classification: confidential - customer shareable

Classification: Confidential - Customer Shareable


Wealth Management Investment Strategy Note

March 2021


Contents

• Post Vaccine : The Consumer Shift

• India Update : Macros & Understanding The Economic Recovery Path

• Global Update

• Relevance Of Gold As A Strategic Asset

• Equity Update

• Fixed Income Update

• Our Portfolio Construction Strategy

• Our Focus Products

Contents• PLI Scheme – A Game Changer?

• India Update : The Economic Recovery Path

• Global Update

• Equity Update

• Fixed Income Update

• Our Portfolio Construction Strategy

• Our Focus Products


Production Linked Incentive (PLI) Scheme


Production-Linked Incentive (PLI) Scheme – An Overview

Source: Invest India

SectorsApproved financial outlay over a five

year period INR Crs

Automobiles & Auto Components 57,042

Mobile Manufacturing and Specified Electronic Components 40,951

Advance Chemistry Cell (ACC) Battery 18,100

Pharmaceuticals drugs 15,000

Telecom & Networking Products 12,195

Food Products 10,900

Textile Products: MMF segment and technical textiles 10,683

IT Hardware 7,325

Critical Key Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients 6,940

Speciality Steel 6,322

White Goods (ACs & LED) 6,238

Electronic/Technology Products 5,000

High Efficiency Solar PV Modules 4,500

Manufacturing of Medical Devices 3,420

Total 204,616

Purpose Of PLI Scheme –

• Objective of scheme - to provide incentives on incremental investment and sales from products manufactured in domestic units, eligibility subject to certain thresholds.

• To reduce India’s dependence on external sources and make India an integral part of the global supply chain

• To ensure efficiencies, create economies of scale, enhance exports

• To establish backward linkages with MSME sector for more inclusive growth and creation of huge employment opportunities

• To incentivize and invite global, capital-rich companies to set up capacities in India

• Credit Suisse estimates that the bulk of this production is likely to be exported and therefore the trade deficit could also shrink by $55 billion


Can PLI Scheme Be A Game Changer For Indian Economy?

Source: Motilal Oswal

As in FY27Incremental Sales Domestic Value Addition

USD Bn. as % of GDP USD Bn. as % of GDP

Mobile 66 1.5% 25 0.6

Autos 16 0.4% 12 0.3

Battery 15 0.3% 4 0.1

Food 13 0.3% 10 0.2

Pharma 4 0.1% 2 0.0

Textile 4 0.2% 3 0.1

Telecom 7 0.2% 4 0.1

Others 19 0.5% 10 0.2

Total 144 3.5% 70 1.6


Automobile And Auto Components – PLI Outlay Of INR 57,024 Crs

CONTRIBUTION TO GDP

GROWTH DRIVERSMEASURES TO BOOST

GROWTHEXPECTED GROWTH

Automobile : 7.1% share in India’s GDP

Auto Components : 2.3% share in India’s GDP

4.3% share in overall exports

India is the world's 4th largest vehicle market

World's largest tractor, two wheeler and three wheeler manufacturer

The sector attracted $24.5 bn FDI during April 2000 - June 2020; accounting for 5.1% of the total FDI inflows

Automobile – Growing income, 'Youngest Nation' by 2025, Vehicle penetration, Expanding R&D hub, Production-Linked Incentive (PLI) Scheme

Auto Components - Emerging global sourcing hub - Proximity to markets such as ASEAN, Europe, Japan and Korea, Cost Competitiveness, favourabletrade policy (100% FDI allowed)

Positive GST impact - Reduction in the overall cost structure of Indian Automobile industry

Voluntary Vehicle Fleet Modernization Programme - Offers tax benefits and discounts on replacing old vehicles with new ones

Low-cost electrical Vehicle - The Government's vision of 100% electrical mobility by 2030

Bharat Stage VI norms by 2020 - Aims to reduce its carbon footprint by 33-35% by 2030

The $118 bn Automobile industry is expected to reach $300 bn by 2026 (2.5X growth)

The $57 bn Auto Components industry in India is expected to grow to $200 bn by 2026 (3.5X growth)

Auto Components industry exports to grow 5X in next 10 years

The EV market is expected to grow at CAGR of 44% between 2020-2027

India is expected to be the world's third-largest automotive market in terms of volume by 2026



Automobile - Running In the Top Gear

Major Automobile Manufacturing Players



Mobile Manufacturing and Specified Electronic Components – Outlay of INR 40,951 Crs

MOBILE MANUFACTURING

SPECIFIED ELECTRONIC

COMPONENTS

REVENUE TO THE GOVT

EXPECTED GROWTH

The international mobile phone manufacturing companies that are approved are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron

Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country

Indian companies including Lava, Bhagwati (Micromax), PadgetElectronics, UTL Neolyncs and OptiemusElectronics are approved by MeitY

6 companies are approved under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync

Growth drivers in consumer electronics

- rising per capita disposable income and private consumption

- rollout of 5G, third largest start up ecosystem

- Make In India and Digital India initiatives

India is a global R&D destination, with 1140+ R&D Centers of MNCs in India employing 900,000+ professionals

The biggest chunk of tax revenue will come from GST which is likely to garner around INR 72,000 crore from INR 4 lakh crore worth of devices produced for the domestic market

INR 10,000 crore is expected from corporate tax, income tax and some miscellaneous receipts

Over the next 5 years, the approved companies under the PLI Scheme are expected to lead to total production of more than INR 10.5 lakh crore

Around 60% of the above will be contributed by exports of the order of INR 6.5 lakh crore

Creation of more than 2 lakh direct employment opportunities in next 5 years, indirect employment of nearly 3 times the direct employment

Domestic Value Addition is expected to grow from the current 15-20% to 35-40% in case of Mobile Phones and 45-50% for electronic components

Source: Ministry of Electronics and IT


Source: Evaluate Pharma, US FDA, PIB

Pharmaceutical Drugs - Outlay of INR 15,000 CrsPotential To Promote Production Of High-Value Products & Increase Value Addition To Exports

Production-Linked incentive scheme for pharmaceutical sector Promote innovation for development of complex, high-tech products

& change India’s image as low-value drug manufacturer & exporter Scheme expected to generate employment, estimated at 20,000 direct

and 80,000 indirect jobs

Is the timing opportune? Huge potential for Orphan Drugs worldwide in next few years – as evidenced by

more than 1.4 ODs designation requests received by FDA per day in 2017 Orphan Drugs expected to reach USD 242 bn. & capture one-fifth of worldwide

prescription sales by 2024 – sector could benefit immensely by creating capacitiesfor such complex molecules which are highly potent

Benefit for India Expected to improve accessibility & affordability of medical products

including orphan drugs to the Indian population Policy to help create global champions out of India by enhancing

manufacturing capabilities, diversifying product mix to complexgenerics, patented drugs and penetrate global value chains

Potential Beneficiaries Large players with strong manufacturing base (Aurobindo, Dr. Reddy’s, Lupin,

Cadila, Cipla, Sun Pharma) and intent to expand will benefit Biopharmaceutical majors like Biocon, Panacea Biotec etc. which focuses on

delivering affordable innovation


Source: Department of Commerce – Export Import Data Bank, PIB

Telecom & Networking Products - Outlay of INR 12,195 CrsPotential To Attract FDI, Incentivize New Manufacturing & Bring Economies Of Scale

Production-Linked incentive scheme for telecom sector Expected production of more than INR 2.4 lakh cr., with exports worth

INR 1.95 lakh cr. over 5 years Scheme expected to offset import of telecom equipment worth more

than INR 50,000 cr.

