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1. Quarterly Update January 2021
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IDFC Sterling Value Fund
(An open ended equity scheme following a value investment strategy)
IDFC Sterling Value Fund follows a value investment strategy and is a mix of predominantly mid and
small cap opportunities currently.
The fund follows a benchmark agnostic approach.
For relative value evaluation, the Enterprise Value (EV)/Sales ratio and Price/Book (P/B) are the key
parameters looked at.
Further the portfolio can be viewed as a Mix of Leaders/Challengers and Emerging Businesses:
During the quarter, the fund continued to outperform the benchmark index (S&P BSE 400 Mid SmallCap
TRI).
% return during the quarter Dec-20
Fund 22.9%
Benchmark - S&P BSE 400
MidSmallCap TRI
21.2%
Nifty 50 TRI 24.6%
Nifty Mid cap 100 TRI 22.9%
Nifty Small cap 100 TRI 21.9%
At a sectoral level, the top positive contributors were Commodities (UW), Cement / Building Materials
(OW) and Consumer Discretionary (UW). The top 3 negative contributors were Utilities (UW),
Information Technology (OW) and Financials (UW).
Market cap mix Fund Benchmark OW/UW
Large cap 17% 2% 15%
Mid cap 38% 65% -27%
Small cap 43% 33% 11%
Cash 2% 2%
Performance Update
- Top Challengers in Nifty Sectors (FMCG,
Banks, Auto, Pharma, Oil &Gas, etc)
- Market leaders in case of Non- Nifty sectors
(Tyres, Bearings, Batteries, Fertilizers, Building
Materials, etc)
- Businesses in down cycles
- Businesses yet to achieve desired scale
- Businesses that can fund growth
without repeated dilutions

2. Quarterly Update January 2021
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Source: Bloomberg report for Sep-Dec’20 quarter. Contribution takes into account allocation as well as selection
effect
The Fund’s exposure to Commodities and Cement/Building materials worked well during the last
quarter. Although the Nifty outperformed the Mid and Small cap indices, the fund was able to
outperform the benchmark driven by the continued focus on being invested in companies which benefit
from a positive liquidity environment, low interest rates and attractive valuations.
Our underweight on Financials impacted the performance as there was a strong rebound in investor
confidence with regard to NPA formation, which is now expected to be lower than initially feared.
Likewise, our overweight on Information Technology impacted performance as the appreciating Rupee
resulted in concerns with regard to margins of IT companies resulting in investors turning cautious on
the sector despite strong business momentum.
Sep-20
Sector/Weight Fund Benchmark OW/UW Fund
Cement / Building Mat 12.4% 5.0% 7.4% 12.4% 0.0%
Consumer Staples 6.2% 3.3% 2.9% 6.1% 0.1%
Auto 11.5% 9.4% 2.1% 13.0% -1.6%
Information Technology 7.0% 5.8% 1.2% 7.7% -0.6%
Energy 1.5% 0.3% 1.2% 1.5% -0.1%
Commodities 14.7% 14.6% 0.2% 13.0% 1.7%
Industrials 11.2% 11.8% -0.6% 9.8% 1.4%
Telecommunication Services 0.0% 1.4% -1.4% 0.0% 0.0%
Utilities 3.1% 4.5% -1.4% 3.1% 0.0%
Consumer Discretionary 11.3% 14.5% -3.2% 10.1% 1.3%
Financials 12.4% 17.3% -4.9% 11.1% 1.3%
Health Care 6.7% 12.0% -5.3% 8.5% -1.8%
Dec-20 Change during the
Qtr
During the quarter the fund increased exposure towards Commodities, Industrials and Financials
primarily, while reducing exposure towards Health Care, Auto and Information Technology.
Top 3 positive contributors Sector OW/UW
Commodities Underweight
Cement / Building Mat Overweight
Consumer Discretionary Underweight
Top 3 negative contributors Sector OW/UW
Utilities Underweight
Information Technology Overweight
Financials Underweight
Key changes during the quarter
What worked
What did not work

