View
6
Download
0
Category
Preview:
Citation preview
The first step of investing is to
decide allocation among different
asset classes. Asset allocation is
the most important factor that
determines the performance of a
portfolio. How much you invest in
equity or debt depends on your
stage of life and goals. Once you
have decided the allocation, it is
time to select products that would
fit the asset classes you want to
invest in. Today with a large
product su i te ava i lab le to
investors, this is a point of some
amount of confusion. At an overall
level, we should consider the
product features, liquidity, costs,
potential risks and tax efficiency
before selecting the product.
Anup BagchiMD & CEO
ICICI Securities Ltd.
Amongst all the parameters of evaluation, tax efficiency is an
extremely important aspect.
Tax-efficiency determines how much of a return we get to keep after
accounting for taxes. Put simply, the net post-tax return. As
investors, our goal should be to maximize the post-tax return of a
portfolio. This can be done through selecting products that are more
tax-efficient. In general, equity-linked products are best positioned
to provide better post-tax returns over the long run due to their
beneficial tax rules.
Keep in mind, even a small amount of tax saved today can make a big
difference to our net worth in the long run. For instance, even if we
manage to save 15,000 every year on taxes, for a period of next 25
years, and invest this amount, it would grow to 16.23 lakh at 10 per
cent rate of return. This is the gain of over 12 lakh on an investment
of 3.75 lakh (15,000 X 25 years).
``
``
1ICICIdirect Money Manager November 2014
Further, when it comes to saving taxes, we realize that certain
deductions and benefits are well known, while others are not. It is
important to be conversant with tax laws and fully utilize the benefits
available to us. Our experience is that health insurance tax limits
under section 80D are rarely fully used and these are over and above
1.50 lakh that we get under section 80C. One can save maximum
up to 40,000 under section 80D, if assesee and parents, both are
senior citizens (above age 60 years).
Even the tax deductions available under section 80C are rarely fully
used by most of us. If we do so, we can build a sizable corpus to meet
our goals. If we consider that a taxpayer is saving 1.50 lakh per year
under section 80C in tax-saving instruments from the age of 30 till
the retirement age of 60, and assuming 8 per cent rate of return, this
amount will grow to 1.77 crore. This is the magic of compounding.
And if we make proper asset allocation among different tax-saving
products, the corpus can grow even bigger.
Although tax-efficiency is important, the investment decision should
not be solely based on it. Our investments should go beyond just tax
saving and should focus more on fulfilling goals.
Last, but not the least, we are in a growing nation with further
potential for a long foreseeable future. Therefore, we must take full
advantage of that and participate and ride the growth through
equities, either directly or through other indirect route of investment
products.Investing in equity-related instruments (ELSS) is a good
option to create wealth in the long run. With its lock-in period of three
years, it allows us to ride out the inherent volatility in the markets and
remain invested for the long term. And the tax benefit it provides is
the additional cream on the pie.
Our message remains the same - 'Keep investing and stay invested
for your life goals'. Through this magazine and our website
www.icicidirect.com we want to make an earnest attempt to partner
with you in setting and achieving your financial goals. Do walk into
any of your Neighbourhood Financial Superstore and talk to us.
``
`
`
November 2014
2
When it comes to investing, most of us know that it is important to
look at the real rate of return. Real return is how much our
investments have grown over inflation. The returns also need to
be adjusted for tax to understand the real return in hand. While
the asset classes (equity, debt, etc.) define the real returns most of
the times, it is the product choice, in the specific asset class, that
defines the tax efficiency.
We must factor in the tax implications of each product, based on
our personal situations, in order to know what returns we are
likely to get in. Tax laws and implications keep changing. To help
you get the updated information, we, in our cover story of this
edition, list various investments across asset classes, in the light
of tax implications.
The edition also offers comprehensive information and analysis
on ELSS, tax-saving mutual funds, which are best option for
saving taxes as well as creating wealth in the long run. All in all,
this issue is a wholesome tax planning package, which we hope,
will help you plan your taxes more efficiently and in sync with
your financial goals.
