Debt outlook and Asset Allocation

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Asset Allocation and Debt Outlook
3rd December, 2021
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Debt Outlook
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Policy Landscape is Shifting Globally
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Source RBI Bulletin, Data as of November 2021
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Inflation Breached the 6 Laxman Rekha
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CPI
Core CPI
8.0
RBI's Upper Threshold
6.0
4.0
2.0
RBI's Lower Threshold
0.0
Source MOSPI, Quantum Research, Data upto
October 2021
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Yield Curve is steepest in a decade
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India Sovereign Yield Curve
7.0 6.5 6.0 5.5 5.0 4.5 4.0
30-No v-21
30-No v-21
28-Fe b-20
28-Fe b-20





YIELD TO MATURITY
3.5
3M 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 11Y 12Y 13Y
14Y 15Y 19Y 24Y 30Y TIME TO MATURITY
Source Refinitiv, Quantum Research, Data as of
November 30, 2021
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Equity Outlook
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Strong Tailwinds for Sustained Economic Expansion
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• Pick up in IT hiring and Wage inflation
• Low Home Loan rates acting as strong catalyst for
  Real Estate sales
• Gst, Demonitisation Covid have accelerated
  market share gain of large peers
• Listed players should report faster earnings
  growth than the sector
• Risks
• Strong third Covid wave if any could defer
  economic recovery
• Rapid Rise in inflation could start impacting
  consumer discretionary spend and interest rates

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Consensus Earnings Upgrades After Many Years of
Flat Growth
Past performance may or may not be sustained in
the future.
Past performance may or may not be sustained in
the future. Source Bloomberg Finance L.P. as of
October 29, 2021
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QLTEVF Portfolio Valuations At A 41 Discount To
The Index On T12M And 31 Less Expensive On FY23e
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QLTEVF As of SP BSE-30 Index As of SP BSE-30 Index As of SP BSE-30 Index SP BSE-30 Index
Analysts views expressed FY2023 616 86 86 86 717
Analysts views expressed FY2024 414 84 84 84 492
Number of Stocks 28 93 93 93 30
Median market cap. (USD mn) 13,055 37 37 37 34,922
Wtd. dividend yield 1.7 150 150 150 1.2
Historical PER of portfolio (T12M) 23.9x 59 40.2x
Wt of stocks with PER lt 20, historical 31 517 517 517 6
Wt of stocks with PER gt 20, historical 69 73 73 73 94
Wt of stocks with PER gt 30, historical 48 65 65 65 74
ESTIMATES FOR FY2023
Analysts polled 616 86 86 86 717
Wtd. PER March 2023E 14.5x 67 67 67 21.6x
Wtd. EPS Growth March 2023E 22.6 97 97 97 23.3
PEG Ratio (excludes cash) 2023E 0.64x 69 0.93x
ESTIMATES FOR FY2024
Analysts polled 414 84 84 84 492
Wtd. PER March 2024E 13.1x 70 70 70 18.8x
Wtd. EPS Growth March 2024E 11.4 68 68 68 16.9
PEG Ratio (excludes cash) 2024E 1.15x 10 4 1.11x
Source Quantum Research, Data as of October 29,
2021 QLTEVF cash weight excluded. SP BSE-30
Index weight is based on free float. The figures
mentioned in WTD PER, WTD EPS and PEG ratio are
calculated on the basis of Bloomberg consensus
estimates for companies owned by the Fund as well
as the companies in the SP BSE 30. The
Fundamental Characteristics, both for portfolio
as well as the benchmark, have been computed
using the Aggregation Methodology.
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ASSET ALLOCATION
Key to Successful Long Term Investment
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Suggested Fund Allocation
12-80-20 Approach
Emergency Funds equivalent to 12 month
expenses. 20 in gold funds
80 in equity funds
Please note that the above is the suggested fund
allocation only and is not to be considered as
investment advice/ recommendation. Please seek
independent professional advice and arrive at an
informed investment decision before making any
investments.
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Our Suggested Allocation
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QA
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QA on Debt
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• How does debt as an asset class help in asset
  allocation?
• Will the current interest rate be increased in
  near future considering high inflation?
• How can an investor choose between liquid fund
  and savings account considering returns are
  almost same?
• Why should one invest in liquid fund, return or
  safety?

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QA on Equity
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• Corona Variants and economy how does an
  investor plan his/her investment?
• High expectation that market will fall, what is
  your views and suggestions to the
• investors?
• In current scenario value funds had performed
  better, what difference QLTEVF
• makes?
• Reason behind launching ESG when Quantum already
  have a value fund.
• What kind of corrective measures undertaken after
  the recent underperformance?
• The portfolio of ESG and QLTEVF have common
  stocks, then what advantages an
• investor can expect from each funds?
• Why have QLTEVF underperformed recently and not
  beating benchmarks?
• QLTEVF falls more than the peers and market when
  it falls, explain?
• Reason behind High Expense ratio and exit load
  for QLTEVF.

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QA - Contd
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• Why should one invest in gold and your views on
  golded to other schemes?
• Why should we invest in QMAF, when we ourself can
  diversify our portfolio?
• ESG investing and its scope in India.
• Why QEFOF has been pushed a lot, is it because
  your underperformance in QLTEF?
• Is it the right time to invest in Equity?

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Product Label
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For additional information, please
contact Sandeep Bhosle VP- Customer
Interaction Email SandeepB_at_QuantumAMC.com Mobile
91- 98209-43101 Office 91-22-6144-7804 Fax
91-22-2285-4318 Website www.QuantumAMC.com Qua
ntum Asset Management Company Private
Limited Hoechst House, 6th Floor, Nariman
Point Mumbai-400021, India
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