It’s time for Prudent Investingrrfinance.com/pdf_files/Prudence Fund - NFO ppt (retail).pdf · It’s time for Prudent Investing !!! Creating wealth since For Illustration Purpose

It’s time for Prudent Investing !!!

For Illustration Purpose Only Creating wealth since 7 years!!!

For institutional Use Only

Existing Product Basket

RISK

RETURN

International Funds

MidCap Fund

Large Cap Fund

Fixed Income Funds

Existing Funds


Volatility of Last 7 years

7,000

12,000

17,000

22,000

27,000

32,000

Ap

r-0

8

Jun

-08

Au

g-0

8

Oct-

08

De

c-0

8

Fe

b-0

9

Ap

r-0

9

Jun

-09

Au

g-0

9

Oct-

09

De

c-0

9

Fe

b-1

0

Ap

r-1

0

Jun

-10

Au

g-1

0

Oct-

10

De

c-1

0

Fe

b-1

1

Ap

r-1

1

Jun

-11

Au

g-1

1

Oct-

11

De

c-1

1

Fe

b-1

2

Ap

r-1

2

Jun

-12

Au

g-1

2

Oct-

12

De

c-1

2

Fe

b-1

3

Ap

r-1

3

Jun

-13

Au

g-1

3

Oct-

13

De

c-1

3

Fe

b-1

4

Ap

r-1

4

Jun

-14

Au

g-1

4

Oct-

14

De

c-1

4

Fe

b-1

5

S&P BSE Sensex

S&P BSE Sensex

Global Financial Crisis

Rebound Rally

Fed tapering &

Weak currency

New Government

formation

India’s Macroeconomic

concerns

Recovering

Macro economy

Previous Bull Market peak

Source: Bloomberg, 31st March, 2015

Market Dynamics Sailing Through Global & Domestic Headwinds


Existing Product Basket – How did they fair

RISK

RETURN

International Funds

MidCap Fund

Large Cap Fund

Fixed Income Funds

Existing Funds


Mirae Asset India Opportunities Fund - Journey

Source : AMFI, BSE India, 31 st March 2015 The above chart shows performance since inception for Mirae Asset India Opportunities Fund - Regular Plan - Growth Option. Past Performance may or may not be sustained in future. The above is NAV movement of graph as on 31st March, 2015. The Scheme NAV and Benchmark index have been rebased to Rs. 10/-

4

9

14

19

24

29

34

Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14

MAIOF S&P BSE 200 S&P BSE SENSEX

32.427

18.222

18.633

Mar-15

Rs

.


Mirae Asset Emerging Bluechip Fund – Journey so Far

Source : AMFI, BSE India, 31 st March 2015 The Scheme NAV and Benchmark index have been rebased to Rs.10/-. Past performance may or may not be sustained in future and is no guarantee of future results. The above chart shows performance since inception for Mirae Asset Emerging Bluechip Fund- Regular Plan - Growth Option.

5

10

15

20

25

30

35

Ju

l-1

0

Se

p-1

0

No

v-1

0

Ja

n-1

1

Ma

r-1

1

May-1

1

Ju

l-1

1

Se

p-1

1

No

v-1

1

Ja

n-1

2

Ma

r-1

2

Ma

y-1

2

Ju

l-1

2

Se

p-1

2

No

v-1

2

Ja

n-1

3

Ma

r-1

3

May-1

3

Ju

l-1

3

Se

p-1

3

No

v-1

3

Ja

n-1

4

Ma

r-1

4

Ma

y-1

4

Ju

l-1

4

Se

p-1

4

No

v-1

4

Ja

n-1

5

Ma

r-1

5

MAEBF CNX Midcap S&P BSE Sensex

29.244

15.677

15.662

Rs.

Consistent Seven Years Journey!


-34.8%

117.2%

14.4%

-2.9%

7.6%

25.1%

46.9%

-39.9%

89.6%

7.3%

-9.5%

5.4%

16.7%

31.7%

-36.7%

77.0%

9.9%

-10.4%

7.8%

18.7% 24.6%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

FY 2008 - 2009 FY 2009 - 2010 FY 2010 - 2011 FY 2011 - 2012 FY 2012 - 2013 FY 2013 - 2014 FY 2014 - 2015

MAIOF

S&P BSE 200

S&P BSE Sensex

Mirae Asset India Opportunities Fund

- YoY Journey!

Source: Bloomberg, 31st March, 2015. Past performance may or may not be sustained in future. The CY period is considered from the first day of the year to the last day of the year

% returns

MAIOF has been consistently outperforming benchmark year on year.


Mirae Asset Emerging Bluechip Fund -

YoY Performance……..

Source: Bloomberg, 31st March, 2015. The aforesaid graph depicts absolute performance of the scheme for the calendar year.

Past performances may or may not sustain in future and is no guarantee of future results.

