VOL XIV • ISSUE 02
•
2017
0
CONTENTS
01
EDITORIAL
02
A HIGHLY PRACTICAL & PRUDENT BUDGET
05
GOOD ON MACRO, NOT POPULIST
07
MACRO DEVELOPMENTS - GLOBAL
08
MACRO DEVELOPMENTS - INDIA
10
FIXED INCOME
12
EQUITY MARKETS
16
COMMODITIES AND CURRENCY MARKETS
17
CORE RECOMMENDED FUNDS - EQUITY
20
CORE RECOMMENDED FUNDS - DEBT
26
SATELLITE FUNDS
27
MACRO INDICATORS
29
OTHER OFFERINGS
30
RISKOMETER
31
DISCLAIMER
EDITORIAL
Politics have taken centre stage in the very first month of this year. While global markets have been experiencing rising
populism and protectionist political agenda across nations, back in India, the agenda seems to be making our country the best
investment destination for both global and domestic investors.
Union Budget 2017-18 was presented in the first week of February 2017 which was a perfect blend of Growth and Fiscal
Prudence. The key areas focused in the budget that we see as the game changers for Indian economy are, thrust on
infrastructure development, enhanced public spending, rural development, clearing bottle necks for the FDIs, etc. Sticking to
fiscal prudence while enhancing public spending may help the economy grow at a faster pace than expected.
On a global front, protectionism seems to be gripping the nations. After Brexit, wave of populism doesn’t seem to be restricted
to U.K. but is quickly spreading across the globe threatening the future of trade relationships among the nations. The new
administration under Mr. Donald Trump brought-in protectionist measures through aggressive foreign policy positions
pertaining to immigration, trade, taxation, etc. Germany, one of the major nations of EU (European Union) ruled out any
further rescue programme concerning debt crisis in Greece until the current one expires in 2018. But IMF (International
Monetary Fund) emphasised that EU should provide significant debt relief to Greece and also warned that Greece’s debts are
on an explosive path, despite years of attempted austerity and economic reforms. Changing political conditions and stiff
stance from Germany on both Greek debt crisis as well as ECB’s QE program pose many questions on sustainability of EU (the
biggest player in global trading).
Amidst these challenging times, global equity markets particularly emerging markets rallied in the month of January with
major indices rising by 2%-6%. Brazil (+7%), Hang Seng (+6%), India (+4%) and Nasdaq (+4%) emerged as the best performers
among the key global equity markets. The Q3FY17 earnings season in India has been in-line so far.
On the fixed income front, rally in the US 10 Yr benchmark yield that started in November 2016 continued in January too. U.S.
Fed in its recent FOMC meeting kept the key rates unchanged hinting at gradual hikes going ahead. The Indian 10 Yr
benchmark yield softened gradually and cautiously on the run-up to Union Budget 2017-18. RBI (Reserve Bank of India) in its
sixth bi-monthly policy review meet once again surprised the markets by not only maintaining status quo on key interest
rates, but also changing its monetary policy stance to “Neutral” from “Accommodative”. This triggered a spike in Indian 10 Yr
benchmark yield.
Overall, we remain constructive on the Indian markets from a medium to long term perspective with expectations of good
corporate earnings in Q4FY17 and pace of reforms. Fear of earnings de-growth due to demonetisation was proved to be a hype
(for the time being) with better than expected Q3FY17 earnings season. Equity markets have rallied almost 4% since the
announcement on demonetisation, majorly driven by strong domestic flows which once again re-emphasises our conviction
on maintaining prudent asset allocation and buying when others are fearful.
Bhavesh Sanghvi
Executive Vice President & Head - Wealth Management
Aditya Birla Finance Limited
Guest Editor
February 2017 Investime 01
A Highly Practical & Prudent Budget
(UNION BUDGET 2017 – 2018)
In-house views from DSP BlackRock Investment Managers Pvt. Ltd.
The Government, in its Budget announcements
yesterday, stayed on the path of fiscal consolidation by
keeping the targeted deficit at 3.2% (in line with the
consensus estimate), lower than last year’s deficit of
3.5%. The Government also retained the FY2019’s fiscal
deficit target at 3%.
With somewhat slower growth post demonetization,
segments of the market expected the Government to
push the growth agenda by tolerating a higher fiscal
deficit. Hence sticking to the path of fiscal consolidation
is a positive step.
Impact on the Equity Market with respect to various
sectors
1. Banks/Financials:
• Infrastructure status to the affordable housing
sector will be positive for housing finance
companies, as it will help them to diversify their
funding profile and reduce cost of funds.
• Bank capital infusion was in line with expectations.
We remain constructive on the sector (private sector
banks and select state owned banks).
2. Consumer staples (FMCG):
• Higher allocation to rural areas is a positive for
consumption.
• Lower excise duty on cigarettes in the last five years
will be positive for cigarette companies.
We remain underweight on the sector due to valuation
concerns.
3. Autos: No direct impact from the Budget. However,
higher allocation to rural/infra/defense sector are
indirect (but directional) positives.
We remain constructive on the sector and prefer
4-wheelers, CVs and select premium two-wheeler
companies.
4. IT: No significant impact.
We remain cautious on the sector.
5. Telecom: No spectrum auction proceeds budgeted for
FY2018, Non-tax revenue from the telecom sector of
Rs. 44,342 cr (USD 65.75 Bn) is reasonable (vs. Rs.
98,994 cr BE FY2017) (USD 146.79 Bn).
We remain cautious on the sector.
6. Pharmaceuticals/Healthcare: Extension of MAT
benefit to 15 years is positive; FIPB abolition will also
lead to ease of doing business.
We have a stock specific positive view on the sector.
7. Agriculture/Fertilizer: Subsidy allocation for the
sector kept unchanged from last year, which is
positive.
We remain constructive on the sector.
8. Building material: Increase in allocation towards
housing and infra is positive.
We remain constructive on the sector.
9. Oil & Gas:
•
•
Import duty on LNG cut from 5% to 2.5%. This reduces
gas cost by 2-3%. Positive for gas utilities. It would
also improve competitiveness of LNG versus other
fuels which could improve overall demand.
Intention to set up strategic oil storage at two
locations will be positive for India’s energy security.
We remain constructive on downstream oil & gas
companies.
10. Infrastructure/Capital Goods:
•
•
The Government has increased its allocation towards
infrastructure spending. Total spending on transport
(roads, railways, and airports) is pegged at ~1.5% of
GDP in FY2018 and overall infrastructure spending at
~2.5% of GDP.
The focus continues to be on road, railways (including
metros) & defense like in the previous two budgets.
We remain neutral to positive on the sector.
11. Metals: No impact on the investible universe.
12. Cement: Focus on rural sector and affordable housing
will be positive for demand growth.
We remain positive on the sector.
Key Takeaways from the Budget
1. Budget focused on ten key areas: Farmers (aim to
double farm income in 5 years), Rural Sector, Youth,
Poor and Unprivileged, Infrastructure, Financial
Sector, Accountability, Public Service, Fiscal
Management and honouring the tax payer.
2. Fiscal discipline: The Government stuck to the path of
fiscal discipline with a Fiscal Deficit target of 3.2% for
FY2018 and 3% for FY 2019. This will be viewed
positively by global rating agencies and the bond
markets.
February 2017 Investime 02
A Highly Practical & Prudent Budget
(UNION BUDGET 2017 – 2018)
In-house views from DSP BlackRock Investment Managers Pvt. Ltd.
3. Infrastructure:
a) Capex spending is up 25% which is a positive surprise
and will boost growth (total infrastructure spending
at Rs. 3.96 lakh cr) (USD 587.19 Bn).
b) Increased spending on rural areas, especially on rural
employment, roads, power and skill development
c) The government increased its allocation towards
infrastructure spending. According to the Finance
Minister, total spending on transport infrastructure
(roads, railways, and airports) is pegged at ~1.5% of
GDP in FY18 and on overall infrastructure at ~2.5% of
GDP.
d) A boost to affordable housing via higher allocation to
the government’s low-cost housing scheme and by
including low-cost housing in the definition of
infrastructure.
4. Bank re-capitalisation: Was in line with expectations
at Rs. 10,000 cr (USD 14.83 Bn), with a provision of
allocating more resources if required.
5. Taxation:
a) No change in Short-term/Long-term capital gains for
listed securities, investors were anticipating an
increase in taxes here.
b) MSME sector will now be taxed at 25% vs. 30%
previously (for turnover less than Rs. 50 cr/annum)
(USD 0.0074 Bn).
c) Personal income tax rates reduced from 10% to 5%
for the lowest income bracket (Rs. 2.5 lakh– Rs. 5.0
lakh/per annum) (~USD 3700 – USD 7410).
d) Clarity on CBDT circular relating to taxation of indirect
transfers will allay fears for India dedicated funds
(positive for FPI flows).
6. Disinvestments: Target of Rs. 72,500 cr. Vs. Rs. 45,500
cr. last year (USD 107.5 Bn Vs USD 67.5 Bn).
7. Digitisation: Incentivising digital payments and
discouraging use of cash, including a ban on cash
transactions above INR 300,000 (USD 4450).
8. Political Funding: A push towards transparency in
political funding, with a limit of INR 2,000 (~USD 30)
on cash donations /all payments above that amount
restricted to cheques and digital modes – which is a
bold move in our view.
9. Financial sector reforms including abolishing the
Foreign Investment Promotion Board (FIPB) to
promote FDI.
Financing the Fiscal Deficit
Particulars
INR (crs)
2016-17
Fiscal Deficit
(as a percentage of GDP)
Primary Deficit
(as a percentage of GDP)
Revenue Deficit
(as a percentage of GDP)
Sources of financing Fiscal Deficit
Borrowings
(as a percentage of GDP)
Securities against small savings
(as a percentage of GDP)
State provident funds
(as a percentage of GDP)
Other receipts
(as a percentage of GDP)
External Debt
(as a percentage of GDP)
Drawdown of cash balance
Total
USD (Bn)
2017-18
2016-17
2017-18
534,274
3.50%
51,205
0.30%
310,998
2.10%
546,532
3.20%
23,454
0.10%
321,163
1.90%
792.22
3.50%
75.93
0.30%
461.15
2.10%
810.40
3.20%
34.78
0.10%
476.22
1.90%
365,848
2.40%
90,377
0.60%
13,000
0.10%
9,948
0.10%
14,873
0.10%
40,227
534,273
350,228
2.10%
100,157
0.60%
14,000
0.10%
53,513
0.30%
15,789
0.10%
12,844
546,531
542.48
2.40%
134.01
0.60%
19.28
0.10%
14.75
0.10%
22.05
0.10%
59.65
79.22
519.32
2.10%
148.51
0.60%
20.76
0.10%
79.35
0.30%
23.41
0.10%
19.05
81.04
Borrowing: For the next fiscal, the net borrowing works out to be Rs. 3.48 lakh crores (USD 516 Bn). The gross borrowing is
pegged at Rs. 5.8 lakh crores (USD 860 Bn).
February 2017 Investime 03
A Highly Practical & Prudent Budget
(UNION BUDGET 2017 – 2018)
In-house views from DSP BlackRock Investment Managers Pvt. Ltd.
Particulars
INR (crs)
2016-17
USD (Bn)
2017-18
2016-17
2017-18
Gross Borrowing
Redemption
582,000
175,291
580,000
157,000
862.99
259.92
860.02
232.80
Switching of securities
Buyback of securities
Net borrowing
40,510
59,490
347,219
25,000
75,000
348,000
60.07
88.21
514.86
37.07
111.21
516.01
Buybacks may happen at the end of the year and would substitute short term securities with longer duration securities.
However the market was expecting Rs 4.2L cr (USD 622.78 Bn) borrowing (with no buyback budgeted). Thus the projected
market borrowing for 2017 -18 seems to be much better than expected, changing the demand-supply dynamic in favour of
likely lower yields going forward.
Conclusion: No change to the long term capital gains tax on listed securities, abolition of FIPB (will attract more FDI),
clarification on the CBDT circular on indirect transfers, higher capital spend (important for job growth and development)
and fiscal discipline can be seen as the key positives of the Budget.
Overall, it was a well balanced budget with focus on growth, consumption, infrastructure and fiscal prudence.
