Reliance Medium Term Plan is a medium-term debt fund launched on the 14th of September, 2000. This mutual fund investment scheme looks to generate regular income with an aim to make regular dividend payments to its unitholders. The secondary objective of this open-ended scheme is the growth of capital for its investors. The minimum initial investment amount for investors looking to invest in this fund scheme is Rs. 5,000 while investors looking to go down the SIP investment route can get started with as little as Rs. 500. Further, this mutual fund investment has been ranked fourth in the ‘Ultra Short Term Debt’ category by CRISIL, for the quarter ended December 2017, a rank which has remained unchanged from the previous quarter.
Boasting of a Morningstar Analyst Rating of Bronze, this fund has been under the management of Amit Tripathi since October 2008 & Anju Chhajers since October 2009. Mr. Amit Tripathi manages 6 open-ended schemes of Reliance Mutual Fund while Ms. Anju Chhajer is in charge of 10 open-ended schemes. Like several other income funds, this mutual fund investment is suitable for investors looking at medium-term returns. Carrying a moderate risk rating, this fund is apt for investors looking for an investment in debt and money market instruments with a duration not exceeding 3 years and looking to achieve near-term goals such as a new car, embarking on a foreign vacation etc.
In order to meet the fund’s investment objectivities, the fund management team tends to invest in a variety of debt and money market instruments with a higher allocation to CDs, PSU bonds, and AAA HFI (housing finance) assets while maintaining an optimum balance of yield, safety, and liquidity. This fund maintains a higher portfolio duration between one to 1.5 years as compared to its peers in the ultra-short term category and seeks to generate relatively better returns to liquid funds with moderate volatility over this investment horizon. Ms. Chhajers and her able seven-member credit research team adopt a highly research-intensive disciplined approach while making use of top-notch economic, credit and liquidity analysis while determining fund strategy. Further, the fund management team tends to focus on a roll down/ steepening benefits at the shorter end of the curve which leads them to invest in 6 to 24 months high-grade liquid assets. Although mainly invested in corporate bonds, this fund is also known to take an additional 30 to 40 per cent exposure in sub-AAA rated assets with an aim to enhance the portfolio yield. However, this doesn’t mean that the fund’s safety or performance will be compromised in favor of enhancing the yield.
This mutual fund investment looks to maximize investors returns who have included this mutual fund as part of their portfolio and maintained the portfolio duration between one year to five years. If you’re looking to invest in top mutual funds in India and wondering where to invest money for your medium investment needs in the next two years to three years, do not hesitate to get in touch with our financial advisors. Our financial advisors not only provide transparent advice but can also deliver customized, tailor-made plans, matching your financial circumstances, risk appetite, and investment needs.