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KARVY’s February, 2017 INVESTOR JOURNAL www.karvyvalue.com What’s Inside KARVY’s INVESTOR JOURNAL Fund of the Month HDFC TOP 200 FUND(G) The investment objective of the Scheme is to generate long term capital appreciation... February, 2017 Page 04 Market Review Page 01 Karvy Investment Insight Page 03 Fund of The Month Page 05 Budget 2017 Page 06 Interview Corner Page 08 Readers Corner Page 11 Story of The Month Page 12 SIP Performance Page 13 Category Average Returns Page 14 Fixed Deposits Schemes Page 15 Equity Funds Performance Page 16 Debt Funds Performance Page 17 Global Markets at a Glance Page 18 Indices Watch Page 19 Highlights of the Month » For the first time, the much awaited Union budget 2017 was presented along with the Railway Budget. » Service charge on a food bill is not compulsory now and a customer can choose to have it waived if not satisfied with the experience. » Cable TV and broadband internet services provider Hathway Cable & Datacom Ltd said that its subsidiary GTPL Hathway Pvt. Ltd has filed its initial public offering (IPO) prospectus with the capital market regulator. » Mahindra Asset Management Company (AMC) said it hopes to raise around Rs. 500 crore through its new open-ended equity scheme. The scheme, Mahindra Mutual Fund Dhan Sanchay Yojana, is a wealth accumulation plan for long-term capital appreciation and income generation, managing director and CEO Ashutosh Bishnoi said. » Foreign direct investment (FDI) into the country grew over 27% to $27.82 billion during April-October this financial year. FDI stood at $21.87 billion in April-October 2015-16, according to the Department of Industrial Policy and Promotion (DIPP). » In compliance with Sebi’s stipulation, PPFAS Mutual Fund, sponsored by Parag Parikh Financial Advisory Services (PPFAS), has raised its net worth to Rs. 50 crore, the minimum requirement of the market regulator. The net worth mark has been attained before mandated deadline of May 2017. » The country’s mutual fund (MF) assets logged the highest growth in seven years to reach a total corpus of around Rs.17 trillion in 2016, despite lackluster equity markets and challenging economic conditions due to demonetization and a surge in global oil prices. » Most of the 40-odd mutual fund houses are likely to adhere to the May 2017 deadline set by the Securities and Exchange Board of India (Sebi) to have a minimum net worth of Rs. 50 crore. However, experts believe that sustaining the net worth may be a challenge, especially for loss-making asset management companies (AMCs). » DSP BlackRock Mutual Fund has filed offer documents with SEBI to launch the DSP BlackRock Nifty 50 ETF. The new fund offering is priced at Rs. 10 per unit. Investors in the scheme will not be burdened by entry and exit load. Through the scheme, the fund house seeks to collect a minimum amount of Rs. 10 crore. » Mutual funds have welcomed the regulator’s decision to allow celebrity endorsements. Association of Mutual Funds in India (Amfi) is planning to come up with a road map soon. Just like other financial products, such as banking, insurance, and home loans, mutual funds will be able to rope in big stars to create awareness and increase reach of their offerings.

February, 2017 INVESTOR JOURNAL KARVY’s 2017. INVESTOR JOURNAL. ... » Mutual funds have welcomed the regulator’s decision to allow celebrity ... knowingly indulging in tax evasion

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KARVY’s

February, 2017

INVESTOR JOURNAL

www.karvyvalue.com

What’s Inside

KARVY’sINVESTOR JOURNAL

Fund of the MonthHDFC TOP 200 FUND(G)

The investment objective of the Scheme

is to generate long term capital appreciation...February, 2017

Page 04

Market ReviewPage 01

Karvy Investment InsightPage 03

Fund of The MonthPage 05

Budget 2017Page 06

Interview CornerPage 08

Readers CornerPage 11

Story of The MonthPage 12

SIP PerformancePage 13

Category Average ReturnsPage 14

Fixed Deposits SchemesPage 15

Equity Funds PerformancePage 16

Debt Funds PerformancePage 17

Global Markets at a GlancePage 18

Indices WatchPage 19

Highlights of the Month » For the first time, the much awaited Union budget 2017 was presented along

with the Railway Budget.

» Service charge on a food bill is not compulsory now and a customer can choose to have it waived if not satisfied with the experience.

» Cable TV and broadband internet services provider Hathway Cable & Datacom Ltd said that its subsidiary GTPL Hathway Pvt. Ltd has filed its initial public offering (IPO) prospectus with the capital market regulator.

» Mahindra Asset Management Company (AMC) said it hopes to raise around Rs. 500 crore through its new open-ended equity scheme. The scheme, Mahindra Mutual Fund Dhan Sanchay Yojana, is a wealth accumulation plan for long-term capital appreciation and income generation, managing director and CEO Ashutosh Bishnoi said.

» Foreign direct investment (FDI) into the country grew over 27% to $27.82 billion during April-October this financial year. FDI stood at $21.87 billion in April-October 2015-16, according to the Department of Industrial Policy and Promotion (DIPP).

» In compliance with Sebi’s stipulation, PPFAS Mutual Fund, sponsored by Parag Parikh Financial Advisory Services (PPFAS), has raised its net worth to Rs. 50 crore, the minimum requirement of the market regulator. The net worth mark has been attained before mandated deadline of May 2017.

» The country’s mutual fund (MF) assets logged the highest growth in seven years to reach a total corpus of around Rs.17 trillion in 2016, despite lackluster equity markets and challenging economic conditions due to demonetization and a surge in global oil prices.

» Most of the 40-odd mutual fund houses are likely to adhere to the May 2017 deadline set by the Securities and Exchange Board of India (Sebi) to have a minimum net worth of Rs. 50 crore. However, experts believe that sustaining the net worth may be a challenge, especially for loss-making asset management companies (AMCs).

» DSP BlackRock Mutual Fund has filed offer documents with SEBI to launch the DSP BlackRock Nifty 50 ETF. The new fund offering is priced at Rs. 10 per unit. Investors in the scheme will not be burdened by entry and exit load. Through the scheme, the fund house seeks to collect a minimum amount of Rs. 10 crore.

» Mutual funds have welcomed the regulator’s decision to allow celebrity endorsements. Association of Mutual Funds in India (Amfi) is planning to come up with a road map soon. Just like other financial products, such as banking, insurance, and home loans, mutual funds will be able to rope in big stars to create awareness and increase reach of their offerings.

INVESTOR JOURNALFebruary, 2017

Market Review

Dec-16 CPI came in a tad lower at 3.41% than market

expectations of 3.50%. Sharp unusual softening of food prices coupled with contained services inflation helped stem any upside pressure to the headline, despite adverse statistical base. Core inflation slumped to 4.90% from 4.98% in the previous month.

INR ended the month of Jan at 67.47 against the USD.

The 10Y benchmark 6.97% GS 2026 closed at Rs 104.05 (6.40%).

Sensex and Nifty both went up by 3.99% and 4.67% respectively.

In the corresponding period, FIIs were net sellers in Equity segment worth around 1009.30 Crores and in Debt segment worth 3757.43 Crores respectively.

Mutual Funds were net buyers in Equity to the tune of 5,180.30 Crores and in debt up to 29,653.40 Crores.