I would also like to draw your attention to our interview, with
Pankaj Murarka, Head – Equity, Axis Mutual Fund, who advises
investors to remain focused on their long-term asset allocation.
Further, if you wish to get clarity on different aspects of personal
finance or any other money matter through Ask our Planner, you
may write to us at money manager @icicisecurities.com. So read
on, stay updated and involved. Do write in with your feedback
and share your thoughts.
Editor & Publisher : Abhishake Mathur, CFA
Coordinating Editor : Yogita Khatri
Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey
CMEditorial Team : Azeem Ahmad, Nithyakumar VP CFP , Nitin Kunte, Sachin Jain, Sheetal Ashar
ICICIdirect Money Manager November 2014
Your magazine is now also available on www.magzter.com, a digital newsstand.
3
MD Desk...............................................................................................1
Editorial................................................................................................2
Contents...............................................................................................3
News.................................................................................................. .4
Markets Round-up & Outlook.................................................................. 5
Getting Technical with Dharmesh Shah................................................... 8
Derivatives Strategy by Amit Gupta.......................................................10
Stock Ideas: SKF India and L&T .............................................................. 15
Flavour of the Month: Tax implications of various investments Here we take you through the various avenues of investments across asset classes, in the light of tax implications…..................21
Tête-à-tête: 'Remain focused on long-term asset allocation'An interview with Pankaj Murarka, Head – Equity, Axis Mutual Fund…..............................................................................................34
Ask Our Planner: Switching your investment options Your personal finance queries answered…....................................36
Mutual Fund Analysis: Category - ELSSHere we analyse top-performing ELSS funds, which are best option for saving taxes as well as creating wealth in the long run….................................................................................................40
Equity Model Portfolio..........................................................................47
Mutual Fund Top PicksHere we present our research team's top mutual fund recommendations, across equity and debt categories…..............52
Quiz Time............................................................................................54
Monthly Trends....................................................................................55
Premium Education Programmes Schedule.............................................58
ICICIdirect Money Manager November 2014
4ICICIdirect Money Manager
No PAN requirement for investment in Kisan Vikas Patra
The Finance Minister Arun Jaitley and Communication Minister Ravi Shankar Prasad relaunched Kisan Vikas Patra (KVP) scheme. The Finance Ministry has said that there will not be requirement of Permanent Account Number or PAN in putting money in relaunched KVP. It will be available to the investors in the denomination of Rs. 1000, Rs 5,000, Rs 10,000 and Rs 50,000, with no upper ceiling on investment. The investment made in the certificate will double in 100 months.
Courtesy: The Hindu Business Line
Maintaining a bullish stance on Indian equities, foreign investors increased their exposure in BSE Sensex companies to an all-time high of 27 per cent in the September quarter, says a report. “FII stake in Sensex companies has been rising continuously since 2009,” the global financial services major Bank of America Merrill Lynch said in a research note, adding the FII stake stood at an all-time peak of 27 per cent as of September 30. As of June 2014, FIIs collectively held around 22.5 per cent of the market and around 46 per cent of the free float.
Courtesy: The Indian Express
FII stake in Sensex companies hits all-time peak of 27 pct: BofA-ML
About 80 per cent of respondents, read parents, who participated in the annual ING Zing survey, said they believed that their children followed their money habits. Even more discerning is the fact that children tend to pick parents' spending habits marginally more than their saving habits, at least among those who earn above Rs 8 lakhs annually. The study also observes that as your income levels go up, children tend to develop spending habits more while parents' tend to shore up their savings habits.
Courtesy: Business Standard
Children mimic parent's money habits, spending event more: ING survey
Negative growth rates in major sectors such as engineering, pharma, gems and jewellery, and petroleum products saw the country's overall merchandise exports shrink 5.04% in October. India's exports have plunged into the negative zone after a gap of six months. An export contraction was last witnessed in March when it fell 3.15%. Coupled with the largely unexpected decline in exports, a surge in imports of gold kept the trade deficit at $13.35 billion in October against the $10.59 billion a year earlier. The deficit was thankfully a bit lower than that in September when it stood at an 18-month high of $14.24 billion.
