- Editor Rating
- Rated 4 stars
- Reliance Regular Savings Balanced Fund
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Reliance Regular Savings Balanced Fund seeks to generate capital growth and consistent returns via a portfolio with major investment in equities and minor investments in money market and debt instruments.
Up to 50 percent of the fund’s assets are in equity and equity linked securities, while up to 25 percent of the portfolio investments are in debt and money market instruments with one to seven years of average maturity term.
Presented below is a comprehensive review of this balanced fund which will provide you with all the relevant information that you need to make a better choice about whether to buy, sell, or hold this fund.
Basic costs and other information:
Reliance Regular Savings Balanced Fund was launched on Jun 08, 2005. It thus has been providing regular returns for more than 10 years and has remained popular with investors. As of Jun 30, 2017, this balanced fund has assets of INR 6,832 crores. The minimum required investment for lump sum investment route is INR 500, while it is INR 100 in case of SIP or Systematic Investment Planning method.
The expense ratio as of Jun 30, 2017 is 1.99 percent. If investors redeem their fund investment within a period of one year or 365 days of holding it, then the exit load is 1%.
Amit Tripathi has been the fund manager since August 2010. He was joined by Sanjay Parekh in April 2012. Mr. Tripathi graduated with honors in B.Com and also has a PGDM degree. Before joining Reliance Mutual Fund, he worked at companies like Sun Invest Associates Ltd., New India Assurance Co. Ltd., and CFS Financial Services Pvt. Ltd. Mr. Parekh also graduated with honors in B.Com and is a Chartered Accountant. Before his job at Reliance Mutual Fund, he worked at Ask Investments Managers, ICICI Prudential MF, Sunidhi Consultancy Services, Prabhudas Lilladher, Capital Market Magazine, and Insight Asset Management.
Allocation of the fund
As of Jun 30, 2017, the fund’s allocation stands as 66.80 percent in equities, 28.71% in debt, 2.46% in Mutual Funds, 1.10% in Cash/Call, and 0.63% in money market securities.
As of Jun 30, 2017, the top 6 sectors that the fund’s portfolio focuses on include Banking/Finance (24.28%), Automotive (8.38%), Metals & Mining (7.24%), Conglomerates (5.46%), Oil & Gas (4.81%), and Engineering (3.92%).
As of Jun 30, 2017, the top 6 stocks that make up the fund portfolio include HDFC Bank (7.90%), Grasim Industries (5.46%), Reliance Industries (3.77%), Infosys (3.30%), ICICI Bank (3.06%), and IndusInd Bank (3.00%).
As of Aug 04, 2017, Reliance Regular Savings Balanced Fund has produced a 15.22 percent return per annum on investment in the last 10-year period. This shows that the fund beat the category average of 10.69 percent for the same period. From the time of launch the fund has delivered 14.66 percent per annum returns.
In the past 1, 3, and 5 years, the fund has shown 20.75, 15.74, and 18.59 percent returns per annum. Thus the 3-year returns of the fund are nearly 2% points better than the category returns. On a 5-year period, the outperformance margins of the fund vis-à-vis the category is also nearly 2% points better.
If the topmost holdings are taken into consideration, then it can be said that Reliance Regular Savings Balanced Fund heavily favors or tilts towards the banking and finance sector. As per data of the past 3 years, the fund’s standard deviation, i.e., the volatility of the returns of the fund vis-à-vis its average, is 11.49% as of 31st July 2017. This is higher than the category average which is 9.70% for the same period.
When the returns of Reliance Regular Savings Balanced Fund are compared with its peers during the past 5 year period, then at 18.59 percent returns it has not done as well as other similar funds like HDFC Balanced Fund (19.72%); HDFC Childrens Gift Fund – Investment Plan (19.19%); ICICI Prudential Balanced Fund (20.24%); and L&T India Prudence Fund (20.03%). However, when looking at the fund’s returns from a 3-year perspective, then other funds in the category show returns which are similar or 1 percentage point better than Reliance Regular Savings Balanced Fund returns of 15.74%.
From the time of its launch in 2005, Reliance Regular Savings Balanced Fund has regularly provided good performance. Its track record over the past decade is both solid and powerful, in absolute value as well as relative to the benchmark. One should not forget the fact that the fund is from one of the top Asset Management Companies in India, namely, Reliance Mutual Fund. It is one of the best performing balanced mutual funds and is really popular with investors.
The assets of Reliance Regular Savings Balanced Fund are dynamically allocated between equity and equity related securities and debt. This provides a distinctive mix of increased potential yields from equities and low-risk consistent gains from fixed-income asset class. Typically, the well-managed portfolio consists of about 65 to 75 percent of the investments in diverse equities while the remainder of the assets are poured into government bonds and other fixed income instruments. Such a balanced approach and diversified investments helps minimize credit as well as counter the effects of changes in interest rate. This kind of clever investment has allowed the fund to outpace the benchmark for most part of the last 10 years.
Reliance Regular Savings Balanced Fund is a good choice for those seeking consistent income for investments with moderate risk; it is especially ideal for those investors who have retired.
Should I sell, buy, or hold?
Reliance Regular Savings Balanced Fund is one of the top funds in its category. It has always had an edge over its peers and competitors from the time it was launched. The performance across different returns and risk parameters has also been remarkable. The solid and consistent performance over the past decade makes us give the fund a big thumbs-up. Our suggestion to all investors is – “Buy.”
*Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.
Good Fund Manager
Excellent Fund House
Excellent Fund Size
Low Expense Ratio