Nippon India Growth Fund Institutional Plan Idcw

About the Nippon India Growth Fund – Institutional Plan – IDCW 

The Nippon India Growth Fund – Institutional Plan – IDCW, managed by Nippon India Mutual Fund, is a mid-cap equity scheme introduced in 1995. The primary objective of the Nippon India Growth Fund is to generate long-term capital appreciation by investing in a diversified portfolio of mid-cap stocks. Thus, offers a unique combination of capital appreciation and regular income through the Institutional Dividend Compounding Weekly (IDCW) structure. Besides, as an open-ended fund, investors have the flexibility to buy or sell units at any time, allowing for liquidity and convenience.

Notably, the Nippon India Growth Fund – Institutional Plan – IDCW focuses on companies with medium market capitalisation, typically positioned between large-cap and small-cap stocks in size.

Key Parameters of the Nippon India Growth Fund – Institutional Plan – IDCW

Fund Type: Open-ended mid-cap equity scheme

Fund Manager: Rupesh Patel

Net Asset Value (NAV): Rs 83.77 is the NAV of Nippon India Growth Fund – Institutional Plan – IDCW as of June 19, 2023

Assets Under Management (AUM): Rs 15165.02 crore is the AUM of Nippon India Growth Fund – Institutional Plan – IDCW as on May 31, 2023.

Expense ratio: 1.74% is the expense ratio for the Regular Plan/Institutional plan of the Nippon India Growth Fund – Institutional Plan – IDCW as on May 31, 2023.

Minimum Investment: Minimum investment required is Rs 50000000; Minimum additional investment is Rs 100000; Minimum SIP investment is Rs 100.

Exit load: 1% if redeemed or switched out within 1 month from the date of allotment of units

 Lock-In Period: No lock-in period

Taxation

Nippon India Growth Fund – Institutional Plan – IDCW is taxed at a rate of 10% for long-term Capital Gain Tax. I.e., if units are redeemed or sold after 1 year from the purchase date, with gains of above Rs. 1 lakh, the long-term capital gain tax will be applicable. Any cess/surcharge is not included.

If units are redeemed or sold before 1 year from the purchase date, considered under Short-term Capital Gain Tax, the tax rate would be 10%, exclusive of any cess or surcharge.

Holdings

Nippon India Growth Fund – Institutional Plan – IDCW has a sum of 85 holdings from different sectors such as technology, healthcare, automobile, construction, services, energy, chemicals, finance, capital goods, consumer staples, diversified,  metals and mining, textiles, consumer discretionary, communication.

Follow the top 10 holders of Nippon India Growth Fund – Institutional Plan – IDCW:

1. AU Small Finance Bank Ltd. (3.5%)
2. Varun Beverages Ltd. (3.1%)
3. Cholamandalam Financial Holdings Ltd. (3%)
4. Power Finance Corporation Ltd. (2.9%)
5. Persistence Systems Ltd. (2.4%)
6. Supreme Industries Ltd. (2.3%)
7. Dalmia Bharat Ltd. (2.3%)
8. Mahindra & Mahindra Financial Ltd. (2.3%)
9. Max Financial Services Ltd. (2.3%)
10. The Federal Bank Ltd. (2.0%)

Returns

The Nippon India Growth Fund – Institutional Plan – IDCW has delivered compelling returns over various periods. The fund has achieved a return rate of 32.9% over the past year, 36.01% over the past three years, and 16.96% over the past five years.

Besides, the category returns for the corresponding time durations are as follows: 31.24% over the past year, 32.62% over the past three years, and 14.18% over the past five years.

Investment Objective of  Nippon India Growth Fund – Institutional Plan – IDCW

Nippon India Growth Fund – Institutional Plan – IDCW is mainly designed for those investors who are seeking to invest money for at least 3-4 years and looking for high returns.

The main objective of the Nippon India Growth Fund – Institutional Plan – IDCW is to achieve long-term growth of capital by investment in equity and equity-related securities through a research-based investment approach.

Minimum Investment and lock-in period

The Nippon India Growth Fund – Institutional Plan – IDCW has specific investment requirements that investors should be aware of. Firstly, a minimum initial investment amount of Rs 5 crores is required. Besides, a minimum additional investment amount of Rs 1 lakh is necessary for subsequent investments. Moreover, for investors who prefer a Systematic Investment Plan (SIP) approach, the minimum SIP investment amount is Rs 100.

And, when it comes to the lock-in period—The term “lock-in period” refers to the period of time during which assets held in a mutual fund cannot be redeemed or sold—there is no lock-in period.

Nippon Asset Management Company

Nippon Asset Management Company is a renowned Indian-based financial institution worth 159.54 billion INR, founded in 1995, that operates in the asset management industry. It provides individuals, institutions, and corporations with a wide range of investment products and services.

Nippon Asset Management Company is known for its research-driven investment approach, which involves in-depth analysis and evaluation of market trends, economic factors, and individual securities. This enables them to make informed investment decisions and construct portfolios that align with their client’s investment objectives.