Birla Sun Life Emerging Leaders Fund - Series 6
(A Close ended Equity Scheme)
“Unlock the potential of your investment in the right business cycle”
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully.
Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Emerging Leaders Fund – Series 6
 Equities over the long term
 Why Mid and Small caps?
 Birla Sun Life Emerging Leaders Fund - Series 6
This product is suitable for investors who are seeking:
•Long term capital growth
•A close ended scheme with investments in equity and equity related securities predominantly in Small & Mid cap companies
•High Risk
(BROWN)
Investors should consult their financial advisers if in doubt whether the product is suitable for them.
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 2
Copyright: Birla Sun Life Asset Management Company Ltd.
Equities continues to be the Outperformer over long-term
Returns % Across Asset Classes (Pre-tax)
29
17
15
15
14
10
9
7
8
9
6
5
1Y Return
13
11
5Y CAGR
9
8
7
10Y CAGR
8
7
20Y CAGR
-7
Gold (INR)
10-year treasuries
Bank Fixed Deposits
Property (across 7 cities)
Equities
(BSE Sensex)
Returns calculated till 31st Dec 2014 for all asset classes except for property which is calculated as on 30th Sep 2014
Source: RIMES, Bloomberg, JLLM, HDFC, Morgan Stanley Research
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 3
Copyright: Birla Sun Life Asset Management Company Ltd.
Visible through Long Term Performance
BSE Smallcap
BSE Mid-Cap
BSE Sensex
1600
1400
1268
1200
1135
1000
987
800
600
400
200
3 years*
Index
CAGR %
S&P BSE Sensex
18.07%
S&P BSE Midcap
19.18%
S&P BSE Small-Cap
18.17%
Last 5 years*
Value of Rs 1 lakh
164,596
169,278
165,009
CAGR %
Boom Period
Value of Rs 1 lakh
Feb-15
Feb-14
Feb-13
Feb-12
Feb-11
Feb-10
Feb-09
Feb-08
Feb-07
Feb-06
Feb-05
Feb-04
0
Crisis Period
May 2004-Nov Nov 2008-Aug
2007
2013
21.16%
177,851
49%
15%
19.11%
168,987
54%
12%
11.95%
140,312
66%
9%
Source: MFI Explorer, Bloomberg; *Returns as on 28 Feb 15
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 4
Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Emerging Leaders Fund – Series 6
 Equities over the long term
 Why Mid and Small caps?
 Birla Sun Life Emerging Leaders Fund - Series 6
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 5
Copyright: Birla Sun Life Asset Management Company Ltd.
Indian Market Analysis
Midcaps have outperformed Large caps over a time period and thus rewarded
investors for additional risk
50
40
30
20
8.8
3.8
3.3
10
0
-10
-20
S&P BSE MID CAP
S&P BSE Sensex
Dec-14
Sep-14
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
-30
S&P BSE SMALL CAP
Note: 3 Year Rolling Return on a Quarter Basis; Source: MFI Expl
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 6
Copyright: Birla Sun Life Asset Management Company Ltd.
Midcaps have higher potential to generate better
returns than Large Caps

They are Under researched




They are Under Owned




Limited research coverage for this segment compared to large caps by various institutions
In depth research on live basis available currently for only top 176* companies; beyond this sporadic
coverage only available
Little is known about hidden gems; creating information arbitrage
Institutional ownership is much lower than that of Large caps
Primarily owned by promoters
Liquidity is limited; creating arbitrage
They are Under Valued



Because of low awareness levels, investor interest is also low
Due lack of demand, lower valuations
Price tends to be lower than intrinsic value; creating valuation arbitrage
Potential
Superior
Growth
Re – rating
on
improving
investor
awareness &
interest
Multiplier
effect on
valuations
*Note: Researched stocks indicate
coverage of more than 5 broking
houses; Source: MoSL
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 7
Copyright: Birla Sun Life Asset Management Company Ltd.
Some of our stock picks in the Midcap Space..

