An Overview
Introduction
Nippon India Small Cap Fund Regular is a prominent choice for investors looking to tap into the growth potential of small-cap companies in India. Launched with a vision to provide long-term capital appreciation, the fund has attracted significant interest due to its strong performance metrics and well-defined investment strategy.
Scheme Launch and Management
The Nippon India Small Cap Fund was launched on Sept 16, 2010 and is currently being managed by Mr. Samir Rachh, a seasoned fund manager with extensive experience in equity markets. His expertise in identifying and investing in small-cap stocks has played a crucial role in the fund’s performance.
Financial Metrics
Total Expense Ratio (TER)
The latest available Total Expense Ratio (TER) for the Nippon India Small Cap Fund Regular is 1.42% against category average 1.84%. This ratio reflects the costs associated with managing the fund and is an important consideration for investors evaluating net returns.
Alpha and Beta
- Alpha: The scheme has exhibited an alpha of approximately 5.78% (category average 3.52%), indicating that it has outperformed its benchmark index after adjusting for risk.
- Beta: The fund’s beta is around 0.86 vs 0.81 category average , suggesting that it is more volatile than peers but less volatile than the overall market. This characteristic is typical for small-cap funds, which can experience more significant price fluctuations.
Sharpe Ratio
The Sharpe Ratio, which measures risk-adjusted returns, stands at 1.32. This indicates that the fund has provided a good return per unit of risk taken, making it an attractive option for risk-aware investors.
Annualized Returns
The fund’s performance has been commendable over various time horizons:
- 1 Year: The annualized return stands at 46.61%.
- 3 Years: The fund has delivered an impressive annualized return of 28.7%.
- 5 Years: Over a longer horizon, the annualized return is approximately 37.83%.
These returns underscore the fund’s ability to capitalize on the growth trajectory of small-cap companies in the Indian economy.
Top 10 Portfolio Holdings
The Nippon India Small Cap Fund Regular focuses on a diversified portfolio to mitigate risk while maximizing growth. As of the latest available data, the top 10 holdings are as follows, please note that the list shown below is dynamic:
- HDFC Bank
- Tube Investments of India ltd
- MCX
- Voltamp Transformers
- Apar Industries
- Kirloskar Brothers
- BHEL
- Tejas Networks
- NLC India
- State Bank of India
Conclusion
Nippon India Small Cap Fund Regular has established itself as a robust investment vehicle for those looking to capitalize on the growth potential of small-cap stocks in India. With a strong track record, effective management, and a diversified portfolio, the fund offers a compelling option for investors seeking long-term capital appreciation. As always, potential investors should consider their risk tolerance and investment horizon before making investment decisions.
Disclaimer
Mutual Fund investing is subject to market risks, read all scheme related documents carefully before investing. Above information is only for education purposes and not a recommendation to invest in the scheme.