India's Trade Dynamics (Telecom Equipment Sector)

HS-Code Product DescriptionExports (in INR Crores) Trade Balance (in INR Crores)

FY19 FY20 FY21 (Till Dec) FY19 FY20 FY21 (Till Dec)

851712 Telephones for cellular networks or for other wireless networks 11,396 27,225 14,232 92 19,822 844

851762Machines for reception, conversion & transmission ro regeneration of voice,

images..4,467 3,335 3,289 (33,181) (18,752) (16,895)

851770 Parts of telephone sets, telephones for cellular networks.. 1,804 2,166 1,855 (59,104) (53,873) (35,899)

851769 Apparatus for transmission or reception of voice, images or other data.. 356 285 206 (6,915) (5,300) (2,582)

851711 Line Telephone sets with cordless handsets 40 80 26 (83) (20) (40)

851718 Telephone sets (excluding cordless handsets) such as push button types 64 91 67 (114) (27) (7)

851761 Base Stations 16 7 7 (290) (231) (834)

Total 18,143 33,190 19,681 (99,593) (58,381) (55,414)

Is the timing opportune? Security has become a major concern now - Several countries have banned

Chinese gear makers such as Huawei and ZTE from participating in 5G market– another reason to promote local manufacturing

Upcoming 4G tender by BSNL – a perfect opportunity for firms to expandmanufacturing capacity

Benefit for India Will make India a global hub of manufacturing telecom equipment

including core transmission equipment, 4G/5G Next Generation RadioAccess Network and Wireless Equipment

Policy to drive Intellectual Property (IP) & design-led manufacturing tomake industry globally competitive

Potential Beneficiaries Leading global telecom equipment manufacturers (Cisco, Nokia, Ericsson,

Huawei, Jabil) and contract manufacturers (Flex, Foxconn) - likely to apply Domestic equipment manufacturers – Dixon Technologies, D-Link India, Tejas

Networks, state-owned ITI, GTL Infra, Sterling Technologies, Shyam Telecom


India : Macro Update


Q3 FY21 GDP Growth Review: Economy Claws Back From Technical Recession Into Growth Territory

Source: MOSPI, IDFC FIRST Bank Economics Research

Investments

(+2.6% YoY)

Government

Consumption

(-1.1% YoY)

Private

Consumption

(-2.4% YoY)

Exports

(-4.6% YoY)

Imports

(-4.6% YoY)

Positive surprise triggered byhigher Central (110.5% YoY) &State (3.9% YoY) capitalexpenditures in Q3

Growth outlines return of capexcycle & optimism of better futureahead

Negative surprise, as top line ofAutos & Consumer Durablesexceeded 10% YoY

Likely reflects lower consumptionof contact intensive services &lower expenditure ontransportation due to pandemic,which have 52% & 18% sharerespectively in this component

Exports as % of GDP contractedsequentially to 18.6% in Q3 from21.1% in Q2 – reflecting impactfrom re-emergence of lockdownsin many global economies

Imports as % of GDP shownsequential improvement to21.2% in Q3 from 20.8% in Q2 –reflecting improving domesticdemand conditions

Negative surprise, even whenCentre’s revenue expenditureincreased by 19% YoY in Q3 –hinting at possible rollback byStates & local bodies

Likely reflects lower expenditureon government services such aseducation as schools were shut

Real GDP (+0.4% YoY)


Q3 FY21 GVA Growth Review: Improvement Led By Rise In Real Estate, Agriculture & Construction

Source: MOSPI, IDFC FIRST Bank Economics Research

Improvement seen in real estate sector as stamp duty collections rose by +17.9% YoY in Q3 from a -10.9% YoY decline in Q2

Growth in agriculture supported by strong trend in Rabi sowing

Strong rebound reflecting rise in steel consumption (13.8% YoY) & lesser decline

in cement production

The Road Ahead

• Pace of commercial and business activity expected to gather pace on back of vaccination-driven optimism & strong policy support

• Overall, GDP reflects growing inequality between informal and formal sector – While Nifty EBIDTA is up 15% in Q3, nominal core GVA is up by only 3.5% -indicating recovery in informal sector is still lackadaisical

• Government’s focus on capital spending is a good move, but may have a delayed positive impact; Direct income support to badly-hit household & informalsector balance sheets needed to pacify any adverse impact on financial sector going forward.

Growth Rate (%) Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21

Agriculture, forestry & fishing 3.4 6.8 3.3 3.0 3.9

Industry -2.6 -2.2 -35.9 -3.0 2.7

Mining & quarrying -3.5 -0.9 -18.0 -7.6 -5.9

Manufacturing -2.9 -4.2 -35.9 -1.5 1.6

Electricity, gas ,water supply & other utility services

-3.1 2.6 -9.9 2.3 7.3

Construction -1.3 0.7 -49.4 -7.2 6.2

Services 7.0 6.4 -21.4 -11.3 -1.0

Trade, hotels, transport, communication & broadcasting

7.0 5.7 -47.6 -15.3 -7.7

Financial, real estate & professional services 5.5 4.9 -5.4 -9.5 6.6

Public administration, defence & other Services 8.9 9.6 -9.7 -9.3 -1.5

GVA At Basic Prices 3.4 3.7 -22.4 -7.3 1.0

GDP 3.3 3.0 -24.4 -7.3 0.4

Positive growth reflects strong performance of listed companies & improvement in IIP manufacturing


Economy Returning Back To Normalcy

Source: Data as on 2nd March 2021, IDFC Economics Research

Green colour code indicates improvement


Greenback Strengthens Amid Surge In US Yields, Crude Oil Back To Pre Pandemic Levels

Oil prices rose nearly 20% in Feb’21 as Saudi Arabia’s “surprise” voluntary cut of 1 million barrels took effect in an increasingly optimistic market for crude as global rollout of COVID-19 vaccines coincided with signs that oil demand was picking up

Indian rupee depreciated as stocks declined amid global selloff in risk assets sparked by the surging US yields, gains in dollar index and a spike in global crude oil prices

Drop in forex reserves to $ 583.9 bn caused by a strengthening US dollar, which led to the weakening of non-dollar assets in the short term, FII outflows from debt market and reduction in gold reserves due to drop in the gold price

