Nippon India Small Cap Fund Bonus Direct Plan

Unlock Your Investment Potential with Nippon India Small Cap Fund – Bonus – Direct Plan!

Incepted on January 1, 2013, Nippon India Small Cap Fund – Bonus – Direct Plan is an equity fund. The key managers of the fund are Tejas Sheth, Kinjal Desai, Samir Rachh, and Akshay Sharma. They have been managing the fund’s ins and outs to generate significant returns. Nippon India Small Cap Fund has the potential to surpass inflation in the long run, making it the foremost investment instrument for investors who are looking forward to achieving significant returns.

Key Parameters

The key parameters, i.e. NAV, Asset Under Management and Expense Ratio, give investors clarity on why Nippon India Small Cap Fund – Bonus – Direct Plan is a better investment deal.

• As of March 10, 2023, Nippon India Small Cap Fund – Bonus – Direct Plan has a NAV of ₹102.0927.
• The fund has assets under management (AUM) worth ₹23756 Cr as of January 31, 2023, which exceeds the average fund category.
• The fund has an expense ratio of 0.86%, which is relatively low, making it a comparatively better investment instrument.

Nippon India Small Cap Fund – Bonus – Direct Plan Returns

Being acquainted with the return potential is equally essential when investing in funds. The returns help to decode the fund’s performance in the past few years, based on which an investor can make their final investment call. Since its inception, the Nippon IndiaSmall Cap Fund – Bonus – Direct Plan has delivered an impressive CAGR return of 24.46%. Over the last 1, 3, and 5 years, the fund has given CAGR returns of 16.3%, 37.85%, and 17.25%, respectively. These returns demonstrate the fund’s ability to generate significant returns over time.

Holdings

Nippon India Small Cap Fund – Bonus – Direct Plan has diversified its portfolio across several sectors, including Cash Equivalent, Industrial, Consumer Cyclical, Basic Materials, Financial Services, Consumer Defensive, Tech, Health, Energy, Communication, Utilities, and Real Estate. In addition, the list of top Nippon India Small Cap holdings includes Tube Investments of India Ltd Ordinary Shares, HDFC Bank Ltd, KPIT Technologies Ltd, Bank of Baroda, and NIIT Ltd.

Taxation

The investor must know the amount of tax they might have to pay on the returns. As a small-cap mutual fund, Nippon India Small Cap Fund – Bonus – Direct Plan’s taxation is as follows:

• For short-term capital gains, i.e. when you stay invested for less than a year, a tax of 15% will be imposed.
• When you stay invested for more than a year, i.e. fall in the category of long-term capital gains, a tax of 10% will be levied without indexation benefit.
• Dividends will always be taxed at a slab rate, and gains up to Rs 1 lakh are exempt for long-term investments.

Investment Objective of Nippon India Small Cap Fund – Direct Plan

Investors looking forward to beginning their investment journey with Nippon India Small Cap Fund – Bonus – Direct Plan must get familiar with the investment objective of the fund house. The investment will be considered an ideal decision when the fund’s investment objective matches the investor’s objective. The key aim is to achieve better risk-adjusted returns by investing in smaller capitalisation companies. These companies are defined as those whose market capitalisation is below the top 250 companies in total market capitalisation.

Small-cap companies generally have high growth prospects and relatively lower valuations, making them a wise investment option. The fund focuses on identifying good growth businesses with reasonable size, quality management, and rational valuation, adopting prudent risk management measures and diversification. It aims to generate relatively better risk-adjusted performance over time.

Minimum Investment and Lock-In Period

The minimum investment for a lump sum payment is INR 5000, and for SIP, it is INR 100. The fund does not have any lock-in period, allowing investors to withdraw their investments at their convenience. Thus, Nippon India Small Cap – Bonus – Direct Plan is highly suitable for investors who wish to make boundless investments in terms of a lock-in period.

Nippon Life India Asset Management Ltd.

Nippon Life India Asset Management Ltd. (formerly known as Reliance Nippon Life Asset Management Ltd.) is one of the leading asset management companies in India.

Established in 1995, Nippon Life India Asset Management manages assets worth over Rs. 2.25L Cr (as of January 2023) across mutual funds, pension funds, offshore funds, and managed accounts. It offers a wide range of investment schemes clocking at 72 to cater to diverse investor requirements.

The company is committed to providing its clients with innovative investment solutions and superior investment performance. It has a strong investment management team comprising experienced professionals who are experts in their respective fields. Nippon Life India Asset Management has a pan-India presence with a network of over 300 branches and a team of more than 6,000 workers, making it one of the largest asset management companies in India.