Nippon India Growth Fund outperforms the category average and reports 57.40% returns in last one year

Established on October 8, 1995, the Nippon India Growth Fund has been a cornerstone of the investment landscape, offering investors the opportunity for long-term wealth creation. With a focus on domestic equities and a penchant for high-growth opportunities, the fund has consistently delivered impressive returns while navigating through market fluctuations with resilience and prudence.

Nippon India Growth Fund – Growth Performance


1-Year Growth: Over the past year, the fund has demonstrated remarkable growth, achieving a stellar 57.40% return. This outperformance, compared to both its benchmark, the Nifty Midcap 150 TRI, and the category average, underscores the fund’s ability to capitalize on market opportunities and deliver superior returns to investors.

3-Year Stability: With a steady 3-year Compound Annual Growth Rate (CAGR) of 29.03%, the Nippon India Growth Fund has exhibited resilience and consistency in performance, providing investors with confidence in achieving their long-term financial goals. This stability is indicative of the fund’s disciplined investment approach and focus on sustainable growth.

5-Year Steadiness: Over a 5-year period, the fund has delivered a commendable 26.16% CAGR, reflecting its ability to generate sustained returns over the medium to long term.  The fund has remained steadfast in its pursuit of wealth creation, outperforming its benchmark with diligence and astuteness.

Nippon India Growth Fund – Returns Analysis

The fund’s performance over various timeframes reflects its consistency and reliability in delivering value to investors. The following table presents a detailed overview of the fund’s returns:

Period Absolute Returns Annualised Returns Category Avg Rank within Category
1 Year 57.40% 57.01% 51.87% 7/30
2 Years 90.66% 38.02% 33.76% 6/26
3 Years 114.98% 29.03% 24.35% 3/26
5 Years 219.98% 26.16% 23.83% 4/23
10 Years 487.74% 19.36% 19.01% 9/21
Since Inception 36661.53% 22.88% 22.02% 11/30

Nippon India Growth Fund – Portfolio Composition

Strategic Asset Allocation: The fund maintains a strategic allocation to domestic equities, with 99.38% of its portfolio invested in this asset class. Within equities, the fund allocates 13.98% to large-cap stocks, 51.6% to mid-cap stocks, and 11.75% to small-cap stocks, reflecting a balanced approach to capital appreciation.

Sectoral Exposure: The portfolio encompasses diverse sectors, including financial institutions, household appliances, industrial plastic products, beverages, healthcare, and real estate, among others. This diversified exposure mitigates sector-specific risks while capitalizing on growth opportunities across different segments of the economy.

Top Stock Holdings: The fund’s top holdings include prominent companies such as Power Finance Corporation Ltd., Cholamandalam Financial Holdings Ltd., Voltas Limited, and Supreme Industries Ltd. These holdings represent a blend of market leaders across sectors and contribute to the fund’s performance through consistent growth and value creation.

Nippon India Growth Fund – Comparative Performance

Category 1 D 1 M 3 M 6 M YTD 1 Y 2 Y 3 Y 5 Y
This Fund 3.06% 4.48% 12.66% 21.92% 14.40% 57.01% 38.02% 29.03% 26.16%
Nifty 50 3.25% 3.51% 3.96% 14.78% 7.05% 25.36% 18.41% 14.02% 13.97%
Benchmark: Nifty Midcap 150 TRI 3.01% 5.22% 10.00% 23.73% 16.68% 57.21% 38.24% 27.12% 26.14%
Category Average 3.00% 5.21% 11.88% 23.54% 17.83% 52.02% 33.84% 24.40% 23.86%
Category Rank 11/30 20/30 13/30 19/30 22/30 8/30 6/26 3/26 4/23
Best in Category 3.75% 8.28% 20.15% 38.26% 31.05% 78.08% 43.18% 34.69% 33.95%
Worst in Category 2.22% 1.71% 6.20% 13.01% 9.35% 27.98% 20.41% 17.07% 19.43%

Nippon India Growth Fund – Risk Analysis

Risk Ratio Fund Category Average
Standard Deviation 13.12 12.84
Beta 0.92 0.88
Sharpe Ratio 1.58 1.29
Treynor’s Ratio 0.23 0.19
Jensen’s Alpha 2.93 -0.26

With a higher Sharpe ratio and Jensen’s alpha compared to the category average, the fund demonstrates superior performance in delivering excess returns per unit of risk undertaken.

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.