8/12/2019 SAPM- PGDM 2013-15-Sundaram Select Focus Fund- Group 2

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Ashish Raika DM15113Keerthi P DM15267Lakshmikshatriya DM15268 Sundaram Select Focus - Analysis

Investment objective:From the portfolio stance, it is clear that Sundaram Select Focus is a fund that seeks to achieve capitalappreciation through investments in large cap stocks. It seeks to generate long-term growth in capital.

Performance Analysis

Mean Average monthly returns from the fund is higher than that of the benchmark

Standard deviation SD is higher for the fund showing there is more deviation from mean returns in the portfoliocompared to the benchmark.

Beta The 0.96 beta shows that the funds performance is very sensitive to movements in thebenchmark.

Sharpe Ratio The ratio, 0.56, is quite high for the fund and is higher than that of the benchmark as well.This shows that the fund has performed well vis--vis the risk taken by it.

Sortino Ratio The ratio, 0.88, is high and is also higher than that of the benchmark. This shows that the fund

has a lower risk of incurring large losses.Treynors Index The fund provides 15.6% returns per unit of risk whereas the benchmark provides only 11.84%

returns per unit of risk. This too, indicates the fund has performed better.

Portfolio Characteristics: ! The fund comprises of 41 stocks and has an average of Rs 457 crore worth of assets under management. Of

the total fund, 99.1% is invested in equity.

! The overweight sectors are IT, Telecom and Pharma indicating that the fund manager expects these tooutperform in the future, The overweight stocks are Tech Mahindra, Karur Vysya, Lupin, Bharti Airtel and CTS-GRP. Thus, this portfolio gives a higher weight to these stocks and sectors compared to the benchmarkportfolio.

! The turnover ratio is 110% indicating that many of the stocks held have been replaced during the yearindicating an investment strategy that involves considerable buying-and-selling of securities.

! The per-share price is indicated by the NAV which is Rs. 92.7060 which is the price at which investorspurchase shares from the mutual fund.

! The fund has outperformed the benchmark portfolio over the period since inception till date as indicatedby the graph. It earned an excess of 3.6% points over the CNX nifty during this period. Its performance inshorter terms though, 1-year, 3-year and 5-year, has been below the benchmark returns. It performed onlymarginally better than the benchmark in the 8 year period. Thus, the fund is only a good long-terminvestment for those who can bear some volatility in the short-term. This is also indicated in how muchRs.10000 invested in the fund was worth compared to the same invested in the benchmark portfolio overthese periods of times

! The value of Rs.1000 a month SIP in the fund also indicates that the fund outperformed the benchmark by1.3% points. In shorter periods, the benchmark has fared better but the difference is marginal (approx.Rs.1000)

! The fund has outperformed the benchmark by 3.6%. A high tracking error of 9.6 indicates the deviation fromthe benchmark and also shows the fund is actively managed.

! Information ratio shows the performance of the portfolio manager related to returns that he has generatedfor the portfolio. The manager is Mr venkatesh and his information ratio is 0.34 which is quite good. Highcorrelation of 0.94 shows that the fund and the benchmark move in tandem.