3. Quarterly Update January 2021
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Commodities
We maintain our optimism on the sustainability of the current commodity cycle driven by a cyclical
recovery globally. Additionally, demand recovery has been swift over the last 6 months with supply yet
to catch up resulting in prices increases across the board; a key driver of profitability. Deleveraging is
expected to be significant in this period resulting in re-rating of equity valuations.
Financials
The portfolio consists of a blend of Financial sector companies comprising of Banks, NBFCs and general
insurance. We continue to remain optimistic on the longer-term growth potential of the sector although
near term concerns on NPA formation cannot be ruled out. We remain optimistic that companies in our
portfolio are well capitalised and will be able to absorb any shocks that might arise as a result of the
covid-19 impact.
Cement/Building material
The sector continues to surprise with volumes continuing to show improvement led by demand from
semi-urban and rural areas. Additionally, pricing discipline has been maintained and will likely aid
profitability over the medium term as we continue to expect pan-India clinker utilisation inch up led by
pick up in government spends on low-cost housing and infrastructure and better rural housing demand.
Portfolio Metrics Fund Benchmark Commentary
PB Ratio 2.5 2.5
The Fund continues to remain focussed on its value-
oriented stock picking approach. PB ratio of the fund
is in line with the benchmark.
Source: Bloomberg, Based on trailing 12 months data
During Q3 FY21, there has been a broad-based rally, however Nifty outperformed the NSE Midcap and
NSE Smallcap indices. We continue to believe valuations are extremely attractive in Mid and Small caps
(specifically certain sectors) and continue to remain overweight with ~80% allocation of the fund
towards the same. The fund continues to hold a relatively higher weight (~59%) in Cyclical sectors as
compared to S&P BSE MidSmall cap 400 Index (53%).
CY2021 appears to be an interesting year from a value-oriented investment strategy as easy liquidity,
negative real rates, weak US dollar and a cyclical recovery in the world economy is likely to result in the
return of inflation. Thus, companies with hard assets and leverage are likely to outperform as growth
returns with the fund well positioned to benefit from the same. The fund continues to be positioned to
benefit from a Cyclical segment recovery – mainly Domestic Infra, Construction, Cement, Metals, etc.
Portfolio stance – Key sectors
Fund Manager Commentary
Fund – Key metrics

4. Quarterly Update January 2021
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Stable Sectors: Retail Banks & NBFC’s, IT, Consumer Staple & Discretionary, Auto, HealthCare
Cyclical Sectors: Corp Banks & NBFC’s, Energy & Utilities, Industrials, Cement, Commodities, Telecom
Cyclical & Stable Exposure with Top 3 Stocks in each sector
Fund Benchmark Fund Benchmark
Banks - Corp 4.0% 3.1% Banks - Retail 1.6% 2.8%
ICICI 4.0% RBL 1.6% 0.7%
Energy 1.5% 0.3% Information Technology 7.0% 5.8%
BHARAT PETROLEUM 1.5% BIRLASOFT 2.8% 0.3%
PERSISTENT SYSTEMS 1.9% 0.5%
KPIT TECHNOLOGIES 1.2% 0.1%
Industrials 11.2% 11.8% NBFC - Stable 4.3% 4.7%
KEC 3.2% 0.3% MAS FINANCIAL 2.2% 0.1%
NCC 2.2% 0.2% ICICI LOMBARD 2.2%
VRL LOGISTICS 1.6% 0.0%
Commodities 14.7% 14.6% Consumer Staples 6.2% 3.3%
DEEPAK NITRITE 3.8% 0.4% EMAMI 2.4% 0.6%
JINDAL STEEL 2.9% 0.7% TATA CONSUMER 1.9%
VARDHMAN TEXTILE 1.8% 0.1% RADICO KHAITAN 1.9% 0.2%
Cement / Building Mat 12.4% 5.0% Auto 11.5% 9.4%
JK CEMENTS 2.7% 0.4% MINDA INDUSTRIES 2.2% 0.2%
RAMCO CEMENT 2.0% 0.6% MRF 2.1% 1.0%
ACC 1.6% BOSCH 1.9%
Utilities 3.1% 4.5% Health Care 6.7% 12.0%
GUJARAT GAS 2.5% 0.4% IPCA LABS 2.7% 0.9%
NAVA BHARAT VENTURES 0.6% 0.0% AUROBINDO PHARMA 2.3%
ALEMBIC PHARMA 1.1% 0.3%
NBFC - Cyclical 2.5% 6.7% Consumer Discretionary 11.3% 14.5%
ICICI SECURITIES 2.0% 0.2% VOLTAS 2.5% 1.2%
MAGMA FINCORP 0.6% CROMPTON GREAVES CONS 1.9% 1.1%
INDIAN HOTELS 1.9% 0.5%
The sectors / stocks mentioned herein should not be construed as an investment advice or recommendation from IDFC Mutual
Fund and IDFC Mutual Fund may or may not have any future position in these sectors / stocks.
All data as on 31st December 2020.
Fund Stable Cyclical Total
Large Cap 10% 8% 17%
Mid Cap 17% 22% 39%
Small Cap 14% 30% 44%
Total 41% 59%
Benchmark Stable Cyclical Total
Large Cap 2% 0% 2%
Mid Cap 33% 32% 65%
Small Cap 12% 21% 33%
Total 47% 53%
Cyclical Stable
Fund positioning – Stable & Cyclical Framework