13%

-16%

46%

8%

84%

4% 7%

-31%

40%

-6%

55%

3%

15%

-25%

25%

8%

30%

2%

-40%

-20%

0%

20%

40%

60%

80%

100%

CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 (YTD)

MAEBF

CNX Midcap

BSE S&P Sensex

% returns


Consistent Dividend Record

• Past performances may or may not sustain in future.

• Pursuant to payment of dividend the NAV of the dividend option of the scheme falls to the extent of payout and statutory levy (if applicable)

Mirae Asset India Opportunities Fund

Record Date Rate of Dividend

(in Rs)

Face Value

(in Rs)

CUM NAV

(in Rs)

13-Feb-15 1.60 per unit 10 19.709

27-Jan-14 1.20 per unit 10 13.196

14-Mar-13 1.40 per unit 10 13.559

22-Mar-12 1.50 per Unit 10 13.376

10-Dec-10 1.50 per Unit 10 13.978

9-Sep-09 0.90 per Unit 10 12.039

Record Date Rate of Dividend

(in Rs)

Face Value

(in Rs)

CUM NAV

(in Rs)

8-Dec-14 1.80 per Unit 10 22.991

18-Mar-14 1.20 per Unit 10 14.959

29-Oct-12 1.10 per Unit 10 12.912

Mirae Asset Emerging Bluechip Fund

Expansion of Product Basket


Expanding Product Basket

RISK

RETURN

International Funds

MidCap Fund

Large Cap Fund

Fixed Income Funds

Existing Funds New Fund

New Fund


Fund Structure

Balanced Approach

Underlying Portfolio

Asset Allocation

Fund New Fund

Equity

65% - 80%

Large Cap* Bias

Debt

20% - 35%

Corporate Bonds

CD, CP, G-Sec

Risk Adjusted Returns

* Top 100 companies by market capitalization are classified as Large cap Companies and below top 100 as Mid and Small Caps.


Risk/Return Profile

Liquid

Funds

Bond Funds

Sector Fund/

Thematic Fund

Lower Risk/Lower Return High Risk/High Return

Potential Potential

Mid / Small

Cap Fund

Large Cap

Fund

New Fund

Gilt Funds

Income Funds


Investor Profile

Investment Goal

Capital Preservation Generate Income Wealth Creation

through Protective Compounding

Low Risk Funds Moderately Low or

Low Risk Funds

Moderately High

Risk Funds

Liquid Funds

Overnight Funds

Ultra Short Term Bond Funds,

Short Term Bond Funds

Income Funds

Equity Funds with Large Cap

Bias


Comfort of Rebalancing


The Scenario

An investor invests Rs. 1 lakh on January 01, 2005. He

puts half of his investment in equity and the other half

in debt. So he starts off with an Equity : Debt allocation

of 50:50. For the sake of simplicity, we did not look at

any annual additions to the portfolio. We consider just

the initial amount. For equity returns, we looked at the

Sensex. For debt, we looked at the one-year fixed

deposit rates. We then looked at the portfolio on

January 01, 2015.

Where does he win?

If he maintained his Equity : Debt allocation of 50:50 by

opting for annual rebalancing, he would end up with

Rs.3.25 lakh.

If he choose to ignore rebalancing and just left his

portfolio untouched, his investment would be worth Rs.

2.78 lakh.

Rs. 1 Lakh

Initial Investment

Rs. 2.78 Lakhs

Without Annual

Balancing

Rs. 3.25 Lakhs

With Annual

Balancing

Disciplined Investing

Portfolio Rebalancing - Powered by


Investors spend too much time/focus on trying to “Timing the Market” which yields less than

2%, while ignoring Asset Allocation which constituents more than 90% of the investors returns

Why Asset Allocation?

Asset Allocation strategies driver returns

Asset Allocation, 91.5%

Security Selection, 4.6%

Market Timing, 1.8%

Other Factors, 2.1%

Drivers of investment results

Source: Financial Analyst Journal, 1986



No One Asset Class Performs at all times

Balance Portfolio mirrors the Equity performance in Bull Markets but in Bear Markets of

Equities they have been able to restrict the downside.

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15

% R

etu

rns

No Asset Class Always Outperforms

Equity Fixed Income 65%-35% Portfolio

Debt Outperformance

Equity Outperformance

Past Performance may or may not sustain in future. The above graph depicts 3 year CAGR rolling returns starting from 1st April 2005 to 31st May 2015. Source: Bloomberg



Asset Allocation Returns - Powered by

80

130

180

230

280

330

380

430

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

Pure Equity 80% Equity 70% Equity 60% Equity 40% Equity 20% Equity Pure Fixed Income

Absolute Returns CAGR Returns

Pure Equity 276.37% 14.18%

80% Equity 273.41% 14.09%

70% Equity 262.18% 13.75%

60% Equity 246.01% 13.23%

40% Equity 203.12% 11.74%

20% Equity 152.40% 9.71%

Pure Fixed Income 101.86% 7.28%

Past Performance may or may not sustain in future. Equity part of the investment is equivalent to the BSE Sensex. Fixed income part is a representative liquid fund. Rebalancing was done at the beginning of every year by restoring both the asset classes to their desired proportion. The ten-year comparison is done with annual rebalancing.

