Nippon India Power & Infra Fund

Review Date: 25-03-2025

Beginning of Analysis

The Nippon India Power & Infra Fund has shown a very good past performence in Energy Fund category. The Nippon India Power & Infra Fund has a Jensen Alpha of 16.17% which is higher than the category average of 6.14%. Here the Nippon India Power & Infra Fund has shown very good performance in terms of risk adjusted returns. The Nippon India Power & Infra Fund has a Sharpe Ratio of 0.96 which is higher than the category average of 0.46. Here the Nippon India Power & Infra Fund has shown very good performance in terms of risk adjusted returns.
The past performance of the Nippon India Power & Infra Fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds.
Energy Mutual Funds are ideal for aggressive investors seeking high returns by investing in the energy sector. These funds offer targeted exposure to oil and gas, renewable energy, power generation, and utilities, allowing investors to capitalize on the growth potential of this critical sector. However, they carry higher risks due to their concentrated exposure and are heavily dependent on global commodity prices, government policies, and economic conditions. Investors should have a long-term investment horizon, a high risk tolerance, and a good understanding of the energy sector before investing in these funds. Additionally, monitoring global energy trends and regulatory changes is crucial for success.

Nippon India Power & Infra Fund Return Analysis

The fund has given a return of 7.82%, -8.59 and -16.17 in last one, three and six months respectively. In the same period the category average return was 8.53%, -5.01% and -14.12% respectively. The fund has given a return of 5.87% in one year, 30.14% in three years, 40.58% in five years and 16.55% in ten years. In the same period the Retirement Fund category average return was 5.31%, 22.2%, 37.06% and 16.55% respectively. The fund has shown very good performance in last five years in Retirement Fund.

The fund has given a SIP return of -11.6% in last one year. In the same period the category average SIP return was -8.18%. The fund has SIP return of 27.16% in last three years whereas category average SIP return is 22.66%. The category average SIP return is 25.68% and the fund has given a SIP return of 30.37% in last five years.

The benchmark Nifty Commodities Total Return Index has given a return of 4.3%, 13.33% and 33.96% in last one, three and five years respectively.

Nippon India Power & Infra Fund Risk Analysis

The fund has a standard deviation of 18.36 and semi deviation of 13.89. The category average standard deviation is 17.96 and semi deviation is 13.33. The fund has a Value at Risk (VaR) of -23.98 and a maximum drawdown of -25.36. The category average VaR is -27.18 and the maximum drawdown is -22.12. The fund has a beta of 0.79 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.