Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Nippon India Mutual Fund — Investor Presentation (March 2024)
33 slides from Nippon Life India Asset Management's investor presentation, March 2024
Slide 1: Nippon India Multi Asset Fund
Nippon India Multi Asset Fund (An open ended scheme investing in Equity, Debt and Exchange Traded Commodity Derivatives and Gold ETF)
Slide 2: Over the last decade we have seen divergent returns among Asset classes
Over the last decade we have seen divergent returns among Asset classes
Slide 3: Winners keep changing among Asset classes
Winners keep changing among Asset classes Top Performers: Different Asset Classes Equity – 4 years outperform in Gold* - 4 years different years. Debt – 2 years Note: 1) *Gold Futures prices from MCX; 2) For Equity, S&P BSE 100 TRI returns are considered; 3) For Debt, CRISIL Short Term Bond Fund Ind
Slide 4: And even within asset classes
And even within asset classes Returns(%) Equity Even within asset classes there is significant Debt Returns variation in returns. (%) Top Performers in Top Performers in Debt: Equities: • Short Term Debt – 6 • Large Caps - 3 years years • Mid Caps - 2 years • Long Term Debt - 4 years • Small Caps 5
Slide 5: Asset Class Returns can be diverse
Asset Class Returns can be diverse Asset Class Returns in 2011 Asset Class Returns in 2013 32.5 7.6 8.3 7.9 Hence, staying -24.8 -7.9 Gold Equity Debt Gold Equity Debt invested across Asset Asset Class Returns in 2014 Asset Class Returns in 2017 classes is 34.2 quintessenti 33.4 al. 10.5 6.3 6.0 -6.
Slide 6: Asset Allocation is considered to be the Key to Long term wealth creation
Asset Allocation is considered to be the Key to Long term wealth creation It is the asset allocation that makes the difference in the long-term Stock Selection & Others 10% Asset Allocation 90% More than 90% of the portfolio returns are based on asset allocation decisions.* *Source: “Does Asset Allo
Slide 7: Benefits of Asset Allocation
Benefits of Asset Allocation Asset classes follow different cycles over 1 different time periods It is difficult to predict which Asset class will 2 outperform Asset allocation is the key driver of portfolio 3 returns 4 Helps in Portfolio Diversification 5 Leads to Optimal Returns
Slide 8: Presenting Nippon India Multi Asset Fund (NIMAF)
Presenting Nippon India Multi Asset Fund (NIMAF) (An open ended scheme investing in Equity, Debt and Exchange Traded Commodity Derivatives and Gold ETF) A one stop solution which may help to reap benefit of Growth of Equity, Stability of Debt & Diversification from Commodities
Slide 9: Investment Objective & Asset Allocation
Investment Objective & Asset Allocation The primary investment objective of Nippon India Multi Asset Fund is to seek long term capital growth by investing in equity and equity related securities, debt & money market instruments and Exchange Traded Commodity Derivatives and Gold ETF as permitted by S
Slide 10: Current Investment Strategy
Current Investment Strategy - Bottom up stock selection approach across market caps and sectors. Equity and Equity related securities - Blended investment approach (70%) (including - Focus on the scalability of the business model overseas - Investment across geographies through investment in MSCI Wo
Slide 11: Correlation between Asset classes
Correlation between Asset classes Domestic Overseas Correlation Debt Commodity Equity Equity Domestic Equity 1.00 0.50 -0.05 0.41 Overseas Equity 1.00 0.07 0.29 Debt 1.00 -0.73 Commodities 1.00 Weak or negative correlation between asset classes helps in Portfolio Diversification Note: 1) For Equity,
Slide 12: Current Investment Strategy
Current Investment Strategy
Slide 13: Equities and Equity related securities
Equities and Equity related securities
Slide 14: Equity has created significant Long Term Wealth
Equity has created significant Long Term Wealth 80000 S&P BSE Sensex 70000 60000 50000 40000 30000 20000 10000 0 Mar-84 Aug-13 Aug-92 Mar-05 Jul-11 Jul-90 Oct-96 Jun-09 Oct-15 Nov-17 Apr-86 Dec-98 Dec-19 Jan-80 Feb-82 Sep-94 Jan-01 Feb-03 Jan-22 Feb-24 May-88 Rs 1 Lakh invested in S&P BSE Sensex at
Slide 15: Domestic Equity Investment
Domestic Equity Investment The fund primarily invests into Domestic equities and equity related securities. For diversification purpose, the fund may have allocation into Overseas equities/overseas ETFs as per market conditions and prevailing regulations. Stock specific investment approach with blen
Slide 16: Domestic Equity - Investment Framework
Domestic Equity - Investment Framework • Lower Active Share • Deviation from Benchmark in the Top Sectors • Banks & Financials – not more than 25% • Energy, IT and FMCG – not more than 40% • Stock Concentration* • Not more than 4% in any C rated stocks • Cumulative exposure to C rated stocks: 35% (i