Courtesy: The Financial Express
October exports shrink 5% after a gap of six months
November 2014
5ICICIdirect Money Manager
MARKETS ROUND-UP
Markets to take cues from reforms and CPI data as Q2 season comes to end
October month was a tale of
two halves with the first half
showing weakness while the
second half saw a sharp
recovery with global
commodity prices correcting
sharply and an improvement
in global cues. A drop in
m a n u f a c t u r i n g P M I
(Purchasing Managers' Index)
on a month-on-month (MoM)
basis coupled with muted
global cues led to the sluggish
start to the month. Lower
industrial production data also
dented the market confidence.
The consumer price index
(CPI) for September 2014
cooled off to 6.5% vis-à-vis
7.8% in August 2014 (the
lowest value in the last 22
months). The WPI (wholesale
price index) was also lower
and came at its five-year low of
2.4%. The decline in both CPI
and WPI was cheered by the
markets as expectations of a
policy rate cut by the Reserve
Bank of India (RBI) in its next
monetary policy in the first
week of December resurfaced
again. The sentiments also
improved in the second half of
the month on the back of a
drastic decline in crude oil
prices to ~$85/barrel and
positive cues from around the
globe at the fag end of the
month as Bank of Japan's
Moneta ry Po l i cy Board
unexpectedly decided to raise
the monetary base at an
annual pace of about 80 trillion
Yen.
The Q2 earnings season in
October also influenced the
performance of the markets.
The banking sector continued
to show an improvement in the
operational performance with
both private and public sector
banks improving sequentially.
Consumer d iscret ionary
stocks continued to show an
improvement in operational
performance, especially the
auto sector, which showed
positive earnings led by
volume growth on improved
sent iments and fes t ive
demand. The FMCG (fast
moving consumer goods)
s e g m e n t , h o w e v e r ,
November 2014
6ICICIdirect Money Manager
MARKETS ROUND-UP
disappointed as volume
growths continued to remain
low. The IT (Information
Technology) pack had a
disappointing earnings season
mainly driven by an
unfavourable currency impact.
Pharmaceutical companies,
on the other hand, had a mixed
bag with a positive bias.
The global markets have been
driven by contrasting news
flows across the globe. Post
the disappointing industrial
output data from Germany, the
German government had cut
the growth estimate for this
year as well as the next year to
1.2% and 1.3%, respectively.
The market sentiment further
deteriorated as the
International Monetary Fund
(IMF) cut its global growth
forecast to 3.3% from 3.4%,
the third such revision in the
year. The decline in crude oil
continued unabated in the
month clearly highlighting
growth concerns. The market
sentiment, however, received
a boost as the Federal Open
Market Committee (FOMC)
meeting ended with the
minutes revealing the dovish
stance of the Fed on the policy
rate front, even as the
Quantitative Easing (QE)
programme ended. At the end
of the month, the Bank of
Japan unexpectedly surprised
the markets with a spurt of
monetary easing.
During the month, crude
(Brent) continued the decline
and ended at ~$85/barrel. The
trend continued in early
November as well, with crude
reaching the lows of $81.
The US markets continued to
trade with a negative bias
through the month but ended
with a strong positive bias post
the announcement from the
Bank of Japan. Major indices,
Dow Jones, S&P 500 and the
Nasdaq gained about 1.9%,
2% and 2.8%, respectively.
European markets, however,
remained weak despite the late
surge in the indices in the last
two sessions while the FTSE
lost 2.8%. The German Dax
and French CAC lost 3.3% and
5%, respect ively. Asian
markets, also gained in the last
two sessions to end on a
positive note with the Nikkei
Global markets
November 2014
7ICICIdirect Money Manager
MARKETS ROUND-UP
and Shanghai SSEC gaining
0.6% and 2.6%, respectively,
while the Hang Seng posted a
gain of 3.3%.
