- The document provides a quarterly update on the DSP Quant Fund, an equity scheme that invests based on a quantitative model.
- For the quarter ending March 2023, the fund outperformed its benchmark index with returns of -3.9% compared to the index's -5.7%.
- Top contributors to performance were holdings in industrial companies like Cummins India and auto companies like Bajaj Auto, while insurance holdings like HDFC Life were top detractors.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
1. DSP Quant Fund
(An open-ended equity scheme investing based on a quant model theme)
March 2023
Portfolio Updates
2. 2
DSP Quant Fund Performance (as of 31 Mar 2023)
YTD 3 month 1 year Inception
Fund-Dir -3.9% -3.9% -4.8% 12.6%
Fund-Reg -4.1% -4.1% -5.5% 11.8%
Index -5.7% -5.7% -0.6% 12.4%
Risk Metrics^ Direct - G Regular - G Index
Jensen's Alpha 0.8% -0.1%
Beta 0.90 0.90 1.00
Standard Deviation 19% 19% 21%
Information Ratio 0.04 -0.11
Sharpe Ratio 0.30 0.26 0.27
Sortino Ratio 0.34 0.29 0.31
Up capture 87% 85%
Down capture 91% 92%
Refer to Annexure 1 and 2 for performance in SEBI prescribed format and of other schemes managed by same Fund Manager. Past performance may or
may not sustain in future and should not be used as a basis for comparison with other investments. It is not possible to directly invest in index
Source: MFIE-ICRA analytics, Internal; The performance numbers are total return series from 10-Jun-2019 to 31-Mar-2023 for the direct and regular growth option. Benchmark index is S&P BSE200 TRI
Jensen's Alpha is a risk-adjusted performance measure of the excess returns of the portfolio above or below that predicted by the CAPM or capital asset pricing model, given the portfolio’s beta and
the market returns. Beta is a measure of the volatility or systematic risk of a portfolio to that of market represented by fund’s benchmark. Standard deviation is a measure of volatility which measures
how widely individual performance returns, within a performance series, are dispersed from the average or mean value. Lower standard deviation is considered to be better. Information ratio is a
measure of risk adjusted return. It divides the portfolio’s excess return relative to benchmark by its tracking error vs. the benchmark. Sharpe ratio is a risk-adjusted measure calculated as the ratio of
excess portfolio return over the risk free rate divided by the portfolio standard deviation. The Sharpe ratio determines return per unit of risk. Sortino ratio is a variation of the Sharpe ratio that
differentiates downside volatility from total volatility. It is calculated as the ratio of excess return (portfolio return less risk free rate) to the standard deviation of negative returns (downside
deviation) instead of the total standard deviation of portfolio returns. A higher Information Ratio, Sharpe Ratio and Sortino ratio is considered to be better. Up/Down capture measures annualized
performance of the portfolio in up/down markets relative to the market benchmark. A ratio above 1 is considered to be better. Risk free rate (6.85% end Mar’23) is represent by overnight MIBOR rate
published by FBIL
Benchmark index is S&P BSE200 TRI. Returns <1 year are absolute and >1 year are
compounded annualized.
^ Risk Metrics is for the period since inception to 31 Mar 2023, in annualized term
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Jun-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Aug-20
Oct-20
Dec-20
Feb-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Dec-21
Feb-22
Apr-22
Jun-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
INR
Value
Growth of INR 10,000 Investment at Inception
Direct
Regular
Index
3. 3
Portfolio Details
The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and may or may not have any future position in these
sector(s)/stock(s)/issuer(s).. The portfolio of the scheme is rebalanced every quarter end.
Portfolio details as on 05 Apr 2023 which reflect the March end rebalance. Exits are ACC, Ambuja Cements and ICICI Pru. Life Insurance.
Data Source: FactSet, Internal
L = Large Cap (1-100th Rank by Mkt. Cap.), M = Mid Cap (101-250th Rank by Mkt. Cap.)
