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Tabula Rasa 1

RBI Third Bi-Monthly Monetary Policy 2018-19 2

India: Macro 3

Global: Macro 5

India: Fixed Income 7

India: Equity Market 8

INOM – IndiaNivesh Optimisation Model 9

Scheme Recommendations

a. Money Market – Liquid Funds 10

b. Debt – UST & Low Duration Funds 11

c. Debt – Short Term Funds 12

d. Debt – Credit Risk Fund 13

e. Debt – Gilt Funds 14

f. Equity – Large Cap Funds 15

g. Equity – Large & Mid Cap 16

h. Equity – Multi Cap Funds 17

i. Equity – Mid Cap Funds 18

j. Equity – Small Cap Funds 19

k. Equity – Value & Contra Funds 20

l. Equity Linked Savings Schemes 21

m. Aggressive Hybrid Fund 22

IndiaNivesh Model Portfolios 23

Global Economic Variables 24

Contents

Global financial markets are going through a rough patch for the past few months largely due to the protectionist policies being adopted by the US and retaliatory actions taken by its trade partners. For much of the recent past it has been directed towards China, which has been a large trade partner to it. Both the countries have raised the import tariffs in a series of retaliatory actions with Chinese currency being at the receiving end, losing nearly 9% of its value to the US dollar in the past 6 months. In fact all the emerging currencies have been affected due to rising risks of trade war and escalating geo-political tensions. Emerging currencies have been hit hard with US dollar being the biggest beneficiary in the upheaval. Inherently, the US dollar has been appreciating over the past one year on the back of sturdy economic growth and Fed carrying on the path of balance sheet unwinding along with calculated rate hikes.

In the recent pick, it is Turkey, which has been in news due to its faltering economy and currency crises. Turkish economy has been in crises for some time due to unsustainably high and maturing external debt, massive current account deficit and insufficient forex reserves. Add to it, the sanctions and tariffs from the US, making the country more vulnerable. Lira, the currency of Turkey, has depreciated by nearly 65% since last year. In the aftermath of this currency contagion, like other emerging currencies, Indian rupee too came under pressure and depreciated to all-time lows of Rs. 70 to a dollar. However, when we look at the basket of currencies, INR has been relatively more resilient than some of the other currencies that have wilted due to global tariff risks or due to their domestic economic status. Nevertheless, India does have a disadvantage when it comes to depreciating rupee and rising oil prices as both these factors dent the largest component of our import basket and thereby impacting our fiscal deficit. Depreciating currency raises the risk of high imported inflation and therefore the investment outlook of the fixed income avenues. It also impacts the input costs for companies which are dependent on imports and adversely affect companies with foreign currency obligations. Hence the recent geo-political and financial market developments may call for reassessment of portfolio allocation for a short while.

India nevertheless has maintained a solid pace of economic growth, one of the fastest within the large economies. The recent FDI announcements in online retailing and mobile manufacturing in India further strengthens expectations of continued investment interest from global players. A strong chest of forex reserves available to fend off unwarranted currency slides along with being the biggest consumer for the world also bodes well for the economy. The recent upheaval in emerging markets in fact exposes the economic fault lines in some countries and hence would place India in an advantageous position as far as capital flows are concerned.

1

Sanket DesaiHead – Research & Advisory (Wealth Management)

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The RBI decided to hike the policy (repo) rate by 25bps to 6.5%. Thus, the reverse repo rate and the MSF rate stand revised at 6.25% and 6.75% respectively. The street expectations were mostly aligned towards a rate hike in August policy. The consensus also remained that the policy stance would be maintained as “Neutral”. Even as the global growth outlook faltered, except for US, the stickiness in inflation numbers tilted the MPC’s decision in favor of raising the policy rates. The domestic growth outlook remaining mostly resilient was another factor that supported the policy move. The lag with which the policy movement percolate in the broader economy, may also have prompted the MPC to tweak the policy rates in consecutive policy meetings.

The RBI’s commitment towards achieving the medium-term target of 4% indicates that the “Neutral” stance may not be necessarily construed as a pause in policy rates. If the inflation rate continues to be sticky or inch further

upwards there may be one more rate hike in the pipeline before the close of the calendar year.

On Inflation:

?Even as the projection of CPI inflation for Q2 FY19 has been revised marginally downwards, the H2 projection has been maintained in the range of 4.7% to 4.8%.

The stickiness of CPI inflation has now started feeding into the household inflationary expectations. As per the policy note, household inflationary expectations have witnessed an uptick of 20bps for both 3 month as well as 1 year horizons. The key risks to inflation as highlighted by the RBI are 1) crude oil prices, 2) volatility in global financial markets, 3) household inflation expectations, 4) hardening input price pressures, 5) monsoons, 6) fiscal slippage, 7) uncertainty around full impact of MSP and 8) staggered impact of HRA revision.

2

The RBI until now was mostly focused on the impact on inflation of food and fuel prices, but in the latest policy note it has highlighted the growing risks of inflation remaining sticky even if oil prices were to remain stable. As mentioned by the RBI “the output gap has virtually closed” and if the fiscal pressures were to crowd out private investment, the input cost pressures could soon start reflecting in the consumer prices. With that context, RBI seems to be taking the view of effecting limited hikes now rather changing stance later and make aggressive rate hikes that can adversely impact growth rates.

On Growth:

?GDP growth for 2018-19 is retained at 7.4%. GDP growth is projected in the range of 7.5%-7.6% in H1 and 7.3%-7.4% in H2.

?GDP growth for Q1:2019-20 is projected at 7.5%.

The RBI’s outlook on domestic growth continues to be sanguine, as was the case during the previous policy meeting as well. The weakness in global growth notwithstanding the domestic growth is expected to be robust. The factors supporting the RBI’s outlook are 1) progress of monsoon and the MSP hikes boosting rural demand, 2) robust corporate earnings and 3) increased FDI flows coupled with buoyant domestic capital markets supporting investment activity.

View:

In the wake of sustained high inflation numbers for the past few months, especially the core inflation, a hike in policy rate was widely expected. Moreover, strength in the underlying economic growth has also lent support to the decision of hiking the rate. The key reasons highlighted by the RBI while increasing the policy rates were high inflationary expectations, hardening input prices pressures, impact of MSP on inflation in the coming months, risk of uneven distribution of rainfall, HRA revisions impacting the general inflation, etc. All these risks have been quite imminent in the markets and have plagued the investment sentiments for quite some time. In fact the impact on the benchmark 10 Year Gsec has been extremely muted indicating that the stance was almost priced in. Going ahead, the focus will now move towards macro factors i.e. the risk of widening trade deficits, currency fluctuation and FII flows, etc. Liquidity management remains crucial given the current level remains in sustained mild deficit mode.

RBI Third Bi-Monthly Monetary Policy 2018-19

Source: Bloomberg

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Rev Repo Repo MSF

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reflected in current numbers. As the government procurement starts the food based inflation can move upwards.

Our View:

As discussed above, even as the headline inflation numbers have eased, it may not indicate a change in trend. The risks to inflation as highlighted by the RBI continue to persist and thus the central bank cannot be expected to go soft on its primary target of inflation control. The risk from external factors has exacerbated recently and has led to depreciation of INR. A depreciating currency can adversely impact the economy by worsening current account deficit and higher inflationary pressures. The lead indicators of economic growth have shown resilient growth and hint towards improving domestic demand. Thus we expect RBI to remain on guard and the domestic debt yields could be volatile, especially at the longer end.

