Nippon India Growth Mid Cap Fund has provided investors with excellent returns, delivering a 22.2% CAGR over 30 years. Had an investment of INR 1 lakh been made at the fund's inception, it would have grown to over INR 4 crore today. The fund's investments are diversified across various sectors, including financial, consumer, and industrial.
Nippon India Growth: Nippon India Growth Mid Cap Fund, launched in 1995, has been one of the top-performing mid-cap funds during its 30-year journey. The fund achieved a CAGR of 22.2%, transforming an initial investment of INR 1 lakh into over INR 4 crore today. The fund's focus spans multiple sectors, including financial, consumer, and industrial, providing investors with high long-term returns and risk diversification.
30 Years of Excellent Performance
Nippon India Growth Mid Cap Fund has earned a Compound Annual Growth Rate (CAGR) of 22.2% over its three-decade journey. If an investor had invested INR 1 lakh in this fund in 1995, their amount would have grown to over INR 4 crore today. This figure demonstrates the potential of mid-cap funds for long-term investment.
The Secret to Mid-Cap Funds' Success
Mid-cap funds, such as Edelweiss, Kotak, and Invesco, have consistently delivered returns between 17% and 19% over the past ten years. Nippon India Growth Mid Cap Fund falls into this same category. Its success is primarily attributed to robust investment methodologies and risk management processes. The fund invests in companies that offer above-average growth and possess the potential to generate sustainable returns over time.
Investment Sectors and Diversification
The largest investment of Nippon India Growth Mid Cap Fund is in the financial sector, accounting for approximately a quarter of the total allocation. Additionally, the fund has invested 17.47% in the consumer discretionary sector and 17.03% in the industrial sector. The fund's investments are also spread across sectors such as healthcare, technology, energy, and materials, ensuring diversification and reduced risk.
Long-Term Benefits
Growth-style mid-cap funds are considered ideal for the long term. These funds prioritize capital appreciation, allowing investors to witness a consistent increase in the value of their investments over time. Diversification helps reduce risk and stabilizes investments.
Financial experts believe that investing in mid-cap funds requires patience. Over time, these funds are capable of delivering superior returns to investors. Nippon India Growth Mid Cap Fund's strategy and risk management make it sustainable and reliable compared to other mid-cap funds.