Name Mkt Cap % of Assets
Asian Paints L 1.9
Coromandel Int. M 1.4
JSW Steel L 3.5
Pidilite Industries L 1.6
UltraTech Cement L 3.5
Materials 12.0
Britannia Industries L 2.5
Colgate-Palmolive M 1.9
Dabur India L 1.6
Hindustan Unilever L 1.9
ITC L 1.6
Marico L 1.8
Nestle L 2.0
Cons. Staple 13.3
Abbott India M 1.4
Alkem Laboratories M 1.1
Cipla L 0.8
Dr. Reddy's L 1.2
IPCA Laboratories M 1.1
Sun Pharma (new) L 1.6
Torrent Pharma. L 1.3
Healthcare 8.5
Bajaj Auto L 2.7
Balkrishna Ind.(new) M 2.1
Crompton Greaves M 1.4
Hero Motocorp L 1.8
Page Industries L 1.6
Cons. Disc 9.5
Astral M 1.6
Cummins India M 1.7
Havells India L 2.2
L&T Technology M 0.9
Larsen & Toubro L 2.8
Industrials 9.3
Name Mkt Cap % of Assets
Bajaj Finance L 3.5
Bajaj Finserv L 2.9
HDFC Bank L 5.6
HDFC Life Insurance L 2.8
HDFC L 5.6
ICICI Bank L 5.5
ICICI Lombard L 1.9
Kotak Mahindra Bank L 3.5
Financials 31.2
Name Mkt Cap % of Assets
HCL Technologies L 3.0
Infosys L 2.3
LTIMindtree L 2.4
Mphasis L 1.1
TCS L 2.4
Tech Mahindra L 2.4
Wipro Limited L 1.9
IT 15.6
4. 4
Top contributors and detractors (Quarter ended Mar’23)
Source: Factset, Portfolio – DSP Quant Fund; Benchmark – S&P BSE 200 TRI; The portfolio of the scheme is rebalanced quarterly
Returns presented are gross basis; Attribution data has been sourced from FactSet which uses bottom up methodology whereby constituents of both the index and the Fund are priced at the same point
in time. FactSet returns do not take into account Transaction costs or Management fees. FactSet assumes trades go through at closing prices rather than the actual price that may have been traded at
during the day. This data is not of audit quality but is considered useful management information i.e. it will fail to pick up the impact of transaction prices differing from daily closing prices.
Portfolio Benchmark Alpha
Holding Avg. Wgt % Total Rtn % Avg. Wgt % %
Top 5 relative stock contributors
Cummins India Limited 1.6 19.0 0.2 0.3
Bajaj Auto Limited 3.1 7.4 0.5 0.3
Havells India Limited 2.6 8.3 0.3 0.3
LTIMindtree Limited 2.0 9.5 0.2 0.3
Tech Mahindra Limited 2.5 8.4 0.7 0.2
Bottom 5 relative stock contributors
ACC Limited 1.9 -31.7 0.2 -0.6
Bajaj Finserv Limited 3.3 -15.9 0.7 -0.3
Ambuja Cements Limited 1.2 -30.3 0.3 -0.3
ITC Limited 2.0 17.5 3.1 -0.2
HDFC Life Insurance Co. Ltd. 3.2 -11.8 0.5 -0.2
Refer to Annexure 1 and 2 for performance in SEBI prescribed format and of other schemes managed by same Fund Manager. Past performance may or may not
sustain in future and should not be used as a basis for comparison with other investments. It is not possible to directly invest in index
The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and may or may not have any future position in
these sector(s)/stock(s)/issuer(s).
• Contributors: Positive stock price performance across Industrials names. IT holdings also witnessed a rebound in stock prices from lows of Oct to Dec’22
quarter. The increase in weights to IT sector names in the previous rebalance was a contributor to alpha.
