Portfolio Managment Service (PMS)

Insight and highlights for investors regarding the performance of India’s Front Runner Fund in comparison to the NIFTY index:
📈 Performance Analysis
Short-Term Volatility (1-6 months)

1 Month: Portfolio down -3.75% vs. NIFTY -0.58%
3 Months: Portfolio -3.90% vs. NIFTY -2.90%
6 Months: Portfolio -7.81% vs. NIFTY -5.82%
Insight: The fund underperformed NIFTY during recent short-term periods, indicating market volatility or sector-specific challenges.
Strong Long-Term Outperformance (1 Year+)

1 Year: Portfolio 7.40% vs. NIFTY 7.47% (Almost aligned)
2 Years: Portfolio 18.72% vs. NIFTY 15.11% (Significant outperformance)
3 Years: Portfolio 13.31% vs. NIFTY 12.81% (Consistent positive difference)
Since Inception (20/10/2021): Portfolio 14.64% vs. NIFTY 12.30% (Consistent outperformance over time)
Insight: The portfolio demonstrates strong long-term performance, outperforming the benchmark, especially after the one-year mark.

💹 Key Highlights & Investment Strategy
Long-Term Growth Focus:
The portfolio is crafted for long-term investors (10+ years), targeting industries expected to grow faster than India’s GDP, like consumer discretionary, financial services, and IT.

Sector Allocation:

Consumer Discretionary: 32.7% (High growth potential)
Financial Services: 29.4% (Stable and essential sector)
Information Technology: 10.3% (Innovation and growth sector)
Industrials: 8.3% (India’s infrastructure development driver)
Insight: Diversified allocation with a growth-oriented tilt, focusing on industries expected to outpace the broader economy.
Market Cap Distribution:

Large Cap: 56.2% (Stability and reliability)
Mid Cap: 23.4% (Growth potential with moderate risk)
Small Cap: 20.4% (High growth potential with high risk)
Risk Management Approach:
Allocating across industries based on their potential to grow relative to GDP.
Maintaining a maximum 15% cap per sector to avoid over-concentration
Insight: Balanced across market capitalizations, leaning toward large-cap for stability while capitalizing on mid- and small-cap growth.
Economic Tailwind – India’s Growth Story:
India is projected to grow its GDP by 7-8% annually over the next decade, driven by infrastructure, consumption, and reforms. The portfolio aims to ride this growth wave by investing in front-runner industries.

Risk Management & Diversification:
The portfolio follows a disciplined diversification approach across growth stages:

Emerging: 2x GDP growth potential
Growing: 1.5x GDP growth with cash flow
Mature: 1x GDP growth with high cash flow
Insight: This ensures a balance between growth potential and income stability.

Investment Objective:
The primary goal is to generate long-term capital appreciation alongside consistent dividend earnings.
The portfolio is strategically invested in front-runner stocks from high-demand industries, anticipated to grow faster than India’s GDP.
Weightages are dynamically adjusted based on industry demand, company quality, and financial performance.
Investment Horizon: Minimum 10 years is recommended, though there's no lock-in period.

⚠️ Potential Risks to Consider
Short-Term Volatility:
The underperformance in short-term durations signals susceptibility to market swings.

Sector Concentration:
Over 60% of the portfolio is in consumer discretionary and financial services, which may lead to higher sector-specific risks during downturns.

Economic Dependence:
The portfolio's success is closely tied to India’s economic growth trajectory.

🌟 Investment Recommendations for Investors
Long-Term Investors: This fund is more suitable for those with a 10+ year horizon, leveraging India's structural growth story.
Risk-Averse Investors: The portfolio's tilt towards growth sectors implies higher volatility in the short term.
Growth-Oriented Investors: Strong alignment with high-growth sectors makes it attractive for growth-seeking investors.
Regular Monitoring: Keep an eye on sector rotations and India’s macroeconomic conditions for timely rebalancing if needed.

Regulatory Compliance
The PMS operates under the supervision of the Securities and Exchange Board of India (SEBI).
Only SEBI-registered entities are permitted to offer PMS, ensuring regulatory compliance and investor protection.
SEBI PMS Code: INP000006785.
Investor Grievance Redressal:
Complaints can be lodged via the SEBI Complaints Redress System (SCORES) platform.

🚀 Conclusion
India’s Front Runner Fund has demonstrated robust long-term performance, outperforming the NIFTY index consistently from the 2-year mark onwards. While short-term turbulence persists, the fund’s focus on India's high-growth sectors and GDP-aligned industries positions it as an attractive long-term investment vehicle for those optimistic about India's economic growth trajectory.

For any query or Info can connect with CSPradhan: +91 9426536576