icici december 15 issue newcontent.icicidirect.com/moneymanagermagazine/december_2015.pdf · only...

Anup BagchiMD & CEO

ICICI Securities Ltd.

Most of us understand the

importance of good financial

practices such as saving and

investing early on, planning for our

goals, planning for taxes well in

advance, etc. Yet, we tend to

procrastinate these small activities.

You might be wondering why this is

the case. One key reason is that we

care too much about today and not

enough about the future. We want

instant gratification and feel very

confident about our future. We will

spend money today because there

is an immediate benefit, which

could be a new smart phone, new

car etc., but find it difficult to invest

for crucial goals such as retirement.

Behavioral economists call this

concept as “time inconsistency”. We want future benefits but don't want

to give up immediate benefits to get them.

Putting off decisions that are good for our financial future could turn out

to be costly in the long run. It is easier to demonstrate the cost of

delaying investments. Let us consider the example of investor A and

investor B, both 25 years old. Investor A starts investing at age 25, Rs

3,000 per month, till the age 60. Investor B did not start investing until

age 35 and then starts investing higher amount Rs. 5,000 per month to

cover up the lost time. At the age 60, investor A will accumulate Rs.1.65

crore at 12% p.a. return while investor B would be able to accumulate

only Rs. 85.11 lakh, even though he invested higher amount of Rs. 15

lakh (5,000 x 12 months x 25 years) than investor A who invested a total

amount of Rs. 12.60 lakh (3,000 x 12 months x 35 years). As we observe

from the example, the sooner you begin investing, the greater the

compounding effect. Procrastination can be detrimental.

1ICICIdirect Money Manager December 2015

Particulars Investor A Investor B

Current age 25 years 25 years

Investment start age

25 years

35 years

Retirement age 60 years

60 years

Investment amount

` 3,000 p.m. for 35 years (i.e. from 25 to 60 yrs)

` 5,000 p.m. for 25 years (i.e. from 35 to 60 yrs)

Rate of return 12% p.a. 12% p.a. Accumulated Corpus at Retirement

` 1.65 crore

` 85.11 lakh

Total amount invested

` 3,000 per month x 12 months x 35 years = ` 12.60 lakh

` 5,000 per month x 12 months x 25 years = 15 ` lakh

I would add that one should not wait until the last moment to plan for taxes. Tax planning is another opportunity to invest well. Successful tax planning requires more than just selecting the tax-saving instruments. It also requires that our financial goals are met in the process.

In our portfolio we must first build in adequate protection for life as well as health - key fundamentals to a sound financial plan. The penetration for both life and health insurance is very low in India. Studies have shown that less than 20% Indians have these covers. One must get them early on and fortunately there are tax exemptions available for both.

Further, buying a house not only builds an asset but if funded by a home loan can help substantially reduce taxes. Both, the principal and the interest repayment on home loans, qualify for tax benefits. The effective cost of home loan thus actually goes down due to the tax benefits. Say for example, you take a home loan of Rs. 50 lakh at 10% interest per annum for self-occupied property. If you fall under the highest tax bracket of 30%, your effective loan rate would only be 7.90%, provided you avail tax benefits on both principal and interest repayment.

Coming to the investments for various goals such as children's education and marriage, retirement, etc. there is a wide range of investment instruments available. I would urge you to allocate a good portion towards growth-oriented options such as ELSS, ULIPs, NPS, etc. since these goals are generally long term in nature. All these instruments provide tax benefits as well.

Remember, procrastination rarely pays and there are many ways to ensure that you save taxes as well as reach your goals in the process. Your financial goals are important and the investments should go beyond just tax saving and should focus more on fulfilling your goals.

Our message remains the same - 'Keep investing and stay invested for your life goals.' I also take this opportunity to wish you and your family a Happy New Year 2016. As we enter the New Year, we at ICICIdirect.com again commit ourselves to partnering with you in achieving all your financial goals.

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Tax planning is an integral part of our overall financial planning.

All our investments, including tax-saving ones, need to reflect

our long-term investment plans. This means to have a financial

goal first and then decide an asset allocation strategy. Once you

know how much to invest in an asset class, start with investing

into the most tax-efficient product. By developing and

implementing appropriate investment strategies, we can

improve our prospects of saving taxes as well as meeting our

financial goals. Our cover story of this edition handholds you

through the aspects of efficient tax planning.

The edition also covers an interview with Sankaran Naren, CIO,

ICICI Prudential Mutual Fund, who believes equities offer a good

proposition for the next 3 years. He advises investors to stay

invested for long term and not try timing the markets.

In the fixed-income space, with interest rates likely to fall further

in the next 1-2 years, income funds provide attractive investment

opportunity. This is because fall in interest rates increases the

bond prices (they share an inverse relation) and thus create

capital gain opportunities. Read on more about investing in

income funds in our Mutual Funds Analysis section.

Further, if you wish to get clarity on different aspects of personal

finance or any other money matter through Ask our Planner, you

may write to us at [email protected]. So read

on, stay updated and involved. Do write in with your feedback

and share your thoughts.

Team ICICIdirect Money Manager wishes you a happy and

prosperous New Year.

Editor & Publisher : Abhishake Mathur, CFA

Coordinating Editor : Yogita Khatri

Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey

CMEditorial Team : Nithyakumar VP CFP , Sachin Jain, Isha Bansal

ICICIdirect Money Manager December 2015

Your magazine is now also available on www.magzter.com, a digital newsstand.


MD Desk.........................................................................................1

Editorial...........................................................................................2

Contents..........................................................................................3

News..............................................................................................4

Asset Class InsightsA monthly review and outlook on major asset classes – equity, debt/fixed-income and gold….....................................................5

Stock Ideas: PNC Infratech and VA Tech Wabag............................... 11

Flavour of the Month: How to plan your taxes efficiently.Tax planning is an integral part of our overall financialplanning. Read on to find out how proper planning canhelp serve the twin objectives of saving taxes andmeeting your financial goals......................................................20

Tête-à-tête: 'Adhere to the principles of asset allocation’An interview with Sankaran Naren - CIO, ICICI PrudentialMutual Fund................................................................................31

Ask Our Planner: How to save tax through preventive health check-upsYour personal finance queries answered..................................34

Mutual Funds Analysis: Investing in Income FundsWith interest rates likely to fall further in the next 1-2 years, income funds provide attractive investment opportunity........39

Mutual Fund Top Picks....................................................................49

Equity Model PortfolioWe have recently aligned our portfolio to capture the new opportunities available in the market........................................50

Quiz Time......................................................................................55

Prime NumbersA revamped section of monthly trends, with inclusion of more data points and indicators..........................................................56

Premium Education Programmes Schedule.......................................60

4ICICIdirect Money Manager

RBI unveils new math for banks' base rate

Indian banks will soon have to price their loans based on rules announced by the central bank in a move that is aimed at making lending rates more responsive to policy rate changes. Starting 1 April, lenders will calculate their lending rates based on the marginal cost of funds, or the rate offered on new deposits. The new rules will likely to make loans cheaper for new borrowers. For existing borrowers, it may take as much as a year for the benefits to be transmitted. Banks currently set their lending rates based on the average cost of funds on deposits outstanding.

Courtesy: Livemint

The government has collected Rs. 329.6 crore in a month's time from the 0.5 per cent Swachh Bharat cess which is imposed on all taxable services, the Parliament was informed. “The provisional figures of Swachh Bharat cess collected till December 16, 2015, is about Rs. 329.6 crore,” MoS Finance Jayant Sinha said in a written reply to the Rajya Sabha. The government had imposed the cess with effect from November 15 to fund Swachh Bharat programme. Between November 15 and March 31, 2016, the revenue estimated to be collected is about Rs. 3,750 crore, Mr. Sinha said. The Minister added that the proceeds collected through the cess would be allocated to the state governments to fund Swachh Bharat initiatives.

Courtesy: The Hindu

Swachh Bharat cess garners 329 crore in 1 month`

In a bid to curtail domestic black money flow, the finance ministry announced mandatory furnishing of permanent account number (PAN) for all transactions above Rs 2 lakh through all payment modes with effect from January 1, 2016. This is a relaxation from a proposal to make PAN mandatory for sale and purchase of items above Rs 1 lakh.

Courtesy: Business Standard

From Jan 1, PAN mandatory for transactions above 2 lakh `

December 2015

Govt may raise service tax rate in Budget To meet higher expenditure requirement for the next financial year, mainly on account of the seventh pay commission's recommendations and the implementation of the one-rank-one-pay (OROP) pension plan, the Centre could raise the service tax rate by up to two percentage points in the coming Union Budget. A committee headed by Chief Economic Advisor Arvind Subramanian has recommended a standard rate of 16.9 per cent to 18.9 per cent under the proposed goods and services tax (GST) regime. So, Finance Minister Arun Jaitley has the room to increase the service tax rate from the current 14 per cent to 16 per cent next financial year - to shore up revenue and also prepare the country for a GST regime.

Courtesy: Business Standard


Equity markets: Near support levels…but consolidation to continueIndian equity markets have been volatile and trading in a broader range since the start of the year. The range bound to negative trade, particularly since March 2015, needs to be looked at in conjunction with the significant market rally in preceding 18 months from September 2013 to February wherein headline benchmark indices rallied around 70%.

Mid-cap indices, however, continue to rally as domestic mutual funds continue to remain significant buyers in the segment on the back of consistent inflows into mid-cap schemes. Large-caps witnessed selling pressure in the last few months while the broader market continues to remain supportive.

Concerns over a rate hike by the US Federal Reserve and subdued domestic and global trade activities continued to loom over the marke t . Earnings were subdued in

Q2FY16 with bottom-line growth of around 6% even after excluding metals & mining sector apart from banks, non-banking financial companies (NBFCs), oil & gas. Core earnings growth was lower as earnings were largely aided by higher other income.

Q2FY16 witnessed another quarter of strong gross margin expansion across sectors on a year-on-year (YoY) basis as companies realised benefits from a global fall in commodity prices viz. crude and crude derivatives, metals - ferrous & non ferrous, rubber and cotton. The fall in crude price benefited the airlines and lubricants industry immensely while the consequent fall in crude derivates benefited the paints sector (majority of raw m a t e r i a l s a r e c r u d e derivatives). The fall in metal prices acted as a shot in the arm for auto & auto ancillaries as well as consumer durables that witnessed strong gross margin expansion albeit muted volume growth. While a fall in agri commodity prices like

ASSET CLASS INSIGHTS

Asset Class Insights: Equity, Fixed-income and Gold

Monthly review of the major asset classes - equity, fixed-incomeand gold -- and a snapshot of our outlook.



cereals aided the FMCG sector, rubber aided the tyre sector and cotton aided the textiles sector. Most companies witnessed a flow of gross margin expansion to operating margins. However, the extent was somewhat limited as

some had to pass on raw material benefits to its end customers while others had to increase advertisement & promotional expense to push t h e i r p r o d u c t s i n t h e marketplace.

170

220

270

320

Jan

-14

Feb

-14

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r-14

Apr

-14

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y-1

4

Jun

-14

Ju

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4

Sep

-14

Oct-

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4

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4

Jan-

15

Feb

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Mar

-15

Apr

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CRB Index

All commodities witness sharp fall in last few months

Globally, the outcome of the FOMC (Federal Open Market Committee) policy decision will be keenly watched. Although the market is already discounting a rate hike by the US Federal Reserve, the actual event and announcement or indication of a further rate hike will have its impact on global capital markets.

The key short-term support for the index is placed at the 7700 region. A fall below the 7700 support will be a sign of weakening trend and lead to accelerated selling pressure towards the 7450 levels in the

short-term.

Structurally, the outlook for Indian equity markets remains good on the back of a steep correction in commodities, especially crude oil & industrial metals, 125 bps repo rate cut and subsequent transmission of the same to corporate balance sheets along with relatively stable exchange rates.

Any intermediate throwbacks from here on should be utilised to buy in a staggered manner f r o m a m e d i u m - t e r m perspective to ride the larger uptrend.



Global economy and markets: Global equity markets were mixed during November. As threats to global security and t h e e n s u i n g r e a c t i o n dominated headlines after the terror attacks in Paris, markets remained relatively subdued and continued to focus on i n c r e a s i n g l y d i v e r g e n t m o n e t a r y p o l i c y f r o m dominant central banks.

Although US equity markets ended flat in November, they have been extremely volatile in the last few months. Investors seem to be in a dilemma as to how to position themselves after improved economic data, particularly jobs data and retail s a l e s d a t a . I m p r o v i n g economic momentum is indicating the economic recovery seems to be gaining pace. However, the same has increased the probability of a rate hike on part of the US

Fe d e r a l R e s e r v e i n i t s December policy meeting.