• Detractors: Insurance companies stock prices fell post the changes to taxation announced in the recent budget. ACC and Ambuja also saw stock prices
fall due to concerns around Adani Group. Ambuja/ACC are names held by the fund since Sep 20 and Mar 21 respectively. Despite the recent fall in stock
prices, both names put together are positive contributors to fund alpha by 0.5%
5. 5
Performance of DSP Quant Fund v/s Individual factors
The performance numbers are total return series from 10-Jun-2019 to 31-Mar-2023. DSP Quant Fund performance numbers are for direct plan growth option. Factor portfolios are created using factor tilting
approach representing equal weighted stock portfolio having 40 stocks out of BSE200 displaying the highest values on the respective factor. The factor portfolios are rebalanced every quarter end. Data Source:
FactSet, Barra, Bloomberg, Internal.
Refer to Annexure 1 and 2 for performance in SEBI prescribed format and of other schemes managed by same Fund Manager. Past performance may or may not sustain
in future and should not be used as a basis for comparison with other investments. Refer Scheme information document for detailed investment strategy. Figures
mentioned for performance of the Factors of the Quant Model do not in any manner indicate the returns/performance of the scheme. the portfolio of the scheme is
rebalanced at end of every quarter.
• Q1 2023 saw negative stock market returns with relatively low dispersion across factors. Generally, Quality and Value outperformed while growth
stocks saw underperformance on demand concerns and expectations of growth slowdown.
• The fund also outperformed its benchmark in this period
8.5%
26.7% 27.6%
-6.8%
-3.9%
2.8%
17.9%
29.1%
5.7%
-5.7%
4.3%
33.5% 32.3%
-9.1%
-3.7%
3.4%
20.0%
49.9%
7.1%
-8.7%
-11.8%
11.6%
45.9%
30.0%
-3.5%
2019 2020 2021 2022 2023
DSP Quant Fund S&P BSE 200 TRI Quality Growth Value
6. 6
Performance of DSP Quant Fund v/s Individual factors (annualized, since
inception)
Combining multiple factors instead of using single factors is expected to provide diversification benefits
The performance numbers are total return series from 10-Jun-2019 to 31-Mar-2023, depicted in annualized terms. DSP Quant Fund performance numbers are for direct plan growth option.
Factor portfolios are created using factor tilting approach representing portfolios having stocks displaying high values on the respective factor. The factor portfolios are rebalanced every quarter
end. Data Source: FactSet, Bloomberg, Internal.
Refer to Annexure 1 and 2 for performance in SEBI prescribed format and of other schemes managed by same Fund Manager. Past performance may or may not sustain
in future and should not be used as a basis for comparison with other investments. Refer Scheme information document for detailed investment strategy. Figures
mentioned for performance of the Factors of the Quant Model do not in any manner indicate the returns/performance of the scheme. The portfolio of the scheme is
rebalanced at end of every quarter.
13.4%
17.0% 16.7%
12.6% 12.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Quality
Factor
Growth
Factor
Value
Factor
DSP
Quant
Fund
S&P
BSE
200
TRI
DSP QUANT FUND V/S INDIVIDUAL FACTORS (10th Jun 2019 – 31st Mar 2023)
7. 7
Performance of DSP Quant Fund v/s Eliminated buckets
Highlights the importance of the ELIMINATION STAGE in the overall investment process
Decomposing the performance
of stock baskets on the basis of
each elimination criteria
Majority of the baskets
highlighted by the elimination
criteria DETRACTED VALUE
from the index performance
The performance numbers are total return series from 10-Jun-
2019 to 31-Mar-2023 for DSP Quant Fund Direct plan growth
option. Eliminated basket portfolios are created using cap
weighted methodology for the Eliminated Baskets. Data Source:
FactSet, Bloomberg, Internal.
Last quarter saw
underperformance of the
eliminated baskets relative to
the index in a risk-off
environment
Refer to Annexure 1 and 2 for performance in SEBI prescribed format and of other schemes managed by same Fund Manager. Past performance may or may not sustain in future and should
not be used as a basis for comparison with other investments. Refer Scheme information document for detailed investment strategy. It is not possible to invest directly in an index. Figures
mentioned for performance of the Factors of the Quant Model do not in any manner indicate the returns/performance of the scheme. the portfolio of the scheme is rebalanced at end of
quarter.
