Reliance Equity Hybrid Fund, earlier known as Reliance Regular Savings Fund, is more than a decade old fund which has been in the space since June 2005. This aggressive hybrid scheme has featured a magnificent AUM (Assets Under Management) of Rs. 12,643 crore as on January 31, 2019. The scheme has also demonstrated extraordinary long-term performance. It yielded a 5-year return of 15.10% against a return of 13.21% generated by its benchmark for the same period.
Key Statistics of Reliance Equity Hybrid Fund Performance*
|Fund Performance||1 Year||3 Year||5 Year|
Key Details of Reliance Equity Hybrid Fund
The following are some of the key details of the Reliance Equity Hybrid Fund as of January 31, 2019:
- Inception Date – June 2005
- AUM – Rs. 12,643 crore
- Fund Manager – Mr. Sanjay Parekh (Since April 2012) and Mr. Amit Tripathi (Since August 2010)
- Benchmark – Crisil Hybrid 35+65 – Aggressive Index (TRI)
- Expense Ratio – 1% (Direct)
Reliance Equity Hybrid Fund Performance vs Benchmark*
|Instrument||1 Year||3 Year||5 Year|
|Reliance Equity Hybrid Fund||-8.80%||9.53%||15.10%|
|Benchmark (Crisil Hybrid 35+65 – Aggressive Index – TRI)||0.19%||12.19%||13.21%|
Reliance Equity Hybrid Fund has generated return of 9.53% over the previous 3 year period. The scheme’s 3-year return is high but lower than its benchmark 3-year return of 12.19%.
However, the scheme has succeeded in outperforming its benchmark during the last 5 year period by generating a staggering return of 15.10% against its benchmark return of 13.21% for the same period. This aggressive hybrid scheme is gathering the interest of investors with its attractive and consistent performance.
Asset Allocation of Reliance Equity Hybrid Fund
The following is the Asset Class-Wise Investment Breakup of Reliance Equity Hybrid Fund as of January 31, 2019:
|Asset Class||Portfolio Allocation (% of total assets)|
|AAA/SOV/A1+/Cash & Other Receivables||3.62%|
Being an aggressive hybrid fund, the Reliance Equity Hybrid Fund has invested a majority of its assets (73.12%) in equity and equity related instruments. The scheme has hedged its aggressive stance by investing around 3.62% in sovereign, AAA and A1+ rated debt instruments. Sovereign and AAA rated debt instruments are the most credit-worthy fixed income securities. The scheme has invested around 14.88% of its assets in relatively AA/AA+/AA- and another 6.70% in A+/A/A-/A1 rated debt instruments.
The following is a list of the top sectors that the equity portion of the Reliance Equity Hybrid Fund is invested in as of January 31, 2019:
|Investment Sector||% of Assets Allocated|
*Data as of January 31, 2019.
Reliance Equity Hybrid Fund follows an aggressive approach in allocation of its assets across sectors just like its asset allocation across market capitalisations. The scheme has given a higher weightage to consumption-driven sectors in its portfolio than defensive sectors. This scheme’s top 5 sector holdings are Banking (20.20%), Finance (8.69%), Petroleum Products (5.85%), Software (4.91%) and Cement (4.86%).
Top Individual Holdings of Reliance Equity Hybrid Fund
The following are the top 10 individual holdings of the Reliance Equity Hybrid Fund :
|Investment Name||Type of Holding||Weight in Portfolio|
|Reliance Commercial Finance||Debt||6.01%|
|Morgan Credits (Zero Coupon Bond)||Equity||4.66%|
|State Bank of India||Equity||4.22%|
|Larsen & Toubro||Equity||3.44%|
*Data as of January 31, 2019.
Investment Facts of Reliance Equity Hybrid Fund
- Reliance Equity Hybrid Fund, previously known as Reliance Regular Savings Fund has a proven track record spanning over a decade.
- The scheme has shown an extraordinary performance over the last 5 year period wherein it yielded a return of 15.10% against a return of 13.21% generated by its benchmark.
- Being an aggressive hybrid fund, the scheme follows a relatively aggressive approach in allocation of its assets. The scheme has invested around 73.12% in potentially higher risk equities, with a relatively minor portion of assets invested in potentially lower risk debt instruments.
- The scheme maintains its aggressive stance in allocation of its assets across sectors as well as it has given more exposure to cyclical sectors in its portfolio than defensive sectors.
- Reliance Equity Hybrid Fund is a suitable hybrid scheme for investors who are seeking potentially high long-term returns for a moderate degree of risk.