Nippon India Growth Fund (Growth) is recommended for investment within mid cap mutual funds.
Mid cap funds provides inflation beating growth over the long term and is suitable for investment objectives with duration of 10-15 years or longer (minimum 5 years).
No single fund can achieve what a plan can. Learn why
Scheme Information
Investment Objective
The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity related securities through a research based investment approach. However,there can be no assurance that the investment objective of the Scheme will be realized,as actual market movements may be at variance with anticipated trends.
Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.
Nippon Life India Asset Management Ltd manages assets worth 215,397 crores and was set up on 24 February 1995. It's current offering of mutual fund schemes includes 90 equity,369 debt and 34 hybrid funds.
We use a proprietary system to rate mutual funds and based on that make a recommendation or rate the fund as top ranked.
What Scripbox recommendations mean?
Recommended
Scripbox algorithm recommends 2-4 funds for investment for an investment asset class such as large cap, diversified, liquid etc. When you invest for an objective, the algorithm suggests the appropriate asset class and funds.
Top Ranked
Neutral
Not Recommended
Track Record
We look at consistent and long historical performance for our analysis.
Fund Size
We look at the size of the fund with respect to other funds in the category. Larger funds are preferred.
Sub-asset Class View
We check if the sub-category of the fund is recommended by us.
Fund Performance
Consistency of performance over various tenures is analysed for a relative performance stack.
Track Record
We look at consistent and long historical performance for our analysis.
Fund Size
We look at the size of the fund with respect to other funds in the category. Larger funds are preferred.
Impact of Interest Rates
We check the relative interest rate risk of the sub-category of the fund. Lower the better.
Credit Attractiveness
We check the credit quality of the underlying instruments present in the fund. Higher the better.
Equity Funds
Debt Funds
Nippon India Growth Fund-Growth is an open-ended midcap equity mutual fund scheme. The fund primarily invests in equity & equity-related instruments of midcap companies that have the potential to substantially increase their profitability along with a consistent track record. The focus is to identify potential market leaders at an early stage so that the fund may create long-term alpha. The scheme also focuses on identifying growth stocks that are available at reasonable prices. By doing so, the fund aims to adopt a Growth at Reasonable Price (GARP) style to invest its corpus.
The fund provides long-term capital appreciation and wealth creation over the long term. Nippon Mutual Fund manages the fund with the fund manager being Mr. Dhrumil Shah, Mr. Manish Gunwani, and Mr. Tejas Sheth. The fund is more suitable for an investment goal like children’s education & their future, retirement, or any other long-term growth.
Nippon India Growth Fund – Growth Investment Objective
The investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity-related securities through a research-based investment approach. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends.
Being a midcap-oriented fund, the scheme aims to achieve long-term wealth creation by investing in high-growth companies that are potential large-cap companies. The fund invests in themes like urban discretionary, short cycle CAPEX, and unique themes of insurance, commodity exchange, and logistics or distribution. Moreover, the fund also remains vigilant about the business and growth prospects of these companies.
Nippon India Growth Fund-Growth Scheme Details
The scheme was launched on 8th October 1995 and it has been in existence for the past 26 years. It provides inflation-beating growth of capital over the investment horizon.
NAV and Returns – As of 1st July 2021, the NAV of the fund is Rs 1,765.98. The risk-o-meter of the fund is very high risk. With this risk level, the investor must understand that their principal amount invested is at very high risk. With the existence of 27 years, Nippon India Growth Fund-Growth has delivered a return of 22.3% since its inception.
Minimum Investment – The fund requires a minimum SIP investment of Rs 1000 and a minimum lump sum investment of Rs 5000.
Expense Ratio and Exit Load – The expense ratio charged by the fund is 1.87%. This expense ratio is similar to the expense ratio charged by other AMCs for similar funds. The fund charges an exit load on the redemption of units. The exit load is charged on the units redeemed by the investor at the rate prevailing at the time of the allotment of such units
Exit Load
Condition
NIL
If up to 10% of Units allotted are redeemed or switched out within 1 year from the date of allotment.
1%
For any redemption or switch out in excess of 10% of units allotted within one year from the date of allotment.
NIL
If units are redeemed or switched out after 1 year from the date of allotment.
