Download - Portfolio Mgmt. 27.11.10
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Equity Portfolio
Managementstrategies
- V. Sriram
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Background
Presentation on designing Equity Portfolio
consists of 4 parts
Review of EMH and its implication for active/passiveManagement of portfolio
Different forms of passive investment strategies
Styles and strategies of active management of
portfolios Combinations of active and passive management
strategies
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Approaches to equity investment
Equity portfolio management style falls intopassive and active management strategies
Passive equity portfolio management is a longterm buy and hold strategy
Active equity portfolio management attempts tooutperform a passive benchmark portfolio on arisk adjusted basis
Active investment strategies maximize returnsbased on proper market timing, team selectionand proper selection of individual stocks
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Passive Equity Investing Passive equity investment can be
classified into 3 types
Index Funds/ Index ETFs
Customized funds
Factor/Style funds
Techniques used in index funds may befull replication, sampling or optimization
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Factor/ Style Funds This type of fund replicates a benchmark
geared to mimic the performance of a
given common stock factor such as
growth, capitalization or yield generation
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Combining active and passive
styles
Combination of use of various equity fund
mangers who play complimentary roles
Use of factor models- statistical factor
models, macro economic factor models
eg. Economic growth, business cycle, long
term interest rates, short term interestrates, inflation, value of currency.
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Diversified Schemes 10 Yr
CAGR
Scheme NameNAV
25.11.
10 Yr
CAGR
Rs.10 lakh
becomes
(Rs. in lakhs)Reliance Growth 491.56 35.12 202.85
SBI Magnum Sector Umbrella - Contra 59.24 33.48 179.54
Reliance Vision 280.02 31.54 155.09
HDFC Equity Fund 292.07 31.46 154.15
Franklin India Prima Fund 295.85 31.31 152.40
HDFC Top 200 218.67 31.05 149.41
S&P Nifty 16.56 46.29
BSE Sensex 17.15 48.69
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Diversified Schemes 10 Yr
CAGR
Scheme NameNAV
25.11.
10 Yr
CAGR
Rs.10 lakh
becomes
(Rs. in lakhs)JM Equity 38.50 14.17 37.63
Birla Sun Life India Opportunities Fund 55.91 13.82 36.49
LIC Equity Fund 27.76 13.15 34.40
L&T Opportunities Fund - Cumulative 46.25 12.96 33.83
ING Core Equity Fund 39.47 9.78 25.42
Taurus Discovery Fund 17.01 9.44 24.65
S&P Nifty 16.56 46.29
BSE Sensex 17.15 48.69
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Top Sectors Taurus Discovery
Fund
Top 5 SectorsTaurus
Discovery FundTop 5 Sectors
Taurus
Discovery Fund
Date Sep-10 Date Sep-08
ar aceutica s
iotec no o y
S ippin
an s onstruction and
n ras tructure
onsu er Dura es and
ectronics
etro eu as and
petroc e ica products
So t are and onsu tancy
Services
Stee and Ferrous eta
S ippin Te eco Services
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Top Holdings - Taurus
Discovery FundCompany Name % of N. A.
Taurus Discovery Fund - Grow th
Fund Size = 29.67 Crs . (30-Sep-10)
ol as d
o a a ind ra an d
u ro indo a r a d
erca or ines d
pollo Tyres d
Company Name % of N. A.
Taurus Discovery Fund - GrowthFund Size = 26.85 Crs. (30-Sep-08)
ipyard d
rea s ore d
iv- ani il as plora ion erv ices d
dea ellular d
arg ons ruc ions d
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Thank You