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Axis Focused 25 Fund and Nippon India Large Cap Fund (Formerly known as Reliance Large Cap Fund), both schemes are a part of the same category of large-cap fund. However, both the schemes exhibit different attributes. In simple words, the Mutual Fund schemes that invest their pooled money in big businesses are known as Large cap funds. These companies are huge with respect to their size, Capital, and human resources. These companies are considered to deliver consistent performance with respect to their turnover and returns. The Market capitalization of these large-cap companies is above INR 10,000 Crores. Even when the Economy is not performing well, the share prices of these companies do not fluctuate much. So, let us understand the differences between Axis Focused 25 Fund and Nippon India Large Cap Fund by analyzing numerous parameters such as current NAV, AUM, and others through this article.
Axis Focused 25 Fund uses Nifty 50 Index as its benchmark to construct its index. The objective of Axis Focused 25 Fund is to attain capital appreciation in the long-term tenure by Investing the pooled money in a concentrated Portfolio of equity and equity-related instruments to a maximum of 25 companies. Mr. Jinesh Gopani is the sole fund manager managing the Axis Focused 25 Fund. As on March 31, 2018, some of the top constituents of Axis Focused 25 Fund include Bajaj Finance Limited, HDFC Bank Limited, Motherson Sumi Systems Limited, and Supreme Industries Limited. This scheme was launched on June 29, 2012. Some of the features of Axis Focused 25 Fund include embedded risk management to manage risks of portfolio concentration and high conviction investing.
Important- From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
The fund was launched on August 08, 2007. It is suitable for investors looking for long-term capital growth by investing in equity and equity-related instruments. Nippon India Mutual Fund’s this scheme’s objective is to aim for long-term capital growth by investing a significant portion of the fund money in equity and equity-related securities of large-cap companies. In addition, the scheme also aims to generate consistent returns by investing in fixed Income instruments. HDFC Bank Limited, State Bank of India, Larsen & Toubro Limited, Tata Steel Limited, and Infosys Limited are some of the top holdings of Reliance/Nippon India Large Cap Fund as of March 31, 2018. The scheme attempts to invest in companies having growth potentials along with high returns on equity and have reasonable valuations.
Both Axis Focused 25 Fund and Reliance Large Cap Fund differ on numerous accounts. So, let’s understand the differences between these schemes by analyzing these parameters that are classified into four sections. These sections are explained as follows.
The comparable elements forming part of this basics section include current NAV, Fincash Rating, and scheme category. To begin with the NAV, it can be said that both the schemes differ on account of NAV. As on April 26, 2018, the NAV of Axis Focused 25 Fund was around INR 32 and of Reliance Large Cap Fund was nearly INR 27. The comparison of the Fincash Rating states that Axis Focused 25 Fund is rated as 5-Star and Reliance/Nippon India Large Cap Fund is rated as 4-Star. Equity Large Cap is the scheme category of both the schemes. The summary comparison of the basics section is as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Axis Focused 25 Fund
Growth
Fund Details ₹55.41 ↑ 0.13 (0.24 %) ₹14,075 on 31 Jul 24 29 Jun 12 ☆☆☆☆☆ Equity Focused 7 Moderately High 1.69 1.46 -1.72 -5.64 Not Available 0-12 Months (1%),12 Months and above(NIL) Nippon India Large Cap Fund
Growth
Fund Details ₹89.6107 ↓ -0.43 (-0.48 %) ₹31,801 on 31 Jul 24 8 Aug 07 ☆☆☆☆ Equity Large Cap 20 Moderately High 1.7 2.53 2.02 6.73 Not Available 0-1 Years (1%),1 Years and above(NIL)
It is the second section in the comparison that analyzes the Compounded Annual Growth Rate or CAGR returns between both the schemes at different time intervals. The comparison of the performance sections states that Axis Focused 25 Fund leads the race in many instances. Moreover, there is a drastic difference between the returns generated by both the schemes. The summary comparison of the performance section is as shown in the table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Axis Focused 25 Fund
Growth
Fund Details 3.4% 15.3% 18.7% 32.2% 6% 15.4% 15.1% Nippon India Large Cap Fund
Growth
Fund Details 0.7% 14.7% 15.1% 37.1% 22.5% 23.4% 13.7%
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The analysis of the absolute returns generated by both the schemes for a particular year is done in this section. The comparison of the yearly performance section states that in certain instances Axis Focused 25 Fund leads the race while in other Nippon India Large Cap Fund leads the race. The summary of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Axis Focused 25 Fund
Growth
Fund Details 17.2% -14.5% 24% 21% 14.7% Nippon India Large Cap Fund
Growth
Fund Details 32.1% 11.3% 32.4% 4.9% 7.3%
It is the last section in the comparison. The comparable elements that form part of the other details section include AUM, minimum SIP investment, and minimum Lumpsum investment. The minimum lumpsum amount for both the schemes is same, that is, INR 5,000. However, the minimum SIP investment in case of Reliance Top 200 Fund is INR 100 and for Axis Focused 25 Fund is INR 5,000. Also, with respect to AUM, both the schemes differ. The AUM of Nippon India/Reliance Large Cap Fund was approximately INR 8,825 Crores while of Axis Focused 25 Fund was around INR 3,154 Crores as on March 31, 2018. The table given below shows the briefs the comparison of the other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Axis Focused 25 Fund
Growth
Fund Details ₹500 ₹5,000 Sachin Relekar - 0.5 Yr. Nippon India Large Cap Fund
Growth
Fund Details ₹100 ₹5,000 Sailesh Raj Bhan - 16.99 Yr.
