Key Sectors Driving Growth in Nippon India Large Cap Fund
The Nippon India Large Cap Fund is a well-known mutual fund scheme in India, which invests in large-cap companies. The fund is well-established and has been delivering positive returns for investors. As of 24th August 2024, the fund has an asset size of Rs. 31,800.96 crore. In this blog, we will explore the key growth drivers in the Nippon India Large Cap Fund.
Key Sectors Driving Growth in Nippon India Large Cap Fund are:
Financial Services
Financial services are one of the largest contributors to the Indian economy and therefore form a crucial part of Nippon India Large Cap Fund. The sector includes many companies, such as banks, insurance companies, and asset management companies.
These companies are capitalizing on the increasing need for financial services in the country and the government’s initiatives to promote financial inclusion. The top holdings in this sector for Nippon India Large Cap Fund are Axis Bank, ICICI Bank, and HDFC Bank.
Energy
Energy is another important sector that plays a significant role in the Indian economy. In the fiscal year 2023-2024, India was the third largest energy consumer in the world and the energy demand in India is projected to increase significantly in the future.
Factors such as population growth, economic development, and increased urbanization are fuelling growth in energy demand which will be beneficial for large cap mutual funds. Nippon India Large Cap Fund’s top holdings include investments in stocks like Reliance Industries Ltd, TATA Industries Ltd, and NTPC Ltd.
Information Technology(IT)
Another significant sector that contributes to the Nippon India Large Cap Fund’s growth is the information technology (IT) sector. India is a global leader in Information Technology, and this sector has huge potential for growth in the future.
The Nippon India Large Cap Fund has invested in some of the leading IT firms like TCS, Infosys, and HCL Technologies. These companies are leveraging the advancement in digital technology spreading across the world in different industries.
Consumer Goods
The consumer goods sector forms an integral part of the Nippon India Large Cap Fund and it has also shown significant growth in recent years. The sector comprises firms that manufacture and trade in food and beverages, personal care products, and household goods.
The demand for consumer goods is expected to grow steadily in the coming years, due to an increase in disposable income among the middle-class population of India. In this sector, Nippon India Large Cap Fund has investments in companies like ITC Ltd., Hindustan Unilever Ltd., and Tata Consumer Products Ltd.
Healthcare
Healthcare is another major sector that has evolved as a strong growth driver for the Nippon India Large Cap Fund. The sector comprises companies that offer health services, manufacture drugs, and develop medical equipment.
The demand for healthcare services is expected to grow significantly in the coming years, due to aging and chronic diseases. Nippon India Large Cap Fund has invested in companies like Divi’s Laboratories Ltd., Dr. Reddy’s Laboratories Ltd., and Sun Pharmaceutical Industries.
However, apart from these five major sectors, Nippon India Large Cap Fund also invested in other sectors like capital goods, automobiles, metals mining, etc. The fund’s portfolio is well-diversified across different sectors and companies, which helps to reduce risk.
Conclusion
The Nippon India Large Cap Fund is a well-diversified fund that has investments in key sectors driving the growth of the Indian economy. Over the previous few years, Nippon India Large Cap Fund has surpassed its benchmark index, exhibiting a great track record of performance. Nippon India Large Cap Fund is a good option for investors seeking exposure to the development potential of the Indian economy.
