Shriram Asset Management Co. Ltd. · BSE:SRAMSET
Shriram Asset Management — Investor Presentation (November 2024)
31 slides from Shriram Asset Management's investor presentation, November 2024
Slide 1: Are you old fashioned -- or with the trend?
Are you old fashioned -- or with the trend? Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Slide 2: Contribution of sectoral / thematic funds has grown significantly in the mutual fund industry
Contribution of sectoral / thematic funds has grown significantly in the mutual fund industry Sector/Thematic AUMs have grown 20x in 10 years, with 3 With a sharp increase in share of net times the number of funds… inflows in equity mutual funds 4.67 Sectoral/Thematic Funds Net Inflow as % of AUM (R
Slide 3: Sectors go through cycles, leading to behavioural sector traps
However, sectors also go through their cycles, leading to potential behavioural sector traps for investors NIFTY IT: 2011 to 2017 (pre Covid) Sector Trap FOMO entry + Stuck in Exit 14,000 Ride the Sector Trend Timely Entry + Timely Exit 12,000 Disclaimer: The above sector is used to explain 10,000 t
Slide 4: Behavioural sector traps repeat themselves in every cycle
Behavioural sector traps repeat themselves in every cycle NIFTY IT: 2020 to 2024 (during and post-Covid) Sector Trap 45,000 FOMO entry + Stuck in Exit Ride the Sector Trend 40,000 Timely Entry + Timely Exit 35,000 Disclaimer: The above 30,000 sector is used to explain the concept and is for illustra
Slide 5: What if we could do a timely sector switch?!
What if we could do a timely sector switch?! Sector rotation from IT to FMCG 70000 Rotated to FMCG FMCG 60000 Sector 50000 Rotation from IT to FMCG Disclaimer: The above sector is used to explain 40000 the concept and is for illustration purpose only. It FMCG IT should not be construed as investment
Slide 6: What if we could catch the right sector at the right time across sectors?
And what if we could catch the right sector at the right time across sectors? Top 5 sectors by returns for each year # AMFI Sectors FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25* 1 Information Technology 30% 0% -8% 18% 25% -16% 104% 37% -22% 21% 18% 2 Automobile and Auto Components 50% -8%
Slide 7: All the research and advice indicates the potential of this strategy
All the research and advice indicates the potential of this strategy “The emerging evidence suggests that … sector rotation strategies tend to “If you are in produce returns above the benchmark, the right sector both during contractionary and at the right expansionary monetary policy regimes” time,
Slide 8: Introducing Shriram Multi Sector Rotation Fund (SMURF)
Introducing Shriram Multi Sector Rotation Fund (SMURF) (An open-ended scheme investing in equity and related instruments following multi sector rotation theme) Avoid sector traps, ride sector trends sahi hai The scheme would have exposure in equities following the theme of multi-sector rotation with
Slide 9: Jaisa Sector Trend, Waisa Aapka Portfolio
Jaisa Sector Trend, Waisa Aapka Portfolio 9 www.shriramamc.in/smurf
Slide 10: Why SMURF: avoid sector traps, ride sector trends
Why SMURF: avoid sector traps, ride sector trends 1 Focuses on 3 to 6 sectors in one Diversification of risk fund 2 Rotates across trending sectors Avoid sector traps 3 No capital gains tax when fund Tax efficient for investor manager rebalances 10 www.shriramamc.in/smurf
Slide 11: Refer Scheme Information Document for investment strategy details
To know more in detail about the investment strategy please refer Scheme Information Document available on www.shriramamc.in/smurf 11 www.shriramamc.in/smurf
Slide 12: We have a 2 tiered approach to managing SMURF
We have a 2 tiered approach to managing SMURF 1 OVERALL SECTOR ALLOCATION (across sectors) Top down Quantamental sector selection Monthly rebalancing 2 STOCK IDENTIFICATION (within each sector) Bottom up Quantamental stock selection 12 www.shriramamc.in/smurf
Slide 13: 1. Sector Selection Strategy
1. SECTOR SELECTION STRATEGY www.shriramamc.in/smurf
Slide 14: Trending sectors are selected using a Quantamental approach
Trending sectors are selected using a Quantamental approach Sectoral Index Construction Quantitative analysis Indices created for the Multi-factor models run sectors on sector indices NSE 500 Sectoral Indices Sector Scores Sector ranking Identifying Top 3 to 6 Trending Sectors Sector finalisation Fu
Slide 15: Quant model sector rankings an input for final sector selection
Quant model sector rankings an input for final sector selection Automobile and Auto Components 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Rank S A J J M A M F J D N O S A J J M A M F J D N O S A J J M A M F J D N O S A J J M A M F J D N O S A J J M A M F J D N O S A J J M A M F J D N O S A J
Slide 16: 2. Stock Selection Process
2. STOCK SELECTION PROCESS www.shriramamc.in/smurf
Slide 17: Stock selection using proprietary Enhanced Quantamental Investment (EQI) model
Stock selection within sectors is done based on our proprietary Enhanced Quantamental Investment (EQI model) 3 to 6 trending Sectors Final Portfolio Stock Isolate stocks of the Portfolio Final list of listing top 3 to 6 sectors Construction weighted stocks by sector Quantitative Fundamental Models a
Slide 18: Back tested performance of Internal Model
Back tested performance of Internal Model** Financial Year Returns: Period FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25~ BACK TESTED DATA (INTERNAL MODEL)** -8.3% 23.8% 12.6% 8.5% -2.9% 117.7% 36.5% 2.5% 73.1% 27.6% NIFTY 500 (Benchmark) -7.5% 23.9% 11.5% 8.4% -27.6% 76.0% 21.0% -2.3% 39.1% 19.