-13.4%
-18.1% -18.0%
-2.6%
-3.9%
-5.7%
-20%
-15%
-10%
-5%
0%
QUANT FUND V/S ELIMINATED BASKETS (30th DEC 2022 - 31st MAR 2023)
8.0%
5.3%
17.0%
12.0% 12.6% 12.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Forensic
analysis
RED
Flags
High
Beta
High
Leverage
Public
Sector
Undertakings
DSP
Quant
Fund
S&P
BSE
200
TRI
DSP QUANT FUND V/S ELIMINATED BASKETS (10th JUN 2019 – 31st Mar 2023)
8. 8
Performance of DSP Quant Fund v/s Composite eliminated basket
Alpha generated via the elimination process
Composite eliminated basket
DETRACTED SUBSTANTIAL VALUE
from Index performance
Highlights the importance of the
ELIMINATION STAGE in the overall
investment process
The performance numbers are total return series from 10-Jun-2019
to 31-Mar-2023 for DSP Quant Fund Direct plan growth option.
Performance is in annualized terms for periods greater than 1 year
and in absolute terms for periods of less than 1 year. Eliminated
basket portfolios are created using cap weighted methodology for
the Eliminated Baskets. Data Source: FactSet, Bloomberg, Internal.
Eliminated baskets materially
underperformed the index in
the past quarter
Refer to Annexure 1 and 2 for performance in SEBI prescribed format and of other schemes managed by same Fund Manager. Past performance may or may not sustain in future and should
not be used as a basis for comparison with other investments. Refer Scheme information document for detailed investment strategy. It is not possible to invest directly in an index. Figures
mentioned for performance of the Factors of the Quant Model do not in any manner indicate the returns/performance of the scheme. the portfolio of the scheme is rebalanced at end of
quarter.
12.6% 12.4%
7.7%
0%
10%
20%
DSP
QUANT
FUND
S&P
BSE
200
TRI
COMPOSITE
ELIMINATED
BASKET
DSP QUANT FUND V/S ELIMINATED BASKETS (Inception to 31st Mar 2023)
-3.9%
-5.7%
-9.9%
-12%
-10%
-8%
-6%
-4%
-2%
0%
DSP QUANT FUND V/S ELIMINATED BASKETS (30th DEC 2022 - 31st MAR 2023 )
9. 9
Calendar year returns
2023 = YTD as of 31 Mar 2023. Source: MFIE-ICRA Analytics and FactSet. Past performance may or may not sustain in future and should not be used as a basis for comparison with
other investments. Figures mentioned for performance of the Quant Model do not in any manner indicate the returns/performance of the scheme. Refer to Annexure 1 and 2 for
performance in SEBI prescribed format and of other schemes managed by same Fund Manager.
Given performance are as on 31 Mar 2023.
