KARVY’s

January, 2019

INVESTOR JOURNAL

www.karvyvalue.com

What’s Inside

KARVY’sINVESTOR JOURNAL

Fund of the MonthMotilal Oswal Multicap 35 Fund-Reg(G)

The investment objective of theScheme is to achieve long term capital...January, 2019

Page 05

Market ReviewPage 01

Karvy Investment InsightPage 03

Fund of The MonthPage 05

AMC CornerPage 06

Story of The MonthPage 08

SIP PerformancePage 09

Category Average ReturnsPage 10

Fixed Deposits SchemesPage 11

Equity Funds PerformancePage 12

Debt Funds PerformancePage 13

Global Markets at a GlancePage 14

Indices WatchPage 15

Highlights of the Month » The Asset under management of the mutual fund industry for

Nov 2018 has been grown by 8% from Rs. 22.24 lakh crore in Oct 2018 to Rs. 24.03 lakh core.

» AMFI Data Shows that Mutual fund inflows grew more than four times to touch Rs. 1.42 lakh crore compared to Rs. 35,529 crore during October. A key contributor to this increase is the sharp rise in liquid fund flows which grew from Rs. 55,296 in October to Rs.1.36 lakh crore in November.

» AMFI is preparing to launch a new campaign “FD Jaisa Lagta Hai” to promote investment in debt funds. The campaign is planned to run across various media channels including television, radio, print, online platforms and hoarding in different languages.

» SIP flows continue to hold their position at Rs. 7,985 crore indicating resilience on part of retail investors to continue to invest in the India growth story.

» Yes Asset Management (India), the wholly owned subsidiary of Yes Bank has received SEBI approval to launch: Yes Liquid Fund and Yes Ultra Short Term Fund.

» Securities and Exchange Board of India (SEBI) believes that distributors are going to play an integral role in expanding the penetration of mutual funds in India. The market regulator aims mutual funds to achieve geographical diversification. Distributors have been instrumental in B30 penetration of mutual funds.

» Flipkart, Indian e-commerce major, is going to begin distributing financial products such as mutual funds and insurance using its digital payment application.

» Retail investors have been the key drivers of mutual fund industry in the last few years. Retail AUM grew at 31% year-on-year since 2014. A major portion of the retail AUM growth (84%) came from inflows while the rest came from mark to market gains, shows the latest CII and McKinsey reports.

» SEBI has announced the fresh TER slabs which will be implemented from April 1, 2019.

» The regulatory reforms “The ban on upfront commission and rationalization of TER” may be painful in short term but will have positive impact on the long term growth of the mutual fund industry says SV Muralidhar Rao, Executive Director, SEBI at the recently held CII Mutual Fund Summit 2018.

INVESTOR JOURNALJanuary, 2019

Market Review

EXPORTS:

» According to a data released by the Ministry of Commerce and Industry, Exports in November 2018 were US $ 26.50 Billion, as compared to US $ 26.29 Billion in November 2017, exhibiting a positive growth of 0.80 per cent.

» Cumulative value of exports for the period April-November 2018-19 was US $ 217.52 Billion as against US $ 194.93 Billion during the period April-November 2017-18, registering a positive growth of 11.58 per cent in Dollar terms.

» Non-petroleum and Non Gems and Jewellery exports in November 2018 were US $ 18.57 Billion, as compared to US $ 19.32 Billion in November 2017, exhibiting a negative growth of 3.93 per cent. Non-petroleum and Non Gems and Jewellery exports in April-November 2018- 19 were US $ 156.55 Billion, as compared to US $ 143.77 Billion for the corresponding period in 2017-18, an increase of 8.89 per cent.

» As per the data, petroleum products, organic and inorganic chemicals, drugs and pharmaceuticals and electronic goods showed a high export growth during the month under review.

IMPORTS:

» Imports in November 2018 were US $ 43.17 Billion, which was 4.31 per cent higher in Dollar terms over imports of US $ 41.39 Billion in November 2017.

» Cumulative value of imports for the period April-November 2018-19 was US $ 345.64 Billion, as against US $ 301.31 Billion during the period April-November 2017-18, registering a positive growth of 14.71 per cent in Dollar terms.

CRUDE OIL AND NON-OIL IMPORTS:

» Oil imports in November 2018 were US $ 13.49 Billion, which was 41.31 percent higher in Dollar terms, compared to US $ 9.55 Billion in November 2017.

» Global Brent crude oil price increased by 4.16 per cent in November 2018 vis-à-vis November 2017.

» Oil imports in April-November 2018- 19 were US $ 97.43 Billion which was 49.14 per cent higher in Dollar terms compared to US $ 65.33 Billion, over the same period last year.

» Non-oil imports in November 2018 were estimated at US $ 29.68 Billion which was 6.79 per cent lower in Dollar terms, compared to US $ 31.84 Billion in November 2017. Non-oil imports in April-November 2018-19 were US $ 248.21 Billion which was 5.18 per cent higher in Dollar terms, compared to US $ 235.98 Billion in April-November 2017-18.

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Wishing our readers a prosperous and happy new year. At the start of 2018 there were lot of optimism and market players (Retail, Institutional, FII etc.) were expecting repeat of 2017. However as it turned out 2018 was all about playing on a 5th day pitch against the likes of Lyon or Yashir shah. Indian market as well as global market has seen increasing volatility in 2018. Markets were having its own pulls and pressures all around the year. On one hand, depreciating rupee, tariff war, IF&SL fiasco, liquidity tightening, political uncertainty was pulling down the market but on the other hand, Domestic Growth, corporate earning and Government reforms were trying to pull up the market.

Though the year ended on happy note with benchmark indices Sensex and Nifty giving returns of 6% and more than 3% respectively, it was not the same case for Mid and small caps which has disappointing year with a drawdown of more than 10%.

