NJBAF-Brochure.pdf - NJ Mutual Fund

www.njmutualfund.com1

*Private circulation only

#BuiltOnRules

Balance hai toh Behtar hai.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS,READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

FOLLOWS RULE-BASED ACTIVE INVESTING

www.njpms.in2Portfolio Management Services

For private circulation only. This presentation contains 40 slides and must be viewed in its entirety.

ABOUT NJ GROUP

ONE OFINDIA'S LARGESTMUTUAL FUND DISTRIBUTORS

A BUSINESS BUILT ON TRUST

Our mission is to transform the lives of people across India by ensuring their financial well-being. With a humble beginning in 1994, we are privileged today to impact the lives of countless families. A reputed name in the financial services industry, NJ Group today is expanding its horizons into diverse businesses.

We are driven with the passion for transforming lives, and we value trust above everything.

We are BUILT ON TRUST.

INR 1,16,400+ CRORES AUM*

EMPLOYEES

1700+

ACTIVE DISTRIBUTORS

27,383+

NJ STARTED IN

1994

*Asset managed by various AMCs, mobilised by NJ

As

on J

un

e 20

22



NJ’s HORIZON

EMPLOYEES

1500+

FINANCIAL PRODUCTS DISTRIBUTION PLATFORM

MUTUAL FUNDS

EQUITY & ETF

BONDS & FD

NPS

LOAN AGAINST MF

INSURANCE BROKING

NBFC OFFSHORE

ASSET MANAGEMENT

EDUCATION WELLNESS

INTERIOR REAL ESTATE CHARITABLE TRUST



NJ MUTUAL FUND

NJ Group's PMS business commenced in the year 2010. The total Assets Under Management (AUM) currently are INR 3,200+ Crores (As on May 31, 2022) with approximately 4,000+ investors.

NJ Asset Management received SEBI approval to launch its Mutual Fund business in April 2021. NJ Mutual Fund launched its first scheme the NJ Balanced Advantage Fund in October 2021.

As on June 30, 2022 NJ Balanced Advantage Fund has an AuM of INR 4,735.23 crores.



RULE-BASED ACTIVE INVESTING



INTRODUCING RULE-BASED ACTIVE INVESTING

DISCIPLINED

MARKETRETURN

ACTIVERETURN

DISCRETIONARY MANAGEMENT



UNDERSTANDING RULE-BASED ACTIVE INVESTING

Select time tested attributes

Determine criteria to identify these attributes

Specify measures and limits

Test and validate rules for efficiency

Combine complementary rules to form a protocol

Use the protocol to allocate assets, select stocks and assign weights

Define rules



GLOBAL EQUITY SMART BETAAUM GROWTH ($MLN)

Source: Bloomberg. Data for 2021 till month of August.

There is no single approach that defines a smart beta strategy.Smart beta emphasizes capturing investment factors or market inefficiencies in a rule-based and transparent way.

Equity Smart Beta AUM growing at 30% whereas Equity AUM is growing at 20%.

Equity Smart Beta AUM Total Equity Mutual Fund AUM



YEARLY FLOWS FOR EQUITY MUTUAL FUNDS AND ACTIVE EQUITY ETF GLOBAL

Source: Bloomberg. Data for 2021 till month of August. Note : Value in $ Mlns

Cumulative Flows into Smart Beta and Equity Mutual Funds since 2011 (USD Bln)

Smart Beta Funds Equity Mutual Funds


*Private circulation onlySource: Bloomberg. Data from Aug 2016 till Aug 2021.

Quant Fund: (India) Mutual Fund: (India)

GOOGLE SEARCH TRENDS



FACTOR BASED INVESTING



EVOLUTION OF FACTOR BASED INVESTING

Performance based on managers skills.

Performance coming from factors.

ActiveReturn

1980s 1990s 2000s

ActiveReturn

ActiveReturn

Active Return

ExcessMarket Beta

ExcessMarket Beta

ExcessMarket Beta

Value FactorSmall Cap Factor

Value FactorSmall Cap FactorMomentum Factor

Low Volatility Factor



FACTOR BASED INVESTING

Nutrients are the foundation of the food we eat. Factors are the foundation of investing Carbohydrates

Dietary Fiber

Fats

Proteins

Low Volatility

Value Momentum

QualityPutting together a balanced diet means understanding what nutrients are required

in our food, and choosing the right mix that best supports our needs.Similarly, knowing the factors that drive returns in your portfolio can help you to

choose the right mix of assets and strategies for your portfolio

This analogy has been used by two prominent academics John Cochrane and Andrew Ang.



