Fund Select

November - December 2023

AMFI-registered Mutual Fund Distributor

Contents
Page Page
Nos Nos.

2
2 Fund Select Reader’s Guide - Equity
3 Fund Select Reader’s Guide - Debt
4 Overview
5 Market Outlook

Hybrid
1
Equity
Aggressive Hybrid
24
25
HDFC Hybrid Equity Fund
Mirae Asset Hybrid Equity Fund
Dynamic Asset Allocation / Balanced
Advantage fund
Largecap Funds 26 Baroda BNP Paribas Balanced
6 ICICI Prudential Bluechip Fund Advantage Fund
7 Nippon India Large Cap Fund 27 Edelweiss Balanced Advantage Fund
8 Mirae Asset Large Cap Fund 28 ICICI Prudential Balanced Advantage Fund
9 SBI Bluechip Fund 29 Kotak Balanced Advantage Fund
Large & Midcap Funds Equity Savings
10 Kotak Equity Opportunities Fund 30 Kotak Equity Savings Fund
11 SBI Large & Midcap Fund Arbitrage
Flexicap Funds 31 Kotak Equity Arbitrage Fund
12 Franklin India Flexicap Fund 32 Edelweiss Arbitrage Fund
13 UTI Flexicap Fund 33 Bandhan Arbitrage Fund
14 HDFC Flexicap Fund

3
Midcap Funds
15 Nippon India Growth Fund
16 Motilal Oswal Midcap Fund
17 Kotak Emerging Equity Fund
Smallcap Funds
18 Edelweiss Small Cap Fund Fixed Income
19 Kotak Small Cap Fund Short Term Bond Funds
Contra & Value Funds 34 ICICI Prudential Short Term Fund
20 Invesco India Contra Fund 35 Bandhan Bond Short Term Fund
21 ICICI Prudential Value Discovery Fund 36 Axis Short Term Fund
Thematic - ESG Dynamic Bond Funds
22 SBI Magnum Equity ESG Fund 37 ICICI Prudential All Seasons Bond Fund
International Medium Term Bond Funds
23 Baroda BNP Paribas Funds Aqua FoF 38 Axis Strategic Bond Fund
Medium to Long Term Bond Funds
39 SBI Magnum Income Fund
Corporate Bond Funds
40 Aditya Birla Sun Life Corporate Bond Fund
41 HDFC Corporate Bond Fund
42 ICICI Prudential Corporate Bond Fund
Banking & PSU Debt Funds
43 Kotak Banking & PSU Debt Fund
44 Axis Banking & PSU Debt Fund
Credit Risk Funds
45 ICICI Prudential Credit Risk Fund
46 Disclaimer & Glossary

Page 1
 Fund Select Readers Guide - Equity
Nippon India Large Cap Fund
Why this fund?
l Aims at balancing of diversification and high conviction ideas.
FundSelect
l Bottom-up approach to stock-selection with a focus on leaders and PRR 4
potential leaders available at reasonable valuations.
l Well defined fund casing and robust risk management. Key Fund Characteristics
Portfolio Manager Sailesh Raj Bhan
What is this fund all about? Inception Date 8th August, 2007
l
Investing in Businesses with Dominant Market Share: The fund Fund Size (INR Mio.) 166,335
identifies opportunities with growing brand value and market position. Benchmark S&P BSE 100 India TR INR
Key features like idea generation &
l
Diversified But Not Diluted High Conviction Plays: Top 30 stocks
research process, portfolio Fund ISIN INF204K01562
allocation of 80%-90% with holdings ~ 55-65 stocks.
construction and risk management Expense ratio 1.71%
l
Right Risk Not overpaying for in
system growth: Differentiated
place that approach of
make the fund’s
owning dominant businesses at reasonable valuation while being 3Y Standard Deviation 15.18%
performance consistent and reliable.
Benchmark aware. 3Y Sharpe Ratio 1.53
l Robust risk management: The fund has a well-defined casing to ensure 3Y Beta Term 1.03
explained in
process consistency. Broadly the fund has the following constraints 1) Glossary
Exit Fee 1.00% section on
Active share < 60% 2) Defined Deviation Range 3) Ceiling on Low
Page Nos. 50
conviction ideas. Portfolio Date: 30th September, 2023

U li es Energy
What is the key risk? Communica on
Services 5% 7%
Materials
3% 3%
Informa on
The scheme invests primarily in large cap companies with a quality tilt. The Technology
8% Industrials
scheme can take sector and stock level deviations from the benchmark which 9%
can result in higher tracking-error. In addition to being exposed to market
risks, the performance of the scheme may be impacted during periods of Financials
broader market rally and/or if the quality and growth themes do not perform. 34%
Consumer
Discre onary
How has the fund performed? 14%

Last 1 year ended 30th Sept., 2023 Risks that are inherent while
Top Contributors Top Detractors
investing
1. Industrials in the fund that you
1. Energy Consumer Staples
Sector shouldDiscretionary
2. Consumer aware of 2. Real Estate Healthcare
13%
Sector / Industry
4%
3. Financials 3. Health Care allocation
Portfolio Date: 30th September, 2023
1. HDFC AMC Ltd. 1. SBI Cards & Payment Serv.
Stock 2. Adani Enterprises Ltd. 2. Honeywell Automation (I) Ltd. Morningstar Equity Style BoxTM
3. GE T&D India 3. TCS
Performance attribution analysis: Market Cap %
Large

What the Manager Says: Breakdown of fund performance Market Cap Giant 63.6
The fund maintains an overweight
identifyingallocations to Consumer
sector allocation Discretionary,
and stock
Consumer Staples and Industrials. Market Cap
Market capLarge
tilt v/s27.0
s e l e c t i o n c o n t r i b u t i n g t o t h e demand
The fund focuses on domestic
Mid

related sectors as growthoutperformance

and earnings certainties appear higher. Remain
/ underperformance. investment
Market Cap Midstyle 9.3
Underweight on Materials and IT services on Global Growth concerns. Market Cap Small 0.6
Small

Changes in last 3 months, the FM has turned overweight Consumer Staples

Market Cap Micro 0.0
(valuations, lower raw mat costs, rural demand picking up) , communication
services (entertainment Fpremiumization)
u n d m a n a g efrom r’s m underweight
arket in June. Value Blend Growth

Increased overweight position in Utilities (Energy

outlook and key changes to the transition, valuations Portfolio Date: 30th September, 2023
increase in demand). Reduced
fund’s capoverweight position in Industrials
/ sector / holdings Portfolio
(valuations), Increased Underweight position in Energy (earnings visibility). Top 10 Holdings
Weighting %

HDFC Bank Ltd. 9.5

Reliance Industries Ltd. 6.3

ICICI Bank Ltd. 5.7

ITC Ltd. 5.3

State Bank of India 5.0

Since Larsen & Toubro Ltd. 4.2
YTD 1 Year 3 Years 5 Years Inception
Hindustan Unilever Ltd. 4.0
Nippon India Large Cap Gr. 19.3 25.1 30.5 15.1 12.5
Axis Bank Ltd. 3.7
S&P BSE 100 India TR INR 10.5 16.1 22.5 14.0 11.2 Infosys Ltd. 3.5
Fund’s official
India Fund Large-Cap 8.6 13.2
benchmark 19.3
performance11.7 9.8 NTPC Ltd. 3.2

Peer group median performance

(category average)
Page 2
 Fund Select Readers Guide - Debt
ICICI Prudential Short Term Fund
Why this fund?
l The fund is focused on accrual income and capital appreciation while
FundSelect
keeping the duration of the portfolio in 1-to-3-year range and tactically PRR 3
taking G-Sec calls.
l The Fund manager has been running this strategy since 2009 and is Key Fund Characteristics
one of the top performing funds in the category. Portfolio Manager Manish Banthia, Nikhil Kabra
l He is running a Benchmark agnostic strategy to play a high conviction Inception Date 25th October, 2001
strategy on the macro play and view on the curve as the primary driver.
Fund Size (INR Mio.) 186,890
What is this fund all about? Benchmark NIFTY Short Duration Debt Index

Fund ISIN INF109K01654

l
It proposes to predominantly invest in debt instruments of good credit
quality. The Fund also aimsKeytofeatures
capture like idea
credit generation
spread &
opportunities to Expense ratio 1.07%
generate returns. research process, portfolio
Modified Duration (Yrs) 2.31
l
construction
It seeks to invest in corporate and are
securities that riskat management
reasonable spreads Average Maturity (Yrs) 5.35
system in place that make the
over G-Sec and offer reasonable yield at commensurate fund’s
risks with an aim
to generate accrual returns.performance consistent and reliable. Yield to Maturity Term7.97%
explained in
l The Fund shall have tactical, calibrated, and opportunistic approach to Exit Fee Glossary
0.00% section on
government securities with varying maturities based on the underlying Portfolio Date: 30th September, 2023
Page Nos. 50
interest rate view. AA
l
The Fund will actively manage duration with an aim to generate potential 14%
AAA
capital appreciation. 86%

What is the key risk?

Although the fund maintains a very
Risksclean
thatportfolio, it is still
are inherent subjected to credit
while
risk which may arise from any downgrade
investing in/ default
the fund bythat
the issuer
you of the bond.
Fund is also subjected to duration
should risk which
aware of is dependent on change in
interest rates on account of RBI monetary policy, demand v/s supply factors
etc.

How has the fund performed?

Credit rating split
The Fund posted annualized returns 7.4%attribution
Performance over 5 years ending 30th
analysis: Portfolio Date: 30th September, 2023 of underlying
September 2023, out-performing the benchmark return of
Breakdown of fund performance 7.2% and category Morningstar Fixed Income Style BoxTM holdings
average of return of 5.3%. Credibly,
identifying sector allocation and stock by a
the fund has outperformed it’s peers
Fixed-Income Stats %
High

substantial margin across periods.

selection contributing to the
Average Eff Duration —
Credit Quality

What the Manager Says: outperformance / underperformance.

Credit profile v/s
Med

The scheme invests in a duration range that is currently attractive, due to Average Eff Maturity
duration style box 5.4
compressed term premium. The short term duration range is also good Average Coupon 7.0
otherwise due to its relatively low mark-to-market volatility. The scheme also
Low

has the advantage of investingFacross

u n d credit
m a n aratings
g e r ’ sandmG-Secs.
a r k e t Both these Average Price —
outlook and key changes
factors are highly advantageous to the scheme in the current to thefixed income
Ltd Mod Ext
scenario. fund’s cap / sector / holdings Interest-Rate Sensitivity
Portfolio Date: 30th September, 2023
Future Outlook for the fund- Short duration papers have seen attractive yields
due to hike in repo rates and tight liquidity conditions. Coupled with higher Top 10 Holdings
Portfolio
Weighting %
yields offered on Corporate bonds, this bodes well for the future outlook of the
scheme 7.38% Govt. Stock 2027 12.0

8.25% Govt. Stock 2033 9.9

7.06% Govt. Stock 2028 7.2

7.93% Govt. Stock 2034 4.3

7.87% Govt. Stock 2028 2.7

Since SIDBI 2.1
YTD 1 Year 3 Years 5 Years Inception
Pipeline Infrastructure Ltd. 2.0
ICICI Pru Short Term Gr. 5.6 7.3 5.6 7.4 7.9
NABARD 1.7
NIFTY Short Duration Debt Index — 7.6 5.8 7.2 — SIDBI 1.6
Fund’s official
India Fund Short Duration 4.4 6.1
benchmark 5.0
performance 5.3 6.3 LIC Housing Finance Ltd. 1.6

Peer group median performance

(category average)
Page 3
Overview
Foreword
The Fund Select publication leverages on the internal selection and review process of Standard Chartered Bank’s Fund
Select Team. The team endeavours to highlight high quality funds in which the team has conviction that the manager will add
value going forward. Further by qualifying the risk characteristics of the fund, we hope to provide insight into adequately
diversifying portfolio and managing investment risk.

The Fund Select publication is designed to provide you with our best fund ideas as per your risk profile (viz Client Risk Rating)
– highlighting the basis for our positive view, key characteristics of the funds, the risks and performance attributes of the
Funds.

Our proprietary Fund Select* tool (* refer disclaimer) helps us generate the best funds for you using both qualitative and
quantitative analysis in the 3 pillars mentioned below:-

FundSelect
Fund Select Pillars

People Process Performance

l Experience of the Fund l Idea Generation & l Based on proprietary
Manager Research Process of quantitative model
l Portfolio knowledge of the Portfolio Manager l Model based on excess
the Fund Manager l Portfolio Construction & return and information
l Turnover in the core Risk Management of the ratio compared to peers
team Fund l Persistency of
l Portfolio Consistent with performance
Stated Investment
Process of the Fund

Weighted score generated using these factors

supplemented by analyst views to identify the top picks

This list of offering is not exhaustive by any means, and should be used as a reference. Additional funds may be added on a
monthly/quarterly basis. Funds may be removed from the Fund Select publication because of changes in the investment team
or process, unexplainable underperformance, diminished analyst conviction or if a higher conviction alternative product is
identified by the Fund Select team.

The information contained in this publication has been obtained from respective fund house factsheet. While all reasonable
care has been taken in preparing this communication, no responsibility or liability of any kind is accepted for errors of fact or for
any opinion expressed herein or with respect to the accuracy or completeness of the information. The information is provided
on a best efforts basis.

Page 4
Market Outlook:
Balancing the Risks
l Rising commodity prices amid escalating geopolitical tensions in the Middle East and a persistent rise in bond yields,
drove a correlated fall in domestic equities and bonds. The Nifty index fell 1.5% in the past month, underperforming its
peers -MSCI Asia-ex-Japan (+0.3%) and MSCI World (+3%). Broader markets performance was mixed with the Nifty
Midcap down 2.5%, while Nifty Smallcap gained 1.2%. The 10-year IGB yield rose 8bps to 7.31%, while safe-haven gold
rallied 8%. The INR fell 0.1% against the USD
l We see geopolitical tensions in West Asia as a key source of risk to India’s strong macro fundamentals given our large
dependency on energy imports. Nevertheless, strong Q2 FY2024 earnings delivery and a likely peak in bond yields are
supportive of Indian assets.
l We believe a CALM strategy that takes a balanced approach to Foundation portfolios and opportunistic allocations
remains a prudent approach to tide through near-term uncertainty. We propose four ways to do this: Capitalise on market
opportunities, Allocate broadly, Lean to Asia and Manage volatility.
l Within equities, we upgrade large-cap equities to overweight given greater margin of safety over mid-cap and small-cap
equities in terms of earnings and valuation amid tighter monetary and liquidity conditions. Within bonds, we maintain our
overweight medium and long-maturity bonds and high-quality corporate bonds on attractive absolute yields.

Key Asset Class Views

Equities u Bonds u Gold u Cash u

Developed s Short Maturity u

Markets

Emerging u Medium/Long s
Markets Maturity

Indian Equities u

Large Cap s

Mid/Small Cap u

Legend s Overweight u Neutral t Underweight

Source: Standard Chartered India Investment Committee.

Page 5
 Equity - Largecap

ICICI Prudential Bluechip Fund

Why this fund?
l Benchmark hugging approach for lower tracking error.
FundSelect
l Bottom-up approach to identify potential future compounders. PRR 4
l Active positioning in high conviction ideas, aimed at generating long
term alpha. Key Fund Characteristics
Portfolio Manager Anish Tawakley & Vaibhav Dusad
What is this fund all about? Inception Date 23rd May, 2008
l
Low churn: Adopts a ‘buy & hold’ strategy in high conviction ideas which Fund Size (INR Mio.) 418,334
have a proven track record, quality management & high growth potential. Benchmark IISL Nifty 100 TR INR
l
Robust portfolio construction methodology: The portfolio follows a Fund ISIN INF109K01BL4
Barbell strategy focusing on 1) Value stocks 2) Growth stocks 3) Market
leaders 4) Industries with high compounding potential. Expense ratio 1.60%

l Low systematic risk: The fund avoids sectoral bets, however within the 3Y Standard Deviation 13.02%
sector can take large active bets. Aims for lower concentration risk, lower 3Y Sharpe Ratio 1.41
volatility and lower beta than the market.
3Y Beta 0.90
What is the key risk? Exit Fee 1.00%

Portfolio Date: 30th September, 2023

This largecap oriented scheme has a slight value tilt. In addition to being
exposed to market risks, the performance of the scheme may be impacted Communica on
Services
during periods of broader market rally and/or if the value theme does not Informa on 2% Real EstateEnergy
Technology 2% Materials
4%
perform.. High active calls within sectors can cause mid-term pain, if market 5% 6%

goes against the ideas, as the fund will find it difficult to tilt away due to its size.
Industrials
How has the fund performed? Financials
11%

34%
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
1. Indst. Prod. & Cap. Goods 1. Consumer Non Durables
Sector 2. Auto & Auto Anc. 2. Banks & Finance
Consumer
3. Telecom 3. Metal & Mining Discre onary
17%
1. Larsen & Toubro Ltd. 1. HDFC Bank
Stock 2. Axis Bank 2. ITC Consumer
Healthcare Staples
3. ICICI Bank 3. Tata Motors 7% 12%

What the Manager Says: Portfolio Date: 30th September, 2023

High inflation, interest rates and growth slowdown in key advanced Morningstar Equity Style BoxTM
economies may continue to contribute to market volatility in near terms. High Market Cap %
Large

valuations in Indian equity markets may be a factor why we believe equity to

Market Cap Giant 74.0
give average returns. We are constructive on equity with a long term view, as
globally countries look to de-risk their supply chains which may benefit India. Market Cap Large 24.2
Mid

Capex spending remains healthy, providing much needed thrust to Market Cap Mid 1.8
manufacturing. Infra and economic activity along with underlying demand
Market Cap Small 0.0
remains robust. Hence, Bluechip category may do well, as it consists of
Small

established companies that are expected to do well with intermittent volatility Market Cap Micro 0.0
over long term. IPRU Bluechip has successful track record of 15 years with Value Blend Growth
portfolio consisting of established companies and good fundamentals. Portfolio Date: 30th September, 2023
Hence, scheme may do well.
Portfolio
Top 10 Holdings
Weighting %

ICICI Bank Ltd. 9.2

Larsen & Toubro Ltd. 7.9

Reliance Industries Ltd. 6.6

Infosys Ltd. 5.7

HDFC Bank Ltd. 5.2

Since Axis Bank Ltd. 4.9
YTD 1 Year 3 Years 5 Years Inception
UltraTech Cement Ltd. 3.8
ICICI Pru Bluechip Gr 13.7 21.1 24.8 14.4 14.4
Bharti Airtel Ltd. 3.8
IISL Nifty 100 TR INR 8.1 13.3 21.2 13,2 11.2 Maruti Suzuki India Ltd. 3.7
India Fund Large-Cap 8.6 13.2 19.3 11.7 10.20 ITC Ltd. 2.0

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 6
 Equity - Largecap

Nippon India Large Cap Fund

Why this fund?
l Aims at balancing of diversification and high conviction ideas.
FundSelect
l Bottom-up approach to stock-selection with a focus on leaders and PRR 4
potential leaders available at reasonable valuations.
l Well defined fund casing and robust risk management. Key Fund Characteristics
Portfolio Manager Sailesh Raj Bhan
What is this fund all about? Inception Date 8th August, 2007
l
Investing in Businesses with Dominant Market Share: The fund Fund Size (INR Mio.) 166,335
identifies opportunities with growing brand value and market position. Benchmark S&P BSE 100 India TR INR
l
Diversified But Not Diluted High Conviction Plays: Top 30 stocks Fund ISIN INF204K01562
allocation of 80%-90% with holdings ~ 55-65 stocks.
Expense ratio 1.71%
l
Right Risk Not overpaying for growth: Differentiated approach of
owning dominant businesses at reasonable valuation while being 3Y Standard Deviation 15.18%
Benchmark aware. 3Y Sharpe Ratio 1.53
l Robust risk management: The fund has a well-defined casing to ensure 3Y Beta 1.03
process consistency. Broadly the fund has the following constraints 1)
Exit Fee 1.00%
Active share < 60% 2) Defined Deviation Range 3) Ceiling on Low
conviction ideas. Portfolio Date: 30th September, 2023

U li es Energy
What is the key risk? Communica on
Services 5% 7%
Materials
3% 3%
Informa on
The scheme invests primarily in large cap companies with a quality tilt. The Technology
8% Industrials
scheme can take sector and stock level deviations from the benchmark which 9%
can result in higher tracking-error. In addition to being exposed to market
risks, the performance of the scheme may be impacted during periods of Financials
broader market rally and/or if the quality and growth themes do not perform. 34%
Consumer
Discre onary
How has the fund performed? 14%

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
1. Industrials 1. Energy Consumer Staples
13%
Sector 2. Consumer Discretionary 2. Real Estate Healthcare
4%
3. Financials 3. Health Care
Portfolio Date: 30th September, 2023
1. HDFC AMC Ltd. 1. SBI Cards & Payment Serv.
Stock 2. Adani Enterprises Ltd. 2. Honeywell Automation (I) Ltd. Morningstar Equity Style BoxTM
3. GE T&D India 3. TCS
Market Cap %
Large

What the Manager Says: Market Cap Giant 63.6

The fund maintains an overweight allocations to Consumer Discretionary,
Consumer Staples and Industrials. The fund focuses on domestic demand Market Cap Large 27.0
Mid

related sectors as growth and earnings certainties appear higher. Remain Market Cap Mid 9.3
Underweight on Materials and IT services on Global Growth concerns. Market Cap Small 0.6
Small

Changes in last 3 months, the FM has turned overweight Consumer Staples

Market Cap Micro 0.0
(valuations, lower raw mat costs, rural demand picking up) , communication
services (entertainment premiumization) from underweight in June. Value Blend Growth

