Objective
An open ended Index linked equity scheme seeking to provide capital growth by investing in index stocks.
Scheme Snapshot
Fund Manager Nagendra Singh
Scheme Objective Equity
Scheme Sub-Objective Equity-Index
Scheme Type Open
Min. Investment(Rs) 5000
Total Assets(Rs./Mn) 282.81
Registrars Karvy Computershare Ltd
Launch Date 14-NOV-02
Relative Performance (Fund Vs Category Average)
Understanding of the fund
LICMF Index Fund is an open-ended Equity Index Scheme which aims to provide medium to long-term growth of capital. In comparison to actively managed funds, Reliance index fund has a lower risk-return profile. Simply put, this fund will not turn in that high returns as a diversified equity fund would when bulls are on a rampage.
At the same time, it will not be as severely hurt as the diversified equity category when stock markets tank.
Entry into the fund requires a minimum investment of Rs 5000. The fund is available for subscription at an entry load of 2.25% and exit load of 0%. The scheme was managing assets worth Rs 282.81mn as on April 30, 2007.
Our View
The fund being an index fund invests only in equities. And as we see the fund style it shows that the investment style is growth oriented. Thus investors who are capable of taking risk are advised to invest in this fund. But we also see that in an index fund can never do worse than the index. So investors who are ready to take moderate risk to high risk can invest in this scheme.
When we try to compare the performance of the fund v/s category average we see that the fund is an underperformer. Only in the month of June the fund has outperformed the fund category. One reason which I would like to cite is that since the entry load is high as compared to other funds in the same category there is less attractiveness from the investors.
An open ended Index linked equity scheme seeking to provide capital growth by investing in index stocks.
Scheme Snapshot
Fund Manager Nagendra Singh
Scheme Objective Equity
Scheme Sub-Objective Equity-Index
Scheme Type Open
Min. Investment(Rs) 5000
Total Assets(Rs./Mn) 282.81
Registrars Karvy Computershare Ltd
Launch Date 14-NOV-02
Relative Performance (Fund Vs Category Average)
Understanding of the fund
LICMF Index Fund is an open-ended Equity Index Scheme which aims to provide medium to long-term growth of capital. In comparison to actively managed funds, Reliance index fund has a lower risk-return profile. Simply put, this fund will not turn in that high returns as a diversified equity fund would when bulls are on a rampage.
At the same time, it will not be as severely hurt as the diversified equity category when stock markets tank.
Entry into the fund requires a minimum investment of Rs 5000. The fund is available for subscription at an entry load of 2.25% and exit load of 0%. The scheme was managing assets worth Rs 282.81mn as on April 30, 2007.
Our View
The fund being an index fund invests only in equities. And as we see the fund style it shows that the investment style is growth oriented. Thus investors who are capable of taking risk are advised to invest in this fund. But we also see that in an index fund can never do worse than the index. So investors who are ready to take moderate risk to high risk can invest in this scheme.
When we try to compare the performance of the fund v/s category average we see that the fund is an underperformer. Only in the month of June the fund has outperformed the fund category. One reason which I would like to cite is that since the entry load is high as compared to other funds in the same category there is less attractiveness from the investors.