Mutual Fund Pick - Reliance Large Cap Fund - Analysis

Hey friends,

With the beginning of new financial year 2019-20 from April 1st, 2019, I started my search for some good mutual funds to invest in during the coming financial year.

This time I was searching specifically for large cap fund because of 2 reasons:

1. As per Livemint analysis, Nifty 50 grew 14.93% in FY19.
2. While at the same time, BSE Small Cap and Mid Cap Indices saw a fall in 11.57% and 3.03% respectively.

Hence at this point in time, my safest bet would be on Large Cap Funds.

I studied couple of Large Cap funds and found Reliance Large Cap Fund to be decent and good.

Let me tell my analysis on this fund:

1. It's Crisil rank was found to be 5 Stars. This means, this fund has historically performed well hence can be relied upon.

2. If we see the percentage returns compared to Nifty 50 over last 5 years, we find that it had always outperformed the growth percentage compared to Nifty 50. Additionally, the pattern is almost in sync without much deviation. Since Nifty 50 Index is assumed that it will grow well in future, we can also predict that the fund whose pattern is in sync with Nifty 50 would continue to grow in same pattern.

3. If we check the Year on Year returns percentage, it shows that it had consistently given returns close to around 15% and more which is very rare to find.

 

4. On the same above image, you can also find that Annualized Returns of this fund were always higher year on year compared to its category average return percentage. This means fund managers of this fund are doing good job compared to funds in similar category.

Hence overall this fund turns out to be a reliable fund to invest on if you are looking for Equity funds Investment for a longer period of investment time frame of probably 3-5 years. 

This was my quick analysis over this fund. Do you let me know your thoughts on this.