Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth · BSE:TSIFRG
Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth — Tata Business Cycles Fund — Investor Presentation (September 2022)
21 slides from Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth's investor presentation, September 2022
Slide 1: Tata Business Cycle Fund
TATA BUSINESS CYCLE FUND An open-ended equity scheme following business cycles based investing theme. September 2022 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully
Slide 2: Business Cycles
BUSINESS CYCLES The economy goes through a series of stages as it expands and contracts, characterised by downward or upward fluctuations of GDP. Each Economic Cycle/Business Cycle has 4 phases GDP Recession Recovery Expansion Slowdown Time
Slide 3: Identifying a Phase
IDENTIFYING A PHASE Macro Interest Rates Is Inflation rising or Are people spending on Are people able to find Monetary policy is Conditions falling? necessities or luxuries? work? accommodative or restrictive? Business Interest Rates Are Businesses planning Are factories running at Is credit readil
Slide 4: Characteristics of Business Cycles Phases
GDP CHARACTERISTICS OF BUSINESS CYCLES PHASES • Economic Activity rebounds (GDP, Employment) • Falling Economic • Credit begins to grow Activity • Earnings Recovery • Credit slowdown • Policy still stimulative • Profits Decline • Inventories low, sales • Inventories increase improve & Sales fall • G
Slide 5: What Impacts the Length of a Phase?
WHAT IMPACTS THE LENGTH OF A PHASE? Monetary Policy Fiscal Policy Macro Events Monetary policy impacts Government’s taxation Large scale events like major liquidity in the economy policy impacts the policy changes, bubble bursts, and the cost of credit disposable income with crisis etc impact profit
Slide 6: What Drives the Business Cycle?
WHAT DRIVES THE BUSINESS CYCLE? ➢ Companies innovate and produce ➢ Business activity declines as new products and services. companies and markets mature ➢ They create jobs that help ➢ Continued innovations and individuals build their purchasing improvements have lesser impacts, power. ➢ Consumer spe
Slide 7: Business Cycles Investing
TATA MUTUAL FUND BUSINESS CYCLES INVESTING Poo
Slide 8: Business Cycles Investing
BUSINESS CYCLES INVESTING Individuals can participate in economic opportunities through the investment markets. The returns investors achieve on their investments are driven in large part by changes in the business cycle Recovery & Expansion Slowdown & Recession Investments that are more sensitive t
Slide 9: Cyclicals vs Defensives
CYCLICALS VS DEFENSIVES Cyclical stocks Defensive stocks • Direct relationship to the economy • Defensive/Structural growth Stocks outperform the market when economic growth slows • Companies that make or sell discretionary items and services that are in demand when the • They produce or distribute
Slide 10: Investing in Different Phases
GDP INVESTING IN DIFFERENT PHASES Diversified across Market Cap Predominantly Large Cap • Auto • Utilities More Mid & Small Cap • Metals & Mining Predominantly Diversified & Bottom-up • Pharma • Financials incl. NBFCs • Large Financials stock picking • FMCG • Real estate • Information • Utilities Te
Slide 11: A Top-Down Approach
A TOP-DOWN APPROACH How is the economy doing? ECONOMY INDUSTRY Given the state of the economy, which industry is likely to grow? COMPANY Within a potentially growing industry, which company will gain the most?
Slide 12: The Challenge: Short & Unpredictable Business Cycles
THE CHALLENGE: SHORT & UNPREDICTABLE BUSINESS CYCLES Increasingly dynamic and Active impetus or restrictions responsive monetary policy through government policy Impact of domestic macro Impact of global macro variables variables
Slide 13: Tata Business Cycles Fund
TATA MUTUAL FUND a ‘) : TATA BUSINESS CYCLES FUND =
Slide 14: Investment Strategy
INVESTMENT STRATEGY Investing in sectors Identifying To deploy the business and stocks that are economic trends cycle approach to likely to outperform investing
Slide 15: Focus on Sector Calls
FOCUS ON SECTOR CALLS ✓ CYCLICAL SECTORS They may outperform the broader market during expansionary phase Contraction Expansion ✓ DEFENSIVE SECTORS They may be less sensitive to changes in overall economic activity
Slide 16: A Top Down Approach
A TOP DOWN APPROACH Recovery & Expansion Slowdown & Recession Buy either the sector leaders or Companies Invest in companies from sectors which benefitting exponentially from the sectoral provide lower downside risk during tailwinds during economic and business downcycles upcycle STOCK SELECTION Ext
Slide 17: Fund Characteristics
FUND CHARACTERISTICS The size of the portfolio will vary The churn in the portfolio will depending on the cycle. In a depend on how quickly the cycles contractionary cycle, we may are turning. Sudden upswings or have more stocks compared to an downswings may cause higher expansionary cycle churn SEC
Slide 18: Asset Allocation of the Fund
ASSET ALLOCATION OF THE FUND Indicative allocations (% of net assets) Risk Profile Instruments Minimum Maximum High/Medium/Low Equity and equity related instruments selected on the 80 100 High basis of business cycle Other Equity & Equity related Instruments 0 20 Medium to High Debt and money market
Slide 19: Fund Portfolio (As on 31st August 2022)
FUND PORTFOLIO (As on 31st August 2022) Top 10 Sectors Top 10 Stocks Financial… 28.24% ICICI Bank Ltd. 7.27% Capital Goods 14.90% Reliance Industries Ltd. 5.42% Healthcare 9.63% Larsen & Toubro Ltd. 4.43% Information… 8.26% Bharti Airtel Ltd. 4.19% Oil Gas And… 6.59% State Bank Of India 4.17% Realty
Slide 20: Fund Details
FUND DETAILS Scheme Name TATA BUSINESS CYCLES FUND To generate long-term capital appreciation by investing with focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles. Investment Objective However, there is no assurance or guarantee that
Slide 21: Thank You
THANK YOU Mutual Fund Investments are subject to market risks, read all scheme related documents carefully
Tata Business Cycles Fund — Investor Presentation (September 2022) on 6ix