KARVY’s

March, 2017

INVESTOR JOURNAL

www.karvyvalue.com

What’s Inside

KARVY’sINVESTOR JOURNAL

Fund of the MonthBIRLA SL TAX RELIEF ‘96(G)

An open ended equity linked savings

scheme (ELSS) with the objective of long term...March, 2017

Page 04

Market ReviewPage 01

Karvy Investment InsightPage 03

Fund of The MonthPage 04

Readers CornerPage 05

Story of The MonthPage 06

SIP PerformancePage 07

Category Average ReturnsPage 08

Fixed Deposits SchemesPage 09

Equity Funds PerformancePage 10

Debt Funds PerformancePage 11

Global Markets at a GlancePage 12

Indices WatchPage 13

Highlights of the Month » A broad agreement appears to have been reached on the issue of UTI Asset

Management Company’s (UTI) initial public offering and though the size of the issue has not been agreed on, the draft board resolution circulated to shareholders after the board meeting talks of a “broad-based” issue. Once the shareholders send their formal letters of approval to UTI, the IPO process will kick off.

» With mutual funds gaining traction among retail investors, asset management companies have filed draft offer documents with market regulator Sebi for as many as 12 new schemes since the beginning of this year. Equity, debt and fixed maturity plans (FMPs) are some of the themes for which the MF houses have filed the applications.

» Genesis Colors, which owns luxury brands like Satya Paul and Bwitch, has received capital markets regulator Sebi’s go-ahead to raise an estimated Rs 650 crore through an initial public offering (IPO).

» The initial public offer (IPO) of Avenue Supermarts, the owner of DMart which will hit the markets on March 6th, is expected to command a valuation of Rs 18,000 crore, much higher than the earlier expectation of Rs 7,000 crore.

» Quantum Mutual Fund, an asset manager in which Canadian billionaire Prem Watsa owns a stake, unveiled a roadmap for lowering the fee it charges for managing its schemes. In a communication to investors, the fund house said it would cut the expense ratios of its schemes as their asset under management (AUM) grow.

» The Reserve Bank of India (RBI), in its sixth bi-monthly policy, kept the key rates unchanged. However, fund managers expect that investors will benefit from investing in medium to short term funds. With some global uncertainty, investors can also look at investing into dynamic bonds funds and fixed maturity plans (FMPs), say fund managers.

» Enthused by better returns from its investment in the equity exchange traded funds (ETFs), the Employees’ Provident Fund Organisation (EPFO) is set to enhance its stock market exposure to 15% of its incremental deposits, or an estimated Rs 19,500 crore, in FY 18, from 10% now.

» DSP Blackrock Microcap, one of the best performing small-cap mutual funds, has decided to stop fresh inflows after February 17. Earlier in August 2016, the fund manager had restricted lumpsum Investments to Rs. 1 lakh per person. The fund will now completely stop accepting fresh applications, new systematic investment plans (SIPs) and new systematic transfer plans (STPs) from investors starting next week. The step comes in the wake of a sharp run-up in mid- and small-cap shares that has made it tough for fund managers to identify stocks.

INVESTOR JOURNALMarch, 2017

Market Review

In a shocker, RBI yet again hit the pause button on policy rates,

citing cautious approach in lieu of developments as the finer details of the demonetization process emerge. Crucially, the MPC panel altered its stance from accommodative to neutral, giving a strong signal of limited room for easing rates from here on forth. Further pushing down GVA projections, RBI lowered growth estimates by 30 bps to 6.90%, while inflation metrics are expected to stay guarded in the near term.

Continued deceleration in food prices outweighed the rising services inflation momentum. Consequently, Core CPI stood at a 27-month high of 5.08% in Jan-17.

INR ended the month of Feb at 66.69 against the USD.

Sensex and Nifty both went up by 3.93% and 3.72% respectively.

In the corresponding period, FIIs were net buyers in Equity segment worth around Rs. 10,485.18 crores and in Debt segment worth Rs. 5,980.19 Crores respectively.

Mutual Funds were net buyers in Equity to the tune of Rs. 2039.70 Crores and in debt up to Rs. 38,829.60 Crores.

1.Foreign Trade: The country’s merchandise exports improved and stood at USD 22.12 billion in Jan’17 as against USD 21.20 billion recorded in Jan’16, recording a growth of 4.32% Y-o-Y.

The country’s merchandise imports bills increased to USD 31.96 billion in Jan’17 from USD 28.87 billion recorded a year ago.

Oil imports continued to increase, posting a sharp growth on a Y-o-Y basis of 61.07% to USD 8.14 billion in Jan’17. Oil imports constituted around 25.48% of the total imports during the month.

The non-oil imports plateaued at 23.82 billion in Jan’17 from USD 23.81 billion recorded in the month of January of the previous fiscal.

2.Inflation:

Wholesale Price Index‐ based inflation jumped to 5.25% year-on-year in January, following a 3.39% gain in December.

