Summary
Nippon India offers a wide range of mutual fund schemes across equity, debt, hybrid, gold, silver, and index categories, helping investors invest according to their requirements and risk tolerance.
There have been some good-performing funds from Nippon India, such as the Nippon India Silver ETF with 3 year CAGR of 49.29%, While, Nippon India Small cap Fund with 5 Year CAGR of 21.06% , but good historical performance is no guarantee of future performance.
There are certain parameters to consider when investing in any mutual fund scheme, including risk, return, expense ratio, AUM, benchmark, portfolio, and investment period.
Nippon India Mutual Fund offers several mutual fund schemes to meet the needs of different investor categories. Some of the popular ones include Nippon India Small Cap Fund, Nippon India Growth Fund, Nippon India Large Cap Fund, Nippon India Multi Cap Fund, and Nippon India Value Fund.
Investors must check the past performance of the funds, such as their 3-year and 5-year returns, expense ratios, portfolio holdings, risk profiles, benchmark performance, and the fund manager’s experience. Read the complete guide to explore the best Nippon India mutual funds in India for 2026, compare their performance, and find the fund that will suit your investment needs.
Best 10 Nippon India Mutual Funds: Quick Comparison
The following table provides a quick comparison of the selected Nippon India mutual funds ranked based on AUM as of 22nd August, 2026
| Fund Name | 3 Yr CAGR | 5 Yr CAGR | Benchmark 5 Yr return | AUM | Expense ratio | Minimum SIP | Risk |
| Nippon India small Cap dir | 17.74% | 21.06% | 16.62% | ₹78,957 | 0.51% | ₹100 | Very High |
| Nippon India ETF Nifty 50 Bees | 8.93% | 9.30% | 10.70% | ₹66,777 | 0.03% | – | Very High |
| Nippon India Multi Cap Dir | 15.38% | 19.47% | 12.25% | ₹55,587 | 0.58% | ₹100 | Very High |
| Nippon India Large Cap Dir | 13.05% | 15.36% | 10.70% | ₹54,225 | 0.57% | ₹100 | Very High |
| Nippon India ETF Gold Bees | 38.26% | 26.20% | – | ₹53,341 | 0.69% | – | High |
| Nippon India Growth Mid Cap Dir | 21.50% | 20.45% | 17.76% | ₹50,751 | 0.58% | ₹100 | Very High |
| Nippon India Liquid Dir | 6.99% | 6.32% | – | ₹41,346 | 0.17% | ₹100 | Moderate |
| Nippon India Silver ETF | 49.29% | – | – | ₹29,499 | 0.49% | – | Very High |
| Nippon India ETF BSE Sensex | 7.12% | 8.24% | 10.70% | ₹28,430 | 0.03% | – | Very High |
| Nippon India Money Market Dir | 7.41% | 6.70% | – | ₹23,227 | 0.19% | ₹100 | Moderate |
Top 10 Nippon India Mutual Funds in India
The following Nippon India mutual funds analysis covers performance, costs, risk, benchmark and portfolio concentration.
1. Nippon India Small Cap Fund Direct
The primary emphasis of the Nippon India Small Cap Fund Direct is on small-cap stocks, which have the potential to deliver strong long-term growth. Small-cap stocks are considered to be at an earlier stage in their business lifecycle than large-cap stocks. The 3-year and 5-year CAGR returns of the fund stand at 17.74% and 21.06%, respectively. In addition, its 5-year benchmark return stands at 16.62%.
It has an AUM of ₹78,957 crore and is among the larger funds on the list. The expense ratio of the fund is 0.51%, while its minimum SIP amount is ₹100. Very High is the risk level of this fund, and this is important for investors to note.
- Strengths: Consistently good returns over time, massive assets under management, and extremely low minimum investment make it a great choice for investors. This scheme has consistently outperformed the benchmark over the past five years.
- Drawbacks: The scheme falls under the category of a Very High-risk fund since the stock prices of small companies can be highly volatile.
2. Nippon India ETF Nifty 50 BeES
Nippon India ETF Nifty 50 BeES aims to provide exposure to the Nifty 50, which comprises some of the largest publicly listed companies in India. While actively managed funds have fund managers who select stocks to buy, ETFs usually track their index.
