Fincash » Nippon India Consumption Fund Vs SBI Consumption Opportunities Fund
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Nippon India Consumption Fund Vs SBI Consumption Opportunities Fund
Nippon India Consumption Fund (Formerly known as Reliance Consumption Fund) and SBI Consumption Opportunities Fund belong to the equity category of Mutual Funds. Though both the funds focus on the consumption space, there are still many differences between them. This article is to help investors to make a better investment decision between both the funds. As these funds belong to the sector-equity category, they carry a high-risk with them. Thus, investors with a high-risk appetite should only plan to add these schemes in their Portfolio.
Important Information
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.
Nippon India Consumption Fund (Formerly Reliance Consumption Fund)
Nippon India Consumption Fund (earlier known as Reliance Consumption Fund) was launched in the year 2004. The scheme aims to generate long-term Capital appreciation by Investing atleast 80 percent of its net assets in equity and related instruments of the companies that are likely to benefit directly or indirectly from the domestic consumption led demand. Nippon India Consumption Fund has a focussed approach to invest in the potential leaders across the media and entertainment domain. It is well diversified across key segments like the Internet, Broadcasting, Distribution, Print, etc., driven by the relative attractiveness of opportunities and valuations. The fund is jointly managed by Sailesh Raj Bhan and Jahnvee Shah.
SBI Consumption Opportunities Fund (Erstwhile SBI FMCG Fund)
SBI Consumption Opportunities Fund (earlier known as SBI FMCG Fund) was launched in the year 1999. The scheme aims to provide long-term capital appreciation by investing in a diversified portfolio of equity related securities in consumption space. The fund will follow a bottom-up approach to stock-picking and choose companies within the consumption space. SBI Consumption Opportunities Fund is currently managed by Saurabh Pant. Some of the top holdings of the scheme are ITC Ltd, CCIL-Clearing Corporation of India Ltd (CBLO), Colgate Palmolive, Nestle India Ltd, Sheela Foam Ltd, etc.
Nippon India Consumption Fund Vs SBI Consumption Opportunities Fund
Though these schemes belong to the same category, yet these schemes differ on various parameters. So, let us understand the parameters which are divided into four sections, namely, Basics Section, Performance Report, Yearly Performance Report, and Other Details Section.
Basics Section
This section compares the various elements such as Current NAV, Scheme Category, and Fincash Rating. To begin with the scheme category, it can be said that both the schemes- Reliance/Nippon India Consumption Fund and SBI Consumption Opportunities Fund belong to the same category Equity Mutual Fund. With respect to the next parameter, that is, Fincash Rating, it can be said that Reliance Consumption Fund is rated as 2-Star and SBI Consumption Opportunities Fund is rated as 4-Star. In case of Net Asset Value, Nippon India Consumption Fund's NAV as on 16th July 2018 is INR 61.4888, whereas the NAV of SBI Consumption Opportunities Fund is INR 116.222. The table given below summarizes the details of basics section.
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 Nippon India Consumption Fund
Growth
Fund Details ₹196.752 ↓ -0.84 (-0.43 %) ₹2,023 on 30 Sep 24 30 Sep 04 ☆☆ Equity Sectoral 30 High 2.43 3.86 0.34 5.13 Not Available 0-1 Years (1%),1 Years and above(NIL) SBI Consumption Opportunities Fund
Growth
Fund Details ₹326.919 ↑ 1.14 (0.35 %) ₹3,101 on 30 Sep 24 2 Jan 13 ☆☆☆☆ Equity Sectoral 11 High 2.17 2.69 0.64 -2.35 Not Available 0-15 Days (0.5%),15 Days and above(NIL)
Performance Section
The performance section compares the Compounded Annual Growth Rate or CAGR returns between both the schemes at different time periods. With respect to performance, it can be said there is not much difference in the performance of both the schemes. However, in many instances, SBI Consumption Opportunities Fund leads the race. The performance of both the schemes at different time periods is shown below as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Consumption Fund
Growth
Fund Details -10.5% -4.6% 10.4% 35.1% 19.9% 23.1% 16% SBI Consumption Opportunities Fund
Growth
Fund Details -7.7% -0.9% 14.5% 36.6% 23.2% 22.3% 17.1%
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Yearly Performance Section
This section deals with the absolute returns generated by both the funds in each year. In this case, we can see that there is a difference in the performance of both the schemes. In certain situations, Reliance Consumption Fund has performed better than SBI Consumption Opportunities Fund. While in some situations, the other scheme has performed better. The yearly performance of both the funds is tabulated as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Nippon India Consumption Fund
Growth
Fund Details 26.9% 14.2% 31.9% 24.9% 7.3% SBI Consumption Opportunities Fund
Growth
Fund Details 29.9% 13.9% 35.6% 13.9% 0.1%
Other Details Section
This is the last section in the comparison of both the funds. In this section, the parameters such as AUM, Minimum SIP and Lumpsum Investment, and Exit Load are compared. To begin with the minimum SIP investment, it can be said the SIP amounts are different in both the schemes. In case of Nippon India Consumption Fund it is INR 100 while in case of SBI Consumption Opportunities Fund it is INR 500. But, in case of minimum lumpsum investment, the amount is same for both the funds, i.e., INR 5,000. The AUM of both the schemes are also different. As on 31st May, 2018, the AUM of Reliance/ Nippon India Consumption Fund is INR 66 crores, while of SBI Consumption Opportunities Fund is INR 621 crores. The table given below summarizes the other details for both the schemes.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Consumption Fund
Growth
Fund Details ₹100 ₹5,000 Kinjal Desai - 3.92 Yr. SBI Consumption Opportunities Fund
Growth
Fund Details ₹500 ₹5,000 Pradeep Kesavan - 0.5 Yr.
