Factsheet October 2020
Total Page：16
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For product label and other scheme related details of the aforesaid Schemes, kindly refer Page No. 3 to Page No. 8 Facts in Figures October 2020 Monthly fund analysis and market reviews Alok Singh MARKET UPDATE CHIEF INVESTMENT OFFICER Financial markets don’t enjoy uncertainties and in the month of October, markets faced three uncertainties as mentioned hereunder: 1 Rise in Covid19 cases and extended lockdowns 2 Lack of clarity on outcome of US Elections 3 The probability of additional fiscal stimulus in USA These uncertainties induced volatility in the global markets and influenced Indian markets too. During the period between last week of October and first week of November, clarity has emerged on matters pertaining to US election and fiscal stimulus. While the quantum and timing of the fiscal stimulus is still undecided, the market is rejoicing the clarity. The quarterly financial results and favorable macro data also supported the markets. The Indian economy seems to be recovering well. October GST collection crossed the INR 1 trillion barrier after eight months. Ever since GST was implemented in 2017, the market has been judging the success of GST and fiscal health using INR 1 trillion rule of thumb. The Current GST collection trends should give us a reasonable sense about nominal GDP growth as GST rates have not been altered much. The other high-frequency growth indicators such as PMI, power demand, auto sales, tractor sales, e-way bills are also indicating strong recovery. The Government policy responses seem to be working well. The Covid19 situation in the country also appears to be coming under control and the economic activity of Indian businesses is picking up. The current festive season is expected to provide the much needed push. So far the Q2 financial results have been quite encouraging. Almost all businesses have reported increase in margin and decrease in working capital. More importantly the management expect most of these improvements to sustain in future. This in turn has also supported the broad based price action in the equity market. The external economic factors have also improved for India. Trade deficit narrowed led by higher petroleum and gems & jewellery exports. Exports surged MoM and imports registered slight improvement. Annual growth rate for export was +6% and for import was - 20% Y0Y respectively. Forex reserves stood at US$ 542bn (up US$ 1bn over last month). Consumer Price Index (CPI) Inflation for the month of September was at 7.34% and Wholesale Price Index (WPI) inflation was at 1.32%. Despite the inflation being above the RBI’s comfort level for the last couple of months, the Monetary Policy Committee (MPC) decided to continue with the accommodative stance as long as necessary – at least during the current year and into the next financial year. This was done with a view to revive growth on a sustainable basis and mitigate the impact of the Covid-19 pandemic on the economy while at the same time keeping the inflation target in mind. Government securities followed a downward trajectory in October as the RBI kept the policy rate unchanged but cheered markets with a slew of liquidity measures to boost investor confidence. RBI has also decided to conduct open market operations in state development loans as a special case during the current financial year. Yields continued to cool down despite additional borrowing announced by the central government. Taking these factors into account, we expect yields to remain range bound in the near term. Therefore, we expect the accrual strategy to do well as the current term premium is on the higher side. At the same time, there is not much to expect from a duration play. In the equity market the earnings growth, which markets have been craving for almost a decade looks possible in coming times. This looks possible mainly because of the business transformation which has happened in last six/eight months. However, the markets may remain volatile in the near term because of various geopolitical issues. We wish everyone a happy festive season. Data Source: Bloomberg/ Internal Research 2 SIP SHIELD AVAILABLE Equity Fund Hybrid Fund Debt Fund This product is suitable for investors BOI AXA Large & Mid Cap Equity Fund** who are seeking*: Riskometer • Long-term capital growth. Moderate Moder ately High ately (An open ended equity scheme investing in both large cap and mid cap stocks) • Investment in equity and equity- ModerLow related securities including equity High derivatives of companies across Low market capitalisations. LOW HIGH Investors understand that their principal will be at moderately high risk *Investors should consult their financial advisor if they are not clear about All data as on October 31, 2020 (Unless indicated