Impact of Demonetization

Impact of Demonetization:

 

·         Improvement in Government's fiscal position going forward:

 

Ø  Higher benefits for the Government if lesser currency notes comes back into the system

Ø  Increase in Tax Reporting leading to better revenue hence better fiscal

 

·         System Liquidity to increase going forward

·         Inflation expected to fall further

·         Growth to be positively impacted over medium to long term with near term hiccups

 

Duration Funds:

 

In light of the above facts and expectations investors may consider long duration funds (Reliance Dynamic Bond Fund, Reliance Income Fund & Reliance Gilt Securities Fund) as these funds would benefit on further easing of yields over next 12 to 18 months.

 

'Reliance Dynamic Bond Fund' aims at generating returns even in stable interest rate markets by exploring different trading strategies. The strategy to differentiate Tactical Positions from CORE Positions has paid off and we continue to re-iterate that it seems to be the right strategy going ahead in the current market scenario. Hence we feel that investors with 12 -18 months investment horizon can look at either of the above three duration funds however investors with the preference for active duration management fund along with an investment horizon of 3 years and above can consider investing in Reliance Dynamic Bond fund.

 

Credit Funds:

 

We also strongly feel that investors can consider our credit funds - Reliance Corporate Bond Fund and Reliance Regular Savings Fund- Debt from a constant debt allocation perspective due to their potential of delivering returns across all times. In expectations of improving liquidity conditions and money shifting from informal segment to formal banking system, we feel, such a scenario will create demand for investment products such as credit funds especially from accrual perspective. Over next 3 years or more a combination of moderate duration along with healthy accruals can help investors yield better returns.

 

Performance Update of Some of Reliance Debt Schemes:

Report as on: 15-Nov-2016
			As on 31st Oct 2016		Simple Annualised (Return in %)								Compounded Annualised (Return in %)
Schemes	NAV	Launch Date	YTM	Modified Duration	1 Day	3 Days	1 Week	2 Weeks	1 Month	2 Months	3 Months	6 Months	1 Year	2 Years	3 Years	5 Years	Since Inception	Exit Load
Accrual Funds
Reliance Corporate Bond Fund - Growth	12.859	26-Jun-14	8.52%	3.18 Years	31.83	31.83	42.639	21.917	11.522	14.61	12.845	14.201	11.609	10.676			11.087	1% for 1 Year. NIL thereafter
Reliance RSF - Debt - Growth	22.119	8-Jun-05	9.17%	1.86 Years	22.249	22.249	28.157	15.855	10.408	12.635	11.323	11.797	10.347	9.711	10.263	9.637	7.181	1% for 1 Year. NIL thereafter
Duration Funds
Reliance Dynamic Bond Fund - Growth	22.292	15-Nov-04	7.38%	6.56 Years	98.433	98.433	91.492	45.31	18.564	18.938	14.84	18.626	13.361	11.531	11.904	11.029	6.904	1% for 1 Year. NIL thereafter
Reliance G Sec Fund - Growth	21.652	22-Aug-08	6.98%	7.07 Years	130.633	130.633	113.809	60.694	26.041	23.675	18.037	22.272	15.493	13.45	13.887	12.05	9.831	Nil
Reliance Income Fund - G P - Growth	53.322	1-Jan-98	7.14%	6.97 Years	113.467	113.467	98.521	48.946	21.305	19.349	14.987	18.992	13.296	11.274	11.513	10.173	9.268	Nil
Ultra Short Term Fund
Reliance Money Manager Fund - Growth	2188.341	20-Mar-07	7.40%	313 Days	15.089	15.089	18.001	11.741	7.535	8.743	8.237	8.713	8.606	8.603	8.809	9.098	8.44	Nil
Reliance Medium Term Fund - Growth	33.311	14-Sep-00	7.61%	1.32 Years	18.501	18.501	22.765	14.125	8.028	9.83	9.133	9.881	9.161	9.071	9.217	9.141	7.72	0.5% for 7 Days. NIL thereafter.
Short Term Fund

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