Index of Industrial Production

The IIP growth recovered sharply from the recent low registered in the month of May’18. The IIP growth for Jun’18 was reported at 7% as compared to an upwardly revised growth of 3.9% for May’18 and -0.3% during the year ago period (Jun’17). The IIP had de-grown during the year ago period as destocking activity ahead of the GST implementation had kept the industrial production subdued. Low base was a major supporting factor, leading to a rebound in growth rates. The investment activity too remained healthy, as was indicated by growth in Use Based categories. All the three sectors of Mining, Manufacturing and Electricity grew at healthy growth rates during the month of June, thereby supporting the headline numbers.

The manufacturing growth for Jun’18 was reported at 6.9% as compared to 3.7% in the preceding month and de-growth of 0.7% registered in Jun’17. The count of industries contributing positively improved during the month of June, out of the twenty three industry groups nineteen registered expansion in activity.

Mining activity growth was reported at 6.6% for the month of Jun’18 as compared to 5.8% in the preceding month. As was discussed during the previous month, not so supportive base effect coupled with monsoons can lead to growth slowing in the near term. Electricity sector growth too remained healthy and reported sequential improvement. Growth for the sector was reported at 8.5% for Jun’18 as compared to 4.2% in the preceding month.

CPI based inflation moderated in the month of Jul’18 to 4.17% as compared to 4.9% in the month of Jun’18 and 2.36% in corresponding period previous year. The Bloomberg estimate for the July inflation number was at 4.49%. The inflation numbers have eased after rising sequentially for the last three consecutive months. The fall in headline inflation was mainly on the back of cooling Food & Beverages inflation. F&B inflation eased to 1.73% in Jul’18 as against 3.11% in Jun’18. Consumer Food Price Index too eased on similar lines. Pan, Tobacco & Intoxicants (6.34%) and Clothing & Footwear (5.28%) were other components to witness inflationary pressures receding marginally in the month of July.

Housing was one of the components which saw inflation remaining sticky at elevated levels. The house rent inflation was reported at 8.3% for Jul’18 as against 8.45%

in the preceding month. Fuel inflation maintained its upward trend with growth of 7.96% in Jul’18 as compared to 7.22% for Jun’18. The core inflation came in at 6.29% in Jul’18 as against 6.39% in Jun’18. Notwithstanding the marginal easing, core inflation has remained consistently above the 6% mark. This indicates that inflationary pressures have not abated and the latest headline numbers may not necessarily hint at changing trend.

The headline inflation number has fallen but mostly on the back of volatile components. As witnessed from the past, food prices may remain volatile and may change trend quickly. The verdict on the current monsoon season is not yet out, and thus the impact of the same (whether negative or positive) on food prices cannot be determined at the current juncture. However, the flood situation in Kerala, the Rice bowl of India, remains worrisome and may impact the rice production and prices. The effect of MSP hikes done recently too is not

India: MacroInflation

Source: Mospi

4.17

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

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r/1

5

Jul/

15

Oct

/15

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/16

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6

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CPI

4

Growth rates for all the Use Based categories improved in the month of June as compared to the ones reported in the preceding month. Primary Goods growth was reported at 9.3% for Jun’18, a marked improvement from the growth rate of 5.7% clocked in the month of May’18. Capital Goods growth came in at 9.6% in the month of Jun’18 as compared to 6.9% in May’18. Intermediate Goods growth was reported at 2.4% for Jun’18, as against the growth rate of 0.8% in May’18. Consumer Durables production grew at a healthy rate of 13.1% in Jun’18 as compared to 6.4% in the month of May’18.

Our view:

Given the subdued growth rates post the implementation of GST, the headline numbers can find further support over the near term from base effect. The uptick in investment demand indicates that fears of deterioration in government spending remain largely unfounded at the current juncture.

Though the industrial production data bodes well for the

economic growth outlook, it can be negative from the interest perspective over the near to medium term. The current set of numbers further validates the RBI’s prognosis that the domestic growth is resilient and the output gap has virtually closed.

India PMI

Manufacturing PMI remained in the expansionary zone for the 12th consecutive month. The pace of expansion in the month of July eased as compared to the preceding month. The PMI index for the month of July was reported at 52.3, as compared to the level of 53.1 for the month of June. A reading above 50 indicates expansion. The softer pace of PMI expansion was reflective of slower rises in output, new orders and employment. The input cost inflation, though easing marginally, continued to inch upwards in the month of July as well. The current streak of sequential in rise input cost pressures have now

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extended to 34 months. The rise in input costs was mainly attributed to price rise of steel and crude oil. As indicated by the PMI report, the transmission of price rise happened at a modest pace.

Even as the pace of expansion was slower, it was the second strongest in the current calendar year. New business and export orders rose for the 9th consecutive month. As new orders grew, staffing levels improved as well. The jobs growth was mostly seen in intermediate and investment goods. The projections too remained robust, with the participants expecting output to expand over the next 12 months. Improvements in demand, promotional activities and expansion plans were the main factors behind confidence in future growth.

Our View:

The PMI index dropped as compared to the previous reading, but the overall assessment of the manufacturing sector remained strong. The PMI report indicated that the demand remained strong from both domestic as well as international customers. Another positive coming out of the report was that input cost inflation eased as compared to the four year high touched in the month of July.

The continued strength in the PMI data hints towards a sanguine outlook for economic growth. The production activity for intermediate and investment goods was healthy, with these being the key groups where jobs growth was seen. The demand is expected to further improve and with producers looking at expansion plans signals advent of structural strength in economic growth. The key risk from macroeconomic perspective is inflation. Rising inflation can lead to interest rates moving further up, on the back of RBI’s policy action, which can potentially upset the growth momentum.

Source: Bloomberg

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r-1

6

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16

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-16

No

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6

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7

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Nikkei India Manufacturing PMI

Source: Bloomberg, IndiaNivesh Research

5

Global bond yields

Global: Macro



DateUS 10 Yr

Yield (%)

UK 10 Yr

Yield (%)

JP 10 Yr

Yield (%)

Germany 10

Yr Yield (%)

India 10 Yr

Yield (%)

2.866

2.960

2.949

2.860

16-Aug-18

31-Jul-18

24-Jul-18

17-Jul-18

1.240

1.330

1.276

1.258

0.102

0.062

0.086

0.043

0.320

0.443

0.397

0.346

7.861

7.773

7.783

7.745

assets. The latest trigger had been the currency turmoil in Turkey. The contagion effect led to sharp depreciation in emerging market currencies. The resultant demand for developed market debt led to softening of yields. We expect the current to continue and thus developed market yields can remain range bound with a softening bias over the near term. The on-going trade spat between US and China is another factor that can worsen the growth outlook and keep any upward movement in yields capped.

Crude Oil

The oil prices remained volatile, but overall maintained a downward trend during the month gone by. The concerns regarding global growth outlook and the doubts regarding sustenance of strong demand on the back of growing trade tensions led to crude oil prices moving downwards. The brent crude prices average around $74 per barrel during the month of July and subsequently fell to $71 per barrel in the month of August.

The receding supply concern was another factor that led to slide in crude prices. The increase in Saudi Arabia and Russian production, coupled with surge in US exports pushed the prices lower during the previous month. The resumption in oil supply from Libya is another factor that kept the prices in check. The US sanctions on Iran and Venezuela were weighing on supply outlook, but with new supply coming up those fears are largely rested in the near term.

trend

The global bond yields remained volatile over the past two months. The developed market bond yields hardened during the second half of July and subsequently reversed the trend in the month of August. A slew of global central banks’ monetary policies being lined up during the period was the major factor influencing the bond yield movements.

