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On Top, but not Lonely

Reliance Growth’s claim of being the first fund to cross Rs 500 in NAV is not quite true...

In December 2012, a single unit of Reliance Growth (Growth Plan) crossed Rs 500 in NAV, prompting the fund house to claim that it is the first and the only fund house to achieve such a feat. While it is true that the fund’s NAV is highest at the moment, the claim of being the first one to cross Rs 500 in NAV is not true. There are 4 funds whose NAV would have crossed Rs 500 mark during the bull run of 2004-07 if adjusted for dividends, bonuses and rights issue declared in their early years. Take for instance, UTI Mastershare: its adjusted NAV would have crossed Rs 500 in 2006 as would have HDFC Taxsaver’s in January 2007. As investors, you should look at consistent returns by a fund than a high NAV as an investment barometer.