Nippon India Large Cap Fund Direct Growth is a part of Nippon India Mutual Fund, which was introduced in January 2013.
The Nippon India Large Cap Fund has completed 11 years from inception and currently holds an AUM of Rs. 21453.98 crore. The direct-growth plan has yielded 16.82% CAGR per year since its inception.
If you had invested 1 lakh in 2013, your fund would have grown up to 5 lakhs in 2024.
The fund is benchmarked against the S&P BSE 100 India TRI and holds a moderate risk and expense ratio among the categories.
The minimum lump sum to start investments in this fund is Rs. 100 and the minimum SIP (systematic investment plan) is Rs. 100 per month.
Nippon India Large Cap funds comprise 4 plans,
- Direct Growth Plan (We speak about this plan in this article)
- Regular Growth
- Direct – IDCW (Dividend Plan)
- Regular – IDCW (Dividend Plan)
Here we are sharing the complete details of this Nippon India Large Cap Fund that could make any investor make the right decision before investing.
Nippon India Large Cap Fund Direct Growth NAV:
The current NAV of Nippon India Large Cap Fund direct growth is 82.88 (as of February 9, 2024).
The NAV of other plans of the same Large Cap Funds is
- Regular Growth – 75.23
- IDCW – Regular Plan – 26.6
- IDCW – Direct Plan – 38.8
During the NFO period, all 4 plans had a NAV of Rs. 10. By the above distinction, you could find the Direct-Growth plan helps grow your funds at higher rates than other plans.
Regular plans are best if you need a professional to manage your fund.
Nippon India Large Cap Fund Direct Growth Performance:
The Nippon India Large Cap Fund is an open-ended scheme that invests in large-cap companies (Top 100 companies in the Indian share market per share of market capital).
This fund’s objective was to outperform the benchmark (S&P BSE 100 TRI) with comparatively low risk.
The fund has performed at a CAGR of 16.85% per annum since inception vs. 12.83% to S&P BSE 100 (benchmark). The category average has performed at a CAGR of 15.66%.
Nippon India Large Cap Fund has outperformed its category average in 2 and 5 years of performance.
The fund has grown 73.9% higher than the Nifty 50 index since its inception (January 2013).
A short comparison of the fund’s performance with the benchmark and category average follows.
This fund is a good choice for long-term outperformance if you want to outperform the category average or benchmark over the medium or long term.
The fund has outperformed in 2 and 5 years returns with a CAGR of 23.09% and 19.11%, respectively.
In 2 years of performance, the Nippon India Large Cap Direct Growth Fund has performed 8.02% higher than the benchmark and 8.05% higher than the category average.
In the last 5 years of performance, the Nippon India Direct Growth Fund has performed 2.27% higher than the benchmark and 2.38% higher than the category average.
The same fund has outperformed than benchmark and category for the last 1 year.
Once again, the performance calibration proves that this fund should be invested if your goal is mid or long-term to outperform the category average or benchmark.
Fundamental Analysis Ratios:
- P/B – 3.57
- P/E – 23.71
Nippon India Large Cap Fund Portfolio:
The portfolio of this scheme includes Equity (98.41%) and Cash (1.59%)
Equity Holdings (98.41% of total portfolio):
The fund holds 55 company stocks and is subdivided into three types of classes (as per market capital),
- Large Cap Companies – 63.68%
- Mid Cap Companies – 13.69%
- Small Cap Companies – 2.59%
- Others – 18.45%
Cash Holdings (1.59% of total Portfolio):
- TREPS – 1.89%
- Margin – 0.01%
- Net Receivables – (-)0.31%
Fund Portfolio across Industries:
- Financial – 35.5%
- Technology – 6.3%
- Services – 11.1%
- Energy – 13.9%
- Automobile – 5.3%
- Construction – 5.3%
- Consumer Staples – 9.6%
- Others – 13.0%
Top 20 Holdings:
- HDFC Bank Ltd – 9.27%
- ICICI Bank Ltd – 7.04%
- Reliance Industries Ltd – 6.38%
- State Bank Of India – 5.70%
- ITC Limited – 5.15%
- Larsen & Toubro Ltd – 4.38%
- Axis Bank Ltd – 3.83%
- Tata Power Co. Ltd – 3.63%
- Bajaj Finance Ltd – 3.23%
- NTPC Ltd – 3.18%
- Infosys Ltd – 3.10%
- HCL Technologies Ltd – 2.65%
- Chalet Hotels Ltd – 2.42%
- Indian Hotels Co Ltd – 2.30%
- Tata Motors Ltd – 2.27%
- Hindustan Unilever Ltd – 1.90%
- Zomato Ltd – 1.83%
- EIH Ltd – 1.73%
- Tata Steel Ltd – 1.58%
- GE T&D India Ltd – 1.38%
The Top 5 securities of this scheme cover 33.54% of the overall portfolio, and the Top 20 securities cover 72.95%.
Nippon India Large Cap Fund Direct Growth Risk Ratios:
While investing in mutual funds, you should know the methods of analyzing the risk ratio of any fund.
Standard deviation, Alpha, Beta, and Sharpe ratio are the parameters we usually calculate to predict the volatility and risk on returns.
Here are the details of the 3-year risk factors of the fund vs. category average.
- Standard Deviation – 14.6 vs. 13.92
- Alpha – 5.47 vs (-) 0.26
- Beta – 0.99 vs 0.94
- Sharpe Ratio – 1.17 vs 0.75
The fund has moderately high risk compared to the category average and benchmark.
Nippon India Large Cap Fund Expense Ratio:
The expense ratio plays a crucial role and impacts the performance of any mutual fund scheme.
The expense ratio or TER of Nippon India Large Cap Fund Direct Growth is 0.82%.
The TER of the category average is 0.75%. This is an important reason why the fund has outperformed both the category average and benchmarks in the long term (5+ years).
Here is the expense ratio detail for the same fund with different plans:
- Regular – Growth – 1.68%
- Regular – IDCW – 1.68%
- Direct – IDCW – 0.82%
So, the best plan to choose from this scheme is direct growth. The fund has zero exit loads when redeemed post 1 year and 1% if redeemed within 365 days.
Nippon India Large Cap Fund Managers:
Every mutual fund investor must know about the fund manager and their history.
Two managers manage this fund. Sailesh Raj Bhan and Ashutosh Bhargava.
Sailesh Raj Bhan has been managing this fund since January 2013. Before joining Nippon India AMC, he worked with Emkay Share & Stock Broker Pvt. Ltd, Shah & Sequeira Invst. Pvt. Ltd, ICFAI- Securities Research Center Analyst – Equity Research. Apart from this fund, he manages 5 more schemes in the Nippon India AMC.
Ashutosh Bhargava has been managing this fund since September 2021. Before joining Nippon India AMC, he worked with Reliance Capital Ltd and JP Morgan India Service Pvt. Ltd. Apart from this fund, he managed 8 more schemes in the Nippon India AMC.
Most of the funds managed by these two gentlemen have a good track record of performance.
Conclusion:
- The expense ratio of this fund is lower than the category average.
- Portfolios are well diversified within 55 equity securities and a few cash components.
- Nippon India Large Cap Fund is designed for investors with long-term goals like retirement planning, a dream home, a child’s higher education, and marriage.
- Performance since inception is high compared to the benchmark and category average.
- Hold moderately high risk compared to the category.
- This fund is one of India’s top picks in large-cap mutual funds.
- The fund manager has an amazing track record.