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DSP India T.I.G.E.R. Fund

The document discusses the DSP India T.I.G.E.R. Fund, which focuses on infrastructure growth and economic reforms in India. It notes that private sector investment and manufacturing as a percentage of GDP in India have remained low. However, it outlines several positive indicators that private sector capex and the manufacturing sector may be reviving in India, such as rising capacity utilization, an uptick in private sector project announcements, lower corporate tax rates making India competitive, and the government increasing infrastructure spending and production-linked incentive schemes to attract manufacturing away from China.

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[Title to come] [Sub-Title to come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class April 2023 | People | Processes | Performance | DSP India T.I.G.E.R. (The Infrastructure Growth and Economic Reforms) Fund (An open ended equity scheme following economic reforms and/or Infrastructure development theme) #INVESTFORGOOD
2 What is DSP India T.I.G.E.R. fund ? Fund that aims to capture growth revival in capital cycle & economic reforms Source: Internal. * include only specific industry sectors in consumer durables and consumer non durables which are relevant to the theme. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Infrastructure Growth Theme Construction Cement & Cement products Industrial Manufacturing/Engineering Metals Oil & Gas Power Telecom Healthcare services Auto mobiles Economic Reforms theme Chemicals Fertilizer & Pesticides Consumer Goods * Financial Platforms E-Retailing Excluding sectors Information Technology Media & Entertainment Financials Pharma Consumer staples Paper Textiles Thematic fund focussed on
3 Investment cycle has bottomed out Source: Internal, Spark Capital, Data as on Dec-31, 2022 Historically, whenever India’s GDP has grown faster, it has been driven by surge in investments. India’s investment rate peaked in FY11 and has fallen since then to 21% of GDP in 9MFY23. This is due to - adverse impact of the global financial crisis, the twin balance sheet problem (ie, the corporate sector's high leverage and the banking sector's high non-performing assets (NPAs)), subdued domestic capital market conditions and, more recently, pandemic shock. Pick up in investment is the most essential part for an upward trend in GDP growth. Consumption can provide only a basic growth and can not sustain momentum, if there is no growth in the economy. 20% 25% 30% 35% 40% 45% -20% -10% 0% 10% 20% 30% 40% 50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M FY23 Investment Growth - LHS Investment as % of GDP - RHS
4 Large dependence on imports Source: CMIE, Internal. Data as on 31 March, 2023. 0 50 100 150 200 250 300 350 400 450 Solar Module Imports (USD Mn) 0 2000 4000 6000 8000 10000 12000 14000 16000 East & Southern Africa Canada Mexico South & Central America Singapore Japan India United States China Europe Biggest Oil Importers (1000 barrels per day) 11% 9.5% 5.8% 5.1% 4.7% 4.3% 4.3% 3.8% 3% 2.7% 45% India is the 2nd Largest Arms Importer Globally Saudi Arabia India Egypt Australia China Algeria South Korea Qatar UAE Pakistan Others 0 100 200 300 400 500 600 700 India ranks 7th in Electronic Import Globally
5 Manufacturing as % of GDP has not scaled, young population require skilled jobs Source: GoI, Internal. Data as on 31 March, 2023 1990 2021 58% of total population 68% of total population India added 44 crore workers in 3 decades, more than the total population addition in China Working age population of India 15.4 16.9 15.5 17.8 18.4 17.7 38.3 40.5 46.3 48.8 53.3 54.4 35 40 45 50 55 60 15.0 15.5 16.0 16.5 17.0 17.5 18.0 18.5 19.0 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 % of GDP Manufacturing (LHS) Services (RHS)
6 Capex funding in place – Strong bank balance sheets, rising tax collections Source: Internal, Spark Capital. Data as on Feb, 2023. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Bank balance sheets have now improved materially Higher tax buoyancy is leading to govt. revenues running ahead of the budget target. Personal and Corporate tax receipts stood at an all-time high 1.3 1.0 2.0 3.0 4.0 5.0 6.0 7.0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1H FY23 (%) Banks' Net non-performing asset 2000s: Improving bank balance sheet led to strong risk appetite 6418 6456 0 1000 2000 3000 4000 5000 6000 7000 Apr -Feb'11 Apr -Feb'12 Apr -Feb'13 Apr -Feb'14 Apr -Feb'15 Apr -Feb'16 Apr -Feb'17 Apr -Feb'18 Apr -Feb'19 Apr -Feb'20 Apr -Feb'21 Apr -Feb'22 Apr -Feb'23 Corporate Tax (Rs. bn) Personal Income Tax (Rs. bn)
7 Real estate and manufacturing sectors to revive Real estate cycle in early stages of an upcycle. New launches gaining traction as unsold inventory levels continue to moderate 22 15 10 15 20 25 30 35 Philippines Sri Lanka Bangladesh China Indonesia Korea Malaysia Japan India Cambodia Taiwan Thailand Vietnam Singapore India* Base Corporate tax rate of major asian economies Indian Government has cut corporate tax rates, making India one of the lowest tax rate country among the peers *Note: GoI has introduced lower tax rate for new manufacturing companies 1.4 1.7 1.3 1.2 1.6 1.8 2.3 2.5 2.6 3.0 3.0 2.5 2.4 2.6 2.0 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 - 100 200 300 400 500 600 700 800 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Launches ('000, LHS) Sales ('000, LHS) Inventory / Sales (X, RHS) Source: CMIE, GOI. Data as on 31 March 2022. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s).
