A strong player, it deserves a good look for consistency

Fund review: Reliance Regular Savings Equity

This one has a knack for turning the competition green with envy. In its

short history, the fund has been fairly consistent in its performance. Launched in 2005, it impressed the very next year. Though it rode on a high in 2007 with a return of 93 per cent, way ahead of the category average, it did not fall off the cliff when the market plummeted in 2008.

The outstanding return of 2007 was mainly due to the last quarter’s performance. Fund manager Omprakash Kuckian took over in November that year and wasted no time in placing his bets. The portfolio took over a totally different complexion the very next month (December 2007). In these two months, exposure to large caps stood at around 20 per cent. The fund manager rightly deserved a pat on the back when his portfolio delivered 54.66 per cent (category average: 25.70 per cent) in the quarter ended December 2007.

When the bears came to the forefront in 2008, Kuckian managed to stay grounded by resorting to cash (average: 20 per cent), diversifying his equity portfolio (average: 32 stocks) and increasing the large cap exposure (average: 37 per cent).

Between March 9, 2009 and January 31, 2009, this fund rallied with a return of 140 per cent and cash levels decreased.

As per the January portfolio, the fund manager was betting heavily on energy (16.65 per cent) and financials (12.55 per cent). But he was well diversified on the stock level where the highest holding was not even 6 per cent. Over the past one year, allocation to a single stock has rarely crossed 5 per cent.

With the second highest Sharpe Ratio in its category, investors here are a satisfied lot.

—Value Research

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