IDFC Dynamic Equity Fund_Fund spotlight
- 1. Fund Features: (Data as on 28th February'21) Category: Dynamic Asset Allocation or Balanced Advantage Monthly Avg AUM: `1,562.62 Crores Inception Date: 10th October 2014 Fund Managers: Equity Portion: Mr. Arpit Kapoor and Mr. Sumit Agrawal (w.e.f. 01/03/17) Debt Portion: Mr. Arvind Subramanian (w.e.f. 09/11/2015) Standard Deviation (Annualized): 13.94% Modified Duration: 2.04 years* Average Maturity: 2.53 years* Macaulay Duration: 2.12 years* Yield to Maturity: 4.65%* *Of Debt Allocation Only Benchmark: 50% S&P BSE 200 TRI + 50% NIFTY AAA Short Duration Bond Index (w.e.f 11/11/2019) Asset allocation: Gross Equity^ (Including Arbitrage): 64.81% Debt: 35.19% Net Equity: 35.50% Market Cap Split: Large Cap: 73.60% Mid and Small Cap: 26.40% Minimum Application Amount: `5,000/- and any amount thereafter. Exit Load: In respect of each purchase of Units: - For 10% of investment: Nil - For remaining investment: 1% if redeemed/ switched out within 1 year from the date of allotment (w.e.f. July 5, 2017) SIP Frequency: Monthly (Investor may choose any day of the month except 29th, 30th and 31st as the date of instalment.) Options Available: Growth, Dividend (Payout, Reinvestment and Sweep (from Equity Schemes to Debt Schemes only)) IDFC DYNAMIC EQUITY FUND DIVIDEND `/UNIT €€ NAV RECORD DATE 18-Dec-20 0.12 12.1700 15-Jun-20 0.10 10.4300 28-Jan-20 0.15 11.3200 18-Dec-20 0.13 13.1400 15-Jun-20 0.11 11.1900 28-Jan-20 0.16 12.0800 PLAN DIRECT REGULAR FUND PHILOSOPHY* IDFC Dynamic Equity Fund is a hybrid fund with active equity allocation changing based on the trailing P/E of Nifty 50 index. The fund has a pre-defined model which indicates the range of active equity allocation based on P/E levels, and there are 6 different range of equity allocation possible. Higher the P/E band, lower will be the active equity allocation and vice versa. Change of bands happen once a month while changes within the band happen dynamically on a day to day basis. The active equity portfolio is managed like a diversified fund. Active stock selection philosophy combines quality stocks with good growth potential. The quality filters for the fund are – conversion of EBIDTA to operating cash – OCF as % of EBIDTA > 33%; Moderate leverage: Debt EBIDTA <3x; Profitability: EBIDTA / Net operating Assets >30%. Thus, companies which qualify these parameters and have higher visibility of growth versus peers will form the core portfolio. Depending on P/E levels, the fund can have more large or mid/small cap names. The fund will also use Nifty futures to dynamically manage active equity allocation within a month. The debt portion of the fund is actively managed. The portfolio emphasizes on maintaining high credit quality and currently has 100% in AAA or equivalent instruments. Further the portfolio is oriented towards short-to-medium duration strategies. Bloomberg Nifty P/E data as of 28th February 2021 indicates a value of 32.3 and equity band for the month of March will continue to be 30-40%. From Indian equities point of view, the solid December’20 quarter earnings were clearly a key highlight. Few, if any, would have been able to forecast, at the start of the current fiscal in April’20, that December’20 quarter would deliver the highest ever quarterly profits for the BSE200 set of companies! Domestic equity markets continued to trend higher in February. Rally was majorly broad based and across the sectors. For the month, Small cap (12%) and Mid cap (10%) delivered the highest returns followed by Large cap (7%). Globally, however, the worries on inflation and the unsettling moves on the US 10-year yield gave a glimpse, a “trailer” of reality – valuations could compress; economic growth could get stunted, if bonds yields sustained and moved ahead. For the current economic recovery to sustain, containing bond yields, not through “yield curve management” but through moderating inflation expectation will be a key variable to track for the rest of the year. An open ended dynamic asset allocation fund OUTLOOK Face Value per Unit (in `) is 10 Dividend is not guaranteed and past performance may or may not be sustained in future. Pursuant to payment of dividend, the NAV of the scheme would fall to the extent of payout and statutory levy (as applicable). The above mentioned is the current strategy of the Fund Manager. However, asset allocation and investment strategy shall be within broad parameters of Scheme Information Document. Ratios calculated on the basis of 3 years history of monthly data.
