Nippon India Large Cap Fund Vs ICICI Prudential Bluechip Fund

Nippon India Large Cap Fund (Formerly known as Reliance Large Cap Fund) and ICICI Prudential Bluechip Fund both belong to the large-cap category of Equity Funds. Large cap funds invest their major portion of the money in the stocks of companies having a market capitalization of more than INR 10,000 Crores. These companies are also known as bluechip companies and show stable performance in terms of returns and profit. Even during economic recessions, the share prices of these companies do not fluctuate much.

Large-cap companies are reputed in their field. Though Reliance/Nippon India Large Cap Fund and ICICI Prudential Bluechip Fund both belong to the same category, nevertheless; they differ on numerous parameters. So, let us understand the differences between these schemes by comparing the different parameters.

Nippon India Large Cap Fund/Reliance Large Cap Fund

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.

The Nippon's large cap fund is divided into two parts. Its primary objective is to earn long-term capital appreciation by Investing in shares of companies belonging to the large-cap category. While its secondary objective is to earn consistent returns by investing in fixed income and money market instruments. This scheme of Nippon Mutual Fund strives to invest in companies that are either leaders or potential leaders and have established business model along with sustainable free cash flows. It also ensures to invest in stocks of high growth companies that have a reasonable valuation and give high returns on equity. Reliance/Nippon Large Cap Fund was incepted on August 08, 2007 and is jointly managed by Mr. Sailesh Raj Bhan and Mr. Ashwani Kumar. Individuals seeking long-term capital growth along with exposure in equity and equity-related instruments of large-cap companies can choose to invest in Reliance Large Cap Fund.

ICICI Prudential Bluechip Fund (Erstwhile ICICI Prudential Focused Bluechip Equity Fund)

ICICI Prudential Bluechip Fund (earlier known as ICICI Prudential Focused Bluechip Equity Fund) aims to earn capital growth in the long-term for its investors. It tries to attain this objective by investing the accumulated fund money in equity and equity-related instruments of large-cap companies predominantly. ICICI Prudential Mutual Fund’s this scheme follows a benchmark hugging strategy which helps to ensure that the Portfolio is well-diversified thereby reducing the risk of concentration. In addition, the company invests in schemes that have a good performance record, fundamentally strong, and are capable of delivering consistent long-term returns. Mr. Rajat Chandak and Mr. Sankaran Naren jointly manage ICICI Prudential Bluechip Fund. The scheme uses Nifty 50 as its benchmark to construct its portfolio.

Nippon India Large Cap Fund Vs ICICI Prudential Bluechip Fund

Though both Nippon India/Reliance Large Cap Fund and ICICI Prudential Bluechip Fund belong to the same category of equity fund, they differ on numerous parameters. So, let us understand the differences between these schemes by analyzing these parameters that are classified into four sections, listed as follows.

Basics Section

It is the first section in the comparison of the schemes. The parameters of this section include current NAV, Fincash Rating, and scheme category. With respect to scheme category, it can be said that both the schemes belong to the same category of Equity Large Cap. Also, based on Fincash Rating, it can be said that both the schemes are rated as 4-Star Funds. However, it can be said that both the schemes differ on account NAV. As on April 26, 2018, the NAV of Nippon India/Reliance Large Cap Fund was approximately INR 32 while of ICICI Prudential Bluechip Fund was around INR 40. The summary of basics section is tabulated as follows.

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns at different time intervals is done in the performance section. These time intervals include 3 Month Return, 1 Year Return, 5 Year Return and Return since Inception. The analysis of performance section shows that in some instances, Reliance Large Cap Fund leads the race and in others, ICICI Prudential Bluechip Fund leads the race. The table given below summarizes the comparison of the performance section.

Yearly Performance Section

It is the third section in the comparison that analyses the differences in the absolute returns of the schemes for a particular year. The comparison of absolute returns also shows that, in certain years, ICICI Prudential Bluechip Fund has performed better while in certain years, Reliance Large Cap Fund has performed better. The summary comparison of the yearly performance section is tabulated as follows.

Other Details Section

Being the last section in the comparison it includes parameters such as AUM, minimum SIP investment, and minimum lumpsum investment. The comparison of minimum lumpsum investment shows that both the schemes have the same amount, that is, INR 5,000. However, the minimum SIP amount for both the schemes is different. In case of Nippon India Large Cap Fund, the minimum SIP amount is INR 100 and for ICICI Prudential Bluechip Fund, the amount is INR 1,000. Also, with respect to NAV, both the schemes differ significantly. As on March 31, 2018, the AUM of Nippon India/Reliance Large Cap Fund is approximately INR 8,825 Crores. On the other hand, the AUM of ICICI Prudential Bluechip Fund is around INR 16,102 Crores. The summary of other details section is as follows.

Growth of 10k Investments over the years