Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Nippon India Nifty IT Index Fund — Investor Presentation (July 2024)
24 slides from Nippon Life India Asset Management's investor presentation, July 2024
Slide 1: Nippon India Nifty IT Index Fund
Nippon India Nifty IT Index Fund (An open-ended scheme replicating/tracking Nifty IT Index) Product Label Scheme Riskometer Benchmark Riskometer This product is suitable for investors who Nippon India Nifty IT Index Fund Nifty IT TRI are seeking*: Long term capital growth Investment in equity and eq
Slide 2: Advantages Of Index Fund
Advantages Of Index Fund y @ Nippon indis Mutual Fund 2 Wealth sets you Free
Slide 3: Benefits of Investing in an Index Fund
Benefits of Investing in an Index Fund ▪ Constructed to track an index ▪ Open ended mutual fund ▪ Diversification through a single unit ▪ Generally lower expense ratio as compared to an active managed mutual fund ▪ Performance tracking the underlying benchmark index (subject to expense ratio & track
Slide 4: Nifty IT Index
Nifty IT Index y @ Nippon indis Mutual Fund 4 Wealth sets you Free
Slide 5: Nifty IT Index – Methodology
Nifty IT Index – Methodology ▪ Companies should form part of – Universe ✓ Nifty 500^ ✓ IT sector Eligibility ▪ The company should have a minimum listing history of 1 month as on cutoff date ▪ Final selection of top 10 companies shall be done based on the free-float Selection and market capitalizatio
Slide 6: Nippon India Nifty IT Index Fund – Portfolio
Nippon India Nifty IT Index Fund – Portfolio Portfolio Weightage Weightage Sr No. Stocks Sr No. Stocks (%) (%) 1 Infosys Ltd 26.9 7 Persistent Systems Ltd 5.4 2 Tata Consultancy Services Ltd 24.7 8 Coforge Ltd 4.3 3 HCL Technologies Ltd 9.7 9 Mphasis Ltd 2.5 4 Tech Mahindra Ltd 9.6 10 L&T Technology
Slide 7: Evolution of Indian IT Services Business
Evolution of Indian IT Services Business Phase-4: Digital, workplace transformation (2020s post COVID-19) Emerging technologies Cloud, platforms, analytics and Generative AI, etc. Phase-3: IT transformation, Significantly lower value-added services – higher dependence on visa end services (2010s
Slide 8: Indian IT – Multiple Growth Drivers
Indian IT – Multiple Growth Drivers 1. Global Spending: ▪ Industries spend between 5-10% of revenue on technology. ▪ The global spend on IT services, BPM and Software products was USD 1.9 tn in CY2022 out of which 40% is outsourced. ▪ India’s share of global outsourced spending is ~57-58%, while the
Slide 9: Nifty IT – Recent Past
Nifty IT – Recent Past 1. Cut in Discretionary Spending: ▪ Cut in discretionary spending by enterprises led to pressure on existing revenue base for Indian IT companies. ▪ Additionally shorter period/ small size deals impacted the growth momentum. 2. Slowdown in Decision Making: ▪ Initial impact was
Slide 10: Nifty IT – What Lies Ahead?
