What Is the Investment Strategy of Reliance Vision Fund?

Reliance Vision Fund is a large and mid-cap fund which follows a unique strategy of investment by allocating an equal amount of corpus in large and mid-cap companies. The fund enjoys the benefits of both large as well as mid-cap companies. The large-cap companies provide stable and consistent growth at a low-risk factor while the mid-cap companies are much more growth-oriented and have a higher risk margin compared to large-cap companies. As per the norms of SEBI, this category has to invest at least 35% each in large and mid-cap companies. Reliance Vision Fund - Growth is provided by Reliance Mutual Fund which is among the top 3 asset management companies in India. Reliance Vision Fund (G) Details It is an old and prominent fund which has been highly appreciated by the experts due to its consistent performance in the past. It is among the first schemes launched by Reliance Mutual Fund which was originated in October 1995. Since inception, it has continuously provided stable returns and is one the best in its category. The ability to withstand the pleasant and unpleasant market condition has attracted many investors who have successfully fulfilled their long-term financial goal through Reliance Vision Fund. It has generated an annualised return of 18.87% since inception which proves the consistency it possesses in the returns over the long term. In the last 10 years, it has generated 10.83% annualised return, and 16.89% have been produced in 5 years. It has been unable to beat the benchmark S&P BSE 250 Large & Midcap TRI. The recent performance of the fund has been below expectations as the fund is known for performing well under the unfavourable conditions. It has shown high volatility and has even generated a downfall of 17%. Though the risk is high, it can be considered for long-term investment. (data as of 25th July 2018) About Fund Manager The fund is managed solely by Mr Ashwani Kumar who is the senior fund manager at Reliance Mutual Fund. He has been managing the fund since January 2004. Mr Kumar is a B.Sc and MBA in Finance and has abundant of experience. Before joining with Reliance Mutual Fund, he was associated with Zurich Asset Management Company. He has expertise in the equity research and development. Apart from Reliance Vision Fund, he also manages Reliance Tax Saver Fund, Reliance Capital Builder Fund, etc. Portfolio of the Fund The fund manager generally invests the equal proportion of corpus in equity instruments of large as well as mid-cap companies. Though the allocation in large-caps is slightly higher by a margin of 5-10%. The distribution depends on the trends in the market as it is a large and mid-cap fund, the fund manager has the freedom to shift the corpus and invest in the firm with fast growth and high potential. The investment style is a blend of growth and value investing. The growth-oriented instruments are analysed and are bought at a reasonable price in order to attain maximal gains. Banking and finance sector companies are the primary targets of investment followed by engineering, automotive, metals and mining, technology and manufacturing sector. SBI, Infosys, TVS Motor, Tata Motors, and Honeywell Autom are the top holders in the scheme with more than 35% holdings. (data as of 25th July 2018) The fund allows SIP as well as lumpsum investment, but the SIP is mostly preferred due to the high-risk portfolio. The fund is suitable for investors who like to sail their boat in between of large and mid-cap funds as it provides a perfect blend of both the categories. It has a fruitful long-term prospect and can be suitable for various investors. The article describes why Reliance Vision Fund is profitable by giving various details about the fund.