Exchange Rate: 1 USD = Rs 67.44 (Source: www.rbi.org)
In this material DSP BlackRock Investment Managers Pvt. Ltd. (the AMC) has used information that is publicly available, including information developed inhouse. Information gathered and used in this material is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness
and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be construed as
any research report/research recommendation. We have included statements / opinions / recommendations in this document, which contain words, or phrases
such as "will", "expect", "should", "believe" and similar expressions or variations of such expressions that are "forward looking statements". Actual results may
differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not
limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or
investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or
other rates or prices etc. All figures and other data given in this document are dated and the same may or may not be relevant in future. The sector(s) / stock(s) /
issuer(s) mentioned in this presentation do not constitute any research report / recommendation of the same and the Fund may or may not have any future
position in the sesector(s) / stock(s) / issuer(s).
February 2017 Investime 04
Good on Macro, Not Populist
(UNION BUDGET 2017–2018)
In-house views from Axis Asset Management Co. Ltd
The Finance Minister presented the Union Budget for
2017-18 in what is a period of transition for the economy.
On one hand, the economy is recovering from the effects
of demonetisation. On the other hand, there is the
impending rollout of the GST which promises to
completely transform the indirect tax regime in the
country.
Last but not least, the announcement on buy back of
approx. Rs. 75000 crore of securities maturing over the
next 2-3 years is a positive for the short end of the curve.
Not to mention abundant liquidity post demonetization is
already helping shorter term bonds.
In this context, the choice for the FM was to either stay
true to the reform and fiscal consolidation path or to play
for populism as was the demand by a section of the
media.
Contrary to market expectation of a Long Term Capital
Gains tax on Equities, there were no such negative news
for equity markets. The Budget was positive for foreign
investors owing to the FIPB becoming defunct and
withholding tax extension.
It is a great positive that the FM has chosen to stay away
from the populist path. All the optical announcements in
the budget aside, the single most important variable of
the budget from a macro-economic stability perspective
is the fiscal deficit target. By committing to bring down
the deficit on a steady basis, the government has made it
easier for the RBI to look at further rate cuts in the cycle.
Over the course of time, the government has sharply
reduced inefficient subsidies making way for more
targeted allocation and focus on the farmer’s income and
housing sector reforms. All in all the government’s
thought process in the budget was largely consistent with
its long standing agenda emphasizing fiscal discipline,
boosting growth and spending and what it called
‘tectonic policy initiatives’ i.e. GST implementation and
demonetisation.
Impact on Equity Markets
The Budget is seen as being largely positive for sectors
directly or indirectly dependent on housing and real
estate such as cement, building materials, and lenders in
housing finance. Further, listed companies have been
able to navigate the demonetization aftermath smoothly
and earnings growth can bounce back as a result.
Organized players will benefit disproportionately due to
level playing field against erstwhile pure cash players.
Key Highlights of the Budget are as below:
Fiscal Front:
•? Fiscal deficit target set at 3.2% for FY 18 and 3.0% for
the subsequent two years
• Net borrowing announced at Rs. 3.48 lakh crores
Taxes:
Impact on Fixed Income Markets
Largely in line with market expectations the government
kept the borrowing programme in check which was a
positive. There was a more structural change however, to
bring down the debt to GDP ratio to 60% over the next few
years.
The budget was largely a non-event for the FI markets as
the gross borrowing number at 5.8 lakh crore was in line
with expectations. Bonds rallied marginally post the
Finance Minister’s statement on adhering to the path of
fiscal consolidation. Inflation within comfort zone and a
tight fiscal target spell good news as the RBI can deliver
more rate cuts going forward.
•? Corporate tax rate for SMEs with turnover of less than
Rs. 50 crores lowered to 25%
•? Personal Income tax rate for the Rs. 2.5 – 5 lakh slab
reduced to 5% from 10%
•? Not many changes to excise duties and service tax
since GST will be implemented soon
•? Minimum Alternative Tax (MAT) can be carried
forward for 20 years
•? Surcharge on income bracket Rs. 50 lakh and 1 crore
Foreign Investors:
•? Foreign Investment Promotion Board (FIPB) to be
abolished
•? Concessional withholding tax rate will be extended to
30 June 2020
February 2017 Investime 05
Good on Macro, Not Populist
(UNION BUDGET 2017–2018)
In-house views from Axis Asset Management Co. Ltd
Real estate & Housing:
•? Real estate sector long term capital gains tax is
applicable at 2 years holdings in place of 3
•? Affordable housing to be given infrastructure status
Push from Cash to Digital transactions, widening tax net:
•
•
•
•
Limit of 3 lacs on cash transactions
Additional push for digital transactions
Clean-up of funding for political parties
Demonetisation data to be used to expand tax base
Statutory Details and Risk Factors
Statutory Details: Axis Mutual Fund has been established
as a Trust under the Indian Trusts Act, 1882, sponsored by
Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee:
Axis Mutual Fund Trustee Ltd. Investment Manager: Axis
Asset Management Co. Ltd. (the AMC) Risk Factors: Axis
Bank Limited is not liable or responsible for any loss or
shortfall resulting from the operation of the scheme.
This document represents the views of Axis Asset
Management Co. Ltd. and must not be taken as the basis
for an investment decision. Neither Axis Mutual Fund,
Axis Mutual Fund Trustee Limited nor Axis Asset
Management Company Limited, its Directors or
associates shall be liable for any damages including lost
revenue or lost profits that may arise from the use of the
information contained herein. No representation or
warranty is made as to the accuracy, completeness or
fairness of the information and opinions contained
herein. The material is prepared for general
communication and should not be treated as research
report. The data used in this material is obtained by Axis
AMC from the sources which it considers reliable. While
utmost care has been exercised while preparing this
document, Axis AMC does not warrant the completeness
or accuracy of the information and disclaims all liabilities,
losses and damages arising out of the use of this
information. Investors are requested to consult their
financial, tax and other advisors before taking any
investment decision(s). The AMC reserves the right to
make modifications and alterations to this statement as
may be required from time to time.
Mutual Fund Investments are subject to market risks,
read all scheme related documents carefully.
February 2017 Investime 06
MACRO DEVELOPMENTS - GLOBAL
US
America’s President Mr. Donald Trump seems to have
inherited a robust U.S economy. In the month of January,
227,000 jobs have been added well above 157,000 jobs
added in December 2016, while the unemployment rate
little changed at 4.8%. Average monthly growth seen in
2016 has been 1,87,000 jobs. The job market growth rate
seen in January marked the best growth rate since
September 2016. The change in total nonfarm payroll
employment for November was revised down from
204,000 to 164,000, and the change for December was
revised up from 156,000 to 157,000. Over the past 3
months, job gains have averaged 183,000 per month. U.S
Fed in its first policy meet of 2017 on 31st Jan /1st Feb,
kept the key interest rates unchanged at 0.5% to 0.75%.
FOMC hinted that the policy would remain
accommodative while closely monitoring improvement
in its two key objectives; stronger labour market and
inflation. In the month of December, the inflation rate
accelerated for the fifth consecutive month to the highest
since June of 2014. Consumer prices increased 0.3% m-om in December 2016, compared to 0.2% in November. On
a year-on-year basis, consumer prices increased 2.1% in
December 2016, following a 1.7% rise seen in November.
(The January month data would be released in the mid of
February). Personal Consumption Expenditure (PCE), the
price index for consumer spending in the United States
increased 0.3% after increasing 0.1% in November
(revised). While improving job market conditions and
inflation being close to FOMC’s target range, President
Donald Trump's fiscal policies might influence FOMC’s
future rate hike decisions. The next FOMC meeting is
scheduled for March 2017.
Eurozone
Cloud of uncertainty looms over European Union (EU) as
rising populism engulfs member nations of the EU as they
gear-up for the upcoming elections. After Brexit, which
kept the global investors guessing on the outcome, now
change in leadership in EU IS worrying the investors
worldwide. Member nations like Germany, Netherlands,
France, are set for scheduled general elections in 2017
while Italy may see an early election in the wake of
Mr.Matteo Renzi’s resignation in 2016. EU’s GDP growth
for Q4 came in at 0.5% compared to previos quarter’s
0.4%. Annual consumer prices inflation rose to 1.8% in
January marking its highest rate since February 2013.
(ECB’s inflation target is near 2%). With inflation
gradually improving, Germany has been demanding ECB
to end or taper the ongoing quantitative easing program.
But ECB (European Central Bank) in its recent statement
stuck to its stance stating that, while inflation is
improving, QE is still required. Earlier in December 2016,
ECB has extended its QE program to end-2017 while
cutting the monthly asset purchases to 60 billion euro per
month. Manufacturing activity seems to be robust in the
month of January 2017. Markit Eurozone Manufacturing
PMI came in at 55.2 marking the highest reading since
April 2011. Debt crisis in Greece once gain made news.
Germany, one of the major nations in EU (European
Union) ruled out any further rescue programme
concerning debt crisis in Greece until the current one
expires in 2018. But IMF (International Monetary Fund)
emphasised that EU should provide significant debt relief
to Greece and also warned that Greece’s debts are on an
explosive path, despite years of attempted austerity and
economic reforms. Changing political conditions and stiff
stance from Germany on both Greek debt crisis as well as
ECB’s QE program pose many questions on sustainability
EU (the biggest player in global trading). Going ahead,
Brexit negotiations, changing political conditions, debt
crisis in Greece may impact the markets.
Asia
Chinese economy grew 1.7% q-o-q in the fourth quarter of
2016, compared to 1.8% growth seen in the previous
quarter. Heavy policy stimulus and increased
government spending now worries the top leaders about
the risks of high debt levels and an overheating housing
market that could threaten financial stability. By the end
of 2016, China's debt to GDP ratio rose to 277% compared
to 254% the previous year. A bigger risk to the global
economy is if China prioritizes financial system stability
at the expense of exchange-rate stability. Considering
China’s trade relationships across the globe, any large
yuan depreciation or a sharp slowdown in growth might
prove to be highly disinflationary to the rest of the world.
In the month of December 2016, consumer prices in Japan
increased 0.3% y-o-y compared to November’s 0.5%. As
per the preliminary estimates, Japan’s industrial
production expanded 3% y-o-y in December compared to
the November’s 4.6% reading. Consumer sentiment rose
to 43.2 in January compared to December’s 43.1 (highest
reading since September 2013). January 2017 has seen
largest rise in new export orders since January 2016 led by
both domestic and overseas demand for Japanese goods.
February 2017 Investime 07
MACRO DEVELOPMENTS - INDIA
INDIAN MACRO-ECONOMY
IIP & Core Sector Growth (%)
12.00
10.00
8.00
0.00
-2.00
-4.00
committed to achieve 3% in the following year while
Oct-16
Nov-16
Dec-16
Aug-16
Sep-16
May-16
Jun-16
Jul-16
Feb-16
Mar-16
Apr-16
medium enterprises. The government has reduced fiscal
deficit target to 3.2% of the GDP for FY18 and remains
Oct-15
Nov-15
Dec-15
Jan-16
-6.00
Aug-15
Sep-15
affordable housing and also strengthen small and
2.00
May-15
Jun-15
Jul-15
were also made to encourage the realty sector to focus on
4.00
Jan-15
with a special effort to promote digital economy. Efforts
6.00
Feb-15
gave a lot of importance to rural and infrastructure sector
Mar-15
Apr-15
Union Budget 2017-18 announced on 1st February 2017
IIP Growth (%)
Core Sector Growth [%]
Source: CMIE
stepping public expenditure. The Union Budget was
viewed as a pragmatic one which is expected to support
domestic growth with prudent fiscal management
especially when the global economy is experiencing
sluggish growth.
IIP for November 2016 shrugged off any initial impact of
demonetisation and expanded to 5.71% (fastest in 13
months) against contraction of 1.82% seen in October
2016. This was mainly due to positive base effect, with IIP
The Central Statistical Office (CSO) in its first advance
having contracted 3.37% in the same month last year. The
estimate has projected India's economic growth at 7.1%
rise was broad based, under use-based classification,
for FY17 (without taking into account the impact of
capital goods production which has been volatile for past
demonetization). However the International Monetary
one year rose to 15% while consumer goods grew by
Fund (IMF) has downgraded India’s growth forecast to
5.58%. Cumulatively, growth for the April-November
6.6% in FY17 from earlier estimate of 7.6% on account of
period was at 0.37% lower than the 3.78% recorded for
temporary disruption caused by currency withdrawal.
the same period last year.
IMF also expects India’s growth to pick up at a slower pace
in 2017-18, at 7.2%, against its earlier estimate of 7.6%.
India’s foreign exchange reserves rose to USD 361.56bn
by the end of January 2017 against USD 360.30bn the
previous month. FX reserves now covers 12 months of
imports.
Most of the economists believe that the numbers may
also not represent the negative impact of demonetisation
as production cycles in manufacturing take longer to
adjust to the demand change. The full impact of
demonetisation and its effect on consumption may be
seen in December 2016 numbers and in the following
months.
