Reliance Vision Fund

Reason for recommendation 

This is an open-ended equity scheme, which seeks capital appreciation by investing into large cap stocks with good fundamentals and good long term prospectus. 

The fund currently is dominated by large cap stocks, however, it also has a good mix of the stocks from mid-cap sector. The scheme has invested around ~79% of the corpus into the blue-chip. These stocks cushion the return from current market volatility and assure safety for the investment. 

The major holdings of the fund are in State Bank of India, Tata Steel and Tata Motors. The recent import duty cut by China on passenger cars coupled with new launches are expected to boost the earnings for Tata Motors. Moreover, we expect that the resolution of the big NPA accounts will lead to the improvement in asset quality for the State Bank of India. The presence of stocks like Infosys and Tata Steel assure stability in the returns, going forward. So, we see this fund as a potential buy to generate better returns compared to other funds in the longer run. With the major investment in the large cap stocks, the fund is best suited option for the moderate risk investors.