Eicher Motor
 One of the leading manufacturers of commercial vehicles with a market leading position in the 7 to 11 tonnes segments
 In CY14 highest ever net income from operations , record EBIT margins and strong volume growth in its main brand
Royal Enfield(RE)
 Market share in light/medium duty CVs improved to 32.6% in CY14
 Targets to invest INR10b in FY16 (15 months), of which INR5b will be in RE segment
 Aims to increase its marketing spends to expand its addressable market in terms of customer profile and geography

Amara Raja Battery
 Engaged in manufacturing and automotive batteries; key products include Batteries, Un interruptible Power Systems ,
 Strong volume growth of ~20% CAR is expected on both auto[Original Equipment Manufacturer (OEM ) and
replacement ]and industrial segment on back of timely steep capacity expansion
 Manufacturing Inverter business to contribute 7% of overall revenue in FY17

Berger Paints
 One of the largest player in Indian decorative paints segment with a market share of ~16-17%
 Improved its gross margin by 240 bps yoy and 380 bps in 3Q FY15, on back of rise in sales of higher margin product and
lower price of crude-based raw material (40% of RM, which is 61% of Sales)
 The paints industry is expected to grow to Rs 50000 cr by FY 17 with a continued shift towards organized segment
Disclaimer: Stocks mentioned above may not be a part of the portfolio
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 8
Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Emerging Leaders Fund – Series 6
 Equities over the long term
 Why Mid and Small caps?
 Birla Sun Life Emerging Leaders Fund - Series 6
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 9
Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Emerging Leaders Fund – Series 6
Scheme Attributes

A 3.5-year closed ended equity fund with objective to generate long term capital
appreciation

The Scheme endeavours to follow bottom up approach of investing without any sectoral
bias but favoured towards small and mid caps

Invests in equity and equity-related securities of small and mid cap companies that have a
potential to rerate in the next 3-5 years

The investment emphasis would be on identifying high growth top-line and bottom-line
companies with sound corporate managements

Intends to play broader long term economic recovery and help generate alpha
Asset Allocation Pattern*
Equity and Equity related securities
Of which…
Small Caps and Mid caps : 60 – 100%
Other than Small &Midcaps: 0 – 40%
Cash, Money Market & Debt instruments
Risk Profile
Normal Allocation
(% of total Assets)
80-100%
High
Low
0-20%
*For further details please refer the SID & KIM of the Scheme
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 10
Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Emerging Leaders Fund Series 6
Key tenets
Birla Sun Life Emerging Leaders Fund Series 6 strives to play a theme of a complete market cycle
Strong portfolio construction process i.e. Bottom up oriented gaining from a top down
perspective on various sectors/companies to understand their placement in their respective
growth/business cycle:
 Top Down Approach is predominantly followed with significant and continuous efforts made
on evaluating global and India macro trends, on the basis of which an overweight/ underweight
stance on the businesses/sub industries level can be taken
 Bottom up stock picking is used to pick stocks where risk reward is hugely in favour to take
advantage of mispriced opportunities. The stock will be included in the portfolio only after a
certain level of conviction on its ability to construct ROE/ROA and growth in its topline and
bottomline
 The fund will strive to maintain a High Small and Midcap Allocation to enable higher alpha
generation over peer group & benchmark over a longer term on account of rerating and
mispricing of growth
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 11
Copyright: Birla Sun Life Asset Management Company Ltd.
Investment Universe


