India Strategy - Nifty50 Benchmarked Portfolios To Be Driven By Cyclicals, Select Defensives: ICICI Securities
The CNX Nifty logo is displayed on a glass facade at the NSE in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

India Strategy - Nifty50 Benchmarked Portfolios To Be Driven By Cyclicals, Select Defensives: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Nifty50 exchange traded funds with a combined assets under management of ~$17 billion currently have a ‘look through’ earnings collectively of ~$632 million.

According to Warren Buffet, for calculating their look through earnings, investors should determine the underlying earnings attributable to the shares they hold in their portfolio and total these (Warren Buffet's Letter to shareholders, 1991).

Analogy for ‘look through earnings’ from an equity fund’s perspective with holdings of let’s say 50 stocks would be to imagine a conglomerate company with 50 subsidiaries, which get consolidated at the end of each financial year proportionate to their minority holding in each company.

Click on the attachment to read the full report:

ICICI Securities Strategy Smart Beta Look through earnings May21.pdf

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