Product Labelling

Birla Sun Life Resurgent India Fund – Series 3

(A Closed Ended Equity Scheme)
NFO Opens: 23rd February 2017
NFO Closes: 9th March 2017

For Private Circulation Only

Birla Sun Life Asset Management Company Limited

1
Pillars of India’s Resurging Growth

 Managed to control inflation through

 Assisting states change their management of food article prices
labour laws depending on need Macro
economic  Sticking with the FRBM targets
 Running the "Skill India" Stability
program to make more people  Attracting more FDI into the country by
employable simplifying procedures
Human Capital Urbanization

 Devolution of additional funds

to states without end use Reformed  Focus on creating more and better
commitment India cities through the smart cities
program
 Support to states in amending
laws
Financial

Decentralization
Promoting competition Inclusion
between themselves
 Providing banking & insurance access to
Manufacturing "unbankable" through the Jan Dhan
 Focusing on creating manufacturing jobs in India program
through the "Make in India" initiative  Providing small loans through MUDRA
 Easing procedures to do business in the country

Reform momentum helps create base for more sustainable longer term growth revival

Birla Sun Life Asset Management Company Limited Source: BSLAMC research

Copyright Aditya Birla Nuvo Limited 2013

2
Conducive Monetary policy & Business Environment-Key to Economic Growth

Consumer Price Index Fiscal Deficit as % of GDP

10 8
9
7
8 RBI is targeting CPI to be in a band of 2-6%
7 6
6 5
5 4 Average : 4.34 3.5
4 3.2
3
3 3.00
3.17
2 2
1 1
0 0
Jan-14
Mar-14

Jan-15
Mar-15

Jan-16
Mar-16

Jan-17
May-14

Nov-14

May-15

Nov-15

May-16

Nov-16
Jul-14
Sep-14

Jul-15
Sep-15

Jul-16
Sep-16
Ease of Doing Business Rank
160  A Central bank focused on inflation control and a prudent government
142
134 130 focused on cutting costs is a recipe for a strong domestic economy
140
120
100  Pent-up demand held back on account of demonetization expected to
80 bounce back and revive the top line growth of companies
60 50
40
 Policy stability provides positive impetus to business establishments and
20
encourage increase in capital spending
0
2014 2015 2016 2020

Revival in the economy is underway as macro readjustments are in force and a fresh business cycle is brewing

Birla Sun Life Asset Management Company Limited Source: Bloomberg, RBI

Copyright Aditya Birla Nuvo Limited 2013

3
Drivers for the Next Bull Market…

Sharpened
Government Focus
Favorable
on Ease of Doing GST
Demographics &
Business
Rising Urbanization

Improving
Demonetization & Infrastructure &
Digitization Booming E-
Commerce

Birla Sun Life Asset Management Company Limited Source: BSLAMC research

Copyright Aditya Birla Nuvo Limited 2013

4
GST : One Nation, One Market

A landmark reform aimed at putting India’s economy on a long term growth path…

Advantage GST
 Less complicated processes

 Amalgamation into a single,

nationwide market

 Between 3 and 5 % saving to the

Organized Sector on tax alone.

 Loss of tax advantage to the

Unorganized Sector (up to 12%)

 Reduction in logistics costs due to

consolidation of depots

 Lower amount of paperwork/

Lesser compliance burden

Birla Sun Life Asset Management Company Limited Source: CLSA

Copyright Aditya Birla Nuvo Limited 2013

5
Decoding GST (Goods & Services Tax)
WHAT IS GST?

An Inclusive Tax to Replace the

Current Indirect Tax Regime

Levied on Both Goods and Services

Has a Dual
Structure : Central
GST & State GST

3.5%
Indicative savings for both
Lower
4 TIERED TAX companies as well as
5% 12% 18% 28% Price
STRUCTURE consumers
for common use for essential items for bulk items eg. for cars and white
AGREED UPON items eg. Tea, eg. processed food, soaps, shaving goods (+cess – luxury
BY THE GST coffee, oil, spices computers creams cars, tobacco, aerated
drinks)
COUNCIL *0% for food grains *Separate rate for precious metals

Birla Sun Life Asset Management Company Limited Source: BSLAMC research, Edelweiss research