The Universe seek to include sectors which are beneficiaries of the economic recovery and
changing business environment like:
– Banking and Finance
– Auto and Auto Ancillaries,
– Capital Goods
– Infrastructure
– Pharmaceuticals etc.
The below chart shows the contribution(CAGR) of the sectors included in our Investment
Universe vis-a-vis S&P BSL Midcap Index (CAGR of 18.8%) in the last 3 years
50
Performance of the Sectors in the last 3 years*
43
40
40
30
25
24
21
20
18.8%
10
0
Auto & Auto Ancil
Capital Goods
Banks - Pvt
Infrastructure
Healthcare
*Note: CAGR Perform for the period Mar’12 – Mar’15; Source: MoSL
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 12
Copyright: Birla Sun Life Asset Management Company Ltd.
Scheme features
Name of the
Scheme
Structure
Benchmark
Investment
Objective
Liquidity
Load Structure
Birla Sun Life Emerging Leaders Fund – Series 6
A Close Ended Equity Scheme
S&P BSE Midcap Index
The primary objective of the scheme is to generate long-term capital appreciation by
investing predominantly in equity and equity related securities of small & Mid cap
companies.
The scheme will have duration of 3.5 years from and including the date of allotment. The
units offered under the Scheme will be listed on NSE within 5 (five) Business days from the
date of allotment.
Entry Load: Nil
Exit Load: Nil, No redemption/repurchase of units shall be allowed prior to the maturity of
the scheme. Investors wishing to exit may do so through stock exchange mode
The Scheme will have Regular Plan and Direct Plan with a common portfolio and separate
NAVs. For further details, refer SID and KIM of the Scheme.
Plans/ Options
Minimum
Application Amt
Each of the above (Regular and Direct) Plan under the scheme will have the following
Options: (1) Growth Option and (2) Dividend Option with Payout Facility
Minimum of Rs. 5,000/- and in multiples of Rs. 10/- thereafter during the New Fund Offer
period.
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 13
Copyright: Birla Sun Life Asset Management Company Ltd.
Scheme specific risk factors & Risk Control Strategies
Risk Factors: Small & Mid cap stocks may be more volatile & less liquid than large cap companies. Investors
therefore should assume that illiquidity risks are higher in this Scheme than in a normally diversified equity
fund. Thus, relative to larger, more liquid stocks, investing in small & mid cap stocks, involves potentially
greater volatility and risk.
Risk Control Strategies: Since investing requires disciplined risk management, the AMC would incorporate
adequate safeguards for controlling risks in the portfolio construction process. The risk control process
involves reducing risks through portfolio diversification, taking care however not to dilute returns in the
process. The AMC believes that this diversification would help achieve the desired level of consistency in
returns. The AMC may also implement certain internal control procedures / risk & exposure limits etc., which
may be varied from time to time.
The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. With the aim of
controlling risks, rigorous in-depth credit evaluation of the securities proposed to be invested in will be carried
out by the investment team of the AMC.
While these measures are expected to mitigate the above risks to a large extent, there can be no assurance
that these risks would be completely eliminated.
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 14
Copyright: Birla Sun Life Asset Management Company Ltd.
Disclaimers
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by National Stock Exchange
of India Limited (NSE) should not in any way be deemed or construed that the Scheme Information Document has been
cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft
Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text
of the 'Disclaimer Clause of NSE'
Disclaimers: This document is strictly confidential and meant for private circulation only.The document is solely for the
information and understanding of intended recipients only. If you are not the intended recipient, you are hereby notified
that any use, distribution, reproduction or any action taken or omitted to be taken in reliance upon the same is
prohibited and may be unlawful. Wherever possible, all the figures and data given are dated, and the same may or may
not be relevant at a future date. Further the opinions expressed and facts referred to in this document are subject to
change without notice and BSLAMC is under no obligation to update the same. While utmost care has been exercised,
BSLAMC or any of its officers, employees, personnel, directors make no representation or warranty, express or implied,
as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same.
Recipients of this material should exercise due care and read the scheme information document (including if necessary,
obtaining the advice of tax/legal/accounting/financial/other professional(s) prior to taking of any decision, acting or
omitting to act. Further, the recipient shall not copy/circulate/reproduce/quote contents of this document, in part or in
whole, or in any other manner whatsoever without prior and explicit approval of BSLAMC.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED
DOCUMENTS CAREFULLY
Mutual Fund: Birla Sun Life Mutual Fund
Asset Management Company/ Investment Manager: Birla Sun Life Asset Management Company Limited
Registered Office: One India Bulls Centre, Tower - 1, 17th Floor Jupiter Mill Compound, 841, SB Marg, Elphinstone
Road, Mumbai 400013
CIN: U65991MH1994PLC080811
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 15
Copyright: Birla Sun Life Asset Management Company Ltd.
THANK YOU
Mutual Fund investments are subject to market risks, read all Scheme related documents carefully. 16
Copyright: Birla Sun Life Asset Management Company Ltd.