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NFO Opens: 19th April 2021 | NFO Closes: 3rd May 2021
Fund Positioning
Smallcap
Midcap
Return Potential
Multicap
Large &
Mid Cap
Flexicap
Largecap
Risk Probability
Multi Cap Fund is mandated to have at least 25% exposure each in Large,
Mid & Small Cap segments
Risk exposure is being measured by exposure to small and mid cap stocks
Narrow Rally to
Broad-based
Benign Liquidity Fiscal Push
DM to EM, Largecap
Increase in FII & FDI flows to Mid & Smallcap, Multiplier effect on growth
Defensives to Cyclicals,
Growth to Value
1400 GDP growth CAGR: 8.5% GDP growth CAGR: GDP growth CAGR: 7.2% 9.0%
9.4%
1200 8.0%
Absolute Returns
Absolute Returns Absolute Returns Mid Cap: 161% 7.0%
1000
Small Cap: 527% Small Cap: 145% Small Cap: 158% 6.0%
800 Mid Cap: 315% Mid Cap: 138% Large Cap: 86%
Large Cap: 243% Large Cap: 107% 5.0%
600
4.0%
400
3.0%
200 2.0%
0 1.0%
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
Nifty 50 TRI Nifty Midcap 100 TRI Nifty Smallcap 100 TRI Real GDP Growth (YoY %)
FY Real GDP growth number has been considered for calculation; Phase1: Jan-04 to Jan-08, Phase2: Jan-09 to Dec-10, Phase3: Jan-13 to Jan-18
Data as on 16th Feb 2021; Source: RBI, MFIE, Bloomberg, ABSLAMC Research, World Bank Projections
A case study for illustration purpose only. Not intended as advise. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation
of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s).
FB
IDFC
ICICI
AUSFB
BOI
RBL
Kotak
Canara
BOB
Axis
IIB
PNB
SBI
HDFC
0%
F2000 F2005 F2010 F2015 F2020E PSU Banks Private Banks
Liquidity Coverage Ratio Common Equity Tier 1 Ratio (RHS)
PSU Banks Private Banks Annualized market share gain at Pvt banks (% points)
Loan book Market share of Pvt sector banks (incl SFB) • Private banks have grown at a faster pace, yet there’s
– expected to increase sharply
room for further growth
Sector Growth: 9%
- PSU 3% • Adequate capitalization and liquidity to provide support
- Pvt 16% for faster growth
Sector Growth: 16%
- PSU 14%
- Pvt 21% 52%
Private banks can witness last 15 years
38% of growth in next 5 years
19%
Demonetization (2016) & GST (2017) had initiated the 1st wave of consolidation in favor of organized sector
COVID crisis has triggered 2nd wave of consolidation in favour of organized players!
Key drivers of growth: a) Ability to digitize distribution, b) Increasing direct reach, c) Better management of working capital, d) Access to institutional funding
Data as on: *FY19, **Latest, ^CY19, ^^ Based on FY20 & FY21 estimates, *^FY20
Source: JM Financial Research, ABSLAMC Research
Market share – India accounts for only 3%, room for growth Specialty chemicals is an integral part of value chain
40 36% of multiple sectors like pharma, textiles, paints, auto,
2008 2018
30 27% agriculture etc.
22%
17% 18%
20 16%
10%11%
Sector Growth Drivers
10 7% 5%
3% 4% 2% 3% • Increasing domestic demand
0 • Import Substitution and export opportunity
EU NAFTA Japan S.Korea India Rest of China
Asia
• Manufacturing shift from China - Opportunity for India to
create foothold in global supply chain
Region wise expected growth of
specialty chemicals sector over FY18-23 Factors in favour of India
15 13%
• Availability of skilled and low-cost manpower
10 • Availability of required infrastructure and raw materials
7%
5% • Relatively liberal regulations for high polluting companies
5 3% • Increasing capex and R&D spend
2% 1%
0
China North Western Japan India Global
America Europe
Digital Disruptions
India in comparison to US and China
100.0% 90.1% 86.5%
84.1%
E-Commerce FinTech 80.0%
78.0%
72.0%
Amazon, Flipkart, Snapdeal, Myntra Paytm, Phonepe, PayU, Lending Kart 61.7% 65.1%
60.0%
42.7%
40.0% 26.7% 32.0%
22.3%
20.0%
3.2%
0.0%
FoodTech & Ride Hailing Digital Entertainment E-com Shopper Internet Smartphone
Swiggy, Zomato, Uber, OLA Netflix, Prime Video, Saavn, Gaana penetration penetration penetration penetration
India China USA
Disruptors
Enablers
13
Aditya Birla Sun Life AMC Ltd. For Private Circulation Only
Presenting
Fund Positioning ➢ An open ended equity scheme investing across large cap, mid cap & small cap stocks in a disciplined manner
➢ Portfolio will be Sector and Benchmark Agnostic
Investment
Approach
A combination of Focused Large Cap, Bottom-up approach of stock Portfolio will be biased towards
Focused Mid Cap & Focused Small selection to build well curated secular growth opportunities from
Cap in one portfolio portfolio of high conviction ideas across the market spectrum
The fund is suitable for Long term Equity Investors with High risk appetite with an Investment horizon of 5 years
Suitability and above
The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.
