Mutual Funds Report – Feb 2017 - India Infolinecontent.indiainfoline.com/wc/research/researchreports/...Mutual Funds Report – Feb 2017 2 Table of Content Page no. Mutual Funds

February 2017

Mutual Funds Report – Feb 2017

2

Table of Content Page no.

Mutual Funds for the Month 3-8

HDFC Prudence Fund 4

SBI BlueChip Fund 5

IIFL India Growth Fund 6

Franklin India Smaller Cos Fund 7

ICICI Prudential Infrastructure Fund 8

Recommended Mutual Funds – Category-wise 9-10

Snapshot of Mutual Funds Industry 11

Category-wise Return of Mutual Funds 12

Mutual Funds for the Month

3

Scheme Name Fund Manager Corpus (Rs cr) 1 M (%) 6 M (%) 1 Y (%) 3 Y (%) 5 Y (%)

HDFC Prudence Fund(G) Prashant Jain 14,953 6.6 11.3 31.9 23.4 16.1

SBI BlueChip Fund(G) Sohini Andani 10,104 6.5 1.7 19.2 22.5 18.8

IIFL India Growth Fund-Reg(G) Prashasta Seth 243 8.8 5.2 31.7 NA NA

Franklin India Smaller Cos Fund(G) R. Janakiraman 4,114 8.4 8.1 31.9 37.7 30.5

ICICI Pru Infrastructure Fund(G) Sankaran Naren 1,240 9.3 10.2 30.5 23.2 11.5

Returns less than 1 year are absolute; Returns greater then 1 year are CAGR. Corpus as on : Dec 2016 ; Returns and Ratios as on February 03, 2017Source: ACE MF

Fund Benchmark CRISIL Balanced Fund - Aggressive Index AUM (Rs. cr.) 14,953

Inception Date February 1, 1994 Exit Load NIL upto 15% of investment and 1% in excess of 15% of investment on or before 1Y, NIL after 1Y

Fund Manager Prashant Jain Expense Ratio 2.27%

Fund Basic Details

Top 5 Stocks % Asset SBI 6.7Larsen & Toubro 6.7ICICI Bank 6.4Infosys 4.1Tata Steel 3.2

Top Holdings

Portfolio Characteristics

Particulars Fund

PE Ratio 22.5PB Ratio 2.9

No of Stocks 93

HDFC Prudence Fund is a balanced equity-oriented fund which has invested ~70% inequity (~50% in large cap stocks and ~20% in Mid cap and Small cap stocks) and ~30%in debt instrument.

Fund manager Prashant Jain, is the CIO of HDFC AMC and manages four funds. On anaverage his funds have given ~30% and ~22.5% CAGR returns in 1 year and 3 yearsrespectively.

From 2016, the fund is giving 1% dividend yield on a monthly basis. In last 15 years, itsaverage annual dividend yield is ~ 12%.

In last 5 years, the fund has outperformed its benchmark on yearly basis for 57% of theweeks .

SIP Details - Invested Rs 5000 Every MonthReturns

0%

10%

20%

30%

40%

1 Year 3 Years 5 YearsFundCRISIL Balanced Fund - Aggressive IndexS&P BSE SENSEX

51%

12%

10%

27%

Large Cap Mid Cap Small Cap Debt & Cash

4

HDFC Prudence Fund

Asset Allocation

Period Total Investment (Rs) Scheme (Rs)

1 year 60,000 68,852

3 years 1,80,000 2,24,260

5 years 3,00,000 4,63,187

10 years 6,00,000 13,74,348

Returns less than 1 year are absolute; Returns greater then 1 year are CAGR.Portfolio as on : Dec 2016 ; Returns and Ratios as on February 03, 2017Source: ACE MF

Fund Benchmark S&P BSE 100 AUM (Rs. cr.) 10,104

Inception Date January 20, 2006 Exit Load 1% on or before 1Y, Nil after 1Y

Fund Manager Sohini Andani Expense Ratio 1.98%

Fund Basic Details

Top 5 Stocks % Asset HDFC Bank 6.5Sun Pharma Inds. 3.3Reliance Industries 3.2Larsen & Toubro 3.2Mahindra & Mahindra 3.1

Top Holdings


SBI BlueChip Fund is a large-cap equity fund which has invested ~76% of its AUM inlarge cap stocks to generate stable returns while ~19% in debt instruments to cap thedownward risk.

