Fund G invests in equity instruments, we could suggest that the portfolio of the fund will be risky. Apart from this, the equity exposure to large-cap companies implies that HDFC Top 100 Fund will be stable during unfavourable market conditions than small-cap and mid-cap funds. Experts at MySIPonline recommend investing in this fund for a long-term horizon to mitigate overall risk in the portfolio and get risk-adjusted returns.

Overall, HDFC Top 100 Fund is for investors who want to invest in for a long-term horizon in equity instruments of large-cap companies with moderate to high risk and return expectation. If you have any query regarding SBI Dynamic Bond Fund and any other regular plan, you can mention in the below-provided link where our experts are ready to provide related suggestion to your queries. https://goo.gl/WofRJm