Reliance NRI Fund

Can you tell me about the performance of Reliance NRI Fund? How is the 'beta' factor of the fund, considering the current overheated equity market? I understand that only NRIs are eligible to apply for this fund. Does this fetch any unique benefit to the NRI applicant?
-Amlanjyoti Basu

Reliance NRI Fund is a 5-star rated, diversified equity offering with assets under management of around Rs 190 crore (as on December 31, 2007). The fund has done exceptionally well till now and has delivered an annual return of 55.35 per cent in the past three years (as on January 10, 2008).

Only NRIs are eligible to purchase units of this fund and resident Indians are prohibited from doing so. But there is no special benefit for NRIs. Most other mutual fund schemes are open for purchase by NRIs on a repatriable and non-repatriable basis.

Beta is a measure of the fund's sensitivity to market movements. It is calculated based on the trailing three-year monthly returns of the fund and the benchmark and hence can change over time. Though the beta of the fund is 0.78 for its benchmark, it may not be useful gauge to evaluate a fund. Beta is very relevant for a stock but not so for a fund. A fund's portfolio keeps changing in complexion and character making beta less relevant.