Fund manager Sohini Andani manages three funds. On an average her funds have given~19% and ~23% CAGR returns in 1 year and 3 years respectively.

In last 5 years, the fund has outperformed its benchmark on yearly basis for 97% of theweeks .


0%

5%

10%

15%

20%

25%

1 Year 3 Years 5 Years

Fund S&P BSE 100 S&P BSE SENSEX

5

SBI BlueChip Fund

Asset Allocation


1 year 60,000 64,397

3 years 1,80,000 2,19,730

5 years 3,00,000 4,68,596

10 years 6,00,000 12,59,929

Particulars FundBeta 0.88PE Ratio 25.1PB Ratio 4.5No of Stocks 53

76%

5%

19%

Large Cap Mid Cap Debt & Cash


Fund Benchmark NIFTY 50 AUM (Rs. cr.) 243

Inception Date October 30, 2014 Exit Load Nil

Fund Manager Prashasta Seth Expense Ratio 1.95%

Fund Basic Details

Top 5 Stocks % Asset HDFC Bank 9.6Power Grid Corpn. 8.5HCL Tech. 7.8Castrol India 7.2Tech Mahindra 5.3

Top Holdings


Particulars FundBeta 1.09PE Ratio 22.2PB Ratio 5.4

No of Stocks 18

IIFL India Growth fund is a multi-cap equity MF which has invested 81% of its AUM inequity, particularly in large-cap companies, for capital appreciation while 19% isinvested in debt instruments to cap the downside risk.

The scheme invests in 20-25 high conviction stocks rather than typical 50-70 stocks ina mutual funds portfolio. This philosophy has generated significant alpha.

It has no exit load and lowest expense ratio in equity mutual funds, ensuring liquidityand flexibility, and higher returns to investors.

Since its inception, the fund has outperformed its benchmark on yearly basis for 99% ofthe weeks .


0%

10%

20%

30%

40%

1 Year

Fund NIFTY 50 S&P BSE SENSEX

6

IIFL India Growth Fund

Market Cap Allocation


1 year 60,000 68,676

3 years NA NA

5 years NA NA

81%

1%

18%

Large Cap Mid Cap Debt & Cash


Fund Benchmark Nifty Free Float Midcap 100 AUM (Rs. cr.) 4,114

Inception Date January 13, 2006 Exit Load 1% on or before 1Y, Nil after 1Y

Fund Manager R. Janakiraman,Hari Shyamsunder Expense Ratio 2.46%

Fund Basic Details

Top 5 Stocks % Asset Finolex Cables 4.1Equitas Holdings 3.1Yes Bank 2.4Repco Home Finance 2.3Voltas 2.3

Top Holdings



No of Stocks 73

Franklin India Small Cos Fund is a small-cap equity fund which has invested ~62% in mid-cap and mid-cap companies, ~17% in large-cap companies and ~11% in debtinstruments. It has very well diversified portfolio of 73 stocks.

Fund manager R. Janakiraman manages four funds. His funds have given an averageCARG returns of ~32% and ~38% in 1 year and 3 years respectively, best in theirrespective category.

In last 5 years, the fund has outperformed its benchmark on yearly basis for ~99% of theweeks .


0%

10%

20%

30%

40%


Fund NIFTY 50 S&P BSE SENSEX

17%

42%

30%

11%


7

Franklin India Smaller Cos Fund




1 year 60,000 68,460

3 years 1,80,000 2,52,270

5 years 3,00,000 6,31,287

10 years 6,00,000 19,65,482

Fund Benchmark Nifty Infra AUM (Rs. cr.) 1,240

Inception Date August 2005 Exit Load 1% on or before 1Y, Nil after 1Y

Fund Manager Sankaran Naren, Atul Patel Expense Ratio 2.46%

Fund Basic Details

Top 5 Stocks % Asset Bharti Airtel 8.9Power Grid Corpn. 8.6Coal India 7.9CESC 5.2NTPC 5.1

Top Holdings



No of Stocks 38

ICICI Prudential Infrastructure Fund is an infrastructure fund which has invested ~50% ofits AUM in large cap stocks while ~44% in Mid cap and Small cap.

