IIFL Asset Management was the first to introduce Alternative Investment Funds (AIF) in India. Their alternative funds go beyond the conventional investment market and embrace unique possibilities regardless of borders.AIFs provide their investors with the opportunity to get off the track and invest in securities that are not open to the general public. Real estate, venture capital, hedge funds, commodities, pre-IPO placements, and derivative contracts can all help diversify a portfolio, reduce risk, and increase returns. AIFs can invest in listed equities, but the structure allows for investments in securities that are not available through a mutual fund platform.
|Year of Inception||2014|
|Number of Stocks||29|
|Investment Horizon||Long Term|
- IIFL Multi Cap PMS uses an intriguing and informative mechanism to dissect markets based on precisely this math, namely corporate earnings.
- Seculars is the best basket for investors looking for a low-risk, low-return investment.
The key investment framework of IIFL AMC is very intriguing. All BSE 200, a free float weighted index of 200 Indian companies listed on the Bombay Stock Exchange. Companies are divided into four categories predicated on their PAT (Profit After Tax) growth and ROE (Return on Equity).
Most investee companies fall into the Secular, Cyclical, Defensive, and Value Trap categories.
- Secular: Companies with PAT and ROE growth rates of 15% or higher, reflecting India’s secular upward growth shift, such as financial products, consumer discretionary, auto and auto components.
- Cyclicals: High-growth companies with high capital spending and thus a lower ROE, such as infrastructure, logistics, and capital goods. These are more susceptible to economic and business periods.
- Defensive: Companies with a high ROE and lower growth rates, low capital expenditures, and attentiveness to business cycles provide a cushion to returns during downturns such as consumer staples and healthcare.
- Value Traps: These companies with low growth rates and ROE are typically avoided in public equity strategies.
Diversified public equity schemes usually favour companies in the secular quadrant and alternate between cyclical and defensives predicated on the macroeconomic viewpoint.
IIFL Multicap Advantage adheres to strict criteria to build a stock model portfolio. As detailed below, the stock selection process is based on internal and external analysis.
Components of Internal Analysis
Screening and financial analysis
Financial screens, which include basic value, asset value, and momentum parameters, are maintained by research analysts (RAs). Thresholds are established based on industry parameters and are regularly monitored. Screens assist analysts in gaining a preliminary understanding of a company’s positioning concerning its peers.
Checks for corporate governance
Various factors and sources are used to verify corporate governance practises, including IIFL group reference checks, primary briefings and channel checks, and governance scorecards created by independent agencies. Furthermore, analysts use internal models and forensic analysis to assess the data quality over five years.
Each stock under coverage has a comprehensive checklist divided into five key sections. These are listed below.
- Industry Analysis: Size and potential of the industry; External challenges and opportunities ahead.
- Management: Background, record, alignment, and capital management history.
- Competitive Landscape: SWOT, market share, and competitive advantages comprise the competitive landscape.
- Statutory Requirement: Key variables to keep an eye on regularly.
- Profitability or valuations: Financial variants are used to forecast future profits and relative valuations compared to domestic and international firms.
Evaluation of Risk-Reward And Safety Margin
Analysts predict the highest downside against each of their coverage stocks and the potential upside. While the upside is typically based on future earnings and performance, the downside is calculated using a base multiple (worst case based on the previous 10-year average) to current earnings or book value.
One of the key parameters regarded by the analyst when making recommendations is the upside-to-downside ratio.
Pitches for Stock
During the weekly all-day sessions, analysts create a detailed stock pitch outlining their corporation findings and trying to explain their investment thesis. The pitch leads to a detailed discussion with the entire team, which assists the analyst in getting feedback on his or her findings and recommendations.
Low Beta PMS which has an in-built put option
About Fund Managers
Anup Maheshwari : Chief Investment Officer and Whole-Time Director, IIFL Asset Management
Anup Maheshwari as Chief Investment Officer and Whole-Time Director of IIFL Asset Management. Anup is liable for the investment and strategy for IIFL AMC’s business including collective finances and Indispensable Investment Finances (AIFs). He plays a crucial part in meeting the company’s aggressive growth pretensions as well as product development and contriving an innovative investment strategy.
An alumnus of the Indian Institute of Management, Lucknow, he has over 25 times of work experience in the financial services sector. Prior to joining IIFL Asset Management Limited, he has been associated with DSP Investment Directors Private Limited ( formerly known as DSP BlackRock Investment Directors Private Limited) over 21 times as an Administrative Vice President & Chief Investment Officer. He was also associated with HSBC Asset Management (India) Private Limited & Merrill Lynch India Equities Fund (Mauritius) Limited.
Mehul Jani : Fund Manager
Mehul Jani is IIFL Asset Management’s Senior Executive Vice President | Fund Manager – Listed Equity. Mehul Jani, CFA, joins us from DSP Blackrock, where he worked as a Fund Manager and Analyst. Mehul joined DSP BlackRock as an Analyst in the Equities division in October 2008. Mehul worked as an Associate at Morgan Stanley Plc in London from 2004 to 2008, where he worked on structured product valuations and fund derivatives.He is a CFA charterholder and holds an MSc. in Banking and International Finance.
Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.