Reliance NRI Equity Fund

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Reliance NRI Equity Fund


who can invest in Reliance NRI Equity Fund, should i invest in Reliance NRI Equity


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Reliance NRI Equity Fund has given an average performance


Mutual Funds


Our recommendation for fresh investment: No

Our recommendation for existing investment: Hold

Reliance NRI Equity Fund is one of the better performing funds in its category. Don’t let the
name get you to think that this fund invests in foreign securities or is restricted to NRIs. This
fund is managed by Omprakash Kuckian who has over 18 years of experience. He has
been managing the fund from its inception in Nov 2004. Fund returns have been above
average while portfolio risk is only average. If you already hold units in this fund you can
continue to do so making sure that no more than 30% of your total investment portfolio must
be allocated to this fund. New investors can skip this one for now.
Invest for what?

You can invest in Reliance NRI Equity Fund to grow or create wealth. Do not look at making
quick bucks here. Stay invested for long term. Reliance NRI Equity Fund is suitable for
goals that is at least 5 years away from now. In case your goals are less than 5 years away,
then we advise you to look at other options.

Where does this fund invest your money?

Reliance NRI Equity Fund is a large cap fund which means your money will be invested in
stocks of large sized companies. The fund has 75% exposure to large companies and about
25% exposure to medium size companies. It invests in high growth companies primarily
drawn from the companies in the BSE 200 Index.

How has it performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2004, your value of
investments would be around Rs 3.47 lakhs. If you had invested Rs 1 lakh five years back it
would have become Rs 1.4 lakhs. The performance has been better or similar to other
mutual funds in this category. The fund has been giving at around 7% every year for those
who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Reliance NRI Equity Fund through SIP
for the past 5 years today you would have around Rs 8.85 lakhs.

How will it perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future
prospects of the Indian economy. If the Indian economy grows at 9% then the leading
companies tend to de well. When the companies do well their stock prices follows their
performance. So if you expect the economy to grow at 9% then you can expect top
performing mutual funds to give you returns in excess of 15%. We advise you to avoid too
much of star gazing and future prediction. Be reminded that equities are one of the asset
classes that have the potential to beat inflation. Your aim for core portfolio should be to
beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly.
Review the performance once a year. Too much attention is not good.

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and
especially if it is an SIP. Do not follow news channel and other experts trying to know the
right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where
you are looking at the right price. This job will be done by the mutual fund scheme manager.
If you have planned your investments and decided on the amount you want to invest do not
think further, just go ahead.

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the
markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1
year. Reliance NRI Equity Fund does not qualify for section 80C ELSS benefits.
Better alternatives for core portfolio

Canara Robeco Equity Diversified Fund

DSP BlackRock Top 100 Fund

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