IIP - SECTOR WISE GROWTH RATE (%)
Categories
Nov-16
Oct-16 Nov-15 Weight
Sector-Wise
Mining
3.90
-0.69
1.71
14.16
Manufacturing
Electricity
5.53
8.88
-2.39
1.14
-4.56
0.75
75.53
10.32
Core sector which has 38% weightage in the IIP expanded
to 5.58% in December from 4.89% in November 2016.
Use based classification
Basic goods
Capital goods
Intermediate goods
Consumer goods
4.66
15.01
2.68
5.58
4.23
-26.92
2.65
-1.36
-0.54
-24.40
-1.45
1.03
100.00
45.68
8.83
15.69
29.81
Consumer durables
9.82
0.59
12.15
8.46
Consumer non-durables
IIP
2.93
5.71
-2.89
-1.82
-4.85
-3.37
21.35
100.00
Steel production and refinery products posted a strong
performance and came in at 14.92% and 6.41%
respectively. However, crude oil, fertilizer and cement
output reported contraction. Owing to slowdown in
construction activity, cement production decelerated by
8.73% during the month. Core sector’s cumulative growth
during April to December, 2016-17 was 4.95% vs to 2.57%
during the same period last year.
Source: CMIE
February 2017 Investime 08
MACRO DEVELOPMENTS - INDIA
CPI headline inflation cooled down to a 25-months low in
Core Sector Growth Rate (%)
Categories
Dec-16
December 2016 and came in at 3.41% vs 3.63% in the
Nov-16 Dec-15 Weight
Coal
4.44
6.36
5.32
4.38
Crude oil
Natural gas
-0.83
0.00
-5.31
-1.66
-4.06
-6.09
5.22
1.71
Refinery products
Fertilizers
6.41
-4.79
1.95
2.44
2.15
13.46
5.94
1.25
Steel
Cement
Electricity
14.92
-8.73
5.95
5.55
0.54
10.22
3.10
4.12
8.84
6.68
2.41
10.32
Core Sector
5.58
4.89
2.87
37.90
Source: CMIE
previous month. Both rural and urban India witnessed
decline during the month. The fall was majorly due to
sharp decline in food prices. Food inflation, which
constitutes around 39% of the overall index, fell sharply
from 2.03% in November to 1.37% in December 2016.
Vegetable prices decelerated for the fourth consecutive
month and came in at 14.59%. However, prices of sugar
and condiments continued to be high at 21.06%. Fuel and
light inflation inched higher to 3.77% in December 2016
from 2.80% in November 2016 due to surging crude oil
Nikkei India Manufacturing Purchasing Mangers’ Index
(PMI) which measures the performance of manufacturing
sector rose to 50.4 in January 2017 from 49.6 in the
prices. Core inflation which excludes food and fuel still
remains sticky at 4.96% in December 2016 from
previously recorded 5.04% in November 2016.
previous month due to rising order books. Greater
Going ahead, CPI inflation may inch higher due to rising
production needs encouraged companies to purchase
global commodity prices especially crude oil and impact
more inputs, but failed to generate jobs in the sector.
of GST (when implemented). But, it is likely to trend below
Nikkei India Services PMI contracted for the third month
RBI’s medium term target of 4% with an upper limit of 6%
in a row but came in higher at 48.7 in January 2017
and lower limit of 2%.
compared to 46.8 reading in December 2016. Both new
business and activity fell for third straight month. Nikkei
India Composite PMI Output Index, which maps both
manufacturing output and services activity, rose from
December’s 38-month low of 47.6 to 49.4 in January 17. A
reading above 50 indicates expansion while reading
below 50 indicates contraction.
Nikkei India Service PMI
54.3
54.3
54.7
53.7
51.4
51.0
54.5
52
51.9
50.3
48.7
Jan-17
Dec-16
Oct-16
Nov-16
Sep-16
Jul-16
Aug-16
Jun-16
May-16
Apr-16
Feb-16
Jan-16
Mar-16
46.7 46.8
Source: CMIE
Nikkei India Mfg. PMI
52.6
52.4
51.7
51.1
54.4
51.1
50.5
52.3
52.1
51.8
50.7
50.4
Jan-17
Dec-16
Nov-16
Oct-16
Sep-16
Aug-16
Jul-16
Jun-16
Apr-16
May-16
Mar-16
Feb-16
Jan-16
49.6
Source: CMIE
February 2017 Investime 09
FIXED INCOME
FIXED INCOME - INDIA
1.61
1.57
0.75
0.64
-0.07
Japan
0.09
0.05
0.02
-0.05
-0.08
Spain
1.59
1.39
1.55
1.20
0.88
1.01
Germany
0.44
0.21
0.28
0.17
-0.12
-0.06
France
1.04
0.68
0.74
0.47
0.12
0.17
Italy
2.27
1.83
1.99
1.68
1.19
1.15
Brazil
10.94
11.46
11.90
11.47
11.63 12.11
China
3.36
3.07
2.94
2.74
2.77
2.81
India
6.41
6.52
6.25
6.89
6.96
7.11
Source: Thomson Reuters
In the month of January, US bond markets have seen a
record high debt issuances to the tune of USD 150bn in
deals. In Europe too, debt issuances have been to the tune
of EUR 62 billion, a rise of approximately 62% from a year
earlier. Rise in U.S. yields seems to be driving up the global
yields along with other factors like global inflation,
geopolitical risks, market volatility, etc. However, the
accommodative monetary policy stance by Japan and
Europe may keep bond yields low in these regions thereby
limiting the rise of U.S. yields over the medium term.
Meanwhile PBOC (Peoples Bank of China) surprised the
markets by raising short-term interest rates signalling at
tightening of policy. Global analysts feel that this
tightening of money market rates may give PBOC the
flexibility so as to keep the economy from slowing again.
In the first week of February, Bank of Japan (BOJ) offered a
limited expansion of debt purchases in a regular
operation which pushed Yen higher. In the month of
January BOJ bought almost 8.25 trillion Yen (USD 72.1
billion) of JGBs. Earlier in September 2016, BOJ introduced
a new frame work naming it as “yield curve control’’
through which it plans to guide the 10-year JGB yield
around zero per cent while keeping short-term interest
rates at negative 0.1% .
G-Secs [%]
7.80
7.60
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
5.80
1Y G-Sec
3Y G-Sec
5Y G-Sec
Jan-17
1.83
1.25
Dec-16
2.37
1.42
Nov-16
2.43
1.24
Oct-16
2.45
1.42
Sep-16
US
UK
Aug-16
Date/
Jan-17 Dec-16 Nov-16 Oct-16 Sep-16 Aug-16
Countries
The month of January saw major political developments
in the U.S with Mr.Donald Trump taking office as the new
U.S President. The protectionist trade policies being
pursued by the new U.S administration might have
implications for global economies including India. The
global bond markets reacted negatively to these
developments with the benchmark 10 year German bund
yield and the U.K 10 year benchmark yield increasing by
26 bps and 23 bps respectively till end of January.
Jul-16
Global Bond Yields
Jun-16
FIXED INCOME - GLOBAL
10Y G-Sec
Source: Thomson Reuters
Government Security Yields (%)
Benchmark Sec
Latest
1 Month ago 2 Months ago
(31-1-2017) (30-12-2016) (30-11-2016)
G-Sec 1 Yr
6.27
6.36
6.07
G-Sec 3 Yrs
6.37
6.46
6.03
G-Sec 5 Yrs
6.56
6.65
6.20
G-Sec 10 Yrs
6.41
6.52
6.25
Source: CMIE
The Indian 10 year benchmark yield decreased from
6.52% levels seen at the end of December 2017 to 6.41%
by January 2017 end thus softening by 11bps with
expectations that the government will be able to meet its
fiscal consolidation targets since the borrowing program
for the last quarter was revised in early January.
Moreover, OPEC implemented a production cut of crude
oil from January thus increasing crude oil prices above
USD 50 per barrel mark. However, news of surplus oil
inventories from the U.S have kept a check on crude oil
prices which proved beneficial for India’s outlook on CPI
and CAD. The fiscal deficit numbers for FY 2016-17 as
announced in the Union Budget for FY 2017-18 have
confirmed the market’s expectations that the
government is on track in achieving fiscal consolidation.
The government was able to maintain the fiscal deficit at
3.5% of the GDP during FY 2016-17 and the target for FY
2017-18 has been kept at 3.2% of the GDP, slightly higher
February 2017 Investime 10
FIXED INCOME
than the earlier projected 3%. The government seems
confident of achieving its fiscal consolidation targets
since it expects the tax base to widen as a result of
demonetisation and its efforts towards eradicating black
money and parallel economy. The decision to reduce the
tax liability of the lowest bracket tax payers from 10% to
5% suggests that the tax base is expected to widen during
the year and the government will be able to meet its fiscal
deficit targets.
The liquidity in the banking system continued to remain
in surplus during January and the overnight call money
rate remained in range of 5.92% to 6.15% and at an
average of 6.04% during the month.
AAA Corporate Bond Yields [%]
FIIs continued to remain net sellers in the debt market
during January and sold securities to the tune of INR 2319
Cr. However, the 10 year benchmark G-Sec yield softened
by 11bps during the month supported by expectations
that the government would meet its fiscal consolidation
target and crude prices would remain in check due to
surplus inventories in the U.S.
The 10-year yield may soften by 20-25 bps further as
liquidity in the banking system remains in surplus and
credit growth remains slow. However, the risk-reward
scenario for long duration funds is not looking attractive
at this juncture. The 10 Yr G-sec yield has softened by 146
bps since the end of February 2016 and rising crude prices
and expectations of rate hikes by US Fed during the year
can limit further softening of yields.
8.50
8.25
8.00
7.75
7.50
7.25
7.00
6.75
1Y AAA
3Y AAA
Jan-17
Dec-16
Nov-16
Oct-16
Sep-16
Jun-16
Jul-16
6.25
Aug-16
6.50
5Y AAA
10Y AAA
Source: Thomson Reuters
AAA Corporate Bond Yield And Spread
Yield
Tenure
Spread(bps)
Latest
1 Month ago 2 Months ago
Latest
1 Month ago 2 Months ago
(31-1-2017) (30-12-2016) (30-11-2016) (31-1-2017) (30-12-2016) (30-11-2016)
1 Year
6.72
6.81
6.60
45
45
53
3 Years
6.88
7.12
6.73
51
66
70
5 Years
7.10
7.25
6.79
54
60
59
10 Years
7.30
7.46
7.06
89
94
81
RBI once again surprised markets by keeping the key
rates unchanged in its Bi-monthly policy meet on 7 /8
Feb’17. RBI also changed its monetary policy stance from
being “Accommodative” to “Neutral” citing upside risks
to inflation, banks being well positioned for better
transmission of lower rates to customers, etc.
The potential for long term bond yields coming down
significantly from the current levels appears to be
limited. We do not advice any fresh exposure to long
duration funds (like long term gilt, income). We have
been advising investors that they may consider partial
profit booking, and reduce exposure to long duration
funds (especially if they have completed 3 years). We
continue to prefer the shorter end of the curve. Investors
can consider Ultra-short, Short Term and Accrual / Credit
Opportunities funds.
Source: CMIE
AAA and AA rated corporate bond yields softened across
maturities during the month in spite of volatility in global
markets caused by expectations of further rate hikes by
U.S Fed, protectionist economic policies being pursued by
the U.S and rising crude oil prices due to production cuts
imposed by OPEC. The 1 Year AAA corporate bond yield
decreased from 6.81% to 6.72% thus softening by 9bps
while the 10 Year AAA corporate bond yield decreased
from 7.46% to 7.30% thus softening by 16bps during the
month. 1 year AA rated corporate bond yields decreased
from 7.24% levels seen at the end of December 2016 to
7.19% by January end thus softening by 5bps while the 10
year AA rated corporate bond yield decreased from 7.96%
to 7.85% thus softening by 11bps during the same period.
The softening of bond yields was supported by the surplus
liquidity in the banking system and expectations that the
government will be able to achieve the fiscal deficit target
of 3.5% during FY 2016-17.
February 2017 Investime 11
EQUITY MARKETS
EQUITY - GLOBAL
Indices
Global equity markets particularly emerging markets
rallied in the month of January with all the major indices
rising by 2-6%. Brazil (+7%), Hang Seng (+6%), India (+4%)
and Nasdaq (+4%) were the best performers among the
key global equity markets. European markets (-0.1-2.3%)
were the only major losers amongst the global equity
markets. Donald Trump has now been officially
inaugurated as the 45th President of the United States.
