Reliance Large Cap Fund Detail ANALYSIS | Best Large Cap Funds | Top Large Cap Mutual Funds HD

Reliance Large Cap Fund (Reliance Top 200)Earlier predominantly invested in Top 200 companies now will be an open ended scheme investing in Large Cap Companies (predominantly in 1st to 100th Company in terms of MCap) Reliance Top 200 Fund (AUM: Rs10,126 crore ) Now Reliance Large Cap Fund 1) A shift in mandate from the top 200 listed stocks by market capitalisation to the top 100 is drastic 2) It makes the fund a much more large cap one. Its previous mandate allows its equity component (65-100% of total) to be invested in companies falling in the S&P BSE 200 Index. 3) The new mandate will hike the equity component to 80-100% and require that 80% be confined to India’s top 100 companies by market capitalisation. In other words, the fund can become more equity-heavy and more large-cap heavy. CHANGE IN PORTFOLIO ? 1) The fund, even at present, has exposure to large caps (as defined by SEBI) greater than 80%. Hence, there is absolutely no change in the positioning of the fund 2) The Fund had to be renamed, since Top 200 is not aligned to SEBI’s definition of large-cap, which is based on Top 100 Suitability of Reliance Large Cap Fund Large-cap oriented funds are better poised to handle market volatility vis-à-vis mid-and-small caps. Stable businesses, greater market share, quality of management and the sustainability prospects are factors that seem convincing to take exposure to large-caps at the current level. Reliance Large Cap Fund has been amongst the few large-cap funds that take opportunistic allocation to mid-caps, to generate higher alpha. However, with the revision in its investment mandate and universe the fund may go slow on its mid cap bets. It will be interesting to see, if the fund can still sustain the alpha over the benchmark in momentum driven markets. Given the funds exposure is heavily skewed towards index heavyweights, the returns of the fund could be expected to be broadly in line with the benchmark. However, the active management and selection of weightage in the stocks may lead to margin of deviation in performance over the index To umeed hai apko ye video pasand ayegi Facebook: https://www.facebook.com/MARKETMAESTROO Twitter : https://twitter.com/marketmaestroo Youtube : https://Youtube.com/marketmaestroo For any BUSINESS INQUIRY - marketmaestroo@gmail.com