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Risk Appetite

A multi-cap fund is riskier than a large-cap fund. Pick the one that best suits your risk tolerance…

I am a little confused between DSPBR Top 100 and Reliance Equity Opportunities fund to invest in. Which is better in your opinion?
- Rita

Fund Scheme  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
DSPBR Top 100 Large Cap ***** 11.81 12.63
Reliance Equity Opportunities Multi Cap ***** 20.75 12.3
Return as on September 23, 2011, Rating as on August 2011

Both the funds that you have selected are highly rated, however the risks associated with them is different as both are amongst the best in their respective category of funds. DSPBR Top 100 is a large-cap fund which has more than 80 per cent of assets in large-cap companies over the last three years compared to Reliance Equity Opportunities, which is a multi cap fund that has between 40 to 60 per cent of assets in large-cap companies over the last three years. Relatively, a multi cap fund is risky compared to a large cap and based on your risk tolerance and comfort, you can pick either of the fund to invest in. Both are funds that should be invested with a minimum 3-5 year time frame and regularly reviewed.



This article was originally published on September 26, 2011.

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