FUND INSIGHT

IDFC PREMIER EQUITY FUND

AUGUST 2014

Fund Features:
Nature: Equity
Average AUM (Apr-Jun): `4307.46 Crores
Inception Date: 28 September 2005
Fund Manager: Mr. Kenneth Andrade
(Since June 2006)
This product is suitable for investors who are seeking*:
= Create wealth over a long period of time
=Investment predominantly in equity and equity related
instruments across market capitalisation
= High Risk ( < ) Brown
Premier is a diversified equity fund that invests across market caps. The
fund follows a buy and hold strategy, invests in companies that are at an
early stage in their economic cycle. It attempts to capture shifts in the
business environment and growth in companies.
OUTLOOK
Market has reacted positively post NDA victory in general elections. The
expectations are high from the new government to remove bottlenecks.
Going forward returns will be dependent on actual polices by government
and on-ground execution by businesses. However, we must add that the
rising market has given a much needed opportunity to many high leveraged
companies to recapitalize themselves and increase in equity funding will go a
long way in stabilizing these companies.

Market focus going forward will shift to execution as valuation driven gains are
mostly behind us. Our portfolios are driven by underlying fundamentals of the
business and we continue to follow the same principles. We continue to invest
in companies which have best in industry operating matrix and scalable
business model with low/no leverage, companies that we believe will be able
to execute well and can participate in the growth story of the country.

CURRENT STRATEGY
IDFC Premier Equity Fund has built a portfolio of companies catering to the
domestic economy. This is where our biggest opportunity lies. Demographics
are our biggest strength, which is where our bias has always been. Over the
next year or two we will continue to see corporate India deleveraging its
balance sheet and throwing out cash flows. On the other hand the consumer
will see leverage grow. The latter is very structural in nature and we would see
this trend play out for a long period of time. This is why as a fund we have
chosen to stay with the domestic opportunities and not spread ourselves thin
across multiple sectors. Our approach to selection of companies has not
changed, over the years we have been allocating to consolidators, cash flow
positive businesses and companies with low debt, when we put all this
together we have a portfolio of market leaders with deleveraged businesses
who could leverage into the next cycle.

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: Risk may be represented as: Investors understand that their principal will be at Low risk < (Blue), Investors understand that their principal will be at Medium risk
< (Yellow), Investors understand that their principal will be at High risk<(Brown).
Other Parameters: PORTFOLIO (31 July 2014)

Beta: 0.84 Name % of NAV Industry

R Square: 0.83 Kaveri Seed Company 6.34 Consumer Non Durables

Page Industries 5.98 Textile Products
Standard deviation: 4.99%
VA Tech Wabag 5.24 Engineering Services
Benchmark: S&P BSE 500 Bata India 3.72 Consumer Durables

Minimum Investment Amount: Blue Dart Express 3.56 Transportation

`10,000/- Asian Paints 3.36 Consumer Non Durables

Exit Load: 1.00% if redeemed before 365 Container Corporation of India 3.34 Transportation
days
Vardhman Textiles 3.20 Textiles - Cotton
SIP Frequency: Monthly (any day of the SKS Microfinance 3.13 Finance
month)
Maruti Suzuki India 2.56 Auto
Options Available: Growth, Dividend Gujarat State Petronet 2.56 Gas
(Payout, Reinvestment and Sweep (from
Equity Schemes to Debt Schemes only)) Greaves Cotton 2.37 Industrial Products
Titan Company 2.36 Consumer Durables
MRF 2.15 Auto Ancillaries
Zee Entertainment Enterprises 2.15 Media & Entertainment
Top 15 Equity 52.01
Other Equity 37.88
Zee Entertainment Enterprises 0.12 Media & Entertainment
Preference Shares 0.12
Certificate of Deposit 0.46
Commercial Paper 5.01
Call 0.67
Net Current Asset 3.85
Grand Total 100.00

SECTOR ALLOCATION
20.00%
16.16%
16.00%

12.00%
6.63% 5.98%
6.90% 6.46% 5.46%
8.00%
5.79% 5.24% 3.17% 3.10% 2.56%
4.00% 3.20% 3.10% 2.56% 2.34% 1.94% 1.78% 1.22% 0.97%
1.86% 1.70% 1.04% 0.74%
0.00%
Transportation

Textiles - Cotton

Trading

Retailing
Consumer Non Durables

Banks
Finance

Consumer Durables

Textile Products

Auto Ancillaries

Industrial Products

Engineering Services

Software

Industrial Capital Goods

Gas
Auto

Fertilisers

Chemicals

Telecom - Equipment & Accessories

Ferrous Metals
Media & Entertainment

Construction Project
Power

Risk Factors: MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.