Copyright Aditya Birla Nuvo Limited 2013

6
Emerging Trend : Unorganized to Organized

Current Share of Unorganized Sector Organized Sector will take Market Share from
Food Services
Informal Sector and grow faster
95%
Jewellery 80%
Apparel 80%  A reformed India will offer similar
Plywood 70% opportunities to small as well as big players.
Logistics 70%
Sanitaryware 60%  Unorganized players lose competitive cost
Footwear 50% advantage / cash profits they were enjoying
Tiles 50% in form of tax evasion, circumvention of
Electric Goods 45%
labour laws & flouting of other regulations
Small Appliances 40%
 Sectors like Auto/Auto ancillaries, building
Pipes 40%
material, Consumer staples-durables &
Detergents 35%
discretionary will benefit the most from this
Tyres 30%
shift
Batteries 30%
Pharma 30%  Demonetization has initiated the shift
Paints 30% towards formal economy, GST will fast rack
Soaps 20% the process.
Other Auto Components 15%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Birla Sun Life Asset Management Company Limited Source: BSLAMC research, Edelweiss research

Copyright Aditya Birla Nuvo Limited 2013

7
Why we are Convinced about the Shift to Organized Economy
Disadvantage - Unorganized
Sector
 Access to lower cost of raw materials via tax evasion through Cash
Transactions will be significantly curbed
 No benefit of input credit on tax payments for Cash transactions
 Consolidation of facilities will lead to Economies of Scale; Also smoother
 Cap on cash will hinder scalability of cash driven business
 Loss of profits from tax evasion, circumvention of labour laws &
flouting of regulations
 With rising cost structure selling prices may also rise; consumer
preference will be then be for branded products from organized
sector if price differential isn't significant resulting in loss of business
Birla Sun Life Asset Management Company Limited
Copyright Aditya Birla Nuvo Limited 2013
Advantage - Organized
Sector
flow of goods across states will result in seamless access to raw
materials & goods
 Implementation of GST will reduce logistics costs, improve turnaround
ratios, reduce inventory costs resulting in further enhancement of
earnings
 Reduction in tax rates (up to 5% across key sectors) due to
implementation of GST will boost corporate earnings
 Benefit from input credit in tax computation
 Digitization & Urbanization are a boon for organized sectors as a
younger & more digitally evolved India associates faster & better
Source: BSLAMC research, Edelweiss research
8
How Everybody Gains from GST
ECONOMY
COMPANIES
• No distinction between Product &
Service for Tax
• Uniform Tax across the country to
ease business
• Smooth movement of products
across states
• Tax credits to lower tax burden,
improve profits for some
• Positive impact on the following
sectors due to lowering of cost of
goods : Auto, FMCG, Logistics,
Infrastructure, Consumer Durables,
Cement, Consumer Discretionary
Birla Sun Life Asset Management Company Limited
Copyright Aditya Birla Nuvo Limited 2013
CONSUMER
• Dual monitoring by the Centre and • Most products are likely to be less
states to reduce tax evasion expensive over time
• Better compliance through real time • A possible reduction in Personal
matching of supplier and purchaser Income Tax Slabs in the future, due to
an efficient tax collection GST regime
• Reduction in the Rs. 1.8 lakh crore
approximate annual loss due to excise • On road prices of vehicles likely to
duty exemptions come down by 8%
• Cut in Rs. 1.5 lakh crore estimated
loss to states due to tax exemptions
• Reduction in prices of capital goods
by 12-14%; consequent GDP growth
by 0.5%
Source: BSLAMC research, Edelweiss research
9
Major Beneficiaries of the GST Story

Building Materials Auto & Auto Ancillaries Consumer Discretionary

• Increased Public Expenditure for Infra
• Affordable housing focus & lower interest rates
to provide impetus to individual home demand
• Smart Cities
• Improved logistics & savings on storage cost • Higher aspiration & increased urbanization to
• Savings on Tax structure to boost margins for lead demand for branded products; digitisation
the sector to facilitate
• 7th Pay Commission already increasing
RIFS-3 propensity to consume

Consumer Staples Consumer Durables

• Elimination of cascading effect • Urbanization and inclination towards

of taxes Reduction of cost of
production  Reduction in
prices of goods
• Smoother logistics  savings on
lower wastage & lesser storage
cost
nuclear families already a boost to the
sector
• Lower logistics costs post GST & benefit
of input credit will improve earnings

