3 Reasons Why Reliance Mutual Fund Has The Potential To Outperform Most Mutual Fund Houses

reliance mutual fund outperform mutual funds investments returns

Investors today continue to enjoy a plethora of tailored options in the mutual fund market. Consequently, they’re being treated to the prospects of higher returns, increased flexibility in terms of tenure and portfolio diversification, and tax deductions. While there are certainly investments out there safer than mutual funds, MFs are a more compelling option than ever. Several fund houses - like HDFC, Reliance, and SBI, amongst others, have been leading the mutual fund market with an assortment of products to attract individual investors. In this post, let's take a closer look at Reliance Mutual Fund, its success so far, and the top three reasons its offerings have the potential to outperform all others in the market. 

1. Reliance Mutual Funds: The legacy, Lineage And Leverage 

Reliance Mutual Fund was incorporated in 1995 and is amongst the fastest-growing mutual funds in India. It has its presence in 160 cities across the country. A whopping 200 schemes are listed under Reliance Mutual Funds, and about 800 mutual fund options are available for investors to choose from. 

The company has earned the trust of the international market as well. Designated Investors service centers are in 160 locations across the country, along with Singapore, Mauritius, and the United Kingdom. They have one of the widest distribution networks in the country including IFAs, Banks and National Distributors. 

A closer look at the leadership team behind Reliance Mutual Fund reveals an immense years of cumulative experience. About 40% of the team has spent over 5 years at the organisation, while 5% team have been a part of the fund house since the past ten years. Another interesting statistic - more than 80% of the management team is homegrown. With an eclectic mix of resource manpower and innovation, a comfortable level of credibility and background is assured. It’s natural that investors would flock to an option with a reputed history and legacy. 

2. A Leading Mutual Fund House 

Reliance Mutual Fund isn’t all about the past though. Its current numbers are solid too. Not only is it amongst India’s leading mutual funds, it’s also one of the fastest growing. These claims can be verified by having a closer look at: 

- Its presence spread over hundreds of cities across India, 
- Relative stability in the NAV (Net Asset Value) of its scheme, as well as 
- The consistent growth its schemes have exhibited 

This is in part due to a strong financial backing from Reliance Capital Limited. Reliance Mutual Fund (RMF) is one of India's leading mutual funds, with Average Assets Under Management (AAUM) of Rs 2,22,575.73 Crores​​ ​ (April 2019 - June 2019 QAAUM) and 88.65 lakhs folios (as on​ June 30, 2019​​). 

Competing in a growing market with some of the best mutual funds in India, it provides investors with innovative schemes and a well-rounded product portfolio. It deals in five classes of Mutual Funds: 

1. Equity Funds 
2. Debt Funds 
3. Retirement Funds 
4. Gold Funds 
5. Liquid Funds 

Clearly, there’s plenty of choice on offer. Begin by completing the KYC formalities, and in a few quick and easy steps, you can invest in the funds. These investments would, of course, depend upon your personal choices and whether a fund fulfills your criteria. Reliance Mutual Fund schemes have been leading their categories, specifically schemes such as: 

● Reliance Small Cap Fund, an open-ended equity scheme launched in 2010, has delivered a CAGR of 15.58% (as on 28th June 2019) over the past 5 years. It is also amongst the largest funds in its category by AUM. 

● Reliance Low Duration Fund, formerly known as Reliance Money Manager Fund. An open-ended low duration debt scheme, it has delivered a CAGR of a little over 8% (as on 29th June 2018) over the past 5 years. 

● Reliance Liquid Fund, earlier known as Reliance Liquid Fund - Treasury Plan, is an open-ended Liquid scheme with an AUM over 25,000 crores. Over the past 5 years, it delivered a CAGR of 7.66% to its investors. 

3. Innovation And Tailoring 

Having looked at the past and present, we see that Reliance Mutual Fund is also geared for future challenges and primed for growth. The approach here involves offering an all-round portfolio of products, ranging from: 

- Small-cap to large-cap, 
- Child education to a pension plan, 
- Debt to equity, 
- Gold funds to ETF funds, and 
- A plethora of other options. 

Reliance Mutual Funds large-cap schemes appear to be leaders in their field, backed by expertise, experience and robust management. With 20+ years of experience in wealth creation, it’s no surprise that RMF was also the first to launch a Gold Savings Fund. 

In addition to its range of products, RMF also actively innovates to come up with other peripheral products and added benefits. Together, they position it well for a continued influx of new investors: 

● Reliance Any Time Money Card combines the benefits of mutual fund investment along with the convenience of a debit card. The Reliance ATM card offers liquidity and instant accessibility to investors. This is in addition to traditional benefits of diversification, low cost, liquidity and professional management through mutual funds. 

● Reliance Salary Advantage grants you the potential to invest your excess salary such that it yields market linked debt returns. This helps employees earn returns on their surplus money in salary accounts. 

● Reliance SIP insure encourages investors to save regularly via systematic investment plans or SIP. It is an add on feature of life insurance covers under group term insurance. 

● To assist both the novice and experienced, Reliance has introduced a tool - called the Reliance Smart STeP. Smart STeP helps investors add funds when the market is positioned low and invest less when the market is at higher levels. 

Reliance Mutual Funds provides compelling returns to investors when compared to its peers. Some assurity of returns then, is a reasonable prediction to make. Investors at RMF also have access to multiple guidance routes and investment channels to ease their mutual fund journey. No surprises then, that Reliance Mutual Fund remains a popular pick amongst investors - both new and old. It’s amongst the safest and most prudent bet out there.

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