KARVY’s

June, 2017

INVESTOR JOURNAL

www.karvyvalue.com

What’s Inside

KARVY’sINVESTOR JOURNAL

June, 2017Page 04

Market ReviewPage 01

Karvy Investment InsightPage 03

Fund of The MonthPage 05

Readers CornerPage 06

Expert ViewPage 07

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 number of people who filed tax returns surged by 95 lakh as the

government turned on the heat against black money with demonetization and various other measures. The figures were in a presentation made before Prime Minister Narendra Modi as part of the revenue department’s review on Tuesday.

» The number of mutual fund folio accounts of high networth individuals (HNIs) and institutional investors increased year-on-year by 39% and 23%, respectively, in the March 2017 quarter, data from the Association of Mutual Funds in India (Amfi) show. These two entities have buoyed the inflows into mutual funds after the demonetization drive that began in November 2016.

» The Association of Mutual Funds in India’s recent data show that the industry added about 6.26 lakh SIP accounts each month on an average in the financial year 2016-17, with an average SIP size of about Rs 3,200 an account. The number of folios - individual investor accounts - rose to a record 5.54 crore at the end of March 2017, from 4.77 crore in March 2017, show the AMFI data. The last couple of years saw the number of investor accounts rising, following robust contribution from smaller towns. According to a SEBI survey of April 2017, an early 60 percent of regular mutual fund investors are now investing through the SIP mode.

» Mutual fund (MF) industry’s asset base has crossed the Rs 19 lakh crore mark in April on the back of fresh inflows in equity, debt and money market segments. The assets under management (AUM) of the MF industry, comprising 42 players, rose to an all-time high of Rs 19.26 lakh crore at the end of April from Rs 17.55 lakh crore at the end of March, as per the data from Association of Mutual Funds in India (AMFI). The industry’s AUM had crossed Rs 10 lakh in May 2014, and it is expected to reach Rs 20 lakh crore this year.

» The government added 9.1 million new taxpayers in 2016-17, an 80% increase over the typical yearly rise, highlighting the impact of India’s November demonetization of high-value currencies. This is expected to significantly boost the government’s tax revenue. India had only 55.9 million individual taxpayers at the end of 2015-16.

» UTI Asset Management Co. Ltd, India’s oldest and the sixth largest asset management company is ready to launch an initial public offering (IPO) and will offer to sell 26-30% of its equity, three people with direct knowledge of the matter said.

Fund of the MonthRELIANCE TOP 200 FUND(G)

The primary objective of the scheme

is to seek to generate long term capital...

INVESTOR JOURNALJune, 2017

Market Review

Gilt prices weakened sharply during the month. Yield of

the 10 year 6.97% 2026 paper settled at 6.96%. The IMF retained its forecast for India’s economic growth in 2017-18 at 7.2%.

Sensex and Nifty ended higher on increased optimism among investors owing to early arrival of monsoon in Kerala. Rupee weakened against US dollar on sustained demand for US dollar by importers and banks.

INR ended the month of May at 64.51 against the USD.

Sensex and Nifty both went up by 4.10% and 3.41% respectively.

In the corresponding period, FIIs were net buyers in Equity segment worth around Rs. 8824.94 crores and in Debt segment worth Rs. 19,437.32 Crores respectively.

Mutual Funds were net buyers in Equity to the tune of Rs.8959.73 Crores and in debt up to Rs. 8217.61 Crores.

1.Foreign Trade: The country’s merchandise exports was reported at USD 24.64 billion in Apr’17 as against USD 20.57 billion recorded in Apr’16, recording a growth of 19.77% Y-o-Y.The country’s merchandise imports bills increased to USD 37.88 billion in Apr’17 from USD 25.41 billion recorded a year ago, registering an alarming Y-o-Y growth of 49.07%, the highest in nearly 6 years. Oil imports continued to increase, posting a growth on a Y-o-Y basis of 30.12% to USD 7.36 billion in Apr’17. The Oil imports constituted around 20% of the total imports alone, during the month.The non-oil imports also posted a spike of 54.50% to USD 30.53 billion vis-à- vis non-oil imports of USD 19.76 billion recorded in the month of April of the previous fiscal.

2.Inflation:

Wholesale Price Index‐ based inflation declined to 3.85% year-on-year in April, following a 5.29% gain in March.Food inflation, which was 3.82% in March, fell to 1.16% in Apr’17.The fuel inflation decreased to 18.52% in Apr’17 from 23.66% in the month of Mar’17.CFPI stood at 0.61% in Apr’17 from 2.01% in the month of Mar’17.

3.Index of Industrial Production (IIP):

Industrial production in India increased by 2.7 percent year-on-year in March 2017, following an upwardly revised 1.9 percent rise in the previous month and beating market expectations of a 1.5 percent gain.

Output rose further for both mining (9.7 percent from 4.6 percent in February) and electricity (6.2 percent from 1.2 percent) while manufacturing production

grew at a slower pace (1.2 percent from 1.4 percent).

In 2016/17 fiscal year, industrial output expanded by 5 percent. Industrial Production in India averaged 6.64 percent from 1994 until 2017, reaching an all time high of 20 percent in November of 2006 and a record low of -7.20 percent in February of 2009.