8 Government push to kick start the capex cycle Source: GoI, Internal. Spark Capital. Data as on 31 March 2023. Capex budgeted to grow at a faster pace of 33% in FY23BE to Rs. 10tn or 3.3% of GDP – the highest level in over a decade • For the first time in almost two decades, we see right intent by the Govt. to set right priorities on • Infrastructure spend, Stable taxation, Focus on asset monetisation & Privatisation of state-owned companies • Higher transfer to state governments & Government strategy to not run businesses except a few strategically important ones. • Capex spending by the central government on key sectors of Road, Railways and Defense has seen significant scaleup from Rs 548 bn in FY05 to Rs 1.5 trn in FY12 to Rs 7.8 trn in FY24 Central Government Capex scaling up (Rs bn) 3.9 1.6 1.7 3.3 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24BE Capital expenditure (% of GDP) 59 323 1,546 1863 2071 2586 154 451 2,346 2148 2456 2928 335 679 1,345 1388 1500 1626 110 450 550 700 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 FY05 FY12 FY21 FY22 FY23 FY24 Rs bn Roads Railways Defense Jal Shakti
9 Capacity utilization picking up critical for pickup in private sector capex Source: GoI, Internal, UBS, Capacity Utilization on the rise • Corporate sectors has deleveraged their balance sheets providing essential support to boost private corporate capex as and when demand recovers • The all-India capacity utilization stands at ~74%. • Rising capacity utilizations will drive new capacity additions as the lead time to build new capacities could vary from 2-3 years depending on the sectors Data as on Dec 2022 0.9 0.9 0.9 1.1 1.7 1.3 1.3 1.7 1.9 2.0 2.3 2.3 2.2 2.3 2.4 3.1 2.3 1.7 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Debt to Operating Profit Corporates have deleveraged despite the pandemic Data as on Dec 2022. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). 47 75 74.3 40 45 50 55 60 65 70 75 80 85 90 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Capacity Utilization (%)
10 New project announcements picking up lead indicator for private capex Private sector project announcements are picking up, announcements nearly Rs. 26 tn worth of Capex in FY23 Capex of listed cos had stagnated, now showing signs of revival 0.4 0.5 0.5 0.7 0.9 1.5 2.6 4.2 4.4 4.2 5.9 5.6 5.2 5.3 4.7 4.6 5.2 5.3 6.3 5.5 5.5 6.4 7.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Sep'22 TTM Capex (Rs tn) TTM= Trailing 12 months 1.7 1.4 0.9 1.3 1.7 3.6 8.3 14.2 15.8 17.3 12.3 16.5 8.6 5.2 4.1 9.5 10.3 8.5 9.1 9.7 8.7 5.1 15.0 26.1 0.0 5.0 10.0 15.0 20.0 25.0 30.0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CMIE Project Announcement Private (Rs. tn) Source: CMIE Data as on 30 Sep 2022. Source: CMIE Data as on 31 Mar 2023.
11 What does China + 1 strategy mean? Source: UBS, World Bank, Haver, Data as on December, 2022 China's success in raising the share of its exports in global trade over the last two decades has caught the attention of investors and government’s. Covid is driving the shift of manufacturing from China which will drive the exports for the beneficiary countries like India. Sectors which are vulnerable to supply chain shifts will move out of China As of 2019, Indian manufacturing FDI at USD 8.2bn was below the average in 2014-16. However, as per government sources in early 2020 India's FDI pipeline had doubled to US$175bn (actual identified projects) versus US$87bn the previous year. Key focus sectors include construction, electronics, infrastructure, textiles, food processing, pharma, etc. Global companies to set up manufacturing facilities for not only electronics but also heavy manufacturing. China’s export share of global trade China’s manufacturing labour cost higher vs. India 30.0 16.2 9.7 4.2 3.5 2.6 1.6 1.6 0 5 10 15 20 25 30 35 Per hour USD
12 Production linked incentive schemes to accelerate shift from China Source: GoI, Internal. Spark Capital Data as on 31 Mar 2023. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Sector Financial outlay US$ bn Potential/ committed Investment US$ bn Mobile manufacturing 5.6 1.5 Medical devices 0.5 0.1 Key starting material/ bulk drugs 1 0.7 Automobile & components 3.6 5.7 ACC battery 2.5 6.1 Pharmaceutical drugs 2.1 1.4 Telecom & networking products 1.7 0.4 Food products 1.5 0.8 Textile products: man-made fiber & technical textiles 1.5 2.6 Specialty steel 0.9 5.4 White goods (ACs & LED) 0.9 1.1 Electronic/ technology products (IT hardware) 1 0.3 High efficiency solar panel modules 0.6 2.4 Semiconductor production 10.4 31.1 Total 34 60 Indian Govt has announced an incentive of Rs. 2.4tn under the Production-linked incentive scheme. Companies selected under the PLI would invest ~Rs. 4.4tn over the next five years Production-linked incentive scheme is likely to generate ~3.7mn jobs Multiple foreign companies selected under PLI Apple will move 5% of its global production for the iPhone 14 to India later this year and could also make 25% of all iPhones in the country by 2025. Electronic goods exports growing rapidly led by PLI Electronic imports to exports ratio continues to decline 480 2785 0 500 1000 1500 2000 2500 3000 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Electronics goods exports ($, mn) Electronics goods exports ($, mn)-3MMA Positive impact due to PLI Scheme 8.7 6.0 2.8 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Import to export ratio of electronic goods (x) -3MMA