However, the financial markets are still somewhat
perplexed in terms of what exactly they should expect of
the new president in the areas of trade and economic
policy. As we progress ahead, a number of global factors
will be at play in CY2017 and would be key monitors such
as sustainable DM recovery, US fiscal policy, US foreign
trade policy, EU national elections, US Fed policy and
Brexit. Expectations in these policy areas have helped
support the dollar (USD) and pushed US long yields
higher, among other things.
Euro zone’s economic data continues to improve at a
steady pace. Inflation in the euro zone has risen to just
below the European Central Bank's target, economic
growth is accelerating at greater speed than in the United
States, and unemployment has hit a more than sevenyear low. Inflation accelerated to 1.8% year-on-year in
January, Eurostat estimated, up from 1.1% in December,
leaving it just shy of the ECB's medium-term target of
below but close to 2%. Euro zone GDP rose 0.5% quarteron-quarter in the last three months of 2016 for a 1.8 %
year-on-year rise. The upturn in both activity and prices
will make welcome reading for policymakers at the
European Central Bank, who left their ultra-loose policy
unchanged and maintained the key parameters of its 1.74
trillion euro ($1.95 trillion) asset buying scheme as ECB
tries to lift growth and inflation.
US markets continued its winning streak in the month of
January (Dow Jones +0.5%, Nasdaq +4.3% and S&P 500
+1.8%). All three indexes hit record highs this month.
Investors expect Trump's presidential election win, will
lead to higher spending on infrastructure, lower taxes
and simpler regulations which would provide a boost to
the US economy over the next few years. Data flow from
the US has broadly been indicative of improved economic
conditions. On the inflation front, PCE inflation (the Fed’s
preferred inflation gauge) has picked up to its fastest
pace in over two years (1.6% YoY in December; core PCE at
1.7% YoY). CPI inflation has finally crossed the Fed’s 2%
threshold in December (core CPI is at 2.2% YoY). Nonfarm
payrolls addition has averaged 188,000 in H2 2016,
picking up from 171,000 in the first half of the year.
Absolute
Returns (%)
CAGR (%)
1 Month
1 Year
BEL-20 (Belgium)
-1.78
1.59
Bovespa (Brazil)
7.38
59.44
CAC 40 (France)
-2.33
7.45
DAX (Germany)
0.47
17.57
Dow Jones (USA)
0.51
20.45
Hang Seng (Hong Kong)
6.18
18.74
Jakarta Composite (Indonesia)
-0.05
14.58
KLSE Composite (Malaysia)
1.82
0.22
Madrid General (Spain)
-0.11
5.95
Nasdaq (USA)
4.30
21.50
NIFTY 50 (India)
4.59
13.08
Nikkei 225 (Japan)
-0.38
8.62
RTS (Russia)
1.03
55.63
S&P 500 (USA)
1.79
17.30
S&P BSE SENSEX (India)
3.87
11.10
Seoul Composite (S. Korea)
2.03
8.06
Shanghai Composite (China)
1.79
15.49
Swiss Market (Switzerland)
0.87
-0.33
Taiwan Weighted (Taiwan)
2.10
17.12
Source: ACE MF
Performance as on January 31, 2017
Meanwhile, annual wage growth has risen to a seven-year
high in December, while unemployment rate remains
below 5%, indicative of a labour market at or near fullemployment. Jobless claims too have been below
300,000, a threshold associated with a healthy labor
market, for 99 consecutive weeks, the longest stretch
since 1973. Fed’s monetary tightening is unlikely to
resume till the new regime gives indications of its fiscal
stimulus plans, which are yet to be concretized.
The Bank of Japan kept monetary policy steady and
maintained its optimistic price forecasts in its January
policy meeting, signalling its confidence that a steady
economic recovery will accelerate inflation to its 2%
target without additional stimulus. The BOJ switched its
policy target to interest rates from the pace of money
printing in September, after years of massive asset
purchases failed to jolt the economy out of stagnation
and accelerate inflation to its 2% target. Japanese
manufacturing activity expanded in January at the fastest
pace in almost three years as export orders surged,
suggesting that overseas demand has rebounded
strongly. The final Markit/Nikkei Japan Manufacturing
Purchasing Managers Index (PMI) seasonally adjusted
number came in at 52.7 vs 52.4 in December. The index
for total new orders, which measures both domestic and
external demand, was 54.0, versus a final reading of 53.2
in December. The data confirmed that new orders grew at
the fastest in 13 months.
February 2017 Investime 12
EQUITY MARKETS
China's official manufacturing Purchasing Managers'
Index continued in expansion in January, as the mainland
economy shows signs of stabilizing, reaching 51.3, down
slightly from 51.4 in December, but still better than a poll
forecasting 51.2. Going forward, market volatility is likely
to high in coming months and may continue facing
headwinds as investors seek more clarity on the US Fed
rate hike and also on steps taken by Donald Trump
against Chinese goods. Recently, a US government panel
has recommended a series of steps to the Congress to
stop cash-rich Chinese state-run firms from gobbling up
American companies and posing a threat to America's
national security. In January, Chinese equity markets
(Shanghai Composite 1.8%) were the major gainers
amongst the key global markets.
EQUITY - INDIA
During the month of January, Nifty closed with strong
gains of 4.6% MoM on the back of positive global cues and
receding demonetisation concerns. BSE Metals (+15.5%)
and Consumer Durables (+12.4%), BSE Auto (+7.7%) and
BSE Bankex (+7.5%) were the top performers in January.
Technology underperformed for the eighth consecutive
month (down 6% MoM), led by concerns over US
immigration policy and tepid revenue growth and
guidance of IT companies affected by global headwinds.
Indices
Absolute
Returns (%)
CAGR (%)
1 Month
1 Year
NIFTY 50
4.59
13.08
S&P BSE 100
5.31
15.29
S&P BSE 200
5.41
15.84
S&P BSE 500
5.65
16.29
S&P BSE AUTO Index
7.66
27.69
S&P BSE BANKEX
7.53
26.50
19.35
S&P BSE Capital Goods
8.19
S&P BSE Consumer Durables
12.36
3.61
S&P BSE FMCG
5.37
15.05
S&P BSE Health Care
0.47
-9.18
S&P BSE IT
-5.80
-14.03
S&P BSE METAL Index
15.46
68.59
S&P BSE Mid-Cap
6.87
23.21
S&P BSE OIL & GAS Index
5.65
38.30
S&P BSE PSU
8.40
33.41
S&P BSE Power Index
9.06
17.75
S&P BSE Realty Index
8.37
13.18
S&P BSE SENSEX
3.87
11.10
S&P BSE Small-Cap
7.38
18.84
S&P BSE TECk Index
-2.92
-9.88
Source: ACE MF
Performance as on January 31, 2017
Nifty P/E (x)
Sensex P/E (x)
21.00
23.00
19.00
21.00
19.00
17.00
17.00
Average P/E 15x
15.00
Average P/E 15x
15.00
13.00
1 STDEV (-) 13x
11.00
13.00
1 STDEV (-) 13x
7.00
Apr-06
Jul--06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
9.00
7.00
1Yr Fwd Blended P/E (x)
1 STDEV (+)
AVG P/E
1 STDEV (-)
Source: Bloomberg
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
11.00
9.00
1Yr Fwd Blended P/E (x)
1 STDEV (+)
AVG P/E
1 STDEV (-)
Source: Bloomberg
Sensex P/B (x)
Nifty P/B (x)
4.50
4.50
4.00
4.00
3.50
3.50
3.00
3.00
Average P/B 2.60x
Average P/B 2.5x
2.50
2.50
2.00
2.00
1 STDEV (-) 2.07x
1 STDEV (-) 2.03x
1.00
1.00
1Yr Fwd Blended P/B (x)
Source: Bloomberg
AVG P/B
1 STDEV (+)
1 STDEV (-)
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
1.50
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
1.50
1Yr Fwd Blended P/B (x)
AVG P/B
1 STDEV (+)
1 STDEV (-)
Source: Bloomberg
February 2017 Investime 13
EQUITY MARKETS
The Q3FY17 earnings season has been in-line so far. Of
the 17 Nifty companies that have declared their results,
82% companies have reported earnings ahead of/in-line
with consensus estimates while only 18% have missed
consensus estimates. Nifty earnings are expected to
grow at 8% for FY17E.
Government has been taking various reform measures
which shall bring long term capital in India and benefit the
economy. FM, Arun Jaitley announced a slew of measures
in Union Budget 2017 to offset some of the
demonetisation pain – Budget rural housing schemes,
interest waiver for sowing loans, social welfare schemes
and improving the ‘ease of doing business’ for
traders/MSMEs. Overall, we remain constructive on the
markets from a medium to long term perspective. The key
sectoral plays are autos, cement, specialty chemicals,
high quality private banking, NBFCs, select pharma and
uniquely positioned MNCs.
Valuations remain close to long term averages on 1year
forward basis with Nifty index trading at P/E of 19x on
FY17E and at P/E of 16x on FY18E. We re-iterate our
investment strategy of being stock specific and focus on
high growth, well-managed companies with strong
cashflows and credible management teams.
Banking & Financial Services
The demonetisation driven cash crunch will impact BFSI
sector negatively in the short term as sharp slowdown in
economic activity could result in rise in NPAs and lower
loan growth.
MSCI Finance P/B
5.00
4.50
4.00
3.50
3.00
Average P/B 2.28x
2.50
2.00
1 STDEV (-) 1.64x
1.50
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
1.00
1Yr Fwd Blended P/B (x)
Source: Bloomberg
AVG P/B
1 STDEV (+)
1 STDEV (-)
Over the long term, the banking and financial services
sector as a whole will benefit from growing opportunities
arising from the economy migrating to the formal
segment. Banks and NBFCs will get more opportunities in
self-employed, SME and lower income segments. Banks
and NBFCs are expected to gain market share from
informal lenders as it will be difficult to evade taxes in
India. Financial savings will rise as more individuals will
become tax compliant. Any correction in good quality
private banks and NBFCs shall be used as an opportunity
to accumulate these stocks. Among NBFCs, we prefer
Mortgage finance and Consumer finance companies
considering their steady growth and stable asset quality.
Capital Goods/Infrastructure
FY16 was one of the tough years for the infrastructure
sector. Order books were stagnant and growing
marginally (on account of lower pvt capex); Working
capital cycle had elongated and with high cost of debt
profitability was badly impacted. Governments “Make in
India” initiative seems to gather momentum and is likely
to be a key growth driver going forward. High Interest cost
regime will likely come to an end which will further aid the
profitability in the medium to long term. Govt has taken
various steps to put the economy back on track which will
lead to revival in the capex cycle. Overall FY17 seems to be
a promising year with lower commodity prices and lower
interest cost to aid profitability.
Power
Overall Power sector had been marred on account of
under recoveries which put stress on their financials and
balance sheet. However, situation is likely to improve as
a) power regulator is likely to pass an order which will be
beneficial to the UMPP players b) Fuel costs have fallen
dramatically which will aid the company’s profitability.
Governments focus on renewable space seems to have
got tremendous response with solar being in the
forefront. Solar power prices hit a new low in 2016 with a
lot of foreign players showing strong interest to invest in
the solar space. The sector is likely to benefit from the
increased clarity on the regulatory hurdle front and
reforms undertaken by the centre. PLF is expected to pick
up on back of improved clarity on fuel linkage.
February 2017 Investime 14
EQUITY MARKETS
Information Technology
MSCI PHARMA P/E
MSCI IT P/E
32.00
27.00
22.00
Average P/E 18x
17.00
1 STDEV (-) 14x
12.00
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
7.00
1Yr Fwd Blended P/E (x)
AVG P/E
1 STDEV (+)
1 STDEV (-)
Source: Bloomberg
Pharmaceuticals
Average P/E 21x
1 STDEV (-) 18x
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
IT industry is changing drastically more towards
discretionary spending backed by disruptive technology
and digital innovation. Leadership in the industry will
change towards a company having higher revenue from
discretionary related services. Q3FY17 performance for
most companies was inline with estimates, but future
outlook continues to remain bleak. Investment in the
sector should be stock specific. INR USD movement will
help the companies to report better operating margins in
a period when topline growth is challenged by cross
currency volatility and global slowdown. MSCI IT index is
trading at a discount to its 10-year average P/E.
