(For internal circulation only) April 2025
ABSLI – Balance PAR Fund
Type & Investment Objective Fund Commentary
▪ As per the Fund Managers, Nifty is currently trading at ~18x
Par Investment philosophy at ABSLI is governed by principles of stable returns, FY24 P/E. Indian economy is doing well with strong tax
highest credit quality and liquidity. Market cycles are used to our advantage collection, especially the GST collections. Bank credit
with impeccable attention on the end result of these products. The strategy growth has also picked up around 15% currently. Normal
revolves around asset liability management which ensures stable return over monsoon bodes well for rural India.
long term. ▪ On the Fixed income front, Global central banks turned up
the hawkish rhetoric, US FOMC raised rates by 75 bps to
Fund Characteristics 3.00-3.25%, while delivering higher projections on future
expected rate hikes
Backbone of the investments is formed by Sovereign Government securities, ▪ RBI MPC in September hiked key repo rate by 50 bps taking
these are issued by Government of India, hence are of the highest credit quality it to 5.90% through a 5-1. RBI kept its stance unchanged. RBI
and display the risk-free return of the sovereign. Next comes the corporate highlighted risks from an uncertain global environment as
bond portfolio, which is predominantly comprised of AAA rated instruments, well as aggressive monetary policy actions by developed
these enhance the return provided by Government securities and at the same markets central banks.
time provide credit comfort in the portfolio. Major part of corporate bond ▪ This fund can be looked at by an investor who wants
portfolio comprises of public sector enterprises bonds which have backing of insurance coverage along with flexible/regular cash flows
Government as well as several Government serviced bonds. Apart from PSU and participation in equity market to the extent, invested by
AAA corporate bonds private sector corporate bonds are also AAA rated and of fund. The investment horizon of the fund should be in line
highest credit quality. A portion of fund will also be invested into equities to with the tenure of the plan.
generate better returns.
Investment Allocation
Market outlook
Proposed Investment Allocation
FY25 ended on a soft note with Nifty up 5.3% yoy. Midcap and smallcap indices Asset Category Proposed Allocation
also saw moderate gains in FY25 of 5.0% and 5.4% respectively. Market
sentiments was impacted by increasing tariff risks on the global economy, geo- Equity/AIF/REIT/Invit & Related Instruments 0-50%
political issues, FII outflows from EMs on dollar appreciation and cyclical Debt Instruments & Others 50-100%
softness in the domestic economy.
Debt Investments
US has announced reciprocal tariff rates under his new trade policy. India is Investments are made as per IRDAI regulations with minimum 50% of assets
subjected to 26% tariff but pharmaceutical products are not subjected to tariff. in life funds invested in Government securities. The regulator also mandates
This will lead to lower global growth and higher inflation. GDP growth has 15% of the assets to be invested in housing/infrastructure sector, where in
rebounded after the weak Q2FY25 print of 5.4% (now revised to 5.6%). We we have invested in bonds/debenture with the highest possible rating at AAA.
expect an economic revival to play out in the second half of this calendar year, Liquidity of the portfolio is ample as minimum 50% investments are
led by the rural segment and stress in the lower end of the pyramid easing. mandated to be in government securities, however traditional nature of the
product does not imply redemption pressure. Appropriate hedging tool will
We expect Nifty earnings to grow at ~12-13% CAGR over the medium term.
be used as and when needed.
Nifty is currently trading at ~19x FY26 P/E and valuations have turned attractive.
We expect some shift towards consumption based sectors from capex in the
Equity Investments
near term. Investors can continue to invest in equities from a medium to long-
The equity allocation in the PAR Fund is expected to generate higher returns.
term perspective.
We propose to invest upto 50% in equity and equity related instruments. Will
Monetary policy turned benign in 2025. We saw RBI MPC deliver a rate cut in look to invest in blue chip companies with strong balance sheet, ethical
February’25 and announce a slew of measures to enhance liquidity. These management and good execution track record. Large part of the investment
measures were in the form of forex buy/sell swaps and open market operations will be done on Large-cap stocks. Appropriate hedging tool will be used as
(OMO) purchases of government securities. There is high likelihood of system and when needed.
liquidity remaining in surplus territory through the year as RBI has embarked
on its easing cycle. Nifty 50 Returns
Period Returns (CAGR)
There is a strong likelihood of the monetary policy stance changing from
neutral to accommodative in the April’25 policy, together with an expected 1 Year 5.34%
25bps repo rate cut. 10 Year Gsec rate is likely to respond to the same and for
2 Years 16.37%
FY2026 should remain in a range of 6.25%-6.75%.