Among the BSE sectoral indices, S&P BSE IT, S&P BSE FMCG and S&P BSE TECk Index were the major gainers which ended the month up by 8.11%, 6.41% and 6.34% respectively while S&P BSE Health Care, S&P BSE Power Index and S&P BSE PSU were in negative zone ending the month down by 9.51%, 3.89% and 3.06% respectively.

Among the NSE sectoral indices, IT, FMCG and MNC were the major gainers which ended the month up by 7.96%, 7.74% and 4.71% respectively while major indices Pharma, Media and Midcap 50 ended the month in the negative territory, falling by 10.48%, 5.03% and 3.59% respectively.

It was a positive month for the major Asian Indices as Hangseng, Nikkei and Taiwan ended up by 4.16%, 2.55% and 2.33% respectively.

All major European indices ended positive with FTSE 100, CAC 40, DAX and BEL-20 ending up by 4.77%, 1.32%, 1.32% and 0.66% respectively.

It was a decent month for Major American Indices with S&P 500, NYSE and Dow Jones going up by 1.33%, 0.83% and 0.67% whereas Nasdaq had a disastrous month going down by 15.70%.

Among the major indices across the world, Bovespa, Brazilian index was down by 2.02%.

Apart from FII and MF activity, Key domestic data released in the month of May were:

1

INVESTOR JOURNALJune, 2017

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

28-Apr-17 29,918.40

3-May-17 29,894.80 -23.60 -0.08%

8-May-17 29,926.15 31.35 0.10%

12-May-17 30,188.15 262.00 0.88%

18-May-17 30,434.79 246.64 0.82%

31-May-17 31,145.80 711.01 2.34%

4.10%

CNX Nifty IndexDate Close Price Points Diff %age Change

28-Apr-17 9,304.05

3-May-17 9,311.95 7.90 0.08%

8-May-17 9,314.05 2.10 0.02%

12-May-17 9,400.90 86.85 0.93%

18-May-17 9,429.45 28.55 0.30%

31-May-17 9,621.25 191.80 2.03%

3.41%

Sensex & Nifty:

MF Activity: (Month Between 01-May-2017 to 31-May-2017)

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

3-May-17 1,847.03 1,453.34 393.69

8-May-17 2,436.08 1,511.79 924.29

12-May-17 1,776.99 2,070.95 -293.96

18-May-17 2,896.30 1,755.01 1,141.29

25-May-17 3,222.19 2,934.62 287.57

May-17 45,514.34 36,554.61 8,959.73

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

3-May-17 8,241.34 7,346.02 895.32

8-May-17 6,824.32 8,262.91 -1,438.59

12-May-17 6,931.84 5,537.92 1,393.92

18-May-17 5,796.04 6,810.51 -1,014.47

25-May-17 6,058.27 1,802.69 4,255.58

May-17 143,077.59 134,859.98 8,217.61

2

FII Activity: (Month Between 01-May-2017 to 31-May-2017)

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

3-May-17 4,033.05 4,126.52 -93.47

8-May-17 3,364.40 3,945.75 -581.35

12-May-17 4,782.52 3,866.47 916.05

18-May-17 5,969.89 5,610.17 359.72

25-May-17 9,181.50 8,392.30 789.20

May-17 113,348.23 104,523.29 8,824.94

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

3-May-17 492.67 339.69 152.98

8-May-17 1,203.77 163.73 1,040.04

12-May-17 2,347.51 503.00 1,844.51

18-May-17 927.57 368.26 559.31

25-May-17 429.86 636.57 -206.71

May-17 30,082.26 10,644.94 19,437.32

INVESTOR JOURNALJune, 2017

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INVESTOR JOURNALJune, 2017

3

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.

Capital Gain Bonds:

Capital gain bonds are another type of bonds available, where any person can avail exemption in respect of long-term capital gains (arising from the sale of long term capital asset other than equity shares and securities) if the capital gain is invested in Capital Gain bonds u/s 54EC. The exemption will be the amount of capital gain or the amount of investment made, whichever is less. Interest rate offered on these bonds is around 5.25% per annum.

RBI 8% Saving (Taxable) Bonds:

It is a fixed income product floated by the Government of India. GOI bonds pay a little more than post office time deposits and bank deposits. They are very safe since they are issued by the government of India. This product offers an attractive investment option, especially with interest rates declining further.

ELIGIBILITY : The Bonds may be held by an individual, in his or her individual capacity, or on joint basis, or anyone or survivor basis, on behalf of a minor as father/mother legal guardian, a Hindu Undivided Family, Charitable Institutions and Universities. NRIs are not eligible to subscribe.

LIMIT : Minimum Rs. 1000/- and in multiple thereof with no maximum limit.

REPAYMENT : Repayable on expiry of 6 years from the date of issue. Premature encashment of the Bonds is not allowed.

INTEREST : The present rate of interest is 8% per annum.

REPAYMENT OF INTEREST

Non-cumulative: Interest is paid half yearly intervals at the end of June and December, every year by cheque or to the credit of Bank account.

Cumulative: Interest is compounded with half yearly rests, will be paid to the investor on maturity along with the principal.

TAX BENEFIT : Deposits are exempted from Wealth tax.

