360 One Flexi Cap Fund
Recently launched fund, 360 One Flexi cap Fund invests primarily in equity and equity-related instruments. As per the name, this fund flexibly invests across Large, Mid and Small size companies. It is an open-ended dynamic equity scheme investing across large, mid, and small-cap stocks.
Investment Objective
The investment objective of the scheme is to generate long-term capital appreciation by primarily investing in equity and equity-related securities across the entire market capitalization range and investing the remaining portion in debt and money market instruments. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved
Asset Allocation
The investment policies of the Scheme shall be as per SEBI (Mutual Funds) Regulations, 1996, and within the following guidelines. Under normal market circumstances, the investment range would be as follows:
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*Equity Related Instruments include convertible debentures, convertible preference shares, warrants carrying the right to obtain equity shares, equity derivatives and such other instruments as may be specified by the Board from time to time.
Investment Strategies
The Scheme will invest in stocks with no market cap bias across market capitalisation. The Scheme will follow a bottom-up approach to stock-picking and choose companies across sectors/styles without any discrimination.
The scheme intends to follow SCDV Framework along with internal (financial analysis, corporate governance checks, risk reward evaluation, etc) and external analysis (conferences, investor presentations, management interaction, primary visits across supply chain, etc) for security selection.
The critical investment framework is illustrated in the diagram below. Securities are classified into 4 categories based on their PAT (Profit After Tax) growth and ROE (Return on Equity).
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Secular: Companies delivering 15% PAT and ROE growth rates, playing out India’s secular upward growth shift e.g. financial services, consumer discretionary, auto and auto ancillaries.
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Cyclicals: High-growth companies typically have high capital expenditures and hence a lower ROE e.g. Infrastructure, logistics, capital goods. These have a relatively higher sensitivity to business and economic cycles.
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Defensive: Companies that have high ROE and lower growth rates, low capital expenditures and sensitivity to business cycles, but that provide a cushion to returns during downturns e.g. consumer staples, and healthcare.
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Value Traps: Companies that register low growth rates and ROE, which are typically avoided across public equity strategies
Strategies for Investment in Derivatives
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Index Futures
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Buying Options
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Index Arbitrage
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Cash Futures Arbitrage
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Hedging and Alpha Strategy
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Other Derivative Strategies
Debt Derivatives
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Interest rates swaps and forward agreements
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Interest rate Futures
BENCHMARK INDEX
The performance of this Scheme is benchmarked against the S&P BSE 500 TRI. S&P BSE 500 TRI is a broad-based index and its composition broadly represents the Scheme’s investment universe.
Fund Manager
Mr Mayur Patel has over 16 years of work experience including investment management and research experience of more than 10 years. Prior to joining 360 ONE Asset Management Limited (Formerly known as IIFL Asset Management Limited), he managed equity portfolios of DSP BlackRock Equity Savings Fund and MIP Fund at DSP BlackRock Investment Managers (a joint venture between BlackRock and the DSP Group in India). Mr Patel joined DSP BlackRock in 2013 as an Equity Analyst responsible for the origination and dissemination of ideas across energy, industrial and utilities sectors. Earlier, he was associated with Spark Capital as Lead Analyst, Energy in their Institutional Equities division and worked with Tata Motors and CRISIL. He is a Chartered Accountant and a CFA charter holder.
Mr Patel is also managing 360 ONE Focused Equity Fund (Formerly known as IIFL Focused Equity Fund) scheme for 360 ONE Mutual Fund (Formerly known as IIFL Mutual Fund).
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