RETAIL RESEARCH

MUTUAL FUND SCHEME ANALYSIS

23 Feb 2016

Birla Sun Life India GenNext Fund

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Key points:

Unit Growth of investments Vs. Benchmark

(Rebased to 100)

Birla Sun Life India GenNext Fund is one of better performing schemes from Equity thematic
consumption based funds. The scheme has showed consistent performance over periods. The scheme
invests in companies that are expected to benefit from the rising consumption patterns in India, which in
turn is getting fuelled by high disposable incomes of the young generation (Generation Next).
The Indian consumer sector is expected to grow by 13-14% p.a. and may not be majorly impacted by the
macroeconomic headwinds such as higher inflation and growth slowdown. This results in the
consumption theme based schemes to generate balanced returns during various market cycles.
Higher rural spending which is aided significantly by government programmes like MNREGA, increase in
salaries in the wake of implementation of sixth pay commission, pricing-led growth in agriculture and
better distribution augurs well for the Indian consumption story.
There are seven schemes have followed consumption based investment strategy and all have adopted
concentrated bet, they have not been affected adversely by the macro economic uncertainties due to its
defensive nature.
The scheme registered -10%, +16% and +17% of CAGR returns for one, three and five year periods while
the benchmark Nifty 50 posted -19%, +6% and +6% of returns respectively. For the same period, the
category clocked -12%, +12% and +15% of returns respectively.

Fund Performance Vis-a-vis Benchmark (Excess return):

Portfolio: HDFC Bank Ltd, Maruti Suzuki India Ltd and ITC are the stocks that topped in its latest portfolio
having weights of 6%, 4.26% and 4.1% to its net assets respectively.
In the last six month period, the scheme added 13 new stocks and exited from 8 stocks. The Turnover
ratio of the scheme stood at 18%.
The expense ratio of 2.92% for the scheme is higher compared to the category average of 2.86%. The
corpus of the scheme as per latest data (Jan 2016) was at Rs. 289 crore. However, the merger of Birla Sun
Life Buy India Fund would increase the corpus size of the scheme.
The scheme is managed jointly by Mr. Anil Shah and Mr. Chanchal Khandelwal.
As far as risk measures are concerned, the scheme seems to be slightly risky while compared to peers as
it generated 16.53% (category 15.10%) of Annualized Standard Deviation that generated for last 3 years
period.

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Relative performance of the Scheme:
Point to Point and Rolling returns of the scheme versus peers and benchmarks over the various time frames:
Scheme Name

Scheme's
Age (Yrs)

Benchmark

Latest
Total No of
Expense
Corpus (Rs
Equity
Ratio (%)
Crs)
Holdings

Birla Sun Life India GenNext Fund (G)

10.61 Nifty 50

289

52

2.92

ICICI Pru FMCG Fund - (G)

16.94 Nifty FMCG

Trailing Returns (%)

1 Year
3 Years 5 Years
CAGR
CAGR
CAGR
-9.73
16.42
17.05

Rolling Returns (%)

7 Years
6 Month
CAGR
Absolute
22.06
7.85

Standard
Deviation
(Annualised)

1 Year 2 Years 3 Years

CAGR
CAGR
CAGR
17.79 15.72
14.63

16.53

245

26

2.68

-9.58

11.88

19.38

24.52

9.13

20.16

18.28

18.96

15.47

SBI FMCG Fund (G)

3.05 S&P BSE FMCG

218

16

2.82

-9.15

11.89

20.81

28.13

14.42

29.16

26.00

24.11

15.91

Sundaram Rural India Fund (G)

9.84 S&P BSE 500

518

69

3.00

-7.15

14.27

10.84

18.13

5.64

13.40

9.83

9.54

17.12

2.86

-11.88

12.44

14.76

21.87

8.51

19.09

17.43

16.83

15.10

Nifty 50

-18.56

6.76

5.50

13.50

4.48

10.72

9.62

10.19

Nifty 500

-16.32

8.88

6.47

14.92

4.96

11.70

9.54

9.47

-6.21

12.87

14.27

Benchmarks:
Average of Consumption based funds

Nifty Consumption Index

3 Year Rolling returns generated from 5 Yrs historical NAV & calculated for multiple periods:

17.93 -

Relative performance during various market cycles:

Rolling returns that calculated from multiple periods could show the clear picture that how
consistently the schemes showed better returns.

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Portfolio Positioning:
Portfolio Market cap break-up over periods:

Top ten stocks held by the scheme:

Riskometer:
Portfolio Sector break-up of the scheme over periods:

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Category Performance:
Risk as measured by Standard Deviation (Ann) calculated from last 3 Yrs periods:

Year on Year performance of the Major categories in Equity Oriented Mutual Funds:

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Relative performance of the Sector indices based on the 3 year rolling returns that calculated from 5 years NAV history for multiple set of periods:

Rolling returns that generated from multiple periods would give us a clear picture on the consistency of the schemes on generating the returns historically. The chart shown above is
plotted from the 3 year rolling returns data that calculated from the 5 years NAV history.

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Relative performance of the sector indices based on year on year returns (calendar year):

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Relative performance of the sector indices based on various equity market cycles:

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Analyst: DhuraivelGunasekaran (dhuraivel.gunasekaran@hdfcsec.com)

Source: NAVIndia.com& ACEMF

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HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email:
hdfcsecretailresearch@hdfcsec.com.
Disclaimer: Mutual Funds investments are subject to risk. Past performance is no guarantee for future performance.This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not to be reported or
copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as
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Clients.
This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry prices and/or other parameters mentioned in this document may or may not match or may be contrary with those of the other Research teams
(Institutional, PCG) of HDFC Securities Ltd. HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475.

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