Investment Strategy Report

October 2021
 Table of Contents Slide No.
I Update on Oil & Gas Sector and ETF Flows 3-6
II Model Portfolios & Returns – Direct Equity 7-10
III Mutual Fund Recommendations 11
A Recommended Equity Mutual Funds 12
B Recommended Debt Mutual Funds 13
C Other Relevant Categories 14
D Model Portfolios & Returns – Mutual Funds 15-20
IV Non-MF Product Recommendations 21-35
A PMS 22-33
B Unlisted Shares 34
C Bonds 35
Disclaimer 36

2
Update on Oil & Gas Sector and
ETF Flows

3
Oil & Gas - APM gas price hiked, as expected
Domestic gas price hiked by 62% YoY in 2HFY22 APM price rise driven by spike in international gas prices

HPHT pricing has been raised by 51% YoY to US$6.1/mmbtu APM gas dominant in Indian production

APM: Administrative Price Mechanism, HPHT: high-pressure, high-temperature

Note: IIFL Institutional Research

4
Oil & Gas – Upstreams to benefit
Bulk of ONGC and OIL gas is APM gas IGL recently hiked CNG prices; more hikes required to maintain Ebitda
spread

CGDs expected to maintain strong Ebitda spread CNG to offer savings of ~55-70% vs diesel and petrol, even after price hikes

CGD: City Gas Distribution, CNG: Compressed Natural Gas

Note: IIFL Institutional Research

5
ETFs – Domestic Funds Accelerating

Note: IIFL Institutional Research

6
Model Portfolios – Direct Equity

7
 Model Portfolios – Direct Equity
Investment Objective & Portfolio Strategy - Aggressive portfolio targets above market returns using high beta and midcap ideas. Moderate portfolio uses
Multi-cap approach to reduce volatility. Conservative portfolio is built with objectives of less volatility and capital protection.

Aggressive Allocation (%) Moderate Allocation (%) Conservative Allocation (%)

Axis Bank 8 ABB India 8 NHPC 8
Gujarat Gas 7 ICICI Bank 7 Gujarat State Petronet 7
Crompton Greaves Consumer Electricals 8 Infosys 7 TCS 8
ICICI Bank 8 HCL Technologies 8 SBI Life 7
Persistent Systems 9 Cipla 7 Hero Motocorp 8
Larsen & Toubro 8 State Bank of India 8 HDFC Bank 9
SRF 9 JB Chemicals & Pharmaceuticals 8 ICICI Lombard General 9
Deepak Nitrite 8 Bharat Electronics 7 ITC 7
SBI Life Insurance Company 9 Eicher Motors 8 Tube Investments 7
Cummins India 9 Reliance Industries 7 Dabur India 8
Sudarshan Chemicals 8 Ashok Leyland 8 Reliance Industries 7
Tata Chemicals 9 ACC 9 Cipla 8
-- -- Emami 8 Larsen & Toubro 7
Total 100 Total 100 Total 100
Risk Reward Statistics Risk Reward Statistics Risk Reward Statistics
Portfolio Beta 0.91 Portfolio Beta 0.89 Portfolio Beta 0.71
Sharpe Ratio 2.38 Sharpe Ratio 1.75 Sharpe Ratio 1.27
Portfolio Std. Deviation 33.97 Portfolio Std. Deviation 30.48 Portfolio Std. Deviation 25.88

8
Model Portfolio - Returns
Absolute % Returns CAGR % Return Valuation Multiples (12m Forward)
Portfolios/Index 6M 1 Yr 2 Yr Since Inception P/E P/BV
Aggressive 35.5 114.3 47.3 25.3 34.6 5.9
Moderate 25.1 58.3 36.4 21.1 30.4 5.4
Conservative 13.9 33.7 20.8 10.9 31.5 5.7
NIFTY 50 19.9 56.6 23.9 16.1 22.3 3.3

Aggressive NIFTY Moderate NIFTY Conservative NIFTY

285 245 205

265 225
185
245
205
225 165
185
205
185 165 145

165 145
125
145
125
125
105
105
105
85 85 85
Feb-17 Sep-21 Feb-17 Sep-21 Feb-17 Sep-21