The first up was European Central Bank, where it maintained status quo on the rate front (which was largely expected). The announcement was largely devoid of any new information regarding when does it see interest rates moving up. The ECB meeting was followed by policy announcements of two key global central banks, US Fed and Bank of Japan. The US maintained status quo on the rate front, but expressed its confidence with regards to the state of the economy. The policy announcement largely indicated that US Fed would continue to hike rates as per the outlined trajectory. The BoJ was expected to move on the policy front and make a move or provide a time line towards withdrawal of stimulus. As against the expectations, the BOJ maintained status quo in its policy. The Bank of England raised the policy rate from 0.5% to 0.75%, its second rate hike in the current cycle. The improvement in growth outlook was cited as the major reason behind the rate hike. Unlike US Fed, the rate hike cycle of England is expected to be more gradual as growth rates can get impacted as it goes through a possibly disruptive BREXIT.

Outlook

The volatility in global bond yields is expected to continue in the near term. Apart from the guidance of global central banks the yields also take cues from the sentiment towards risk assets.

Even though the long term outlook remains that of rising interest rates, as developed markets central banks look to withdraw the stimuluses’ which were initiated during the previous down cycle, the near term movement can be on the down side. The risk sentiment is precipitously placed and any trigger can lead to money moving into safe haven

Outlook

In the absence of severe geopolitical flare-up the prices of oil, as for any other commodity, are dictated by the demand-supply outlook. The major reason behind sharp run-up in oil prices since mid-2017 was OPEC nations’ decision to cut supply coinciding with rising demand.

As supply concerns gradually receded with OPEC nations agreeing to increase production and growth outlook

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WTI Crude Oil ($/bbl)

6

While the outlook for emerging market currencies remains bearish over the near term, the INR can be expected to move in the other direction. The contagion of weak macroeconomic fundamentals has led to a basket selling in emerging markets, if the focus towards quality returns, INR can stand to benefit. Resilient growth and a vigilant RBI actively targeting inflation should help the currency reverse some of the recent weakness.

Gold

The gold prices continued their slide downwards for the fourth month in a row. The headwinds impacting the shining asset have not changed over the month. It continues to reel under the pressure of appreciating USD and rising interest rates. Further, the demand for the shining asset too remains weak. The investment as well as jewellery demand has remained lackluster.

A strong economic growth has been supportive for gold prices as jewellery demand improves; but that has not been the case in the recent past. As highlighted by the World Gold Council report, the growth has improved but it has remained uneven across geographies. The growth remains strong in India and US, it has slowed down in China and Euro region.

Outlook

Our outlook for gold remains weak as there are no immediate triggers for the USD to lose its strength against other major currencies. Whilst the currency may not maintain its position of strength permanently and may witness some technical pullback, it does not change the fundamental view on gold. The change in investment patterns in one of the biggest consumers of gold, India, too does not bode well for the outlook. The channelling of investments in financial assets can lead to subdued demand of gold for an extended period of time.

Thus, investors would be recommended to avoid investments in gold in the near term and any money earmarked for gold investments can wait at the sidelines.

marginally worsened, the oil prices plateaued and then corrected gradually. The sharp gain in oil prices also helped in bringing alternate sources on stream. The US oil rig count has continuously improved over the last two years; the resultant slowdown in US reserve draw down has also helped in restricting the price gains. Going ahead we expect oil prices to remain in a narrow range, keeping the geopolitical environment constant, as further sharp upmoves can disrupt the demand outlook and that may not be a desirable situation for oil producers.

Currency markets

The streak of USD maintaining its position of strength has now extended to four months. The USD continued to grow in strength against developed as well as emerging market currencies, with the exception of Japan. The highest interest rates amongst the developed economies and one of the few to have witnessed sustained economic growth have led to USD gaining in strength against its peers. The other developed economies are also gaining in strength but the outlook still remains muddled with their respective central banks still relying on monetary stimulus. The UK has its Brexit hurdles whereas Euro Area is constantly under the threat of financial turmoil owing to some of its member nations being over burdened with debt.

The emerging market currencies were showing early signs of stabilising, but the sharp movement in Turkish lira recently brought back the emerging market concerns of high inflation and CAD problems under focus. The resumption of capital outflows from emerging market assets resulted in these currencies deprecating against the USD. The INR too was not spared from the currency rout and breached the 70 mark against the USD on a closing basis (its worst closing yet).

Outlook

Based on the factors discussed above the USD has been able to maintain its position of strength in the recent past. Over the near term we expect USD to maintain its position of strength as we do not expect any of the factors mentioned above to change in a hurry. Other major economies are expected to go slow on the normal is ation of monetary policy front and emerging markets currencies grapple with capital outflows. Strong economic outlook and a central bank in tightening mode should continue to support USD.

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13351303

1280

1238

1201

1000

1050

1100

1150

1200

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1300

1350

May

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Jul-

16

Sep

-16

No

v-1

6

Jan

-17

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Gold ($/Ounce)


Date GBP/USD USD/JPY EUR/USD USD/INR USD/CNY

Source:Bloomberg, IndiaNivesh Research

16-Aug-18

31-Jul-18

24-Jul-18

17-Jul-18

1.272

1.312

1.315

1.312

110.900

111.860

111.200

112.880

70.158

68.548

68.946

68.460

6.885

6.817

6.793

6.707

1.138

1.169

1.169

1.166

7

India: Fixed IncomeEven as the global commodity prices remained range bound with an easing bias, the domestic yields reversed the trend and inched upwards in the month of August. The currency movement re-ignited the inflationary concerns. The sharp slide in INR against the USD was seen as largely nullifying the positive impact of falling commodity prices. The slide in INR was further exacerbated by the contagion effect of turmoil in Turkey. The macroeconomic coupled with geopolitical risks led to sharp fall in Turkish lira and took along with it other emerging market currencies.

View:

The oil prices continue to be the primary in fluencer of domestic debt yields, but India cannot remain shielded from the contagion of worsening fundamentals in other emerging markets. The recent movement in domestic

debt and currency markets in the wake of Turkish turmoil was the latest example of the same. While stable to falling oil prices are positive for Indian debt markets, the focus is gradually shifting towards domestic inflationary pressures. The lead indicators of growth have remained strong and are now pointing towards gradual improvement in demand conditions. If the demand conditions were to improve, it can lead to swift pass through of high costs into consumer prices and as indicated by RBI the output gap is also not in favor of containing demand led price pressures.

With back to back policy rate hikes to contain inflation, the RBI can be expected to take a longish pause if the headline inflation moves along the expected trajectory. But this may not necessarily translate into downward trending or stable yield scenario. The yields can continue to remain volatile, especially at the longer end of the curve. Thus investors would be recommended to refrain from making investments at the longer end of the curve. The product categories that can be considered for investments based on investment horizon and risk appetite are Short Term Funds and Credit Risk Funds.

The domestic debt yields eased during the month of July. The global commodity price, especially crude oil, trending downwards was one of the major positives for the debt markets. The brent crude prices fell from $78 per barrel to $73 per barrel during the month, a fall of 7%. The oil prices have been the major in fluencer of inflation and inflationary expectations. The correction in oil prices came as a major respite. The benchmark 10yr government security yield eased from 7.9% to 7.77%, a healthy movement of more than 12bps.