Source: Bloomberg, IDFC MF Products, Data as on 28th Feb 2021, RBI Data as on 19th Feb 2021

73.04

68

70

72

74

76

78

USD INR

66.3

01020304050607080

BRENT CRUDE ($)

547.2 542.1

36.335.3

1.5 1.5

5.25.0

Jan-21 Feb-21

India’s Foreign Exchange Reserves – US$ Bn

Foreign Currency Assets Gold SDRs Reserve Position in the IMF


Conditions Conducive For Moderate Depreciation Of INR In 2021

Source: IDFC FIRST Bank Economics Research 4th March 2021

Periods of sharp INR depreciation had a few factors in common

• External triggers: High crude oil prices (Brent US$100pb+), external shock (GFC, European debt crisis), Fed tightening (expectation and actual )

• India’s vulnerability: High levels of current account deficit, low levels of forex reserves and bad inflation growth mix (high levels of inflation and low growth)

Conditions in 2021 - External conditions remain broadly favourable

• Crude oil prices: Are expected to average at US$70bp, not expected to reach US$100bp + levels

• Fed monetary policy: Expected to remain accommodative

• External shock: The new Covid19 variants could result in a resurgence of the outbreak; Vaccine rollout is reducing that risk

India less vulnerable to external shock

• Current account deficit expected to be moderate• Good inflation growth mix• Sharp build-up in RBI’s FX reserves

Outlook Mar-21 Jun-21 Sep-21 Dec-21

USDINR 72.5 - 73 74.00 75.25 75.5

In our base case we don’t expect Fed to taper in 2021, but market expectations of Fed taper can intensify in H2 which can add volatility for EM currencies

GFC

European Debt Crisis

Taper Tantrum


Global Update


Source: Bloomberg (Commodities represented by Bloomberg Commodity Index), ACE MF (Data as on 26th February 2021)

Global Equities Gained Amid Spike In Volatility From Inflationary Concerns & Soaring Bond Yields

• US indices rallied on back of steady progress on $1.9 Trn. pandemic relief package &buoyed sentiments due to positive macroeconomic data, including higher services PMI,narrowing trade deficit, better-than-expected retail sales & industrial output data

• German stocks gained due to additional stimulus announced to support businesshouses & households, improved business climate & upward revision of GDP growth

• Timetable announcement for easing of restrictions, upbeat earnings, swifter mass-vaccination drives etc. drove the British markets higher

• Chinese stocks ended marginally higher driven by robust pick-up in economic activitieslike rise in car sales, strong FDI inflows, growth in bank loans etc. which more thanoffset negative sentiments around tightened regulations on internet loan business ofcommercial banks & increase in stamp duty by Hong Kong government

• Crude prices skyrocketed on prospects of quick economic revival, Saudi’s unilateralproduction cut & Libyan supplies’ disruption due to a strike over delayed salaries

-5.1

0.7

0.9

1.2

2.5

2.6

2.6

3.2

4.7

5.6

6.1

Brazil - Bovespa

China - Shanghai Composite

US - Nasdaq

UK - FTSE 100

Hong Kong - Hang Seng

US - S&P 500

Germany - DAX

US - Dow Jones

Japan - Nikkei 225

France - CAC 40

India - BSE Sensex

Global Equity Indices Performance (%) - Feb 2021

-5.7

-1.6

-0.1

0.3

6.5

18.3

Gold

Silver

EM Bond Index

Dollar Index

Commodities

Brent Crude

Other Asset Classes Performance (%) - Feb 2021


Global Winners And Losers : The Benefits Of Diversification

Source: Morningstar Direct, in INR terms, *As on 28th February 2021 Performance of Indian Equities is represented by S&P BSE 500 TR Index, of Developed Market Equities by Morningstar Developed Market Index , of Emerging Market Equities by Morningstar Emerging Market Index, of U.S. Equities by Morningstar U.S. Market Index, of Europe by Morningstar Europe Index,, of Gold by S&P GSCI Gold Spot Index and of India Fixed-Income by CCIL All Sovereign Bond Index. This is for illustrative purposes only and not indicative of any investment.

Gold emerged as winner of CY2020, it rallied on safe haven demand amid the pandemic. Recent correction in gold amid surge in bond yields could be an opportunity to accumulate gold

Risk assets such as equities not onlyrecovered but touched historic highs on massive policy stimulus from central banks and governments along with rollout of COVID vaccine recently

India – Fixed Income still seems attractive due to higher yields compared to DMs. However, returns of CY2020 may not be repeated in CY2021

Right asset allocation and diversification across assets proves to be a WIN WIN in all market conditions

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD

Gold 30.4 18.4 24.6 30.9 10.4 -19 0.5 -6.2 11.4 6.9 7 21.5 27.37 -8.25

India Fixed Income 24.5 -6.3 4.4 3.7 12.7 2.2 17.5 7.4 15.6 2.4 8.3 11.8 13.01 -2.45

US Equity -22.2 22.7 12.2 20.6 20 50.3 15.2 5.5 15.4 14.2 3.9 34.2 23.76 2.97

Developed Markets Equity

-26 26.4 9.5 12.5 20.6 44.5 7.8 4.7 11.4 15.8 -0.3 31 19.03 2.67

Emerging Markets Equity

-42.9 75.6 17.1 -3.3 23.5 10.8 1.3 -9.1 14.2 27.9 -5 21.2 21.58 4.41

European Equity -34.7 34.9 3 4.7 25.2 41.7 -4.7 3.6 3.4 19.4 -6.7 28.5 9.13 1.85

Indian Equity -57.6 92.7 17.9 -26.4 33.4 4.9 38.9 0.4 5.2 37.6 -1.8 9 18.41 6.05


Equity Market


Broader Markets Remained Buoyant On Growth Optimism Supported By Expansionary Budget

Metal stocks outperformed on back of steady economic recovery, high commodityinflation, supply deficit & veering of government policies towards electric vehicles

FMCG sector underperformed despite recovering sales of premium productswithin each vertical in Q3 & sustaining trend in Q4 – possible as investors contendwith higher valuations (45-70x TTM PE) compared to sectoral index (43x times)

Economic-linked sectors such as banks, capital goods, construction, oil & gas, realestate gained on back of optimism over expansionary Union Budget

Private Banks showed strength as govt. lifted embargo on grant of governmentbusiness to private sector banks, to enable better efficiency & competition

Mutual Funds remained net sellers – slashing stakes in key Nifty stocks as indicesset record highs; FIIs remained net buyers but tuned cautious towards month endas bond yields spiked up

Source: Ace MF (Data as on 26th February 2021). *MF data for period 1-Feb to 16-Feb 2021