Source: ACE Equity, IIFL Research, returns as on Sep 30, 2021

9
Smallcase Portfolios Index
Sr. No. Name Link to Buy

1 Nayi Shuruaat with IIFL Nayi Shuruaat with IIFL

2 IIFL Aggressive Portfolio IIFL Aggressive Portfolio

3 IIFL BA 2X3 Portfolio IIFL BA 2X3 Portfolio

4 IIFL Moderate Portfolio IIFL Moderate Portfolio

5 IIFL Covid-19 Resilient 2.0 Portfolio IIFL Covid-19 Resilient 2.0 Portfolio

6 IIFL New Year Picks 2021 IIFL New Year Picks 2021

7 IIFL Budget 2021 Highfliers IIFL Budget 2021 Highfliers

8 Sanjiv Bhasin's 2020 Diwali Picks Portolio Sanjiv Bhasin's 2020 Diwali Picks Portfolio

9 IIFL Royal Mint: BFSI IIFL Royal Mint: BFSI

10 IIFL QPS IIFL QPS

12 Sanjiv Bhasin's Blockbuster Portfolio Sanjiv Bhasin's Blockbuster Portfolio

11 IIFL Conservative Portfolio IIFL Conservative Portfolio

10
Mutual Fund
Recommendations

11
 Recommended Equity Mutual Funds
Returns (%) Asset Allocation (%) Recommended
Scheme Name AUM (₹cr)
3Y 5Y 10 Y Large Cap Mid Cap Small Cap Others Horizon
Large Cap / Large & Mid Cap
Mirae Asset Large Cap Fund(G) 29,425 18.6 16.8 18.1 80.5 12.4 2.6 4.4 5+ Years
Canara Rob Bluechip Equity Fund(G) 4,272 21.5 17.3 15.6 85.4 9.9 -- 4.7 5+ years
Kotak Equity Opp. Fund(G) 7,827 20.7 15.7 16.8 51.4 40.6 4.5 3.5 5+ Years
Focused
Axis Focused 25 Fund(G) 19,736 20.9 19.0 -- 84.7 7.6 -- 7.6 5+ Years
IIFL Focused Equity Fund(G) 2,285 27.9 18.4 -- 66.4 15.0 11.9 6.7 5+ Years
Flexi Cap
Aditya Birla SL Flexi Cap Fund(G) 15,677 19.7 14.8 17.8 66.0 20.3 10.0 3.7 5+ Years
DSP Flexi Cap Fund(G) 6,744 24.1 17.1 16.1 59.1 26.4 11.2 3.2 5+ Years
HDFC Flexi Cap Fund(G) 25,541 16.9 14.5 14.9 74.1 14.0 7.9 3.9 5+ Years
Value
HDFC Capital Builder Value Fund(G) 5,278 14.6 13.9 15.7 69.5 13.9 14.6 2.0 5+ Years
UTI Value Opp. Fund(G) 6,545 19.2 15.0 14.4 68.2 19.9 9.3 2.6 5+ Years
Mid Cap & Small Cap
Kotak Emerging Equity Fund(G) 15,709 25.6 17.6 21.2 11.2 69.4 14.9 4.5 7+ Years
L&T Midcap Fund(G) 6,948 17.5 15.3 19.6 8.4 76.8 13.5 1.3 7+ Years
DSP Midcap Cap Fund(G) 13,774 22.4 16.0 18.8 16.5 67.5 12.6 3.4 7+ years
Nippon India Small Cap Fund(G) 16,633 27.2 22.2 24.7 8.3 19.2 70.4 2.1 7+ years

Note: Returns are CAGR; AUM as on Aug 2021; Returns as on Sep 30, 2021, Others include debt / overseas investments
Source: ACE
12
 Recommended Debt Mutual Funds
Returns (%) Rating Profile (%) Recommended
Scheme Name AUM (₹cr) YTM(%) Risk
1Y 3Y 5Y AAA AA Sovereign Horizon
Overnight / Liquid
HDFC Liquid Fund(G) 54,450 3.1 5.0 5.7 53.2 -- 39.3 3.3 Moderate 3+ Months
ICICI Pru Liquid Fund(G) 41,512 3.2 5.0 5.8 46.8 -- 37.2 3.3 Moderate 3+ Months
Money Market / Low Duration
ICICI Pru Money Market Fund(G) 12,759 3.8 6.3 6.6 61.8 -- 31.8 3.6 Moderate 12+ Months
Axis Treasury Advantage Fund(G) 11,139 4.4 7.1 6.9 51.8 10.7 35.2 4.0 Low to Moderate 12+ Months
Corporate Bond / Short Term
Axis Corp Debt Fund(G) 5,425 5.6 7.8 -- 70.5 -- 25.7 4.8 Low to Moderate 36+ Months
IDFC Corp Bond Fund(G) 21,012 6.1 8.6 7.5 71.3 -- 25.9 4.9 Moderate 36+ Months
SBI Short Term Debt Fund(G) 20,997 4.8 8.0 7.1 47.7 8.7 36.8 4.6 Moderate 36+ Months
Floater / Credit Risk
HDFC Floating Rate Debt Fund(G) 22,077 5.9 7.8 7.4 56.8 12.9 24.2 4.7 Moderate 36+ Months
HDFC Credit Risk Fund(G) 8,311 10.1 9.4 7.9 23.2 51.7 7.8 6.7 High 36+ Months
ICICI Pru Credit Risk Fund(G) 7,926 7.8 8.9 8.0 6.6 58.5 7.9 7.1 High 36+ Months
Roll Down Funds (Long Term)
Axis Dynamic Bond Fund(G) 1,803 6.4 10.1 7.8 66.2 -- 29.4 6.7 Moderate 8-10 years
L&T Triple Ace Bond Fund(G) 8,302 6.3 10.8 7.5 68.6 -- 27.2 6.4 Moderate 8-10 years