Birla Sun Life Asset Management Company Limited Source: BSLAMC research

Copyright Aditya Birla Nuvo Limited 2013

10
Exodus Towards Organized Sector
(Increase in Percentage share of Organized Sector from 2016 to 2026)

JEWELLERY

PLASTICS PLYWOOD

TILES ELECTRICAL
EQUIPMENT

BATTERIES DAIRY

DIAGNOSTICS

APPAREL HOSPITALS

Birla Sun Life Asset Management Company Limited Source: Edelweiss research

Copyright Aditya Birla Nuvo Limited 2013

11
Auto & Auto Ancillaries Organize
d, 15%

Auto Anc’s Market Share by Segment

Engine Parts
7% Driving Transmssm &
 India’s auto component industry is one of the fastest growing in 9% Other Parts
31% Body & Chasis
world, yet is largely unorganised 10% Suspension & Breaking
Parts
 The auto population has more than doubled in the past 7-8 years, Unorgani 12% Equipments

creating huge replacement demand for products such as tyres, zed, 85% 19% Electrical Parts
12%
batteries and engine oils, which have an average shelf life of 2.5 to 3 Others

years
No. of players in auto ancillaries sector
 Two/three wheelers are the largest customer segment of auto- Organised ~ 700
component market Unorganised ~ 10000

 The industry has traditionally been one of the few industries which Turnover Trend
100
has been subjected to a very expensive indirect tax regime currently 84
80 66
 GST is expected to result in a reduction in the cost of doing business

USD Bn
60
for Organised players by removing the cascading effect of Central 40 34 33 30
26 25
and State taxes from the current 20%-26% to 18% 20
19
9 10 10
5 4 6
0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2019-20E

Domestic Revenue Export Revenue

The total market size is expected to be more than USD150 bn by 2020, Industry expect that the replacement market for components with
which is nearly three times the current market size of about USD 35.1 bn shorter shelf lives will see a double digit growth

Birla Sun Life Asset Management Company Limited Source: BSLAMC research, IBEF

Copyright Aditya Birla Nuvo Limited 2013

12
Exide Industries Ltd.
 Increasing manufacturing capacity at its existing plant by adding new capacity in the beginning of FY16

 With expectations of an overall demand revival, the company’s industrial segment volume growth is expected to be healthy

 Commercial vehicle sales are expected to pick up supported by revival in Indian economy. This will have a positive impact on Exide Industries

 In addition, most of two wheelers (2W) are coming with electric start and use valve regulated lead acid (VRL) batteries, which have a shorter
replacement cycle and thus, the company’s volume of the two-wheeler segment is expected to grow at a better pace

250

Sell
200

150

Buy
100
Buy

50 Current Price – Rs 208

Current M Cap – Rs 17705 Crs

0
Jan-14

Oct-14

Jan-15

Oct-15

Jan-16

Oct-16

Jan-17
Apr-14

Apr-15

Apr-16
Jul-14

Jul-15

Jul-16
The Stocks mentioned above shall be deemed not to constitute an advice, an offer to sell/ purchase or as an invitation or solicitation to do so. The Scheme may or may not have exposure to the mentioned stocks

Birla Sun Life Asset Management Company Limited Source: Bloomberg, BSLAMC research

Copyright Aditya Birla Nuvo Limited 2013

13
Building Material – Structural, Sustainable & Scalable!

 Building materials constitute anywhere around ~35% of total cost of Cost break-up % cost
construction
 Total RCC/Civil cost
50%
(Sand, Iron & Steel, Cement, bricks, labour, etc)
 The growth of building material sector currently attributes largely to ‘the
shortening replacement/refurbishment cycle’ & ‘the shift happening from  Total cost of amenities
35%
unbranded to branded products (Tiles, pipes, paints, sanitaryware, faucets, electricals, etc)
 Total cost of common facilities
 This space covers niche building material categories like ceramic tiles, plastic 15%
(Lifts, podium, fire fighting, infrastructure, etc)
pipes, sanitary ware, wood panels, etc. which are structural, sustainable and
Total cost of construction 100%
scalable themes to play out

