Townhall Presentation - Fundsupermart...IDFC Sterling Equity Fund (SEF) Fund and IDFC Premier Equity Fund is the name of the Schemes and do not in any manner indicate either the quality

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Townhall Presentation

IDFC Sterling Equity FundOur Mid Cap Fund

Celebrating

What creates wealth?

Large capMid capSmall cap

What creates wealth?

Large capMid capSmall cap

Good businesses create wealth

Strong Cash Flows

High Return

on Capital employed

Strong

competitive position

Low leverage

Good

Businesses

Sterling - Focuses on Good Businesses

Represents all CNX Midcap sectors and within that there is active stock selection

Actively builds a portfolio of companies with proven business model

Focuses on identifying structural changes in the environment and aligns companies based

on their valuations

We started playing Consumption

Cyclicality of Indian Markets

Consumption

• Marginally positive on consumption, cautious on valuations

• Pressure on discretionary spends

Investments

• Tracking investment economy to capture growth in revenue through policy

initiatives

• Track enhanced PSU spending in the current cycle

• Focus on companies that are improving their cash flows

• Improvement in the NPA cycle should lead to enhanced profit growth.

• PSU banks to take advantage of falling interest rate scenario

Outsourcing

• Pharma sector gaining from strong underlying demand in developed markets

• Neutral on IT sector.

Equity Strategy Across Categories Going Forward

Sterling - Across Cycles

0

5

10

15

20

25

CNX Midcap S&P BSE Sensex Sterling NAV

7-Mar-08 8-Mar-13

Growth of

20.7%

Growth of

23.21%

Growth of

109.79%

7-Mar-08 8-Mar-13 Absolute Growth

CNX Midcap 6501 7847 20.70%

S&P BSE Sensex 15976 19683 23.21%

Sterling NAV 10 20.98 109.79%

Sterling grew approx 5 times the Benchmark

Source: www.mutualfundsindia.com

As on 7th March 2013

* All Equity Schemes available on 19th Mar 2008 which are not arbitrage/sector/index/global/ELSS

Sterling - Relative Performance

Count Average Returns AUM (Crs)

Equity Universe 150 6.33% 137897

Mid Cap Funds 27 7.47% 15877

Large Cap/Diversified Funds 123 6.08% 122020

Sterling 16.23% 1395

-5

0

5

10

15

20

25

30

35

1 Year 2 Years 3 Years 4 Years 5 years

IDFC Sterling Equity Fund CNX Midcap Index Midcap Funds - Average

Sterling - Risk Return Profile

Source: www.mutualfundsindia.com

*Returns – Average of rolling returns (Absolute) as on 7th Mar’13

25%

50%

87%

144%

0%

20%

40%

60%

80%

100%

120%

140%

160%

1 year 2 years 3 years 4 years

Risk Return(Absolute)

Returns Risk (Std Dev)

Sterling – Portfolio Strategy

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sep 2008 Mar 2009 Sep 2009 Mar 2010 Sep 2010 Mar 2011 Sep 2011 Mar 2012 Sep 2012

Banking and Finance Consumer Investments Outsourcing

IDFC Sterling Equity Fund IDFC Premier Equity Fund

• A Midcap Fund • An Unrestricted diversified equity fund

• Benchmark CNX Midcap • Benchmark BSE 500

• Representation of all CNX Midcap sectors • Can play sector concentration

• Average Market Cap: 12,643 Cr • Average Market Cap: 21,168 Cr

Sterling - Myth Breakers

Two distinct funds from the same Fund Manager

Premier Holdings Market Cap (crs.)

HDFC Bank Ltd 148,350

State Bank of India

GAIL (India) Ltd

Asian Paints Ltd

Bosch Ltd

Punjab National Bank

United Spirits Ltd

Zee Entertainment Enterprises Ltd 20,901

Siemens Ltd

Shriram Transport Finance Company Ltd

Container Corporation of India Ltd

Tata Chemicals Ltd

Procter & Gamble Hygiene and Health Care Ltd

Muthoot Finance Ltd

Torrent Power Ltd

Coromandel International Ltd

Blue Dart Express Ltd 5,431

MRF Ltd

Bata India Ltd

Trent Ltd

Page Industries Ltd

Gujarat State Petronet Ltd

Redington (India) Ltd

Jyothy Laboratories Ltd

FAG Bearings India Ltd

PTC India Ltd 1,936

Arvind Ltd

Kaveri Seed Company Ltd

Cox & Kings Ltd

Gateway Distriparks Ltd

Tilaknagar Industries Ltd 789

Average Market Cap 21,168

Sterling Holdings Market Cap (crs.)

