Reliance Pharma Fund - Paving the Way to Long Term Growth

Appreciating capital for the creation of wealth is desired by all. Whatsoever be your investment objective, the ultimate goal is creating a huge corpus. After all, money has the power to fulfil every dream. The equity mutual funds are recommended by the expert advisors as they help in generating growth in the invested capital. But, out of the thousands of schemes available in the mutual fund industry, making a choice of the best equity scheme is a difficult task. However, some of the best-recommended funds which also include Reliance Pharma Fund are often considered before investing for long-term growth. Let’s figure out the traits of this scheme to decide whether it suits your requirements or not.

Investment Details of Reliance Pharma Fund
The fund has the primary objective of generating consistent returns for the investors by investing in equity and equity-related securities or fixed income instruments of Pharma and other ancillary companies. As we know that the pharmaceutical industry has the never-ending growth prospects, this scheme ensures that the returns would be impeccable and continuous in the long term.

It falls in the sector-based equity fund category and is open-ended by nature according to which it provides the benefits of flexibility and higher returns to the investors. Furthermore, being a growth-oriented plan, this scheme also endeavours to provide high worth to the invested capital. The minimum investment amount to start an SIP in this plan is Rs.100, and for making a lump sum purchase, one needs to pay just Rs.5000 at once.

The scheme’s performance is measured against S&P BSE HEALTHCARE. Its asset size amounted to Rs.1,312.80 crore as on March 31, 2017, which showcases the possession of the scheme in the market. NAV of Reliance Pharma Fund G as on July 11, 2017, amounted to Rs.131.894 which depicts the per unit worth of the fund as on that date.

Performance Analysis
The scheme is a spectacular performer in the long-term period. However, the returns in the short duration are negative due to variable factors; the long-term profits have beaten the market as well as the category with a great margin. The three- and five-year returns of the scheme are 10.50 and 17.40 percent respectively as against 7.30 and 13.20 percent of its category. The absolute annual returns have reached up to 48.5 percent in the year 2014 and have been appreciated for a long time. The SIP and lump sum growth of the investments in the pharma fund is quite high in the long run. Thus, one must aim to stay invested in this plan for a longer tenure.

Reliance Pharma Scheme - Portfolio Review
The most important parts of a scheme’s description are the portfolio concentration and the asset allocation that it holds. The reason being is that they are responsible for generating huge income for the investors. Being a pharma fund, this scheme has all its allocation in the pharmaceutical industry. Apart from that, if we get into deep analysis of the scheme, it can be evaluated that with approximately 97% of the asset allocation in equities and the remaining in debt and money market funds, this scheme has maintained a balance between risk and reward as per its nature.

Moreover, the average market capitalisation of the fund is Rs.22,466.66 crore which is greater than its category’s average and hence showcasing its market possession. The major holdings in which the fund has its investment include Sun Pharmaceutical Industries, Aurobindo Pharma, Dr. Reddy’s Lab, Divi’s Laboratories, Abbott India, Sanofi India, and Cipla. Those who want to invest in the pharma sector for attaining growth with this industry must have investment in this plan.

As per the above description, it can be concluded that Reliance Pharma Fund (Growth) has a great potential to generate wealth for the investors. By investing in the high-yielding and well-established companies, this scheme has aimed toward accomplishing its investment objective of appreciating capital. If you have a long-term investment tenure, then you can invest in this plan right away to lock your future growth and profits to live the desired life.