-1.6

-1.4

-1.3

1.3

3.7

3.9

5.5

6.2

6.7

7.5

7.9

10.5

10.7

12.2

12.5

14.4

15.2

21.6

24.4

S&P BSE Information Technology…

S&P BSE FMCG - TRI

S&P BSE TECk Index - TRI

S&P BSE Health Care - TRI

S&P BSE Telecom - TRI

S&P BSE AUTO Index - TRI

S&P BSE Consumer Durables - TRI

S&P BSE SENSEX - TRI

NIFTY 50 - TRI

S&P BSE 200 - TRI

S&P BSE 500 - TRI

S&P BSE Capital Goods - TRI

S&P BSE Mid-Cap - TRI

S&P BSE Small-Cap - TRI

S&P BSE BANKEX - TRI

S&P BSE OIL & GAS Index - TRI

S&P BSE Realty Index - TRI

S&P BSE Power Index - TRI

S&P BSE METAL Index - TRI

Sector Performance (%) - Feb 2021

(14,463)

25,787

(65,000) (40,000) (15,000) 10,000 35,000 60,000

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

Jul-

20

Au

g-2

0

Sep

-20

Oct

-20

No

v-2

0

Dec

-20

Jan

-21

Feb

-21

MF FII Trend (in INR Crores)

MF* FII


Our Equity Allocation Strategy

NegativeValuations

Earnings

Volatility

1. Stretched valuations – Gap b/w earnings yield (1/Nifty 1Y fwd. PE) to 10-year bond yield now at ~156bps (~57bps higher than long-term average)

2. Sector rotation themes may continue to be in favour as economy is onverge of a multi-year investment cycle – Cyclicals & Housing driven capexplays could outperform

1. Biggest risk factors to bring volatilities are global bond yields & risingcommodity prices - 31 of Nifty 50 companies (46% of Nifty free-float)exposed to commodity-related risks

2. Accumulation strategy should be played on economy driven sectors onevery declines

1

2

3

Earnings expectations are more robust than ever led by:1. Upbeat management commentaries on demand & capex guidance2. Improvement in corporate strength as indicated by CRISIL ratings

upgrades (899 upgrades & 4998 downgrades during Sep-Jan’21, ascompared to 462 upgrades & 5732 downgrades) during Apr-Aug’20

Neutral

Neutral


Our Equity Investment Strategy

1. ‘Risk Mitigation’ of client portfolios has been our endeavor all through our journey – continued focus onHedge and Long-short strategies has helped us safeguard client portfolios

2. Selective buying in strategies holding quality companies with strong balance sheets irrespective of marketcap is preferred and hence investors should align to pure bottom-up and quality stock-picking.

3. Broader market valuations are in expensive zone. As earnings growth recovers going forward, it canprovide cushion for valuations. For incremental allocation to equities, we suggest investments to bestaggered over a period of 3-6 months

4. PMS / AIF platforms with a focus on cap-agnostic strategies are ideal for long term investments.

5. Global allocation to strategies investing in companies having edge on futuristic & innovative techplatforms or funds focused on consumer trends with subject expertise on behavioral shifts should beconsidered


Fixed Income Market


Rising Bond Yields And Sell Off In Bonds Across Result In “A Tantrum Without The Taper”

U.S. Treasury yields rose to the highest since February 2020, as investors started to factor in the full economic impact of a stimulus plan totaling as much as $1.9 trillion amid expectations for higher inflation and economic growth

The directional trend of hardening in domestic bond yields that began with the Union Budget got accentuated as the RBI Monetary Policy review failed to provide any explicit guidance with respect to market intervention measures

The global bond sell off added further pressure on domestic markets as auction devolvement became a routine affair

Source: Data as on 28th February 2021, MF Activity as on 16th Feb 2021, ACE MF, Bloomberg, Kotak MF

Yields in %

6.22%

5.5%

6.0%

6.5%

7.0%

India - 10 Year Gsec

Global Bond Yields 28-Feb-21 1 M 1 Y

US 10 – Year 1.41 1.07 1.15

UK 10 – Year 0.82 0.33 0.44

Germany 10 – Year -0.26 -0.52 -0.63

Japan 10 - Year 0.17 0.05 -0.16

India 10 – Year 6.23 5.9 6.37

629

-6488

-80000

-60000

-40000

-20000

0

20000

40000

60000

MF FII Debt Trend (Cr)

MF FII


Our Fixed Income Allocation Strategy

Neutral

Positive

Negative

Interest Rates

Liquidity

Credit Risk

1. The prospects for debt markets would in the near term be guided by specific market support measures that the RBI may announce

2. The broader directional trend would be shaped by how the Growth- Inflation dynamic shapes

1. RBI MPC minutes indicated comfort with maintaining ample liquidity conditions as long as inflation remained well contained & with short-term rates back within the policy rate corridor

2. The space created by the liquidity drain from CRR normalization likely to be supplemented by outright OMO purchases

1. Credit assets could outperform as economic growth picks up momentum. However, low rated credit market to be watched for over couple of quarters

2. Selective bond picking in higher yielding bonds where fundamentals are improving but market sentiment is weak

1

2

3


Our Fixed Income Strategy

1. Core part of portfolio in debt should be focused to high quality accrual oriented funds with short maturities(2-4 years) / AAA rated bonds, complemented by small tactical investments in select high yield NCDs, bonds& MLDs

2. Invest in a staggered manner to benefit from a rising interest rate scenario

3. We continue to remain watchful to Credit Risk (A & below rated securities) considering the risks arisingfrom the impact of COVID-19 lockdown and cautious on NBFCs

4. IDFC First Bank Savings Account for tenure < 1 year (Interest upto 6% pa)

5. Good quality Corporate bond funds and Banking/PSU strategies are preferred for medium to long termallocations

6. Small tactical allocation towards dynamic bond funds from 5 years + investment horizon can be considered


Our roadmap to

your success.


Objective

Increase equity exposure

when markets are

undervalued and book

profits when overvalued

Methodology

Price to earnings, Price to

book ratio, G Sec to PE ratio,

back-testing last 20 years

data

Strategy

Arrive at a valuation score

to build the right asset

allocation

Our In-House Quant Based Asset Allocation Model - VIN


VIN: Personalises Your Portfolio in a Few Steps

• Quarterly portfolio

reviews

• Investment objective

• Time horizon

• Risk appetite

• As per your need, suitable risk profile is assigned

• Using our proprietary asset allocation methodology VIN- Value Index Navigator, appropriate asset allocation is ascertained

• Increase equity allocation when markets are undervalued and reduce when overvalued

• In house fund selection model, back-tested for performance consistency

• Risk mitigation scores monitored on a monthly basis

• In-depth due diligence of all products across asset classes

Understanding Your

NeedArriving At The Right

Asset Allocation

Product

SelectionRegular

Checks


VIN: Designed to suit every Risk Profile

Equity allocation leads to volatility in the portfolio and hence we cap the equity exposure to portfolios for

different risk profiles

However, as mentioned before, recommended equity exposure is the combination of VIN and risk profile,

as seen on the following slide

VIN explanation is given in the next slide

Profile Aggressive Growth Balanced Semi-

conservativeConservative

Equity allocation (max.)

