Nippon India Pharma mutual fund by Nippon India is invested purely in company stocks from the pharmaceutical companies and related services. The fund is the best performing scheme in this category of mutual funds. This fund invests your money in large, mid as well as small cap companies thereby leveraging the market value of all types of funds at some point or the other. This results in higher growth and greater mitigation of risk. While large cap stocks yield stability to the fund, mid and small cap shares enhance the chances of profit.
Type or nature of fund
Nippon India Pharma fund is an open-ended pharma sector mutual fund scheme
The primary aim of Nippon India Pharma fund is to generate consistent returns by investing in stocks and related securities of pharmaceutical companies. The fund is quite diversified in order to maximize returns and minimize risk.
Inception date 8th June 2004 CRISIL rank NA Options Bonus and Growth Schemes
Nippon India Pharma Fund Direct (B)
Nippon India Pharma Fund Direct (G)
Nippon India Pharma Fund (B)
Nippon India Pharma Fund (G)
Entry load NIL Exit load 1% if redeemed before completion of 1 year, NIL if redeemed after completion of 1 year from the date of allotment of mutual fund units Minimum investment Rs.5000 and thereby in multiples of Re.1 SIP
SIP scheme for Nippon India Pharma Fund is available and following is the applicable premium amount payable per month
- 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 Pharma Fund is best suited for customers who are looking for long term capital gains and who have a higher risk appetite Benchmark (about the benchmark) S&P BSE Healthcare Index SWP Yes, Available STP Yes, Available Redemption Nippon India Pharma Fund redemption of unit 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 frame Taxation Taxation varies for different fund schemes. Depends upon the time period for which the fund scheme is availed for. It is advisable for customers to get in touch with a tax expert for calcualtion of taxes.
Saliesh Raj Bhan is the fund manager of Nippon India Pharma Fund. Sailesh is known for his acumen to spot and invest in stcoks that are typically lesser known but have huge growth potential Sailesh is said to be the first fund manager to realize the hidden profitability in stcoks of the retail sector and to have invested in the same. He has a CFA certfification to his name and has worked with compnies like Shah and Sequeira Investement Ltd. He has over 19 years of experience in the field of equty research and fund management.
Apart from Nippon India Pharma Fund, Sailesh is Fund Manager to the following funds too.
Nippon India Top 200 Mutual Fund
Nippon India Equity Oportunities Fund
Nippon India Media and Entertainment Fund
Investment philosophy or strategy
Nippon India Pharma Fund works on the following investment strategy.
- Aim to maximise profit and reduce risk by combining stocks from mid and large cap companies
- Investment is spread to all sectors of the market so as to diversify and reap maximum benefit
- The fund is less affected by market forces and as such offers good growth visibility as well as decent cash flows
- Owing to the relative certainty in growth, the sector is set to benefit from chaneg in investment sentiment in its favor
Portfolio – Sector / Top 10 holdings
Given below is the stock names and the sector break-up of stocks that Nippon India Pharma Fund is currently holding.
Name Sector Class Allocation % Sun Pharma Pharmaceutical Equity 13.71 Abott India Ltd. Pharmaceutical Equity 12.13 Divi's Labs Ltd. Pharmaceutical Equity 9.67 Lupin Ltd. Pharmaceutical Equity 9.67 Cadila Healthcare Ltd. Pharmaceutical Equity 9.43 Dr.Reddy's Labs Pharmaceutical Equity 9.04 Sanofi India Ltd. Pharmaceutical Equity 8.89 Ipca Labs. Ltd. Pharmaceutical Equity 8.13 Cipla Ltd. Pharmaceutical Equity 7.18 FDC Ltd. Pharmaceutical Equity 3.29
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 0.2 Alpha NA Beta NA Portfolio Turnover Ratio 0.3
AUM Rs.1228.7 Crores NAV Rs.146.63 as of 7th September, 2015 Expenses, expense ratio 2.49%
Following is the benchmark comparison for Nippon India Growth Fund as per data from May 29th, 2015.
|Type||1 year||3 years||5 years|
|S&P BSE Healthcare Benchmark Return||25.36%||31.77%||23.69%|
|Difference between Fund & S&P BSE Healthcare Return||5.04%||-0.12%||-0.86%|
|Category Avg. Return||29.81%||32.81%||24.77%|
|Difference between Fund & Category Avg Return||0.59%||-1.15%||-1.94%|
|Rank in Category||4th||2nd||2nd|
Absolute Returns for 1, 3 and 5 years are mentioned above.
Expert view of the fund
Nippon India Pharma Fund is best suited for customers who are looking to grow their money and have a higher risk appetite. The fund has been doing quite well in recent times and holds substantial growth promise for future too, based on the minimum effect that it faces on the hands of market fluctuations. However, despite all the positives of the fund, this should not be the primary fund holding in your financial portfolio owing to the high risk asscoiated with this fund. Diversification of portfolio is a must in order to achieve least risk and maximum profit.
How to apply for Nippon India Pharma Fund
Nippon India pharma fund can be applied through online or offline company channels. Offline application of the fund involves visiting any of the Nippon India Mutual Fund branches and obtaining an application form. This form then needs to be filled and submitted along with certain other KYC documents. After this, the fund will be opened in your name.
Similarly, online application of Nippon India Pharma Fund can be done by visiting the Nippon India Mutual Fund website. Existing customers can log in with their credentials and fill out an online application form while new customers can create a valid login and then enter the Nippon India Mutual Fudn website for online application. You can also call up the services of mutual fund experst at Nippon India who can visit your place and give you a complete understanding of various Relaince mutaul funds products from whcih you can choose.
GST rate of 18% applicable for all financial services effective July 1, 2017.