Keeping money is harder than making money. The category average return of most of the debt funds were in positive and many of the well managed schemes given exceptional returns. This was mainly due to falling Crude prices and stable INR and quality portfolio holding.

We advice our investors to remain cautiously optimistic about Indian market and follow prudent asset allocation and ride the expected volatility in 2019 (yes, volatility will persist) with Investment through SIP. While equities may still be outperforming other alternate asset classes, it is important to expect moderate returns going forward. Remember to increase the equity exposure when markets become volatile.

“The wise ones bet heavily when the world offers them opportunity. They bet big when they have the odds. And the rest of the time, they don’t.” - Charlie Munger

INVESTOR JOURNALJanuary, 2019

S&P BSE SENSEXDate Close Price Points Diff %age Change

03-Dec-18 36,241

10-Dec-18 34,960 -1281.28 -3.5%

17-Dec-18 36,270 1310.35 3.7%

24-Dec-18 35,470 -799.92 -2.2%

28-Dec-18 36,077 606.57 1.7%

Overall Change -0.45%

CNX Nifty IndexDate Close Price Points Diff %age Change

03-Dec-18 10,884

10-Dec-18 10,488 -395.30 -3.6%

17-Dec-18 10,888 399.90 3.8%

24-Dec-18 10,664 -224.85 -2.1%

28-Dec-18 10,860 196.40 1.8%

Overall Change -0.22%

MF Activity: (Month Between 01-Dec-2018 to 28-Dec-2018)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Dec-18 2,488 3,248 -760

10-Dec-18 2,727 3,058 -331

17-Dec-18 1,682 1,770 -89

24-Dec-18 1,482 1,148 333

27-Dec-18 3,617 5,155 -1,537

Total 43,426 42,912 513

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Dec-18 19,407 9,739 9,668

10-Dec-18 10,521 10,214 307

17-Dec-18 10,969 7,555 3,414

24-Dec-18 9,604 6,406 3,197

27-Dec-18 10,784 6,564 4,220

Total 2,17,269 153,939 63,330

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FII Activity: (Month Between 01-Dec-2018 to 28-Dec-2018)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Dec-18 5,215 5,053 162

10-Dec-18 5,964 4,169 1,795

17-Dec-18 3,239 3,441 -202

24-Dec-18 1,768 2,641 -873

27-Dec-18 5,602 4,025 1,577

Total 86,213 82,682 3,531

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Dec-18 798 2,339 -1,541

10-Dec-18 553 1,996 -1,443

17-Dec-18 822 834 -12

24-Dec-18 1,141 582 558

27-Dec-18 323 487 -164

Total 26,283 21,317 4,966

-----------------------------------------------------------------------------------------------------------------------------------------------------------Source : ACE MF

» Non-Oil and Non-Gold imports were US $ 26.92 billion in November 2018, recording a negative growth of 5.78 per cent, as compared to Non-Oil and Non-Gold imports in November 2017. Non-Oil and Non-Gold imports were US $ 226.13 billion in April-November 2018-19, recording a positive growth of 6.27 per cent, as compared to Non-Oil and Non-Gold imports in April-November 2017-18.

» The Rupee ranged between Rs.73.873 - Rs.69.570 per USD before closing at Rs.69.65 per USD in the month of Nov’18, vis-à-vis Rs.73.96 per USD recorded in Oct’18.

Foreign Trade: » India trade deficit widened to USD 16.67 billion in November

of 2018 from USD 15.1 billion a year earlier and slightly higher than market expectations of USD 16.08 billion.

CPI Inflation: » Annual consumer inflation in India declined to 2.33 percent

in November of 2018 from an upwardly revised 3.38 percent in October and below market expectations of 2.8 percent. This was primarily because prices for food and beverages declined. It is the lowest inflation rate since June of 2017 as food prices fell the most since the series began in 2012. Core inflation, which excludes food and energy products, moderated to 5.8% in November from 6.3% in October.

WPI Inflation: » Wholesale prices in India rose by 4.64 percent year-on-year

in November 2018, slowing from a 5.28 percent gain in the prior month and slightly below than market estimates of 4.7 percent. It was the lowest wholesale inflation since August, as cost increased at a softer pace for fuel and manufactured products while prices of food declined further.

IIP: » India’s industrial output rose 8.1 percent from a year earlier in

October 2018, following a 4.5 percent growth in the previous month and easily beating market expectations of 5.7 percent advance. It was the steepest increase in industrial production since November last year led by strong output expansion for all sectors: manufacturing (7.9 percent vs 4.6 percent in September); mining (7 percent vs 0.1 percent); and electricity (10.8 percent vs 8.2 percent). In April to October 2018-19, industrial production rose 5.6 percent, compared to 2.5 percent growth in the same period of the previous fiscal year.

Indices: » Among the BSE sectoral indices, S&P BSE PSU with 5.80%

was the top gainer and S&P BSE Health Care Index with -2.86 % was the top looser.

» Major Asian Indices has given negative returns with Hangseng, Taiwan, Nikkei 225 ended by -3.78% and -1.62%, -10.45% respectively.

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INVESTOR JOURNALJanuary, 2019

Karvy Investment Insight

Peace of mind and Wealth Creation ideas for long term

Karvy Insights brings to you investment wisdom to help our investors make sound investment decisions and reach their goals faster. These inputs may not help you become wealthy in a short span of time, but they would definitely give you peace of mind and a roadmap for your financial journey.

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You spend years trying to learn new stuff but

then look back and realize just a few big ideas

changed how you think and drive most of what

you believe.

Investing Ideas That Changed My Lifeby Morgan Housel

A few ideas that had a big impact on how I think about investing:

Markets have to be pushed to crazy extremes once in a while, but it’s never as crazy as it looks. It’s the result of five innocent things playing out:

• Investors have different time horizons. Day traders, generational buy-and-holders, and everything in between.