Nifty IT – What Lies Ahead? 1. Better Macro in Developed Markets: ▪ IT companies are expected to see higher growth backed by – (i) Better spending environment and (ii) Macro indicators like inflation & interest rate cycle to provide comfort ▪ However, continued geo-political volatility and elections
Slide 11: Nifty IT – Valuations
Nifty IT – Valuations Price-to-Earnings (P/E) Ratio Nifty IT valuation Dates Nifty IT PE Nifty 50 PE Premium to Nifty 50 Current 28-Jun-24 30.3 22.9 32% 10 years back 30-Jun-14 21.2 20.7 3% 45.0 Nifty IT PE – Historical chart 39.6x 40.0 35.0 10 Year Historical Average PE - 23.4X 30.0 30.3x 25.0 20.0
Slide 12: Performance of Nifty IT Index
Performance of Nifty IT Index 12
Slide 13: Performance – Since Inception
Performance – Since Inception of Nifty IT Index Performance Absolute (%) Compound Annualized (%) Index Name 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Nifty IT TRI 1.4 7.3 4.2 8.4 28.5 18.5 18.3 Nifty 50 TRI 3.7 6.7 6.6 22.9 24.5 13.7 14.0 410,000 Period: June 30, 1999 to Jun 28, 2024
Slide 14: Performance – Rolling Returns
Performance – Rolling Returns Outperformance of Nifty IT vs Nifty 50 on Rolling Returns Particulars 1 Year 3 Years 5 Years 10 Years No. of Instances 5842 5343 4834 3595 % Instances Outperformed 50% 53% 53% 61% 20 16.8 17.1 15.9 15.7 15.6 15.4 14.9 15 14.2 Average CAGR (%) 10 5 0 1 Year 3 Years 5 Yea
Slide 15: Correlation
Correlation Correlation based on Rolling Returns Nifty IT vs Nifty 50 Year 1 Year 5 Year 10 Year 15 Year 15 Year 0.18 10 Year 0.28 5 Year 0.52 1 Year 0.73 ➢ Nifty IT Index has lower correlation vs Nifty 50 in longer periods helping portfolio diversification Past performance may or may not be sustain
Slide 16: Performance – Calendar Year Returns
Performance – Calendar Year Returns 167.6 170 130 90 60.2 57.9 62.3 Returns (%) 50 30.8 25.9 20.1 26.4 14.6 11.0 10 1.5 -0.2 -5.3 -30 -17.1 -24.5 -70 2022 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2023 ➢ Nifty IT Index has given positive returns in 11 out of 15 calendar years
Slide 17: Performance – Calendar Year Returns Vs Nifty
Performance – Calendar Year Returns Vs Nifty 50 70 +52% +21% +42% +37% 60 50 40 30 Returns (%) 20 10 0 -10 -20 -30 2018 2013 2014 2015 2016 2017 2019 2020 2021 2022 2023 Nifty IT TRI Nifty 50 TRI ➢ Nifty IT has given stronger outperformance vs Nifty 50 index when in momentum ➢ Nifty IT underperforma
Slide 18: Performance – Rolling SIP Analysis
Performance – Rolling SIP Analysis Particulars 1 Year 3 Years 5 Years 10 Years No. of Observations 289 265 241 181 Instances of Positive Returns 67% 83% 96% 100% Average Returns 19% 17% 18% 16% Standard Deviation 42% 19% 10% 3% ➢ Rolling SIP in Nifty IT Index has generated consistently higher return
Slide 19: Fund Overview
Fund Overview y @ Nippon india Mutual Fund 19 Wealth sets you Free
Slide 20: Nippon India Nifty IT Index Fund – About The Scheme
Nippon India Nifty IT Index Fund – About The Scheme Investment objective The investment objective of the scheme is to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty IT Index before expenses, subject to tracking errors. There is no assu
Slide 21: Why Invest in Nippon India Nifty IT Index Fund
Why Invest in Nippon India Nifty IT Index Fund • Provides exposure to top 10 Information Technology Sector Exposure stocks listed on NSE • Elimination of non-systematic risks like stock picking Reduced Risk and portfolio manager selection • Will also allow non-demat account holders to seek Convenien
Slide 22: Nippon India Nifty IT Index Fund – Details
Nippon India Nifty IT Index Fund – Details Scheme Features Benchmark Index Nifty IT TRI Fund Manager Himanshu Mange Load Structure Exit Load : NIL Minimum application During Ongoing Basis: amount (during NFO Minimum amount of Rs.1,000 and in multiples of Re.1 thereafter & ongoing basis) Additional a
Slide 23: Disclaimer
Disclaimer • Risk Factors: Mutual Funds and securities investments are subject to market risks such as trading volumes, settlement risk, liquidity risk and default risk including the possible loss of principal and there is no assurance or guarantee that the objectives of the Scheme will be achieved.
Slide 24: Thank you for your time!
<Q) Nippon india Mutual Fund Wealth sets you free Thank you for your time! y @ Nippon india Mutual Fund 24 Wealth sets you Free
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