Portfolio Management Services

Based on the objective of avoiding big mistakes, the DHFL Pramerica Deep Value Strategy is designed to create wealth over the long term. DHFL Pramerica recognizes that sustainable wealth can be created in the stock market by (a) buying into businesses that enhance shareholder wealth by generating returns greater than their cost of capital, and (b) not overpaying for such businesses. This is in line with the objective outlined above, since most of the mistakes made in the stock market are either that of buying businesses with weak fundamentals or paying too much for the stocks purchased.

How does it work?

Isn't this just another 'value' strategy?

The investment strategy adopted by DHFL Pramerica Deep Value Strategy is to buy stocks of companies that have demonstrated a track record of shareholder value creation, and buying them at a time when they are not quoted expensively in the market.

Stocks of good companies quote inexpensively only when the general market does not expect these companies to perform well in the short term. Therefore, DHFL Pramerica Deep Value Strategy seeks to exploit this opportunity by buying into such companies when they face a temporary challenge or slowdown. We take reasonable care to see that the long-term fundamentals and growth prospects for the company are not impaired by the short term challenges.

We seek to find value in stocks quoting at a discount to their calculated intrinsic value, and/or in stocks quoting at a valuation that is significantly lower than their long-term average valuation.

Traditional “value” strategies equate value with cheap valuation. They focus on buying stocks that are underpriced at a particular point of time. DHFL Pramerica Deep Value Strategy gives importance to quality of business and to the valuation while exploiting mispricing and profit opportunities. As such, it seeks to identify value regardless of whether the stock is classified as “value”or “growth” by traditional parameters.

Why invest in this strategy?

DHFL Pramerica Deep Value Strategy provides a genuinely differentiated portfolio to the investor. The strategy seeks to buy stocks well before they become popular in the stock market. Since the time horizon for holding stocks by this strategy is well beyond one year, the investor does not lose out on the benefit of exemption of longterm capital gains tax.

Important InformationDHFL Pramerica Asset Managers Pvt. Ltd. (erstwhile Pramerica Asset Managers Pvt. Ltd.) Portfolio Manager as Portfolio Manager under SEBI (Portfolio Managers) Regulations, 1993.

This Document is for information purpose only. This Document and the Information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products (collectively “Products”) mentioned in this Document or an attempt to influence the opinion or behavior of the Investors/Recipients. Any use of the information contained herein for investment related decisions by the Investors/Recipients is at their sole discretion & risk. Please read the Disclosure Document and the agreement along with the related documents carefully before investing. Investments in Products are subject to market risks, various micro and macro factors and forces affecting the capital markets and include price fluctuation risks. There is no assurance or guarantee/warranty that the objectives of any of the Products will be achieved. The investments may not be suited to all categories of Investors/Recipients. Investors/Recipients must make their own investment decisions based on their own specific investment objectives, their financial position and using such independent professional advisors, as they believe necessary, before investing in such Products.

Risk Factors

Pramerica is the tradename used by Prudential Financial, Inc., (PFI) a company incorporated and with its principal place of business in the United States, and by its affiliated companies in select countries outside the United States. None of these companies are affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.

DHFL Pramerica Deep Value Strategy

Who should invest?

DHFL Pramerica Deep Value Strategy is suitable for any investor who seeks to invest in a portfolio of strong companies, purchased at prices that are not extravagantly expensive. This strategy works best for investors who have a time horizon of at least 3 years. We buy a strong company when it is not very popular and wait for it to become popular.

Strategy Snapshot

Benchmark Nifty 500

Target Capitalization Range No bias

Target Diversification 20-25 Stocks

Maximum Single Stock Exposure 10%

Single Sector Exposure 30%

Suggested Investment Horizon 3 years

Leverage No

In addition, we also provide comparision with the Nifty 50 Index.

Maximum