Nippon India Flexi Cap Fund
(An open ended dynamic equity scheme investing across large cap, mid cap, small cap stocks)
Presenting a new fund that dynamically invests across time-appropriate market caps, with an aim to maximise your returns.
Stability through Large Caps & seeking growth opportunities through mid & small caps
Aims to leverage emerging trends before they become apparent
NFO Open Date: 26th July, 2021
NFO Close Date: 9th August, 2021
Investment Strategy
- Market Cap allocation: The fund would invest across large, mid, and small caps based on market view and relative attractiveness.
- Growth with Stability: While the fund will attempt to create Alpha or excess returns through bottom up stock selection and appropriate allocation to potentially high growth themes, it will maintain reasonable allocations to established leaders.
- Accordingly, for Large Caps exposure, the deviation will be capped at 50% from the benchmark weight.
- Well diversified portfolio across stock and sectors.
- Investment approach:
Our Strategy to navigate and benefit from Equity Shifts
Investment Framework
- Market Cap: Large Cap deviation will be max 50% of Large Cap weight in the Benchmark (Nifty 500 TRI)
- Active share: Active share is the percentage of fund holdings that is different from the benchmark holdings. A fund that has no holdings in common with the benchmark will have an Active Share of 100%, and a fund that has exactly the same holdings as the benchmark considered will have an Active Share of 0%. The fund would have an active share of 50 - 70%
- Stock deviation: Top 5 stocks by weight in the Benchmark - for each stock max deviation of 40%
- Stock Concentration: “ Based on Internal assessment of Business Risk, stocks have been classified under four rating buckets: A,B,C,D with A being the best and D being the worst. While it may appear all the investments should be concentrated in the A or B bucket, the stocks may not be reasonably priced. At the same time, stocks rated C or D may offer opportunities at reasonable valuations. Cummulative exposure: Max 45% in C, max 5% in D”
- Sector deviation: Max deviation of financials - 8 %
Current Focus Themes
Note: The sectors mentioned are not a recommendation to buy/sell in the said sectors. The scheme may or may not have future position in the said sectors.
Why invest in Nippon India Flexi Cap Fund?
Thus, Nippon India Flexi Cap Fund aims to deliver better returns by investing in best opportunities across market caps. “The go anywhere” approach would help to generate alpha across market cycles.
Other Scheme Details:
- Fund Manager:
Manish Gunwani; Dhrumil Shah
Varun Goenka & Nikhil Rungta (Co-Fund Manager)
Kinjal Desai (Dedicated Fund Manager for Overseas Investments) - Benchmark: NIFTY 500 TRI
- Minimum Application Amount: Rs. 500 in multiples of Rs. 1 thereafter
- Exit Load: 10% of the units allocated shall be redeem without any exit load, on or before completion of 12 months from the date of allotment of units. Any redemption in excess of such limit in the first 12 months from
the date of allotment shall be subject to the following exit load.
Redemption of units would be done on First in First Out Basis (FIFO):
- 1% if redeemed or switched out on or before completion of 12 months from the date of allotment of units.
- Nil, thereafter
- Plans and Options: Growth Plan (Growth Option), Income Distribution cum Capital Withdrawal Plan (Payout Option and Reinvestment Option)
For further details, kindly refer to Scheme Information Document. Investment Framework is based on current market condition & subject to change.
Disclaimer: The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third party sources, which are deemed to be reliable. It may be noted that since NAM India has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at NAM India does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements assertions contained in these materials may reflect NAM India’s views or opinions, which in turn may have been formed on the basis of such data or information.
Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsors, the Investment Manager, the Trustee, their respective directors, employees, associates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
The Product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.