Monday, May 25, 2009

Reliance Equity Fund Outperforms The Time Periods - May 25, 2009

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 88387.99 crore at end of April 2009. Reliance Equity Fund (G) an open-ended equity scheme launched in February 2006.

The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities.

The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 12.54 as on 22 May 2009.

Portfolio: The total net assets of the scheme increased by Rs 156.82 crore to Rs 1835.07 crore in April 2009.

Reliance Equity Fund (G) took fresh exposure to three stocks in April 2009. It has purchased 14.96 lakh units (1.81%) of Shriram Transport Finance Company, 10.01 lakh units (1.28%) of Hindustan Unilever and 11.83 lakh units (1.22%) of Pantaloon Retail (India) among others.

The scheme exited completely from any stocks United Spirits by selling 7.30 lakh units (2.83%), ITC by selling 18.61 lakh units (2.05%) and Grasim Industries by selling 2.02 lakh units (1.90%) among others in April 2009.

Sector-wise, the scheme took 0fresh exposure to Finance & Investments at 1.81%, Personal Care-Multinational at 1.28% and Textiles-Products at 1.22% in April 2009.

Sector-wise, the scheme exited completely from Breweries & Distilleries at 2.83%, Cigarettes at 2.05% and Diversified-Mega at 1.90% in April 2009.

The scheme had highest exposure to State Bank of India with 8.89 lakh units (6.19% of portfolio size) followed by Divis Laboratories with 12.06 lakh units (5.61%), Reliance Industries with 4.58 lakh units (4.50%) and Reliance Communication with 33.72 lakh units (3.95%) among others in April 2009.

It reduced its exposure to Divis Laboratories of India to 12.06 lakh units (by 1.17%), Oil & Natural Gas Corporation by selling 99733 units to 4.72 lakh units (by 0.43%), Cipla by selling 2.11 lakh units to 28.28 lakh units (by 0.27%) and Maruti Suzuki India by selling 6311 units to 8.12 lakh units (by 0.17%) among others in April 2009.

Sector-wise, the scheme had highest exposure to Banks-Public Sector at 8.76% (from 8.07% in March 2009), followed by Telecommunications-Service Provider at 6.46% (6.15%), Computers-Software-Large at 6.41% (5.80%) and Pharmaceuticals-Indian-Bulk Drugs at 5.61% (6.78%) among others in April 2009.

Sector wise, the scheme had reduced exposure to Pharmaceuticals-Indian-Bulk Drugs to 5.61% (by 1.17%), Oil Drilling/Allied Services to 2.23% (by 0.43%), Pharmaceuticals-Indian-Bulk Drugs & Formulation to 3.71% (by 0.27%) and Automobiles-Passenger Cars to 3.61% (by 0.17%) among others in April 2009.

Performance: The performance of scheme is benchmarked against S&P CNX Nifty. The scheme has outperformed the benchmark index over 1 month and 1 year period while underperformed 3 month and 6 month period.

The scheme has posted returns of 22.04% outperforming the S&P CNX Nifty that gained 21.77% over 1 month period ended 22 May 2009. Over 3 months period, the scheme advanced by 46.34% underperforming the S&P CNX Nifty that gained 55.03%. It fell 8.64% less that the benchmark index that declined by 14.31% over 1 year period.

No comments: