Nippon India Mutual Fund, formerly Reliance Mutual Fund, is an asset management company (AMC) that was formed as result of Japan's Nippon Life Insurance Company buying Reliance's stake. The fund house offers a host of products tailored for investors to meet their varied investment goals.
The company offers a range of products under various categories such as equity funds, debt funds, liquid funds, gold funds, ETF funds, retirement funds, etc. The Nippon India Banking Fund - Growth Plan - Growth Option is a scheme under the equity fund type and offers growth to its investors. The growth option of the scheme allows investors to grow their investments over a period of time. While it does not provide any short-term returns, it achieves wealth creation over a long period of time.
The basic objective of the scheme is to create returns from the scheme on a regular basis by investing in equity and equity-related instruments of companies in the banking sector or engaged in activities related to the banking sector.
Key Features of Nippon India Banking Fund - Growth Plan - Growth Option
The key features of the equity fund scheme - Nippon India Banking Fund is:
Type of fund | Open-ended equity scheme that makes investments in the banking sector |
Plans available |
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Options under each plan |
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Risk | High |
Systematic Investment Plan | Available |
Systematic Transfer Plan | Available |
Systematic Withdrawal Plan | Available |
The minimum investment amounts are mentioned by the company as given below:
Minimum application amount | Rs.5,000 |
Minimum additional investment | Rs.1,000 |
Minimum installment for Systematic Investment Plan (SIP) | Rs.100 |
Entry Load | NA |
Exit Load | 1% of NAV charged in case units are switched out or redeemed before completion of 1 year from the date of allotment of units |
Asset Allocation for Nippon India Banking Fund - Growth Plan - Growth Option
Instruments | Allocations (Percentage of total assets) | Risk Profile |
Debt and money-market instruments | 0% - 20% | Low to medium |
Equity and equity-related instruments | 80% - 100% | Medium to high |
The entities given below can subscribe to this particular scheme:
NAV: The NAV of the scheme is calculated by dividing the market value of the company's assets by the number of units remaining at the end of the business day. The company's assets include the investments of the scheme, the accumulated income, the receivables, and other assets. But the expenses, liabilities, and payables need to be deducted from the income mentioned above. The NAV is disclosed on every business day at 9 pm on the official website of AMF. The NAV is also published in a minimum of 2 popular newspapers every day.
Liquidity: Units can be sold, redeemed, switched-in or switched-out on any working day. Once the mutual fund receives a valid redemption request, it will send out the proceeds of the redemption within 10 working days. The mutual fund will be required to pay a penal interest in case it does not dispatch the proceeds within 10 working days.
Benchmark: The benchmark of this particular scheme has been set as the Nifty Bank.
The fund managers of the scheme are Sanjay Parekh and Jahnvee Shah.
Sanjay Parekh is the Senior Fund Manager of Nippon India Nippon Life AMC and has been managing Nippon India Banking Fund - Growth Plan - Growth Option since September 2017. Parekh has been in the capital market for more than 23 years and has vast knowledge about the industry.
Jahnvee Shah is the Fund Manager for overseas investments in Nippon India Nippon Life AMC and has been managing Nippon India Banking Fund - Growth Plan - Growth Option since April 2011. Shah joined the company as a Research Analyst in May 2006.
Certain investment restrictions have been set for the scheme as follows:
The trustees of the mutual fund, in their meeting, will decide the dividend rate that is to be provided to the unitholders. The dividend rate will be decided based on the distributable surplus available under the scheme. Within a day after the trustees decide on the dividend rate along with the record date, both will be announced publicly. The announcement will be published in at least one widely subscribed newspaper. The dividend will be dispatched within 30 days from the day of declaration of the dividend rate. Failure to dispatch the dividend within the stipulated time will attract an interest of 15% p.a. of the dividend. The net assets of the scheme will be reduced by the product of the number of units for which dividend is declared and the gross amount of the dividend declared per unit.
Why you should invest in Nippon India Banking Fund - Growth Plan - Growth Option
Nippon India Mutual Fund offers many well-designed schemes that that helps the investors grow their investment corpus. The company, on its official website, also provides various tools that help investors calculate the SIP, analyse risks, or plan one's investment. The tools will help individuals assess the goals and risks before choosing a suitable plan. In case of queries or any kind of help, the investors can always reach out to the customer care executive to resolve their queries.
GST rate of 18% applicable for all financial services effective July 1, 2017.
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