NAV of Nippon India Growth Fund crosses Rs 3,000 in 28.18 years

The Net Asset Value or NAV of Nippon India Growth Fund, a prominent mid cap scheme, crossed Rs 3,000 on December 1. Nippon India Growth Fund is the first Indian mutual fund scheme to reach this mark. The current NAV of the fund's regular plan is Rs 3,052.9619, the direct plan is Rs 3,300.5120. The mid cap scheme has achieved this milestone in 28.18 years.

Nippon India Growth Fund has offered 22.51% returns since inception. The scheme has offered over 20% return in three, five, seven and 10 years. In the three- and five-year horizon, the scheme has returned 31.39% and 23.69% respectively. In the seven year horizon, the scheme offered 20.16%. The scheme gave 20.58% in a 10-year period.

The benchmarks of the scheme have changed many times. The scheme is currently benchmarked against Nifty Midcap 150-TRI. The benchmark has offered 29.83% and 22.52% in three and five year horizons respectively. In a seven year horizon, the benchmark offered 20.18%. In a 10-year horizon, the benchmark has offered 21.93%.


In simple words, the scheme has managed to beat the TRI benchmark in three and five year horizons but failed to beat its benchmark in seven and 10-year horizons.

Based on yearly returns for the last 10 years, the scheme has managed to beat its benchmark in only three years (2018, 2019, and 2022).

The scheme manages assets of Rs 19,081.97 crore as on October. The scheme is among the top five schemes in the category based on assets managed.

A SIP of Rs 10,000 since inception would have now become Rs 19.38 crore with a XIRR of 22.95%. An investment of Rs 1 lakh at the time of launch would have now grown to Rs 3.05 crore with a CAGR of 22.51%.

The scheme is managed by Rupesh Patel, Sanjay Doshi, Kinjal Desai and Akshay Sharma (overseas investments). The portfolio of the fund is diversified among 89 stocks, with top 10 stocks accounting for 25.93%. As on October 31, the fund has 95.87% allocation to equity, and 4.08% in others which include cash and cash equivalents.

As per the scheme information document with data as on September 30, 2023, the scheme has 9,74,587 folios, the highest among all open-ended equity schemes offered by the fund house.

According to the scheme information document, the investment strategy of the scheme is that the portfolio shall be structured so as to keep risk at acceptable levels. This shall be done through various measures including: Broad diversification of portfolio, Ongoing review of relevant market, industry, sector and economic parameters, Investing in companies which have been researched, Investments in debentures and bonds (where the tenure exceeds 18 months) will usually be in investments which have been assigned investment grade ratings by any approved rating agency.