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Nippon High Conviction Equity Systematic Rebalancing Option

Scheme Rating

IME Scheme Rating

3 of 5 stars

Can be considered for Investing: We prefer other Flexi-cap strategies, with more defined investment philosophies & consistency of performance.

IME Strategy Rating

3 of 5 stars

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 (116.9 cr) | Inc Date (8 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 48.6 20.3 19.2 18.6
S&P BSE 500 TRI 39.5 19.5 19 18.9
Alpha over Broad Mkt BM 9.1 0.8 0.2 -0.3
Nifty 50 TRI 28.5 16.2 16.7
Alpha over Category BM 20.1 4.1 2.5

Performance as of: 28-Feb-23 | Inception Date: 08-Jul-19

Fund Managers

Varun Goel | 3-star rated FM

Fund Manager | 17 yrs Experience | 7 yrs at current firm

Past Experience: Motilal PMS (FM), Karvy PMS (Head), KC PMS (FM), Kotak PMS (AVP)

Varun’s experience has been exclusively in managing PMS portfolios, having been a fund manager/analyst at Motilal PMS, Karvy PMS, KC PMS and Kotak PMS. He joined Reliance PMS in Feb-2017.

Fee Structure

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

AMC

AMC: (click link for detailed AMC review)

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