Growth of 10k Investments over the years
Nippon India Consumption Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,009 31 Oct 21 ₹16,409 31 Oct 22 ₹18,993 31 Oct 23 ₹20,913 31 Oct 24 ₹28,250 SBI Consumption Opportunities Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹8,708 31 Oct 21 ₹14,619 31 Oct 22 ₹17,643 31 Oct 23 ₹20,028 31 Oct 24 ₹27,366
Detailed Portfolio Comparison
Nippon India Consumption Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.44% Equity 96.56% Equity Sector Allocation
Sector Value Consumer Cyclical 39.52% Consumer Defensive 34.79% Communication Services 8.75% Industrials 6.77% Basic Materials 6.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL7% ₹149 Cr 870,000
↑ 50,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 20 | HINDUNILVR7% ₹133 Cr 448,000
↑ 33,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 May 18 | ITC6% ₹124 Cr 2,400,000 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | M&M5% ₹109 Cr 351,000
↑ 91,000 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 Oct 20 | 5324245% ₹91 Cr 653,653
↑ 53,653 Bajaj Auto Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | 5329774% ₹80 Cr 65,000 Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 28 Feb 23 | 5403764% ₹78 Cr 153,506
↓ -3,494 United Breweries Ltd (Consumer Defensive)
Equity, Since 30 Nov 20 | UBL4% ₹78 Cr 358,537 Berger Paints India Ltd (Basic Materials)
Equity, Since 30 Jun 24 | 5094804% ₹73 Cr 1,170,000
↑ 100,000 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Dec 22 | MARUTI3% ₹69 Cr 52,229
↑ 22,229 SBI Consumption Opportunities Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.81% Equity 97.19% Equity Sector Allocation
Sector Value Consumer Cyclical 49.58% Consumer Defensive 28.95% Industrials 10.57% Communication Services 5.73% Basic Materials 2.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Ganesha Ecosphere Ltd (Consumer Cyclical)
Equity, Since 31 May 18 | 5141676% ₹190 Cr 1,010,998 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 20 | BHARTIARTL5% ₹157 Cr 920,000 Jubilant Foodworks Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | JUBLFOOD4% ₹125 Cr 1,836,850 United Breweries Ltd (Consumer Defensive)
Equity, Since 31 May 21 | UBL4% ₹120 Cr 549,563
↑ 80,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 22 | HINDUNILVR4% ₹109 Cr 370,000
↑ 50,000 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Jan 20 | MARUTI3% ₹99 Cr 75,000
↑ 25,000 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹98 Cr 1,900,000 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | M&M3% ₹91 Cr 295,000 Britannia Industries Ltd (Consumer Defensive)
Equity, Since 30 Sep 20 | 5008253% ₹91 Cr 144,000
↑ 12,000 Whirlpool of India Ltd (Consumer Cyclical)
Equity, Since 29 Feb 24 | 5002383% ₹89 Cr 390,000
Therefore, from the above pointers, it can be said that both the schemes exhibit different attributes with respect to different parameters. However, when it comes to investing, it is always advisable that people should go through the scheme’s modalities completely before doing the actual investment. Additionally, they should also check whether the scheme’s approach is in-line with your investment objective. To get further clarification, you can even consult a financial advisor. This will help you ensure that your investment is safe as well as it paves way for wealth creation.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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