• Each group tries to exploit profit opportunities within their own timeframe.

• Short-term investors are often after momentum. They can reasonably chase prices higher even when those prices are detached from a business’s intrinsic value.

• Sometimes that momentum, and those profits, are strong enough to capture the attention of investors with longer time horizons whose strategy relies on businesses trading at or near their intrinsic value.

• Things get crazy when the actions of long-term investors playing one game become influenced by the actions of short-term investors who are playing a different game and appear to know something the long-termers don’t. The long-termers usually don’t realize this, which is why the process is both innocent and bewildering, even in hindsight.

INVESTOR JOURNALJanuary, 2019

Karvy Investment Insight

4

When viewed this way, bubbles stop looking like the actions of crazy people and more like people

being unwittingly influenced by false signals. Which hopefully helps you avoid those signals yourself.

Keeping money is harder than making money, because you can get rich by luck, but staying

rich is almost always due to a series of good, hard decisions. The skills needed for getting rich and

staying rich are often opposites-be bold and brave, then diversify and remain paranoid. Then there’s

the mental momentum that getting rich creates that staying rich has to step in and try to block.

It goes like this: The more successful you are at something, the more convinced you become that

you’re doing it right. The more convinced you are that you’re doing it right, the less open you are

to change. The less open you are to change, the more likely you are to trip in a world that changes

all the time. I’d be more impressed with a Forbes list of billionaires ranked by longevity vs. amount.

You can’t believe in risk without also believing in luck, because they are fundamentally the same

thing-an acknowledgment that you are one person in a 7 billion player game, and the accidental

impact of other people’s actions can be more consequential than your own. But the path of least

resistance is to be keenly aware of risk when it affects you, and oblivious to luck when it helps you.

Investors adjust returns for risk; never for luck. Companies disclose known risks in their annual

reports; lucky breaks are rarely mentioned. The danger is that experiencing risk reduces confidence

when it should merely highlight reality, which can make future decisions more conservative than

they ought to be. Luck increases confidence without increasing ability, which makes people double

down with less room for error than before. Realizing that luck and risk are ever-present and normal

makes you accept that not everything is in your control, which is the only way to identify whatever

is in your control.

There are two types of information in investing: stuff you’ll still care about in the future, and

stuff that matters less and less over time. Long-term vs. expiring knowledge. There’s so much

information these days that it’s vital to align what you read with how relevant that reading will

remain over time. Quarterly earnings are important, but their relevance declines over time and

expires with a long enough time horizon. Same with economic news, market news, and many

company missteps-asking whether news is important misses the bigger question of, “How long

will this remain important given my strategy and time horizon?” I have a rule of thumb: Read more

books and fewer articles. It’s not that articles are bad. But books tend to be about timeless principles;

articles tend to be more newsy. And the only way to know what kind of news is relevant to you is to

have a deep understanding of the principles that will have the biggest impact on your strategy over

the longest period of time.

-----------------------------------------------------------------------------------------------------------------------------------------------------------This story has been published from collaborative fund feed with certain modifications to the text.

INVESTOR JOURNALJanuary, 2019

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‘Tweets’ of the Month

Fund of The Month

Motilal Oswal Multicap 35 Fund-Reg(G)

Investment Objective:

The investment objective of the Scheme is to achieve long term capital appreciation by primarily investing in a maximum of 35 equity & equity related instruments across sectors and market-capitalization levels. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Portfolio:Top 10 Companies Holdings

Name %age

HDFC Bank Ltd. 9.2

Housing Development Finance Corporation Ltd. 8.6

Infosys Ltd. 6.6

Maruti Suzuki India Ltd. 5.6

IndusInd Bank Ltd. 5.4

Tata Consultancy Services Ltd. 5.1

Larsen & Toubro Ltd. 4.6

Bajaj Finance Ltd. 4.5

United Spirits Ltd. 4.2

Eicher Motors Ltd. 4.0

Top 10 Sector Wise Holding

Industry Name (%)

Bank - Private 20.0

IT - Software 13.3

Finance - Housing 9.7

Insurance 6.4

Automobiles - Passenger Cars 5.6

Refineries 5.3

Engineering - Construction 4.6

Pharmaceuticals & Drugs 4.6

Finance - NBFC 4.5

Breweries & Distilleries 4.2

To read the full Information, Click Here

Indicates an increase or decrease or no change in holding since last profile. Indicates an increase or decrease in holding since last portfolio.

INVEST HERE

Love this quote: "At any gathering of people... the really

interesting conversations and actions almost always happen around the edges.

Change almost always starts at the EDGES and moves toward the CENTER.” - Seth

Godin

- David Perell @david_perell

“We shouldn’t focus on a single scenario, or we will

overestimate its probability. Let’s set up specific alternatives and make the

probabilities add up to 100%.” Kahneman on dealing with rare but worrying events.

- Vetri Subramaniam@VetriSmv

Source : ACE MF

"I don't know" is not a failure, but a

necessary step towards enlightenment. Annie Duke

- Mahesh@invest_mutual

----------------------------------------------------------------------------------------------------------------------------------------------------------

We live in a strange world.. where

car insurance is mandatory but life insurance is not. Value

ur life before anything else. #FinancialPlanning

- TheMFGuy @TheMFGuy1

At some point you need to stop quoting

investors and start being one. ~Nobody

- Abhishek Murarka@abhymurarka

INVESTOR JOURNALJanuary, 2019

AMC Corner

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Paying tax is an obligation we all have to fulfill and it is important that we are aware of all the avenues that can help us save tax and at the same time build wealth over time. There are multiple investment avenues available these days that automatically take care of your tax liabilities and at the same time secure your life and health.

