Sometime back, Reliance Equity Opportunity Fund was rated 5-Star. Now suddenly I notice that it is ‘Not Rated”. How come this change and what does it mean?
-Narender Kumar
Reliance Equity Opportunities continues to retain its 5-star rating. It is the direct plan of the scheme which is not rated. Direct plans were launched in January this year and will not be rated until they complete 3-years.
We expect Direct plans to perform better than the regular plan as the underlying assets and investment strategy would remain same as the underlying scheme. Instead these schemes would have a lower expense ratio. So you have nothing to worry about and can continue investing as earlier.
This article was originally published on June 07, 2013.