Increased overweight position in Utilities (Energy transition, valuations Portfolio Date: 30th September, 2023
increase in demand). Reduced overweight position in Industrials Portfolio
(valuations), Increased Underweight position in Energy (earnings visibility). Top 10 Holdings
Weighting %

HDFC Bank Ltd. 9.5

Reliance Industries Ltd. 6.3

ICICI Bank Ltd. 5.7

ITC Ltd. 5.3

State Bank of India 5.0

Since Larsen & Toubro Ltd. 4.2
YTD 1 Year 3 Years 5 Years Inception
Hindustan Unilever Ltd. 4.0
Nippon India Large Cap Gr. 19.3 25.1 30.5 15.1 12.5
Axis Bank Ltd. 3.7
S&P BSE 100 India TR INR 10.5 16.1 22.5 14.0 11.2 Infosys Ltd. 3.5
India Fund Large-Cap 8.6 13.2 19.3 11.7 9.8 NTPC Ltd. 3.2

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 7
 Equity - Largecap

Mirae Asset Large Cap Fund

Why this fund?
l The fund aims to provide stable returns with lower relative volatility.
FundSelect
l Blended portfolio using BMVP philosophy with 70% Core portfolio of PRR 4
quality companies with sustainable competitive advantage and growth
potential and 30% Deep-value ideas. Key Fund Characteristics
l Benchmark aware with active share of high-conviction ideas. Portfolio Manager Gaurav Khandelwal &
Gaurav Mishra
Inception Date 4th April, 2008
What is this fund all about?
Fund Size (INR Mio.) 356,837
l
Business Selection: Growth potential measured through size of market Benchmark IISL Nifty 100 TR INR
opportunity. Capital efficiency demonstrated through sustainable
Fund ISIN INF769K 01010
competitive advantage and high ROIs.
l Management: Leadership’s demonstration of high level of Corporate Expense ratio 1.54%
Governance and providing Thought Leadership. 3Y Standard Deviation 12.72%
l Valuation : Measured through Margin-of-safety (Value>Price) and GARP 3Y Sharpe Ratio 1.10
(Growth at reasonable price).
3Y Beta 0.88
l
Portfolio Construction: Diversified portfolio to mitigate risk and
Exit Fee 1.00%
participate in larger breadth of opportunities.
Portfolio Date: 30th September, 2023
What is the key risk? Communica onU li es Energy
Services
2% 7%
The scheme invests primarily in large-cap stocks with a growth tilt. Relative Informa on 4% Materials
Technology
6%
return could lag the market if broader market rally picks up on favourable 13%
economic recovery and/or growth stocks don’t perform . In addition, the Industrials
scheme could also be exposed to some value-traps and idiosyncratic risks in 7%
its deep value portfolio.
Consumer
Discre onary
How has the fund performed? 9%
Financials
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors 40%
Consumer
1. Financial Services 1. Information Technology Staples
Sector 2. Oil, Gas & Consu. Fuels 2. Consumer Durables 7%
3. Construction 3. Chemicals Healthcare
5%
1. HDFC Bank Ltd. 1. Crompton Greaves Consumer Portfolio Date: 30th September, 2023
Stock 2. ICICI Bank Ltd. 2. Gland Pharma Ltd.
3. AXIS Bank Ltd. 3. Infosys Ltd. Morningstar Equity Style BoxTM

Market Cap %
Large

What the Manager Says:

Market Cap Giant 72.7
As we look forward, we believe that Indian corporate earnings growth will be
better than last few years and will be driven by multiple sectors. We see a) Market Cap Large 20.2
Mid

Cyclical upturn in many sectors like Real estate, Auto, Banking, Telecom etc., Market Cap Mid 7.1
b) Manufacturing tailwinds led by China+1 opportunity & govt’s PLI scheme,
c) Private capex recovery supported by strengthened balance sheet of Market Cap Small 0.0
Small

corporate India and d) We also see the theme of consolidation or Market Cap Micro 0.0
formalization seen in many sectors post better implementation of GST. While Value Blend Growth
all the stocks in the portfolio are selected on bottom up basis, for portfolio Portfolio Date: 30th September, 2023
construction we follow barbell approach. We have kept an overweight stance
on financials, consumption, Healthcare and select auto names. We are Portfolio
Top 10 Holdings
Weighting %
underweight on sectors impacted by global slowdown like IT, metals and
O&G. The fund is most appropriate for investors with a long investing horizon HDFC Bank Ltd. 11.4
and those seeking to benefit from the power of compounding. ICICI Bank Ltd. 9.4

Infosys Ltd. 7.3

Reliance Industries Ltd. 6.9

Axis Bank Ltd. 5.5

Since Bharti Airtel Ltd. 4.0
YTD 1 Year 3 Years 5 Years Inception
State Bank of India 3.5
Mirae Asset Large Cap Reg Gr 9.6 13.9 19.5 13.1 14.4
Larsen & Toubro Ltd. 3.3
IISL Nifty 100 TR INR 8.1 13.3 21.2 13.2 10.7 HCL Technologies Ltd. 2.9
India Fund Large-Cap 8.6 13.2 19.3 11.7 9.6 Maruti Suzuki India Ltd. 2.7

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 8
 Equity - Largecap

SBI Bluechip Fund

Why this fund?
l Focus on identifying stocks that are perceived to be relatively stable
FundSelect
and have the potential to perform across cycles, thus having very low PRR 4
churn.
l Opportunistic allocation across market segments, midcap exposure Key Fund Characteristics
decided based on growth prospects and valuations compared to their Portfolio Manager Sohini Andani & Mohit Jain
large cap peers.
Inception Date 14th February, 2006

What is this fund all about? Fund Size (INR Mio.) 396,505

Benchmark S&P BSE 100 India TR INR

l Multi-pronged Bottom-up stock selection: Focused on 1) Long term
growth prospect 2) Management’s past track record on execution 3) Fund ISIN INF200K01180
Efficient capital allocation and 4) Price/ Value Gap. Expense ratio 1.60%
l
Opportunistic allocation to broader markets: Exposure to midcaps 3Y Standard Deviation 14.29%
when growth prospects are expected to be better than largecap peers and
3Y Sharpe Ratio 1.20
valuations are not fully factoring the same.
l Backed by a large research team: one of the largest research teams in 3Y Beta 0.98

India. Exit Fee 1.00%

Portfolio Date: 30th September, 2023

What is the key risk?
Communica on U li es
Services
2% Energy
The scheme invests primarily in large-cap stocks with higher sensitivity to 5%
12%
Informa on
economics growth so the relative return could lag the market if economic Technology
11% Materials
recovery faulters. In addition to being exposed to market risk, opportunistic 6%
exposure to certain sectors of the market can expose the scheme to higher
volatility. Industrials
11%
Financials
How has the fund performed? 30%

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Consumer
Discre onary
1. Financial Services 1. Textile 12%
Sector 2. Construction 2. Power
Consumer
3. Fast Moving Cons. Goods 3. Healthcare Healthcare Staples
1. Larsen & Toubro Ltd. 1. Page Industries Ltd. 5% 6%

Stock 2. Bajaj Finance Ltd. 2. Eicher Motors Ltd. Portfolio Date: 30th September, 2023

3. Cholamandalam Inv. & Fin. 3. NTPC Ltd. Morningstar Equity Style BoxTM

What the Manager Says: Market Cap %

Large

The portfolio is well diversified and spread over 50 stocks, wherein top 10 Market Cap Giant 61.9
holdings account for 49.9% of the portfolio. As of September 30, 2023, 84 % Market Cap Large 37.1
of the portfolio is in large cap stocks, and 11% is in midcap stocks. The fund is
Mid

overweight on Automobile and Auto Components, Capital Goods and Market Cap Mid 0.9
Healthcare, and underweight on Information Technology, Oil, Gas & Market Cap Small 0.0
Small

Consumable Fuels, and Consumer Durables. The FM believes Automobile

Market Cap Micro 0.0
and Auto Components are in the early stages of a cyclical upcycle (after the
Value Blend Growth
slowdown seen since late 2018), and also due bottom-up ideas. The FM
continues to focus on stock selection, which they believe is the best way to Portfolio Date: 30th September, 2023

generate alpha. Portfolio

Top 10 Holdings
Weighting %

HDFC Bank Ltd. 9.6

ICICI Bank Ltd. 7.7

Larsen & Toubro Ltd. 5.7

ITC Ltd. 5.5

Infosys Ltd. 4.8

Since Bajaj Finance Ltd. 4.5
YTD 1 Year 3 Years 5 Years Inception
Reliance Industries Ltd. 3.6
SBI Bluechip Reg Gr 12.6 18.1 23.2 14.3 11.8
Page Industries Ltd. 3.1
S&P BSE 100 India TR INR 10.5 16.1 22.5 14.0 — Britannia Industries Ltd. 2.7
India Fund Large-Cap 8.6 13.2 19.3 11.7 11.1 Divi’s Laboratories Ltd. 2.6

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 9
 Equity - Large & Midcap

Kotak Equity Opportunities Fund

Why this fund?
l Market Capitalization agnostic- offers exposure across sectors and
FundSelect
market cap segments. PRR 4
l Process-backed investment style with top-down thematic overlay and
bottom-up stock selection. Key Fund Characteristics
l Long-term performance track-record, with reasonably lower volatility Portfolio Manager Harsha Upadhyaya
due to prudent portfolio construction. Inception Date 9th September, 2004

What is this fund all about? Fund Size (INR Mio.) 155,005

Benchmark IISL Nifty LargeMidcap 250 TR INR

l Aggressively looks for investment opportunities without any market cap or
Fund ISIN INF174K01187
sectoral bias while avoiding active cash calls. GARP model for selection
based on the growth patterns in the economy. Expense ratio 1.66%
l Allocates 35%-45% to large & midcap each with a diversified 50-60 stocks 3Y Standard Deviation 12.74%
having around ~40% in Top 10 stocks. Large and Midcap selection 3Y Sharpe Ratio 1.47
decision based on valuations, bottom-up research and market outlook.
3Y Beta 0.84
l
Flexibility to move across market capitalization ranges within the mandate
to participate in ideas with scalable & competitive business model, Exit Fee 1.00%

management bandwidth, steady cash-flow and efficient capital allocation. Portfolio Date: 30th September, 2023

Communica on
What is the key risk? Services
Real Estate 2%
U li es Energy
2% 3%
Informa on 1%
The fund is mandated to invest minimum 35% each in Large and midcap, rest Technology
6% Materials
can be across the market capitalization spectrum. Performance may be 16%
negatively affected during periods where the mid and small cap segments Financials
22%
lag. FM follows a mix of top-down and bottom-up investing style which might
lead to large sector deviations from benchmark, subjecting the fund to higher Industrials
volatility v/s the benchmark. 20%

How has the fund performed? Healthcare

6%
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Consumer
Staples Consumer
Discre onary
1. Capital Goods 1. Financial Services 6%
16%
Sector 2. Consumer Durables 2. Health Care Portfolio Date: 30th September, 2023
3. Construction 3. Automobile & Auto Compo.
1. Linde India Ltd. 1. Bajaj Finance Ltd. Morningstar Equity Style BoxTM
Stock 2. Blue Star Ltd. 2. Bharat Forge Ltd. Market Cap %
Large

3. Jindal Steel & Power Ltd. 3. Maruti Suzuki Ltd.

Market Cap Giant 40.3
What the Manager Says: Market Cap Large 43.7
Mid

The portfolio is well diversified and spread over 75 stocks, wherein top 10
Market Cap Mid 15.2
holdings account for 37% of the portfolio. As of July 31, 2023, 55% of the
portfolio is in large cap stocks, 36% in midcap stocks and 7% in small caps. Market Cap Small 0.7
Small

The fund is overweight on Capital Goods, Chemicals and Construction, and Market Cap Micro 0.0
underweight on Financial Services, IT & Power Investment focus is on Value Blend Growth
businesses that can get rerated with economic revival. The FM continues to
Portfolio Date: 30th September, 2023
focus on bottom-up stock picking, emphasizing companies with low leverage,
strong balance sheets and cash flows, and reasonable valuations. Top 10 Holdings
Portfolio
Weighting %

ICICI Bank Ltd. 4.3

State Bank of India 4.2

Axis Bank Ltd. 4.1

Maruti Suzuki India Ltd. 4.1

Larsen & Toubro Ltd. 3.6

Since Bharat Forge Ltd. 3.3
YTD 1 Year 3 Years 5 Years Inception
ITC Ltd. 3.2
Kotak Equity Opp. Reg Gr 18.2 22.6 25.2 17.4 18.2
Linde India Ltd. 3.1
IISL Nifty LargeMidcap 250 TR INR 17.9 21.9 27.5 17.1 — Bharat Electronics Ltd. 2.5
India Fund Large & Mid-Cap 15.8 18.8 25.4 15.9 17.1 Reliance Industries Ltd. 2.4

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 10
 Equity - Large & Midcap

SBI Large & Midcap Fund

Why this fund?
l Differentiated strategy with two-pronged strategy based on Market cap.
FundSelect
l The fund has consistently had lower volatility as compared to the BM. PRR 4
l Fund size is appropriate for the fund to not compromise on good ideas.
Key Fund Characteristics
What is this fund all about? Portfolio Manager Saurabh Pant

Inception Date 25th May, 2005

l Diversified strategy where Largecap allocation is benchmark conscious
and Mid/ Smallcap stock selection is purely bottom up. Fund Size (INR Mio.) 157,060
l
FM runs a style agnostic, cyclical heavy fund with an ideal 40:40:10 mix of Benchmark IISL Nifty LargeMidcap 250 TR INR
Large, Mid and Smallcap. Stock selection is based simply on buying good Fund ISIN INF200K01305
businesses at better than reasonable prices.
Expense ratio 1.80%
l
The fund has well defined limits for stock, sector and market cap
diversification. 3Y Standard Deviation 13.79%

3Y Sharpe Ratio 1.55

What is the key risk? 3Y Beta 0.87
The fund is mandated to invest minimum 35% each in Large and midcap, rest Exit Fee 0.10%
can be across the market capitalization spectrum. Performance may Portfolio Date: 30th September, 2023
inevitably be negatively affected during periods where the mid and small cap
Communica on
segments lag. FM has a cyclical preference and can lag in periods which don’t ServicesU li esEnergy
Informa on 1% 2%
favour such stocks. Technology
1%
Materials
9% 12%

How has the fund performed?

Financials
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors 22%
Industrials
1. Chemicals 1. Financial Services 16%
Sector 2. International Stocks 2. Construction Materials
3. Oil, Gas & Consu. Fuels 3. Textiles
1. Netflix Inc. 1. Page Industries Ltd.
Stock 2. Triveni Turbine Ltd. 2. ACC Ltd. Healthcare Consumer
Discre onary
3. HDFC AMC Ltd. 3. Nuvoco Vistas Corp. Ltd. 12%
17%
Consumer
Staples
What the Manager Says: 8%
Portfolio Date: 30th September, 2023
The portfolio is well diversified and spread over 72 stocks, wherein top 10
holdings account for 27% of the portfolio. As of September 30, 2023, 39% of Morningstar Equity Style BoxTM
the portfolio is in large cap stocks, 42% in midcap stocks and 14% in small Market Cap %
Large

caps.
Market Cap Giant 29.7
The fund is overweight on Healthcare, Textiles, and Capital Goods and
underweight on Financial Services, Oil, Gas & Consumable Fuels and Market Cap Large 46.0
Mid

Information Technology. They are overweight on healthcare as earnings are Market Cap Mid 22.0
likely to accelerate on the back of ease in pricing pressure in US generic
Market Cap Small 1.8
plays. Ass per them, domestic opportunities are more structural in nature. On
Small

Metals & Mining, incrementally, they expect domestic players will get more Market Cap Micro 0.6
competitive and profitability is likely to remain healthy for longer. UW on the Value Blend Growth
Financials is due to margin pressure and top-down macro risk is likely to keep Portfolio Date: 30th September, 2023
performance of the sector subdued. They continue to focus on stock
Portfolio
selection, which they believe is the best way to generate alpha. Top 10 Holdings
Weighting %

HDFC Bank Ltd. 4.6

ICICI Bank Ltd. 4.5

Infosys Ltd. 2.7

HDFC AMC Ltd. 2.6

Coforge Ltd. 2.4

Since Kajaria Ceremics Ltd. 2.2
YTD 1 Year 3 Years 5 Years Inception
Indian Hotels Co. Ltd. 2.2
SBI Large & Midcap Reg Gr 15.0 17.2 28.4 16.9 17.5
State Bank of India 2.1
IISL Nifty LargeMidcap 250 TR INR 13.9 20.6 28.5 14.9 15.8 ITC Ltd. 2.1
India Fund Large & Mid-Cap 12.6 18.5 26.2 13.7 16.2 Muthoot Finance Ltd. 2.0

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 11
 Equity - Flexicap

Franklin India Flexicap Fund

Why this fund?
l The fund has a blended investment style with focus on quality and
FundSelect
value, where quality is at the right price. PRR 4
l It focuses on stocks with long term growth higher than market growth
and having strong balance sheets. Key Fund Characteristics
l Key investment themes are 1. Consolidation theme- large players with Portfolio Manager Anand Radhakrishnan,
R. Janakiraman
significant market share growing larger 2. Emerging Investment Inception Date 29th September, 1994
opportunities in the sectors benefitting from tech led disruption.
Fund Size (INR Mio.) 121,411
What is this fund all about? Benchmark IISL Nifty 500 TR INR

Fund ISIN INF090I01239

l A Blend of top-down (macro analysis to identify sectors) and bottom-up
approach (micro analysis to pick stocks within these sectors) to stock Expense ratio 1.80%
selection is followed. Bottom-up stock selection accounts 80% of the 3Y Standard Deviation 14.60%
selection criteria and rest is based on sectoral preference.
3Y Sharpe Ratio 1.54
l
The fund is benchmark aware and positions the sectoral calls by creating
OW and UW positions compared to the BM. It has soft and hard limits 3Y Beta 0.95

present for stock and sector level deviations. The fund allows the FM to Exit Fee 1.00%
have 7% absolute sectoral deviation from the BM sectoral weight with Portfolio Date: 30th September, 2023
minimum 20% of the BM sectoral weight. Communica on
Services Energy
l
Stocks are graded basis QSG parameters (Quality, Sustainability, U li es 5% 4% Materials
7%
Growth) and Valuation parameters. 5%

l
The fund aims to have about 50-60 stocks and targets to generate 200 bps Informa on
Technology
Industrials
over the BM. 10%
14%

What is the key risk?

Financials
31%
The fund is running a relatively higher concentration in its top 10 stocks at 50-
52%, so any large movements in these stocks can have sizeable impact. The Consumer
Discre onary
category average of concentration is 47%. The fund is OW sensitive sectors 13%
which can cause impact. The fund gives 20% weightage to sectoral calls and
Consumer
that can impact the performance. Being BM aware the volatility has been in Healthcare Staples
line with the BM. 1% 10%
Portfolio Date: 30th September, 2023
How has the fund performed?
Morningstar Equity Style BoxTM
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
Market Cap %
Large

1. Industrials 1. Financials
Sector 2. Utilities 2. Real Estate Market Cap Giant 55.4
3. Consumer Staples 3. Information Technology Market Cap Large 28.9
Mid

1. Larsen & Toubro Ltd. 1. Aditya Birla Fash. & Retail Ltd.
Market Cap Mid 14.8
Stock 2. Jyothy Labs Ltd. 2. United Breweries Ltd.
3. Tata Motors Ltd. 3. Jubilant Food works Market Cap Small 0.9
Small

What the Manager Says: Market Cap Micro 0.0

The FM continues to focus picks on high quality stocks with long-term higher Value Blend Growth
than market growth prospects and strong balance sheets. Key investment Portfolio Date: 30th September, 2023
themes include (i) consolidation - large players with significant market share
Portfolio
growing larger and (ii) emerging opportunities from technology-led Top 10 Holdings
Weighting %
disruption. The fund maintains overweight exposure to industrials, consumer
ICICI Bank Ltd. 7.9
discretionary, consumer staples, communication services and utilities while
holding an underweight exposure to financials, technology, energy, HDFC Bank Ltd. 7.3
materials, healthcare and real estate sectors. The fund continues to maintain Larsen & Toubro Ltd. 5.9
the market capitalization mix while focusing on improving growth/GARP
Infosys Ltd. 5.0
oriented stocks and moderating exposure to contrarian holdings.
Axis Bank Ltd. 5.0
Since Bharti Airtel Ltd. 4.6
YTD 1 Year 3 Years 5 Years Inception
State Bank of India 3.2
Franklin India Flexi Cap Gr 16.0 22.0 29.7 15.6 17.9
United Spirits Ltd. 2.9
IISL Nifty 500 TR INR 12.8 17.6 24.1 14.9 — HCL Technologies Ltd. 2.8
India Fund Multi-Cap 19.0 22.0 27.0 16.6 — Grasim Industries Ltd. 2.8

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 12
 Equity - Flexicap

UTI Flexi Cap Fund

Why this fund?
l Growth oriented multi-cap strategy investing in businesses with
FundSelect
potential for strong growth over long periods and run by seasoned PRR 4
managements.
l Bottom-up stock picking with well defined metrics and a focus on Key Fund Characteristics
Quality stocks with strong fundamentals and business models. Portfolio Manager Ajay Tyagi

Whyat is this fund all about? Inception Date 18th May, 1992

Fund Size (INR Mio.) 254,523

l Style driven by Quality, Growth & Valuation: Quality is determined
Benchmark IISL Nifty 500 TR INR
through capital efficiency (high ROCEs / ROAs) while Growth is
determined through profitability. Finally, Valuations is determined by Fund ISIN INF789F01513
consistency in cash flow generation along with earnings yield. Expense ratio 1.60%
l
Investment Framework & Strategy: Well defined bottom-up stock 3Y Standard Deviation 15.61%
picking philosophy based on strong earnings quality and long-term growth
3Y Sharpe Ratio 0.83
potential and visibility for at-least next 3-5 years.
l Active risk management: The fund limits the number of stocks to around 3Y Beta 1.00

50 for optimum diversification while restricting the stock weight to 7.5% at Exit Fee 1.00%
an individual stock level for this scheme. FM would limit concentration to Portfolio Date: 30th September, 2023
50% for top 10 stocks. Communica on
Services Materials
What is the key risk? Informa on 4% 8%
Technology
15% Industrials
The fund invests across the market capitalization spectrum including in mid 10%

and small cap stocks, which are generally more volatile and less liquid than
large caps. The fund is growth tilted and may underperform in periods where
Value does better. FM follows a bottom up investing style which might lead to Financials
large sector deviations from benchmark, subjecting the fund to higher 26% Consumer
Discre onary
volatility. 18%

How has the fund performed?