1.Foreign Trade: The country’s merchandise exports improved and stood at USD 23.88 billion in Dec’16 as against USD 22.59 billion recorded in Dec’15, recording a growth of 5.72% Y-o-Y.

The country’s merchandise imports bills was tad up to USD 34.25 billion in Dec’16 from USD 34.10 billion recorded a year ago.

Oil imports continued to increase, posting a growth on a Y-o-Y basis of 14.61% to USD 7.65 billion in Dec’16. Oil imports constituted around 22% of the total imports during the month.

The non-oil imports decreased marginally by 2.98% in Dec’16 to USD 26.61 billion vis-à-vis non-oil imports of USD 27.43 billion recorded in the month of December of the previous fiscal.

2.Inflation:

Wholesale Price Index‐ based inflation eased to 3.39% year-on-year in December, following a 3.15% gain in November.

Food inflation, which was 1.54% in November, fell drastically to 0.70% in Dec’16.

The fuel inflation rose by 8.65% in Dec’16 from 7.07% in the month of Nov’16.

CPI inflation stood at 3.40% in Dec’16 from 3.60% in the month of Nov’16.

3.Index of Industrial Production (IIP):

IIP surged to 5.71% in Nov’16 on a Y-o-Y basis on account of output growth across sectors, particularly sharp output growth of capital goods.

Manufacturing production in India increased by 5.53% as against a contraction of 2.39% for Nov’16.

Basic Goods grew at 4.66% in Nov’16 as against 4.06% recorded a month ago.

Capital goods grew by 15.01% in Nov’16 as against 25.92% in Oct’16.

Among the BSE sectoral indices, Metals, Consumer Durables & Power were the major gainers which ended the month up by 15.46%, 12.36% and 9.06% respectively while IT & TECK were the major losers ending the month down by 5.80% & 2.92% respectively.

Among the NSE sectoral indices, Metal, Commodities and PSE were the major gainers which ended the month up by 15.82%, 9.54% and 8.90% respectively while major indices IT, Pharma ended the month in the negative territory, falling by 5.30% & 0.30% respectively.

Among the major Asian Indices, it was a positive month for Hangseng and Taiwan which ended up by 6.18%, 2.10% whereas Nikkei was down by 0.38%.

Among major European indices, DAX ended up by 0.47% whereas CAC-40, BEL-20 and FTSE 100 were down by 2.33%, 1.78% and 0.61% respectively.

It was a decent month for Major American Indices with S&P500, NYSE and Dow Jones going up by 1.79%, 1.50% and 0.51% respectively whereas Nasdaq went down drastically by 5.30%.

Among the major indices across the world, Bovespa, Brazilian index had a great month, going up by 7.38%.

Apart from FII and MF activity, Key domestic data released in the month of January were:

1

INVESTOR JOURNALFebruary, 2017

S&P BSE SENSEXDate Close Price Points Diff %age Change

30-Dec-16 26626.46

9-Jan-17 26726.55 100.09 0.38%

12-Jan-17 27247.16 520.61 1.95%

18-Jan-17 27257.64 10.48 0.04%

24-Jan-17 27375.58 117.94 0.43%

31-Jan-17 27,655.96 280.38 1.02%

3.87%

CNX Nifty IndexDate Close Price Points Diff %age Change

30-Dec-16 8185.8

9-Jan-17 8236.05 50.25 0.61%

12-Jan-17 8407.2 171.15 2.08%

18-Jan-17 8417 9.80 0.12%

24-Jan-17 8475.8 58.80 0.70%

31-Jan-17 8561.3 85.50 1.01%

4.59%

Sensex & Nifty:

MF Activity: (Month Between 02-Jan-2017 to 30-Jan-2017)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

2-Jan-17 1,054.60 938.90 115.70

9-Jan-17 1,533.70 1,310.70 223.00

16-Jan-17 1,675.60 1,537.00 138.60

20-Jan-17 1,765.40 1,707.20 58.20

30-Jan-17 1,840.50 1,570.00 270.50

Jan-17 34,567.80 29,387.50 5,180.30

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

2-Jan-17 9,157.00 3,534.40 5,622.60

9-Jan-17 2,816.70 2,691.90 124.80

16-Jan-17 2,438.30 1,640.50 797.80

20-Jan-17 4,829.80 2,773.90 2,055.90

30-Jan-17 6,309.30 5,337.50 971.80

Jan-17 99,330.90 69,677.50 29,653.40

2

FII Activity: (Month Between 02-Jan-2017 to 30-Jan-2017)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

2-Jan-17 867.26 1,215.04 -347.78

9-Jan-17 2,202.68 2,588.10 -385.42

16-Jan-17 2,387.39 2,725.90 -338.51

20-Jan-17 4,542.43 4,509.14 33.29

30-Jan-17 5,542.48 5,091.41 451.07

Jan-17 78,855.58 79,790.10 -934.52

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

2-Jan-17 49.63 54.15 -4.52

9-Jan-17 1,223.08 727.46 495.62

16-Jan-17 74.60 601.11 -526.51

20-Jan-17 565.76 1,238.71 -672.95

30-Jan-17 1,065.99 882.29 183.70

Jan-17 16,981.00 19,924.22 -2,943.22

INVESTOR JOURNALFebruary, 2017

3

Karvy Investment Insight

Peace of mind and Wealth Creation ideas for long term

Karvy Insights brings to you investment wisdom to help our investors make sound investment decisions and reach their goals faster. These inputs may not help you become wealthy in a short span of time, but they would definitely give you peace of mind and a roadmap for your financial journey.

PLANNING FOR TAX IS OF PARAMOUNT IMPORTANCE AS:

» Tax planning is the analysis of one’s financial situation from a tax efficiency point of view so as to plan one’s finances in the most optimized manner.

» Tax planning allows a taxpayer to make the best use of the various tax exemptions, deductions and benefits to minimize their tax liability over a financial year.

» Tax planning is a legal way of reducing income tax liabilities; however, caution has to be maintained to ensure that the taxpayer isn’t knowingly indulging in tax evasion or tax avoidance.

HOW TO PLAN?

» Tax planning is the analysis of one’s financial situation from a tax efficiency point of view so as to plan one’s finances in the most optimized manner.

» Tax planning allows a taxpayer to make the best use of the various tax exemptions, deductions and benefits to minimize their tax liability over a financial year.

» Tax planning is a legal way of reducing income tax liabilities; however, caution has to be maintained to ensure that the taxpayer isn’t knowingly indulging in tax evasion or tax avoidance.

ELSS FUNDS

» ELSS schemes are Mutual funds which are professionally managed and contain investments in Equity oriented instruments, which presents an opportunity to attain returns higher than inflation and when compared with other investments with 80C benefits.

» These have a lock-in period of 3 years unlike most others with lock in of 5 Years or more. Since they are held for a span of 3 Years, it presents with an opportunity for the fund manager to pick stocks backed by good fundamentals and deliver decent returns in the period of holding.

» ELSS funds have two options of Growth and Dividend to choose from. It depends on the investor suitability and his/her expectations to choose Dividend or Growth Plan. Growth plan gives a chance for investment to attain compounded growth but capital, along with appreciation is available only at the end of Lock-in period, while dividend plan provides an opportunity to gain a part of appreciation in the form of Dividends.

