The past month was not very good for the markets and we saw a lot of people pulling out their investments from the mutual funds. However, the BSE Sensex are back in the 19000 zone amid some good news – both domestic and international. Both Goldman Sach and Moody rated India as stable, Government have passed out of the FDI crisis and stability over European crisis have given a boost to the share market. All these may induce the Government to continue with it’s financial reforms in the future.
So after a long gap, here I am out with my latest pick here which is Reliance Banking Retail.
Here are the facts and figures:
Reliance Banking Retail Growth – Key Facts
|Fund Category / Type||Equity: Banking / Open-Ended|
|Fund Managers||Sanjay Parekh (Since April, 2012) & Shrey Loonker (Since Sep., 2010)|
|Fund Objective||The fund aims to generate consistent returns by investing in equity/ equity related or fixed income securities of companies belonging to the Banking sector. The fund follows an active strategy of management with endeavor to generate alpha and outperform the Banking Index.|
|Minimum Investment||Rs. 5000/-|
|Minimum Additional/SIP Amount||Rs. 1000/- or Rs. 100 for SIP|
|Exit Load||1% for redemption within 365 days.|
|Benchmark Index||CNX Bank|
|Sharpe Ratio / Alpha / Beta / Expense Ratio||0.43 / 2.88 / 0..93 / 1.93|
|Returns (%) 1 year/ 3 years / 5 years||29.59 / 12.33 / 11.05|
|Category Returns (%) 1 year/ 3 years / 5 years||24.25 / 7.72 / 4.87|
|Latest NAV (03/12/2012)||Rs. 114.58|
|Ratings – valueresearchonline||5 Star|
Here are my reasons for the recommendation:
- Reliance Banking Retail Growth fund has outperformed category returns consistently.
- Reliance Banking Retail Growth fund is the best performing banking fund among it’s peers.
- Opportunities in the banking industry is huge and the fund has exposure to some good private sector banks and NBFCs.
- Financial reform from the Government will go favorable for the banking sector in the near future.
If you are looking into taking a bit of a risk and invest in a sectoral fund, you will not be disappointed with Reliance Banking Retail Growth – that’s off-course my independent view. What’s your’s?