70- 80% Equity portfolios delivers similar returns as 100% Equity portfolio with lower volatility


Balance - Risk v/s Reward

Past Performance may or may not sustain in future. Volatility is annualized Standard deviation and Returns are in CAGR terms. The period of

the same is 1st April 2002 to 31st May, 2015. Portfolio of Equity is CNX Nifty, Gold is Gold in INR terms, Fixed Income is I-Sec Composite

Index and Commodity is RICI Commodity Index. Source: Bloomberg, 31st May 2015.

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

10% 12% 14% 16% 18% 20% 22% 24% 26%

Retu

rns (

in %

)

Volatility

Volatility and Returns of Different Asset classes

Fixed Income

Commodity

65% Equity; 35% Debt

Gold

Equity

Favorable Risk-Return Portfolio


The investment objective of the Scheme is to generate capital appreciation along with current income from a

combined portfolio of equity & equity related instruments and debt and money market instruments.

MAPF - Investment Objective


Allocation between Equity and Debt- Function of Valuation, Earnings Growth and Interest Rate

Outlook

Bottom up Stock selection Process

No Bias towards any sector/Themes

MAPF – Equity Investment Strategy

Mid and Small Caps* (Up to 15%) Allocation based on better growth outlook

and valuation gap with Large caps

Stock Selection Parameters 1. Business Selection

2. Management

3. Valuation

Large Caps* (65-80%) (Growth opportunities through

large caps)

* Top 100 companies by market capitalization are classified as Large cap Companies and below top 100 as Mid and Small Caps.


-2.4%

-7.5%

-10.1%

16.8%

19.3%

23.8%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

S&P BSE Sensex S&P BSE MidCap S&P BSE SmallCap

3 Year CAGR Rolling Returns

Large Cap vs Mid vs Small cap

In falling markets large caps generally provide stability to the portfolio and

they participate in the bull rallies.

Source: Bloomberg, 31st May, 2015. The above chart depicts average Highs and Lows, over the period of June-2005 to May-2015.

Past performance of the indices may or may not be sustained in future and may vary according to the changing economic environment.

% returns


Why Large Cap Companies?

First to react to an economic revival.

Generally performs across various market cycles.

Highly traded on stock exchanges ensuring good

liquidity.

Advantages of size and scale.

These companies have proven track records and

have been through several market cycles.

MAPF - Large Caps generally provide stability

Source: Bloomberg, 31st May, 2015. The Top 100 companies by

market capitalization have been classified as large caps.

24.2

3.3

0 5 10 15 20 25 30

Large Cap

Mid & Small Cap

Average Volume (in lakhs) 6 months


MAPF – Equity Stock Selection Process

• Business with Scalability & Sustainable Competitive Advantages

• High ROI (Return on Investment), and thus free cash generation

• Strong Earnings Growth & Visibility

BUSINESS SELECTION

• Intellect and thought leadership

• Good Corporate governance track record

MANAGEMENT

• Bias for reasonable “Margin of Safety”, which mitigates underlying risks (related to business, liquidity and volatility)

VALUATION

PORTFOLIO


MAPF - Debt Investment Process

Final Debt Portfolio

Precautions

• Adequate precautions are taken to reduce credit risk, liquidity risk and risk spreads.

Method

• Mix of Top down and Bottom up method is followed

Approach

• The approach is primarily guided by the interest rate movement in the market.

Aim

• The strategy aims to maximize risk-adjusted returns by allocating assets dynamically to the most attractive fixed income securities.


Its better to ride with airbags then without


Mirae Asset Prudence Fund (An Open Ended Equity Oriented Asset Allocation Scheme)

NFO Opens: 8th July, 2015 NFO Closes: 22nd July, 2015*

*Scheme re-opens for continuous sale and re-purchase on or before five business days from the date of allotment.



Product Labelling

Certain information contained in this document is compiled

from third party sources. Whilst Mirae Asset Global

Investments (India) Private Limited has to the best of its

endeavor ensured that such information is accurate,

complete and up-to-date, and has taken care in accurately

reproducing the information, it shall have no responsibility or

liability whatsoever for the accuracy of such information or

any use or reliance thereof. This document shall not be

deemed to constitute any offer to sell the schemes of Mirae

Asset Mutual Fund. Mirae Asset Global Investments (India)

Pvt. Ltd/ Mirae Asset Trustee Co. Pvt. Ltd./ Mirae Asset

Mutual Fund/ its Directors or employees accepts no liability

for any loss or damage of any kind resulting out of the

unauthorized use of this document. References to particular

sectors, securities or companies are for general information

only and are not recommendations to buy or sell a security,

or an indication of the author’s holdings/ portfolios of the

schemes of Mirae Asset Mutual Fund at any one time.