» These funds must be a part of Portfolio, certainly not 100%, but at least 10-30% depending on the risk appetite of investor. Funds to be invested must be carefully chosen with the help of a Financial Advisor who can understand and suggest accordingly.

INVEST IN ELSS FUNDS ONLINE

TAX SAVING OPTIONS

INVESTOR JOURNALFebruary, 2017

4

Karvy Investment Insight

NPS

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life.

WHAT ARE THE BENEFITS OF JOINING THE NPS?

» It is voluntary- NPS is open to every Indian citizen. One can choose the amount you want to set aside and save every year.

» It is simple all one has to do is to open an account with any one of the POPs and get a PRAN.

» It is flexible- One can choose their own investment option and Pension Fund Manager and see your money grow.

» It is portable- One can operate their account from anywhere in the country, even if there is change in city, job or selected pension fund manager.

» It is regulated- NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.

TAX BENEFITS

» It reduces your tax liability by availing the deductions u/s (80CCD) which will be up to Rs.1,50,000/- under section 80 CDD(1)

» An exclusive additional Rs.50,000/- under section 80CCD (1B), over and above Section 80C.

» Tax deduction of up to 10% of Salary (basic+da) for employer contribution, u/s 80CCD(2).

HOW MUCH DOES A SUBSCRIBER NEED TO CONTRIBUTE?

FOR TIER-I

» An individual is required to make their first contribution at the time of applying for registration at any POP - SP.

» One is required to make contributions subject to the following conditions:

» Minimum amount per contribution - Rs 500

» Minimum contribution per year - Rs 6,000

» Minimum number of contributions -01 per year

» Over and above the mandated limit of a minimum of 1 contribution, one may decide on the frequency of the contributions across the year as per their convenience.

FOR TIER-II

» Minimum contribution at the time of account opening - Rs.1000/-

» Minimum amount per contribution - Rs.250/-

» Minimum Account Balance at the end of FY - Rs.2000/-

» Minimum number of contributions in a year - 01

TAX SAVING OPTIONS

INVESTOR JOURNALFebruary, 2017

5

Timely service adds great value Post sales service provided by MFs, mutual

fund advisors is far superior than others in the financial sector.

- Mahesh@invest_mutual

A investment manager Describing his Job

“Hours of boredom punctuated by moments of terror”

- Rishi Bagree@rishibagree

Stocks: Over longer periods, the line that resembles a ride

on a roller coaster morphs into a gently rising upward slope.

- The Motley Fool @themotleyfool

‘Tweets’ of the Month

Fund of The Month

HDFC TOP 200 FUND(G)

Investment Objective:The investment objective of the Scheme is to generate long term capital appreciation from a portfolio of equity and equity linked instruments. The investment portfolio for equity and equity linked instruments will be primarily drawn from the companies in the BSE 200 Index.

Portfolio:

Top 10 Companies Holdings

Name %age

State Bank Of India 6.7

HDFC Bank Ltd. 6.5

ICICI Bank Ltd. 6.3

Larsen & Toubro Ltd. 5.6

Infosys Ltd. 5.5

Reliance Industries Ltd. 4.2

Tata Steel Ltd. 3.0

Tata Consultancy Services Ltd. 3.0

Maruti Suzuki India Ltd. 2.9

Tata Motors Ltd. 2.7

Top 10 Sector Wise Holding

Industry Name (%)

Bank - Private 16.4

Bank - Public 13.0

IT - Software 12.1

Refineries 5.9

Power Generation/Distribution 5.8

Engineering - Construction 5.6

Automobiles-Trucks/Lcv 4.3

Pharmaceuticals & Drugs 4.1

Steel & Iron Products 4.1

Finance - Housing 3.3

To read the full Information, Click Here

About Performance of the Scheme:It is a typical large cap scheme which invests in the top 200 stocks as per market cap. It is a veteran in the mutual fund industry...

Indicates an increase or decrease or no change in holding since last profile. Indicates an increase or decrease in holding since last portfolio.

“When a beginner wins, he feels brilliant and invincible. Then he

takes wild risks and loses everything.” - Alexander Elder.

- Ron Beaubien@RonBeaubien

Chinese Proverb: You raise flowers for a year; you see them for

but ten days.

- Chinese Proverbs@Proverbs_China

INVEST IN HDFC TOP 200 FUND(G)

INVESTOR JOURNALFebruary, 2017

Budget 2017

6

Union Budget 2017 Highlights

Finance : ■ Govt to provide Rs. 10,000 crore for capitalisation of public sector banks. PSU Bank Index

second biggest sectoral gainer on NSE.

■ General insurance companies are in for a bumper revenue growth next year as the Fasal Bima Yojna allocation is raised to Rs. 13,240 crores next fiscal, from Rs. 5,500 crores now.

■ 36 pc increase in FDI flow; forex reserves at USD 361 billion in January enough to cover 12 months needs.

■ CAD declined from 1 pc last year to 0.3 pc in first half of current fiscal: FM

■ National Housing Bank will refinance indiviual loans worth Rs. 20,000 crore in 2017-18.

■ Rs. 2,74,114 crore allocated for defence expenditure, excluding pension; this includes Rs. 86,000 crore for defence capital.

■ Fiscal deficit for 2017-18 pegged at 3.2 percent of GDP.

■ Fiscal deficit target for next three years pegged at 3 percent.

Tax : ■ Income tax slab of Rs. 2.5 - 5 lakh will be taxed at 5% instead of 10%.

■ 10% Surcharge on income between Rs. 50 lakh - 1 Crore.

■ A single one-page form for filing IT returns for taxable income up to Rs. 5 lakh.

■ No major changes have been made to other income tax slabs.

INVESTOR JOURNALFebruary, 2017

Budget 2017

7

Infra : ■ Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at

record Rs. 3.96 lakh crore.

■ Coastal roads of 2,000 kms to accelerate development of Coastal Economic Zones.

■ Finance Minister Arun Jaitley has granted infrastructure status to affordable housing, a long-time demand from the industry. The new measure will reduce costs for developers and attract investors.

■ Total resources being transferred to the states & union territories with legislature is Rs. 4.11 lakh crore. Budget allocation for highways stepped up to Rs. 64,000 crore in FY18 from Rs. 57,676 crore. Allocation for national highways stepped up to Rs. 64,000 cr from Rs. 57,676 cr.

■ 133-km road per day constructed under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14.

Other Highlights : ■ Agriculture sector is expected to grow at 4.6%, agriculture expenditure targeted at Rs. 10 lakh

crore.

■ Govt proposes to merge state oil companies to create a $100-billion behemoth.

■ Customs duty on LNG halved to 2.5 per cent.

■ Allocation under MNREGA increased to 48,000 crore from Rs. 38,500 crore. This is highest ever allocation.

■ Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs. 187223 crore, which is 24% higher than last year.

■ One crore houses for poor by 2019.

■ Safe drinking water to cover 28,000 arsenic and Fluoride-affected habitations in the next four years.

■ For senior citizens, Aadhar cards giving their health condition will be introduced.

■ Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat.

■ 25 crore people have already adopted Bhim App for digital payments.

■ Aadhaar Pay - an app for merchants- to be launched’ 20 lakh aadhaar-based POS by September 2017.

■ Government is considering introduction of new law to confiscate assets of offenders who escape the country.

■ Small firms with turnover up to Rs. 50 crore to pay 25% tax now, instead of 30%.

