tax growth saving potential - indiabullsamc.com tax savings fund... · financial services &...

TAXTAXSAVINGSAVING

GROWTHGROWTHPOTENTIALPOTENTIAL

Indiabulls Tax Savings Fund(Open-Ended Equity Linked Savings Scheme)

MUTUAL FUND

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. 2

Indiabulls Group: Leading player in Financial Services & Real Estate

• Operates through separate listed companies (no Group Holding Company)

• No equity cross holdings* As of 31st March, 2017

Indiabulls Group(Combined Networth ` 19,800 cr)*

Indiabulls Housing Finance Indiabulls Real Estate Indiabulls Ventures

• 2nd largest private housing finance company

• AAA rated by mul�ple Credit Agencies

• Servicing over 8 lakh customers

• 3rd largest real estate company by net worth and assets

• Delivered a record 4.7 million sq � developed space

• Credit ra�ng of AA-, highest amongst Indian real estate developers

• One of the leading companies in Real Estate Marke�ng, Distribu�on and Capital markets

• Rated BQ1 by CRISIL - highest for any brokerage in India

• Servicing over 7 lakh clients

MUTUAL FUND


AMC Sponsor: Indiabulls Housing Finance Ltd.

nd2 largest HFC in India

• Balance Sheet size of ̀ 1.04 trillion

• PAT for FY16-17 is at ` 29.06 Bn., up 24% over FY15-16’s PAT of ̀ 23.45 Bn

• Cumula�ve disbursements of over ̀ 1.67 triliion

• Net worth of over ̀ 121 Bn - 2nd highest amongst Private HFCs/NBFCs

• Rated ‘AAA’ by CARE, ICRA and Brickworks

• IBHFL is only the second independent non-bank company in India to be upgraded to AAA by ICRA in the last 20 years a�er HDFC Ltd

• Overall GNPA of less than 1 per cent and net NPA of less than 0.5 per cent

* As of 31st March, 2017

Robust Financial Performance & Country-wide presence

FY 16-17 FY 15-16 Y-o-Y Growth (%)

Balance Sheet (` Bn) 1,037.05 764.36 35.7%

Loan Assets (` Bn) 913.01 686.83 32.9%

Total Revenues (` Bn) 117.02 92.26 26.8%

NII (` Bn) 47.68 37.94 25.7%

PAT (` Bn) 29.06 23.45 24.0%

Third largest mortgage finance company in India

Denotes ci�es with 3 or more offices

Denotes ci�es with 2 offices

Offices

Awards & Accolades

Best digital Innovatorsin Customer Experience

Housing Finance Company of the year

2016

Sustainable GrowthSilver Award

Cer�ficate ofExcellence

Best digital InnovatorsAward 2016

Navbharat Realty Business Achievers

Award 2016

th 46 SKOCHSummit 2016

Best Tech MaestroAwards 2016

MUTUAL FUND


Indiabulls AMC:Geared up for the next level of growth

• Indiabulls AMC started ac�ve opera�ons in early 2014• Currently houses three businesses: Mutual Funds, Alternate Investment Funds & Por�olio Management Services

• Manages 10 schemes – 7 Debt & 3 Equity schemes• Average. AUM of ̀ 10,820 Crores as on March 31st, 2017 • Steady growth in AUM post the management change• Defined goal post of making in-roads into the top quar�le posi�on • AMC Networth - ̀ 112 crores

Mutual Funds

• Launched our first AIF (Cat II) fund in the month of May 2015 • Successfully raised over ̀ 1250 Crores and invested over ̀ 900 Crores as on March 2017 • Deployed in 7 grade A projects across top 6 ci�es within set �melines• Recently launched Indiabulls Dual Advantage Commercial Asset Fund - our 4th AIF in the commercial asset space

AIF

PMS

• Obtained a Por�olio Management Services Registra�on • Launched 2 series of bespoke structured debt PMS offerings• Current AUM of ` 100 Crores spread across 48 HNIs and Family Offices

Save upto ` 46,350* per year*Under Sec 80 C of IT Act for investment upto

` 1.5 lakhs for the highest tax bracket of 30.90%

MUTUAL FUND


How?