European equity markets were largely positive in November. The European Commission's Economic Confidence index rose to its strongest level in five years. Talks on additional stimulus by the European Central Bank (ECB) to tackle low inflation surged.

Emerging markets, in general, were under pressure on prospects of higher US interest rates. Foreign investors were seen to be net sellers in most emerging markets.

Expectations of a rate hike by the US Fed in its December 16, 2015 FOMC meeting has increased significantly in the last few days with 80% of the traders now expecting a rate hike. In October, the same probability of the rate hike was only 26%.

4.9

3.5

1.9

1.7

1.2

0.3

-1.6

-1.9

10.9

4.5

7.5

4.9 6.5 7.2

-3.2 -0

.5

-10

0

10

20

Ger

man

y

Jap

an

Ch

ina

UK

Fra

nce

US

Bra

zil

Ind

ia

(%)

1 M 3 M

Slowdown concerns in China roil global markets

Return as November 30, 2015



0

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50

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90

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15

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-15

Mar

-15

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5

Aug

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Oct-1

5

Nov

-15

Dec

-15

Implied U.S. Fed rate hike probability

US Fed rate hike probability in Decembermeeting increases to 80%

Fixed income: U.S. Fed rate hike concern looms… yields back at elevated levelsY i e l d s o n g o v e r n m e n t securities (G-Sec) were under pressure on the back of weak global cues as strong jobs data and comments from US Fed o f f i c i a l s i n c r e a s e d t h e probability of a rate hike in the December 16, 2015 FOMC policy meeting.

Heavy supply in October and November aided already weak sentiments. Also, fears that the Seventh Pay Commission's recommendation may lead to deterioration in fiscal deficit and inflation impacted bond market sentiments.

Indian benchmark 10 year G-sec yields again rose to 7.7% from 7.55% before the latest rate cut of 50 basis points (bps) by the Reserve Bank of India (RBI). The benchmark US 10-

year G-Sec yield has also witnessed upward pressure and trades at around 2.30% currently.

Foreign portfolio investors (FPIs) have been on the sidelines in the last month. In the last month, FPIs have been net sellers to the tune of around US$800 million.

The RBI in its December 2015 policy review kept key rates unchanged as per market expectations. The RBI has emphasised that the stance of monetary policy continues to be accommodative and it will use room, when available, to cut rates. The RBI has dovishly interpreted the impact of the Seventh Pay Commission, GST and said any rise in inflation data prints because of these events will be temporary and alter its medium term stance on policy rates.



Key events that the markets would be focused on in the near term would be the US Federal Reserve decision on rate hike in its mid-December review meet. Although the rate hike impact has already been factored in bond yields to a large extent, near term volatility may not be ruled out.

We bel ieve the current tightening in yield is temporary in nature. Once the US Fed event is over, domestic fundamentals will push yields across the curve lower.

Investors may consider both duration as well as accrual funds depending on their risk return profile.

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8.0

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15

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15

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5

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Dec

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Yiel

d(%

)

Indian 10 year G-Sec yields have risen sharplyin last two months

Gold: Range bound movement to continue

Global gold prices continue to

trade with a negative bias with

prices touching six lows of

around US$1050 per ounce in

the first week of December

2015. In the last two months

global gold prices have

cor rec ted around 11%.

Increasing expectations of a

rate hike by the US Federal

Reserve in its December 16,

2015 policy meeting weighed

on the outlook for precious

metals.

I n v e s t m e n t d e m a n d a s

reflected in holdings in SPDR

Gold Trust (largest gold ETF)

has slipped significantly over

the last few months indicating

lack of investor demand.

One of the major determinants

of global gold prices is

benchmark real interest rates.

With increasing probability of a

rise in interest rates in

D e c e m b e r 2 0 1 5 , t h e

opportunity cost of holding

gold will increase while the

same is likely to put pressure



on gold prices from a medium-

term perspective.

Investment demand for gold is

also governed by the broader

economic climate. One of the

m a j o r d e t e r m i n a n t s o f

i n v e s t m e n t d e m a n d i s

inflationary concerns. With a

low global economic growth

env i ronment add ing to

d e f l a t i o n a r y p r e s s u r e ,

inflationary demand factor for

gold remains absent in the near

term.

Technically, after the multiyear

bull phase in 2004-12, gold

prices corrected significantly.

Violation of the long term trend

line highlights the breach of a

d e c a d e l o n g t r e n d o f

outperformance. This breach

of long term up trend support,

signals a period of medium-

term consolidation.

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Price ($/Ounce)

Gold prices correct sharply on increased expectations of rate hike in December 2015

Indian prices follow global pricesbut to a lesser extent

Source for all the above charts: Bloomberg

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Price (|/10 grams)

11

STOCK IDEAS

ICICIdirect Money Manager December 2015

PNC Infratech: Poised to embark on growth path

Company BackgroundIncorporated in 1999, PNC Infratech (PNC) is a north-based EPC (engineering, procurement and constru ction) player with expertise in e x e c u t i o n o f m a j o r i n f r as t ruc tu re p ro jec t s , including highways, bridges, flyovers, power transmission l i nes , a i rpor t runways , development of industrial areas and other infrastructure activities. The company has executed 48 projects till date on an EPC basis. PNC has an established track record of successful execut ion of projects in roads & highways and airport runway sectors. The company is spread g e o g r a p h i c a l l y w i t h a presence in over 13 states a c r o s s I n d i a i n c l u d i n g Rajasthan, Punjab, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Assam, etc. Currently, P N C i s e x e c u t i n g 2 0 infrastructure projects on an EPC basis. Its major clientele includes NHAI, Airports Authority of India (AAI), Delhi State Industrial & Infrastructure Development Corporation,

and Dedicated Freight Corridor Corporation of India etc.

Well established & experienced EPC playerPNC Infratech is an Agra-based EPC player with a well established track record in executing large construction projects, particularly in the roads & highways and airport r u n w a y s s e c t o r s . T h e company has a proven track r e c o r d o f t i m e l y / e a r l y completion of projects. For instance, PNC has received a bonus from NHAI for early completion of the Agra-Gwalior section of NH3 in UP. B e s i d e s , t h e c o m p a n y commenced toll collection three months earlier than schedule on account of the early completion of two-laning of Gwalior-Bhind project ( M a d h y a P r a d e s h - U t t a r Pradesh Border Road) on NH 92. Even among its current projects under execution, it is well on track to complete its big ticket projects like Agra-Firozabad with a total project cost (TPC) of 1,635.8 crore

Investment Rationale

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STOCK IDEAS

(outstanding value as on September 30, 2015 is 1,408 crore) and Raebareli – Jaunpur (its own annuity project with TPC of 837.4 crore) are ahead of schedule.

Order book of 3,578 crore (excluding L-1 bids)Currently, PNC's order book is at ~ 3,578 crore (excluding L-1 bids of 811.75 crore). The current order book implies an order book to bill ratio of 2.3x over FY15 revenues, which is in line with its peers providing strong visibility over the next couple of years. Furthermore, the company is currently L1 in orders worth 811.75 crore, which includes an airport runway project in Kanpur worth 167.25 crore and one N H A I p r o j e c t o f improvement/augmentation of 1 4 6 . 4 k m o f A l i g a r h -Moradabad section of NH-93 to two lanes with paved shoulders, in Uttar Pradesh with a total project cost of 644.5 crore.

Well-funded BOT portfolioPNC Infratech has eight p r o j e c t s i n i t s B O T (bu i ld–opera te– t rans fe r ) portfolio including one OMT (operation, maintenance and

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tolling) project with a total size of 953.8 km comprising both toll and annuity assets. Out of the eight projects, seven are partially/fully operational while one is under construction. The construction work for its under-construction Raebareli-Jaunpur project is well on track and is expected to commence operations in December 2015. O v e r a l l , t o t a l e q u i t y requirement for the existing BOT portfolio is 876.1 crore of which PNC's share is 487.4 c r o r e w h i c h h a s b e e n completely funded.

PNC has worked across sectors such as road, airport, power and railways. Currently, its order book is tilted towards the road segment, which consists of 99% of the order b o o k . H o w e v e r , t h e management fee l s tha t company has opportunities from other segments as well, going ahead. Currently, most of the defence runways in the country are old and need to be u p g r a d e d . W i t h t h e government buying newer aircraft, a good infrastructure base is required to support them. Bigger orders in the

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Opportunities across sectors


STOCK IDEAS

airport segment coupled with the super special (SS) class it r e c e i v e d f r o m M i l i t a r y Engineering Services (MES) would help the company to bag substantial orders, going ahead. Besides this, PNC is a l s o u n d e r t a k i n g t h e construction of a double-track electrified railway line (part of the Dedicated Eastern Freight Corridor). This experience could throw up some more opportunities from freight corridor (~ 80,000 crore) for PNC, going ahead.

At the current market price (CMP), PNC is trading at 13.3x

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Growth trajectory to get better; Recommend BUY

FY17E EPS (earnings per share) (after adjusting BOT valuation). With strong order book, healthy order inflow pipeline and lean balance sheet, we expect topline, bottomline to grow at a CAGR (compounded annual growth rate) of 23.7%, 26.1% in FY15-17E vs. 16%, 17.3% CAGR in FY10-15, respectively. We assign a BUY recommendation to the stock with a target price of 632/share. We value its construction business at Rs. 507/share (at 8.5x FY17E EV/EBITDA) and BOT projects at 125/share (traffic growth assumption – 5% per annum).

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Key Financials

Valuations Summary

Net sales ( crore) 1,120.4 1,530.1 1,896.1 2,341.3

EBITDA ( crore) 141.9 216.6 255.6 309.7

Net profit ( crore) 70.1 100.4 124.7 159.7

EPS ( ) 13.7 19.6 24.3 31.1

FY14 FY15 FY16E FY17E

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P/E (x) 30.6 21.4 22.2 17.4

Target P/E (x) 35.8 25.1 26 20.3

EV / EBITDA (x) 20.8 14.3 11 9

P/BV (x) 3.4 3 2.2 2

RoNW (%) 11.2 14 9.9 11.3

RoCE (%) 17.6 21 17 18.8


STOCK IDEAS


Key Risks

Failure to win new orders; delay in executionCurrently, PNC's order book to bill ratio is at 2.3x, which is relatively low. To show strong execution over the next few years, PNC needs to get order inflow of 2,500-3,000 crore per annum (p.a.) to support the 20-25% CAGR in its revenues in FY15-17E. If the company is unable to win new projects possibly on account of aggressive bidding and higher competitive intensity or due to a delay in awarding from clients like NHAI, it could significantly impact its revenues and profitability, going ahead. Furthermore, its execution may also get impacted due to external factors such as delay in land acquisition by client

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such as NHAI. This would lead to stretch in working capital (WC) as well and consequent debt level, which may impact its profitability and liquidity position, going ahead.

Concentration riskPNC's order book is highly tilted towards the road sector. It accounts for 99% of the total order book as on September 2015 and accounted for 97% in Fy15. Furthermore, it is also highly concentrated on the northern r e g i o n w i t h N o r t h I n d i a accounting for majority of its current order book. Consequently, any delay in awarding in the above-mentioned vertical/region could impact PNC's revenues and profitability significantly, going ahead.

(EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS: Earnings per share; P/E: Price-to-earnings; EV: Enterprise value; P/BV: Price-to-book value; RoNW: Return on net worth; RoCE: Return on capital employed; FII: Foreign institutional investors; DII: Domestic institutional investors)

Stock Data

Market capitalisation ( crore) 2,770.6

Total Debt (H1FY15) ( crore) 211.3

Cash (H1FY15) ( crore) 74.2

Enterprise value (EV) ( crore) 2,907.7

52-week High/ Low ( ) 550 / 346

Equity capital ( crore) 51.3

Face value ( ) 10

FII holding (%) 6.4

DII holding (%) 13.8

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STOCK IDEAS

VA Tech Wabag: Strong opportunities in the offing

Company BackgroundVA Tech Wabag (Wabag) is a

l e a d i n g m u l t i - n a t i o n a l

company (MNC) in the water

t reatment space (water

desalination, sewage water

t reatment , waste water

treatment, etc.), with presence

in India, Middle East, North

Africa, Central & Eastern

Europe, China and South East

Asia. It operates on an asset

l i g h t - E P C ( e n g i n e e r i n g

procurement & construction)

led model in water treatment

projects across municipal and

industrial segments, where

they focus on design and

engineering while outsourcing

civil construction and erection

jobs. The company has a

global presence across 22

countries and access to about

100 patents, which include

both products and process

patents. It has R&D (research &

development) centres in India,

Austria and Switzerland. The

company has a total of 18

subsidiaries globally.