The FIIs returning to Indian shores after a gap of five months was another positive. The FIIs have been continuously offloading Indian debt from the month of February. Even though the net inflow amount was not substantial; the signs of FIIs viewing Indian economy in a positive light as compared to other emerging markets

were a sentiment booster. The net FII investment amount for the month of July was Rs. 718 crores.

The shorter end of the curve on the other hand traded mixed during the month. The yields for some of the maturities, across various security types, saw yields hardening in the month of July. The longer end of the curve seems to have remained focused on the inflation trajectory whereas the shorter end was reacting more to the expected action in the monetary policy.

Even as the global commodity prices were trending down, the market expectations remained skewed towards RBI effecting rate hikes. The domestic inflation as well as inflationary expectations running at high rates and the RBI’s target of bringing the same down close to 4% level on a sustainable basis was the key reason market expected a rate hike. The RBI moved on expected lines and raised the policy rates by 25bps, but maintained the policy stance as neutral. The resilient domestic economic growth and upside risks to inflation were the key tenets on which policy action was based.


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n-1

6Ju

l-1

6A

ug

-16

Sep

-16

Oct

-16

No

v-1

6D

ec-

16

Jan

-17

Feb

-17

Ma

r-1

7A

pr-

17

May

-17

Jun

-17

Jul-

17

Au

g-1

7Se

p-1

7O

ct-1

7N

ov-

17

De

c-1

7Ja

n-1

8Fe

b-1

8M

ar-

18

Ap

r-1

8M

ay-1

8Ju

n-1

8Ju

l-1

8A

ug

-18

Net Liquidity [Rs Crores]


6.0

6.5

7.0

7.5

8.0

8.5

Feb

-15

Ma

r-1

5A

pr-

15

May

-15

Jun

-15

Jul-

15

Au

g-1

5Se

p-1

5O

ct-1

5N

ov-

15

De

c-1

5Ja

n-1

6Fe

b-1

6M

ar-

16

Ap

r-1

6M

ay-1

6Ju

n-1

6Ju

l-1

6A

ug

-16

Sep

-16

Oct

-16

No

v-1

6D

ec-

16

Jan

-17

Feb

-17

Ma

r-1

7A

pr-

17

May

-17

Jun

-17

Jul-

17

Au

g-1

7Se

p-1

7O

ct-1

7N

ov-

17

De

c-1

7Ja

n-1

8Fe

b-1

8M

ar-

18

Ap

r-1

8M

ay-1

8Ju

n-1

8Ju

l-1

8

10 Yr Benchmark Yield [%]

8

India: Equity MarketEquity markets surged in the month of July led by healthy gains in large caps. Post the broad based correction seen since the start of the year; large caps have been the apple of the investors' eye and have not only remained resilient but have also led the bounce back. The key benchmark indices, Nifty and Sensex, have been continuously making all time highs. The high valuations in mid and small cap space saw investors moving towards relative safety of large caps. The sharp slide in global commodities was one of the key positives that led to waning concerns with regards to fiscal as well as current account deficit. Within the commodities basket, correction in oil prices had an outsized impact.

Post the basket selling witnessed by emerging markets, the focus shifting towards quality remained supportive of Indian markets. After remaining net sellers for the three

consecutive months, FIIs turned net buyers in the month of July. The net amount invested by FIIs was the tune of Rs. 1400 crores. Similar to what has been witnessed in debt markets, the net amount invested is miniscule as compared to historical standards. The change of investor sentiment towards India is pivotal at the current juncture. The trend of financialisation of domestic savings continued and domestic investors remained bullish on India growth story. The MF industry was net investor to the tune of Rs. 4K crores, taking the net tally for the year 2018 to Rs. 74K crores. The confidence of domestic investors has been the key support of equities. Thus, Indian equities have weathered the rout in emerging markets in a resilient fashion.

The Sensex and Nifty reported gains of 6.2% and 6% respectively for the month of July. The Mid and Small cap indices were not able to match the performance of large caps, but were not left too far behind as well; the said indices were up by 3.83% and 4% for the month. The sectoral performances too remained broad based; most of the sectors under purview reported monthly gains with the exception of Metals. FMCG, IT and Banking were the best performing sectors for the month.

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

3,94

0

2,48

8

- -

1,92

3

19,1

80

-4,7

47

12,9

84

-12,

491

13,1

14

-6,2

10

-9,6

60

- 2,5

77

1429

9,10

6 11,8

00

17,9

41

17,4

57

9,06

7 12,0

80

8,33

3

9,02

3

16,1

81

9,25

6

11,2

93

13,6

19

9,23

1

3995

11,1

08

10,7

59

Jun-

17

Jul-1

7

Aug

-17

Sep-

17

Oct

-17

Nov

-17

Dec

-17

Jan-

18

Feb-

18

Mar

-18

Apr

-18

May

-18

Jun-

18

Jul-1

8

FII & MF Flows (Rs crores)

FII MF


Though choppiness increased marginally in the month of August, the recent trend continued with equity markets trending upwards. The headline large cap indices were up by a percent in the month of August. The mid and small cap indices too moved higher. The global macroeconomic scenario continues to be fluid but the investors, at the current juncture, seems to be giving more weight age to individual countries growth dynamics. The trade war concerns and its impact on global economy, apparently, have taken a back seat at the current juncture. The US and Indian have been one of the best performing equity markets recently and these are also the ones with the most stable growth outlook. The ongoing earnings season too has been strong for both these nations.

Our View:

The risk aversion seems to have subsided globally and India has benefitted by attracting investments on the back of strong growth outlook and healthy macroeconomic fundamentals as compared to other emerging market peers. The positive momentum may continue in the near term leading to markets making new highs, but we believe it would serve investors well to be optimistically cautious. Even after strong earnings growth in Q1FY19, the valuations still border on being mostly expensive. Notwithstanding the drumbeat of strong economic growth played by the US, risks linger in the other parts of the global economy. The Turkish turmoil and the resultant slide in lira was the latest example. The INR had to bear the brunt, but surprisingly domestic equity markets came out largely unscathed. Although, we do not expect markets to correct meaningfully in the near term, but they can remain choppy (as witnessed in the month of August). We would recommend investors to invest in a staggered manner and benefit from the intermittent volatility.


0

10

20

30

40

50

60

Mid-Cap Nifty

Large Cap v/s Mid Cap PE Valuation Gap

10

Money Market - Liquid Funds

Recommended Funds

Returns < 1yr are annualised and returns more than 1yr are CAGR, as on 31st July 2018