• Under Sec 80 C investments upto ` 1.5 lakhs per financial year qualify for a tax rebate

• You can save on tax by inves�ng in no�fied products

Savings for all tax slabs

Income Slab Tax Rate* Tax Saving p.a

Income from ` 2,50,000 - ` 5,00,000 5%

Income from ` 5,00,000 - ` 10,00,000 20%

Income more than ` 10,00,000 30%

` 7,725/-

` 30,900/-

` 46,350/-

*plus applicable surcharge


Sec�on 80C no�fied investment products

*Average returns over the last 10 years ending July 2017.

Lock In Interest/Returns Tax Treatment

Mutual Fund ELSS 3 years Market LinkedTax free a�er 1 year; Dividends are Tax free

Bank FD 5 years 6.25% - 7.70% Interest Income Taxable

PPF 15 years 7.80% Tax-free

NSC 5 years 7.80% Taxable

NPS a�er 60 years age Market Linked Upto 40% Tax-free

Insurance 5 years Policy Dependent Policy Dependent

10 Year Average Return* of 80C investments15%

10%

5%

0%

8.58%

PPF NSC Bank FD Sensex

8.20% 8.06%

13.83%

MUTUAL FUND

Should you only Save Tax or let your savings poten�ally earn more?

Why not both!

TAXTAXSAVINGSAVING

GROWTHGROWTHPOTENTIALPOTENTIAL

GIVE MORE POWERTO YOUR SAVINGS

Indiabulls Tax Savings FundInvest in

(Open-Ended Equity Linked Savings Scheme)

One Investment, Dual Benefits


Investment Objec�ve

The investment objec�ve of the Scheme is to generate long-term capital apprecia�on from a diversified por�olio of predominantly equity and equity related Securi�es.

InstrumentsIndica�ve alloca�on (% of Net Assets)

(Minimum - Maximum)Risk Profile

(High/Medium/Low)

Equity & Equity related instruments as per ELSS guidelines 80% to 100% High

Debt, Money Market instruments, Cash & equivalent 0% to 20% Low to Medium

Asset Alloca�on

MUTUAL FUND


Scheme Features

SIPSIP facility is available. STP in & SWP in from other schemes available. However there is no facility for STP/SWP out of the ELSS scheme to other schemes. In addi�on to the above Dividend Sweep in & Sweep out is also available

Minimum of ` 500 or account balance, whichever is lower and in mul�ples of Re. 500 therea�er Minimum Redemp�on Amount

` 500 and in mul�ples of ` 500 therea�er Minimum Addi�onal Purchase Amount

Minimum Applica�on Amount

` 500 and in mul�ples of ` 500 therea�er; ` 500 and in mul�ples of ` 500 therea�er (for SIP)

Op�ons Growth & Dividend (pay out only subject to realisable gains)

Plans Direct & Regular

Load Structure Entry Load: Not Applicable; Exit Load: NIL

Benchmark Index S&P BSE 500 Index

Type of Scheme Open-Ended Equity Linked Savings Scheme

MUTUAL FUND

Investment Strategy:

Indiabulls Tax Savings Fund

Popular Brands

-

-

Maru�

Havells

Finolex PVC Pipes

Zee Tv

HDFC Home Loans

Titan, Fas�rack

Asian Paints

Shree Cement

MRF Tyres

Amaron

HDFC Bank

Jockey & Speedo

Royal Enfield

Bajaj Finance

Profits FY07(in ` Crs.)

720

3,564,364

1,562

103

60

234

1,735

108

285

165

169

47

1,141

17

53

47

Profits FY17(in ` Crs.)

1,354

12,165,481

7,511

560

355

1,293

11,051

768

2,016

1,310

1,489

478

15,226

266

1,667

1,837

Par�cular/Co Name

Sensex Eps Growth

Nominal GDP

Maru�

Havells

Finolex Industries

Zee

HDFC

Titan

Asian Paints

Shree Cement

MRF

Amara Raja

HDFC Bank

Page Industries

Eicher Motors

Bajaj Finance

Profit Growth (%)

7

13

17

18

19

19

20

22

22

23

26

26

30

32

41

44Source: Bloomberg, July 2017

Profit Growth (2007-17)50

45

40

35

30

25

20

15

10

5

0

Sen

sex

EPS

Gro

wth

No

min

al G

DP

Mar

u�

Hav

ells

Fin

ole

x In

du

stri

es

Zee

HD

FC

Tita

n

Asi

an P

ain

ts

Shre

e C

emen

t

MR

F

Am

ara

Raj

a

HD

FC B

ank

Page

Ind

ust

ries

Eich

er M

oto

rs

Baj

aj F

inan

ce

7%

13%

17%18%

19% 19%20%

22% 22%23%

26% 26%

30%

32%

41%

44%


Strong companies outperform broader markets over long term

MUTUAL FUND

• Page Industries, also known as Jockey India, is the licensee of Jockey Interna�onal and Speedo in India and Sri Lanka.