The company has executed

over 2,250 projects in last three

decades. It operates under

three major segments viz.

Wabag India, Wabag Austria

and Wabag India International.

The company garners higher

EBITDA margin of ~13-14%

across its India business

followed by 8-9% across India

international business and 5-

6% across the Europe segment

taking the overall EBITDA

margin to ~9.3%.

Significant opportunity expected in

under-invested water treatmentI n c r e a s i n g p o p u l a t i o n ,

economic development and

urbanisation have led to higher

demand for fast depleting fresh

water. Robust investment of

13.6 lakh crore alone is the

business opportunity in India

for water solution companies

like Wabag. As per the Wabag

management, the $ 6 billion

Indian water treatment market

( 36,000 crore) is likely to grow

by 12%-14% going ahead

factoring the recent initiatives

adopted by the government to

Investment Rationale

`

`


STOCK IDEAS

form 100 smart cities, river

linking projects, improved

water supply and Swach

Bharat Abhiyan. This is

c o u p l e d w i t h s t r o n g

international prospects across

the water treatment space to

b r i d g e t h e d e m a n d -

supp lyde f i c i t , wh ich i s

estimated to reach 39% by

2020. Desalination of water is

the other segment where

Wabag has a strong presence.

The company current ly

operates two desalination

plant (a 100 MLD (millions of

liters per day) plant in Chennai

and another 140 MLD plant in

Oman where Wabag has a 30%

share in the EPC segment). As

per United Nations (UN), by

2025, 14% of the world's

population will be serviced

w i th desa l ina ted wate r

compare to only 1% as of

today. Accordingly, the market

for seawater and brackish

d e s a l i n a t i o n m a r k e t i s

expected to grow at a CAGR

(compounded annual growth

rate) of 11.9% over 2013-2018

to reach $7.2 billion.

De-risked and asset light business

modelT h e c o m p a n y h a s a

widespread geographical

presence in over 22 countries

thus minimising the risk of

excessive dependence on a

p a r t i c u l a r c o u n t r y .

Furthermore, while bidding in

the domestic market the

company select projects which

a r e f u n d e d e i t h e r b y

government or various multi

lateral and bilateral agencies.

Whereas, Wabag's oversees

projects are backed by Letters

of Credit (LC) from premier

E u r o p e a n b a n k s w h i c h

ensures smooth project

execu t ion and revenue

recognition.

Furthermore, Wabag focuses

o n l y o n t h e d e s i g n ,

e n g i n e e r i n g , p r o j e c t

m a n a g e m e n t a n d O & M

(operations and maintenance)

elements (20-30% of the

overall order size), while it

outsources civil construction

and erection jobs (70-75% of

the order scope) , thus

adopting an asset-light EPC

model. As a result, company's


STOCK IDEAS

gross fixed assets have been

only 13.2% (FY 2014) of its total

capital employed. This trend is

expected to continue as

Wabag is likely to continue to

operate on its asset light

model. By refraining itself from

indulging into capital intensive

model, Wabag has been able to

maintain a debt-free balance

sheet and also generate

reasonable return of 17.4% -

ROCE and 15.0% ROE in Fy15.

Order book of 7,075.7 crore

(excluding framework contract of

1,542 crore)Currently, Wabag's order book

is a t ~ 7 ,075.7 crore

(excluding framework contract

of 1,542 crore) vs. 5,239

crore year-on-year (YoY). The

current order book implies an

order book to bill ratio of ~3.0x

o v e r F Y 1 5 r e v e n u e s .

G e o g r a p h y - w i s e , I n d i a

accounts for 59% of the total

order backlog, Austria division

accounts for 24% of the order

backlog and India international

unit accounts for the balance

17%. While the management

has maintained its order intake

guidance of 3,500 - 3,700

`

`

`

` `

` `

crore for FY16E, we expect the

same to be revised upward

during Q3-Q4 FY16E as the

company has already booked

an order of 3,080 crore in

H1FY16E . Going ahead,

Wabag's order backlog and

revenue are expected to

increase at a CAGR of 15.6%

and 15.5%, respectively, over

2014-17E driven by the robust

opportunity across the water

treatment industry.

Valuat ions look at t ract ive ;

Recommend 'Buy’Wabag expects to maintain its

low Debt/Equity (D/E) ratio

factoring in its asset light

business model that would

continue to provide positive

FCF (free cash flow) (average

FCF of 150 crore in FY15-

17E). Furthermore, robust

order intake in 1HFY16 will not

only enhance the company's

order book position but also

strengthen our posi t ive

outlook on the company.

Hence, we recommend a Buy

rating on Wabag with a target

price of 830 (assigning a

target P/E of 22x on FY17E

EPS).

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`

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STOCK IDEAS

Key Financials

Valuations Summary

Stock Data

Net sales ( crore) 2,239 2,435 2,932 3,399

EBITDA ( crore) 209 235 293 347

Net profit ( crore) 107 136 169 205

EPS ( ) 40.3 25 31.1 37.7


`

`

`

`

P/E (x) 17.5 28.2 22.6 18.7

Target P/E (x) 20.6 33.3 26.7 22

EV / EBITDA (x) 8.7 15.1 12 10

P/BV (x) 2.2 4 3.6 3.3

RoNW (%) 12.7 15 16.8 18.4

RoCE (%) 17.8 17.4 19.8 21.2


Market capitalization (Rs. crore) 3,852

Total debt (FY15) (Rs. crore) 180

Cash and investments (FY15) (Rs. crore) 311

Enterprise value (EV) (Rs. crore) 3,721

52-week High/ Low (Rs.) 970/617.2

Equity capital (Rs. crore) 10.9

Face value (Rs.) 2

FII holding (%) 28.1

DII holding (%) 22.5


STOCK IDEAS

Key Risks

Diversion from asset light business model to capital intensive modelWabag ' s ba lance shee t strength lies in its asset light business approach. This has so far helped the company to generate positive cash flow and maintain a comfortable D/E of 0.2x. Historically, the company has collaborated with developers by taking minor equity in few BOOT (build-operate-own-transfer) p r o j e c t s . W h i l e t h e management has maintained that it would like to continue with this approach, any change in the company's stance to adopt a capital intensive model so as to grab projects is likely to impact the stock's key investment criteria.

Political risk across various geographies.The company operates and has ongoing projects across various geographies globally which exposes the company to political risk. Any political uncertainty in regions where the company has ongoing operations could hamper its profitability. A point in case is the recent unrest in Libya due to which Wabag's projects over there were affected. Wabag has won few framework contracts in Libya which is likely to get cancelled. Any such prolonged political risk in any particular region could impact Wabag 's pro ject execution and thus financials going ahead.

(EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS: Earnings per share; P/E: Price-to-earnings; EV: Enterprise value; RoNW: Return on net worth; RoCE: Return on capital employed; FII: Foreign institutional investors; DII: Domestic institutional investors)


FLAVOUR OF THE MONTH

How to plan your taxes efficiently

December 2015

It is that time of the year when most of us look for tax-saving investments

in order to reduce our tax outgo. Last minute urgencies often lead us to

buying something that might save tax, but end up being inappropriate

when taking into account our financial profile and goals. For example, a

young individual may hastily invest in tax-saving fixed deposits (FDs)

when he should actually be looking to invest in growth options such as

equity linked savings schemes (ELSS). It is important that all our

investments, including tax-saving ones, are linked to our financial profile

and goals. Here we look at how proper planning can help serve the twin

objectives of saving taxes and meeting goals.

To start with, let's go through the current tax slabs and available

deductions under various sections.

Income Tax Slabs for FY 2015 -16

General Public (Below 60 Years of Age)

Senior Citizens (60 to 80 Years of Age)

Very Senior Citizens (More than 80 Years of Age)

Income Tax Slab Tax

Income Tax Slab

Tax

Income Tax Slab Tax

Up to 2.5 ` lakh

Nil

Up to 3 ` lakh

Nil

Up to 5 ` lakh

Nil

` 2.5 - 5 lakh 10%

` 3 - 5 lakh

10%

` 5 - 10 lakh

20%

` 5 - 10 lakh 20% ` 5 - 10 lakh 20%Above 10 lakh` 30%

Above 10 ` lakh 30% Above 10 lakh` 30%

• Education cess of 3%

• Tax credit of Rs 2,000 for income up to Rs 5 lakh

• Surcharge of 12% on Rs 1 crore plus income earners

Available Deductions under Various Sections

You can avail the following deductions from the taxable income and save taxes:

Life Insurance Premium,

EPF/VPF, PPF, NSCs, ULIP,

E L S S , A p p r o v e d

Superannuation Fund,

Tuition Fees of any two

children, Tax Saving Bank

Section Limit Popular Avenues Eligibility / Conditions

80C* 1,50,000



December 2015


FDs with lock-in period of

minimum of 5 years,

Repayment of principal

amount of housing loan,

S u k a n y a S a m r i d d h i

account

80CCC* 1,50,000 Contribution to approved Pension Funds

@80CCD* 10% of

salary or

10% of

gross total

income (for

non-

salaried)

Contribution to Pension

Scheme by Central

Government

80CCG 50% of

investment

subject to

maximum

of Rs.

25,000/-

Subscription to Equity

Share / MF Units for new

Investors- Rajiv Gandhi

Equity Savings Scheme

(RGESS)

G r o s s T o t a l I n c o m e n o t exceeding Rs. 12 lakh

Assessee is a new investor

Lock-in Period for investment is of 3 years

Investment to be made in specified equity shares / MF Units

80D 25,000 Mediclaim Individual / HUF

25,000 M e d i c l a i m t o w a r d s

health of parents who are

not senior citizen



December 2015


30,000 Mediclaim towards health of parents who are senior citizen

5,000 Preventive Health Check-up

30,000 Medical Expenditure incurred on oneself or his / her parents. This clause is applicable only for very senior citizens (80 years or above).

Provided, there is no medical insurance in force for such persons

80DD 75,000 Expenditure incurred on

medical treatment /

training / rehabilitation of

a d e p e n d e n t w i t h

disability or amount

deposited in designated

scheme of LIC / other

Insurers

A copy of

certificate issued

by medical

authority in

prescribed form

required

1,25,000 Expenditure incurred on medical treatment / training / rehabilitation of a dependent with severe disability or amount deposited in designated scheme of LIC / other Insurers

A copy of certificate issued by medical authority in prescribed form required

80DDB 60,000 Amount actually paid for medical treatment of specified disease or ailment for other than senior citizens

A copy of

certificate issued

by medical

authority in

prescribed form

(Form No.: 10-I)

required



December 2015


80,000 Amount actually paid for medical treatment of specified disease or ailment for senior citizens

A copy of certificate issued by medical authority in prescribed form (Form No.: 10-I) required

80E 100% of interest paid

Interest on educational loanDeduction is allowable in the initial year and upto s u b s e q u e n t 7 consecutive years

Loan availed by either Individual or his / her relative

80G 100% or 50%(subject to 10% of gross income in certain cases)

Donation to certain f u n d s , c h a r i t a b l e institutions

80GG 25% of total income or 2,000/- pm whichever is less

`Rent paid The individual /

spouse / minor child / HUF does n o t o w n a n y r e s i d e n t i a l propertyRent paid is in excess of 10% of his total income

80GGA Entire amount Payment to a research association / fund as notified by government

Individual

80GGC Entire amount Contribution given to

political parties other

than by cash



December 2015


80TTA 10,000 SB Account maintained with any Bank (commercial or co-operative), Post Office

80U 75,000 A Person with disability A copy of certificate issued by medical authority in prescribed form required

1,25,000 A Person with sever disability A copy of certificate issued by medical authority in prescribed form required

*The combined limit for deduction under Section 80C, 80CCC and 80CCD@ is

restricted to 1,50,000.

@ Additional deduction under section 80CCD(1B) restricted to 50,000.

# The overall limit for deduction under section 80D is limited to the extent of 30,000.

`

`

`

A few changes in taxation this year worth taking note:

Mediclaim gets more tax benefit:

Sukanya Samriddhi Account introduced u/s 80C:

Medical premium deduction under section 80D has been increased from 15,000 to 25,000. For senior citizens, it has increased from 20,000 to 30,000. For very senior citizens, whose medical insurance is not possible, deduction up to 30,000 is now allowed on medical expenses incurred.

