The simple answer to why Reliance Small Cap Fund has given such an awesome performance (87% YOY, 57% 6M & 44% 3M) is because Sunil Singhania’s selection of stocks has been stellar.
When you see his choice of stocks, you will see why he is so highly regarded amongst investing circles. Most of the stocks in the portfolio have given multi-bagger returns. Ceat, which has a 4.84% allocation, leads with an awesome 331% gain. TVS Motor has made a hefty contribution with a 263% gain. The other notable contributors to the wealth of the fund are Atul Ltd (159%), HSIL (138%) & Persistent (102%).
Interestingly, Sunil Singhania has been underweight Pharma (8.50%) and Banks (6.04%). Instead, he has been overweight on cyclical stocks with Chemicals (12.66%), Engineering & Capital Goods (10.47%), Cement & Construction (9.86%) making the bulk of the portfolio. Nearly, 10.83% of the portfolio is in Infotech stocks but here again, the selection of stocks like NIIT (183% gain), Persistent (102%) and Cyient (88%) have ensured stellar returns.
|Top 10 holdings of Reliance Small Cap Fund|