■ Black money SIT has suggested no cash transaction above Rs. 3 lakh. The government has accepted this recommendation.

INVESTOR JOURNALFebruary, 2017

Interview Corner

8

Interview with

Mr. Alok Agarwal Fund Manager - Equity - DHFL Pramerica Asset Managers Private Limited

Mr. Alok Agarwal is Fund Manager – Equity at DHFL Pramerica Asset Managers Private Ltd. He is the fund manager for DHFL Pramerica Balanced Advantage Fund, DHFL Pramerica Equity Income Fund, DHFL Pramerica Income Advantage Fund and Hybrid Funds.

Alok is a CFA, CA and has done his MS (Finance). Alok has over 14 years of industry experience. In his last assignment, Alok was Portfolio Manager - Equity at Deutsche AMC and Portfolio Manager - Equity at Deutsche Bank. Prior to that Alok was Head - PMS at K.R. Choksey Securities. He has authored a few books on Financial Management.

How do you think Equity as an asset class will perform in 2017?

The big events of 2016 (domestic and global) may not have fully played out. Most of these developments and disruptions, if managed properly, can improve the growth outlook. Cheaper real estate and lower interest rates can spur construction. GST, demonetization can meaningfully improve the tax to GDP ratio. Greater digitization and migration towards organized sector are medium to longer term positives.

After seeing lower earnings growth in last few years, the growth is expected to pick up sooner than later.

With long term structural positives intact, India seems to be in a sweet spot both on absolute and relative basis. Short term events-led corrections offer opportunities to participate in the structural growth of India.

The infusion of fresh deposits in banking system (post demonetization) has resulted in demand for G-Secs by banks. Where do you see 10 year G-sec in near term?

G sec yields are now mostly done with their rally. Further movement will be dependent on policy moves. Besides global factors such as US yields and commodities will also have a bearing. Overall domestic macro is very supportive though the global factors will need to be watched closely.

How do you foresee the effect of Demonetization? Do you believe that the effect has already been cashed in?

Demonetization effectively took ~86% of cash out of circulation in an economy that is majorly cash-reliant. The economy is likely to recover only gradually from the demonetisation shock. This is because loss of trade due to liquidity issues has resulted in loss of income. Hence we witnessed downgrades in consensus FY17 and FY18 GDP growth numbers.

While the impact may not have fully played out, the longer term positive is the shift from parallel economy to mainstream and from unorganized to organized segments.

Which sectors would you wish to focus on this year, especially with GST coming soon?

GST is likely to be disruptive in nature. It would be positive for some industries and negative for some. That would largely depend upon which industries get slotted in which basket. The delayed start can help preparedness.

None of us want to miss this bus of ‘growth’

INVESTOR JOURNALFebruary, 2017

Interview Corner

9

The combination of GST, demonetization and digitization is likely to cause meaningful shift from unorganized sector to organized sector. The sectors with higher share of unorganized players should gain more market share. Such sectors include Food services, Building Materials (Plywood, Sanitaryware, Tiles, Paints), electric goods, transportation, chemicals. NBFCs/Banks also stand to gain.

Many international rating agencies expect the Indian economy to grow by less than 7%. Is the Indian economy moving towards a slowdown?

The CSO has just revised the GDP growth rate for FY16 upwards to 7.9% from earlier estimate of 7.6%. In the budget estimates, the FM has assumed a nominal GDP growth rate of 11.75%.

Disruptions like demonetization and GST are likely to have some impact on the GDP growth rate, which has caused the downgrades in GDP.

In spite of temporary bumps like the above, India is on a strong growth trajectory (among the highest in the world today), which coupled with its commitment to fiscal discipline suggests that its deficit and debt ratios are likely to decline significantly over the coming years.

What are the positives you wish to take forward from this year’s Union Budget?

Comments on Budget :

The highlight was sticking to the fiscal consolidation path by keeping fiscal deficit down to 3.2% in FY18 and 3% in FY19. Markets feared unfavourable changes in long term capital gains rules and taxes on FPIs – their absence was a key positive from the markets point of view.

Thrust has been given to sectors like housing and infrastructure. Impetus to the rural economy would boost consumption. Lower corporate tax for small and medium scale enterprises is another fillip across industries.

Banning cash transactions above Rs. 3 lakhs would also facilitate digitization and reduced transactions in parallel economy.

The combination of growth, reforms and fiscal discipline immensely improves the chances for rating upgrade and also gives headroom to RBI for cutting rates.

The fund has managed to beat the benchmark in all except 1 year returns. How do you plan to make a comeback?

Our focused and disciplined approach has ensured that that fund is up 14.45% CAGR since inception compared to benchmark at 10.76%. Continuing with our stated approach of growth with stability, the portfolios are on strong footing to beat the benchmarks.

Our strategy of getting market share gainers in equity makes the portfolio grow stronger. The portfolio companies’ ROE of over 20% compares favourably with Nifty’s ROE of under 14%.

The fixed income portion is on strong footing too with portfolio yield of 8.7% alongwith average credit rating of AA and above.

What sets apart DHFL Pramerica Balanced Advantage fund from its counterparts? How different is your fund management strategy from the earlier fund manager’s?

DHFL Pramerica Balanced Advantage Fund combines high-return potential of equity with low-risk benefits of fixed income.

INVESTOR JOURNALFebruary, 2017

Interview Corner

10

In Fixed income, our approach is to run a quality portfolio to provide stable returns with low risk. The portfolio currently maintains Overall Credit rating of AA and above and Average Maturity of ~4-6 years.

The growth engine of the fund is the equity allocation.

The objective of equity is to capture growth. Longer term growth is better captured by companies having distinct competitive advantages. These competitive advantages could be of various kinds like brand, technology, licences, distribution strength etc. If a company enjoys competitive advantages over its peers, it should be able to sell more than its peers and that too profitably. And, if a company can sell more than its peers, it will gain market share. A company which consistently gains market share is likely to become a steady compounder. Historical data shows that top Nifty 500 gainers in terms of 10year returns were all market share gainers.

Our fund seeks to invest in such market share gainers and potential steady compounders by creating a concentrated portfolio of ~30 stocks.

This product is suitable for all equity investors, as well as debt investors who are looking to build a portfolio in equity.

The fund’s year beta of more than 1.2 seems to be on the higher side. How do you justify the returns generated by the fund for the risk taken?

The beta has been coming down. For instance the beta in last 6 months is down to below 0.9. Hence the risk adjusted return is only improving.

Are there any specific IPOs you are looking for in 2017? How attractive is the IPO market now?

With equity markets looking up, IPOs generally do well. We look at IPOs selectively. Few IPOs from sectors like stock exchange and supermarkets look good.

What is your advice to investors in the current scenario? How do they optimize return and mitigate downside risk in equity market.

In India, there is a huge number of structural positives. These range from demographic dividend of being one of the youngest populations, ever falling dependency ratio, steadily improving urbanization rate, host of reforms, per capital income at inflection point.

None of us want to miss this bus of ‘growth’.

At the same time, local and global factors ensure that this path is never smooth. Hence, we need stability in our portfolio, which comes from fixed income allocation.

Combining the two, I would urge investors to seriously look at capturing this ‘growth with stability’ by investing in our Balanced Advantage Fund. Additionally, it also provides a tax efficient solution.