11. 11
Investment Process
ELIMINATE STOCKS
from the S&P BSE 200 Index
SELECT GOOD COMPANIES
from the above shortlist
ASSIGN WEIGHTS
to create the final portfolio
200 stock
universe
~ 100 stocks
30 – 50 stocks
Exclude stocks which may destroy value
× High debt
× Excessive volatility in stock prices
× Inefficient capital allocators
× Poor quality of reported earnings
Select final list by ranking stocks based on average scores for:
✅ Quality
✅ Growth
✅ Value
Weights assigned to manage risks
▪ Single Stock exposure limits
▪ Single Sector exposure limits
▪ Exposure limits based on stock liquidity
Model converts sound investing principles into a RULES BASED investment process
BASED ON A QUANT MODEL
REVIEW & REBALANCE every quarter
12. 12
Stage 1 : Criteria used for elimination
Difficulty to service
interest payments
Raises risk of defaults
which further
tightens liquidity
In case of defaults,
creditors get
preference over
equity holders
× High DEBT TO EQUITY
(applicable to all sectors
ex financials)
HIGHLY LEVERAGED
COMPANIES
× High BETA
HIGHLY VOLATILE
STOCKS
NON-ALIGMENT OF
MANAGEMENT
INCENTIVES
POOR QUALITY OF
REPORTED
EARNINGS
× High PRICE
VOLATILITY
Typically highly
cyclical businesses
Disproportionately
high stock price
volatility on a relative
& absolute basis
Potential red flag
Haven’t added value
to equity holders over
the long term
× Ownership
Criteria
Shareholder wealth
creation is not a
primary goal
Business decisions
maybe driven by
other considerations
Minority shareholders
get sub-optimal
returns
× LOW reliability of earnings
× WEAK balance sheets
× POOR cash conversion
× Potential governance issues
Accounting &
Management issues
can lead to severe
value destruction
Forensic analysis of
financials disclosures
can throw up
potential red flags
Extensive criteria to identify and eliminate potential value destroyers from the investible universe
13. 13
Details of Forensic Analysis
PARAMETERS CONSIDERED IN THE FORENSIC OVERLAY
REPORTED
EARNINGS
QUALITY
BALANCE
SHEET HEALTH
WORKING
CAPITAL CYCLE
ANALYSIS FOR
FINANCIALS :
ALM, ASSET
QUALITY ETC.
MANAGEMENT
ACTIONS
Large divergence in accounting v/s cash flow
entries suggest aggressive accounting policies
Examples: Divergence in
× EBITDA (earnings before interest, taxes, depreciation and
amortization ) v/s Cash Flow from Operations
× Interest entry in Cash Flow Statement v/s P&L Statement
× Annual depreciation rates
Badly managed balance sheets at
higher risk of financial distress
Examples: Weak metrics on
× Interest coverage ratio
× Debt/Equity market capitalization
× Credit rating
Cash flow conversion & liquidity issues
are early signs of business problems
Example: Variability and deterioration in
× Debtor days, inventory days and creditor
days
Aggressive growth -> Asset quality issues->
Solvency risk
High short term funding -> Liquidity risk
Examples:
× High NPA(Non Performing Assets)
growth
× High Short term debt to total debt
× Provisioning cover
Imprudent management actions can
destroy minority shareholder value
Examples:
× High promoter pledge
× High related party transactions
× High loans and advances
Forensic analysis is a critical part of the elimination process
EBITDA –Earnings before Interest, Taxes, Depreciation and Amortization , NPA-Non Performing Assets, ALM-Asset Liability Management
14. 14
Stage 2 : Selection process
EVALUATING FACTORS
Determine core
investment
principles also
known as Factors*
Select metrics for
each factor, rank
each company on
every factor and
arrive at an average
factor score
Select companies
with the highest
average factor
scores
SELECTION PROCESS FLOW
~ 100 STOCKS
(remaining after the
elimination stage)
30 – 50 STOCKS
(final portfolio
selection)
Showing a
history of
generating
alpha
Used to arrive at
factors which
are quantifiable
And ideally have
low correlation
with each other
Help to
construct a
diversified
portfolio
Which is constantly
reviewed for adherence to
the core principles
Core
investment
principles
Factors convert core investment
principles into easily measurable metrics
Factors have historically been principal
drivers of alpha
*Based on research, established in back-tests
15. 15
Stage 2 : Selection of good companies
(with)
GOOD
PROSPECTS
(at a)
GOOD PRICE
(a) GOOD
COMPANY
QUALITY FACTOR
✔ High RETURN ON EQUITY
✔ CONSISTENT Earnings growth
Profitable and well
run companies
Steady earnings
streams
Receive a premium in
the market
GROWTH FACTOR
✔ High EARNINGS GROWTH
(consensus estimates)
Strong growth
prospects
Attract investor
interest
VALUE FACTOR
✔ Attractive DIVIDEND YIELD
✔ High FREE CASH FLOW YIELD
Relatively inexpensive
stocks compared to
the market
