Is Reliance Low Duration Fund a Good Option for Short-Term Investments?

Created by MySIPOnline
On Jun 28, 2019
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Is Reliance Low Duration Fund a Good Option for Short-Term Investments?

Debt funds are becoming very popular these days. They are low on risk and serve much better to a conservative investor in comparison to what an equity fund does. However, there has been a sudden influx of mutual fund options in the market in the past two years, which has made it reasonably difficult for a person to choose the best funds for his portfolio. Though all options may appear good, but indeed not every one of them is constructed in a way to serve you. Hence, you should invest in established funds such as Reliance Low Duration Fund, especially when you are new to the realm of investing and looking for a conservative investment option. 
In this article, we’d discuss some riveting details about this fund, finally revealing why it is a good option for a debt-oriented investment. 

The Fund Overview

Reliance Low Duration Fund – Regular Plan (G) is a type of debt mutual fund, which earlier went by the name Reliance Money Manager Fund. This fund is pretty famous for its conservative investment approach, and is widely recognised as one of the best debt funds to invest in India. It was started in 2007 by Reliance Mutual Fund, which is one of the largest fund houses in India.

Reliance Low Duration Fund (G) was launched with an aim to provide the investor audience with a conservative investment option, where they could put their money for short durations and earn decent returns and make satisfactory wealth. The fund’s main aim is to seek an investment in a diversified portfolio that comprises of both equity and debt instruments together with some portion of money market instruments. This is done in an attempt to plaster the fund with maximum security and also ensure adequate liquidity. 

The Investment Information

The NAV is the price that you pay for buying a unit in the fund. This value is determined by dividing the total assets of a mutual fund by the number of units it issued. At present, the AUM of Reliance Low Duration Fund is floating at ₹4,643 crore as recorded on 31st May 2019. After breaking it down on the basis of its units, the value arrived was ₹2578.6945 as on 20th June 2019. This is a moderately expensive price for a fund of this stature, and is anticipated to rise in the future considering the growth of the fund. Hence, it is recommended that you start early in this fund to avail maximum units at a lower price. 

The Expense
Reliance Low Duration Fund is one of the best managed funds in the realm of mutual fund. The expense ratio of the fund, as recorded on 31st May 2019, stood at a remarkably low level of 0.60%. This is one of the rarest figures achievable, as normally the fund expense ratio floats between 1.85 – 2.00%. This testifies that the fund has managed to employ some of the best fund managers to look after its wealth, who are doing their excellently.  

The Investment Criteria
With today’s technology, investing in Reliance Low Duration Fund (Growth) is not a big deal. You just have to choose an online SIP plan that starts at just ₹500, and pick a date on which every month the amount will be deducted from your bank account and deposited straight to the fund. This SIP plan will help you to achieve a horde of benefits, which includes high returns that may scale up to 8.03%, as well as the benefit of compounding. 

The Exit Policy
Since it’s a low duration debt mutual fund, Reliance Low Duration Fund (G) doesn’t involve any kind of exit loads on any redemptions. This gives the investor the freedom to make short-term investments and accomplish their short-term goals as early as possible. Besides, it is a good option to have some liquidity, as you’ll always have the option to withdraw money from the fund. 

Thus, if you are a conservative investor and want to make a short-term investment to achieve your goals, then you shall invest in Reliance Low Duration Fund.