With 22.74% Annualised Returns In 2-Year, This Index Mutual Fund – S&P BSE Sensex Plan Is Good Buy

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Investment
oi-Shubham Kumar

| Published: Friday, July 15, 2022, 18:00 [IST]

A mutual fund or exchange-traded fund (ETF) that tracks the performance of an underlying benchmark index is known as an index fund. You don’t have to be an expert to make money in the stock market. Indeed, index funds are a popular asset class that eliminates much of the work involved in investing. These funds offer low-cost, diversified access to gains without requiring extensive research or market experience.

Here, we have highlighted one such Index Fund, to be particular the S&P BSE Sensex Plan of the Index Fund. This fund is Nippon India Index Fund, from Nipon India Mutual Fund. The fund has delivered good returns to its investors over the years. More details are below.

Nippon India Index Fund – S&P BSE Sensex Plan

This Mutual Fund is an 11-year-old Index fund turning 12 in September, it was launched on 28 September 2010 by the Nippon India Mutual Fund. Previously it was known as Nippon India Index Fund-Sensex Plan. 

This Index Fund under the Direct Plan Growth Option is worth Rs 282.71 crore of Asset under Management (AUM). Whereas, the expense ratio is 0.15%, less compared to its category average expense ratio of 0.27%. Its recent declared Net Asset Value (NAV) on 14th July 2022 is Rs 27.9173.

The fund has been rated 2-star by CRISIL and 4-star by Value Research, respectively. It is an open-ended equity mutual fund. When investing, the fund is rated moderately high risk. Fund’s risk grade is average. The benchmark of the fund is S&P BSE TRI.

This mutual fund scheme seeks to replicate the composition of the Sensex, to generate returns that are commensurate with the performance of the Sensex, subject to tracking errors. 

Investment

Investors can start investing in this fund with a Lump-Sum amount or via SIP. To begin investing via the lump-sum method, the minimum amount required is Rs 5000, and for investing through SIP, the minimum amount required is Rs 1000.

The investor can also invest an additional amount in their investment. For additional investment, the minimum amount required is Rs 1000.

Please note, that this fund has no lock-in period, however, the fund charges 0.25% for redemption on investments within 7 days or 1 week of the investment date.

Annualised Returns

Lump-Sum Investment Returns

Since its inception, the fund under the Direct Plan-Growth option has given 11.78% annual average returns.

1-Year 2 Year 3 Year 5 Year
2.02% 22.74% 12.31% 11.73%

SIP Investment Returns

The fund has given negative returns in 1 year on SIP investments.

1-Year 2 Year 3 Year 5 Year
-9.78% 7.49% 13.36% 12.34%

Portfolio

As it is an equity index fund, it has a majority of investments in domestic equity instruments. It has 99.57% investments in equity of which 89.74% are in large-cap stocks.

It has a major holding in 4 sector which includes Financial followed by Technology, energy and Consumer Staples. Other than these 4 sectors, the fund has investments in automobile, construction, materials, communication, healthcare, consumer discretionary, and metal & mining.

Major holding in equity includes Reliance Industries, HDFC Bank, Infosys, ICICI Bank, HDFC, Tata Consultancy Services, ITC, Kotak Mahindra Bank, Hindustan Unilever, Larsen & Toubro, State Bank of India, Axis Bank, Bharti Airtel, Bajaj Finance, Asian Paints, Maruti Suzuki, HCL Technologies, Mahindra & Mahindra, Sun Pharmaceuticals Industries, Titan Company and few others.

Disclaimer

Mutual funds investment are subject to market. Read all scheme related documents carefully before investing. Greynium Information Technologies, and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.

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Story first published: Friday, July 15, 2022, 18:00 [IST]

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