EQUITY FUNDS

Unifi BCAD Fund

Objective

India continues to be amongst the fastest-growing trillion-dollar economy in the world
that is likely to reach a nominal GDP of USD 5 trillion before the end of this decade,
from USD 2.6 trillion today. To support this scale, several social, and regulatory have
been unveiled, and as they spread through the economy, powerful repercussions are
being felt across India's consumption stack. An unintended consequence of this change
is impacting the competitive ability of India's unorganized businesses. And this has led
to a disruptive shift favoring India's organized businesses across various segments.

Investment Approach

The fund shall focus on a bottom-up approach for selection of securities. The securities
would be identified based on fundamental and rigorous stock selection process backed
by in-house research and supported by external validation. The fund shall follow a 'buy
and hold' strategy but will not hesitate to sell to correct a mistake, redeploy in a
relatively better opportunity, or when the stock achieves a valuation higher than is
warranted. The fund would identify stocks considering qualitative and quantitative
analysis including earnings growth, capital efficiency, relative margin of safety to
valuations and management integrity. 

Investment Risks

The fund would focus on companies in sectors where it expects a gradual shift in
consumer demand from the unorganized players to the organized players. The
investment process would involve analyzing multiple sectors and drawing up the list of
factors which would be triggers for the migration of demand to the organized space. The
key risk would be the time required for the transition to start playing out within the
selected sectors. There might be stocks/sectors wherein the anticipated migration might
take longer than the initially estimated time periods. Thus, it is suggested that investors
take a longer-term view when investing in this theme.

Universe

The fund would be investing in companies which are operating across the following
sectors with:

Roti	Kapda	Makaan	Plus, One
Food/Snacks/Masalas	Home care	Home appliances	Financialization
Dairy & value added	Personal care	Kitchen appliances	Hotels
QSR Chains Restaurants	Clothing	Cables and electricals	Gaming
Rice	Innerwear	Paints	Luggage
Non-alcoholic beverages	Footwear	Tiles	Diagnostics
Alcoholic beverages	Jewelry	Sanitary ware	Healthcare
Cigarettes		Pipes	Consumables
Food retail		Plywood/MDF	Logistics
Proteins		Roofing	Travel
		Structural steel	Entertainment
		Staffing
		Office spaces

 

Portfolio Structure

Please refer to the brochure to know more.