Food inflation, which was -0.70% in December, increased to -0.56% in Jan’17.

The fuel inflation more than doubled to 18.14% in Jan’17 from 8.65% in the month of Jan’16.

CPI inflation stood at 5.08% in Jan’17 from 3.40% in the month of Dec’16.

3.Index of Industrial Production (IIP):

IIP slips into negative zone yet again with output contracting by 0.38% in Dec’16 mainly due to deep contraction in manufacturing, consumer goods and capital goods output. The cumulative output rose by a marginal 0.3% in Apr-Dec 2016 compared to output expansion of 3.2% in the corresponding period of

the previous fiscal.

Manufacturing production in India contracted by 1.97% in Dec’16 as against a growth of 5.53% previous month.

Basic Goods grew at 5.35% in Dec’16 as against a growth of 4.66% recorded a month ago.

Capital goods contracted by 3.01% in Dec’16 as against 15.01% in Nov’16.

Among the BSE sectoral indices, Realty, Consumer Durables & IT were the major gainers which ended the month up by 9.15%, 9.13% and 8.24% respectively while Auto was the only one in negative zone ending the month down by 1.48%.

Among the NSE sectoral indices, Realty, IT and Midcap 50 were the major gainers which ended the month up by 9.83%, 8.45% and 8.30% respectively while major indices VIX , Auto ended the month in the negative territory, falling by 18.02% & 1.86% respectively.

Among the major Asian Indices, it was a positive month for all indices with Taiwan, Hangseng and Nikkei ending up by 3.20%, 1.63% and 0.41% respectively.

Among major European indices, DAX, CAC-40, FTSE-100 and BEL-20 ended up by 2.59%, 2.31%, 2.31% and 1.18% respectively.

It was a decent month for Major American Indices with Dow Jones, S&P500 and NYSE going up by 4.77%, 3.72% and 2.58% respectively whereas Nasdaq went down drastically by 9.20%.

Among the major indices across the world, Bovespa, Brazilian index had a good month, going up by 3.08%.

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

1

INVESTOR JOURNALMarch, 2017

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

31-Jan-17 27,655.96

6-Feb-17 28,439.28 783.32 2.83%

9-Feb-17 28,329.70 -109.58 -0.39%

15-Feb-17 28,155.56 -174.14 -0.61%

21-Feb-17 28,761.59 606.03 2.15%

28-Feb-17 28,743.32 -18.27 -0.06%

3.93%

CNX Nifty IndexDate Close Price Points Diff %age Change

31-Jan-17 8561.3

6-Feb-17 8801.05 239.75 2.80%

9-Feb-17 8778.4 -22.65 -0.26%

15-Feb-17 8724.7 -53.70 -0.61%

21-Feb-17 8907.85 183.15 2.10%

28-Feb-17 8879.6 -28.25 -0.32%

3.72%

Sensex & Nifty:

MF Activity: (Month Between 02-Feb-2017 to 28-Feb-2017)

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

2-Feb-17 1,897.90 1,938.60 -40.70

9-Feb-17 1,396.00 1,407.50 -11.50

16-Feb-17 1,924.90 1,094.20 830.70

22-Feb-17 2,506.90 1,619.50 887.40

28-Feb-17 3,181.00 1,995.80 1,185.20

Feb-17 37,473.30 35,433.60 2,039.70

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

2-Feb-17 6,914.80 5,045.50 1,869.30

9-Feb-17 4,054.80 5,566.40 -1,511.60

16-Feb-17 6,557.20 4,832.50 1,724.70

22-Feb-17 6,032.90 5,080.00 952.90

28-Feb-17 7,963.80 5,516.50 2,447.30

Feb-17 119,054.50 80,224.90 38,829.60

2

FII Activity: (Month Between 02-Feb-2017 to 28-Feb-2017)

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

2-Feb-17 5,913.15 5,193.20 719.95

7-Feb-17 4,393.68 4,123.38 270.30

13-Feb-17 3,893.35 3,575.50 317.85

20-Feb-17 7,039.61 8,993.23 -1,953.62

28-Feb-17 9,316.63 8,282.56 1,034.07

Feb-17 109,618.42 99,133.24 10,485.18

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

2-Feb-17 1,271.68 1,171.65 100.03

7-Feb-17 2,010.85 1,302.64 708.21

13-Feb-17 990.26 221.52 768.74

20-Feb-17 433.00 391.68 41.32

28-Feb-17 1,032.85 829.21 203.64

Feb-17 21,506.70 15,526.51 5,980.19

INVESTOR JOURNALMarch, 2017

12

INVESTOR JOURNALMarch, 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.

WHAT IS NAV?

Just like a stock has a price, mutual fund has NAV or Net Asset Value. This is the value at which one can purchase or sell units of a Mutual Fund. It is generally updated at the end of the day and has a daily cut off time within which one needs to invest to get that particular day’s NAV. Higher NAV does not imply better fund.