Equity allocation (min.)

100%

0%

75%

0%

50%

0%

25%

0%

0%

0%


Equity Valuations

(PE & PB ratios)

G-sec Yields

Relative To Equity

Valuations

(G-Sec – PE ratio)

Asset Allocation

Scorecard

Back-test 25 Year

Results On 5 & 3

Year Rolling

Basis

Quant-Based VIN

Approach for Equity Approach for Debt

Equity portfolios – market approach:

- Past performance

- Fund manager consistency

- Volatility (both upside and downside)

IDFC FIRST Bank enhanced filters:

- Only downside risk adjustment

- Earnings outlook for top holdings

- Target price for top holdings

Returns

Consistency

Downside

risk

Debt portfolios – market approach:

- Past performance

- Duration

- Paper quality

Yields

Duration

QualityIDFC FIRST Bank enhanced filters:

- Exclusions: e.g. unrated papers

- Leverage ratios of top holdings

- Upgrade and downgrade trends

Successful Implementation: a VIN-WIN for you!


Valuation Score(Current Highlighted)

Aggressive Growth Balanced Semi-Conservative Conservative

1 100% 75% 50% 25% 0%

2 90% 70% 45% 20% 0%

3 80% 60% 40% 15% 0%

4 70% 55% 35% 15% 0%

5 60% 45% 30% 10% 0%

6 50% 40% 25% 10% 0%

7 40% 30% 20% 5% 0%

8 30% 20% 15% 0% 0%

9 20% 10% 10% 0% 0%

10 0% 0% 0% 0% 0%

Effective 1st July 2020

Our Current Value Index Navigator Score – Maximum Equity Allocation


Our Focus Strategies

Multicap Strategy: White Oak India Pioneers Equity Portfolio

Scheme Details

Founder Prashant KhemkaAUM Rs. 1350 crsBenchmark BSE 500 TRIInception Date 9th April, 2019Number of Stocks 45

Scheme Name/ ReturnPerformance (%)

1M 3M 6M 1Y 2Y 3Y 4Y 5YSince

Inception

Strategy -3.10 17.31 25.81 25.32 NA NA NA NA 20.30

BSE 500 -1.75 18.28 25.83 16.46 NA NA NA NA 10.80

Investment Objective:

To achieve long-term capital appreciation byinvesting in listed securities in India andcompanies with a significant presence in India,thus generating sustained capital appreciationthrough superior returns over time.

Investment Strategy:

• The fund philosophy is to invest in greatbusinesses at attractive valuations usingproprietary OpcoFinco framework forevaluation.

• Seasoned team, who has an extensiveexperience across market cycles and Globalequities, with a unique within team Structurefor decision-making.

• Maintains a balanced portfolio of companies–invest in business and consciously avoidmarket timing, sector rotation or other suchtop - down macro bets

Sector Break Up

Sector % HoldingFinancials 31.57

IT 20.85

Health Care 10.56

Consumer Discretionary

9.57

Consumer Staples 8.21

ETF's/Futures/Cash 6.45

Materials 5.77

Industrials 4.97

Communication Services

1.27

Real Estate 0.78

Total 100.00

Large Cap, 56.86%Mid Cap,

27.78%

Small Cap, 8.91%

Cash & Others, 6.45%

Market Cap Break-up

Performance Details as on 31st January, 2021

Multicap Growth Strategy: ASK Indian Entrepreneur Portfolio

Scheme Details

Fund Manger Sumit JainAUM Rs. 13619 crs

Benchmark BSE 500Inception Date 25th January, 2010Number of Stocks 21

Scheme Name/ ReturnPerformance (%)


Inception

Strategy -4.11 17.04 25.71 11.36 16.41 11.41 14.30 15.01 18.05

BSE 500 -1.77 18.14 25.30 14.86 12.19 5.42 11.44 12.40 9.40

Investment Objective:

Capital Preservation and appreciation over aperiod of time achieved through long terminvestments in high quality companies withstrong growth prospects


• Identify large and growing businessopportunities.

• Seeks to identify such businesses which stayinvested for a length of time and make moneyas EPS compounds.

• The business should be able to fund stronggrowth through internal cash generation

• The focus should be on promoter-drivenbusinesses.

Sector Break UpSector % Holding

NBFC 12.99 Pharma 10.57 Banks 9.63 Retail 7.93 Building Products 7.71 FMCG 7.52 Insurance 7.30 Agri Chemicals 5.40 Consumer durables 5.15 Chemical 4.72 IT 4.20 Oil & Gas 4.19 Auto OEM 4.07 Home Decor 4.05Cement 3.81Cash & Equivalents 0.76Total 100.00


Large Cap, 75.20%

Mid Cap, 24.00%

Cash & Equivalents,

0.80%

Market Cap Breakup

Large Cap Biased Multi-cap Strategy: Marcellus Consistent Compounders PMS

Investment ObjectiveTo identify and invest in companies with cleanaccounting and sustainable competitive moats(consistently high RoCE’s) with healthy growthprospects, thereby delivering healthycompounded returns with low volatility and overlong periods.

Investment Strategy

• Investment universe of 25 stocks is filtered byaccounting quality and consistent track record -atleast 10% revenue growth and RoCE greaterthan cost of capital for atleast 10-15yrs.

• Primary research to garner insights about theexistence and sustainability of an economicmoat

• Healthy earnings growth of 20-25%.

• Weightage given valuations, longevity ofhealthy and consistent fundamental earningsgrowth prospects of these companies is alsofactored in.

Scheme NamePerformance (%)


InceptionStrategy -6.81 14.15 27.13 18.48 59.64 NA NA NA 24.78

Nifty 50 TRI -2.46 17.22 23.65 15.22 28.87 NA NA NA 12.22

Scheme Details

Fund Manger Rakshit Ranjan

AUM Rs. 2952 crsBenchmark Nifty 50 TRI

Inception Date 1st December, 2018Number of Stocks 13

Sector Break Up

Sector % Holding

Financials 34.50

Home building Materials 26.30

Pharma & Healthcare 18.00

Consumer discretionary 13.00

Consumer staples 7.20

Cash 1.00

Total 100.00

Large, 79.0%

Mid, 20.0%

Cash & Equivalents,

1.0%

Market Cap Breakup


Mid & Small Cap Strategy: Motilal Oswal IOP V2

Investment Objective:The strategy aims to generate long term capitalappreciation by creating a focused portfolio of highgrowth stocks having the potential to grow morethan the nominal GDP for next 5-7 years across andwhich are available at reasonable market prices.


• The portfolio is a small cap oriented portfolioconsisting of high growth stocks.

• Companies having potential to become mid orlarge cap, are identified in their early stage.

• Agriculture, Capital markets, Electrical &Electronics, IT and Pharmaceutical sectors play animportant part in the portfolio.

