A look at 3 equity funds from the Reliance stable

By Himanshu Srivastava |  09-07-19 | 
 
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About the Author
Himanshu Srivastava is a Research Analyst with Morningstar. He would like to hear from you, but cannot give financial advice.

Recently, Nippon Life Insurance of Japan announced through a press release on May 23, 2019, that it has signed binding definitive agreements with Reliance Capital Ltd to increase its stake in Reliance Nippon Life Asset Management Ltd to 75%. Both partners currently hold 42.88% each in the company, while the rest is with public shareholders.

In our view, it is not as sharp a break as it may appear. Nippon Life Insurance is one of the largest life insurance companies in Japan, managing assets over $700 billion. While Nippon Life Insurance at present does not have much of an involvement in the fund management process and investment decision-making, it brings in extensive experience in risk management and focuses closely on corporate-governance factors; this would continue to be advantageous for the investment team. Hence, we believe that the change in stewardship here will not have any adverse impact on the funds.

As of now, fundamental attributes stay intact. Currently, the fund house has a Neutral rating on the Parent Pillar.

Reliance Growth

  • Star Rating: 2 stars
  • Analyst Rating: Neutral
  • Category: Mid Cap
  • Date of Analysis: June 2019
  • Fund Manager: Manish Gunwani
  • 3-year Performance: 9.89% (1st quartile)
  • 5-year Performance: 10.92% (3rd quartile)
  • Equity Holdings: 76
  • Top Holdings: Varun Beverages is the largest holding with a portfolio weight of 4.50%. All other stocks have an exposure less than 3%. (May portfolio)

Read the analyst view here

Reliance Large Cap

  • Star Rating: 4 stars
  • Analyst Rating: Silver
  • Category: Large Cap
  • Date of Analysis: December 2018
  • Fund Manager: Sailesh Raj Bhan
  • 3-year Performance: 13.62% (1st quartile)
  • 5-year Performance: 11.96% (1st quartile)
  • Equity Holdings: 46
  • Top Holdings: SBI is the largest holding with a portfolio weight of 9.90%. Other than that, only 2 stocks have an exposure above 5% - ICICI Bank and L&T. (May portfolio)

Read the analyst view here

Reliance Multi Cap
  • Star Rating: 4 stars
  • Analyst Rating: Silver
  • Category: Multi Cap
  • Date of Analysis: December 2018
  • Fund Manager: Sailesh Raj Bhan
  • 3-year Performance: 10.83% (2nd quartile)
  • 5-year Performance: 9.88% (3rd quartile)
  • Equity Holdings: 52
  • Top Holdings: SBI is the largest holding with a portfolio weight of 5.56%. Other than that, 4 stocks have an exposure above 5% - Axis Bank, Indian Hotels, ICICI Bank and L&T. (May portfolio)

Read the analyst view here

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Mukund Pawar
Sep 13 2019 03:44 PM
Interesting facts about the three Reliance MF schemes.
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