There is a high dispersion in long term stock performance

Transcription

1

2 There is a high dispersion in long term stock performance Variation in top and bottom stocks over the last 10 years % CAGR (CY 07-17) BSE 100 index 5.5 Top quartile 16.7 Bottom quartile (21.2) Weak companies have destroyed significant investor wealth Our strategy relies on bottom up selection of quality companies that can deliver sustainable growth Source: Bloomberg, Past performance may or may not be sustained in future. Data as on 31st Dec

3 Large dispersion in sector specific earnings Active sector allocation is key to alpha generation Source: Kotak Institutional Equities EPS Growth (%) FY13 FY14 FY15 FY16 FY17 FY18 Automobiles (11.4) (4.7) (1) Banking (12.6) 16.9 (17) Cement 14.6 (28.3) 3.5 (6.5) 13.1 (4) Consumers Energy (3.9) 8.5 (12.8) (0) Industrials 3.9 (7.2) (28.2) Infrastructure (29.9) Media (5.5) Metals & Mining 20.6 (7.2) (20.8) (25.8) Pharmaceuticals (0.6) (34) Technology Telecom (37.4) (21.7) 4.4 (27) Utilities 19.7 (2.2) (4.4) (0) Nifty-50 Index

4 Active Returns We offer a tight basket of clearly positioned equity funds ELSS Large & Midcap Multicap Axis Multicap Fund Midcap Smallcap Axis Small Cap Fund Axis Midcap Fund >65% in Midcaps Large Cap: % Mid Cap: Max 50% Small caps Large Cap Axis Bluechip Fund Focused Axis Focused 25 Fund Large Cap: % Axis Long Term Equity Fund^ >90% in top 200 companies by market cap Large Cap: % Mid Cap: Max 50% Axis Growth Opportunities Fund Large Cap: 35-65% Mid Cap: 35-65% Active Risk Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager s view of the equity markets. ^Open-ended Equity-Linked Savings Scheme with a 3 year lock in. The bubbles in the chart are proportionate to their sizes respectivelymarket caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market capitalization. For type of scheme for the above schemes, please refer to slide 15 and 16.

5 Axis Bluechip Fund: Positioning Large cap companies (80-100%) with other companies (0-20%) The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies. 1 Risk management embedded in the investment process Relatively liquid portfolio Targets volatility below benchmark (Nifty) 2 3 Pure bottom up stock picking focusing on fundamentals Maintains a core portfolio of quality businesses with secular growth prospects Takes tactical positions in quality cyclicals linked to fund manager views of cyclical factors and market positioning Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager s view of the equity markets. Market caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market capitalization. 5

6 Large cap biased: Reducing midcap exposure 100% 95% Mid Cap 90% 85% 80% Large Cap Average Large Cap exposure over 2 years: 83% Average Large Cap exposure over 2 years: 83% Large Cap 75% Nov-16 May-17 Nov-17 May-18 Nov-18 Large Cap Midcap Small Cap Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager s view of the equity markets. Market caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market capitalization. 6

7 What do we mean by quality businesses? Strong competitive positioning Cash flow generating with sound balance sheet Credible management team Sustainable Growth Potential 7

8 Current Investment Focus ~ 60% leaders Companies which operate in secular growth segment and has leading market share in their areas of operation. Expected to provide steady returns ~ 40% Challengers Companies that are gaining markets share due to differentiated offering or cost advantage, in large sectors. Expected to deliver alpha The investment focus of the fund is subject to change on the discretion of the fund manager. The investment strategy of the fund will be in line with the strategy laid out in the scheme information document. For complete details on the scheme investment strategy refer the scheme information document. 8

9 Changes made to the portfolio over the 1 year (Nov 18) Portfolio Characteristics Nov 17 Nov 18 Matched Portfolio 45% 45% No. of Stocks Market Cap Mix Large Cap 92% Midcap 4% Largecap 82% Midcap 1% Top 10 stocks (% of portfolio) 54% 55% Top stocks with increased exposure/entries Change in exposure (%) over last year Top stocks with reduced exposure/ exits Change in exposure (%) over year Bajaj Finance Ltd 4.0% Page Industries Ltd -3.5% Tata Consultancy Services Ltd 3.8% Endurance Technologies Limited -3.1% Titan Company Limited 3.0% Motherson Sumi Systems Ltd -2.8% Reliance Industries Ltd 2.9% Maruti Suzuki India Ltd -2.7% Nestle India Ltd 2.8% Housing Development Finance Corporation Ltd -2.5% Source : ValueFY, ACEMF. Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager s view of the equity marketsmarket caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market capitalization. Past performance may or may not be sustained in the future. Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.