CAPITAL GAINS

Profits obtained from selling units of a Mutual Fund are called Capital Gains. One has to pay short or long term capital gains tax based on the gains received and period for units held.

EXIT LOAD

Every time you wish to exit or redeem mutual fund units, you need to pay some amount to the mutual fund scheme in the form of exit load. It is usually around 1-2% and deducted from the applicable NAV on the date of investment. Exit load is generally applicable for redemptions made before 6 months or 1 year. It can vary from scheme to scheme.

EXPENSE RATIO

Like every investment product, mutual funds also charge fees from the investors, which is called expense ratio. This is deducted from the NAV on a regular basis. It can vary for equity and debt funds. Expense ratio in mutual funds is one of the least.

SWITCH

Mutual fund schemes offer an option to switch from one scheme to another, usually within the same AMC. It provides flexibility to the investors to switch between schemes based on market condition.

LOCK-IN

It is applicable in the case of ELSS or tax saving mutual fund schemes. There is a lock-in of 3 years on the investments made in these schemes. In case of SIP, every installment would be locked-in.

BENEFITS OF MUTUAL FUNDS:

MUTUAL FUNDS 101

» Professional Management - Fund Manager

» Diversification - In all sectors of economy

» Return Potential - High Returns/ Post Tax Returns

» Low Costs - Entry/Exit Load

» Liquidity - Anytime Redemption/ Partial Withdrawal

» Transparency - Fact Sheet

» Flexibility - Switching Option (One Scheme to other)

» Choice of Schemes - Various Funds

» Tax Benefits - u/s 80 c

INVESTOR JOURNALMarch, 2017

4

It’s a lonely world for those who find “20% compounded over 25 years” a more

enchanting idea than “finding the next 100-bagger”.

- Vishal Khandelwal@safalniveshak

My favorite compound interest expression: “It took

me X years to become an overnight success”

- Patrick OShaughnessy@patrick_oshag

Buffett’s view on inheritance: “Leave your kids enough money so they

can do anything but not so much money that they can do nothing.

- Morgan Housel @morganhousel

‘Tweets’ of the Month

Fund of The Month

BIRLA SL TAX RELIEF ‘96(G)

Investment Objective:An open ended equity linked savings scheme (ELSS) with the objective of long term growth of capital through a portfolio with a target allocation of 80% equity, 20% debt and money market securities.

Portfolio:

Top 10 Companies Holdings

Name %age

Sundaram-Clayton Ltd. 8.0

Bayer CropScience Ltd. 4.9

Honeywell Automation India Ltd. 4.9

ICRA Ltd. 3.8

Gillette India Ltd. 3.7

Kotak Mahindra Bank Ltd. 3.6

Biocon Ltd. 3.4

Zee Entertainment Enterprises Ltd. 3.2

MRF Ltd. 3.2

Glaxosmithkline Pharmaceuticals Ltd. 3.1

Top 10 Sector Wise Holding

Industry Name (%)

Bank - Private 14.4

Pharmaceuticals & Drugs 10.4

Auto Ancillary 8.0

Household & Personal Products 5.7

Pesticides & Agrochemicals 4.9

Consumer Durables - Electronics 4.9

IT - Software 4.3

Ratings 3.8

Diversified 3.6

TV Broadcasting & Software Production 3.2

To read the full Information, Click Here

About Performance of the Scheme:It is a mid cap fund which invests in diversified midcap stocks. It was launched more than 14 years ago and is currently being...

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

Senior citizens should use #SCSS to get safe 8.50% returns. Can consider short term debt MFs as well.

- HARSH ROONGTA@harshroongta

The greatest superpower is the ability to change yourself.

- Naval Ravikant@naval

BIRLA SL TAX RELIEF ‘96(G)

INVESTOR JOURNALMarch, 2017

Readers Corner

5

MUTUAL FUND RATINGS-HOW GOOD OR BAD ARE THEY?

1. Consult an expert who can give you a holistic view of the situation and help you prepare a portfolio Or

2. Adopt a DIY (Do it Yourself) method to research the best performing mutual funds and fit them into your portfolio as required.

This approach would imply that you have the sufficient time and knowledge to build the portfolio and track it regularly.

Let us assume you have adopted the second approach. If you are ready to do some analysis to shortlist the top mutual funds, there are multiple portals which can be of great help to you. Some of these portals have a rating mechanism to filter the best funds across categories from among multiple funds available in the market. Let us know more about this rating mechanism.

What does a Mutual Fund Rating mean?Like bonds, NCDs and fixed deposits, rating agencies like CRISIL assign ratings/rankings to mutual funds based on various parameters such as past 3/5/10 year returns, risks, etc. Similarly, mutual fund portals such as Value Research, Morningstar, etc also have their own methodology to rate funds. Some of the parameters are:

» Comparison with peers & category - Performance would be matched against peers, category average and benchmark indices. To be able to rank on the top, a fund has to beat all these in different time frames.