Consumer
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Staples
Healthcare 7%
1. Utilities 1. Consumer Cyclicals 12%
Sector 2. Information Technology 2. Financial Services Portfolio Date: 30th September, 2023
3. Energy 3. Industrial
Morningstar Equity Style BoxTM
1. Coforge Ltd. 1. Avenue Supermarts Ltd.
Stock 2. LTI Mindtree Ltd. 2. Crompton Greaves CE Ltd. Market Cap %
Large

3. HDFC Ltd. 3. Page Industries Ltd.

Market Cap Giant 46.8
What the Manager Says: Market Cap Large 35.9
Mid

Often growth and value styles alternate in the market. Over the last three
Market Cap Mid 16.0
years, value stocks have done significantly better than growth stocks. While
the outperformance of value stocks had started in 2020 itself, it was Market Cap Small 1.3
Small

exacerbated by the steep rise in interest rates through 2022. With peak rates Market Cap Micro 0.0
in sight as well as the outperformance of value versus growth at the highest Value Blend Growth
level in terms of duration and magnitude, we feel the me for reversal is ripe.
Portfolio Date: 30th September, 2023
With the global economic environment expected to remain weak, sectors that
have global linkages appear to be unattractive to us. Across all the major Top 10 Holdings
Portfolio
Weighting %
regions like the US, Europe and China, growth rates will remain weak in the
coming quarters and this would be negative for sectors like energy, metals, HDFC Bank Ltd. 6.3
chemicals, etc. On the other hand, India's growth will remain secular and LTI Mindtree Ltd. 6.2
therefore sectors that are linked to domestic consumption like banking and
Bajaj Finance Ltd. 6.1
financial services, consumer staples, consumer discretionary and healthcare
should continue to do well. ICICI Bank Ltd. 5.8

Infosys Ltd. 3.9

Since Avenue Supermarts Ltd. 3.6
YTD 1 Year 3 Years 5 Years Inception
Kotak Mahindra Bank Ltd 3.5
UTI Flexi Cap Reg GR 10.6 7.4 17.9 13.7 13.0
Info Edge (India) Ltd. 3.0
IISL Nifty 500 TR INR 12.8 17.6 24.1 14.9 — Coforge Ltd. 2.9
India Fund Multi-Cap 19.0 22.0 27.0 16.6 — Titan Co. Ltd. 2.9

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 13
 Equity - Flexicap

HDFC Flexi Cap Fund

Why this fund?
FundSelect
l Bottom-up stock picking with well defined metrics.
l Value tilted portfolio based on strong fundamentals and business PRR 4
models.
Key Fund Characteristics
l Diversified multicap strategy with a long-term approach to investing
and maintaining low portfolio turnover. Portfolio Manager Roshi Jain

Inception Date 1st January, 1995

What is this fund all about?
Fund Size (INR Mio.) 397,943
l Consistent approach in measuring valuation 1) comprehensive Benchmark IISL Nifty 500 TR INR
assessment of the company's competitive business advantages and
Fund ISIN INF179K01608
industry position 2) visible runway for sustained growth 3) available at a
reasonable price. Expense ratio 1.59%

l
Mindful of the price paid for a company and avoids buying if multiples are 3Y Standard Deviation 16.01%
not justified by the DCF model and business outlook. 3Y Sharpe Ratio 1.61
l
Focus on companies with good visibility of sustained cash flow, disciplined 3Y Beta 1.03
balance sheets and being run by a management team with proven track
Exit Fee 1.00%
record.
Portfolio Date: 30th September, 2023
l Understanding that a value company may take longer than usual for
realizing its true intrinsic value, but over a cycle it will make up for any U li es Energy
Materials
8% 5%
relative underperformance. 0%
Communica on Industrials
Services 10%
What is the key risk? 7%
Consumer
Discre onary
6%
The fund invests across the market capitalization spectrum including in mid Informa on
Technology
and small cap stocks, which are generally more volatile and less liquid than 12%
large caps. Performance may inevitably be negatively affected during periods
Healthcare
where the mid and small cap segments lag. Value tilted portfolio may lag in 12%
periods where markets are directional and quality stocks are doing well.
How has the fund performed?
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Financials
40%
1. Utilities 1. Materials Portfolio Date: 30th September, 2023
Sector 2. Industrials 2. Consumer Staples
3. Healthcare 3. Consumer Discretionary Morningstar Equity Style BoxTM
1. NTPC 1. ITC Market Cap %
Large

Stock 2. HAL 2. TCS

3. HCL Tech 3. RIL Market Cap Giant 60.6

Market Cap Large 31.2

What the Manager Says:
Mid

Market Cap Mid 8.0

The Scheme has a predominantly large cap portfolio as of 30th September
2023 with ~81 % of the equity exposure being invested in Large-Caps. The Market Cap Small 0.0
Small

Scheme is overweight in sectors with prospects of earnings recovery with Market Cap Micro 0.2
reasonable valuations and is generally underweight in expensive sectors. Value Blend Growth
The Scheme aims to invest in stocks/ sectors that are available at reasonable
Portfolio Date: 30th September, 2023
valuations. Key over weights and rationale:
lHealthcare: Stable domestic market, complex opportunities in US, relatively Portfolio
Top 10 Holdings
Weighting %
reasonable valuations. Financials: Credit Growth, benign credit cycle,
l

greater financialization of savings. Utilities – Attractive valuations and

l ICICI Bank Ltd. 9.2
defensive characteristics. Telecom: Pricing power finally!
l
HDFC Bank Ltd. 9.0
Key under weights and rationale: Energy– Stock selection driven
l
NTPC Ltd. 5.5
underweight Consumer Staples/Discretionary – Growth and margin risk,
l

State Bank of India 5.1

excessive valuations Materials: Global Slowdown.
l

HCL Technologies Ltd. 4.8

Since Bharti Airtel Ltd. 4.7
YTD 1 Year 3 Years 5 Years Inception
Cipla Ltd. 4.6
HDFC Flexi Cap Gr. 15.8 25.2 33.8 16.8 18.6
Hindustan Aeronautics Ltd. Ord. Shares 4.1
IISL Nifty 500 TR INR 12,8 17.6 24.1 14.9 — SBI Life Insurance Co. Ltd. 4.1
India Fund Multi-Cap 19.0 22,0 27.0 16.6 — Mahindra & Mahindra Ltd. 4.0

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 14
 Equity - Midcap

Nippon India Growth Fund

Why this fund?
l Fund is backed by the largest stock research coverage in the industry
FundSelect
with analysts dedicated to mid & small cap stocks. PRR 4
l Value tilted Bottom-up stock selection with Growth at Reasonable Price
(GARP) investing style. Key Fund Characteristics
l Avoids investing in companies with fractured balanced sheets or asset Portfolio Manager Rupesh Patel & Dhrumil Shah
quality concerns. Inception Date 8th October, 1995

What is this fund all about? Fund Size (INR Mio.) 192,472

Benchmark S&P BSE Midcap 150 TR INR

l The portfolio is sliced to ascertain sensitivity to macro variables like
Fund ISIN INF204K01323
interest rate sensitivity, commodity & currency by classifying the industries
into cyclicals, semi-cyclicals and structural industries, for better Expense ratio 1.70%
assessment of risk. 3Y Standard Deviation 15.03%
l
While the fund adopts a stock specific or largely bottom-up investment 3Y Sharpe Ratio 1.70
approach, they do recalibrate the portfolio weights as and when large
macroeconomic variables (oil prices, interest rates, world growth etc.) 3Y Beta 0.92

change. Exit Fee 1.00%

l The portfolio has a long tail (more stocks with lower allocation) as: 1) Portfolio Date: 30th September, 2023
Building or reducing positions in midcaps takes fair amount of time and Real Estate
price changes are quite significant. 2) Corporate actions can result in Communica on U li es 2%
Services 4% Materials
small demerged companies which are quite illiquid. 3% 13%
Informa on
Technology
What is the key risk? 4%

The fund is mandated to invest over 65% in midcap stocks. It follows a Industrials
Financials 13%
bottom-up strategy with significant sector deviation which can result in higher 28%
tracking error. In addition to being exposed to liquidity risks associated with
lower market capitalization companies, the schemes performance can be
further impacted during periods of flight to safety (to large cap) and/or if the
value theme is not performing. Consumer
Discre onary
18%
How has the fund performed? Healthcare Consumer Staples
5%
10%
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Portfolio Date: 30th September, 2023

1. Information Technology 1. Consumer Discretionary Morningstar Equity Style BoxTM

Sector 2. Materials 2. Financial
Market Cap %
Large

3. Consumer Staples 3. Real Estate

1. Power Finance Corp. Ltd. 1. Aditya Birla Fashion & Retail Market Cap Giant 4.9
Stock 2. Tata Elxsi 2. REC Ltd.
Market Cap Large 62.9
3. Varun Beverages Ltd. 3. HDFC Bank Ltd.
Mid

Market Cap Mid 31.5

What the Manager Says:
Market Cap Small 0.8
The portfolio remains well-diversified across sectors and stocks. Financials
Small

and Consumer are the most represented sectors in the portfolio. OW stance Market Cap Micro 0.0
on Financials is on account of OW on NBFCs. The exposure to NBFCs Value Blend Growth
remains diversified in terms of focused asset class (Housing, Power, Rural). Portfolio Date: 30th September, 2023
Portfolio is OW on consumer facing businesses that include both Consumer
Portfolio
Services like (QSR, Retail) and Consumer Products (FMCG/Beverages). Top 10 Holdings
Weighting %
These businesses offer long runway for growth, however, in some high
valuations may limit significant upsides in the near term. Changes in last 3 Cholamandalam Financial Holdings Ltd. 4.1

months (June 23 – Sep 23)- Reduced UW position in Consumer Power Finance Corp. Ltd. 4.0
Discretionary and became neutral (supportive macros for domestic growth). AU Small Finance Bank Ltd. 2.8
Increased UW position in IT (Global headwinds)
Supreme Industries Ltd. 2.6

Varun Beverages Ltd. 2.5

Since Max Financial Services Ltd. 2.4
YTD 1 Year 3 Years 5 Years Inception
Persistent Systems Ltd. 2.1
Nippon India Growth Gr 28.0 29.5 33.6 22.1 22.3
Dalmia Bharat Ltd. 2.0
IISL Nifty Midcap 150 TR INR 28.1 30.7 33.8 20.9 — Mahindra & Mahindra Financial Serv. Ltd. 2.0
India Fund Mid-Cap 23.1 24.1 29.5 18.8 16.4 NTPC Ltd. 1.9

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 15
 Equity - Midcap

Motilal Oswal Midcap Fund

Why this fund?
l Fund seeks to identify high-growth prospects that have the potential to
FundSelect
become leaders of tomorrow. PRR 4
l High conviction concentrated portfolio strategy to maximize potential
outperformance. Key Fund Characteristics
l Stock selection based on QGLP Philosophy that screens new ideas for Portfolio Manager Niket Shah
– Quality of business, Growth in earnings, Longevity of business and Inception Date 24th February, 2014
Priced reasonably.
Fund Size (INR Mio.) 59,530
What is this fund all about? Benchmark IISL Nifty Midcap 150 TR INR

Fund ISIN INF247L01411

l Broad Framework based on QGLP Philosophy
l Quality of Business - (i) Stable business, preferably consumer facing Expense ratio 1.79%
(ii) Sizable business opportunity (iii) Sustainable competitive 3Y Standard Deviation 14.53%
advantage (iv) Competent management team (v) Healthy financials & 3Y Sharpe Ratio 1.86
ratios.
3Y Beta 0.80
l
Growth in earnings – Observed through (i) Volume growth (ii) Price
growth (ii) Mix change (iv) Operating leverage (v) Financial leverage. Exit Fee 1.00%
l
Longevity – of both Q & G factors – Observed through (i) Long-term Portfolio Date: 30th September, 2023

relevance of business (ii) Extending competitive advantage period (iii) Real Estate
Communica on Materials
Sustenance of growth momentum. Services
7%
14%
2%
l Price – (i) Reasonable valuation, relative to quality & growth prospects
(ii) High margin of safety.
Informa on
l Bottom-up approach – Sector agnostic approach to build a concentrated Technology
Industrials
22% 13%
portfolio of high conviction ideas that maximize potential outperformance.
What is the key risk?
The fund is mandated to invest over 65% in midcap stocks. The fund follows a Consumer
Discre onary
bottom-up strategy with significant sector deviation from the benchmark Financials 20%
20%
which can result in higher tracking error. In addition to being exposed to
liquidity risks associated with lower market capitalization companies, the Healthcare
2%
schemes performance can be further impacted during periods of flight to
Portfolio Date: 30th September, 2023
safety ( to large cap). Further, high-conviction nature of the scheme can
induce heightened cyclicality in performance. Morningstar Equity Style BoxTM

Market Cap %
How has the fund performed?
Large

Market Cap Giant 9.5

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
Market Cap Large 76.9
1. Healthcare 1. Financial Services
Mid

Sector 2. Communication Services 2. Basic Materials Market Cap Mid 12.7

3. 3. Utilities
Market Cap Small 0.9
Small

1. CG Power & Ind. Sol. Ltd. 1. Campus Activewear Ltd.

Stock 2. Zomato Ltd. 2. Ambuja Cements Ltd. Market Cap Micro 0.0
3. KPIT Technologies 3. Bharat Dynamics Ltd. Ord. Sh. Value Blend Growth

What the Manager Says: Portfolio Date: 30th September, 2023

The fund runs a focused portfolio of high conviction companies which are Top 10 Holdings
Portfolio
picked bottom up. The AMC believes earnings growth potential in Midcap and Weighting %
Small cap part of the market continues to be better than what the market for Jio Financial Services Ltd. 9.3
large cap indices are experiencing. This has a large influence of supportive
Cholamandalam Inv. & Fin. Co. Ltd. 9.1
govt. policies and should continue to provide better growth till policy
environment remains supportive. The scheme has exposure in sectors such Zomato Ltd. 9.0
as IT, Auto Components, Retailing, Capital Goods etc. Persistent Systems Ltd. 7.3

KPIT Technologies Ltd. 6.8

Since Deepak Niatrate Ltd. 6.5
YTD 1 Year 3 Years 5 Years Inception
Balkrishna Industries Ltd. 6.0
Motilal Oswal Midcap 30 Reg Dr 23.8 21.0 35.7 21.1 21.0
Coforge Ltd. 6.0
IISL Nifty Midcap 150 TR INR 28.1 30.7 33.8 20.9 21.8 Prestige Estates Projects Ltd. 5.1
India Fund Mid-Cap 23.1 24.1 29.5 18.8 20.2 CG Power & Industrial Solutions Ltd. 4.6

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 16
 Equity - Midcap

Kotak Emerging Equity Fund

Why this fund?
l Pure bottom-up stock picking using a BMV philosophy, top-down sector
FundSelect
view overlay, with an ardent focus on not making mistakes in stock PRR 4
choices.
l The fund has strong casing and has kept liquidity as a primary factor. Key Fund Characteristics
l The PM has expertise in Midcap and Smallcap stocks running the Portfolio Manager Pankaj Tibrewal
same offering for the AMC (Kotak Smallcap Fund, Kotak Equity Hybrid Inception Date 30th March, 2007
Fund and Kotak Business cycle fund), having given consistent
Fund Size (INR Mio.) 339,183
outperformance in those.
Benchmark IISL Nifty Midcap 150 TR INR
What is this fund all about? Fund ISIN INF174K01DS9
l
Security selection is a bottom-up approach with a top-down thematic Expense ratio 1.50%
overlay. The PM is looking for winning investment ideas across the mid & 3Y Standard Deviation 14.39%
small cap range offering decent growth trajectory over the medium to long
3Y Sharpe Ratio 1.61
term horizon, following a Buy and hold strategy.
l The portfolio construction will be based on bottom-up stock picking using 3Y Beta 0.87

the Business, Management and Valuation (BMV) model. Exit Fee 1.00%
l The PM runs a BM aware and sector diversification with guard rails. The Portfolio Date: 30th September, 2023
fund will have 65% minimum in MCs and rest in LC and SC. PM strives for U li es
70-73% in MC, 10-15% in LC and 10-15% in SC and 4-5% in cash. Informa on
Technology 1% Energy
1%
5%
What is the key risk?
Financials
Materials
14%
The fund is mandated to invest over 65% in midcap stocks. The fund is 27%

susceptible to cyclicality due to the segment it operates in, and higher interest
environment can cause the fund to underperform The Fund is OW Materials, Healthcare
7%
Industrials and Consumer Discretionary and UW Financials and IT.
Consumer Staples
How has the fund performed? 2%

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
Consumer
1. Information Technology 1. Financial Services Discre onary Industrials
Sector 2. Capital Goods 2. Power 21% 22%
3. Consumer Durables 3. Healthcare Portfolio Date: 30th September, 2023
1. Persistent Systems Ltd. 1. Schaffler India Ltd.
Morningstar Equity Style BoxTM
Stock 2. Superme Industries Ltd. 2. SKF India Ltd.
3. Sheela Foam Ltd. 3. ICICI Bank Ltd. Market Cap %
Large

What the Manager Says: Market Cap Giant 4.5

Fund is positioned for an economic recovery post pandemic and the FM’s Market Cap Large 64.7
Mid

focus is more on domestic economy facing businesses that have survived Market Cap Mid 29.7
this crisis and are well positioned to grow post the pandemic, managed by
Market Cap Small 1.0
good managements and are trading at reasonable valuations. In the near
Small

term, the FM expects rising inflation/rates globally, costs challenges and its Market Cap Micro 0.0
uncertainty on macro demand to add to market volatility. Their preference is to Value Blend Growth
invest in businesses which have improving supply dynamics. The belief is Portfolio Date: 30th September, 2023
that consolidated/consolidating industry structure allows for better pricing
Portfolio
power, higher visibility of profit pools and discipline amongst various industry Top 10 Holdings
Weighting %
participants. The FM’s focus is on companies with leadership, low leverage,
high cash flows and reasonable valuations. In the Pharma sector they Supreme Industries Ltd. 4.7

continue to have stock specific approach. The portfolio has adequate mix of Schaeffler India Ltd. 3.5
Defensives and cyclicals. The current allocation to midcaps is around 68%. Persistent Systems Ltd. 3.3

Cummins India Ltd. 2.9

Solar Industries Ltd. 2.9

Since Thermax Ltd. 2.8
YTD 1 Year 3 Years 5 Years Inception
Oberoi Realty Ltd. 2.7
Kotak Emerging Equity Reg Gr 19.9 21.1 30.8 20.8 14.4
SKF India Ltd. 2.6
IISL Nifty Midcap 150 TR INR 28.1 30.7 33.8 20.9 21.8 Bharat Forge Ltd. 2.6
India Fund Mid-Cap 23.1 24.1 29.5 18.8 20.2 Atul Ltd. 2.5

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 17
 Equity - Smallcap

Edelweiss Small Cap Fund

Why this fund?
l Growth tilted Bottom-up stock selection with Growth at Reasonable
FundSelect
Price (GARP) investing style. PRR 4
l The fund invests in small businesses that aim to deliver exponential
business and earnings growth by buying businesses benefiting from Key Fund Characteristics
economic growth owing to their cyclical nature. Portfolio Manager Sahil Shah, Trideep Bhattacharya
l It uses the FAIR investment framework (Forensics, Acceptable Price, Inception Date 7th February, 2019
ESG Informed, Robustness) which helps in identifying robust and clean
Fund Size (INR Mio.) 24,553
businesses available at acceptable price and keeps informed on their
ESG standings. Benchmark IISF Nifty Smallcap 250 TR INR

Fund ISIN INF754K01JJ4

What is this fund all about?
Expense ratio 2.00%
l
It makes no compromise on quality by doing a higher degree of due 3Y Standard Deviation 16.10%
diligence and constantly monitors portfolio liquidity to handle market
3Y Sharpe Ratio 1.74
fluctuations and redemption pressures.
l The scheme allows investor to diversify portfolio holdings and play their 3Y Beta 0.87

constructive view on broader markets. Exit Fee 1.00%

l The FM does not take outsized sector bets, or Macro based calls or Cash Portfolio Date: 30th September, 2023
calls, all of which provide in a well diversified portfolio able to run across Energy
Real Estate
cycles while being fully invested. Informa on
Technology 3%
1%
Materials
l
Fund limits positions to 75 stocks and not more than 5% deviation from BM 8%
16%
sectoral allocations, while keeping high liquidity which provides a well- Financials
balanced play. 13%

What is the key risk?

