Our Maiden Offering: 3P India Equity Fund 1

Category: Cat III AIF

Tenure: Open-Ended Scheme

First allotment date: 04 May 2023

Fund Managers: Mr. Prashant Jain and Mr. Ashwani Kumar

Assets under Management: ₹13,500 crores(approx.). Assets Including 3P India Equity Fund 1M.
^{Data as of 31 August 2024}

Fund Features

Objective: The Fund has been set up with the objective to achieve long-term capital appreciation by investing in permissible securities/instruments in accordance with Memorandum and the Regulations.

Investment Philosophy: Creating a portfolio of sustainable and reasonably valued businesses represents the core of 3P Investment Philosophy. Avoiding weak businesses lowers the risk of permanent loss of capital/returns. Effective diversification across key economic and business variables reduces portfolio risk. Further, risk in equities reduces as the time horizon increases, hence we aim to follow a low churn strategy. A low churn strategy also reduces costs.

Portfolio Characteristics: In line with the Investment Philosophy of 3P, 90% of the Fund (in our judgement) comprises of companies that enjoy leadership/strong positions in respective businesses and should be able to increase/maintain their market share. The portfolio is well diversified across key sectors and economic variables. The Fund is overweight consumer discretionary, financials, healthcare, industrials & utilities and is underweight consumer staples, IT, materials and oil & gas.

In our opinion, portfolio companies follow good ESG practices. Interestingly, companies in conventional power have plans to rapidly scale up their renewable portfolio.

Given the recent outperformance of small and mid caps, the portfolio is tilted towards large caps. We will look to increase exposure to small and mid caps meaningfully during market downturns.