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Fund Pick: Reliance Growth Fund

Reliance Growth Fund was launched as a seven-year close-ended scheme and was converted into an open-ended fund in September 1999. The fund is available at an entry load of 1.5 per cent. The fund has declared March 21, 2000 as the record date for the purposes of dividend distribution.

Reliance Growth Fund has given an annualised return of 38.6 per cent since its launch with a large part of the gains being in the calendar 1999, when it was up 198 per cent.

Launched in September 1995, when the markets were in a strong bear grip, the fund for long had a sizeable allocation to debt. The strategy worked well in its favour enabling it to comfortably weather the bearish phase dipping far less than the markets. But, this resulted in the fund trailing the indices during the rising markets. The fund has gradually increased its equity exposure from a low of 35 per cent in March 1998 to 76 per cent in September 1998 and is almost fully invested in equities now.

The portfolio of the fund has over 90 stocks spread widely across sectors. It had a mere 16 per cent of its corpus in software till November 1999. Hence, despite the good performance figures, the fund has lagged behind its aggressive peers. However over the past quarter, the fund has significantly increased its exposure in infotech sector with a 40 per cent weightage.

But the fund has aggressive positions in relatively unheard of infotech stocks. It also has positions in pharma (8.8%), consumer non-durables (4.2%), diversified (5.5%) and shipping (4.7%).

Based on its current portfolio, Reliance Growth Fund is a high-risk, high-reward fund. The fund will gain significantly if the current boom is sustained. However, in case of a market downturn, the fund could get hurt badly. The fund is suited for investors seeking a short-term boom ride.

Fund Basics
Objective	Size (Rs cr)	NAV (Rs): 14/3/2000	Exit Price	Entry Price	Total Returns
Growth	68.6	42.90	42.90	43.54	38.6%
Benchmark Comparisons (%)					29/2/2000
	1M	3M	6M	1Yr	3Yr
Fund	10.93	56.52	93.00	178.29	59.96
Sensex	2.08	17.41	11.83	60.22	14.26
Nat. Index	11.52	46.89	50.80	118.54	27.62
Obj. Avg.	7.53	40.12	53.46	129.90	36.68
Top Holdings (1/2/2000)					Net Assets (%)
Fortune Informatics					10.81
Compucom Software					7.77
Peerless Shipping					4.71
Reliance Industries					4.42
Aurobindo Pharma					3.81
KLG Systel					3.04
CyberTech					2.56
Dredging Corporation					2.46
Silverline					2.43
TISCO					2.26
Ranbaxy					2.12
Godfrey Phillips					2.06
Logix Micro					2.04
Samtel Colour					2.00
Shree Rama Multi-tech					1.90
Odyssey Technologies					1.74
Moser Baer					1.61
Digital					1.50
CMC					1.46
Cummins					1.37

Source: Value Research

Mutual Funds

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