Axis Focused 25 Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹10,622 31 Aug 21 ₹16,762 31 Aug 22 ₹15,395 31 Aug 23 ₹15,067 31 Aug 24 ₹20,084 Nippon India Large Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹9,918 31 Aug 21 ₹15,242 31 Aug 22 ₹16,944 31 Aug 23 ₹20,355 31 Aug 24 ₹28,360
Axis Focused 25 Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.85% Equity 95.15% Equity Sector Allocation
Sector Value Financial Services 26.82% Consumer Cyclical 14.43% Basic Materials 9.94% Utility 7.94% Communication Services 7.5% Technology 6.26% Health Care 6.17% Industrials 6.14% Consumer Defensive 4.87% Energy 2.72% Real Estate 2.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Torrent Power Ltd (Utilities)
Equity, Since 28 Feb 21 | 5327798% ₹1,117 Cr 5,986,652
↓ -699,283 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jul 21 | ICICIBANK7% ₹1,011 Cr 8,323,068 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 18 | TCS6% ₹881 Cr 2,008,953
↓ -167,276 Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Sep 16 | 5000346% ₹797 Cr 1,170,734
↓ -270,237 Pidilite Industries Ltd (Basic Materials)
Equity, Since 30 Jun 16 | PIDILITIND6% ₹777 Cr 2,437,008
↓ -238,215 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | HDFCBANK5% ₹693 Cr 4,291,492
↑ 1,379,300 Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 30 Apr 17 | 5403765% ₹685 Cr 1,388,046
↓ -611,378 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL5% ₹658 Cr 4,410,019 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Dec 22 | CHOLAFIN4% ₹604 Cr 4,261,035 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Jul 19 | DIVISLAB4% ₹514 Cr 1,043,054 Nippon India Large Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.96% Equity 99.04% Equity Sector Allocation
Sector Value Financial Services 33.46% Consumer Cyclical 12.22% Consumer Defensive 9.95% Industrials 9.92% Technology 9.91% Energy 7.16% Utility 5.99% Basic Materials 4.43% Health Care 4.21% Communication Services 1.77% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 08 | HDFCBANK9% ₹2,779 Cr 17,200,529 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE6% ₹2,017 Cr 6,700,000
↓ -600,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 16 | ITC6% ₹1,870 Cr 37,750,240 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK5% ₹1,701 Cr 14,000,000
↑ 1,300,000 Infosys Ltd (Technology)
Equity, Since 30 Sep 07 | INFY5% ₹1,495 Cr 8,000,084 State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | SBIN5% ₹1,440 Cr 16,500,644
↓ -500,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 15 | 5322154% ₹1,166 Cr 10,000,080 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 07 | LT4% ₹1,145 Cr 3,000,529
↑ 300,000 Tata Power Co Ltd (Utilities)
Equity, Since 30 Jun 23 | 5004003% ₹975 Cr 21,500,000 Bajaj Finance Ltd (Financial Services)
Equity, Since 31 Dec 21 | 5000343% ₹929 Cr 1,365,326
↑ 175,000
Therefore, based on the above-mentioned sections, it can be concluded that both Axis Focused 25 Fund and Nippon India/Reliance Large Cap Fund differ on account of numerous parameters. As a result, individuals should pay extra caution while choosing the scheme of their choice. They should see whether the scheme matches their investment objective or not. If required, they can also consult the opinion of a financial advisor. This will help individuals to attain their objectives in a timely manner along with ensuring that their investment is safe.
Good analysis