Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Nippon India Mutual Fund — Investor Presentation (March 2024)
27 slides from Nippon Life India Asset Management's investor presentation, March 2024
Slide 1: Nippon India Small Cap Fund
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Slide 2: Monthly Outlook – Equity
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Slide 3: Current Macro Landscape
Current Macro Landscape 04 Private & Confidential: Not for Public circulation 03 02 Risk on Rally in Asset Classes – Equity Outperforms 01 Weaker USD, Commodity prices bottoming out Interest rates shift from Higher Inflation for Longer moderating across shifting to lower geographies Note – Data as o
Slide 4: India Strategy: A year of Ups and Downs
India Strategy : A year of Ups and Downs • In CY23, the Indian markets remained resilient and strong amid weak global macros, rising interest rates, and geopolitical uncertainties that kept global markets volatile and jittery. • The Nifty-50 clocked eight successive years of positive returns. The be
Slide 5: India's market capitalization-to-GDP ratio at an all-time high
India’s market capitalization-to-GDP ratio at an all-time high as of year-end closing • India’s market capitalization-to-GDP ratio continues to remain strong. The ratio stands at 132% as of FY24, much above its long term average of ~80%. • India’s Real GDP growth came in much higher than expected at
Slide 6: Healthy market returns seen three months prior to the general election results
Healthy market returns seen three months prior to the general election results • Market performance has remained healthy three months prior to the Lok Sabha election results • The performance was strong in the past three out of four general elections. Indices’ returns YoY (%) Private & Confidential:
Slide 7: Mid and small cap rally takes a pause in Mar'24
Mid and small cap rally takes a pause in Mar’24 • After a sharp rally in the past one year, mid and small caps underperformed large caps in Mar’24 • While mid caps recovered after the sharp fall and ended flat during the month, small caps declined 5% MoM • Market cap of large/mid/small cap companies
Slide 8: Small and micro caps witness a sharp correction from their recent highs
Small and micro caps witness a sharp correction from their recent highs • Market cap for small cap and micro cap companies declined 10% and 8%, respectively, from their Mar’24 highs • Market cap for large/mid/small/micro cap indices rose 31%/57%/80%/70% YoY in FY24. Private & Confidential: Not for P
Slide 9: Domestic and Foreign Institutional Investor flows
Domestic Institutional Investors monthly flows the highest since Apr’20; Foreign Institutional Investors flows turn strong in Mar’24 • FII flows turned strong in Mar’24 with inflows of USD4.0b. FIIs remain net buyers with USD1.4b of inflows in CY24YTD. • DII flows remained strong during the month an
Slide 10: Intra-year Corrections and Returns
Intra-year Corrections and Returns Private & Confidential: Not for Public circulation • Out of 33 years, while markets always had an interim decline, only in 7 years did the market end the year with negative returns. In other words, for 26 out of 33 years, the markets ended in positive despite the t
Slide 11: MSCI India outperforms global markets in the last one year
MSCI India outperforms global markets in the last one year • Performance of the MSCI India index vs. MSCI US, MSCI World, MSCI Emerging Market, and MSCI China indices, in USD terms Private & Confidential: Not for Public circulation *Indices rebased to 100 Note – Data as on 31st March,2024 Source : B
Slide 12: Equity View March 2024 and Outlook
Equity View March 2024 and Outlook • Indian economy continues to remain robust supported by demographic tailwinds, policy and structural reforms. Key lead indicators like tax collections, industrial activity, power demand continues to be buoyant. • Moderating inflation, pick up in the private sector
Slide 13: Nippon India Small Cap Fund
Nippon India Small Cap Fund (An open-ended equity scheme predominantly investing in small cap stocks)
Slide 14: Emergence of Small Caps to Large Caps
Emergence of Small Caps to Large Caps Today’s Small …Are Tomorrow’s Potential Caps …. Which May Eventually Mid Caps, Become Large Caps Small Caps Mid Caps Large Caps
Slide 15: Investment Strategy – Long Term Investment Approach
Investment Strategy – Long Term Investment Approach ❑ Relatively high risk/ relatively high return fund • Allocation to small cap stocks – aims to maximize return potential • Tactical allocation to other market caps – aims to minimize risk ❑ Right Risk: Focus on good quality co’s with scalable busin
Slide 16: Fund Casing Framework
Fund Casing Framework Funds Nippon India Small Cap Fund Market Cap Bias Minimum Small Cap - 65% Style Style-diversified Maximum Sector Deviation from Bottom-up as per Model Portfolio. Benchmark No Sector Limits Single Stock Concentration Max 4% in any stock (Active Breach) Cumulative Stock Concentra
Slide 17: QoQ Sector Allocation Trend
QoQ Sector Allocation Trend The above sector names mentioned are illustrations of the fund philosophy and may not necessarily form part of the scheme portfolio Note: The current fund philosophy may change in future depending on market conditions or fund manager’s views. The above sector names mentio
Slide 18: Attribution Analysis for 3 months
Attribution Analysis for 3 months Top 5 Allocation Groups by Active Weight Bottom 5 Allocation Groups by Active Weight Active Active Attribution Attribution Group Name Average Group Name Average Total (%) Total (%) Weight (%) Weight (%) Consumer Discretionary 3.84 0.18 Consumer Staples -6.32 0.51 In
Slide 19: Current Positioning and Rationale
Current Positioning and Rationale • Overweight consumer given the growing per capita income, aspirational demand, favorable demographics and lifestyle changes. • Underweight in the health care sector as it faces a year of unprecedented transformation and challenges. Providers worldwide continue to c
Slide 20: Portfolio Details (As on Mar 31, 2024)
Portfolio Details (As on Mar 31, 2024) Top 10 Holdings Weightage Top 10 Sectors Weightage Tube Investments of India Limited 2.39% Industrial Products 8.35% HDFC Bank Limited 1.95% Electrical Equipment 8.15% Voltamp Transformers Limited 1.83% Banks 6.57% Apar Industries Limited 1.65% Auto Components
Slide 21: Market Cap Allocation
Market Cap Allocation 14% 15% 71% Large Cap Mid Cap Small Cap Note: The current fund philosophy may change in future depending on market conditions or fund manager’s views. The sectors mentioned are not a recommendation to buy/sell in the said sectors. The scheme may or may not have future position
Slide 22: Scheme Performance
Scheme Performance Performance as on March 31, 2024 B: Benchmark, AB: Additional Benchmark, TRI: Total Return Index TRI - Total Returns Index reflects the returns on the index arising from (a) constituent stock price movements and (b) dividend receipts from constituent index stocks, thereby showing
Slide 23: Performance of Other Schemes managed by Samir Rachh
Performance of Other Schemes managed by Samir Rachh Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Performance of the schemes (wherever provided) are calculated basis CAGR for the past 1 year, 3 years, 5
Slide 24: Performance of Other Schemes managed by Tejas Sheth
Performance of Other Schemes managed by Tejas Sheth Mr. Tejas Sheth has been managing Nippon India Multi Asset Fund since Oct 2020 Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Performance of the scheme
Slide 25: Product Labels
Product Labels Nippon India Multi Asset Fund . : z Fund Riskometer Benchmark Riskometer {An open ended scheme investing in Equity, Debt and Exchange Traded Commodity Derivatives and Gold ETF) 50% of S&P BSE 500 TRI, 20% of MSC! World o i i { Index TRI, 15% of CRISIL Short Term Bond This product is s
Slide 26: 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 27: Thank you for your time!
<Q) Nippon india Mutual Fund y Wealth sets you free Thank you For your time! L Good gets Ae
Nippon India Mutual Fund — Investor Presentation (March 2024) on 6ix