` `` `

`

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``

Sukanya Samriddhi Account offers a small deposit investment for the girl children as an initiative under 'Beti Bachao Beti Padhao' campaign. Investment up to 1,50,000 in this account is tax eligible for deduction u/s 80C. Any interest received is also tax-free. The current interest rate is 9.2% p.a. Minimum deposit of 1,000 and maximum of 1,50,000 can be made in a financial year. There is no limit on number of deposits either in a month or in a financial year. Deposits in an account may be made till completion of 14 fourteen years, from the date of

Interest on savings bank

(SB) Account



December 2015

opening of the account. A legal Guardian/Natural Guardian can open account in the name of Girl Child, till she attains the age of ten years. Note: it can be opened for two girl children only.

The maturity of account is 21 years from the date of opening of the account or marriage of the girl child, whichever is earlier. For marriage, girl should be of 18 years. The operation of account is not permitted beyond date of marriage.

One premature withdrawal is allowed on attaining the age of 18 years by girl child only if funds are required for higher education and marriage -- up to 50% of the balance at the credit, at the end of preceding financial year.

The union budget 2015 announced a slew of measures w.r.t. to National Pension System (NPS). First, it has allowed an extra tax deduction of 50,000 for contribution made towards NPS, under Section 80CCD (1B), which is over and above the deduction available under section 80C. Second, it increased the limit of contribution to pension plans, including NPS, from 1 lakh to 1.50 lakh under section 80CCE(1). This comes to a total of 2 lakh deduction available for NPS.

With this, a contribution of 2 lakh would result into a tax saving of 20,600, 41,200 and 61,800 for individuals in 10.3%, 20.6% and 30.9% tax brackets, respectively. On the other hand, if you are investing only 50,000 for getting the additional tax benefit under section 80CCD (1B), it will help you save 5,150, 10,300 and 15,450 for the tax brackets 10.3%, 20.6% and 30.9%, respectively.

NPS as an investment option not only helps you provide lump sum, but also regular income post retirement since it requires annuitizing the accumulated corpus. Say for example, if you invest 15,000 per month into NPS for the next 30 years, you will be able to create a total pension wealth of 5.24 crore (at 12% p.a. return), from which you can withdraw 3.14 crore on maturity (60%) and get a pension of 1.22 lakh per month (from buying annuities).

Additional deduction of 50,000 for NPS:`

`

` ` `

` ` ` `

` `

` `

``

``

Tax-saving investments: Align with your financial goalsInvesting just to save tax is an ad hoc manner of financial planning. All your investments, including tax-saving ones, must be aligned to your long-term financial goals. Some of your financial goals are: Having an adequate life and health insurance, owning a

house, children's education and marriage, retirement planning, etc. Let's take a look at the financial goals and the a p p r o p r i a t e t a x - s a v i n g instruments that will help in achieving those goals.

Having an a d e q u a t e l i f e c o v e r i s fundamental to a sound financial plan. It ensures that

Life insurance:



December 2015

your family will be able to meet goals and obligations in case of an untoward event. The cover should be sufficient enough to take care of: a) Family expenses till lifetime; b) Liabilities outstanding and c) Family & children goals.

The best way to provide protection is through pure term plan – it gives high coverage at low cost. For example, a 1 crore term cover for a 30-year-old costs just around 10,000 per annum. With the help of life insurance, you will be able to not only protect the financial needs of your family, but also save taxes under Section 80C.

Given the rising healthcare costs, sudden or serious illness can set one back for years. The cost of key s u r g e r i e s a n d m e d i c a l procedures in many private hospitals is higher than the annual household income of between 60% and 90% of India's population, according to a report by audit and consulting firm EY. The report estimates average cost of tertiary care procedures including bypass surgery, angioplasty, neurosurgery,

`

`

Health insurance:

oncology rad ia t ion and surgery, and renal and liver transplants in the range of 2,00,000 to 4,00,000, which is more than the annual average household income of all Indians. India 's average household income was 1,57,683 in 2012-13, according to a March 2014 CMIE report.

Health insurance protects you f rom unexpec ted , h igh medical costs. Still, majority of Indians are largely uninsured or underinsured. The EY study says that just about 300 million people in India have some form of health insurance. According to WHO, 70% of Indians continue to pay for medical expenses out of the pocket, in comparison to just 30 -40% in o ther As ian countries.

The importance of health insurance being an integral part of your financial plan can only be overstressed.

Make sure you have an adequate health insurance throughout life stages. A family of 2 adults and 2 children can get a 4 lakh cover for just around 15,000 per annum. You can also avail tax benefits of up to 30,000 under Section

` `

`

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December 2015

80D.

A home loan is the most common source for fulfilling the goal of buying a house. Tax benefits can also be claimed on both the principal and interest components of the home loan. You can avail deduction up to 1.5 lakh per f i n a n c i a l y e a r t o w a r d s principal repayment on home loan under Section 80C. Stamp duty and registration charges are also eligible for deduction under Section 80C. Tax benefit on these can be availed only in the year you make the payment.

For interest payments, you can avail deduction up to 2 lakh per financial year under Section 24. This is for a self occupied house. However, for t h e l e t o u t p r o p e r t y / properties, there is no such cap. The entire interest paid can be deducted from the income from House Property (Section 23). You can choose any one property as self-occupied. Remaining will be automatically considered as let out property.

Note, you and your spouse ( b e i n g t a x- p a y e r s w i t h independent sources of

Buying a house:

`

`

income) can get separate tax deduct ion benef i ts with respect to the same home loan. However, it is important that the house and loan is in your joint names.

The cost of education in India is rapidly increasing, including school expenses. For example, school expenses of a single child including tuition fees have risen from 55,000 in 2005 to 1,25,000 per annum in 2015, r e v e a l s a s u r v e y b y ASSOCHAM. While the annual fees are on average Rs. 65,000 to 1,25,000 on single child for regular schools, even the pre- schools for those aged 3 to 5 cost, parents about 35,000 to 75,000 a term. Over 70% of

parents spend 30-40 per cent of take-home pay on their children education, placing significant burden on their family budget, it adds.

One must start investing early for children's education goal to give it enough time to grow. Initially, the allocation must be higher towards equities and later, start shifting towards fixed income to reduce the risk. Depending on the time horizon for the goal, you may invest in

Children's education:

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`

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December 2015

ELSS, ULIPs, PPF, NSCs, etc. For example: If your child is just 3 years of age and there is about 15 years remaining for her higher studies, investing in an ELSS could be a prudent o p t i o n . I f y o u r c h i l d ' s education goal is just 5-6 years away, investing in bank deposits or NSCs could be better option. All these investments - ELSS, PPF, ULIPs, NSCs, bank FDs - are deductible under Section 80C.

The face of retirement is changing. Today, most of us can't count on what our previous generations could, for their retirement needs. Assured pension, guaranteed returns from government schemes, support from a joint family, and periods of relatively low inflation -- are almost things of the past. Our retirement is going to be very different from that of our parents or grandparents. We would need to fend for ourselves for our retirement needs. Factors such as increasing life spans, rising inf lat ion, preference for nuclear families, absence of p e n s i o n s y s t e m s , e t c . necessitate early investing for retirement. The earlier you

Retirement planning:

start the greater you can save to create a nest egg for old age. There are various financial products that will not only help you reach your retirement goals but also save taxes in the process.

There are basically two phases for retirement planning - A c c u m u l a t i o n p h a s e (accumulating/building the adequate retirement corpus) and D is t r ibu t ion phase (withdrawing from your retirement corpus for regular income). Growth-oriented options such as ELSS, ULIP, NPS etc could be looked upon for accumulation phase / building the retirement corpus. For distribution phase, options such as bank deposits, NSC, SCSS, etc could do well. Investments in all these instruments are deductible under Section 80C subject to a maximum of Rs 1.5 lakh.

You have a wide array of choice of products under section 80C - ranging from term insurance to endowments to ELSS schemes to government sponsored schemes like NSC and post office savings. Here's a quick comparison of various options to help you pick the right mix.

Make a judicious choice



December 2015

Investment Option

Brief Minimum

Investment Maximum

Investment Lock-in Period

Risk/reward potential

Returns/ Indicative Returns

Inflation-protection

level

Equity Linked

Savings Scheme (ELSS )

Tax-saving, equity diversified mutual funds

` 500

No limit, but deduction available up to `1.5 lakh

3 years High 12%-15% High

Unit Linked

Insurance Plan (ULIP)

Insurance-cum-investment plan

` 10,000


5 years Medium/High 8%-12% Medium/High

Public Provident

Fund (PPF)

Government-backed savings-cum-tax-benefit debt instrument

` 500

` 1.5 lakh

15 years; partial withdrawals available from the sixth year

Low

Current rate: 8.7%

Low

Employees' Provident

Fund ( EPF)

Debt-oriented savings-cum-tax-saving instrument

If your basic salary + DA is below `15,000: 12% of the actual basic salary + DA

If its above ` 15,000, then 12%

of ` 15,000

12%

of actual basic salary + DA

Till retirement, but partial withdrawals available after 5 years in special circumstances

Low

Current rate: 8.7%

Low

Voluntary Provident

Fund ( VPF)

Debt-oriented savings-cum-tax-saving instrument

Depends on your employer

Up to 100% of basic in VPF, but overall deduction available up to `1.5 lakh

Till retirement, but partial withdrawals available after 5 years in special circumstances

Low

Current rate: 8.7%

Low

National Pension System (NPS )

A defined-contribution based pension product by the government of India

` 500 p.m./ ` 6,000 p.a.

No limit, but total deduction available up to `2 lakh

Till 60 years of age; can withdraw up to 60% of corpus when you reach 60

Medium -

depends on asset class you choose to invest in

9%-15%

Low to medium -depends on asset class

Pension plans /

Schemes

Retirement products -for creating pension corpus and regular income

` 10,000


Usually till your retirement age

Medium/High 8%-12% Medium/High



December 2015

Summing up

The tax-saving instruments are the very investments that one

anyway makes and therefore they need to be integrated into the

larger picture in line with your risk profile and financial goals. The

tax saving is just the icing on the cake. In other words, while tax

deduction is an important aspect to look at, it is more essential to

consider what you would achieve out of that investment. The

purpose of the investment is more important than the investment

itself.

Please send your feedback to [email protected]

Senior Citizen Savings Scheme (SCSS)

Senior citizens-oriented small savings scheme

` 1,000

` 15 lakh, but deduction available up to `1.5 lakh

5 years

Low

Current rate: 9.3%

Low

National Savings

Certificates (NSCs)

Govt-backed fixed income investment

` 100


5 years (NSC VIII Issue) / 10 years (NSC IX Issue)

Low

8.50% for NSC VIII Issue

8.80% for NSC IX Issue

Low

Tax -savingfixed

deposits(FDs)

A special category of FDs with tax-saving benefit

Varies from bank to bank. ` 100-` 10,000

` 1.5 lakh

5 years; Premature withdrawal not available

Low6.75% –9%

Low

Sukanya Samriddhi

Account

Small savings scheme for girl children

` 1,000` 1.5 lakh

21 years; Partial withdrawal up to 50% available after girl attains 18 years of age

Low/Medium Current rate: 9.2%

Low


Tête-à-tête

‘Adhere to the principles of asset allocation'

In the near term volatility will remain, but by end of 2016 investors should

get invested in equities to draw full benefit from the bull-run going

forward. For the next 3 years, equities offer a good proposition, says

Sankaran Naren - Chief Investment Officer (CIO), ICICI Prudential Mutual

Fund in an interview with ICICIdirect Money Manager. Investors should

adhere to the principles of asset allocation and balance their portfolios

based on their risk appetite and time horizon of investments, he adds.

Excerpts:

Q:

A:

We have witnessed a lot of

volatility in the markets so far this

year. How are things looking up as

we head into 2016?

During the year 2016, one

should consider investing in

equities. In the near term

volatility will remain, but by

end of 2016 investors should

Sankaran Naren

- Chief Investment Officer (CIO),

ICICI Prudential Mutual Fund

get invested in equities to draw

full benefit from the bull-run

going forward. For the next 3

years, equities offer a good

proposition.

Where are we with the economy

right now? How do you compare

India with other parts of Asia and

with developed economies?

India is at a comfortable

position when compared to

rest of the Asia on macro-

terms, as Current Account

Deficit (CAD) has improved.

Also the fiscal position has

i m p r o v e d . W h i l e m a n y

countries around the world are

battling deflation due to falling

commodity prices, India being

a net importer of commodity, is

in a sweet spot. This has

helped India improve upon the

CAD and fiscal position. All of

Q:

A:


Tête-à-tête

this put together, India is one of

the better countries to invest in

the current global scenario.