Nippon India Dynamic Bond(G) 2,809 5.9 8.5 6.4 -- -- 94.8 6.7 Moderate 8-10 years

Note: Returns are CAGR; AUM as on Aug 2021; Returns as on Sep 30, 2021
Source: ACE
13
 Other Relevant Categories
Returns (%) Asset Allocation (%) Recommended
Scheme Name AUM (₹cr)
3Y 5Y 10 Y Large Cap Mid Cap Small Cap Others Horizon
Equity Linked Savings Schemes (ELSS)
Mirae Asset Tax Saver Fund(G) 9,401 24.1 21.0 -- 67.3 17.8 9.0 5.9 5+ Years
DSP Tax Saver Fund(G) 9,675 22.7 16.4 18.5 66.4 22.3 10.5 0.8 5+ Years
Sectoral / Tactical Themes
ICICI Prudential Manufacturing Fund(G) 618 -- -- -- 53.8 25.1 13.7 7.3 8-10 Years
Nippon India Power & Infra Fund(G) 1,599 19.1 15.0 10.5 51.2 23.0 22.0 3.8 8-10 Years
SBI Banking & Financial Services Fund(G) 2,889 18.5 16.5 -- 82.9 8.2 6.1 2.8 8-10 Years
Invesco India PSU Equity Fund(G) 315 19.0 11.6 10.6 45.2 33.9 19.0 1.9 8-10 Years
Hybrid / Arbitrage
ICICI Prudential Balanced Advantage Fund(G) 34,687 13.2 11.1 13.6 59.6 5.4 1.2 33.8 3+ Years
Mirae Asset Hybrid Equity Fund(G) 5,949 17.0 14.7 -- 49.3 11.6 6.2 32.9 3+ Years
Edelweiss Arbitrage Fund(G) 6,428 5.0 5.4 -- 43.6 18.1 2.7 35.6 3+ Months
ETFs / Index Funds / International
SBI-ETF Sensex 56,618 17.9 16.2 -- 100.0 -- -- 0.0 5+ Years
ICICI Pru Nifty ETF 3,018 18.4 16.6 -- 100.0 -- -- 0.0 5+ Years
SBI-ETF Gold 2,354 13.8 6.7 4.8 -- -- -- 100.0 3+ Years
UTI Nifty Index Fund(G) 4,854 18.2 16.4 14.3 100.0 -- -- 0.0 5+ Years
ICICI Prudential Nifty Next 50 Index Fund(G) 1,535 15.4 13.2 15.6 89.3 10.5 -- 0.2 5+ Years
Motilal Oswal S&P 500 Index Fund(G) 2,058 -- -- -- -- -- -- 100.0 5+ Years
Note: Returns are CAGR; AUM as on Aug 2021; Returns as on Sep 30, 2021, Others include debt / overseas investments
Source: ACE
14
Model Portfolios – Mutual Fund
Very Conservative Risk Profile

 The objective of the strategy is to generate risk-adjusted capital appreciation for investors from a portfolio of debt mutual fund schemes.
Primarily to avoid any potential loss and preserve capital.
 The strategy is to constitute a portfolio of debt funds across different durations and endeavors to tactically manage allocation within the debt
schemes based on changes in macroeconomic scenario.

