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    Birla Sun Life MNC Fund: Retail Research

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    umagan
    Birla Sun Life MNC Fund has consistently outperformed peers and benchmarks over several time periods. It invests primarily in MNC stocks with a parent company holding of over 25% or combined FII and MNC holding of over 50%. MNCs offer stable growth through global expertise and brand loyalty. The fund has outperformed the Equity Diversified category and indices since 2008, containing losses well in down markets while capturing upside in up markets. Over one, three and five year periods, the fund returned -6%, 29% and 23% respectively versus benchmarks of -15%, 17% and 18%.

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    Birla Sun Life MNC Fund: Retail Research

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    umagan
    51 views9 pages
    Birla Sun Life MNC Fund has consistently outperformed peers and benchmarks over several time periods. It invests primarily in MNC stocks with a parent company holding of over 25% or combined FII and MNC holding of over 50%. MNCs offer stable growth through global expertise and brand loyalty. The fund has outperformed the Equity Diversified category and indices since 2008, containing losses well in down markets while capturing upside in up markets. Over one, three and five year periods, the fund returned -6%, 29% and 23% respectively versus benchmarks of -15%, 17% and 18%.

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    Birla Sun Life MNC Fund has consistently outperformed peers and benchmarks over several time periods. It invests primarily in MNC stocks with a parent company holding of over 25% or combined FII and MNC holding of over 50%. MNCs offer stable growth through global expertise and brand loyalty. The fund has outperformed the Equity Diversified category and indices since 2008, containing losses well in down markets while capturing upside in up markets. Over one, three and five year periods, the fund returned -6%, 29% and 23% respectively versus benchmarks of -15%, 17% and 18%.

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    © All Rights Reserved
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    Download as pdf or txt
    51 views9 pages

    Birla Sun Life MNC Fund: Retail Research

    Uploaded by

    umagan
    Birla Sun Life MNC Fund has consistently outperformed peers and benchmarks over several time periods. It invests primarily in MNC stocks with a parent company holding of over 25% or combined FII and MNC holding of over 50%. MNCs offer stable growth through global expertise and brand loyalty. The fund has outperformed the Equity Diversified category and indices since 2008, containing losses well in down markets while capturing upside in up markets. Over one, three and five year periods, the fund returned -6%, 29% and 23% respectively versus benchmarks of -15%, 17% and 18%.

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    of 9

    RETAIL RESEARCH

    MUTUAL FUND SCHEME ANALYSIS

    23 Feb 2016

    Birla Sun Life MNC Fund

    RETAIL RESEARCH

    Page |1

    RETAIL RESEARCH
    Key Points:

    Unit Growth of investments Vs. Benchmark

    (Rebased to 100)

    Birla Sun Life MNC Fund is one of the consistently better performing schemes from Equity oriented
    categories in the Indian mutual funds industry. The scheme invests primarily in the MNC stocks that are
    either listed Indian arm of global companies where the MNC parent holds more than 25%, or where
    there is a substantial FII and MNC parent combined holding that adds up to over 50%.
    Multinational corporations (MNCs) are enterprises which manage production or deliver services in more
    than one country. MNCs in India are attracted towards the countrys large market potential, business
    opportunity by virtue of its sheer size and growth, labour competiveness, increasing purchasing power
    and emerging as the manufacturing and sourcing location of choice for various industries.
    Most of MNCs in India operate mainly in the field of FMCG and pharma spectrum. However, they
    operate in niche segments, bring in global expertise and offer consistent growth. These companies are
    perceived to offer better products and enjoy brand loyalty. Most MNCs have strong cash balances, high
    dividend payout ratios, low debt-to-equity ratios and healthy return ratios. Even as domestic stocks
    witnesses significant gyrations, the MNC stocks remain a more stable lot as they fall less during volatile
    markets.
    There are two schemes - UTI MNC and Birla SunLife MNC coming under the category. Performance of the
    MNC funds has been commendable as they managed to deliver higher risk adjusted returns with lower
    risk. They outperformed the Equity Diversified category and broader indices with huge margin since
    2008. Further, the performance of the category during down cycles was impressive as they managed to
    contain their losses very well compared to Equity Diversified funds. They performed very well in
    capturing the upside in bull markets as well.

