Nippon India Flexi Cap Fund NFO To Open On July 26: Should You Invest In This Flexicap Fund?

There are reports which suggest that of the entire equity mutual fund category, flexicap has been the hottest category and this is imminent via the fund category commanding the second highest AUM of Rs. 1.76 trillion only after the large cap category.

So, here is a low down on the NFO offer and why you can consider for your various financial goals:

1. Nippon India Flexi cap fund details:

NFO details: July 26- August

Benchmark: Nifty 500 TRI

Minimum investment: Rs. 500 and Rs 1 thereafter

Scheme type and objective: Open ended dynamic scheme which aims to create long term capital appreciation for the fund by investing across market capitalization based on attractiveness and market scenario.

Investment strategy:

The fund will employ bottoms up stock selection and suitable allocation approach for identifying opportunities in high growth themes. Initially, the fund will play with the recovery themes such as technology, or those that are being the beneficiary of consolidation or 'back to normal' business or those thriving on new business models.

Nonetheless other than looking at earning alpha, the fund will undoubtedly also include industry leaders in its portfolio. Likewise in the large cap category, the fund will maintain lower deviation in mega-cap, in the remaining large cap basket the fund would mean active divergence while that in the mid and small caps the target would be on new age and core growth companies.

Fund Manager:
Manish Gunwani, CIO - Equity Investments along with Dhrumil Shah, Varun Goenka & Nikhil Rungta (Co-Fund Manager) and Kinjal Desai, Fund Manager - Overseas.

Performance of flexicap fund over the period of its existence

 

	Annualised returns
Category	1 year	3 years	5 years	10 years
Large-cap	45.86	13.33	13.54	11.88
Large & mid-cap	59.26	15.69	14.68	14.56
Flexi cap	51.63	14.52	14.14	13.16

About the fund house:

It is the fund house or AMC that invests investors' corpus and its credibility is highly important. So, here is a brief about the fund which is a listed entity on the bourses and as of June 2021 commands an AUM of Rs. 2.40 trillion and folios of 113.66 lakh.

Nippon India Mutual Fund has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. Nippon India Mutual Fund (NIMF) was earlier known as Reliance Mutual Fund.

Conclusion:

This fund is typically for investors' who can afford a riskier portfolio as the funds' investments are spread across market capitalization i.e. there is exposure to small cap space as well. Nonetheless, for higher return if one goes by the historical returns, large and mid cap even with a lower percentage of exposure to small caps have performed well over a longer period.

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