Nippon India Flexi Cap Fund — Balancing Risk & Reward for Investors

The Nippon India Flexi Cap Fund is a mutual fund scheme offered by Nippon Life India Asset Management Limited. It is designed to provide investors with long-term capital growth by investing in a diversified portfolio of equity and equity-related securities across various market capitalizations including large-cap, mid-cap, and small-cap stocks.

This Flexi cap fund has the flexibility to adjust its portfolio allocation across different market capitalizations based on the fund manager’s view of their potential performance. This allows the fund to take advantage of growth opportunities in various segments of the market while aiming to manage risks associated with stock investments.

Understanding Nippon India Flexi Cap Fund

The Nippon India Flexi Cap Fund employs an investment strategy focused on capital appreciation and long-term growth. The fund utilizes the flexibility to invest in companies of different sizes and aims for maximum gains based on the fund management team’s market outlook. This strategy includes a secondary objective to generate consistent returns through debt and money market securities investments. This strategy is suitable for investors with a minimum five-year investment horizon.

The key features of Nippon India Flexi Cap Fund include its focus on long-term capital appreciation through diversified investment in equity and equity-related assets across various market capitalizations. It has a flexible investment approach allows the fund to capitalize on opportunities in large, mid, and small-cap stocks based on market conditions. The fund aims to balance risk and reward by adapting its portfolio in response to changing market conditions.

Asset Allocation & Fund Managers

The Nippon India Flexi Cap Fund is structured to offer long-term capital appreciation by investing in a diversified mix of equity and equity-related securities across various market capitalizations. As of January 31, 2024, the fund’s asset allocation is prominently inclined towards equities, with 96.38% of its assets invested in equity, 3.6% in cash and cash equivalents, and a minimal 0.02% in debt instruments. This asset distribution underscores the fund’s aggressive investment strategy, aiming to maximize growth by predominantly investing in stocks.

The fund is managed by a team of experienced fund managers including Dhrumil Shah, Nikhil Rungta, and Meenakshi Dawar. They bring a wealth of knowledge and expertise to their investment strategies. With an AUM (Assets Under Management) of ₹5,961 crores as reported at the end of December 2023, it showcases a considerable scale and capacity to manage investments effectively. The expense ratio of the direct plan of the fund is relatively competitive at 0.54%, which is less than the average for most other Flexi Cap funds. This indicates efficient management of the fund in terms of operational costs.

Investing in the Nippon India Flexi Cap Fund is suitable for investors looking for exposure across different sectors and company sizes.

Performance of the Fund

The Nippon India Flexi Cap Fund has shown a notable performance from 2022 to 2024. As of December 31, 2023, the fund has delivered an average annual return of 17.80% since its inception in July 2021. Specifically, in the last year leading up to December 31, 2023, the fund achieved returns of 38.83%. This performance is reflective of the fund’s strategic investment in sectors like Financial, Services, Technology, Automobile, and Capital Goods, with its top holdings in leading corporations such as HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Reliance Industries Ltd., and Larsen & Toubro Ltd. The fund has ₹5,961 Crores in assets under management (AUM) and maintains a competitive expense ratio of 0.54%, indicating efficient management and potential for long-term growth opportunities for investors.

How To Invest In Nippon India Flexi-Cap Fund?

Follow the steps if you want to invest in the Nippon India Flexi Cap Fund:

1. Visit the Official Website

Go to the official Nippon India Mutual Fund website.

2. Select the Fund

Choose the Nippon India Flexi Cap Fund from the list of offerings.

3. Complete KYC

Make sure that your KYC details are up to date.

4. Investment Type

Decide whether to start a SIP or make a lump-sum investment.

5. Payment

Enter the investment amount and complete the payment process.

6. Confirmation

Receive confirmation of your investment.

Always review the fund’s details, performance, and risk factors before investing.

Final Words

The Nippon India Flexi Cap Fund offers a diversified investment strategy across various market capitalizations for long-term capital growth. It emphasizes risk management through dynamic portfolio adjustments and sectoral diversification and is suitable for investors with a higher risk tolerance seeking growth over a five-year horizon or more. Investing in this fund involves a straightforward online process that is accessible through the Nippon India Mutual Fund website or various financial platforms.

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