 Policy reforms: Swachh Bharat Abhiyaan, Creation of 100 smart cities,

affordable housing & implementation of GST Building Current Mix Opportunities lying ahead
Material Org. to Unorg. High Average Low
 Huge housing requirement in urban (45m units) and rural area (65m units) by Tiles 50:50 
2022 Paints 70:30 
Plumbing Pipes 65:35 
• Favourable demographics, leading to higher disposable income in the
Sanitaryware 60:40 
hands of those with aspirations of better lifestyle
Faucets 55:45 
• Rising nuclear families and middle class
Plywood 25:75 
Laminates 55:45 

GST major trigger going forward - Shift from unbranded to branded have enabled building material brands to grow despite the macro-economic slowdown

Birla Sun Life Asset Management Company Limited Source: ISec research

Copyright Aditya Birla Nuvo Limited 2013

14
Century Plyboards

 A comprehensive play on wood panels – The only Indian player with comprehensive
portfolio including plywood, face veneers, laminates, decorative veneers, PLPB and
MDF boards

 Top quality retail player in plywood segment – Strong brand pull, largest installed Century Ply
capacity in India, high retail penetration and strong distribution network
300
 Vast expertise in raw material security – First mover advantage by way of putting up
huge capacities in face veneers in Myanmar and Laos. Laos venture expected to be 250
highly profitable
200
 Laminates division to supplement growth – Higher capacity utilisation in laminates and
recently commenced PLPB unit to supplement revenue growth and aid segmental 150
margin expansion
100
 MDF (medium density fibre) unit to be operational in Q4FY17 – Incremental growth Current Price – Rs 228
50
driver with increasing awareness and acceptability of MDF in India Buy Current M Cap – Rs 5060 Crs

Apr-14

Apr-15

Apr-16
Jul-14

Jul-15

Jul-16
Jan-14

Jan-15

Jan-16

Jan-17
Oct-14

Oct-15

Oct-16
The Stocks mentioned above shall be deemed not to constitute an advice, an offer to sell/ purchase or as an invitation or solicitation to do so. The Scheme may or may not have exposure to the mentioned stocks

Birla Sun Life Asset Management Company Limited Source: Bloomberg, BSLAMC research

Copyright Aditya Birla Nuvo Limited 2013

15
 Consumer Discretionary
Tourism

Higher Incomes Luxury living

6 Key
Desires
of Gen z
Aspirations for
More connectivity branded products

Source: CEIC, RBI, Morgan Stanley Research

Upscale Lifestyle
Key drivers for sector –
 Growth drivers –
 With 440mn milennials and 390mn Gen Z teens and children, the sheer size of India’s youth paves the way for India’s consumer story to be one of the world’s most compelling
in the next 20 years
 For consumer companies, warehouse rationalization and reduction of overall tax rates are expected to generate savings, which could cumulatively range between 200 basis
points and 300 basis points, a direct benefit from GST
 Discretionary purchases are set to increase fuelled by the 7th Pay commission, OROP, forthcoming Indian wedding season in the form of new households, vehicle purchases,
appliance purchases etc.
 Opportunity: The combination of a Demonetization, Digitization & Ecommerce along with increasing per Capita Incomes is driving the earnings of consumer discretionary
companies in the coming quarters.

Birla Sun Life Asset Management Company Limited Source: Edelweiss research

Copyright Aditya Birla Nuvo Limited 2013

16
Success Story – Titan

• Retail chain is 1333 stores strong, as on 31st December 2016 with the retail area crossing 1.75 million sq.ft. nationally for all its brands. A total of 118
stores were added by TCL brands in the nine month period till December 2016
• Focusing on wedding jewellery and collections has worked out well. Consumers have very easily transitioned to paying for jewellery with Credit Cards or
Cheques, aided by Demonetization
• Titan is well placed to win market share (about 200bp by FY20E) especially from smaller unorganized competitors as the cost of doing business increases
with the potential GST implementation and moving towards a more formalized economy**