Data Source: ACEMF

Risk-o-meter of the above recommended schemes is shown alongside

Liquid Liquid Liquid Liquid Liquid Liquid Liquid Liquid

Point to Point Returns

Benchmark Crisil Liquid Fund Index


Nil Nil Nil Nil Nil Nil Nil Nil

DevangShah

Hetal P. Shah

Kumaresh Ramakrishnan Kapil Punjabi

Rahul Goswami

Krishna Venkat

Cheemalapati

Shriram Ramanathan

Amit Somani

Scheme Name

Axis Liquid Fund

Baroda Pioneer

Liquid Fund

DHFL Pramerica Insta Cash

Fund

HSBC Cash Fund

ICICI Pru Liquid Fund

Invesco India Liquid

Fund

L&T Liquid Fund

Tata Liquid Fund

No Change No Change

DHFL Pramerica Insta Cash

Plus

No Change No Change No Change No Change No ChangeErstwhile

Name

Erstwhile Category

7.20

7.33

7.25

7.33

7.04

7.20

7.35

7.27

7.33

7.02

7.12

7.30

7.24

7.26

6.98

7.12

7.28

7.25

7.29

7.01

7.09

7.27

7.18

7.29

6.96

7.25

7.36

7.28

7.29

7.01

7.19

7.37

7.29

7.28

6.99

7.15

7.26

7.26

7.29

7.00

2 Weeks

1 Month

3 Months

6 Months

1 Year

2 Weeks

1 Month

3 Months

6 Months

1 Year

6.22

7.04

7.38

7.42

7.04

24,297

45

6.22

7.04

7.38

7.42

7.04

8,039

29

6.22

7.04

7.38

7.42

7.04

11,303

29

6.22

7.04

7.38

7.42

7.04

6,394

26

6.22

7.04

7.38

7.42

7.04

46,996

36

6.22

7.04

7.38

7.42

7.04

11,383

36

6.22

7.04

7.38

7.42

7.04

15,713

37

6.22

7.04

7.38

7.42

7.04

19,956

32

AUM in Crs.

Manager

Average Maturity (Days)

Exit Load

Fund

11

Debt - UST & Low Duration Funds

Recommended Funds


Data Source: ACEMF


*These schemes fall in the moderate profile as per the risk-o-meter. Please refer to Income Funds section to see the suitable risk-o-meter.

UST UST UST UST UST UST UST UST


Benchmark Crisil Liquid Fund Index


Nil Nil Nil Nil Nil Nil Nil Nil

Kaustubh Gupta

Kumaresh Ramakrishnan

Deepak Agrawal

Rajeev Radhakrishnan

Rahul Goswami

Deepak Agrawal

Rajeev Radhakrishnan

Akhil Mittal

No Change No Change No Change No Change Tata Ultra ST Fund

Erstwhile Name

Erstwhile Category

7.21

8.12

7.20

7.12

6.52

6.73

7.71

7.23

7.36

6.80

7.09

8.35

7.30

7.18

6.56

6.73

8.07

7.26

7.21

6.53

6.69

8.71

7.16

6.97

6.36

6.90

7.76

7.89

7.60

7.11

6.14

7.55

7.06

7.18

6.49

6.75

8.20

7.50

7.32

6.61

2 Weeks

1 Month

3 Months

6 Months

1 Year

2 Weeks

1 Month

3 Months

6 Months

1 Year

6.22

7.04

7.38

7.42

7.04

18,728

6.22

7.04

7.38

7.42

7.04

1,748

6.22

7.04

7.38

7.42

7.04

7,294

6.22

7.04

7.38

7.42

7.04

3,387

6.22

7.04

7.38

7.42

7.04

18,235

6.22

7.04

7.38

7.42

7.04

4,860

6.22

7.04

7.38

7.42

7.04

8,291

6.22

7.04

7.38

7.42

7.04

4,170AUM in Crs.

Manager

Average Maturity (Days)

Exit Load

Fund

UST Low Duration

Scheme Name

Aditya Birla SL Savings

Fund

DHFL Pramerica

Ultra ST

Kotak Savings

Fund

Magnum Ultra Short Duration

ICICI Pru Savings

Fund

Kotak Low Duration

Fund

Magnum Low

Duration

Tata Treasury

Advantage Fund

SBI SBI

ICICI Pru Flexible

Income Plan

SBI Ultra Short Term Debt Fund

No Change

172 157 164 95 251 365 219 256

12

Debt - Short Term Funds

Scheme NameAxis Short Term Fund

DHFL Pramerica

Short Maturity Fund

HDFC Short Term Debt Fund

ICICI Pru Short Term Plan

SBI Short Term Debt Fund

UTI ST Income Fund-Inst

Erstwhile Name

No Change No Change

HDFC Short Term

Opportunities Fund

No Change No Change No Change

Erstwhile Short Term Short Term Short Term Short Term Short Term Short Term

AUM in Crs.

Average Maturity (Years)

1.80 1.41 1.37 1.54 1.62 1.37

Exit Load Nil0.50% on or

before 6M, Nil after 6M

Nil0.25% on or

before 7D, Nil after 7D

Nil Nil

Fund Manager Devang Shah Puneet Pal Anil Bamboli Manish BanthiaRajeev

RadhakrishnanSudhir Agarwal


Data Source: ACEMF


*These schemes fall in the moderate profile as per the risk-o-meter. Please refer to Income Funds section to see the suitable risk-o-meter.

Recommended Funds

Category

1 Month

3 Months

6 Months

1 Year

3 Years

5 Years

9.52

6.07

5.44

4.70

7.28

8.31

9.92

6.33

5.74

4.69

7.46

8.54

5,171

9.22

5.28

4.97

4.53

7.63

8.58

9.92

6.33

5.74

4.69

7.46

8.54

1,554

10.13

6.68

6.30

5.60

7.57

8.75

9.92

6.33

5.74

4.69

7.46

8.54

10,502

9.12

5.72

4.88

3.97

7.69

8.70

9.92

6.33

5.74

4.69

7.46

8.54

8,155

9.62

5.41

5.01

4.33

7.26

8.20

9.92

6.33

5.74

4.69

7.46

8.54

6,818

9.32

6.26

5.53

4.62

7.63

8.67

9.92

6.33

5.74

4.69

7.46

8.54

9,961

1 Month

3 Months

6 Months

1 Year

3 Years

5 Years


Benchmark Crisil Short Term Bond Fund Index


13

Debt - Credit Risk Funds


Recommended Funds

Scheme Name

Erstwhile Name

Erstwhile Category

Benchmark


AUM in Crs.


Exit Load

Fund Manager

1 Month

3 Months

6 Months

1 Year

3 Years

5 Years

1 Month

3 Months

6 Months

1 Year

3 Years

5 Years

10.22

7.67

6.95

5.71

8.69

-

12.08

7.68

6.92

6.47

8.22

9.53

13.42

5.87

3.39

1.48

7.52

8.81

7,869

13.42

5.87

3.39

1.48

7.52

8.81

7,100

9.04

7.33

6.63

5.55

7.77

8.98

10.05

6.52

5.84

5.31

8.05

9.05

11.10

6.94

5.75

5.32

7.87

8.86

1.90 2.35 1.78 2.29 2.27

13.42

5.87

3.39

1.48

7.52

8.81

11,147

13.42

5.87

3.39

1.48

7.52

8.81

5,286

13.42

5.87

3.39

1.48

7.52

8.81

10,912

Nil upto 15% of

units,1% in excess

of limit on or

before 365D and

Nil after 365D

Nil upto 10% of

units, For remaining

units - 3% on or

before 12M, 2%

after 12M but on or

before 24M, 1%

after 24M but on or

before 36M,

Nil after 36M

Nil upto 10%

of units and 1%

on remaining units

on or before

1Y, Nil after 1Y

Nil for 10% of

investment and 1%

for remaining

Investment

on or before

1Y, Nil after 1Y

Nil for 10% of

units and 1%

for remaining

units on or

before 12M,

Nil after 12M

Maneesh Dangi Santosh Kamath Manish Banthia Deepak Agrawal Prashant Pimple


Crisil Composite Bond Fund Index

Aditya Birla SL Credit Risk Fund

Franklin India Credit Risk Fund

ICICI Pru Credit Risk Fund

Kotak Credit Risk Fund

Reliance Credit Risk Fund

Aditya Birla SL Corp Bond Fund

Franklin India Corporate Bond Opportunities

ICICI Prudential Regular Savings

Fund

Kotak Income Opportunities

Fund

Reliance Reg Savings Fund-Debt

Option

Accrual Accrual Accrual Accrual Accrual

Returns < 1yr are absolute and returns more than 1yr are CAGR, as on 31st July 2018