- 2. SECTOR ALLOCATION This product is suitable for investors who are seeking*: • To create wealth over long term • Dynamic allocation towards equity, derivatives, debt and money market instruments *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. PORTFOLIO (28 February 2021) Equity and Equity related Instruments 64.81% Net Equity Exposure 35.50% Banks 6.44% ICICI Bank 5.76% ICICI Bank - Equity Futures -2.50% HDFC Bank 3.18% Axis Bank 1.32% Axis Bank - Equity Futures -1.33% Software 6.40% Infosys 5.58% Infosys - Equity Futures -1.61% Tata Consultancy Services 3.22% Tata Consultancy Services - Equity Futures -3.23% Tech Mahindra 2.40% Tech Mahindra - Equity Futures -1.60% Wipro 0.86% HCL Technologies 0.67% HCL Technologies - Equity Futures -0.11% Coforge 0.35% Coforge - Equity Futures -0.35% Larsen & Toubro Infotech 0.22% Finance 5.44% Muthoot Finance 1.72% Muthoot Finance - Equity Futures -0.45% Bajaj Finserv 1.53% Bajaj Finserv - Equity Futures -0.64% HDFC Life Insurance Company 1.49% HDFC Life Insurance Company - Equity Futures -0.81% Cholamandalam Invt and Fin Co 1.28% Bajaj Finance 0.55% Aavas Financiers 0.42% Mas Financial Services 0.34% Auto Ancillaries 4.16% Minda Industries 1.08% MRF 0.86% Endurance Technologies 0.64% Tube Investments of India 0.60% Sandhar Technologies 0.53% Balkrishna Industries 0.48% Balkrishna Industries - Equity Futures -0.48% Jamna Auto Industries 0.45% Pharmaceuticals 3.27% Divi's Laboratories 2.24% Divi's Laboratories - Equity Futures -0.89% Aurobindo Pharma 1.53% Aurobindo Pharma - Equity Futures -0.52% Cipla 1.50% Cipla - Equity Futures -1.50% Alkem Laboratories 0.63% Dr. Reddy's Laboratories 0.41% Dr. Reddy's Laboratories - Equity Futures -0.41% IPCA Laboratories 0.30% Consumer Non Durables 3.07% Hindustan Unilever 2.15% Hindustan Unilever - Equity Futures -0.80% Nestle India 1.24% Dabur India 0.61% Name of the Instrument Ratings % to NAV Name of the Instrument Ratings % to NAV Dabur India - Equity Futures -0.62% Burger King India 0.48% Tata Consumer Products 0.33% Tata Consumer Products - Equity Futures -0.34% Cement 2.99% JK Cement 1.24% UltraTech Cement 1.13% Ambuja Cements 0.61% Petroleum Products 2.85% Reliance Industries 4.55% Reliance Industries - Equity Futures -1.69% Telecom - Services 2.52% Bharti Airtel 3.40% Bharti Airtel - Equity Futures -0.87% Industrial Products 1.94% SRF 0.67% SRF - Equity Futures -0.29% Supreme Industries 0.63% Shaily Engineering Plastics 0.60% AIA Engineering 0.34% Construction Project 0.59% Larsen & Toubro 1.72% Larsen & Toubro - Equity Futures -1.37% KEC International 0.24% Pesticides 0.54% PI Industries 0.54% Healthcare Services 0.50% Gland Pharma 0.50% Construction 0.47% PNC Infratech 0.47% Gas 0.37% Indraprastha Gas 0.54% Indraprastha Gas - Equity Futures -0.17% Retailing 0.37% Avenue Supermarts 0.37% Chemicals 0.31% Chemcon Speciality Chemicals 0.31% Index -6.74% Nifty 50 Index - Equity Futures -6.74% Treasury Bill 10.15% 182 Days Tbill - 2021 SOV 3.39% 91 Days Tbill - 2021 SOV 3.38% 364 Days Tbill - 2021 SOV 3.38% Government Bond 7.49% 5.22% - 2025 G-Sec SOV 3.03% 7.17% - 2028 G-Sec SOV 2.96% 5.15% - 2025 G-Sec SOV 1.50% Corporate Bond 6.22% Reliance Industries AAA 2.40% Power Finance Corporation AAA 1.58% NABARD AAA 1.26% REC AAA 0.95% NTPC AAA 0.02% Commercial Paper 2.98% LIC Housing Finance A1+ 1.49% HDFC A1+ 1.49% Net Cash and Cash Equivalent (including Fixed Deposit) 8.35% Grand Total 100.00% TS CAREFULLY. L SCHEME RELATED D Scheme Benchmark 28.1% 9.8% 6.1% 2.0% 8.5% 9.0% 15.2% 3.3% 0.9% 6.0% 6.8% 4.3% 34.7% 6.1% 8.2% 5.1% 2.8% 5.0% 13.1% 5.0% 3.6% 2.1% 9.8% 4.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Financials Auto Consumer Staples Consumer Discretionary Cement / Building Mat Health Care Information Technology Industrials Utilities Telecommunication Services Energy Commodities