Nippon India Banking Fund

Overview of Nippon India Banking Fund

1. Type or nature of fundNippon India Banking fund is an open-ended banking sector mutual fund scheme
2. Investment objectiveThe fund is primarily aimed at investing in equity and equity related securities of banking sector companies in order to generate continuous returns. The mutual fund company has the discretion to completely or partially invest in any mix of securities stated above in order to realize investment objectives and to capitalize on market movement.
3. Fund InformationInception date•28th May 2003CRISIL rank•NAPlansGrowth and Bonus PlansSchemesThe Scheme offers following Plans / Options:•Nippon India Banking Fund Direct Plan•Nippon India Banking Fund•Nippon India Banking Fund Institutional PlanEntry loadNILExit load1% if redeemed before completion of 1 year, NIL if redeemed after completion of 1 year from date of allotment of unitsMinimum investmentRs.5000 and then in multiples of Re.1 for customers who avail Nippon India Banking mutual fund schemeSIPYes. Following is the break-up for various SIP options available to investors.Minimum investment amount for investing: is-Product label - Risk and target investorsHigh, best-suited for investors who are looking for long-term capital appreciation and are willing to take risk with respect to their capitalBenchmarkS&P BANK NiftySWPYes, AvailableSTPYes, AvailableRedemptionNippon India Growth Mutual Fund redemption proceeds are dispatched within 10 working days after receiving a valid redemption request from customer. Fund provider is required by SEBI, to pay a penal rate of interest of 15% per annum if the redemption is not processed within the stipulated time frameTaxationBased on nature of income and type of fund taxation will differ for different investors. For specific taxation guidelines, it is best to consult a financial adviser. However, tax applies to mutual funds in addition to this a small amount of surcharge too, is levied
   1. Rs.100/- per month then in multiples of Re. 1/- for minimum 60 months
   2. Rs.500/- per month then in multiples of Re. 1/- for minimum 12 months
   3. Rs.1000/- per month then in multiples of Re. 1/- for minimum 6 months
   4. Rs.500/- per quarter then in multiples of Re. 1/- for minimum 12 quarters
   5. Rs.1500/- per quarter then in multiples of Re. 1/- for minimum 4 quarters
   6. Rs. 5000/- per year then in multiples of Rs. 500/- for minimum 2 years
4. Fund manager
   1. Mr. Sanjay H. Parekh Senior Fund Manager - Equity InvestmentsMr.Sanjay is a commerce graduate and ACA degree holder with over 17 years of experience in capital markets. Before joining Nippon India Mutual Funds he worked at ICICI Prudential, Ask Investment, Prabhudas Liladhar, Sunidhi Consultancy, Insight Asset Management as well as Capital Market Magazine.
   2. Shrey Loonker Assistant Fund - ManagerShrey Loonker has over 6 years of experience in the equity and stock market field. Before joining Nippon India Mutual funds, he was working at Ernst and Young as a financial advisor.
   3. Jahnvee Shah Fund Manager - Overseas InvestmentsJahnvee Shah is Fund Manager of Nippon India Equity Opportunities for overseas investmnets. She too holds an MBA in finance and Bachelor of Science degrees. Prior to acting as Fund Manager for this mutual fund scheme, Jahnvee was into Capital Asset Management at Nippon India. Before this she was an Assistant Editor at Financial Express.
5. Investment philosophy or strategyThe investment strategy of Nippon India Banking Fund is mentioned in the section below.
   1. Focused on investing in companies pertaining to the banking and financial sector-wise
   2. The fund is sufficiently diversified in stocks across various segments like private banks, PSUs, NBFCs, Housing Finance companies etc.
   3. Active fund management ensures generation of superior alpha though tactical allocation of funds
   4. Nippon India Banking fund aims to lower risk through diversification across various sectors
6. Portfolio - Sector / Top 10 holdingsGiven below is the break-up of share holdings of the Nippon India Banking Fund.•Name•Sector•Class•Allocation %•HDFC Bank Ltd.•Banking and Finance•Equity•25.77•ICICI Bank Ltd.•Banking and Finance•Equity•13.85•Axis Bank•Banking and Finance•Equity•11.81•Yes Bank•Banking and Finance•Equity•6.08•State Bank of India•Banking and Finance•Equity•4.23•Indiabulls Housing Finance•Banking and Finance•Equity•4.07•Federal Bank•Banking and Finance•Equity•3.73•Nippon India Capital•Banking and Finance•Equity•3.23•IDFC•Banking and Finance•Equity•2.93•Housing Development Finance Corporation•Banking and Finance•Equity•2.67
7. Risk measures -The risk measures listed below have been calculated by taking rolling return for a 3 year period from 31/08/2012 to 31/08/2015•Sharpe Ratio•0.1•Alpha•NA•Beta•NA•Portfolio Turnover Ratio•0.75
8. Fund Performance•AUM•Rs.2192.02 Crores•NAV•Rs.44.063 as of 3rd September, 2015•Expenses, expense ratio•2.34%

Benchmark Comparison

Following is the benchmark comparison for Nippon India Banking Fund as per data from May 29th, 2015.