Wish to Invest in Reliance Large Cap Fund? Check Its Latest Performance & Suitability

The Reliance Large-Cap Fund (formerly known as the Reliance Top 200 Fund) focuses on large companies listed in the S&P BSE 200 index. Its primary goal is to create a stable and liquid investment portfolio by buying shares of well-established firms. The fund also tries to outperform the market by investing in leading companies with strong business models and sustainable cash flows. Specifically, the fund looks for growth companies that are reasonably priced and have high returns on equity.
 

In this article, we will do a complete performance review of the Reliance Large-Cap Fund by checking its past performance and investment philosophy. Also, we will see whether it is suitable for you to invest in this fund.

• Reliance Large-Cap Fund targets large, established companies in the S&P BSE 200 index.
  

• This fund aims for stability and tries to earn high returns by investing in solid business models.

• The fund has shown an average annual return of 9.94% since 2015.

• Reliance Large-Cap Fund invests in key sectors like urban discretionary items and short-cycle capital expenditure.

• It also focuses on consumer discretionary and industrial capital goods for better performance.

• This fund is ideal for investors with a long-term investment horizon.

The Reliance Large-Cap Fund offers various investment options, such as:

• Growth plan

• Dividend plan

  • Dividend payout option

  • Dividend re-investment option

• Direct plan - Growth plan

• Direct plan - Dividend plan

  • Dividend payout option

  • Dividend re-investment option

The table below shows the historical annual returns (on an absolute basis) starting from the year 2015:

Here, we can observe that the fund generated an average annual return of 9.94% starting in 2015. Moreover,

• The fund has shown considerable volatility, with a peak return of 38.4% in 2017 and a negative return of -0.2% in 2018.

• This volatility shows that while the fund can perform exceptionally well in certain years, it can also experience downturns.

• The returns in 2021 (32.4%) and 2023 (32.1%) show a strong recovery and “growth phase”.

• Now, it seems the fund is well-positioned to benefit from favourable market conditions.

By investing in the Reliance Large Cap Fund, you get exposure to established companies with strong brand loyalty and customer base. This fund specifically focuses on the following sectors:

• “Urban discretionary items”, like auto, hotels, resorts, and recreational activities.

• “Short-cycle capital expenditure” in industries like manufacturing and consumer goods.

Also, the fund has a strong emphasis on “consumer discretionary” and “industrial capital goods”. By targeting these key sectors, the fund tries to outperform the market and deliver solid returns.

Reliance Large-Cap Fund is a mutual fund scheme suitable for investors looking to achieve long-term capital growth. It invests in equity and related securities of the top 200 companies on the S&P BSE 200 Index. These companies are well-established and have a history of stability and growth.
 

However, because they are mature, it usually takes time for their full potential to be realised. Therefore, investors are encouraged to have a long-term perspective (generally more than 10 years). By staying invested for a longer period, you can benefit more from the growth of these companies and achieve better returns.