Bandhan Gold ETF NFO · NSE:GOLDBND
Bandhan Gold ETF NFO — Bandhan Mutual Fund — Investor Presentation (September 2024)
31 slides from Bandhan Gold ETF NFO's investor presentation, September 2024
Slide 1: Introducing Bandhan Business Cycle Fund
Bandhan "> MutualFund _ Badhte Raho Aim to navigate efficiently through Business Cycles Introducing Bandhan Business Cycle Fund (An open-ended equity scheme following a business cycle-based investing theme.) | Invest Now | NFO Opens: 10" September 2024 NFO Closes: 24't September 2024
Slide 2: What is a Business Cycle?
Ply nia all What isa Business Cycle?
Slide 3: The Business Cycle Explained
The Business Cycle Explained The economy reaches its high point; businesses operate at their peak. Economic activity slows, business Businesses thrive, incomes earnings decline and consumer rise, and consumer spending reduces. spending increases. The economy hits a low point; businesses struggle, an
Slide 4: The Business Cycle: Navigating Through Economic Phases
The Business Cycle: Navigating Through Economic Phases Economic Cycles India GDP Growth Expansion Contraction Covid period 15 10 LTA GDP: 6.6% Growth (%) 5 0 -5 -10 Economic Expansion - India's GDP growth above its long-term average Economic Contraction - India's GDP growth below its long-term avera
Slide 5: Phases Of The Economy Also Influence The Cycles Of The Equity Market
Phases Of The Economy Also Influence The Cycles Of The Equity Market Earnings and valuations are also cyclical and so are equity Æ©ßmarket returns 50 P/E EPS Growth % - RHS 60% Nifty 500 - 1 Year Rolling Returns % 100 40 40% 25% EPS Growth 60 30 20% Returns % 20 P/E 20 0% 24.1 -20 10 -20% -60 0 -40%
Slide 6: Why choose a Business Cycle Fund?
Why choose a Business Cycle Fund?
Slide 7: Each Phase Of The Economic Cycle Unlocks Unique Opportunities
Each Phase Of The Economic Cycle Unlocks Unique Opportunities Economic Credit Capacity Interest Corporate Positive Neutral to Phase Capex Unemployment Activity Growth Utilisation Rates Earnings Sectors Negative Sectors • Financials • IT Rise in • Consumer • Consumer Begins to EXPANSION Rebounding In
Slide 8: Winners And Losers Vary Across Each Cycle
Winners And Losers Vary Across Each Cycle SECTOR CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 YTD CY24 Auto 34.9% -19.4% 42.5% 9.4% 56.7% -0.3% 10.7% 31.4% -23.1% -10.7% 11.5% 19.0% 15.3% 47.6% 36.0% Energy 3.4% -28.7% 13.8% 0.4% 8.5% -0.7% 19.7% 38.7% 0.6% 11.0% 6.4% 33.7%
Slide 9: Case I Infrastructure Sector - Growth Driven by Capex
Case I Infrastructure Sector - Growth Driven by Capex Government and private sector capex can significantly boost returns in the infrastructure sector. Expansion phase Sector performance Æ©ß India Capex (Rs. trillion) Nifty Infrastructure Index 25 140 10,500 116.0 120 9,500 9,134 20 100 8,500 68.8 1
Slide 10: Case II Real Estate Sector – Supply-Demand Dynamics
Case II Real Estate Sector – Supply-Demand Dynamics Favourable supply-demand dynamics can enhance returns in the real estate sector. Expansion phase Sector performance Æ©ß Favourable demand supply until FY24 Nifty Real Estate Index 800 800 1,200 1,105 700 700 1,000 600 600 500 500 800 400 400 600 30
Slide 11: Case III Sector Returns Across Economic Phases
Case III Sector Returns Across Economic Phases Auto sector - OPF during the expansion phase IT sector - OPF during the contraction phase 250% 80% Nifty Auto Nifty 500 Nifty IT Nifty 500 Rolling 12M Returns 200% Rolling 12M Returns 60% 150% 40% 100% 20% 50% 0% 0% -50% -20% -100% -40% PSU banks - UPF
Slide 12: Why invest in Bandhan Business Cycle Fund?
Why invest in Bandhan Business Cycle Fund?
