Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Nippon India Mutual Fund — Investor Presentation (September 2022)
20 slides from Nippon Life India Asset Management's investor presentation, September 2022
Slide 1: Nippon India Consumption Fund
Nippon India Consumption Fund (An open ended equity scheme following consumption theme)
Slide 2: India Consumption Opportunity
India Consumption Opportunity
Slide 3: India's Consumption Opportunity
India’s Consumption Opportunity Source : Morgan Stanley India consumer foundation report dt 19-07-2022 Note: The above data should not be construed as a promise, guarantee on or a forecast of any minimum returns and should not in any way construed to returns of any of Nippon India Mutual Fund Scheme
Slide 4: India Consumption drivers last few years
India Consumption drivers last few years • PMGSY – Pradhan Mantri Gram Sadak Yojana PMAY – Pradhan Mantri Awas Yojana Note: This information is meant for general reading purposes only and should not be construed as an investment advice or direct or indirect solicitation for the scheme or the perform
Slide 5: Much more than just FMCG (Fast Moving Consumer Goods)
Much more than just FMCG(Fast Moving Consumer Goods) • High growth segments within broader consumption universe – • Quick Service Restaurants, Food Delivery players • Apparel / Footwear / Jewelry Retailers, e-commerce, digital media • Home Improvement / Renovation products like paints, tiles, electr
Slide 6: Necessities dominate consumption at lower income
Necessities dominate consumption at lower income Source : Morgan Stanley India consumer foundation report dt 19-07-2022 • Hierarchy of needs • Investments in infrastructure, education, quality of life IN: India; RU: Russia; JP: Japan; FR: France; US: United States; UK: United Kingdom; IT: Italy; BR:
Slide 7: Consumption shifts as Income Rises
Consumption shifts as Income Rises Illustration of consumption pattern of a high-income country, UK (2020) – Preference for discretionary spends as Income level rises Source : JPMorgan Europe Equity Research, General Retail July 22 Chartbook dt 13-07-2022 The sectors mentioned in the table is not a
Slide 8: India income-wise household profile and inflection points
Inflection points differ India Income wise household profile indicates likely growth in higher income classes As observed in Developed Countries that as the per capita income increases like especially over $2000 like in case of India there is marked shift from basic needs to Lifestyle & Aspirational
Slide 9: Key trends in consumption
Key trends in consumption Trends Implications • Faster growth of higher income • Discretionary spend may grow segments faster than staples • Faster adoption of trends – due • Distribution alone cannot be to internet, social media source of success • Rising share of youth in • Sharper differentiation
Slide 10: Rationale for Consumption Theme
Rationale for Consumption Theme • Private consumption - 60% of India’s GDP • Investment growth not at the cost of Consumption growth, rather improving visibility to latter through job creation and income growth • Discretionary consumption growth may accelerate with GDP per Capita • Large, well-diver
Slide 11: Nippon India Consumption Fund – Positioning & Strategy
Nippon India Consumption Fund – Positioning & Strategy
Slide 12: Investment Framework
Investment Framework Portfolio Construction philosophy • Prefer steady compounders / penetration themes; open to tactical mispricing ideas also. • Diversified portfolio. Tends to balance between growth and stability attributes of sub-segments • Market cap agnostic for stock selection. Overall portfo
Slide 13: Current Valuations and NICF portfolio approach
Current Valuations and NICF portfolio approach Approach to valuations • Growth potential & quality of business are more critical criteria for stock selection & sizing – ahead of valuations. • Gap in relative multiples Vs gap in fundamentals • Absolute market cap helps to provide sanity check • Diver
Slide 14: Current Positioning
Current Positioning Overweight Themes Underweight Themes • Alcoholic beverages • Core Staples (Food, Home & Personal Care) • Quick service restaurants • Telecom • Hospitality & Leisure • Autos • Retail Financial products • Apparel/Footwear • Hospitals & Diagnostics Market Capitalization (excluding C
Slide 15: Top Holdings as of Sep 30, 2022
Top Holdings as of Sep 30, 2022 Top 10 Holdings Weightage Top 10 Sectors Weightage ITC Limited 6.65% Consumer Durables 12.36% Westlife Development Limited 5.10% Leisure Services 11.86% Sapphire Foods India Limited 4.43% Diversified FMCG 10.53% VST Industries Limited 3.96% Retailing 9.78% Godrej Cons
Slide 16: Scheme Performance
Scheme Performance Different plans shall have a different expense structure. The performance details provided herein are of Growth Plan (Regular Plan). NA has been mentioned as the benchmark data for corresponding period is not available Source : MFI Explorer, As on Sep 30, 2022 B: Benchmark, AB: Ad
Slide 17: Performance of other funds managed by the Fund Manager
Performance of other funds managed by the Fund Manager Mr. Amar Kalkundrikar has been managing Nippon India Balanced Advantage Fund since Oct 2020, Nippon India Vision Fund since Jun 2021. Source : MFI Explorer, As on Sep 30, 2022 Past performance may or may not be sustained in future and the same m
Slide 18: Product Labels
Product Labels Nippon India Bolero’ Advantage Fund Fund Riskometer Benchmark Riskometer location fund) pen ende Nippon India Balanced CRISIL Hybrid 50+50 - This product is suitable for in is whe Gi ing’: Advantage Fund Moderate Index * Long term capital growth * Investment in equity & equity related
Slide 19: Disclaimer
Disclaimer The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers Certain factual and statistical information (historical as
Slide 20: Thank you for your time!
<> Nippon Life ici Asset Management Ltd / Thank you for your time! Le Good gets MW
Nippon India Mutual Fund — Investor Presentation (September 2022) on 6ix