CAGR % Return
Allocation
Sr. No Scheme Name
(%)
1 Yr 3 Yr 5 Yr 10 Yr

1 ICICI Pru Balanced Advantage Fund(G) 15.0 28.3 13.2 11.1 13.6

2 HDFC Floating Rate Debt Fund(G) 25.0 5.9 7.8 7.4 8.4

3 SBI Short Term Debt Fund(G) 25.0 4.8 8.0 7.1 8.2

4 Axis Treasury Advantage Fund(G) 25.0 4.4 7.1 6.9 8.0

5 Edelweiss Arbitrage Fund(G) 10.0 3.7 5.0 5.4 --

Total 100.0

Note: Returns for 1 year are absolute; Returns greater than 1 year are CAGR; Returns as on Sep 30, 2021
Source: ACE

16
Conservative Risk Profile

 The objective of the strategy is to generate risk-adjusted capital appreciation for investors from a portfolio of debt oriented mutual fund
schemes. Primarily to avoid any potential loss and preserve capital.
 The strategy takes a concentrated position in debt funds across different durations and endeavors to tactically manage allocation within debt
schemes depending on changes in macroeconomic scenario.

CAGR % Return
Allocation
Sr. No Scheme Name
(%)
1 Yr 3 Yr 5 Yr 10 Yr

1 IIFL Focused Equity Fund(G) 15.0 63.3 27.9 18.4 --

2 HDFC Floating Rate Debt Fund(G) 25.0 5.9 7.8 7.4 8.4

3 SBI Short Term Debt Fund(G) 20.0 4.8 8.0 7.1 8.2

4 Axis Treasury Advantage Fund(G) 20.0 4.4 7.1 6.9 8.0

5 ICICI Pru Balanced Advantage Fund(G) 20.0 28.3 13.2 11.1 13.6

Total 100.0

Note: Returns for 1 year are absolute; Returns greater than 1 year are CAGR; Returns as on Sep 30, 2021
Source: ACE

17
Moderate Risk Profile

 The objective of the strategy is to generate risk-adjusted capital appreciation for investors from a portfolio of equity oriented mutual fund
schemes with a moderately high risk appetite. Primarily to beat inflation without having too much volatility.
 The strategy takes a balanced position in mutual funds across key asset classes and endeavors to strategically maintain balance between
different categories depending on changes in the business cycles.

CAGR % Return
Allocation
Sr. No Scheme Name
(%)
1 Yr 3 Yr 5 Yr 10 Yr

1 Mirae Asset Large Cap Fund(G) 15.0 54.3 18.6 16.8 18.1

2 IIFL Focused Equity Fund(G) 15.0 63.3 27.9 18.4 --

3 HDFC Floating Rate Debt Fund(G) 25.0 5.9 7.8 7.4 8.4

4 ICICI Pru Balanced Advantage Fund(G) 20.0 28.3 13.2 11.1 13.6

5 Axis Corp Debt Fund(G) 25.0 5.6 7.8 -- --

Total 100.0

Note: Returns for 1 year are absolute; Returns greater than 1 year are CAGR; Returns as on Sep 30, 2021
Source: ACE

18
Aggressive Risk Profile

 The objective of the strategy is to generate substantial wealth in the long run for investors from a portfolio of aggressive equity oriented mutual
fund schemes
 The strategy takes position in mutual funds across different market-cap and themes and endeavors to strategically change allocation within
different categories depending on changes in the business cycles.

CAGR % Return
Allocation
Sr. No Scheme Name
(%)
1 Yr 3 Yr 5 Yr 10 Yr

1 Mirae Asset Large Cap Fund(G) 15.0 54.3 18.6 16.8 18.1

2 UTI Value Opp. Fund(G) 20.0 61.6 19.2 15.0 14.4

3 IIFL Focused Equity Fund(G) 15.0 63.3 27.9 18.4 --

4 ICICI Pru Balanced Advantage Fund(G) 25.0 28.3 13.2 11.1 13.6

5 HDFC Floating Rate Debt Fund(G) 25.0 5.9 7.8 7.4 8.4

Total 100.0

Note: Returns for 1 year are absolute; Returns greater than 1 year are CAGR; Returns as on Sep 30, 2021
Source: ACE

19
Very Aggressive Risk Profile

 The objective of the strategy is to generate substantial wealth in the long run for investors from a portfolio of very aggressive equity oriented
mutual fund schemes
 The strategy takes a concentrated position in mid cap, small cap, sector and thematic schemes and endeavors to strategically change
allocation within different themes depending on changes in the business cycles.

