Mutual Fund Comparison: Nippon India Vision Fund vs Nippon India Large Cap Fund

Nippon India Vision Fund – With a pioneering inception dating back nearly three decades, this fund, has consistently catered to investors seeking substantial returns over the long term, underlined by a risk appetite suited for moderate losses.

Nippon India Large Cap Fund – Founded in August 2007, the fund embodies a steadfast commitment to large-cap equities. This fund offers investors a vehicle for capital appreciation over a medium to long-term horizon with a risk profile tailored for moderate losses.

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Comparative Analysis

Aspect Vision Fund – Growth Large Cap Fund – Growth
NAV (5th June 2024) ₹1291.1617 ₹80.6756
Fund Size ₹4536.11 Cr ₹26137.65 Cr
Expense Ratio 1.99% 1.61%
Risk Rating Very High Very High
Investment Strategy Large & Mid Cap stocks Predominantly Large Cap
Investment Horizon 3-4 years 3-4 years

Returns

  • Vision Fund – Growth
    • 1 Year Return: 44.76%
    • 3 Year Return: 80.13%
    • 5 Year Return: 135.24%
    • its 1-year return stands at 44.76%, surpassing the category average of 38.22%. Similarly, its 3-year return of 80.13% and 5-year return of 135.24% indicate sustained growth and robust performance compared to peers.
  • Large Cap Fund – Growth
    • 1 Year Return: 35.63%
    • 3 Year Return: 83.90%
    • 5 Year Return: 121.43%
  • Its 1-year return of 35.63% exceeds the category average of 29.94%, indicating superior performance. Moreover, its 3-year return of 83.90% and 5-year return of 121.43% further validate its consistency and ability to generate significant returns for investors.

Comparative Returns

  • Over 1 year, the Vision Fund has outperformed the large-cap Fund by approximately 9.13%, indicating its ability to capitalize on a broader range of investment opportunities within the Large & mid-cap segment.
  • The 3-year and 5-year returns of both funds also highlight the Vision Fund’s potential for higher growth, as it consistently surpasses the Large Cap Fund by significant margins. 

Portfolio Allocation

  • Vision Fund
    • Large Cap: 48.6%
    • Mid Cap: 24.73%
    • Small Cap: 5%
  • Large Cap Fund
    • Large Cap: 66.31%
    • Mid Cap: 12.8%
    • Small Cap: 3.05%

Risk Ratios 

Risk Ratio Vision Fund – Growth Large Cap Fund – Growth
Standard Deviation 13.65 13.48
Beta 0.96 0.99
Sharpe Ratio 1.04 1.1
Treynor’s Ratio 0.15 0.15
Jension’s Alpha 1.41 5.9

 

Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance does not indicate future results, and investors should research and consult with a financial advisor before making investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.