Reliance Focused Equity Fund was launched in December 2006 as a mid and small scheme known as the Reliance Mid & Small Cap Fund. After SEBI-mandated reorganisation of the mutual fund industry, it is now designated as a focused fund that invests at least 65% of its assets in a maximum of 30 stocks. The scheme has given impressive performance over the years, especially during the last 5-year period wherein it outperformed its benchmark by a margin of more than 5%.
Key Statistics of Reliance Focused Equity Fund Performance*
|Fund Performance||1 Year||3 Year||5 Year|
*Data Source – Pulse Labs. All data as on February 28, 2019.
Key Details of Reliance Focused Equity Fund
The following are some of the key details of the Reliance Focused Equity Fund as of February 28, 2019:
- Inception Date – December 2006
- AUM – Rs. 4,153 crore
- Fund Manager – Ms. Meenakshi Dawar (since April 2018)
- Benchmark – S&P BSE 500 Index (TRI)
- Expense Ratio – 1.40% (Direct)
- Minimum Investment Requirement – Rs. 5,000
Reliance Focused Equity Fund Performance vs Benchmark*
|Instrument||1 Year||3 Year||5 Year|
|Reliance Focused Equity Fund||-9.65%||15.86%||20.06%|
|Benchmark (S&P BSE 500 Index – TRI)||-2.00%||17.01%||14.46%|
*Data Source – Pulse Labs, Asia Index. All data as of February 28, 2019.
Reliance Focused Equity Fund has given attractive returns over the last 3 year and 5 year periods. During the previous 3 year period, the scheme generated a return of 15.86%, which while impressive, shows underperformance compared to benchmark return which stood at 17.01% for the same period. However, over the past 5 year period, the scheme succeeded in outperforming its benchmark by yielded a return of 20.06% against a return of 14.46% generated by its benchmark for the same period. As a result of its impressive long term track record, this focused scheme from Reliance Mutual Fund has emerged as one of the top picks in the category.
Asset Allocation of Reliance Focused Equity Fund
The following is the Asset Class-Wise Investment Breakup of Reliance Focused Equity Fund as of February 28, 2019:
|Asset Class||Portfolio Allocation (% of total assets)|
|Large Cap Equities||66%|
|Mid Cap Equities||24%|
|Small Cap Equities||9%|
|Cash/Cash Equivalent Instruments/Short Term Debt||1%|
*All data as of February 28, 2019.
Reliance Focused Equity Fund is a relatively conservative focused fund which has invested its maximum assets in the stocks of large cap companies which are fundamentally strong and thus less responsive to market volatility. The scheme has given an aggressive hint to its portfolio by investing an additional 24% of its assets in mid cap equities. The small cap holding of the scheme stood at 9% as of February 2019. Due to the large-cap oriented asset allocation, the Reliance Focused Equity features a potentially low level of risk.
The following is a list of the top sectors that the equity portion of the Reliance Focused Equity Fund is invested in as of February 28, 2019:
|Investment Sector||% of Assets Allocated|
|Banking & Finance||34.96%|
|Consumer Non Durables||11.92%|
|Construction & Cement||11.46%|
|Industrial Capital Goods||5.16%|
*Data as of February 28, 2019.
Reliance Focused Equity Fund follows an aggressive approach when it comes to asset allocation across sectors. The scheme has given a higher weightage to investments in consumption-driven sectors as of February 2019. The top 3 sector holdings of the scheme are Banking & Finance (34.96%), Consumer Non Durables (11.92%) and Construction & Cement (11.46) – all of which are consumption driven cyclical sectors.
Top Individual Holdings of Reliance Focused Equity Fund
The following are the top 10 individual equity investments of the Reliance Focused Equity Fund:
|Investment Name||Weight in Portfolio (%)|
|State Bank of India||8.89%|
|HDFC Bank Limited||7.03%|
|ICICI Bank Limited||6.81%|
|GAIL (India) Limited||6.16%|
|Larsen & Toubro Limited||5.11%|
|Motherson Sumi Systems Limited||4.62%|
|Bharti Airtel Limited||4.23%|
|Tata Motors Limited||3.23%|
*Data as of February 28, 2019.
Investment Facts of Reliance Focused Equity Fund
- Reliance Focused Equity Fund, earlier known as Reliance Mid & Small Cap Fund, was launched in December 2006.
- It is a focused fund and thus invests a minimum of 65% of its assets in a maximum of 30 stocks.
- The scheme has given impressive returns of 15.86% and 20.06% over the last 3 year and 5 year periods respectively.
- The scheme follows a conservative approach when it comes to asset allocation across market capitalisations. However, while allocating its assets across sectors, the scheme has adopted an aggressive stance by focusing on consumption-driven sectors.
- Reliance Focused Equity Fund is a suitable scheme for investors who have moderate to high risk appetite and are seeking potentially high returns in the long term.