Nippon India ETF Nifty 50 BeES tracks the Nifty 50 index and invests in India’s top large-cap companies. Its 3-year CAGR was 8.93%, while the 5-year CAGR was 9.30%, and the benchmark 5-year return was 10.70%. Its AUM stands at ₹66,777 crore, and its expense ratio is as low as 0.03%.
- Strengths: The very low expense ratio of this scheme is one of its main strengths. It allows broad diversification into top Indian companies with a single investment.
- Drawbacks: Its 5-year return was below the benchmark. Furthermore, it is categorised as a Very High risk scheme.
3. Nippon India Multi Cap Fund Direct
Nippon India Multi Cap Fund Direct invests across different market capitalisation segments, including large-cap, mid-cap, and small-cap stocks. Diversifying funds enables them to benefit from the growth of small companies.
Nippon India Multi Cap Fund Direct invests across market capitalisation segments, including large-cap, mid-cap, and small-cap companies. The 3-year CAGR of the fund was 15.38%, and the 5-year CAGR was 19.47%, while the benchmark returned 12.25%. The AUM of this fund is ₹55,587 crore with a 0.58% expense ratio and minimum SIP of ₹100.
- Strengths: Its strong 5-year performance and diversification across market capitalisations are some of its strengths. It has also outperformed its benchmark.
- Drawbacks: The Very High risk rating implies there will be some volatility for investors. The fund’s expense ratio is also high.
4. Nippon India Large Cap Fund Direct
The Nippon India Large Cap Fund Direct scheme is oriented towards mature large-cap stocks. Mature large caps are usually mature businesses and may have better market positioning compared to small companies. This fund can be invested in by investors who wish to invest in equities, but prefer companies that are generally more mature than mid-cap and small-cap firms.
The Nippon India Large Cap Fund Direct scheme invests in mature large-cap firms. The 3-year CAGR is 13.05%, and the 5-year CAGR is 15.36%, compared to the benchmark’s 10.70%. The fund’s AUM stands at ₹54,225 crore, the expense ratio is 0.57%, and the minimum SIP investment is ₹100.
- Strengths: Mature firm investment, combined with strong five-year performance, makes the scheme a good choice for long-term equity exposure. It also outperforms the benchmark in the five-year period.
- Drawbacks: Though investing in large-cap firms, the fund is Very High Risk. Investors must be ready for market fluctuations. The 0.57% expense ratio is worth keeping in mind.
5. Nippon India ETF Gold BeES
The Nippon India ETF Gold BeES exposes the investor to gold. This makes it unique among the other fund choices listed because it is not equity-based, unlike the others.
Nippon India ETF Gold BeES exposes investors to gold rather than equities. It had a 3-year CAGR of 38.26% and a 5-year CAGR of 26.20%. Its AUM stands at ₹53,341 crores, while its expense ratio is 0.69%; its risk profile is High.
- Strengths: Its high returns in both the current year and the last five years make it a good choice. Gold exposure provides an alternative investment class.
- Drawbacks: The expense ratio of 0.69% is quite high compared with some index-based equity ETFs. The gold price fluctuates widely, and no 5-year benchmark is provided.
6. Nippon India Growth Mid Cap Fund Direct
Nippon India Growth Mid Cap Fund Direct invests in mid-cap companies. Mid-cap companies are usually positioned between large-cap and small-cap companies in terms of size. Investing in a mid-cap fund may allow investors to benefit from the growth of firms that have already matured and may have plenty of room for further development.
Nippon India Growth Mid Cap Fund Direct targets mid-cap companies with substantial growth potential. This fund showed a 21.50% CAGR over the last three years and a 20.45% CAGR over the last five years, compared with its benchmark’s 17.76%. The fund’s AUM is ₹50,751 crore, it charges 0.58% in expenses and allows a minimum SIP amount of ₹100.
- Strengths: This fund provided solid returns over both three and five years and beat its benchmark during five years. In addition, a minimum SIP of ₹100 makes regular investments easier.
- Drawbacks: Investing in mid-caps is riskier than investing in large caps. The fund has a Very High risk rating, which means that it is not a good option for conservative investors.
7. Nippon India Liquid Fund Direct
The Nippon India Liquid Fund Direct is categorised as having a relatively lower risk profile as compared with the other equity funds. This is because its structure consists of money-market and debt investments and not equity holdings.