Scheme Name/ Return

Performance (%)


Inception

Strategy 1.37 19.10 34.48 21.62 15.83 NA NA NA 1.66

Nifty Smallcap 100 TRI 1.32 23.57 43.93 16.54 9.34 NA NA NA -3.78

Scheme Details

Fund Manger Mr. Manish Sonthalia

AUM Rs. 495 crs

Benchmark Nifty Smallcap 100 TRI

Inception Date 5th February, 2018

Number of Stocks 21

Sector Break Up

Sector % HoldingConsumer Discretionary 15.71

Software 14.29

Construction 12.81

NBFC 12.07

Non-Lending Financials 10.85


Pharmaceuticals 7.21

Industrial Products 5.46

Cement 4.24

Auto Ancillaries 4.11

Industrial Capital Goods 1.84

Healthcare Services 0.83

Cash & Equivalents 0.72Total 100.00

Large, 13.10%

Mid, 33.77%

Small, 52.41%

Cash, 0.72%

Market Cap Break up


Midcap Growth Strategy: Ambit Good And Clean Portfolio

Investment Objective:The investment objective of the PMS is to invest infirms which are:

• Good, on the basis of capital allocation trackrecord and quality of improvement in financialmetrics.

• Clean, on quality of their accounts and corporategovernance.


• The portfolio follows a research based approachfor selecting stocks in the portfolio with acombination of top down and bottom up process.

• Mid cap biased multi-cap strategy.

• Concentrated portfolio with 15-20 stocks.

• Buy & hold strategy with an intended churn ofless than 2-3 stock per year on average.

Scheme Name/ Return

Performance (%)


Inception

Strategy 1.77 17.88 30.73 13.25 17.37 12.81 14.49 16.62 12.91

NSE Midcap 100 0.32 22.52 35.15 16.10 11.22 0.20 7.92 10.89 7.93

Scheme Details

Fund Manger Mr. Aishvarya Dadheech

AUM Rs. 450 crs

Benchmark NSE Midcap 100

Inception Date 12th March, 2015

Number of Stocks 18

Sector Break Up

Sector % Holdings

Financials 35.00

Cons Disc 19.00

Pharmaceuticals 11.00

Specialty Chemicals 10.00

Homebuilding 10.00

Automobile 6.00

Industrials 5.00

Cash/Equivalent 4.00

Total 100.00

Large Cap, 23.00%

Mid Cap, 73.00%

Cash & Others, 4.00%

Market Cap Breakup


Value Investing Strategy: Invesco DAWN Portfolio

Investment ObjectiveTo generate capital appreciation by investing incompanies available at reasonable valuations.

Investment Strategy

• Exposure to sectors and stocks which areexpected to benefit from revival in cyclicalrecovery

• Emphasis on mean reversion & value style.High impetus on companies with qualitybusiness models & management

• Allocation to companies which exhibitoperating & financial leverage.

• Bottom up stock picking approach without biastowards market cap or sector


1M 3M 6M 1Y 2Y 3Y 4Y 5Y Since Inception

Strategy 2.05 18.63 23.49 8.49 9.01 1.50 N.A N.A 1.51

S&P BSE 500 -1.77 18.14 25.30 14.86 12.17 5.41 N.A N.A 8.43

Scheme Details

Fund Manger Mr. Sameer Narayan

AUM Rs 364 crs

Benchmark S&P BSE 500Inception Date 28th August, 2017Number of Stocks 22

Sector Break Up


Information Technology 13.97

Materials 11.33

Industrials 10.34

Consumer Discretionary 9.58

Energy 9.00

Cash & Equivalent 8.50

Communication Services 4.87


HealthCare 3.72

Utilities 2.01

Total 100.00


Large Cap, 68.13%

Mid Cap, 10.88%

Small Cap, 12.49%

Cash & Equivalent,

8.50%

Market Cap Break up

Hedge Strategy: IIFL Multicap Advantage Fund

Investment Objective

The fund aims to achieve significant alphageneration while maintain a low risk and beingcost efficient at the same time.

Investment Strategy

• Invests in companies and sectors that areavailable at significant discount to theirintrinsic value and provide earnings visibility.

• Concentrated position in stocks and endeavorsto change allocation between sectorsdepending on the business cycle.

• Dynamic hedge is provided by rebasing 3-yearat-the-money put option if equity portfoliogains over 25% or more.

Based on current quote for put options; Premium shall vary based on market conditions. *data as on 31st January, 2021.


1M 3M 6M 1Y 2Y 3Y 4Y 5Y Since Inception

Strategy 0.15 17.04 22.37 19.8 21.97 15.97 NA NA 14.96

S&P BSE 200 TRI -1.95 18.06 24.97 16.46 13.75 7.73 NA NA 9.77

Scheme Details

Fund Manger Mr. Mitul Patel

AUM Rs. 808 crsBenchmark S&P BSE 200 TRIInception Date 1st December, 2017Number of Stocks 30

Sector Break Up


Information Technology 14.51

Materials 13.99

Health Care 10.37

Consumer Discretionary 11.25

Communication Services 4.63

Others 8.97

Cash 4.92

Hedge 1.97

Total 100.00

Large Cap, 57.95%

Mid Cap, 24.02%

Small Cap, 11.13%

Cash, 4.92%

Hedge, 1.97%

Market Cap Break-up

Long Short Strategy: Avendus Enhanced Return Fund – Series II

Investment Objective

Generate Superior returns to Nifty 50 index while limiting down side, by maintaining a judicious mix of long only portfolio (~70% of the fund) andlong short (~30% of the fund)

Monthly Fund Performance

Note: Inception Date- 1st Nov-18Q4'18 Starts from Novemeber'18 and quarters are based on calendar year.

All Performance nos. are for A1 share class net of management fees and in INR terms

ParameterCurrent Exposure

(%)

Long Only 71.00%

L/S Gross 48.20%

Gross Exposure 119.20%

Net Exposure 85.70%

Investment StrategyThe fund will Invest ~70% of the proceeds in the long only portfolio, to ensure high alpha, and ~30% in long /short portfolio, to ensure a lower beta

• High alpha – Fund will invest in a portfolio of 15-25 high conviction stocks based on a proprietary screenmodel

• Low beta – The team over 13 years has managed to successfully deliver absolute returns across marketcycles including the most adverse market conditions. Seeks to identify such businesses at reasonablediscount to value and stay invested for a length of time and make money as EPS compounds

Period Apr’20 May’20 Jun’20 Jul’20 Aug’20 Sept’20 Oct’20 Nov’20 Dec’20 Jan’21Fund 11.13% -3.37% 7.01% 3.75% 2.24% -1.13% 3.81% 9.44% 6.45% -0.35

Nifty 50 TRI 14.69% -2.74% 7.58% 7.70% 2.97% -1.20% 3.69% 11.44% 7.83% -2.46BSE 200 14.71% -2.32% 7.88% 7.17% 3.39% -0.46% 2.85% 11.69% 7.80% -1.95



Investment ObjectiveThe scheme is a long only strategy whichendeavours to generate long term capitalappreciation by investing in listed equity andequity related securities.