Any information contained in this article is only for informational purpose and does not constitute advice or offer to sell/purchase units of the schemes of DHFL Pramerica Mutual Fund. This material may contain information sourced from publicly available information. The views / content expressed herein do not constitute the opinions of DHFL Pramerica Mutual Fund or recommendation of any course of action to be followed by the reader. DHFL Pramerica Mutual Fund has no obligation to update any or all of such information; nor does DHFL Pramerica Mutual Fund make any express or implied warranties or representations as to its completeness or accuracy. There can be no assurance that any forecast made herein will be actually realized. Investors should consult their financial advisers before taking any investment decision.

Pramerica and Pramerica Financial are trade names used by Prudential Financial, Inc., 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.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

INVESTOR JOURNALFebruary, 2017

Readers Corner

11

ELSS - SMALL IS BEAUTIFUL

We have suggested a strategy using, which, the investors could make the most out of this tax saving category of funds. The strategy is opportune for all the investors eligible for tax rebate under section 80C.

The beautyThe beauty of the ELSS schemes lies in their ability to outperform equity-diversified funds apart from fetching considerable tax benefits. The table - Trailing returns, elucidates that the returns on ELSS schemes have dwarfed the returns on many diversified funds over the 5-year, 3-year and 2-year period. It proves that the ELSS schemes have been able to surpass diversified funds based on the risk-adjusted returns also.

Is small important?We appreciate that an investment of Rs.1,50,000 p. a. would help investors save a substantial amount on taxes every year. However, many a time investors tend to invest this lumpsum amount towards the end of the financial year i.e. when the deadline to take tax benefit draws near. We feel it is not the right strategy to follow. The primary factor behind our reasoning is that ELSS funds are also equity oriented schemes and hence make them a bad choice with regards to timing the market. By trying to time the market every year on a similar date, investors would also be taking a risk of receiving negative returns on their investment.

Our StrategyStrategy 1:

We suggest investors to divide the entire investment into 3 parts of Rs. 50,000 each which can be invested in January, February and March 2017. This can even be trimmed down to Rs. 25,000 or so based upon the existing tax saving investments of individual investors such as EPF, Insurance premium and so on. From April 2017 onwards, investors can commence a monthly SIP of Rs.12,500 for 12 months.

Strategy 2:

Investors may also opt for a quarterly SIP of Rs.37,500. In this case, one can start a quarterly SIP from January 2017 onwards. Amount can be adjusted as per individual requirements as stated above...

To read the full Article, Click Here

Equity Linked Savings Schemes (ELSS) have always been in limelight only because of the tax benefit of Rs.1,50,000 p.a. In this report, we emphasize investing small amounts in the sidelined ELSS schemes to not just earn tax benefits but also be able to generate superior returns from them.

INVESTOR JOURNALFebruary, 2017

Story of The Month

Once upon a time, there lived a King who despite his luxurious lifestyle was neither happy nor satisfied. One day, the King came upon his attendant who was singing happily while he worked.

This fascinated the King; why was he, the Supreme Ruler of the Land, unhappy and gloomy, while the attendant had so much joy. The King asked the attendant, “Why are you so happy?”

The man replied, “Your Majesty, I am a mere attendant, but my family and I don’t require much – just a roof over our heads and warm food to fill our tummies. We’re content with that.”

The king was not satisfied with that reply. Later in the day, he sought the advice of his most trusted advisor. After hearing the King’s woes and the attendant’s story, the advisor said, “Your Majesty, I believe that the attendant has not been made part of the 99 Club.”

“The 99 Club?! And what exactly is that?” the King inquired.

THE 99 CLUB

We can be happy, even with very little in our lives, but the minute we’re given something bigger and better, we want even more! Striving for more is always good, but let’s not strive so hard and for so much that we lose all those near and dear to our heart. We shouldn’t compromise our happiness for moments of luxuries!

The advisor replied, “Your Majesty, you shall see if you place 99 Gold coins in a bag and leave it at this attendant’s doorstep.”

The curious king had it done. When the attendant saw the bag lying at the door, he took it into his house. When he opened the bag, he was so happy… So many gold coins!

He began to count them. After several counts, he was at last convinced that there were 99 coins. He wondered, “What could’ve happened to that last gold coin? Surely, no one would leave 99 coins!”

He looked everywhere he could, but that final coin was nowhere. Exhausted, he decided that he was going to have to work harder than ever to earn that gold coin and complete his collection.

From that day, the attendant became overworked, grumpy, and kept getting irritated with his family for not helping him make that 100th gold coin. He stopped singing while he worked.

Witnessing this drastic transformation, the King became more curious. He summoned his advisor who explained: “Your Majesty, the attendant has now officially joined The 99 Club.”

He continued, “There are those people who have enough to be happy but are never satisfied, because they’re always yearning and striving for that extra coin. They keep telling themselves: “Let me get that one final thing and then I will be happy for life. And this goes on and on...”

MORAL OF THE STORY:

Courtesy : Karvy Learning Center

Direct Dil Se…

12

INVESTOR JOURNALFebruary, 2017

SIP Performance

S&P BSE SENSEXCurrent NAV (`)

3 Year SIP 5 Year SIP

Rs.36000 Rs.60000

Profit-SIP XIRR(%) Profit-SIP XIRR(%)

Large Cap

Reliance Growth Fund(G) 911.37 7886.18 13.97 32855.20 18.01

DSPBR Equity Fund-Reg(G) 31.41 7449.22 13.25 29785.61 16.60

HDFC Core & Satellite Fund(G) 68.42 7192.88 12.82 29002.47 16.23

Templeton India Growth Fund(G) 218.80 8019.15 14.19 29883.56 16.64

Reliance Vision Fund(G) 468.30 5329.36 9.64 26312.52 14.95

Multi Cap

SBI Small & Midcap Fund-Reg(G) 37.89 13970.54 23.65 65958.51 31.04

Sundaram S.M.I.L.E Fund(G) 80.35 10862.32 18.81 52788.11 26.27

UTI Transportation & Logistics Fund(G) 99.51 10044.17 17.50 62848.85 29.96

Birla SL Pure Value Fund(G) 47.84 11406.18 19.67 55399.12 27.25

L&T India Value Fund-Reg(G) 30.65 12927.20 22.05 53347.39 26.48

Mid Cap & Small Cap

DSPBR Micro-Cap Fund-Reg(G) 53.803 17015.7167 28.1981 75155.9505 34.1197

Reliance Small Cap Fund(G) 32.04 14021.5642 23.726 68503.4404 31.9121

Canara Rob Emerg Equities Fund-Reg(G) 71.68 12143.8743 20.8302 58242.4587 28.3018