» Risk-adjusted returns - While measuring returns, risks taken by the fund are also taken care through various risk adjusted parameters such as standard deviation, Beta and so on. This is critical in knowing the downside risk of a fund during volatile markets.

Besides, there are multiple parameters and theories which help a agency or a portal to formulate ratings. These ratings give a generic view of how a fund performs and thereby make the decision-making process easier for an investor.

However, how good are these ratings? Should you rely on them completely? Let us look into some important aspects of these ratings to give you a fair idea of the ratings theory:

» Returns are measured on point to point basis - The 3-, 5- or 10-year returns considered by the fund are on a point to point basis such as Jan 1, 2000 to Jan 1, 2010. It could happen that the markets might have just crashed a couple of days before the selected date and hence investor could get more units on Jan 1, 2000. In this case, the returns would look inflated...

To read the full Article, Click Here

Have you decided to invest in a Mutual Fund to create wealth to meet your goals? If your answer is Yes, you have taken the right step. The next thing to do would be to build a portfolio of funds which suits your risk appetite and is in sync with your goals. It involves multiple aspects such as asset allocation, diversification, etc. There can be two ways to go about -

INVESTOR JOURNALMarch, 2017

Story of The Month

Once a young man came to an Abbot (the head of a monastery) and said, “You know I really want to become a monk but I haven’t learnt anything of importance in my life. The only thing I know is how to play chess because that’s what I have been learning from my father from a very young age but I want to get and lead the path of enlightenment but playing chess doesn’t lead to enlightenment. Besides, I was told that according to this way of life, that even games are sinful.”

So the Abbot replied, “Yes some people considered playing certain types of games as sinful but they can also be a diversion. Perhaps the monastery needs a little bit of both.” So, the Abbot called for a chessboard and he summoned the monk from the monastery to play with the young man.

Before the game started he said, “We may need diversion but we cannot have everyone playing chess here all the time. So, only the best player will stay. So if the monk loses he will have to leave the monastery creating an opening for the young man in monastery.”

WINNING BY LOSING

When we have the capability to win but still have the inner compassion to sacrifice for others then we know that we are on the path to enlightenment. It is just not our capabilities, our talents and our ability to win. It is to balance it by making sure there is compassion and also the quality of compromising some of the things that we enjoy in the interest of others.

So when the game started the young man knew he could win because he was good at it and he played aggressively but as time passed he noticed the saintly look in the Monk’s eyes who was playing against him.

Suddenly the young man began to play bad, thinking that he would rather lose to the monk. He felt that the presence of monk in the monastery will prove more useful to the world than he would.

The Abbot who was watching understood what the young man was feeling and suddenly overturned the chess board and threw it on the floor. He said to the young man, “You have learned far more than you were taught. It is not just chess that you have learnt.”

The Abbot continued and said, “My dear Son, you have the power to concentrate which is necessary to win in the game of life and you are also capable of fighting for what you want but with all that you also have, in addition, the ability to compromise for others. You have shown yourself as capable of balancing discipline. You are welcome to join our monastery.”

MORAL OF THE STORY:

