Nippon India Mutual Fund : CPSE ETF of Nippon India Mutual Fund can be an attractive option for those investing in equity through mutual funds. This scheme has increased investors’ money by more than four times in 5 years. If someone had invested Rs 1 lakh in CPSE ETF 5 years ago, his fund value would have been Rs 3.79 lakh now. That is, not only this, those who invest money in this fund every month like SIP have also got an annualized average annual return of about 40%. The portfolio of this fund mainly includes shares of government companies. If you find this fund attractive, then first check all the details about its performance, returns, and portfolio.
Important points about CPSE ETF
Exchange Traded Fund of Nippon India Mutual Fund launched on March 28, 2014 CPSE ETF Mainly invests in domestic equity market. According to the latest data, 69% of the portfolio of this scheme is of large cap stocks, 26.37% is of mid cap stocks, and 2.51% is of small cap stocks. A total of 11 shares are currently included in this fund.
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Return on lump sum investment in 5 years
If an investor had invested Rs 1 lakh in CPSE ETF 5 years ago i.e. on January 24, 2020, then today its value would have been Rs 3.79 lakh. According to this, the duration of this scheme is 5 years. Absolute Return: 279.15% and annualized return Is 30.51%. Whereas the average of this category is 15.60%. That means, the return of this scheme in 5 years is almost twice as compared to the average of its category.
- Lump sum investment 5 years ago: Rs 1 lakh (24 January 2020)
- Current Fund Value: Rs 3,79,148
- Absolute Return: 279.15%
- Annualized Return: 30.51% (Category Average: 15.60%)
Lump sum returns since inception
If someone had invested Rs 1 lakh in this fund at the time of its launch i.e. on March 28, 2014, then in about 11 years this amount would have increased to Rs 4.78 lakh, i.e. more than five and a quarter times. Accordingly, the benefit of this scheme on lump sum investment from its launch till now has been Absolute Return 378.45% and annualized return Has been 15.54%.
- Lump sum investment at the time of inception of the scheme: Rs 1 lakh (28 March 2014)
- Current Fund Value: Rs 4,78,450
- Absolute Return: 378.45%
- Annualized Return: 15.54%
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SIP returns in 5 years
If someone had started investing Rs 10,000 every month in CPSE ETF 5 years ago like SIP, then in 5 years his fund value would have been around Rs 15.81 lakh. Whereas during this period he would have invested a total of only Rs 6 lakh. According to this, the fund Absolute Return: 163.64% and annualized returns Will be 39.9%.
- Monthly Investment (SIP): Rs 10 thousand
- Total investment in 5 years: Rs 6 lakh
- Current Fund Value: Rs 15,81,824
- Absolute Return: 163.64%
- Annualized Return: 39.9%
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SIP returns since launch
If someone has invested Rs 10,000 every month in this scheme from the time of its launch i.e. from March 28, 2014 till now, then the details of the returns he will get will be something like this:
- Monthly Investment (SIP): Rs 10 thousand
- Total investment since inception: Rs 13 lakh (28 March 2014)
- Current Fund Value: Rs 39,50,071
- Absolute Return: 203.85%
- Annualized Return: 19.32%
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CPSE ETF Portfolio
CPSE ETF mainly invests in shares of government companies, which gives it strength. The top 10 stocks in the scheme’s portfolio and their portfolio share are as follows:
Top 10 Stocks
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NTPC: 19.99%
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power grid : 19.97%
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BEL : 16.92%
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ONGC: 14.98%
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Coal India (CIL): 14.06%
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NHPC: 4.11%
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Oil India : 3.79%
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Cochin Shipyard : 2.10%
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nbcc: 1.55%
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NLC India: 1.31%
Fund’s investment strategy
Since CPSE ETF focuses on shares of government companies, its performance remains relatively stable even in turbulent markets. 69% of the fund is in large cap companies, which are considered safe in the long term. Investments in energy sector companies like NTPC, Power Grid, and Coal India strengthen this fund. Being an ETF, the expense ratio of this scheme is only 0.07%, while the category average of expense ratio is 0.52%. Due to low expenses, the net return in this fund is good.
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For whom is this fund suitable?
Nippon India Mutual Fund’s CPSE ETF can be a good option for investors who want to benefit from the performance of government companies over the long term. But before investing, please understand that because of investing entirely in equity, it has been kept in the Very High Risk category. Therefore, before deciding on investment, keep in mind your financial goals and risk appetite. It is always better to invest in equity for the long term.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. The past returns of a mutual fund do not guarantee that it will continue in the future. Decisions related to investment should be taken only after consulting a SEBI approved investment advisor.)
