If you’re thinking about securing your future and building wealth, Nippon India Growth Fund could be a perfect choice. This mid-cap mutual fund has turned small investments into massive wealth over the years. For instance, a modest monthly SIP of Rs 1,000 has grown into a fund worth Rs 3.18 crore for 29 years.
Let’s take a look at how this fund performed and why it’s a great option for long-term investors.
Overview of Nippon India Growth Fund
Launched in October 1995, the Nippon India Growth Fund focuses on mid-cap stocks with a goal of long-term capital growth. It has consistently outperformed its benchmarks, making it a top choice for those looking for high returns.
| Key Fund Details | Figures |
| Inception Date | 8 October 1995 |
| CAGR Since Launch | 23.14% |
| 5-Year CAGR | 31.62% |
| 1-Year CAGR | 52.94% |
| Fund Size (AUM) | Rs 33,707 crore (as of August 31, 2024) |
| Minimum Investment | Rs 100 |
| Expense Ratio (Regular) | 1.59% |
| Expense Ratio (Direct) | 0.79% |
| Risk Level | Very High |
| Benchmark | NIFTY Midcap 150 TRI |
How Rs 1,000 SIP Grew to Rs 3.18 Crore
The power of compounding and the long-term growth of mid-cap stocks are evident in Nippon India Growth Fund’s performance. Here’s a breakdown of how a monthly SIP of Rs 1,000 turned into Rs 3.18 crore over 29 years:
| Investment Type | Amount |
| Monthly SIP | Rs 1,000 |
| Total Investment (29 Years) | Rs 3.58 lakh (including SIP & lump sum) |
| Fund Value Today | Rs 3.18 crore |
The fund’s 23.14% CAGR since inception has helped investors witness such impressive growth.
Lump Sum Investment Performance
For those who prefer to invest a lump sum instead of a monthly SIP, Nippon India Growth Fund also delivers excellent results. If someone had invested Rs 1 lakh in the fund at the time of its launch, the value of the investment as of August 31, 2024, would have been over Rs 4.11 crore.
| Lump Sum Investment | Fund Value |
| Rs 1 Lakh | Rs 4.11 Crore (as of August 31, 2024) |
Investment Strategy: Focus on Mid-Cap Leaders
Nippon India Growth Fund’s strategy is to invest in mid-cap companies that have the potential to grow into market leaders. The fund follows a Growth at Reasonable Price (GARP) approach, meaning it looks for companies that are undervalued but have the potential for high growth in the future.
With 97.27% of its portfolio invested in equities, the fund’s focus is on companies that can deliver strong performance over the long term. The fund has diversified its investments across various sectors to mitigate risks.
Top Holdings of Nippon India Growth Fund
The current portfolio of the Nippon India Growth Fund is composed of companies from diverse sectors. Here are some of its top holdings as of August 31, 2024:
| Stock | Holding Percentage |
| Power Finance Corporation | 3.26% |
| Cholamandalam Financial | 2.61% |
| Voltas | 2.59% |
| Persistent Systems | 2.57% |
| The Federal Bank | 2.31% |
These companies have shown strong growth potential, helping the fund maintain its high returns.
Who Should Invest in Nippon India Growth Fund?
This fund is ideal for investors who are looking for long-term capital appreciation and are willing to tolerate high risk. Since the fund invests mainly in mid-cap companies, it carries more risk compared to large-cap funds, but the potential for higher returns is also greater.
The fund is best suited for investors who plan to stay invested for at least 7-10 years, as this allows the investments to grow and ride out market fluctuations.
With its strong historical performance and a focused investment strategy, Nippon India Growth Fund remains a popular choice for those looking to build significant wealth over time. Whether through SIP or lump sum investment, this fund has proven its ability to deliver impressive returns.