The fund is mandated to invest over 65% in smallcap stocks. The fund follows Industrials
Healthcare
a bottom-up strategy with significant sector deviation from the benchmark 14% 24%

which can result in higher tracking error. In addition to being exposed to

liquidity risks associated with lower market capitalization companies, the Consumer Staples
schemes performance can be further impacted during periods of flight to 4% Consumer
Discre onary
safety (to large cap). Further, high-conviction nature of the scheme can 17%
induce heightened cyclicality in performance. Portfolio Date: 30th September, 2023

How has the fund performed? Morningstar Equity Style BoxTM

Market Cap %
Large

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
Market Cap Giant 0.0
1. Industrial Products 1. Chemicals & Petrochemicals
Sector 2. IT - Software 2. Retailing Market Cap Large 24.0
Mid

3. Electrical Equipments 3. Commercial Serv. & Supplies

Market Cap Mid 63.7
1. Kei Industries Ltd. 1. Vmart Retail Ltd.
Stock 2. Indian Bank 2. Lauraus Labs Ltd. Market Cap Small 12.2
Small

3. Apar Industries Ltd. 3. Mahindra Logistics Ltd.

Market Cap Micro 0.0
What the Manager Says: Value Blend Growth
Earnings growth is expected to be robust in years to come with valuation Portfolio Date: 30th September, 2023
above average. Medium term view continues to be constructive, on the back
Portfolio
of Housing sales (travel bookings and car bookings indicate healthy Top 10 Holdings
Weighting %
consumer spending and demand outlook), Rural recovery visible.,
APL Apollo Tubes Ltd. 3.2
Government & RBI focused on inducing growth and controlling inflation
through various measures, strong Corporate sector balance-sheets, Good Westlife Foodworld Ltd. 3.1
EPS estimates. Key risks include pockets of excesses and exuberant J.B. Chemicals & Pharmaceuticals Ltd. 3.1
behavior evident, creating vulnerabilities and longer than expected high
KEI Industries Ltd. 2.9
inflation and high interest rates.
Birlasoft Ltd. 2.5
Since Ajanta Pharma Ltd. 2.4
YTD 1 Year 3 Years 5 Years Inception
Amber Enterprises India Ltd. Ord. Shares 2.2
Edelweiss Small Cap Reg Gr 25.9 27.0 36.7 — 28.4
The Federal Bank Ltd. 2.1
IISL Nifty Smallcap 250 TR INR 29.7 33.9 35.9 20.1 22.7 Krishna Institute of Medical Sciences Ltd. 2.1
India Fund Small-Cap 25.8 26.8 35.6 22.5 25.2 UNO Minda Ltd. 2.1

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 18
 Equity - Smallcap

Kotak Small Cap Fund

Why this fund?
l Top-down thematic overlay and Bottom-up stock selection with Growth
FundSelect
at Reasonable Price (GARP) investing style. PRR 4
l The scheme allows investor to diversify portfolio holdings and play their
constructive view on broader markets. Key Fund Characteristics
l Fund Manager uses a variety of market sources including suppliers, Portfolio Manager Pankaj Tibrewal
customers, ex-employees, local CA / financier in the market to get a Inception Date 24th February, 2005
‘holistic’ view.
Fund Size (INR Mio.) 124,396
What is this fund all about? Benchmark IISF Nifty Smallcap 250 TR INR

Fund ISIN INF174K01211

l
Idea generation utilizes 4 pillars to propose on any stock for inclusion in
the portfolio- 1) Bias towards capital allocation - ROE / ROCE 2) Balance Expense ratio 1.70%
sheet discipline and cash flow mgt. (avoid leveraged businesses) 3) 3Y Standard Deviation 15.53%
Promoter integrity and quality – through long term experiences of all FMs /
3Y Sharpe Ratio 1.74
CIO etc. 4) Industry opportunity size.
l Backed by a large and experienced equity research team. 3Y Beta 0.81

l Robust risk management where AMC categorizes stocks from A - E (E is to Exit Fee 1.00%
be avoided) to reflect descending levels of exposure that can be taken on Portfolio Date: 30th September, 2023
the stock as a % of portfolio, and depends on its benchmark weight, Real Estate
Informa on
market cap and liquidity. Technology 2%
Energy
2%
6%
l
Fund limits positions to 55-60 stocks to avoid concentration and minimize Financials
'mortality’. 6%
Healthcare Materials
What is the key risk? 5% 28%
Consumer Staples
3%
Given the mandate of the fund to have a minimum of 65% exposure to small-
cap companies, fund is exposed to the less liquid segment of market and may
experience larger drawdowns during risk-off periods, with longer recovery
periods in case of a narrow breadth of market rally. In addition to being Consumer
Discre onary
exposed to equity market risks, fund’s performance can be impacted due to 22%
the high cyclical exposure (Industrials/ Materials/ Discretionary) in the event Industrials
of economic recovery taking longer than FM’s forecast. 26%
Portfolio Date: 30th September, 2023
How has the fund performed?
Morningstar Equity Style BoxTM
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
Market Cap %
Large

1. Information Technology 1. Financial Services

Sector 2. Media 2. Automobile & Auto Compo. Market Cap Giant 1.9
3. Realty 3. Consumer Durables Market Cap Large 17.9
Mid

1. Sheela Foam Ltd. 1. Suzlon Energy Ltd.

Market Cap Mid 64.1
Stock 2. Cyient Ltd. 2. Blue Dart Ltd.
3. Campus Activewear Ltd. 3. Schaeffler India Ltd. Market Cap Small 15.1
Small

What the Manager Says: Market Cap Micro 1.0

The fund is positioned for an economic recovery post pandemic and the FM’s Value Blend Growth
focus is more on domestic economy facing businesses that have survived Portfolio Date: 30th September, 2023
this crisis and are well positioned to grow post the pandemic, managed by
Portfolio
good managements and are trading at reasonable valuations. In the near Top 10 Holdings
Weighting %
term, they expect rising inflation/rates globally, costs challenges and its
Cyient Ltd. 3.9
uncertainty on macro demand to add to market volatility. Their preference is to
invest in businesses which have improving supply dynamics. Their belief is Carborundum Universal Ltd. 3.5
that consolidated/consolidating industry structure allows for better pricing Century Plyboards (India) Ltd. 3.2
power, higher visibility of profit pools and discipline amongst various industry
Ratnamani Metals & Tubes Ltd. 3.0
participants.
Blue Star Ltd. 2.9
Since Galaxy Surfactants Ltd. 2.6
YTD 1 Year 3 Years 5 Years Inception
Alembic Pharmaceuticals Ltd. 2.4
Kotak Small Cap Reg Gr 22.4 20.1 35.6 23.9 17.4
Garware Technical Fibres Ltd. 2.3
IISL Nifty Smallcap 250 TR INR 29.7 33.9 35.9 20.1 — Blue Dart Express Ltd. 2.1
India Fund Small-Cap 25.8 26.8 35.6 22.5 18.2 Persistent Systems Ltd. 2.1

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 19
 Equity - Contra & Value

Invesco India Contra Fund

Why this fund?
l Contrarian fund looking for deep value, value, turnaround and derated
FundSelect
picks. PRR 5
l Top down thematic overlay with bottom up stock selection.
Key Fund Characteristics
What is this fund all about? Portfolio Manager Taher Badshah, Dhimant Kothari

l
Fund uses following three levers to generate alpha over the benchmark: Inception Date 11th April, 2007
1) Stock Selection: (a) Contrarian bias, (b) Preference for companies in a Fund Size (INR Mio.) 114,537
turnaround phase and trading below fundamental value, (c) Growth
Benchmark S&P BSE 500 TR INR
companies available at attractive valuations and 2) Sector Allocation:
Active OW/ UW sector positions w.r.t benchmark. 3) Capitalization Bias: Fund ISIN INF205K01189
Across market-cap spectrum. Expense ratio 1.70%
l
Backed by a process-oriented AMC which classifies stocks basis growth 3Y Standard Deviation 13.53%
prospects relative to industry, unique company attribute and financial
3Y Sharpe Ratio 1.28
parameters to label as Growth, Value and Event based.
l Proprietary stock categorization framework enables them to filter the 3Y Beta 0.91

universe and identify the best investment opportunities. Exit Fee 1.00%

Portfolio Date: 30th September, 2023

What is the key risk?
Real Estate Energy
U li es 2% 2% Materials
The fund can invest across a broad market spectrum including companies Communica on 6% 3%
Services
with lower market consensus. Though the fund tries to avoid value traps, it 1% Industrials
may risk investing in stocks which would remain under-appreciated by the 14%
market for long periods. The fund is likely exposed to stock selection and Informa on
Technology
industry specific risks in addition to being exposed to volatility associated with 18%

relatively less liquid lower market capitalization companies.

Consumer
How has the fund performed? Discre onary
14%
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Consumer Staples
1. Utilities 1. Consumer Discretionary 3%

Sector 2. Communication Services 2. Consumer Staples Financials Healthcare

29% 8%
3. Materials 3. Information Technology
Portfolio Date: 30th September, 2023
1. NTPC Ltd. 1. United Breweries Ltd.
Stock 2. Bharti Airtel (Partly Paid) 2. Delhivery Ltd. Morningstar Equity Style BoxTM
3. Ambuja Cements Ltd. 3. Teamlease Services Ltd.
Market Cap %
Large

What the Manager Says:

Market Cap Giant 53.6
Invesco India Contra Fund is value-oriented strategy following contrarian
Market Cap Large 34.4
style, investing across sectors and market capitalization. It owns ~68% large
Mid

cap and 28% mid & small caps. The fund is over-weight ‘Consumer Market Cap Mid 10.9
Discretionary’ and ‘Industrials’ which are beneficiaries of relatively buoyant Market Cap Small 1.1
Small

Indian economy and play on rising consumption and capex respectively.

Over-weight ‘Healthcare’ and ‘Utilities’ provides stability. Their contrarian Market Cap Micro 0.0

over-weight is ‘Information Technology’ in alignment of the mandate. While Value Blend Growth

the near term slow-down in the sector is well acknowledged, factors like (i) Portfolio Date: 30th September, 2023
healthy cash-flows (ii) strong balance-sheets (iii) healthy RoCE (iv) return of Portfolio
large portion of cash flows to shareholders (v) no terminal value risk provides Top 10 Holdings
Weighting %
a good contrarian opportunity. Commodity sectors like ‘Materials’ and
Infosys Ltd. 7.8
‘Energy’ remain under-weights. However, post the announcement of stimulus
by China and gradual recovery of commodity prices translated into them HDFC Bank Ltd. 6.2
increasing some weightage in ‘commodity’ stocks. The FM is under-weight ICICI Bank Ltd. 5.6
‘Financials’ as well, but it remains key investee sector with ~28% exposure. NTPC Ltd. 4.6

Larson & Toubro Ltd. 3.4

Since State Bank of India 2.6
YTD 1 Year 3 Years 5 Years Inception
Axis Bank Ltd. 2.4
Invesco India Contra Gr 15.0 18.6 23.5 14.8 14.3
Sun Pharmaceuticals Industries Ltd. 2.0
S&P BSE 500 TR INR 12.6 17.5 24.3 15.1 12.0 Bharat Electronics Ltd. 2.0
India Fund Contra 18.3 24.4 29.7 17.5 13.5 Reliance Industries Ltd. 2.0

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 20
 Equity - Contra & Value

ICICI Prudential Value Discovery Fund

Why this fund?
l Fund philosophy centered around economic recovery, with an aim to
FundSelect
perform well during periods of economic turnaround. PRR 4
l Takes active position in fundamentally strong companies that are
currently trading below their intrinsic value. Key Fund Characteristics
l Managed by an industry veteran, CIO of ICICI Prudential AMC. Portfolio Manager S. Naren

Inception Date 16th August, 2004

What is this fund all about?
Fund Size (INR Mio.) 339,386
l Fund seeks to identify fundamentally strong, low leverage companies with Benchmark IISL Nifty 500 TR INR
strong balance sheets that are currently out of favor and trading below
Fund ISIN INF109K01AF8
their intrinsic value. Value assessed in terms of business fundamentals
over traditional price or valuation ratios. Expense ratio 1.64%
l
The scheme follows a bottom-up stock selection investment approach 3Y Standard Deviation 11.82%
along with a blend of other styles such as Value and Dividend yield. 3Y Sharpe Ratio 1.97
l
Dynamic risk management: 1) Avoid value-traps at the portfolio
3Y Beta 0.75
construction level. 2) Limit overall scheme exposure to promoter groups to
less than 20% 3) Substitute overvalued sectors/companies with Exit Fee 1.00%
reasonably valued ones 4) Can take counter-cyclical positions when Portfolio Date: 30th September, 2023
macroeconomic situation turns less conducive for economic growth. U li es Energy
6% 14%
What is the key risk? Communica on
Services Materials
4%
The scheme invests across the market capitalization spectrum, 12%

predominantly in stocks which a value orientation or currently trading out of Industrials

3%
market favor. In addition to being exposed to value-traps, the performance of Informa on
Technology
the scheme may be impacted during periods of weak broader market 8%
Consumer
performance and/or if the value theme does not perform in line with Discre onary
9%
expectation.
Consumer Staples
3%
How has the fund performed? Financials
28%
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Healthcare
13%
1. Auto & Auto Anc. 1. Consumer Non Durables Portfolio Date: 30th September, 2023
Sector 2. Telecom 2. Banks & Finances
3. Retailing 3. Software Morningstar Equity Style BoxTM
1. NTPC Ltd. 1. HDFC Ltd. Market Cap %
Large

Stock 2. TVS Motor Co. Ltd. 2. Reliance Industries Ltd.

3. HDFC Bank Ltd. 3. Avenue Supermarts Ltd. Market Cap Giant 69.0

Market Cap Large 19.4

What the Manager Says:
Mid

Market Cap Mid 10.6

Equity Market valuations have moderated post recent correction and there
are still pocket of opportunities available with a strong re-rating potential. The Market Cap Small 0.9
Small

scheme invests in them leading to better alpha generation and hence the Market Cap Micro 0.0
fund is expected to do well. Value Blend Growth

Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

HDFC Bank Ltd. 7.4

Bharti Airtel Ltd. 7.0

Sun Pharmaceuticals Industries Ltd. 6.6

ICICI Bank Ltd. 6.4

Oil & Natural Gas Corp. Ltd. 5.6

Since Infosys Ltd. 5.4
YTD 1 Year 3 Years 5 Years Inception
NTPC Ltd. 5.1
ICICI Pru Value Discovery Gr 18.3 27.8 31.2 17.5 20.0
Reliance Industries Ltd. 3.4
IISL Nifty 500 TR INR 12.8 17.6 24.1 14.9 15.8 Axis Bank Ltd. 2.5
India Fund Value 17.1 24.6 27.0 14.6 17.5 Tata Motors Ltd. Class A 2.2

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 21
 Equity - ESG

SBI Magnum Equity ESG Fund

Why this fund?
l Investment approach based on Environmental, Social & Governance
FundSelect
(ESG) considerations in combination with financial parameters. PRR 4
l Focus on “Triple Bottom” (People, Planet & Profits), balancing positive
social impact in addition to investment performance. Key Fund Characteristics
l Backed by one of the largest equity fund management team. Portfolio Manager Rohit Shimpi

Inception Date 27th November, 2006

What is this fund all about?
Fund Size (INR Mio.) 50,237
l ESG analysis process: 1) Evaluate each investee companies on ESG Benchmark IISL Nifty 100 ESG Index TR INR
factors 2) Voting Practices - communicating with investee companies
Fund ISIN INF200K01214
before and after the AGM 3) Integrate ESG philosophy into entire
investment decision making process Expense ratio 1.98%
l
The fund avoids companies which have a negative spill over impact on 3Y Standard Deviation 13.69%
environment and companies with excessive leverage. 3Y Sharpe Ratio 1.10
l
FM Team engage with companies and all stakeholders, to influence their
3Y Beta 0.89
decision in favour of sustainable practices and policies.
Exit Fee 1.00%
l
They endeavor to invest in companies with Positive ESG standards for it
to lead to long term value creation for investors. Portfolio Date: 30th September, 2023

Real Estate
What is the key risk? Communica on
Services 1% Materials
6%
1%

The scheme invests across the market capitalization spectrum. In addition to Informa on
Technology Industrials
being exposed to equity market risks, the performance of the scheme may be 20% 15%
impacted in case value realization of ESG compliant companies are delayed
or the theme does not perform in line with expectations.

How has the fund performed? Consumer

Discre onary
20%
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Financials
29%
1. Financial Services 1. Information Technology
Sector 2. Power 2. Textiles Consumer Staples
3. Construction 3. Consumer Services Healthcare 5%
3%
1. Larsen & Toubro Ltd. 1. Page Industries Ltd. Portfolio Date: 30th September, 2023
Stock 2. TVS Motor Co. Ltd. 2. FSN E-Commerce Vent. Ltd.
3. ABB India Ltd. 3. Tech Mahindra Ltd. Morningstar Equity Style BoxTM

Market Cap %
Large

What the Manager Says:

Market Cap Giant 61.2
As of September 30, 2023, the portfolio is well diversified and spread about
25 stocks, wherein top 10 holdings account for 51% of the portfolio. The fund Market Cap Large 33.5
Mid

has a largecap bias and is actively managed. Large cap constitutes 75% of Market Cap Mid 5.3
the portfolio, mid cap 17%, and small cap is 3%.
Market Cap Small 0.0
Small

The fund is overweight on Capital Goods, Construction and Automobile and

Auto Components, and underweight on Information Technology, Fast Moving Market Cap Micro 0.0
Consumer Goods and Telecommunication. Value Blend Growth

The FM is positive on Industrials due to expectations of bottoming out of Portfolio Date: 30th September, 2023
corporate capex, government’s thrust on manufacturing and infrastructure. Portfolio
They believe the sector is gradually emerging out of a multi-year slowdown Top 10 Holdings
Weighting %
that began in 2013, and new opportunities in manufacturing and new energy HDFC Bank Ltd. 7.5
are expected to also drive growth over next few years. The fund is UW on IT,
FMCG and Consumer Goods mainly due to availability of better investment Infosys Ltd. 7.4

opportunities in other sectors, in their view. TCS Ltd. 6.8

ICICI Bank Ltd. 5.8

Axis Bank Ltd. 4.9

Since Larsen & Toubro Ltd. 4.9
YTD 1 Year 3 Years 5 Years Inception
UltraTech Cement Ltd. 3.8
SBI Magnum Equity ESG Reg. Gr. 12.1 15.0 20.7 13.6 12.0
Mahindra & Mahindra Ltd. 3.5
Nifty 100 ESG Index TRI 9.2 11.4 20.2 14.0 — State Bank of India 3.3
India Fund Equity - ESG 11.7 15.4 — — — TVS Motor Co. Ltd. 3.3

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 22
 Equity - International

Baroda BNP Paribas Funds Aqua FoF

Why this fund?
l Capture long-term investment returns via a diversified water strategy.
FundSelect
l Managed by Impax, specialist in environmental markets investing. PRR 4
l Established track record, outperformed global equities since inception
in 2008. Key Fund Characteristics
Portfolio Manager Sandeep Jain, Miten Vora
What is this fund all about? Inception Date 7th May, 2021
l
Long term drivers continue to drive superior growth: Global trends in Fund Size (INR Mio.) 717
water regulations, innovation & technology, water infrastructure, weather Benchmark MSCI World NR LCL
patterns provide a diverse set of opportunities through the full economic
Fund ISIN INF251K01QQ1
cycle encompassing both defensive and cyclical businesses.
l Gain access to water-related investment opportunities: Invest in high Expense ratio 1.60%
conviction stocks of companies whose activities are related to water, 3Y Standard Deviation (MASTER FUND) 20.58
categorised under 1) water infrastructure, 2) water treatment & efficiency 3Y Sharpe Ratio (MASTER FUND) 0.29
and 3) utilities.
3Y Beta (MASTER FUND) 0.99
l Managed by Impax, a leader in thematic equity investing: Dedicated
to environmental investing since 1998, Impax currently manages EUR Exit Fee 1.00%
20bn in AUM across multiple strategies. They are benchmarked against Portfolio Date: 30th September, 2023
established frameworks that are aligned to Standard Chartered's Materials
positions and evaluated across dimensions including ESG strategy, U li es
13%
integration, expertise and measurement. 19%

What is the key risk? Informa on

Technology
4%
This fund is primarily exposed to stock selection specific risks, which includes
implicit industry and market selection risks arising out of the aggregate views Healthcare
5%
from stock selection. The fund invests in global equities, hence is also Consumer
Discre onary
exposed to market specific (i.e. political, growth) and currency risks. The 2%
India Feeder’s performance may vary from the underlying fund’s
performance due to currency exchange rate movements.
Industrials
How has the fund performed? 57%
Portfolio Date: 30th September, 2023
YTD Contrib. on 30th Sept. 2023 Top Contributors Top Detractors
Morningstar Equity Style BoxTM
1. Water Treatment & Eff. 1. Water Treatment & Eff.
Sector 2. Water Infrastructure 2. Water Infrastructure Market Cap %
Large

3. — —
Market Cap Giant 0.0
1. Pentair 1. Idex
Stock 2. Ferguson 2. Trimble Market Cap Large 29.2
Mid

3. Masco 3. Georg Fischer

Market Cap Mid 56.0
What the Manager Says: Market Cap Small 12.4
Small

After a challenging 2022 the global equity market witnessed a strong start of Market Cap Micro 2.4
the year supported by falling inflation figures. Nevertheless, the strength of
Value Blend Growth
the economic activity data, suggesting that a recession may not be imminent,
coupled with renewed tensions between the US and China dashed cold water Portfolio Date: 30th September, 2023

on equity prices. The Silicon Valley Bank (SVB) fallout and the subsequent Top 10 Holdings
Portfolio
emergency takeover of Credit Suisse by UBS also affected investors’ risk Weighting %
appetite. At the portfolio level, earnings announcements have been above Veolia Environnement SA 4.6
the market’s expectations, with healthy top and bottom-line growth whilst
American Water Works Co. Inc. 4.4
demonstrating navigating higher input prices, supply complexities and
potentially slower growth. Moreover, consensus earnings growth Linde PLC 3.6
expectations for the next twelve months for the portfolio remain slightly above IDEX Corp. 3.2
that of the broader market.
A.O. Smith Corp. 3.2
Since Pentair PLC 3.0
YTD 1 Year 3 Years 5 Years Inception
Ferguson PLC 2.9
Baroda BNP Paribas Aqua FoF Reg. Gr. 3.6 20.7 — — 0.8
Severn Trent PLC 2.9
MSCI World NR LCL 12.1 20.4 9.5 8.0 2.0 United Utilities Group PLC Class A 2.7
India Fund Global - Other — — — — — Sartorius AG Participating Preferred 2.7

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 23
 Hybrid - Aggressive Hybrid

HDFC Hybrid Equity Fund

Why this fund?
l The fund has a market agnostic blended investment style with focus on
FundSelect
reasonable quality businesses. PRR 4
l To maintain a judicious mix of equity exposure: Large Cap (70-90%),
Mid Cap (5 -20%) and Small Cap (5 -20%). Key Fund Characteristics
l In FI, Active Duration and credit management based on fund manager’s Portfolio Manager Chirag Setalvad - Equity
Anupam Joshi - Debt
view on interest rate and credit outlook. Inception Date 11th September, 2000

What is this fund all about? Fund Size (INR Mio.) 210,459

Benchmark Nifty 50 Hybrid Composite

Debt 65:35 Index
l A Blend of top-down (macro analysis to identify sectors) and bottom-up
Fund ISIN INF179K01AS4
approach (micro analysis to pick stocks within these sectors) to stock
selection is followed. Bottom-up stock selection accounts 80% of the Expense ratio 1.70%
selection criteria. 3Y Standard Deviation 11.14%
l
The fund is benchmark aware and positions the sectoral calls by creating 3Y Sharpe Ratio 1.44
OW and UW positions compared to the BM.
3Y Beta 1.09
l The investments are driven by fundamental research with a medium to
long-term view. Further, with an objective to create wealth over time, they Exit Fee 1.00%
aim to minimize mistakes, particularly large ones and therefore Portfolio Date: 30th September, 2023
emphasize the price of purchase and avoid buying assets, overvalued Cash
from a long-term view and poor-quality businesses/ managements. 2%

What is the key risk?

