Fincash » Nippon India Small Cap Vs Nippon India Focused Equity Fund
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Nippon India Small Cap Fund (Formerly known as Reliance Small Cap Fund) and Nippon India Focused Equity Fund (Formerly known as Reliance Focused Equity Fund) both belong to the Mid & Small Cap category of Equity Funds. mid cap funds invest their corpus in shares of mid sized companies while Small cap funds invest their corpus in shares of start-ups or small sized companies. These schemes are considered to be a good option for long-term investment. Mid-cap companies have a Market capitalization between INR 500 – INR 10,000 Crores while for small-cap companies it's less than INR 500 Crores. Though both Reliance/Nippon India Small Cap Fund and Reliance/Nippon India Focused Equity Fund belong to the same category of Mid & Small-cap Fund yet, there exists a difference between both the schemes. So, let us understand the differences between both the schemes.
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 Mutual Fund manages and offers Reliance/Nippon India Small Cap Fund. This open-ended small-cap fund was incepted on September 16, 2010. The investment objective of this scheme is divided into two parts. The primary objective is to attain long-term Capital growth by Investing primarily in shares of small-cap companies. While the secondary objective is to generate consistent returns by investing in debt and money market securities. Nippon India/Reliance Small Cap Fund is jointly managed by Mr. Samir Rachh and Mr. Dhrumil Shah. As on March 31, 2018, some of the top holdings of Reliance Small Cap Fund included Navin Fluorine International Limited, Deepak Nitrite Limited, RBL Bank Limited, VIP Industries Limited, and Zydus Wellness Limited.
Nippon India Mutual Fund also offers another scheme titled Nippon India Focused Equity Fund under Mid & Small Cap Category. This open-ended scheme was launched in the year 2006. The fund manager managing Nippon India Focused Equity Fund is Mr. Samir Rachh. The objective of the scheme is to attain long-term capital growth and long-term capital opportunities. The scheme tries to attain the objective by investing in shares of mid and small cap companies. As on March 31, 2018, some of the top holdings of Nippon India Focused Equity Fund’s Portfolio consisted of HDFC Bank Limited, GE Power India Limited, The India Cements Limited, NCC Limited, and Muthoot Finance Limited. As per the scheme’s objectives, it invests around 50-70% in shares of mid-cap companies and the remaining in shares of small-cap companies. Nippon India Focused Equity Fund uses S&P BSE MidSmallCap Index to build its portfolio.
The various comparable elements in case of Reliance/Nippon India Small Cap Fund Vs Nippon India Focused Equity Fund are classified into four sections. They are basics section, performance section, yearly performance section and other details section. So, let us understand the differences between both the schemes based on these sections.
The comparable elements that form part of basics section include current NAV, scheme category, and Fincash Rating. To being with the scheme category, it can be said that both the schemes belong to the same category, that is, Mid & Small-Cap. The comparison of current NAV reveals that both the schemes have almost similar NAV. As on April 20, 2018, the NAV of Reliance/Nippon India Small Cap Fund was approximately INR 46 while of Nippon India Focused Equity Fund was approximately INR 47. The next comparable Factor is, Fincash Rating, which reveals that Reliance/Nippon India Small Cap Fund is rated as 4-Star and Nippon India Focused Equity Fund is rated as 2-Star. The summary of the comparable elements forming part of basics section is tabulated as follows.
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 Small Cap Fund
Growth
Fund Details ₹90.5095 ↑ 0.45 (0.50 %) ₹23,756 on 31 Jan 23 16 Sep 10 ☆☆☆☆ Equity Small Cap 6 Moderately High 1.86 0.13 1.51 8.9 Not Available 0-1 Years (1%),1 Years and above(NIL) Nippon India Focused Equity Fund
Growth
Fund Details ₹77.2321 ↑ 0.70 (0.92 %) ₹6,134 on 31 Jan 23 26 Dec 06 ☆☆ Equity Focused 30 Moderately High 2.01 -0.17 0.27 -0.65 Not Available 0-1 Years (1%),1 Years and above(NIL)
It is the second section in the comparison of both the schemes. It compares the Compounded Annual Growth Rate or CAGR returns of both the schemes. These returns are compared at various time intervals such as 1 Month Return, 6 Month Return, 3 Year Return and Returns Since Inception. The holistic comparison of the performance section reveals that in almost all the instances, Reliance Small Cap Fund has performed better as compared to Nippon India focused fund. The table given below compares the performance section between both the schemes.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Small Cap Fund
Growth
Fund Details -2% -4.4% -1.6% 9% 42.5% 15.3% 19.3% Nippon India Focused Equity Fund
Growth
Fund Details -2.7% -7.3% -5.5% 1.7% 30.2% 10.7% 13.4%
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Yearly Performance Section is the third section in the comparison of both the schemes that compares the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section also reveals that for almost all the years, the performance of Reliance/Nippon India Small Cap Fund is better than the performance of Nippon India Focused Equity Fund. The summary comparison of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Nippon India Small Cap Fund
Growth
Fund Details 6.5% 74.3% 29.2% -2.5% -16.7% Nippon India Focused Equity Fund
Growth
Fund Details 7.7% 36.6% 16.1% 7% -12.7%
Other Details Section is the last section in the comparison of both the schemes. The parameters that form part of the other details section include the AUM, minimum SIP and lump sum investment, and others. To begin with the AUM, it can be said that there is a drastic difference between the AUM of both the schemes. As on March 31, 2018, the AUM of Nippon India Small Cap Fund is INR 6,545 Crores and of Nippon India Focused Equity Fund is INR 3,136 Crores. The minimum SIP and lumpsum investment for Reliance Small Cap Fund and Reliance Mid & Small Cap Fund both are same. The minimum SIP amount for both the schemes is INR 100 while the minimum lumpsum amount is INR 5,000. The summary comparison of other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Small Cap Fund
Growth
Fund Details ₹100 ₹5,000 Samir Rachh - 6.08 Yr. Nippon India Focused Equity Fund
Growth
Fund Details ₹100 ₹5,000 Vinay Sharma - 4.74 Yr.