3 Years 10.42%
In the currency market, USD/INR pair appreciated initially, this trend is likely to
4 Years 12.48%
continue in the near-term. Some return of depreciation pressures is expected
as markets price in the “headwinds” to the Indian economy from a global 5 Years 22.28%
growth slowdown. However, USD/INR pair could perform better than its EM
peers over the coming months and the extent of depreciation pressures could As on 31st March’25
be lower. This presents a upside risk to USD/INR forecasts for FY26 at 88 levels.
Strictly meant for internal training and or education of employees and shouldn’t be further circulated or used for presentation/
solicitation to a prospect or general public at large. TRA/4/25-26/51
(For internal circulation only) Dec 2024
ABSLI – PAR Fund (Existing)
Asset Allocation of PAR Fund
Top 5 Sector Exposure for Equity Portfolio as on 31st
st
Please find the asset allocation of our PAR fund as on 31 December’2024
December’2024 Top 5 Sectors (% of Equity Portfolio) % Age of Portfolio
BANKING 44.04%
Asset Class Wise Distribution % Age of Portfolio
OIL AND GAS 13.18%
Gsec 42.37% FINANCIAL SERVICES 11.93%
SDL 5.05% SOFTWARE / IT 8.38%
Corporate Bonds 30.74% CAPITAL GOODS 5.52%
AIF 1.53%
Equity portfolio composition on the basis of market
REIT / InVIT 2.59%
capitalisation (as per SEBI classification) as on 31st
TREPS 0.77% December’2024
Equity / ETF 15.85% 90.0% 83.2%
AT1 1.09% 80.0%
Total 100.00% 70.0%
60.0%
Rating-wise distribution on our PAR fund as on 31st December’2024 50.0%
40.0%
Rating Wise Distribution % Age of Portfolio
30.0%
Sovereign 47.33% 20.0% 14.0%
Equity, ETF and AIF 17.38% 10.0%
2.8%
0.0%
0.0%
TREPS 0.77% Large Cap Mid Cap Small Cap Unlisted
AAA 27.69%
AA+ 3.60% PAR Portfolio Returns
AA 0.45% PAR Portfolio Returns
A+ 0.05% Absolute 9mFY25 7.12%
AA- 2.74% Absolute 1 year * 8.47%
Total 100.00% CAGR 2 year * 8.03%
CAGR 3 year * 8.27%
Key Metrics of Debt Portfolio as on 31st December’2024
CAGR 4 year * 8.18%
Key Metric of Debt Profile
CAGR 5 year * 8.06%
Average Maturity 6.20
st
*As on 31 March’2024
Modified Duration 4.27
YTM 7.73% Additional Scheme Features
Top 10 equity holding of PAR fund as on 31st December’2024 Inception Date of ABSLI Par Fund: Year 2012
Portfolio Details with Top 10 Holdings - Equity % Age of Portfolio
Name of Fund Managers:
Equity Stocks and ETF (of AUM) 15.85%
For ABSLI Par Fund: Devendra Singhvi and Nirav Rajiv
HDFC BANK LTD 2.30%
Corpus Size: Rs. 10,239 Cr. for PAR fund as on 31st Dec-2024
RELIANCE INDUSTRIES LTD 2.09%
IDFC FIRST BANK LTD 1.68%
ICICI BANK LTD 1.27%
LARSEN AND TOUBRO LTD 0.88%
INFOSYS LTD 0.75%
HINDUSTAN UNILEVER LTD 0.66%
NTPC LIMITED 0.60%
TATA CONSULTANCY SERVICES LIMITED 0.58%
BAJAJ FINANCE LTD 0.57%
Strictly meant for internal training and or education of employees and shouldn’t be further circulated or used for presentation/
solicitation to a prospect or general public at large. TRA/4/25-26/51
