Why Nippon India Growth Fund is a Smart Mid-Cap Bet in 2025?
The last few years have been the toughest times for global economies, but the Nippon India Growth Fund still delivered 23.98% of SIP returns in its 3-year plan. Not only this, the fund also manages a massive AUM worth over Rs 33,155 crores, which screams how stable it is for you.
So, if you are looking for a mutual fund scheme to earn some exciting returns in 2025, a year full of market volatility, due to both domestic and global events. Then this fund can be a smart investment option for you.
And to further support the above statement, this review provides a detailed assessment of the scheme based on its investment philosophy, sector allocation, returns, market cap allocation and stock quality.
But before we start the real conversation, let us learn more about the scheme first.
About the Nippon India Growth Fund
Nippon India Mutual Fund launched the scheme in October 1995. It is a “Midcap mutual fund” that primarily invests in equity stocks, precisely 98.89%, of different mid cap companies.
The following facts about the scheme will leave you amazed for sure:
- The scheme has been giving outstanding returns with a CAGR(Compound Annual Growth Rate) of 22.25% since its launch.
- The expense ratioof this scheme is 1.58% (as on 31/03/25) which means you will get higher net returns on an annual basis.
- The NAV (Net Asset Value) is as high as Rs 3810.97 (as on 02/05/25) which means that the fund is actually investing in high-quality stocks.
Considering the Nippon India Growth Fund NAV history, it can be easily speculated that the fund will touch greater heights in the upcoming times.
However, as they say, “Don’t judge a book by its cover.” So let us now start reviewing the fund from its investment philosophy.
What is the Philosophy of the Nippon India Growth Fund?
This fund adopts a growth-oriented approach that focuses on investing in high-quality mid cap companies for the long term. By holding the stocks for long term, the Nippon India Growth Fund makes sure that you earn high capital gains.
Moreover, to identify high-quality stocks, the scheme uses a bottom-up research approach in which it assesses companies based on factors like revenue growth, profitability, etc.
And this is further strengthened by “The Must 5 Quality Framework,” which includes 5 key parameters that are profit growth, efficiency, demand environment, profit margins and debt management. This framework plays a key role in finding promising companies for you.
But are these sectors giving real returns? So, this is the right time to investigate the scheme based on its returns.
What are the Returns of the Nippon India Growth Fund?
There is nothing better about Mutual Funds other than their capability to give great returns. So let us see how good this scheme is in giving returns:
1. Rolling Returns
As you can see in the above graph, the Nippon India Growth Fund has given 19.84% and 17.7% Rolling Returns in 3 years and 5 years respectively.
Although it is not very high from the benchmark fund, Nifty Mid Cap 150 TRI, this scheme has been able to give such great returns when the world was facing catastrophic events like the COVID-19 pandemic.
2. SIP Returns
The scheme has given whopping SIP returns of 23.98% in 3 years and 25.74% in 5 years. Now compare these returns with the category average and the benchmark index, Nifty Mid Cap 150 TRI in the graph below:
The Nippon India Growth Fund has outperformed both of them with considerable margins.
Pro-Tip: Calculate your future returns from the scheme through the SIP Calculator.
No doubt, this philosophy sounds so good, but how good is it in real terms? The fund’s sector allocation may tell you about this.
What is the Sector Allocation of the Nippon India Growth Fund?
The scheme has invested 23.14% of its funds in the financial services sector. This is to get the benefits from the boom of digitalization and the resultant economic growth in the country.
Another considerable investment is 18.63% in consumer discretionary. Such a significant exposure to consumption-driven growth perfectly aligns with the rising middle-class spending in India.
To get a better understanding of the sector allocation, you can refer to the graph below:
This Mid Cap Mutual Funds category scheme has also invested 17.13%, 11.97% and 8.49% of its funds in industrials, healthcare and technology sectors respectively. Such a diverse sector allocation is to protect your portfolio from the negative impact of market fluctuations.
Considering the risk of market volatility, earning great returns with significant stability is a dream for investors. And what if this scheme turns this dream true for you?
Market Cap Allocation of the Nippon India Growth Fund
The scheme has invested 58.9% of its funds in mid-cap companies and 39.3% of its funds in large cap companies. This combination will keep giving you stable returns throughout your investment plan.
The Nippon India Growth Fund also invests 1.8% of its funds in small cap companies which will create future wealth for you.
Stable returns cannot be promised until companies show real growth, hence you should also assess the stock quality of mutual funds you want to invest in.
How is the Stock Quality of the Nippon India Growth Fund?
The P/E ratio of the stocks is 24.41% and the cash flow growth is 12.13% which are way higher than the category average. This means that the stocks hold strong future growth potential while having strong financial stability and liquidity.
| Stocks Quality | ||||
|---|---|---|---|---|
| P/E Ratio | Earnings Growth | Sales Growth | Cash Flow Growth | |
| HDFC Flexi Cap Fund | 24.41 | 16.76 | 16.01 | 12.13 |
| Category Average | 19.74 | 16.22 | 13.56 | 1.76 |
The earnings growth and the sales growth are 16.76 and 16.01, respectively, which are almost around the category average. However, these ratios suggest that the companies are earning great profits and their sales are increasing at a significant rate.
The discussion can go on longer and longer but it will not be a wise move as you need to make a decision before it's too late. This Nippon India Growth Fund review includes enough parameters to help you make informed decisions. So let us now finish this conversation with a conclusion.
Smart Investments, Bigger Returns
To Conclude On Nippon India Growth Fund Review
Mid-cap funds are known for their ability to withstand adverse times and give stable returns to investors. By investing in the scheme, you will not only be able to navigate through this tough financial year but you will also make considerable wealth for the future.
This is a win-win situation for every investor. The sooner you start your SIP or make a lump sum investment, the higher the chances are of earning great profits.