Slide 13: A 360-Degree Investment Approach
A 360-Degree Investment Approach Sector Cycle Sector-specific drivers like demand, supply, profitability, capacity creation, and others along with a bottom-up Economic Cycle approach for stock Macroeconomic parameters selection. Business 360◦ such as GDP growth, interest rates, inflation, currency,
Slide 14: Robust Stock Selection Framework
Robust Stock Selection Framework Sector Selection Stock Selection Portfolio Creation Management Quality Identify the + Sectors Company = Fundamentals Valuations Valuations Top-down approach Bottom-up approach Robust approach Above is a broader approach based on the fund manger view. However, the ove
Slide 15: Sector Selection (1.1) - Economic Indicators Leading to Sector Opportunities
Sector Selection (1.1) - Economic Indicators Leading to Sector Opportunities Indicator FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 M3 (% YoY) 14.3 13.9 12.7 13.1 13.1 12.5 14.5 14.2 13.0 12.6 11.3 10.9 10.7 10.9 10.6 10.7 10.3 11.2 8.2 7.4 6.8 6.3 8.3 10.1 10.3 10.2 10.3 10.6 10.1 10
Slide 16: Sector Selection (1.2) - Equity Market Sentiment Indicators
Sector Selection (1.2) - Equity Market Sentiment Indicators Index 1 Year 3 Year 5 Year P/E – 1 Year EPS CAGR Country ROE (CY24,%) Levels Return (%) Returns (%) Returns (%) Forward (CY25/CY23%) India 24,117 22.8 15.7 19.1 20.2 13.2 15.3 United States 16,642 20.0 4.7 16.5 26.8 18.1 15.9 Taiwan 20,870
Slide 17: Stock Selection: Bottom-up approach
Stock Selection: Bottom-up approach Strong corporate governance, pedigree of management, efficient capital allocation, proven track record, sustainable business model, alignment with shareholder Management interests Quality Earnings growth and resilience, return Company Fundamentals ratios like ROE,
Slide 18: Building the Portfolio: A Strategic Approach
Building the Portfolio: A Strategic Approach Quantitative Market Cap Assessment Flexibility Actively monitor high- Invests across frequency indicators to market cap segments identify opportunities. without bias. Active Risk Management Management Substantial deviation in exposure to at Flexibility wi
Slide 19: Illustration – Sector Deviation
Illustration – Sector Deviation Top 5 sectors Banks 20 Absolute Deviation 12 18 in index by Industrials 16 Deviation from Index weight (%) Consumer Discretionary 12 16 Materials 9 Banks -1.9% -11% 5 9 Information Technology 12 Industrials 4.2% 26% 9 Financial Services 12 Consumer Energy 8 4.5% 28% 4
Slide 20: Sector Selection That Played Out: Auto Sector
Sector Selection That Played Out: Auto Sector Dynamic sector allocation Equity Market Economic Fundamentals Indicator 30% 5% Improving earnings Revival in 4.0% 4.1% outlook with fair economic activity. valuations. 2.6% 20% 3% 1.9% 1.7% 10% 1% Business 360◦ 0% -1% ✓ FY20-23: Increased exposure ✓ FY24
Slide 21: Sector Selection That Played Out: Capital Goods
Sector Selection That Played Out: Capital Goods Dynamic sector allocation Economic Indicator Equity Market Improving macroeconomic Fundamentals 50% 9% conditions and rising government capex. Strong domestic 7.1% capital flows. 40% 7% 5.1% 4.4% 4.7% 5% 30% 3.2% 3% Business 20% 360◦ 1% 10% -1% ✓ FY21
Slide 22: Understanding the Risks
Understanding the Risks Market Risk Policy Risk Changes in government Fluctuations in sector policy, such as reduced performance can impact capital expenditure, can overall returns. affect sectors like infrastructure. Competition Financial Risk Business Risk Regulatory changes or adverse External an
Slide 23: About the Fund Managers
About the Fund Managers Over 20 years of experience in the capital market. Current Fund Manager for Bandhan Infrastructure Fund and Bandhan Retirement Fund. Vishal Biraia Sector expertise in utilities, materials, industrials and discretionary consumption. Fund Manager Previous roles in fund manageme
Slide 24: Who Should Consider Investing in this Fund?
Who Should Consider Investing in this Fund? Those looking to Those with a long- Those comfortable enhance their term investment with higher risk in satellite portfolios horizon, seeking pursuit of higher for potential alpha growth through SIP. returns potential. generation. Past performance may or m
Slide 25: Key Takeaway
Key Takeaway 360 Degree Approach Quantitative Analysis A holistic approach to identify investment opportunities based on economic cycles, Actively monitor macro-economic market cycles and sector cycles. indicators, equity market indicators (valuations, returns, etc.) and sector drivers to construct
Slide 26: Fund details
Fund details Type of Scheme An open-ended equity scheme following a business cycle-based investing theme. The scheme seeks to generate long-term capital appreciation by investing predominantly in equity Investment objective and equity-related instruments with a focus on riding business cycles throug
Slide 27: Fund details
Fund details Benchmark Nifty 500 TRI Exit Load • If redeemed/switched out within 30 days from the date of allotment: 0.50% of the applicable NAV • If redeemed/switched out after 30 days from date of allotment – Nil Lumpsum purchase - Rs. 1000/- and in multiples of Re. 1/- thereafter Additional purch
Slide 28: Product Label
Product Label Benchmark Riskometer Scheme Riskometer Bandhan Business Cycle Fund (An open ended equity scheme following a business cycle based investing theme) This product is suitable For investors who are seeking?*: * To create wealth over a long term. ¢ Investment predominantly in equity and equi
Slide 29: Product Label
Product Label Bandhan Infrastructure Fund Bandhan Retirement Fund An open-ended equity scheme investing in Infrastructure sector An open-ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier) 29
Slide 30: Disclaimer
Disclaimer MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. The Disclosures of opinions/in house views/strategy incorporated herein is provided solely to enhance the transparency about the investment strategy / theme of the Scheme and should not be tr
Slide 31: Glossary
Glossary ▪ Business Cycle is the recurring pattern of economic expansion, peak, contraction, and slump that the economy experiences over time. ▪ Expansion: A period of economic growth with rising employment and spending. ▪ Peak: The economy at its strongest, with maximum business growth. ▪ Contracti
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