Reliance Mutual Fund's underperformance

Even though I am not a big fan of MFs, I still have some money a couple of MFs. One of them is Reliance's regular equity savings plan. I got the SOA (Statement of Account which I mistakenly took as Service Oriented Architecture based on the subject and kept wondering why Reliance sends anything about Architecture!!! see how dumb? uffff!) and when I saw the statement why I was left speechless!
No, my money did not double within 6 months (Dec 08 was when I put in this money) and no it did not grow by 50% and no, it did not grow by .0000000000001%

It infact was down by about 5%!!!!!!!!!!!!!! This statement was sent out on 21st May so the question is what the **** was this doing? I did much better I guess with my individual investments , I was down 50% in dec 08 and I am down only by 10% now. I came across a message in one of the investment groups that Reliance AMC was sitting on 33% cash till last week. That could explain why it underperformed.

This kind of results strengthens my belief that an individual with patience and little bit of learning can earn similar returns as that of an average MF by just holding onto some of the blue chips. Having said that I am not going to pull out my money, I am a patient man so will wait a couple of years before deciding.

RK