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Fincash » Nippon India Consumption Fund Vs SBI Consumption Opportunities Fund

Nippon India Consumption Fund Vs SBI Consumption Opportunities Fund

Updated on January 24, 2023 , 631 views

Nippon India Consumption Fund (Formerly known as Reliance Consumption Fund) and SBI Consumption Opportunities Fund belong to the equity category of Mutual Funds. Though both the funds focus on the consumption space, there are still many differences between them. This article is to help investors to make a better investment decision between both the funds. As these funds belong to the sector-equity category, they carry a high-risk with them. Thus, investors with a high-risk appetite should only plan to add these schemes in their Portfolio.

Important Information

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.

Nippon India Consumption Fund (Formerly Reliance Consumption Fund)

Nippon India Consumption Fund (earlier known as Reliance Consumption Fund) was launched in the year 2004. The scheme aims to generate long-term Capital appreciation by Investing atleast 80 percent of its net assets in equity and related instruments of the companies that are likely to benefit directly or indirectly from the domestic consumption led demand. Nippon India Consumption Fund has a focussed approach to invest in the potential leaders across the media and entertainment domain. It is well diversified across key segments like the Internet, Broadcasting, Distribution, Print, etc., driven by the relative attractiveness of opportunities and valuations. The fund is jointly managed by Sailesh Raj Bhan and Jahnvee Shah.

SBI Consumption Opportunities Fund (Erstwhile SBI FMCG Fund)

SBI Consumption Opportunities Fund (earlier known as SBI FMCG Fund) was launched in the year 1999. The scheme aims to provide long-term capital appreciation by investing in a diversified portfolio of equity related securities in consumption space. The fund will follow a bottom-up approach to stock-picking and choose companies within the consumption space. SBI Consumption Opportunities Fund is currently managed by Saurabh Pant. Some of the top holdings of the scheme are ITC Ltd, CCIL-Clearing Corporation of India Ltd (CBLO), Colgate Palmolive, Nestle India Ltd, Sheela Foam Ltd, etc.

Nippon India Consumption Fund Vs SBI Consumption Opportunities Fund

Though these schemes belong to the same category, yet these schemes differ on various parameters. So, let us understand the parameters which are divided into four sections, namely, Basics Section, Performance Report, Yearly Performance Report, and Other Details Section.

Basics Section

This section compares the various elements such as Current NAV, Scheme Category, and Fincash Rating. To begin with the scheme category, it can be said that both the schemes- Reliance/Nippon India Consumption Fund and SBI Consumption Opportunities Fund belong to the same category Equity Mutual Fund. With respect to the next parameter, that is, Fincash Rating, it can be said that Reliance Consumption Fund is rated as 2-Star and SBI Consumption Opportunities Fund is rated as 4-Star. In case of Net Asset Value, Nippon India Consumption Fund's NAV as on 16th July 2018 is INR 61.4888, whereas the NAV of SBI Consumption Opportunities Fund is INR 116.222. The table given below summarizes the details of basics section.

Parameters
BasicsNAV
Net Assets (Cr)
Launch Date
Rating
Category
Sub Cat.
Category Rank
Risk
Expense Ratio
Sharpe Ratio
Information Ratio
Alpha Ratio
Benchmark
Exit Load
Nippon India Consumption Fund
Growth
Fund Details
₹123.526 ↓ -1.26   (-1.01 %)
₹304 on 31 Dec 22
30 Sep 04
Equity
Sectoral
30
High
2.65
0.62
0.92
5.8
Not Available
0-1 Years (1%),1 Years and above(NIL)
SBI Consumption Opportunities Fund
Growth
Fund Details
₹203.419 ↓ -0.67   (-0.33 %)
₹1,173 on 31 Dec 22
2 Jan 13
Equity
Sectoral
11
High
2.48
0.66
0.32
6.01
Not Available
0-15 Days (0.5%),15 Days and above(NIL)

Performance Section

The performance section compares the Compounded Annual Growth Rate or CAGR returns between both the schemes at different time periods. With respect to performance, it can be said there is not much difference in the performance of both the schemes. However, in many instances, SBI Consumption Opportunities Fund leads the race. The performance of both the schemes at different time periods is shown below as follows.

Parameters
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
Nippon India Consumption Fund
Growth
Fund Details
-1.6%
-5.4%
4.4%
10.3%
20%
12%
14.7%
SBI Consumption Opportunities Fund
Growth
Fund Details
1.6%
-2.3%
6.7%
13.6%
18.5%
10.6%
14.9%

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Yearly Performance Section

This section deals with the absolute returns generated by both the funds in each year. In this case, we can see that there is a difference in the performance of both the schemes. In certain situations, Reliance Consumption Fund has performed better than SBI Consumption Opportunities Fund. While in some situations, the other scheme has performed better. The yearly performance of both the funds is tabulated as follows.

