Sunday 2 June 2019

What Benefits Do I Get by Investing in Reliance Pharma Fund?

The pharma industry in India is at an all-time rise. The continuously depleting living standards have forced the major pharmaceutical companies to evolve new and improved medical facilities, including pills and other vaccination for emerging diseases. This has led to a demand of more funds from the market, as new research come at a price tag of billions of dollars.


Considering the present scenario, it may be the right time to invest in the pharma industry. Reliance Pharma Fund is one of the most convenient way to build connections with the pharma industry. It is a sector-driven fund that primarily invests in the top pharma companies, thus leveraging on this growing sector of the economy.

The Basic Investment Details
Starting a fresh investment in Reliance Pharma Fund (G) is quite easy, provided you are doing it through MySIPonline. This online portal provides a convenient and hassle-free platform to make best investments in mutual funds at no extra cost. Also, there are online tools such as the SIP Calculator and the Tax Planning Calculator that further improves your financial planning by making it more realistic.

You can start an investment in Reliance Pharma Fund – Regular Plan (G) through an SIP investment plan at just ₹500 a month. This amount can be even raised later depending upon your spending capacity. And, if anything goes wrong, you’d have the liberty to stop your investments immediately.

The NAV of Reliance Pharma Fund (Growth) as recorded on 29th May 2019 was ₹144.75. This is a decent price for a fund of this stature, and considering the market factors is expected to rise in the near future. Hence, it is advised that you may book an investment in this fund as soon as possible for taking the advantage of this low price.

The Fund Expenditure and Management
The fund management is a crucial task. It is important for an AMC to ensure that qualified and experienced personnel are in charge of the funds, and are capable of looking after it under any and all circumstances. There are a couple of parameters to judge the fund management, such as expense ratio and the portfolio construction. Let us see how these two factors are held up in Reliance Pharma Fund (G): -

Expense Ratio
This ratio denotes the average expenditure incurred on the management of the fund. Normally, it would stay within the range of 2-2.5%, and in very rare case would it soar up to 3% and beyond. At Reliance Pharma Fund, this value stays at 2.21%, which is a commendable measure for any sector-oriented fund.

Portfolio Construction
The portfolio construction is yet another attraction of Reliance Pharma Fund. Since a sector-oriented fund dwells more volatility than other funds, the fund managers have designed a unique investment policy to retain average risk levels. There is a good number of different stocks present in the portfolio, which includes giant & large cap stocks (65.47%), midcap stocks (25.98%), and small cap stocks (8.55%). The large caps provide stability, while the small and midcap stocks are there to energise the wealth creation process. These different stocks work in tandem, thus creating a powerhouse of wealth creation and stability.

The Past Performance

The first thing that probably many investors notice is the past performance of a fund. Reliance Pharma Fund (Growth) has given some really interesting outputs in the last few years. With an average yield of 19.52%, this fund stands at no. 1 spot in the category of sector-oriented mutual funds

Reliance Pharma Fund is an excellent option to capture the advantage of the growing pharma industry. Buy an SIP plan for this fund at MySIPonline and start building your future. 

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