Learn about Mutual Fund

1. IDFC Focused Equity Fund
An open ended equity scheme investing in maximum 30 stocks with multi cap focus
Right Stocks + Right Allocation
Focused Strategy

2. What drives portfolio level return?
One of the common mistakes in investing is to under-allocate to a winning investment idea
Superior portfolio returns are driven by a combination of two factors:
❑Finding the right stocks for investment
❑Allocating sufficiently enough to contribute to overall returns
Position sizing is one of the most important yet an over-looked aspect of portfolio construction
process
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3. Mathematical illustration
Equal-Weight Portfolio A Portfolio B
Stock
Returns
Allocation Return Allocation Return Allocation Return
Stock 1 30% 20% 6.0% 5% 1.5% 35% 10.5%
Stock 2 20% 20% 4.0% 5% 1.0% 35% 7.0%
Stock 3 10% 20% 2.0% 20% 2.0% 20% 2.0%
Stock 4 -10% 20% -2.0% 35% -3.5% 5% -0.5%
Stock 5 -20% 20% -4.0% 35% -7.0% 5% -1.0%
Total 100% 6% 100% -6% 100% 18%
Better allocation to
winning stocks
materially changes the
portfolio performance
Key to success:
[a] Identify the winning stocks
[b] Allocate ample enough to make an impact
+
- -
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4. Expected risk/return characteristics
Risk
Return
Passive
Traditional
Passive
Smart
Active
Diversified
Active
Concentrated
High
High
Low
Concentrated portfolios:
✓Meant for mature investors
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5. Introducing
IDFC FOCUSED EQUITY FUND

6. About the Fund
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Concentrated multi-cap portfolio of a maximum of 30 stocks by design
Flexibility to invest across market cap and across sectors
Portfolio is a mix of Core and Tactical ideas
Seeking to invest in companies with superior Quality and Growth characteristics
Portfolio to reflect Fund Manager’s conviction, rather than a benchmark hug

7. Portfolio Approach
Core Portfolio
Tactical Portfolio
High quality and Growth oriented businesses
Turnaround opportunities

8. Investment Philosophy
Growth
Quality of
Business
Quality of
Management
Investing in scalable businesses that participates in a
large opportunity size
Visibility of growth is equally important
Superior Return on Capital Employed (ROCE)
Ability to generate healthy operating cash flow
Low capital intensity
Shareholder value creation & a strong corporate
governance
Efficient capital allocation
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9. Portfolio Construct
CORE PORTFOLIO
High Growth
High Quality
High Growth
Low Quality
Low Growth
High Quality
ALPHA
GENERATING
IDEAS
The ‘CORE’ comprises of companies with High Earnings Visibility & Proven Track Record.
In addition, Alpha-generating, research driven ideas could originate from the other two segments.
ALPHA
GENERATING
IDEAS
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10. Stock Selection Philosophy
High Growth
Low Quality
High Growth
High Quality
Low Growth
Low Quality
Low Growth
High Quality
Preferred space
Quality
Growth
High
High
Low
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11. Risk Management
Keen eye for risk mitigation
Force displacement by design – seeks to reflect
only the best ideas in the portfolio
Well – dispersed concentration
Active and nimble portfolio management
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12. 12
Truly Multi-cap investment approach
Source : ICRA MFI
Oct 2016 to Feb 2021
Calendar
Year
Large
(%)
Mid
(%)
Small
(%)
Debt
(%)
CY 2017 53 23 12 11
CY 2018 47 21 26 6
CY 2019 54 21 22 4
CY 2020 67 10 20 3
CY 2021* 68 12 19 0
Allocation to Market Cap Segment
Source : ICRA MFI
CY 2017 to CY 2021. Average of Large Cap, Mid Cap, Small Cap
and Debt & others.
*CY 2021 data is as on 28 Feb 2021
Market capitalization range from Jan 2018 is taken from the
data published by AMFI.
Data prior to Jan 2018 is calculated using ICRA MFI logic.
0
20
40
60
80
100
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Market
Cap
Exposure
(%)
Large Cap(%) Mid Cap(%) Small Cap(%) Debt (%)