The foreign institutional
investors (FIIs) continued to
remain net buyers in the Indian
markets although the pace has
considerably slowed down
over the past couple of months
and the net buy figure was ~
900 crore while domestic
institutional investors (DIIs)
heavily bought to the tune of
~ 5,700 crore led by strong
inflows into mutual fund
schemes.
The Nifty and Sensex ended
firmly in the positive territory
for the month with most
sectoral indices also ending
the month in the green. Except
BSE Realty (-1.8%) and BSE
FMCG (-1.8%), all other indices
ended October on a strong
note. BSE Bankex, BSE Power,
BSE PSU, BSE Auto and BSE
Oil saw sharp gains of 10.7%,
9.5%, 7.2%, 4.7% and 4%,
respectively, while BSE IT and
BSE Healthcare ended the
month flat.
Domestic markets
Outlook: Post Q2 numbers, focus
`
`
shifts to government reforms and
RBI policy
As the earning season comes
to an end without much
surprise (negative or positive),
the markets will eagerly look
towards government reforms
as well as the RBI's policy
stance (next policy meet on
ecember 2). In order to
expedite the reforms process,
the Modi government initiated
the much awaited portfolio
expansion by induct ing
t e c h n o c r a t s a n d c a d r e
workers in the Cabinet. After
the clear mandate for the BJP
in Haryana and the emergence
as the largest party in
Maharashtra, this expansion
will be construed as a step in
the right direction and is likely
to be cheered by the markets.
Falling crude prices and
improving CPI numbers are
likely to add to the buoyancy
w i t h h o p e s o f d o v i s h
comments by the RBI in its
next policy meet. In this
scenario, markets are likely to
pay less attention to the global
cues and focus on the
domestic situation.
November 2014
8ICICIdirect Money Manager
TECHNICAL OUTLOOK
Bulls reign supreme; index eyeing 28800
Benchmark indices overcame huge bouts of volatility amid weak global cues owing to worries about global growth and the end of years of US stimulus. After displaying resilience in the face of a volatile global environment, market sentiments were boosted by reform measures announced by the government and a strong verdict in the state assembly elections. The benchmarks (Sensex and Nifty) staged a firm rebound precisely from the close to our earmarked support zone of 26,000/7,800 levels and surged to new all-time highs in line with our expectation.
The dash towards new all-time highs after one month corrective phase signals resumption of upward momentum after a brief pause. Going forward we expect benchmarks to remain in a rising trajectory and head
towards 28,800/8,650 levels over the medium-term. The O c t o b e r 2 0 1 4 l o w o f 25,910/7,723 will act as a key short- term base for the markets.
The decline unfolding since hitting the September 2014 high of 27,354/8,180 displayed all the signs of a healthy corrective decline within an established uptrend and re-affirmed the overall positive price structure as index retraced its 25-session decline in just 8 trading sessions.
The resolution past September 2014 highs opens target of 28,800/8,650 being the depth of the September correction (27,354-25,910) as projected above September 2014 highs over a medium term.
Sectorally, the banking index resumed its leadership role and ventured into new all-time highs ahead of the benchmarks. We expect banking to lead the benchmarks, going forward. The auto and capital goods sectors are also expected to outperform in the coming month.
November 2014
2976 pts
3098 pts
21
week EMA
Extended rally measuring 3244 pts so far
9ICICIdirect Money Manager
TECHNICAL OUTLOOK
BSE Sensex – Weekly Candlestick Chart
Source: Bloomberg, ICICIdirect.com Research
The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.
Weekly RSI tested its own rising trend line support along with price approaching its key support of 26000 levels and produced a strong pullback indicating strength in the up move
November 2014
Index concluded a month long corrective phase and signalled r e s u m p t i o n o f u p w a r d momentum by recouping its last falling segment in faster time. We expect the index to remain in rising trajectory and head towards 28800 over the medium term
10ICICIdirect Money Manager
DERIVATIVES STRATEGY
Nifty to move towards highest call base of 8500
Amit Gupta
Head - Derivatives Research,ICICI Securities
Nifty recovered sharply in the
second half of the October
series and is currently trading
close to 8400 levels. At the
same time, strong global cues
coupled with sustained foreign
institutional investors' (FII)
interest in the equities also
helped Nifty to scale new highs
and Nifty is likely to hit target of
8500.
