Nippon India Banking Fund Direct-Growth
PB Recommended Equity Sectoral-Banking
PLAN: GROWTH TYPE : OPEN-ENDED OPTION: Growth
1 Yr return
3 Yrs CAGR returns
5 Yrs CAGR returns
NAV as on 27 Dec
₹ 307.14 by 5.01 ( 0.16%)
Fund Size (Cr)
Show NAV for:
If ₹5000 invested for 1
with % annual returns
* The calculator, based on assumed rate of returns, is meant for illustration purposes only.More
The calculations are not based on any judgments of the future return and should not be construed as promise on minimum returns. Information gathered and material used in this calculator is believed to be from reliable sources. Paisabazaar however does not warrant the accuracy, reasonableness and/or completeness of any such information. While utmost care has been exercised while preparing the calculator, Paisabazaar does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator.
The scheme aims to generate continuous returns by actively investing in equity, equity related or fixed income securities of banks. The proportion of investment between equity and debt will be decided based on the view of the fund manager on anticipated movement in both debt as well as equity markets.
Returns are taxed at 15%, if you redeem before one year. After 1 year, you are required to pay LTCG tax of 10% on returns of Rs 1 lakh+ in a financial year.
Nippon India Banking Fund Direct-GrowthEquity
ICICI Prudential Banking and Financial Services Direct Plan-GrowthEquity
Aditya Birla Sun Life Banking & Financial Services Fund Direct-GrowthEquity
UTI Banking and Financial Services Fund Direct Plan-GrowthEquity
SBI Banking & Financial Services Fund Direct-GrowthEquity
Tata Banking and Financial Services Fund Direct-GrowthEquity
Sundaram Financial Services Opportunities Fund Direct-GrowthEquity
Invesco India Financial Services Fund Direct-GrowthEquity
LIC MF Banking & Financial Services Fund Direct-GrowthEquity
Motilal Oswal Nifty Bank Index Fund Direct - GrowthEquity
|Top 10 Sectors||%|
|Top 10 Sectors||%|
|Fund House||Reliance Mutual Fund|
|Fund Manager||Shrey Loonker|
|Fund Setup Date||01 Jan 2013|
|Address||Reliance Centre, 7th Floor, South Wing Off Western Express Highway Santacruz (East)|
|Contact||(022) 33031000 / 1800 300 11111|
About Nippon India Banking Fund
Formerly known as Reliance Banking Fund, Nippon India Banking Fund has invested 95.64% of its assets in Indian stocks; out of which 54.51% is invested in large cap stocks, 21.31% in mid cap stocks and 7.21% in small cap. The primary investment objective of the scheme is to generate continuous returns by investing in equity and related securities of companies in the Banking sector and the ones engaged in allied activities related to the Banking sector.
The fund is well diversified across sub segments such as Private banks, Public sector units, NBFCs, etc, while attempting to generate superior alpha through active fund management. The fund thus tries to lower the risk involved through diversification while retaining the alpha creation potential.
Who Should Invest?
- Since this is a sectoral fund, it is advised that you have a complete knowledge of macro trends of the market before investing in the fund and you must be willing to take selective bets for higher returns
- Being a sectoral fund, the investors must realize that the fund is bound is bound to experience the highs and lows with the fluctuations in the market. Therefore, if you are planning to invest in this fund, you must be prepared for the possibility of moderate to high losses in the investments
- Alternatively, if you are a risk-averse investor, you may avoid investing in sectoral funds and rather look for large cap funds such as Axis Bluechip Fund, SBI Bluechip Fund, ICICI Prudential Bluechip Fund, etc.
- Even though the risk involved in the fund is moderately high, a major portion of the fund’s assets are invested in large cap stocks which provides stability to the fund. Therefore, it can be said that the fund is suitable for investors who do not wish to take too much risk with their investments
- The fund holds the potential to jump to exponentially high returns when the banking sector experiences a boom. Hence, only the investors with a long term investment horizon (at least 7 years) may consider investing in this fund
Taxation- How will they be Taxed?
The fund is eligible for a short term capital gains tax payment of 15% is redeemed within one year from the date of allotment. On the other hand, long term capital gains tax is to be paid at 10% if units worth more than Rs. 1 lakh are redeemed after one year. Additionally, a dividend distribution of 10% is also levied on dividends.
For an example –
If an investor has made a capital gain of ₹30000 on investment in an equity fund, Short Term Capital Gains Tax of 15% would be levied if s/he withdraws the amount within one year of investment. The payable tax would be ₹4500.
Also, if an investor has made a capital gain of ₹2.5 lakh on investment in an equity fund, and withdraws the amount after 1 year of investment, Long Term Capital Gains Tax of 10% would be levied on ₹1.5Lakh. ₹1Lakh is exempted from taxation. The payable tax would be ₹15000.
How to Invest in Nippon India Banking Fund?
- Sign Up/Sign in to Paisabazaar.com and go to ‘Direct Mutual Funds’
- Click on the section of ‘Equity Sectoral Funds’
- Type and search directly by the name of Nippon India Banking Fund Direct Growth. Once it opens up, look at the details. You can also compare similar funds as well as use SIP Calculator or Lumpsum Calculator to estimate the future value of your investment
- Click on ‘Invest Now’, select either Lump sum or SIP
- Trusted website, no commission charges and no paperwork. Only direct plans, no regular ones
- You can compare more than 1,700 Funds at one platform instead of visiting the website of each AMC and then searching for numerous funds
- Easy to browse as Funds are segregated under Equity, Debt, Large Cap, ELSS, etc. You can further add filters of ratings, returns, fund houses
- Important scheme details such as latest Net Asset Value (NAV), expense ratio, Assets Under Management (AUM), etc. are also available on the portal, making it easier for consumers to pick a suitable fund
Q. What are sectoral funds? Is this fund a sectoral fund?
A. Sectoral funds are funds that invest in a specific business that operates in a particular industry or sector of the economy. Yes, this fund is a sectoral fund; it invests only in Banking and related companies.
Q. Does this fund come under Section 80C or offer tax benefits?
A. No, this fund is not eligible for tax benefits under Section 80C of the Income Tax Act.
Q. What is Exit Load? Does this scheme have an Exit Load?
A. Exit Load is the fee charged from an investor when he decides to quit the scheme and redeem his money. Generally, there is some penalty charged only if funds are redeemed in less than 365 days, otherwise there are usually no charges. The fund has an Exit Load of 1% if redeemed within 365 days.
Q. What is Expense Ratio? Does this fund have an Expense Ratio?
A. It is the fee charged from the investor for managing his fund money and allocating it to the stocks that can help him earn returns. The fund has an Expense Ratio of 1.50%.
Q. What is the lock-in period of this fund?
A. The fund does not have a lock-in period.
Q. Who is the fund manager of this fund?
A. Mr. Vinay Sharma is the fund manager of Nippon India Banking Fund. He holds a professional degree in B.Arch and PGDCM. Prior to joining this fund, Mr. Sharma worked with ICICI Prudential AMC, Kotak Mahindra Mutual Fund, J.P. Morgan India Pvt. Ltd., UTI Bank. He has been managing this fund since April 2008.