Data Source: ACEMF

14

Debt - Gilt Funds

Recommended Funds

9.82

4.65

3.10

-0.42

7.15

8.61

11.84

5.76

4.16

1.40

7.75

9.12

1,528

11.84

5.76

4.16

1.40

7.75

9.12

972

11.84

5.76

4.16

1.40

7.75

9.12

2,056

11.84

5.76

4.16

1.40

7.75

9.12

505

1 Month

3 Months

6 Months

1 Year

3 Years

5 Years

1 Month

3 Months

6 Months

1 Year

3 Years

5 Years

12.55

6.45

5.49

0.45

8.29

9.37

10.97

4.70

3.38

-0.50

7.86

9.41

10.35

4.90

5.54

0.19

8.07

9.33

Scheme Name HDFC Gilt FundReliance Gilt

Securities FundSBI Magnum Gilt Fund UTI Gilt Fund

Erstwhile NameHDFC Gilt-Long Term

PlanNo Change SBI Magnum Gilt-LTP UTI Gilt Adv-LTP

Gilt Gilt Gilt GiltErstwhile Category


Benchmark


AUM in Crs.


Exit Load

Fund Manager Anil Bamboli Prashant Pimple Dinesh AhujaAmandeep Singh

Chopra

0.25% on or before

15D, Nil after 15DNilNilNil

I-BEX (I-Sec Sovereign Bond Index)

3.655.096.174.96

Debt - Gilt Funds



Data Source: ACEMF

15

Equity - Large Cap Funds

Recommended Funds

Returns < 1yr are absolute and returns more than 1yr are CAGR, as on 31st July 2018Data Source: ACEMF

3 Months6 Months

1 Year3 Years5 Years


8.6913.9814.38

29.2821.6517.27

10.8916.1815.06

9.1815.9415.83

1.95-0.696.08

10.0818.82

8.9711.8621.6312.8718.34

2.79-0.1910.1511.3018.52

1.79-2.268.19

10.2121.02

Scheme NameAditya Birla SL

Frontline Equity FundICICI Prudential Bluechip Fund

Large Cap Large CapLarge CapLarge Cap

Axis Bluechip FundReliance Large Cap

Fund

Reliance Top 200 FundAxis Equity FundNo Change

Scheme Point to Point Returns

ICICI Pru Focused Bluechip Equity Fund

Scheme SIP Returns

Benchmark Point to Point Returns

Benchmark NIFTY 50 - TRI NIFTY 50 - TRI NIFTY 100 - TRI S&P BSE 200 - TRI


3 Months6 Months


21.2018.4514.80

21.2018.4514.80

9.850.45

2568

18.3618.3515.46

14.891.02

18747

15.9118.0615.81

10.810.78

10898

6.454.03

14.2011.4216.03

6.454.03

14.2011.4216.03

5.033.11

13.1411.8817.16

3.692.12

12.5112.1518.05

Benchmark SIP Returns

AUM in Crs.

Exit Load

Fund Manager

Risk Ratios

Treynor

Information Ratio

Nil for 10% of investments and 1% for remaining investments on or

before 12M, Nil after 12M

Nil upto 10% of units on or before

12M, For remaining units 1% on or

before 12M and Nil after 12M

1% on or before 1Y, NIL after 1Y

1% on or before 1Y, Nil after 1Y

Mahesh Patil Shreyash Devalkar Sankaran Naren Shailesh Raj Bhan

15.530.43

21380

Erstwhile Name

Erstwhile Category

16

Equity - Large & Mid Cap

Recommended Funds

Scheme NameCanara Rob Emerg

Equities FundIDFC Core Equity

FundKotak Equity

Opportunities FundInvesco India

Growth Opp FundSundaram Large

and Mid Cap Fund

Invesco India Growth

IDFC Classic Equity Fund

Kotak Opportunities

Fund

Sundaram

Equity Multiplier

No ChangeErstwhile Name

Erstwhile Category


Mid Cap Large Cap Multi CapMulti Cap Multi Cap

3 Months

6 Months

1 Year

3 Years

5 Years

3 Months

6 Months

1 Year

3 Years

5 Years

0.84

0.10

9.84

14.51

33.48

3.69

2.12

12.51

12.15

18.05

-0.47

-2.61

7.35

12.27

17.15

3.69

2.12

12.51

12.15

18.05

0.50

1.82

13.65

11.90

20.70

1.37

0.55

12.20

12.98

20.26

1.48

-1.49

4.84

10.99

19.90

3.50

1.82

12.18

11.94

17.78

0.72

1.59

12.94

13.10

21.81

3.50

1.82

12.18

11.94

17.78

Treynor

Information Ratio

1 Year

3 Years

5 Years

7.63

19.40

24.31

5.91

16.21

15.24

13.82

18.77

17.42

5.98

14.79

16.05

12.57

18.29

18.04

1 Year

3 Years

5 Years

15.91

18.06

15.81

15.91

18.06

15.81

12.11

18.16

17.17

15.50

17.92

15.58

15.50

17.92

15.58

Scheme SIP Returns

S&P BSE 250 Large

MidCap 65:35

Index - TRI

NIFTY 200 - TRI NIFTY 200 - TRIS&P BSE 200 - TRI S&P BSE 200 - TRIBenchmark

AUM in Crs.

Exit Load

Fund Manager

13.83

1.17

3793



Risk Ratios

1% on or before

1Y, Nil after 1Y

1% on or before

365D

1% on or before

1Y, Nil after 1Y

1% on or before

1Y, Nil after 1Y

1% on or before

12M, Nil after 12M

Ravi Gopalakrishnan

Anoop Bhaskar Taher Badshah Harsha Upadhyaya S. Krishnakumar

18.44

1.02

2933

12.37

1.85

774

16.90

0.67

2560

14.58

1.33

407

Returns < 1yr are absolute and returns more than 1yr are CAGR, as on 31st July 2018Data Source: ACEMF

17

Equity - Multi Cap Funds

Recommended Funds


Data Source: ACEMF

Scheme Name

Erstwhile Name

Erstwhile Category


Scheme SIP Returns

Benchmark


S&P BSE 200 - TRI NIFTY 500 - TRI S&P BSE 500 - TRI NIFTY 200 - TRI S&P BSE 500 - TRI


Risk Ratios

AUM in Crs.

Exit Load

Fund Manager

3 Months

6 Months

1 Year

3 Years

5 Years

Treynor

Information Ratio

1 Year

3 Years

5 Years

1 Year

3 Years

5 Years

3 Months

6 Months

1 Year

3 Years

5 Years

1% on or before 365D, Nil

after 365D

1% on or before 1Y

1% on or before 18M, Nil after 18M


1% on or before 1Y,Nil after 1Y.