KEY FACTORS

MOMENTUM

QUALITY

VALUE

LOW VOLATILITY

METRICS: Moving Averages, Rate of Change of Stock Price

METRICS:Gearing Ratio, Debt-to-FAC, ROCE, ROE

METRICS:Price-to-earning, Price-to-sale, Price-to-book, EV-to-EBITDA Treynor's Ratio

METRICS:Beta, Sharpe ratio, Treynor's Ratio



NJ’s INVESTMENT PROCESS

RULE-BASEDACTIVE

ALLOCATIONMARKET INDICATORS MACRO INDICATORS

Equity valuation Long term G-sec yield Liquidity Overnight rates

ASSET ALLOCATION



NJ’s INVESTMENT PROCESS

RULE-BASED ACTIVE

SELECTIONMARKET FACTORS FUNDAMENTAL FACTORS

Momentum Volatility Value Quality

PORTFOLIO



BENEFITS OF RULE-BASED ACTIVE INVESTING

Selection of securities is on a predefined set of rules, eliminating

human bias

The investment process is

pre-tested for performance and

volatility in various scenarios

The Portfolio stays "True to Label" at

all times



INVESTOR ASSET ALLOCATION QUANDARY

DIY

FOMO

YOLO

Do It YourselfHow much should I invest in equity and debt?

Fear Of Missing OutShould I invest now or wait?

You Only Live OnceDo I take the risk or be conservative?

OR



HOW BALANCED ADVANTAGE FUNDS WORK

What many investors do? What SMART investors do?

BUYHIGH

SELLLOW

BUYLOW

SELLHIGH

Since not everyone is a smart investor, consider opting for a Balanced Advantage Fund.



WHY NJ BALANCED ADVANTAGE FUND?

All weather* fundWorks efficiently across market cycles

Avoids tax eventsMinimal tax exposure

Rule-Based Active FundEliminates bias in decision making in terms of asset allocation

Manages volatility through Periodic RebalancingBetter risk adjusted returns

*fund intends to work efficiently across various market cycles



SALIENT FEATURES

Investment Objective

Type of Scheme

Plan & Options

Minimum Redemption Amount

Entry Load

Minimum Amount

Exit Load

SIP/STP/SWP

Benchmark Index

The investment objective of the Scheme is to generate capital appreciation by dynamically allocating its assets between equity and specified debt securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

An open-ended dynamic asset allocation fund

Regular Plan & Direct PlanEach Plan offers following two Options(i) Growth Option and (ii) Payout of Income Distribution cum Capital withdrawal OptionLumpsum Investment: Rs. 500/- and in multiples of Rs. 1/- thereofAdditional Application: Rs. 500/- and in multiples of Rs. 1/- thereof

There is no minimum redemption criteria

Not applicable

Available

NIFTY 50 Hybrid Composite Debt 50:50 Index

1. NIL Exit load – for 5% of the units upto completion of 30 days.2. All units redeemed /switched-out in excess of the 5% load free units

● 1.00% - if Units are redeemed/switched-out on or before 30 days from the date of allotment● Nil - if redeemed after 30 days from the date of allotment.



CONTACT YOUR FINANCIAL ADVISOR

Please contact yourMutual Fund DistributororFor more details

Toll Free Number 1860 500 2888Websitewww.njmutualfund.com

Mail us [email protected]



RISKOMETER

The riskometer is based on the portfolio of June 30, 2022 and is subject to periodic review and change, log onto www.njmutualfund.com for updates.

http://www.njmutualfund.com/

http://www.njmutualfund.com/



This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. The views expressed herein are based on the basis of internal data, publicly available information & other sources believed to be reliable. Any calculations made are approximations meant as guidelines only, which need to be confirmed before relying on them. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. The data used in this presentation is obtained by NJ Asset Management Private Limited (NJAMC) from the source which it consider reliable. While the utmost care has been exercised while preparing this presentation, NJAMC does not guarantee its accuracy / completeness of the information. 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 information provided in this presentation shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of NJAMC. Neither NJAMC, NJ Trustee Private Limited, NJ Mutual Fund nor any person connected with it, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient of this material should rely on their investigations and take their own professional advice. Prospective 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 NJ Balanced Advantage Fund. Investor can obtain Statement of Additional Information, Scheme Information Document and Key Information Memorandum from our website www.njmutualfund.com for further details of scheme and risk associated with it.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

DISCLAIMER

NJBAF-Brochure.pdf - NJ Mutual Fund

Documents

Transcript of NJBAF-Brochure.pdf - NJ Mutual Fund