Reliance Consumption Fund - Direct Plan-Growth

Reliance Consumption Fund - Direct Plan-Growth Reason for recommendation This is an open-ended equity scheme, which seeks long-term capital appreciation by investing at least 80% of its net assets in equity/equity related instruments of the companies which are expected to benefit from the domestic consumption-led demand. The fund has a good combination of stocks from large-cap, mid-cap and small-cap sectors. The scheme has invested ~64% of its corpus in large-cap stocks which will help investors safeguard their returns from the current market volatility. The major holdings of the fund are in ITC, Maruti Suzuki, Mahindra and Mahindra and Asian Paints, which are expected to outperform the market, going forward. ITC is FMCG major, the company has managed to sustain its profitability despite a tax hike moreover, we see volume growth in the company's cigarettes business going ahead, which is expected to aid revenue and profitability. With the improving rural demand and strong product pipeline, the outlook for Mahindra and Mahindra looks positive. Moreover with the presence of stocks like HUL, United Breweries, Britannia Industries and Colgate-Palmolive, the fund seems to reap more returns for the investor with aid from current consumption story. Considering all these aspects, we see the fund as a potential buy for generating better returns in the coming years. The fund is suitable for high and moderate risk investors.