Parameters
Yearly Performance2022
2021
2020
2019
2018
Nippon India Consumption Fund
Growth
Fund Details
14.2%
31.9%
24.9%
7.3%
-10.4%
SBI Consumption Opportunities Fund
Growth
Fund Details
13.9%
35.6%
13.9%
0.1%
-2%

Other Details Section

This is the last section in the comparison of both the funds. In this section, the parameters such as AUM, Minimum SIP and Lumpsum Investment, and Exit Load are compared. To begin with the minimum SIP investment, it can be said the SIP amounts are different in both the schemes. In case of Nippon India Consumption Fund it is INR 100 while in case of SBI Consumption Opportunities Fund it is INR 500. But, in case of minimum lumpsum investment, the amount is same for both the funds, i.e., INR 5,000. The AUM of both the schemes are also different. As on 31st May, 2018, the AUM of Reliance/ Nippon India Consumption Fund is INR 66 crores, while of SBI Consumption Opportunities Fund is INR 621 crores. The table given below summarizes the other details for both the schemes.

Parameters
Other DetailsMin SIP Investment
Min Investment
Fund Manager
Nippon India Consumption Fund
Growth
Fund Details
₹100
₹5,000
Kinjal Desai - 2.17 Yr.
SBI Consumption Opportunities Fund
Growth
Fund Details
₹500
₹5,000
Saurabh Pant - 11.59 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Nippon India Consumption Fund
Growth
Fund Details
DateValue
31 Dec 17₹10,000
31 Dec 18₹8,955
31 Dec 19₹9,609
31 Dec 20₹12,003
31 Dec 21₹15,832
31 Dec 22₹18,077
Growth of 10,000 investment over the years.
SBI Consumption Opportunities Fund
Growth
Fund Details
DateValue
31 Dec 17₹10,000
31 Dec 18₹9,803
31 Dec 19₹9,816
31 Dec 20₹11,176
31 Dec 21₹15,151
31 Dec 22₹17,252

Detailed Portfolio Comparison

Asset Allocation
Nippon India Consumption Fund
Growth
Fund Details
Asset ClassValue
Cash6.73%
Equity93.26%
Debt0.01%
Equity Sector Allocation
SectorValue
Consumer Cyclical34.58%
Consumer Defensive31.31%
Financial Services9.69%
Communication Services7.21%
Industrials5.32%
Health Care5.15%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ITC Ltd (Consumer Defensive)
Equity, Since 31 May 18 | ITC
7%₹19 Cr555,000
↑ 40,000
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 20 | HINDUNILVR
6%₹17 Cr63,000
↑ 6,000
Westlife Foodworld Ltd (Consumer Cyclical)
Equity, Since 31 May 21 | 505533
5%₹15 Cr202,689
Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 Oct 20 | 532424
4%₹12 Cr138,500
↑ 17,500
United Spirits Ltd (Consumer Defensive)
Equity, Since 31 May 19 | MCDOWELL-N
4%₹12 Cr127,000
↑ 3,500
Sapphire Foods India Ltd (Consumer Cyclical)
Equity, Since 31 Jan 22 | 543397
4%₹12 Cr86,509
↑ 10,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL
4%₹12 Cr137,500
VST Industries Ltd (Consumer Defensive)
Equity, Since 30 Sep 22 | VSTIND
4%₹11 Cr31,500
Voltas Ltd (Industrials)
Equity, Since 30 Nov 22 | VOLTAS
3%₹10 Cr120,000
↑ 120,000
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | M&M
3%₹9 Cr72,500
Asset Allocation
SBI Consumption Opportunities Fund
Growth
Fund Details
Asset ClassValue
Cash2.22%
Equity97.78%
Equity Sector Allocation
SectorValue
Consumer Cyclical40.17%
Consumer Defensive32.12%
Communication Services15.08%
Industrials7.19%
Basic Materials1.98%
Technology1.02%
Health Care0.16%
Utility0.03%
Financial Services0.02%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 20 | BHARTIARTL
9%₹110 Cr1,300,000
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
9%₹104 Cr3,047,000
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 22 | HINDUNILVR
8%₹90 Cr335,000
Page Industries Ltd (Consumer Cyclical)
Equity, Since 31 Jan 20 | 532827
6%₹71 Cr15,000
Procter & Gamble Hygiene and Health Care Ltd (Consumer Defensive)
Equity, Since 30 Apr 21 | PGHH
5%₹54 Cr38,000
Chalet Hotels Ltd (Consumer Cyclical)
Equity, Since 31 Jan 19 | CHALET
4%₹52 Cr1,400,000
Go Fashion (India) Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | 543401
4%₹49 Cr400,000
Hero MotoCorp Ltd (Consumer Cyclical)
Equity, Since 31 May 22 | HEROMOTOCO
4%₹47 Cr165,000
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Jan 20 | MARUTI
4%₹42 Cr47,000
↑ 18,000
Vedant Fashions Ltd (Consumer Cyclical)
Equity, Since 28 Feb 22 | 543463
3%₹41 Cr299,192

Therefore, from the above pointers, it can be said that both the schemes exhibit different attributes with respect to different parameters. However, when it comes to investing, it is always advisable that people should go through the scheme’s modalities completely before doing the actual investment. Additionally, they should also check whether the scheme’s approach is in-line with your investment objective. To get further clarification, you can even consult a financial advisor. This will help you ensure that your investment is safe as well as it paves way for wealth creation.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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