30.00
28.00
26.00
24.00
22.00
20.00
18.00
16.00
14.00
12.00
10.00
1Yr Fwd Blended P/E (x)
AVG P/E
1 STDEV (+)
1 STDEV (-)
Source: Bloomberg
Consumer Sector
Near-term demand across categories could be
significantly affected due to cash crunch. Over the long
term, consumption demand will have a positive impact
and expected to rise due to efficient price discovery and
higher investment in economy supported by the rise in
tax collections. With the implementation of the 7th Pay
Commission, pay hike for (central and state) government
employees, combined with a good monsoon,
consumption will get a boost. The 23.5% increase in
public sector salaries proposed by the 7th Pay
Commission is worth 0.7% of GDP. Higher public sector
wages will most likely contribute to strong consumption
growth. We remain positive on domestic consumption
sectors like Automobiles, Consumer Durables, FMCG and
Consumer Discretionary.
With the environment for pure-play generic companies
becoming increasingly challenging, we believe it is
imperative for Indian players to move up the value chain
(Specialty Pharma/Complex Generics). Ergo, the sector
will be in a transformational phase over the next few
years as companies reinvent themselves to maintain or
improve growth rates in the US market. We continue to
remain neutral on the pharma sector, though we
continue to prefer players present in niche and
specialized product portfolio with focus on regulated
markets.
February 2017 Investime 15
COMMODITIES AND CURRENCY MARKETS
1400
106
104
102
100
98
96
94
92
90
88
86
1300
1200
1100
1000
900
Jan-17
Dec-16
Nov-16
Oct-16
Sep-16
Aug-16
Jul-16
Jun-16
May-16
Apr-16
Mar-16
Jan-16
USD/INR
Jan 17
Oct 16
Jul 16
Apr 16
Jan 16
Oct 15
Jul 15
Apr 15
Jan 15
Oct 14
Jul 14
Jan 14
Apr 14
70.00
68.00
66.00
64.00
62.00
60.00
58.00
56.00
54.00
52.00
Source: Thomson Reuters
EUR/USD
1.45
1.4
1.35
1.3
1.25
1.2
1.15
1.1
Apr 16
Apr 16
Jul 16
Oct 16
Jan 17
Apr 16
Jul 16
Oct 16
Jan 17
Jan 17
Jan 16
Jan 16
Jan 16
Jul 16
Oct 15
Oct 15
Oct 15
Jul 15
Apr 15
Jan 15
Oct 14
Jul 14
Apr 14
1.05
1
Jan 14
Source: Thomson Reuters
GBP/USD
1.8
1.7
1.6
1.5
1.4
1.3
Jul 15
Apr 15
Jan 15
1.1
Oct 14
1.2
Jul 14
Since the start of 2017, crude oil has been trading in a
narrow range while downside was supported by OPEC and
non-OPEC members deal on production cut. But on the
other side, hopes of increased supply of shale oil from
resurgent U.S. revived prices back to above USD 50 per
barrel. These two main factors were largely neutralizing
each other, and are putting a floor and a cap to a price
ranging between USD 50-55 levels. Market data shows
that speculators have built long positions equivalent to
almost 1 billion barrels of crude across major contracts,
while short positions amount to just 111 million barrels.
The ratio of long to short positions has reached almost
9:1, the most bullish ratio seen since May 2014. And there
seems to be no new signs of short sales. Combined short
positions across Brent and WTI have fallen to their lowest
levels in seven months. Market positioning reflects
COMEX Gold (RHS)
abundance of hope on OPEC deal and a very modest fear
of increased supply from US shale oil producers. The huge
concentration of long positions pose a price risk in the
near term. Immediate support is seen around USD 48-50
levels, below which prices could fall towards USD 44
levels. Only a sustained trading above USD 52 could renew
upside potential towards USD 55-58 levels.
Apr 14
Gold's future direction will depend on the U.S. dollar, U.S.
monetary policy and long-term interest rate outlook. The
immigration ban by the U.S. added to risk-off sentiment
and boosted gold earlier. Changing political conditions in
EU due to upcoming elections in France and the
Netherlands may also impact prices of gold. In the nearterm, gold is likely to trade with positive bias and
expected to trade in the range of USD 1150-1280 per
ounce; while in the Indian market, similar range is seen
between Rs.27,800 – Rs.30,500 per 10 gms.
Dollar Index
Source: Bloomberg
Jan 14
Apart from the U.S. dollar, gold prices have also been
supported by good safe-haven demand from ETF's, due to
uncertainty over the U.S. policies and also as it was widely
expected that the U.S. Federal Reserve would keep rates
unchanged after they hiked rates by 25bps in the
December 2016. Gold has also remained supported by
economic reports from the U.S. and concerns over
implications of BREXIT process, as U.K. Prime Minister
Theresa May stated that a set of guidelines have been laid
down for the Brexit process and also that U.K. would exit
the Euro-zone fully and would then renegotiate a
different kind of free trade zone with the Euro leaders.
Feb-16
800
The major factor supporting gold prices has been the U.S.
dollar, which has come under selling-pressure after US
Dollar index hit a 17-year high of 103.82 earlier in January.
The dollar index moved downwards by more than 4% from
the 17-year peak and was down by 2.7% by end of the
month.
Oct 16
In line with our expectations, prices of gold bottomed-out
in the month of December 2016 and started the year 2017
on a positive note, closing the month of January with
more than 5% gains. Prices traded in the range of USD
1145-1220 per ounce and overall maintained their
positive momentum throughout the month, although
some correction was seen in the last week of the month.
Source: Thomson Reuters
34000
1400
32000
1300
USD/YEN
130
1200
125
1100
120
115
110
Jul 15
Apr 15
Jan-17
Dec-16
Oct-16
Nov-16
Jul-16
Sep-16
COMEX Gold (RHS)
95
90
Jan 14
MCX GOLD (LHS)
Source: Bloomberg
Aug-16
Jun-16
Feb-16
Apr-16
100
May-16
105
800
Mar-16
900
20000
Jan-16
22000
Jan 15
1000
24000
Oct 14
26000
Jul 14
28000
Apr 14
30000
Source: Thomson Reuters
February 2017 Investime 16
CORE RECOMMENDED FUNDS - EQUITY
LARGE CAP FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
AUM (Rs. Crs.) Dec-2016
Absolute Returns (%)
1 Month
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Ratios
SD Annualised (%)
Treynor
Exit Load
Category
Average
Birla SL Frontline
Equity Fund(G)
Franklin India
Bluechip Fund(G)
ICICI Pru Focused
BlueChip Eq Fund(G)
Reliance Top
200 Fund(G)
Mahesh Patil
Anand Radhakrishnan
& Roshi Jain
Manish Gunwani &
Ihab Dalwai
Ashwani Kumar &
Shailesh Raj Bhan
13,973
7,634
11,636
2,338
5.05
-2.11
0.29
4.84
-0.78
-0.23
4.45
-0.40
1.39
4.62
-2.13
1.23
5.16
-1.97
0.25
4.59
-0.75
-0.89
17.85
3.39
19.77
17.21
30-Aug-02
16.16
3.44
17.45
13.23
1-Dec-93
18.34
2.86
17.92
15.09
23-May-08
14.96
0.96
20.12
16.49
8-Aug-07
15.87
1.48
16.77
13.43
13.08
-1.41
12.01
10.48
15.45
0.85
13.97
0.74
14.66
0.74
17.20
0.91
1% on or before 1Y,
Nil after 1Y
1% on or before 1Y
1% on or before 1Y,
Nil after 1Y
1% on or before 1Y,
Nil after 1Y
NIFTY 50
MULTI CAP FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
AUM (Rs. Crs.) Dec-2016
Absolute Returns (%)
1 Month
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Ratios
SD Annualised (%)
Treynor
Exit Load
Category
Average
Franklin India High
Growth Cos Fund(G)
ICICI Pru Value
Discovery Fund(G)
Kotak Select
Focus Fund(G)
SBI BlueChip
Fund-Reg(G)
Anand Radhakrishnan
& Roshi Jain
Mrinal Singh &
Ihab Dalwai
Harsha Upadhyaya
Sohini Andani
5,116
14,919
7,181
10,104
7.02
0.01
4.41
3.08
-2.39
-1.02
6.28
-0.97
3.27
4.73
-3.59
-1.84
5.56
-2.05
1.79
5.68
-1.63
0.67
22.43
4.09
29.00
23.31
26-Jul-07
15.51
3.74
27.51
22.14
16-Aug-04
22.92
5.92
25.15
19.58
11-Sep-09
13.75
5.62
21.17
18.68
20-Jan-06
17.52
3.76
20.94
16.32
16.26
1.47
16.14
12.55
17.67
1.40
17.66
1.43
16.35
1.19
14.14
1.17
1% on or before 2Y
1% on or before
12M,Nil after 12M
1% on or before 1Y,
Nil after 1Y
1% on or before 1Y,
Nil after 1Y
NIFTY 500
Source: ACEMF
*Risk-free rate assumed to be 6.28%
**Standard Deviation and Treynor Ratio are calculated on absolute basis using 3 year historical data of monthly returns
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
February 2017 Investime 17
CORE RECOMMENDED FUNDS - EQUITY
MID / SMALL CAP FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
AUM (Rs. Crs.) Dec-2016
Absolute Returns (%)
1 Month
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Ratios
SD Annualised (%)
Treynor
Exit Load
Category
Average
Canara Rob Emerg
Eq Fund-Reg(G)
Franklin India
Prima Fund(G)
HDFC Mid-Cap
Opportunities
Fund(G)
Ravi Gopalakrishnan
& Kartik Mehta
R. Janakiraman &
Hari Shyamsunder
Chirag Setalvad &
Rakesh Vyas
Sohini Andani
1,298
4,545
12,848
2,970
8.47
-3.22
4.52
6.65
-3.07
2.39
6.13
-2.55
5.55
5.58
-5.50
0.18
6.47
-3.85
2.86
7.40
-3.13
4.34
20.87
9.60
37.38
27.70
11-Mar-05
22.25
8.31
31.74
25.63
1-Dec-93
26.17
10.12
31.27
24.62
25-Jun-07
17.35
11.34
30.39
27.32
29-Mar-05
20.02
8.01
30.86
23.75
23.40
8.35
26.89
16.75
22.47
1.93
16.98
2.00
17.07
2.06
15.74
NaN
1% on or before 1Y,
Nil after 1Y
1% on or before 1Y
1% on or before 1Y,
Nil after 1Y
1% on or before 1Y,
Nil after 1Y
SBI Magnum
MidCap Fund-Reg(G)
Nifty Free Float
Midcap 100
EQUITY LINKED SAVINGS SCHEMES (ELSS)
Benchmark
Scheme Names
Particulars
Fund Manager
AUM (Rs. Crs.) Dec-2016
Absolute Returns (%)
1 Month
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Ratios
SD Annualised (%)
Treynor
Category
Average
NIFTY 500
Birla SL Tax
Relief '96(G)
DSPBR Tax
Saver
Fund-Reg(G)
Franklin India
Taxshield(G)
Ajay Garg
Rohit Singhania
Lakshmikanth
Reddy &
R. Janakiraman
George Heber
Joseph &
Ihab Dalwai
Ashwani Kumar
2,433
1,494
2,377
3,561