    Fund Performance Vis-a-vis Benchmark (Excess return):

    The scheme registered -6%, +29% and +22% of CAGR returns for one, three and five year periods while
    the benchmark Nifty MNC posted -15%, +17% and +18% of returns respectively. For the same period,
    the peer scheme UTI MNC clocked -7%, +25% and +20% of returns respectively.
    Portfolio: Maruti Suzuki India Ltd, Bosch Ltd and Bayer CropScience Ltd are the stocks that topped in its
    latest portfolio having weights of 8.2%, 8.02% and 7.58% to its net assets respectively. In the last six
    month period, the scheme added 2 new stocks and exited from one stock. The Turnover ratio of the
    scheme stood at 8%.
    The expense ratio of 2.48% for the scheme is lower compared to its peer that of 2.60%. The corpus of the
    scheme as per latest data (Jan 2016) was at Rs. 2,916 crore. The scheme is managed by Mr. Ajay Garg
    (6.7 years).
    As far as risk measures are concerned, the scheme seems to be slightly higher while compared to peer as
    it generated 18.16% (category 17.18%) of Annualized Standard Deviation that generated for last 3 years
    period.

    RETAIL RESEARCH

    Page |2

    RETAIL RESEARCH
    Relative performance of the Scheme:
    Point to Point and Rolling returns of the scheme versus peers and benchmarks over the various time frames:
    Latest
    Total No of
    Expense
    Corpus (Rs
    Equity
    Ratio (%)
    Crs)
    Holdings

    Scheme's
    Age (Yrs)

    Benchmark

    Birla Sun Life MNC Fund - B (G)

    21.79

    Nifty MNC

    2916

    46

    UTI-MNC Fund (G)

    17.78

    Nifty MNC

    1729

    46

    Scheme Name

    Trailing Returns (%)

    Rolling Returns (%)

    Standard
    Deviation
    (Annualised)

    1 Year
    CAGR

    3 Years
    CAGR

    5 Years
    CAGR

    7 Years
    CAGR

    6 Month
    Absolute

    1 Year
    CAGR

    2 Years 3 Years
    CAGR
    CAGR

    2.48

    -6.35

    28.71

    21.85

    30.28

    11.67

    26.16

    20.75

    18.39

    18.16

    2.60

    -7.46

    25.14

    19.70

    26.17

    10.14

    22.76

    18.84

    16.95

    17.18

    Nifty 50

    -18.56

    6.76

    5.50

    13.50

    4.48

    10.72

    9.62

    10.19

    Nifty MNC

    -14.65

    16.78

    8.29

    20.75

    20.24

    20.06

    Benchmarks:

    3 Year Rolling returns generated from 5 Yrs historical NAV & calculated for multiple periods:

    The above chart shows the consistent performance of the Birla SL MNC across the periods.
    Rolling returns that calculated from multiple periods could show the clear picture that how
    consistently the schemes showed better returns.

    RETAIL RESEARCH

    Relative performance during various market cycles:

    Birla SL MNC showed better performance in all the market cycles.

    Page |3

    RETAIL RESEARCH
    Portfolio Positioning:
    Portfolio Market cap break-up over periods:

    Top ten stocks held by the scheme:

    Portfolio Sector break-up of the scheme over periods:

    Riskometer:

    RETAIL RESEARCH

    Page |4

    RETAIL RESEARCH
    Category Performance:
    Risk as measured by Standard Deviation (Ann) calculated from last 3 Yrs periods:

    Year on Year performance of the Major categories in Equity Oriented Mutual Funds:

    RETAIL RESEARCH

    Page |5

    RETAIL RESEARCH
    Relative performance of the Sector indices based on the 3 year rolling returns that calculated from 5 years NAV history for multiple set of periods:

    Rolling returns that generated from multiple periods would give us a clear picture on the consistency of the schemes on generating the returns historically. The chart shown above
    is plotted from the 3 year rolling returns data that calculated from the 5 years NAV history.

    RETAIL RESEARCH

    Page |6

    RETAIL RESEARCH
    Relative performance of the sector indices based on year on year returns (calendar year):

    RETAIL RESEARCH

    Page |7

    RETAIL RESEARCH
    Relative performance of the sector indices based on various equity market cycles:

    RETAIL RESEARCH

    Page |8

    RETAIL RESEARCH

    Analyst: DhuraivelGunasekaran ([email protected])

    Source: NAVIndia.com& ACEMF

    RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
    HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email:
    [email protected].
    Disclaimer: Mutual Funds investments are subject to risk. Past performance is no guarantee for future performance.This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not to be reported or
    copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as
    such. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment banking, or other services for, any company mentioned in this document. This report is intended for non-Institutional
    Clients.
    This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry prices and/or other parameters mentioned in this document may or may not match or may be contrary with those of the other Research teams
    (Institutional, PCG) of HDFC Securities Ltd. HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475.

    RETAIL RESEARCH

    Page |9

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