13 Multiple drivers for cyclical recovery Source: Credit Suisse. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). SECTORS DRIVERS MANUFACTURING Government policy such as tax concessions, Performance Linked Incentives (PLI) and duties/imports bans to drive investments. India benefiting from China + 1 and Europe + 1 trend. RENEWABLES & ENERGY TRANSITION Renewable capacity addition required to meet the incremental demand is many times larger. Storage, Hydrogen and electrification of transport are key drivers URBAN INFRASTRUCTURE Government is significantly increasing investments on Urban transport like Metro, water supply, effluent treatment and smart infrastructure ROADS New greenfield corridors being planned as expressways (e.g. the Mumbai-Nagpur, Mumbai-Delhi corridors) RAILWAYS Investments in areas such as Dedicated Freight Corridors, Bullet Trains, Station Development. Indian Railways has scaled up the capex to Rs 2.5 lakh cr. annually REAL ESTATE Inventory levels has dropped significantly, and new launches being planned in affordable segments. Real estate cycle revival after long down cycle. METALLURGY, CEMENT, AUTO AND TELECOM Several corporates have announced capital expenditure to meet rising demand. Strong balance sheets and improved profitability supporting the rising capex DEFENSE Positive indigenization lists (imports ban, strategic partnerships) of USD 3 bn will benefit defense sector LOGISTICS,DATA CENTERS & WAREHOUSING Stronger manufacturing ecosystem, tax reforms and rise of ecommerce and recent national logistics policy to boost investments in logistics and warehousing. Increased data handling with localization norms to aid data centers
14 New Drivers of Capex: Source: GoI, Internal New Drivers of Capex Data Centres Green Hydrogen Coal Gasification EV Charging infra 5G Capex Electronics
[Title to come] [Sub-Title to come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Case studies
16 Power sector – demand growth to surprise positively Source: CEA, Internal Estimates. Data as on 31 Mar 2023. Disclaimer: The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s). 6.8 4.4 7.1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 FY 05-10 FY11-22 FY23-28 Power Demand Growth (%) Domestic, 24.4% Commercial, 8.2% Industrial , 43.3% Agricultural , 17.9% Misc., 6.2% Power Demand Composition Segment Demand Driver Residential Room AC and Refrigeration 25% of residential demand Growth led by rising penetration of room AC(current 6%) Private capex flat for last 10 yrs, economy services driven Industrial Rising new capacity additions in manufacturing PLI led Manufacturing as % of GDP to rise from current 16% Data Centres New Demand drivers Electric Vehicles Green Hydrogen Railways 100% electrification 4.9 9.9 0 2 4 6 8 10 12 Power Generation (Rs trn) Rs trn FY18-22 FY23-27 0.7 1.4 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Power Transmission (Rs trn) Rs trn FY18-22 FY23-27
17 Defense Sector rising domestic pie Saudi Arabia 14% India 11% Qatar 8% South Korea 6% Australia 5% Egypt 4% USA 4% Japan 3% China 3% Turkey 3% Others 39% India among top global defence importers in 2019 at 11% • Separate budget for buying locally-made military hardware • Government has notified two lists of weapons/equipment and • Two lists for components/sub-assemblies that cannot be imported • These have to be indigenised over next 5-7 years Strong policy support to drive indigenization 2.77 5.30 0.00 1.00 2.00 3.00 4.00 5.00 6.00 FY18-22 FY23-27 Rs trn Domestic share in Defense capex to rise 75% Source: MoD, Internal Estimates, Bloomberg, Company Reports; Order inflow and order book data for defence sector (include BEL, HAL, BEML, BDL, MDL, CSL, GRSE, MIDHANI). Data as on 31 Mar 2023. Disclaimer: The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s). Order inflow of listed defence companies witnessing traction 58% 44 337 356 111 201 313 840 221 114 118 570 350 443 333 616 521 754 533 - 200 400 600 800 1,000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Rs bn
18 New capex drivers – not imagined earlier Source: Nomura research, Internal Data as on 31 Mar 2023. Disclaimer: The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s). 0.03 3.06 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 FY25 FY30 Demand for Green Hydrogen (mt) 51 4,899 - 1,000 2,000 3,000 4,000 5,000 6,000 FY25 FY30 Cumulative capex (Rs bn) 551 2,618 - 500 1,000 1,500 2,000 2,500 3,000 FY22 FY30 Data centre capacity (MW) 207 1,073 - 200 400 600 800 1,000 1,200 FY22 FY30 Cumulative capex (Rs bn)
19 Electronics rising theme Source: ABB Analyst meet presentation
20 Core sectors exposure reduced significantly in Nifty versus previous cycle Data as on 15 May 2023. Source: NSE. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Index weight of Core sectors in Nifty 50 Index Core sectors may be at the cusp of turnaround ; However, representation in the Nifty 50 index has reduced to 28.5% as on May’23 from 71% in Dec’07. DSP T.I.G.E.R. (The Infrastructure Growth and Economic Reforms) Fund provides an opportunity for investor to take overweight exposure on the core sectors which can benefit from revival of capital cycle & economic reforms Investor may consider allocating ~ 10-15% of equity exposure to the fund for long-term investment of atleast 5 years Core Sectors Dec-07 May-23 Capital Goods 10.5 3.4 Cement 2.1 1.9 Metals 9.0 2.7 Oil & Gas (Ex RIL) 13.5 1.3 RIL 11.9 10.4 Oil & Gas 25.4 11.7 Telecom 11.4 2.4 Utilities 8.2 2.7 Healthcare 2.2 3.7 Real Estate 2.3 0.0 Total 71.1 28.5
[Title to come] [Sub-Title to come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Portfolio Positioning
22 Portfolio Snapshot as on April, 2023 Source: DSP Internal. Data as on 30 April 2023. The sector(s)/stock(s)/issuer(s) mentioned in this note do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer. The investment approach / framework/ strategy / portfolio / other data mentioned herein are dated and currently followed by the scheme and the same may change in future depending on market conditions and other factors. Name of stock Sector Weight (%) LARSEN & TOUBRO LTD Construction 4.80% SIEMENS LTD Industrial Automation 4.48% RELIANCE INDUSTRIES LTD Energy 4.31% POWER GRID CORP OF INDIA LTD Power Utility 3.03% ULTRATECH CEMENT LTD Cement and Building Materials 2.95% NTPC LTD Power Utility 2.86% APAR INDUSTRIES LTD Industrial 2.64% HINDUSTAN AERONAUTICS LTD Industrial 2.55% KALPATARU POWER TRANSMISSION Construction 2.47% CG POWER AND INDUSTRIAL SOLUTION Industrial 2.24% Top 10 holdings Top Sectors Market Capitalisation (%) Asset Allocation 4.6% 6.9% 7.1% 9.5% 13.9% 15.1% 25.6% 0.0% 10.0% 20.0% 30.0% FMIG Consumer Electricals/Durables Defense Infra/Construction Utilites Cement & Building Materials Capital Goods Equity - 96.13 Cash - 3.87 Large Cap - 35.04 Mid Cap - 23.40 Small Cap - 37.68
