Fincash » Mirae Asset India Equity Fund Vs Nippon India Large Cap Fund
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There are a number of differences between Mirae Asset India Equity Fund and Nippon India Large Cap Fund (Formerly known as Reliance Large Cap Fund) on the Basis of various parameters. These differences exist even though both the schemes belong to the same category of Large cap funds. In simple terms, a Mutual Fund scheme that invests its accumulated money in stocks of well-reputed companies is known as large-cap funds. The Market capitalization of large-cap funds is more than INR 10,000 Crores.
In addition, these schemes generally tend to give a stable performance with respect to returns and turnover. Large-cap companies are also known as bluechip companies. As per historical records, it is noticed that the share prices of large-caps do not fluctuate much during economic downturns as compared to mid & small cap. So, let us understand the differences between these schemes by comparing various parameters.
Mirae Asset India Equity Fund (earlier known as Mirae Asset India Opportunities Fund) is offered and managed by Mirae Asset Mutual Fund. The investment objective of Mirae Asset India Equity Fund is to attain Capital growth in the long-term by Investing in stocks equity and equity-related securities. The Portfolio of Mirae Asset India Equity Fund is constructed on the basis of core and tactical portions. Here, the core portion takes care of investing in quality businesses from a long-term perspective and the tactical portion tries to take advantage of short and medium-term opportunities. Mirae Asset India Equity Fund uses S&P BSE 200 Index as its benchmark to construct its portfolio. Some of the features of this Mirae Asset India Mutual Fund are risk mitigation, bottom-up approach of stock selection, and active portfolio management.
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.
This large cap fund aims for capital appreciation in the long-term by mainly investing in equity and equity-related instruments of large-cap companies. Additionally, it also aims to invest in fixed Income and money market instruments with an objective of earning consistent returns. Reliance Large Cap Fund was incepted on August 08, 2007, and is jointly managed by Mr. Sailesh Raj Bhan and Mr. Ashwani Kumar. This scheme aims to invest in growth companies having reasonable valuations and generate high returns on equity. The scheme also identifies the companies that are potential leaders and have established business models along with sustainable cash flows. HDFC Bank Limited, State Bank of India, Larsen & Toubro Limited, Tata Steel Limited, and Infosys Limited are some of the top holdings that form part of Nippon India/Reliance Large Cap Fund’s portfolio as on March 31, 2018.
Though Mirae Asset India Equity Fund and Reliance Large Cap Fund belong to the same category of Equity Funds, nevertheless; there are numerous differences between them. So, let us analyze the differences between the schemes with the help of the following sections listed below.
It is the first section in the comparison of both the schemes. The parameters that form part of the basics section include current NAV, scheme category, and Fincash Rating. To begin with the current NAV, it can be said that there exists a difference between both the schemes. The NAV of Mirae Asset India Equity Fund was approximately INR 47 and of Reliance Large Cap Fund was around INR 32 as on April 30, 2018. With respect to Fincash Rating, it can be said that Mirae Asset India Equity Fund is a 5-Star rated scheme and Nippon India/Reliance Large Cap Fund is a 4-Star rated scheme. The comparison of scheme category shows that both the schemes belong to the same category of Equity Large Cap. The table given below shows the comparison of the basics section.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Mirae Asset India Equity Fund
Growth
Fund Details ₹75.092 ↓ -0.55 (-0.73 %) ₹32,911 on 28 Feb 23 4 Apr 08 ☆☆☆☆☆ Equity Multi Cap 19 Moderately High 1.23 -0.14 -0.36 0.22 Not Available 0-1 Years (1%),1 Years and above(NIL) Nippon India Large Cap Fund
Growth
Fund Details ₹52.842 ↓ -0.47 (-0.88 %) ₹12,525 on 28 Feb 23 8 Aug 07 ☆☆☆☆ Equity Large Cap 20 Moderately High 1.88 0.44 0.06 6.49 Not Available 0-1 Years (1%),1 Years and above(NIL)
The comparison of Compounded Annual Growth Rate or CAGR returns at different time intervals is done in the performance section. These time intervals include 1 Month Return, 6 Month Return, 3 Year Return, 5 Year Return, and Return since Inception. The comparison of the performance section states that in many instances, Mirae Asset India Equity Fund leads the race. The summary of performance section is as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Mirae Asset India Equity Fund
Growth
Fund Details -3% -4.2% -3.3% -1.6% 28.5% 11.1% 14.4% Nippon India Large Cap Fund
Growth
