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MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
An open ended equity scheme investing in maximum 30 stocks
across market caps (i.e Multi Cap)
New Fund Offer Opens on: 26 October, 2020
New Fund Offer Closes on: 9 November, 2020
Scheme reopens for continuous sale and
repurchase from: within 5 business days from the
date of allotment
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
What is a Focused Fund?
• A focused fund, as per SEBI Categorization, is an equity scheme consisting of upto 30
stocks, with minimum 65% investment in equity and equity related instruments.
• Can choose to define its own market cap concentration.
Focused Fund Multi Cap Fund (Diversified Fund)
Can hold up to 30 stocksNo such restriction on number of stocks. Usually Multi
Cap Funds hold around 50 stocks in their portfolio
Focused Funds can define their own market cap
concentration and hence has the flexibility to find
suitable opportunities
Effective February 2021, such funds are to hold
minimum 25% in each of large, mid and small cap*
Suitable for medium to long term investors looking for
relatively better risk adjusted return potential
Suitable for medium to long term investors looking for
steady growth
*As per SEBI Circular dated September 11, 2020, the Multi Cap Funds shall be required to maintain exposure of minimum 25% each in large, mid and small cap stocks
within one month from the date of publishing the next list of stocks by AMFI, i.e. January 2021.
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Why A Focused Fund? Additional Diversification May Not Reduce Risk Significantly
Representing a
portfolio of 30 stocks
Representing a
portfolio of 50 stocks
Representing a
portfolio of 100 stocks
Representing a
portfolio of 200 stocks
28.41%26.88% 27.84%
26.73%
32.87%
Std.Deviation of 1 year daily rolling returns
S&P BSE Sensex TRI Nifty 50 TRI Nifty 100 TRI Nifty 200 TRI Nifty 500 TRI
Representing a
portfolio of 500 stocks
Standard Deviation is calculated on Compounded Annualized Growth Returns (CAGR) rolled daily for the study period 1 Jan 2010 – 19 Sep 2020 for respective
benchmark | Data Source: MFI. The data provided above is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard
of capital. Mahindra Manulife Investment Management Private Limited (Formerly known as Mahindra Asset Management Company Private Limited)/Mahindra
Manulife Mutual Fund is not guaranteeing or forecasting any returns. Past performance may or may not be sustained in future.
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Introducing Mahindra Manulife Focused Equity Yojana
A professionally managed agile focused fund that aims to identify the
most potential winning ideas through robust research, focuses on quality
of portfolio and risk management.
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
NFO opens 26 October, 2020
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Reasons to invest in Mahindra Manulife Focused Equity Yojana
Selection of the next potential winners through the GCMV process
High conviction focused portfolio with strong risk management processes
Potential to generate relatively better risk adjusted returns
Refer Slide no. 10 for GCMV Process
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
The Focus is on
High
Conviction
FOCUSED
PORTFOLIO
Active
Management
Flexi Cap
Multi Sector
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Framework for Finding the Winners
• Selection of around 500+ investible ideas from the domestic stock-scape studied by team of analysts
Broad Domestic Stock-scape
• Selection of around 160+ investible ideas out of 500+ ideas through GCMV process
Growth, CashflowManagement and Valuation
filter
• 60+ ideas based on risk return evaluation
• Bottom up fundamental analysisAnalyst Conviction
• Identify and evaluate catalysts to form a portfolio of around 30 stocks
• Active portfolio Management for suitable weights and appropriate entry/exit levels
Refer Slide no. 10 for GCMV Process
Focused
Fund
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Investment Style
Construction of the focused fund portfolio of upto 30 stocks from across market caps considering the following:
• Domestic and global macro economic factors
• Stage of business cycle
• Absolute vs relative valuation
• Assessment of portfolio weight based on liquidity and market cap
And other business factors like:
• Sector’s future growth outlook
• Business outlook (priority to 1-3 years of growth)
• Valuation of stock vs future growth
• Management capabilities and corporate governance
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
GCMV Process
GROWTH
Evaluating the growth
opportunity for the business
Market size
Business Growth
• Geographical Coverage (more
customer)
• Penetration (more
consumption per capita)
• Premiumisation opportunity
(higher quality/valued
products based on income
affordability)
• Global expansion (serving
global customer – quality, cost
competitiveness, natural
advantage)
Profit Growth
• Pricing power
• Cost efficiency
CASHFLOWS
Evaluating the strength of the
business based on Cash Flow
generation
“Free Cash Flow for shareholders”
adjusted for capital needed to
meet growth potential/aspirations
Capital structure: Businesses
with low/ nil debt levels
support higher income
distribution to shareholders
Focus on Cash generation vis
a vis Accounting Profits
Capital efficiency
• Businesses that consume
cash in working capital v/s
those who do not
• Businesses that require low
capex v/s those which require
high capex (initial as well as
maintenance)
Dividends and/or Buybacks
MANAGEMENT
Evaluating the quality of
Management
Management Matrix
• Ability to execute
• Integrity/credibility
Historical actions for
Corporate Governance &
transparency
Value creation and sharing
with shareholders
Related party transactions
VALUATION
Evaluation of key financial
metrics
Historical Value creation
• ROEs / ROCEs
• Asset Turns & Margin
• Peer comparison
Fair value Analysis based on
• Growth
• Cash Flow
• Management
Gap analysis
• What’s priced in vis a vis the
fair value ?