23 Key Risk - What will make us change our view? Source: Internal Risk Particular Aggressive Government spending plans • Government has set out an aggressive spending plan for infrastructure which could get delayed due to either fiscal considerations or change in priorities. This could impact the earnings of companies across sub-sectors. Delay in adoption of new themes • Delay in adoption of new themes of automation and digitalization could lead to companies to shift to more commoditized product categories to drive growth Lack of proper implementation of schemes • Success of key initiative Make in India is critical for the sector. There is an expectation of increased capacity additions in various sectors. • Lack of proper implementation of PLI schemes or ability to attract large foreign players could derail these initiatives Changes in technology • Changes in technology could de-rate some of the sectors significantly such as shift from coal based energy to renewables, changing energy efficiency norms across sectors such as motors, pumps etc. • Inability of the companies to scale up to new requirements could impact their future growth Adverse regulatory changes • Adverse regulatory changes could lead to de-rating in sectors such as Gas utilities, power transmission sector ESG • ESG is becoming an increasingly important factor for the companies which we track on consistent basis The investment approach / framework/ strategy mentioned herein are currently followed by the scheme and the same may change in future depending on market conditions and other factors.
[Title to come] [Sub-Title to come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Performance
25 Performance Scorecard Calendar Year returns 40% 54% 52% 83% -58% 76% 14% -33% 37% -9% 61% 1% 4% 47% -17% 7% 3% 52% 14% 2% 39% 38% 42% 62% -55% 87% 17% -25% 32% 8% 34% -2% 5% 33% 3% 11% 17% 27% 6% 0% -7% 14% 38% -20% -9% 8% 52% 15% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 DSP India T.I.G.E.R Fund S&P BSE 100 TRI S&P BSE India Infrastructure Index TRI Infrastructure boom phase – Fund outperforming broader equity market Followed by phase of underperformance Sector underperformed broader equity market for last 3 years; signs of sector revival evident from 2021 & 2022 fund performance S&P BSE India Infrastructure Index TRI is benchmark of DSP India T.I.G.E.R. fund. Regular plan – Growth option considered. Refer Annexure for performance of scheme in SEBI prescribed format and of other schemes managed by same Fund Managers. Past performance may or may not sustain in future and should not be used as a basis for comparison Source: MFIE, Data as on April 30, 2023
[Title to come] [Sub-Title to come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Appendix
27 Scheme Performance For Growth Option (SEBI Prescribed format) Fund Managers: 1. Rohit Singhania (Managing this fund since June 2010.) 2. Charanjit Singh (Managing this fund since January 2021.) 3. Jay Kothari (Managing this fund since March 2018) Source: Internal
28 Performance of schemes managed by same fund manager Source: Internal, Data as on Apr 30, 2023 The above performance is for Regular Plan- Growth Option
29 Performance of schemes managed by same fund manager Source: Interna, Data as on Apr 30, 2023 The above performance is for Regular Plan- Growth Option
30 Performance of schemes managed by same fund manager Source: Interna, Data as on Apr 30, 2023 The above performance is for Regular Plan- Growth Option
31 Disclaimer & Product labelling details Fund Product Suitability Riskometer DSP India T.I.G.E.R. Fund Benchmark – S&P BSE India Infrastructure TRI DSP India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) An open ended equity scheme following economic reforms and/or Infrastructure development theme This Scheme is suitable for investors who are seeking* • Long-term capital growth • Investment in equity and equity-related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing Investments in infrastructure, both by the public and private sector *Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them. In this material DSP Asset Managers Private Liimited. (the AMC) has used information that is publicly available, including information developed in-house. Information gathered and used in this material is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors which is available at www.dspim.com. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments The strategy/ Investment Framework/ Investment approach mentioned has been currently followed by the Scheme and the same may change in future depending on market conditions and other factors. There is no assurance of any returns/potential/capital protection/capital guarantee to the investors in this Scheme.. All figures and other data given in this document for the fund and the model are as on Apr 30, 2023. unless otherwise specified) and the same may or may not be relevant in future and the same should not be considered as solicitation/ recommendation/guarantee of future investments by the AMC or its affiliates. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of DSP Mutual Fund. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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DSP India T.I.G.E.R. Fund

  • 1.