NMDC Ltd 54,336

Nestle India Ltd

Idea Cellular Ltd

Jindal Steel & Power Ltd

Godrej Consumer Products Ltd

Wockhardt Ltd

Yes Bank Ltd

Castrol India Ltd 15,826

Glenmark Pharmaceuticals Ltd

Divi's Laboratories Ltd

Cummins India Ltd

Bajaj Finance Ltd

ABB Ltd

Union Bank of India

Apollo Hospitals Enterprise Ltd

Mahindra & Mahindra Financial Services Ltd

Hindustan Petroleum Corporation Ltd

Syndicate Bank

Allahabad Bank

Strides Arcolab Ltd 5,412

Amara Raja Batteries Ltd

The Phoenix Mills Ltd

Bank of Maharashtra

Dena Bank

Wabco India Ltd

BASF India Ltd

Hexaware Technologies Ltd

United Bank of India

Eclerx Services Ltd

Vardhman Textiles Ltd

Eros International Media Ltd

VA Tech Wabag Ltd

Innoventive Industries Ltd

Kirloskar Pneumatic Co.Ltd

RSWM Ltd 243

Average market Cap 12,643

as on 28th Feb 2013

Thank You

Risk Factors: Mutual Funds and securities investments are subject to market risks, reinvestment risk, changes in political, economic

environment and government policy and there is no assurance or guarantee that the objectives of the Scheme/s will be achieved. The NAV of the

Scheme/s can go up or down depending on factors and forces affecting the Securities Market including fluctuation in interest rates, trading volumes

and reinvestment risk. Past performance of the Sponsor/AMC/Mutual Fund is not necessarily indicative of the future performance of the Scheme/s

and may not necessarily provide a basis for comparison with other investments. IDFC Sterling Equity Fund (SEF) Fund and IDFC Premier Equity

Fund is the name of the Schemes and do not in any manner indicate either the quality of the Schemes, their future prospects or returns. The Sponsor

or any of its associates is not responsible or liable for any loss resulting from the operation of the Schemes beyond the corpus of the Trust of Rs. 30,000/-.

Terms of Issue & Load Structure: IDFC SEF & IDFC PEF: During the continuous offer the AMC calculates and publishes NAVs and offers for sale and

redemption of units of the Scheme on all Business days. Entry Load – Nil Exit Load IDFC-SEF: The scheme is converted into open ended scheme w.e.f.

September 11, 2009. After then during the Ongoing Offer Period load will be charged as follows: If redeemed within 1 year from the date of purchase(s) applying

First in First out basis (including purchase made through the STP/SIP) -1.00%.No exit load /CDSC will be chargeable in case of switches made between

different options of the schemes. IDFC PEF: During the continuous offer the AMC calculates and publishes NAVs and offers for sale and redemption of units of

the Scheme on all Business days. IDFC PEF: For all the equity schemes (other than IDFC Arbitrage Fund, IDFC Arbitrage Plus Fund and ELSS Schemes of

IDFC): All investment including SIP/STP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment-1%. No Entry Load/ Exit

Loads/CDSC shall be chargeable in case of switches made between different options of the scheme. Investment Objective: IDFC-SEF: The investment

objective of the Scheme is to seek to generate capital appreciation from a diversified portfolio of equity and equity related instruments. The Scheme will

predominantly invest in small and midcap equity and equity related instruments. Small and Midcap equity and equity related instruments will be the stocks

included in the CNX Midcap index or equity and equity related instruments of such companies which have a market capitalization lower than the highest

components of CNX Midcap Index. The Scheme may also invest in stock other than mid cap stocks (i.e. in stocks, which have a market capitalization of above

the market capitalization range of the defined small midcap stocks) and derivatives. On defensive consideration, the Scheme may also invest in debt and money

market instruments. However there is no assurance that the investment objective of the scheme will be realized. IDFC PEF: The Scheme shall seek to generate

long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments. However there is no assurance that the

investment objective of the scheme will be realized. Statutory Details: IDFC Mutual Fund has been set up as a trust by Infrastructure Development Finance

Company Limited (IDFC) (liability restricted to corpus of Trust of Rs. 30,000) with IDFC AMC Trustee Company Ltd as the trustee and IDFC Asset Management

Company Ltd as the investment manager. Investors in the scheme(s) are not being offered any guaranteed or assured rate of return. Copy of Scheme

Information Document and Key Information Memorandum along with application form for all the schemes may be obtained from the office of IDFC Mutual

Fund, One India Bulls Centre, 841, Jupiter Mills Compound, Senapati Bapat Marg,, Elphinstone Road, (West), Mumbai 400 013. Contact 1-800-226622 for

details.

For details please read the respective Scheme Information Document (SID) (including those of FMPs)/ Offer Document (OD) / Statement of Additional

Information (SAI) carefully before investing.