Home / Business and Economy / Wealth Wars: Nippon's Grit vs. Quant's Speed
Wealth Wars: Nippon's Grit vs. Quant's Speed
5 Jan
Summary
- Quant leads in 5-year growth, Nippon excels in 10-year returns.
- Nippon offers lower risk-adjusted returns and a diverse portfolio.
- Quant utilizes derivatives and a concentrated strategy for growth.
The Indian small-cap investment landscape features a notable rivalry between Nippon India Small Cap Fund and Quant Small Cap Fund. Launched on January 1, 2013, both funds are categorized as very high risk. Nippon India adopts a diversified strategy with a significant AUM, blending equity with debt, while Quant utilizes quantitative models and derivatives for aggressive growth, operating with a smaller AUM.
Performance metrics reveal distinct paths to wealth creation. Over five years, Quant achieved a 30.79% CAGR, surpassing Nippon's 28.08%. However, over ten years, Nippon India delivered a 20.64% CAGR compared to Quant's 20.04%. Nippon's Sharpe Ratio of 1.09 suggests better risk-adjusted returns than Quant's 0.95, though Quant compensates with higher portfolio turnover and derivative use.
Portfolio compositions differ significantly: Nippon India holds 212 stocks with top holdings like Tube Investments, while Quant's 94 holdings include large-cap stocks such as Reliance Industries and HDFC Bank, with a notable allocation to derivatives. Expense ratios are 0.63% for Nippon and 0.7% for Quant, with Quant having a stricter exit load policy within 15 days.
