Mutual funds market is growing at a phenomenal pace. The two of the leading mutual funds in India are Nippon India Mutual Fund and Edelweiss Mutual Fund. Both have a diverse range of programs and pricing to attract customers with different investment goals and risk affinities. The following article aims to give a comparison of these two mutual fund houses so that readers can make the right decision.
Nippon India Mutual Fund Overview
It is an open-ended mutual fund company that went by the name of Reliance Mutual Fund until its early stages, or, in other words, the company started in 1995. The equity mutual fund division of Nippon Life Insurance Company acquired the entire stake in Mystic Asset Management in February 2019 and reframed it as Nippon India Mutual Fund. This fund house has grown, and assuming its current position, it would occupy the fourth position regarding the industry AUM. Nippon India Mutual Fund holds and manages its assets as of March 31st, 2023, with a total value of Rs 2 lakh crore.
Edelweiss Mutual Fund Overview
The company under focus is Edelweiss Mutual Fund, which started operation in 2009 and is therefore classified as a relatively young mutual fund company. Besides, it expanded by affiliating with JP Morgan AMC to source its business in India in 2016 and through the launch of the Bharat Bond ETF in 2019. It offered a net of 56 schemes, and the assets under management as of February 28, 2023, were ₹1,19,848 crores.
Comparative Analysis
Equity Funds
- Nippon India Mutual Fund: Among its diversified equity schemes, which are popular in the market, Nippon has 34 equity funds, which are segregated based on sectors and the manner of investment.
- Edelweiss Mutual Fund: Though less in count, the equity funds offered by Edelweiss are special because of their strategic approach and their potential to grow.
Debt Funds
- Nippon India Mutual Fund has 22 debt funds, which is appropriate for low-risk investors since the investments are less volatile and offer a steady income.
- Edelweiss Mutual Fund: Edelweiss is one of the pioneers in India and has launched one corporate bond exchange-traded fund.
Alternative Investments
- Nippon India Mutual Fund: Divided into liquid and gold solutions, it will be attractive for those investors who want to diversify their portfolios.
- Edelweiss Mutual Fund: Provides services like MSCI index funds, which are quite different from those of other providers because they include the option of adding global diversification.
Conclusion
The competition between the two industries is stiff, and Nippon India Mutual Fund and Edelweiss Mutual Fund have distinct advantages and can satisfy several investors. Among the popular funds, Nippon India Mutual Fund is quite seasoned and has a rather large asset backing, which means stability. On the other hand, the new generation launching Edelweiss Mutual Fund is a game changer, and with ever-evolving products, it has the potential to attract those who are interested in dynamic and innovative schemes. Hoping to invest in 2024? Understanding the unique strengths of each can assist in achieving your investment goals.
