Nippon India Diversified Power Sector Fund is a mutual fund scheme that is invested in equity of companies that deal with the power sector. The scheme is ideal for customers who are looking for long term capital growth. Nippon India Diversified Power Sector mutual fund offers internal scheme switch to customers in case they are not fully satisfied with the terms and conditions of the scheme.
Type or nature of fund
Nippon India Diversified Power Sector Fund is an open-ended power sector mutual fund scheme
Nippon India Diversified Power Sector Fund is mainly aimed at investing in stocks of companies that are in the power sector. The scheme aspires to generate long-term capital by investing in equity and equity related instruments of such companies.
Inception date 10th May 2004 CRISIL rank Ranked 5 in Thematic Infrastructure Funds Plans Direct, Retail and Institutional Plans in variants Growth and Bonus Schemes
The Scheme offers following Plans / Options:
- Nippon India Diversified Power Sector Fund – Direct Plan (D)
- Nippon India Diversified Power Sector Fund – Direct Plan (G)
- Nippon India Diversified Power Sector Fund – Retail Plan (D)
- Nippon India Diversified Power Sector Fund – Retail Plan (G)
- Nippon India Diversified Power Sector Fund – Institutional Plan (D)
- Nippon India Diversified Power Sector Fund – Institutional Plan (G)
Entry load NIL Exit load 1% if redeemed before completion of 1 year, NIL if redeemed after completion of 1 year from date of allotment of fund units Minimum investment Rs.5000 and then in multiples of Re.1 for customers who avail Nippon India Diversified Power Sector mutual fund scheme SIP
Sip investment option is available for Nippon India Diversified Power Sector Fund. Following is the SIP amount break-up.
Minimum investment amount for investing: is-
- Rs.100/- per month then in multiples of Re. 1/- for minimum 60 months
- Rs.500/- per month then in multiples of Re. 1/- for minimum 12 months
- Rs.1000/- per month then in multiples of Re. 1/- for minimum 6 months
- Rs.500/- per quarter then in multiples of Re. 1/- for minimum 12 quarters
- Rs.1500/- per quarter then in multiples of Re. 1/- for minimum 4 quarters
- Rs. 5000/- per year then in multiples of Rs. 500/- for minimum 2 years
Product label – Risk and target investors High, Nippon India Diversified Power Sector Fund is most suitable for customers who are looking for long-term capital growth and for those who have a greater risk-appetite Benchmark S&P BSE Power Index SWP Yes, Available STP Yes, Available Redemption Redemption of Nippon India Diversified Power Sector Fund units will be done by the fund provider on a legitimate request by customers. The redemption will be done within 10 days from the request and is generally processed in 3-4 days. Taxation Taxation process for Nippon India Diversified Power Sector Fund depends upon the type of fund and the period of the fund scheme. However, customers are advised to figure out the exact tax details in consultation with a professional tax advisor.
- Following are the Fund Managers who look into the Nippon India Diversified Power Sector fund.
- Sunil Singhania
He is a graduate from Narsee Monjee College, Mumbai after which he completed CFA course, USA as well as ICAI for Chartered Accountancy. He also secured an all India rank in the CA course. Mr. Sunil Singhania has been in the business of tracking and managing equity investments for the past 20 years. He endeavors to offer customers mutual funds that are not only smart investment choices but also offer substantial risk-adjusted returns.
- Jahnvee Shah
Jahnvee 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.
Investment philosophy or strategy
The investment philosophy and strategy which Nippon India Diversified Power Sector fund functions
- Focused on investing in companies pertaining to the power sector
- Sufficient diversification of stock holdings in order to ensure risk mitigation and market capitalization
- Focused on creation of long term risk-adjusted capital
- Since the demand in the power sector is huge, the sector continues to grow and offer returns
Portfolio – Sector / Top 10 holdings
Given below is the break-up of share holdings of the Nippon India Diversified Power Sector Fund.
Name Sector Class Allocation % KEC INTERNATIONAL LTD Power Sector Equity 6.01 LARSEN & TOUBRO LTD Power Sector Equity 5.94 CUMMINS INDIA LTD Power Sector Equity 5.52 ALSTOM T&D INDIA LTD Power Sector Equity 5.2 ALSTOM INDIA LTD Power Sector Equity 5.06 IDFC LTD. Power Sector Equity 4.74 THERMAX LTD Power Sector Equity 4.47 STERLITE TECHNOLOGIES LTD Power Sector Equity 4.21 CROMPTON GREAVES LTD Power Sector Equity 4.18 KSB PUMPS LTD Power Sector Equity 4.1
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 0.05 Alpha NA Beta NA Portfolio Turnover Ratio 0.3
AUM Rs.1927.72 Crores NAV Rs.70.89 as of 4th September, 2015 Expenses, expense ratio 1.75%
Following is the benchmark comparison for Nippon India Diversified Power Sector Fund as per data from May 29th, 2015.
|Compounded Annualized Returns||Scheme Returns %||Benchmark Returns %|
|Returns for the last 1 year||-19.19||-18.65|
|Returns for the last 3 years||-19.37||-20.06|
|Returns for the last 5 years||3.09||0.26|
|Returns since inception||-1.34||4.65|
Absolute Returns for each financial year for the last 5 years are mentioned above.
Expert view of the fund
Nippon India Diversified Power Sector fund is a great mutual fund scheme that focuses on investment in stocks of companies in the power sector. Since the demand for this product is ever increasing, the returns expected out of this investment are high. The scheme is ideal for customers looking for long-tern investment avenues. This is a multi-cap fund which means that your money is invested in large, cap, small cap as well as mid cap companies. Large cap companies lend stability to the fund while mid and small cap companies offer growth opportunities.
How to apply for Nippon India Diversified Power Sector Fund
You can apply for the Nippon India Diversified Power Sector Fund either through offline or online channels. Any of the Nippon India Mutual Fund branches can be visited for offline filling and submission of application form while online application can be made via the Nippon India Mutual Fund website. Existing customers can login to the online portal by using their user name and password while new customers can first register and then login to apply for various Nippon India mutual fund schemes.
Alternatively, you can also call up the Nippon India customer center to request for expert advice in order to know and be sure of the mutual fund scheme that you want.
GST rate of 18% applicable for all financial services effective July 1, 2017.