These tax savers cover a wide ambit, from the tuition fee you pay for your children’s school to the preventive health checkup you go for. Most of us wait till the year end to hastily plan our tax savers but it should rather be a year-round affair. Just like your Provident Fund (PF) gets deducted every month from salary, your tax planning too should move regularly. Remember, investing too is a form of saving. National Pension System (NPS), home loan, pension funds, insurance, ELSS, etc, are all investments that secure your future.

By taking up a good health and life policy, the gain is not just in terms of taxes; your dependents have it easy even when you are not around. Read on to find out how some simple decisions can have a far reaching impact.

Saving Taxes

Spreading the Section 80Cbenefits with Rs.1.5 lakh limit

INVESTOR JOURNALJanuary, 2019

AMC Corner

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LIKE US ON FACEBOOK FOLLOW US ON TWITTER

Courtsey: Joint Initiation by Invesco and Karvy

Other Tax Savers

Income TaxSection

What canyou do? Maximum Investment

Section80CCC

Claim tax deductions oncontributionsto annuity plansfrom insurers

Rs.1.5 lakh in conjunction with Section 80C benefit in a financial year

Section80D*

Purchasemedicalinsurancepolicies forself, family andparents

Self and family: Rs. 25,000Senior citizen: Rs. 30,000Self and family +parents: Rs. 50,000Self and family +senior citizen parents: Rs. 55,000

Section80CCD

Contribute tothe NationalPension System(NPS)

Employee and/or employer contribution up to 10% of basic salary and DA** is eligible up to Rs.1.5 lakh for tax deduction in conjunction with Section 80C benefits under Section 80CCD(1&2) as applicable.Additional exemption up to Rs.50,000 in NPS is eligible for income tax deduction outside the Section 80C limit and can be claimed as a deduction under Section 80CCE

*Additional deduction of Rs.5,000 on expenses related to health check-up. ** Dearness allowance;By exhausting the investment options under Section 80C one can save tax up to Rs.46,350 for thefinancial year 2018-19, provided one falls under the highest tax bracket.

INVESTOR JOURNALJanuary, 2019

Story of The Month

One day, a professor entered the classroom and announced a surprise test. Hearing this, all students got anxious and started thinking about what would come up in the test. The professor distributed the question paper, with the front side facing down. After handing over the papers to all the students, he asked them to turn the page and start the test. To everyone's surprise, there were no questions in the test paper. There was just a black dot in the center of the page. Everyone was startled and looked at the professor in awe. The professor told the students:

“I want you to write a few lines about what you see on the paper.”

All the students were stupefied but since they didn’t have a choice, they started writing the answer.

THE BRIGHTER SIDE OF LIFE

Once everyone was through with the test, the professor collected all the answer sheets, and started reading out each answer aloud in front of the whole class. Without an exception, all the students had written about the black dot, mentioning about its position, size etc. After reading out all the answers, the professor addressed the students and told them:

“None of you will be graded on this test. I just wanted you to ponder over something. All of you wrote about the black dot. No one wrote about the white part of the paper. The same thing happens in our lives too. We all have a white paper to observe and learn from, yet we always focus on the dark spots. We have so many reasons to celebrate - our parents, co-workers, friends, good health, a satisfactory job, a child’s smile, the miracles we witness every day, and so on.

However, we simply limit our horizons by focusing on just the dark spots - our disappointments, our frustrations, our fears and anxieties, things that bother us, people that wronged us, etc. In our day-to-day lives, we tend to take so many good things for granted, and focus our energy on insignificant dot-like failures and disappointments.”

MORAL OF THE STORY:

Courtesy : Karvy Learning Center

Direct Dil Se…

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Though these dark spots are quite small as compared to the good things that we have in our lives, yet we allow them to perturb our minds and this does not let us think positively.Take your eyes away from the black dots of your life. Try and focus on the brighter side of life and let positivity govern your thoughts.

INVESTOR JOURNALJanuary, 2019

SIP Performance

S&P BSE SENSEXCurrent NAV (`)

3 Year SIP 5 Year SIP

Rs.36000 Rs.60000

Profit-SIP XIRR(%) Profit-SIP XIRR(%)