500

450 Sell
400

350

300

250
Buy
Buy
200

150 Buy

100
Current Price – Rs 412
50 Current M Cap – Rs 37220 Crs
0
Jan-14

Mar-14

Jun-14

Jan-15

Mar-15

Jun-15

Jan-16

Mar-16

Jun-16

Jan-17
Apr-14

Oct-14

Apr-15

Oct-15

Apr-16

Oct-16
May-14

May-15

May-16
Aug-14

Nov-14

Aug-15

Nov-15

Aug-16

Nov-16
Feb-14

Jul-14

Sep-14

Feb-15

Jul-15

Sep-15

Feb-16

Jul-16

Sep-16
Dec-14

Dec-15

Dec-16
The Stocks mentioned above shall be deemed not to constitute an advice, an offer to sell/ purchase or as an invitation or solicitation to do so. The Scheme may or may not have exposure to the mentioned stocks

Birla Sun Life Asset Management Company Limited Source: NSE, BSLAMC Research, **Goldman Sachs

Copyright Aditya Birla Nuvo Limited 2013

17
Consumer Durables – Discretionary turning to necessity
25
Size of Consumer Durables Market (USD Billion) Share in Consumer Durable market
20.6
20

15
13% CAGR 12.5 33%
Rural
9.7
10 Urban
7.3 7.3 7.4 7.4
6.3
4.7 5.2
5 3.8 4.2
3.5
67%

0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY20F

Key drivers for sector –

 Long term drivers –
 Increasing real income – additional income especially in the hands of youth fuels demand
 Lifestyle – perceptional shift in consumers from a discretionary view point to a necessity view
 Rural markets - Huge untapped rural market; currently there is only 2 per cent penetration for refrigerators and 0.5 per cent for washing machines
 Digital Penetration - wide usability and promotion of online sales aid growth in demand
 Policy Support – reduction of price differential between organized and unorganized players on account of GST
- reduced logistics and inventory handling costs
 Immediate opportunity – Remonetization and reduction of tax for Middle income population are set to increase money in the hands of people. Also increased
agri income on the back of good monsoons is set to increase rural spending

Birla Sun Life Asset Management Company Limited Source: Electronic Industries Association of India, Ministry of Urban Development

Copyright Aditya Birla Nuvo Limited 2013

18
Success Story – Voltas

• Voltas is one of the best consumer durables play in the country led by a strong diversified product portfolio and a leadership market share
across categories
• Margins on AC’s are expected to be between 12% and 13% on sustainable basis (after considering impact of GST & end of tax holidays in
next 1 year)**
• Reduction in tax incidence of white goods to 28% from current levels of around 30% will benefit Voltas.**
• The longevity of the business is strong given the low penetration of Consumer Durables in India and increasing disposable incomes.

Sell
450
400
350
300
Sell

250
200
150 Current Price – Rs 339
Current M Cap – Rs 11238 Crs
100 Buy
50
Buy
0
Feb-14

Apr-14

May-14

Aug-14

Sep-14

Feb-15

Apr-15

May-15

Aug-15

Sep-15

Feb-16

Apr-16

May-16

Aug-16

Sep-16
Jul-14

Nov-14

Dec-14

Jul-15

Nov-15

Dec-15

Jul-16

Nov-16

Dec-16
Jan-14

Mar-14

Jun-14

Oct-14

Jan-15

Mar-15

Jun-15

Oct-15

Jan-16

Mar-16

Jun-16

Oct-16

Jan-17
The Stocks mentioned above shall be deemed not to constitute an advice, an offer to sell/ purchase or as an invitation or solicitation to do so. The Scheme may or may not have exposure to the mentioned stocks

Birla Sun Life Asset Management Company Limited Source: NSE, **Edelweiss Research

Copyright Aditya Birla Nuvo Limited 2013

19
Consumer Staples
120 Household final consumption expenditure
Rural FMCG Market (USD Billion)
100
(% of GDP)
100 62

60
80 59.6
58.1
58 58.0
57.8
60 56.4
56 55.9

40 54 53.3
29.4
52.7
18.92 52
20 12.3 12.1 14.8
9 10.4
50
0 48
2009 2010 2011 2012 2013 2015 2016 2025E 2008 2009 2010 2011 2012 2013 2014 2015

