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NFO Update |
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Reliance Small Cap Fund
An Open ended Equity fund
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C
BUY
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Closes on 09 September 2010
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Recommendation:
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The Small Cap companies which are at present in nascent
stage have huge potentials to create enormous value to the investors at the cost
of high risk. It is relatively high risk/high return oriented fund characterized
by volatility.
Small Cap companies
have huge potential to achieve long-term growth, which may transform them to medium
to large scale business. Unitech, Pantaloon Retail (India), Educomp Solutions,
Apollo Hospitals, Zydus Wellness are the examples of the Small Cap companies
which have
emerged as Large Cap companies
over a period of time.
Small Cap Index is currently trading at
30.16% low since its all time high level as against
12.90% of Sensex. The growing
economy, low valuation, striking future momentum of Small Cap companies and the
best Fund Manager makes this theme an attractive proposition for an investor. We
recommend this fund to be part of the core portfolio and invest via
systematic investment (SIP) mode with a long term horizon.
If some would have started
SIP of Rs. 10,000 per month in Reliance Growth Fund (since inception) – a MidCap fund managed
by Mr. Sunil Singhania, it would be worth
Rs. 2.85 crores today against total investment of
Rs. 17.60 lakhs.
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Entry Load
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Nil
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Small Cap Outlook:
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Exit Load
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2% (Exit before 12 mths)
1% (Exit b/w 12 to 24 mths)
Nil (Exit after 24 mths)
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The BSE Small Cap Index comprise of
534 companies diversified across sector
20 sectors with higher growth prospects. Since inception (May, 2003), the
index has posted 30.82% CAGR, while BSE Sensex has posted 24.10% & BSE-Midcap 26.85%. In terms of valuation, there is immense
opportunity of growth as BSE SmallCap is trading at around
16.84x, while BSE Sensex at
21.61x and BSE Midcap at
19.80x. Small Caps have their footprints across all
emerging sectors of
India. Though they come at higher risk over Midcap & Largecap stocks, they do leap
at faster rate to startle the broader indices.
Fund Manager:
Mr. Singhania manages
a total corpus worth Rs.17,821 crore for 5 funds, below is the performance of the
funds handled by him.
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Minimum Investment
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Lumpsum : Rs.5,000 and multiples
of Re. 1/- thereafter
SIP : Rs.100
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Fund Manager
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Mr. Sunil Singhania
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Benchmark
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BSE Small Cap Index
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Key Highlights:
SIP is possible during NFO Period.
Perpetual SIP Facility.
Switch from Reliance Liquid Fund – Treasury Plan is possible during NFO period.
Small Cap Index is currently trading at
30.16% low since its all time high level as against
12.90% of Sensex.
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Index
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All time High
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Current Level#
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Deviation from
the Peak
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BSE MIDCAP
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10,113
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7,715
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23.71%
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BSE SENSEX
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20,873
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18,180
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12.90%
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BSE SMALLCAP
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13,975
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9,760
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30.16%
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S&P CNX Nifty
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6,288
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5,462
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13.13%
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# As on 25 August 2010
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SIP Performance: Rs. 10,000 per month Since Inception of the fund.
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Name of the Fund and its Benchmark
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Inception Date
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Total
Investment (Rs. lakhs)
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Current Value
(Rs. lakhs)
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XIRR %
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Reliance Banking Fund
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Jun-2003
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8.70
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29.30
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33.55%
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CNX Bank
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22.38
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26.05%
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Reliance Growth Fund
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Jan-1996
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17.70
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289.51
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33.68%
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BSE 100
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70.40
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17.17%
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Reliance Long Term Equity Fund
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Jan-2007
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4.40
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6.65
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24.12%
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BSE 200
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5.88
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16.66%
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Reliance Diver Power Sector Fund
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Jun-2004
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7.50
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21.90
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35.12%
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IndiaPower
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N.A.
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N.A.
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* SIP performance is considered
for the funds which are in existence since atleast last 3 yrs.
Point-to-point Return performance:
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Name of the Fund
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Corpus (Rs. Crs)
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Absolute Returns (%)
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CAGR (%)
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6 Months
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1
Year
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3 Years
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5 Years
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Reliance Banking Fund
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1,232
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43.27
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65.70
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31.31
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27.68
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Reliance Diver Power Sector Fund
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5,235
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15.45
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25.95
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23.12
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35.29
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Reliance Growth Fund
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7,758
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19.60
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39.62
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19.42
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25.20
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Reliance Infrastructure Fund
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1,858
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10.76
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16.12
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-
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-
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Reliance Long Term Equity Fund
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1,738
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28.68
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51.90
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15.10
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-
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Sensex
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12.65
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17.17
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8.27
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19.18
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Nifty
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13.31
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18.57
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9.52
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18.84
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About Fund Manager:
Mr. Sunil Singhania
holds a B.Com, CA and CFA (USA). He has total experience of 16 years in capital
markets in
India
. He is associated with Reliance Mutual Fund since 2003 and is presently. He is
the alpha generator who manages funds that yields higher returns over a longer horizon.
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Downloads:
KIM & Application Form
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Peer Performance:
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Name of the Fund
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Fund Manager
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Corpus (Rs. Crs)
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Absolute Returns
(%)*
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CAGR (%)*
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3 Months
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6 Months
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1 Year
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3 Years
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DSPBR Micro-Cap Fund
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Apoorva Shah
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351
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15.73
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39.72
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87.79
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19.26
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DSPBR Small & Mid Cap Fund
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Apoorva Shah
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951
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20.56
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29.00
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57.58
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19.40
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HSBC Small Cap Fund
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Dhimant Shah
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58
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14.62
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31.67
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64.56
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-
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Sundaram BNPP Select Small Cap Fund
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Satish Ramanathan
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399
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20.94
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25.83
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43.45
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11.93
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BSE SmallCap
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19.37
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22.29
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44.69
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9.07
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*Returns
as on 25th August 2010
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