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Fincash » Nippon India Small Cap Vs Nippon India Focused Equity Fund

Nippon India Small Cap Fund Vs Nippon India Focused Equity Fund

Updated on July 8, 2020 , 440 views

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.

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 Small Cap Fund (Formerly Reliance Small Cap Fund)

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 Focused Equity Fund (Formerly Reliance Focused Equity Fund)

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.

Nippon India Small Cap Fund Vs Nippon India Focused Equity Fund

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.

Basics Section

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
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 Small Cap Fund
Growth
Fund Details
₹35.5123 ↓ -0.20   (-0.55 %)
₹6,995 on 30 Apr 20
16 Sep 10
Equity
Small Cap
6
Moderately High
2.49
-0.49
0.97
1.99
Not Available
0-1 Years (1%),1 Years and above(NIL)
Nippon India Focused Equity Fund
Growth
Fund Details
₹42.0173 ↓ -0.15   (-0.36 %)
₹3,323 on 30 Apr 20
26 Dec 06
Equity
Focused
30
Moderately High
2.23
-0.49
-0.79
-0.62
Not Available
0-1 Years (1%),1 Years and above(NIL)

Performance Section

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
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
Nippon India Small Cap Fund
Growth
Fund Details
7.2%
20.4%
-11.2%
-6.8%
-3%
7.7%
13.8%
Nippon India Focused Equity Fund
Growth
Fund Details
7.2%
22%
-12.3%
-9.9%
-2.3%
4.8%
11.2%

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Yearly Performance Section

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 Performance2019
2018
2017
2016
2015
Nippon India Small Cap Fund
Growth
Fund Details
-2.5%
-16.7%
63%
5.6%
15.1%
Nippon India Focused Equity Fund
Growth
Fund Details
7%
-12.7%
42.7%
2.9%
8.3%

Other Details Section

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 DetailsMin SIP Investment
Min Investment
Fund Manager
Nippon India Small Cap Fund
Growth
Fund Details
₹100
₹5,000
Samir Rachh - 3.5 Yr.
Nippon India Focused Equity Fund
Growth
Fund Details
₹100
₹5,000
Vinay Sharma - 2.15 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Nippon India Small Cap Fund
Growth
Fund Details
DateValue
30 Jun 15₹10,000
30 Jun 16₹11,540
30 Jun 17₹15,555
30 Jun 18₹17,344
30 Jun 19₹16,628
30 Jun 20₹14,477
Growth of 10,000 investment over the years.
Nippon India Focused Equity Fund
Growth
Fund Details
DateValue
30 Jun 15₹10,000
30 Jun 16₹11,050
30 Jun 17₹13,583
30 Jun 18₹14,050
30 Jun 19₹14,937
30 Jun 20₹12,456

Detailed Assets & Holdings Comparison

Asset Allocation
Nippon India Small Cap Fund
Growth
Fund Details
Asset ClassValue
Cash2.89%
Equity97.11%
Equity Sector Allocation
SectorValue
Basic Materials25.42%
Industrials19.04%
Consumer Defensive12.75%
Financial Services12.65%
Consumer Cyclical11.7%
Health Care6.28%
Technology3.98%
Communication Services3.47%
Utility1.38%
Energy0.34%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Deepak Nitrite Ltd (Basic Materials)
Equity, Since 31 Dec 16 | 506401
5%₹349 Cr6,997,050
↓ -353,700
Navin Fluorine International Ltd (Basic Materials)
Equity, Since 30 Sep 11 | 532504
4%₹272 Cr1,738,627
Tata Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 May 19 | 500800
3%₹190 Cr5,187,322
Orient Electric Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 May 18 | 541301
3%₹187 Cr11,046,249
Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 30 Apr 18 | 540762
2%₹166 Cr4,515,042
Triparty Repo
CBLO/Reverse Repo | -
2%₹158 Cr
Affle India Ltd (Communication Services)
Equity, Since 31 Jul 19 | 542752
2%₹154 Cr997,132
FDC Ltd (Healthcare)
Equity, Since 31 Aug 12 | 531599
2%₹150 Cr6,060,432
Indian Energy Exchange Ltd (Financial Services)
Equity, Since 29 Feb 20 | 540750
2%₹147 Cr9,000,000
↑ 3,500,000
Birla Corp Ltd (Basic Materials)
Equity, Since 31 May 18 | 500335
2%₹142 Cr2,735,000
↑ 68,525
Asset Allocation
Nippon India Focused Equity Fund
Growth
Fund Details
Asset ClassValue
Cash11.03%
Equity88.97%
Equity Sector Allocation
SectorValue
Financial Services26.78%
Industrials13.57%
Consumer Defensive11.56%
Consumer Cyclical8.95%
Health Care8.43%
Technology8.23%
Energy4.99%
Communication Services4.28%
Utility1.77%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
8%₹270 Cr
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 14 | HDFCBANK
8%₹250 Cr2,630,500
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 12 | ICICIBANK
6%₹185 Cr5,576,100
Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 19 | RELIANCE
5%₹161 Cr1,099,209
↓ -650,791
State Bank of India (Financial Services)
Equity, Since 28 Feb 17 | SBIN
5%₹158 Cr9,782,075
↑ 1,000,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 18 | ITC
5%₹150 Cr7,610,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 20 | BHARTIARTL
4%₹138 Cr2,500,000
↓ -600,000
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 20 | 500696
4%₹138 Cr670,000
↑ 670,000
Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY
4%₹131 Cr1,900,000
↑ 500,000
Motherson Sumi Systems Ltd (Consumer Cyclical)
Equity, Since 31 Jul 18 | MOTHERSUMI
4%₹125 Cr13,079,678
↓ -3,000,000

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.

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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