Reliance Mutual Fund, having completed 20 years of operation, has cemented its place as one of the top fund houses in the country. In terms of assets, the fund house currently ranks third after HDFC MF and ICICI Prudential MF.
However, while Reliance MF has made rapid strides ever since its inception in 1995, market participants say its growth has petered out in the last few years. According to data from Value Research, Reliance Growth Fund, for example, has given returns at a compound annual growth rate (CAGR) of 24.52% since its launch. However, its rank within the category has seen a continuous slide. For a 10-year period, Reliance Growth Fund was ranked seventh in the industry, but in the last three-year and one-year period, its position slipped to 30th and 62nd, respectively, data show.
During the bull run in the markets, Reliance Growth Fund and Reliance Vision Fund were seen as leading lights in the industry, their success being attributed to fund manager Madhusudan Kela, who followed a ‘bottom-up’ approach. However, things went downhill post-2008 when the fund house started adopting a combination of ‘bottom-up’ and ‘top-down’ strategies.
Overall, though, Reliance MF has seen a surge in its average assets under management (AAUM).
According to Amfi data, the AAUM of Reliance MF, which was Rs 26,420.10 crore on April 2006, now stands at Rs 1.52 lakh crore as in the July-September quarter this year.
Sundeep Sikka, CEO, Reliance Capital Asset Management, said: “It has been a positive journey in the last 20 years where we have built relationships with investors as well as distributors. It’s our passion to create wealth for investors.
We started with just R50 crore and, today, as an asset management company, we manage over Rs 2.5 lakh crore,” said
That said, these are tough times and it remains to be seen how Reliance MF rises to the challenge.