otherwise) the suitability of the product. EQUITY INDUSTRY ALLOCATION PORTFOLIO DETAILS Banks 16.11% Portfolio Holdings Industry/ Rating % to Net Assets Pharmaceuticals 12.68% EQUITY HOLDINGS Software 10.63% Banks 16.11 Others 9.50% 4 HDFC Bank Limited 5.40 Finance 9.48% 4 ICICI Bank Limited 3.91 Pesticides 7.20% Axis Bank Limited 2.44 Petroleum Products 5.13% Kotak Mahindra Bank Limited 1.98 Telecom - Services 3.82% City Union Bank Limited 1.46 Cement 3.79% State Bank of India 0.92 Industrial Capital Goods 3.56% Pharmaceuticals 12.68 Auto 3.21% 4 Divi's Laboratories Limited 3.32 Chemicals 2.78% 4 Natco Pharma Limited 2.46 Consumer Non Durables 2.68% Dr. Reddy's Laboratories Limited 2.18 2.57% Alembic Pharmaceuticals Limited 1.94 Consumer Durables Sun Pharmaceutical Industries Limited 1.20 Gas 2.48% Cipla Limited 1.05 Industrial Products 2.36% Ajanta Pharma Limited 0.53 Software 10.63 INVESTMENT OBJECTIVE 4 Infosys Limited 4.31 HCL Technologies Limited 2.01 The Scheme seeks to generate income and long-term capital appreciation by investing Tata Consultancy Services Limited 1.56 through a diversified portfolio of predominantly large cap and mid cap equity and equity MphasiS Limited 1.38 related securities including equity derivatives. The Scheme is in the nature of large and mid Coforge Limited 0.79 cap fund. The Scheme is not providing any assured or guaranteed returns Larsen & Toubro Infotech Limited 0.59 WHO SHOULD INVEST Finance 9.48 4 Cholamandalam Investment and Finance Company Limited 2.89 L The fund is suited to investors with some prior experience in equity investing or even for Bajaj Finance Limited 1.68 first time equity investors who are aware of the risk associated with investing in equities, Muthoot Finance Limited 1.51 particularly with regard to mid and small capitalization companies. IIFL Wealth Management Limited 1.31 A BENCHMARK ICICI Securities Limited 0.98 CreditAccess Grameen Limited 0.72 R S&P BSE 250 LargeMidCap (TRI) Max Financial Services Limited 0.39 DATE OF ALLOTMENT Pesticides 7.20 G October 21, 2008 4 PI Industries Limited 4.48 UPL Limited 1.92 E FUND MANAGER Bayer Cropscience Limited 0.80 Alok Singh: (w.e.f. February 16, 2017) Around 19 years of experience, including 15 years in Petroleum Products 5.13 mutual fund industry. 4 Reliance Industries Limited 3.55 Reliance Industries Limited (Partly Paid) 1.58 AVERAGE AUM Telecom - Services 3.82 & ` 181.19 Crs. 4 Bharti Airtel Limited 3.82 LATEST AUM Cement 3.79 4 UltraTech Cement Limited 3.06 ` 179.56 Crs. ACC Limited 0.73 M MINIMUM APPLICATION AMOUNT (LUMPSUM) Industrial Capital Goods 3.56 Honeywell Automation India Limited 2.27 Regular/ Direct Plan ` 5,000 and in multiples of ` 1 ABB India Limited 1.29 I ADDITIONAL PURCHASE AMOUNT Auto 3.21 D Regular/ Direct Plan ` 1,000 and in multiples of ` 1 Escorts Limited 1.30 Maruti Suzuki India Limited 0.97 PORTFOLIO TURNOVER RATIO (As on October 31, 2020) Hero MotoCorp Limited 0.94 1.55 Times# (#Basis last rolling 12 months) Chemicals 2.78 Alkyl Amines Chemicals Limited 1.40 C OTHER PARAMETERS (As on October 30, 2020) Navin Fluorine International Limited 0.85 Standard Deviation (Annualized): 18.45% (BOI AXA Large & Mid Cap Equity Fund) Aarti Industries Limited 0.28 17.70% (S&P BSE 250 LargeMidCap (TRI)) Pidilite Industries Limited 0.24 A Beta: 0.99 Consumer Non Durables 2.68 Sharpe Ratio*: 0.06 Hindustan Unilever Limited 1.33 P Tracking Error (Annualized): 5.77% Godrej Agrovet Limited 0.86 Above ratios are calculated using 6 years history of monthly returns Asian Paints Limited 0.49 *Risk-free rate assumed to be 3.48% (MIBOR as on October 29, 2020) Consumer Durables 2.57 Crompton Greaves Consumer Electricals Limited 1.43 F NAV (As on October 30, 2020) NAV (`) Relaxo Footwears Limited 1.14 Regular Plan Eco Plan Gas 2.48 U Gujarat Gas Limited 1.32 Growth 35.68 Growth 38.19 Petronet LNG Limited 0.94 Bonus 35.67 Bonus 38.19 Indraprastha Gas Limited 0.22 N Regular Dividend 11.57 Regular Dividend 11.86 Industrial Products 2.36 Quarterly Dividend 13.82 Quarterly Dividend 11.51 SRF Limited 2.36 D Direct Plan Others 9.50 Amara Raja Batteries Limited 1.34 Growth 39.00 MRF Limited 0.73 Bonus 20.15 Apollo Hospitals Enterprise Limited 1.43 Regular Dividend 12.23 Dr. Lal Path Labs Limited 0.58 Quarterly Dividend 11.69 Hindalco Industries Limited 1.35 LOAD STRUCTURE (FOR ALL PLANS) Larsen & Toubro Limited 1.14 Kajaria Ceramics Limited 0.98 Entry Load NIL Tata Steel Limited 0.94 Exit Load • For redemption/switch out upto 10% of the initial units allotted - Garware Technical Fibres Limited 0.76 within 1 year from the date of allotment: “NIL” Torrent Power Limited 0.26 • Any redemption/switch out - in excess of the above mentioned limit Total 97.99 would be subject to an exit load of 1%, if the units are redeemed/ switched out within 1 year from the date of allotment of units.