Anil ShahAnand

Radhakrishnan

George Heber Joseph

Harsha Upadhyaya

Anup Upadhyay

Franklin India Prima Plus Fund

Kotak Select Focus Fund

No Change No Change No Change

Multi Cap Multi Cap Multi CapLarge Cap

Aditya Birla SL Equity Fund

Franklin India Equity Fund

ICICI Pru Multicap Fund

Kotak Standard Multicap Fund

SBI Magnum Multicap Fund

-1.91

-2.41

4.91

12.64

24.09

0.11

-2.31

5.10

8.92

20.35

3.92

1.28

10.85

11.36

20.83

4.53

2.17

9.19

13.09

22.75

-0.09

-1.20

8.98

12.22

23.12

Large Cap

3.54

15.17

17.35

6.02

12.10

14.69

12.98

14.96

15.97

13.29

17.61

18.45

6.09

15.26

17.79

15.91

18.06

15.81

12.48

17.51

15.77

12.86

17.73

15.91

15.50

17.92

15.58

12.86

17.73

15.91

28.56

0.84

9749

12.15

0.08

11832

18.22

0.30

2888

17.34

0.85

21271

16.64

1.03

5850

3.69

2.12

12.51

12.15

18.05

2.20

0.38

11.06

12.09

18.46

3.69

2.12

12.51

12.15

18.05

3.50

1.82

12.18

11.94

17.78

3.69

2.12

12.51

12.15

18.05

18

Recommended FundsEquity - Mid Cap Funds

Recommended FundsEquity - Mid Cap Funds


Data Source: ACEMF

Scheme Name

Erstwhile Name

Erstwhile Category

3 Months6 Months


1 Year

3 Years

5 Years

3 Months6 Months


-3.15-4.045.83

11.9526.35

-5.54-5.688.23

14.9426.54

-5.24-3.545.94

12.8829.75

-6.64-8.613.06

12.5123.83

-5.06-5.134.81

15.1130.86

-6.64-8.613.06

12.5123.83

-7.82-6.571.66

10.8027.36

-5.49-7.245.00

13.6925.15

Benchmark Nifty Midcap 100 - TRI NIFTY MIDCAP 100 - TRI

NIFTY MIDCAP 100 - TRI

S&P BSEMidcap-TRI

Franklin India Prim Fund

Kotak Emerging EquityScheme

L&T Midcap Fund Sundaram Midcap Fund

No ChangeNo Change No ChangeSundaram Select

Midcap Fund

Mid Cap Mid CapMid CapMid Cap

Exit Load 1% on or before 1Y 1% on or before 12M1% on or before 1Y, Nil

after 1Y1% on or before 1Y, Nil

after 1Y

AUM in Crs.

Treynor

Information Ratio

0.76

13.54

18.52

-0.96

17.22

20.19

18.43

0.80

6617

-0.50

14.51

20.84

-4.43

13.67

17.42

19.79

0.94

3327

-1.94

18.12

22.67

-4.43

13.67

17.42

16.48

1.30

3066

-6.99

11.83

18.31

-4.00

14.44

18.27

19.61

0.84

6138



Risk Ratios

Scheme SIP Returns

1 Year

3 Years

5 Years

Fund Manager R. Janakiraman Pankaj Tibrewal Soumendra Nath Lahri S. Krishnakumar


19

Equity - Small Cap Funds

Recommended FundsEquity - Small Cap Funds


Data Source: ACEMF

Recommended Funds

Scheme Name

Erstwhile Name

Erstwhile Category

3 Months6 Months


1 Year

3 Years

5 Years

3 Months6 Months


-9.54-11.160.97

14.7727.63

-7.43-7.334.20

12.8229.94

-7.02-2.4517.2518.2224.58

-7.08-5.538.20

20.31-

-10.62-14.03-2.3410.6124.45

Benchmark Nifty Smallcap 100

- TRINifty Smallcap 250

- TRINIFTY SMALLCAP 100

- TRIS&P BSE Smallcap -

TRI

Aditya Birla SL Small Cap Fund

Franklin India Smaller Cos Fund

HDFC Small Cap Fund L&T Emerging Businesses Fund

No Change No Change No ChangeAditya Birla SL Small &

Midcap Fund

Mid & Small Mid & SmallMid & SmallMid & Small

Exit Load1% on or before 365D,

Nil after 365D 1% on or before 1Y1% on or before 1Y, Nil

after 1Y1% on or before 1Y, Nil

after 1Y

AUM in Crs.

Treynor

Information Ratio

-12.29

13.66

19.74

-14.84

11.91

15.33

19.19

1.22

2247

-6.85

12.52

19.57

-16.68

10.39

16.06

20.76

1.03

7295

4.94

22.63

21.92

-14.84

11.91

15.33

14.91

2.02

4578

-1.81

22.73

0.00

-9.65

14.79

18.26

17.99

1.70

5280



Risk Ratios

1 Year

3 Years

5 Years

Fund Manager Jayesh Gandhi R. Janakiraman Chirag Setalvad Soumendra Nath Lahri

-11.03-14.99-3.9610.0126.20

-10.62-14.03-2.3410.6124.45

-9.62-11.063.77

12.8026.80


Scheme SIP Returns

20

Recommended Funds


Data Source: ACEMF

Value & Contra Funds

3 Months6 Months


3 Months6 Months





Risk Ratios

AUM in Crs.

Exit Load

Fund Manager


Scheme Name

Erstwhile NameErstwhile Category

Scheme SIP Returns

Benchmark


-1.11-0.349.85

15.8527.46

0.20-2.3212.5913.1522.06

-3.81-6.103.53

12.6326.68

2.200.38

11.0612.0918.46

3.692.12

12.5112.1518.05

7.655.41

16.9711.6115.80

8.4817.6217.52

-0.4014.5719.55

7.2420.2121.07

12.4817.5115.77

15.9118.0615.81

25.6319.6015.06

13.291.613574

16.980.898160

27.201.344669

Treynor

Information Ratio

HDFC Capital Builder Value Fund

L&T India Value Fund Tata Equity P/E Fund



1% on or before 18M, Nil after 18M

Miten Lathia Venugopal Manghat Sonam Udasi

HDFC Capital Builder No Change No ChangeMulti Cap Multi Cap Multi Cap

Nifty 500 - TRI S&P BSE 200 - TRI S&P BSE Sensex - TRI

21

Recommended Funds

Note:


Data Source: ACEMF

No Change No Change No Change No Change No Change

Scheme NameAditya Birla SL Tax

Relief '96Axis LT Equity

FundDSPBR Tax Saver

FundL&T Tax Advt

FundReliance Tax Saver

(ELSS) Fund

Treynor

Information Ratio

0.710.84

12.9212.9624.05

-3.867.01

17.2012.8925.27

0.04-2.595.79

12.0021.75

-1.64-2.748.59

12.5920.48

-6.63-16.06-6.866.44

23.07

3.692.12

12.5112.1518.05

3.692.12

12.5112.1518.05

2.200.38

11.0612.0918.46

3.692.12

12.5112.1518.05

4.862.76

12.8411.8216.88

3 Months6 Months


3 Months6 Months


Benchmark S&P BSE 200 - TRI S&P BSE 200 - TRI NIFTY 500 - TRI S&P BSE 200 - TRI S&P BSE 100 - TRI

12.961.546569

10.860.76

18262

21.790.734577

15.061.333335

11.430.47

10083

ELSS

Erstwhile Name

ErstwhileCategory


ELSS ELSS ELSS ELSS

Ajay Garg Jinesh Gopani Rohit Singhania Ashwani KumarSoumendra Nath

Lahiri

AUM in Crs.