IIFL High Conviction Fund AIF

Investment Strategy• Investment is concentrated in 15-20

companies:• 40-70% are Secular Growth companies.• 30-50% are Cyclical & Defensive growth

companies.• 0-10% are Value Trap companies.

• Follows a mix of top-down (macro analysis to identify sectors) and bottom-up approach (micro analysis to pick stocks within these sectors).

• Not more than 10% allocation to any single security after full deployment.


1M 2M 3M 6M 1Y 3Y 5Y YTD Since Inception

Strategy -0.38 9.30 20.77 28.09 11.64 N.A. N.A. -0.38 12.25

S&P BSE 200 TRI -1.95 5.70 18.06 24.97 16.46 N.A. N.A. -1.95 14.07

Sector Break Up (Top 6 Holding)

Sector % Holding

Financials 34.69

Information Technology

16.00

Consumer Discretionary

11.39

Industrial 11.12

Health Care 9.71

Cash 6.33

Material 5.81

Others 4.95

Total 100.00


Large Cap, 69.51%

Mid Cap, 10.33%

Small Cap, 13.83%

Cash, 6.33%

Market Cap Break-up


Equity: Portfolio Construction Strategy

Performance

Consistency

Preservation

• Back tested results on Rolling returns – in line with actual investment entry points

• Top quartile 3 year returnsPortfolio Returns

• Fund Manager consistency across funds, across years

• Mitigate recency or historical bias, if any

Consistent Track Record

• Investors worry about downside volatility

• Bottom two quartiles on downside riskDownside Risk

Equity: Focus Funds

Performance as on 28th February, 2021; AUM Details as on 31st January, 2021; Source: Morningstar

Scheme Name AUM (Crs) 3 yrs Rolling Returns 2021 YTD 2020 2019 2018

Large Cap

Axis Bluechip Fund 21,867.92 11.06 -0.31 19.72 18.57 6.54

HDFC Top 100 Fund 17,715.25 1.30 10.29 5.91 7.7 0.13

ICICI Pru Bluechip Fund 25,513.85 4.08 6.28 13.49 9.77 -0.81

Mirae Asset Large Cap Fund 21,745.53 5.55 5.70 13.7 12.73 -0.64

Nippon India Large Cap Fund 9,772.71 1.38 9.68 4.91 7.25 -0.2

Category Average 3.67 4.80 13.73 11.25 -2.97

Flexi Cap

Kotak Flexicap Fund 32,453.40 4.23 6.57 11.79 12.28 -0.88

SBI Flexicap Fund 10,424.67 3.05 8.10 13.6 10.97 -5.51


Large & Mid Cap

DSP Equity Opportunities Fund 5,373.49 2.80 8.87 14.24 11.45 -9.24

Invesco India Growth Opp Fund 3,445.16 5.64 6.39 13.27 10.7 -0.24

Kotak Equity Opp Fund 4,674.51 4.41 7.21 16.46 13.16 -5.62

Sundaram Large and Mid Cap Fund 1,346.12 3.96 10.07 7.61 10.31 0.42


Contra

Invesco India Contra Fund 5,922.37 6.23 6.54 21.18 5.94 -3.26



Mid Cap

Axis Midcap Fund 8,608.32 11.17 6.79 26.01 11.33 3.51

DSP Midcap Fund 9,815.12 4.50 5.93 23.64 9.21 -10.15

Kotak Emerging Equity Fund 9,162.03 2.94 14.02 21.89 8.86 -11.72


Small Cap

Axis Small Cap Fund 3,724.37 7.83 7.10 22.37 19.38 -8.94

HDFC Small Cap Fund 9,069.13 -0.49 13.10 20.17 -9.49 -8.08

Nippon India Small Cap Fund 10,636.51 0.97 13.66 29.24 -2.52 -16.69

Category Average 6.23 11.49 29.49 -1.51 -17.28

Sector: Financial Services

ICICI Pru Banking & Fin Serv Fund 3,210.91 -1.36 13.22 -5.53 14.49 -0.43

SBI Banking & Financial Services Fund 2,039.59 6.65 9.47 4.84 NA NA

Tata Banking & Financial Services Fund 581.26 4.06 8.38 2.68 20.73 9.54

Mirae Asset Banking & FS Fund 393.31 NA 8.60

Category Average 0.30 9.05 -0.44 25.68 -0.06

Sector: Pharmaceutical

Edelweiss MSCI India D&W HC 45 129.26 NA -4.46 NA NA NA

Equity: Focus Funds



Dividend Yield

HDFC Dividend Yield 1642.27 NA 6.75 NA NA NA


Thematic

ICICI Prudential Business Cycle Fund 4198.60 NA 6.40 NA NA NA

Invesco Global Consumer Trends 73.46 NA 7.03 NA NA NA

Kotak ESG Opportunities 1466.19 NA 1.79 0.94 NA NA

Kotak Pioneer Fund 775.06 31.50 10.07 33.09 NA NA

Value

Tata Equity P/E Fund 4,371.68 0.95 5.05 12.5 5.3 -7.06

Category Average -0.54 8.90 14.36 1.84 -9.69

Global Funds

Motilal Oswal S&P 500 Index 831.66 NA 3.61 23.03 NA NA

Kotak NASDAQ 100 Fund of Fund NA NA NA NA NA NA

Focused

Axis Focused 25 Fund 13,660.12 8.32 0.62 21.01 14.65 0.64

Invesco India Focused 20 Equity 838.44 NA 6.19 16.4 NA NA


Equity: Focus Funds


Hybrid: Focus Funds


Hybrid - Aggressive

ICICI Pru Equity & Debt Fund 15,793.43 2.79 12.34 8.95 9.33 -1.9

Mirae Asset Hybrid Equity Fund 4,383.57 6.17 4.98 13.65 11.93 1.27


Balanced Advantage

ICICI Pru Balanced Advantage Fund 28,256.68 5.76 3.92 11.71 10.79 2.43

Category Average 3.77 4.01 12.26 8.9 0.33

Equity Savings

Kotak Equity Savings Fund 1,350.44 6.01 1.31 10.39 7.76 4.19

Category Average 4.07 2.45 9.47 6.54 1.2



Fixed Income: Portfolio Construction Strategy

Performance

Quality

Duration

• Yield trajectory over the average duration

• Net YTM higher than category averageReturns Outlook

• Bias for AA & above credit as price discovery awaited in A & below

• Leverage elevated bond spreads AA & Equivalent Bias

• Lower to medium duration bonds preferred given the higher yield spread

• Risk adjusted alpha in high duration relatively uncertain

Modified Duration

Fixed Income - Focus Fund Details

Portfolio Details as on 31st January, 2021; Source: Morningstar

Scheme NameExpense

ratioYTM Avg Maturity Mod Duration SOV

AAA and Eq (including cash and eq)

