Nippon India – High Conviction fund


Alpha (1Y) Beta (1Y) Standard Deviation (1Y) % of +ve Months (SI)

Key Portfolio Attributes

Inception Date: 13 March 2014

Fund Manager Name: Varun Goel

Fund Manager Experience:11 years

Fund Manager Qualification: MBA – IIM Lucknow ,Mech Engg from IIT Dehi

Portfolio Construct

• An intensive research based, bottom-up stock picking approach, based on our unique ‘Must 5’ Quality framework, aims to identify those stocks which have a potential of delivering outsize returns over the next 3 to 5 years

• Endeavour to create diversified multi-cap concentrated portfolio of our top 20 – 25 most compelling investment ideas, which ensures meaningful positions are taken in majority of the holdings, while maintaining adequate diversification

• Judicious allocation to large, mid and small cap based on their return potential

• Portfolio aims to maximize compounding with a Buy & Hold view, leading to low churn

Investment Philosophy

The endeavor is to create wealth for our investors over a medium to long term period by creating Benchmark Agnostic Concentrated Portfolios of quality stocks, based on fundamental research driven Bottom Up stock picking.

BOTTOM UP APPROACH

Nippon India believes that in all market conditions and across all capitalizations, there are stocks which may outperform. Hence, their Focus is on identifying such stocks, within the chosen sectors. Sectoral trends and macroeconomic research is used to identity macro trends / sectoral opportunities. The Conviction in their stock picks come from rigorous bottom up fundamental research. Fundamental Research involves study of historic track record, trends and future earning estimates through the lens of “Must 5” Quality framework.

The Assessment is based on Earnings Growth, Operating Leverage, Demand Environment, Margin Expansion, and Financial Leverage. Assessment also includes Senior Management Interaction, Key Customer, Suppliers feedback, Competition feedback, Key Stakeholders Interaction.

Post identification of stocks based on rigorous fundamental research, they identify reasonably priced stocks, based on Valuation gap analysis

  1. Historical Vs Current valuations
  2. Peer Group Valuation
  3. Potential Rerating Triggers

Investment is made in stocks with the Highest Conviction. Such companies tend to weather sector declines. Their endeavor is to benefit from the early identification of an investment idea; where there is higher potential for outsize returns

MUST 5 FRAMEWORK

Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return

QRC Report Card *




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Disclaimer

#Returns as of 30 Nov 2024. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Mar 23.


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Nippon India – The Indian Economic Transformation Portfolio
Nippon India – Emerging India
Nippon India – The NEXT BILLION

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