Nippon India Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹8,055 29 Feb 20 ₹8,463 28 Feb 21 ₹12,369 28 Feb 22 ₹17,427 28 Feb 23 ₹19,697 Nippon India Focused Equity Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹9,035 29 Feb 20 ₹9,312 28 Feb 21 ₹13,435 28 Feb 22 ₹15,453 28 Feb 23 ₹16,003
Nippon India Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.3% Equity 96.7% Equity Sector Allocation
Sector Value Industrials 25.1% Consumer Cyclical 16.53% Basic Materials 15.54% Financial Services 15.32% Consumer Defensive 8.11% Technology 6.64% Health Care 5.35% Communication Services 1.46% Energy 0.58% Real Estate 0.48% Utility 0.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 30 Apr 18 | TIINDIA4% ₹853 Cr 3,267,559 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹433 Cr 2,700,000 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 21 | 5321342% ₹420 Cr 25,045,248 KPIT Technologies Ltd (Technology)
Equity, Since 30 Jun 19 | KPITTECH2% ₹363 Cr 4,756,932
↓ -687,985 Balrampur Chini Mills Ltd (Consumer Defensive)
Equity, Since 28 Feb 19 | BALRAMCHIN1% ₹351 Cr 9,291,212 NIIT Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | NIITLTD1% ₹347 Cr 10,638,553
↑ 240,569 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 21 | LT1% ₹336 Cr 1,583,030 Timken India Ltd (Industrials)
Equity, Since 28 Feb 18 | 5221131% ₹334 Cr 1,067,270 Bajaj Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Mar 16 | BAJAJELEC1% ₹329 Cr 3,062,071 Tejas Networks Ltd (Technology)
Equity, Since 30 Jun 17 | TEJASNET1% ₹327 Cr 5,763,697 Nippon India Focused Equity Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 8.54% Equity 91.46% Equity Sector Allocation
Sector Value Financial Services 32.94% Industrials 13.43% Consumer Cyclical 11.13% Communication Services 9.53% Technology 9.45% Energy 7.66% Consumer Defensive 4.11% Health Care 2.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 19 | 5322158% ₹467 Cr 5,359,888
↑ 200,000 Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY7% ₹439 Cr 2,862,398 State Bank of India (Financial Services)
Equity, Since 28 Feb 17 | SBIN5% ₹329 Cr 5,937,498 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 12 | ICICIBANK5% ₹292 Cr 3,511,739
↑ 420,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 21 | LT4% ₹263 Cr 1,236,860
↓ -250,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 18 | ITC4% ₹252 Cr 7,158,008
↓ -300,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 19 | RELIANCE4% ₹250 Cr 1,064,209
↑ 100,000 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Aug 20 | HDFC4% ₹249 Cr 950,687
↓ -100,000 SBI Cards and Payment Services Ltd Ordinary Shares (Financial Services)
Equity, Since 31 Mar 21 | SBICARD4% ₹240 Cr 3,315,300
↑ 150,000 Coal India Ltd (Energy)
Equity, Since 31 Mar 22 | COALINDIA4% ₹220 Cr 9,763,762
↑ 700,000
Thus, to conclude in a nutshell, it can be said that Nippon India Small Cap Fund and Nippon India Focused Equity Fund differ on numerous parameters. Therefore, individuals should be careful before investing in any of the schemes. In addition, they should check whether the scheme objective matches their investment objective or not. If required, individuals can even take the opinion of financial consultant. This will help them to attain their objectives on time in a hassle-free manner.
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