Nippon India Growth Fund was launched on October 8, 1995. On September 30, 2024, its NAV was Rs 4,248.32. It has grown to a size of Rs 33,706.68 crore. The expense ratio of the fund is 1.59% against a category average of 1.83%. It is categorised as “very high” o the risk-o-meter.
Nippon India is one of the country’s most prominent and popular AMCs (asset management companies). It was born as a JV between Reliance Mutual Fund and Nippon Life Insurance Company in 1995 but in 2019 the latter bought out Reliance’s stake. The AMC has about 450 MF schemes in all.
Great return generator
If a person invested Rs 10,000 in Nippon India Growth Fund 6 months ago, he/she would have got a value of Rs 13,019; 1 year ago he/she would have got Rs 15,349; 2 years ago would have been rewarded with Rs 19,874; 3 years ago would have got a value of Rs 20,752; 5 years ago would have got Rs 39,192. If Rs 10,000 was invested 10 years ago, it would have generated Rs 60,191 and if invested on the day of launch, Nippon India Growth Fund would have returned Rs 42,48,327 or Rs 42.48 lakh.
SIP returns
The SIP (systematic investment plan) returns have been spectacular too. A SIP of Rs 1,000 a month would have returned Rs 15,354 in 1 year; Rs 37,994 in 2 years; Rs 63,341 over 3 years; Rs 1,46,016 in 5 years and Rs 4,22,998 in 10 years.
Portfolio, top stocks
According to Value Research, the sectors where this fund has deployed a lot of cash are financial (21.88%), consumer discretionary (19.17%), industrials (16.29%), healthcare (11.51%), technology (9.53%), materials (6.84%) and energy & utilities (5.89%).
The top stocks that Nippon India Growth Fund has invested in include Power Finance Corporation, Federal Bank, Supreme Industries, National Thermal Power Corporation, Indus Towers, Voltas, Cholamandalam Financial Holdings, Persistent Systems, Prestige Estate Projects and Fortis Healthcare.
Low volatility
Nippon India Growth Fund has a beta of 0.93%, which indicates lower volatility than the benchmark index (BSE 150 MidCap TRI). The fund has also recorded an alpha of 2.23%.
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Nippon India Growth Fund is one of the mid-cap funds that has consistently turned in stellar performance down the years. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