Structured Products:

Structured Products are Karvy-issued debentures designed to provide alternative exposure to traditional and direct products. Though the returns of structured products are linked to the performance of underlying assets such as equities or commodities, they possess unique risk-return profiles that allow investors to alter their desired level of exposure. While sometimes considered alternative products, Structured Products may also overlap with traditional holdings, so they may be appropriately classified within an equity / commodity or fixed income allocation.

Corporate Fixed Deposits:

There are various companies which offer Fixed Deposits and the rates on offer are generally higher than the rates offered by Banks. These instruments can be considered based on their rating, interest rates and the cash flows. The corporate fixed deposits are available for various tenures with Interest being paid Monthly,Quarterly, Half Yearly, Annually or at Maturity. Investors looking at regular cash flows and interested in fixed rate of interest can invest in these deposits.

INVESTOR JOURNALJune, 2017

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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.

NPS:

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens. As per the latest announcement, the total available limit available for tax deduction through NPS is Rs. 2 lakh, which includes Rs. 1.5 lakh under Sec 80C. This makes the product one of the best among all other tax saving options. We help investors make selective choice under the available funds in NPS.

PMS:

Portfolio Management Services (PMS) are meant for high net worth individuals or institutions who want a personalized management of their finances. A team of expert professionals conduct extensive research on markets to provide a customized solution to achieve unique investment objectives. This ensures best selection of investment opportunity within an asset class and active monitoring for optimized results. Investors are provided with an all time access to track their portfolios. Our PMS offerings range across two asset classes - Equity and Debt, with multiple options for each asset class.

Gold Saving Plans:

Innovative Gold investment options are available for investment, which offer Systematic investment in Gold. These products offer Physical Gold at the time of Redemption and can also be redeemed for Jewellery at some designated stores. Reliance My Gold Plan is one such plan.

Bonds & Debentures:

Bonds/ NCDs are the products offered by various private and public sector corporate through public issues or on private placement basis. Bonds issued under specified categories will also offer Tax free returns as well as Tax exemption to the investors. The coupon rate offered varies based on the rating of the corporate raising the debentures. Being long term, these bonds are listed on exchange and can be traded on the exchange on listing if invested in Demat mode.

INVESTOR JOURNALJune, 2017

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Gold will remain Gold. Look at co which lends money against Gold. Centuries old business! Existed in 1800, will exist in 2200!

- Vijay Pahwa@Wealth_Park

So many greats died so young. Life need not be long to be

big.

- Vishal Khandelwal@safalniveshak

The big driver of investor returns over the next decade won’t be

whether you were in low fee ETFs or not, but your behaviour during drawdowns.

- David Schawel @DavidSchawel

‘Tweets’ of the Month

Fund of The Month

“It’s remarkable how much advantage we have gotten by trying to

be consistently not stupid, instead of trying to be very intelligent” Munger

- Morgan Housel@morganhousel

When people have skin in the game, it reduces the supervisory

burden and allows for scaling.

- Shane Parrish@farnamstreet

RELIANCE TOP 200 FUND(G)

Investment Objective:The primary objective of the scheme is to seek to generate long term capital appreciation by investing in equity and equity related instruments of companies whose market capitalization is within the range of highest and lowest market capitalization of BSE 200 Index. The secondary objective is to generate consistent returns by investing in debt and money market securities.

Portfolio:

Top 10 Companies Holdings

Name %age

State Bank Of India 6.6

ITC Ltd. 4.9

HCL Technologies Ltd. 4.3

Larsen & Toubro Ltd. 4.3

Infosys Ltd. 4.2

Mahindra & Mahindra Ltd. 4.1

ICICI Bank Ltd. 3.9

HDFC Bank Ltd. 3.3

TVS Motor Company Ltd. 3.0

Castrol India Ltd. 2.8

Top 10 Sector Wise Holding

Industry Name (%)

Bank - Private 15.1

IT - Software 8.5

Bank - Public 6.6

Pharmaceuticals & Drugs 6

Automobile Two & Three Wheelers 5.4

Cigarettes/Tobacco 4.9

Engineering - Construction 4.3

Automobiles - Passenger Cars 4.1

Electric Equipment 4.1

Finance - NBFC 3.9

To read the full Information, Click Here

About Performance of the Scheme:Reliance Top 200 Fund is a large cap oriented portfolio which invests in companies whose market capitalization is within the range...

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

INVESTOR JOURNALJune, 2017

Readers Corner

6

FUNDS WITH MORE THAN 10K AUM-WHAT DOES IT MEAN FOR AN MF INVESTOR?

AUM should not be the only criteria while selecting funds for investment. There are several parameters which play a crucial role in the fund’s performance such as Fund Manager’s potential, Market situations and so on. There is also a reverse side of this argument that higher AUM schemes should not be preferred as it becomes difficult for the fund manager to manage this scheme. This is also untrue as well. Some of the funds have continued to outperform despite consistent increase in AUMs. A scheme should always fit into your portfolio and should never be forced into.

Here are the equity and balanced schemes which have crossed the 10k AUM mark:

To read the full Article, Click Here

AUM or Corpus is an important

factor while short listing

mutual funds for investment.

There are about 18 schemes

in different categories of

Equity and Balanced with

AUM crossing the AUM

milestone of Rs. 10,000 Crore.

Some of these schemes

are also the ones which

are the most preferred by

advisors as well as investors.