Open interest in Nifty futures
has risen to 1-year high and it
almost tested 25 million shares
during the series. FIIs have
bought more than 11,000
crore since October 17 when
Nifty made the low of 7730.
Looking at the significant build-
up of positions, a round of
profit booking cannot be ruled
out. However, Nifty is likely to
find buying support once again
near its previous highs of 8200
which also coincides with the
highest Put open interest base.
On higher side, 8500 call strike
`
h a s s e e n c o n t i n u o u s
accumulation, which remains
the target.
November 2014
Option open interest of November Series
0
50000
100000
150000
200000
250000
7800 7900 8000 8100 8200 8300 8400 8500 8600 8700 8800
OI (
No.
of
Con
trac
ts)
Put OI Call OI
Bank Nifty: likely to move
towards target of 17500/17800
The Bank Nifty was the key
catalyst in the current up-leg of
the Nifty. Post the cool-off seen
in consumer price index (CPI)
and wholesale price index
(WPI) readings the index
rocketed 1400+ points to
16600 levels.
The banking space also got a
push from bond yields. Yields
came down to a 13-month low
of 8.32 (10-year government
security (G-Sec)).
With most private sector banks
reporting stronger net interest
margins (NIMs) and profit
margins, there is a clear
preference for private sector
11ICICIdirect Money Manager
DERIVATIVES STRATEGY
November 2014
banks over public sector
banks. This bodes well for the
banking index, as private
banks have more than three-
fourth weightage in the
banking index.
Since the election verdict, this
space has been relatively
under-owned. Until recently,
most stocks were struggling to
take out their election verdict
highs. Sticky inflation was one
of the key reasons for this.
However, as inflation cooled-
off sharply during the month
coupled with a weak set of Q2
numbers from technology
majors, banking stocks are
back in favour. Banking stocks
are likely to move up in the
coming month while the short
open interest (OI) in many of
the stocks is still high and is
seeing a rollover of these
positions into the November
series.
Looking at the options build
up, the highest Call base
remains the target for the
index, which is at 17500
followed by 18000 strike. On
the lower side, support is
placed at 16000 levels, which is
the highest Put base.
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
1550
0
1570
0
1590
0
1610
0
1630
0
1650
0
1670
0
1690
0
1710
0
1730
0
1750
0
Call OI Put OI
India VIX: Likely to consolidate
above 10.5 as geo-political and
economic risks stay elevated
globally
On expected lines, India
Volatility Index (VIX) saw a
jump of 30% to 17 levels as the
Nifty fell on the back of weak
global cues. However, towards
the month end, as markets
recovered, the fear gauge also
cooled-off.
Going ahead, as geo-political
risks and global market jitters
remain alive, the VIX could
remain higher above its
extraordinary low levels of 10.5
seen in September.
On a positional basis, the 50 &
100 week moving average is at
18.2. This level is likely to be
tested only in the event of the
Nifty reaching 7800.
12ICICIdirect Money Manager
DERIVATIVES STRATEGY
November 2014
S&P 500: Current momentum likely to continue above 1980 levels
After witnessing the worst selling pressure of last 3 years which eroded almost 10% value, the recovery was even more prominent as S&P 500 surpassed its highest Call base of 2000 strike to make a new life high. We expect the current momentum is unlikely to fade out until S&P move below 1980 levels once again.
Even for coming up December series, the highest Call option base is placed at Call 2000 s t r i k e a l o n g w i t h t h e noteworthy Put base. We expect S&P to continue its momentum on the back of stuck up Call writers. Only a move below 1980 levels is likely to change the ongoing trend.