Large and Large and mid cap

Mirae Asset Emerging Bluechip-Reg(G) 50.26 7881.64 13.38 34371.65 18.24

Canara Rob Emerg Equities Fund-Reg(G) 89.03 5619.46 9.72 28001.54 15.37

Principal Emerging Bluechip Fund(G) 101.08 5140.60 8.93 25208.27 14.06

Sundaram Large and Mid Cap Fund(G) 33.35 7429.74 12.66 24136.20 13.54

Invesco India Growth Opp Fund(G) 32.80 7025.62 12.01 22115.97 12.56

Mid and small cap

SBI Small Cap Fund-Reg(G) 50.40 6361.97 10.94 35280.05 18.63

Reliance Small Cap Fund(G) 39.75 5580.78 9.65 29753.82 16.18

HDFC Small Cap Fund-Reg(G) 42.54 8201.64 13.89 29429.33 16.03

Axis Midcap Fund(G) 35.67 8433.50 14.26 25283.51 14.09

L&T Emerging Businesses Fund-Reg(G) 24.84 7015.16 12.00 0.00 0.00

Multi cap

Mirae Asset India Equity Fund-Reg(G) 48.15 7298.70 12.45 24531.87 13.73

Quant Active Fund(G) 178.73 6436.45 11.06 23425.88 13.20

ICICI Pru Multicap Fund(G) 282.45 5635.73 9.75 20290.86 11.64

Parag Parikh Long Term Equity Fund-Reg(G) 23.35 5591.07 9.67 19832.26 11.41

Canara Rob Equity Diver Fund-Reg(G) 125.97 6521.08 11.19 17959.11 10.45

ELSS

Aditya Birla SL Tax Relief '96(G) 30.90 6389.06 10.98 23952.80 13.45

Aditya Birla SL Tax Plan(G) 38.45 6012.61 10.37 22588.65 12.79

Invesco India Tax Plan(G) 48.98 6046.61 10.42 21321.61 12.16

HDFC Long Term Adv Fund(G) 340.23 6207.10 10.68 20295.26 11.65

Canara Rob Equity Tax Saver Fund-Reg(G) 61.72 6546.03 11.24 18720.15 10.85

Sector

DSP Natural Res & New Energy Fund-Reg(G) 31.31 5062.23 8.80 26482.60 14.66

ICICI Pru Technology Fund(G) 56.64 10205.26 17.02 22627.97 12.81

SBI Technology Opp Fund-Reg(G) 59.65 7822.49 13.29 17681.88 10.31

Franklin India Technology Fund(G) 147.79 6677.27 11.45 16069.38 9.46

SBI Banking & Financial Services Fund-Reg(G) 16.66 11163.04 18.48 0.00 0.00

Index

HDFC Index Fund-Sensex(G) 318.59 7378.86 12.58 18481.40 10.72

UTI Nifty Index Fund-Reg(G) 70.54 6663.50 11.43 17691.75 10.32

IDFC Nifty Fund-Reg(G) 22.36 6657.41 11.42 17661.77 10.30

Tata Index Fund-Sensex Plan(G) 88.55 7189.04 12.28 17418.93 10.17

Reliance Index Fund - Sensex Plan(G) 17.75 6922.02 11.84 16726.73 9.81

As on 01st Jan’19 (Funds have been arranged on 3 years performance)

