Nippon India Large Cap Fund vs Kotak Mahindra Large Cap Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
15.4%
3Y Return
12.82%
Today, we dekho hai (see) two popular large cap funds, Nippon India Large Cap Fund and Kotak Mahindra Large Cap Fund. Both funds have "Very High" riskometer, but their performance and characteristics are different. In this post, we'll compare their 1Y, 3Y, and 5Y returns, expense ratios, and other key metrics to help you decide which fund is better for long-term wealth creation.
| Parameter | ANippon India Large Cap Fund - Regular Plan - Growth | BKotak Mahindra Large Cap Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | Nippon India | Kotak Mahindra |
| Category | Large Cap | Large Cap |
| NAV (₹) | 42.22 | 635.60 |
| AUM (₹ Cr) | 5.17 Lac Cr | 3.81 Lac Cr |
| Expense Ratio (%) | 1.56% | 1.36% |
| Riskometer | Very High | Very High |
| Volatility | 12.27 | 11.32 |
| Sharpe Ratio | 0.73 | 0.56 |
| 1 Year Return (%) | -0.91% | -2.46% |
| 3 Year Return (%) | 15.4% | 12.82% |
| 5 Year Return (%) | 3.31% | 12.2% |
| Since Launch (%) | 12.7% | 13.87% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 29 November 2012 | 2 January 2013 |
| Exit Load | Nil | Nil |
| Fund Manager | Amber Singhania; Bhavik Dave; Kinjal Desai; Sailesh Raj Bhan (13.4 years yrs) | Harsha Upadhyaya (3.5 years yrs) |
| Benchmark | Nifty 50 | Nifty 50 |
| Top 3 Holdings | HDFC Bank Ltd. (9.24%), ICICI Bank Ltd. (7.99%), Reliance Industries Ltd. (4.3%) | HDFC Bank Ltd. (8.5%), ICICI Bank Ltd. (7.8%), Reliance Industries Ltd. (6.9%) |
| Asset Allocation | Equity: 96.43% | Equity: 96.00% | T-Bills: 4.00% |
| Portfolio Turnover | 70% | 16% |
🤖 AI Verdict – Which is Better?
Based on the data, Fund A (Nippon India Large Cap Fund) is the clear winner for long-term wealth creation. Its 3Y return is 15.4%, while Fund B's (Kotak Mahindra Large Cap Fund) 3Y return is 12.82%. Also, Fund A has a lower expense ratio of 1.56% compared to Fund B's 1.36%. Therefore, Fund A is a better choice for long-term wealth creation.
Why consider Nippon India Large Cap Fund?
- Expense ratio: 1.56%
- 3Y return: 15.4%
- AUM: 5.17 Lac Cr
- Sharpe Ratio: 0.73
Why consider Kotak Mahindra Large Cap Fund?
- Expense ratio: 1.36%
- 3Y return: 12.82%
- AUM: 3.81 Lac Cr
- Sharpe Ratio: 0.56
📈 SIP Suitability
For a monthly SIP of 10+ years, Fund A is more suitable due to its consistency and return stability. Although both funds have high returns, Fund A's 3Y return is higher, and its volatility (12.27) is relatively higher compared to Fund B (11.32). This means Fund A may have more ups and downs, but also potentially higher returns over the long term.
⚠️ Risk & Cost Analysis
Comparing riskometer, volatility, Sharpe ratio, and expense ratio, Fund A is more risk-prone due to its higher volatility (12.27) and lower Sharpe ratio (0.73). However, it offers better risk-adjusted returns due to its higher 3Y return (15.4%). Fund B has a lower expense ratio (1.36%) compared to Fund A (1.56%), making it a more cost-effective option.
📊 Portfolio Diversification
Both funds have a similar asset allocation of 96% equity, but Fund A's top holdings concentration is higher, with HDFC Bank Ltd. (9.24%) and ICICI Bank Ltd. (7.99%) holding significant positions. Fund B is more diversified, with HDFC Bank Ltd. (8.5%) and ICICI Bank Ltd. (7.8%) holding significant positions, but with a lower concentration of Reliance Industries Ltd. (6.9%). This makes Fund B a more diversified option.
SIP Calculator – Compare Growth Potential
Nippon India Large Cap Fund
₹1428138.45
@15.4% annual return (3Y)
Kotak Mahindra Large Cap Fund
₹1220113.26
@12.8% annual return (3Y)
*Projected returns are illustrative based on historical 3‑year returns. Past performance does not guarantee future returns.
❓ Frequently Asked Questions (Comparison)
Q1: Which fund gives better returns in the long run?
Based on 5Y returns, Fund A (Nippon India Large Cap Fund) gives better returns with 3.31% compared to Fund B (Kotak Mahindra Large Cap Fund) with 12.2%. However, Fund B's 3Y return is higher, at 12.82%. So, the answer depends on the time horizon.
Q2: Is the higher risk fund worth it?
No, the higher risk fund (Fund A) is not necessarily worth it. Although it offers better returns, its higher volatility (12.27) and lower Sharpe ratio (0.73) indicate higher risk. Fund B is a more stable option with lower volatility (11.32) and a higher Sharpe ratio (0.56).
Q3: Which fund is more cost-effective?
Fund B (Kotak Mahindra Large Cap Fund) is more cost-effective with an expense ratio of 1.36% compared to Fund A (Nippon India Large Cap Fund) with 1.56%. This means Fund B is cheaper to invest in over the long term.
Mahendra Maurya
6+ Years in Banking, Wealth Management & Financial ServicesFounder & Author of ShareTargetPrice.in. 6+ years in Banking, Wealth Management & Financial Services.
📊 Author & Founder at Share Target Price