5,871
4.02
-4.00
-0.25
6.90
-1.49
3.55
4.76
-2.28
0.42
4.47
-3.62
0.86
6.45
-1.20
4.62
5.83
-2.72
1.30
5.68
-1.63
0.67
13.94
4.15
23.96
19.51
10-Mar-08
24.49
8.48
25.03
20.52
18-Jan-07
15.06
3.67
22.62
17.71
10-Apr-99
14.26
3.62
20.94
17.85
19-Aug-99
20.35
1.00
28.18
20.88
21-Sep-05
17.15
3.54
20.87
16.39
16.26
1.47
16.14
12.55
15.98
1.20
16.77
1.22
14.43
1.25
16.16
1.02
21.46
1.18
ICICI Pru LT
Reliance Tax
Equity Fund
Saver
(Tax Saving)(G) (ELSS) Fund(G)
Source: ACEMF
*Risk-free rate assumed to be 6.28%
**Standard Deviation and Treynor Ratio are calculated on absolute basis using 3 year historical data of monthly returns
Lock-in of 3 years (for ELSS)
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
February 2017 Investime 18
CORE RECOMMENDED FUNDS - EQUITY
ARBITRAGE FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
Edelweiss
Arbitrage
Fund-Reg(G)
Bhavesh Jain &
Kartik Soral
AUM (Rs. Crs.) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Year
3 Years
5 Years
Inception Date
Exit Load
ICICI Pru EquityArbitrage
Fund(G)
IDFC
Arbitrage
Fund-Reg(G)
Kayzad Eghlim &
Yogik Pitti &
Manish Banthia Meenakshi Dawar
Kotak Equity
Arbitrage
Scheme(G)
SBI Arbitrage
Opportunities
Fund-Reg(G)
Deepak Gupta
Neeraj Kumar
Category
Average
Crisil Liquid
Fund Index
1,893
6,654
2,870
6,005
822
5.40
6.19
5.62
6.26
5.33
6.02
5.32
6.17
5.01
5.91
5.34
6.20
6.46
6.64
6.48
7.02
6.18
6.62
7.21
8.10
21-Dec-06
6.47
6.84
7.48
8.26
29-Sep-05
6.10
6.51
7.18
8.02
03-Nov-06
6.45
6.81
7.23
8.02
7.46
7.77
8.24
8.44
27-Jun-14
6.59
6.89
7.42
8.52
30-Dec-06
0.25% on or
before 30D,
Nil after 30D
0.25% on or
before 1M,
Nil after 1M
0.25% on or
before 1M
0.25% on or
before 30D,
Nil after 30D
0.50% on or
before 1M,
Nil after 1M
BALANCED FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
AUM (Rs. Crs.) Dec-2016
Absolute Returns (%)
1 Month
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Exit Load
Exposure (%)
Debt
Equity
Cash & Equivalent
Birla SL
Balanced '95
Fund(G)
Mahesh Patil &
Dhaval Shah
DSPBR
Balanced
Fund-Reg(G)
HDFC
Balanced
Fund(G)
ICICI Pru
Balanced
Fund(G)
Reliance Reg
Savings FundBalanced Plan(G)
Category
Average
CRISIL Balanced
Fund - Aggressive
Index
Atul Bhole & Chirag Setalvad & Sankaran Naren Sanjay Parekh &
Vikram Chopra
Rakesh Vyas
& Atul Patel
Amit Tripathi
5,250
2,530
8,313
5,098
4,020
4.59
-1.04
1.99
6.39
-1.61
4.54
3.92
-0.33
4.43
4.39
2.29
7.80
4.67
-0.68
2.29
4.05
-1.08
2.58
3.40
0.61
1.70
17.66
6.20
21.52
16.52
10-Feb-95
20.21
8.19
22.06
14.74
27-May-99
19.39
6.69
21.66
17.51
11-Sep-00
24.49
8.38
21.66
18.78
3-Nov-99
13.95
5.14
20.58
16.70
10-Jun-05
15.81
4.67
18.26
14.87
13.61
2.85
12.30
10.50
Nil upto 15% of
units,1% in
excess of limit on
or before 365D
and Nil after
365D
26.56
65.70
7.75
NIL upto 10% of NIL upto 15% of
Nil on 10% of
Nil for 10% of
investment
investment and units within 1Y investments and
within 12M, 1% 1% in excess of and 1% for more 1% for remaining
exceding 10% of
15% of
than 10% of units on or before 12M,
investment
investment on or within 1Y, Nil
Nil after 12M
within 12M, NIL
before 1Y, NIL
after 1Y
after 12M
after 1Y
23.30
72.27
4.43
25.41
66.35
8.24
22.48
70.22
7.30
25.17
65.85
8.98
Source: ACEMF
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
February 2017 Investime 19
CORE RECOMMENDED FUNDS - DEBT
LIQUID FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Month End Average Maturity (Days) Dec-2016
Simple Annualised Returns (%)
1 Month
3 Months
6 Months
CAGR (%)
1 Year
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
SOV
Axis Liquid
Fund(G)
Devang Shah &
Aditya Pagaria
Birla SL FRF-Short
Term Plan(G)
ICICI Pru Money
Market Fund(G)
Invesco India
Liquid Fund(G)
Kaustubh Gupta & Rahul Goswami &
Sunaina da Cunha
Nikhil Kabra
Category
Average
Crisil Liquid
Fund Index
9,380
57
4,093
47
7,980
53
Krishna Venkat
Cheemalapati &
Nitish Sikand
5,202
49
6.64
6.66
6.83
6.65
6.61
6.84
6.52
6.59
6.82
6.51
6.60
6.81
6.36
6.43
6.64
6.09
6.46
6.64
7.55
9-Oct-09
7.64
13-Oct-05
7.58
8-Mar-06
7.55
17-Nov-06
7.33
7.46
63.77
-16.42
52.65
91.19
0.42
5.54
3.57
90.65
-31.30
28.38
78.64
-1.61
9.63
LIQUID FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Month End Average Maturity (Days) Dec-2016
Simple Annualised Returns (%)
1 Month
3 Months
6 Months
CAGR (%)
1 Year
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
SOV
Kotak
Floater-ST(G)
Reliance Liquid- Sundaram Money
Tata Money
Treasury Plan(G)
Fund-Reg(G) Market Fund-Reg(G)
Deepak Agrawal
Anju Chhajer
10,439
55
Category
Average
Crisil Liquid
Fund Index
Amit Somani
20,651
62
Dwijendra
Srivastava &
Siddharth Chaudhary
5,918
40
6.58
6.65
6.86
6.55
6.59
6.82
6.52
6.56
6.78
6.61
6.62
6.83
6.36
6.43
6.64
6.09
6.46
6.64
7.61
14-Jul-03
7.57
9-Dec-03
7.50
8-Dec-05
7.56
1-Sep-04
7.33
7.46
0.39
2.55
2.89
81.07
-14.51
14.47
0.34
64.16
-7.64
21.60
69.08
3.43
18.96
5,505
47
80.52
-22.32
27.26
Source: ACEMF
No Exit Load
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
February 2017 Investime 20
CORE RECOMMENDED FUNDS - DEBT
ULTRA SHORT TERM FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Month End Average Maturity (Days) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
A/Equiv & Others
SOV
Exit Load
Birla SL Savings
Axis Treasury
Fund(G)
Advantage Fund(G)
Category
DHFL Pramerica Franklin India Ultra Average
Short Bond FundUltra ST(G)
Super Inst(G)
Crisil Liquid
Fund Index
Devang Shah &
Aditya Pagaria
Kaustubh Gupta &
Sunaina da Cunha
Kumaresh
Ramakrishnan
Sachin Padwal-Desai
& Pallab Roy
2351.11
186
17,231
606
2,245
150
6,979
325
7.30
7.49
8.43
8.66
7.36
7.52
9.04
9.32
7.55
7.85
6.46
6.64
8.32
8.36
8.48
8.88
9-Oct-09
9.63
9.14
9.32
9.43
16-Apr-03
8.39
8.57
8.92
9.31
4-Jul-08
9.85
9.69
9.82
9.93
18-Dec-07
8.60
8.43
8.69
8.76
7.46
7.77
8.24
8.44
5.99
7.21
61.60
19.90
8.42
8.42
51.42
3.45
1.45
13.41
Nil
4.55
1.12
82.47
-4.80
33.48
2.02
27.50
1.54
19.12
Nil
Nil
3.61
Nil
ULTRA SHORT TERM FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Month End Average Maturity (Days) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
A/Equiv & Others
SOV
Exit Load
UTI Treasury
HDFC FRIF-Short ICICI Pru Flexible Reliance Money
Income Plan(G) Manager Fund(G) Advantage Fund(G)
Term Plan(G)
Shobhit Mehrotra Rahul Goswami &
& Rakesh Vyas
Rohan Maru
Amit Tripathi &
Anju Chhajer
Sudhir Agarwal
Category
Average
Crisil Liquid
Fund Index
13,611
548
19,116
503
17,278
354
11,253
199
8.22
8.42
8.62
8.67
7.60
7.78
8.01
8.29
7.55
7.85
6.46
6.64
9.23
8.92
9.11
9.22
23-Oct-07
9.36
8.97
9.18
9.33
27-Sep-02
8.73
8.49
8.66
9.00
20-Mar-07
9.01
8.82
9.00
9.22
23-Apr-07
8.60
8.43
8.69
8.76
7.46
7.77
8.24
8.44
10.13
12.62
70.36
3.11
0.39
2.05
Nil
18.25
6.58
54.31
4.85
9.13
7.10
77.87
4.23
17.61
2.08
66.23
7.23
15.20
Nil
1.42
Nil
3.99
Nil
Source: ACEMF
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
February 2017 Investime 21
CORE RECOMMENDED FUNDS - DEBT
SHORT TERM FUNDS (CONSERVATIVE)
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
"Month End Average Maturity (Years) Dec-2016"
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
A/Equiv & Others
SOV
Exit Load
Axis Short
Term Fund(G)
Birla SL Short
Term Fund(G)
HDFC Short Term
Opportunities Fund(G)
Devang Shah
Prasad Dhonde
Anil Bamboli &
Rakesh Vyas
Category
Average
Crisil Short
Term Bond Index
5,642
3.00
15,595
2.95
8,868
1.61
9.81
9.52
9.28
9.90
8.60
8.71
8.67
9.07
9.06
9.31
10.09
8.84
9.40
9.07
22-Jan-10
10.49
9.45
10.14
9.83
03-Mar-97
9.56
8.85
9.54
9.37
25-Jun-10
9.83
8.72
9.38
9.15
10.15
9.16
9.70
9.27
4.37
8.09
68.33
2.90
1.36
9.86
52.21
4.18
6.34
4.55
70.88
3.85
14.32
25.46
11.81
Nil
Nil
Nil
SHORT TERM FUNDS (MODERATE / AGGRESSIVE)
Benchmark
Scheme Names
Particulars
Fund Manager
AUM (Rs. Crs.) Dec-2016
Month End Average
Maturity (Years) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
SOV
Exit Load
Birla SL ST
Opportunities
Fund(G)
Birla SL Treasury DHFL Pramerica
Optimizer
Short Maturity
Plan(G)
Fund(G)
Kaustubh Gupta & Prasad Dhonde &
Sunaina da Cunha
Kaustubh Gupta
ICICI Pru
Short Term
Plan(G)
Reliance STF(G)
Nitish Gupta
Manish Banthia
Prashant Pimple
Category
Average
Crisil Short
Term Bond
Index
5,414
8,496
1,521
8,967
16,183
5.41
6.32
2.52
3.68
3.15
9.40
10.39
10.02
11.18
9.13
9.82
9.90
10.25
8.63
9.30
8.67
9.07
9.06
9.31
11.86
9.69
10.48
10.49
12.78
10.24
11.22
10.60
10.35
9.06
9.72
9.41
11.33
9.34
10.33
9.49
10.13
8.80
9.87
9.32
9.83
8.72
9.38
9.15
10.15
9.16
9.70
9.27
9-May-03
05-May-08
27-Jan-03
25-Oct-01
18-Dec-02
23.11
5.49
27.55
2.93
40.83
4.20
9.91
32.23
0.56
47.16
7.24
3.30
38.46
20.87
11.70
13.93
1.86
50.30
1.67
30.28
0.68
13.63
54.03
5.07
20.51
Nil upto 15% of
units,1% in excess
of limit on or
before 180D and
Nil after 180D
Nil
Nil for 10% of
investment and
0.75% for
remaining
Investment on or
before 6M,
Nil after 6M
0.25% on or
before 7D,
Nil after 7D
Source: ACEMF
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
Nil
February 2017 Investime 22
CORE RECOMMENDED FUNDS - DEBT
ACCRUAL / CREDIT OPPORTUNITIES FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Average Maturity (Years) Dec-2016
Month End YTM (%) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
A/Equiv & Others
SOV
Unrated
Exit Load
Birla SL Medium DSPBR Income HDFC Corporate
Term Fund(G) Opportunities Debt Opportunities
Fund-Reg(G)
Fund-(G)
HDFC
STP(G)
Reliance Reg
Savings FundDebt Plan(G)
Category
Average
Crisil Short
Term Bond
Index
Maneesh Dangi Laukik Bagwe & Shobhit Mehrotra Anil Bamboli & Prashant Pimple