Key drivers for sector –

 Growth drivers –
 Favorable Demographics - The expansion of Urban Mass, both in size and income level, will be the key driver of India’s consumption story in the coming 5-10 years
 Brand Consciousness – Consumers are becoming more brand conscious and prefer lifestyle and premium range products given their increasing disposable income.
 Rural Consumption - Rural India’s per capita disposable income is estimated to rise to USD631 in 2020 from USD516 in 2015E
 Premiumisation - Despite the slowdown, consumers are willing to buy premium goods at higher prices in the space of convenience, health, and wellness
 Easy Access - Availability of products has become way more easier as internet and different channels of sales has made the accessibility of desired product to
customers more convenient
 Immediate opportunity - Introduction of GST as a unified tax regime will lead to a re-evaluation of procurement and distribution arrangements. Elimination of
tax cascading is expected to lower input costs and improve profitability of companies

Birla Sun Life Asset Management Company Limited Source: AC Nielsen

Copyright Aditya Birla Nuvo Limited 2013

20
Success Story – Britannia

• Britannia is a leading food company with over Rs. 8500 crores in revenue and an expansive 4.2 million retail outlets

• Britannia estimates 6-7% of savings on secondary freight costs (which account for ~30% of total freight costs) on account of GST

• Britannia is estimated to clock 16.2% revenue CAGR over FY16‐18E driven by distribution expansion, new launches and increased
salience of other segments like dairy, cakes etc.**

4000 Sell

3500

3000

2500

2000 Current Price – Rs 3194

Buy Current M Cap – Rs 38664 Crs
1500

1000

500
Buy
0
Jan-14

Mar-14

Jun-14

Jan-15

Mar-15

Jun-15

Jan-16

Mar-16

Jun-16

Jan-17
May-14

Oct-14

May-15

Oct-15

May-16

Oct-16
Apr-14

Apr-15

Apr-16
Aug-14

Nov-14

Aug-15

Nov-15

Aug-16

Nov-16
Feb-14

Jul-14

Sep-14

Feb-15

Jul-15

Sep-15

Feb-16

Jul-16

Sep-16
Dec-14

Dec-15

Dec-16
The Stocks mentioned above shall be deemed not to constitute an advice, an offer to sell/ purchase or as an invitation or solicitation to do so. The Scheme may or may not have exposure to the mentioned stocks

Birla Sun Life Asset Management Company Limited Source: NSE, **BSLAMC Research

Copyright Aditya Birla Nuvo Limited 2013

21
 Birla Sun Life Resurgent India Fund Series -3

This product is suitable for investors who are seeking*:

 Long term capital growth

 Invests primarily in equity and equity related securities that are
likely to benefit from recovery in the Indian economy.

*Investors should consult their financial advisers if in doubt whether the product is suitable for them.

Birla Sun Life Asset Management Company Limited

Copyright Aditya Birla Nuvo Limited 2013
22
Scheme Features
Scheme Name Birla Sun Life Resurgent India Fund – Series 3
Fund Manager Mr. Satyabrata Mohanty
Scheme Type A closed ended equity scheme
The investment objective of the scheme is to provide capital appreciation by investing primarily in equity and equity
related securities that are likely to benefit from recovery in the Indian economy.
Scheme objective
The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be
achieved

Scheme Benchmark S&P BSE200

Equity & Equity related securities : 80%-100%;

Asset Allocation
Money Market & Debt instruments: 0-20%

The scheme will have duration/tenure of 3.5 years from and including the date of allotment. The NAVs of the scheme will
be announced on every Business Day. No redemption or repurchase will be permitted prior to maturity of the Scheme.
Liquidity The scheme will be listed on NSE / BSE and/or any other recognized stock exchanges as may be decided by AMC from time
to time and the Unit holders who wish to redeem units may do so through Stock Exchange at prevailing listed price on
such Stock Exchange.

Regular Plan and Direct Plan; Both plans will have two options: Growth and Dividend.
Plans/Options
Dividend option will have two facilities: Payout and Sweep.

