Equity savings funds are a great way to start an investment in mutual funds. They are assorted with several benefits, the most prime of all being the inherent growth potential of equity and the solid income opportunity. It is perfect for those who believe in a high energy investment, created by combining the power of capital appreciation with steady income at the cost of medium volatility.
Amongst a plethora of options available in the market, Reliance Equity Savings Fund serves as one of the best options. It is a paragon of high energy portfolio that consists of all the necessary nutrients to achieve high growth in the future. There has been a remarkable shift of investors from other products to this scheme, owing to its phenomenal performance lately and the spectacular growth rate. It has been just three years since the fund was released by Reliance Mutual Fund in the Indian market, but its intensity has already captured the limelight. Not only the common people but the market gurus have accepted this fund with arms wide open.
To understand the fund better and decide whether it fits in your portfolio, you’d need more information. And, to save you from a lot of internet search and other brain scrambling activities, we have come up with a solid article that contains all the important facts about Reliance Equity Savings Fund (G). All you need to do is sit tight glued to the computer screen and glide your eyes along. Happy reading, fellas!
The Scheme Facts
Reliance Equity Savings Fund (Growth) is a moderately risky, equity-oriented hybrid scheme that contains all the three major asset classes – equity, debt and cash – in its portfolio. The diverse nature of the portfolio helps it to conquer better returns and stay relatively stable in all market conditions. The fund has been listed a three star scheme by CRISIL in the category of hybrid schemes, and enjoys a favourable spot amongst the investors. The fund manager team comprises of some of the best and highly qualified people, who thoroughly understand the functioning of the market and its other intricacies.
The fund recently experienced a hike of 0.32% in the value of its net assets. As a result, the per unit net worth, or the NAV, of Reliance Equity Savings Fund jumped up to Rs. 12.5466 as on 09th July, 2018, while the assets in their totality stood at Rs. 2, 632 crore as per the data released on 30th June, 2018.
Higher Returns than Banks: Earning high returns is one of the major reasons why a person decides to invest in equity savings fund. Reliance Equity Savings Fund is one of the top funds in this category, and has a glorious history of performance to boast about. The experts recommend that any person desirous of making a high income yielding investment shall consider this fund over bank deposits, as it can pay up to 7.50% returns against the normal bank interest of 4-5%.
Less Risky than Balanced Funds: Although a hybrid fund, Reliance Equity Savings Fund (G) has a unique strategy that involves only about a third of the assets invested in equity, while the rest are divided judiciously between debt and cash. Hence, it is an improvised balanced fund, providing the dual advantage of controlled risk and high returns to the investors.
Better Version of Pure Equity Funds: Pure equity funds are highly volatile. They do not possess anything but equity in their portfolio, which thus leads to a highly risky investment venture which suits only those who can stomach high risk. Equity savings fund on the other hand are less volatile, since a part of their portfolio also comprises of debt and arbitrage instruments which help in earning high returns in a controlled environment. If at all this category fits your profile, then you must start with Reliance Equity Savings Fund, as it has given remarkable returns in the past and have a controlled exposure to risk, thanks to its intelligent managing.
Doesn’t Allow Premature Redemption: For some, it might be little uncomfortable to digest that this fund doesn’t endorse premature or early redemption, but it is a necessary factor that adds to the success or failure of the fund. Reliance Equity Savings Fund – Regular Plan (G) charges 1% exit load for a redemption in excess of 10% of investment made within 365 days.
Hence, if you are hungry for growth and high returns and can settle with a long-term investment, then Reliance Equity Savings Fund (Growth) is a favourable option to begin with.
The main features and advantages of Reliance Equity Savings Fund have been jotted down in this article, to let the public know about the major reasons of its success.
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