Nippon India Mutual Fund has revised its subscription limits for Nippon India Small Cap Fund, effective from Friday, i.e., August 16, 2024.
Among the new changes, the daily investment limit for new Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) will shift from Rs 50,000 per day per PAN to Rs 50,000 per transaction or instalment basis. These tweaks have been done to manage inflows and ensure a balanced growth of the fund.
Daily limit: The daily investment limit for new Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) will change to Rs 50,000 per transaction or installment, from the previous limit of Rs 50,000 per day per PAN.
Monthly overall limit: A new monthly overall limit of Rs 11,50,000 per Permanent Account Number (PAN) has been introduced for total investments made across all frequencies within a month.
Existing SIPs: Existing Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) that were registered prior to the effective date of this change will remain unaffected.
New investments: For new investments, individuals interested in initiating fresh SIPs or STPs are required to comply with the adjusted limits. This factor may impact their investment approaches and the scheduling of their deposits.
The Indian mutual fund industry has experienced significant growth in assets over the past two quarters (Q1 FY25 and Q4 FY24), driven by a notable increase in the assets under management (AUM) of specific mutual funds spanning various sizes.
Among the top 10 fund houses ranked by AUM, Nippon India Mutual Fund exhibited the most substantial AUM growth, reaching 28% in the last two quarters. As per data provided by the Association of Mutual Funds in India (Amfi), Nippon India Mutual Fund recorded an average AUM of Rs 4.8 lakh crore in the quarter concluding June, contrasting with Rs 3.8 lakh crore in the quarter concluding December 2023.
On July 16, 2023, the Net Asset Value (NAV) of the Nippon India Growth Fund surpassed Rs 4,000, marking a significant increase from its inception value of Rs 10 in 1994. Nippon India Growth Fund stands as the pioneering Indian equity mutual fund scheme to attain this remarkable milestone. As of now, the NAV for the regular plan stands at Rs 4,003.6532, while the direct plan reflects a NAV of Rs 4,349.6532. The mid-cap scheme accomplished this feat over a span of 28.79 years, with the fund crossing the Rs 3,000 mark on December 1, 2023.
Nippon India Growth Fund has delivered favourable returns to investors since its inception, boasting a commendable 23.14% return on investment. Over the years, the scheme has consistently outperformed by providing over 20% returns within three, five, and seven-year time horizons.
Specifically, investors have seen impressive returns of 28.81% and 29.27% in the three- and five-year periods, respectively. Moreover, the fund has yielded a respectable 20.94% return over a seven-year span and a 19.94% return over a decade, showcasing its ability to generate value for investors across varying timeframes.
The benchmarks of the scheme, against which it is currently measured, have undergone multiple revisions over time. As of now, the scheme is benchmarked against Nifty Midcap 150-TRI. Over the past three years, the benchmark has provided a return of 27.85%, while over a five-year period, it has offered a return of 29.41%. Looking at a seven-year span, the benchmark has yielded a return of 20.62%. Finally, over a decade-long timeframe, the benchmark has showcased a return of 20.75%.