Buying Growth At Fair Valuations

Reliance Top 200 Fund

Reliance Top 200 Fund was launched in August 2007, amidst ominously high valuations and hushed talk of an impending stock market bubble. The pure carnage that followed a few months later is part of investment folklore. The unfortunately timed launch has led to the fund displaying an unenviable “since inception” return of just 9.58 per cent per annum; this does little justice to what actually is a high quality, well managed equity fund that is highly recommended for risk-taking investors with a time horizon of five to seven years.

The fund’s focus is on identifying growth opportunities at reasonable valuations, and relative cross sector valuation is used as an important tool in deciding portfolio allocations.

The fund also makes a significant quantum of sector calls based on cross sectoral value divergence. Allocations to potentially high growth midcaps with leadership qualities and sustainable competitive advantages are the key alpha generation strategies adopted by the fund.

Reliance Top 200 Fund prides itself in being ‘forward thinking’ in terms of its ability to identify future trends, and in its innate ability to stay ahead of large market shifts to capture sustainable alpha. In the recent past, exposures to themes like oil & gas, hospitality and banking segments have played out well and contributed positively to the fund’s returns. Some of these sectors were not in the limelight till few quarters back.

Ideally Suited For…
Individuals with high risk appetites and time horizons exceeding five to seven years, or investors looking to achieve their long-term financial goals using SIP’s (Systematic Investment Plans).

Why Invest Here in 2017?
Reliance Top 200 Fund is focused on domestic recovery themes and growth opportunities, with a focus on good quality businesses supported by higher growth possibilities. Volatile markets could allow the fund to pick up quality stocks at reasonable valuations in 2017, which, in the long run, bodes well for investors looking to create wealth over a five year plus time horizon.