Learn about Mutual Fund

1. (Large Cap Fund - An open ended equity scheme
predominantly investing in Large Cap Stocks)
IDFC LARGE CAP FUND

2. Why Large Caps?

3. Key Characteristics of Large Caps
Large Floating Stocks
Strong customer
base
High Liquidity
Across products to
sustain in
challenging times
Good Corporate
Governance
Fundamentally
Strong
Experienced and
Trustworthy
management
Potential to withstand
tougher times over
the long term
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4. Large caps provide upside return potential
with relatively low volatility
Source: ICRA MFI Explorer.
Data on 3 year rolling returns provided above is annualised and pertains to dates 01stJan’10 to 31st Aug’20
Past performance may not be sustained in the future
(5.21)
(11.06)
(17.10)
32.11
37.48 41.76
10.90 11.63 8.24
6.31
11.13 11.75
S&P BSE 100 TRI S&P BSE Mid cap TRI S&P BSE 250 Small cap TRI
3 year rolling returns (%)
Minimum Maximum Average Standard Deviation
% times positive returns generated by S&P BSE 100 TRI 98.5%
% times positive returns generated by S&P BSE Mid Cap TRI 88.3%
% times positive returns generated by S&P BSE 250 Small Cap Index TRI 78.6%
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5. Relatively lower drawdowns with the capability
to recover faster
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
31-Aug-06
31-Aug-07
31-Aug-08
31-Aug-09
31-Aug-10
31-Aug-11
31-Aug-12
31-Aug-13
31-Aug-14
31-Aug-15
31-Aug-16
31-Aug-17
31-Aug-18
31-Aug-19
31-Aug-20
S&P BSE 100 TRI Drawdown
Source: Bloomberg
31st August 2006 to 31st August 2020 5

6. Valuation have moved up led by Market up move
and Earnings cut
21.7
20.2
22.4
18.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28-Feb-14
31-May-14
31-Aug-14
30-Nov-14
28-Feb-15
31-May-15
31-Aug-15
30-Nov-15
29-Feb-16
31-May-16
31-Aug-16
30-Nov-16
28-Feb-17
31-May-17
31-Aug-17
30-Nov-17
28-Feb-18
31-May-18
31-Aug-18
30-Nov-18
28-Feb-19
31-May-19
31-Aug-19
30-Nov-19
29-Feb-20
31-May-20
31-Aug-20
S&P BSE 100 Positive PE
Positive PE Average +1 Standard deviation -1 Standard deviation
Source: Bloomberg; PE – Price to Earnings Ratio
Trailing 12 months Positive PE 6

7. 7
Past return may work as a Contra Indicator
7.0%
10.0%
16.5%
22.5%
Greater than 25%
0 to 25%
-25% to 0%
Less than -25%
Today, we are in
here
Next 3 year Return (CAGR)
1 year Return
Source: MFI, Data for S&P BSE 100 TRI Index considered from Jan’08 to Aug’20
Data as on August 2020 Past performance may or may not be sustained in future

8. Why Large caps now?
Valuation
Challenging times
Current PE below
its 6 year average
Large caps
favourably placed
since relatively
financially sound
Industry Leaders
Return Potential
Opportunity to
invest in leaders at
a reasonable value
Returns expected to
rebound over the
next 3 to 5 years
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9. Why IDFC Large Cap Fund?

10. About the Fund
*The allocation mentioned is as per current strategy and market conditions; this is however subject to change without notice. As per the fund’s mandate, it invests 80-100% in Large cap companies.
Given the available investment opportunities in the market, the fund manager may invest 0-20% in mid and small cap companies as well.
Large Cap oriented
Investment
Approach
Diversified equity
fund (80 to 100%
in Large Caps)
Blend of Top Down
and Bottom Up
Stable Alpha
Potential
Additional Alpha
Opportunities
Combining Low
Volatility and Alpha
Opportunities
Opportunistic
Mid/Small Cap
allocation up to 20%*
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11. Three pillar strategy for Portfolio Construct
Buying the
right sectors
Buying
Sector leaders
Opportunistic
allocation to
Mid / Small caps
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Note: Investment strategy shall be as per provisions of Scheme Information Document

12. 12
Historically, each year has different Winning Sectors
Buying the
right sectors
❑ Getting the sector allocation right can be a key driver of the overall portfolio returns
❑ Timely, Overweight & Underweight decisions can drive upside and limit downside
❑ Our focus and endeavor is to identify such sectors ahead in time
❑ The Fund may have a large deviation from the benchmark sector weights
Source: ICRA MFI explorer
Calendar year returns in % provided for the price indices given above. CY 2020 return is as on 31st August 2020.
Past performance may not be sustained in the future
Index 2020 2019 2018 2017 2016 2015 2014 2013 2012
S&P BSE Auto (4) (11) (22) 32 8 (1) 52 6 40
S&P BSE Bankex (26) 20 6 39 7 (10) 65 (11) 56
S&P BSE Consumer Durables (8) 20 (9) 102 (7) 24 65 (25) 46
S&P BSE Capital Goods (19) (10) (2) 40 (4) (9) 50 (7) 34
S&P BSE FMCG (1) (3) 11 32 3 2 18 10 46
S&P BSE Health Care 37 (4) (6) 0 (13) 15 47 22 38
S&P BSE IT 16 9 26 11 (8) 4 17 60 (1)
S&P BSE Metal (15) (11) (20) 48 36 (32) 8 (12) 19
S&P BSE Oil & Gas (11) 7 (15) 34 27 (4) 12 4 13
S&P BSE Power (15) (4) (17) 20 1 (6) 23 (15) 11
S&P BSE Realty (23) 24 (31) 106 (8) (14) 5 (34) 53
S&P BSE Telecom 10 11 (41) 49 (22) (0) 6 17 (3)

