Birla AMC Core Equity

Birla AMC PMS | Equity | | PMS

IME's View on Birla AMC Core Equity

Strategy

Investment Fund

Typically we are not in favour of PMSs offered by Mutual Fund AMC's. While they can scale, built on their experience in managing mutual fund assets & substantial distribution strengths, the stability of the core investment team & investment processes can suffer due to FM churn (which is where we prefer promoter-manager-driven PMS's).

Fund's Strategy View

The strategy involves investing in high-quality businesses integral to India's growth narrative. The focus is on identifying and participating in the long-term growth of these businesses, with investment decisions grounded in attractive valuations and a margin of safety.

Fund Performance

Fund returns are largely in-line with category average returns over the past 5 years. In terms of longer-term annual performance, performance consistency is weak, with the fund having underperformed it's benchmark in more years than having outperformed.

IME's View on Birla AMC PMS

View on AMC

Birla AMC PMS faces challenges common to large MF-driven PMS firms, such as PMS being treated as an add-on rather than a separate business, high turnover in the investment team, lack of commitment from the CIO, and vague investment strategies. Despite the distribution advantages of the AMC and research resources, MF-driven PMSs usually do not match the success of CIO-led PMS firms.

AMC's Pedigree

Birla AMC is a top-5 Asset Manager in India known for managing mutual fund assets. While being part of a larger asset management house offers synergy benefits, their pedigree in AMC-driven PMS falls short compared to investor-cum-promoter driven PMS's with stable investment teams and defined processes.

AMC Team

Birla PMS has a moderately experienced investment team with synergies from the senior Mutual Fund team. The team has been stable but changes may occur as it is not promoter-driven.

Investment Philosophy

The investment philosophy is vaguely defined, allowing fund managers flexibility to invest in various sectors and styles.

Aditya Birla Capital Core Equity Portfolio- Investment Strategy

Focus on a large cap universe following benchmark agnostic

Investment Philosophy 

 Focuses on identifying recurring winners that have consistently created value. The philosophy identifies sectors that are key to wealth creation.  Core Equity portfolio uses a unique strategy based on superior IP/screeners. Following an extensive research to identify future winners. Also uses a comprehensive alert system to track industry wise valuations. Follows a value investing approach to generate alpha returns. Identifying medium and long term misprice companies and buy them at a discount to the fundamental value. 

Investment Process

  • Portfolio Universe– built by applying Quantitative and Qualitative screeners and evaluating ROE/ROCE, leverage and debt servicing and management quality. 
  • Reject companies which do not filter through these screeners by identifying companies benefit from the catalysts which are micro/macro trunaround, demerger/delevraging and management change. 
  • Narrowing down the list to 50-60 sticks by having an optimised portfolio by analysing risk reward and having the potential upside of 100% in 3-4 years. 
Finally selecting 25-30 quality companies with high growth and potential upside. 

Trailing Performance

1yr3yr5yrSince Inception
Birla AMC Core Equity-6.211.119.818.6
S&P BSE 500-6.614.719.214.5
Alpha over Broad Mkt BM0.4-3.60.64.1

Performance as of: 30-Sep-25 | Inception Date: 07-Jan-09 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.

Investment team

Sameer Narayan | 2-star rated FM

Head | 24 yrs Experience | 5 yrs at current firm

Past Experience: SVP-Adani Advisory

Sameer has more than 20 years of experience in Indian equity markets. In his role as Principal Officer, Sameer will be responsible for the PMS division within the firm. His last assignment was with Adani Advisory LLP as Sr. Vice President where he established the Family Office and was responsible for advising investments in Indian equities. In the past, he has also worked with BNP Paribas Investments managing onshore and offshore funds under Portfolio Management Services. Sameer has also worked with SSKI, Enam Securities and Motilal Oswal in the Research Function. He holds Masters in Management Studies (MMS) from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai and B.E degree with specialization in Production Engineering.

Salvin Shah | 2-star rated FM

FM | 15 yrs Experience | 4 yrs at current firm

Past Experience: Sanctum, Edelweiss Securities & Athena Investment Management

Salvin Shah has 10+ years in Portfolio Management and Equity Research, He has extensive experience in managing Indian Equities. He has been successful at identifying themes and stocks at a very early stage which has resulted in multi-bagger returns for the investors. Prior to joining Aditya Birla AMC, he worked with Sanctum Wealth Management as Co-fund Manager in their PMS business. Before Sanctum, Salvin was a part of equity research team at Edelweiss Securities and Athena Investment Management.

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