Earnings growth has remained

lackluster. By when do you see the

situation to get better? Which

sectors can deliver good growth?

Earnings will improve over

the next 2-3 quarters. As most

of the companies are having

under-utilized capacity, once

the economy picks up, the

companies will get operating

leverage and their profitability

will increase. Going forward,

w e a r e l i k e l y t o s e e

infrastructure and consumer

d i s c r e t i o n a r y s e c t o r s

contributing in India Growth

story.

What is your view on interest

rates? How should a long-term

fixed-income investor optimize his

returns?

A larger part of the interest

rate cut is behind us, however,

this rate cut is yet to reflect in

the bond yields. With inflation

under control and likely to

remain under Reserve Bank of

India's (RBI's) target rate, there

may be scope for further rate

Q:

A:

Q:

A:

cuts. Hence, we believe there is

still long-term opportunity for

investors in fixed income.

A fund manager not only has to

manage investor expectations in

terms of returns, but also risks.

Could you explain how do you

manage that? How do you find

ideas to generate returns/ alpha

and at the same time control

portfolio risk?

We follow bottom-up

analysis while picking stocks

and select the ones with good

margin of safety. This helps

manage downside risk during

volatile markets. The exposure

to a particular stock and

sectors are decided in line with

the mandate of the fund. Also

adequate diversification is

maintained that helps to

control risks while ensuring

that there is room to generate

adequate alpha for investors.

What is your overall investment

philosophy? How do you make buy

and sell decisions?

A combination of growth

a n d v a l u e i n v e s t m e n t

philosophy is implemented

depending upon the mandate

Q:

A:

Q:

A:


Tête-à-tête

of the scheme. Similarly, the

buy and sell decision for any

stock depends on the intrinsic

value of the stock.

In the backdrop of the current

market scenario, what is your

advice to new and existing

investors?

New or existing investors

should start building position

in equities if they are ready to

remain invested for a full cycle.

Investors should adhere to the

principles of asset allocation

and balance their portfolios

based on their risk appetite and

time horizon of investments.

What are the key fundamental

principles of building a successful,

long-term investment portfolio?

The key principles of

successful investing are to stay

invested for long term and not

try timing the markets.

The other way of successful

investing is investing when

there is extreme pessimism in

the marke t . Dur ing an

uncertain time investors could

lack conviction to invest,

Q:

A:

Q:

A:

where as if we look at history,

investors who have invested at

the depth of these uncertain

times have made most money.

When markets were crashing

in later parts of 2008 and early

part of 2009, investors who

invested then managed to

make money. Similarly in late

2 0 1 3 , w h e n t h e r e w a s

uncertainty in the economy,

was one of the better periods

to invest in Indian equities

market.

Would you like to share anything

else with our readers?

In times of volatil ity

investors can also choose

asset allocation funds, as it

ensures that the investor has

adequate exposure to equity

and debt. These funds allow

investors to have higher

exposure when markets are

available at a lower level and

reduce its exposure when

markets are expensive. Thus

they enable investors to buy at

lower levels and sell at higher

levels of market valuations.

Q:

A:

The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.


ASK OUR PLANNER

December 2015

Q:

A:

I had read about getting tax deduction for amount spent on health check-ups. Is it over and above the limit of Rs.25,000 of medical insurance premiums? What all tests are covered? Does it include parents too? Can you throw some light on this please?

- Abhilash Nair

From FY 2013-14, deduction has been provided for the amount being spent on preventive health check-up upto a maximum of Rs.5,000 per financial year. However, this is not an additional amount and is included in the overall l i m i t o f R s . 2 5 , 0 0 0 f o r individuals below 60 years of age and their dependent parents below 60. For senior citizens (above 60 years), it is included within the overall limit of Rs. 30,000 deduction available under section 80D for medical insurance premium.

There is no mention about the tests included here; however, as the name suggests the tests should have been conducted as a “preventive” measure and not to cure or diagnose any disease. The limit of Rs.5,000

acts as a sub-limit under the overall limit mentioned above. Hence, the maximum one can claim through preventive health check-up is only Rs.5,000, even if the medical insurance premium you pay is less than Rs.20,000 in a financial year. Also, it is not necessary for one to pay medical insurance premium to claim deduction for preventive health check-up. One can even claim deduction only for preventive health check-up under Section 80D.

However, unlike medical insurance premium where there are separate limits of Rs .25 ,000 fo r se l f and i m m e d i a t e f a m i l y a n d Rs .25 ,000 /Rs .30 ,000 for dependent parents, the limit of Rs.5,000 for preventive health check-up is for all put together i.e. self, spouse, dependent chi ldren and dependent parents.

I have 5 endowment policies with me and am paying Rs.80,342/- p.a. as premium towards them. While I was discussing with one of my friends, he suggested stopping these policies and investing into

Q:

How to save tax through preventive health check-ups


ASK OUR PLANNER

equity mutual funds instead to get better returns. When I went to surrender these policies, the surrender value of these policies was very less and in some policies it was amounting not even to 50% of the premiums I had paid.

Another friend suggested to convert these policies into paid up instead of surrendering. Can you let me know what is the difference be tween sur render ing and converting to paid up and also guide me as to which is the best choice?

- Sanjay Gupta

When a policyholder does not want to continue with an endowment policy, there are basically two options available – either to surrender it or convert it into a paid up one. Let's understand the difference between these two:

Surrendering an endowment policy means exiting from the policy before the maturity, voluntarily. On surrendering a policy, surrender value is paid t o t h e p o l i c y h o l d e r immediately and the policy gets cancelled, which means the life cover also stops, immediately. Policies usually acquire a surrender value after premiums have been paid for

A:

three years.

The surrender va lue is calculated by the insurance company depending upon the time for which the policy was in effect, the total term of the policy, the premiums paid and any bonus accrued. If the policy has completed around 3-4 years, the surrender value is only about 30% of the premiums paid plus any bonuses that may have accrued till then. The closer you are to the maturity date of your policy, the higher is the amount you get when you exit. Towards the end of its term, this can be as high as 80% of the premium. To know the surrender value of your policy, you have to contact your life insurance company.

On the other hand, when you convert an endowment policy into a paid-up policy, you don't have to pay any future premiums, but the policy does not get cancelled. The policy continues till maturity with a reduced sum assured. The reduced sum assured is called the paid-up sum assured of the policy and is calculated as a proportion of premiums paid versus the premiums actually


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needed to be paid. If the policy provides future bonuses and dividends, these would be lost in such a policy. However, you would retain any bonuses accrued before you made the policy “paid-up” and would be

paid on maturity along with the paid-up sum assured. But this paid-up value (i.e. paid-up sum assured plus the accrued bonus) will not grow till maturity and will remain the same.

Here's the table summarizing the difference between surrendering an endowment policy and converting it into a paid-up one:

ParticularsSurrendering an

endowment policy

Converting it into a paid-up policy

Future premiums

Discontinued

Discontinued

Life cover Discontinued Continued, but proportionately to the extent of number of premiums paid

Receipt of benefitSurrender value received immediately

Paid up value (i.e. reduced sum assured + accrued bonus) received at maturity

Now, coming to the question of

which is the better choice, it

depends on factors like the

surrender value, paid-up value,

how many years your policy

has completed and how many

years more to go. Some

people might suggest that the

amount you receive when you

make a policy paid-up is far

more than the surrender value;

however, you will receive the

paid-up amount only at

maturity, which can be years

later and the value of the

amount at that time might not

be significant.

Generally, surrendering a

policy in the initial years

(before 5 years) or during the

final years of the policy term

does not make much financial

sense, as in the first case, you

will be losing much of the

premium amount you have

paid till then and in the latter

case, you will miss out the

terminal benefits of the policy if

you stay for a few more years.

You can arrive at the decision

by doing some maths by

yourself, provided you know

the surrender value & paid-up

value of your policies. We shall

help you with an example:

Let's assume you are paying a


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premium of Rs.2,300 p.a. in an

endowment policy with a sum

assured of Rs.50,000 for the

last 8 years and the original

policy term is 20 years and you

want to discontinue now.

First, let's see how much you

will get if your surrender the

policy. By the end of 8 years,

you would have paid a

premium of Rs.18,400 (2,300 x

8 years). Let's assume the

surrender value of the policy to

be 50% of the premiums paid,

which comes to Rs.9,200. Now,

if you re-invest the surrender

value of Rs.9,200 and the

future premiums of Rs.2,300

p.a. for 12 years into an equity

mutual fund, you might end up

w i t h a r o u n d R s . 9 8 , 0 1 0

(assuming the fund gives an

average return of 12% p.a.).

On the other hand, if you

convert the policy into paid-up

one, you will be receiving a

paid-up sum assured of

Rs.20,000 (i.e. 40% of the

original sum assured, as you

have paid 40% of the total

premium due) and accrued

bonus for 8 years to the tune of

Rs.12,000 (assuming a bonus

of Rs. 30 per 1,000 sum

assured per year). Hence, you

will be receiving a total paid-up

value of Rs.32,000 after 12

years from now. If you invest

the future premiums of

Rs.2,300 p.a. for 12 years into

an equity mutual funds, you

might end up with around

Rs.62,160 (assuming the fund

gives an average return of 12%

p.a.). Adding the paid-up value

of Rs.32,000 from the policy,

you will be getting Rs.94,160 at

the time of maturity of the

policy.

After having checked these

two choices, you should also

check the third option, i.e. how

much you will receive in case

you continue the policy till

maturity. In such case, you will

be receiving Rs.50,000 sum

a s s u r e d a n d b o n u s o f

Rs.30,000 (assuming a bonus

of Rs.30 per 1,000 sum assured

per year), totaling to around

Rs.80,000.

Now in this example, between

the 3 choices – continuing the

policy, surrendering the policy

or converting the policy into

paid up – surrendering the


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Do you also have similar queries to ask our experts? Write to us at: [email protected].

policy looks the better choice

as the amount you will receive

after 12 years is the highest

among the three choices.

You can calculate the same

way for your policies and make

an informed decision.

My mother and I had opened a

joint demat account. The total value

of our holdings exceeds Rs.50 lakh.

My mother passed away in June

2015. I have to transfer all these

shares to my single name account.

My query is - What will be date of

acquisition of shares - actual date

of purchase or date of transfer? If I

sell any shares, will it attract short-

term capital tax or not?

Q:

- Arun Patel

Generally, in such cases, the

actual date of acquisition by

the previous owner is only

considered as the date of

purchase, to calculate the

period of holding the shares,

for capital gains purpose. If the

shares have been held for less

than 12 months from the actual

date of acquisition by the

previous holder, any capital

gain realized during the sale of

such shares will be classified

as short-term capital gain and

would be taxed at 15%, as per

the current tax laws.

A:

MUTUAL FUND ANALYSIS


Investing in income funds

Y i e l d s o n g o v e r n m e n t securities (G-sec) have been sticky at around current levels since the start of the year. G-sec yields are currently trading at around 7.7% despite the Reserve Bank of India (RBI) cutting repo rate by 125 basis points (bps) so far in calendar year 2015. Concerns over a rate hike by the US Federal Reserve (US Fed) in its D e c e m b e r 2 0 1 5 F O M C ( Fe d e r a l O p e n M a r k e t Committee) policy meeting has led to caution among global investors. Also, payouts under the Seventh Central Pay Commission seem to pose some challenge to the Centre in meeting its fiscal deficit t a r g e t . T h e d o m e s t i c macroeconomic environment, however, continues to remain conducive on the back of a structural improvement in fiscal deficit, trade balance and inflation along with the government's policy reform measures. The government has reiterated its commitment to maintain fiscal discipline. O n c e t h e u n c e r t a i n t y surrounding the US Fed event

passes away, bond yields are likely to soften on improved d o m e s t i c f u n d a m e n t a l s . Therefore, elevated yields at current levels offer an investment opportunity.

We expect CPI (consumer price index) to stay below the RBI's target of 5.8% CPI by January 2016, which, therefore, creates room for a rate cut. With an expected real return of 1.5% and inflation expected to ease further in the range of 4.5-5.5%, the government securities yield is expected to be in the range of 6-6.5%. This means there is room for ~25-75 bps fall in interest rates through the next one-and-a-half to two years.

We believe that in the next one or two years, income funds will yield better returns as interest rates fall further. The modified duration (determines percentage change in price of a bond for a percent change in yield) of these funds is somewhere closer to six to seven years. This means a fall in interest rates by 100 bps can yield capital gains of 6%. Aggressive investors can look to invest in the following funds:

ICICI Prudential Income Plan

Birla Income Plus

UTI Bond Fund

•

•

•



Product Label:

This product is suitable for investors seeking*:

Long term wealth creation solutionA debt fund that invests in

debt and money market i ns t ruments o f va r ious maturities with a view to maximize income whi le maintaining optimum balance of yield, safety and liquidity

•

•

Fund Manager: Manish Banthia

Performance:

Manish Banthia is B.Com, ACA and MBA. He is managing the fund since 2012 and has 5 years of experience in financial services sector.