13. 13
Investment in Sector Leaders
Buying
Sector
leaders
Strong Growth Potential
❑ Relatively higher visibility of growth
❑ Sustainability of earnings
Good Quality of business & management
❑ Superior Return on Capital Employed and low Leverage
❑ Low capital intensity and healthy operating cash flow
❑ Efficient capital allocation and strong Corporate Governance
Robust Fundamentals
❑ Strong execution track record.
❑ Demonstrated leadership in scale, size, operating margins and return on
capital employed.
❑ Stronger ability to withstand business cycle downturns.

14. 14
Exploring additional Alpha opportunities
Opportunistic
allocation to
mid / small
caps
2.7
12.9
16.0
15.7
11.6
7.5 8.0
6.8
10.3 11.8
12.9
9.2
15.3
8.9
11.4
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
Historical Mid & Small Cap allocation
IDFC Large Cap Fund - Mid & Small Cap allocation (%)
S&P BSE MidSmall Cap TRI Index Value
❑ To take advantage of any mispriced opportunities or a benevolent risk-on environment
Source: ICRA MFI
Period: 30th Nov 2016 to 31st Aug 2020

15. How is the Fund positioned currently?
❑ The fund is overweight in Health Care and Telecommunication Services supported by our view of near term
earnings growth visibility.
❑ Increased weight in rural oriented Auto sector stocks, led by expectation of an earlier revival.
❑ Financials, Energy and Utilities are the three sectors with the highest underweight position in the fund.
Data as on 31st August 2020
Source : Bloomberg
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16. 16
Why IDFC Large Cap Fund?
❑ Benefit of predominantly investing in industry leading companies amongst the top 100 in the country*
❑ Blend of top down and bottom up investment philosophy in portfolio construction
❑ Active and nimble management with flexibility to have deviation from benchmark sector weights
❑ Growth and Quality overlay
*Top 100 as per SEBI Circular on Categorization and Rationalization of Mutual funds, dated October 6, 2017 and December 4, 2017. The market capitalization is subject to change on half
yearly basis. As per the fund’s mandate, it invests 80-100% in Large cap companies.

17. Fund Details
Large Cap Fund – An open ended
equity scheme predominantly
investing in Large Cap Stocks
Fresh Purchase - Rs.5,000/-
& any amount thereafter
S&P BSE 100 TRI Nil
Nature
Minimum Application
Amount
Benchmark Exit Load
Mr. Sumit Agrawal
Mr. Arpit Kapoor
Fund Manager*
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Rs. 514.93 Crores
Month End AUM
*Overseas investment will be managed by Mr. Viraj Kulkarni
Data as on 31st August 2020

18. Performance
Performance Table
Scheme Name
CAGR Return (%) Current Value of Investment of Rs.10,000
1 Year 3 Years 5 Years
Since Inception
June 09, 2006
1 Year 3 Years 5 Years
Since Inception
June 09, 2006
IDFC Large Cap Fund 8.00% 3.55% 7.78% 8.82% 10,800 11,103 14,551 33,320
S&P BSE 100 TRI# 4.29% 4.97% 8.17% 11.33% 10,429 11,568 14,812 46,097
Nifty 50 TRI## 4.31% 6.01% 8.75% 11.54% 10,431 11,915 15,214 47,348
Performance based on NAV as on 31/08/2020. 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 since it excludes distribution expenses, commission expenses etc.
#Benchmark Returns. ##Alternate Benchmark Returns.
The fund has been repositioned from an IPO fund to a large cap fund w.e.f. April 18, 2017. 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). The Fund Manager of the fund is Mr. Sumit Agrawal & Mr. Arpit Kapoor (w.e.f. 1st March 2017). Mr. Viraj Kulkarni is the dedicated
fund manager for overseas investments of the scheme.
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19. Performance based on NAV as on 31/08/2020. 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 since it excludes distribution expenses, commission expenses etc. #Benchmark Returns. ##Alternate Benchmark Returns.
§ The fund has been repositioned from an IPO fund to a large cap fund w.e.f. April 18, 2017. 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)
Other Funds Managed by the Fund Manager
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20. Other Funds Managed by the Fund Manager
Performance based on NAV as on 31/08/2020. 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 fund has been repositioned from an IPO fund to a large cap fund w.e.f. April 18, 2017. 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)
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21. Disclaimer:
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
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.
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IDFC Large Cap Fund
(Large Cap Fund- An open ended equity scheme predominantly investing in large cap stocks)