Pankaj Sharma & Rakesh Vyas
Rakesh Vyas
9,348
5.72
8.85
5,849
3.00
8.99
10,076
3.81
8.88
3,978
1.82
8.56
8,276
2.40
9.11
9.77
10.55
9.61
10.28
10.09
11.13
9.11
9.81
8.76
10.11
8.67
9.07
9.06
9.31
11.45
10.20
10.94
10.78
25-Mar-09
11.22
9.97
10.52
9.68
13-May-03
11.76
9.85
25-Mar-14
10.48
9.68
10.32
9.52
28-Feb-02
10.56
9.37
10.10
9.50
10-Jun-05
9.83
8.72
9.38
9.15
10.15
9.16
9.70
9.27
15.07
5.44
6.91
4.67
2.24
28.31
1.44
18.46
3.12
36.10
1.31
20.38
1.88
1.45
42.95
5.13
18.25
3.15
22.91
33.10
8.27
22.75
3.84
22.25
0.03
2.31
32.14
11.05
10.08
5.29
19.41
1.38
3.77
Nil upto 15% of Nil for 10% of
Nil for 15% of
Nil for 15% of
Nil for 10% of
units,1% in
investment and
Units and for
Units and 0.75% units and 1% for
excess of limit on 1% for remaining
remaining
for remaining remaining units
or before 365D Investment on or investment 2% on investment on or on or before
and Nil after
before 12M, Nil or before 12M, 1% before 12M, Nil 12M, Nil after
365D
after 12M
after 12M but on
after 12M
12M
or before 24M,
0.50% after 24M
but on or before
36M, Nil after 36M
DYNAMIC BOND FUNDS
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Average Maturity (Years) Dec-2016
Month End YTM (%) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Exit Load
Birla SL
HDFC High
ICICI Pru
Dynamic Bond Interest Fund- Dynamic Bond
Fund-Ret(G) Dynamic Plan(G)
Fund(G)
Reliance
Dynamic
Bond(G)
Rahul Goswami Prashant Pimple
Benchmark
Category
Tata Dynamic Average
Crisil
Bond FundComposite Bond
Plan-Reg(G)
Fund Index
Maneesh Dangi
Anil Bamboli &
Rakesh Vyas
15,462
18.24
7.75
2,450
12.51
7.42
1,668
7.16
7.63
4,314
12.22
7.23
1,215
6.73
6.68
7.24
9.89
8.69
11.54
10.28
11.67
11.21
12.49
11.39
11.65
11.33
11.83
11.79
12.64
15.25
10.28
12.13
10.63
27-Sep-04
15.91
9.16
12.11
10.23
28-Apr-97
14.27
10.02
11.73
10.03
12-Jun-09
14.93
9.09
11.69
10.08
15-Nov-04
12.36
8.82
10.99
10.24
03-Sep-03
13.60
9.02
10.93
9.79
13.68
10.46
12.08
9.77
Nilupto15%of
units,0.50%inexcess
oflimitonorbefore
90DandNilafter90D
0.50% on or
before 6M,
Nil after 6M
1% on or before 1% on or Before
3M, Nil after 3M 12M, Nil After
12M
Source: ACEMF
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
Akhil Mittal
0.50% on or
before 180D,
Nil after 180D
February 2017 Investime 23
CORE RECOMMENDED FUNDS - DEBT
INCOME FUNDS
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Average Maturity (Years) Dec-2016
Month End YTM (%) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Exit Load
Axis Income
Fund(G)
Birla SL Income HDFC Income
Plus(G)
Fund(G)
Devang Shah
Prasad Dhonde Shobhit Mehrotra
& Rakesh Vyas
IDFC SSIFInvest-Reg(G)
Kotak Bond
Fund - Reg(G)
Suyash
Choudhary
Abhishek Bisen
Category
Average
Crisil
Composite
Bond
Fund Index
222
5.80
8.41
2,442
14.98
7.20
2,297
17.46
7.32
1,590
5.45
6.65
3,453
12.99
7.21
9.00
11.04
9.86
12.23
7.19
10.39
12.21
12.78
9.59
11.58
9.28
14.89
11.79
12.64
12.28
8.63
11.14
16.15
8.84
11.66
9.48
21-Oct-95
15.45
8.91
11.83
9.31
11-Sep-00
13.01
8.51
11.25
9.80
14-Jul-00
15.89
8.78
11.53
9.46
25-Nov-99
12.61
9.26
10.89
9.42
13.68
10.46
12.08
9.77
Nil
Nil
Nil for 10% of
investment and
1% for remaining
investment on or
before 365D, Nil
after 365D
Nil
28-Mar-12
Nil for 10% of
investment and
1% for remaining
investment on or
before 12M, Nil
after 12M
LONG TERM GILT
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Average Maturity (Years) Dec-2016
Month End YTM (%) Dec-2016
Simple Annualised Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Exit Load
Birla SL G-SecLT(G)
ICICI Pru GiltInvest-PF(G)
Prasad Dhonde & Manish Banthia &
Kaustubh Gupta
Anuj Tagra
Kotak GiltInvest-Reg(G)
Reliance Gilt
Securities
Fund(G)
Abhishek Bisen
Prashant Pimple
Category
Average
I-Sec
Li-Bex
736
12.88
6.91
691
13.96
7.06
504
13.09
7.00
1,414
11.78
6.82
11.50
12.44
13.88
14.36
13.94
14.12
15.31
15.53
14.05
14.09
-7.84
4.40
17.29
9.33
12.71
9.98
28-Oct-99
Nil
19.76
10.56
14.58
10.57
19-Nov-03
Nil
17.98
9.97
13.08
10.10
29-Dec-98
Nil
17.89
10.60
13.81
11.17
22-Aug-08
Nil
16.87
9.86
12.92
10.32
11.01
8.42
12.14
9.82
I-Sec
Composite
Gilt Index
Source: ACEMF
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
February 2017 Investime 24
CORE RECOMMENDED FUNDS - DEBT
MONTHLY INCOME PLANS (MIP)
Benchmark
Scheme Names
Particulars
Fund Manager
Month End AUM (Rs. Crs.) Dec-2016
Average Maturity (Years) Dec-2016
Absolute Returns (%)
3 Months
6 Months
CAGR (%)
1 Year
2 Years
3 Years
5 Years
Inception Date
Credit Quality (%) Dec-2016
AA/Equiv
AA+
AAA & Equiv
Cash & Equivalent
A/Equiv & Others
SOV
Exit Load
Exposure (%)
Debt
Equity
Cash & Equivalent & Others
Birla SL MIP IISavings 5(G)
Birla SL MIP IIWealth 25(G)
Satyabrata Mohanty Satyabrata Mohanty
& Pranay Sinha
& Pranay Sinha
Category
Average
HDFC MIPLTP(G)
Reliance
MIP(G)
Prashant Jain &
Shobhit Mehrotra
Sanjay Parekh &
Amit Tripathi
Crisil MIP
Blended
Index
284
12.79
1,431
11.49
3,676
11.92
2,490
9.08
1.83
5.13
0.90
4.91
1.72
5.82
1.58
4.64
1.35
4.39
2.45
5.31
14.68
9.25
12.85
10.86
22-May-04
19.87
9.91
16.73
13.74
22-May-04
17.74
8.16
14.71
11.55
26-Dec-03
12.67
6.79
13.37
10.96
12-Jan-04
12.65
7.65
12.02
10.19
13.76
8.75
12.21
10.03
1.15
7.21
6.30
7.39
68.43
0.80
0.58
3.43
4.77
2.31
58.89
15.11
0.89
5.48
3.38
4.99
44.57
8.20
6.78
17.78
5.78
7.87
28.02
1% on or before
Nil upto 15% of
Nil for 15% of
540D, Nil after 540D units,1% in excess of investment and 1%
limit on or before
for remaining
365D and Nil after
Investment on or
365D
before 1Y,
Nil after 1Y
84.18
9.52
6.30
66.71
28.24
5.05
71.77
24.07
4.15
NIL for 10% of
investment, 1% if
exceeding 10% of
investment on or
before 12M,
Nil after 12M
75.85
18.04
6.11
Source: ACEMF
Performance as on January 31, 2017
Benchmark: Category benchmark indices considered for respective categories
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
Mutual Funds investments are subject to market risks, read all scheme related documents carefully. There is no assurance or guarantee that the objectives of the Scheme will be
achieved. Investors are requested to read the Scheme Information Document, Statement of Additional Information and Key information Memorandum for Scheme specific relevant
details & risk factors. Aditya Birla Money Mart Limited (ABMML), make no warranties or representations express or implied on such product. ABMML accept no liability for any
damages or loss however caused in connection with the use of or reliance on product or ralated services.
February 2017 Investime 25
SATELLITE FUNDS
EQUITY FUNDS
Birla S L Advantage Fund (G)
Birla SL Top 100 Fund(G)
Canara Robeco Infrastructure Fund-Reg(G)
DSPBR Micro-Cap Fund-Reg(G)
Franklin Build India Fund(G)
Franklin India Smaller Cos Fund(G)
ICICI Pru Balanced Advantage Fund(G)
ICICI Pru Top 100 Fund(G)
Kotak 50(G)
Mirae Asset Emerging BlueChip-Reg(G)
MOSt Focused Multicap 35 Fund-Reg(G)
Reliance Banking Fund(G)
Reliance Small Cap Fund(G)
DEBT FUNDS
ICICI Pru Income Opportunities Fund(G)
HDFC Banking and PSU Debt Fund-Reg(G)
Kotak Medium Term Fund(G)
Please refer to RISKOMETER on page no 30 for all Risk related information about the above mentioned schemes.
February 2017 Investime 26
MACRO INDICATORS
Yield
Change [bps]
Benchmark Sec
31-Jan-17
30-Dec-16
91D TB
6.20
6.24
-4
182D TB
6.19
6.31
-12
-15
364D TB
6.17
6.33
G-Sec 1 Yr
6.27
6.36
-9
G-Sec 5 Yr
6.56
6.65
-9
G-Sec 10 Yr
6.41
6.51
-10
CD Rates (%)
Tenure
CP Rates (%)
Change [bps]
31-Jan-17
30-Dec-16
31-Jan-17
Change [bps]
30-Dec-16
1 Month
6.23
6.27
-4
6.73
6.63
10
3 Month
6.43
6.28
15
7.08
6.71
37
1 Year
6.54
6.58
-3
7.50
7.34
16
OIS - MIBOR
Tenure
MIFOR Swaps
Change [bps]
31-Jan-17
30-Dec-16
31-Jan-17
Change [bps]
30-Dec-16
1 year
6.17
6.16
1
6.28
6.13
3 year
6.09
6.06
3
6.19
6.27
15
-8
5 year
6.30
6.24
6
6.60
6.68
-8
AAA CORPORATE BOND YIELD AND SPREAD
Yield
Tenure
Spread(bps)
Change [bps]
31-Jan-17
30-Dec-16
31-Jan-17
Change [bps]
30-Dec-16
1 Year
6.72
6.81
-9
45
45
0
5 Year
7.10
7.25
-15
54
60
-6
10 Year
7.30
7.46
-16
89
95
-6
AA CORPORATE BOND YIELD AND SPREAD
Yield
Tenure
Spread(bps)
Change [bps]
31-Jan-17
30-Dec-16
31-Jan-17
Change [bps]
30-Dec-16
1 Year
7.19
7.24
-5
92
88
4
5 Year
7.57
7.71
-14
101
106
-5
10 Year
7.85
7.96
-11
144
145
-1
Rs. Crs
Jan-17
Dec-16
Rs. Crs
Jan-17
Dec-16
Average Repo
2,241
4,891
Average MSF Borrowings
331
1,120
Average Reverse Repo
12,761
21,630
Particulars (in%)
31-Jan-17
30-Dec-16
Indicators
Latest
Previous
Call rate
6.02
6.10
WPI [Dec-16]
3.39
3.15
MIBOR O/N
6.25
6.25
CPI [Dec-16]
3.41
3.63
MIBID O/N
6.25
6.25
IIP [Nov-16]
5.7
-1.9
February 2017 Investime 27
MACRO INDICATORS
31-Jan-17
(bps)
G-Sec Spread
30-Dec-16
(bps)
USD/INR
Forward
NDF
Spread
1 Month
67.61
67.54
0.07
5Y - 1Y
28
29
3 Month
68.18
68.00
0.17
10Y - 5Y
-12
-14
6 Month
68.90
68.73
0.16
15 -10Y
63
69
12 Month
70.33
70.28
0.05
30 -15Y
-5
-9
Data as on 6th January
Yield
Tax Free Bonds
31-Jan-17
Currency
30-Dec-16
FOREX
31-Jan-17
67.87
30-Dec-16
8.20 % NHAI 2022
5.99%
6.34%
USD/INR
8.00% IRFC 2022
6.11%
6.09%
67.92
EUR/USD
1.06
1.05
8.20% PFC 2022
6.18%
6.18%
USD/Yen
113.31
116.91
8.10% HUDCO 2022
6.07%
6.24%
GBP/USD
1.25
1.23
7.93% REC 2022
6.29%
6.16%
USD/SEK
6.88
6.94
Swap Rate
Currency
1 Year
5 Year
10 year
USD
1.21
1.93
2.33
EUR
-0.32
0.14
0.76
3 M Ago
53.76
44.66
55.70
56.89
45.58
1208.60
1179.70
1302.10
Silver ($/Oz)
17.51
16.50
18.66
Aluminium ($/ton)
1819.00
1702.5
1727
Copper ($/ton)
5991.00
5580
5098
YTD
FII Inflows (Rs. Crs.)