    [Title to come] [Sub-Titleto come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class April 2023 | People | Processes | Performance | DSP India T.I.G.E.R. (The Infrastructure Growth and Economic Reforms) Fund (An open ended equity scheme following economic reforms and/or Infrastructure development theme) #INVESTFORGOOD
  • 2.
    2 What is DSPIndia T.I.G.E.R. fund ? Fund that aims to capture growth revival in capital cycle & economic reforms Source: Internal. * include only specific industry sectors in consumer durables and consumer non durables which are relevant to the theme. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Infrastructure Growth Theme Construction Cement & Cement products Industrial Manufacturing/Engineering Metals Oil & Gas Power Telecom Healthcare services Auto mobiles Economic Reforms theme Chemicals Fertilizer & Pesticides Consumer Goods * Financial Platforms E-Retailing Excluding sectors Information Technology Media & Entertainment Financials Pharma Consumer staples Paper Textiles Thematic fund focussed on
  • 3.
    3 Investment cycle hasbottomed out Source: Internal, Spark Capital, Data as on Dec-31, 2022 Historically, whenever India’s GDP has grown faster, it has been driven by surge in investments. India’s investment rate peaked in FY11 and has fallen since then to 21% of GDP in 9MFY23. This is due to - adverse impact of the global financial crisis, the twin balance sheet problem (ie, the corporate sector's high leverage and the banking sector's high non-performing assets (NPAs)), subdued domestic capital market conditions and, more recently, pandemic shock. Pick up in investment is the most essential part for an upward trend in GDP growth. Consumption can provide only a basic growth and can not sustain momentum, if there is no growth in the economy. 20% 25% 30% 35% 40% 45% -20% -10% 0% 10% 20% 30% 40% 50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M FY23 Investment Growth - LHS Investment as % of GDP - RHS
  • 4.
    4 Large dependence onimports Source: CMIE, Internal. Data as on 31 March, 2023. 0 50 100 150 200 250 300 350 400 450 Solar Module Imports (USD Mn) 0 2000 4000 6000 8000 10000 12000 14000 16000 East & Southern Africa Canada Mexico South & Central America Singapore Japan India United States China Europe Biggest Oil Importers (1000 barrels per day) 11% 9.5% 5.8% 5.1% 4.7% 4.3% 4.3% 3.8% 3% 2.7% 45% India is the 2nd Largest Arms Importer Globally Saudi Arabia India Egypt Australia China Algeria South Korea Qatar UAE Pakistan Others 0 100 200 300 400 500 600 700 India ranks 7th in Electronic Import Globally
  • 5.
    5 Manufacturing as %of GDP has not scaled, young population require skilled jobs Source: GoI, Internal. Data as on 31 March, 2023 1990 2021 58% of total population 68% of total population India added 44 crore workers in 3 decades, more than the total population addition in China Working age population of India 15.4 16.9 15.5 17.8 18.4 17.7 38.3 40.5 46.3 48.8 53.3 54.4 35 40 45 50 55 60 15.0 15.5 16.0 16.5 17.0 17.5 18.0 18.5 19.0 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 % of GDP Manufacturing (LHS) Services (RHS)
  • 6.
    6 Capex funding inplace – Strong bank balance sheets, rising tax collections Source: Internal, Spark Capital. Data as on Feb, 2023. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Bank balance sheets have now improved materially Higher tax buoyancy is leading to govt. revenues running ahead of the budget target. Personal and Corporate tax receipts stood at an all-time high 1.3 1.0 2.0 3.0 4.0 5.0 6.0 7.0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1H FY23 (%) Banks' Net non-performing asset 2000s: Improving bank balance sheet led to strong risk appetite 6418 6456 0 1000 2000 3000 4000 5000 6000 7000 Apr -Feb'11 Apr -Feb'12 Apr -Feb'13 Apr -Feb'14 Apr -Feb'15 Apr -Feb'16 Apr -Feb'17 Apr -Feb'18 Apr -Feb'19 Apr -Feb'20 Apr -Feb'21 Apr -Feb'22 Apr -Feb'23 Corporate Tax (Rs. bn) Personal Income Tax (Rs. bn)
  • 7.
    7 Real estate andmanufacturing sectors to revive Real estate cycle in early stages of an upcycle. New launches gaining traction as unsold inventory levels continue to moderate 22 15 10 15 20 25 30 35 Philippines Sri Lanka Bangladesh China Indonesia Korea Malaysia Japan India Cambodia Taiwan Thailand Vietnam Singapore India* Base Corporate tax rate of major asian economies Indian Government has cut corporate tax rates, making India one of the lowest tax rate country among the peers *Note: GoI has introduced lower tax rate for new manufacturing companies 1.4 1.7 1.3 1.2 1.6 1.8 2.3 2.5 2.6 3.0 3.0 2.5 2.4 2.6 2.0 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 - 100 200 300 400 500 600 700 800 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Launches ('000, LHS) Sales ('000, LHS) Inventory / Sales (X, RHS) Source: CMIE, GOI. Data as on 31 March 2022. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s).
  • 8.