Fund manager Sankaran Naren, is the CIO of ICICI Pru AMC and manages six funds. Onan average his funds have given ~30% and ~23% CAGR returns in 1 year and 3 yearsrespectively.

On the back of significant government spending on infrastructure, particularly on powersector, this fund is expected to outperform the market since it has invested ~25% of itsAUM in power generation and distribution sector followed by Engineering –Construction (~12.3%) and Mining & Minerals (~9.2%).

In last 5 years, the fund has outperformed its benchmark on yearly basis for ~88% of theweeks.


0%

10%

20%

30%

40%


Fund NIFTY INFRA S&P BSE SENSEX

50%

25%

19%

6%


8

ICICI Prudential Infrastructure Fund




1 year 60,000 69,657

3 years 1,80,000 2,15,146

5 years 3,00,000 4,31,483

10 years 6,00,000 9,78,766

Recommended Mutual Funds – Category-wise

9


Balanced Fund

HDFC Prudence Fund(G) Prashant Jain 14,953 6.6 11.3 31.8 23.4 16.1

ICICI Pru Balanced Fund(G) Sankaran Naren 5,098 5.4 10.5 29.2 22.6 18.7

Large Cap

Reliance Growth Fund(G) Sunil Singhania 5,351 8.6 7.4 27.1 25.2 16.6

SBI BlueChip Fund-Reg(G) Sohini Andani 10,104 6.5 1.7 19.2 22.5 18.8

Multi-Cap

Birla SL Equity Fund(G) Anil Shah 3,295 8.6 11.4 37.4 28.7 20.9

IIFL India Growth Fund-Reg(G) Prashasta Seth 243 8.8 5.2 31.6 NA NA

Mid-Cap

HDFC Mid-Cap Opportunities Fund(G) Chirag Setalvad 12,848 8.8 10.7 33.9 32.9 24.9

SBI Magnum MidCap Fund-Reg(G) Sohini Andani 2,971 7.4 4.7 24.0 32.0 27.6

Small-Cap

Franklin India Smaller Cos Fund(G) R. Janakiraman 4,114 8.4 8.1 31.8 37.7 30.5

Reliance Small Cap Fund(G) Sunil Singhania 2,651 8.3 16.5 31.9 40.2 29.5


Recommended Mutual Funds – Category-wise

10


ELSS

Birla SL Tax Relief '96(G) Mahesh Patil 2,433 5.3 2.5 18.8 25.1 19.3

Reliance Tax Saver (ELSS) Fund(G) Ashwani Kumar 5,871 8.3 9.1 28.5 29.6 20.6

Debt Mutual Funds

ICICI Pru Income Opportunities Fund(G) Manish Banthia 3,779 0.6 5.5 12.5 11.6 9.8HDFC Medium Term Opportunities Fund(G) Anupam Joshi 8,574 0.9 5.3 11.5 10.3 9.7

HDFC STP(G) Anil Bamboli 3,978 0.8 5.0 10.6 10.3 9.5

Reliance Money Manager Fund(G) Amit Tripathi 17,278 0.7 4.0 8.8 8.7 9.0


Type (Rs thousand cr) Dec-16 Dec-15 Change

(yoy)

Hybrid Funds 194 140 38%

Debt Funds 988 752 31%

Equity Funds 456 385 18%

Commodity Funds 7 7 13%

Total 1,645 1,285 28%

11

Category (Rs thousand cr) Dec-16 Dec-15 Change

(yoy)Income 351 247 42%

Diversified 330 283 16%

Liquid 262 236 11%

Ultra Short Term Plan 200 130 54%

Balanced Funds 123 84 47%

Fixed Maturity Plans 109 85 29%

Equity Linked Savings Scheme 53 43 22%

Floating Rate 39 27 45%

Arbitrage Funds 38 29 31%

The total AUM of mutual fund industry stood at ~Rs 16lakh crore in Dec-16 compared to Rs 12.8 lakh crore in Dec-15.