CAGR % Return
Allocation
Sr. No Scheme Name
(%)
1 Yr 3 Yr 5 Yr 10 Yr

1 HDFC Flexi Cap Fund(G) 20.0 76.0 16.9 14.5 14.9

2 UTI Value Opp. Fund(G) 20.0 61.6 19.2 15.0 14.4

3 ICICI Pru Balanced Advantage Fund(G) 25.0 28.3 13.2 11.1 13.6

4 Mirae Asset Large Cap Fund(G) 20.0 54.3 18.6 16.8 18.1

5 Kotak Emerging Equity Fund(G) 15.0 72.6 25.6 17.6 21.2

Total 100.0

Note: Returns for 1 year are absolute; Returns greater than 1 year are CAGR; Returns as on Sep 30, 2021
Source: ACE

20
Non-MF Product
Recommendations

21
 IIFL Multicap PMS

The objective is to generate long term capital appreciation for investors from a
portfolio of equity & equity related securities. The portfolio manager aims to achieve
the investment objective by:-

Investing in a concentrated basket of 20-25 stocks with a bias towards large cap
stocks
Actively use sector rotation to align with changes in business cycles to generate
Alpha
Portfolio Manager shall follow the SCDV framework for portfolio construction

Investment Philosophy – SCDV Framework

 Cyclical (PAT>15%, ROE <15%) – Companies/ Sectors that show high growth but are
affected by market cycles, hence need to be timed for entry and exit
 Secular (PAT>15%, ROE >15%) – High growth companies / sectors which show
consistent growth across market cycles
 Defensive (PAT<15%, ROE >15%) – Companies / sectors that show consistent stable
growth across market cycles
 Value Trap (PAT<15%, ROE <15%) – Companies/ sectors that are at attractive
valuation but do not show commensurate growth.

22
 IIFL Multicap PMS
Performance
Strategy/Benchmark 1 Month (%) 3 Month (%) 6 Month (%) 1 Year (%) 2 Year (%) 3 Year (%) Since Inception

IIFL Multicap PMS 4.4 13.3 22.5 58.2 33.5 21.5 21.6
S&P BSE 200 TRI 7.4 10.3 19.6 55.4 28.1 14.97 13.67
Inception: Dec 2014 Returns as on 31st Aug 2021

Mitul Patel, Strategy Manager for IIFL Multicap PMS, has an overall experience of 14 years across areas of Equity Research, Fund Management, Private
Equity Advisory and Investment banking. Apart from managing the strategies of Portfolio Management Services offered by IIFL Asset Management Limited
(IIFL AMC), he also heads research for listed equities and is responsible for generating investment ideas across sectors and market capitalizations. He has
been instrumental in setting up the research desk at IIFL AMC and also directly tracks companies in the Chemicals, Auto and Pharma sectors. Prior to
joining IIFL AMC, Mitul spent 7 years with Laburnum capital, a boutique investment management firm.

Key Terms
Management fee 2.50% per annum
Brokerage 0.12% of the transaction value (plus applicable statutory levies)
Other charges Statutory/Other charges as applicable (STT/Demat/Custodial Charges/Service Tax, etc.)
Exit fees 1st year: 3%; 2nd year: 2% ; 3rd year: 1% ; Thereafter: Nil
Recommended Investment horizon 36 months and above

Taxation As per equity taxation

Returns less than 1 year are absolute; Returns greater than 1 year are CAGR 23
IIFL Phoenix Portfolio PMS
IIFL Phoenix Portfolio intends to create a portfolio of such businesses with an established track record, which have the potential to see a sharp
improvement in fundamentals in the future key beneficiaries of the secular growth drivers

SCDV Framework Investment Philosophy

Targeted Investment Zone: Proactive identification of companies in which a
business turnaround is about to occur or has occurred, and there is improved
visibility on business fundamentals.
Value Creation: After a successful turnaround, sustenance of turnaround
factors may further lead to compounding of value, creating new highs for the
business

24
 IIFL Phoenix Portfolio PMS

Performance
Strategy/Benchmark 1 Month (%) 3 Month (%) 6 Month (%) 1 Year (%) 2 Year (%) 3 Year (%) Since Inception
IIFL Phoenix PMS 1.40 10.27 19.50 - - - 21.01
S&P BSE 200 TRI 7.4 10.3 19.6 - - - 13.67

Returns as on 31st Aug 2021

About the Fund Manager: Mitul Patel, Strategy Manager for IIFL Multicap PMS, has an overall experience of 14 years across areas of Equity Research, Fund
Management, Private Equity Advisory and Investment banking. Apart from managing the strategies of Portfolio Management Services offered by IIFL Asset Management
Limited (IIFL AMC), he also heads research for listed equities and is responsible for generating investment ideas across sectors and market capitalizations. He has been
instrumental in setting up the research desk at IIFL AMC and also directly tracks companies in the Chemicals, Auto and Pharma sectors. Prior to joining IIFL AMC, Mitul
spent 7 years with Laburnum capital, a boutique investment management firm.

