Albert Einstein once said “In The Middle Of Difficulty Lies Opportunity”. Today is difficult. Today is Opportunity.
The phrase above describes 2020 in 1 sentence. The year which started with Covid-19 will probably end with it too. The year has been fraught with mass hysteria showering markets with volatility and conservatism.
The wide-spread panic because of Covid-19, saw Fear acclimatize itself with investors, global and domestic alike. The mass-dumping equities overnight, saw trillions in wealth wipe out in a matter of 2 months.
Indian indices too fell victim, witnessing their biggest drop (-~40%) in 10 years to in a matter of 4 months (shown in table below):
Covid continued to dominate headlines, landlocking the world socio-economically inducing recessionary fears, bleak budgets and comforted GDPs (India saw record -23.9% contraction)
This is where the fork in the road was visible for the 1st team in this foggy year. While most favored the road taken of vouching for safe-haven assets, there were who braved the less treaded upon roads, i.e. opportunities, and bagged themselves a big reward.
The graph below shows how Nifty and its sub-indices have fared since March lockdown:
In fact, for every time there has been a crisis, opportunities have followed right after as the graph below shows:
Unlocking 4.0 unlocked 40+ different opportunities with relief packages, fervent factory activity and magnetic macros. As Unlocking 5.0 comes gains momentum, newer and different special opportunities stand at bay waiting for those who choose to surf the rough seas.
To help you capitalize on the next wave of opportunities, let us understand what Special Opportunities mean in market parlance and where they are most visible as of date:
Why Indian Markets are the best Diwali Gift you can buy yourself this year:
Already Excited to find the diamond amongst the stones? Aditya Birla MF brings your portfolio a ticket to fight the flight!
Axis Special Situation Fund
Axis Special Situation Fund is poised to seek opportunities in the most uncertain period since WWII, capitalizing on current crunched climate & emerging new trends. With an eye to capture the disruptive value, the fund wears a multi-faceted construct spread across market-caps and sectors.
Investment Approach involves:
o Disruption – Minimum 70%. This will include disruptors, enablers and adapters
o Sector dynamic shifts 10-30%
o Event based stories – Upto 10%
❖ Fund will also have up to 30% allocation to global stories
❖ Fund will directly invest in international stocks via JV Partner Schroders
Schroders global Disruption Theme follows:
❖ Schroders has 90+ analysts across 11 countries identifying disruption patterns
❖ The also leverage an AI based data insights unit that feeds high frequency data indicators.
❖ Team has diverse backgrounds including private equity and venture investing which makes them ideal for this strategy
Investor Takeaway
From Catch to Snatch, this fund offers it all. It merit accolades for its ability to be a frontrunner in bearish times.
It is more suitable for those wearing higher risk appetites but can feature in limited fashion in moderately high risk-return profiled portfolios.
Those investing in this fund should look at an average indicative horizon of up to 5 years & more.
Key Details About The Fund