• Most popular innerwear brand.

• Huge under penetrated market & aspira�onal consump�on play.

Profit a�er Tax (` Crs)300

250

200

150

100

50

0

1724

3240

60

90

110

150

200

230

266

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

CAGR 31.9%

6000

5000

4000

3000

2000

1000

0

47.7%


Stock price vs Sensex

Page Industries Ltd.

Sensex

8.5%


Example 1- Jockey (Page Industries)Known for quality innerwear

MUTUAL FUND

• Aspira�onal consump�on, cult status in India.

• .Strong brand recall

• .Huge domes�c poten�al and exploring exports

• .Poten�al to metamorphose into the next Harley Davidson


1600

1400

1200

1000

800

600

400

200

0

53 55 83

189

309 334394

615

1,278

1,667

CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 FY16 FY17

CAGR 41%

70000

60000

50000

40000

30000

20000

10000

0

53.3%

Stock price vs Sensex

Eicher Motors

Sensex

15.4%


Example 2 - Royal Enfield (Eicher Motors)Owner’s pride

MUTUAL FUND

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY0

6

FY0

5

FY0

4

FY0

3

FY0

2

• Bajaj Finance Limited is a non-banking finance company (NBFC), a subsidiary for Bajaj FInServ.

• It focuses on consumer lending, small & medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits & value-added services.

• Facilitator of aspira�onal consump�on.


1800

1600

1400

1200

1000

800

600

400

200

0

47 20 3489

247

406

591

719

898

1,279

1,837


CAGR 69%

30000

25000

20000

15000

10000

5000

0

45.4%Stock price vs Sensex

Bajaj Finance

Sensex

15.4%


Example 3 - Bajaj Finance Ltd.Most diversified NBFC in India

MUTUAL FUND

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY0

6

FY0

5

FY0

4

FY0

3

FY0

2

What is common between these outperformers?

THESE ARE WELL RECOGNISED BRANDS!!!

These companies have typically grown faster than the Sensex and Nominal GDP

BrandsGenerates substantial

royalties through brand licensing.

Higher market

valuations.

Can enter new

segments or markets.

High customer loyalty &

bargaining power.

Higher prot margins &

long term growth prospect.


Brands create long term sustainable value!MUTUAL FUND

Indiabulls Tax Savings Fund will invest in companies that are / have strong Brands

High quality portfolio of reputed

“brands”

Managed as a Diversied

Multicap fund, ideally 50% in large

and balance in Mid/small caps

Stocks would be picked up after

detailed fundamental research

Ideally companies that

are segment leaders or challengers

would be part of our portfolio


What we offer?MUTUAL FUND


Por�olio Construct

• Which are strong or have strong ‘Brands’

• Have robust business models

• Enjoy sustainable compe��ve advantages

• Strong management with a track record of managing well in complete business cycle

• High, sustainable growth and high return ra�os

Por�olio will comprise of companies:

• Fund shall invest across market capitalisa�on and sectors.

• Por�olio construc�on shall be predominantly growth oriented; stock selec�on to be based on bo�om up analysis.

MUTUAL FUND


Investment ProcessMUTUAL FUND

STEP 1

STEP 3

STEP 5

STEP 2

STEP 4

STEP 6

STEP 7

In-depth Fundamental Analysis - Growth prospects, earnings analysis, Balance sheet analysis, Valua�ons, peer comparison

Qualita�ve Analysis - Management, Corporate Governance, Business strategy, Compe��ve posi�oning

Brand - Company is or has strong brands?