Key Terms
Management fee As per term sheet signed
Brokerage 0.12% of the transaction value (plus applicable statutory levies)
Other charges Statutory/Other charges as applicable(STT/Demat/Custodial Charges/Service Tax, etc.)
Exit fees As per term sheet signed
Recommended Investment horizon 36 months and above

Taxation As per equity taxation

Minimum Investment Amount Rs.50 lakhs

Returns less than 1 year are absolute; Returns greater than 1 year are CAGR 25
 Marcellus Consistent Compounders PMS
 Invests in a concentrated portfolio of maximum 20 stocks of heavily moated companies, that can drive healthy earnings compounding over long periods with
very little volatility
 Large Cap portfolio with a focus companies which have economic moats and are leaders in their respective industry known to compound wealth over long
horizon while not taking too many risks – Key steps in identifying consistent compounders being:
 Identify Companies with clean accounts: using 10 accounting checks (ratios) of over six years consolidated financial
 Identify Companies with superior capital allocation: using a twin-filter criteria of double digit Y-o-Y Revenue Growth & Return on Capital > Cost of
Capital, each year for 10 years in a row
 Amongst the companies which pass the above steps – identify those with barriers to entry: in-depth bottom-up research of 10-15 stocks which
consistently compound earnings
 Being patient with a portfolio helps cut out ‘noise’ of trying to time entry / exit decisions. With no churn, their filter based approach also reduces transaction
costs.

Timing entry / exit from CCP does not make sense, while trying to time Index might make a lot of sense
Type of Company Downside Long Term Does Timing Investment Entry Price Exit Price (after Performance
Earnings make sense? 10 yrs) (CAGR)
Growth
Sensex (pre-2008 crash) 100 300 12%
Mediocre Quality High Low Yes
Sensex (bottom of the 30 300 26%
Company
crash)
High Quality Low High No CCP (pre-2008 crash) 100 1000 26%
Company
CCP (bottom of the crash) 70 1000 30%

26
 Marcellus Consistent Compounders PMS
Performance
Strategy/Benchmark 1 Month (%) 3 Month (%) 6 Month (%) 1 Year (%) 2 Year (%) Since Inception
(%)
Marcellus CCP 1.2 11.4 23.4 57.4 30.8 29.7

Nifty 50 TRI 2.8 12.1 19.9 56.6 23.9 18.5

Inception – December 2018 Returns as on 30 Sept,2021
About the Investment Manager
Marcellus Investment Managers was founded in 2018 and currently has US$300m in assets under management and advisory. The founders have worked
together for the past 15years:
• Saurabh Mukherjea, CFA – Chief Investment Officer; former CEO of Ambit Capital where assets under advisory were $800mn. MSc in Economics
from London School of Economics; Member of SEBI’s Asset Management Advisory Committee.
• Rakshit Ranjan, CFA, Portfolio Manager at Marcellus formerly, Portfolio manager of Ambit Capital's Coffee Can PMS, which was one of India’s Top
Performing Equity products during 2018. He is a B.Tech from IIT (Delhi)

KEY TERMS

Minimum Investment 50 Lakh

Management fee 2.0% per annum (Fixed)
Variable/Performance Fee Nil
Exit fees Nil
Recommended Investment horizon 36 months and above
Taxation As per equity taxation

*Returns less than 1 year are absolute; Returns greater than 1 year are CAGR 27
 White Oak India Pioneers Equity Portfolio PMS
Investment Philosophy:

 Believe outsized returns are earned over time by investing in great businesses at attractive values
 A great business is one that is well managed, has a scalable long-term opportunity, and generates superior returns on incremental capital along with a
strong track record of execution and governance
 Look for companies where the estimate of cash flow or earnings, and hence intrinsic value, is significantly different from what the market has priced into the
stock. Valuation is attractive when the current market price is at a substantial discount to intrinsic value
 Tend to focus on economic free cash flows instead of accounting cash flows and ascribe terminal value based on greatness of business

Investment Objective

 Achieve absolute performance through bottom-up, fundamental

research
 Have a balanced portfolio of select companies agnostic to the
benchmark
 Focus on ensuring that alpha generation is purely a function of
stock selection
 Aim to consciously avoid market timing or sector rotation or
other such top-down bets

28
 White Oak India Pioneers Equity Portfolio PMS
Performance
Strategy/Benchmark 1 Month (%) 3 Month (%) 6 Month (%) 1 Year (%) 2 Year (%) Since Inception
(%)
White Oak India Pioneer PMS Strategy 1.5 10.7 24.3 65.5 36.1 29.6
BSE 500 TRI 3.4 11.9 23.0 63.1 28.6 21.4
Inception date – April 2019 Returns as on 30 Sept, 2021

