It pays to invest in MF via SIPs! Reliance Growth Fund has outperformed Nifty by 10x

Jul 26, 2017 12:04 PM IST | Source: CNBC-TV18

Interview with Sunil Singhania of Reliance Mutual Fund

The concept of mutual fund (MF) investing and how systematic investment plans (SIPs) works has become much more clear to retail investors probably in the last 5 years, but if somebody would have invested in Reliance Growth Fund back in the year when it was launched is already sitting on huge wealth created over a period of time.

“Reliance Growth Fund started in the October 1995 has grown 105x in the last 22 years. We have outperformed the Nifty by almost 10x. A crore invested in Nifty would have become Rs 10crores and a crore invested in Reliance Growth Fund would have become Rs100 crores,” Sunil Singhania, CIO – Equity – Investment, Reliance Mutual Fund said in an interview with CNBC-TV18.

Commenting on Nifty hitting record high of 10,000 – Singhania said that we are certainly not at a euphoric top, but some bit of correction cannot be ruled out considering the fact, the Indian market is trading slightly above fair valuations. But, the corrections will be short and swift.

“When we meet investors domestically or globally, there is one common thread – everyone feels that their own respective markets even for global investors are expensive and they are waiting on sidelines for a correction to happen,” he said.

He further added that this time we are expecting some structural changes to happen. “We believe there is structural low for oil and that would mean that the $70-80 billion saving for India is there for India for years to come – which is somewhere close to trillion dollars.

The impact of GST is a structural positive as it will lead to more tax efficiency and less corruption and increase in manufacturing led by Make in India campaign are some of the structural changes that we expect to happen.

“The benefit of all the structural changes will be felt in years and years to come. So, in that respect, we feel that this bull run is slightly different from different bull run seen in the past,” said Singhania.

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