Scheme Rating
IME Scheme Rating
The Scheme does not meet our selection criteria at this time
Not a Recommended Fund: Varun Goel, former fund manager of the fund recently left (Mar-24) the AMC making past performance irrelevant to current assessment. Churn of senior investment team is a key risk that PMS houses carry where the fund manager does not have stake in the company.
IME Strategy Rating
Diversified Flexi-cap Strategy: The strategy aims to generate outsize returns over 3 -5 years, through a portfolio which may predominantly invests in large cap stocks and selectively in quality mid cap, small cap and micro-cap stocks.
PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).
IME View on Nippon Absolute Freedom
Nippon India Absolute Freedom- Investment Strategy
Benchmark agnostic concentrated portfolio of high quality businesses
Nippon India Absolute Freedom strategy is a large-cap focused strategy, that allows for some selective inclusion of quality mid, small and micro-cap stocks. The portfolio follows the Nippon India PMS investment philosophy of a benchmark agnostic concentrated portfolio of high-quality stocks that meet their Must 5 framework.
- Business Potential: Looking for businesses with growth opportunity & sustainable competitive advantage.
- Corporate Governance: Businesses having a fair treatment for minority shareholder, promoter track record, accounting red flags.
- Promoter ownership: having equity dilution, share pledge
- Capital allocation: unrelated diversification, leverage
- Earnings track record: consistent performance across business cycles on revenue, EBITDA, PAT growth and profitability ratios.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Nippon Absolute Freedom | 40.5 | 19.6 | 20.7 | 15.5 |
| S&P BSE 500 TRI | 41.1 | 18.9 | 22.9 | 16.5 |
| Alpha over Broad Mkt BM | -0.6 | 0.7 | -2.2 | -1 |
| Nifty 500 | 40.2 | 17.7 | 21.5 | |
| Alpha over Category BM | 0.3 | 1.9 | -0.8 |
Performance as of: 31-Aug-24 | Inception Date: 01-Apr-04
Fund Managers
Fee Structure
| Fee Structure | Fee |
|---|---|
| Fixed Fee Structure | 2.5 |
| Variable Fee Structures | |
| Exit Fees | 1yr(2%) |
AMC
AMC: (click link for detailed AMC review)
Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.