NEXT TRILLION DOLLAR OPPORTUNITY STRATEGY

November 2022 (Data as on 31st October 2022. Inception date – 03rd August 2007)

INVESTMENT APPROACH KEY FEATURES & PORTFOLIO ATTRIBUTES

Strategy Name: Next Trillion Dollar Opportunity Strategy A multi-cap strategy focused on identifying businesses benefitting
from India’s growing GDP
Investment Objective: The Strategy aims to deliver superior returns 15+ years track record with consistent outperformance over
by investing in stocks from sectors that can benefit from the Next benchmark across market cycles (11 out 15 calendar years)
Trillion Dollar GDP growth. It aims to invest in stocks across market
capitalisation with a focus on identifying potential winners that would High quality concentrated portfolio of 29 stocks
participate in successive phases of GDP growth.
Buy and Hold strategy with 8 stocks held for more than 12 years
Description of types of securities: Listed Equity Types of securities (Page Industries held since inception) resulting in wealth creation
selected as part of the investment approach: Diversified: A mix of Large, for investors
Midcap and Small cap Index agnostic: ~81% away from benchmark Nifty 500
Allocation of portfolio across types of securities: The strategy has Key sector allocation is to Banking, Consumer Discretionary,
the mandate to invest in Equity and Equity-related instruments across Software
the entire market capitalization spectrum of Large cap, Midcap and
Small cap companies
PORTFOLIO ACTIONS IN LAST 6 MONTHS
Benchmark: Nifty 500 TRI
Indicative tenure or investment horizon: Medium to Long term Companies Added: Reliance Industries Ltd., Zomato Ltd.
Other salient features: Focus on Sectors and Companies which promise
Companies Exited: Hindustan Petroleum Corpn Ltd.
a higher than average growth. Concentration on emerging Themes.
“Buy & Hold” strategy

PERFORMANCE SINCE INCEPTION One lac invested in the strategy on 3rd Aug 2007 would have grown
to `~8.3 lacs today against ~5.0 lacs invested in Benchmark

100
Next Trillion Dollar Opportunity Strategy Nifty 500 TRI
90
80 8.3X
70
60
50
40 5.0X
30
20
10
-
May-08

May-10

May-12

May-14
Mar-09

Mar-21
Aug-07

Nov-17

Nov-19
Dec-07

Dec-09

Dec-11

Dec-13

Dec-15
Sep-12

Sep-14

Sep-16

Sep-18

Sep-20

Sep-21
Feb-11

Feb-13

Feb-15

Feb-17

Feb-19

Jun-22
Jan-22
Apr-16

Apr-18

Apr-20
Oct-08

Oct-10
Jul-09

Jul-11

Jul-13

Jul-15

Jul-17

Jul-19

35 NTDOP Nifty 500 TRI

30 28.3
25
20.4 18.0 18.1
20 16.5
13.9 14.5 14.8
15 11.2 12.3 11.8 11.1
10.5
10 7.3
5 3.5
0
-5
-10 -6.6
1 Year 2 Years 3 Years 4 Years 5 Years 7 Years 10 Years Since Inception
TOP 10 HOLDINGS & SECTORAL ALLOCATION

Scrip Name (%) of Holding Banks 24.5

IT - Software 7.5
Pharmaceuticals & Biotechnology 7.4
ICICI Bank Ltd. 12.7 Textiles & Apparels 7.1
Automobiles 6.2
Kotak Mahindra Bank Ltd. 8.3 IT - Services 6.0
Industrial Products 5.2
Page Industries Ltd. 7.1 Consumer Durables 4.8
Diversified FMCG 4.5
Eicher Motors Ltd. 6.2 Insurance 4.5
Retailing 3.9
L&T Technology Services Ltd. 6.0 Transport Services 3.2
Auto Components 2.7
Voltas Ltd. 4.8 Personal Products 2.5
Gas 2.4
ITC Ltd. 4.5 Chemicals & Petrochemicals 2.1
Construction 1.7
MAX Financial Services Ltd. 4.5 Fertilizers & Agrochemicals 1.3
Cement & Cement Products 1.2
Tech Mahindra Ltd. 3.8 Food Products 0.8
Petroleum Products 0.4
State Bank Of India 3.5