Fund Details -2.3% -1.8% -0.9% 6.2% 33.2% 11.6% 11.2%
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Absolute Returns of the schemes generated for each year is compared in the yearly performance section. The comparison of absolute returns also states that Mirae Asset India Equity Fund has performed better in many years. The summary of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Mirae Asset India Equity Fund
Growth
Fund Details 1.6% 27.7% 13.7% 12.7% -0.6% Nippon India Large Cap Fund
Growth
Fund Details 11.3% 32.4% 4.9% 7.3% -0.2%
AUM, minimum SIP and lumpsum investment, and other related parameters are the elements that form part of the other details section. It is the last section in the comparison of the schemes. With respect to the AUM, it can be said that there is a difference between both the schemes on account of AUM. As on March 31, 2018, the AUM of Mirae Asset India Equity Fund was around INR 6,775 Crores and of Reliance Large Cap Fund was nearly INR 8,825 Crores. The minimum lumpsum investment for both the schemes is same, that is, INR 5,000. However, there is a difference in the minimum SIP investment of the schemes. The minimum SIP investment in case of Mirae Asset Mutual Fund’s scheme is INR 1,000 and of Nippon India/Reliance Mutual Fund’s scheme is INR 100. The summary comparison of the other details section is as shown below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Mirae Asset India Equity Fund
Growth
Fund Details ₹1,000 ₹5,000 Gaurav Khandelwal - 1.29 Yr. Nippon India Large Cap Fund
Growth
Fund Details ₹100 ₹5,000 Sailesh Raj Bhan - 15.5 Yr.
Mirae Asset India Equity Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,136 29 Feb 20 ₹10,798 28 Feb 21 ₹13,899 28 Feb 22 ₹15,947 28 Feb 23 ₹16,368 Nippon India Large Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹9,983 29 Feb 20 ₹10,082 28 Feb 21 ₹12,613 28 Feb 22 ₹14,781 28 Feb 23 ₹16,479
Mirae Asset India Equity Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.62% Equity 99.37% Other 0% Equity Sector Allocation
Sector Value Financial Services 37.3% Technology 13.02% Consumer Cyclical 10.22% Energy 8.11% Industrials 7.91% Consumer Defensive 6.59% Health Care 6.1% Basic Materials 4.83% Communication Services 3.69% Utility 1.61% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 09 | HDFCBANK11% ₹3,615 Cr 22,546,579 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK9% ₹2,925 Cr 35,161,348 Infosys Ltd (Technology)
Equity, Since 31 May 08 | INFY7% ₹2,458 Cr 16,027,333 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 08 | RELIANCE7% ₹2,451 Cr 10,413,270
↑ 1,348,589 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 14 | 5322155% ₹1,579 Cr 18,120,703
↓ -243,309 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 10 | BHARTIARTL4% ₹1,232 Cr 15,993,386
↑ 80,212 State Bank of India (Financial Services)
Equity, Since 31 Jul 08 | SBIN3% ₹1,121 Cr 20,260,399
↓ -834,440 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 08 | HDFC3% ₹1,049 Cr 4,000,090
↑ 512,805 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT3% ₹999 Cr 4,703,308 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Mar 12 | MARUTI3% ₹969 Cr 1,088,850
↓ -82,206 Nippon India Large Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.08% Equity 98.92% Equity Sector Allocation
Sector Value Financial Services 35.31% Consumer Cyclical 12.86% Industrials 12.3% Consumer Defensive 9.36% Technology 9.26% Energy 8.75% Health Care 3.86% Basic Materials 3.36% Utility 2.16% Communication Services 1.7% Top Securities Holdings / Portfolio
Name Holding Value Quantity Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 07 | LT7% ₹850 Cr 4,000,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE7% ₹824 Cr 3,500,000
↑ 200,000 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 19 | HDFC6% ₹787 Cr 3,000,315
↓ -200,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 08 | HDFCBANK6% ₹725 Cr 4,524,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK6% ₹690 Cr 8,300,000
↑ 800,000 State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | SBIN5% ₹637 Cr 11,500,644
↓ -500,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 16 | ITC5% ₹617 Cr 17,500,000 Infosys Ltd (Technology)
Equity, Since 30 Sep 07 | INFY4% ₹506 Cr 3,300,084
↓ -300,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 19 | HCLTECH4% ₹494 Cr 4,400,927 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 15 | 5322154% ₹479 Cr 5,500,080
Thus, to conclude in a nutshell, it can be said that both the schemes differ on numerous accounts. Consequently, individuals should be cautious while investing in any of the schemes. They should understand whether the scheme matches their investment objectives or not. Additionally, they should understand the functioning of the scheme thoroughly. If required, individuals can also consult a financial advisor. This will help individuals to attain their objective on time and ensure that their investment is safe.