Scheme Name Category AUM(Cr.) NAVReturns(%)

1 Year 3 Years 5 Years

HDFC Prudence Fund(G) Balanced 22057.25 475.88 28.39 14.78 18.01

ICICI Pru Balanced Advantage Fund(G) Balanced 18645.13 30.73 14.97 12.64 16.20

HDFC Equity Fund(G) Multi-cap 18585.56 574.18 29.98 12.98 18.56

SBI-ETF Nifty 50 ETF 18227.63 96.49 19.15 -- --

ICICI Pru Value Discovery Fund(G) Multi-cap 17305.79 134.22 17.85 17.55 22.95

Birla SL Frontline Equity (Trigger Facility)(G) Large-cap 16961.75 199.51 21.22 15.01 20.33

Birla SL Frontline Equity Fund(G) Large-cap 16961.75 199.51 21.22 15.01 20.33

HDFC Mid-Cap Opportunities Fund(G) Mid-cap 16684.82 51.19 33.81 24.96 26.81

HDFC Top 200 Fund(G) Large-cap 14312.04 420.68 28.25 12.17 17.41

SBI BlueChip Fund-Reg(G) Large-cap 13338.85 34.85 17.36 18.25 21.35

ICICI Pru Focused Bluechip Equity Fund(G) Large-cap 13155.67 35.76 22.82 13.98 18.41

Axis LT Equity Fund(G) ELSS 12915.63 35.99 16.28 19.28 24.27

Franklin India Prima Plus Fund(G) Multi-cap 10963.74 534.00 17.51 18.83 20.83

HDFC Balanced Fund(G) Balanced 10920.00 136.70 23.56 17.65 19.29

INVESTOR JOURNALJune, 2017

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Expert View

We expect most experts to start competing on how high a Sensex target they can publish, FII inflows will surge, Rupee will appreciate, bond yield would fall and a general climate of positive sentiment will prevail, at least for a few months starting now. Very soon, a slew of new financial products would hit the market – targeted at capturing the boom that most believe to extend further. Most investors, faced with all of this, are likely to make investment decisions driven by ‘recency effect’ and over-optimism. In this article, we explore some likely excesses and ways to steer clear of them.

i. Over-exposure to equities

While most product manufacturers will be right in their part in launching equity based products (including specific high growth sectors like infrastructure), investors should bear in mind that equities are a risky asset class and they should maintain their asset allocation decisions even in the face of euphoria. Just as few years back, it was not necessarily a good time to prune equity holdings to zero; it is not a good time now to take equity allocation to near 100%. Of course, many retail investors had continued to

exit equities through 2012 and 2013 when markets were going south. Hence this advice might be unnecessary for them so long as they choose to return to equities only to the extent of a prudent allocation.

ii. Investing aggressively in products with long or very long lock-ins

In times of optimism, many products with long lock-in are either introduced or existed ones promoted. Many of these are based on market performance over a 3 or 5 years horizon. While a limited exposure to some of these products can boost returns from long term growth, some of these products also tend to have point of time risk. Closed ended mutual funds which become open ended after a lock-in are safer alternatively since they avoid the point of time risk. However, investors would do well to remember that a lot can change in 3 or 5 years - fundamentally altering an investment thesis. Investment in such products should be limited to less than 10% of the portfolio.

To read the full Story, Click Here

STRATEGY

FORBULLISH TIMES-MISTAKES TO AVOID

INVESTOR JOURNALJune, 2017

Story of The Month

The Professor began his class by holding up a glass with some water in it. He held it up for all to see and asked the students “How much do you think this glass weighs?”

‘50 gms!’….. ‘100 gms!’…..‘125 gms’… the students answered.

“I really don’t know unless I weigh it,” said the professor, “but, my question is: What would happen if I held it up like this for a few minutes?”

‘Nothing’….. The students said...‘Ok what would happen if I held it up like this for an hour?’ the professor asked.

‘Your arm would begin to ache said one of the students.

“You’re right, now what would happen if I held it for a day?”

“Your arm could go numb; you might have severe muscle stress, paralysis and have to go to hospital for sure!”….. ventured another student and all the students laughed.

PUT THE GLASS DOWN TODAY

So, when you start your day today, remember to ‘PUT THE GLASS DOWN TODAY!’

“Very good. But during all this, did the weight of the glass change?” Asked the professor.

‘No’…. Was the answer.

“Then what caused the arm ache & the muscle stress?”

The students were puzzled.

“What should I do now to come out of pain?” asked professor again.

“Put the glass down!” said one of the students.

“Exactly!” said the professor. Life’s problems are something like this.

Hold it for a few minutes in your head and they seem OK. Think of them for a long time & they begin to ache.

Hold it even longer and they begin to paralyze you. You will not be able to do anything.

It’s important to think of the challenges or problems in your life, But EVEN MORE IMPORTANT is to ‘PUT THEM DOWN’ at the end of every day before you go to sleep…

That way, you are not stressed, you wake up every day fresh and strong and can handle any issue, any challenge that comes your way!

