Axis Focused 25 Fund Vs Nippon India Large Cap Fund

Axis Focused 25 Fund and Nippon India Large Cap Fund (Formerly known as Reliance Large Cap Fund), both schemes are a part of the same category of large-cap fund. However, both the schemes exhibit different attributes. In simple words, the Mutual Fund schemes that invest their pooled money in big businesses are known as Large cap funds. These companies are huge with respect to their size, capital, and human resources. These companies are considered to deliver consistent performance with respect to their turnover and returns. The market capitalization of these large-cap companies is above INR 10,000 Crores. Even when the economy is not performing well, the share prices of these companies do not fluctuate much. So, let us understand the differences between Axis Focused 25 Fund and Nippon India Large Cap Fund by analyzing numerous parameters such as current NAV, AUM, and others through this article.

About Axis Focused 25 Fund

Axis Focused 25 Fund uses Nifty 50 Index as its benchmark to construct its index. The objective of Axis Focused 25 Fund is to attain capital appreciation in the long-term tenure by Investing the pooled money in a concentrated Portfolio of equity and equity-related instruments to a maximum of 25 companies. Mr. Jinesh Gopani is the sole fund manager managing the Axis Focused 25 Fund. As on March 31, 2018, some of the top constituents of Axis Focused 25 Fund include Bajaj Finance Limited, HDFC Bank Limited, Motherson Sumi Systems Limited, and Supreme Industries Limited. This scheme was launched on June 29, 2012. Some of the features of Axis Focused 25 Fund include embedded risk management to manage risks of portfolio concentration and high conviction investing.

Nippon India Large Cap Fund (Formerly Reliance Large Cap Fund)

Important- From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.

The fund was launched on August 08, 2007. It is suitable for investors looking for long-term capital growth by investing in equity and equity-related instruments. Nippon India Mutual Fund’s this scheme’s objective is to aim for long-term capital growth by investing a significant portion of the fund money in equity and equity-related securities of large-cap companies. In addition, the scheme also aims to generate consistent returns by investing in fixed income instruments. HDFC Bank Limited, State Bank of India, Larsen & Toubro Limited, Tata Steel Limited, and Infosys Limited are some of the top holdings of Reliance/Nippon India Large Cap Fund as of March 31, 2018. The scheme attempts to invest in companies having growth potentials along with high returns on equity and have reasonable valuations.

Axis Focused 25 Fund Vs Reliance Large Cap Fund

Both Axis Focused 25 Fund and Reliance Large Cap Fund differ on numerous accounts. So, let’s understand the differences between these schemes by analyzing these parameters that are classified into four sections. These sections are explained as follows.

Basics Section

The comparable elements forming part of this basics section include current NAV, Fincash Rating, and scheme category. To begin with the NAV, it can be said that both the schemes differ on account of NAV. As on April 26, 2018, the NAV of Axis Focused 25 Fund was around INR 32 and of Reliance Large Cap Fund was nearly INR 27. The comparison of the Fincash Rating states that Axis Focused 25 Fund is rated as 5-Star and Reliance/Nippon India Large Cap Fund is rated as 4-Star. Equity Large Cap is the scheme category of both the schemes. The summary comparison of the basics section is as follows.

Performance Section

It is the second section in the comparison that analyzes the Compounded Annual Growth Rate or CAGR returns between both the schemes at different time intervals. The comparison of the performance sections states that Axis Focused 25 Fund leads the race in many instances. Moreover, there is a drastic difference between the returns generated by both the schemes. The summary comparison of the performance section is as shown in the table given below.

Yearly Performance Section

The analysis of the absolute returns generated by both the schemes for a particular year is done in this section. The comparison of the yearly performance section states that in certain instances Axis Focused 25 Fund leads the race while in other Nippon India Large Cap Fund leads the race. The summary of the yearly performance section is tabulated as follows.

Other Details Section

It is the last section in the comparison. The comparable elements that form part of the other details section include AUM, minimum SIP investment, and minimum Lumpsum investment. The minimum lumpsum amount for both the schemes is same, that is, INR 5,000. However, the minimum SIP investment in case of Reliance Top 200 Fund is INR 100 and for Axis Focused 25 Fund is INR 5,000. Also, with respect to AUM, both the schemes differ. The AUM of Nippon India/Reliance Large Cap Fund was approximately INR 8,825 Crores while of Axis Focused 25 Fund was around INR 3,154 Crores as on March 31, 2018. The table given below shows the briefs the comparison of the other details section.

Growth of 10k Investments over the years