Investment Manager
The fund house – “White Oak Capital Management”, is a Mumbai-based boutique investment management and investment advisory firm founded by Mr.
Prashant Khemka, former CIO and Lead Portfolio Manager of India Equity and Global Emerging Markets Equity at Goldman Sachs Asset Management.
Prashant founded White Oak Capital Management in June 2017. He was the CIO and lead portfolio manager of GS India Equity at Goldman Sachs Asset
Management (GSAM) during March 2007 to March 2017, and also for the Global Emerging Markets (GEM) Equity during June 2013 to March 2017.
Currently, the firm manages an AUM of approximately ~USD 3.8 Bn (INR 30k crores) in long only equity strategies from both offshore and domestic
investors.
KEY TERMS
Minimum Investment 50 Lakh
Management fee 2.50% per annum
Exit fees Nil
Recommended Investment horizon 36 months and above
Taxation As per equity taxation

Returns less than 1 year are absolute; Returns greater than 1 year are CAGR 29
 Renaissance Investment Managers PMS
Investment Philosophy
Renaissance invests into good quality growth businesses that can deliver superior growth over the medium term to long term. The Investment approach
follows the SQGARP (Sustainable Quality Growth at Reasonable Price) framework. The objective is to deliver superior risk-adjusted returns over medium
term.

Renaissance Opportunities Portfolio

 It’s a Concentrated Portfolio of 15 stocks built on best opportunity
basis with absolute return focus
 It’s a Large Cap Portfolio with Blend of Growth & Value within the
SQGARP framework
 Due to concentrated nature of the portfolio, it’s also a high conviction
portfolio of good business that can deliver superior Growth over
medium term
 Portfolio Companies are leaders in their respective business

Renaissance Alpha Portfolio

 High Quality, High Growth Focused Portfolio of 15-20 stocks
 Strict stock selection filters around Growth, Size (Market Cap), Free
Cash Flow generation, and Leverage to ensure that the portfolio is
growth focused with low risk
 Portfolio Companies are leaders in the business with high growth
and low leverage

30
 Renaissance Investment Managers PMS
Performance
Strategy/Benchmark 1 Month (%) 6 Month (%) 1 Year (%) 3 Year (%) Since Inception
Renaissance Opportunities Portfolio 6.2 21.9 67.3 17.2 -
Nifty 200 3.3 21.5 50.3 17.6 -
Renaissance Alpha Portfolio 4.8 23.4 41.1 - 28.8
Nifty 50 2.8 19.9 56.6 - 23.2
Inception: Opportunities Portfolio PMS: Jan 2018 & Alpha Portfolio PMS: Jan 2020 Returns as on 30 Sept, 2021

Investment Manager
Renaissance Investment Managers is founded by Mr. Pankaj Murarka. He has over 24 yrs. of experience in Equities Fund Management and has had an
excellent track record of fund performance over the course of his career. Pankaj has worked with various institutions over the course of his career including
UTI Mutual Fund, Rare Enterprise, Merrill Lynch and Axis Mutual Fund. In his last role, Pankaj was the part of the founding team and CIO for Axis Mutual
Fund. He has won various awards for his fund performance over the course of his career. Renaissance has built a good team of Investment professionals
with deep experience with leading institutions in India.
KEY TERMS

Minimum Investment 50 Lakh

Management fee As per Termsheet signed

Exit fees 1% within 2 years; Nil thereafter

Recommended Investment horizon 36 months and above

Taxation As per equity taxation

Returns less than 1 year are absolute; Returns greater than 1 year are CAGR 31
Other PMS Offerings

PMS Name Inception Date Benchmark 1 Month 3 Month 6 Month 1 Year 2 Year 3 Year Since
Inception

Alchemy High Growth May 2002 PMS 1.1 12.9 25.8 52.5 13.4 8.8 16.6

BSE 500 3.3 11.5 22.1 61.2 27.1 18.3 16.6

Alchemy High Growth Dec 2008 PMS 5.2 17.7 35.6 75.2 23.5 17.3 21.8
Select Stock
BSE 500 3.3 11.5 22.1 61.2 27.1 18.3 16.6

Alchemy Leaders Dec 2006 PMS 1.4 20.5 29.2 53.8 14.1 12.4 12.4

Nifty 50 2.8 12.1 19.9 56.6 23.9 17.2 10.9

ASK ISP Jan 2010 PMS 1.1 11.2 24.7 54.5 22.0 20.1 17.8

BSE 500 3.3 11.5 22.1 61.2 27.1 18.3 16.6

ASK IEP Jan 2010 PMS 2.1 14.1 24.3 65.2 27.7 22.8 20.2

BSE 500 3.3 11.5 22.1 61.2 27.1 18.3 16.6

*Returns less than 1 year are absolute; Returns greater than 1 year are CAGR. As as on 30 th Sept,2021. 32
Other PMS Offerings