The fund has delivered 7% 1-year return and 8.1% 3-year return, broadly in line with the benchmark returns. It has d e l i v e r e d 8 . 1 % C A G R (compounded annual growth rate) in 5 years vs. 8.6% of benchmark index in the same period. The fund has given 10 year CAGR returns of 8.26% vs. 7.03% of benchmark index. The fund has been consistent in its performance and its CAGR return since inception is at 9.05%, better than other funds in the category.

ICICI Prudential Income Plan

Fund Objective:

To generate income through investments in a range of debt a n d m o n e y m a r k e t i ns t ruments o f va r ious maturities with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity.

Key Information:NAV as on December 03, 2015 ( ) 45.2

Inception Date July 9,1998

Fund Manager Manish Banthia

Minimum Investment ( )

Lumpsum 5000

Expense Ratio (%) 1.50

Last declared YTM 7.83

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

Benchmark Crisil Composite Bond Fund Index

Modified Duration 8.36

`

`

Yearly Returns

13.5

11.7

1.2

12.6

11.6

3.5

0.0

5.0

10.0

15.0

30-Sep-14 To 30-Sep-15 30-Sep-13 To 30-Sep-14 30-Sep-12 To 30-Sep-13

Retu

rn%

Fund BenchMark

Performance vs. Benchmark

4.1

7

8.1 8.2

5.1

9.1 9 8.6

0

2

4

6

8

10

6 Month 1 Year 3 Year 5 Year

Retu

rn%

Fund Benchmark



Portfolio:

Our View:

The scheme seeks to generate

regular returns by putting

around 75 per cent of the

i n v e s t m e n t s i n d e b t

instruments, and the balance

in money market instruments.

The plan aims to maintain the

optimum balance of yield,

safety and liquidity. The fund

has increased its holdings in

sovereign bonds from 77% in

October 2014 to 84% in

October 2015. It has decreased

its holdings in 'AAA' and 'AA'

rated bonds extensively and

doesn't hold 'A' rated bonds.

The fund has been consistent

in its performance with

portfolio inclined towards

sovereign bonds which are

g o i n g t o b e n e f i t f r o m

decreasing interest rates in the

economy. As mentioned

a b o v e , t h e d o m e s t i c

macroeconomic environment

continues to remain conducive

on the back of a structural

improvement in fiscal deficit,

trade balance and inflation

along with the government's

policy reform measures.

Therefore, CPI is expected to

remain well within RBI's limit of

5.8% by FY16 end, which

provides room for further rate

cut. We believe that in the next

one or two years, income

funds will yield better returns

as interest rates fall further. The

modified duration (determines

percentage change in price of a

bond for a percent change in

yield) of the fund is 8.36 years.

This means a fall in interest

rates by 100 bps can yield

capital gains of 8.36%.



Performance of all the schemes managed by the fund manager

30 -Sep-14 30 -Sep-13 30 -Sep-12

30 -Sep-15 30 -Sep-14 30 -Sep-13

Fund Name

Oct-15 Sep-15 Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 Feb-15 Jan-15 Dec-14 Nov-14 Oct-14 Sep-14

CDs -- -- -- -- -- -- -- -- -- -- 1.79 -- -- --

CPs -- -- -- -- -- -- -- 0.62 -- -- -- -- -- --

Corp Bond 13.30 16.08 16.20 17.18 21.34 19.07 18.56 19.19 10.63 11.04 11.90 16.67 20.43 26.32

Gsec 84.17 82.38 81.48 80.66 76.65 77.50 78.88 81.85 83.54 87.12 85.41 80.26 77.29 72.09

Others 2.53 1.54 2.32 2.16 2.01 3.44 2.56 -1.67 5.83 1.84 0.90 3.07 2.28 1.59

A & Eqiv -- -- -- -- -- -- -- -- -- -- -- -- -- --

AA & Equiv 3.53 3.56 3.61 3.61 3.62 3.60 3.59 3.73 3.79 3.93 4.39 7.91 8.04 10.03

AAA & Equiv 9.76 12.52 12.59 13.58 17.72 15.47 14.98 16.09 6.84 7.11 9.31 8.76 12.39 16.29

Cash & Equivalent 2.53 1.54 2.32 2.16 2.01 3.44 2.56 -1.67 5.83 1.84 0.90 3.07 2.28 1.59

SOV 84.17 82.38 81.48 80.66 76.65 77.50 78.88 81.85 83.54 87.12 85.41 80.26 77.29 72.09Others -- -- -- -- -- -- -- -- -- -- -- -- -- --

Avg Maturity(Yrs) 18.04 17.50 16.78 16.21 15.98 15.80 14.37 14.44 12.45 13.47 15.06 15.29 14.17 14.77

Modified Duration 8.36 8.46 8.15 8.02 7.91 7.80 7.57 7.76 6.97 7.42 7.73 7.40 7.15 7.13

Asset Allocation %

Credit quality %

Other attributes (Years)

ICICI Pru Gilt-Invest-PF-Reg(G) 15.90 13.52 1.25

I-Sec Li-BEX 15.70 12.85 2.91

ICICI Pru Long Term Plan-Ret(G) 15.14 13.59 8.43

Crisil Composite Bond Fund Index 12.56 11.61 3.45

ICICI Pru Income-Reg(G) 13.45 11.65 1.24


ICICI Pru Income Opportunities Fund(G) 12.99 11.78 4.01


ICICI Pru Short Term Plan-Reg(G) 10.39 10.56 6.80

Crisil Short Term Bond Fund Index 9.90 10.12 7.73

ICICI Pru Balanced Advantage Fund-Reg(G)10.22 35.70 6.98

Crisil Balanced Fund Index 4.38 28.89 1.86

ICICI Pru Gold ETF -2.01 -11.98 -5.61

Gold-India -3.37 -11.08 -3.70

ICICI Pru Regular Gold Savings Fund(G) -4.19 -11.06 -6.37

Gold-India -3.37 -11.08 -3.70

Data as on December 03,2015 ;Portfolio details as on Oct-2015Source: ACE MF, ICICIdirect Research



Birla Sun Life Income Plus

Fund Objective:An open-ended income scheme with the objective to generate consistent income through superior yields on its investments at moderate levels of risk through a d i v e r s i f i e d i n v e s t m e n t approach. This income may be complemented by price changes of instruments in the portfolio.

Key Information:

Fund Manager: Prasad Dhonde

Performance:

Prasad Dhonde has been managing the fund since 5 years now. Prior to joining Birla Sun Life Asset Management Company (BSLAMC) he worked with Birla SL securities, CARE, Time Investors, etc and has 11 years of experience in financial service sector.

The fund has delivered 6.4% 1-year return and 8.3% 3-year annualized return with returns in line with the benchmark index. Also, 5-year CAGR return at 8.56% and 10-year CAGR return at 8.4% are higher than the benchmark returns for the same periods. Fund's CAGR return since inception stands at 9.6%, surpassing returns by other funds in the same category.

Product Label:

This product is suitable for investors seeking:

•

•

income with capital growth over medium to long term

i n v e s t m e n t s i n a combination of debt and money market instruments i n c l u d i n g g o v e r n m e n t securities of varying maturities

NAV as on December 03, 2015 ( ) 64.7

Inception Date November 10, 1995

Fund Manager Prasad Dhonde

Minimum Investment (`)Lumpsum 5000



Exit Load Nil

Benchmark Crisil CompositeBond Fund Index


`

13.5

9.4

3.8

12.6

11.6

3.5

0.0

5.0

10.0

15.0


Retu

rn%

Fund BenchMark

Yearly Returns


Fund Benchmark

3.5

6.4

8.3 8.7

5.1

9.1 9 8.6

0

2

4

6

8

10


Retu

rn%



Portfolio:The scheme seeks to generate consistent income through s u p e r i o r y i e l d s o n i t s investment at relat ively moderate levels of risk through a diversif ied investment approach. The fund has increased its holdings of sovereign bonds from 77% in October 2014 to 95% in October 2015. It holds 1.6% of the total holdings in 'AAA' and 'AA ' ra ted bonds , thus minimising the credit risk of the portfolio.

Our View:The fund holds 95% of the total holdings in sovereign bonds. Thus it is likely to benefit from the falling interest rates in the economy. The RBI has cut repo rate by 125 bps. The rate cut is yet to get reflected in the G-sec bonds. Also, g iven the favourable macroeconomic conditions and inflation well under control, there is an expectation of further rate cut. The fund has a modified duration of 9.20 years. This means a fall in interest rates by 100 bps can yield capital gains of 9.20%.


CDs -- -- -- -- -- 1.42 0.53 -- -- -- -- 0.03 0.16 --

CPs -- -- -- -- -- -- -- -- -- -- -- -- -- --

Corp Bond 1.11 1.13 1.78 4.46 4.44 4.79 9.63 13.12 5.44 4.35 9.19 14.38 17.47 17.38

Gsec 94.93 95.39 95.38 93.62 89.84 85.93 87.79 83.81 90.06 92.44 74.61 80.28 78.28 77.38

Others 3.96 3.48 2.85 1.92 5.72 7.87 2.05 3.07 4.50 3.22 16.20 5.31 4.09 5.23

A & Eqiv -- -- -- -- -- -- -- -- -- -- -- -- -- --

AA & Equiv 1.04 1.06 -- -- -- 0.97 1.09 1.08 1.02 1.08 1.22 5.36 6.71 3.77

AAA & Equiv 0.61 0.61 2.34 4.46 4.44 5.79 9.63 12.59 4.94 3.81 8.60 9.84 11.73 14.44

Cash & Equivalent 3.41 2.93 2.28 1.92 5.72 7.32 1.50 2.53 3.98 2.67 12.21 4.52 3.28 4.41

SOV 94.93 95.39 95.38 93.62 89.84 85.93 87.79 83.81 90.06 92.44 74.61 80.28 78.28 77.38Others -- -- -- -- -- -- -- -- -- -- -- -- -- --

Avg Maturity(Yrs) 20.55 20.42 13.36 16.22

Modified Duration 9.20 8.92 8.82 8.53 7.18 7.09 7.14 7.51 7.13 7.37 6.92 7.99 8.12 7.90

Asset Allocation %

Credit quality %






30 -Sep-14 30 -Sep-13 30 -Sep-12

30 -Sep-15 30 -Sep-14 30 -Sep-13

Fund Name

Birla SL Gilt Plus-PF(G) 15.99 12.72 3.94

I-Sec Li-BEX 15.70 12.85 2.91

Birla SL G-Sec-LT(G) 15.61 10.12 4.03

I-Sec Li-BEX 15.70 12.85 2.91

Birla SL Income Plus(G) 13.55 9.41 3.77


Birla SL Constant Maturity 10 Year Gilt Fund-Reg(G) 12.91 6.27 2.45

I-Sec Li-BEX 15.70 12.85 2.91

Birla SL Treasury Optimizer Plan-Ret(G) 11.31 10.87 8.84


Birla SL Short Term Fund(G) 10.37 10.34 7.95


Birla SL FRF-Long Term Plan-Ret(G) 9.36 9.62 9.00

Crisil Liquid Fund Index 8.56 9.49 8.54

Birla SL CPO Fund-Sr 18 8.49 -- –

Crisil MIP Blended Index 10.72 – –




Crisil MIP Blended Index 10.72 -- –





Birla SL Inv Inc-QS I-Ret(G) 7.98 9.52 9.36




Birla SL Qrtly Inv 4(G) 7.63 9.08 9.29


Birla SL CPO Fund-Sr 23 7.59 – –


Birla SL Gilt Plus-Liquid(G) 7.58 8.45 9.14

I-Sec Si-BEX 9.91 8.93 7.10



Birla SL G-Sec-ST(G) 7.31 7.97 8.13

I-Sec Si-BEX 9.91 8.93 7.10

Birla SL CPO Fund-Sr 14 5.26 26.85 –

Crisil MIP Blended Index 10.72 15.45 –

Birla SL Dynamic Asset Allocation Fund(G) 4.86 32.27 2.29

Crisil Balanced Fund Index 4.38 28.89 1.86

Birla SL Gold ETF -2.07 -11.63 -6.20

Gold-India -3.37 -11.08 -3.70



UTI Bond Fund

Fund Objective:The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits.

