I invested in Reliance Vision Fund (dividend option) over the last 18 months. I noticed that the recent NAVs are not matching up with other funds of the same category. Should I stay invested or opt out for any alternative fund?
- Shirish Deshpande
Reliance Vision is well diversified equity fund with a brilliant track record. The fund was launched in October 1995 and has delivered a compounded annualised growth rate (CAGR) of 60.12 per cent in the past five years (as on January 10, 2008).
As stated in its mandate, the fund invests predominantly in large-cap stocks. As per the December portfolio, it had almost 68 per cent in large caps. Obviously, in an environment where mid- or small-cap stocks are being favoured, this fund's NAV will not rise as fast as those with a relatively smaller large-cap exposure.
The fund was assigned a five-star rating in October 2002, but was downgraded to four stars in September 2007. Nevertheless, it still remains a compelling option for investors who prefer large-cap oriented funds.
Though the fund did not deliver huge returns in 2007, it has still managed to match the category average. Do not sell a fund just by seeing its short term performance. You should continue to remain invested in the fund
This article was originally published on February 06, 2008.
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