What is Nippon India Mutual Fund Vintage Funds Offer

Nippon India Mutual Fund has launched a Vintage Funds Offer for 3 of its equity mutual fund schemes, Nippon India Growth Fund, Nippon India Power and Infra Fund and Nippon India Multicap Fund. All three schemes have long term track record of wealth creation across multiple market cycles. These schemes have multiplied investor’s wealth by 14 to 25 times since inception. In this Vintage Funds Offer, you can invest in any one, two or all the three schemes at prevailing NAVs.

What is Vintage Fund Offer (VFO)?

You can think of Nippon India MF’s VFO as a curated offer of select equity schemes for long term investors in the current market conditions and the outlook over medium to long term. The expert opinion in Nippon India MF is that the investment strategies of these 3 equity schemes have the potential to outperform over the medium to long term in the Indian economic recovery from the shock caused by the COVID-19 pandemic. We will discuss in brief each of the 3 equity schemes which are part of this VFO.

Nippon India Growth Fund

Nippon India Growth Fund has a strong history of wealth creation among retail investors in India. This scheme has 26 years track record of wealth creation. Rs 10,000 invested in the scheme at the time of its inception would have grown to more than Rs 25 lakhs (as on 25^th January 2022). The CAGR returns of the scheme since inception is over 22%. The investment strategy of the scheme is as follows:-

• Midcap focused strategy adopting a stock specific investment approach with a focuson companies having strong earnings visibility.


• Attempts to calibrate portfolio themes to reflect significant change in macroeconomic variables.


• High conviction bets with reasonable diversification – A significant part will be focusedon Growth opportunities with tactical allocation to Special Situations/Value plays.


• Current focus themes: Domestic Cyclicals, Out of home consumption, Outsourcing, New age business & China +1.

The chart below shows the performance of Nippon India Growth Fund, Regular plan Growth option, over various investment time-scales.

Source: Advisorkhoj Research, as on 25^th January 2021. Disclaimer: Past performance may or may not be sustained in the future. Consult with your financial advisor before investing.

Nippon India Power and Infra Fund

Nippon India Power and Infra Fund invests primarily in the infrastructure sector. This scheme has nearly 18 years of performance track record. Rs 10,000 invested in the scheme at the time of its inception would have grown to more than Rs 1.4 lakhs (as on 25^th January 2022). The CAGR returns of the scheme since inception is nearly 17%. The investment rationale and strategy of the scheme is as follows:-

• Domestic capex cycle well placed for a meaningful revival after almost a decade of underinvestment.


• Continued Govt Capex a major driver. Policy support through PLI, lower taxation likelyto improve Private sector spends.


• The scheme is focused on all key segments like Engineering, Construction, Telecom, Defence, Utilities. Logistics, Commodities etc.


• Focus on good quality balance sheets with a view to reduce any stock specific volatilitygiven the sector cyclicality.

The chart below shows the performance of Nippon India Power and Infra Fund Regular plan Growth option, over various investment time-scales.

Source: Advisorkhoj Research, as on 25^th January 2021. Disclaimer: Past performance may or may not be sustained in the future. Consult with your financial advisor before investing.

You may like to read how Nippon India Power and Infra Fund is a good thematic fund in this market

Nippon India Multicap Fund

Nippon India Multicap Fund is an equity scheme which invests across market capitalization segments. As per SEBI’s mandate multicap funds should invest at least 25% of their assets in large cap stocks, at least 25% in midcaps and at least 25% in small cap stocks. This scheme has nearly 17 years of performance track record. Rs 10,000 invested in the scheme at the time of its inception would have grown to more than Rs 1.5 lakhs (as on 25^th January 2022). The CAGR returns of the scheme since inception is over 17%. The investment rationale and strategy of the scheme is as follows:-

• Nippon India Multicap Fund attempts to create long term wealth investing in a combinationof proven winners and potential alpha creators – Niche/Emerging areas alongwith “out of favour” themes.


• High conviction investment style –“Right Risk” without compromising on quality andinvest early in the cycle to benefit meaningfully from the turnaround or revival.


• Min 25% allocations to Large, Mid & Small Caps.


• Current Focus Themes: Consolidators (across sectors large player gaining moremarket share), Structural Secular growth plays (Insurance, Healthcare services) and Capex revival.

The chart below shows the performance of Nippon India Multicap Fund Regular plan Growth option over various investment time-scales.

Source: Advisorkhoj Research, as on 25^th January 2021. Disclaimer: Past performance may or may not be sustained in the future. Consult with your financial advisor before investing.

Why is this a good time to invest in Indian equities?

The equity market is going through a rough period of high volatility due to global factors, including US Fed’s monetary policy stand, but the medium to long term outlook on Indian equities is bright because of the following factors:-

• The economic growth outlook remains optimistic as the Government policies have rightly laid the foundation for a growth-conducive platform, which may aid in a potential economic rebound for India.


• Domestic recovery is gaining traction on resilient rural demand, improving urban demand, pick-up in government spending and trade (exports + imports) likely to be drivers.


• Hi-frequency indicators like Manufacturing, Exports, Tax Collections, Consumption demand,Real Estate sales etc. are witnessing a strong comeback on normalization.


• Accelerated vaccination drive with over 50% of India’s adult population being fully vaccinatedhas improved the business confidence.


• Capex revival supported by Govt spends and policy initiatives like Production Linked Incentives(PLI) along with lower tax rates.


• Investors can take advantage of the recent correction to invest for the long term.

Why invest in Nippon India VFO?

The 3 schemes in the VFO have the potential to outperform in the medium to long term since they invest in the opportunity set mentioned below:-

• The broader market segments may potentially outperform as the growth conditions continue to improve


• India’s household investment pattern in undergoing a paradigm shift as low-interest rates madetraditional investment avenues less attractive, with investors seeking other alternatives like marketlinked instruments to earn inflation-proof returns.


• The schemes which form part of the VFO have an established track record and adoptbroad based investment strategy may potentially gain from the anticipated economic rebound. These funds also are uniquely positioned within the respective peer categories providing an interesting investment option.


• That is why we think that these broad based investment strategies represented by the schemes in the VFO (Nippon India Growth Fund, Nippon India Power and Infra Fund and Nippon India Multicap Fund) may potentially outperform over sufficiently long investment horizons.

Who should invest in Nippon India VFO?

• Investors looking for long term capital appreciation over long investment horizons.


• Investors with high to very high risk appetites.


• Investors who can invest either in lump sum or SIP.


• Investors should have minimum 5 to 7 year investment horizons for the 3 schemes in the VFO.

Investors should consult with their financial advisors if Nippon India Mutual Fund’s VFO is suitable for their investment needs