Investors can retain the units of Reliance Vision that they hold. The fund has a long track record of nearly 20 years but had a lacklustre run between 2010 and early 2013. But it turned around from late 2013 and has delivered well over the past 18 months.

It has managed to do better than its category as well as its benchmark, the BSE 100. It has a good long-term track record, particularly over the past 10 years. With a predominantly large-cap focus, it has done well over the very long term.

In the last one year, the fund has clocked a 36 per cent gain, which is 7-8 percentage points above the category average. From being a mid quartile fund, it has moved up the ladder and has done better than its peers such as ICICI Pru Top 100 and DSP BR Top 100 Equity over the past one year.

While the improvement in its performance is significant, Reliance Vision needs to prove itself further in delivering consistently across market cycles, before investors can take fresh exposures. Moreover, the current volatile market condition is also not conducive for investors to take fresh investment.

Portfolio and strategy Though Reliance Vision invests mainly in large-cap stocks, it does take some exposure to mid-caps as well. Industrial capital goods, automobiles, banks and software form the top sector choices, accounting for 62 per cent of the portfolio. The top five stock holdings account for 33.4 per cent of the assets.

Thus the fund takes a well-diversified approach to investing in individual stocks and sectors. The tilt is towards cyclicals, though defensives also figure prominently. Mid-caps account for about 25 per cent of the portfolio. The fund used to take significant cash calls, which resulted in underperformance during some of the previous years.

It has exited some of the underperforming key large-cap stocks such as Reliance Industries and ONGC in recent times.

It has also exited or booked profits on stocks such as ITC, Sanofi India and Eicher Motors, which have done well over the past three years. The fund’s mid-cap exposure is to quality names such as Linde India, Honeywell Automation India and Federal-Mogul Goetze (India).

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