Bond
Fund invests 65-75% in equity across the market capitalization spectrum and 31%
rest in fixed income securities across the credit-rating profile. In addition to
being exposed to liquidity risks associated with lower market capitalization
companies, the scheme also takes position in high-yielding (non-AAA rated)
and credit enhanced securities. The schemes performance can be further
impacted during periods of flight to safety (to large cap companies or higher- Stock
rated fixed income securities) 67%

How has the fund performed?

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Portfolio Date: 30th September, 2023

1. Industrials 1. Consumer Discretionary Morningstar Equity Style BoxTM

Sector 2. Healthcare 2. Materials
Market Cap %
Large

3. Financials 3. Energy
1. KEC International Ltd. 1. Tata Consultancy Ltd. Market Cap Giant 66.4
Stock 2. Zensar Technologies Ltd. 2. NTPC Ltd.
Market Cap Large 13.7
3. Aurobindo Pharma Ltd. 3. Tata Motors Ltd.
Mid

Market Cap Mid 18.3

What the Manager Says:
Market Cap Small 0.7
The fund, broadly targets returns greater than debt schemes with lower
Small

volatility than equity schemes. Within equities, the fund has the flexibility to Market Cap Micro 0.9
invest across market capitalization. While selecting stocks, the fund follows a Value Blend Growth
bottom-up stock picking, focus on reasonable quality businesses (typically Portfolio Date: 30th September, 2023
above average ROE/ROCE) and Prefers companies that are available at
Portfolio
acceptable valuations (usually at or below average PE/PB, EV/EBITDA Top 10 Holdings
Weighting %
(relative & absolute). As on September 30, 2023, the portfolio’s allocation is
Large Cap 74%, Mid Cap 10% and Small Cap 16%. Within debt, the fund HDFC Bank Ltd. 7.2

focusses on high quality (GSec/AAA) and actively manages duration based 7.1% Govt. Stock 2029 7.1
on fund manager’s interest rate outlook. As on September 30, 2023, the ICICI Bank Ltd. 6.6
portfolio’s modified duration is 3.92 years, Average maturity of the portfolio is
5.84 years and YTM is 7.63%. ITC Ltd. 4.8

Larsen & Toubro Ltd. 4.4

Since Reliance Industries Ltd. 4.1
YTD 1 Year 3 Years 5 Years Inception
Axis Bank Ltd. 3.6
HDFC Hybrid Fund Eq. Gr. 10.8 17.3 22.3 13.7 15.4
Infosys Ltd. 3.6
Nifty 50 Hybrid Composite Debt 65:35
Index — 13.1 16.0 12.3 — State Bank of India 3.6
India Fund Aggressive Allocation 11.0 14.6 18.5 12.0 13.2 NABARD 2.8

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 24
 Hybrid - Aggressive Hybrid

Mirae Asset Hybrid Equity Fund

Why this fund?
l The fund follows a disciplined asset-allocation strategy with equity
FundSelect
exposure in the range of 72% +/-5%, aiming to generate long term PRR 3
growth by increasing the equity exposure based on market cycles and
valuations. Key Fund Characteristics
l Debt portion is managed through high quality debt instrument Portfolio Manager Harshad Borawake - Equity
Mahendra K. Jajoo - Debt
predominantly in AAA rated and Sovereign Bonds. The fund broadly
Inception Date 29th July, 2015
follows a Buy-&-Hold strategy.
Fund Size (INR Mio.) 77,902
What is this fund all about? Benchmark CRISIL Hybrid 35+65 - Agg. TR INR

l
Large-cap biased equity portfolio which helps in performing across market Fund ISIN INF769K01DE6
cycles and are typically first to react to economic revival. Portfolio Expense ratio 1.50%
construction focus remains on generating alpha over medium to long-
3Y Standard Deviation 10.23%
term with high liquidity.
3Y Sharpe Ratio 1.20
l Disciplined Asset-allocation between equity and debt is a function of
macroeconomic outlook and multiple variables such as earnings growth 3Y Beta 1.03
outlook, price-multiples and interest rate outlook. Exit Fee 1.00%
l
No credit calls taken, and debt portion is managed with high quality debt Portfolio Date: 30th September, 2023
instrument predominantly in AAA rated and Sovereign Bonds through a
Cash
buy-&-hold approach. 5%

What is the key risk?

Bond
Fund can invest ~75% in equity across the market capitalization spectrum 22%

and ~25% in fixed income securities across the credit-rating profile. In

addition to being exposed to liquidity risks associated with lower market
capitalization companies, the scheme can also take position in high-yielding
(non-AAA rated) fixed income securities which can be subject to credit
downgrade and default risks.
Stock
73%
How has the fund performed?
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
Portfolio Date: 30th September, 2023
1. Healthcare 1. Textiles
Sector 2. Financial Services 2. Chemicals Morningstar Equity Style BoxTM
3. Automobile & Auto Comp. 3. Services
Market Cap %
Large

1. ITC Ltd. 1. Infosys Ltd.

Stock 2. ICICI Bank Ltd. 2. Laurus Labs Ltd. Market Cap Giant 62.9
3. AXIS Bank Ltd. 3. Tatva Chintan Pharma Chem.
Market Cap Large 21.3
Mid

What the Manager Says:

Market Cap Mid 11.9
The fund aims to maintain an equity allocation in the range of 72%, (+/-5%) to
Market Cap Small 2.8
take advantage of market. The portfolio aims to generate long term growth by
Small

increasing the equity exposure based on market cycles and valuations. Market Cap Micro 1.1
Portfolio is Large cap biased which helps in performing in all market cycles, Value Blend Growth
more liquid and are typically first to react to economic revival. Our investment Portfolio Date: 30th September, 2023
philosophy is to buy strong companies, run by competent management but
Portfolio
up to a reasonable price. The Fund is overweight on Sectors like Financials, Top 10 Holdings
Weighting %
Auto and Healthcare. While IT, FMCG and O&G remain underweight. Post
pandemic, many sectors are witnessing cyclical turnaround and our HDFC Bank Ltd. 6.5

positioning is to capture these trends. Financials is the largest position in our ICICI Bank Ltd. 5.3
portfolio given that NPA issues are behind us, capital adequacy for portfolio Reliance Industries Ltd. 4.0
companies is strong and valuations are still reasonable. The recent fund
performance is driven by Auto, Financials and healthcare, while sectors like Infosys Ltd. 3.7

capital goods and IT have been drag on the performance. State Bank of India 3.5
Since Axis Bank Ltd. 3.2
YTD 1 Year 3 Years 5 Years Inception
7.26% Govt. Stock 2033 3.1
Mirae Asset Hybrid Equity Reg Gr 10.6 14.6 17.8 12.7 11.8
Larsen & Toubro Ltd. 2.3
Crisil Hybrid 35+65 - Agg TR INR 9.1 14.3 16.8 12.8 11.5 ITC Ltd. 2.1
India Fund Aggressive Allocation 10.9 14.4 18.4 11.8 10.1 Tata Consultancy Services Ltd. 1.9

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 25
 Hybrid - Dynamic Asset Allocation

Baroda BNP Paribas Balanced Advantage Fund

Why this fund?
l The fund has a blended investment style using Bottom-up stock picking
FundSelect
with Focus on reasonable quality businesses and prefers companies PRR 3
that are available at acceptable valuations.
l To maintain a judicious mix of equity exposure: Large Cap (70% -90%), Key Fund Characteristics
Mid Cap (5% -20%) and Small Cap (5% -20%). Portfolio Manager Sanjay Chawla, Pratish Krishnan,
Prashant Pimple
l In FI, it has 87% allocation to AAA/ Sov and rest in AA with no exposure Inception Date 14th November 2018
to A category currently.
Fund Size (INR Mio.) 33,106
What is this fund all about? Benchmark Nifty 50 Hybrid Composite
Debt 50:50 Index
Fund ISIN INF955L01HC4
l
In Equity, for sectoral allocation, the PM works on a Top-down approach,
using the EIC model to ascertain from the Economic indicators and the Expense ratio 1.91%
macro views, which determines the appropriate sectoral weights while 3Y Standard Deviation 8.86%
ensuring BM consciousness. For security selection it is GARP based
3Y Sharpe Ratio 1.19
bottom-up stock picking using the BMV model.
l In Debt, the PM uses Duration management and Credit Allocation to 3Y Beta —

determine the appropriate security mix. Exit Fee 1.00%

l The allocation between the two is created using a 4-factor asset allocation Portfolio Date: 30th September, 2023
model which tracks factors of PE, PB, Earnings Yield Gap and Dividend Cash
yield in a weighted model to define the right mix (this number is calculated 5%
monthly and deviation of only +/-2% is allowed). Since the fund cannot go
below 65% gross equity it uses arbitrage to lower the net equity when the
model throws a number lower than 65% for equity.
Bond
What is the key risk? 29%

The fund is running higher MC/SC compared to peers and that has helped the
fund performance, basis which the volatility has been higher than peer
Stock
median. Fund is running a higher PE compared to the category. In debt the 66%
fund is aggressive on the credit calls and takes 1/3 AA exposure while
duration is on the shorter end of 1-3 years, giving it the highest YTM in the
category.
Portfolio Date: 30th September, 2023
How has the fund performed?
Morningstar Equity Style BoxTM
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
Market Cap %
Large

1. Capital Goods 1. Metals & Mining

Sector 2. Financial Services 2. Realty Market Cap Giant 56.2
3. Construction 3. Media, Entertn. & Publication
Market Cap Large 30.2
Mid

1. CIE Automotive India Ltd. 1. Bharti Airtel Ltd.

Stock 2. Craftsman Automation Ltd. 2. Bharat Sanchar Nigam Ltd. Market Cap Mid 13.6
3. Mahindra & Mahindra Ltd. 3. Container Corp. of India Ltd. Market Cap Small 0.0
Small

What the Manager Says: Market Cap Micro 0.0

The FM kept the Net Equity exposure as of Sept 23 at 66%. Mid and small cap Value Blend Growth
exposure stands at 33%, Large Cap exposure stands at 67%. Credit growth Portfolio Date: 30th September, 2023
remains resilient while rates are marginally shifting upwards on tighter
Portfolio
liquidity conditions. Compared to the last month, the FM has increased Top 10 Holdings
Weighting %
exposure to Information Technology, Consumer Discretionary, and Materials.
HDFC Bank Ltd. 8.0
Exposure has been reduced in staples, energy and financials. They are
overweight on industrials, healthcare, consumer discretionary, Healthcare ICICI Bank Ltd. 3.9
and real estate, in the fund while being Underweight on Materials, energy and ITC Ltd. Shs Dematerialised 3.8
Staples. We are Underweight on financials with preference for banks over
Larsen & Toubro Ltd. 3.4
non-banking finance companies.
Reliance Industries Ltd. 3.1
Since IndusInd Bank Ltd. 2.4
YTD 1 Year 3 Years 5 Years Inception
TCS Ltd. Shs Dematerialised 2.3
Baroda BNP P Bal Adv Req Gr 10.1 16.1 15.8 — 14.1
Titan Co. Ltd. 2.3
India Fund Dynamic Asset Allocation 9.0 13.2 13.6 9.0 10.3 Bharat Electronics Ltd. 2.2
Nifty 50 Hybrid Composite Debt 50:50
Index — 11.9 13.5 11.5 — Piramal Capital & Housing Finance Ltd. 2.2

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 26
 Hybrid - Dynamic Asset Allocation

Edelweiss Balanced Advantage Fund

Why this fund?
l A dynamic asset allocation fund which aims to generate absolute
FundSelect
returns with low volatility over a longer tenure using a pro-cyclical PRR 3
approach.
l Asset-allocation based on proprietary Edelweiss Equity Health Index. Key Fund Characteristics
l Growth oriented Bottom-up stock selection. Portfolio Manager Bhavesh Jain - Equity
Bharat Lahoti - Debt
Inception Date 20th August, 2009
What is this fund all about?
Fund Size (INR Mio.) 94,750
l
Fund uses a mix of core factors indicating short-term and medium-term Benchmark Nifty 50 Hybrid Composite
Debt 50:50 Index
market strengths and long-term volatility trends using various moving
Fund ISIN INF754K01285
averages. It couples these signals with macro/fundamental factors and
valuations to arrive at the net equity exposure the fund should take on the Expense ratio 1.72%
equity front. The net equity exposure ranges anywhere between 30% to 3Y Standard Deviation 8.11%
80% based on the outcome of this model.
3Y Sharpe Ratio 1.19
l
4 pillar investment approach 1) Universe Selection through business
quality & management 2) Stock Selection – focused on consistency, 3Y Beta —

growth at reasonable price, high terminal growth 3) Portfolio Construction Exit Fee 1.00%
– market-cap exposure internally evaluated via various quantitative Portfolio Date: 30th September, 2023
parameters 4) Risk Management – maintain a highly diversified portfolio
Cash
with a bias towards large cap stocks. On the debt side, the fund mainly 14%
invests in AAA -rated papers.

What is the key risk?

The scheme largely utilizes a pro-cyclical approach (with an overlay for Bond
macro / fundamental factors). This approach works best in trending markets 14%
(both on the upside and downside) but may have mixed performance during
range bound markets.
Stock
How has the fund performed? 72%

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
1. Financial Services 1. Industrials
Portfolio Date: 30th September, 2023
Sector 2. Utilties 2. Consumer Discretionary
3. Consumer Staples 3. Materials Morningstar Equity Style BoxTM
1. NTPC Ltd. 1. ABB India Ltd.
Market Cap %
Large

Stock 2. Bharti Airtel Ltd. 2. Asian Paints Ltd.

3. Axis Bank Ltd. 3. Reliance Industries Ltd. Market Cap Giant 58.4

Market Cap Large 34.4

What the Manager Says:
Mid

U.S. economy is heading for a moderate economic slowdown. Declining Market Cap Mid 6.4
inflation and peaking of interest rates resulted in a rally in global markets. Market Cap Small 0.6
Small

Crude and commodity prices have recovered from the bottom showing
Market Cap Micro 0.2
improving global demand. .Surging forex reserves, narrowing current
Value Blend Growth
account deficit, surplus liquidity, positive momentum in capex cycle, GST
collection growing in double digits and cooling off in inflation and commodity Portfolio Date: 30th September, 2023

prices pointing to a strong recovery. Primary markets regained their Portfolio

Top 10 Holdings
momentum and getting strong traction from investors. With economic activity Weighting %
gaining momentum which is evident from the pick up in the pace of high- HDFC Bank Ltd. 6.4
frequency indicators the FM believes that the recovery in the capital market
ICICI Bank Ltd. 5.1
will be swift as the geopolitical situation normalize. Therefore, a dynamic
asset allocation fund will likely deliver better risk-adjusted returns in such a Reliance Industries Ltd. 4.6
market scenario. Infosys Ltd. 2.7

7.38% Govt. Stock 2027 2.6

Since ITC Ltd. 2.4
YTD 1 Year 3 Years 5 Years Inception
Axis Bank Ltd. 2.1
Edelweiss Balanced Adv Gr 9.7 12.5 15.1 12.1 10.4
Bharti Airtel Ltd. 2.1
India Fund Dynamic Asset Allocation 10.6 13.6 13.7 9.9 10.7 State Bank of India 2.0
Nifty 50 Hybrid Composite Debt 50:50
Index — 11.9 13.5 11.5 — Rural Electrification Corp. Ltd. 1.8

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 27
 Hybrid - Dynamic Asset Allocation

ICICI Prudential Balanced Advantage Fund

Why this fund?
l Dynamic asset-allocation between debt and equity based on an in-
FundSelect
house model that utilizes metrics such as P/B, P/E and interest rate PRR 3
volatility etc.
l The fund uses derivatives strategy to Manage portfolio risk exposures. Key Fund Characteristics
l Managed by an industry veteran, CIO with over 29 years of Portfolio Manager S. Naren - Equity
Manish Banthia - Debt
experience. Inception Date 30th December, 2006

What is this fund all about? Fund Size (INR Mio.) 499,756

Benchmark CRISIL Hybrid 50+50 - Moderate

TR INR
l The portfolio construct of the scheme is dependent on various factors
Fund ISIN INF109K01BH2
such as market conditions, economic scenarios, global events, valuation
parameters such as price to book value, price to earnings, interest rate Expense ratio 1.52%
movement, etc. 3Y Standard Deviation 5.86%
l
The Scheme uses an in-house model, which aims to increase equity 3Y Sharpe Ratio 1.62
exposure when valuations are attractive and aims to reduce equity
exposure when valuations are expensive. 3Y Beta —

l The Scheme will use derivative instruments for the purpose of hedging, Exit Fee 1.00%
portfolio rebalancing or for any other stock and/or index strategies as Portfolio Date: 30th September, 2023
allowed under the SEBI Regulations.
Cash
What is the key risk? 27%

The scheme utilizes a an in-house model to balance equity and debt

allocations and also implements a derivatives overlay to manage risk
exposures. In addition to being to exposed equity market risks, the scheme
could also be subject to model risks and basis risks which can impact relative Stock
performance during adverse market conditions. 56%

How has the fund performed?

Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors Bond
17%
1. Auto & Auto Ancillaries 1. Consumer Non Durables
Sector 2. Telecom 2. Banks & Finance
Portfolio Date: 30th September, 2023
3. Retailing 3. Software
1. NTPC Ltd. 1. HDFC Ltd. Morningstar Equity Style BoxTM
Stock 2. TVS Motor Co. Ltd. 2. Reliance Industries Ltd. Market Cap %
Large

3. HDFC Bank Ltd. 3. Avenue Supermarts Ltd.

Market Cap Giant 67.3
What the Manager Says: Market Cap Large 28.6
Mid

High inflation, interest rates and growth slowdown in key advanced

Market Cap Mid 3.7
economies may continue to contribute to market volatility in near terms. High
valuations in Indian equity markets may be a factor why we believe equity to Market Cap Small 0.3
Small

give average returns. Market Cap Micro 0.0

However, Indian macros continue to remain resilient given healthy capex Value Blend Growth
spend, clean corporate and government balance sheets, strong demand and Portfolio Date: 30th September, 2023
structural reforms. Hence, long term view on markets is positive. IPRU
Balanced Advantage Fund has successful track record of 17 years with Portfolio
Top 10 Holdings
Weighting %
portfolio consisting of established companies and good fundamentals.
Hence, scheme may do well. HDFC Bank Ltd. 5.0

8.25% Govt. Stock 2033 5.0

ICICI Bank Ltd. 4.6

Infosys Ltd. 3.5

TVS Motor Co. Ltd. 3.5

Since Maruti Suzuki India Ltd. 3.1
YTD 1 Year 3 Years 5 Years Inception
7.93% Govt. Stock 2034 3.0
ICICI Pru Balanced Adv Gr 9.2 12.2 15.2 11.6 11.0
Reliance Industries Ltd. 2.7
CRISIL Hybrid 50+50 Moderate Index — 13.4 10.2 12.0 10.9 Bharti Airtel Ltd. 2.2
India Fund Dynamic Asset Allocation 10.6 13.6 13.7 9.9 10.7 State Bank of India 2.1

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 28
 Hybrid - Dynamic Asset Allocation

Kotak Balanced Advantage Fund

Why this fund?
l A dynamic asset allocation fund with an objective to generate stable
FundSelect
long-term returns. PRR 3
l The fund uses on an internal two-factor, counter-cyclical model to
adjust debt and equity exposures while reducing human bias. Key Fund Characteristics
l Equity exposure large-cap biased, debt allocation focused on high Portfolio Manager Harish Krishnan
Abhishek Bisen
quality. Inception Date 3rd August, 2018

What is this fund all about? Fund Size (INR Mio.) 149,530

Benchmark Nifty 50 Hybrid Composite

l
Two–factor model approach to optimize risk through counter-cyclical Debt 50:50 Index
approach using two parameters to 1) Valuation 2) Sentiment. Both factors Fund ISIN INF174KA1186
look at long range input parameters to keep noise factor limited. Expense ratio 1.66%
l Focus on trailing 12-month price-to-earnings ratio as a gauge of valuation 3Y Standard Deviation 5.60%
as it exhibits lower variation compared to price-to-book. The AMC also
3Y Sharpe Ratio 1.18
uses earnings yield (inverse of P/E) of top 100 stocks over time and adjust
the report P/E data for any anomaly that may rise subsequently. 3Y Beta —
l
Gauge changes in sentiment through 1) Long-term rolling returns 2) Exit Fee 1.00%
Short-term rolling returns of asset class 3) Breadth of market 4) Volatility of Portfolio Date: 30th September, 2023
market.
Cash
l
These are all long-range indicators (other than short-term rolling returns) 26%
and don’t change very often, but when they do change, convey some
useful information.
What is the key risk?
The scheme utilizes an in-house model to balance equity and debt
allocations. In addition to being to exposed equity market risks, the scheme Bond
18% Stock
could also be subject to model risks which can impact relative performance 56%
during adverse market conditions.
How has the fund performed?
Last 1 year ended 30th Sept., 2023 Top Contributors Top Detractors
1. Information Technology 1. Industrials Portfolio Date: 30th September, 2023
Sector 2. Materials 2. Consumer Discretionary
3. Financials 3. Consumer Staples Morningstar Equity Style BoxTM
1. Bank of Baroda 1. Adani Ports & Special Econ. Market Cap %
Large

Stock 2. Adani Enterprises Ltd. 2. Gland Pharma Ltd.

Market Cap Giant 56.2
3. Persistent Systems Ltd. 3. Larsen & Toubro Ltd.
Market Cap Large 34.9
Mid

What the Manager Says:

Market Cap Mid 8.2
Corporate earnings in FY24 are likely to be broad-based, driven by domestic
sectors such as banks, industrials and automobiles. Consensus EPS Market Cap Small 0.7
Small

estimates have been stable for FY24 and FY25 (mid-high teens). While Market Cap Micro 0.0
earnings have been holding up well, valuations have also moved up. Nifty is Value Blend Growth
now trading somewhat above long term average valuations. Similarly India
Portfolio Date: 30th September, 2023
continues to trade at a premium to emerging markets and the premium is now
slightly above long term averages. Midcap and small cap valuations are Top 10 Holdings
Portfolio
Weighting %
above their long term averages. On a relative basis to large caps, mid and
small cap valuations are at significantly higher levels as compared to long HDFC Bank Ltd. 7.6
term averages. Hence, with the sharp up-move in the market, one must be 8.51% Govt. Stock 2033 5.6
prepared for some volatility in the near term even as the long term argument
ICICI Bank Ltd. 3.4
for Indian equities and India’s growth story remains unchanged.
Adani Portas & SEZ Ltd. 3.2

Maruti Suzuki India Ltd. 2.9

Since 7.41% Govt. Stock 2036 2.5
YTD 1 Year 3 Years 5 Years Inception
Infosys Ltd. 2.4
Kotak Balanced Advantage Fund
Reg. Gr. 9.4 12.1 11.8 10.6 10.0
Reliance Industries Ltd. 2.3
India Fund Dynamic Asset Allocation 10.6 13.6 13.7 9.9 9.0 7.1% Govt. Stock 2029 2.0
Nifty 50 Hybrid Composite
Debt 50:50 Index — 11.9 13.5 11.5 10.7 7.38% Govt. Stock 2027 1.9

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 29
 Hybrid - Equity Savings

Kotak Equity Savings Fund

Why this fund?
l True-to-label equity savings fund that aims to deliver stable risk-
FundSelect
adjusted returns compared to peers. PRR 3
l Directional equity exposure limited to ~25%-30%, debt allocations
managed. Key Fund Characteristics
l Proven long-term performance track record of risk-adjusted returns. Portfolio Manager Abhishek Bisen, Devender Singhal,
Hiten Shah
Inception Date 13th October, 2014
What is this fund all about?
Fund Size (INR Mio.) 31,541.27
l Idea generation blends external research along with strong in-house Benchmark NIFTY Equity Savings TR INR
capabilities to arrive at decision on inducting new ideas. Top-down
Fund ISIN INF174K01C78
sectoral view is supplemented with bottom-up stock selection for final
portfolio construction. Expense ratio 1.90%
l
The portfolio construct of the scheme is to keep the directional equity 3Y Standard Deviation 3.92%
exposure to ~25%-30% (large-cap biased), balance is allocated to 3Y Sharpe Ratio 1.60
arbitrage opportunities (to qualify as equity-oriented fund). Debt allocation
is managed in the safest quadrant ~ no credit risk or duration-risk. 3Y Beta —

l Fund categorizes stocks from A- E (E is to be avoided) to reflect Exit Fee 1.00%

descending levels of exposure that can be taken on the stock as a % of Portfolio Date: 30th September, 2023
portfolio, and depends on its benchmark weight, market cap and liquidity.

What is the key risk? Cash

46%
The scheme invest across equity, debt and arbitrage. In addition to being
exposed to equity market risks, the scheme is also exposed to basis risks
arising due to its use of derivatives, credit risk from allocations into lower Stock
credit papers and interest rate risks. The scheme can underperform peers 48%
during extended bull-runs due to the relatively lower directional equity
exposure.

How has the fund performed?

Bond
The scheme has outperformed its peer group and benchmark over the 5 Yr 6%
period ending 30th September, 2023. This was largely attributable to the Portfolio Date: 30th September, 2023
lower overall directional equity exposure compared to peers and prudent
Morningstar Equity Style BoxTM
duration management. The scheme has outperformed its peers across all
time frames. Market Cap %
Large

Market Cap Giant 53.2

What the Manager Says:
Market Cap Large 35.6
The fund is large cap biased with more than 80pc of current exposure in large
Mid

caps . The fund positioning is predominantly growth oriented with some good Market Cap Mid 9.8
value names in the form of few PSUs. It’s a bottoms up portfolio approach but Market Cap Small 1.4
Small

we find a good blend of Banks( Private and PSU), Auto and consumptions
names in the portfolio Market Cap Micro 0.0
Value Blend Growth

Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

HDFC Bank Ltd. 7.5

Kotak Money Market Dir Gr 6.8

Kotak Liquid Dir Gr 4.2

ICICI Bank Ltd. 4.1

Sun Pharmaceuticals Ind. Ltd. 3.8

Since Adani Ports & SEZ Ltd. 3.7
YTD 1 Year 3 Years 5 Years Inception
Maruti Suzuki India Ltd. 3.3
Kotak Equity Savings Reg. Gr. 8.9 12.4 11.5 9.3 8.6
Power Finance Corp. Ltd. 3.2
India Fund Equity Savings 7.4 9.5 10.5 7.8 7.6 8.51% Govt. Stock 2033 2.6
Nifty Equity Savings TR — 10.4 11.0 9.2 8.7 Power Finance Corp. Ltd. 2.4

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 30
 Hybrid - Arbitrage

Kotak Equity Arbitrage Fund

Why this fund?
l The scheme aims to generate low volatility return using arbitrage and
FundSelect
other derivatives strategies in equity markets and investments in debt PRR 4
and money market instruments.
l Diversified long equity exposure (fully-hedged) to realize opportunities Key Fund Characteristics
across the market capitalization spectrum. Portfolio Manager Hiten Shah
l Debt allocation predominantly in securities with less than two-months Inception Date 29th September, 2005
maturity.
Fund Size (INR Mio.) 274,120
What is this fund all about? Benchmark NIFTY 50 Arbitrage PR INR

Fund ISIN INF174K01302

l
The scheme enters simultaneous transactions of a long position in cash
and exactly off-setting short position in futures. Towards the expiry or Expense ratio 0.60%
before the expiry of the derivatives contract, the positions are reversed or 3Y Standard Deviation 0.65%
rolled over (if spread is available for the next month).
3Y Sharpe Ratio 0.31
l All long equity exposures are completely hedged at trade initiation. The
scheme can participate across the market-cap spectrum, wherever good 3Y Beta —

spread is available. The AMC has pre-trade agreement with Exit Fee 0.30%
borers/dealers to ensure minimum execution price impact on the scheme. Portfolio Date: 30th September, 2023
Debt allocation is predominantly into high quality, managed through
MF/Gilts/T-bills/cash ~with less than two-months maturity.

What is the key risk?

Stock
The scheme invests in derivatives and long equities. In addition to being 42%
exposed to equity market risks, the scheme is also exposed to basis risks Cash
arising due to its use of derivatives. The scheme’s performance can be 56%
impacted during bouts of intermittent volatility and during periods of
excessive inflows into arbitrage segment.

How has the fund performed?

The scheme has outperformed its peer group and benchmark over the 5Yr Bond
2%
period ending 30th September, 2023. The scheme has outperformed its Portfolio Date: 30th September, 2023
peers across all time frames.
Morningstar Equity Style BoxTM
What the Manager Says: Market Cap %
Large

The arbitrage spread (annualized) on the arbitrage book is approximately

Market Cap Giant 42.8
8.7%. Including debt and money market instruments gross yield would be
~8.2%. The FM has maintained cash future Arbitrage exposure at ~75%. The Market Cap Large 49.2
Mid

rest ~25% of corpus is invested in debt and money market instruments. Market Cap Mid 8.0
Average arbitrage spreads on the expiry day were trading in the range of 64-
Market Cap Small 0.1
Small

68 bps compared to 68-72 bps during the expiry week. Arbitrage category
AUM currently is at ~1,21,235 Cr. Deployment in cash future arbitrage, Market Cap Micro 0.0
assuming 72% of the category allocation is into Cash future arbitrage stands Value Blend Growth
at ~87,290 cr. Arbitrage as percentage of total open interest now stands at Portfolio Date: 30th September, 2023
~34%.
Portfolio
Top 10 Holdings
Weighting %

Kotak Money Market Dir Gr 10.9

HDFC Bank Ltd. 6.7

Reliance Industries Ltd. 6.0

Kotak Savings Fund Dir Gr 5.2

ICICI Bank Ltd. 3.1

Since Kotak Liquid Dir Gr 2.6
YTD 1 Year 3 Years 5 Years Inception
IndusInd Bank Ltd. 2.1
Kotak Equity Arbitrage Reg Gr 5.6 7.2 5.0 5.2 6.9
Adani Ports & SEZ Ltd. 2.0
India Fund Arbitrage Fund 5.0 6.4 4.5 4.6 6.3 Grasim Industries Ltd. 1.6
Nifty 50 Arbitrage Index 6.1 7.5 5.0 4.9 — NTPC Ltd. 1.5

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 31
 Hybrid - Arbitrage

Edelweiss Arbitrage Fund

Why this fund?
l The scheme aims to generate low volatility return using arbitrage and
FundSelect
other derivatives strategies in equity markets and investments in debt PRR 3
and money market instruments.
l Diversified long equity exposure (fully-hedged) to realize opportunities Key Fund Characteristics
across the market capitalization spectrum. Portfolio Manager Dhawal Dalal & Bhavesh Jain
l Debt allocation predominantly in securities with less than 1-year Inception Date 27th June, 2014
maturity.
Fund Size (INR Mio.) 69,842
What is this fund all about? Benchmark NIFTY 50 Arbitrage PR INR

Fund ISIN INF754K01EF3

l
The scheme enters simultaneous transactions of a long position in cash
and exactly off-setting short position in futures. Towards the expiry or Expense ratio 1.10%
before the expiry of the derivatives contract, the positions are reversed or 3Y Standard Deviation 0.63%
rolled over (if spread is available for next month).
3Y Sharpe Ratio -0.01
l All long equity exposures are completely hedged at trade initiation. The
scheme can participate across the market-cap spectrum, wherever good 3Y Beta —

spread is available. Debt allocation is strictly in AAA papers/FDs, with avg. Exit Fee 0.10%
maturity less than 1-year (no investment in Edelweiss Group Cos). Portfolio Date: 30th September, 2023

What is the key risk? Stock

43%
The scheme invests in derivatives and long equities. In addition to being
exposed to equity market risks, the scheme is also exposed to basis risks
arising due to its use of derivatives. The scheme’s performance can be Cash
53%
impacted during bouts of intermittent volatility and during periods of
excessive inflows into arbitrage segment.

How has the fund performed?

The scheme has outperformed its peer group and benchmark over the 5Yr
period ending 30th September, 2023. The scheme has outperformed its
Bond
peers across all time frames. 4%
Portfolio Date: 30th September, 2023
What the Manager Says:
The benchmark Nifty Index declined by ~1.4% in the September series. Morningstar Equity Style BoxTM

Single Stock future (SSF) rollovers for the month stands at 93%, at par with Market Cap %
Large

average rollovers of last three series at 93%. Given the proximity to historic Market Cap Giant 39.5
highs, start of result season combined with VIX moving up, we expect
Market Cap Large 46.1
volatility to be high resulting in higher churn opportunities. Looking at
Mid

substantial client long positions within Single Stock Futures (SSF), they Market Cap Mid 14.4
expect Roll levels to sustain going ahead. Average roll levels (spreads) Market Cap Small 0.0
Small

across stock futures were approximately between 70 to 72 bps (cost to long

rollers).For the October series, SSF open interest has increased to INR Market Cap Micro 0.0

2,84,377 Crores (~6% higher compared to the September series). Value Blend Growth

Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

HDFC Bank Ltd. 5.6

Reliance Industries Ltd. 5.0

6.69% Govt. Stock 2024 2.1

ICICI Bank Ltd. 1.9

Tata Motors Ltd. 1.8

Since Bank of Baroda 1.8
YTD 1 Year 3 Years 5 Years Inception
NMDC Ltd. 1.7
Edelweiss Arbitrage Fund Reg Gr 5.5. 7.0 4.8 5.2 6.0
364 DTB 29022024 1.7
India Fund Arbitrage Fund 5.0 6.4 4.5 4.6 5.5 Adani Enterprises Ltd. 1.7
Nifty 50 Arbitrage Index 6.1 7.5 5.0 4.9 5.5 The Federal Bank Ltd. 1.7

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 32
 Hybrid - Arbitrage

Bandhan Arbitrage Fund

Why this fund?
l The scheme aims to generate low volatility return using arbitrage and
FundSelect
other derivatives strategies in equity markets and investments in debt PRR 4
and money market instruments.
l Large-cap biased equity exposure (fully-hedged) to improve risk- Key Fund Characteristics
reward. Portfolio Manager Nemish Sheth & Harshal Joshi;
l Debt allocation is predominantly in securities with less than one year Inception Date 21st December 2006
maturity.
Fund Size (INR Mio.) 41,034
What is this fund all about? Benchmark NIFTY 50 Arbitrage PR INR

Fund ISIN INF194K01649

l
The scheme maintains equity exposure at a min ~66%-67% (to qualify as
equity-oriented fund). All long exposures are completely hedged. The Expense ratio 1.10%
debt allocation is predominantly into low duration securities ~les than 1 3Y Standard Deviation 0.64%
year maturity.
3Y Sharpe Ratio —
l All long equity exposures are completely hedged. The scheme can
participate across the market-cap spectrum, but generally maintains 3Y Beta —

large-cap exposure around ~75-80% to ensure good risk-reward. The Exit Fee 0.30%
objective is to roll-over trades as much as possible to minimize the cost of Portfolio Date: 30th September, 2023
exiting and re-entering new contracts. Overall churn is kept low and
Cash
unless warranted. 5%

What is the key risk?

The scheme invests in derivatives and long equities. In addition to being Bond
29%
exposed to equity market risks, the scheme is also exposed to basis risks
arising due to its use of derivatives. The scheme’s performance can be
impacted during bouts of intermittent volatility and during periods of
excessive inflows into arbitrage segment.
Stock
66%
How has the fund performed?
The scheme has outperformed its peer group and benchmark over the 5Yr
period ending 30th September, 2023. The scheme has outperformed its Portfolio Date: 30th September, 2023
peers across all time frames.
Morningstar Equity Style BoxTM
What the Manager Says: Market Cap %
Large

At the end of Oct’23, the average yield of the arbitrage portion of the Bandhan
Market Cap Giant 30.5
Arbitrage Fund was ~ 7.3%, which is approx. 70 bps. In the beginning, the
October series appeared to be one of the calmest, with domestic markets Market Cap Large 56.2
Mid

trading within a stable range. However, in mid-October, a sudden surge in Market Cap Mid 13.0
volatility due to geopolitical tensions, rising US bond yields, and the looming
Market Cap Small 0.2
Small

earnings season affected heavyweight stocks and the market’s favourite

small and mid-cap pack. This series will undoubtedly be remembered as one Market Cap Micro 0.0
filled with suspense, slight ups, rapid descends, and a testament to the Value Blend Growth
dynamic nature of equity markets. At the start of November series, Open Portfolio Date: 30th September, 2023
Interest has been light on Oil & Gas, Financial Service, FMCG and Energy.
Portfolio
The yield for the debt portion of the scheme is ~7.25%. The weighted average Top 10 Holdings
Weighting %
yield (blended yield) is ~7.28%. In terms of events in November, markets will HDFC Bank Ltd. 4.1
look for cues from the state elections lined up next month in five Indian states.
Reliance Industries Ltd. 3.0

Sun Pharmaceuticals Industries Ltd. 2.7

Zee Entertainment Enterprises 2.2

Grasim Industries Ltd. 2.0

Since ICICI Bank Ltd. 2.0
YTD 1 Year 3 Years 5 Years Inception
Kotak Mahindra Bank Ltd. 2.0
Bandhan Arbitrage Fund Reg Gr 5.4 6.9 4.7 4.9 —
Coal India 1.7
India Fund Arbitrage Fund 5.0 6.4 4.5 4.6 5.5 NMDC 1.4
Nifty 50 Arbitrage Index 6.1 7.5 5.0 4.9 5.5 Aurobindo Pharma 1.4

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 33
 Debt - Short Term Bond

ICICI Prudential Short Term Fund

Why this fund?
l The fund is focused on accrual income and capital appreciation while
FundSelect
keeping the duration of the portfolio in 1-to-3-year range and tactically PRR 3
taking G-Sec calls.
l The Fund manager has been running this strategy since 2009 and is Key Fund Characteristics
one of the top performing funds in the category. Portfolio Manager Manish Banthia, Nikhil Kabra
l He is running a Benchmark agnostic strategy to play a high conviction Inception Date 25th October, 2001
strategy on the macro play and view on the curve as the primary driver.
Fund Size (INR Mio.) 186,890
What is this fund all about? Benchmark NIFTY Short Duration Debt Index

Fund ISIN INF109K01654

l
It proposes to predominantly invest in debt instruments of good credit
quality. The Fund also aims to capture credit spread opportunities to Expense ratio 1.07%
generate returns. Modified Duration (Yrs) 2.31
l
It seeks to invest in corporate securities that are at reasonable spreads Average Maturity (Yrs) 5.35
over G-Sec and offer reasonable yield at commensurate risks with an aim
to generate accrual returns. Yield to Maturity 7.97%

l The Fund shall have tactical, calibrated, and opportunistic approach to Exit Fee 0.00%
government securities with varying maturities based on the underlying Portfolio Date: 30th September, 2023
interest rate view. AA
l
The Fund will actively manage duration with an aim to generate potential 14%
AAA
capital appreciation. 86%

What is the key risk?

Although the fund maintains a very clean portfolio, it is still subjected to credit
risk which may arise from any downgrade / default by the issuer of the bond.
Fund is also subjected to duration risk which is dependent on change in
interest rates on account of RBI monetary policy, demand v/s supply factors
etc.

How has the fund performed?

The Fund posted annualized returns 7.4% over 5 years ending 30th Portfolio Date: 30th September, 2023
September 2023, out-performing the benchmark return of 7.2% and category Morningstar Fixed Income Style BoxTM
average of return of 5.3%. Credibly, the fund has outperformed it’s peers by a
Fixed-Income Stats %
High

substantial margin across periods.