MORAL OF THE STORY:

Courtesy : Karvy Learning Center

Direct Dil Se…

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INVESTOR JOURNALJune, 2017

SIP Performance

S&P BSE SENSEXCurrent NAV (`)

3 Year SIP 5 Year SIP

Rs.36000 Rs.60000

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

Large Cap

Templeton India Growth Fund(G) 240.23 9810.48 17.23 34952.47 19.01

Peerless Equity Fund-(G) 21.19 9647.76 16.97 30390.89 16.94

DSPBR Equity Fund-Reg(G) 34.53 9201.51 16.24 35157.68 19.10

HDFC Growth Fund(G) 166.88 8803.13 15.58 29942.08 16.73

MOSt Focused 25 Fund-Reg(G) 19.47 8764.75 15.52 0.00 0.00

Multi Cap

Birla SL Small & Midcap Fund(G) 36.70 16628.11 27.80 63288.94 30.21

Sundaram Rural India Fund(G) 38.80 15272.61 25.78 50168.06 25.35

Escorts High Yield Eq(G) 35.68 14733.53 24.96 56532.69 27.77

SBI Small & Midcap Fund-Reg(G) 42.77 14646.12 24.83 72928.51 33.50

MOSt Focused Multicap 35 Fund-Reg(G) 23.62 14386.57 24.43 0.00 0.00

Mid Cap & Small Cap

L&T Emerging Businesses Fund-Reg(G) 23.02 18830.87 31.02 0.00 0.00

Mirae Asset Emerging Bluechip-Reg(G) 44.87 16913.63 28.23 73778.65 33.78

DSPBR Micro-Cap Fund-Reg(G) 59.93 16792.87 28.05 81040.83 36.11

Reliance Small Cap Fund(G) 36.61 15657.79 26.36 77186.39 34.89

L&T Midcap Fund-Reg(G) 125.23 15617.84 26.30 65929.86 31.13

ELSS

Escorts Tax(G) 82.11 12929.31 22.19 45667.82 23.56

L&T Tax Saver Fund(G) 34.84 12462.86 21.46 43894.58 22.84

Principal Tax Saving Fund 186.88 11255.77 19.56 42574.65 22.29

DSPBR Tax Saver Fund-Reg(G) 42.78 11141.22 19.38 43435.52 22.65

L&T Tax Advt Fund-Reg(G) 49.59 11129.39 19.36 38931.14 20.75

Sector

DSPBR Natural Res & New Energy Fund-Reg(G) 31.12 20069.53 32.80 57352.58 28.07

ICICI Pru Banking & Fin Serv Fund(G) 55.63 17350.07 28.87 58646.99 28.54

Birla SL Banking & Financial Services Fund-Reg(G) 24.79 15823.87 26.61 0.00 0.00

L&T Infrastructure Fund-Reg(G) 15.14 13864.54 23.64 51108.56 25.71

Reliance Banking Fund(G) 241.62 13474.60 23.04 45246.81 23.39

Index

ICICI Pru Nifty Next 50 Index Fund(G) 22.98 11360.33 19.72 41214.22 21.72

IDBI Nifty Junior Index Fund(G) 19.87 10717.30 18.70 39284.63 20.90

HDFC Index Fund-Sensex Plus(G) 419.44 6370.26 11.50 23388.80 13.56

HDFC Index Fund-Sensex Plus(G)(Post Addendum) 419.44 6370.26 11.50 23388.80 13.56

UTI Nifty Index Fund(G) 61.14 6331.89 11.43 22682.40 13.20

As on 02nd Jun’17 (Funds have been arranged on 3 years performance)

