Why Reliance Low Duration Fund is the Best for the First Time Investors?

Demonetisation was a strong move made by the government. In the hope catching the black money and infusing the same to the economy, the nation was put to an economic standstill for months. The bank interest rates tumbled and the people were left with meagre returns. This also didn’t spare the money market and the investors were rendered in a rather confusing situation as how to move ahead with their investments. In such situations, the experts were left with no advice but to ask the investors to invest in Reliance Low Duration Fund. An ultra-short term debt fund, it is a rich source of adding diversification to the portfolio on top of good returns, lower risks and high liquidity factor. Plus, it is a boon for the first time investors the reason of which will be discussed later in this article. An Overview Reliance Low Duration Fund is a Debt mutual fund falling in the ultra-short term category. These funds are a superior alternative to bank fixed deposits in terms of returns, which are generally higher than 10% on account of the last three years performance, whereas the bank FD’s provide utmost 6.5% returns. Further, ultra-short term debt funds have higher liquidity and help better with the investors’ tax intricacies. All these features make Reliance Low Duration Fund (G) a superb choice for the investors who are struggling with low returns, or are fenced with difficulties in proceeding for a good yield. Further, it is also a great means to achieve the short-term objectives that are mapped to be earned within a period of 3 months or even less in some cases. What do the Experts Say? After the ‘Great Depression of 2008’ and other significant economic reforms such as the demonetisation, there have been stark changes in the market functionalities. This led to the need of emergence of stronger fund that could bear the weight of such tough situations, and still function properly to fetch a good yield for their patrons. Thankfully, India is a hub for some of the best asset management companies in the world out of which, Reliance Mutual Fund is one of the solid examples to be given. Reliance Low Duration Fund was launched almost a year and a half before the depression of 2008. Being one of the handful funds that could fight away market adversities and still fetch returns for the investors, it instantly caught the attention of the experts and industry reviewers. According to them, investing in this fund is the best ‘first step’ taken in the process of Equity investments or even any other type of future investments. Further, their advices extended to even saying that those who do not have any prior experience of investing in mutual funds, or are extremely risk averse and do not want to get exposed to the volatility, this fund fills in superbly. They will continue getting higher returns than their banks fixed deposits and can eventually diversify their investments with time and maturity. Other Reasons to Invest Though the experts’ words are taken as the ‘Holy Grail for investing’, but it’s always better to have things audited from different perspective too. Thus, the following reasons will further boost your confidence to invest in Reliance Low Duration Fund (Growth): -

• Low Maturity Period Being an ultra-short term debt fund, Reliance Low Duration Fund is blessed with a very low maturity period, which is presently running at 3 months. This way, you could get all your short-term objectives and needs fulfilled effectively and efficiently.
• Higher Returns The past performance of this fund is fantastic, with an annual average yield till date standing at 8.16%. Also, the past five year returns yielded by this fund have beaten the benchmark returns (4.89%) by a hefty margin, thus making it an ace fund in the category in terms of performance yield.
• Gigantic Size Reliance Low Duration Fund – Regular Plan (Growth) handles one of the largest asset base in the regime of Debt funds, with its current value as of 30th April, 2018 standing at Rs. 16,631 crore. This ultimately testifies the large number of people who have put their trust in this fund, in addition to declaring its strength in the market.

So, if you have a plan to invest in mutual funds, especially when you are a newcomer, then starting with Reliance Low Duration Fund will be the best move that you could make. Consult your financial advisor today on how to make the best investment plan for a secured future. This article deals with the important points regarding an investment in Reliance Low Duration Fund (G).