Fund Of The Month

Fund of the Month: : Nippon India Large Cap Fund

Fund Manager: Ashutosh Bhargava, Sailesh Raj Bhan

SEBI Categorisation: Large Cap Fund

Type & Investment Objective

The primary investment objective of the scheme is to seek to generate long term capital appreciation by investing predominantly into equity and equity related instruments of large cap companies. The secondary objective is to generate consistent returns by investing in debt, money market securities, REITs and InvITs.

Fund Commentary

Outlook

• As per the AMC, global markets faced a negative month in August 2023. China’s Manufacturing PMI remained in contraction. The US Dollar strengthened. Despite Chinese Government fiscal stimulus measures, base and industrial metal prices remained volatile. Brent crude rose as the market’s supply remained tight post supply restrictions by OPEC+ in previous months.
• Domestic macro trends have been resilient despite global uncertainty. Green shoots are visible on the industry Capex recovery which may be supported by Production Linked Incentive (PLI), Localization, China+1. India’s external sector situation continues to improve led by strong services exports and lower imports. We are also witnessing early signs of recovery in rural demand.
• While valuations remain challenging in the near term, the AMC believes that medium to long term opportunities remain strong for India, driven by investment cycle and policy reforms. The AMC continues to focus on domestic demand related sectors as growth and earnings certainties may be higher in related segments.

Sectoral Overweights

• Consumer Discretionary: Strong demand, low commodity prices, higher capacity creation
• Industrials: PLI, Make in India thrust, China+1, Europe+1, improved business confidence
• Financials: Better asset quality, adequately capitalized, strong credit growth

Sectoral Underweights

• Energy: Lower earnings visibility in the backdrop of current geodpolitical events
• Materials: Muted growth outlook
• IT: Global slowdown concerns likely to impact growth and sentiment

Sectoral Attribution – Fund Vs Benchmark – 1 Year Performance

• Positive impact mainly from Industrials, Consumer Discretionary and Financials. Stock selection largely contributed to the outperformance in Industrials, Consumer Discretionary and Financials.

This fund is recommended for investors with an investment horizon of 2-3 years, in line with investors’ individual risk profile and product suitability.

Top Holdings                                                                                                     ( As on 31 August 2023 )

Returns (%)                                                                                           (As on 31 August 2023 )

Absolute for <= 1 year and compounded annualized for > 1 year

Scheme Features

• Options: Growth and Dividend
• Minimum Investment amount: Rs. 100
• Load Structure Exit Load: "If redeemed bet. 0 Day to 7 Days; Exit Load is 1%;
• Benchmark Index: S&P BSE 100 TRI
• Aug 2023 [Fund Size in Crs] 15,855.03
• NAV: 52 Week High / Low: Rs. 64.66 / 51.69

This product is suitable for investors who are seeking*:

• Long term capital growth.
• Investment predominantly into equity and equity related instruments of large cap companies.

Source for entire data stated above is ACEMF & ICRA Analytics Ltd. (For Disclaimer of ICRA Analytics Ltd, refer https://icraanalytics.com/home/disclaimer)

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