Slide 17: Overseas Equities/Overseas ETFs
Overseas Equities/Overseas ETFs
Slide 18: Aim to Benefit from Portfolio Diversification & Currency Depreciation
Aim to Benefit from Portfolio Diversification & Currency Depreciation MSCI World Net Return Index Performance (in USD terms) Overseas Equity can offer Portfolio Diversificatio n USD/INR Movement Also aim to benefit from Rupee depreciation Past performance may or may not be sustained in future and th
Slide 19: Overseas Equity Investment
Overseas Equity Investment Overseas Equity/Overseas ETFs investment could act as an effective diversification tool as well MSCI World Index will be as benefit from any the investment universe. It currency depreciation tracks performance of stocks/sectors across 23 Investment across developed markets
Slide 20: Asset Allocation beyond Equity & Debt: Commodity an important tool for Diversification
Asset Allocation beyond Equity & Debt: Commodity an important tool for Diversification
Slide 21: Commodities – A Distinct & Unique Asset Class
Commodities – A Distinct & Unique Asset Class Upside Potential owing to Considered as Safe Haven inherent demand during Economic Distress Hedge against Currency Hedge against Inflation Depreciation Diversification within commodities – Metals, Offers Portfolio Energy & Indices as Diversification perm
Slide 22: Key Triggers for Commodities
Key Triggers for Commodities Weak Dollar High Inflation High Bond Yields Key Drivers Prices < Production Cost of Commodity Current Demand > Supply Prices Future Demand > Future Supply Geopolitical/ Environmental Disruptions Source: NIMF Internal Research
Slide 23: Participation of MFs in Commodity Derivatives
Participation of MFs in Commodity Derivatives Underlying • Exchange Traded Commodity Derivatives (ETCDs) Instrument • Cumulative Exposure across Commodities upto 30% • Exposure to a Single Commodity upto 10% except for Exposure Limits Gold ETF • No Net Short Positions in ETCDs • All Commodities exce
Slide 24: Commodity Investment Framework
Commodity Investment Framework Flexibility to invest in various Investment will be Gold$ will be a key Commodities to predominantly diversifier given provide into Gold low correlation to diversification ETF/ETCD. Equity & Debt even within commodities • Minimum 10% exposure to Gold through ETF or ETC
Slide 25: Fixed Income Investment Framework
Fixed Income Investment Framework Debt portfolio is managed with a moderate duration profile, following a duration range of 1.25 – 2.25 years. Predominantly invest in Good credit quality assets Issuer: LT rating min 85% AAA, rest AA+ & AA Instrument: AAA/ A1+ >=85%, short term not below A1+ Focused
Slide 26: Investment Rationale
Investment Rationale Fund seeks to provide diversification across asset classes Fund also offers diversification with an aim to provide better risk under respective asset classes adjusted returns A one stop solution which may Aim to benefit from Tax efficiency help to reap benefit of Growth of throu
Slide 27: Taxation of Capital Gain for the Scheme
Taxation of Capital Gain for the Scheme Particulars Resident Non-Resident* Long-Term Capital Gain 20% with Indexation Benefit 10% Short-Term Capital Gain As per applicable rate As per applicable rate *The provisions of the Income Tax Act, 1961 would apply to the extent they are more beneficial than
Slide 28: Portfolio Details
Portfolio Details y @ Nippon idis Mutual Fun Wealth sets you Free
Slide 29: Asset Allocation (As on Feb 29, 2024)
Asset Allocation (As on Feb 29, 2024) Cash & Other Receivables 3.01% Commodity Future 1.14% Corporate Bond 6.59% Government Bond 6.70% Commodity ETF 12.81% International Exchange Traded Funds 16.92% Equity 52.83% For complete details on portfolio, please visit website mf.nipponindiaim.com
Slide 30: Top 10 Holdings & Sectors (As on Feb 29, 2024)
Top 10 Holdings & Sectors (As on Feb 29, 2024) Top 10 Holdings Weightage Top 10 Sectors Weightage HDFC Bank Limited 3.22% Banks 8.92% ICICI Bank Limited 2.53% Finance 4.53% Reliance Industries Limited 1.95% IT - Software 4.17% Tata Motors Limited 1.89% Pharmaceuticals & Biotechnology 3.78% Larsen &
Slide 31: Scheme Features
Scheme Features Scheme Name Nippon India Multi Asset Fund An open ended scheme investing in Equity, Debt and Exchange Traded Type of Scheme Commodity Derivatives and Gold ETF 50% of S&P BSE 500 TRI, 20% of MSCI World Index TRI, 15% of Crisil Short Benchmark Term Bond Index & 15% of Domestic prices o
Slide 32: 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 33: 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