Fund Manager – The fund is being co-managed by Mr. Dhrumil Shah, Mr. Manish Gunwani, and Mr. Tejas Sheth. Mr. Dhrumil Shah is the assistant fund manager for equity investments. He has an experience of over 13 years in equity research and fund management. He has completed his graduation from Mumbai University. He is a Qualified Chartered Accountant as well. Mr. Shah has been managing the fund as a co-fund manager since February 2019.
Mr. Manish Gunwani is the CIO – Equity Investments at Nippon Life India Asset Management Limited. He possesses experience of over 21 years in equities spanning categories in equity research and fund management. He is the co-founder of a technology company in the document management space. Mr. Gunwani has worked in various fields of equity research and portfolio management including research, product strategy, development of talent in the team, etc. He has been managing the fund since February 2019.
Mr. Tejas Sheth is the Co-Fund Manager & Research Analyst for Equity at Nippon India Mutual Fund. Mr. Sheth has significant experience in Indian Equity Market including research and investment functions. He has been managing Nippon India Growth Fund since May 2019.
Other Details – No lock-in period for the scheme and hence you can redeem your investment anytime. The AUM of Nippon India Growth Fund-Growth as of 1st July 2021 is Rs 9,747 cr. The fund benchmarks to S&P BSE Midcap TR INR. This fund is meant for a long-term minimum investment horizon of 10-15 years. Due to the asset class nature of the scheme, an investor may expect volatility over the short term. Nippon Life India Asset Management Limited was formerly known as Reliance Nippon Life Asset Management Limited.
1 Year Return
76.90%
3 Years Return
18.50%
5 Years Return
16.40%
10 Years Return
14.60%
Returns Updated as of 1st July 2021
Nippon India Growth Fund- Growth Top Stock Holdings
The Nippon India Growth Fund-Growth has invested its assets majorly in the stocks of the following companies:
Company
Percentage of Holding (As of 1st July 2021)
Varun Beverages Limited
4.20%
Cholamandalam Financial Holdings Limited
4%
Ashok Leyland Limited
3.40%
ICICI Bank Limited
3%
L&T Technology Services Limited
2.80%
Max Financial Services Limited
2.80%
Asset Allocation of Nippon India Growth Fund-Growth
The Nippon India Growth Fund-Growth has invested in the following sectors:
Sector
Percentage of Holding (As of 1st July 2021)
Financial Services
23.80%
Consumer Cyclical
18.20%
Basic Materials
12.70%
Consumer Defensive
10.80%
Industrials
8.80%
Technology
7.50%
Healthcare
6.90%
Communication Services
3.90%
Real Estate
2.20%
Utilities
1.30%
Energy
1%
Nippon India Growth Fund- Growth Review
Scripbox recommends Nippon India Growth Fund-Growth for investment within a mid cap mutual fund category. Midcap mutual funds provide inflation-beating growth and capital appreciation over the long term. Nippon India Growth Fund – Growth follows an in-depth research-based approach while investing in equity and equity-related instruments. An investor who is looking for a long-term investment with the goal of wealth creation and capital appreciation may prefer the fund. Moreover, the recommended investment duration is 10-15 years or longer (minimum 5 years).
The fund has a sufficient history of 26 years for analysis. Track record is excellent.
With an AUM or relative size of Rs 9,747 cr, the fund is a leader in size within its category.
The historical performance of the scheme has been good so far. Moreover, the returns earned are similar to other funds in the same category of mutual funds.
How Scripbox Algorithmically Selects Mutual Funds?
Scripbox uses time-tested principles, historical data, and valid assumptions about asset classes. We combine them with a rigorous process to finalize which asset classes make the most sense for specific types of objectives, considering the time needed to achieve them.
Once we select an asset class, our algorithm goes to work to select the best financial products.
The algorithm scores financial products on multiple parameters, giving relevant weights to each of the listed parameters, such as:
Track record of the product – how long has it been around?
Assets under management – how big is it – for example, the size of a mutual fund
Liquidity – how easy is it to move in or out of the product?
Consistency of performance – how much have the returns fluctuated?
The risk associated with the product – what risks impact the product?
Quality of underlying assets – we assess how risky the underlying assets are – for example, by considering bond ratings in the case of debt funds
With such a scientific and detailed approach Scripbox ensures:
