Balanced Advantage Fund · 2019-11-13 · investors maynotgetbackthefull...
Transcript of Balanced Advantage Fund · 2019-11-13 · investors maynotgetbackthefull...
Principal Balanced Advantage Fund is suitable for long term capital growth with lesser volatility in returns by diversifying investments inEquity & Debt markets. When the market are expensive, it reduces allocation to equities and move assets into cash future arbitrage / equityderivatives,debt / money market instruments and vice versa.It is suitable for an investment horizon ofthree years and above.
Top 5 Industry Allocation (as on October 31, 2019) Top 5 Stocks (as on October 31, 2019)
Market Valuation & Investors Response
How Principal Balanced Advantage model works?
Weighted Average PE (Standalone)of Nifty 50 Index
Valuations fromLong Term Perspective
Typical RetailInvestors Response
Fund’sResponse
Less than or equal to 18
Above 18 – Less than or equal to 20
Above 20 – Less than or equal to 22
Above 22 – Less than or equal to 24
Above 24 – Less than or equal to 26
Above 26
Very Attractive
Very Attractive
Attractive
Reasonable
Not Attractive
Overpriced
Indifferent / Cautious
Indifferent / Cautious
Skeptic
Skeptic
Bullish
Bullish
Bullish
Bullish
Positive
Positive
Cautious
Cautious
Disclaimer: The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme Information Documentofthe scheme.The views contained herein are notto be taken as an advice or recommendation to buy or sell any investment or interestthereto.Reliance upon information in this material is atthe solediscretion of the reader.This material should not be relied upon by you in evaluating the merits of investing in any securities or products. Diversification does not guarantee investment returns anddoes not eliminate the risk of loss. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements andinvestors may not get back the full amount invested. Past performance may or may not be sustained in future.The views and strategies described may not be suitable for all investors. Furthermore,whilst it is the intention to achieve the investment objective of the investment product(s), there can be no assurance that those objectives will be met. Investors are advised to consult theirInvestment advisors for determining their risk appetite and TaxAdvisor before taking any investment decision.
What is PE and what does it imply?
Typically, the Price to Earnings or PE is a measure of how theearnings of a company are valued in the market.
Lower PE essentially indicates attractive valuations and vice-versa.
Source: www.nseindia.com,Internal Analysis.
£Formely known as Principal SMART Equity Fund (w.e.f.June 04,2018)
Historical Net Equity Exposure & NIFTY PE (as on October 31, 2019)
PE Bands & Net Equity Allocation
Net Equity P/E Ratio
Weighted Average PE (Standalone) ofNifty 50 Index
Net Equity Component (%)
Less than or equal to 18
Above 18 – Less than or equal to 20
Above 20 – Less than or equal to 22
Above 22 – Less than or equal to 24
Above 24 – Less than or equal to 26
Above 26
80-100
60-80
40-60
30-50
20-40
15-25
We use the month-end Trailing PE Ratio of Nifty 50Index to understand if the market is overvalued orundervalued orfairlyvalued.
Based on the currentvaluation,using a predefined tableof PE levels we add or reduce net equity exposure in theportfolio.
Finance Banks
10.75% 10.70%
Pharmaceuticals
10.11% 8.85% 8.78%
Mutual Fund
October, 2019
An all-weather fund that auto-allocates investments between debt,equity & equity related securities smartly with an aim to help you make the most of any market.
Principal Balanced Advantage FundAn Open-ended Dynamic Asset Allocation Fund
£
`
Consumer
Non Durables
9.63%
8.85%
5.78%
4.89%
4.61%
Dabur India Ltd.
ITC Ltd.
Reliance Industries Ltd.
Aurobindo Pharma Ltd.
HDFC Ltd.
Adani Power Ltd.Petroleum
Products
(% of NAV) (% of NAV)
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Se
p-1
2
Fe
b-1
3
Jul-
13
De
c-1
3
Ma
y-1
4
Oct
-14
Ma
r-1
5
Au
g-1
5
Jan
-16
Jun
-16
No
v-1
6
Ap
r-1
7
Se
p-1
7
Fe
b-1
8
Jul-
18
De
c-1
8
Ma
y-1
9
Oct
-19
Key Statistics (as on )October 31, 2019 Dividend Update
Pastperformance mayormaynotbe sustained inthefuture. * Onfacevalue of 10.`
Note: Pursuant payment ofAll Dividend ( /Unit) figures are Gross Dividend.`
dividend, the NAV of Dividend Option of schemes/plans would fall to the extentof payout and statutory levy,if applicable.
Note: ^ The above measures have been calculated by taking rolling returns for a 3 yearperiod with 5.25% riskfree rate of return (1 days-MIBOR Rate as on October 31,2019).
AUM
`207.83cr.