13. 13
Fund Performance v/s Indices
Source : ICRA MFI
IDFC Focused Equity Fund – regular plan growth option has been considered. Underperformance /Outperformance is the difference between return of the fund and respective benchmark
The fund is managed by Mr. Sumit Agrawal (w.e.f. 20th October 2016)
31 Oct 2016 to 28 Feb 2021; performance for total return index rebased to 100
Past performance may not be sustained in the future
Particulars CAGR return (%) Absolute return (%)
Underperformance/
Outperformance (%)
IDFC Focused Equity Fund 12.4 65.5
Benchmark - S&P BSE 500 TRI 13.3 71.9 -6.4
Nifty 50 TRI 14.2 77.5 -12.0
Nifty Midcap 100 TRI 10.3 52.9 12.7
Nifty Smallcap 100 TRI 6.1 29.3 36.3
The fund has
outperformed Mid &
Small Cap index
50
80
110
140
170
200
Oct-16
Jan-17
Apr-17
Jun-17
Sep-17
Nov-17
Feb-18
Apr-18
Jul-18
Oct-18
Dec-18
Mar-19
May-19
Aug-19
Oct-19
Jan-20
Mar-20
Jun-20
Sep-20
Nov-20
Feb-21
Trend of IDFC Focused Equity Fund v/s Indices
IDFC Focused Equity Fund S&P BSE 500 Nifty 50 Nifty Midcap 100 Nifty Smallcap 100

14. How is the Fund positioned currently?
❑ The fund is overweight in Commodities (Specialty Chemicals), Information Technology and Telecom sectors.
❑ The fund is underweight in Health Care, Consumer Discretionary and Staples and Utilities sectors and marginally
underweight in Energy and Cement /Building Materials.
Source : Bloomberg
Data as on 28 Feb 2021
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15. Fund Details
Focused Fund – An open ended
equity scheme investing in
maximum 30 stocks with multi cap
focus
Fresh Purchase - Rs.5,000/-
& any amount thereafter
S&P BSE 500 TRI
1) If redeemed/switched out within 365 days from
the date of allotment:
a) Upto 10% of investment: Nil,
b) For remaining investment: 1%
2) If redeemed / switched out after 365 days from
date of allotment: Nil
Nature
Minimum Application
Amount
Benchmark Exit Load
Mr. Sumit Agrawal
Fund Manager*
Rs. 1,437.71 Crores
Month End AUM
Data as on 28 Feb 2021
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*Overseas investment will be managed by Mr. Viraj Kulkarni

16. Fund Performance
Performance based on NAV as on 26/02/2021. 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. ##Alternate Benchmark Returns.
$$ The strategy of the Fund has been changed from large cap to focused fund w.e.f. April 18, 2017. The fund is managed by Mr. Sumit Agrawal (w.e.f. 20th October
2016). Mr. Viraj Kulkarni is the dedicated fund manager for overseas investments of the scheme.
Performance Table
Scheme Name
CAGR Return (%) Current Value of Investment of Rs.10,000
1 Year 3 Years 5 Years
Since Inception
March 16, 2006
1 Year 3 Years 5 Years
Since Inception
March 16, 2006
IDFC Focused Equity Fund$$ 21.71% 5.69% 15.74% 10.80% 12,165 11,805 20,761 46,360
S&P BSE 500 TRI# 34.42% 11.12% 17.54% 11.87% 13,431 13,717 22,425 53,535
Nifty 50 TRI## 31.37% 12.88% 17.29% 11.94% 13,127 14,378 22,189 54,055
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17. Other Funds Managed by the Fund Manager
Performance based on NAV as on 26/02/2021. 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. ##Alternate Benchmark Returns.
§Current Index performance adjusted for the period from since inception to June 28, 2007 with the performance of S&P BSE 100 price return index (Benchmark).
2§The fund has been repositioned from an IPO fund to a large cap fund w.e.f. April 18, 2017
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18. Product Label
Disclaimer:
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 stocks may or
may not continue to form part of the scheme’s portfolio in future. 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.
IDFC Focused Equity Fund
(An open ended equity scheme investing in maximum 30 stocks
with multi cap focus)
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED
DOCUMENTS CAREFULLY.