The scheme will invest 25-45% in Large Cap and 25-35% each in Mid and Small Cap
segments
Resultant Portfolio
(50-60 companies)
Resultant
Portfolio
Follows a diligent process to select 50-60 (50-60 from universe of ~400 companies
companies
companies)
Best of all the Market Cap
Combines stability of large caps and the high growth potential of mid & Best of all
small caps in one portfolio Disciplined the
Rebalancing Market
Cap
10Y
Company Name Rationale
CAGR
• One of the largest players in consumer finance and a pioneer in introducing interest free EMI finance options in more than 50
categories ranging from consumer durables, lifestyle products to groceries in India
Bajaj Finance 58%
• Over the years, Bajaj has built a well diversified lending portfolio across retails, SME and commercial customers segments with
robust balance sheet and lowest NPA with strong presence across the country
• Deepak Nitrite is one of fastest growing chemical intermediates companies growing on the back of import substitution and would
be a one of the key beneficiary of the prevailing “China+1” sourcing requirements
Deepak Nitrite 51%
• Key strengths: high degree of backward integration and diversified product portfolio
• Witnessing margin improvement with cost control, debottlenecking of existing capacity and improving product mix
• Atul Ltd. with a rich history of over 7 decades has best-in-class growth and return ratios and high cash generation among
comparable Indian chemical companies
Atul Ltd. 45% • Atul has expanded its addressable market by entering downstream products and acquiring capabilities through MNC partnerships
and improved internal efficiencies over the past decade
• Atul is well-positioned to benefit from sector tailwinds of import substitution and exports opportunities
• Honeywell Automation has a wide product portfolio in environmental and combustion controls and provides engineering services in
Honeywell the field of automation and control to global clients.
35%
Automation • Honeywell would continue to benefit from increasing adoption of automation technologies such as AI, IOT, Cloud and Industrial
Software across India and would be a key beneficiary of improving manufacturing outlook for the country.
10Y Rationale
Company Name
CAGR
• Major player in white cement industry with a strong brand recall
J.K Cement • Strategically used cashflows of white cement business to grow grey cement capacity while minimizing the debt
34%
• Increased capacity by 3x in last 10 years from 5 mnt to 15 mnt. Capacity addition in most attractive regions has resulted in higher than
industry volume and earnings growth
• The most trusted food brand with household names like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold
Britannia • With change in management in 2013, company witnessed sharp growth in revenue and significant improvement in profitability which has
Industries 34% led to significant rerating of the company
• Britannia is transforming itself from biscuits company to total foods company with sharp focus on premiumization and improving reach
across India
Cholamandalam • It has grown to become 10th largest NBFC in India offering vehicle finance, home loans, home equity loans and SME loans with deep
Investment & Finance expertise in underwriting for less-banked segments
33%
• Chola has more than 80% of its branches in tier 2 and beyond and Chola derives its strength from its long history of financing First Time
Borrowers and New to Credit customers in these markets.
• It has deep domain experience in Insurance, Travel and Hospitality sectors. Client relationships in these sectors are over 10 years and
company is one of the top integration and digital partner of choice for its customers.
Coforge Ltd. 30% • Over the last few years, post change in top management, it has been able to improve on growth and margins materially.
• Growth drivers: a) healthy order book backed by consistent large deal wins; b) Partnerships with large players in cloud like Microsoft Azure,
Google cloud, AWS and partnering with product start-ups to drive new age technology growth
Investors looking for one stop Risk aware equity investors with Apt investment vehicle for SIP
solution of aggressive equity fund an investment horizon of 5 years investments to achieve market
for long term and above cap based diversified allocation
Fund Manager Mahesh Patil and Dhaval Shah for Equity securities, Harshil Suvarnkar for Debt securities, Vinod Bhat for Overseas Investments
Scheme Type An open ended equity scheme investing across large cap, mid cap & small cap stocks
The objective of the scheme is to achieve long term growth of capital, at commensurate levels of risk through a diversified research based
investment in Large, Mid & Small cap companies.
Investment Objective
The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.
Scheme Benchmark Nifty 500 Multicap 50:25:25 TRI
Equity & Equity related instruments across large, mid and small cap companies*: 80% - 100%.
Debt and Money Market Instruments: 0-20%.
Asset Allocation
*The Scheme will invest a minimum of 25% of total assets each in Large, Mid and Small Cap stocks
Regular Plan and Direct Plan; Each of the above (Regular and Direct) Plans under the scheme will have the following Options: Payout of Income
Plans & Options
Distribution cum Capital Withdrawal Option, Growth Option
Entry Load : NIL; | Exit Load : For redemption / switch-out of units within 365 days from the date of allotment: 1.00% of applicable NAV.
Entry & Exit Load
For redemption / switch-out of units after 365 days from the date of allotment: Nil
NFO Open Date 19th April 2021
NFO Close Date 3rd May 2021
Note: For details, refer SID/KIM of the scheme.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them
This 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. In the
preparation of the material contained, Aditya Birla Sun Life AMC Limited (“ABSLAMC”) has used information that is publicly available including
information developed in-house. Information gathered and material used in this document is believed to be from reliable sources. ABSLAMC
however does not warrant the accuracy, reasonableness and / or completeness of any information. Further the opinions expressed and facts
referred to in this document are subject to change without notice and ABSLAMC is under no obligation to update the same. While utmost care
has been exercised, ABSLAMC 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 ABSLAMC. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation
of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s).
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.