Nippon India Flexi Cap Fund is a mutual fund that invests in equity and equity-related securities across large-cap, mid-cap, and small-cap companies in India. These funds generate capital appreciation and provide long-term growth opportunities by investing in a diversified portfolio of stocks. It allows investors to invest across large-cap, mid-cap, and small-cap stocks.
An Overview of Nippon India Flexi Cap Fund
Nippon India Flexi Cap Fund is an actively managed equity mutual fund. These funds are provided by Nippon Life Asset Management Limited, also known as Reliance Nippon Life Asset Management Limited, which is one of the top mutual fund companies in India. It aims to capitalize on growth opportunities in the Indian equity markets with a skilled team of fund managers. Investors benefit from the fund's liquidity and the potential for balanced returns across different market segments.
In Nippon India fund, the fund manager allocates the fund's assets across various sectors and stocks based on their analysis of market conditions and potential investment opportunities. This diversification helps spread the investment risk and allows the fund manager to take advantage of opportunities in different segments of the market.
Key Features of Nippon India Flexi Cap Fund
Here are the key features of this fund:
Risk Level
The fund is classified as a moderately high-risk investment.
Market Cap Allocation
The Nippon Flexi Cap fund invests across large, mid, and small caps based on market view and relative attractiveness.
Performance
As of September 2023, the Flexi Cap fund has a 1-year CAGR of 20.55%, a 5-year CAGR of 12.11%, and a since inception CAGR of 12.11%.
Expense Ratio
The expense ratio of the Nippon India Flexi fund is 1.75%.
Benchmark
The benchmark for the fund is the Nifty 500 TRI.
Investment Approach
The Flexi Cap fund aims for excess return through bottom-up stock selection and appropriate allocation to potentially high-growth themes while maintaining reasonable allocations to established leaders. The fund has a well-diversified portfolio across stocks and sectors.
Flexibility
The fund has a flexible approach which helps to generate excess returns by investing in the best opportunities across market caps. Read about Flexi Cap Funds.
Diversification
The Nippon India Flexi-Cap fund provides investors diversification by dynamically shifting between the market cap segments.
Nippon India Flexi Cap Fund's Investment Strategy
The fund follows a flexible investment strategy that allows the fund manager to invest across different market capitalizations and sectors based on their analysis and market conditions. Here are some key aspects of the fund's investment strategy:
Market Capitalization
Nippon India fund has the flexibility to invest in companies of market capitalizations including large-cap, mid-cap, and small-cap stocks. This allows the fund manager to take advantage of opportunities across the financial market.
Sector Allocation
Nippon Flexi Cap fund aims to create a diversified portfolio by investing in companies from various sectors. The allocation to different sectors varies based on the fund manager's outlook on the sector's growth potential and market conditions.
Active Management
The Nippon Flexi fund is actively managed which means that the fund manager actively selects and manages the portfolio holdings. The manager conducts in-depth research and analysis to identify investment opportunities and make investment decisions.
Bottom-up Approach
The fund manager focuses on individual stock selection rather than making top-down sector bets. They analyze the fundamentals of companies, including financial performance, competitive positioning, and growth prospects, to identify potential investments.
Risk Management
The fund aims to manage risk through diversification across sectors and market capitalizations. The fund manager also uses risk management techniques such as hedging strategies to mitigate potential downside risks.
Ways to Invest in Nippon India Flexi Cap Fund
Investing in Nippon India Flexi Cap Fund is a simple process that can be completed online or offline. Here are the steps to invest in this fund:
Online:
- Visit the website of a mutual fund distributor or the Nippon India Mutual Fund website.
- Click on the "Invest Now" button.
- Provide your personal and bank details.
- Choose the Nippon India Flexi-Cap Fund and the investment amount.
- Go through the KYC (Know Your Customer) process.
- Make the payment online.
Offline:
- Visit the nearest branch of Nippon India Mutual Fund or a mutual fund distributor.
- Fill out the application form for the Nippon India Flexi-Cap Fund.
- Submit the form along with the necessary documents and investment amount.
- Go through the KYC process (Know Your Customer).
Investors can also invest in the fund through intermediaries, brokers, or platforms like Scrip Box. The minimum investment amount for the fund is Rs.1000 for lump sum and SIP investments. Investors should consult their financial advisers if they are in doubt about the product’s suitability.
Latest Asset & Portfolio Allocation
As of September 2023, Nippon India Flexi Cap Fund's allocation indicates a strategic distribution across asset classes and market segments:
- The fund has allocated 97.49% of its assets to equity investments.
- The allocation to debt instruments is minimal with only 0.02% of the fund's assets invested in debt securities.
- The remaining 2.49% of the fund's assets are allocated to other categories which may include cash, money market instruments, or alternative investments.
Top stocks holdings include:
HDFC Bank Ltd.
HDFC Bank Ltd. has a significant allocation of 7.84%. It is known for its strong financial performance and extensive branch network in India.
ICICI Bank Ltd.
ICICI Bank Ltd. has an allocation of 4.77% of the fund. It is another prominent private-sector bank in India. It provides multiple banking and financial services to customers.
Infosys Ltd.
Infosys Ltd. has an allocation of 4.6%. It is a renowned multinational information technology company. It provides software development, consulting, and outsourcing services to clients across various industries.
Axis Bank Ltd.
Axis Bank Ltd. has an allocation of 4.1% of the fund. It is also one of the major private-sector banks in India. It also provides multiple financial products and services to customers.
These holdings represent a significant portion of the fund's equity portfolio.
Annual Returns & Growth Plans of Nippon India Flexi Cap Fund
As of February 15, 2024, the Nippon India Flexi Cap Fund NAV for Regular Plan was ₹14.3576. Whereas, The Nippon India Flexi Cap Fund direct growth plan has an AUM of ₹5,961 Crores with an expense ratio of 0.54%.
Since its inception on July 26, 2021, the fund has delivered 17.84% average annual returns. This indicates a strong performance over its relatively short existence. The fund primarily invests in the Financials, Services, Technology, Automobile, and Capital Goods sectors.
Final Words
Nippon India Flexi Cap Fund is an effective investment option for investors that provides flexibility across large, mid, and small-cap stocks. It aims to balance risk and returns effectively. The latest asset allocation and top holdings showcase a strategic investment strategy. It has delivered impressive returns when compared with other Flexi Cap funds. It's best to seek advice from a financial advisor if you're not certain about whether your funds are suitable or not.