AA and Eq A and Eq

Ultra Short Term

HDFC Ultra Short Term Fund 0.64 3.98 0.39 0.34 12.56 87.44 0.00 0.00

Kotak Savings Fund 0.77 3.90 0.40 0.38 34.70 56.26 9.04 0.00

IDFC Ultra Short Term Fund 0.42 3.64 0.33 0.31 40.64 59.36 0.00 0.00

Low Duration

Axis Treasury Advantage Fund 0.61 4.16 0.70 0.64 24.86 63.68 11.47 0.00

IDFC Low Duration Fund 0.52 4.07 0.81 0.74 15.61 84.39 0.00 0.00

Short Term

Kotak Bond Short Term Fund 1.16 5.07 3.30 2.10 46.04 53.96 0.00 0.00

Axis Short Term Fund 1.01 4.75 1.80 1.50 15.58 78.46 5.95 0.00

IDFC Bond Short Term Fund 0.78 4.71 2.18 1.90 21.77 78.23 0.00 0.00

Floating Rate

IDFC Floating Rate Fund 0.61 NA NA NA NA NA NA NA

Fixed Income - Focus Fund Details

Scheme Name Expense ratio YTM Avg Maturity Mod Duration

SOVAAA and Eq (including

cash and eq)AA and Eq A and Eq

Corporate Bond

IDFC Corporate Bond Fund 0.58 5.18 3.06 2.64 26.94 73.06 0.00 0.00

ICICI Pru Corporate Bond Fund 0.59 4.75 2.48 1.54 15.58 84.42 0.00 0.00

Kotak Corporate Bond Fund 0.65 5.15 2.30 1.72 13.85 86.15 0.00 0.00

Sundaram Corp Bond Fund 0.54 4.83 2.22 1.96 15.85 84.15 0.00 0.00

Banking and PSU Fund

IDFC B & PSU Debt Fund 0.63 4.73 2.07 1.84 9.66 90.34 0.00 0.00

Axis B & PSU Debt Fund 0.62 4.50 1.50 1.40 5.97 94.03 0.00 0.00

ICICI Pru B & PSU Debt Fund 0.83 4.82 2.66 1.56 12.96 64.70 22.33 0.00

Sundaram B & PSU Debt Fund 0.49 3.82 0.49 0.47 0.00 100.00 0.00 0.00

Franklin India B & PSU Fund 0.53 NA 2.61 NA 11.86 87.04 1.10 0.00

Medium To Long Duration

ICICI Pru Bond Fund 1.20 5.60 6.17 4.23 18.28 81.72 0.00 0.00

Dynamic Bond

IDFC Dynamic Bond Fund 1.64 5.83 6.46 5.09 98.47 1.53 0.00 0.00

Kotak Dynamic Bond Fund 1.21 6.32 8.59 5.28 50.95 41.30 7.75 0.00

Portfolio Details as on 31st January, 2021; Source: Morningstar

Fixed Income - Focus Funds Performance

Scheme Name AUM (Crs)Retunrs (%)

Exit load period1M 3M 6M 12 M

Ultra Short Term

HDFC Ultra Short Term Fund 18,196.00 3.75 2.94 4.03 5.89 0

Kotak Savings Fund 12,325.64 3.52 2.62 3.61 5.22 0

IDFC Ultra Short Term Fund 4,644.54 3.19 2.64 3.31 5.03 0

Category Average 3.65 2.75 2.40 4.04

Low Duration

Axis Treasury Advantage Fund 9,731.83 3.21 2.55 4.41 6.43 0

IDFC Low Duration Fund 6,524.74 2.65 1.92 3.77 5.88 0


Short Term

Kotak Bond Short Term Fund 21,024.56 -6.48 -1.84 4.63 7.08 0

Axis Short Term Fund 15,693.76 -1.55 0.24 5.12 7.85 0

IDFC Bond Short Term Fund 14,298.44 -3.68 -1.39 3.62 7.15 0

Category Average -4.01 -1.09 4.48 6.48



Scheme Name AUM (Crs) Retunrs (%) Exit load period1M 3M 6M 12 M

Corporate Bond

IDFC Corporate Bond Fund 22,998.60 -7.65 -2.98 4.49 8.42 0

ICICI Pru Corporate Bond Fund 21,155.67 -2.43 0.62 5.90 8.31 0

Kotak Corporate Bond Fund 8,484.12 -4.66 -0.98 4.64 7.29 0

Sundaram Corp Bond Fund 1,240.05 -3.71 -1.70 4.64 7.82 0


Banking and PSU Fund

IDFC B & PSU Debt Fund 17,774.10 -2.38 -1.16 4.51 8.04 0

Axis B & PSU Debt Fund 16,766.94 0.51 0.13 4.57 7.45 0

ICICI Pru B & PSU Debt Fund 15,419.68 -2.13 0.94 6.32 7.00 0

Sundaram B & PSU Debt Fund 997.38 3.56 2.75 4.02 6.52 0

Franklin India B & PSU Fund 1,022.53 -5.58 -1.33 4.55 5.62 0


Medium To Long Duration

ICICI Prudential Bond Fund 3,791.96 -15.07 -5.59 4.05 6.96 0




Scheme Name AUM (Crs)Retunrs (%)

Exit load period1M 3M 6M 12 M

Floating Rate

IDFC Floating Rate Fund NA NA NA NA NA 0

Category Average -1.43 0.93 5.21 7.16

Dynamic Bond

IDFC Dynamic Bond Fund 3,205.15 -22.05 -7.74 3.36 6.76 0

Kotak Dynamic Bond Fund 2,763.27 -20.20 -6.21 5.67 6.58 0


Arbitrage Funds

ICICI Pru Equity Arbitrage Fund 9,999.38 0.24 0.77 1.74 3.72 0

Kotak Equity Arbitrage Fund 15,527.66 0.32 0.90 1.80 3.89 0

Mirae Asset Arbitrage Fund 279.70 0.21 0.79 1.67 NA 0

Nippon India Arbitrage Fund 9,514.74 0.31 0.81 1.70 3.76 0



Gold Funds - Focus Funds Performance

Scheme Name AUM 3 yrs Rolling Returns

Retunrs (%) Expense Ratio

Exit load PeriodYTD 1Y 3Y 5Y

Gold Funds

Kotak Gold Fund826.64

18.81 -7.80 7.92 14.11 8.90 0.531% on or before 1Y, Nil

after 1YNippon India Gold Savings Fund 1,348.25

17.81 -8.04 6.99 13.11 8.23 0.421% on or before for 15D,

Nil after 15DCategory Average 17.71 -2.28 19.82 16.13 11.80



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This document has been prepared by IDFC FIRST Bank Limited based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The contents of this report are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Nothing in the report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the investor's circumstances. While due care has been taken in preparing this document, IDFC FIRST Bank and its affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance thereon.

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