9

INVESTOR JOURNALJune, 2017

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

Diversified

Large-cap 0.75 1.37 7.36 17.57 23.96 13.15 16.62 13.34

Mid-cap -0.18 -0.49 9.46 20.91 31.42 22.39 24.64 16.93

Multi-cap 0.43 0.58 8.22 19.28 28.12 18.00 20.57 14.78

Small-cap -0.54 -0.84 10.58 22.68 32.70 28.14 30.29 21.89

Sector Funds

Banks & Financial Services 1.11 2.56 11.17 24.75 37.88 17.07 20.48 20.13

Energy & Power -0.27 -0.22 9.17 23.44 44.48 18.05 18.29 17.85

FMCG 2.88 3.02 12.24 25.87 23.12 17.93 19.11 16.53

Infrastructure -0.11 -0.02 10.41 23.21 33.56 14.82 17.45 9.15

Media & Entertainment -2.13 -4.77 4.94 13.15 18.01 12.52 19.01 15.84

Pharma & Health Care -6.62 -9.40 -10.07 -12.78 -9.06 12.80 16.66 10.20

Service Industry -2.12 -0.92 6.55 12.07 17.81 21.90 27.37 15.37

TECk 1.59 4.69 0.56 4.58 -4.28 10.26 15.52 8.37

Speciality

Contra 0.34 1.09 8.16 17.97 24.63 17.29 19.36 17.26

Dividend Yield 0.50 0.94 7.42 18.84 28.07 14.30 16.78 14.87

Index - Nifty 1.44 1.96 7.19 18.10 21.06 10.58 15.47 12.31

Index - Sensex 1.77 2.77 7.33 17.59 18.76 8.45 14.28 16.09

MNC -0.46 1.14 8.27 16.53 13.14 22.99 22.35 17.93

Equity Exchange Traded Funds 1.06 2.23 7.37 17.83 25.04 9.70 14.66 12.99

Equity Linked Savings Scheme 0.42 0.96 8.18 18.86 26.52 16.61 19.57 16.36

Arbitrage Funds

Debt-Oriented 0.35 0.65 2.32 4.39 8.28 8.48 7.93 4.89

Equity-Oriented 0.27 0.57 1.69 3.02 6.66 6.96 7.71 6.68

Asset Allocation 0.49 0.77 3.92 8.05 11.81 8.07 8.11 9.52

Balanced Funds

Debt-Oriented 0.60 1.03 3.24 5.97 9.75 8.00 11.21 7.19

Equity-Oriented 0.45 0.80 5.68 12.17 19.41 13.62 16.43 13.27

Category Capital Protection Funds 0.35 0.86 2.28 4.23 8.70 9.44 7.22

Monthly Income Plans 0.32 0.82 3.26 3.66 12.43 10.72 10.69 9.08

Fund Of Funds

Debt-Oriented 0.18 0.86 3.01 5.17 12.46 10.86 10.48 9.38

Equity-Oriented -0.44 0.47 6.11 4.02 20.52 17.29 13.18 13.57

Hybrid-Oriented 0.51 0.85 3.78 8.58 14.58 11.39 12.03 11.85

Gold - FOF 0.24 -0.63 -1.93 -0.64 -2.00 0.10 -1.58 -0.05

Gold Exchange Traded Funds 0.36 0.23 -1.75 -0.64 -2.77 1.13 -1.14 4.30

Income

Long Term 0.40 1.06 2.32 -0.02 9.81 9.46 8.89 8.24

Medium Term 0.32 0.89 2.15 1.85 9.87 9.51 9.31 8.40

Short Term 0.24 0.73 1.86 1.99 8.56 8.73 8.81 8.01

Gilt

Long Term 0.65 1.55 3.06 -1.06 12.69 11.54 9.89 9.09

Medium Term 0.44 0.97 1.89 1.20 9.71 9.97 9.01 8.58

Short Term 0.33 0.90 1.94 1.78 9.22 9.14 8.77 7.03

Floating Rate

Long Term Floating Rate 0.30 0.79 1.96 1.73 9.09 9.38 8.90 7.89

Med Term Floating Rate -0.17 0.18 1.32 3.68 8.31 9.34 9.04 7.09

Short Term Floating Rate 0.17 0.60 1.73 3.13 7.94 8.46 8.88 7.88

Speciality-Debt

Interval Funds - Half Yrly 0.14 0.56 1.73 3.47 7.19 7.97 8.43 8.15

Interval Funds - Monthly 0.12 0.49 1.55 3.17 6.54 7.63 6.83 6.70

Interval Funds - Quarterly 0.11 0.47 1.50 3.26 6.69 7.60 7.36 7.12

Interval Funds - Yearly 0.14 0.52 1.62 3.09 7.46 8.20 8.69 8.09

Liquid 0.12 0.52 1.56 3.03 6.58 7.68 8.23 7.41

Ultra Short Term Plan 0.16 0.57 1.73 2.84 7.60 8.12 8.41 7.70

Returns are as on 02nd Jun’1710

INVESTOR JOURNALJune, 2017

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.

8.30%

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.

8.25%

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.

7.75%

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.

7.65%

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.

7.25%

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.

7.65%

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.

7.75%

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.

7.80%

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.

7.65%

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.

8.50%

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

8.50%

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.