Mirae Asset Emerging Bluechip-Reg(G) 39.132 14574.991 24.5659 64554.323 30.5537

Kotak Emerging Equity Scheme(G) 32.398 13307.3875 22.6332 54862.7401 27.0522

ELSS

Escorts Tax(G) 75.91 12751.60 21.78 41192.08 21.64

Reliance Tax Saver (ELSS) Fund(G) 51.47 7514.92 13.36 39114.99 20.76

DSPBR Tax Saver Fund-Reg(G) 39.16 9990.85 17.42 39443.96 20.90

IDBI Equity Advantage Fund-Reg(G) 21.26 5869.05 10.57 0.00 0.00

Birla SL Tax Relief '96(G) 23.89 7375.46 13.12 35342.44 19.12

Sector

DSPBR Natural Res & New Energy Fund-Reg(G) 29.25 20763.41 33.57 54397.17 26.88

Franklin Build India Fund(G) 34.45 11729.36 20.18 53736.32 26.63

ICICI Pru Banking & Fin Serv Fund(G) 47.89 13486.55 22.91 48139.35 24.47

L&T Infrastructure Fund-Reg(G) 13.21 10922.52 18.91 40906.16 21.52

Birla SL Banking & Financial Services Fund-Reg(G) 21.97 13287.98 22.60 0.00 0.00

Index

ICICI Pru Nifty Index Fund(G) 83.84 3586.15 6.58 17424.22 10.43

IDBI Nifty Junior Index Fund(G) 18.20 9415.01 16.48 35124.24 19.03

R*Shares CNX 100 ETF 91.74 4462.61 8.13 0.00 0.00

HDFC Index Fund-Sensex Plus(G) 381.13 3850.59 7.05 18185.92 10.84

IDFC Nifty Fund-Reg(G) 17.6401 3725.2430 6.8312 17800.3556 10.6346

As on 03rd Feb’17 (Funds have been arranged on 3 years performance)

13

INVESTOR JOURNALFebruary, 2017

Category Average Returns

Category Sub Category1 Week Return

1 Month Return

3 Month Return

6 Month Return

1 Year Return

3 Year Return

5 Year Return

Since Inception

Diversified

Large-cap 1.98 7.45 1.52 3.63 21.78 17.91 13.32 12.03

Mid-cap 1.99 8.51 -0.21 5.74 24.43 29.49 22.38 15.67

Multi-cap 1.88 8.09 1.49 5.20 24.07 24.05 17.46 13.86

Small-cap 2.07 7.75 -0.51 6.71 24.98 34.98 25.06 21.15

Sector Funds

Banks & Financial Services 3.37 12.17 2.35 6.57 38.62 26.81 16.58 17.72

Energy & Power 1.14 10.19 7.09 14.65 38.11 29.39 12.79 17.80

FMCG 2.26 8.83 1.34 -1.73 15.63 15.86 19.17 15.97

Infrastructure 2.13 9.21 3.40 7.34 25.30 26.12 12.57 8.59

Media & Entertainment -1.04 2.29 -4.14 -1.17 8.34 17.52 16.35 15.39

Pharma & Health Care 0.28 0.55 -6.78 -8.32 -6.77 16.35 19.91 10.79

Service Industry 0.99 4.22 -0.58 0.15 4.99 19.59 23.70 15.04

TECk -1.50 -3.30 -0.68 -8.23 -8.02 5.17 13.39 7.49

Speciality

Contra 1.74 6.99 -0.90 2.46 19.58 22.69 16.17 16.74

Dividend Yield 1.92 8.25 2.68 6.53 24.56 19.60 14.21 14.10

Index - Nifty 1.63 7.25 2.43 1.82 19.31 14.55 11.85 11.81

Index - Sensex 1.86 6.13 2.31 1.07 16.06 11.88 10.68 15.58

MNC 1.37 4.90 -1.29 -2.17 10.45 28.01 21.84 17.75

Equity Exchange Traded Funds 1.90 7.20 3.21 3.95 23.35 15.74 10.78 9.29

Equity Linked Savings Scheme 1.96 7.75 1.01 4.59 22.57 21.33 16.11 15.16

Arbitrage Funds

Debt-Oriented 0.50 2.89 0.96 1.62 10.64 8.81 7.69 8.49

Equity-Oriented 0.24 0.79 1.28 2.82 6.66 7.73 8.18 6.95

Asset Allocation 0.86 3.44 0.84 1.59 12.77 9.82 8.30 8.84

Balanced Funds

Debt-Oriented 0.68 2.39 1.60 2.43 9.16 10.69 10.83 6.33

Equity-Oriented 1.30 5.14 1.46 4.21 18.83 18.21 14.74 12.73

Category Capital Protection Funds 0.38 1.45 1.67 2.78 8.76 11.38 7.15

Monthly Income Plans 0.51 1.83 2.20 4.87 13.85 12.42 10.36 9.07

Fund Of Funds

Debt-Oriented 0.52 1.84 2.56 5.05 13.23 12.08 10.03 9.47

Equity-Oriented 1.33 5.22 2.89 5.10 18.58 18.07 13.24 13.35

Hybrid-Oriented 0.73 4.01 1.43 3.59 14.73 11.77 9.93 10.70

Gold - FOF 0.83 4.61 -5.05 -7.05 8.93 -1.69 -0.95 0.29

Gold Exchange Traded Funds 0.23 4.46 -4.14 -7.20 8.01 0.77 -0.19 4.48

Income

Long Term 0.20 0.48 2.83 5.67 12.95 10.53 9.29 8.60

Medium Term 0.20 0.72 2.67 5.39 11.61 10.33 9.65 8.84

Short Term 0.19 0.71 2.31 4.73 10.18 9.39 9.10 8.31

Gilt

Long Term 0.23 0.22 3.96 7.35 17.56 12.89 10.12 9.39

Medium Term 0.16 0.21 2.80 5.81 14.15 10.95 9.30 9.13

Short Term 0.17 0.52 2.49 5.10 11.50 9.50 8.89 7.06

Floating Rate

Long Term Floating Rate 0.17 0.61 2.26 4.85 11.02 10.14 9.21 7.98

Med Term Floating Rate -0.17 0.18 1.32 3.68 8.31 9.34 9.04 7.09

Short Term Floating Rate 0.17 0.65 1.93 3.96 8.66 8.87 9.05 7.93

Speciality-Debt

Interval Funds - Half Yrly 0.17 0.64 1.76 3.53 7.65 8.18 8.61 8.18

Interval Funds - Monthly 0.25 0.64 1.66 3.29 6.98 7.93 8.41 8.01

Interval Funds - Quarterly 0.20 0.80 1.86 3.50 7.15 7.96 8.50 8.19

Interval Funds - Yearly 0.15 0.60 1.88 3.73 8.17 8.59 8.84 8.54

Liquid 0.12 0.54 1.59 3.30 7.26 8.02 8.48 7.38

Ultra Short Term Plan 0.17 0.65 1.94 3.99 8.71 8.58 8.71 7.81

Returns are as on 03rd Feb’1714

INVESTOR JOURNALFebruary, 2017

Fixed Deposits Schemes

FD Name Rating IndustryInterest Rate

* (Up to)

Bajaj Finance Ltd.FAAA by CRISILICRA MAAA

Bajaj Finserv is the most diversifed non-bank in the country, the largest financier of consumer durables in India and one of the most profitable firms in the category.

8.30%

DHFL Aashray DepositPlus

CARE AAA FD, BWR FAAA

Dewan Housing Finance Ltd (DHFL) is the second housing finance company to be set up in the private sector in India.

8.25%

Gruh Finance Ltd.MAAA by ICRA, FAAAby CRISIL

GRUH Finance Ltd is subsidiary of HDFC Ltd is housing finance company (HFC) recognized by National Housing Bank.