5. Quarterly Update January 2021
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Fund Performance
Performance based on NAV as on 31/12/2020. Past performance may or may not be sustained in future. The performances given are of regular plan growth
option. Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission
expenses etc. #Benchmark Returns. The fund has been repositioned from a mid-cap fund to a value fund w.e.f. May 28, 2018. IDFC Sterling Value Fund is
managed by Mr. Anoop Bhaskar since April 2016 and Mr. Daylynn Pinto since October 2016.
Other Funds managed by the Fund Manager
Performance based on NAV as on 31/12/2020. Past Performance may or may not be sustained in future. The performance details provided herein are of
regular plan growth option. Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution
expenses, commission expenses etc. 1The fund has been repositioned from a mid-cap fund to a value fund w.e.f. May 28, 2018. 4The fund has been
repositioned from Balanced category to Aggressive Hybrid category w.e.f. April 30, 2018.
IDFC Sterling Value Fund
(An open ended equity scheme following a value investment strategy)

6. Quarterly Update January 2021
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Disclaimer: MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
The Disclosures of opinions/in house views/strategy incorporated herein is provided solely to enhance the transparency about the
investment strategy / theme of the Scheme and should not be treated as endorsement of the views / opinions or as an investment
advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document has
been prepared on the basis of information, which is already available in publicly accessible media or developed through analysis of IDFC
Mutual Fund. The information/ views / opinions provided is for informative purpose only and may have ceased to be current by the time
it may reach the recipient, which should be taken into account before interpreting this document. The recipient should note and understand
that the information provided above may not contain all the material aspects relevant for making an investment decision and the security
may or may not continue to form part of the scheme’s portfolio in future. Investors are advised to consult their own investment advisor
before making any investment decision in light of their risk appetite, investment goals and horizon. The decision of the Investment Manager
may not always be profitable; as such decisions are based on the prevailing market conditions and the understanding of the Investment
Manager. Actual market movements may vary from the anticipated trends. This information is subject to change without any prior notice.
The Company reserves the right to make modifications and alterations to this statement as may be required from time to time. Neither
IDFC Mutual Fund / IDFC AMC Trustee Co. Ltd./ IDFC Asset Management Co. Ltd nor IDFC, its Directors or representatives shall be liable for
any damages whether direct or indirect, incidental, punitive special or consequential including lost revenue or lost profits that may arise
from or in connection with the use of the information.