Key Information:

Product Label:

This product is suitable for investors seeking:

•

•

Regular returns for long term

Investments predominantly in medium to long term debt as well as money market instruments

Fund Managers: Amandeep Singh Chopra

Performance:

Mr. Amandeep Singh Chopra is a graduate from St. Stephens College, Delhi and an MBA from FMS, Delhi. He has been associated with UTI AMC for two decades now. He has managed a variety of funds at UTI MF during his career.

The fund has performed well by delivering annualized return of 7.7% in 1 year and 9% in 3 year period vs. benchmark return of 9.1% and 9% respectively for the given periods. 5-year CAGR return of the fund stands at 9.5% vs. 8.6% of the benchmark index, c l e a r l y i n d i c a t i n g t h e c o n s i s t e n c y i n t h e performance of the fund.

NAV as on December 03, 2015 ( ) 43.4

Inception Date July 18, 1998

Fund Manager Amandeep SinghChopra

Minimum Investment (`)Lumpsum 1000



Exit Load Nil

Benchmark Crisil Composite Bond Fund Index


`

Fund BenchMark

Yearly Returns

13.6

9.1

6.4

12.6

11.6

3.5

0.0

5.0

10.0

15.0


Retu

rn%


Fund Benchmark

4.1

7.7 9 9

.6

5.1

9.1

9 8.6

0

5

10

15


Retu

rn%



Portfolio:

Our View:

The scheme aims to invest in

rated corporate debt papers

and government securities

with relatively low risk and

easy liquidity. The fund holds

81% sovereign bonds, 10%

'AAA' rated papers and 2.6%

'AA' rated papers. Due to an

a p p r e c i a b l e a m o u n t o f

investment in corporate debt

papers, the fund is able to

garner higher returns as

compared to the other funds in

the category.

UTI Bond fund invests in

sovereign bonds as well as

rated corporate debt which

makes it favourable for

investors who desire higher

returns and are ready to take

some risks. The fund is likely to

benefit from the falling interest

r a t e s i n t h e e c o n o m y.

Corporate debt papers which

offer higher interest rates than

G-secs will increase the overall

returns of the fund. The

modified duration of the fund is

7.86 years which means a fall in

interest rates by 100 bps can

yield capital gains of 7.86%.

A & Eqiv -- -- -- -- -- -- -- -- -- -- -- -- -- 0.53

AA & Equiv 2.62 3.30 5.53 5.35 4.83 4.72 4.87 4.85 4.56 4.78 5.40 6.31 9.22 4.96

AAA & Equiv 10.30 10.25 10.07 9.85 9.95 14.50 14.47 9.76 9.20 9.67 9.20 10.75 14.78 15.26

Cash & Equivalent 5.05 1.81 3.34 3.46 6.70 4.34 2.03 2.61 3.14 2.58 12.49 2.38 10.34 8.91

SOV 81.53 84.13 80.56 80.84 78.07 76.00 78.19 82.35 82.69 82.91 72.66 80.26 65.29 69.96Others -- -- -- -- -- -- -- -- -- -- -- -- -- --


CDs -- -- -- -- -- -- -- -- -- -- -- -- -- --

CPs -- -- -- -- -- -- -- -- -- -- -- -- -- --

Corp Bond 12.91 13.56 15.60 15.20 14.78 19.22 19.34 14.61 13.77 14.45 14.61 17.07 24.00 20.75

Gsec 81.53 84.13 80.56 80.84 78.07 76.00 78.19 82.35 82.69 82.91 72.66 80.26 65.29 69.96

Others 5.56 2.31 3.85 3.96 7.15 4.78 2.47 3.04 3.55 2.64 12.73 2.67 10.70 9.29

Avg Maturity(Yrs) 16.27 14.99 14.20 12.78 10.90 10.90 11.07 14.31 14.20 13.03 11.03 11.58 9.75 7.35

Modified Duration 7.86 7.91

Asset Allocation %

Credit quality %





30 -Sep-14 30 -Sep-13 30 -Sep-12

30 -Sep-15 30 -Sep-14 30 -Sep-13

Fund Name

UTI Gilt Adv-LTP(G) 17.06 9.26 7.16

I-Sec Li-BEX 15.70 12.85 2.91

UTI Bond Fund(G) 13.64 9.13 6.39


UTI Dynamic Bond Fund-Reg(G) 12.43 11.43 7.52


UTI CC Balanced Plan 11.66 32.70 2.18

Crisil Debt Hybrid (60:40) 6.07 21.08 5.15

UTI MIS Adv Plan(G) 11.49 22.00 3.92

Crisil MIP Blended Index 10.72 15.45 3.18

UTI Mahila Unit(G) 10.83 22.29 0.64


UTI ULIP(G) 10.73 22.17 3.41


UTI MIS(G) 9.62 15.82 4.09

Crisil MIP Blended Index 10.72 15.45 3.18

UTI G-Sec-STP(G) 8.72 8.48 8.68

I-Sec Si-BEX 9.91 8.93 7.10

UTI Retirement Benefit Pension 8.56 25.65 3.25


UTI Money Market Fund-Reg(G) 8.01 8.71 8.25


UTI Liquid-Cash-Reg(G) 7.91 8.66 8.18


UTI CRTS 1981(D) 6.07 20.36 5.82




MUTUAL FUND TOP PICKS

December 2015

Based on our quarterly rankings, we have updated our mutual fund (MF) top picks.

Mutual Fund Top Picks

Equity

Largecaps

Midcaps

Diversified

ELSS

Birla Sunlife Frontline equity FundICICI Pru Focussed Bluechip Equity FundUTI Opportunities FundSBI Bluechip Fund

HDFC Midcap Opportunities FundICICI Prudential Value Discovery FundFranklin India Smaller Companies FundSBI Magnum Global Fund

Franklin India Prima PlusICICI Prudential Dynamic PlanReliance Equity Opportunities

Axis Long Term EquityICICI Prudential Tax PlanFranklin India Tax shield

Liquid Funds

HDFC Cash Mgmnt Saving Plan ICIC Pru Liquid PlanReliance Liquid Treasury Plan

Ultra Short Term

Birla Sunlife Savings FundFranklin India Ultra Short Term Bond FundICICI Pru Flexible Income Plan

Short Term

Birla Sunlife Short Term FundHDFC Short Term Opportunities FundICICI Pru Short Term Plan

Credit Opportunities FundBirla Sunlife Medium Term PlanFranklin India Short term PlanICICI Prudential Regular Savings

Income FundsICICI PrudenIncome FundBirla Sun Life Income Plus - Regular Plan UTI Bond Fund

Gilts Funds

ICICI Pru Gilt Inv. PF PlanBirla Sunlife Constant Maturity 10 year gilt plan

MIP (Aggressive)

Birla Sunlife Savings 5ICICI Prudential MIP 25DSP Blackrock MIP

Debt


EQUITY MODEL PORTFOLIO

December 2015

Our indicative large-cap equity model portfolio (“Quality-21”) has continued to deliver an impressive return of 81.2% (inclusive of dividends) till date (as on December 9, 2015) since its inception (June 21, 2011) vis-à-vis the benchmark index (S&P BSE Sensex) return of 48.9% during the same period, out-performance of 32.3%. This validates our thesis of selecting companies with sound business fundamentals that forms the core theme of our portfolio. Our “Consistent-15” mid-cap portfolio also continues to outperform, delivering 162.1% (inclusive of dividends) till date (as on December 9, 2015) vis-à-vis the benchmark index (CNX Midcap) return of 68.3%, out-performance of 93.8%. Our consistent outperformance demonstrates our superior stock picking ability as markets in H1CY15 aligned to our view of favourable risk reward, good franchisee vs. reward-at-any-risk businesses. Some key performers of our portfolio are Lupin, Axis Bank and TCS in the large-cap portfolio while Natco Pharma and Shree Cement have delivered stupendous returns in the mid-cap portfolio.

We have always suggested the systematic investment plan (SIP) mode of investment and still find a lot of merit in it as the preferred mode of deployment given the market conditions and volatility associated since the inception of the portfolio. It has outperformed other portfolios, thus, reinforcing our belief in a plan of investment. However, now we are also advising clients to look at lump sum investments on any possible dips.

On a year-to-date (YTD) basis, the markets have been consolidating in a broad range of 8,000-8,800 on the Nifty. This is owing to: a) markets awaiting a turnaround on the ground and, hence, corporate earnings and b) taking a breather post a stupendous rise witnessed in CY14, wherein valuations in some areas were ahead of fundamentals. Going ahead, in the medium term, stocks with reasonable earnings visibility and valuations should do well and will find flavour among investors.

On the back of this run up in stock prices and valuations running ahead of fundamentals, we have aligned our portfolio to capture



December 2015

the new opportunities available in the market. We have replaced Bajaj Auto with Maruti and Titan Company with Asian Paints. Furthermore, we have transferred Bosch which was earlier a part of the mid-cap portfolio to the large-cap portfolio. Apart from shuffling stocks, we have also increased/reduced the allocation weights of some companies.

In the large-cap space as compared to broader indices we continue to remain overweight on Pharma & IT, following which FMCG forms the major portion of the asset allocation. We continue to remain underweight on metals and oil & gas with our only pick being ONGC and Tata Steel, which have a better risk-reward opportunity. We believe that return on investment (RoI) for these sectors would continue to remain stressed due to a subdued pricing environment and discreet trade activities. We continue to remain over-weight to neutral on pure play defensives (IT, FMCG) as secular earnings coupled with sector rotation could lead to consolidation in near term valuations and offer stock specific opportunities. We remain positive on auto, pharma, capital goods and infrastructure.

Among individual names, we are strongly overweight on Infosys, TCS in the IT space, HDFC and HDFC Bank in the BFSI space, ITC and PVR in consumer space and L&T and NBCC in the infra space.

House view on Index: Factoring in the fall in inflation, comfortable CAD (current account deficit), improved sentiments and pick-up in GDP (gross domestic product) growth, we expect Sensex EPS (earnings per share) to grow 13.2% and 19.4% to Rs. 1,539 and Rs. 1,838 during FY16E and FY17E, respectively (CAGR of 16% in FY15-17E). We assign a P/E (price-to-earnings) multiple of 16.5x on FY17E EPS to arrive at a fair value of 30,300 for the Sensex by end CY15 with the Nifty estimated to reach 9,100.



December 2015

Name of the company

Largecap Stocks

Model Portfolio

Largecap(%)

Midcap(%)

Diversified(%)

Auto 10 7

Tata Motor DVR 3 2.1

Bosch 3 2.1

Maruti 4 2.8

BFSI 29 20.3

HDFC Bank 8 5.6

Axis Bank 7 4.9

HDFC 8 5.6

SBI 6 4.2

Capital Goods 6 4.2

L & T 6 4.2

Cement 3 2.1

UltraTech Cement 3 2.1

FMCG/Consumer 13 9.1

ITC 7 4.9

United Spirits 2 1.4

Asian Paints 4 2.8

IT 18 12.6

Infosys 10 7

TCS 8 5.6

Meida 2 1.4

Zee Entertainment 2 1.4

Metal 2 1.4

Tata Steel 2 1.4

Oil & Gas 3 2.1

ONGC 3 2.1

Pharma 11 7.7

Lupin 6 4.2

Dr Reddys 5 3.5

Telecom 3 2.1

Bharti Airtel 3 2.1

Largecap share in diversified 70



December 2015

Content source: ICICIdirect.com Research

ICICI Securities has received an investment banking mandate from Government of India for disinvestment in ONGC.

ICICI Securities Limited has received an Investment Banking mandate from Castrol India Ltd.

ICICI Securities has received an investment banking advisory mandate from Kansai Nerolac Paints Limited.

This report is prepared based on publicly available information.

