I have one specific query regarding one Reliance Equity Opportunities Fund(G). The fund is not giving returns from the last 2 years. What is your view on this fund. Should we withdraw investor's money in it or continue for sometime?
The long term performance of this fund is very good, if you consider the performance of this fund over 5,10 years and since inception.
It has comfortably beaten the benchmark and category returns over these periods. Even for 3 years period it has beaten the benchmark returns with a good margin.
However, in the last couple of years the fund performance was not on expected lines and it failed to match the performance of the peer group funds. The category of the fund is multi-cap / diversified and based on that the fund invests across sector and market caps of those industries which will benefit from the Government's ongoing economic reforms, FDI reforms and infrastructural developments etc. It seems, that the theme might take some more time to play out and thus there is a temporary lag in the short term performance.
Therefore, for those of your investors who have a long term investment horizon may remain invested in the fund in order to reap the true benefits from the fund in future.
However, in case of investors who do not want to wait much longer or pay a little safer, you might suggest them to switch to Reliance Top 200 Fund. Reliance Top 200 Fund is one of the best & top performing large cap funds and may be a suitable choice for investors with slightly less risk taking appetite.
Hope the above helps! Thanks for writing to Advisorkhoj : )
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