Reliance Top 200 Fund: Review

Nature: Equity oriented open ended

Inception: August 2007

Assets under Management : Rs 908 crore at the end of September 2014

Fund Manager: Ashwani Kumar, Sailesh Raj Bhan

Analysis:

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Arnav Pandya

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• Reliance Top 200 Fund was earlier known as Reliance Equity Advantage Fund.The fund invests in companies whose market capitalisation is in the range of the highest and lowest market cap of the BSE 200 index. At the end of March 2013 banks had the highest allocation with a share of 16 per cent. Pharma, software and finance were the other sectors with a significant share in the portfolio. In terms of individual holdings ICICI Bank was the top stock with Divis Labs, Infosys, SBI, L&T, Bharti Airtel, Shoppers Stop and Ranbaxy being some other ones. The portfolio turnover ratio of the fund was just short of 1 times and the BSE 200 was the benchmark index for the fund and it was an outperformer over the one year time period ended March 2013.

• Six months later software had jumped to the top spot on the sector charts with a 17 per cent share while banks, Pharma and petroleum products were some other big areas with exposure. Infosys with a 5 per cent share was the top company in the portfolio. Bharti Airtel, Divis Labs, HDFC, HDFC bank, TCS, Reliance Industries, L&T and Dish TV were some other leading holdings present. The fund was a slight underperformer in the one year period but an outperformer over the two year time period ended September 2013.

• At the end of February 2014 the fund had maintained its highest exposure to the software sector. Banks, petroleum products and auto were some of the other leading areas present. The portfolio turnover ratio was now high at 1.45 times. Divis labs was the top individual holding with TCS, L&T, Infosys, Bharat Forge, Reliance Industries, HDFC Bank and ICICI Bank being some leading holdings. The fund was an even performer over the one year period and an outperformer over the two year time period ended December 2013.

• The portfolio had the highest exposure to banks at 21 per cent of the total portfolio at the end of September 2014. Software, auto and Pharma were the other areas with a significant share in the portfolio. HDFC bank was the top individual holding with a share of over 7 per cent. ICICI Bank, Infosys, Divis Labs, Tata Motors, Maruti Suzuki, L&T, Bharat Forge and SBI were some of the other leading stocks present. The portfolio turnover ratio was 1.16 times and the fund was an huge outperformer over the one and three year time periods ended September 2014.

• The fund has been improving its performance in recent times and an investor looking for a wider exposure to the equity markets can consider this as a part of their portfolio choice if they have a time horizon of 3 years or more.