7.75%

HDFC Ltd.FAAA by CRISIL, MAAA by ICRA

A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 4.9 million customers to own a home of their own. HDFC is the Largest mobiliser of public deposits outside the banking system and the HDFC Group has a strong asset base of over Rs.2.97 trillion and a customer base of over 42.5 million.

7.65%

HUDCO‘tAA+(ind)’ by FITCH, ‘CARE AA+(FD)’ by CARE

HUDCO is a premier techno-financing company set up in 1970 by the Government of India to accelerate the pace of housing and urban development in the country.

7.25%

ICICI Home Finance Ltd

CARE FAAA, ICRA MAAA

ICICI Home Finance Company Limited is one of the leaders in the Indian mortgage finance and realty space.

7.65%

LIC Housing Finance Ltd.

FAAA / STABLE by CRISIL

One of India’s largest housing finance companies, having nation-wide network. Consistent record of dividend payments.

7.75%

Mahindra & Mahindra Financial Services Ltd

CRISIL FAAAMahindra and Mahindra Financial Services Limited (MMFSL) commenced its journey two decades back in the rural non-banking finance industry.

7.80%

PNB Housing Finance Ltd.

FAAA by CRISILPNB Housing Finance (PNBHF) is a subsidiary of Punjab National Bank and a partner of Destimoney Enterprises Pvt. Ltd. PNBHF was incorporated in 1988 and is based in New Delhi.

7.65%

Shriram City Union Finance Ltd.

IND +AA- CARE AA FD

As a deposit-accepting non-banking financial company (NBFC), Shriram City is today India’s premier financial services company specializing in retail finance.

8.50%

Shriram Unnati Deposits

FAAA/Stable by CRISIL, MAA+/Stable by ICRA

With a track record of about 30 years in this business, STFC is among the leading organized finance provider for the commercial vehicle industry

8.50%

Sundaram Home Finance Ltd.

ICRA MAA+Sundaram BNP Paribas Home Finance combines its expertise in Home Finance with the Service Orientiation of its promoter Sundaram Finance.

8.25%

* highest rate including additional interest for Senior citizens, employees etc. wherever applicable

15

Forthcoming IPOs:HUDCO Prataap Snacks Ltd

Dmart Bharat Matrimony

CDSL SBI Life Insurance

NSE Cochin Shipyard

S Chand and Company Ltd Vodafone

INVESTOR JOURNALFebruary, 2017

Equity Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Diversified

DSPBR Micro-Cap Fund-Reg(G) 53.8030 34.0718 44.9359 30.1926 19.0578

Mirae Asset Emerging Bluechip-Reg(G) 39.1320 33.4561 37.7621 28.9834 23.0594

Reliance Small Cap Fund(G) 32.0400 28.3500 39.5904 29.5557 20.0007

SBI Small & Midcap Fund-Reg(G) 37.8879 20.0538 40.8813 28.6648 19.7065

Sundaram S.M.I.L.E Fund(G) 80.3535 23.8926 39.4336 23.9156 19.0117

ELSS

Axis LT Equity Fund(G) 32.3716 11.1521 24.3952 21.5569 17.9886

DSPBR Tax Saver Fund-Reg(G) 39.1610 30.4845 26.0488 20.6559 14.5499

Escorts Tax(G) 75.9069 29.0914 31.1210 14.6839 12.7788

IDBI Equity Advantage Fund-Reg(G) 21.2600 12.6656 24.9435 24.8367

Reliance Tax Saver (ELSS) Fund(G) 51.4694 25.4012 29.0730 20.8644 15.4921

Sector

Birla SL Banking & Financial Services Fund-Reg(G) 21.9700 43.5948 33.4618 28.4912

DSPBR Natural Res & New Energy Fund-Reg(G) 29.1620 64.8129 34.8565 16.8156 12.9671

Franklin Build India Fund(G) 34.4483 34.6362 36.1395 25.4613 18.1415

ICICI Pru Banking & Fin Serv Fund(G) 47.8900 51.8389 34.0805 23.8583 20.3529

L&T Infrastructure Fund-Reg(G) 13.2100 33.7045 32.2344 16.8840 3.0193

Dividend Yield

Birla SL Dividend Yield Plus(G) 152.8600 22.2587 20.3811 13.4856 21.5231

BNP Paribas Dividend Yield Fund(G) 38.7090 21.5010 22.6054 17.8343 12.6159

HSBC Dividend Yield Equity Fund(G) 18.3616 23.5756 17.9774 13.1533 6.3440

Principal Dividend Yield Fund(G) 40.8100 29.5556 19.8004 14.1405 12.1030

Tata Dividend Yield Fund(G) 66.6874 21.1927 20.2861 15.4280 16.8192

Global

Birla SL Intl. Equity Fund-B(G) 15.7244 21.3199 14.6414 12.1175 5.0062

ICICI Pru Global Stable Equity Fund(G) 13.1900 9.2792 9.5407 8.5128

ICICI Pru US Bluechip Equity Fund(G) 20.3900 16.4477 9.6468 16.8386

Kotak US Equity Fund(G) 13.1670 16.1828 10.1090 9.2172

MOSt Shares NASDAQ-100 ETF 344.3989 19.1753 15.9695 22.9800 22.8504

Equity Index

HDFC Index Fund-Sensex Plus(G) 381.1260 19.0481 14.2735 11.8027 28.4098

ICICI Pru Nifty Next 50 Index Fund(G) 20.9417 32.4443 25.3716 18.6757 11.8246

IDBI Nifty Junior Index Fund(G) 18.2024 31.5849 24.6765 18.3664 9.8506

IDFC Nifty Fund-Reg(G) 17.6401 18.0461 13.5897 11.7082 8.7493

R*Shares CNX 100 ETF 91.7426 19.7370 15.1868 14.0551

Equity FOF

Birla SL Asset Allocator Multi FoF(G) 24.8961 19.4424 20.0776 12.9240 9.1015

Birla SL Financial Planning FOF Aggressive Plan(G) 18.9661 19.7249 18.7230 13.9309 11.7911