Entry Load : NIL;

Entry & Exit Load
Exit Load : NIL

For further details refer to SID/KIM on website

Birla Sun Life Asset Management Company Limited

Copyright Aditya Birla Nuvo Limited 2013
23
Investment Philosophy

 Investment Universe
 Portfolio will seek to invest across market caps
 Portfolio to focus on companies experiencing high growth in sales, earnings growth, ROI etc. currently the portfolio is able to screen companies
with growth of over 15% CAGR & higher
 Take advantage of opportunities in IPOs and QIBs
 Investment Style
 Fund will follow a largely bottom up approach. The goal is to invest in a selection of focused companies who have demonstrated an ability to
achieve market-beating results over long periods.
 Each investment is expected to be from a 18-24 month perspective; while the fund endeavours to maintain a low churning ratio, it will also book
profits at opportune times
 Portfolio features
 A relatively more focused portfolio of around 35-45 stocks, spread across 5-8 sectors
 Selection parameters to include business fundamentals like – nature and stability of business, prospects of future growth and scalability,
expected growth in earnings, financial strength and track record.
 Portfolio to be relatively more aggressively positioned with 40-60% allocation to Mid & Small caps; may invest upto 70% in large caps to reduce
volatility and manage impact of market volatility

Birla Sun Life Asset Management Company Limited

Copyright Aditya Birla Nuvo Limited 2013
24
Proof of Pudding - Higher growth than market

Theme beneficiaries (Investment Universe): Investment Universe Returns analysis

• Universe – 224 0% 10% 20% 30% 40%
• Large Cap – 38
• Mid Cap – 81 39.9%
3 Yrs 15.1%
• Small Cap – 105
Investment Universe
11.7%
2 Yrs 0.8% BSE 200
Diversified Sectors benefitting from the theme –
• Agri Products 25.5%
1 Yr 15.8%
• Auto & Auto Anc
• Building Materials
• Chemicals
• Commercial Services incl. Logistics Model Portfolio BSE200
• Consumer Durables
EPS Growth
• Consumer Goods 24% 11%
(FY17-20E)
• Domestic Pharma & Healthcare
Sales Growth
• Industrial Manufacturing 15% 9%
(FY17-20E)
• Media & Entertainment
ROE (FY17) 24% 13%
• Retail
• Textiles

* Returns as on 31st Jan 2017

Birla Sun Life Asset Management Company Limited Source: BSLAMC research

Copyright Aditya Birla Nuvo Limited 2013

25
Key Reasons to Invest Now

 Strong shift of balance of power from Unorganised to Organised sector across key industry segments – rerating yet to be captured

 Focused portfolio with Bottom up approach – fundamental research to help gain from India’s biggest tax reform since independence in a
relatively concentrated portfolio

 Major beneficiaries from this stories are companies with good cash flow ; strong returns ratios and sustainable growth

 Key reforms like Demonetisation & Digitisation to add to tailwind for serious gains by companies in Organised sector

 Key beneficiaries of these reforms already market outperformers, available at reasonable valuations with significant potential to rerate

Birla Sun Life Asset Management Company Limited

Copyright Aditya Birla Nuvo Limited 2013
26
Disclaimer

DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by National Stock Exchange of India Limited (NSE) should not in any way be deemed or
construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft
Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the 'Disclaimer Clause of NSE'

DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited (BSE) should not in any way be deemed or construed that the Scheme
Information Document has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document.
The investors are advised to refer to the Scheme Information Document for the full text of the 'Disclaimer Clause of BSE Limited'

Disclaimers: The document is solely for the information and understanding of intended recipients only. If you are not the intended recipient, you are hereby notified that any use,
distribution, reproduction or any action taken or omitted to be taken in reliance upon the same is prohibited and may be unlawful. Wherever possible, all the figures and data given
are dated, and the same may or may not be relevant at a future date. Further the opinions expressed and facts referred to in this document are subject to change without notice and
BSLAMC is under no obligation to update the same. While utmost care has been exercised, BSLAMC or any of its officers, employees, personnel, directors make no representation or
warranty, express or implied, as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same. Recipients of this material should
exercise due care and read the scheme information document (including if necessary, obtaining the advice of tax/legal/accounting/financial/other professional(s) prior to taking of
any decision, acting or omitting to act. Further, the recipient shall not copy/circulate/reproduce/quote contents of this document, in part or in whole, or in any other manner
whatsoever without prior and explicit approval of BSLAMC.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY

Birla Sun Life Asset Management Company Limited

Copyright Aditya Birla Nuvo Limited 2013
27
 THANK YOU

Birla Sun Life Asset Management Company Limited

Copyright Aditya Birla Nuvo Limited 2013
28