FUND PHILOSOPHY*

IDFC Focused Equity Fund is an equity oriented fund investing across the market cap curve. It holds a concentrated portfolio comprising of a mix of core and tactical ideas limited to a maximum of 30 stocks. The core portfolio of the fund primarily invests in businesses that are growth oriented and have superior quality characteristics. The tactical part of the portfolio largely comprises of businesses that have the potential to turnaround driven by change in internal/external environment.
Under the newly defined SEBI scheme classification, IDFC Focused Equity Fund is categorized under “Focused” Funds. At an industry level, while these funds are classified as “Focused”, their market cap orientation is not defined clearly and by this nature they are also “Multi-Cap”.

     OUTLOOK

• With the spread of the pandemic and the lockdown during Q1 FY21, earnings for the year FY21 were sharply downgraded.

• However, the swifter than expected economic recovery led to a more robust Q2 FY21.

• Upgrades exceeded downgrades 3x, a rarity, after years of earnings disappointment.

• FY21 estimates, quickly rebounded from negative to positive territory, despite the Q1 debacle.

• The fall during Mar’20 lasted less than 35 trading days, erasing between 36-43% across the indices – Large, Mid and Small Caps. Supportive action from Central Banks was quicker.

• As investors searched for stable earnings, rotation from one sector to another, as exhibited from Apr-Dec’20 phase was evident.

• Staples after outperforming in Mar-Apr, have underperformed since then. Pharma and IT services outperformed during May-Sept; Banks/NBFC, after underperforming from Mar-Sept,20; outperformed during Oct-Dec’20.

• After the debacle of Mar’20, Small caps outshone the rest of the market – for the first time since CY17.

• If economic recovery is robust and RBI does not move aggressively into high real interest zone, Small caps could benefit the most.

     FUND FEATURES: (Data as on 31st December'20)

Category: Focused
Monthly Avg AUM: Rs1,455.47 Crores
Inception Date: 16th March 2006
Fund Manager:
Mr Sumit Agarwal (w.e.f 20/10/2016)
Other Parameters:
Beta: 0.91
R Square: 0.90
Standard Deviation (Annualized): 21.80%
Benchmark: S&P BSE 500 TRI (w.e.f 11/11/2019)
Minimum Investment Amount: Rs5,000/- and any amount thereafter.
Exit Load: • If redeemed/switched out within 365 days from the date of allotment:
➧ Upto 10% of investment:Nil,
➧ For remaining investment: 1% of applicable NAV.
• If redeemed / switched out after 365 days from date of allotment: Nil. (w.e.f. May 08, 2020)
Minimum SIP Amount: Rs1,000/-
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))

PORTFOLIO

(31 December 2020)

     SECTOR ALLOCATION

     RISKOMETER