G C M V
ROE: Return on EquityROCE: Return on Capital Employed
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Market Outlook
• India Unlock
• Economy Revival
• Consumer Confidence
• Economy Disconnect
• Valuation
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Scheme Details
Instruments Indicative Allocation (% of assets) Risk Profile
Minimum Maximum High/Medium/Low
Equity and Equity related Securities$^ 65 100 High
Debt and Money Market Securities
(including TREPS (Tri-Party Repo),
Reverse Repo)
0 35 Low to Medium
Units issued by REITs & InvITs 0 10 Medium to High
$ Subject to overall limit of 30 stocks across market capitalization.
^ including derivative instruments to the extent of 50% of the Net Assets of the Scheme. Investment in derivatives shall be for hedging, portfolio balancing and such
other purposes as maybe permitted from time to time under the Regulations and subject to guidelines issued by SEBI/RBI from time to time. For Detailed Asset
Allocation refer SID/KIM available online at www.mahindramanulife.com or visit nearest ISC
Benchmark: NSE 500 Index TRI
Fund Manager: Krishna Sanghavi
• Concentrated agile portfolio of upto 30 stocks
• Selection of potential winners from across market cap and sectors through research
• Adequate Quality and Risk Management
Highlights
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
• Regular
• Direct (D)Available Plans for subscription
by investors
• Growth (D)
• DividendAvailable Option under each
plan
• Dividend Payout
• Dividend Reinvestment (D)Available Facilities under
Dividend option
Exit Load:
-An Exit Load of 1% is payable if Units are redeemed / switched-out upto 1 year from the date of allotment;
-Nil if Units are redeemed / switched-out after 1 year from the date of allotment.
Minimum Purchase/ Additional
Purchase Amount
Mimimum Redemption/
Switch-out Amount
Minimum Switch-in Amount
Rs. 1,000/- and in multiples of Re.
1/- thereafter
Rs. 1,000/- or 100 units or
account balance, whichever is
lower
Rs. 1,000/- and in multiples
of Re. 0.01/- thereafter
D- Default
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
This product is suitable for Investors who are seeking*:
• Long term capital appreciation;
• Investment in equity & equity related instruments in a concentrated portfolio of maximum 30 stocks across market capitalization.
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Investors understand that their principal will be at moderately high risk
MAHINDRA MANULIFE FOCUSED EQUITY YOJANA
Disclaimer
The views expressed here in this presentation are for general information and reading purpose only and do not constitute anyguidelines and recommendations on any course of action to be followed by the reader / user of this presentation. No representationor warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The views arenot meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale ofany financial product or instrument or mutual fund units for the reader / user. This presentation has been prepared on the basis ofpublicly available information, internally developed data and other sources believed to be reliable. While utmost care has beenexercised while preparing this presentation, Mahindra Manulife Investment Management Private Limited [Formerly known asMahindra Asset Management Company Private Limited] (MMIMPL) does not warrant the completeness or accuracy of theinformation and disclaims all liabilities, losses and damages arising out of the use of this information. The data/statistics, whereverprovided, are given to explain general market trends in the securities market, it should not be construed as any researchreport/research recommendation. Readers / users of this presentation should rely on information / data arising out of their owninvestigations and are advised to seek independent professional advice and arrive at an informed decision before making anyinvestments. Neither Mahindra Manulife Mutual Fund, MMIMPL nor Mahindra Manulife Trustee Private Limited (Formerly known asMahindra Trustee Company Private Limited), its directors or associates shall be liable for any damages that may arise from the useof the information contained herein.
For detailed asset allocation, investment strategy, scheme specific risk factors and more details, please read the SchemeInformation Document and Key Information Memorandum of Mahindra Manulife Focused Equity Yojana available at theISCs of MMIMPL and Computer Age Management Services Limited and are also available on www.mahindramanulife.com.Past performance may or may not be sustained in the future and should not be used as a basis for comparison with otherinvestments.
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