Nippon India Liquid Fund Direct is meant for investors in search of a relatively lower-risk profile compared with equity funds. In this case, the fund has recorded a 3-year CAGR of 6.99% and a 5-year CAGR of 6.32%. The fund has an AUM of ₹41,346 crore, an expense ratio of 0.17%, and a minimum SIP of ₹100. According to the table, this fund’s risk profile is Moderate.
- Strengths: The fact that it is relatively low-risk compared with equity funds and has a relatively low expense ratio are among the fund’s strengths. In addition, it may be used by investors seeking to park their money for a shorter period.
- Drawbacks: The potential returns are much lower than equity-oriented funds.
8. Nippon India Silver ETF
The Nippon India Silver ETF allows investors to gain exposure to silver, another precious metal. As silver prices have different drivers from equities, they serve as yet another diversification strategy. However, metal prices tend to fluctuate sharply due to both industrial and investment demand.
The Nippon India Silver ETF gives investors access to silver as an asset class. The fund’s 3-year CAGR is 49.29%. Its AUM is ₹29,499 crore, and its expense ratio is 0.49%. The table does not show the 5-year CAGR or benchmark return; the risk level is Very High.
- Strengths: The fund allows investors to gain exposure to silver without buying the metal itself. Additionally, the fund has performed relatively well, as evidenced by its three-year return.
- Drawbacks: Silver prices can be highly volatile; thus, this fund may not be suitable for investors seeking consistent returns. There is also limited performance information in the table, as it does not provide a 5-year CAGR or a benchmark return.
9. Nippon India ETF BSE Sensex
The Nippon India ETF BSE Sensex provides exposure to firms listed under the BSE Sensex. This is an example of a broad-based index that provides investors with exposure to established firms through a single investment. As this is an ETF, the investor does not have to depend on active stock picking for every investment.
The Nippon India ETF BSE Sensex provides exposure to the BSE Sensex and to the top Indian firms. It had a 3-year CAGR of 7.12% and a 5-year CAGR of 8.24%, compared with the benchmark’s 10.70%. The AUM of the Nippon India ETF BSE Sensex is ₹28,430 crore, and the expense ratio is 0.03%.
- Strengths: The extremely low expense ratio is the biggest strength. The fund also provides diversified exposure to top firms through passive investing strategies.
- Drawbacks: The fund’s five-year return was below the benchmark. This fund is also Very High risk because its value depends on the performance of equity markets.
10. Nippon India Money Market Fund Direct
Nippon India Money Market Fund Direct invests in money market securities and belongs to a distinct class of mutual funds from those investing in equities and precious metals. Such mutual funds are usually chosen by investors seeking exposure to short-term debt and money market securities, rather than the greater risk of equity investments.
Nippon India Money Market Fund Direct invests in money market securities and is ideal for investors seeking relatively safe returns with lower risk than equity funds. It provided a 3-year CAGR of 7.41% and a 5-year CAGR of 6.70%. Its AUM is ₹23,227 crore with an expense ratio of 0.19% and a SIP of ₹100.
- Strengths: It has a relatively Moderate level of risk and is less volatile compared to equity-oriented funds. A low expense ratio and a SIP facility are other strengths.
- Drawbacks: Its long-term earning potential is relatively low compared to equity funds. Hence, investors seeking high capital gains may need to explore other risk categories.
How did we select these Nippon India Funds?
Selecting appropriate mutual funds from the Nippon India category requires much more than assessing performance. We have considered performance, risk, expense, fund structure, portfolio composition, and track record to make a fair comparison of the choices available to investors.
- Past Performances of the Funds: The past performances of the funds were studied over various periods, such as 3-year and 5-year periods.
- Consistency of Returns: Consistency of fund performance across various market cycles was also a criterion we placed greater importance on.
- Level of Risk: The level of risk associated with each fund and the suitability of the funds for different types of investors were other criteria.
- Expense Ratio: A reasonable expense ratio was another criterion we used to analyse the funds.
- Portfolio Quality: We also analysed portfolio quality and diversification.
- Benchmark Performance: Comparative benchmark performance of funds was also one criterion that we used.
- Fund Size and Track Record: The assets managed by each fund and its track record were also considered.
