Nippon India Power & Infra Fund

All Cap

Energy & Utilities

Equity

India Growth

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 Power & Infra Fund - Growth focuses on Indian infrastructure and construction companies for growth.

What This Strategy Does

Nippon India Power & Infra Fund - Growth is an equity fund which captures India's infrastructure and industrialization opportunity through a concentrated portfolio deploying capital across industrials, utilities, and energy sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Resilient Downside Protection

The fund has demonstrated consistent downside protection across market cycles, outperforming its benchmark in 8 of the past 12 years.

Concentrated Industrials Exposure

The strategy's differentiated approach overweights the industrials sector at 36.9%, expressing conviction in companies like Larsen & Toubro and Siemens India.

Cyclical Tailwinds Ahead

With a valuation discount to history and potential catalysts from infrastructure spending and earnings revisions, the portfolio is well-positioned for the next capex cycle.

Performance and Risk Analysis

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

Fund Performance

0.0% AnnuallyAlpha

+13.9% vs +9.9% benchmarkSince Inception

+17.5% vs +6.3% benchmark3Y Annualized

+20.3% vs +6.5% benchmark5Y Annualized

Nippon India Power & Infra Fund

Benchmark Index

Benchmark Performance Comparison

Nippon India Power & Infra Fund

NIFTY 50

Risk Profile

Standard Deviation14.9%

Maximum Drawdown-25.4% | Oct 2024

Sharpe Ratio-0.19

Detailed Risks

Market Risk

Slowdown in infrastructure spending amid fiscal consolidation could derail earnings growth.

Liquidity Risk

Mid-cap tilt amplifies liquidity risk during market sell-offs, hindering rebalancing.

Concentration Risk

Concentrated in industrials/utilities, vulnerable to policy shifts impacting power/infrastructure projects.

Specific Strategy Risk

Regulatory risks around power sector privatization or environmental norms could disrupt holdings.

Strategy Details

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

Core Investment Theme

Provides concentrated exposure to India's power and infrastructure sectors—capital-intensive industries that enable economic growth. This theme captures the nation's infrastructure buildout through companies involved in electricity generation, transmission, and distribution as well as those constructing roads, railways, and other critical infrastructure.

Broader Market View

Market Outlook

With equity markets appearing to normalize after a valuation reset, the current environment seems conducive for participation as consumption patterns revive and corporate earnings regain traction. Exposure to consumer, financial, and industrial sectors aligns with this recovery thesis, though competitive forces and input cost pressures remain risks.

Why This Strategy is Attractive Now

This strategy appears well-positioned to capitalize on improving economic conditions through holdings diversified across consumer cyclicals, defensives, financials, and technology. The portfolio's balance of market leaders and moderate risk profile, with a beta around 1 and flexibility across 70 holdings, could allow for risk-adjusted participation in the prospective upswing.

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 across a mix of large and mid-cap market segments.

Why it Makes Sense

This approach aligns with an environment where earnings visibility remains uneven, favoring companies with pricing power and secular growth drivers, while valuation discipline helps mitigate risks from potential multiple compression.

High-Level Investment Process

Sourcing: The strategy appears to source ideas from a broad investment universe, with a focus on companies demonstrating sustainable competitive advantages, strong management teams, and attractive growth prospects. Selection: The selection process suggests a preference for businesses with durable pricing power, recurring revenue streams, and the ability to compound earnings through cycles, balanced against reasonable valuation metrics. Construction: Portfolio construction is consistent with a multi-cap core approach, emphasizing ample diversification while allowing high-conviction ideas to establish meaningful weights.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods40.93%

Technology4.28%

Financial Services2.99%

Consumers10.66%

Services4.61%

Utilities23.99%

Energy & Infra12.53%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Reliance Industries LtdEnergy & Infra9.58%

NTPC LtdUtilities7.83%

Larsen & Toubro LtdCapital Goods6.24%

Tata Power Co LtdUtilities4.41%

NTPC Green Energy LtdUtilities3.46%

CG Power & Industrial Solutions LtdCapital Goods2.73%

Bharat Heavy Electricals LtdCapital Goods2.57%

UltraTech Cement LtdCapital Goods2.47%

Bharti Airtel LtdServices2.32%

NLC India LtdUtilities2.27%

Fund House Management

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

Fund Manager Track Record

Rahul Modi

Mr. Rahul Modi has experience of 19 years. Manages 8 funds at Nippon Life India Asset Management Ltd with an AUM of approximately ₹7,117 Cr Holds a M.Sc degree.

34 years

Combined Team Experience

₹ 2,07,451 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 disciplined investment process focused on rigorous research.

Long-Term Perspective

Maintains a long-term perspective in portfolio construction decisions.

Risk Management

Emphasizes robust risk management practices across strategies.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.86%

Exit Load1

Regulatory & Tax Information

INF204K01AE0

ISIN

DailyDealing Frequency

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

STCG | <1Year 20%%

Tax Implications (India)