IIFL Equity Opportunities Fund- Category III AIF

The investment objective of IIFL Equity Opportunities Fund- Category III AIF is to provide an opportunity to invest in good businesses going through bad times. The scheme will follow a Bottom up stock selection and portfolio construction approach – ability to invest across market capitalization.

IIFL Equity Opportunities Fund- Category III AIF will also look at Special Situations – resulting in value unlocking/re-rating opportunities. Ability to invest across Pre-IPO opportunities (max up to 20%, typically 5-10%).

The investment philosophy of IIFL Equity Opportunities Fund- Category III AIF is to take advantage of business cycles + special situations and form a diversified portfolio of companies with improving fundamentals/increasing ROE and high margin of safety.

Attractive investment opportunities tends to emerge amidst high volatility. Recent volatility arising from multiple macro- economic headwinds and geopolitical events has put select businesses/sectors under stress thus providing a large pool of attractive investment opportunities.

IIFL Equity Opportunities Fund- Category III AIF follows a disciplined approach and strong analysis to identify companies going through a short term down cycle with high margin of safety and re-rating potential aided by business cycle catalysts or special situation events

The investment strategy of IIFL Equity Opportunities Fund- Category III AIF follows the SCDV framework:

• Seculars: BSE 200 Weight – 20%
• Cyclicals: BSE 200 Weight – 16%
• Defensives: BSE 200 Weight – 32%
• Value Traps: BSE 200 Weight – 32%

The portfolio construction process of IIFL Equity Opportunities Fund- Category III AIF is explained below:

1. Investment Universe: 575 stocks
2. Watchlist: 360 stocks
3. Active Coverage: 290 stocks
4. Analyst Recommendations: 80 stocks
5. Model Portfolio: 40 stocks