Nippon India Multi Cap Fund

Diversified

Equity

India Multi Asset

Others

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Nippon India Multi Cap Fund - Growth invests across all company sizes in India for flexible growth.

What This Strategy Does

Nippon India Multi Cap Fund - Growth is an equity flexi-cap fund which captures India's ₹200 trillion consumption and private capex opportunity through a multi-pronged investment approach, deploying capital across financials, industrials, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated benchmark-beating outcomes across market cycles, outperforming in 6 out of the last 12 years through resilient earnings delivery and downside protection.

Differentiated Construction

The fund's multi-pronged approach, including exposure to emerging themes, value tilt, and sector/thematic bets, distinguishes its portfolio construction from peers.

Domestic Growth Focus

With a tilt towards domestic cyclical sectors, the fund is well-positioned to capitalize on India's structural growth trends, provided the earnings outlook remains supportive.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

-1.2% AnnuallyAlpha

+13.9% vs +9.9% benchmarkSince Inception

+12.0% vs +6.3% benchmark3Y Annualized

+16.4% vs +6.5% benchmark5Y Annualized

Nippon India Multi Cap Fund

Benchmark Index

Benchmark Performance Comparison

Nippon India Multi Cap Fund

NIFTY 50

Risk Profile

Standard Deviation17.7%

Maximum Drawdown-18.1% | Oct 2024

Sharpe Ratio-0.19

Beta0.90

Upside Capture98%

Detailed Risks

Market Risk

Potential recession in India driven by slowing global growth could undermine consumer demand, impacting fund holdings; however, multi-cap exposure mitigates cyclical downside.

Liquidity Risk

Elevated volatility or redemptions could strain liquidity for mid-cap positions, hindering rebalancing; large-cap bias and cash buffers provide mitigation.

Concentration Risk

Concentrated exposure to Indian banks facing asset quality pressures and fintech disruption; diversification across sectors and market caps limits downside.

Specific Strategy Risk

Regulatory tightening on corporate governance or foreign investment could pressure Indian equities; rigorous monitoring and portfolio adjustments mitigate impact.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Delivers flexibility that matters during market transitions. By investing across capitalizations without constraints, this approach allows fund managers to rotate capital toward the best risk-reward opportunities—whether that's defensiveness in large caps during uncertainty or growth capture in smaller companies during expansions. This adaptability can smooth portfolio returns across varying market conditions.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovery gaining traction. This normalization backdrop, supported by trends like reviving capex and credit growth, offers an attractive entry point. The strategy's tilt towards consumer, financial services and technology aligns with beneficiaries of the demand upswing, although competitive pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the evolving opportunity set, with sizeable exposure to consumer cyclicals, defensives, financials and technology. The portfolio's ~70 holdings include market leaders across these segments, balancing growth and stability. A moderate beta and diversification suggest a risk-adjusted stance aligned with the cycle's dynamics, differentiating it from passive approaches.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach can provide exposure to resilient businesses with pricing power and sustainable growth trajectories.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across market capitalizations and sectors, with a focus on those demonstrating strong fundamentals and attractive long-term growth prospects. Selection: The selection process suggests a preference for companies with defensible business models, robust cash flow generation, and attractive returns on invested capital, while maintaining valuation discipline. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach, balancing risk management with the pursuit of alpha through active stock selection.

Portfolio Holdings Overview

SectoralAllocation

Utilities6.77%

Consumers28.09%

Financial Services23.85%

Capital Goods23.31%

Services11.2%

Energy & Infra2.07%

Technology4.71%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

HDFC Bank LtdFinancial Services6.16%

ICICI Bank LtdFinancial Services4.10%

Axis Bank LtdFinancial Services3.41%

GE Vernova T&D India LtdCapital Goods2.57%

Infosys LtdTechnology2.57%

NTPC LtdUtilities2.26%

Linde India LtdCapital Goods2.12%

Reliance Industries LtdEnergy & Infra2.06%

Max Financial Services LtdFinancial Services2.00%

Larsen & Toubro LtdCapital Goods1.90%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Sailesh Raj Bhan

Mr. Sailesh Raj Bhan has experience of 31 years. Manages 27 funds at Nippon Life India Asset Management Ltd with an AUM of approximately ₹1,00,704 Cr Holds a M.B.A. degree.

46 years

Combined Team Experience

₹ 3,01,039 Cr

Assets Under Management

Kinjal Desai

Co-Portfolio Manager

Ms. Kinjal Desai has experience of 14 years. Manages 509 funds at Nippon Life India Asset Management Ltd with an AUM of approximately ₹2,00,334 Cr Holds a M.sc degree.

CW Expert Take

Nippon India focuses on fundamental research with contrarian tendencies. Their investment teams are known for taking differentiated positions backed by bottom-up analysis. The fund house demonstrates flexibility in asset allocation while maintaining risk discipline—useful across their equity growth strategies and duration management in debt.

Firm Overview

Total AUM₹6,44,104.16 Cr

Investment Philosophy & Approach

Disciplined Approach

Employs a robust, research-driven investment process focused on growth-at-reasonable-price opportunities.

Multi-Cap Flexibility

Maintains meaningful exposure across market caps to capitalize on opportunities.

Conviction Investing

Takes calculated sector/thematic bets based on rigorous fundamental analysis.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.23%

Exit Load1

Regulatory & Tax Information

INF204K01489

ISIN

DailyDealing Frequency

Nifty 500 Multicap 50:25:25 TR INRBenchmark

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)