Sharpe Ratio^(Annualised)
-0.15
StandardDeviation^
(Annualised)
4.15%
Beta^
0.56
Regular Plan
DividendU( / nit*)`
CumDividend
NAV
Date
October 17, 2019 0.0949 13.4700
September 17, 2019 0.0952 13.3600
August 16, 2019 0.0959 13.4800
July 17, 2019 0.0972 13.7500
June 17, 2019 0.1093 13.7900
May 17, 2019 0.1112 14.0900
April 16, 2019 0.1130 14.3400
March 15, 2019 0.1123 14.3300
Investing Facts
Plans: Regular & Direct
Options: Growth & Monthly Dividend (Payout,Reinvestment & Sweep)
MinimumInvestmentAmount:NewInvestor: 5,000 | Existing Investor: 1,000` `
ExitLoad: 0.25%forredemptionswithin7 daysfromthe date ofallotment.
[Note:w.e.f.March 01,2019]
SIP / STP / RWP-Available
Fund Manager
Total work experience of 2 years.5Managing this scheme since ,201July 9
Ravi Gopalakrishnan(For Equity Portion)
Total work experience of 1 years.9Managing this scheme since ,201January 8
Bekxy Kuriakose(For Debt Portion)
Investment Strategy
Equity Investments Fixed Income Investments
Why invest in Principal Balanced Advantage Fund
� This fund is suitable for long term investors seeking equity market participation with lower risk.
� The Fund aims to eliminate the worry of timing entry and exit to and from equity markets for investors.
� It is an all-weather fund with allocations to large cap equities, short term debt and derivatives that aims to deliver superior risk
adjusted returns over market cycles.
� A large cap oriented portfolio.
� Equity stock selection with endeavor to potentially
outperform benchmark in 2-3 years timeframe.
� Active management of the portfolio in response to dynamic
market conditions.
� Flexible rebalancing strategy.
� Average maturity of debt portion is managed similar to a mix
of Low Duration to Short Term debt fund category.
� Endeavors to invest in high quality short term Corporate
Bonds and Money Market Instruments.
� Tactical short term trading exposure to GILTS may be
undertaken.
DISCLAIMER: The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the SchemeInformation Document ofthe scheme.
Performance of Scheme (as on , 201 )October 31 9
Different plans shall have a different expense structure.The performance details provided herein are of Regular Plan-Growth option. Past performance may or may not be sustainedin future. Returns (in %) are calculated on Compounded Annualised Basis (CAGR). PTP (Point to Point) Returns are based on standard investment of 10,000/-made at the beginning$
of relevant period. Performance ofthe dividend option forthe investors would be net of dividend distribution tax,as applicable.
PeriodPrincipal Balanced Advantage Fund
Returns (%) $PTP Returns
1 Year (28-09-2018 to 31-10-2019)
3 Years (30-09-2016 to 31-10-2019)
5 Years (30-09-2014 to 31-10-2019)
Since Inception (16-12-2010 to 31-10-2019)
50% Nifty 100 TRI Index + 35%CRISIL Short Term Bond Index +
15% Nifty Arbitrage Index(Scheme’s Benchmark)
Returns (%) $PTP Returns
Nifty 50 TRI
(Additional Benchmark)
Returns (%) $PTP Returns
2.13 10212.66 12.61 11260.68 15.93 11592.72
4.61 11453.13 9.71 13215.70 12.66 14312.96
5.21 12890.14 8.73 15199.95 8.76 15218.30
8.51 20650.00 9.29 22014.16 9.47 22338.26
Annexure of returns for all schemes managed by fund managers (as on )October 31, 2019
PRINCIPAL Retirement Savings Funds - Progressive Plan3
Benchmark - Nifty 200 Full Marketcap Index - TRI( ly 9)Managing since - Ju 201
PRINCIPAL Retirement Savings Funds - Moderate Plan4
Benchmark - CRISIL Hybrid 35 + 65 - Aggressive Index**Managing since - Ju 201( ly 9)
PRINCIPALRetirementSavingsFunds-ConservativePlan5
Benchmark-30%Nifty50-TRI+70%CRISILLiquidFundIndex( ly 9)Managing since-Ju 201
1 Year return (%) 3 Year returns (%)s 5 Year returns (%)s
Scheme Benchmark Scheme SchemeBenchmark Benchmark
Funds Managed by Mr. Ravi Gopalakrishnan
PRINCIPAL Multicap Growth Fund1
- 00Benchmark Nifty 5 Index - TRIManaging since - Ju 201ly 9
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Balanced Advantage Fund:(An Open-ended dynamic asset allocation fund)
This product is suitable for investors who are seeking~-
� Long term Capital Growth.
� Investment in equity & equity related securities including equity derivatives as well as Debt/Money Marketsecurities through a systematic allocation of Funds between Equity & Debt on the basis of the Price EarningsRatio of Nifty 50.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Past performance may or may not be sustained in future. Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option.Returns (in %) are calculated on Compounded Annualised Basis (CAGR).