Courtesy : Karvy Learning Center

Direct Dil Se…

6

INVESTOR JOURNALMarch, 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

Reliance Growth Fund(G) 926.67 7655.96 13.65 33251.13 18.24

Templeton India Growth Fund(G) 223.05 8032.89 14.28 30638.66 17.04

Reliance Vision Fund(G) 480.16 5552.96 10.07 27588.90 15.60

HDFC Core & Satellite Fund(G) 67.55 5825.52 10.54 27037.50 15.34

SBI BlueChip Fund-Reg(G) 32.23 6677.48 12.00 31651.63 17.51

Multi Cap

SBI Small & Midcap Fund-Reg(G) 38.96 13628.91 23.23 66964.57 31.47

Sundaram S.M.I.L.E Fund(G) 81.65 9906.48 17.36 52715.77 26.31

Birla SL Pure Value Fund(G) 49.15 11133.14 19.33 56460.56 27.72

Escorts High Yield Eq(G) 33.29 14208.05 24.12 52374.40 26.18

UTI Transportation & Logistics Fund(G) 98.82 8287.42 14.70 59512.84 28.84

Mid Cap & Small Cap

DSPBR Micro-Cap Fund-Reg(G) 54.46 15739.02 26.43 74143.00 33.88

Reliance Small Cap Fund(G) 32.30 12752.14 21.87 66916.01 31.45

Canara Rob Emerg Equities Fund-Reg(G) 73.44 11691.27 20.21 58875.08 28.61

Kotak Emerging Equity Scheme(G) 33.10 12810.17 21.96 55374.30 27.31

Mirae Asset Emerging Bluechip-Reg(G) 40.35 14608.71 24.73 65853.03 31.08

ELSS

Escorts Tax(G) 76.88 12139.31 20.92 41496.85 21.83

Reliance Tax Saver (ELSS) Fund(G) 52.66 7384.22 13.20 39862.32 21.13

DSPBR Tax Saver Fund-Reg(G) 39.19 9056.19 15.97 38038.57 20.35

IDBI Equity Advantage Fund-Reg(G) 21.50 5401.78 9.81

Birla SL Tax Relief '96(G) 24.19 7012.12 12.57 35120.15 19.07

Sector

Franklin Build India Fund(G) 34.65 10538.48 18.38 52372.19 26.18

DSPBR Natural Res & New Energy Fund-Reg(G) 29.83 20377.87 33.18 55485.05 27.36

ICICI Pru Banking & Fin Serv Fund(G) 48.78 12990.52 22.24 48255.01 24.58

Birla SL Banking & Financial Services Fund-Reg(G) 22.06 12184.39 20.99

L&T Infrastructure Fund-Reg(G) 13.55 10821.93 18.83 42327.08 22.17

Index

ICICI Pru Nifty Next 50 Index Fund(G) 21.20 9456.50 16.63 36397.15 19.64

IDBI Nifty Junior Index Fund(G) 18.41 8974.19 15.84 34903.08 18.98

R*Shares CNX 100 ETF 93.37 4648.57 8.50

HDFC Index Fund-Sensex Plus(G) 387.09 3975.42 7.31 18646.44 11.11

IDFC Nifty Fund-Reg(G) 17.98 4024.49 7.39 18551.19 11.06

As on 04th Mar’17 (Funds have been arranged on 3 years performance)

7

INVESTOR JOURNALMarch, 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 -0.61 0.96 9.28 1.68 24.39 17.42 13.06 12.12