10 Sector-wise positioning (Nov 18) Sector Overweight/Underweight Consumer Others Finance Media & Publishing Agro Inputs & Chemicals Cement & Building Materials Autos & Logistics Telecom Healthcare Services Capital Goods, Engineering & Construction Infrastructure & Power Metal,Metal Products & Mining Information Technology Oil & Gas Sector -10% -1% -1% -1% -1% -1% -2% -2% -3% -4% -5% 1% 4% 8% Source IISL, Axis MF Research The benchmark for the scheme is NIFTY 50. Data collated as on 30 th Nov Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). 10

11 Current Portfolio & Risk Parameters (30 th Nov 18) Top 5 sector holdings Risk parameters (3 years) Top 10 stocks Current market cap split (% NAV) *Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager s view of the equity markets. Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). 11

12 Performance 12

13 SIP Performance as on Nov 30, 2018 Axis Bluechip Fund Growth (Inception: 5 th Jan 2010) SIP Investments Since Inception SIP 5 Year SIP 3 Year SIP 1 Year SIP Total Amount Invested 1,060, , , ,000 Market value as on November 30, ,938, , , ,422 Returns (Annualised) % 13.23% 12.31% 13.63% 5.34% Benchmark Returns (Annualised) % 11.51% 11.14% 12.41% 4.52% Additional Benchmark Returns (Annualised) % 11.83% 11.66% 13.85% 7.23% Past performance may or may not be sustained in future. To illustrate the advantage of SIP investments, this is how your investment would have grown if you had invested say Rs. 10,000 systematically on the first business day of every month over a period of time. Calculations are based on Growth Option NAV. Since inception returns are calculated at Rs. 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Returns greater than 1 year period are compounded annualized. SIP returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). Benchmark: Nifty 50. Additional Benchmark: S&P BSE Sensex. Inception Date: Jan 05, This scheme is managed by Shreyash Devalkar. He is managing the scheme since 23rd November 2016 and he manages 5 schemes of Axis Mutual Fund. Please refer to the Annexure for returns of all the schemes managed by him. 13

14 Annexure Past performance may or may not be sustained in future. Data as on 30th November, performance data for 5 years period has not been provided for scheme/plan not in existence for 5 performance data for 3 years period has not been provided for scheme/plan not in existence for 3 years. Calculations are based on Growth Option NAV. Since inception returns are calculated on Rs. 10/- invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Above data excludes returns of schemes which have not completed a year. Shreyash Devalkar is managing Axis Bluechip Fund and Axis Midcap Fund since 23rd November 2016, Axis Equity Advantage Fund - Series 1 & 2 & Axis Multicap Fund since inception. 14

15 Product Labelling Fund Name Riskometer Product Labelling Axis Bluechip Fund (An open ended equity scheme predominantly investing in large cap stocks) Axis Multicap Fund (An open ended equity scheme investing across large cap, mid cap, small cap stocks) Axis Midcap Fund (An open ended equity scheme predominantly investing in Mid Cap stocks) Axis Small Cap Fund (An open ended equity scheme predominantly investing in small cap stocks) This product is suitable for investors who are seeking* Capital appreciation over long term Investment in a diversified portfolio predominantly consisting of equity and equity related instruments of large cap companies This product is suitable for investors who are seeking* Capital appreciation over medium to long term Investment in a diversified portfolio consisting of equity and equity related instruments across market capitalization. This product is suitable for investors who are seeking* Capital appreciation over long term Investing predominantly in equity & equity related instruments of Mid Cap companies. This product is suitable for investors who are seeking* Capital appreciation over long term Investment in a diversified portfolio of equity and equity related instruments of small cap companies *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. 15

16 Product Labelling Fund Name Riskometer Product Labelling Axis Focused 25 Fund (An open ended equity scheme investing in maximum 25 stocks investing in large cap, mid cap and small cap companies.) This product is suitable for investors who are seeking* Capital appreciation over long term Investment in a concentrated portfolio of equity & equity related instruments of up to 25 companies Axis Long Term Equity Fund (An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) Axis Equity Advantage Fund Sr 1 & 2 (A Close Ended Equity Scheme) Axis Growth Opportunities Fund (An Open-ended Equity Scheme investing in both large cap and mid cap stocks) This product is suitable for investors who are seeking* Capital appreciation & generating income over long term Investment in a diversified portfolio predominantly consisting of equity and equity related instruments. This product is suitable for investors who are seeking* Capital appreciation over medium to long term Investment in a diversified portfolio of predominantly equity and equity related instruments across market cap while managing risk through active hedging strategies This product is suitable for investors who are seeking*: capital appreciation over long term investment in a diversified portfolio predominantly consisting of equity and equity related instruments both in India as well as overseas *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. 16

17 Statutory Details and Risk Factors Data updated as on 30 th Nov Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time. Scheme specific risk factors: Apart from the risks associated with domestic investments, the scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). The material should not be construed as issued by Government of India or any of its authority. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. 17

18 Thank You