Nippon India Mutual Funds

Nippon India Mutual Funds (formerly Reliance Mutual Fund) is one of the leading asset
management companies in India. It manages assets across managed accounts, mutual funds,
pension funds, alternative investments, and offshore funds. Nippon India Mutual Fund’s
(NIMF) asset manager is Nippon Life India Asset Management Limited (NAM India). NAM
India’s promoters are Reliance Capital Limited and Nippon Life Insurance Company that hold
75.93% of its total issued and paid-up equity share capital.
Reliance Capital Limited is one of India’s topmost RBI registered Non-Banking Finance
Company and has its business interests in asset management, life insurance, general insurance,
stockbroking and other activities in the financial sector.
Nippon India Mutual Fund is one of India’s top Asset Management Companies. Set up in June
1995 as Reliance Mutual Fund, it was a joint venture between India's Reliance Capital and
Japan's Nippon Life Insurance company. In October 2019, Reliance's stake was bought by
Nippon, and the fund house was renamed as Nippon India Mutual Fund.
Nippon Mutual Funds manage assets worth Rs. 2,79,369 crore (as of May 31, 2022 ).
Currently, the range of Nippon mutual funds schemes includes 52 equity, 266 debt, and 40
balanced funds. The company is led by its CEO Sundeep Sikka. Nippon Life India Asset
Management Limited works as an investment management firm. The Company provides
services like portfolio management, mutual fund investment, financial planning, and advisory
services to individuals, institutions, trusts, and private funds.
SMALL CAP FUND

Currently it is down by 1.01%
RISK RATIOS
Ratios calculated on daily returns for last 3 years (Updated as on 31st January,
2023)
 Standard Deviation
High volatility
21.43vs19.62
Category Avg
 Beta
High volatility
0.92vs0.81
Category Avg
 Sharpe Ratio
Better risk adjusted returns
1.05vs0.86
Category Avg
 Treynor's Ratio
0.24vs0.21
Category Avg
 Jension's Alpha
7.43vs5.39
Category Avg
Standard Deviation value gives an idea about how volatile fund returns has been in
the past 3 years. Lower value indicates more predictable performance. So if you are
comparing 2 funds (lets say Fund A and Fund B) in the same category. If Fund A
and Fund B has given 9% returns in last 3 years, but Fund A standard deviation
value is lower than Fund B. So you can say that there is a higher chance that Fund A
will continue giving similar returns in future also whereas Fund B returns may vary.
Beta value gives idea about how volatile fund performance has been compared to
similar funds in the market. Lower beta implies the fund gives more predictable
performance compared to similar funds in the market. So if you are comparing 2
funds (lets say Fund A and Fund B) in the same category. If Fund A and Fund B has
given 9% returns in last 3 years, but Fund A beta value is lower than Fund B. So you
can say that there is a higher chance that Fund A will continue giving similar returns
in future also whereas Fund B returns may vary.
Sharpe ratio indicates how much risk was taken to generate the returns. Higher the
value means, fund has been able to give better returns for the amount of risk taken. .
It is calculated by subtracting the risk-free return, defined as an Indian Government
Bond, from the fund’s returns, and then dividing by the standard deviation of returns.
For example, if fund A and fund B both have 3-year returns of 15%, and fund A has a
Sharpe ratio of 1.40 and fund B has a Sharpe ratio of 1.25, you can chooses fund A,
as it has given higher risk-adjusted return.
Treynor’s ratio indicates how much excess return was generated for each unit of
risk taken. Higher the value means, fund has been able to give better returns for the
amount of risk taken. It is calculated by subtracting the risk-free return, defined as an
Indian Government Bond, from the fund’s returns, and then dividing by the beta of
returns. For example, if fund A and fund B both have 3-year returns of 15%, and fund
A has a Treynor’s ratio of 1.40 and fund B has a Treynor’s ratio of 1.25, then you can
chooses fund A, as it has given higher risk-adjusted return.
Alpha indicates how fund generated additional returns compared to a benchmark. .

Let’s say if a fund A benchmarks its returns with Nifty50 returns then alpha equal to
1.0 indicates the fund has beaten the nifty returns by 1%, so the higher the alpha,
the better.
TAX RATE
If sold after 1 year from purchase date, long term capital gain tax will be applicable.
Current tax rate is 10%, if your total long term capital gain exceeds 1 lakh. Any
cess/surcharge is not included.|If sold before 1 year from purchase date, short term
capital gain tax will be applicable. Current tax rate is 15%. Any cess/surcharge is not
included in the 15%.

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Nippon India Mutual Funds (formerly Reliance Mutual Fund) is one of the leading asset

SMALL CAP FUND

Alpha indicates how fund generated additional returns compared to a benchmark. .

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