Franklin India Life Stage FOFs-20(G) 70.6655 19.4124 18.9620 14.0075 15.9882

ICICI Pru Very Aggressive(G) 62.9013 24.0256 17.6585 12.4052 15.0256

Kotak Asset Allocator Fund(G) 69.9410 18.0160 20.9146 15.8299 16.8464

(Funds has been arranged on the basis of 3 years performance)16

INVESTOR JOURNALFebruary, 2017

Debt Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Gilt Funds

Indiabulls Gilt(G) 1512.1904 17.8794 13.2688 10.7070

Invesco India Gilt Fund(G) 1808.4080 19.2787 12.4139 9.2198 6.8128

JM G-Sec Fund-Reg(G) 53.8316 20.3718 12.0373 9.7444 10.1826

SBI Magnum Gilt-LTP-Reg(G) 36.9914 17.5009 14.4128 11.7406 8.4513

UTI Gilt Adv-LTP(G) 36.9263 19.0403 14.2259 10.9282 9.0717

Income

Birla SL Dynamic Bond Fund-DAP(G) 20.3871 16.0019 12.1696 10.6354 9.5272

Birla SL Dynamic Bond Fund-Ret(G) 29.4719 16.0014 12.1693 10.6352 9.1394

ICICI Pru Income(G) 52.6535 18.0529 12.6457 9.4747 9.3505

ICICI Pru Long Term Plan(G) 20.4829 19.0237 13.9642 12.2545 10.7197

UTI Dynamic Bond Fund-Reg(G) 19.1570 16.1410 12.2703 10.9727 10.3196

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Balanced

Birla SL Balanced '95 Fund(G) 654.2400 21.5133 22.2476 16.7181 20.9356

DSPBR Balanced Fund-Reg(G) 128.6750 24.4174 22.8668 14.8986 15.5256

HDFC Balanced Fund(G) 125.9150 23.2612 22.3407 17.5665 16.6958

HDFC Prudence Fund(G) 439.8560 28.7612 22.7389 16.1473 19.5363

ICICI Pru Balanced Fund(G) 110.7600 27.6184 22.1917 18.7754 14.9472

MIP

Birla SL MIP II-Wealth 25(G) 35.5849 22.0270 17.1416 13.8153 10.5030

HDFC MIP-LTP(G) 41.2215 19.8083 14.9889 11.5790 11.4043

ICICI Pru Child Care Plan-Study Plan 64.0946 16.3117 18.5259 16.0339 12.7899

ICICI Pru MIP 25(G) 35.9443 16.2888 14.6618 11.8858 10.4647

SBI Magnum Children Benefit Plan 45.4027 21.4586 19.5228 13.6833 10.5945

Arbitrage

Birla SL Enhanced Arbitrage Fund(G) 16.7232 6.4996 7.3507 7.7181 7.0633

Edelweiss Absolute Return Fund(G) 19.1500 7.8266 12.8548 10.2878 9.0995

ICICI Pru Equity-Arbitrage Fund(G) 21.5491 6.6903 7.4277 8.4920 7.8967

Kotak Equity Arbitrage Scheme(G) 23.1956 6.4619 7.4714 8.2142 7.6923

Peerless 3 in 1 Fund(G) 16.0916 10.6401 8.8086 7.6931 8.4934

Gold-FOF

Birla SL Gold Fund(G) 9.8298 -9.0079 7.0475 -0.5088 -0.3514

HDFC Gold Fund(G) 9.7677 -14.5387 7.2809 -1.9078 -0.4458

ICICI Pru Regular Gold Savings Fund(G) 10.5424 -8.4059 11.4400 -0.2547 0.9982

Invesco India Gold Fund(G) 9.4788 -7.9724 31.0278 -1.2708 -1.0306

Reliance Gold Savings Fund(G) 12.7045 -14.2679 7.4971 -1.9436 4.1298

(Funds has been arranged on the basis of 1 year performance)

Hybrid Funds Performance

17

INVESTOR JOURNALFebruary, 2017

Global Markets at a Glance

18

Exhibit: Nifty

Exhibit: S&P 500

Exhibit: Euro Stoxx 50

Exhibit: Nikkei

Exhibit: Shanghai

Exhibit: INR

Exhibit: Dollar Index

Exhibit: Eur

Exhibit: JPY

Exhibit: CNY

Exhibit: India 10 Yr Yld %

Exhibit: US 10 Yr Yld %

Exhibit: Germany 10 Yr Yld %

Exhibit: Japan 10 Yr Yld %

Exhibit: China 10 Yr Yld %

Source: Bloomberg, Karvy Research

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INVESTOR JOURNALFebruary, 2017

Indices Watch

Index NameAs on

30-Dec-16As on

31-Jan-17%

Change

S&P BSE Capital Goods 13664.50 14783.32 8.19%

S&P BSE BANKEX 20748.74 22311.97 7.53%

S&P BSE Power Index 1987.58 2167.72 9.06%

S&P BSE PSU 7691.27 8337.40 8.40%

S&P BSE DOLLEX 30 3220.50 3348.03 3.96%

S&P BSE AUTO Index 20257.43 21809.24 7.66%

S&P BSE SENSEX 26626.46 27655.96 3.87%

S&P BSE 100 8386.69 8831.71 5.31%

S&P BSE 200 3511.05 3701.12 5.41%

S&P BSE 500 11036.44 11659.94 5.65%

S&P BSE O & G Index 12151.64 12838.16 5.65%

S&P BSE METAL Index 10109.34 11672.32 15.46%

S&P BSE Mid-Cap 12031.34 12857.47 6.87%

S&P BSE GREENEX 2329.40 2460.08 5.61%

S&P BSE Small-Cap 12046.13 12935.66 7.38%

S&P BSE TECk Index 5498.49 5338.08 -2.92%

S&P BSE Consumer Durables 11237.12 12625.91 12.36%

S&P BSE IT 10176.05 9586.34 -5.80%

S&P BSE Health Care 14727.59 14797.01 0.47%

S&P BSE FMCG 8130.87 8567.58 5.37%

S&P BSE Realty Index 1263.94 1369.73 8.37%

Indian Indices:

Index NameAs on

30-Dec-16As on

31-Jan-17%

Change

NIFTY FMCG 20754.10 21832.65 5.20%

NIFTY MEDIA 2610.75 2771.40 6.15%

NIFTY COMMODITIES 3033.80 3323.35 9.54%

NIFTY 100 8382.50 8825.00 5.28%

Nifty 500 Shariah index 2261.78 2337.18 3.33%

NIFTY PSE 3692.70 4021.50 8.90%

NIFTY DIV OPPS 50 2104.55 2192.95 4.20%

NIFTY FINANCE 7407.05 7917.45 6.89%

NIFTY IT 10399.25 9848.50 -5.30%

NIFTY REALTY 165.35 179.55 8.59%

Nifty Midcap 50 3662.30 3866.50 5.58%

INDIA VIX 15.47 16.83 8.79%

NIFTY 100 8382.50 8825.00 5.28%

NIFTY SERV SECTOR 10412.90 10893.15 4.61%

NIFTY 50 8185.80 8561.30 4.59%

NIFTY INFRA 2712.25 2939.60 8.38%

NIFTY PHARMA 10267.00 10236.35 -0.30%

NIFTY METAL 2652.50 3072.10 15.82%

NIFTY PSU BANK 2982.00 3174.35 6.45%

NIFTY 500 6982.80 7379.30 5.68%

NIFTY 200 4357.30 4594.10 5.43%

NIFTY CONSUMPTION 3517.20 3784.15 7.59%

NIFTY BANK 18177.20 19515.15 7.36%

NIFTY ENERGY 10271.55 10674.15 3.92%

Global Indices:

Index NameAs on

30-Dec-16As on

31-Jan-17%

Change

Bovespa 60227.00 64671.00 7.38%

CAC 40 4862.31 4748.90 -2.33%

DAX 11481.06 11535.31 0.47%

Dow Jones 19762.60 19864.09 0.51%

FTSE 100 7142.80 7099.20 -0.61%

Hang Seng 22000.56 23360.78 6.18%

NYSE 11056.90 11222.96 1.50%

S&P 400 1660.58 1687.19 1.60%

Taiwan Weighted 9253.50 9447.95 2.10%

All Ordinaries 5719.10 5675.00 -0.77%

DisclaimerThe information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document.

This report is intended for a restricted audience and we are not soliciting any action based on it.

For more information on MUTUAL FUNDS call1800 425 8282 or contact your nearest Karvy branch.

Research TeamPF/MFNL/04022017/38

Ankit ChoradiaE-mail : [email protected]

Phone : 040 3321 7132

Production: Naga Babu K

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