Objective
The objective of the Sensex plan is to replicate the composition of the sensex, with a view to endeavor to generate returns, which could approximately be the same as that of Sensex.
Scheme Snapshot
Fund Manager
Ashwani Kumar
Scheme Objective
Equity
Scheme Sub-Objective
Equity-Index
Scheme Type
Open
Min. Investment(Rs)
5000
Total Assets(Rs./Mn)
38.5
Registrars
Karvy Consultants Limited
Launch Date
29-JAN-05
Asset Allocation as on 30-Apr-07
Particulars Percentage
Equity Shares 98.25
Cash And Other Assets 1.75
Understanding the fund:
Reliance Index Fund is an open-ended Equity Index Scheme which aims to provide medium to long-term growth of capital. In comparison to actively managed funds, Reliance index fund has a lower risk-return profile.
Simply put, this fund will not turn in that high returns as a diversified equity fund would when bulls are on a rampage. At the same time, it will not be as severely hurt as the diversified equity category when stock markets tank.
Entry into the fund requires a minimum investment of Rs 5000. The fund is available for subscription at an entry load of 1%. There is no exit load. The scheme was managing assets worth Rs 38.5 mn as on April 30, 2007.
Our View
The fund being an index fund invests only in equities. And as we see the fund style it shows that the investment style is growth oriented. Thus investors who are capable of taking moderate level risk are advised to invest in this fund. But we also see that in an index fund can never do worse than the index.
So investors who are ready to take moderate risk to low level risk can invest in this scheme.
When we try to compare the performance of the fund v/s category average we see that the fund has underperformed the category average till the month of February. The ongoing monetary tightening in the economy has negative impact on the Sensex, which has resulted in the underperformance.
The objective of the Sensex plan is to replicate the composition of the sensex, with a view to endeavor to generate returns, which could approximately be the same as that of Sensex.
Scheme Snapshot
Fund Manager
Ashwani Kumar
Scheme Objective
Equity
Scheme Sub-Objective
Equity-Index
Scheme Type
Open
Min. Investment(Rs)
5000
Total Assets(Rs./Mn)
38.5
Registrars
Karvy Consultants Limited
Launch Date
29-JAN-05
Asset Allocation as on 30-Apr-07
Particulars Percentage
Equity Shares 98.25
Cash And Other Assets 1.75
Understanding the fund:
Reliance Index Fund is an open-ended Equity Index Scheme which aims to provide medium to long-term growth of capital. In comparison to actively managed funds, Reliance index fund has a lower risk-return profile.
Simply put, this fund will not turn in that high returns as a diversified equity fund would when bulls are on a rampage. At the same time, it will not be as severely hurt as the diversified equity category when stock markets tank.
Entry into the fund requires a minimum investment of Rs 5000. The fund is available for subscription at an entry load of 1%. There is no exit load. The scheme was managing assets worth Rs 38.5 mn as on April 30, 2007.
Our View
The fund being an index fund invests only in equities. And as we see the fund style it shows that the investment style is growth oriented. Thus investors who are capable of taking moderate level risk are advised to invest in this fund. But we also see that in an index fund can never do worse than the index.
So investors who are ready to take moderate risk to low level risk can invest in this scheme.
When we try to compare the performance of the fund v/s category average we see that the fund has underperformed the category average till the month of February. The ongoing monetary tightening in the economy has negative impact on the Sensex, which has resulted in the underperformance.