Slide 19: Systematic monthly investment: Back tested performance of Internal Model
Systematic monthly investment: Back tested performance of Internal Model** ~As on 30th Sep’24 Period~ 10Y 7Y 5Y 3Y 2Y 1Y BACK TESTED DATA (INTERNAL MODEL)** 32.1% 38.9% 44.7% 46.1% 57.9% 60.1% Nifty 500 (Benchmark) 17.2% 20.3% 24.7% 26.8% 34.6% 40.5% Alpha 14.9% 18.6% 20.0% 19.3% 23.3% 19.6% Nifty 5
Slide 20: Rolling Return: Back tested performance of Internal Model
Rolling Return: Back tested performance of Internal Model** ~As on 30th Sep’24 Period 1 Year 2 Years 3 Years 4 Years 5 Years BACK TESTED (INTERNAL MODEL)** 29.7% 26.6% 26.6% 26.7% 25.7% Nifty 500 (Benchmark) 14.3% 13.1% 13.1% 12.6% 11.7% Alpha 15.4% 13.5% 13.5% 14.0% 13.9% Nifty 50 12.5% 12.1% 12.3%
Slide 21: Drawdown Analysis – Internal Model
Drawdown Analysis – Internal Model** Covid Crisis: 3 months of drawdown (Dec’2019 to March’2020) Particular NIFTY 50 Back tested (Internal Model)** Benchmark: NIFTY 500 Max Drawdown -38.44% -30.97% -38.30% Months to recover 8 3 8 Data source: Back tested data (Internal model) Price data: Capital Lin
Slide 22: Back tested performance chart of Internal Model
Back tested performance chart of Internal Model** Back tested (internal model)** Rs.1703 Back Tested (Internal Model)** NIFTY 500 (Benchmark) Nifty 50 This internal model may go through periodic revision (as and when required), resulting in addition or Benchmark* Rs.418 deletion of parameters and th
Slide 23: Back tested performance chart of Internal Model
Back tested performance chart of Internal Model** Pre Covid During Covid Post Covid Back Tested (Internal Model)** Back Tested (Internal Model)** Back Tested (Internal Model)** NIFTY 500 (Benchmark) NIFTY 500 (Benchmark) NIFTY 500 (Benchmark) NIFTY 50 NIFTY 50 NIFTY 50 681 277.8 This internal model
Slide 24: So, why Shriram Multi Sector Rotation Fund?
So, why Shriram Multi Sector Rotation Fund? Multiple Sectors, Multiple Benefits Diversified risk - Focused exposure to 3 to 6 trending sectors, all within one fund Avoid sector traps, no FOMO - Seamlessly rotate across multiple sectors that are trending due to better earnings expectation, minimizing
Slide 25: Fund profile
Fund profile Indicative Allocations Instruments (% of total assets) Minimum Maximum A. Equity and Equity-related Instruments following the 80% 100% multi sector rotation theme * B. Other equity and Equity-related Instruments* 0% 20% C. Money Market Instruments and Cash 0% 20% *Including Derivatives
Slide 26: Fund Information
Fund Information FUND DETAILS FUND NAME SHRIRAM MULTI SECTOR ROTATION FUND FUND TYPE An open-ended scheme investing in equity and related instruments following multi sector rotation theme FUND CATEGORY Equity Scheme – Thematic SCHEME OBJECTIVE The investment objective of the scheme is to generate lo
Slide 27: Fund Managers
Fund Managers Mr. Deepak Ramaraju serves as the Head of Equities at Shriram AMC Ltd. He has over 18 years of experience in the equity markets and is a chemical engineer by academic background. • He began his investment career with Sanlam Investment Management (South Africa’s top 3 asset managers), w
Slide 28: Shriram Multi Sector Rotation Fund NFO details
Shriram Multi Sector Rotation Fund (An open-ended scheme investing in equity and related instruments following multi sector rotation theme) NFO opens on : 18 Nov 2024 NFO closes on : 2 Dec 2024 NFO Price : Rs.10 per unit Allotment Date : 9 Dec 2024 Re-opening on : 13 Dec 2024 www.shriramamc.in/smurf
Slide 29: Riskometer
Riskometer Shriram Multi Sector Rotation Fund (An open-ended scheme investing in equity and related instruments following multi sector rotation theme) This product is suitable for investors who are seeking**: Scheme Riskometer Benchmark Riskometer • Capital appreciation over medium to long term in a
Slide 30: Disclaimer & Risk Factors
Disclaimer & Risk Factors NSE Indices Ltd Disclaimer: NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of the Index or any data included therein and NSE INDICES LIMITED shall have not have any responsibility or liability for any errors, omissions, or interruptions therein. N
Slide 31: Scan to know more
Scan to know more Mutual Fund investments are subject to market risks, read all scheme related documents carefully. www.shriramamc.in/smurf
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