    8 Government push tokick start the capex cycle Source: GoI, Internal. Spark Capital. Data as on 31 March 2023. Capex budgeted to grow at a faster pace of 33% in FY23BE to Rs. 10tn or 3.3% of GDP – the highest level in over a decade • For the first time in almost two decades, we see right intent by the Govt. to set right priorities on • Infrastructure spend, Stable taxation, Focus on asset monetisation & Privatisation of state-owned companies • Higher transfer to state governments & Government strategy to not run businesses except a few strategically important ones. • Capex spending by the central government on key sectors of Road, Railways and Defense has seen significant scaleup from Rs 548 bn in FY05 to Rs 1.5 trn in FY12 to Rs 7.8 trn in FY24 Central Government Capex scaling up (Rs bn) 3.9 1.6 1.7 3.3 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24BE Capital expenditure (% of GDP) 59 323 1,546 1863 2071 2586 154 451 2,346 2148 2456 2928 335 679 1,345 1388 1500 1626 110 450 550 700 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 FY05 FY12 FY21 FY22 FY23 FY24 Rs bn Roads Railways Defense Jal Shakti
  • 9.
    9 Capacity utilization pickingup critical for pickup in private sector capex Source: GoI, Internal, UBS, Capacity Utilization on the rise • Corporate sectors has deleveraged their balance sheets providing essential support to boost private corporate capex as and when demand recovers • The all-India capacity utilization stands at ~74%. • Rising capacity utilizations will drive new capacity additions as the lead time to build new capacities could vary from 2-3 years depending on the sectors Data as on Dec 2022 0.9 0.9 0.9 1.1 1.7 1.3 1.3 1.7 1.9 2.0 2.3 2.3 2.2 2.3 2.4 3.1 2.3 1.7 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Debt to Operating Profit Corporates have deleveraged despite the pandemic Data as on Dec 2022. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). 47 75 74.3 40 45 50 55 60 65 70 75 80 85 90 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Capacity Utilization (%)
  • 10.
    10 New project announcementspicking up lead indicator for private capex Private sector project announcements are picking up, announcements nearly Rs. 26 tn worth of Capex in FY23 Capex of listed cos had stagnated, now showing signs of revival 0.4 0.5 0.5 0.7 0.9 1.5 2.6 4.2 4.4 4.2 5.9 5.6 5.2 5.3 4.7 4.6 5.2 5.3 6.3 5.5 5.5 6.4 7.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Sep'22 TTM Capex (Rs tn) TTM= Trailing 12 months 1.7 1.4 0.9 1.3 1.7 3.6 8.3 14.2 15.8 17.3 12.3 16.5 8.6 5.2 4.1 9.5 10.3 8.5 9.1 9.7 8.7 5.1 15.0 26.1 0.0 5.0 10.0 15.0 20.0 25.0 30.0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CMIE Project Announcement Private (Rs. tn) Source: CMIE Data as on 30 Sep 2022. Source: CMIE Data as on 31 Mar 2023.
  • 11.
    11 What does China+ 1 strategy mean? Source: UBS, World Bank, Haver, Data as on December, 2022 China's success in raising the share of its exports in global trade over the last two decades has caught the attention of investors and government’s. Covid is driving the shift of manufacturing from China which will drive the exports for the beneficiary countries like India. Sectors which are vulnerable to supply chain shifts will move out of China As of 2019, Indian manufacturing FDI at USD 8.2bn was below the average in 2014-16. However, as per government sources in early 2020 India's FDI pipeline had doubled to US$175bn (actual identified projects) versus US$87bn the previous year. Key focus sectors include construction, electronics, infrastructure, textiles, food processing, pharma, etc. Global companies to set up manufacturing facilities for not only electronics but also heavy manufacturing. China’s export share of global trade China’s manufacturing labour cost higher vs. India 30.0 16.2 9.7 4.2 3.5 2.6 1.6 1.6 0 5 10 15 20 25 30 35 Per hour USD
  • 12.
    12 Production linked incentiveschemes to accelerate shift from China Source: GoI, Internal. Spark Capital Data as on 31 Mar 2023. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Sector Financial outlay US$ bn Potential/ committed Investment US$ bn Mobile manufacturing 5.6 1.5 Medical devices 0.5 0.1 Key starting material/ bulk drugs 1 0.7 Automobile & components 3.6 5.7 ACC battery 2.5 6.1 Pharmaceutical drugs 2.1 1.4 Telecom & networking products 1.7 0.4 Food products 1.5 0.8 Textile products: man-made fiber & technical textiles 1.5 2.6 Specialty steel 0.9 5.4 White goods (ACs & LED) 0.9 1.1 Electronic/ technology products (IT hardware) 1 0.3 High efficiency solar panel modules 0.6 2.4 Semiconductor production 10.4 31.1 Total 34 60 Indian Govt has announced an incentive of Rs. 2.4tn under the Production-linked incentive scheme. Companies selected under the PLI would invest ~Rs. 4.4tn over the next five years Production-linked incentive scheme is likely to generate ~3.7mn jobs Multiple foreign companies selected under PLI Apple will move 5% of its global production for the iPhone 14 to India later this year and could also make 25% of all iPhones in the country by 2025. Electronic goods exports growing rapidly led by PLI Electronic imports to exports ratio continues to decline 480 2785 0 500 1000 1500 2000 2500 3000 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Electronics goods exports ($, mn) Electronics goods exports ($, mn)-3MMA Positive impact due to PLI Scheme 8.7 6.0 2.8 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Import to export ratio of electronic goods (x) -3MMA
  • 13.
