Nippon India – Absolute Freedom


Key Portfolio Attributes

Inception Date: 24 September 2004

Number of Stocks : 20-25

Fund Manager Name: Varun Goel

Fund Manager Experience:11 years

Fund Manager Qualification: MBA – IIM Lucknow, Mech Engg from IIT Dehi

Portfolio Construct

• 60% – 80% in Large cap stocks, provides stability to the portfolio

• 20% – 40% in larger Quality Midcaps, adds to the upside potential

• Bottom up stock picking based on our unique “Must 5” Quality framework, aim to identify those stocks which have a potential of delivering outsize returns

• Investments are made with a Buy & Hold view.

• Benchmark Agnostic portfolio creation approach results in a Unique & Differentiated Portfolio

• Concentrated portfolio of our top 20 – 25 ideas, ensures meaningful positions are taken in majority of the holdings, while maintaining adequate diversification

Investment Philosophy

The endeavor is to create wealth for our investors over a medium to long term period by creating Benchmark Agnostic Concentrated Portfolios of quality stocks, based on fundamental research driven Bottom Up stock picking.

BOTTOM UP APPROACH

Nippon India believes that in all market conditions and across all capitalizations, there are stocks which may outperform. Hence, their Focus is on identifying such stocks, within the chosen sectors. Sectoral trends and macroeconomic research is used to identity macro trends / sectoral opportunities. The Conviction in their stock picks come from rigorous bottom up fundamental research. Fundamental Research involves study of historic track record, trends and future earning estimates through the lens of “Must 5” Quality framework.

The Assessment is based on Earnings Growth, Operating Leverage, Demand Environment, Margin Expansion, and Financial Leverage. Assessment also includes Senior Management Interaction, Key Customer, Suppliers feedback, Competition feedback, Key Stakeholders Interaction.

Post identification of stocks based on rigorous fundamental research, they identify reasonably priced stocks, based on Valuation gap analysis

  1. Historical Vs Current valuations
  2. Peer Group Valuation
  3. Potential Rerating Triggers

Investment is made in stocks with the Highest Conviction. Such companies tend to weather sector declines. Their endeavor is to benefit from the early identification of an investment idea; where there is higher potential for outsize returns

MUST 5 FRAMEWORK




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio-5.0%-4.0%-8.9%8.4%28.7%11.3%10.0%-14.0%
BSE 200-4.1%-1.0%-2.8%6.7%33.3%12.9%11.5%-13.9%



Portfolio Holdings


Holding %
ICICI Bank Ltd. 6.90
HDFC Bank Ltd. 6.40
Bajaj Finserv Ltd. 6.30
DLF Ltd. 5.30
Tata Power Company Ltd. 5.20
Reliance Industries Ltd. 5.10
Route Mobile Ltd. 4.60
Titan Company Ltd. 4.60
Navin Flourine International Ltd. 4.60
Tata Consultancy Services Ltd. 4.50
ITD Cementation India Ltd. 4.00
Zensar Technologies Ltd. 3.90
Infosys Ltd. 3.90
Dr.Reddy Labs 3.80
Bharti Airtel Ltd. 3.80
Ultratech Cement Ltd. 3.10
Can Fin Homes Ltd. 3.00
Easy Trip Planners Ltd. 2.90
Procter & Gamble Health Ltd. 2.90
Tata Motors DVR 2.60
Chambal Fertilizers and Chemicals Ltd. 2.50
ICICI Lombard General Insurance Company Ltd. 2.40
Advanced Enzyme Technologies Ltd. 2.10
Housing Development Finance Corporation Ltd. 1.70
Kotak Mahindra Bank Ltd. 0.70
Cash & Equivalent 3.10
Other 0.10
Top 26 Equity Holdings 100.00

Sector Allocation


Holding %
Chemicals 7.00
Pharmaceuticals 7.00
Financial Services 11.00
Banking 14.00
Information Technology- Software 17.00

Market Cap Allocation


Allocations %
Large Cap 61.0
Mid Cap 10.0
Small Cap 26.0
Cash 3.0


Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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Disclaimer

#Returns as of 31 May 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.




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Do Not Simply Invest, Make Informed Decisions