Reliance Pharma mutual fund by Reliance is invested purely in company stocks from the pharmaceutical companies and related services. The fund is the best performing scheme in this category of mutual funds.
Reliance Pharma fund is an open-ended pharma sector mutual fund scheme
Investment objective
The primary aim of Reliance Pharma fund is to generate consistent returns by investing in stocks and related securities of pharmaceutical companies. The fund is quite diversified in order to maximize returns and minimize risk.
Fund Information
| Inception date | 8th June 2004 |
| CRISIL rank | NA |
| Options | Bonus and Growth |
| Schemes | Reliance Pharma Fund Direct (B)
Reliance Pharma Fund Direct (G) Reliance Pharma Fund (B) Reliance Pharma Fund (G) |
| Entry load | NIL |
| Exit load | 1% if redeemed before completion of 1 year, NIL if redeemed after completion of 1 year from the date of allotment of mutual fund units |
| Minimum investment | Rs.5000 and thereby in multiples of Re.1 |
| SIP | SIP scheme for Reliance Pharma Fund is available and following is the applicable premium amount payable per month
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| Product label – Risk and target investors | High, Reliance Pharma Fund is best suited for customers who are looking for long-term capital gains and who have a higher risk appetite |
| Benchmark (about the benchmark) | S&P BSE Healthcare Index |
| SWP | Yes, Available |
| STP | Yes, Available |
| Redemption | Reliance Pharma Fund redemption of unit proceeds are dispatched within 10 working days after receiving a valid redemption request from the customer. Fund provider is required by SEBI, to pay a penal rate of interest of 15% per annum if the redemption is not processed within the stipulated time frame |
| Taxation | Taxation varies for different fund schemes. Depends upon the time period for which the fund scheme is availed for. It is advisable for customers to get in touch with a tax expert for calcualtion of taxes. |
Portfolio – Sector / Top 10 holdings
Given below is the stock names and the sector break-up of stocks that Reliance Pharma Fund is currently holding.
| Name | Sector | Class | Allocation % |
| Sun Pharma | Pharmaceutical | Equity | 13.71 |
| Abott India Ltd. | Pharmaceutical | Equity | 12.13 |
| Divi’s Labs Ltd. | Pharmaceutical | Equity | 9.67 |
| Lupin Ltd. | Pharmaceutical | Equity | 9.67 |
| Cadila Healthcare Ltd. | Pharmaceutical | Equity | 9.43 |
| Dr.Reddy’s Labs | Pharmaceutical | Equity | 9.04 |
| Sanofi India Ltd. | Pharmaceutical | Equity | 8.89 |
| Ipca Labs. Ltd. | Pharmaceutical | Equity | 8.13 |
| Cipla Ltd. | Pharmaceutical | Equity | 7.18 |
| FDC Ltd. | Pharmaceutical | Equity | 3.29 |
Risk measures –
The risk measures listed below have been calculated by taking a rolling return for a 3 year period from 31/08/2012 to 31/08/2015
| Sharpe Ratio | 0.2 |
| Alpha | NA |
| Beta | NA |
| Portfolio Turnover Ratio | 0.3 |
Fund Performance
| AUM | Rs.1228.7 Crores |
| NAV | Rs.146.63 as of 7th September 2015 |
| Expenses, expense ratio | 2.49% |
Benchmark Comparison
Following is the benchmark comparison for Reliance Growth Fund as per data from May 29th, 2015.
| Type | 1 year | 3 years | 5 years |
| Fund Return | 30.40% | 31.65% | 22.83% |
| S&P BSE Healthcare Benchmark Return | 25.36% | 31.77% | 23.69% |
| Difference between Fund & S&P BSE Healthcare Return | 5.04% | -0.12% | -0.86% |
| Category Avg. Return | 29.81% | 32.81% | 24.77% |
| Difference between Fund & Category Avg Return | 0.59% | -1.15% | -1.94% |
| Rank in Category | 4th | 2nd | 2nd |