8.25%

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

11

Forthcoming IPOs:CDSL Prataap Snacks Ltd

NSE SBI Life Insurance

Bharat Matrimony Cochin Shipyard

Vodafone

INVESTOR JOURNALJune, 2017

Equity Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Diversified

DSPBR Micro-Cap Fund-Reg(G) 59.93 35.88 35.69 32.35 19.70

SBI Small & Midcap Fund-Reg(G) 42.77 32.23 35.66 33.00 20.73

Mirae Asset Emerging Bluechip-Reg(G) 44.87 41.85 31.47 32.67 24.36

Reliance Small Cap Fund(G) 36.61 42.74 31.22 33.15 21.39

MOSt Focused Multicap 35 Fund-Reg(G) 23.62 35.34 30.09 32.19

ELSS

Escorts Tax(G) 82.11 23.95 25.15 19.05 13.05

IDBI Equity Advantage Fund-Reg(G) 23.66 19.56 21.82 26.13

Birla SL Tax Relief '96(ELSS U/S 80C of IT ACT)(G) 26.41 20.76 20.60 22.74 11.11

Birla SL Tax Relief '96(G) 26.41 20.76 20.60 22.74 11.26

Kotak Tax Saver Scheme(G) 39.05 31.07 20.03 19.16 12.56

Sector

Franklin Build India Fund(G) 37.79 30.91 26.04 28.73 18.77

DSPBR Natural Res & New Energy Fund-Reg(G) 31.12 64.56 23.73 20.84 13.30

ICICI Pru Banking & Fin Serv Fund(G) 55.63 51.91 23.55 28.11 21.63

Birla SL Banking & Financial Services Fund-Reg(G) 24.79 38.65 22.10 30.11

ICICI Pru Exports & Other Services Fund(G) 51.72 17.81 21.90 27.37 15.37

Dividend Yield

BNP Paribas Dividend Yield Fund(G) 42.31 23.55 17.02 20.25 13.12

Tata Dividend Yield Fund(G) 71.80 23.02 15.85 17.45 17.06

ICICI Pru Dividend Yield Equity Fund(G) 16.00 35.59 15.69 16.78

Principal Dividend Yield Fund(G) 45.42 36.07 13.85 16.49 12.74

HSBC Dividend Yield Equity Fund(G) 20.24 25.81 13.13 16.19 7.16

Global

MOSt Shares NASDAQ-100 ETF 369.32 23.18 19.82 21.29 22.97

Birla SL Intl. Equity Fund-B(G) 16.86 22.49 11.68 14.30 5.61

Kotak US Equity Fund(G) 13.30 10.98 10.40 8.65

Franklin Asian Equity Fund(G) 19.42 24.32 10.00 11.25 7.34

ICICI Pru US Bluechip Equity Fund(G) 20.51 7.78 9.72 15.82

Equity Index

ICICI Pru Nifty Next 50 Index Fund(G) 22.98 35.25 18.47 22.12 12.77

IDBI Nifty Junior Index Fund(G) 19.87 34.22 17.49 21.68 10.81

GS CNX 500(G) 30.35 7.45 14.08 11.22 15.23

Reliance ETF Nifty 100 100.73 21.72 11.18 15.50

HDFC Index Fund-Nifty(G) 85.37 19.72 10.17 15.08 15.27

Equity FOF

Birla SL Asset Allocator Multi FoF(G) 26.05 18.65 15.39 15.48 9.29

Birla SL Financial Planning FOF Aggressive Plan(G) 20.38 20.53 14.95 16.09 12.48

Franklin India Life Stage FOFs-20(G) 75.98 19.18 14.89 16.65 16.22

ICICI Pru Very Aggressive(G) 66.04 23.01 14.46 14.25 15.07

Kotak Asset Allocator Fund(G) 73.32 16.66 13.78 18.31 16.84

(Funds has been arranged on the basis of 3 years performance)12

INVESTOR JOURNALJune, 2017

Debt Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Gilt Funds

SBI Magnum Gilt-LTP-Reg(G) 37.51 15.14 13.46 11.87 8.38

UTI Gilt Adv-LTP(G) 37.48 17.19 13.07 10.90 8.99

Birla SL Gilt Plus-PF(G) 47.22 14.51 12.97 10.94 9.20

Birla SL Gilt Plus-PF(G)-Instant Gain 47.22 14.51 12.97 10.94 9.20

ICICI Pru Gilt-Invest-PF(G) 33.83 13.83 12.76 10.41 9.43

Income

ICICI Pru Long Term Plan(G) 20.74 13.84 12.44 11.95 10.43

ICICI Pru Income(G) 53.09 12.66 11.41 9.36 9.24

UTI Dynamic Bond Fund-Reg(G) 19.43 14.24 11.11 10.63 10.06

Baroda Pioneer Dynamic Bond Fund(G) 15.71 10.86 11.08 9.65

ICICI Pru Dynamic Bond Fund(G) 19.10 11.36 11.00 9.71 8.47

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Balanced

L&T India Prudence Fund-Reg(G) 24.27 23.44 18.42 20.17 15.11

DSPBR Balanced Fund-Reg(G) 137.52 25.17 18.38 17.08 15.67

HDFC Balanced Fund(G) 136.70 24.30 17.60 19.44 16.94

ICICI Pru Balanced Fund(G) 117.61 26.94 17.14 20.18 15.06

Franklin India Balanced Fund(G) 107.07 14.67 16.61 17.95 14.53

MIP

ICICI Pru Child Care Plan-Study Plan 66.35 15.44 16.24 15.87 12.77

Birla SL MIP II-Wealth 25(G) 36.92 19.84 15.15 14.51 10.55

SBI Magnum Children Benefit Plan 47.92 19.39 14.72 14.50 10.76

ICICI Pru MIP 25(G) 37.31 15.51 12.68 12.46 10.52

SBI Magnum MIP(G) 37.02 13.79 12.50 11.52 8.42

Arbitrage

Edelweiss Dynamic Equity Advantage Fund(G) 20.76 13.26 11.04 11.91 9.86

ICICI Pru Blended-B-I(G) 23.96 10.62 10.11 9.29 8.00

Peerless 3 in 1 Fund(G) 16.46 8.28 8.48 7.93 8.45

Edelweiss Equity Savings Advantage Fund(G)(Merged) 16.88 6.53 7.67 9.36 8.06

ICICI Pru Equity-Arbitrage Fund(G) 21.94 6.46 7.16 8.12 7.84

Gold-FOF

Reliance Gold Savings Fund(G) 12.5636 -0.4840 -0.0620 0.3322 3.7344

ICICI Pru Regular Gold Savings Fund(G) 10.1817 0.6375 -0.2107 1.0948 0.3205