    13 Multiple drivers forcyclical recovery Source: Credit Suisse. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). SECTORS DRIVERS MANUFACTURING Government policy such as tax concessions, Performance Linked Incentives (PLI) and duties/imports bans to drive investments. India benefiting from China + 1 and Europe + 1 trend. RENEWABLES & ENERGY TRANSITION Renewable capacity addition required to meet the incremental demand is many times larger. Storage, Hydrogen and electrification of transport are key drivers URBAN INFRASTRUCTURE Government is significantly increasing investments on Urban transport like Metro, water supply, effluent treatment and smart infrastructure ROADS New greenfield corridors being planned as expressways (e.g. the Mumbai-Nagpur, Mumbai-Delhi corridors) RAILWAYS Investments in areas such as Dedicated Freight Corridors, Bullet Trains, Station Development. Indian Railways has scaled up the capex to Rs 2.5 lakh cr. annually REAL ESTATE Inventory levels has dropped significantly, and new launches being planned in affordable segments. Real estate cycle revival after long down cycle. METALLURGY, CEMENT, AUTO AND TELECOM Several corporates have announced capital expenditure to meet rising demand. Strong balance sheets and improved profitability supporting the rising capex DEFENSE Positive indigenization lists (imports ban, strategic partnerships) of USD 3 bn will benefit defense sector LOGISTICS,DATA CENTERS & WAREHOUSING Stronger manufacturing ecosystem, tax reforms and rise of ecommerce and recent national logistics policy to boost investments in logistics and warehousing. Increased data handling with localization norms to aid data centers
  • 14.
    14 New Drivers ofCapex: Source: GoI, Internal New Drivers of Capex Data Centres Green Hydrogen Coal Gasification EV Charging infra 5G Capex Electronics
  • 15.
    [Title to come] [Sub-Titleto come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Case studies
  • 16.
    16 Power sector –demand growth to surprise positively Source: CEA, Internal Estimates. Data as on 31 Mar 2023. Disclaimer: The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s). 6.8 4.4 7.1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 FY 05-10 FY11-22 FY23-28 Power Demand Growth (%) Domestic, 24.4% Commercial, 8.2% Industrial , 43.3% Agricultural , 17.9% Misc., 6.2% Power Demand Composition Segment Demand Driver Residential Room AC and Refrigeration 25% of residential demand Growth led by rising penetration of room AC(current 6%) Private capex flat for last 10 yrs, economy services driven Industrial Rising new capacity additions in manufacturing PLI led Manufacturing as % of GDP to rise from current 16% Data Centres New Demand drivers Electric Vehicles Green Hydrogen Railways 100% electrification 4.9 9.9 0 2 4 6 8 10 12 Power Generation (Rs trn) Rs trn FY18-22 FY23-27 0.7 1.4 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Power Transmission (Rs trn) Rs trn FY18-22 FY23-27
  • 17.
    17 Defense Sector risingdomestic pie Saudi Arabia 14% India 11% Qatar 8% South Korea 6% Australia 5% Egypt 4% USA 4% Japan 3% China 3% Turkey 3% Others 39% India among top global defence importers in 2019 at 11% • Separate budget for buying locally-made military hardware • Government has notified two lists of weapons/equipment and • Two lists for components/sub-assemblies that cannot be imported • These have to be indigenised over next 5-7 years Strong policy support to drive indigenization 2.77 5.30 0.00 1.00 2.00 3.00 4.00 5.00 6.00 FY18-22 FY23-27 Rs trn Domestic share in Defense capex to rise 75% Source: MoD, Internal Estimates, Bloomberg, Company Reports; Order inflow and order book data for defence sector (include BEL, HAL, BEML, BDL, MDL, CSL, GRSE, MIDHANI). Data as on 31 Mar 2023. Disclaimer: The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s). Order inflow of listed defence companies witnessing traction 58% 44 337 356 111 201 313 840 221 114 118 570 350 443 333 616 521 754 533 - 200 400 600 800 1,000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Rs bn
  • 18.
    18 New capex drivers– not imagined earlier Source: Nomura research, Internal Data as on 31 Mar 2023. Disclaimer: The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s). 0.03 3.06 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 FY25 FY30 Demand for Green Hydrogen (mt) 51 4,899 - 1,000 2,000 3,000 4,000 5,000 6,000 FY25 FY30 Cumulative capex (Rs bn) 551 2,618 - 500 1,000 1,500 2,000 2,500 3,000 FY22 FY30 Data centre capacity (MW) 207 1,073 - 200 400 600 800 1,000 1,200 FY22 FY30 Cumulative capex (Rs bn)
  • 19.
    19 Electronics rising theme Source:ABB Analyst meet presentation
  • 20.
    20 Core sectors exposurereduced significantly in Nifty versus previous cycle Data as on 15 May 2023. Source: NSE. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Index weight of Core sectors in Nifty 50 Index Core sectors may be at the cusp of turnaround ; However, representation in the Nifty 50 index has reduced to 28.5% as on May’23 from 71% in Dec’07. DSP T.I.G.E.R. (The Infrastructure Growth and Economic Reforms) Fund provides an opportunity for investor to take overweight exposure on the core sectors which can benefit from revival of capital cycle & economic reforms Investor may consider allocating ~ 10-15% of equity exposure to the fund for long-term investment of atleast 5 years Core Sectors Dec-07 May-23 Capital Goods 10.5 3.4 Cement 2.1 1.9 Metals 9.0 2.7 Oil & Gas (Ex RIL) 13.5 1.3 RIL 11.9 10.4 Oil & Gas 25.4 11.7 Telecom 11.4 2.4 Utilities 8.2 2.7 Healthcare 2.2 3.7 Real Estate 2.3 0.0 Total 71.1 28.5
  • 21.
    [Title to come] [Sub-Titleto come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Portfolio Positioning
  • 22.
