facebook

Nippon High Conviction Equity Systematic Rebalancing Option

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Not under coverage: This scheme is currently not under our coverage universe.

IME Strategy Rating

Concentrated Flexi-Cap Approach: The Strategy aim to invest in concentrated portfolio (20-25 stocks) accross market cap in high growth businesses that are existing leaders in their field of operations. The strategy prioritizes high-quality businesses that are corporate leaders (in their respective industry), leveraging their competitive advantages for a robust capital preservation stance and the potential for capital appreciation.

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 High Conviction Equity Systematic Rebalancing Option

Type: Large Cap | Flexible | AUM (117 cr) | Inc Date (08 Jul 2019)

Nippon India High Conviction-Investment Strategy

Focus on top investment ideas by building a concentrated portfolio

Nippon India’s High Conviction Portfolio is a market-cap agnostic (or multi-cap) strategy that aims to build a concentrated portfolio (20-25 stocks) of their top investment ideas.

Investment Philosophy 

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.
  • Earnings track record: consistent performance across business cycles on revenue, EBITDA, PAT growth and profitability ratios.
  • Promoter ownership: having equity dilution, share pledge
  • Capital allocation: unrelated diversification, leverage

Investment Process

High conviction Portfolio is chosen by going through a Qualitative and Quantitative screening. 

The Qualitative screening is based on Indian Corporate Leaders which is identified by-

  • Brand 
  • Innovation
  • Technology 
  • Size 
  • Niche 
  • Cost 

Selection of either top 5 in India or top 10 in world within there area of operations. 

The Quantitative screening is applied on the universe by filtering the criteria of:

  • Earnings Growth>  15%
  • ROE>15%

Trailing Performance

1yr 3yr 5yr Since Inception
Nippon High Conviction Equity Systematic Rebalancing Option 42 18 20.8 19.7
S&P BSE 500 TRI 41.1 18.4 22.4 21
Alpha over Broad Mkt BM 0.9 -0.4 -1.6 -1.3
Nifty 500 40.2 17.2 21
Alpha over Category BM 1.8 0.8 -0.2

Performance as of: 30-Sep-24 | Inception Date: 08-Jul-19

Fund Managers

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures
Exit Fees1yr(2%)

AMC

AMC: Nippon India PMS (click link for detailed AMC review)

Not a top recommendation due to being an MF-driven PMS: Nippon India AMC PMS suffers from the common ailments of large MF-driven PMS houses (PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies). While the distribution strengths of the AMC can help the PMS scale and there are benefits of research access, most MF driven PMS's cannot compare to strong CIO-cum-founder driven PMS houses.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

3 of 5 stars

Team Pedigree

2 of 5 stars

Inv Philosophy

2 of 5 stars

Performance

3 of 5 stars

Free 30-Day Trial of the IME RMS

Details shared above, are only a short-snapshot of the more detailed analysis that resides in IME’s Proprietary RMS (Research Management Solution).

The IME RMS is the first tool ever, to give investors direct access to the insights of the central research team. Investors gain direct access to our ratings, rating rationales & analysis across thousands of funds (MFs, PMSs, AIFs, Global funds), asset classes, categories & more.

 Learn More

IME RMS Demo

Register 30-Day Trial

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.

CONNECT WITH US

Use our Live Chat
Book 15-min Introductory Call
WhatsApp us @ +91 96320 07774

IME Capital Pvt. Ltd. is a research-first investments firm. We aim to disrupt the wealth management industry, by shrinking the gap in investment insights between central research teams & RMs/Clients. 

Products
Solutions
Disclaimer MF/PMS/AIF/Direct Equities are all subject to market risks. Please read the scheme information and other related documents carefully prior to investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Market & other data on this site has been sourced from what are considered to be reliable sources. All views shared (product ratings, views on individual securities etc.) are the proprietary property of IME Capital and cannot be used in any form without explicit written consent. IME Capital Pvt. Ltd. makes no warranties or representations, express or implied, on products offered through the platform (and that of our partners) or on the correctness of data & views shared. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Detailed Disclaimer © 2021 All rights reserved | ARN No: ARN-182445