Nippon India Focused Equity Fund (Formerly known as Reliance Focused Equity Fund) and SBI Focused Equity Fund both belong to the focused fund category of Equity Mutual Funds. Focused funds are a type of Mutual Funds that invest in a limited number of stocks. These funds focus on large-cap, mid, small or multi cap stocks. As per Security and Exchange of India (SEBI), a focused fund can invest in a minimum of 30 stocks. A focused fund scheme can invest at least 60 percent of its total assets in equities. Though both Reliance/Nippon India Focused Equity Fund and SBI Focused Equity Fund belong to the same category, yet they vary in many terms. Thus to make a better investment decision, we have compared both the funds in regard to its AUM, NAV, SIP, etc.
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 Focused Equity Fund (earlier known as Reliance Focused Equity Fund) was launched in the year 26th Dec 2006. The aim of the scheme is to generate long-term Capital growth by Investing in an active and concentrated portfolio of equity and related instruments up to 30 companies across Market capitalization. To generate consistent returns, the scheme invests a portion of the fund in debt, money market securities, REITs and InvITs. The scheme adopts a combination of top-down and bottom-up investment approach to identify sector and stock weightage in the portfolio. Nippon India Focused Equity Fund is currently managed by Vinay Sharma. Some of the top holdings of the scheme as on Jun 30 , 2018 are HDFC Bank Ltd, State Bank of India, ITC Ltd, ICICI Bank Ltd, Tata Motors Ltd, etc.
SBI Focused Equity Fund (earlier known as SBI Emerging Businesses) was launched in the year October 11, 2004. The aim of the scheme is to provide long-term capital appreciation by investing in a concentrated portfolio of equity and related securities of up to 30 companies. SBI Focused Equity Fund follows a bottom-up approach to stock-picking and invests in companies across market capitalization and sectors. The fund is currently managed by R Srinivasan. Some of the top holdings of the scheme as on 31/05/2018 are CCIL- Clearing Corporation of India Ltd (CBLO), HDFC Bank Ltd, Procter & Gamble Hygiene and Health Care Ltd, etc.
The basics section is the first one in the comparison of both the schemes. The parameters that form part of this scheme includes scheme category, Fincash Ratings, and Current NAV. To begin with the scheme category, it can be said that both the schemes belong to the same category, that is, equity focused-cap. With respect to Fincash Ratings, it can be said that both the funds are rated as 2-Star Fund. Coming to the comparison of Net Asset Value, the NAV of Reliance/Nippon India Focused Equity Fund as on 20th July, 2018 was INR 45.1907, and the NAV of SBI Focused Equity Fund was INR 132.294. The table given below summarizes the comparison of both the schemes.
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 Nippon India Focused Equity Fund
₹85.1644 ↑ 0.23 (0.27 %) ₹6,332 on 31 Oct 22 26 Dec 06 ☆☆ Equity Focused 30 Moderately High 2.01 0.14 0.34 1.66 Not Available 0-1 Years (1%),1 Years and above(NIL) SBI Focused Equity Fund
₹237.528 ↑ 2.27 (0.96 %) ₹28,407 on 31 Oct 22 11 Oct 04 ☆☆ Equity Focused 32 Moderately High 1.79 -0.58 -0.23 -8.5 Not Available 0-1 Years (1%),1 Years and above(NIL)
The performance section compares the Compounded Annual Growth Rate or CAGR between both the schemes. This CAGR is compared at different time intervals, namely, 3 Month Return, 6 Month Return, 3 Year Return, 5 Year Return, and Return Since Inception. A holistic comparison of both the schemes shows that both the schemes have performed differently. In some instance SBI Focused Equity Fund has performed better than the other fund. The summary comparison of performance section is tabulated as follows.
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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 many situations, Reliance Focused Equity Fund has performed better than SBI Focused Equity Fund. The yearly performance of both the funds is tabulated as follows.
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, to invest in Reliance Focused Equity Fund the minimum monthly SIP amount is INR 100, whereas for SBI Focused Equity Fund it is INR 500. Similarly, in case of minimum lumpsum investment, the amount for both the schemes are same i.e, INR 5,000. Coming to the AUM, the AUM of Reliance/Nippon India Focused Equity Fund as on 30th June, 2018 was INR 4,295 crores, and the AUM of SBI Focused Equity Fund was INR 2,742 crores. The table given below summarizes the other details for both the schemes.
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.
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