Six months ago, I invested in Reliance Equity Advantage and Reliance Vision. I would like to switch from both these funds to Reliance Banking. Is this a good idea?
Reliance Vision is a 4-star rated, well diversified equity fund with a good performance history. It has delivered 53 per cent annually in the past five years (as on February 12, 2008). Remain invested in this fund with a long term view. Reliance Equity Advantage, launched in July 2007, has performed poorly. Reliance Banking is a wise choice if you want to invest in the banking sector. The fund generated a 77 per cent return in 2007. Being a sector fund, its performance is closely linked to the banking sector. So it is a riskier proposition than an equity diversified fund. If you have that little extra risk taking capacity, go ahead and invest in Reliance Banking (preferably through an SIP).