Mr.Ravi Gopalakrishnan also manages Principal Balanced Advantage Fund (Equity Portion),Principal Hybrid Equity Fund (Equity Portion)and Principal Multicap Growth Fund,Principal RetirementSavings Fund (Conservative Plan-Progressive Plan-Moderate Plan) and Principal Small Cap Fund (w.e.f.July,2019).
Mr.Ravi Gopalakrishnan also manages Principal Focused Multicap Fund, Principal Dividend Yield Fund,Principal Emerging Bluechip Fund (w.e.f.October 2019).
Ms.Bekxy Kuriakose manages Principal Hybrid Equity Fund-Debt Portion (w.e.f.March 2016).
Mr.Ravi Gopalakrishnan manage Principal Hybrid Equity Fund-Equity Portion,Mr.Bekxy Kuriakose-Debt Portion and Mr.Ashish Aggrawal-Associate Fund Manager (w.e.f.October 2019).�Ms.Bekxy Kuriakose manages Principal Hybrid Equity Fund-Debt Portion (w.e.f.March 2016).
Ms.Bekxy Kuriakose manages Principal Cash Management Fund (w.e.f.May 2019),Principal Low Duration Fund (w.e.f.May 2019),and Principal Ultra ShortTerm Fund (w.e.f.May 2019).1 2 3Formely known as Principal Growth Fund (w.e.f. April 23, 2018) & Formely known as Principal Large Cap Fund (w.e.f. May 10, 2018) , Formely known as Principal Asset Allocation Fund of Funds:Aggressive Plan (w.e.f.June 11, 2018), Principal Asset Allocation Fund of Funds: Moderate Plan (w.e.f.June 11, 2018) & Principal Asset Allocation Fund of Funds: Conservative Plan (w.e.f.June 11,4 5
2018), Formely known as Principal Money Manager Fund (w.e.f.May 16,2018) Formely known as Principal Balanced Fund (w.e.f.June 11,2018).The scheme features of Principal Balanced Fund has6 7
changed (w.e.fJune 11,2018)
** The equity component of CRISILHybrid 35+65-Aggressive Index is represented bytotal returns variant of S&P BSE 200.
Mr.Siddarth Mohta has been appointed as a Associate Fund Manager of Principal Multi Cap Growth Fund (w.e.f.August 2018) and Principal Small Cap Fund (w.e.f.May,2019).¢
5 years performance of Principal Retirement Savings Fund-Progressive,Moderate & Conservative Plan is not given as the scheme have not been in existence for 5 years.
Note: Performance of Principal Small Cap Fund is not given as the scheme has not completed 1 year.
PRINCIPAL Focused Multicap Fund2
Benchmark - S&P BSE 250 Large Midcap Index - TRIManaging since - October 2019
PRINCIPAL Dividend Yield Fund- Nifty Dividend Opportunities 50Benchmark - TRI
Managing since - October 2019
PRINCIPAL Emerging Bluechip Fund-Benchmark Nifty Large Midcap 250 Index - TRI
Managing since - October 2019
Funds Managed by Ms. Bekxy Kuriakose
7.18 7.24 4.75 7.09 6.27 7.46
6.47 7.24 3.72 7.09 5.5 7.460
3.62 13.8 8.62 10.1 9.34 9.470 0
0.07 13.55 2.68 7.38 5.81 8.94
-10.16 9.44 0.71 7.83 3.77 8.32
PRINCIPAL Dynamic Bond Fund- C Composite Bond Fund IndexBenchmark RISIL
Managing since - January 2013
PRINCIPAL Hybrid Equity Fund7
Benchmark - Aggressive IndexCRISIL Hybrid 35+65 - **Managing since - Ma 201rch 6 (Debt Portion)
PRINCIPAL Cash Management FundBenchmark - CRISIL Liquid Fund IndexManaging since - May 2019
PRINCIPAL Low Duration Fund- C Composite Bond Fund IndexBenchmark RISIL
Managing since - May 2019
PRINCIPAL Ultra Short Term Fund6
- CRISIL Liquid Fund IndexBenchmarkManaging since - May 2019
PRINCIPAL Hybrid Equity Fund 7�
Benchmark - Aggressive IndexCRISIL Hybrid 35+65 **Managing since - Ju 201ly 9 (Equity Portion)
14.75 13.41 9.15 11.22 8.39 9.53
8.40 9.00 8.13 9.29 12.10 10.21
7.48 6.54 10.19 10.00 8.87 7.00
04.37 12.1 7.82 10.29 8.83 8.98
4.77 13.11 5.91 11.09 NA NA
0 04.05 13.8 5.09 10.1 NA NA
3.55 10.01 4.42 8.91 NA NA
0 03.62 13.8 8.62 10.1 9.34 9.47