Nippon India Funds Vs Other Fund Categories
Nippon India mutual funds cover several investment categories, each with different risk levels, return potential, and investment objectives.
| Fund category | Investment Focus | Risk Level | Diversification |
| Nippon India Equity mutual funds | Stocks across different market segments | High | High |
| Large cap funds | Mainly in large, established companies | High | Moderate to High |
| Mid Cap Funds | Mainly in medium-sized companies | Very High | High |
| Small Cap Funds | Mainly in smaller companies with high growth potential | Very High | High to Very High |
| Flexi Cap Funds | Across large-cap, mid-cap, and small-cap companies | High to Very High | High |
Benefits and Risks of Nippon India Mutual Funds
Nippon India mutual funds offer multiple schemes designed for different investment goals and risk levels. Investors should understand the key benefits and risks before choosing a fund.
Benefits:
- Wide Range of Mutual Funds: Nippon India offers equity, debt, hybrid, index, and other mutual funds. It allows investors to invest in mutual funds based on their financial goals.
- Professionals Manage the Funds: Professionals manage the funds after conducting research on various markets, stocks, and the economy.
- Diversification of the Investment: The investments in the mutual funds are diversified over different securities, industries, and companies. Thus, it helps reduce the adverse impact of any poor performance of any individual investment.
- Investment in Mutual Fund through SIP Scheme: Investors can invest in the scheme through a systematic investment plan (SIP). It develops the habit of disciplined investing in investors.
- Potential for Wealth Creation: Nippon India’s equity-based schemes can help create wealth over longer investment periods. However, the return depends on market performance.
- Flexibility in Choosing Mutual Funds: Investors can invest in mutual funds according to their risk tolerance and financial goals.
Risks:
- Market Risk: Equity mutual funds are exposed to stock market movements. The value of the assets invested may decrease in periods of market declines.
- Small Cap Risk: Small-cap mutual funds are typically invested in smaller companies and thus tend to fluctuate more than large-cap mutual funds.
- Interest Rate Risk: Debt mutual funds are exposed to risk from changes in interest rates. An increase in interest rates may negatively impact bond prices.
- Credit Risk: Debt mutual funds may invest in corporate securities. There is a risk that the issuing company may delay or default on payments.
- No Guarantee of Returns: Mutual funds do not have guaranteed returns. The return from mutual funds depends on the performance of the securities in which they invest.
- Performance Risk: Past performance of the mutual funds is no guarantee of future performance.
Who should consider and avoid Nippon India mutual funds?
The Nippon India mutual funds are suitable for those investors who intend to invest professionally and are ready to receive market-linked returns. However, the Nippon India mutual funds may not be suitable for some investors. The choice of suitable funds should be based on the specific financial goals, investment horizon, and risk tolerance of the investors.
- For long-term financial goals, Nippon India mutual funds are suitable for investors who plan to hold their investments for 5 years or longer.
- Investors who intend to diversify their portfolios can choose from various Nippon India mutual funds, including equity, debt, hybrid, and index-oriented funds.
- Additionally, SIPs are suitable for investors who intend to invest regularly rather than once-off. Fluctuations in the market are bearable for investors who understand market dynamics and can remain patient during them.
However, market-linked mutual funds are unsuitable for those investors who need guaranteed returns. A short investment period makes equity funds unsuitable for investors who require fixed returns amid market fluctuations.
How to choose a Nippon India mutual fund?
Choosing the right Nippon India mutual fund depends on your financial goals, investment horizon, and risk tolerance.
- Identify the Financial Objective: Select mutual funds depending on whether you have invested for the purpose of earning money or for the purpose of retirement or any other financial objective.
- Risk Tolerance: Understand the level of market fluctuation that you can afford. Stocks and Small Cap Funds are riskier than debt funds.
- Investment Horizon: Identify the mutual funds that align with your investment horizon. It is essential that you select the mutual fund depending on your investment horizon.
- Assess the Performance: Evaluate the performance of the mutual funds over a 3-year or 5-year period. Remember that past performance does not necessarily mean future performance.
SIP Vs Lump sum for Nippon India funds
Both SIP and Lump-sum investing can be used to invest in Nippon India mutual funds. The right approach depends on your income, available funds, and risk tolerance.
| Factor | SIP | LumpSum |
| Investment Method | Invests a fixed amount regularly, usually every month | Invests a large amount at one time |
| Best For | Investors with regular income | Investors with a sizeable amount available to invest |
| Risk Management | Regular investments can spread the purchase costs over time | Entire amount is exposed to market conditions at once |
| Investment amount | Can start with smaller regular amounts | Requires a large amount |
| Return potential | Depends on fund performance and duration of SIP | Depends on fund performance and the timing of investment |
| Ideal for | Salaried individuals and investors building wealth gradually | Investors who already have a substantial investable surplus |
Direct Vs Regular Nippon India mutual funds
Direct and Regular plans generally invest in the same mutual fund scheme, but their costs and investment routes are different. Understanding these differences can help investors choose a plan that suits their needs.