Jan-17
Dec-16
YTD
0.39
0.96
1.36
0.03
0.12
0.29
Data as on 6th January
Dec-16
1 M Ago
52.81
Gold ($/Oz)
JPY
Jan-17
31-Jan-17
Brent Crude ($/bbl)
GBP
MF Inflows (Rs. Crs.)
Commodity
Nymex Crude ($/bbl)
Equity
5,234
9,179
5,234
Equity
-1177
-8,176
-1177
Debt
31,105
23,396
31,105
Debt
-2319
-18,935
-2319
Indicator
Latest
Previous
Indicator
Latest
Previous
Repo
6.25
6.25
CRR
4.00
4.00
Rev Repo
5.75
5.75
SLR
20.50
20.50
Bank Rate
6.75
6.75
MSF
6.75
6.75
30-Sep-16
10 Year Benchmark Yields [%]
31-Jan-17
30-Dec-16
30-Nov-16
28-Oct-16
US
2.45
2.43
2.37
1.85
1.61
UK
1.42
1.24
1.42
1.26
0.75
-0.08
Date/Countries
Japan
0.09
0.05
0.02
-0.04
Spain
1.59
1.39
1.55
1.23
0.88
Germany
0.44
0.21
0.28
0.17
-0.12
France
1.04
0.68
0.76
0.47
0.12
Italy
2.27
1.83
1.99
1.65
1.19
11.63
Brazil
10.94
11.46
11.90
11.43
China
3.36
3.07
2.94
2.73
2.77
India
6.41
6.52
6.25
6.89
6.96
February 2017 Investime 28
OTHER OFFERINGS
EQUITY PMS
Name
Portfolio
Manager
Aditya Birla Money Core & Satellite
Vivek Mahajan
Benchmark Index: NIFTY 100
ASK Growth
Gaurav Misra
Benchmark Index: NIFTY 50
ASK Indian Entrepreneur Portfolio (IEP)
Sumit Jain
Benchmark Index: S&P BSE 500
ASK India Select
Sudhir Kedia
Benchmark Index: S&P BSE 100
Ask Life
Gaurav Misra
Benchmark Index: S&P BSE 200
Ask Strategic
Sudhir Kedia
Benchmark Index: S&P BSE 200
Birla SL PMS Core Equity Portfolio (CEP) Vishal Gajwani &
Natasha Lulla
Benchmark Index: NIFTY 500
Edelweiss PMS Hexagon Portfolio
Sahil Shah
Benchmark Index: S&P BSE 200
Motilal Oswal NTDOP
Manish Sonthalia
Benchmark Index:
Nifty Free Float Midcap 100
Motilal Oswal Value Strategy
Manish Sonthalia
Benchmark Index: NIFTY 50
AUM
(Rs.
in
Crs)
49.64
1,240.77
5,112.80
1,960.07
318.55
221.99
2,501.97
87.73
5,200
2,500
CAGR (%)
Absolute (%)
Since
Inception
1M
3M
6M
1 Yr
2 Yr
3 Yr
5 Yr
8.61
5.28
8.54
4.59
6.28
5.65
8.23
5.31
6.06
5.41
8.74
5.41
6.93
-4.75
-0.85
-0.87
-0.75
-6.31
-1.84
-3.46
-1.08
-4.65
-1.55
-2.07
-1.55
-7.35
4.72
-0.16
1.22
-0.89
-3.39
0.64
-0.92
-0.27
-3.07
0.24
0.16
0.24
-2.18
29.05
15.08
23.71
13.08
18.03
16.29
18.15
15.29
11.06
15.84
20.03
15.84
16.53
NA
0.17
10.94
-1.41
8.30
1.37
10.45
-0.40
2.88
0.82
10.00
0.82
10.89
NA
13.86
29.08
12.01
28.03
15.83
30.89
13.30
18.90
15.11
30.55
15.11
41.93
NA
11.71
21.85
10.48
24.78
12.21
25.67
11.15
17.97
12.01
25.74
12.01
33.33
19.66
2.05
21.36
12.27
20.24
8.26
19.18
7.22
18.25
9.10
16.80
9.10
20.60
5.68
7.10
5.41
7.66
7.40
-1.63
-5.20
-1.55
-5.74
-3.13
0.67
4.00
0.24
-0.56
4.34
16.26
15.60
15.84
30.38
23.40
1.47
NA
0.82
14.81
8.35
16.14
NA
15.11
37.57
26.89
12.55
NA
12.01
32.46
16.75
7.74
16.30
9.10
18.03
6.76
5.42
4.59
-3.46
-0.75
-3.75
-0.89
14.80
13.08
-0.84
-1.41
21.12
12.01
15.02
10.48
24.68
12.27
Inception
Date
Apr/15
Jan/01
Jan/10
Jan/10
Sep/08
Dec/09
Apr/08
Sep/15
Dec/07
Mar/03
Performance as on January 31, 2017
The performance details mentioned above are as shared by the respective portfolio managers.
SECONDARY BOND MARKET OFFERINGS
Available Bonds
Magma Fincorp Ltd.
Cholamandalam Investment & Co Ltd
Indian Overseas Bank (Call Option- Feb 2020)
Bank of India (Call Option- June 2021)
IDBI Bank (Call Option- Jan 2022)
Andhra Bank (Call Option- Aug 2021)
Tenure
Perpetual
Perpetual
Perpetual
Credit Rating
Indicative Yield (%)*
AAAABBB
A+
A
AA-
11.8
10.15
10.75
9.50
10.60
9.55
*Indicative Yield as on February 10, 2017
Contact us for more offerings
February 2017 Investime 29
RISKOMETER
RISKOMETER : SEBI's Mutual Fund Advisory committee had concurred that the
prevailing 3-level classification of scheme risk determined by colour coding
(brown for high risk, yellow for medium risk and blue for low risk) is inadequate
to calibrate risk adequately across all mutual fund products. Hence there was a
need to increase the levels of risk depiction from 3 to 5 to accommodate a finer
categorization of risk across the spectrum of MF products. Therefore the
colour coding has been replaced by a 'Riskometer' as an easier to understand
pictorial risk grading system.
Levels of Risk
Risk Level
Interpretation
1. Low Level
Principal At Low Risk
2. Moderately Low
Principal at moderately low risk
3. Moderate
Principal at moderate risk
4. Moderately High
Principal at moderately high risk
5. High
Principal at high risk
Scheme Names
Axis Liquid Fund(G)
Birla SL FRF-Short Term Plan-Ret(G)
ICICI Pru Money Market-Ret(G)
Invesco India Liquid-Reg(G)
Kotak Floater-ST(G)
Reliance Liquid-Treasury-Ret(G)
Sundaram Money Fund-Ret(G)
Tata Money Market(G)
Riskometer
Scheme Names
Axis Income Fund(G)
Birla SL Dynamic Bond Fund-Ret(G)
Birla SL G-Sec-LT(G)
Birla SL Income Plus(G)
Birla SL Medium Term Fund(G)
Birla SL MIP II-Savings 5(G)
Birla SL ST Opportunities Fund(G)
Birla SL Treasury Optimizer Plan-Ret(G)
DHFL Pramerica Short Maturity Fund(G)
DSPBR Income Opportunities Fund-Reg(G)
HDFC Corporate Debt Opportunities Fund-(G)
HDFC High Interest Fund-Dynamic Plan(G)
HDFC Income Fund(G)
HDFC STP(G)
ICICI Pru Dynamic Bond Fund(G)
ICICI Pru Equity-Arbitrage Fund(G)
ICICI Pru Gilt-Invest-PF(G)
ICICI Pru Income Opportunities Fund(G)
ICICI Pru Short Term Plan(G)
Riskometer
IDFC SSIF-Invest-Reg(G)
Kotak Bond Fund - Plan A(G)
Kotak Gilt-Invest-Reg(G)
Kotak Medium Term Fund(G)
Reliance Dynamic Bond(G)
Reliance Gilt Securities Fund(G)
Reliance MIP(G)
Reliance Reg Savings Fund-Debt Plan(G)
Tata Dynamic Bond Fund-Plan A(G)
Scheme Names
Scheme Names
Axis Short Term Fund(G)
Axis Treasury Advantage Fund(G)
Birla SL Savings Fund(G)
Birla SL Short Term Fund(G)
DHFL Pramerica Ultra ST(G)
Edelweiss Arbitrage Fund-Reg(G)
HDFC Banking and PSU Debt Fund-Reg(G)
HDFC FRIF-Short Term Plan(G)
Riskometer
HDFC Short Term Opportunities Fund(G)
ICICI Pru Flexible Income Plan(G)
IDFC Arbitrage Fund-Reg(G)
Kotak Equity Arbitrage Scheme(G)
Reliance Money Manager Fund(G)
Reliance STF(G)
SBI Arbitrage Opportunities Fund-Reg(G)
SBI Ultra Short Term Debt Fund(G)
UTI Treasury Advantage-Reg(G)
Scheme Names
Canara Rob Infrastructure Fund-Reg(G)
Franklin Build India Fund(G)
Reliance Banking Fund(G)
Riskometer
Birla SL Advantage Fund(G)
Birla SL Balanced '95 Fund(G)
Birla SL Frontline Equity Fund(G)
Birla SL MIP II-Wealth 25(G)
Birla SL Tax Relief '96(G)
Birla SL Top 100 Fund(G)
Canara Rob Emerg Equities Fund-Reg(G)
DSPBR Balanced Fund-Reg(G)
DSPBR Micro-Cap Fund-Reg(G)
DSPBR Tax Saver Fund-Reg(G)
Franklin India Bluechip Fund(G)
Franklin India High Growth Cos Fund(G)
Franklin India Prima Fund(G)
Franklin India Smaller Cos Fund(G)
Franklin India Taxshield(G)
HDFC Balanced Fund(G)
HDFC Mid-Cap Opportunities Fund(G)
HDFC MIP-LTP(G)
ICICI Pru Balanced Advantage Fund(G)
ICICI Pru Balanced Fund(G)
ICICI Pru Focused BlueChip Equity Fund(G)
ICICI Pru LT Equity Fund (Tax Saving)(G)
ICICI Pru Value Discovery Fund(G)
ICICI Pru Top 100 Fund(G)
Kotak 50(G)
Kotak Select Focus Fund(G)
Riskometer
Mirae Asset Emerging BlueChip-Reg(G)
Reliance Reg Savings Fund-Balanced Plan(G)
Reliance Small Cap Fund(G)
Reliance Tax Saver (ELSS) Fund(G)
Reliance Top 200 Fund (G)
SBI BlueChip Fund-Reg(G)
SBI Magnum MidCap Fund-Reg(G)
February 2017 Investime 30
DISCLAIMER
Printed, published by Aditya Birla Money Mart Limited, One India Bulls Centre, Tower 1, 18th Floor, Jupiter Mill Compound, 841,
Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013. Tel. No: 91-22-4356 7000 Fax no: 91-22-4356 7266, Corporate
Identity Number (CIN): U61190GJ1997PLC062406. Editor: Ananth Sandeep Sundur.
Designed and Printed at Micro Graphics, Graphic Designers and Commercial Printers, 137, Pragati Industrial Estate, N. M. Joshi
Marg, Lower Parel, Mumbai - 400011, Tel.: 66634670/71.
For advertisement contact: Michelle Banerjee, Email:[email protected].
The information published is as per the data provided by various Mutual Funds. “Though sufficient care has been taken, to
provide the correct rates, however ABMML does not guarantee the accuracy of the data provided herein. As a potential
investor, you are advised to check the updated rates and other Terms & Conditions on the manufacturer's website before
making any investments". The views/opinions expressed in the various articles are that of the author and the company may
not subscribe to the same either in part of in full. Any person investing on the basis of the data published in Investime will be
doing so at their own risk and are advised to consult your certified financial planner before taking any investment decision.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Ananth Sandeep Sundur
Editor
February 2017 Investime 31
Contact Information
Aditya Birla Money Mart Limited
Corporate Office: One India Bulls Centre, Tower 1, 18th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013.
Registered Office: Indian Rayon Compound Veraval Gujarat 362266, E-mail:[email protected]
CIN: U61190GJ1997PLC062406 ,Tel No: 91-22-4356 7000 Fax no: 91-22-4356 7266