Series 111 – Portfolio progress through CY 2025

Over the past few months, we have discussed the reasons behind the portfolio’s drawdown in January and February. Throughout this period, we have consistently emphasized that the short-term noise would settle and the portfolio would recover. One of the major factors affecting performance was our exposure to Pharma sector. However, as we have pointed out before, we believe this sector holds strong long-term potential, and we have never seen any reason for concern. We have talked about it in our previous episode- link below.

Series 101 – Resilience of India’s Pharma Sector Amid Tariff Concerns – ITUS Capital

Now, as expected, the portfolio has been showing steady growth, with strong performance in May 2025. We continue to encourage investors to use this phase as an opportunity to invest, as it can contribute to long-term wealth creation.

To to brief you the current positioning of the portfolio-

Attribution– Financial Services, Mining & Minerals, and Logistics & Ports were the primary drivers of May’s relative gains. Our continued zero exposure to the Defence segment detracted as defence names rallied during the month. We do not foresee adding the sector in the near term given relative valuation.

Portfolio Positioning- We have been maintaining our portfolio as Large cap bias for quite some time now and we continue to do so. 60% of AUM is towards Large cap and Despite the large-cap tilt, two-thirds of the portfolio differs from the index, underlining our positioning.

With the continued allocations to the sectors under focus- Banking and Finance, Pharma and FMCG/Consumer (Discretionary and Staple)- Allocating nearly 70% of portfolio, we look forward to a stronger year with portfolio’s stronger out-performance like we saw in Mar-May.