3 Equity Schemes from Nippon India Mutual Fund for 2026 Watchlist

If you're building your 2026 mutual fund watchlist, here's a serious question -Are you looking at funds that have just performed recently... or funds backed by a disciplined investment philosophy and strong risk-adjusted returns?

Because when markets get unpredictable, strategy matters more than short-term performance.

Hi I am Divya Grover

In today's video, we're looking at 3 equity funds from Nippon India Mutual Fund - one of the largest players in the industry

Nippon India Mutual Fund is the fourth largest player in the Indian mutual fund industry, managing assets worth ?7.2 trillion.

The fund house follows a top-down approach to identify key sectors and then a bottom-up approach to select stocks within those sectors. It is benchmark agnostic and focuses on picking high-conviction stocks based on fundamental research.

Stock selection is based on:

• Business potential - scalability and sustainable competitive advantage
• Earnings track record - revenue, EBITDA, profitability, RoE, RoA
• Capital allocation - diversification and leverage
• Promoter ownership - equity dilution and pledge
• Corporate governance - minority shareholder treatment, promoter track record, accounting red flags

For this watchlist, the schemes have been shortlisted using a combined quantitative score that includes:

• 6-month, 1-year, 3-year, and 5-year rolling returns
• Risk-reward ratios such as standard deviation, Sharpe, Sortino, and up/down capture ratio

Now let's get into the top 3 funds.

#1 Nippon India Growth Mid Cap Fund

Launched in October 1995, this is one of the oldest and most popular schemes in the Mid Cap category.

Until 2017, it followed a multi-cap strategy, but later aligned with the regulator's definition of a mid-cap fund.

The fund follows a Growth at Reasonable Price (GARP) strategy. It avoids momentum-driven bets and instead focuses on quality businesses available at reasonable valuations, holding them with a long-term perspective.

Over the last 5 years the fund generated a CAGR of 30.2% on a rolling return basis, Compared to 28.5% from the NIFTY Midcap 150 - TRI index.

It also Outpaced the benchmark on risk-adjusted metrics like Sharpe and Sortino

Top holdings are:

• BSE
• The Federal Bank
• Fortis Healthcare

Top sectors are

• Banking & Finance
• Auto & ancillaries
• Healthcare

The fund has demonstrated its ability to generate alpha across market phases through strategic allocation to fundamentally strong mid-cap companies, supported by selective large and small-cap exposure.

#2 Nippon India Vision Large & Mid Cap Fund

Also launched in October 1995, this fund was originally large-cap oriented but was recategorised in 2018.

It aims to invest in market leaders within their sectors, along with tactical allocation to high-quality midcaps that show leadership characteristics and scalable business models.

Over the last 5 years the fund generated a CAGR of 24.2% on a rolling return basis compared to 23.6% in the NIFTY LargeMidcap 250 - TRI index

Additionally, it Outperformed the benchmark on risk-adjusted returns

Top holdings are:

• ICICI Bank
• HDFC Bank
• Reliance Industries

Top sectors:

• Banking & Finance
• Auto & ancillaries
• Infotech

Despite frequent changes in its fund management team in recent years, the fund has maintained a notable lead over the benchmark and category average. However, its performance may deviate from peers that have higher small-cap exposure.

#3 Nippon India Value Fund

Launched in June 2005 as a Multi Cap Fund and recategorised in 2018, this fund continues to maintain exposure across market caps.

The fund focuses on investing in undervalued yet fundamentally sound businesses with the potential to deliver better long-term risk-adjusted returns.

Importantly, it avoids value traps - meaning companies where long-term structural growth is uncertain or at risk of disruption.

Over the last 5 years the fund generated CAGR of 26.7% on a rolling return basis, Significantly higher than the 20.9% CAGR of the NIFTY 500 - TRI index.

While its volatility has been higher than the benchmark, investors have been rewarded for the additional risk.

Top holdings are:

• HDFC Bank
• ONGC
• SBI

Top sectors are:

• Banking & Finance
• Infotech
• Petroleum

The fund particularly stands out during bull phases, outperforming both benchmark and peers by a noticeable margin, while delivering reasonable performance during bearish phases. It maintains a diversified portfolio and holds stocks until their full potential is realised.

Conclusion

To sum it up - these three funds reflect different styles: growth-oriented midcaps, leadership-driven large & midcaps, and disciplined value investing.

They've delivered strong growth and noteworthy risk-adjusted returns in recent years, supported by a structured research framework and long-term holding approach.

But remember - past performance is not a guarantee of future returns.

The real question isn't which fund looks best on paper.The real question is - which one aligns with your risk appetite, time horizon, and investment goals?

Build your 2026 watchlist thoughtfully. Stay disciplined. Stay invested. And let strategy - not noise - drive your decisions.

Please note that this video is for information purpose only and is not a recommendation to buy/hold/or sell a fund. Returns mentioned herein are in no way guarantee or promise of future returns.

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Happy investing.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, enlistment as RA and IA with Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.