Income funds and Ultra short term funds have seensplendid growth in their AUMs in last one year. Equitybalanced funds have also seen impressive growth of 47%as more and more investors are getting aware of its taxbenefits and moderate risks.

Equity Mutual Funds have given enormous returns in lastone year, thanks to the bounce back of equity market inJanuary 2017. On an average, Equity Mutual Funds havegiven returns of ~26% in past one year. Whereas,Balanced Funds have given a return of ~20% in last oneyear.

Gilt fund and long-term debt funds continue to give goodreturns boosted by higher modified duration. The debtmutual funds will continue to give positive return in 2017,but the return will be modest as the yields has beencontracted.

The year 2017 will be a good year to start investing inequity mutual funds for long term as the market, boostedby budget 2017-18, has rebounded and heading to makenew highs.

AUM (Type wise)

AUM (Category wise)

Snapshot of Mutual Fund Industry

Source: Ace MF

Source: Ace MF

12

Equity mutual funds category returns

Category 1 M (%) 3 M (%) 6 M (%) 1 Y (%) 3 Y (%) 5 Y (%)Liquid funds 0.5 1.6 3.3 7.3 8.1 8.5Ultra-short term funds 0.6 2.0 4.0 8.7 8.6 8.7Short-term funds 0.7 2.3 4.8 10.4 9.5 9.2Medium-term Funds 0.7 2.7 5.5 11.6 10.3 9.6Long-term funds 0.5 2.8 5.8 13.1 10.6 9.3Gilt Funds 0.4 3.5 6.9 16.2 12.1 9.8MIP 1.9 2.5 5.3 14.6 12.6 10.5Crisil Liquid Fund Index 0.5 1.6 3.4 7.5 8.2 8.4Crisil Composite Bond Fund 0.7 3.2 6.6 14.1 12.1 9.7

Debt mutual funds category returns

Category-wise Return of Mutual Funds

Category 1 M (%) 3 M (%) 6 M (%) 1 Y (%) 3 Y (%) 5 Y (%)Balanced - Equity-Oriented 5.2 2.2 5.2 20.6 19.0 14.9ELSS 7.5 1.9 5.2 23.4 22.3 16.4Large-cap 7.4 2.6 4.3 22.3 18.2 13.2Mid-cap 8.5 1.6 8.1 27.1 30.2 22.4Multi-cap 7.8 2.7 6.7 26.6 24.6 17.3Small-cap 7.0 1.4 9.4 28.6 34.9 25.0S&P BSE SENSEX 6.0 3.0 2.0 16.5 11.8 9.9S&P BSE Mid-Cap 8.9 2.1 6.8 30.7 28.5 17.0S&P BSE Small-Cap 9.0 1.9 11.1 27.5 29.1 14.9


Disclosure

• Mutual Fund investments are subject to market risks, read all scheme related documents carefully.• Nothing in this document constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to the investor's specific

circumstances. The details included are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed.

• Investors should consult their financial advisers if in doubt about whether the product is suitable for them. The fund may or may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs. This document may not be taken in substitution for the exercise of independent judgment by any investor. The investor should independently evaluate the investment risks.

• India Infoline Ltd. or any of its director/s or principal officer/employees and associate companies (IIFL) does not assure/give guarantee for accuracy of any of the facts/interpretations in this document, and shall not be liable to any person including the beneficiary for any claim or demand for damages or otherwise in relation to this opinion or its contents.

• The aimed returns mentioned anywhere in this document are purely indicative and are not promised or guaranteed in any manner. Returns are dependent on prevalent market factors, liquidity and credit conditions. Instrument returns depicted are in the current context and may be significantly different in the future.

• The group company of India Infoline Limited, IIFL Wealth Management Limited is the Sponsor of IIFL Mutual Fund and holding company of the Investment Manager & Trustee Company of IIFL Mutual Fund.

• IIFL or its subsidiaries & affiliates may be holding all or any of the units of the scheme(s), referred in the document. The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of IIFL. While due care has been taken in preparing this document, IIFL and its affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance thereon.

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Mutual Funds Report – Feb 2017 - India Infolinecontent.indiainfoline.com/wc/research/researchreports/...Mutual Funds Report – Feb 2017 2 Table of Content Page no. Mutual Funds