Nippon India Mutual Fund is the fourth largest player in the Indian Mutual Fund industry, managing assets worth Rs 7.2 trillion.
The fund house follows a top-down approach to identify key sectors and then uses a bottom-up approach to identify stocks within those sectors.
Nippon India Mutual Fund is benchmark agnostic and aims to focus on picking high-conviction stocks based on fundamental research. To pick stocks from its shortlisted universe, the fund house bases its decision based on the following parameters:
- Business potential (scalability, sustainable competitive advantage)
- Earnings track record (revenue, EBITDA, profitability, RoE, and RoA)
- Capital allocation (diversification, leverage)
- Promoter ownership (equity dilution, promoter pledge)
- Corporate governance (treatment of minority shareholders, promoters track record, accounting red flags)
In this editorial, we will look at the top 3 equity schemes from Nippon India Mutual Fund.
We have shortlisted these schemes based on a combined quantitative score which includes 6-month, 1-year, 3-year, and 5-year rolling returns along with risk-reward ratios such as standard deviation, sharpe, sortino, and up/down capture ratio.
#1 Nippon India Growth Mid Cap Fund
Launched in October 1995, Nippon India Growth Fund is one of the oldest and most popular schemes in the Mid Cap Fund category.
Until 2017, the fund followed a multi-cap approach, but it later revised its strategy to align with the market regulator’s definition for mid cap funds.
Nippon India Growth Mid Cap Fund employs the Growth at Reasonable Price (GARP) strategy to identify high-potential stocks.
The fund avoids investing in momentum-driven bets, instead focusing on quality stocks available at reasonable valuations and holding them with a long-term perspective.
In the last 5 years, Nippon India Growth Mid Cap Fund grew at a CAGR of 30.6% on a rolling return basis compared to 28.8% in the NIFTY Midcap 150 – TRI index.
In terms of risk-adjusted returns the fund has fund outpaced its benchmark, as denoted by the Sharpe and Sortino ratios.
Performance Snapshot – Nippon India Growth Mid Cap Fund
| Scheme Name | 1 Yr (%) | 3 Yr (%) | 5 Yr (%) | Std Dev | Sharpe | Sortino |
| Nippon India Growth Mid Cap Fund | 8.65 | 25.98 | 30.59 | 15.19 | 0.36 | 0.73 |
| Nifty Midcap 150 – TRI | 5.45 | 23.41 | 28.83 | 15.33 | 0.33 | 0.65 |
Source: ACE MF
As of 30 November 2025, the fund invested 65.7% of its assets in midcaps, 21.3% in largecaps, and 9.2% in smallcaps.
The fund’s top stocks are BSE (3.5%), Fortis Healthcare (3%) and The Federal Bank (4.3%).
Its top sectors are finance (15.7%), auto & ancillaries (13.4%), and healthcare (11.4%).
The fund has shown potential to deliver reasonable growth across different market phases.
Its strategic allocation to fundamentally sound mid-cap companies, along with investments in large-cap and small-cap stocks, enables the fund to generate alpha and effectively navigate through diverse market phases.
#2 Nippon India Vision Large & Mid Cap Fund
Launched in October 1995 is one of the oldest funds in its category. This fund was originally managed as a large cap-oriented fund but was recategorised in 2018.
The fund aims to invest in market leaders in their respective sectors.
It also holds tactical allocation to high quality midcaps exhibiting leadership characteristics with scalable business models.
In the last 5 years, Nippon India Vision Large & Mid Cap Fund grew at a CAGR of 24.5% on a rolling return basis compared to 23.9% in the NIFTY LargeMidcap 250 – TRI index.
In addition, its has outpaced the benchmark in terms of risk-adjusted returns.
Performance Snapshot – Nippon India Vision Large & Mid Cap Fund
| Scheme Name | 1 Yr (%) | 3 Yr (%) | 5 Yr (%) | Std Dev | Sharpe | Sortino |
| Nippon India Vision Large & Mid Cap Fund | 8.36 | 21.39 | 24.48 | 12.74 | 0.34 | 0.70 |
| NIFTY LargeMidcap 250 – TRI | 5.32 | 18.81 | 23.85 | 13.05 | 0.28 | 0.57 |
Source: ACE MF
As of 30 November 2025, the fund invested 60.2% of its assets in largecaps and 38% in midcaps, with no exposure in smallcaps.
The fund’s top stocks are HDFC Bank (4.6%), Reliance Industries (4.3%), and ICICI Bank (4.1%).
Its top sectors are banks (16.5%), auto & ancillaries (10.5%), and infotech (8.9%).
Over the past few years, the fund has witnessed frequent change in its fund management team.
Despite this, it has notable lead over the benchmark and the category average in recent years, which has resulted in improvement in its long-term performance. Notably, its performance may deviate from its peers that hold substantial allocation to small-cap stocks.
#3 Nippon India Value Fund
Initially launched as Multi Cap Fund in June 2005, this fund was re-categorised in 2018 though it continues to hold exposure across market caps.
The fund endeavours to invest in undervalued stocks with fundamentally sound businesses that have the potential to deliver long term relatively better risk-adjusted returns.
While doing so it aims to avoid value trap, meaning value buys where the long-term structural growth is uncertain or can be disrupted.
In the last 5 years, Nippon India Value Fund grew at a CAGR of 27.1% on a rolling return basis significantly outpacing the 21.1% CAGR generated by the benchmark NIFTY 500 – TRI index.
While the fund has displayed higher volatility compared to the benchmark, it has managed to reward investors for the risk taken.
Performance Snapshot – Nippon India Value Fund
| Scheme Name | 1 Yr (%) | 3 Yr (%) | 5 Yr (%) | Std Dev | Sharpe | Sortino |
| Nippon India Value Fund | 5.97 | 22.80 | 27.05 | 13.81 | 0.33 | 0.72 |
| NIFTY 500 – TRI | 4.57 | 16.22 | 21.10 | 12.46 | 0.24 | 0.47 |
Source: ACE MF
As of 30 November 2025, the fund invested 60% of its assets in largecaps, 21% in midcaps, and 13.3% in smallcaps.
The fund’s top stocks are HDFC Bank (8.8%), Infosys (3.7%), and ICICI Bank (3.5%).
Its top sectors are finance (26.9%), infotech (8.6%), and energy (8.2%).
Nippon India Valie Fund’s performance particularly stands out during certain bull phases, during which it has outpaced the benchmark as well as many of its peers by a noticeable margin, while its performance during bearish phases is reasonable.
It maintains a well-diversified portfolio of fundamentally sound stocks spread across market caps and sectors and holds them until their full potential is realised.
Conclusion
Various equity funds of Nippon India Mutual Fund have displayed superior growth over the past few years and have rewarded investors with noteworthy risk-adjusted returns. Some of these have grown significantly in popularity, turning out to be leaders in their respective categories.
The fund house focuses on picking quality stocks available at reasonable valuations and holds them with a medium to long-term view. This strategy have enabled it to limit the downside risk during market downturns and also do well during market rallies.
However, it’s important to note that past performance is not an indicator for future returns.
In addition, it’s crucial that you ensure the suitability of scheme/s to your risk profile and investment objectives before you consider adding them to your portfolio.
Be a thoughtful investor.
Happy investing.
#Table Note: Data as of December 30, 2025
The securities quoted are for illustration only and are not recommendatory
Past performance is not an indicator for future returns.
Returns are on a rolling basis and in %. Direct Plan-Growth option.
Those depicted over 1-Yr are compounded annualised.
Risk ratios are calculated over a 3-year period assuming a risk-free rate of 6% p.a.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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