Nippon India Value Fund

Nippon India Value Fund has delivered strong SIP XIRR across horizons, with 17.64% over 3Y and 18.36% over 10Y, consistently beating the category average SIP XIRR (17.43% over 3Y, 16.65% over 10Y). Against the NIFTY50 VALUE 20 benchmark, the fund shows substantial alpha of 10.46% over 3Y and 7.49% over 7Y, with lump-sum CAGR of 16.49% versus the benchmark's 6.01% over 3Y. The 1Y XIRR of 21.30% also outpaces the category average of 17.71%, indicating recent momentum remains intact.

The fund exhibits a defensive risk profile, with downside capture consistently between 80.86% and 87.53% across horizons while upside capture remains near 88-99%, meaning it loses less in declines while participating reasonably in rallies. Beta declines from 0.99 at 1Y to 0.87 at 15Y, showing decreasing sensitivity to benchmark movements over longer periods. However, the fund has experienced 8 drawdown events exceeding 10%, and the maximum drawdown recovery took 233 days within a 790-day drawdown duration, indicating investors should be prepared for extended recovery periods.

The portfolio is heavily weighted toward financials, with Banks alone at 25.8% and Finance adding another 7.1%, and six of the top ten holdings are banks including HDFC Bank (7.52%), SBI (4.53%), and ICICI Bank (3.4%). With 80 total holdings, the fund is reasonably diversified at the stock level, with the top holding at just 7.52% of NAV. Sector concentration in Banks, Consumer Durables (8.1%), Power (6.6%), and IT (6.1%) reflects a classic value orientation toward large-cap, cyclical, and PSU-linked businesses.

The fund beats the category average SIP XIRR at every available horizon, with the widest gaps at longer durations — 18.36% versus 16.65% at 10Y and 17.88% versus 16.44% at 12Y. Calendar year returns show strong consistency in up-markets, with gains above 39% in 2014, 2017, 2021, and 2023, though down years like 2018 (-7.46%) and 2013 (-4.73%) were contained. This combination of long-term outperformance and controlled downside years suggests durable value-investing execution rather than a single lucky streak.

This fund suits investors with a long-term horizon of 7 years or more, as its edge over the benchmark and category widens meaningfully over longer periods and drawdown recoveries can take time. It is appropriate for investors with moderate risk tolerance who want value-style exposure with lower downside capture than the benchmark, but who can tolerate sector concentration in banking. It works well as a core or satellite holding within a diversified equity portfolio, ideally via SIP given the strong XIRR track record.

• Consistent alpha over the NIFTY50 VALUE 20 benchmark, including 10.46% over 3Y and 7.49% over 7Y, driven by superior downside capture (80-87%) rather than aggressive upside bets
• SIP XIRR beats the category average at every horizon from 1Y through 12Y, with the largest outperformance at longer durations (18.36% vs 16.65% at 10Y)
• Well-diversified 80-stock portfolio with a modest top holding of 7.52%, limiting single-stock risk

• Heavy sector concentration in Banks (25.8%) plus Finance (7.1%), meaning roughly one-third of the portfolio is exposed to financial sector cycles and asset quality risks
• Eight drawdown events exceeding 10% and a maximum drawdown duration of 790 days with a 233-day recovery, indicating investors may face prolonged underwater periods
• Recent calendar year returns have weakened, with 2025 at just 4.43% and 2026 year-to-date at -2.73%, suggesting the value cycle may currently be unfavorable