Diversify Across Large, Mid & Small Caps—Nippon India’s Direct Growth Magic
Here are five compelling reasons to consider investing in Nippon India Multi Cap Fund – Direct Plan (Growth):
– Proven, Top‐Quartile Returns
• 5-year CAGR of ~33.3%—ranks 1st in its category over this period.
• Since inception (Jan 2013), it has delivered ~17.3% p.a., comfortably ahead of its benchmark.
– True Multi-Cap Diversification
• Mandated to invest at least 25% in large-, mid- and small-caps, it currently allocates ~34.8% to large, 19.6% to mid and 18.2% to small caps—helping smooth volatility and capture broader market growth.
– Low Cost = Higher Net Returns
• Expense ratio of just 0.74% (Direct)—materially lower than most peers, so more of your gains stay with you.
– Seasoned, Stable Management
• Co-managed by Sailesh Raj Bhan (CFA, MBA) and Ashutosh Bhargava (B.Com, MBA-Finance), both with a decade+ of experience and a track record of alpha generation.
– Strong Scale & Liquidity
• AUM of ₹43,483 Cr underscores deep liquidity, robust research support, and investor confidence, critical for multi-cap funds to efficiently deploy capital across market cycles.
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10 key points to consider before investing in the Nippon India Multi Cap Fund:
📊 1. Diversified Allocation
- The fund invests at least 25% each in large-cap, mid-cap, and small-cap stocks.
- This structure offers a balance of stability (large caps) and growth potential (mid/small caps).
📈 2. Strong Long-Term Returns
- Delivered ~34% annualized returns over 5 years and ~30% over 3 years as of June 2025.
- Outperformed many peers in the multi-cap category.
💼 3. Experienced Fund Managers
- Managed by Sailesh Raj Bhan and Ashutosh Bhargava, both with strong track records in equity investing.
4. Low Minimum Investment
- You can start with just ₹100 via SIP or lump sum, making it accessible for new investors.
📉 5. High Risk, High Reward
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- Rated “Very High” on SEBI’s Riskometer due to exposure to volatile mid and small caps.
- Suitable for investors with a long-term horizon (5+ years).
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💸 6. Expense Ratio
- Reasonable for a direct plan: 0.74% as of May 2025.
Lower costs can help boost net returns over time.
7. Exit Load
- 1% exit load if you redeem within 12 months (for units exceeding 10% of investment).
🧠 8. Investment Strategy
- Focuses on “growth at reasonable valuations” and sector rotation.
- Targets themes like manufacturing revival, financial consolidation, and under-penetrated sectors like insurance.
🧾 9. Taxation
- 12.5% LTCG tax on gains above ₹1.25 lakh after 1 year.
- 20% STCG tax if redeemed within a year.
10. Performance Consistency
- Ranked among the top performers in its category over multiple timeframes.
- Strong alpha generation and good downside protection.
A comparison of Nippon India Multi Cap Fund with other top multi-cap funds, and then a sample diversified investment plan tailored for different risk appetites.
🔍 Comparison: Nippon India Multi Cap vs Other Multi-Cap Funds
| Fund Name | 3Y Returns (Annualized) | Expense Ratio | Risk Level | Fund Rating (★) | Exit Load |
|---|---|---|---|---|---|
| Nippon India Multi Cap | ~29.8% | 1.52% | Very High | ★★★★★ | 1% (within 12 mo) |
| Quant Active Fund | ~19.8% | 1.73% | Very High | ★ | 1% (within 15 days) |
| SBI Magnum Multi Cap | ~27.5% | 1.68% | High | ★★★★ | 1% (within 12 mo) |
| Kotak Standard Multi Cap | ~17% | 1.55% | High | ★★★★ | 1% (within 12 mo) |
| Parag Parikh Flexi Cap | ~21% | 1.25% | Moderate | ★★★★ | 2% (within 1 year) |
🏆 Nippon India Multi Cap Fund stands out with top-tier returns, a 5-star rating, and a balanced allocation across market caps.
🧩 Sample Diversified Investment Plan (July 2025)
Here’s a model portfolio based on a moderate risk profile and a monthly SIP of ₹10,000:
| Asset Class | Fund Name | Allocation | Rationale |
|---|---|---|---|
| Large Cap Equity | Axis Bluechip Fund | ₹2,500 | Stability & blue-chip exposure |
| Multi-Cap Equity | Nippon India Multi Cap Fund | ₹2,500 | Growth across market caps |
| Mid-Cap Equity | HDFC Mid-Cap Opportunities Fund | ₹2,000 | Higher growth potential |
| Flexi Cap Equity | Parag Parikh Flexi Cap Fund | ₹1,500 | Global + domestic diversification |
| Debt/Hybrid | ICICI Balanced Advantage Fund | ₹1,500 | Volatility buffer & steady returns |
This mix offers growth, stability, and downside protection—ideal for long-term wealth creation.
When comparing multi-cap mutual funds, you’re essentially evaluating how well each fund balances diversification, performance, and risk. Here are the most important factors to weigh:
📊 1. Asset Allocation Mandate
- SEBI requires multi-cap funds to invest at least 25% each in large-cap, mid-cap, and small-cap stocks.
- Check if the fund manager sticks to this or leans more heavily into one segment.
🧠 2. Fund Manager’s Track Record
- A skilled manager can make a huge difference in volatile markets.
- Look for consistent performance across market cycles, not just bull runs.
📈 3. Historical Returns
- Compare 3-year, 5-year, and since-inception returns.
- Focus on consistency, not just the highest recent return.
💸 4. Expense Ratio
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- This is the annual fee charged by the fund.
- Lower expense ratios (especially indirect plans) help maximize your net returns.
⚖️ 5. Risk Metrics
- Look at standard deviation (volatility), Sharpe ratio (risk-adjusted return), and beta (market sensitivity).
- A higher Sharpe ratio with moderate volatility is ideal.
📉 6. Downside Protection
- How well does the fund hold up during market corrections?
- Funds with better downside protection tend to recover faster.
🧾 7. Tax Efficiency
- Long-term capital gains (LTCG) are taxed at 12.5% beyond ₹1.25 lakh.
- Short-term gains (STCG) are taxed at 20% if held for less than year.
🔁 8. Exit Load
- Most funds charge 1% if redeemed within 12 months.
- Important if you might need liquidity in the short term.
🧩 9. Portfolio Concentration
- Check sector and stock concentration.
- A well-diversified fund avoids overexposure to a single sector or theme.
⭐ 10. Fund Ratings & Peer Comparison
- Use platforms like Morningstar or Value Research to check the star ratings and compare with peers.
- Look for funds that consistently rank in the top quartile.