STRATEGY CONTRIBUTORS (3 Year Trailing)

Top 5 Contribution Bottom 5 Contribution

ICICI Bank Ltd. 9.0% Bajaj Finance Ltd. -1.9%

L&T Technology Services Ltd. 8.4% City Union Bank Ltd. -1.3%

Voltas Ltd. 7.9% Federal Bank Ltd. -1.3%

Ipca Laboratories Ltd. 5.3% Hindustan Petroleum Corpn. Ltd. -1.2%
Max Financial Services Ltd. 4.6% Godrej Industries Ltd. -0.6%

RISK RATIOS PORTFOLIO FUNDAMENTALS & MARKET CAP

3 Year Data Strategy Benchmark Market Cap Weightage QGLP

Metrics
Standard Deviation 21.8% 22.4% Large Cap 49% Q: ROE FY24E 18%
Beta 0.9 1.0 Mid Cap 47% G: PAT Growth FY22-24E 16%
Sharpe Ratio 0.3 0.6 Small Cap 4% P: PE FY24E 20x
Cash & Equivalents 0%

HOW BUY RIGHT : SIT TIGHT WORKS

Market Cap
Initial Purchase Current Absolute
Company (Initial Purchase CAGR (%)
Date Market Cap* Growth
date)*
Page Industries Ltd. Dec-07 456 55,511 121.8X 38%
Eicher Motors Ltd. Dec-10 3,187 105,185 33.0X 34%
L&T Technology Services Ltd. Oct-16 8,610 37,363 4.3X 27%

*Market cap in crores

Disclaimers and Risk Factors: NTDOP Strategy Inception Date: 3rd Aug 2007; Data as on 31st October 2022; Data Source: MOAMC Internal Research;Source:
Capitaline and Internal Analysis; Please Note:Returns up to 1 year are absolute & over 1 year are Compounded Annualized. Returns calculated using Time
Weighted Rate of Return (TWRR) at an aggregate strategy level. The performance related information is not verified by SEBI. All portfolio related holdings and
sector data provided above is for model portfolio. Returns & Portfolio of client may vary vis-à-vis as compared to Investment Approach aggregate level returns
due to various factors viz. timing of investment/ additional investment, timing of withdrawals, specific client mandates, variation of expenses charged &
dividend income. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The
Portfolio Manager manages allocations in all client portfolios by way of a model portfolio which is in line with investment objectives of the portfolio strategy/
investment approach. Unless there are specific exclusion instructions by individual clients, all clients’ portfolios are aligned to a model portfolio; which means
replication and alignment of all clients’ portfolios in terms of scrip and allocation. New clients entering the strategy/ investment approach as of a particular
date are also aligned to the model portfolio. It must be noted that there are certain circumstances in which clients’ portfolio may deviate or differ from the
model portfolios to a material extent. This may happen due to factors like liquidity and free floating consideration in some stocks, organization level exposure
norms and related risk management, potential exit of a stock from the model portfolio thereby precluding it from buying in new client portfolios. The reasons
quoted here are indicative but not exhaustive and the portfolio manager reserves the right to deviate from model portfolio for groups of clients depending on
timing of their entry, market conditions and model portfolio construct at the time of their entry. Risk factors associated with the investment approach are
Equity risk, Systematic risk, Concentration risk, Model portfolio risk, Mismatch risk and Execution risk. To know more about the risk factors, please refer
disclosure document at motilaloswalmf.com. Investment in securities is subject to market and other risks, and there is no assurance or guarantee that the
objectives of any of the strategies of the Portfolio Management Services will be achieved. Please read Disclosure document carefully before investing.

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