Presenting the first edition of ‘CapriWise’.
We bring this monthly newsletter to talk about a few investments each month – Funds that ‘we think’, investors could consider as part of your portfolio, depending on their individual risk/return profile. ‘CapriWise’ will talk about other investment products that are disrupting the world of investing.
These are investments that are relevant and in-line with the current market movements and are likely to gain traction over the long-term. Though not necessarily a part of our whitelist, these could be new fund launches, existing funds or investment vehicles that will add value to an investor’s portfolio. We also aim to identify investments that are likely ‘new’ yet have the ability to grow overtime and provide a positive return over a specific investment horizon.
MUTUAL FUNDS :
Nippon India Innovation Fund
| Inception Date | Category | Benchmark | Fund Manager |
| August 29, 2003 | Thematic Fund | Nifty 500 TRI | Vinay Sharma |
The Fund seeks to invest in high growth companies that are likely to benefit from ‘innovation’ as a theme. This is a high conviction portfolio that uses the top 500 stocks (based on free float market capitalization) as it’s universe. The fund has 94.72% investment in domestic equities of which 30.76% is in Large Cap stocks, 28.32% is in Mid Cap stocks, 6.45% in Small Cap stocks.
The fund manager identifies investment themes across sectors and themes like decarbonization, energy transition (EV and Hydrogen), artificial intelligence, biotechnology, manufacturing and power distribution and transmission to name a few.
The focused structure and concentrated approach stem from their investment philosophy, which will likely lead to a higher active share on the portfolio. The portfolio reflects a significant focus on innovation across themes like fintech, specialty chemicals & pharma, auto & auto ancillaries, internet-based businesses, MNCs etc.
The fund can make a good addition to the portfolio of an investor seeking to capitalize on the growth opportunities in the Indian market. Despite the slightly elevated risks arising out of investing in a product like this one we think that the risk-reward ratio on the fund leads it making it to this list.
Tata Silver ETF FoF
| Inception Date | Category | Benchmark | Fund Manager |
| January 2, 2024 | FoF Domestic | Domestic Price of Silver | Tapan Patel |
The Tata Silver FoF invests in units of the Tata Silver ETF. The fund was launched in January 2024 and we’re placing it on our Capri-Wise list despite its short track record. The fund is managed by Tapan Patel, who carries over 19 years of market experience and is the designated fund manager for commodities at Tata Mutual Fund.
Silver as an asset class has been in demand owing to a multitude of industrial uses ranging from photography, 5G Networks, Electric Vehicles and Biopharma and Medical uses. It is a great hedge against equity, especially during down-market. Considering the Fund of Fund structure of this fund, it has marked advantages over investing in an ETF fund. While an investor is required to have a demat or a trading account to invest in an ETF fund, the Fund of Fund structure does not need a trading account. Although expenses on the Fund of Fund structure could be slightly higher as compared to investing in the ETF fund, it facilitates an easier redemption process.
PGIM Global Equity Opportunities Fund
| Inception Date | Category | Benchmark | Fund Manager |
| May 14, 2010 | FoF Investing Overseas | MSCI All Country World Index | Chetan Gindodia |
The fund follows a Fund of Fund structure and invests in units of the PGIM Jennison Global Equity Opportunities Fund. The investment philosophy of PGIM Jennison Global Equity Opportunities Fund is a largely a bottom-up one, which aims to invest in companies that bring about tectonic shifts in the global investment landscape. Their stock picking approach typically leads them into picking innovative companies with disruptive themes or product lines over time.
Backed by Jennison’s strong track record in equity research, the mother fund looks at identifying attractive market leaders by focusing on finding innovative, high-growth companies with individual strengths. From a universe of over 5000 global stocks, the fund management team uses a combination of screeners and backs it up with fundamental research to build a high conviction portfolio of 35-45 stocks. The fund currently carries a 71% exposure to US based companies with the remaining spread across countries like Denmark, Italy and France to name a few.
This fund is a good option for Indian Investors who seeking global exposure. It is important to understand that this can be used as a means to diversify one’s portfolio as opposed to making it a core portion of the portfolio.
Kotak Equity Arbitrage Fund
| Inception Date | Category | Benchmark | Fund Manager |
| January 1, 2013 | Arbitrage Fund | Crisil 1 Yr T-Bill Index, Nifty 50 Arbitrage TRI | Hiten Shah |
Arbitrage funds utilize the differential pricing of the same asset available in different markets. By this process, the arbitrageur usually purchases asset in one market & sells it in another. Thus, making profit on the price difference available between the two markets.
The Kotak Equity Arbitrage fund invests in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. The fund carries an average equity exposure of over 65%, thus getting the benefit of equity taxation despite carrying a risk profile as that of a debt fund. The fund invests its debt portion in Kotak’s liquid fund, thereby eliminating duration and credit risk.
ICICI Pru Ultra Short-Term Fund
| Inception Date | Category | Benchmark | Fund Manager |
| April 14, 2011 | Ultra Short Duration Fund | Nifty Ultra Short Duration Debt Index A-1 | Manish Banthia |
Manish Banthia has been managing this fund since November 2016 and is backed by a strong team. The fund largely invests in Certificated of Deposit’s, Commercial papers and high-quality corporate papers. With a moderate risk profile, this fund is a good alternative for investors who want to park their money for a short term over 3-6 months. The fund largely invests in AAA rated papers, which constitute about 77% of the portfolio.
OTHER OFFERINGS :
Curated Equity Basket – Alpha Brief Case
Our equity basket continues to remain a relevant and viable investment opportunity for investors looking at investing in the small cap space. A bottom-up stock picking process seeks to identify and invest in value stocks that continue to give investors a significant upside as compared to peers.
As part of the Alpha Briefcase, our offerings include:
Digi GenZ
Digi GenZ invests in Indian internet and tech companies that ability to compound over the long term. The fund currently carries an exposure of 28% in large cap stocks, 15.50% in mid-cap names and 56.50% in small cap companies. As part of Alpha Briefcase, we think that investors can take an allocation of up to 60% of their total allocation in Digi GenZ.
Movers & Markers
Movers and Markers invests in companies that have remained market disruptors and well as have the potential to beat the benchmark performers over the medium to long term. A focused portfolio of 22 stocks, the fund invests in companies with strong balance sheets, higher promoter share and has a good track record in terms of building/managing a product line. The portfolio is actively managed and is rebalanced on a quarterly basis.
As part of Alpha Briefcase, we think that investors can take an allocation of up to 40% of their total allocation in Movers & Markers.