Average Eff Duration —
Credit Quality

What the Manager Says:

Med

The scheme invests in a duration range that is currently attractive, due to Average Eff Maturity 5.4
compressed term premium. The short term duration range is also good Average Coupon 7.0
otherwise due to its relatively low mark-to-market volatility. The scheme also
Low

has the advantage of investing across credit ratings and G-Secs. Both these Average Price —
factors are highly advantageous to the scheme in the current fixed income Ltd Mod Ext
scenario. Interest-Rate Sensitivity
Portfolio Date: 30th September, 2023
Future Outlook for the fund- Short duration papers have seen attractive yields
due to hike in repo rates and tight liquidity conditions. Coupled with higher Top 10 Holdings
Portfolio
Weighting %
yields offered on Corporate bonds, this bodes well for the future outlook of the
scheme 7.38% Govt. Stock 2027 12.0

8.25% Govt. Stock 2033 9.9

7.06% Govt. Stock 2028 7.2

7.93% Govt. Stock 2034 4.3

7.87% Govt. Stock 2028 2.7

Since SIDBI 2.1
YTD 1 Year 3 Years 5 Years Inception
Pipeline Infrastructure Ltd. 2.0
ICICI Pru Short Term Gr. 5.6 7.3 5.6 7.4 7.9
NABARD 1.7
NIFTY Short Duration Debt Index — 7.6 5.8 7.2 — SIDBI 1.6
India Fund Short Duration 4.4 6.1 5.0 5.3 6.3 LIC Housing Finance Ltd. 1.6

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 34
 Debt - Short Term Bond

Bandhan Bond Short Term Fund

Why this fund?
l Low credit risk with entire portfolio being in AAA/Sovereign which could
FundSelect
bring stability to a portfolio. PRR 3
l Robust credit selection process comprising of financial, operating &
management analysis. Key Fund Characteristics
l Consistency of processes and fund management (Industry leaders in Portfolio Manager Suyash Choudhary
Risk Management Framework adopted). Inception Date 14th December, 2000

What is this fund all about? Fund Size (INR Mio.) 86,876

Benchmark NIFTY Short Duration Debt Index

l The fund's philosophy is to generate returns by investing in high quality
Fund ISIN INF194K01HF5
papers (AAA or equivalent). Hence, the investible universe for the fund is
all front-end AAA corporate bonds. The fund manager gives credit quality Expense ratio 0.77%
utmost importance while preparing the portfolio. Modified Duration (Yrs) 2.43
l
Endeavors to keep its portfolio liquid at any point of time. Hence the fund Average Maturity (Yrs) 2.83
eschews products like structures which have no liquidity in secondary
market. The fund also has a good history investing into NHAI, REC, etc. Yield to Maturity 7.36%

which are highly liquid in secondary market. Exit Fee 0.00%

l They have an investment risk committee which convenes every month in Portfolio Date: 30th September, 2023
order to discuss & mitigate key risks. The fund also has internal policies
covering liquidity, client profile, concentration of investors, concentration
of papers, etc.

What is the key risk?

Although the fund maintains a very clean portfolio, it is still subjected to credit
risk which may arise from any downgrade / default by the issuer of the bond.
Fund is also subjected to duration risk which is dependent on change in
interest rates on account of RBI monetary policy, demand v/s supply factors
etc.
AAA
How has the fund performed? 100%

The Fund posted annualized returns of 6.7% over 5 years ending 30th Portfolio Date: 30th September, 2023
September 2023, out-performing the category average of 5.3%. Morningstar Fixed Income Style BoxTM

What the Manager Says: Fixed-Income Stats %

High

India seems relatively well placed from a macroeconomic standpoint. Our Average Eff Duration —
Credit Quality

yield curve is positively sloping and has enough term spread cushion when
Med

policy rates are at or close to peak. RBI’s focus is on liquidity management, Average Eff Maturity 2.9
thereby forcing more transmission from lenders. Government bond demand-
Average Coupon 7.1
supply dynamics look favourable going forward, even accounting for some
Low

near-term OMO sales from RBI. With international interest in our bonds Average Price 99.3
poised to rise and sound local macros, the FM strongly believes it is time to be
Ltd Mod Ext
overweight quality fixed income. Credit spreads are probably bottoming out Interest-Rate Sensitivity
for the cycle, and we expect quality to outperform credit on a risk-adjusted Portfolio Date: 30th September, 2023
basis over the next foreseeable horizon. In line with this view, Bandhan Bond Portfolio
Fund – Short Term Plan has around 70% of its portfolio allocated to the 3-6 Top 10 Holdings
Weighting %
year G Sec segment. It continues to be a high-quality, short-duration-oriented 7.38% Govt. Stock 2027 54.0
debt strategy
5.63% Govt. Stock 2026 15.5

7.1% Govt. Stock 2029 4.2

Bajaj Finance Ltd. 3.5

Sundaram Finance Ltd. 1.7

Since Bajaj Finance Ltd. 1.7
YTD 1 Year 3 Years 5 Years Inception
Bajaj Finance Ltd. 1.1
Bandhan Bond Short Term Fund 4.9 6.6 4.3 6.7 7.3
Bajaj Finance Ltd. 0.8
NIFTY Short Duration Debt Index — 7.6 5.8 7.2 — NABARD 0.6
India Fund Short Duration 4.3 6.0 4.9 5.3 6.5 HDFC Bank Ltd. 0.3

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 35
 Debt - Short Term Bond

Axis Short Term Fund

Why this fund?
l Maintains high quality portfolio with over 85% of holdings rated
FundSelect
AAA/Sovereign at all times as per mandate. PRR 3
l Axis AMC is reputed in the industry for employing robust risk
management framework with strong credit analysis process. Key Fund Characteristics
l Portfolio construction focused on the shape of the yield curve. Portfolio Manager Devang Shah;& Aditya Pagaria;

Inception Date 22nd January, 2010

What is this fund all about?
Fund Size (INR Mio.) 73,666
l AMC follows 3-pronged approach (1) Financial parameters, (2) Benchmark NIFTY Short Duration Debt Index
Management track record and (3) Management flexibility and sector risk
Fund ISIN INF846K01644
basis which they arrive at a rating for the right valuation and spreads
attractiveness. Expense ratio 0.99%
l
Leads to the fund having a long tail on credits and is an effective risk Modified Duration (Yrs) 2.45
management tool. FM seek diversification at group/issuer level. Average Maturity (Yrs) 3.46
l
Uses 'self-liquidating' portfolios for liquidity management where certain
Yield to Maturity 7.62%
portion of portfolio matures regularly and hence, can protect performance
due to AUM outflow. Exit Fee 0.00%

Portfolio Date: 30th September, 2023

What is the key risk? AA
12%
The portfolio is primarily invested in AAA/Sovereigns, hence, missing out
alpha arising from any credit spread compression in lower rated papers upon
AAA
improvement of credit scenario. The fund is exposed to duration risk and may 88%
get impacted by interest rate movements if yields rise.

How has the fund performed?

The Fund posted annualized returns of 6.9% over 5 years ending 30th
September 2023, out-performing the category average of 5.3%. The fund has
had a consistent performance while maintaining a high-quality low risk
strategy.
What the Manager Says: Portfolio Date: 30th September, 2023
The fund maintains a high proportion of AAA, SOV & equivalent assets in the Morningstar Fixed Income Style BoxTM
portfolio. The fund is well-diversified and controls credit risk by having strict
limits on issuer weighting based on rating. The fund is a combination of short Fixed-Income Stats %
High

duration as well as carry that can help mitigate interest rate risk and deliver a Average Eff Duration —
Credit Quality

balanced return over a long run. The FM employs an actively managed

Med

strategy with an incremental addition of 2-4 year corporate bonds and G- Average Eff Maturity 3.5
Secs.
Average Coupon 7.4
Low

Average Price —

Ltd Mod Ext

Interest-Rate Sensitivity
Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

7.06% Govt. Stock 2028 8.8

7.38% Govt. Stock 2027 6.0

8.51% Govt. Stock 2033 5.1

7.17% Govt. Stock 2030 4.6

Bajaj Housing Finance Ltd. 2.9

Since State Bank of India 2.1
YTD 1 Year 3 Years 5 Years Inception
Hero Fincorp Ltd. 2.0
Axis Short Term Gr 5.0 6.6 4.8 6.9 7.5
7.26% Govt. Stock 2033 2.0
NIFTY Short Duration Debt Index — 7.6 5.8 7.2 — SIDBI 2.0
India Fund Short Duration 4.3 6.0 4.9 5.3 6.3 Mahindra Rural Housing Finance Ltd. 1.9

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 36
 Debt - Dynamic Bond

ICICI Prudential All Seasons Bond Fund

Why this fund?
l Generates capital appreciation through active interest rate strategy.
FundSelect
l Utilizes in-house CAD-model, which compares multiple PRR 3
macroeconomic indicators vs. their historical average for ideal duration
bands. Key Fund Characteristics
l Focus on capturing interest rate cycles from both sides over long time Portfolio Manager Manish Banthia & Anuj Tagra
periods while maintaining optimum balance of yield safety and liquidity. Inception Date 20th January, 2010

What is this fund all about? Fund Size (INR Mio.) 110,970

Benchmark NIFTY Composite Debt Index

l Portfolio is constructed on the Internal Model based on 3 Key pillars : (1)
Fund ISIN INF109K01GN9
Credit Growth (2) Fiscal Deficit (3) Current account deficit. The model-
makers believe that these 3 factors succinctly capture both internal and Expense ratio 1.31%
external factors that are key to arriving at ideal duration zones. Based on Modified Duration (Yrs) 2.99
the current macroeconomic situation, the model compares the throughput
Average Maturity (Yrs) 5.30
with current interest rates and indicates the duration for the portfolio.
l Active Duration Management used where the fund will start increasing Yield to Maturity 7.93%

duration when index starts moving into positive territory and will reduce Exit Fee 0.25%
duration when index starts moving into negative territory. Portfolio Date: 30th September, 2023
l
The fund endeavors to generate income through investing in a range of
debt and money market instruments of various duration, credit profile
while maintaining yield, safety and liquidity. AA
27%

What is the key risk?

The Fund has an actively managed duration strategy based on
macroeconomic variables. In addition to being exposed to interest rate
volatility, the scheme is exposed to model-risks. The fund also takes active AAA
credit risk exposure (below AAA/Sovereign) which can impacts funds 73%
performance due to any downgrade / default by the issuer of the bond or
during periods of elevated credit risk sentiment.

How has the fund performed?

Portfolio Date: 30th September, 2023
The fund posted annualized returns of 7.8% over 5 years ending 30th Morningstar Fixed Income Style BoxTM
September, 2023, out-performing the category average of 5.3%.The fund
has been among the top performers in its category and beaten it’s peer Fixed-Income Stats %
High

category average across time periods. Most of the long-term relative Average Eff Duration —
Credit Quality

outperformance can be attributed to active duration management and credit

Med

selection. Average Eff Maturity 5.3

What the Manager Says: Average Coupon 7.2

Low

Currently we are in a phase where the RBI stance is shifting to a phase of Average Price —
continuous pause and sideways interest rate movement. This period is
Ltd Mod Ext
suitable for both duration and accruals, which augurs well considering the Interest-Rate Sensitivity
scheme’s strategy. The outlook for the fund is good owing to its flexibility to Portfolio Date: 30th September, 2023
toggle across a wide duration and build exposure in accrual segment of the Portfolio
market. As of 30th September : Top 10 Holdings
Weighting %
l The scheme has its modified duration of 2.99 years. 7.38% Govt. Stock 2027 18.7
l The scheme is currently holding around 51.16% in G-Sec and around 7.06% Govt. Stock 2028 12.2
40.9% in well researched corporate securities.
8.25% Govt. Stock 2033 6.9
l The scheme is maintaining 74.87% in AAA and equivalent, cash and net
current assets and government securities. 7.93% Govt. Stock 2034 4.1

7.18% Govt. Stock 2033 3.6

Since 7.87% Govt. Stock 2028 2.8
YTD 1 Year 3 Years 5 Years Inception
182 DTB 29032023 2.6
ICICI Pru All Seasons Bond Gr 5.6 7.3 5.8 7.8 8.9
SIDBI 2.5
NIFTY Composite Debt Index — 8.0 6.3 8.1 — Embassy Office Parks Reit 1.1
India Fund Dynamic Bond 4.0 5.7 4.2 5.3 6.3 Tata Capital Housing Finance Ltd. 1.1

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 37
 Debt - Medium Term Bond

Axis Strategic Bond Fund

Why this fund?
l Alpha generation through active duration management as well as
FundSelect
conscious calls on credit. PRR 3
l The fund has also accomplished an upgrade to downgrade ratio of
nearly 2 since inception which has added alpha to the fund. Key Fund Characteristics
l Robust credit-risk management framework in place. Portfolio Manager Devang Shah & Dhaval Patel

Inception Date 28th March, 2012

What is this fund all about?
Fund Size (INR Mio.) 19,169
l Bottom-up approach to credit evaluation which Includes a study of the Benchmark NIFTY Medium Duration Debt Index
operating environment of the issuer, the past track record as well as the
Fund ISIN INF846K01BP2
prospects of the issuer and the short term / long term financial health of the
issuer. Expense ratio 1.09%
l
The Scheme segregates companies/groups based on risk associated Modified Duration (Yrs) 3.37
with them (low risk, moderate risk & high risk). Frequency of review is Average Maturity (Yrs) 4.70
decided basis this risk rating (Extensive tracking of high-risk credit).
Yield to Maturity 8.03%
l They Scheme has a credit team who is responsible for approving credits
at an AMC level. The Scheme also has an investment team headed by the Exit Fee 1.00%
FM who do a second level check on each credit before including it in the Portfolio Date: 30th September, 2023
portfolio. A
4%
What is the key risk?
The Fund has an actively managed duration strategy and is subjected to
AA AAA
interest rate volatility risk which is dependent on change in interest rates on 28% 68%
account of RBI monetary policy, inflation, demand v/s supply factors etc. The
fund is also subject to credit risk which may arise from any downgrade /
default by the issuer of the bond.

How has the fund performed?

The Fund posted annualized returns of 6.9% over 5 years ending 30th
September 2023, out-performing the category average of 4.8%. The fund has
been among the top performers in its category across various time horizons. Portfolio Date: 30th September, 2023
Most of the relative outperformance can be attributed to active interest rate Morningstar Fixed Income Style BoxTM
management and credit selection.
Fixed-Income Stats %
High

What the Manager Says:

Average Eff Duration —
Credit Quality

Aims to invest 50-60% of its portfolio in AAA bonds with overall portfolio
duration target range of 3-4 years as a part of its investment mandate. The
Med

Average Eff Maturity 4.7

fund allocates to short non-AAA asset securities on an incremental basis
depending on how attractive the spreads are over AAA assets. The portfolio Average Coupon 7.7
Low

design should help generate stable returns while bringing down volatility
Average Price —
relative to a longer duration fund
Ltd Mod Ext
Interest-Rate Sensitivity
Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

7.18% Govt. Stock 2033 18.0

7.26% Govt. Stock 2033 5.3

7.06% Govt. Stock 2028 4.1

8.51% Govt. Stock 2033 3.7

Magma Housing Finance Ltd. 3.0

Since Rural Electrification Corp. Ltd. 2.6
YTD 1 Year 3 Years 5 Years Inception
Century Textiles & Industries Ltd. 2.3
Axis Strategic Bond Gr 5.4 7.0 5.8 6.9 8.0
JM Financial Credit Solutions Ltd. 2.3
NIFTY Medium Duration Debt Index — 9.0 8.0 8.6 — Motherson Sumi Systems Ltd. 2.1
India Fund Medium Duration 4.0 5.7 6.6 4.8 6.2 NABARD 2.1

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 38
 Debt - Medium to Long Term Bond

SBI Magnum Income Fund

Why this fund?
l Balanced focus on duration management (60%) with accrual play
FundSelect
(40%). PRR 3
l Flexible duration and credit quality mandate helps to manoeuvre timely
to capitalize on value adding opportunities. Key Fund Characteristics
l Proven risk management framework helps avoid adverse credit events. Portfolio Manager Dinesh Ahuja & Mohit Jain

Inception Date 25th November, 1998

What is this fund all about?
Fund Size (INR Mio.) 16,776
l Aims to have a balanced mix of corporate bonds with a minimum rating of Benchmark CRISIL Medium to Long Duration
Debt Index
AA- providing stable accrual and government bonds providing duration to
Fund ISIN INF200K01594
the fund.
l The AMC has an investment committee comprising of senior members Expense ratio 1.46%
from both SBI AMC & AMUNDI who approve the credits to be placed in the Modified Duration (Yrs) 4.08
fund and can also leverage upon its parent – SBI Bank. Average Maturity (Yrs) 7.54
l
Independent Risk Management team monitors the quality and liquidity of
Yield to Maturity 7.78%
all securities, deviations from internal limits and highlights in case of any
slippages. Additional covenants include put options based on events such Exit Fee 1.00%
as credit migration, management change, defaults etc. Portfolio Date: 30th September, 2023

What is the key risk?

The scheme has an actively managed duration strategy (60%) and is AAA
subjected to interest rate volatility risk which is dependent on change in AA
59%
interest rates on account of RBI monetary policy, inflation, demand v/s supply 41%
factors etc. The fund has an accrual strategy(40%) and is also subject to
credit risk which may arise from any downgrade / default by the issuer of the
bond.

How has the fund performed?

The Fund posted annualized returns of 7.7% over 5 years ending 30th
September, 2023, out-performing the category average of 5.7%. The fund
enjoys a stellar performance vis-a-vis its Peer group average return and has Portfolio Date: 30th September, 2023
outperformed it across most time periods. Cautious credit selection and Morningstar Fixed Income Style BoxTM
tactical duration management has contributed to its outperformance.
Fixed-Income Stats %
High

What the Manager Says:

Average Eff Duration —
Credit Quality

As of September 30, 2023, the fund has 40% exposure to government bonds
Med

and 17% exposure to AAA and equivalent issuers. Macaulay Duration of the Average Eff Maturity 7.5
fund is 4.44 years and the portfolio yield is 7.93%.
Average Coupon 7.6
SBI Magnum Income Fund is a medium to long duration fund with an optimal
Low

blend of carry to ensure steady accrual with flexibility to benefit from capital Average Price —
appreciation through moderate long duration exposure. Ltd Mod Ext
Interest-Rate Sensitivity
Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

7.1% Govt. Stock 2029 14.2

7.41% Govt. Stock 2036 9.0

7.26% Govt. Stock 2033 6.0

Godrej Properties Ltd. 4.5

Torrent Power Ltd. 4.5

Since Larsen & Toubro Ltd. 4.5
YTD 1 Year 3 Years 5 Years Inception
Tata Realty and Infrastructure Ltd. 4.2
SBI Magnum Income Reg Gr 5.5 7.5 5.0 7.7 7.6
Tata Housing Developement Co. Ltd. 3.9
CRISIL Medium to Long Duration
Debt Index — 8.6 6.8 8.6 — Mahanagar Telephone Nigam Ltd. 3.4
India Fund Medium to Long Duration 4.5 6.3 3.9 5.7 7.1 Avanse Financial Services Ltd. 3.3

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 39
 Debt - Corporate Bond

Aditya BSL Corporate Bond Fund

Why this fund?
l Maintains high quality portfolio with >90% of holdings rated
FundSelect
AAA/Sovereign across periods. PRR 3
l Fund seeks to generate ~90% of its returns through accrual strategy
and balance through duration strategy. Key Fund Characteristics
l Backed by the largest debt fund management teams in the industry. Portfolio Manager Kaustabh Gupta
Dhaval Joshi
Inception Date 3rd March, 1997
What is this fund all about?
Fund Size (INR Mio.) 179,153
l Over 90% of investments into corporate bonds and G-Secs rated AAA / Benchmark NIFTY Corporate Bond TRI
Sovereign. Fund maintains its duration between 1 and 3 years depending
Fund ISIN INF209K01785
on its interest rate outlook and yield curve attractiveness.
l All 15 team members including the CIO and 5 FMs serve as Analysts with Expense ratio 0.50%
domain expertise in researching either a sector(s) (credits) or macro- Modified Duration (Yrs) 2.56
economic variables such as liquidity and interest rates. Average Maturity (Yrs) 3.38
l
While credit rating agencies focus on probability of default, ABSL AMC
Yield to Maturity 7.69%
focuses on 'Loss Given Default’ helping prevent recent ‘accidents’.
Exit Fee 0.00%
What is the key risk? Portfolio Date: 30th September, 2023

Though the scheme is primarily invested in AAA/Sovereigns securities, it is

still exposed to credit risk. The fund can miss out alpha arising from any credit
spread compression in lower rated papers upon improvement of credit
scenario. The fund is also exposed to duration risk which can impact funds
performance due to mark-to-market valuation impact on underlying
securities.

How has the fund performed?

The Fund posted annualized returns of 7.6% over 5 years ending 30th
September, 2023, in line with the benchmark but out-performing the category
AAA
average of 5.8%. The fund has beaten its category average across most time 100%
periods.
What the Manager Says: Portfolio Date: 30th September, 2023

The fund follows an accrual strategy and is well positioned from a yield Morningstar Fixed Income Style BoxTM

maximization perspective, through a high credit quality portfolio. High credit Fixed-Income Stats %
High

quality portfolio having exposure of ~97% to Sovereign & AAA/A1+ rated

instruments and remaining portfolio in cash/cash equivalent. The portfolio is Average Eff Duration —
Credit Quality

well positioned to outperform traditional savings instruments of similar

Med

Average Eff Maturity 3.4

investment horizon. The fund is an ideal option for investors seeking low
volatility and investment horizon of 1-3 years. The FM seeks to deliver alpha Average Coupon 7.2
Low

generation through modulating duration and spreads availability. The current

Average Price 99.8
modified duration of the fund is 2.87 years & YTM is 7.76%.
Ltd Mod Ext
Interest-Rate Sensitivity
Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

7.26% Govt. Stock 2033 9.1

7.18% Govt. Stock 2037 6.3

8.25% Govt. Stock 2033 4.0

Mahindra & Mahindra Financial Serv. Ltd. 3.4

7.93% Govt. Stock 2034 3.1

Since NABARD 2.9
YTD 1 Year 3 Years 5 Years Inception
Rural Electrification Corp. Ltd. 2.4
Aditya BSL Corp. Bond Reg Gr 5.5 7.3 5.5 7.6 9.0
7.06% Govt. Stock 2028 2.2
NIFTY Corporate Bond TRI — 7.7 6.2 7.8 8.1 SIDBI 2.0
India Fund Corporate Bond 3.9 5.3 5.7 5.8 7.4 HDFC Bank Ltd. 2.0

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 40
 Debt - Corporate Bond

HDFC Corporate Bond Fund

Why this fund?
l Fund has been a top quartile performer across time periods with
FundSelect
outperformance v/s both its Benchmark and Peer group average. PRR 3
l An alpha generating strategy employed is capturing the spread of
sovereign vs corporate bonds. Key Fund Characteristics
l Interest rate play through G-secs to add alpha rather than credit route. Portfolio Manager Anupam Joshi & Priya Ranjan

Inception Date 29th June, 2010

What is this fund all about?
Fund Size (INR Mio.) 268,551
l Employs vigorous internal research model based on 4 Cs (1) Character Benchmark NIFTY Corporate Bond TRI
of Management (2) Capacity to repay (3) Collateral (of good quality and
Fund ISIN INF179K01DC2
adequate to aid recovery capability) (4) Covenants (to ring-fence in dire /
unforeseen events). Expense ratio 0.60%
l
AMC maintains group and issuer limits stricter than that prescribed by Modified Duration (Yrs) 2.71
SEBI. Ex: SEBI limit of 20% exposure at Group level and 10% exposure at Average Maturity (Yrs) 5.07
issuer level while AMC keeps it at 15% and 7-9%.
Yield to Maturity 7.70%
l Dedicated Risk team including the Risk Head report to the CEO directly.
Their role is to see compliance to internal and external mandates, enforce Exit Fee 0.00%
checks and balances. Portfolio Date: 30th September, 2023

What is the key risk?

