Reliance Mutual Fund Under Performs The Time Periods

Background:

Reliance Capital Limited is the sponsor of Reliance Capital Assets Management Ltd set up in June 1995. Reliance Capital Ltd. is a member of the Reliance Group and has been promoted by Reliance Industries Limited (RIL), one of India's largest private sector enterprises. The fund house manages assets worth Rs 80962.94 crore at end of March 2009.

Reliance Growth Fund (G) an open-ended equity scheme launched in September 1995. The investment objective of the scheme is to achieve long-term growth of capital through a research based investment approach. The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 233.32 per unit as on 13 April 2009.

Portfolio: The total net assets of the scheme increased by Rs 152.02 crore to Rs 3239.85 crore in March 2009.

Reliance Growth Fund (G) took fresh exposure to two stocks in March 2009. The scheme purchased 8.98 lakh units (1.72%) of Financial Technologies (India), 7.32 lakh units (1.47%) of United Spirits in March 2009.The scheme completely exited from Cambridge Solutions by selling 56.00 lakh units (1.44%) in March 2009.

Sector-wise, the scheme took no fresh exposure to any sector in March 2009.Sector-wise, the scheme did not exit completely from any sector in March 2009.

The scheme had highest exposure to Lupin with 21.53 lakh units (4.58% of portfolio size) followed by Reliance Industries with 7.86 lakh units (3.70%), Divis Laboratories with 12.02 lakh units (3.54%) and Jindal Steel & Power with 9.27 lakh units (3.44%) among others in March 2009.It reduced its exposure to State Bank of India by selling 1.98 lakh units to 6.13 lakh units (by 0.68%), Divis Laboratories by selling 1.88 lakh units to 12.02 lakh units (by 0.37%), Jain Irrigation Systems to 21.87 lakh units (by 0.27%) and Bharti Airtel by selling 4025 units to 11.64 lakh units (by 0.16%) among others in March 2009.

Sector-wise, the scheme had highest exposure to Pharmaceuticals - Indian - Bulk Drugs at 8.12% (from 8.47% in February 2009), followed by Banks - Public Sector at 4.90% (5.54%), Computers - Software – Large at 4.19% (4.26%) and Telecommunications - Service Provider at 3.89% (3.94%) among others in March 2009.

Sector wise, the scheme had reduced exposure to Banks - Public Sector to 4.90% (by 0.64%), Pharmaceuticals - Indian - Bulk Drugs to 8.12% (by 0.35%), Plastics Products to 2.31 % (by 0.27%), and Sugar to 1.98% (by 0.08%) among others in March 2009.

Performance: The scheme underperformed the category average over all the time periods.

Over three-month period ended as on 13 April 2009, the scheme posted returns of 14.25% underperforming the Sensex that posted returns of 20.90%. Over 6 month period, the scheme's returns dropped to 3.34% underperforming the Sensex that fell 3.02%.

The returns of the scheme over one year period fell 30.92% underperforming the Sensex that plunged by 30.62%.