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Source : ACE MF

INVESTOR JOURNALJanuary, 2019

Category Average Returns

Category Sub Category1 Week Return

1 Month Return

3 Month Return

6 Month Return

1 Year Return

3 Year Return

5 Year Return

Since Inception

Market Cap

Large-cap 1.53 0.90 1.05 1.31 -3.67 9.84 13.41 10.78

Large and mid cap 1.68 1.00 1.95 0.12 -7.37 11.02 16.71 14.10

Mid-cap 1.68 2.00 2.26 -1.28 -11.98 9.57 18.89 8.26

Multi-cap 1.60 1.03 1.64 -1.25 -6.72 9.78 15.48 7.09

Small-cap 1.23 2.04 2.34 -5.86 -19.44 8.65 20.26 5.68

Sector Funds

Banks & Financial Services 1.78 2.34 8.09 0.94 -1.13 16.03 18.30 14.77

Consumption 1.34 1.56 2.65 0.65 -5.52 12.79 14.91 8.50

Energy & Power 1.27 2.08 -1.27 -1.18 -17.58 13.11 17.12 12.94

Infrastructure 2.06 2.07 3.07 -1.96 -18.17 7.52 15.07 6.39

Pharma & Health Care 1.38 -1.51 -4.91 3.17 -4.10 -4.02 9.72 6.70

Service Industry 1.35 0.02 -0.92 -3.98 -8.88 4.39 14.89 8.56

TECk 1.77 -1.33 -8.26 -1.44 16.07 9.57 11.01 12.95

Speciality

Contra 1.92 0.87 0.79 -0.71 -5.01 11.95 16.04 15.01

Dividend Yield 1.30 1.33 -1.07 -1.52 -7.97 10.32 13.25 11.60

Global 1.84 -6.73 -13.59 -6.60 -2.13 6.37 5.83 7.14

MNC 1.66 2.48 3.19 1.05 -4.98 8.64 19.22 16.34

Equity Exchange Traded Funds 1.74 0.62 1.31 2.60 2.97 12.40 11.85 9.93

Equity Linked Savings Scheme 1.66 1.04 1.59 -1.44 -9.51 10.63 15.73 9.12

Equity Savings Scheme 0.58 0.36 0.93 1.20 1.16 6.89 7.67 5.51

Focused Fund 1.58 1.07 0.88 -1.22 -7.14 10.37 15.82 7.61

Index

Nifty 1.87 -0.05 -0.72 1.31 3.01 11.26 11.72 10.94

Nifty Next 50 2.00 2.00 3.14 -0.21 -9.04 12.14 16.44 6.93

Sensex 1.68 -0.37 -0.37 1.95 6.31 11.68 11.44 12.09

Others 1.91 1.40 0.16 -0.60 -4.14 8.54 11.73 12.22

Aggressive Hybrid Fund 1.23 0.56 1.19 0.46 -3.34 8.89 13.11 8.86

Balanced FundsBalanced advantage 1.10 1.09 2.20 3.29 1.01 10.70 13.35 11.22

Balanced hybrid 26.67 6.26 5.64 4.76 2.85 6.32 7.24 6.34

Capital Protection Funds 26.03 6.72 6.37 5.45 3.62 6.54 7.52 6.21

Conservative Hybrid Fund 22.85 9.31 8.99 4.65 1.63 7.13 8.99 8.38

Dynamic Asset Allocation 0.77 0.18 0.89 0.44 1.86 7.36 11.42 7.04

Multi Asset Allocation 0.95 1.28 1.50 1.69 0.92 7.57 8.96 10.10

Gold - FOF 49.36 51.90 15.43 3.23 4.05 6.82 0.07 0.60

Gold Exchange Traded Funds 1.18 4.78 3.79 3.88 7.05 6.72 2.29 4.32

Banking and PSU Fund 8.97 11.50 11.14 8.51 6.54 7.36 7.93 7.74

Corporate Bond 9.88 11.60 10.94 7.64 5.78 7.07 7.98 7.80

Credit Risk Fund 6.10 7.94 6.90 5.37 5.17 7.39 8.42 7.76

Dynamic Bond -2.41 15.71 13.78 9.44 5.52 7.31 8.44 7.49

Fixed Maturity Plans 10.62 10.60 10.61 8.17 6.94 7.89 8.68 8.07

GiltLong Term -11.42 26.88 25.93 16.01 9.27 8.99 10.00 8.15

Short and Medium term -12.90 20.21 18.16 11.85 6.11 7.73 9.17 8.19

Floating Rate 8.73 8.69 8.65 7.47 6.74 7.26 7.78 7.42

Duration

Long duration -3.19 31.31 29.98 13.57 6.75 8.77 9.59 13.90

Low Duration 9.19 9.43 8.75 7.50 7.01 7.43 7.86 7.53

Medium Duration 4.61 10.66 9.98 7.12 5.61 7.58 8.65 8.05

Medium to Long Duration -2.85 14.95 14.20 9.25 4.78 6.70 7.98 8.05

Money Market 9.31 8.81 6.82 6.65 6.85 7.08 7.70 7.53

Overnight 6.24 6.12 6.07 6.05 5.91 6.19 6.92 6.61

Short Duration 8.21 10.80 9.47 7.30 6.01 7.07 7.74 7.39

Speciality-Debt

Interval Funds - Half Yearly 6.26 6.52 6.12 6.13 6.74 7.08 7.64 7.94

Interval Funds - Monthly 6.71 6.68 6.67 6.65 6.95 6.85 7.47 7.84

Interval Funds - Quarterly 6.90 6.95 7.19 7.09 7.38 7.12 7.69 8.10

Interval Funds - Yearly 8.27 7.88 7.68 7.28 7.20 7.41 8.00 8.44

Liquid 6.97 6.97 7.09 6.48 6.82 6.85 7.54 7.24

Ultra Short Term Plan 9.09 4.33 6.88 5.55 6.10 6.99 7.79 7.53

Returns are as on 01st Jan’19

10Source : ACE MF

INVESTOR JOURNALJanuary, 2019

Fixed Deposits Schemes

FD Name Rating IndustryInterest Rate

* (Up to)

Bajaj Finance Ltd.FAAA by CRISILICRA MAAA

Bajaj Finserv is the most diversifed non-bank in the country, the largest financier of consumer durables in India and one of the most profitable firms in the category.

9.10%

DHFL Aashray DepositPlus

CARE AAA FD, BWR FAAA

Dewan Housing Finance Ltd (DHFL) is the second housing finance company to be set up in the private sector in India.

9.45%

Gruh Finance Ltd.MAAA by ICRA, FAAAby CRISIL

GRUH Finance Ltd is subsidiary of HDFC Ltd is housing finance company (HFC) recognized by National Housing Bank.

8.25%

HDFC Ltd.FAAA by CRISIL, MAAA by ICRA

A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 4.9 million customers to own a home of their own. HDFC is the Largest mobiliser of public deposits outside the banking system and the HDFC Group has a strong asset base of over Rs.2.97 trillion and a customer base of over 42.5 million.

8.49%

HUDCO‘tAA+(ind)’ by FITCH, ‘CARE AA+(FD)’ by CARE

HUDCO is a premier techno-financing company set up in 1970 by the Government of India to accelerate the pace of housing and urban development in the country.

7.75%

ICICI Home Finance Ltd

CARE FAAA, ICRA MAAA

ICICI Home Finance Company Limited is one of the leaders in the Indian mortgage finance and realty space.

8.50%

LIC Housing Finance Ltd.

FAAA / STABLE by CRISIL

One of India’s largest housing finance companies, having nation-wide network. Consistent record of dividend payments.

8.55%

Mahindra & Mahindra Financial Services Ltd

CRISIL FAAAMahindra and Mahindra Financial Services Limited (MMFSL) commenced its journey two decades back in the rural non-banking finance industry.

9.05%

PNB Housing Finance Ltd.

FAAA by CRISILPNB Housing Finance (PNBHF) is a subsidiary of Punjab National Bank and a partner of Destimoney Enterprises Pvt. Ltd. PNBHF was incorporated in 1988 and is based in New Delhi.

8.70%

Shriram City Union Finance Ltd.

IND +AA- CARE AA FD

As a deposit-accepting non-banking financial company (NBFC), Shriram City is today India’s premier financial services company specializing in retail finance.

9.50%

Shriram Unnati Deposits

FAAA/Stable by CRISIL, MAA+/Stable by ICRA

With a track record of about 30 years in this business, STFC is among the leading organized finance provider for the commercial vehicle industry

9.50%

Sundaram Home Finance Ltd.

ICRA MAA+Sundaram BNP Paribas Home Finance combines its expertise in Home Finance with the Service Orientiation of its promoter Sundaram Finance.

8.50%

* highest rate including additional interest for Senior citizens, employees etc. wherever applicable

11

Current/Forthcoming NCDs:

S.No Company Lead Managers

1 Shriram Transport Finance Company Limited

Edelweiss Financial, Axis Bank, A.K. Capital, JM Financial & Trust Investment

2 Mahindra & Mahindra Financial Services Limited

SBI Capital, ICICI Securities, Axis Bank, A K Capital, Edelweiss Financial, Trust Investment & Yes Securities Know More

3 SREI Equipment Finance Limited Edelweiss Financial, IIFL Holdings, Tipsons Consultancy, Trust Investment & Srei Capital

