Mutual funds have become quite popular for investment in recent days. These funds, however, come with certain risk factors. There are three types of mutual funds depending on the risk factor – high risk, medium risk, and low risk. Medium-risk mutual funds come with moderate risk.
Reliance Mutual Fund, also known as Reliance MF, is a mutual fund under the parent company Reliance – Anil DhirubhaiAmbani group. The mutual fund is one of the fastest growing ones in India. It is present in 159 cities across the country. Reliance MF has several medium-risk mutual funds. Let us check some of them in detail.
Three Medium-risk Reliance Mutual Funds
Three medium-risk Reliance MF funds are as follows:
Reliance Large Cap Fund:
In a large-cap fund, one must invest a larger proportion of their investment in companies that have a huge market capitalization. These funds have a lower risk factor when compared to small-cap or mid-cap mutual funds.
These funds offer much better capital appreciation over the long term. Reliance large-cap funds have given 17% CAGR for 10 years and 18% CAGR for 5 years and at the same time, it has maintained very good consistency. The risk analysis is moderate with a standard deviation of 1561. This fund is managed by Sailesh Raj Bhan.
Reliance Equity Hybrid Fund:
Equity hybrid funds invest in both debt/bonds and stocks. However, the primary focus stays on stocks. Around 65%-80% of the total investment is invested in stocks whereas the rest is invested in bonds. The fund size is Rs. 11257.05 crores as of now. The risk factor is medium to moderately high. The expense ratio – which is the annual fee you pay the fund to manage your money – is 1.77%.
Reliance MF equity hybrid fund has given 16% CAGR for 5 years and 17% CAGR for 10 years. Out of 10 years fund has performed the index in 8 years and that makes this fund quite impressive and reliable. This fund is for those who want to take a lower risk but wants return rates similar to large-cap mutual funds. This type of fund is very much suitable for volatile conditions or for those who want stable returns. The fund ratios are lower than the benchmark that shows fund can outperform and can give better result in future. The fund is managed by Mr Amit Tripathi and Mr Sanjay Parekh.
Reliance Arbitrage Fund:
Another medium-risk mutual fund from Reliance MF is Reliance Arbitrage Fund. In this type of fund, money gets invested in both bonds and stocks. Taking an arbitrage position is the main focus of this fund. This, in turn, ensures your investment does not get affected by any changes in the stock price. The fund generates a fixed return over a period of time from arbitrage available in prices of stocks. It has a fund size of Rs. 8534.74 crores. The risk factor stays around medium to moderately low in this mutual fund.