Systematic Investment Plans (SIPs) of mutual funds are becoming increasingly popular among investors. It reduces the risk, when markets fall and helps you to average your costs.
Reliance Equity Opportunities Fund
This fund has given returns of almost 18.58 per cent, since its launch in 2005. The fund has exposure to good quality stocks like SBI, Indian Hotels, Divis Labs, HDFC Bank and Infosys. The initial investment required is Rs 5000 and thereafter you can invest in the fund with small amounts as low as Rs 500.
Under the growth plan the NAV of the fund is Rs 92.43 and under the dividend plan the fund is available at Rs 29.41. Several of the stocks in the portfolio like Indian Hotels and Divis Labs are not from the Sensex and are volatile stocks. So, to that extent returns could be volatile. The 5 year returns from the fund has also been decent at around 15 per cent. You can also stop your Reliance Mutual Fund SIP online.
Reliance Top 200 Fund
This like the Reliance Equity Opportunities Fund is an equity dominated scheme. Hence, returns can be good only when the markets perform well. However, the track record of the fund suggests that investors in the past have got decent returns in the Reliance Top 200 Fund.
The 5 year returns from the fund has been 19.12 per cent, while the 5 year returns has also been decent at 12 per cent. The company's largest holdings are in HDFC Bank, State Bank of India, Larsen and Toubro, ITC and Infosys.
Under the growth plan the fund has an NAV of Rs 92.43 and under the dividend plan the NAV is Rs 29.14. You can also cancel your Reliance Mutual Fund SIP online.
Reliance Small Cap Fund
This has been the best performing scheme from the Reliance Mutual Fund. However, we wish to emphasize that the risk always remains very high for small cap funds. Hence, if you are willing for highly volatile returns, the Reliance Small Cap Fund would be ideal for you.
The minimum SIP investment that is needed is Rs 100, after the initial investment of Rs 5,000. Reliance Small Cap Fund has given returns of 37 per cent on an average each year for the last 5 years. The three year returns have been averaging 21.47 per cent. The present NAV under the growth scheme is Rs 45.45, while under the dividend scheme the NAV is Rs 32.43. Go for this scheme, if you are willing to take a risk.
Reliance Liquidity Fund
This is for those unwilling to take a risk and looking for steady and sure returns. Investments under the scheme are made in debt and money market instruments. The fund has generated a return of 8.06 per cent in the last 5 years.
One cannot invest in this fund under SIP and have to hence look at lumpsum amounts. We are suggesting this plan for those who are not interested in equity mutual fund schemes of Reliance Mutual Fund.
The first three SIPs mentioned have an element of risk involved, while the fourth is suitable for those unwilling to take a risk. You can stop the SIP of Reliance Mutual Fund, get an online statement of the fund and also get an SIP calculator online from Reliance Mutual Fund. Do not forget the markets risks associated with mutual funds.