PMS Name Inception Benchmark 1 Month 3 Month 6 Month 1 Year 2 Year 3 Year Since
Date Inception
Sundaram S.E.L.F. June 2010 PMS 3.8 17.1 36.5 76.9 42.0 30.4 20.0

Nifty Midcap 6.9 12.7 28.8 78.9 37.7 21.0 12.4

Sundaram SISOP Feb 2010 PMS 1.7 14.1 25.5 65.4 32.2 26.5 20.0

Nifty 500 3.4 11.7 22.2 61.1 26.9 18.2 11.9

MOSL NTDOP Aug 2007 PMS 3.9 11.7 20.8 56.7 22.6 15.3 16.5

Nifty 500 3.4 11.7 22.2 61.1 26.9 18.2 11.7

MOSL IOP Feb 2010 PMS 3.8 10.7 23.5 53.2 23.2 14.4 10.1

Nifty Smallcap 100 6.2 12.3 34.9 88.7 40.8 22.2 11.6

MOSL Value Feb 2003 PMS 0.9 7.3 15.9 47.9 17.35 16.70 20.27

Nifty 50 2.8 12.1 19.9 56.6 23.9 17.2 17.9

Abakkus Emerging Aug 2020 PMS 2.9 10.8 46.5 109.9 - - 92.2
Opportunities Approach
BSE Midcap 5.9 12.1 25.1 71.7 - - 59.8

*Returns less than 1 year are absolute; Returns greater than 1 year are CAGR. As on 30 th Sept, 2021 33
 Unlisted Shares

Many young companies grow much faster than mature companies due to their lower base, and hence tend to significantly
outperform the benchmark returns. However, a lot of this growth happens before the company goes public with an IPO. Hence,
participating in such companies in the Growth / Pre-IPO stage can provide superior returns to the investor.

Absolute % Return

Stock 3M 6M 9M Offer Price#

Chennai Super Kings 21.33 40.00 89.72 95.62

HDB Financials -0.23 -4.32 13.98 929.91
HDFC Securities 52.17 56.42 69.82 14,710.50
Hero Fincorp 1.04 -5.37 24.45 1,019.23
Motilal Oswal Home Finance -3.58 -7.18 44.68 12.92
Reliance Retail 63.55 82.29 85.64 2,758.22
TATA Technologies 57.90 85.31 161.06 2,837.03

*Prices are indicative and subject to availability and market movement. Please confirm price as well as availability before finalizing any deal. Price and Returns as on 5th, Aug, 2021

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 Bonds
Taxable Bonds
Security Coupon Maturity Interest Payment Yield# (%) Rating
NHAI Ltd. 2040 (Secured) 7.03% 14-Dec-40 15-Dec 6.70% AAA BY CRISIL & ICRA
PFC Ltd. 2030 (Unsecured) 7.04% 16-Dec-30 09-Sep 6.75% AAA BY CRISIL & ICRA
PFC Ltd. 2030 (Unsecured) 6.95% 01-Oct-31 01-Oct 6.72% AAA BY CRISIL, ICRA & CARE
FCI (Unsecured) 7.09% 13-Aug-31 16-Aug 6.80% AAA BY CRISIL & CARE
NABARD LTD (Unsecured) 6.92% 29-Sep-36 29-Sep 6.75% AAA BY CRISIL & ICRA

Perpetual Bonds
Security Coupon (%) Call / Put Option Interest Payment Yield# (%) Rating
State Bank of India 7.72% 03-09-2026 03-Sep 7.25% AA+ CRISIL / CARE
Union Bank 8.64% 11-01-2026 11-Jan 8.20% AA by IND & BWR
Indian Bank 8.44% 14-Dec-2025 14-Dec 8.20% AA CARE / AA+ CRISIL
Tax Free Bond
Interest Tax
Issuer Coupon (%) Tenure Lock-In Option Yield
Payment Treatment
Interest Tax-free But Capital 4.35%
7.35% NHAI Tax- Non- 01-April,
NHAI 10 No Lock-In Appreciation Taxable as per
free 2031 Cumulative Annually
slab

#Yields as on Oct 6rth 2021 *Bond yields are indicative and subject to availability and market movement. Please confirm yields as well as availability before finalizing any deal.

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