Know More

Know More

Know More

INVESTOR JOURNALJanuary, 2019

Equity Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Market Cap

L&T Emerging Businesses Fund-Reg(G) 24.73 -14.04 16.62 21.59

Mirae Asset Emerging Bluechip-Reg(G) 50.11 -5.69 16.55 27.27 20.94

HDFC Small Cap Fund-Reg(G) 42.26 -8.65 15.65 20.15 14.36

Aditya Birla SL Equity Fund(G) 700.91 -4.33 13.96 18.97 23.22

Principal Emerging Bluechip Fund(G) 100.65 -11.34 13.89 23.12 25.60

ELSS

Axis Long Term Equity Fund(G) 42.81 2.45 12.05 19.98 17.53

Aditya Birla SL Tax Relief '96(G) 30.76 -4.96 12.35 19.07 11.08

Aditya Birla SL Tax Plan(G) 38.28 -5.51 11.83 18.28 11.59

Invesco India Tax Plan(G) 48.91 -1.39 11.67 17.80 14.14

IDBI Equity Advantage Fund-Reg(G) 26.53 -2.31 10.00 18.58 20.21

Sector

SBI Banking & Financial Services Fund-Reg(G) 16.5323 8.6535 21.5076 13.9940

Tata India Consumer Fund-Reg(G) 17.7059 -1.8952 20.8186 20.9569

ICICI Pru Banking & Fin Serv Fund(G) 60.7100 -0.6528 20.5061 22.4780 19.0234

DSP Natural Res & New Energy Fund-Reg(G) 31.1920 -15.5907 20.2962 20.1550 11.2370

Tata Banking & Financial Services Fund-Reg(G) 17.0882 -0.4930 19.3929 19.5349

Thematic

Sundaram Rural and Consumption Fund(G) 41.05 -8.13 15.79 19.41 11.82

Invesco India Contra Fund(G) 46.22 -3.44 14.65 20.60 13.95

Principal Dividend Yield Fund(G) 51.67 -5.49 14.26 15.94 12.25

Canara Rob Consumer Trends Fund-Reg(G) 37.57 1.78 14.19 18.90 15.31

Kotak India EQ Contra Fund(G) 49.91 2.31 14.16 14.81 12.72

Value

Tata Equity P/E Fund(G) 130.87 -7.15 14.77 20.86 19.40

JM Value Fund(G) 29.92 -11.28 12.91 17.97 15.89

IDFC Sterling Value Fund-Reg(G) 50.44 -13.43 12.34 17.34 16.14

HDFC Capital Builder Value Fund(G) 285.63 -5.63 11.85 17.32 14.40

L&T India Value Fund-Reg(G) 34.52 -11.57 10.68 21.69 14.80

Equity Index

ICICI Pru Nifty Next 50 Index Fund(G) 24.83 -9.09 12.77 16.89 11.27

HDFC Index Fund-Sensex(G) 318.67 6.70 12.67 12.30 14.95

HDFC Index Fund-NIFTY 50 Plan(G) 98.36 4.28 12.16 12.47

UTI Nifty Index Fund-Reg(G) 70.52 4.22 12.27 12.41 10.93

IDFC Nifty Fund-Reg(G) 22.36 4.40 12.24 12.49 9.73

(Funds has been arranged on the basis of 3 years performance)

12

Source : ACE MF

INVESTOR JOURNALJanuary, 2019

Debt Funds Performance

Scheme Name Latest NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Gilt Funds

SBI Magnum Constant Maturity Fund(G) 39.92 9.78 9.59 10.11 7.99

IDFC G-Sec-Constant Maturity Plan-Reg(G) 27.83 11.67 9.31 9.93 6.28

Reliance Gilt Securities Fund(G) 24.30 7.89 9.29 10.53 8.95

Reliance Gilt Securities-DMDO 24.30 7.89 9.29 10.53 8.95

ICICI Pru Constant Maturity Gilt Fund(G) 14.93 9.54 9.24 9.78

Liquid Funds Latest NAV (`) 1 Month 3 Months 6 Months 1 Year

Axis Liquid Fund(G) 2027.66 0.60 1.88 3.73 7.45

IDBI Liquid Fund(G) 1954.27 0.62 1.91 3.76 7.44

Reliance Liquid Fund(G) 4457.19 0.61 1.89 3.74 7.44

DHFL Pramerica Insta Cash Fund(G) 237.58 0.62 1.89 3.74 7.43

BOI AXA Liquid Fund-Reg(G) 2103.39 0.60 1.86 3.71 7.43

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 Year SINCE INCEPTION

Balanced

HDFC Balanced Advantage Fund(G) 188.35 -0.93 12.84 15.34 17.39

Aditya Birla SL Balanced Advantage Fund(G) 51.44 0.66 10.77 12.36 9.16

HDFC Balanced Advantage Fund(G)(Adjusted) 188.35 -3.23 10.69 15.63 18.57

Reliance Balanced Advantage Fund(G) 86.87 0.24 10.38 13.39 16.54

ICICI Pru Balanced Advantage Fund(G) 34.35 2.35 9.47 12.50 10.83

Conservative Hybrid

ICICI Pru Regular Savings Fund(G) 41.37 4.94 9.60 11.44 10.10

Aditya Birla SL Regular Savings Fund(G) 38.19 -2.24 8.60 11.50 9.61

UTI Regular Savings Fund-Reg(G) 40.38 3.24 8.19 10.46 9.72

HDFC Hybrid Debt Fund(G) 44.55 0.54 8.00 10.35 10.46

DHFL Pramerica Hybrid Debt Fund(G) 21.88 3.66 7.69 7.50 7.27

Arbitrage

Reliance Arbitrage Fund(G) 18.65 6.74 6.29 6.94 7.89

Kotak Equity Arbitrage Scheme(G) 26.01 6.27 6.28 7.04 7.48

Edelweiss Arbitrage Fund-Reg(G) 13.51 6.09 6.24 6.91

ICICI Pru Equity-Arbitrage Fund(G) 24.07 6.22 6.22 6.92 7.59

Indiabulls Arbitrage Fund-Reg(G) 12.97 5.65 6.20 6.68

Gold-FOF Latest NAV (`) 6 Months 1 Year 3 Years SINCE NCEPTION

Axis Gold Fund(G) 9.93 3.50 8.51 6.44 -0.10

ICICI Pru Regular Gold Savings Fund(G) 10.68 3.25 7.59 6.27 0.91

Kotak Gold Fund(G) 13.20 4.29 7.51 6.47 3.64

Invesco India Gold Fund(G) 9.84 3.86 7.17 10.18 -0.23

Canara Rob Gold Savings Fund-Reg(G) 9.42 3.69 7.08 6.23 -0.92

(Funds has been arranged on the basis of 1 year performance)

