Reliance Mutual Fund does not have just one reason to celebrate, crossing the Rs 1 lakh crore figure mark in its average assets under management (AAUM) figure, it also is cheering the fact that it owns the biggest equity fund of them all.
Reliance Diversified Power Sector Retail, at the end of May 2009, is still the largest of all equity funds. The behemoth saw its AAUM grow to Rs 4,489 crore during the month, rising close to 17.8 per cent over its AAUM figure in April.
The fund, in the month of May, turned in 33.79 per cent returns compared to 30.56 per cent return by the equity diversified category as a whole. Overall, this year the fund has till date (June 3, 2009) given a return of 56.38 per cent compared to its rather dismal return of -50.39 per cent in 2008.
The fund was launched way back in April 2004 to take advantage of power sector reforms. But though these sector-specific reforms never materialized, the fund rode the infrastructure boom, to topple another of its own funds, Reliance Growth, form its perch at the top.
However, by our estimates, the fund’s assets are lower than what should have been the case without any redemptions, which suggests investors in the fund are booking profits on their investments.
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