Nippon India Small Cap Fund

Nippon India Small Cap Fund Direct Growth And Value Research

Nippon India Small Cap Fund (Direct Plan) – Basic Details

Start Date: 01 January 2013

Benchmark: NIFTY SmallCap 250 TRI

Returns since Launch: 24.42%

Type of Fund: Open Ended

% of Assets : Rs. 18,358 Cr (As on 30.06.22)

Expense Ratio: 1.03%

Risk Grade : Average

Return Grade: Above Average

Nippon India Small Cap Fund – Investment Details

Minimum Investment: Rs 5,000/-

Minimum Additional Investment: Rs 1,000/-

Minimum SIP Investment: Rs 1,000/-

Lock in Period: Not Applicable

Nippon India Small Cap Fund NAV (Direct Growth Plan) is Rs 88.48

Nippon India Small Cap Fund – Sector Wise Allocatio

Sector Wise Allocation (Source: Value Research Online)

From the above graph, we can see that major allocation is done in capital goods followed by Chemicals and Financial Sector. There are quite a few good small size companies which form part of this sector. Also, we can see that investment is even made in Consumer Staples, Technology, and Automobile Sector.

Nippon India Small Cap Fund – Top Holdings

Nippon India Small Cap Fund – Top Holdings (Source: Value Research Online)

From the above table, we can see that major investment is in Tube Investments of India in Automobile Sector. Then followed by CreditAccess Grameen in Financial Sector and in also stocks like NIIT and KPIT Technologies in Technology Sector. Fund has also done an investment in Navin Fluorine International in Chemical Industry. The stock selection looks good.

Nippon India Small Cap Fund – Asset Allocation (Source: Value Research Online)

The above table shows that maximum allocation is given to Equity funds which is almost about 97% and the reset to Cash and Cash Equity. With the above allocation, Nippon India Small Cap Fund is capable of giving good returns in the long term with a little more risk.

Nippon India Small Cap Fund – Fund Manager

Mr. Samir Racch is managing the Nippon India Small Cap Fund since January 2017 in a very efficient manner and hopes the fund will do well under him in the future.

Nippon India Small Cap Fund – Trailing Returns

Source: Value Research Online

Though the fund has given negative returns YTD, it has provided a whopping return in 3 years’ time against its benchmark of S&P BSE SmallCap TRI. Even in 1 Year, when the benchmark indices gave a negative return of -4.84%, Nippon India Small Cap Direct Growth Plan gave a return of 7.63% and in 3 years it gave 29.59% returns as compared to 19.55% returns by its benchmark indices . It is evident that the fund is able to build more than its benchmark with a good margin. It is also consistent in outperforming in the Small Cap fund category.

Source: Value Research Online

From the above table, it is evident that if one had invested Rs 1 Lakh in the last 7 years, the investment had grown to Rs. 3.43 Lakhs and SIP of Rs 10,000/- done monthly, the investment would have grown to Rs 18.06 Lakhs.

Nippon India Small Cap Fund – Risk Parameters

Source: Value Research Online

Above table shows Mean returns ie, average returns in a year is 28.02% which is more than both the benchmark indices. Here, the higher the Mean value is Better for the growth. Secondly, the Standard Deviation is of 28.46% which is lower than the benchmark indices. Here, the lower the Standard Deviation, it is Better. Third, Sharpe Ratio is higher than Benchmark Indices. Here, the higher the Sharpe Ratio shows the fund is performing better. Volatility is measured in terms of Beta which is 0.92 which must be lower. Also the Alpha Ratio of 9.01 is higher than the Benchmark Indices. The higher the alpha is the better.

Is Nippon India Small Cap Fund Good?

Well, if you wish to invest for a longer period of time, you can go ahead and invest in Nippon India Small Cap Fund Direct Growth plan. Once can expect gains that will surely and comfortably beat the Inflation Rate. One can invest through the monthly SIP route.

Frequently Asked Questions:

1. What is the Nippon India Small Cap Fund NAV Direct Growth Plan?

The Current Nippon India Small Cap Fund NAV is Rs. 88.48 (as on 15.07.2.22)

2. When was Nippon India Small Cap Fund NAV Direct Growth Plan started?

Nippon India Small Cap Fund NAV Direct Growth Plan was started on 01st January 2013

3. Is Nippon India Small Cap Fund NAV Direct Growth Plan Safe to invest in?

Nippon India Small Cap Fund NAV Direct Growth Plan is a high-risk fund to invest in. But one can invest in this fund if you are investing for the long term.

4. Who is the Owner of Nippon India?

Nippon India is managed by Nippon India Mutual Fund.

5. Is Nippon owned by Reliance?

Reliance Mutual Fund has been renamed Nippon India Mutual Fund

Disclaimer: I am not a Certified Financial Planner and this article is for Information Purpose Only. Please consult your Financial Advisor before taking any financial decisions. All the data used here are taken from value research online.

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