To convey the success of one its many schemes, Reliance Mutual Fund (RMF) came out with an advertisement on Wednesday claiming Rs 1 lakh invested in Reliance Growth Fund (growth plan, growth option) has multiplied to Rs 1 crore in 22 years.
In an analysis that shows the returns for one year, three years, five years and since inception (since 1995, meaning 22 years) at compounded annual growth rate (CAGR), Reliance Growth Fund said that Rs 10,000 invested in 1995 has appreciated to Rs 10,03,425.
During the same period, a notional investment based on BSE100 stocks would have grown to Rs 1,01,649, the comparison claimed.
Also read: Normal monsoon rainfall prediction propels Sensex, Nifty to new highs
Reliance Growth Fund is a Mid-cap category, open-ended scheme whose assets stood at Rs 6,091 crore as of Marh 31, 2017.
According to MF advisory Value Research, the top holdings of Reliance Growth Fund as of March 31, 2017 were UPL, HCL Technologies, State Bank of India, ICICI Bank, Yes Bank and HDFC Bank.
India's top three fund houses are ICICI MF, HDFC MF and Reliance MF.
Mutual funds (MFs) are on a high over the past few months and aggressively investing in stock markets while investors are opting for equity schemes in a big way, eyeing good returns.
Assets under management (AUMs) of 42 MFs stood at Rs 19.26 lakh crore, up 9.7 percent from Rs 17.55 lakh crore as of March 31, 2017.
Investments into equity schemes more than doubled to Rs 8,842 crore last month from Rs 4,042 crore recorded in April last year while net inflows into equities by mutual funds rose to Rs 9,918 crore in April from Rs 4,191 crore in March.
The overall inflows stood at Rs 1,50,703 crore in April this year, down from Rs 1,70,161 crore mainly because of investors pouring significantly low amount in liquid money market schemes. These schemes invest in treasury bills, certificates of deposit and commercial paper.
The bullish sentiments on Dalal Street got a boost on Wednesday with the government of India's agency predicting a normal monsoon this year, lifting benchmark indices Sensex and Nifty to all-time highs.
"Considering the juncture at which Indian markets are, strong monsoon helps in fortifying the confidence in our economy. We believe that this is likely to be the next trigger for the markets," Vaibhav Agrawal, Head of Research and ARQ at brokerage Angel Broking, said in a note on Wednesday.
The BSE Sensex closed at 30,248, up 315 points, or 1.05 percent while the NSE Nifty ended 90 points, or 0.97 percent higher, at 9,410.
"Earnings positivity has obviously been keeping markets buoyant and prospects of FII turning buyers in equities also kept markets push higher. Financial services stocks were also seen rallying reflecting markets' expectations for further strength in equities," Anand James, Chief Market Strategist, Geojit Financial Services Ltd. said in a note.
Top Sensex gainers were Bharti Airtel, HUL and HDFC.