Fund’s robust performance over the last 1 year has been aided partly by
higher carry (1 year back) and significant easing of yields in high quality (AAA
& sovereign) bonds due to market’s preference for safety and quality. High
absolute performance may be difficult to sustain given lower current yields or
reversal in interest rate levels. Relative performance can get impacted if there
is a pick-up in risk appetite for high yield bonds

How has the fund performed?

AAA
The Fund posted annualized returns of 7.6% over 5 years ending 30th 100%
September, 2023, in line with the benchmark but out-performing the category
average of 5.8%. The fund has been in the top quartiles over longer term Portfolio Date: 30th September, 2023
periods with outperformance v/s its Peer group average. Morningstar Fixed Income Style BoxTM
What the Manager Says: Fixed-Income Stats %
High

Fund manager will seek to maintain the modified duration of the portfolio
Average Eff Duration —
Credit Quality

between 1-4 years depending upon the interest rate outlook & term spreads.
Currently, the portfolio’s modified duration is 2.7 years. Average maturity of
Med

Average Eff Maturity 5.1

the portfolio is 4.98 years as on the same date, with the YTM being 7.74%.
Average Coupon 7.4
Portfolio is focused on maintaining higher credit quality. Minimum investment
Low

of 72% in AAA & AA+ rated corporate bonds, and 10% in liquid assets, i.e., Average Price 99.6
Cash, Government Securities, T-bills, and Repo on Government Securities.
Ltd Mod Ext
Currently (As of 30th September 2023), 100% of the portfolio is invested in Interest-Rate Sensitivity
AAA & Equivalent securities and liquid assets Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

8.51% Govt. Stock 2033 5.9

7.87% Govt. Stock 2028 4.0

7.93% Govt. Stock 2034 3.7

NABARD 3.0

Hdb Financial Services Ltd. 2.8

Since 7.1% Govt. Stock 2029 2.8
YTD 1 Year 3 Years 5 Years Inception
State Bank of India 2.4
HDFC Corporate Bond Gr 5.6 7.3 5.3 7.6 8.2
Mangalore Refinery & Petrochemicals Ltd. 2.0
NIFTY Corporate Bond TRI — 7.7 6.2 7.8 8.1 Reliance Industries Ltd. 2.0
India Fund Corporate Bond 3.9 5.3 5.7 5.8 7.4 State Bank of India 2.0

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 41
 Debt - Corporate Bond

ICICI Prudential Corporate Bond Fund

Why this fund?
l The Scheme seeks to predominantly invest in a basket of AA+ and
FundSelect
above rated corporate bonds of short maturity. PRR 3
l Buy & Hold strategy with maturity range of 12 to 24 months.
l The scheme maintains an optimum balance of yield, safety and Key Fund Characteristics
liquidity. Portfolio Manager Anuj Tagra & Rohit Lakhotia

Inception Date 11th August, 2009

What is this fund all about?
Fund Size (INR Mio.) 233,798
l The Scheme seeks to predominantly invest in in a basket of AA+ and Benchmark NIFTY Corporate Bond TRI
above rated corporate bonds of short maturity. At present, the scheme is
Fund ISIN INF109K01CQ1
maintaining 25.0% in government securities, 71.3% in corporate
securities, 0.35% in Certificate of Deposit/Commercial Papers and 3.7 % Expense ratio 0.53%
in TREPs/Net current assets. Modified Duration (Yrs) 1.77
l
The scheme aims to invest some portion of the portfolio in 1 to 5 years debt Average Maturity (Yrs) 3.95
securities predominantly in AA+ and above rated corporate bonds and
some portion in money market instruments. Yield to Maturity 7.83%

l The scheme intends to maintain modified duration between 12 to 24 Exit Fee 0.00%
months range. However, due to fixed income market volatility, the scheme Portfolio Date: 30th September, 2023
has maintained its modified duration to 2.43 years as on August 31, 2021.
l
The scheme seeks to generate accrual income predominantly through
buy & hold strategy.

What is the key risk?

Fund’s robust performance over the last 1 year has been aided partly by
higher carry (1 year back) and significant easing of yields in high quality (AAA
& sovereign) bonds due to market’s preference for safety and quality. High
absolute performance may be difficult to sustain given lower current yields or
reversal in interest rate levels. Relative performance can get impacted if there
is a pick-up in risk appetite for high yield bonds AAA
100%
How has the fund performed?
Portfolio Date: 30th September, 2023
The Fund posted annualized returns of 7.4% over 5 years ending 30th Morningstar Fixed Income Style BoxTM
September 2023, in line with the benchmark and out-performing the category
Fixed-Income Stats %
High

average of 5.8%. The fund has been in the top quartiles over longer term
periods with outperformance v/s its Peer group average. Average Eff Duration —
Credit Quality

What the Manager Says:

Med

Average Eff Maturity 4.0

The Scheme is currently fully invested in a basket of AAA rated corporate
bonds, sovereign and money market instruments. Allocation-wise, the Average Coupon 7.1
Low

scheme is maintaining 25.27% in government securities, 66.30% in Average Price 99.9

corporate securities and 5.26% in TREPs and current assets.
Ltd Mod Ext
Future Outlook for the fund- Corporate bond yields have become attractive Interest-Rate Sensitivity
due to the rise in interest rates and strong economic growth. This bodes well Portfolio Date: 30th September, 2023
for the future outlook of the scheme as a higher carry may support overall Portfolio
Top 10 Holdings
performance. Weighting %

8.25% Govt. Stock 2033 11.7

7.06% Govt. Stock 2028 5.1

7.38% Govt. Stock 2027 4.3

NABARD 3.7

HDFC Bank Ltd. 3.0

Since SIDBI 2.7
YTD 1 Year 3 Years 5 Years Inception
SIDBI 2.6
ICICI Pru Corporate Bond Gr 5.9 7.5 5.6 7.4 7.0
Bharat Petroleum Corp. Ltd. 2.5
NIFTY Corporate Bond Fund Index — 7.7 5.8 7.4 8.4 HDFC Bank Ltd. 2.3
India Fund Corporate Bond 3.9 5.3 5.7 5.8 6.4 Power Finance Corporation Ltd. 2.3

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 42
 Debt - Banking & PSU Bond

Kotak Banking & PSU Debt Fund

Why this fund?
l Investment in low-risk debt securities issued by Banks, Public Sector
FundSelect
Undertakings, Public Financial Institutions and Municipal Bonds. PRR 3
l Nimble footed interest rate and credit risk management.
l Can invest up to 25% in AA and below rated papers including perpetual Key Fund Characteristics
bonds. Portfolio Manager Deepak Agrawal, Abhishek Bisen
& Palha Khanna
Inception Date 29th December, 1998
What is this fund all about?
Fund Size (INR Mio.) 60,664
l The fund endeavors to generate income by predominantly investing in Benchmark CRISIL Banking & PSU Debt Index
debt & money market securities issued by Banks & PSUs and Reverse
Fund ISIN INF174K01FO3
repos in such securities, sovereign securities issued by the Central.
Government and State Governments, and / or any security Expense ratio 0.81%
unconditionally guaranteed by the Govt. of India. Modified Duration (Yrs) 3.03
l
The fund endeavors to maintain an overall exposure of the scheme to Average Maturity (Yrs) 9.21
minimum of 75% in AAA rates securities. Additionally, the fund avoids
exposure to private sector (Non-Banking &PSU entities) despite a SEBI Yield to Maturity 7.82%

limit of 0-20% exposure of the scheme AUM. Exit Fee 0.00%

l The fund endeavors to limit the exposure of individual issuer/security to Portfolio Date: 30th September, 2023
below 8% against a SEBI limit of 10%. AA AAA
9% 91%
What is the key risk?
The Fund invests in Banking & PSU/PFC securities, given the narrow
universe of such securities, the fund may at times have concentrated
positions subject to 10% limit. The fund is also subject to interest rate,
prepayment and credit risk which may arise from any downgrade / default by
the issuer of the bond. The fund also takes active exposure in Perpetual
Bonds which has a higher risk compared to ordinary bonds.

How has the fund performed?

The Fund posted annualized returns of 7.4% over 5 years ending 30th
September 2023, out-performing the benchmark and category average of Portfolio Date: 30th September, 2023
5.9%. The fund has been among the top performers in its category and Morningstar Fixed Income Style BoxTM
consistently met / beaten its benchmark and peer category across most time
periods: short, medium and long. Fixed-Income Stats %
High

Average Eff Duration —

Credit Quality

What the Manager Says:

Med

We intend to maintain modified duration in the range of 2–4 in Aug 2023. We Average Eff Maturity 10.0
have FRB exposure in portfolio and they provide adequate protection in case
Average Coupon 7.5
there is sudden shock in rates. Given the backdrop and outlook we started
Low

increasing duration slowly. Should there be spike in rates or the curve Average Price 99.7
steepens, we shall look to increase duration further.
Ltd Mod Ext
Interest-Rate Sensitivity
Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

8.51% Govt. Stock 2033 11.0

NABARD 5.2

HDFC Bank Ltd. 3.9

SIDBI 3.6

SIDBI 3.1
Since Rural Electrification Corp. Ltd. 2.6
YTD 1 Year 3 Years 5 Years Inception
Bank of Baroda 2.6
Kotak Banking & PSU Debt Reg Gr 5.0 6.7 5.1 7.4 7.3
Rural Electrification Corp. Ltd. 2.5
CRISIL Banking & PSU Debt Index — 7.0 4.9 7.2 — 7.18% Govt. Stock 2037 2.4
India Fund Banking & PSU 4.5 6.0 4.4 5.9 — 7.38% Govt. Stock 2027 2.3

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 43
 Debt - Banking & PSU Bond

Axis Banking & PSU Debt Fund

Why this fund?
l Fund has been a top quartile performer over longer periods with
FundSelect
outperformance v/s its Benchmark and Peer average. PRR 3
l Scheme’s construct mandates the portfolio to run a credit profile ~
100% AAA and short duration maturity ~ 2years. Key Fund Characteristics
l Avoids non-AAA, perp exposures and limits NBFC exposure. Portfolio Manager Aditya Pagaria & Hardik Shah

Inception Date 8th June, 2012

What is this fund all about?
Fund Size (INR Mio.) 144,254
l Top-Down Approach to Credit Selection, starting with the macro view, the Benchmark NIFTY Banking & PSU Debt Index
interest rated, growth rates and inflation are some of the key parameters
Fund ISIN INF846K01CB0
that determine credit selection.
l Each credit idea is assigned A,B,C rating. “A” being the best rating Expense ratio 0.63%
assigned to large institutions and are reviewed every year. B and C rated Modified Duration (Yrs) 2.32
securities are reviewed every 6 months and Quarterly respectively. Average Maturity (Yrs) 2.74
l
Key internal systems in place to issue ‘soft’ alerts at appropriate levels
Yield to Maturity 7.53%
basis SEBI investment restrictions, thereby ensuring pre-emptive
monitoring of portfolio. Exit Fee 0.00%

Portfolio Date: 30th September, 2023

What is the key risk?
Given the narrow universe of Banking & PSU/PFC securities, the fund may at
times be constrained to take concentrated positions, subject to internal limit.
The fund has a high credit quality (100% AAA) and low maturity mandate (2.5
years) with a roll down approach. Given the restricted mandate, it may miss
out on any alpha opportunities in a favourable interest / credit risk
environment and underperform its nimble footed peers.

How has the fund performed?

The Fund posted annualized returns of 7.1% over 5 years ending 30th
September 2023, in line with its benchmark but out-performing the category AAA
100%
average of 5.9%.The fund has been among the top performers in its category
and consistently met/ beaten its benchmark and peer category across most Portfolio Date: 30th September, 2023
time periods: medium and long. Morningstar Fixed Income Style BoxTM

What the Manager Says: Fixed-Income Stats %

High

Axis Banking & PSU Debt is being repositioned to a 4-year high grade
Average Eff Duration —
Credit Quality

corporate bond strategy predominantly investing in bonds issued by banking

companies and public sector undertakings (PSUs). The fund will largely
Med

Average Eff Maturity 2.7

consist of AAA rated papers.
Average Coupon 7.3
The fund has commenced redeployment into fresh AAA instruments with a
Low

residual maturity of 3.5 to 4.5 years. The new strategy will also endeavour to Average Price 98.4
hold assets till maturity. Given that the 4-year space is a sweet spot, such a
Ltd Mod Ext
strategy is ideal for medium term investors looking to take advantage of the Interest-Rate Sensitivity
current opportunities in the debt markets. Portfolio Date: 30th September, 2023

Portfolio
Top 10 Holdings
Weighting %

Export Import Bank of India 6.2

Indian Railway Finance Corp. Ltd. 5.8

Rural Electrification Corp. Ltd. 5.2

Bajaj Finance Ltd. 4.8

SIDBI 4.8
Since HDFC Bank Ltd. 4.0
YTD 1 Year 3 Years 5 Years Inception
Indian Railway Finance Corp. Ltd. 3.7
Axis Banking & PSU Debt Gr 4.9 6.5 4.7 7.1 7.7
National Housing Bank 2.7
NIFTY Banking & PSU Debt Index — 6.9 4.9 7.1 7.6 NABARD 2.6
India Fund Banking & PSU 4.5 6.0 4.4 5.9 — NABARD 2.5

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 44
 Debt - Credit Risk
ICICI Prudential Credit Risk Fund
Why this fund?
l Invests in well researched AA & below rated corporate bonds, offering
FundSelect
higher yield, with a view to generate credit alpha. PRR 3
l Active risk management process focusing on diversification at Issuer
and Group level while keeping a close eye at fund’s liability franchise. Key Fund Characteristics
l ‘Skin in the Game’ both key investment management personnel and the Portfolio Manager Manish Banthia, Ritesh Lunawat
& Sharmila D’mello
AMC itself are invested in the fund, demonstrating conviction in the Inception Date 3rd December, 2010
fund.
Fund Size (INR Mio.) 75,032
What is this fund all about? Benchmark CRISIL Short Term Credit Index

Fund ISIN INF109K01GU4

l
ICICI AMC supports the 2 Fund Managers at the helm of this fund with a
10-member independent Risk team, selected from diverse background Expense ratio 1.56%
like Risk, Credit or Research functions from various industries Banking, Modified Duration (Yrs) 1.75
AMC, Rating agencies.
Average Maturity (Yrs) 3.43
l Diversified across issuers groups to avoid concentration risk minimize risk
from unforeseen 'black swan' events. Yield to Maturity 8.35%

l Strictly monitor their AUM (susceptible to churn) comprising 1) AUM Exit Fee 1.00%
beyond exit load period 2) AUM beyond tax holding period 3 years) They Portfolio Date: 30th September, 2023
mandate maximum investment of 50 Cr at investor level while monitoring A
AUM mobilized through top 5 distributors. 13%

What is the key risk?

The fund is subject to credit risk which may arise from any downgrade of/or
AAA
default by the issuer of the bond. In adverse credit and ‘risk off’ environments, 37%
its performance could also bear the brunt of credit spread widening in its
lower rated securities. Fund is also subjected to duration risk which depends
on changes in interest rates.
AA
How has the fund performed? 50%

The Fund posted annualized returns of 7.6% over 3 years ending 30th
September 2023, out-performing the category average of 4.0%. The fund has Portfolio Date: 30th September, 2023
been among the top performers in its category and consistently met / beaten Morningstar Fixed Income Style BoxTM
its peer category across most time periods: short, medium and long.
Fixed-Income Stats %
High

What the Manager Says:

Average Eff Duration —
Credit Quality

Scheme seeks to invest predominantly in AA and below rated corporate

bonds. At present, the scheme is maintaining 43.72% in AA and equivalent
Med

Average Eff Maturity 3.4

rated securities, 16.05% in AAA and equivalent rated securities and 19.00%
in Government securities. Average Coupon 7.7
Low

Future Outlook for the fund- Accruals on spread assets have improved due to Average Price —
rise in interest rates. We expect accrual strategy to become important in our
Ltd Mod Ext
Credit Risk scheme performance. Our focus on shorter duration papers has Interest-Rate Sensitivity
benefitted us due to flattening yield curve (indicating lower spreads between Portfolio Date: 30th September, 2023
short term and long term papers). Portfolio
Top 10 Holdings
Going forward we expect the credit spreads to expand further on the back Weighting %
increased participation from issuers in the Bond market, as cost of capital 7.38% Govt. Stock 2027 8.1
from Banks becomes increasingly competitive. Additionally, the boost in
7.18%Govt. Stock 2033 3.5
credit growth in the economy may also offer potential of capital appreciation in
bond price due to improvement in issuer’s rating. 7.06% Govt. Stock 2028 3.5

Embassy Office Parks REIT 3.3

Varroc Engineering Ltd. 3.3

Since ONGC Petro Additions Ltd. 2.6
YTD 1 Year 3 Years 5 Years Inception
182 DTB 29032023 2.6
ICICI Pru Credit Risk Gr 5.1 6.9 6.4 7.6 8.2
Aadhar Housing Finance Ltd. 2.3
CRISIL Short Term Credit Index — 9.5 8.1 9.1 — The Great Eastern Shipping Co. Ltd. 2.3
India Fund Credit Risk 4.6 6.1 8.2 4.0 6.3 Ess Kay Fincorp Ltd. 1.7

Source: Morningstar, Portfolio Date: 30th September, 2023

Page 45
 Disclaimer
This document is for information purposes only and is not independent research. It is meant only for use as a reference tool. It has not
been prepared for any particular person or category of persons. The fund/s referred to in this document constitute only a portion of the
fund/s that are available for distribution from Standard Chartered Bank (SCB) and references to such fund/s in this document do not
constitute recommendations over any other fund available from SCB. That is, comparison of funds across asset classes may not be
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(information): (a) are the property of SCB; (b) are not intended to provide financial, legal, accounting or tax advice to any person and
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This document is not intended to be an offer or solicitation of an offer to buy or sell funds and is not intended to constitute investment
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making any investment decisions. Do not invest in investment products unless you fully understand and are willing to assume the
risks associated with them. Past performance is not indicative of future performance. These investments involve risks, the prices of
units or shares of the funds referred to in this document fluctuate, sometimes dramatically, and you may lose your entire investment.
Some of the funds may invest extensively in financial derivatives instruments or emerging markets and may have leveraged
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and the SCB PRR may indicate a risk, lower or higher than the funds product risk label.
SCB is a distributor of the fund/s referred to in this document. Nothing in this document should be construed as 'Investment Advice' as
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instruments referred to in this document or have a material interest in any such securities or related investment, or may be the only
market maker in relation to such investments, or provide, or have provided advice, investment banking or other services, to issuers of
such investments. Accordingly, SCB, its affiliates and/or subsidiaries may have a conflict of interest that could affect the objectivity of
this document.

Glossary
Sharpe Ratio – is arrived at by dividing the returns in excess of risk-free return with the standard deviation of portfolio
returns and is a measure of risk adjusted returns. This ratio helps in identifying whether the fund returns are the result of
good investment decisions or greater risk taken by the fund manager. Higher the Sharpe ratio, the better it is.
Beta – is a measure of volatility of the portfolio with respect to the market, also known as systematic risk. A beta measure
of 1 indicates that the portfolio volatility will be same as that of the benchmark/market. Any value greater than 1 indicates
that the portfolio is more volatile than the index and vice versa.
Information Ratio – measures a fund manager's ability to generate excess returns per unit of risk, relative to a
benchmark, Information ratio is measured as differential returns divided by standard deviation of differential returns with
respect to benchmark of the fund. Higher the Information ratio, the better it is.
Fund Volatility / Standard Deviation - The statistical measurement of dispersion about an average, which depicts how
widely a stock or portfolio's returns varied over a certain period of time. Investors use the standard deviation of historical
performance to try to predict the range of returns that is most likely for a given investment. When a stock or portfolio has a
high standard deviation, the predicted range of performance is wide, implying greater volatility.
Average Maturity - The average length of maturity for all fixed-rate debt instruments held in a portfolio. A bond fund or
mutual fund with a short average maturity is more sensitive to current interest rate fluctuations than one with longer
average maturity.
Modified Duration - is a measure of the sensitivity of the price of a fixed-income investment to a change in interest rates.
Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates
mean rising bond prices.

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