Fund Outperforms The Sensex Over All Assets - Dec 03, 2008

Background: Reliance Capital Limited is the sponsor of Reliance Capital Assets Management Ltd set up in June 1995. Reliance Capital Ltd. is a member of the Reliance Group and has been promoted by Reliance Industries Limited (RIL), one of India's largest private sector enterprises. The fund house manages assets worth Rs 67815.86 crore at end of November 2008.

Reliance Growth Fund (G) an open-ended equity scheme launched in September 1995. The investment objective of the scheme is to achieve long-term growth of capital through a research based investment approach. The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 195.08 as on 2 December 2008.

Portfolio: The total net assets of the scheme increased by Rs 958.92 crore to Rs 3377.23 crore in October 2008.Reliance Growth Fund (G) took fresh exposure to three stocks in October 2008. The scheme purchased 11.09 lakh units (4.54%) of Infosys Technologies, 45.00 lakh units (2.20%) of EID Parry (India) and 56.03 lakh units (1.13%) of Cambridge Solutions in October 2008.

The scheme completely exited from Bombay Dyeing & Manufacturing Company by selling 14.00 lakh units (1.20%), AIA Engineering by selling 3.53 lakh units (1.10%) and Gujarat State Fertilizers & Chemicals by selling 39.92 lakh units in October 2008.Sector-wise, the scheme took fresh exposure in Sugar at 2.2% and Computers - Software - Medium / Small at 1.13% in October 2008.Sector-wise, the scheme exited completely from Fertilizers at 1.09% in October 2008.

The scheme had highest exposure to Divis Laboratories with 15.58 lakh units (5.06% of portfolio size) followed by Lupin with 17.85 lakh units (3.50%), Reliance Industries with 8.40 lakh units (3.41%) and Bank of Baroda with 42.19 lakh units (3.02%) among others in October 2008.

It reduced its exposure to Jindal Steel & Power by selling 6898 units to 9.05 lakh units(by 0.53%), Shiv-Vani Oil & Gas Exploration Services by selling 10,569 to 16.39 lakh units (by 0.53%), Jindal Saw to 25.54 lakh units (by 0.49%) and Sintex Industries to 40.47 lakh units (by 0.39%) among others in October 2008.

Sector-wise, the scheme had highest exposure to Pharmaceuticals - Indian - Bulk Drugs at 8.56% (from 7.64% in September 2008), followed by Computers - Software – Large at 6.19% (1.45%) Banks - Public Sector at 4.40% (4.35%) and Telecommunications - Service Provider at 3.85% (3.34%) among others in October 2008.

Sector wise, the scheme had reduced exposure to Diversified – Large to 2.88% (by 1.60%), Steel - Sponge Iron to 2.13% (by 0.53%) and Oil Drilling / Allied Services to 1.40% (by 0.53%) among others in August 2008.The scheme underperformed the category average over most of the time periods except since inception period. It has outperformed the Sensex over all the time periods.

Over three-month period ended as on 2 December 2008, the scheme has posted a negative return of 38.07% underperforming the category average that has posted a negative return of 37.33%. It outperformed the Sensex that posted return of 41.93% during the same period.Since inception, the scheme posted 1873.34% returns outperforming the category average of 61.74%.