September 22, 2022
mayank
Nippon India Banking & Financial Services Fund
NAV Growth: Rs 420.5763
NAV IDCW: Rs 79.6132
NAV Bonus: Rs 420.5763
Suitable For Which Investors?
This is a fund that invests mainly in shares of banks and financial services companies.
We believe that investors should avoid funds that have a narrowly defined investment mandate such as this one. Instead, they should invest in flexi-cap funds which provide complete freedom to the fund management team to invest in companies from which it expects maximum gains.
But if you do invest, you must do so only through the SIP route.
Fund’s Investment Strategy:
The scheme seeks to generate continuous returns by actively investing in equity, equity related securities of companies in the Banking and Financial services.
Fund Manager:
1) Vinay Sharma
Education: Mr. Sharma is B.Arch & PGDCM
Experience: Prior to joining Nippon India Mutual Fund he has worked with ICICI Prudential AMC, Kotak Mahindra Mutual Fund, J.P. Morgan India Pvt. Ltd. and UTI Bank.
2) Bhavik Dave
Education: Mr. Dave is a BBA and PGDM
Experience: Prior joining to Nippon India Mutual Fund he has worked with Motilal Oswal Securities Limited – Research Associate (Institutional Equities), Crisil Global Analytics Centre – Credit Analyst – US Oil & Gas Sector, Grantham Mayo, Van Otterloo & Co. – Research Associate Internship.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 60 |
| Min. Balance (Rs) | 1 |
| Lock-in Period | NA |
| Exit Load | 1% for redemption within 30 days |
Basic Details
| Fund House | Nippon India Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 13.50% |
| Benchmark | NIFTY Financial Services TRI |
| Riskometer | Very High |
| Type | Open-ended |
| Assets | Rs 3,663 Cr |
| (As on 31-Aug-2022) | |
| Expense Ratio | 1.37% |
| (As on 31-Jul-2022) | |
| Risk Grade | High |
| Return Grade | Above Average |
| Turnover | 50.00% |
Nippon India Banking & Financial Services Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Nippon Ind Banking & Fin Srvices Dir | 16.47 | -1.14 | 4.51 | 25.88 | 14.53 | 9.86 | 16.16 | 8.84 | 13.82 | — |
| S&P BSE Bankex TRI | 16.34 | -0.95 | 3.8 | 24.44 | 14.82 | 9.42 | 14.51 | 11.15 | 13.87 | — |
| Equity: Sectoral-Banking | 11.33 | -1.26 | 2.72 | 24.38 | 13.62 | 4.69 | 14.44 | 9.52 | 13.77 | — |
| Rank within category | 2 | 7 | 1 | 2 | 6 | 1 | 3 | 7 | 6 | — |
| Number of funds in category | 16 | 19 | 19 | 18 | 18 | 15 | 13 | 11 | 10 | 0 |
Nippon India Banking & Financial Services Fund Peer Comparison
| Fund name | Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | Turn over (%) |
| Nippon Ind Banking & Fin Srvices Dir | VR Rating | 9.86 | 16.16 | 8.84 | 1.37 | 3,663 | 13.50 | 1.00 (30) | 9yrs 8mo | 50.00 |
| SBI Banking & Fin Srvices Dir | 3 star | 4.67 | 16.19 | 13.15 | 0.78 | 3,721 | 14.79 | 0.50 (30) | 7yrs 6mo | 106.00 |
| Tata Banking & Fin Srvcs Dir | 5 star | 2.45 | 15.19 | 10.42 | 0.63 | 1,109 | 17.85 | 0.25 (30) | 6yrs 8mo | 10.65 |
| Sundaram Fin Srvices Opp Dir | 4 star | 5.78 | 16.81 | 11.5 | 1.15 | 590 | 12.69 | 1.00 (365) | 9yrs 8mo | 54.00 |
| Invesco Ind Fin Srvices Dir | 4 star | 0.89 | 15.32 | 10.52 | 1.11 | 464 | 14.78 | 1.00 (365) | 9yrs 8mo | 20.00 |
Portfolio Analysis
| No. of Stocks | 24 |
| Top 10 Stocks | 69.01% |
| Top 5 Stocks | 49.26% |
| Top 3 Sectors | 96.44% |
| Portfolio P/B Ratio | 1.98 |
| Portfolio P/E Ratio | 16.54 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,32,095 | 2,70,010 |
| Giant (%) | 52.97 | 71.47 |
| Large (%) | 15.44 | 12.27 |
| Mid (%) | 24.98 | 13.79 |
| Small (%) | 6.62 | 4.95 |
| Tiny (%) | — | — |
Chanakya’s Mutual Fund Guidance for Nippon India Banking & Financial Services Fund
Do not invest in this, or any other banking sector fund, if you need to redeem your investment in less than seven years.
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