Reliance Mutual Fund has announced a new fund offer (NFO) of the Reliance India Opportunities Fund – Series A. This close-ended scheme’s NFO has started on 7th September and will end on 21st September 2018. Being a close-ended scheme, you can only invest in this fund during the NFO period, while redemption of units will be allowed only after maturity of the scheme (1222 days from date of unit allocation).
Reliance India Opportunities Fund – Series A will use the S&P BSE 200 Index as it benchmark. As of 31st August, 2018 the S&P BSE 200 Index has yielded returns of 17.75%, 15.90% and 19.99% over the 1 year, 3 year and 5 year periods. Some of the key sectors that comprise this index include financial services (33%), information technology (11%), oil and gas (10%), FMCG (10%) and transport equipments (9%).
This close-ended equity scheme will invest between 80% to 100% of its assets in diversified equities and equity-derivatives. The remainder of assets (up to 20%) will be invested in money market and debt investments.
At an interview prior to the NFO released on Twitter, Sailesh Raj Bhan, one of the managers of this scheme and current Deputy CIO of Equity Investments and Senior Equity Fund Manager at Reliance Mutual Fund said “…..Our idea is to create a portfolio which will look at this growth at a reasonable valuation as an approach. So we will look to buy companies with strong growth prospects which are still in a reasonable price zone because their near term or recent past results have not been great…” He further clarified that “…This will be a bottom-up focused fund investing in 25-30 companies spread across market caps with an emphasis on buying growth at reasonable valuations…..”. In terms of how this bottom-up strategy will work, he said “….Today there is an opportunity to create a very high quality portfolio of businesses that are rationally valued vs. their future growth prospects, unlike participating in existing winners….”
Reliance India Opportunities Fund – Series A will be co-managed by Sailesh Raj Bhan and Kinjal Desai. Some of the leading funds they manager or co-manage currently include the Reliance Large Cap Fund, Reliance Multi Cap Fund, Reliance Japan Fund and Reliance US Equity Opportunities Fund. Among these, the Reliance Large Cap Fund and the Reliance Multi Cap Fund are among the most popular schemes offered by the fund house with AUM of Rs. 10,898 crores and Rs. 9,732 crores respectively (as of 31st July 2018).
Additional Information of Reliance India Opportunities Fund – Series A NFO:
| NFO Period | 7th September to 21st September |
| Minimum Investment | Rs. 5000 |
| Benchmark | S&P BSE 200 Index |
| Fund Manager | Sailesh Raj Bhan and Kinjal Desai |
Other Funds by Nippon India Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| Nippon India US Equity Opportunities Fund | 20.3 | 13.52 | Sectoral/Thematic Fund |
| Nippon India Index Fund Sensex Plan | 13.69 | 6.34 | Large Cap Fund |
| Nippon India Index Fund Nifty Plan | 11.8 | 127.05 | Large Cap Fund |
| Nippon India Large Cap Fund | 10.83 | 9832.83 | Large Cap Fund |
| Nippon India Banking Fund | 10.59 | 2959.26 | Sectoral/Thematic Fund |
| Nippon India Growth Fund | 10.47 | 7177.4 | Mid Cap Fund |
| Nippon India Gold Savings Fund | 10.28 | 655.99 | Gold Funds |
| Nippon India Japan Equity Fund | 10.25 | 17.58 | Sectoral/Thematic Fund |
| Nippon India Gilt Securities Fund | 10.23 | 995.98 | Gilt Fund |
| Nippon India Gilt Securities Fund Direct Defined Maturity Date-Growth | 10.23 | 995.98 | Gilt Fund |
| Nippon India Value Fund | 10.13 | 3374.75 | Value Fund |
| Nippon India Small Cap Fund | 9.9 | 7207.07 | Small Cap Fund |
| Nippon India Multi Cap Fund | 9.87 | 10053.46 | Multi Cap Fund |
| Nippon India Balanced Advantage Fund | 9.74 | 88.21 | Dynamic Asset Allocation |
| Nippon India Income Fund | 8.83 | 435.23 | Medium to Long Duration Fund |
| Nippon India Quant Fund Retail | 8.65 | 28.37 | Sectoral/Thematic Fund |
| Nippon India Banking & PSU Debt Fund | 8.5 | 4111.1 | Banking and PSU Fund |
| Nippon IndiaRetirement Fund – Income Generation Scheme Direct-Growth | 8.27 | 212.64 | Conservative Hybrid Fund |
| Nippon India Short Term Fund | 7.91 | 12068.23 | Short Duration Fund |
| Nippon India Prime Debt Fund | 7.82 | 9100.28 | Corporate Bond Fund |
{Data as on Feb 19, 2020; Source: Value Research}