Master And Student - All About Stock Markets

Reliance Regular Savings Fund is one of the many schemes from Reliance Mutual Fund, which have performed well since the last few years. The scheme is benchmarked against BSE 100, whose 5 year return is 18% whereas the fund's % year return is about 25%, which clearly exhibits its outpeformance.

Snapshot of the fund:

Reliance Regular Savings Fund is an open-ended fund whose primary objective is to seek capital appreciation and consistent returns by actively investing in equity and equity related securities. The entry load is nil and exit load is 1% if redeemed withing one year. The minimum investment is Rs.500 and SIP is available. The fund size is about 3000 cr, which is pretty much okay like any other  major schemes.

Performance:

This scheme was launched in 2005, and currently the NAV of the Growth scheme of this fund stands at Rs.30.The 5 year return is 24% p.a which is spectacular by any means. The 1 year and 3 year returns stand at 31% and 21% respectively, which speaks of it consistent performance over longer period.

Why invest in mutual funds?

As we have seen with HDFC Top 200 Fund, returns from mutual funds are consistent. For an average investor, it is a difficult task to decide which stock to buy, how much to buy and when to sell.Investing in mutual funds offer diversification to reduce risk substantially.

Though one can invest in stocks directly, after considerable research, it is not a bad idea to invest some amount in mutual funds.