Management mee�ng and industry channel checks

Investment Commi�ee Approval

Por�olio Alloca�on - Investment restric�ons, posi�on sizing, exposure and risk control

Monitoring & Review


Mr. Akshay Gupta (Group Execu�ve Head & CEO)Mr. Akshay Gupta has more than 20 years of experience in Banking, Asset Management and Capital Markets with last 14 years of experience in the Asset Management Industry in India. Prior to joining Indiabulls Group, he was associated with Peerless Asset Management as a Managing Director and Chief Execu�ve Officer for more than 6 years, wherein he led the ini�a�ve to setup a new Asset Management Company and made it one of the fastest growing new AMCs in India. He worked with ICICI Pruden�al Asset Management Company from 2002-2007 as a Business Head handling the en�re front end including Sales, Marke�ng, Strategy, Products, Interna�onal Business and Customer service and was part of the Senior Management team that made it the largest and most successful AMC at that �me. Prior to joining the AMC industry, Mr. Akshay Gupta was a Banker having worked in ABN AMRO Bank and HSBC working in capital markets and assets. In his various tenures with AMCs and Banks, Mr. Akshay Gupta spearheaded Sales, Strategy, Marke�ng, Wealth Management, Fund Management and Product Por�olios. Mr. Akshay Gupta holds a management degree in Finance & Marke�ng from FMS, Delhi and graduated as an engineer from Delhi. Several thought leadership ar�cles on asset management and financial planning authored by Mr. Gupta have been published in leading print media.

MUTUAL FUND

Indiabulls AMC: Leadership TeamExperience and Efficiency at its best

Mr. Suren Kochhar (Chief Business Officer - MF Distribu�on)Suren comes with a stellar work experience of over 22 years including the last 17 years in the AMC industry. He has a wide exposure to Sales & Distribu�on in Business to Business and Business to Client segment, specializing in Distribu�on & Sales with the Asset Management Industry. He has successfully managed & led the Business strategies in varied market environments. In the past he has been associated with firms like Tata Finance, Kotak Mahindra AMC, For�s Investment Management (erstwhile ABN AMRO Asset Management & now BNP Paribas AMC). His last assignment was with Principal PNB Asset Management as Na�onal Head Corporate Sales : Banks, Alliances & Ins�tu�onal Sales. At Indiabulls AMC, Suren is responsible for the expansion of retail distribu�on, increase in point of sales of MF products at the Na�onal Distributors, IFAs & Banks & expand the footprint with Ins�tu�onal clients at a senior level.

Mr. Sumit Bhatnagar (Head - Equity Funds, Indiabulls AMC)Mr. Sumit Bhatnagar Sumit has over 15 years of experience in Banking & Capital markets, with last 8 years in the AMC industry Sumit has been associated with Indiabulls AMC since incep�on, where he started as a analyst and graduated to Head – Equity Funds role. Prior to Indiabulls AMC, he worked with SEBI in Investment Management Department, regula�ng Mutual funds and Venture capital funds. Sumit started his career in Banking having worked in IDBI Bank & Cosmos Bank , handling retail and corporate lending. He has an MBA (Finance) from University of Toronto, Canada & is a CFA(USA) charter holder. In this role, Sumit is responsible for Equity Fund Management func�on at the AMC.


Disclaimer

The NAVs of the schemes may go up or down depending upon the factors and forces affec�ng the securi�es market including the fluctua�ons in the interest rates. The past performance of the mutual funds managed by the Indiabulls Asset Management Company is not necessarily indica�ve of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability of distributable surplus and at the sole discre�on of trustees. The views expressed herein represents general market outlook and purely represent the views of the author. This document shall not be deemed to cons�tute any offer to sell the schemes of Indiabulls Asset Management Company. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implica�ons of the investment/par�cipa�on in the scheme.

MUTUAL FUND

RISKOMETER

Investors understand that their principal will be at Moderately High Risk

wo

L

yletaredo

M

woL

eratd eo lyM Moderately

High

Hig

h

This product is suitable for investors who are seeking*

• The investment objec�ve of the Scheme is to generate long-term capital apprecia�on from a diversified por�olio of predominantly equity & equity-related Securi�es

• Moderately High Risk

• An ELSS Scheme offering tax benefits under Sec�on 80C of the Income Tax Act

*Investors should consult their nancial advisers if they are not clear about the suitability of the product.

Product Labeling

Thank You

tax growth saving potential - indiabullsamc.com tax savings fund... · financial services &...

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