| Factor | Direct Nippon India Mutual Fund | Regular Nippon India Mutual fund |
| Investment route | Invest directly with the mutual fund house or through a direct platform | Invest through a distributor, broker, or financial advisor |
| Expense Ratio | Generally lower | Generally higher due to distribution commissions |
| Returns | Potentially higher over the long-term due to lower costs | Can be slightly lower because of higher expenses |
| Suitable for | Investors who can research and manage investments themselves | Investors who prefer professional guidance |
| Cost impact | Lower ongoing costs | Higher ongoing costs |
Taxation of Nippon India mutual funds
The following points show the applicable taxes for Nippon India mutual funds as of 22 August, 2026.
- Equity-oriented mutual funds
| Holding Period | Tax Treatment |
| Up to 12 months | Short-term capital gains taxed at 20% |
| More than 12 months | Long-term capital gains exceeding ₹1.25 lakh in a financial year are taxed at 12.5% |
| LTCG up to ₹1.25 lakh | Exempt, subject to applicable conditions |
- Specified Mutual funds
Gains from specified mutual funds, which means funds investing > 65% in debt and money market instruments, are added to your total taxable income and taxed at your income tax slab rate, irrespective of holding period. The exemption of ₹1.25 Lakh on long-term capital gains is not available in this case.
- Other Funds
Under the current tax regime, gains from such funds are taxable under-
- Long term capital gains which is taxable at 12.5%
- Short term capital gains are added to your total taxable income and taxed at your income tax slab rate.
Note: In case of listed mutual fund schemes, units held for more than 12 months are classified as long-term investments. In case of Unlisted schemes, units held for more than 24 months are classified as long-term.
Other Best Mutual Fund Categories
Besides the funds discussed above, investors can also explore other Nippon India -focused options
FAQs
As of 22 August 2026, some of the funds that performed well are Nippon India Silver ETF, Nippon India ETF Gold BeES, Nippon India Growth Mid Cap Fund Direct, Nippon India Small Cap Fund Direct, and Nippon India Multi Cap Fund Direct. Risk appetite, investment horizon, expense ratio, and asset allocation must also be considered prior to investing.
Timing is important depending on the financial objectives, investment horizon, and risk profile of the investors. Those with a long investment horizon can invest in the equity-oriented schemes of Nippon India funds, while others may opt for debt/money market funds depending on their financial risk profile.
There is no such thing as the best Nippon India mutual fund for everyone. As of 22 August 2026, Nippon India Silver ETF delivers the highest 3-year CAGR of 49.29%, whereas Nippon India Small Cap Fund Direct delivers the highest 5-year CAGR of 21.06%. Past performance does not indicate future returns.
Begin by defining your financial objective and the investment period. Consider the past performance, benchmark performance, level of risk, expense ratio, assets under management, diversification of the portfolio, and the investment strategy of the fund you are considering. Select the mutual fund based on your tolerance to the fluctuations in the market.
Investors can opt for Nippon India mutual funds if they are looking for professionally managed and diversified investments. Investors willing to take more risk can opt for equity funds, whereas those seeking comparatively less risky options can choose debt and money-market funds.
Since the table doesn’t provide details on the performance of Nippon India mutual funds over the past 1-year period, it’s not possible to ascertain the top-performing mutual fund over that period. Before making an investment decision, the latest 1-year performance should be considered, as fund returns depend on various factors, including the market environment.
Nippon India mutual funds are not completely risk-free or absolutely safe. Mutual funds are always exposed to risk, depending on market and other investment-related factors. Risk depends on the fund’s category. The risk associated with equity and precious metal funds is higher than that of most debt funds.
Investment can become an option if the fund aligns with your financial objectives and the investment time frame you choose. Rather than predicting the ideal timing to enter the market, one can consider investing regularly through SIPs. Prior to making investments, analyse the fund’s portfolio, valuation, performance, and risk, as well as your financial position.
While Nippon India mutual funds and fixed deposits (FDs) are different from each other, the choice between them can depend upon various factors such as the level of risk you can afford, investment time frame, liquidity requirement, and your financial objectives.
