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 multi-cap portfolio construction, 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 10 of the past 12 years.

Concentrated Industrials Exposure

The strategy's differentiated approach is evident in its concentrated 35.5% allocation to industrials, including conviction holdings like Larsen & Toubro and Siemens.

Cyclical Upside Potential

With a valuation discount to history and peers, the fund is well-positioned to benefit from an infrastructure capex revival and earnings revisions in its cyclical holdings.

Performance and Risk Analysis

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

Fund Performance

0.0% AnnuallyAlpha

+14.2% vs +10.4% benchmarkSince Inception

+22.2% vs +7.4% benchmark3Y Annualized

+22.3% vs +8.8% 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

Potential slowdown in infrastructure spending amid fiscal consolidation could undermine fund's cyclical exposure.

Liquidity Risk

High mid-cap tilt could amplify liquidity strains during market sell-offs, hindering rebalancing.

Concentration Risk

Concentrated sector bets in cyclical industrials and utilities elevate idiosyncratic risks from policy headwinds.

Specific Strategy Risk

Regulatory uncertainties around power sector privatization could disrupt investment theses for key holdings.

Strategy Details

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

Core Investment Theme

Provides exposure to India's rapidly growing power and infrastructure sectors. These capital-intensive industries are crucial enablers of economic development, benefiting from sustained government investment and rising consumer demand.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent correction, with consumption and earnings normalization supporting a more constructive outlook. Sectors geared towards domestic demand such as consumer, financials and industrials seem poised to benefit, although risks like margin pressures remain.

Why This Strategy is Attractive Now

This strategy's balanced exposure across consumer, financial services and technology companies, including established leaders, appears well-aligned with the emerging recovery dynamics. Its diversification across around 70 holdings and moderate risk profile could allow for flexibility in capturing upside while managing cyclicality concerns.

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 relative to their growth prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach can provide exposure to companies with resilient business models, pricing power, and the ability to compound earnings through cycles.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across market capitalizations, favoring those with sustainable competitive advantages, strong balance sheets, and attractive growth runways. Selection: The selection process suggests a preference for companies that can deliver consistent earnings growth, generate high returns on invested capital, and trade at reasonable valuations relative to their growth potential and quality characteristics. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach that balances risk management with the ability to establish meaningful position sizes in the highest-conviction ideas.

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

Nippon Life India Asset Management employs a disciplined investment approach.

Rigorous Research

The fund house conducts rigorous research to identify investment opportunities.

Risk Management

Nippon Life India AMC has robust risk management processes in place.

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)