5 Reasons to Invest in Nippon Mutual Funds

Mutual fund investment is one of the better alternatives for growing your money in the long-term. For a start, the Indian universe of mutual funds gives a few compelling reasons why it could be worth considering the Nippon Mutual Funds by the investors. Here are the top 5 reasons why nippon mutual funds are worth investing in:

• Strong Parentage

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The strong parentage of Nippon Mutual Fund is probably one of the major strength that the company has. NAM India, which is a JV between Nippon life insurance, one of the largest life insurers in Japan, and Reliance Capital, manages Nippon mutual Funds. Nippon Mutual fund’s relationship with renowned international financial organization Nippon Life Insurance, is also an important source of credibility for it.

• Experienced Fund Management Team

The other important thing to remember when it comes to choosing Nippon Mutual Funds is their seasoned fund managers. The individuals controlling different schemes are well experienced in the financial market. This is a very long period for some of the senior fund managers who have over 15-20 years’ experience on company researching as well as market trend’s understanding. This assurance is reinforced by the extensive domain knowledge and experience of the fund managers who manage the schemes.

• Consistent Track Record

Any mutual fund firms have to show consistency to earn investors’ trust. The performance of these Nippon Mutual Funds has relatively been stable across these turbulent periods in the market. Their top equity plan like Nippon India Small Cap and Nippoe India Large Cap fund has been out performing its respective benchmark for last 5-10 years. The debt and hybrid plans recorded decent results when compared to other groups in their classes.

• Wide Range of Schemes

Nippon mutual fund has over forty schemes debt/hybrid and equity based that allow an investor to create a balanced portfolio. Some people go for big cap based funds while others consider focusing on small/medium industries. The hybrid funds which comprise of both equity and debt along with different types of debentures of various maturities. This offers investors a variety of options such as selecting strategies specific to their demands.

• Competitive Expense Ratios

However, in selecting a mutual fund, the TER is as paramount as performance or even more so depending on circumstances. For example their large cap and multi cap funds TER are 1 – 1.25% lower compared to most other popular funds. Cost control allows higher returns to be transferred to the investors. This implies that the reasonable expense ratio makes nippon schemes a desirable investment proposition.

Conclusion

5paisa Investors can count on  nippon india small cap fund owing to their proven credibility, which is attributed to a strong parentage, highly experienced management, consistent track record spanning through the various market cycles and competitive total expense ratios among other factors. The more than 40 schemes in their repertoire make it possible to construct an individualized portfolio as well. Buying into well-rated Japanese schemes could eventually accumulate into huge wealth using discipline mode in the long run.