    22 Portfolio Snapshot ason April, 2023 Source: DSP Internal. Data as on 30 April 2023. The sector(s)/stock(s)/issuer(s) mentioned in this note do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer. The investment approach / framework/ strategy / portfolio / other data mentioned herein are dated and currently followed by the scheme and the same may change in future depending on market conditions and other factors. Name of stock Sector Weight (%) LARSEN & TOUBRO LTD Construction 4.80% SIEMENS LTD Industrial Automation 4.48% RELIANCE INDUSTRIES LTD Energy 4.31% POWER GRID CORP OF INDIA LTD Power Utility 3.03% ULTRATECH CEMENT LTD Cement and Building Materials 2.95% NTPC LTD Power Utility 2.86% APAR INDUSTRIES LTD Industrial 2.64% HINDUSTAN AERONAUTICS LTD Industrial 2.55% KALPATARU POWER TRANSMISSION Construction 2.47% CG POWER AND INDUSTRIAL SOLUTION Industrial 2.24% Top 10 holdings Top Sectors Market Capitalisation (%) Asset Allocation 4.6% 6.9% 7.1% 9.5% 13.9% 15.1% 25.6% 0.0% 10.0% 20.0% 30.0% FMIG Consumer Electricals/Durables Defense Infra/Construction Utilites Cement & Building Materials Capital Goods Equity - 96.13 Cash - 3.87 Large Cap - 35.04 Mid Cap - 23.40 Small Cap - 37.68
  • 23.
    23 Key Risk -What will make us change our view? Source: Internal Risk Particular Aggressive Government spending plans • Government has set out an aggressive spending plan for infrastructure which could get delayed due to either fiscal considerations or change in priorities. This could impact the earnings of companies across sub-sectors. Delay in adoption of new themes • Delay in adoption of new themes of automation and digitalization could lead to companies to shift to more commoditized product categories to drive growth Lack of proper implementation of schemes • Success of key initiative Make in India is critical for the sector. There is an expectation of increased capacity additions in various sectors. • Lack of proper implementation of PLI schemes or ability to attract large foreign players could derail these initiatives Changes in technology • Changes in technology could de-rate some of the sectors significantly such as shift from coal based energy to renewables, changing energy efficiency norms across sectors such as motors, pumps etc. • Inability of the companies to scale up to new requirements could impact their future growth Adverse regulatory changes • Adverse regulatory changes could lead to de-rating in sectors such as Gas utilities, power transmission sector ESG • ESG is becoming an increasingly important factor for the companies which we track on consistent basis The investment approach / framework/ strategy mentioned herein are currently followed by the scheme and the same may change in future depending on market conditions and other factors.
  • 24.
    [Title to come] [Sub-Titleto come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Performance
  • 25.
    25 Performance Scorecard Calendar Yearreturns 40% 54% 52% 83% -58% 76% 14% -33% 37% -9% 61% 1% 4% 47% -17% 7% 3% 52% 14% 2% 39% 38% 42% 62% -55% 87% 17% -25% 32% 8% 34% -2% 5% 33% 3% 11% 17% 27% 6% 0% -7% 14% 38% -20% -9% 8% 52% 15% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 DSP India T.I.G.E.R Fund S&P BSE 100 TRI S&P BSE India Infrastructure Index TRI Infrastructure boom phase – Fund outperforming broader equity market Followed by phase of underperformance Sector underperformed broader equity market for last 3 years; signs of sector revival evident from 2021 & 2022 fund performance S&P BSE India Infrastructure Index TRI is benchmark of DSP India T.I.G.E.R. fund. Regular plan – Growth option considered. Refer Annexure for performance of scheme in SEBI prescribed format and of other schemes managed by same Fund Managers. Past performance may or may not sustain in future and should not be used as a basis for comparison Source: MFIE, Data as on April 30, 2023
  • 26.
    [Title to come] [Sub-Titleto come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Appendix
  • 27.
    27 Scheme Performance ForGrowth Option (SEBI Prescribed format) Fund Managers: 1. Rohit Singhania (Managing this fund since June 2010.) 2. Charanjit Singh (Managing this fund since January 2021.) 3. Jay Kothari (Managing this fund since March 2018) Source: Internal
  • 28.
    28 Performance of schemesmanaged by same fund manager Source: Internal, Data as on Apr 30, 2023 The above performance is for Regular Plan- Growth Option
  • 29.
    29 Performance of schemesmanaged by same fund manager Source: Interna, Data as on Apr 30, 2023 The above performance is for Regular Plan- Growth Option
  • 30.
    30 Performance of schemesmanaged by same fund manager Source: Interna, Data as on Apr 30, 2023 The above performance is for Regular Plan- Growth Option
  • 31.
    31 Disclaimer & Productlabelling details Fund Product Suitability Riskometer DSP India T.I.G.E.R. Fund Benchmark – S&P BSE India Infrastructure TRI DSP India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) An open ended equity scheme following economic reforms and/or Infrastructure development theme This Scheme is suitable for investors who are seeking* • Long-term capital growth • Investment in equity and equity-related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing Investments in infrastructure, both by the public and private sector *Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them. In this material DSP Asset Managers Private Liimited. (the AMC) has used information that is publicly available, including information developed in-house. Information gathered and used in this material is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors which is available at www.dspim.com. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments The strategy/ Investment Framework/ Investment approach mentioned has been currently followed by the Scheme and the same may change in future depending on market conditions and other factors. There is no assurance of any returns/potential/capital protection/capital guarantee to the investors in this Scheme.. All figures and other data given in this document for the fund and the model are as on Apr 30, 2023. unless otherwise specified) and the same may or may not be relevant in future and the same should not be considered as solicitation/ recommendation/guarantee of future investments by the AMC or its affiliates. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of DSP Mutual Fund. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
  • 32.