Birla SL Gold Fund(G) 9.4487 -1.5432 -0.8489 0.7590 -1.0875

Invesco India Gold Fund(G) 9.2312 3.4818 -1.1088 0.7466 -1.4500

HDFC Gold Fund(G) 9.6370 -0.4627 -1.7755 0.1786 -0.6616

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

Hybrid Funds Performance

13

INVESTOR JOURNALJune, 2017

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 %

9260

9360

9460

9560

9660

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay64.20

64.40

64.60

64.80

65.00

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

6.64

6.65

6.66

6.67

6.68

6.69

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

2,3602,3702,3802,3902,4002,4102,420

18-M

ay

19-M

ay

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

30-M

ay

96.6

96.8

97.0

97.2

97.4

97.6

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

2.20

2.22

2.24

2.26

2.28

2.30

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

3,550

3,560

3,570

3,580

3,590

3,600

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

1.115

1.117

1.119

1.121

1.123

1.125

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

0.250

0.300

0.350

0.400

0.450

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

19,55019,60019,65019,70019,75019,80019,850

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

110.5

111.0

111.5

112.0

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

0.04

0.04

0.05

0.05

0.06

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

29-M

ay

30-M

ay

31-M

ay

3,0203,0403,0603,0803,1003,1203,140

19-M

ay

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

31-M

ay

6.80

6.82

6.84

6.86

6.88

6.90

19-M

ay

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

31-M

ay

3.60

3.62

3.64

3.66

3.68

3.70

19-M

ay

22-M

ay

23-M

ay

24-M

ay

25-M

ay

26-M

ay

31-M

ay

Source: Bloomberg, Karvy Research

INVESTOR JOURNALJune, 2017

Indices Watch

Index NameAs on

28-Apr-17As on

02-Jun-17%

Change

S&P BSE Capital Goods 17865.77 17895.55 0.17%

S&P BSE BANKEX 25325.27 26495.24 4.62%

S&P BSE Power Index 2329.75 2239.22 -3.89%

S&P BSE PSU 9019.84 8743.68 -3.06%

S&P BSE DOLLEX 30 3824.66 3951.92 3.33%

S&P BSE AUTO Index 22782.40 23810.72 4.51%

S&P BSE SENSEX 29918.40 31028.21 3.71%

S&P BSE 100 9669.96 9903.68 2.42%

S&P BSE 200 4082.97 4153.07 1.72%

S&P BSE 500 12979.24 13164.84 1.43%

S&P BSE O & G Index 14455.03 14201.37 -1.75%

S&P BSE METAL Index 11303.38 11413.44 0.97%

S&P BSE Mid-Cap 14798.45 14519.90 -1.88%

S&P BSE GREENEX 2580.38 2669.61 3.46%

S&P BSE Small-Cap 15372.51 15086.26 -1.86%

S&P BSE TECk Index 5450.23 5795.69 6.34%

S&P BSE Consumer Durables 15474.66 15397.70 -0.50%

S&P BSE IT 9618.99 10399.07 8.11%

S&P BSE Health Care 15019.40 13590.94 -9.51%

S&P BSE FMCG 9412.29 10015.90 6.41%

S&P BSE Realty Index 1923.92 1977.37 2.78%

Indian Indices:

Index NameAs on

28-Apr-16As on

02-Jun-17%

Change

NIFTY FMCG 23675.40 25507.55 7.74%

NIFTY MEDIA 3252.20 3088.75 -5.03%

NIFTY COMMODITIES 3570.15 3514.45 -1.56%

NIFTY 100 9652.45 9884.25 2.40%

Nifty 500 Shariah index 2650.36 2665.26 0.56%

NIFTY PSE 4215.70 4087.25 -3.05%

NIFTY DIV OPPS 50 2342.35 2430.20 3.75%

NIFTY FINANCE 9066.05 9419.75 3.90%

NIFTY IT 9943.70 10735.40 7.96%

NIFTY REALTY 251.05 256.15 2.03%

Nifty Midcap 50 4658.35 4491.10 -3.59%

INDIA VIX 10.86 10.86 0.02%

NIFTY 100 9652.45 9884.25 2.40%

NIFTY SERV SECTOR 11985.70 12501.25 4.30%

NIFTY 50 9304.05 9595.10 3.13%

NIFTY INFRA 3255.20 3250.20 -0.15%

NIFTY PHARMA 10120.90 9060.45 -10.48%

NIFTY METAL 2974.40 2997.75 0.79%

NIFTY PSU BANK 3659.30 3538.90 -3.29%

NIFTY 500 8214.30 8331.85 1.43%

NIFTY 200 5072.60 5161.15 1.75%

NIFTY CONSUMPTION 4106.80 4242.80 3.31%

NIFTY BANK 22358.25 23362.20 4.49%

NIFTY ENERGY 12263.55 11858.35 -3.30%

Global Indices:

Index NameAs on

28-Apr-17As on

02-Jun-17%

Change

BEL-20 3875.53 3900.93 0.66%

CAC 40 5267.33 5336.64 1.32%

DAX 12438.01 12602.18 1.32%

Dow Jones 20940.51 21080.28 0.67%

FTSE 100 7203.90 7547.63 4.77%

Hang Seng 24615.13 25639.27 4.16%

Nikkei 225 19196.74 19686.84 2.55%

NYSE 11536.07 11631.88 0.83%

S&P 500 2384.20 2415.82 1.33%

Taiwan Weighted 9872.00 10101.95 2.33%

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.

Research TeamPF/MFNL/07062017/42

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

Phone : 040 3321 7132

Production: Naga Babu K

15