Mid-cap -0.32 0.64 10.05 3.12 30.67 28.71 21.86 15.56

Multi-cap -0.55 0.74 9.74 2.95 28.15 23.55 17.14 13.81

Small-cap 0.17 0.22 10.57 4.11 32.85 34.26 24.60 19.93

Sector Funds

Banks & Financial Services -1.73 0.44 11.59 2.56 40.17 26.23 15.92 17.76

Energy & Power 0.21 2.12 12.77 12.02 46.01 30.40 12.83 17.51

FMCG -0.17 1.47 12.16 -1.42 19.29 16.45 19.00 15.99

Infrastructure -0.41 0.46 9.57 5.12 30.56 25.32 12.18 8.62

Media & Entertainment 0.85 2.97 9.14 1.23 20.40 18.39 16.11 15.79

Pharma & Health Care 0.27 0.75 -2.25 -5.85 -2.72 15.30 20.46 11.63

Service Industry 0.45 0.89 6.23 -0.04 11.22 18.31 23.53 15.10

TECk 0.89 5.25 6.02 1.79 -0.22 6.34 13.86 8.65

Speciality

Contra -0.35 1.69 9.26 1.67 24.11 22.23 16.06 16.82

Dividend Yield -0.65 0.68 10.17 4.38 27.72 19.33 13.52 14.17

Index - Nifty -0.54 1.66 10.00 1.26 21.20 14.46 11.82 11.92

Index - Sensex -0.28 1.94 9.61 1.05 18.40 11.94 10.87 15.68

MNC -0.63 -0.65 5.86 -3.93 11.71 26.95 20.28 17.61

Equity Exchange Traded Funds -0.52 1.50 9.56 2.78 24.79 15.70 10.49 10.08

Equity Linked Savings Scheme -0.53 0.86 9.56 2.44 26.94 20.67 15.78 15.38

Arbitrage Funds

Debt-Oriented -0.17 -0.21 2.21 1.16 9.39 8.30 7.48 8.34

Equity-Oriented 0.01 0.48 1.61 2.69 6.56 7.67 8.19 6.98

Asset Allocation -0.15 0.39 3.69 0.94 12.56 8.47 7.50 8.73

Balanced Funds

Debt-Oriented -0.10 0.35 2.68 1.65 8.57 10.35 10.53 6.17

Equity-Oriented -0.30 0.49 6.05 2.35 20.76 17.59 14.31 12.74

Category Capital Protection Funds -0.03 0.26 1.98 2.37 8.75 11.45 6.98

Monthly Income Plans -0.02 -0.90 0.50 2.70 13.06 11.87 10.01 8.88

Fund Of Funds

Debt-Oriented 0.00 -0.06 1.86 3.59 13.51 11.93 9.98 9.43

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

Hybrid-Oriented -0.31 0.18 4.25 2.61 15.62 11.32 9.80 10.53

Gold - FOF -0.21 0.73 1.97 -5.81 0.44 -3.08 -0.84 0.26

Gold Exchange Traded Funds -0.50 0.96 2.57 -4.61 -0.76 -1.13 0.06 4.41

Income

Long Term 0.11 -1.61 -2.01 2.92 10.75 9.88 8.75 8.28

Medium Term 0.13 -0.49 -0.04 3.88 10.70 9.91 9.32 8.60

Short Term 0.14 -0.39 0.28 3.53 9.40 9.14 8.90 8.01

Gilt

Long Term 0.33 -2.37 -3.43 3.38 14.11 11.99 9.54 8.92

Medium Term 0.10 -1.71 -2.15 2.88 11.73 10.40 8.79 8.69

Short Term 0.06 -0.47 -0.04 3.83 9.97 9.27 8.70 6.99

Floating Rate

Long Term Floating Rate 0.05 -0.50 -0.04 3.33 10.08 9.77 8.98 7.88

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

Short Term Floating Rate 0.15 0.39 1.46 3.69 8.48 8.77 9.00 7.91

Speciality-Debt

Interval Funds - Half Yrly 0.15 0.52 1.76 3.48 7.57 8.14 8.60 8.17

Interval Funds - Monthly 0.13 0.45 1.62 3.21 6.87 7.86 7.01 6.71

Interval Funds - Quarterly 0.12 0.44 1.75 3.40 7.01 7.88 7.56 7.15

Interval Funds - Yearly 0.16 0.48 1.55 3.64 8.06 8.55 8.91 8.29

Liquid 0.13 0.34 1.43 3.07 6.98 7.91 8.39 7.37

Ultra Short Term Plan 0.16 0.19 1.22 3.47 8.20 8.38 8.58 7.73

Returns are as on 04th Feb’178

INVESTOR JOURNALMarch, 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.

7.50%

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

9

Forthcoming IPOs:HUDCO Prataap Snacks Ltd

Dmart Bharat Matrimony

CDSL SBI Life Insurance

NSE Cochin Shipyard

S Chand and Company Ltd Vodafone

INVESTOR JOURNALMarch, 2017

Equity Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Diversified

DSPBR Micro-Cap Fund-Reg(G) 54.4120 47.2327 43.5342 29.9231 19.0729

SBI Small & Midcap Fund-Reg(G) 39.2189 31.9812 41.0565 28.7273 20.0950

Sundaram S.M.I.L.E Fund(G) 81.5079 39.4514 39.4631 23.2280 19.0538

Reliance Small Cap Fund(G) 32.2888 42.2592 39.1534 29.0781 19.9496

Canara Rob Emerg Equities Fund-Reg(G) 72.7800 39.3975 38.2505 26.7820 18.0451

ELSS

Escorts Tax(G) 76.7339 40.2332 30.3284 14.1202 12.8049

Reliance Tax Saver (ELSS) Fund(G) 53.0224 37.5276 29.3787 20.4101 15.7087

DSPBR Tax Saver Fund-Reg(G) 39.4640 39.1643 25.7710 19.8715 14.5487

IDBI Equity Advantage Fund-Reg(G) 21.6600 17.5415 25.4905 25.0493

Kotak Tax Saver Scheme(G) 36.1230 36.3681 25.1515 15.6427 12.0819

Sector

Franklin Build India Fund(G) 35.1875 42.4419 36.1214 25.1794 18.3256

DSPBR Natural Res & New Energy Fund-Reg(G) 29.6810 81.9235 35.4844 16.8128 13.0987

ICICI Pru Banking & Fin Serv Fund(G) 49.4200 66.7765 34.9038 22.9917 20.6473

Birla SL Banking & Financial Services Fund-Reg(G) 22.5900 57.4838 33.6505 29.0305

L&T Infrastructure Fund-Reg(G) 13.5700 48.3358 32.5007 16.4562 3.2951

Dividend Yield

BNP Paribas Dividend Yield Fund(G) 39.1940 27.3603 23.0964 17.2839 12.6712

Birla SL Dividend Yield Plus(G) 156.3300 34.1184 20.9892 12.8232 21.6202

Tata Dividend Yield Fund(G) 68.7716 32.0686 20.7793 15.1330 17.0274

Principal Dividend Yield Fund(G) 41.0100 38.0696 19.4615 12.6716 12.0877

HSBC Dividend Yield Equity Fund(G) 18.8156 32.8505 18.2145 12.8910 6.5678

Global

MOSt Shares NASDAQ-100 ETF 355.0758 22.9180 15.8331 22.8366 23.2395

Birla SL Intl. Equity Fund-B(G) 15.9525 27.8016 14.8204 11.7764 5.1369

ICICI Pru US Bluechip Equity Fund(G) 21.1600 17.5076 10.4068 17.5380

Kotak US Equity Fund(G) 13.5200 18.4006 10.2019 9.9455

ICICI Pru Global Stable Equity Fund(G) 13.4400 9.1544 9.0028 8.9494

Equity Index

ICICI Pru Nifty Next 50 Index Fund(G) 21.4056 41.3468 26.0613 18.2614 12.0845

IDBI Nifty Junior Index Fund(G) 18.5900 40.4287 25.3412 17.8933 10.1184

R*Shares CNX 100 ETF 93.8605 28.2380 15.6668 14.4999

HDFC Index Fund-Sensex Plus(G) 388.9448 27.7575 14.8386 11.4607 28.4619

HDFC Index Fund-Sensex Plus(G)(Post Addendum) 388.9448 27.7575 14.8386 11.4607 18.5945

