Fund Snapshot
| Tenure of the Fund: | 5 yrs + up to 2 yrs |
| Lock in (from final closing): | 18 months |
| Exit Load: | 18 – 24months – 3%, 24 – 36months – 2%, 36 – 48months – 1%, Nil thereafter |
| Commitment period: | 12 months from final closing |
| Initial drawdown: | 30% of capital commitment for non-SIP class |
| Final closing: | 12 months from initial closing |
| Number of Stocks: | 15-20 |
M-Q-G-L-P Investment Philosophy
Investment Framework
Technology Enablers
- India’s IT exports at USD 150 Bn+ > Saudi’s Oil Exports
- Impact of Covid – Digital enablement is the need of the hour
- Talent Pool – Unparalleled IT engineer pool of 45 lakh which is expected to go to ~100 lakh
- India Cost advantage continues to sustain – Boston to Bengaluru
Platform Companies
- B2C Stack Established: India’s stack is unique – Cheap Data + Free payment rail (UPI) + Aadhar
- B2B Stack Emerging GST + OCEN (Open Credit Enablement Network) + ONDC (Open Network for Digital Commerce)
- India not a big horizontally integrated market yet – Likes of Amazon, Flipkart are still a small part of overall consumption pie
- Digital Rupee – Power of Programmability
Why Now?
- Investing in tomorrow’s leaders by focusing on companies in the midst of the economic cycle: High Growth Prospects
- Mid-cap stocks have typically outperformed others over time. In the long term, the mid-cap category has outperformed the large-cap and small-cap segments.
- 5 Year Rolling Return Comparison: The present alpha levels of Nifty Midcap 150 above Nifty 100 are still at 3%, but mean reversion could push it up to 7%.
- There is still plenty of room for growth in the Nifty Midcap100 vs the Nifty50. The Nifty Midcap 100/Nifty 50 ratio is a strong signal for investing in mid-cap stocks. The Mid Cap ratio peaked at 2.0 in 2018, and current levels imply that there is still opportunity for mid-cap growth, given that the trend line has been expanding over time.