The data mentioned are as on 23rd June, 2015.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO

MARKET RISKS, READ ALL SCHEME RELATED

DOCUMENTS CAREFULLY


Mirae Asset India Opportunities Fund – Regular Plan – Growth Option is managed by Mr. Neelesh Surana and Mr. Sumit Agrawal

Period NAV at the end of the period (Rs. per unit)

Returns

MAIOF S&P BSE 200 S&P BSE Sensex**

31st March 2014 - 31st March 2015 32.427 46.99% 31.93% 24.89%

31st March 2013 - 31st March 2014 22.060 25.09% 17.19% 18.85%

31st March 2012 - 31st March 2013 17.522 8.32% 6.03% 8.23%

Since Inception(CAGR)- 31st March 15 32.427 18.32% 9.31% 8.96%

Since Inception - 31st March 15 (Value INR)* 32.427 32,427 18,633 18,222

Index Value ( 31st March, 2015) Index Value of S&P BSE 200 is 3537.55 and Index value of S&P BSE Sensex is 27,957.49

Date of allotment 04-Apr-08

Scheme Benchmark S&P BSE 200

Source: Ace MF : 31st March, 2015 **Alternate Benchmark; * Value of Investment of Rs. 10,000/- Invested in the Scheme. Past performances may or may not sustain in future.

Performance of other Funds

Period NAV at the end of the period (Rs. per unit)

Returns

MAEBF CNX Midcap S&P BSE Sensex**

31st March 2014 - 31st March 2015 29.244 70.38% 50.96% 24.89%

31st March 2013 - 31st March 2014 17.164 35.34% 16.36% 18.85%

31st March 2012 - 31st March 2013 12.682 9.62% -4.02% 8.23%

Since Inception(CAGR)- 31st March 15 29.244 25.47% 9.95% 9.97%

Since Inception - 31st March 15 (Value INR)* 29.244 29,244 15,662 15,677

Index Value ( 31st March, 2015) Index Value of CNX Midcap is 13,001.25 and Index value of S&P BSE Sensex is 27,957.49

Date of allotment 09-Jul-10

Scheme Benchmark CNX Midcap

Mirae Asset Emerging Bluechip Fund – Regular Plan – Growth Option is managed by Mr. Neelesh Surana


Note: * For computation of since inception returns (%) the allotment NAV has been taken as Rs 10.00. In case, the start/end date of the concerned period is a non-

business date (NBD), the NAV of the previous date is considered for computation of returns. Returns (%) for less than 1 year calculated on simple annualized

basis. Load is not considered for computation of returns. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns

provided are of Regular Plan-Growth Option & Absolute returns. CAGR -Compounded Annualized Growth returns. *As per SEBI standard on performance disclosure,

returns in INR terms based on a standard investment of ` 10,000/- have been shown only for Schemes that have been in existence for more than three years. NAV (per

unit) is at the end of the period. Past performance may or may not be sustained in future. **Alternate Scheme -Benchmark.

Refer SID and SAI for details of the Load structure, risk factors, investment strategy, asset allocation and other details before investing.

Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Global Investments (India) Private Limited (AMC);

Sponsor: Mirae Asset Global Investments Company Limited.

Certain information contained in this document is compiled from third party sources. Whilst Mirae Asset Global Investments (India) Private Limited has to

the best of its endeavour ensured that such information is accurate, complete and up-to-date, and has taken care in accurately reproducing the information,

it shall have no responsibility or liability whatsoever for the accuracy of such information or any use or reliance thereof. The views expressed herein

represents general market outlook and are not based on any assumptions/projections and purely represent the views of the author. This document shall

not be deemed to constitute any offer to sell the schemes of Mirae Asset Mutual Fund. Mirae Asset Global Investments (India) Pvt. Ltd/ Mirae Asset Trustee

Co. Pvt. Ltd./ Mirae Asset Mutual Fund/ its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the unauthorized

use of this document. References to particular sectors, securities or companies are for general information only and are not recommendations to buy or

sell a security, or may be a part of author’s holdings/ portfolios (subject to change without any intimation) of the schemes of Mirae Asset Mutual Fund at

any one time.

The presentation is dated June 25, 2015

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED

DOCUMENTS CAREFULLY.

Disclaimer

Documents

It’s time for Prudent Investingrrfinance.com/pdf_files/Prudence Fund - NFO ppt (retail).pdf · It’s time for Prudent Investing !!! Creating wealth since For Illustration Purpose