Equity FOF

Kotak Asset Allocator Fund(G) 70.3510 21.9373 20.5003 15.2474 16.8175

Birla SL Asset Allocator Multi FoF(G) 25.0048 24.1067 19.7911 12.0513 9.0946

Franklin India Life Stage FOFs-20(G) 72.1012 26.2208 19.4303 13.8905 16.0898

Birla SL Financial Planning FOF Aggressive Plan(G) 19.2665 25.7138 18.7789 13.6898 11.9706

ICICI Pru Very Aggressive(G) 63.4272 27.6649 17.1196 11.9979 15.0281

(Funds has been arranged on the basis of 3 years performance)10

INVESTOR JOURNALMarch, 2017

Debt Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Gilt Funds

SBI Magnum Gilt-LTP-Reg(G) 36.1922 15.7689 13.5667 11.2262 8.2738

UTI Gilt Adv-LTP(G) 36.1388 17.2986 13.4658 10.4203 8.8801

ICICI Pru Gilt-Invest-PF(G) 32.5828 17.8939 13.2948 9.7284 9.3065

Birla SL Gilt Plus-PF(G) 45.0020 16.8567 12.8811 10.2910 9.0379

Birla SL Gilt Plus-PF(G)-Instant Gain 45.0020 16.8567 12.8811 10.2910 9.0379

Income

ICICI Pru Long Term Plan(G) 20.0093 17.2906 12.8989 11.6121 10.2644

ICICI Pru Income(G) 51.2897 15.9379 11.6813 8.8256 9.1665

UTI Dynamic Bond Fund-Reg(G) 18.8747 15.3501 11.5538 10.3796 9.9815

Baroda Pioneer Dynamic Bond Fund(G) 15.3612 13.5300 11.4604 9.6605

UTI Bond Fund(G) 49.1356 14.2577 11.3577 9.4648 8.8856

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Balanced

DSPBR Balanced Fund-Reg(G) 127.8830 29.3793 22.1586 14.2152 15.4315

HDFC Prudence Fund(G) 440.8720 36.1303 22.1353 15.5018 19.4951

Birla SL Balanced '95 Fund(G) 660.7300 28.4363 22.1035 16.3681 20.9297

ICICI Pru Child Care Plan-Gift Plan 118.5800 30.2963 22.0912 16.2362 17.3063

L&T India Prudence Fund-Reg(G) 22.4800 24.2287 22.0385 17.4513 14.3286

MIP

SBI Magnum Children Benefit Plan 45.7604 24.6311 19.4707 13.6568 10.6096

ICICI Pru Child Care Plan-Study Plan 63.6819 17.8160 17.4552 15.4484 12.6924

Birla SL MIP II-Wealth 25(G) 35.2274 24.1743 16.5407 13.4000 10.3660

Sundaram MIP-Aggr Plan(G) 17.5938 15.1502 14.2772 10.3915 8.4433

ICICI Pru MIP 25(G) 35.7181 18.4591 14.2226 11.5706 10.3618

Arbitrage

Edelweiss Absolute Return Fund(G) 19.6000 13.0629 13.5596 10.4827 9.3642

ICICI Pru Blended-B-I(G) 23.9631 10.6202 10.1085 9.2868 7.9955

Peerless 3 in 1 Fund(G) 16.0895 10.6869 8.4753 7.3534 8.4046

Edelweiss Equity Savings Advantage Fund(G)(Merged) 16.8800 6.5299 7.6723 9.3623 8.0572