Hybrid Funds Performance

13Source : ACE MF

INVESTOR JOURNALJanuary, 2019

Global Markets at a Glance

14

Exhibit: Nifty

Exhibit: S&P 500

Exhibit: Euro Stoxx 50

Exhibit: Nikkei

Exhibit: Shanghai

Exhibit: INR

Exhibit: Dollar Index

Exhibit: Eur

Exhibit: JPY

Exhibit: CNY

Exhibit: India 10 Yr Yld %

Exhibit: US 10 Yr Yld %

Exhibit: Germany 10 Yr Yld %

Exhibit: Japan 10 Yr Yld %

Exhibit: China 10 Yr Yld %

Source: Bloomberg, Karvy Research

10360

10460

10560

10660

10760

10860

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21,700

21,900

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2,600

2,620

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INVESTOR JOURNALJanuary, 2019

Indices Watch

Indian Indices:

Index NameAs on

30-Nov-18As on

31-Dec-18%

Change

NIFTY PHARMA 9,276 8,869 -4.39%

INDIA VIX 19 16 -16.50%

NIFTY IT 14,638 14,440 -1.35%

NIFTY SERV SECTOR 14,824 14,934 0.75%

Nifty Financial Services 11,439 11,586 1.29%

NIFTY BANK 26,863 27,160 1.11%

NIFTY 50 10,877 10,863 -0.13%

NIFTY FMCG 30,126 30,517 1.30%

NIFTY 100 11,092 11,110 0.16%

NIFTY 100 11,092 11,110 0.16%

NIFTY CONSUMPTION 4,923 4,989 1.34%

NIFTY 200 5,733 5,755 0.39%

NIFTY MNC 13,747 13,942 1.42%

NIFTY 500 9,109 9,170 0.67%

NIFTY ENERGY 14,324 14,335 0.08%

Nifty 500 Shariah 2,895 2,946 1.74%

NIFTY DIV OPPS 50 2,528 2,589 2.41%

NIFTY AUTO 9,270 9,236 -0.37%

Nifty Midcap 50 4,780 4,931 3.16%

NIFTY PSU BANK 2,915 3,088 5.93%

NIFTY MEDIA 2,550 2,566 0.64%

NIFTY COMMODITIES 3,397 3,431 1.00%

NIFTY METAL 3,164 3,155 -0.29%

NIFTY INFRA 3,087 3,175 2.86%

NIFTY PSE 3,213 3,389 5.50%

NIFTY REALTY 232 232 0.15%

Global Indices:

Index NameAs on

30-Nov-18As on

28-Dec-18%

Change

All Ordinaries 5,749 5,716 -0.58%

BEL-20 3,488 3,209 -8.00%

Bovespa 89,504 87,887 -1.81%

CAC 40 5,004 4,679 -6.50%

DAX 11,257 10,559 -6.20%

Dow Jones 25,538 23,062 -9.70%

FTSE 100 6,980 6,734 -3.53%

Hang Seng 26,507 25,504 -3.78%

Nasdaq 7,331 6,585 -10.18%

NYSE 12,458 11,291 -9.36%

S&P 500 2,760 2,486 -9.94%

Straits Times 3,118 3,053 -2.06%

Taiwan Weighted 9,888 9,727 -1.62%

DisclaimerThe information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document.

This report is intended for a restricted audience and we are not soliciting any action based on it.

For more information on MUTUAL FUNDS call1800 425 8282 or contact your nearest Karvy branch.

Contact PersonPF/MFNL/03012019/60

Ankit ChoradiaE-mail : ankit.choradia@karvy.com

Phone : 040 3321 7132

Production: Naga Babu K

15

Source : ACE MF

S&P BSE 100 11,119 11,161 0.38%

S&P BSE 200 4,627 4,654 0.59%

S&P BSE 500 14,429 14,540 0.77%

S&P BSE AUTO Index 20,900 20,834 -0.32%

S&P BSE BANKEX 29,949 30,377 1.43%

S&P BSE Capital Goods 18,639 18,821 0.97%

S&P BSE Con Durables 20,526 20,695 0.82%

S&P BSE DOLLEX 30 4,253 4,245 -0.19%

S&P BSE FMCG 11,647 11,829 1.56%

S&P BSE GREENEX 2,726 2,714 -0.43%

S&P BSE Health Care 14,333 13,923 -2.86%

S&P BSE IT 14,297 14,090 -1.45%

S&P BSE METAL Index 11,832 11,840 0.07%

S&P BSE Mid-Cap 15,039 15,438 2.65%

S&P BSE O & G Index 13,246 13,749 3.79%

S&P BSE Power Index 1,911 1,999 4.60%

S&P BSE PSU 6,840 7,237 5.80%

S&P BSE Realty Index 1,792 1,798 0.34%

S&P BSE SENSEX 36,194 36,068 -0.35%

S&P BSE Small-Cap 14,427 14,707 1.94%

S&P BSE TECk Index 7,170 7,066 -1.45%

S&P BSE TECk Index 7170.23 7066.06 -1.45%