Risk Ratios

Fund Manager


Ø Investment done in ELSS qualifies for tax deduction under Section 80C of IT Act, 1961

Ø Investment upto Rs. 1.5 lakh are eligible for deductions from taxable income

Ø You can save upto Rs. 45,000 tax

Ø Dual benefit of Tax reduction and Tax-free Capital Gains

Ø ELSS has 3 years lock-in period

Equity Linked Saving Schemes

22

Aggressive Hybrid Fund

Recommended Funds

TreynorInformation

Ratio

Scheme NameABSL EquityHybrid '95

Fund

Canara Rob Equity Hybrid

Fund

ICICI Prudential Equity & Debt

Fund

L&T Hybrid Equity Fund

Reliance Equity Hybrid Fund

SBI Equity Hybrid Fund

Erstwhile NameAditya Birla SL Balanced '95

Fund

Canara Robeco Equity Debt

Allocation Fund

ICICI Pru Balanced Fund

L&T India Prudence Fund

Reliance Reg Savings Fund-Balanced Plan

SBI Magnum Balanced Fund

Erstwhile Category

Balanced Balanced Balanced Balanced Balanced Balanced

Nil upto 15% of units,1% in excess of limit on or before 365D and Nil

after 365D

Nil upto 10% of units on or before 1Y, 1% for more than

10% of units on or before 1Y, Nil

after 1Y

Nil on 10% of units within

1Y and 1% for more than 10% of units within 1Y, Nil after 1Y

Nil for 10% of investments and 1% for

remaining on or before 12M, Nil

after 12M

Nil for 10% of units and 1% for remaining units on or

before 1Y, Nil after 1Y

Nil for 10% of investments and 1% for remaining

investment on or before 12M,

Nil after 12M

Fund Manager Mahesh PatilRavi

Gopalakrishnan Sankaran NarenSoumendraNath Lahiri

Sanjay Parekh R. Srinivasan

Exit Load

3 Months6 Months


-0.35-0.954.189.87

18.22

2.612.768.659.52

18.19

2.942.088.71

10.7414.99

0.04-2.984.99

10.6218.81

2.942.088.71

10.7414.99

-0.74-0.635.159.93

19.19

2.942.088.71

10.7414.99

0.81-1.545.88

10.9119.09

2.942.088.71

10.7414.99

0.840.058.509.83

18.54

2.942.088.71

10.7414.99

3.2611.2313.46

10.9413.5114.33

2.8612.2313.94

5.1312.1014.39

5.7513.1414.59

7.4312.4213.95

2.942.088.71

10.7414.99


11.2713.7413.09

11.2713.7413.09

11.2713.7413.09

11.2713.7413.09

11.2713.7413.09

11.2713.7413.09


Scheme SIP Returns

8.86

0.27

14841

7.98

-0.11

1700

9.27

0.75

28633

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Benchmark Point to Point

Returns


Risk Ratios

3 Months6 Months



AUM in Crs.

Crisil Hybrid 35+65 - Aggressive Index

Aggressive Hybrid Fund


Data Source: ACEMF

Recommended Funds


23

Equity Risk Free Dept Long/Short Dept Alternative

Conservative Aggressive

I-Conserve I-Build I-Balance I-Grow I-Multiply

Risk Suitability

(A) Debt - Conservative

Fixed Deposits - Banks/Corporates

Bonds - PSU Bonds, Tax Free Bonds, etc.

Fixed Maturity Plans and Interval Funds

Liquid/Ultra Short Term/Arbitrage Funds

(B) Debt - Aggressive/Duration

Short Term Funds

Income Funds

MIPs

Accrual Funds

Gilt-Medium to Long Term

(C) Equity

Diversified Equity Funds

Direct Equity/Derivatives

Equity PMS

Private Equity

(D) Alternate

Gold ETFs/Funds

Real Estate Products (REITs)

Structured Products

(A)+(B)-(C)+(D)

65% 50% 30% 20% 15%

30% 35% 30% 20% 15%

5% 15% 30% 40% 50%

0% 0% 10% 20% 20%

100% 100% 100% 100% 100%

24

Key Global Economic Variab l e s

Japan

Australia

New Zealand

Indonesia

Singapore

South Korea

Philippines

Malaysia

BRICS

Brazil

Russia

India

China

South Africa

United States

Canada

Mexico

Germany*

UK

France*

Italy*

Spain*

Portugal*

Greece*

Poland

Switzerland

1.20%

1.80%

7.70%

6.70%

0.80%

6.50%

7.25%

6.50%

4.35%

6.50%

11.74%

8.53%

7.86%

3.63%

9.00%

4.48%

2.50%

4.17%

2.10%

4.60%

-0.48%

2.20%

-1.90%

1.30%

-2.50%

74%

13%

69%

48%

53%

Country GDP Growth Policy Rate 10yr Yield Inflation CAD/GDP Debt/GDP

Americas

Europe

Asia

2.80%

2.30%

2.70%

2.00%

1.50%

7.75%

2.87%

2.26%

7.91%

2.90%

2.50%

4.81%

-2.40%

-3.00%

-1.60%

105%

90%

46%

2.00%

1.30%

1.70%

1.10%

2.70%

2.30%

2.30%

5.10%

2.20%

0.00%

0.75%

0.00%

0.00%

0.00%

0.00%

0.00%

1.50%

-0.75%

0.32%

1.24%

0.68%

3.12%

1.45%

1.85%

4.33%

3.16%

-0.11%

2.00%

2.50%

2.30%

1.50%

2.20%

1.60%

0.90%

2.00%

1.20%

8.00%

-4.10%

-0.80%

2.80%

1.90%

0.50%

-0.80%

0.30%

9.80%

64%

85%

97%

132%

98%

126%

179%

51%

30%

1.00%

3.10%

2.70%

5.27%

3.90%

2.90%

6.00%

4.50%

-0.10%

1.50%

1.75%

5.50%

1.73%

1.50%

4.00%

3.25%

0.10%

2.54%

2.57%

7.99%

2.45%

2.48%

6.79%

4.07%

0.70%

2.10%

1.50%

3.18%

0.60%

1.50%

5.70%

0.80%

4.02%

-3.10%

-2.80%

-1.70%

19.50%

5.60%

-0.80%

1.30%

253%

42%

22%

29%

111%

38%

42%

51%

25

Contacts

Sanket P Desai Head - MF Research & Advisory Mumbai +91-9619200278

Amit Rawal AVP - MF Research & Advisory Mumbai +91-7045780023

Sandeep Singh Senior Manager – Sales Mumbai +91-9004688740

Namrata Vora Relationship Manager Mumbai +91-9920284484

Sunita Karkera Manager - Customer Service Mumbai +91-7738393413

Mahesh Vemula Asst Manager - Customer Service Mumbai +91-9967538848

Anand Singh Regional Head – North Delhi +91- 9971493313

Pooja Khanna Relationship Manager Delhi +91-9810038243

Aakash Sharma Manager - Sales & Customer Support Delhi +91-9811898906

Aditya Kumar Jain Regional Head – East Kolkata +91-9830970958

Alok Chiranya Team Leader Kolkata +91- 9007056355

Vinod Kalra Regional Head – Punjab Chandigarh +91-9988100022

Krishnachander C Regional Head – South Chennai +91-9884036432

Digvijay Mohite Area Manager Kolhapur +91-8691047470

Raj Kumar Saini Branch Manager Kota +91-9166880777

Shailesh S Gharpure Regional Manager Nagpur +91-8691047474

Investor Support & Services

Phone: 022: 6240 6309 Email: [email protected]

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