Midcap Stocks

Name of the company Model Portfolio

Largecap(%)

Midcap(%)

Diversified(%)

Auto 8 2.4

Eicher Motors 8 2.4

BFSI 14 4.2

Bajaj Finance 8 2.4

CARE 6 1.8

Capital Goods 6 1.8

Cummins 6 1.8

Cement 6 1.8

Shree Cement 6 1.8

Consumer 12 3.6

Symphony 6 1.8

Kansai Nerolac 6 1.8

FMCG 8 2.4

Nestle 8 2.4

Infrastructure 6 1.8

NBCC 6 1.8

Logistics 6 1.8

Container Corporation of India 6 1.8

Media 8 2.4

PVR 8 2.4

Oil & Gas 6 1.8

Castrol 6 1.8

Pharma 14 4.2

Natco Pharma 8 2.4

Torrent Pharma 6 1.8

Textile 6 1.8

Arvind 6 1.8

Total 100 30

Total of all three portfolios 100 100



Performance* so far Since inception

*Returns (in %) as on

Large-cap Portfolio Benchmark: BSE Sensex; Mid-cap Portfolio

Benchmark: CNX Midcap; Diversified Portfolio Benchmark: Combination

of BSE Sensex and CNX Midcap

December 09, 2015

Value of ` 1,00,000 invested via SIP at the end of every month

Portfolio Benchmark

Investment Value of Investment in Portfolio Value if invested in Benchmark

Start date of SIP: , 2011; *Value as on June 30 December 09

December 2015

81.2

162.1

98.8

48.9

68.3

48.0

0

25

50

75

100

125

150

175

%

5,5

00,0

00

5,5

00,0

00

5,5

00,0

00

6,6

94,4

46

9,7

85,8

64

7,2

03,7

73

6,1

15,0

29

6,5

56,0

04

6,1

82,4

31

3,500,000

4,500,000

5,500,000

6,500,000

7,500,000

8,500,000

|

QUIZ TIME

1. Medical premium deduction under section 80D has been increased from Rs. 15,000 to Rs. _____.

2. The current interest rate for Sukanya Samriddhi account is ______ % p.a.

3. The total tax deduction available for investing into National Pension System (NPS) is Rs. ______ lakh as per current tax laws.

4. The maturity of Sukanya Samriddhi account is ______ years from the date of opening of the account.

5. Rs. 5,000 tax deduction available for preventive health check-ups is over and above the limit available under section 80D. True / False

Note: All the answers are in the stories that have appeared in this edition of ICICIdirect Money Manager. You may send in your answers at: [email protected]. The answers will be published in our next edition. The names of the earliest all correct entries will be published too. So jog your grey cells and be quick to send in your entries.

Correct answers for the November 2015 quiz are:

1. You can claim deduction for Leave Travel Allowance (LTA) for your foreign trip. True/False

A: False

2. Contributions to Voluntary Provident Fund (VPF) account can go up to ______% of the basic salary.

A: 100%

3. The maximum benefit that one can get under gratuity is Rs. ______ lakh.

A: 10 lakh

4. After 7 years of service, you can withdraw maximum ______% of your EPF (Employee Provident Fund) share, from your EPF account, for your children's education.

A: 50%

5. You can claim deduction for House Rent Allowance (HRA) even when you are staying with your parents, provided you pay rent to them. True/False

A: True

Congratulations to the following winner for providing correct answers!Manu Gupta



PRIME NUMBERS

December 2015

Equity Markets

Domestic Equity Indices

Global Equity Indices

Sectoral Indices

Volatility Index (VIX)

30-Nov-15 30-Oct-15 Change (%)

CNX Nifty 7935.2 8065.8 -1.6%

CNX Midcap 13248.7 13238.5 0.1%

S&P BSE Sensex 26656.8 26154.8 1.9%

S&P BSE 100 8082.0 8193.9 -1.4%

S&P BSE 200 3365.3 3404.2 -1.1%

S&P BSE 500 10580.9 10671.6 -0.8%


Dow Jones 17,719.9 17,663.5 0.3%

S&P 500 2,080.4 2,079.4 0.0%

Nasdaq 5,108.7 5,053.8 1.1%

FTSE 6,356.1 6,361.1 -0.1%

DAX 11,382.2 10,850.1 4.9%

CAC 40 4,957.6 4,897.7 1.2%

Nikkei 19,747.5 19,083.1 3.5%

Hang Seng 21,996.4 22,640.0 -2.8%

Shanghai Composite 3,445.4 3,382.6 1.9%

Taiwan Weighted 8,320.6 8,554.3 -2.7%

Straits Times 2,855.9 2,998.4 -4.8%


S&P BSE Auto 18,964.4 18,166.2 4.4%

S&P BSE Bankex 19,916.3 19,773.9 0.7%

S&P BSE FMCG 4,267,914 4,232,894 0.8%

S&P BSE Healthcare 16,298.4 18,066.4 -9.8%

S&P BSE Metals 7,118.4 7,307.7 -2.6%

S&P BSE Oil & Gas 9,328.4 9,065.9 2.9%

S&P BSE Power 1,901.8 1,917.1 -0.8%

S&P BSE Realty 1,343.9 1,371.6 -2.0%

S&P BSE Teck 5,942.8 6,115.0 -2.8%


VIX 16.43 17.88 -8.1%


PRIME NUMBERS

Debt Markets

Government Securities (G-Sec) Yields (in %) Nov-15 Oct-15 Change (bps)

Corporate Bond Yields (in %) Nov-15 Oct-15 Change (bps)

Certificate of Deposit (CD) Rates (in %) Nov-15 Oct-15 Change (bps)

Commercial Paper (CP) Rates (in %) Nov-15 Oct-15 Change (bps)

Treasury Bill (T-Bills) Yields (in %) Nov-15 Oct-15 Change (bps)

10 year 7.79 7.64 15

5 year 7.84 7.69 16

3 year 7.50 7.48 2

1 year 7.25 7.20 5

AAA 10 year 8.29 8.19 9.6

AAA 5 year 8.24 8.18 5.8

AAA 3 year 8.15 8.08 6.4

AAA 1 year 7.99 7.90 9.0

AA 10 year 8.84 8.68 16.1

AA 5 year 8.50 8.57 -7.2

AA 3 year 8.44 8.55 -10.3

AA 1 year 8.48 8.56 -7.5

12 Months 7.55 7.57 -2

6 Months 7.45 7.38 7

3 Months 7.28 7.27 0

1 Month 7.05 7.05 0

12 Months 8.19 8.06 13

6 Months 7.98 7.89 8

3 Months 7.71 7.69 3

1 Month 7.51 7.43 9

91D TB 7.14 7.10 4.0

182D TB 7.18 7.14 3.5

364D TB 7.20 7.18 2.0


PRIME NUMBERS

10-year benchmark yields (%) across countries

Inflows In Equity and Debt Markets

Macro-economic Indicators

Consumer price index (CPI)

Wholesale price index (WPI)

Countries 30-Nov-15 30-Oct-15 Change in bps

US 2.21 2.14 6

UK 1.83 1.92 (10)

Japan 0.31 0.31 (0)

Spain 1.52 1.67 (15)

Germany 0.47 0.52 (5)

France 0.79 0.86 (8)

Italy 1.42 1.48 (6)

Brazil 15.87 15.89 (3)

China 3.12 3.08 4

India 7.79 7.64 15

MF Inflows (in Rs. crore) Nov-15 Oct-15 YTD

Equity 4,732 2,952 64,485

Debt 21991 25128 4,03,839

FII Inflows (in Rs. crore) Nov-15 Oct-15 YTD

Equity -7629 5064 19047

Debt -3639 15627 50975

Items Weights Nov15 (in %) Oct-15 (in %) Sep-15 (in %)

Food & beverages 45.86 6.08 5.34 4.29

Pan, tobacco and intoxicants 2.38 9.50 9.50 9.35

Cloth & Foot 6.53 5.76 5.62 6.00

Housing 10.07 4.95 4.88 4.74

Fuel & light 6.84 5.28 5.32 5.42

Misc. 28.31 3.78 3.51 3.34

CPI 100 5.41 5.00 4.41

Particulars Weights (in %) Nov. (in %) Oct. (in %) Sept. (in %)

WPI 100 -1.99 -3.81 -4.54Primary Articles 20.1 2.27 -0.36 -2.09Fuel & Power 14.9 -11.09 -16.32 -17.71Manufactured Goods 65 -1.42 -1.67 -1.73


PRIME NUMBERS

Index of industrial production (IIP) Sector-wise growth rate (%)

Currencies and CommoditiesCurrencies

Commodities

Mutual Funds: Category Average Returns

Equity Funds Returns (in %)

Tenure Diversified Funds Mid-cap & Small-cap

Funds

Large-capFunds

ELSS (Tax-

savingfunds)

Returns as on Oct. 30, 2015

Debt Funds Returns (in %)

Tenure Liquid Funds Short-termincome funds

Ultra short-term funds

Long-termincome funds

Returns as on Oct. 30, 2015

Gilt funds

Sources for above data: Bloomberg, Reuters, CRISIL, MOSPI, ICICIdirect.com Research

30-Nov-15 30-Oct-15 Change (%) StatusUSDINR 66.67 65.27 -2.1% DepreciatedEURINR 70.47 71.85 1.9% AppreciatedGBPINR 100.08 100.15 0.1% AppreciatedAUDINR 48.00 46.36 -3.5% DepreciatedCHFINR 64.65 65.99 2.0% AppreciatedJPYINR 0.54 0.54 0.2% AppreciatedCNYINR 10.42 10.33 -0.9% Depreciated

30-Nov-15 30-Oct-15 Change (%)Crude ($/barrel) 42.8 47.6 -10.1%Gold ($/ounce) 1,064.8 1,142.2 -6.8%

6-month -0.65 3.70 -3.44 -1.501-year 3.55 12.66 -1.50 2.423-year 19.00 27.97 15.10 18.505-year 11.24 17.26 9.02 10.80

6-month 7.54 7.78 funds 7.00 6.531-year 8.09 8.35 8.34 8.44 8.433-year 8.61 8.70 8.82 8.65 8.77

Categories Weight (%) 15-Oct 15-Sep 15-AugMining 14.2 4.7 3 3.8Manufacturing 75.5 10.6 2.6 6.9Electricity 10.3 9 11.4 5.6Overall IIP growth 100 9.8 3.8 6.3


ICICIdirect Centre for Financial Learning (ICFL) imparts quality education on financial markets to beginners and amateurs, student, housewives, working professionals and self employed. ICFL's broad objective is to make participant feel confident to start investing in stock market.

Here is the list of our programmes scheduled for the month of December, 2015.

Schedule for Beginners' programme on Futures and Options (F&O) TradingSr.No

City Dates For More Information & Registration call:

Premium Education Programmes Schedule

1 Bangalore 5th and 6th December 2015 Subrata on 9620001478

2 Pune 19th and 20th December 2015 Kusmakar on 7875442311

3 Nagpur 19th and 20th December 2015 Kusmakar on 7875442311

4 Mumbai 26th and 27th December 2015 Nihal on 9619359592

5 New Delhi 19th and 20th December 2015 Vishal on 07838290143, Harneet on 09582158693

6 Mumbai 26th and 27th December 2015 Manish on 8451057943


Schedule for Fast-Track Programme on Futures & Options (F&O)Sr.No City Dates For More Information & Registration call:

8 Thrissur 12th December 2015 Subrata on 9620001478

9 Vadodara 20th December 2015 Yogesh on 8238053563

Sr.No


Schedule for Technical Analysis Programme


11 Hyderabad 5th and 6th December 2015 Ruchi on 8297362323



14 Chennai 19th and 20th December 2015 Rajat on 9962294867


Sr.No


Schedule for Foundation Programme on Stock Investing


17 Hyderabad 19th and 20th December 2015 Ruchi on 8297362323

18 Kolkata 5th and 6th December 2015 Sumit Sarkar on 8017516187







25 Chennai 12th and 13th December 2015 Rajat on 9962294867


27 Chandigarh 19th and 20th December 2015 Vishal on 07838290143, Harneet on 09582158693



Contact us

Email:

Send us an email at [email protected] mention the name, date and venue of the programme you have

attended or wish to attend, for faster resolution of your queries.

SMS:

SMS EDU to 5676766 for more details

Sr.No City Dates For More Information & Registration call:

Schedule for Fast-track Programme on Technical Analysis

Sr.No City Dates For More Information & Registration call:

Schedule for Techno Derivatives Programme

Schedule for Fast-track Programme on Stock InvestingSr.No


29 Vijayawada 3rd Jan 2016 Ruchi on 8297362323

30 Aurangabad 13th December 2015 Kusmakar on 7875442311

31 Ahmedabad 27th December 2015 Yogesh on 8238053563

32 Surat 20th December 2015 Yogesh on 8238053563

33 Patna 6th December 2015 Sumit Sarkar on 8017516187

34 Agra 20th December 2015 Vishal on 07838290143, Harneet on 09582158693

35 Bikaner 13th December 2015 Vishal on 07838290143, Harneet on 09582158693

36 Ajmer 13th December 2015 Vishal on 07838290143, Harneet on 09582158693

37 Jaipur 13th December 2015 Vishal on 07838290143, Harneet on 09582158693

32 Visakhapatnam 12th December 2015 Ruchi on 8297362323


34 Ahmedabad 19th and 20th December 2015 Yogesh on 8238053563

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