Kotak Equity Arbitrage Scheme(G) 23.2799 6.4743 7.4046 8.2442 7.6863

Gold-FOF

Invesco India Gold Fund(G) 9.3786 -6.6258 5.5260 -2.4856 -1.2204

ICICI Pru Regular Gold Savings Fund(G) 10.3557 -7.8461 2.8783 -1.7923 0.6524

Reliance Gold Savings Fund(G) 12.8533 -5.9833 2.7515 -2.5964 4.2924

Birla SL Gold Fund(G) 9.7438 -5.9942 2.1454 -2.1157 -0.5246

Kotak Gold Fund(G) 12.4525 -6.2340 1.4627 -3.3351 3.7724

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

Hybrid Funds Performance

11

INVESTOR JOURNALMarch, 2017

Global Markets at a Glance

12

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 %

87508800885089008950

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

27-F

eb

28-F

eb66.4

66.6

66.8

67.0

67.2

15-F

eb

16-F

eb

17-F

eb

20-F

eb

22-F

eb

23-F

eb

27-F

eb

28-F

eb

6.80

6.85

6.90

6.95

16-F

eb

17-F

eb

20-F

eb

22-F

eb

23-F

eb

27-F

eb

28-F

eb

2,320

2,340

2,360

2,380

16-F

eb

17-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

100.5

101.0

101.5

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

2.25

2.30

2.35

2.40

2.45

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

3280

3300

3320

3340

3360

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

1.05

1.05

1.06

1.06

1.07

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

0.12

0.17

0.22

0.27

0.32

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

19000

19150

19300

19450

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

111.0111.5112.0112.5113.0113.5114.0

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

0.05

0.07

0.09

0.11

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

3180

3210

3240

3270

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

6.850

6.860

6.870

6.880

6.890

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

3.300

3.320

3.340

3.360

3.380

17-F

eb

20-F

eb

21-F

eb

22-F

eb

23-F

eb

24-F

eb

27-F

eb

28-F

eb

Source: Bloomberg, Karvy Research

INVESTOR JOURNALMarch, 2017

Indices Watch

Index NameAs on

02-Feb-16As on

28-Feb-17%

Change

S&P BSE Capital Goods 14783.32 15333.49 3.72%

S&P BSE BANKEX 22311.97 23482.44 5.25%

S&P BSE Power Index 2167.72 2195.78 1.29%

S&P BSE PSU 8337.40 8464.27 1.52%

S&P BSE DOLLEX 30 3348.03 3536.11 5.62%

S&P BSE AUTO Index 21809.24 21486.06 -1.48%

S&P BSE SENSEX 27655.96 28743.32 3.93%

S&P BSE 100 8831.71 9190.73 4.07%

S&P BSE 200 3701.12 3858.84 4.26%

S&P BSE 500 11659.94 12176.95 4.43%

S&P BSE O & G Index 12838.16 13534.47 5.42%

S&P BSE METAL Index 11672.32 11893.05 1.89%

S&P BSE Mid-Cap 12857.47 13552.22 5.40%

S&P BSE GREENEX 2460.08 2513.32 2.16%

S&P BSE Small-Cap 12935.66 13690.81 5.84%

S&P BSE TECk Index 5338.08 5765.37 8.00%

S&P BSE Consumer Durables 12625.91 13778.67 9.13%

S&P BSE IT 9586.34 10376.10 8.24%

S&P BSE Health Care 14797.01 15384.97 3.97%

S&P BSE FMCG 8567.58 8799.89 2.71%

S&P BSE Realty Index 1369.73 1495.06 9.15%

Indian Indices:

Index NameAs on

02-Feb-16As on

28-Feb-17%

Change

NIFTY FMCG 21832.65 22338.20 2.32%

NIFTY MEDIA 2771.40 2996.35 8.12%

NIFTY COMMODITIES 3323.35 3417.50 2.83%

NIFTY 100 8825.00 9170.95 3.92%

Nifty 500 Shariah index 2337.18 2476.60 5.97%

NIFTY PSE 4021.50 4041.25 0.49%

NIFTY DIV OPPS 50 2192.95 2284.20 4.16%

NIFTY FINANCE 7917.45 8286.90 4.67%

NIFTY IT 9848.50 10680.95 8.45%

NIFTY REALTY 179.55 197.20 9.83%

Nifty Midcap 50 3866.50 4187.25 8.30%

INDIA VIX 16.83 13.79 -18.02%

NIFTY 100 8825.00 9170.95 3.92%

NIFTY SERV SECTOR 10893.15 11446.70 5.08%

NIFTY 50 8561.30 8879.60 3.72%

NIFTY INFRA 2939.60 2997.85 1.98%

NIFTY PHARMA 10236.35 10585.15 3.41%

NIFTY METAL 3072.10 3127.30 1.80%

NIFTY PSU BANK 3174.35 3286.35 3.53%

NIFTY 500 7379.30 7709.10 4.47%

NIFTY 200 4594.10 4793.20 4.33%

NIFTY CONSUMPTION 3784.15 3916.85 3.51%

NIFTY BANK 19515.15 20607.25 5.60%

NIFTY ENERGY 10674.15 11360.20 6.43%

Global Indices:

Index NameAs on

02-Feb-16As on

28-Feb-17%

Change

BEL-20 3542.27 3584.13 1.18%

CAC 40 4748.90 4858.58 2.31%

DAX 11535.31 11834.41 2.59%

Dow Jones 19864.09 20812.24 4.77%

FTSE 100 7099.20 7263.40 2.31%

Nikkei 225 19041.34 19118.99 0.41%

NYSE 11222.96 11512.40 2.58%

S&P 400 1687.19 1729.34 2.50%

Straits Times 3046.80 3096.61 1.63%

All Ordinaries 5675.00 5761.00 1.52%

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/06032017/39

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

Phone : 040 3321 7132

Production: Naga Babu K

13