- Editor Rating
- Rated 3 stars
- Reliance Equity Opportunities Fund
- Reviewed by:
- Published on:
- Last modified:
Reliance Equity Opportunities Fund is an equity-based mid cap fund with 99.43 percent allocation in equities and the rest in debt. Let us know more about the fund, its portfolio, its performance and decide if it is right to buy, hold or sell it.
Basic information and costs
The fund was launched on March 28, 2005. The AUM (Assets Under Management) size of Reliance Equity Opps Fund as on June 30, 2016 is Rs. 10,840 crore. The minimum investment is Rs. 5000 while the minimum SIP is Rs.100. The expense ratio is 1.98 percent and there is an exit load of 1 percent if you redeem the fund before 365 days. The fund manager is Sailesh Raj Bhan.
As per the data available in June 2016, the top 5 sectors that Reliance Equity Opportunities Fund invests are Banking and Financials (26.22 percent), services (19.42 percent), engineering (16.73 percent), healthcare (8.62 percent) and automobile (6.04 percent).
The top holdings in its portfolio are State Bank of India (6.86 percent), Indian Hotels Co. Ltd (5.73 percent), ICICI Bank (5.41 percent), HDFC (5.40 percent) and Larsen & Tourbo (4.14 percent).
The return since launch has been at 19.30 percent. From a ten-year perspective, Reliance Equity Opportunities Fund at 16.43 percent has beaten the S&P BSE 100 benchmark and category average which is 10.83 and 15.89 respectively.
In a 5 and 3-year period, the fund has given returns at 15.90 and 25.51 percent beating the benchmark which stood at 10.96 and 16.35 percent respectively. The fund gave negative returns in the past one year at – 4.71 compared to the benchmark of 2.00.
In fact, Reliance Equity Opportunities Fund has been delivering lesser returns than the category average which was 3.29, 34.40 and 19.19 in a 1, 3 and 5-year period respectively.
[ctt template=”1″ link=”Cjc5s” via=”no” ]Reliance Equity Opportunities Fund – Sell and replace for better portfolio return.[/ctt]
High number of holdings in the banking sector burgeoned by non-performing assets has led to the fund not doing as well as its peers. When you compare Reliance Equity Opps to its peers, you will find that there are far better performers in its category, like HDFC Mid Cap Opportunities Fund, BNP Paribas Mid Cap Fund, UTI Mid Cap, JP Morgan India Mid and Small Cap Fund. For instance, HDFC Mid Cap Opportunities Fund has given returns to the tune of 8.30 percent (1 year), 38.46 percent (3 years) and 21.97 percent (5 years), while UTI Mid Cap has given 2.62 percent (1 year), 42.85 percent (3 years) and 23.01 (5 years).
Should I buy, sell or hold?
Since the fund is performing below average, it is better to latch onto better picks. Our recommendation – Sell.
Excellent Fund Size
Good Fund house
Decent Expense Ratio
Average Fund Manager