Potential to generate
excess returns during
phases of value
discovery
Receive a premium
in the market
EVALUATING COMPANIES ACROSS MULTIPLE FACTORS
Using a multi-factor approach to assess companies in a holistic manner
16. 16
Stage 3 : Optimization process
Optimized
weights for each
selected stock
Maximize
portfolio
factor
exposure
Stock level
constraints
Sector level
constraints
Quarterly
rebalancing
LOWER OF 10% OR 10X OF
WEIGHT IN S&P BSE 200 INDEX
(avoid concentration, ensure
liquidity/capacity)
MAX SECTOR ACTIVE WEIGHT = 10%
(avoids risk of sector rotation)
MAXIMIZE PORTFOLIO FACTOR SCORE
(weighted average factor score)
QUARTERLY REBALANCING
(to minimize turnover)
ASSIGN WEIGHTS TO 30 – 50 SELECTED STOCKS AND CREATE FINAL PORTFOLIO
Optimization done with the objective of creating a diversified portfolio
17. 17
Risk Management embedded into the Quant model
✓ No sector concentration (sector weights not more than 10% of the benchmark weight)
✓ No stock concentration (stock weights capped at 10% and stock active weights also capped)
✓ Stocks with limited/low liquidity assigned weights of no more than 1% (measured through days
taken to liquidate the position using average market volumes)
✓ Avoiding stocks with high leverage, forensic red flags, high price volatility – highly volatile stocks
✓ Avoiding stocks that show weakening growth, profits and margins – disrupted business models
✓ Valuation risk managed through relative ranking approach that automatically penalizes companies
which do not pay dividend or do not generate meaningful free cash flows
✓ Relative ranking model avoids loss making companies
Disclaimer : The above indicates the strategy/investment approach currently followed by the Scheme(s) and the same may change
in future depending on market conditions and other factors.
18. 18
Risks of investing in the Scheme
✓ The Quant model may go through periods of underperformance and there is no guarantee that the
backtested results will be achieved
✓ The scheme invests in equities and is subject to general risks associated with investments in equity
markets such as price risk, liquidity risk
19. 19
Annexure 1 – Performance of DSP Quant Fund in SEBI prescribed format
Performance details provided herein are of regular plan growth option as of 31 Mar 2023
20. 20
Annexure 1 – Performance of DSP Quant Fund in SEBI prescribed format
Performance details provided herein are of direct plan growth option as of 31 Mar 2023
21. 21
Annexure 2 – Performance of schemes managed by same Fund Managers
Performance details provided herein are of regular plan growth option as of 31 Mar 2023
22. 22
Annexure 2 – Performance of schemes managed by same Fund Managers
Performance details provided herein are of regular plan growth option as of 31 Mar 2023
23. 23
Annexure 2 – Performance of schemes managed by same Fund Managers
Performance details provided herein are of regular plan growth option as of 31 Mar 2023
24. 24
Annexure 2 – Performance of schemes managed by same Fund Managers
Performance details provided herein are of regular plan growth option as of 31 Mar 2023
25. 25
Product labelling details
Fund Product Suitability Scheme Riskometer Benchmark Riskometer
S&P BSE 200 TRI
DSP Quant Fund
(An open ended equity
scheme investing based on a
quant model theme)
This open ended equity scheme is suitable for investors who
are seeking*
Long term capital growth
Investment in active portfolio of stocks screened, selected,
weighed and rebalanced on the basis of a predefined
fundamental factor model
* Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them.
26. 26
Disclaimer
In this material DSP Asset Managers Private Limited (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 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. There is no assurance of any returns/potential/capital protection/capital guarantee to the
investors in this Scheme. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. This document
indicates the investment strategy/approach/framework currently followed by the Scheme and the same may change in future depending on market conditions and other
factors. All figures and other data given in this document are as on 31 MAR 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 schemes of DSP Mutual Fund. For complete
details on investment objective, investment strategy, asset allocation, scheme specific risk factors please refer the scheme information document and key information
memorandum of the scheme, which are available at AMC and registrar offices and investor service centres/AMC website- www.dspim.com.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.