Unlike the previous pull backs, S&P 500 Index has found support of small-cap stocks as well suggesting broader
participation in the move.
Russell 2000 Index has erased all of its declines in the recent bounce back, which was not seen previous pull backs as Russell Index has under performed S&P500.
S&P has shown tendency of moving towards its 50-DMA (displaced moving average) in case of any intermediate profit booking. Currently 50 DMA for S&P is placed near 1980 levels which makes it buying level on declines.
S&P500 options open interest for December Series
0
20000
40000
60000
80000
100000
120000
140000
160000
1940
1950
1960
1980
2000
2020
2040
2050
2075
2090
2100
Call OI Put OI
Dax: Immediate support is placed at 9200
The German Index, Dax, has
underperformed most of its
peers as it is still trading below
its breakdown levels of 9600.
Despite a thousand points
recovery, under-performance
can largely be attributed to
w e a k e n i n g c u r r e n c y o f
Eurozone.
The highest Put base of
German Index is placed at 9000
13ICICIdirect Money Manager
DERIVATIVES STRATEGY
November 2014
strike for December series
which is likely to remain crucial
support for the index in the
near term. At the same time,
Call base is placed evenly
above 9500 strike. Hence a
move above 9500 may induce
fresh momentum in the DAX.
Importantly, both 100 and 200
DMA levels for German Index
are placed in the vicinity of
9 5 0 0 s t r i k e i n d i c a t i n g
immediate resistance for the
index. Hence, fresh upward
bias is expected if DAX is able
to sustain above these levels.
Unlike the rest of equity
markets, volatility index for
German Index is still at higher
at 16.5. US VIX is near 12.7
while India Volatility Index is
near 14 levels. Higher volatility
index in DAX indicates
prevailing skepticism in the
German markets.
DAX option open interest for December Series
0
10000
20000
30000
40000
50000
60000
8900
9000
9100
9200
9300
9400
9500
9600
9700
9800
Dollar Index: Likely to surpass 2008
highs towards our immediate target
of 90
As expected, Dollar Index did
not move below 84 levels and
resume its upward trend
towards su rpass ing i t s
previous highs. Along with
s t r e n g t h i n d o l l a r ,
simultaneous selling pressure
in the US Bonds suggests
money flow from safer assets
to r i sky assets due to
expectations of sustained
liquidity flow.
The Dollar Index in the last
couple of months has moved
up sharply and posted the
highest quarterly gains since
2008. The primary move from
80 to 85 in Dollar Index was
triggered by weakness in Euro.
Statements from European
Central Bank (ECB) hinted at
further expansion of balance
sheet, which triggered another
round of weakness in Euro
currency. We expect Euro to
remain weak and test 2010
lows of 120 in days to come. At
the same time, coupling effect
was observed from Japanese
14ICICIdirect Money Manager
DERIVATIVES STRATEGY
November 2014
Yen, which is at the highest
levels since 2008.
Both Euro and Japanese Yen
cumulatively holds more than
70% weight in the Dollar index,
given the weakness in the
major currencies, we expect
Dollar index to surpass its 2008
highs of 89.5 and move
towards 90 in the near term.
Brent Crude: Downsides likely to extend for target of 78/75 levels
As expected, Crude failed to
witness any meaningful
recovery and hovered near 80
levels for most part of the last
month. The Put base placed at
85 strike remained major
hurdle for Crude and it failed to
sustain above these levels.
As per U.S. CFTC (Commodity
Futures Trading Commission)
data, net long positions in
Brent Crude have declined
sharply to 60,000 contracts
from 240,000 contracts seen in
the June series. The current
trend of long liquidation is
likely to continue in the Brent
and declines are likely to get
extended.
Along with speculators, Hedge
position holders for Brent are
still bearish as almost 39%
positions are still hedged
against further decline. Despite
Crude trading near 4 year lows,
s u c h a h i g h h e d g i n g
p e r c e n t a g e i n d i c a t e s
skepticism prevailing for the
crude prices.
Recent declines have forced
crude to breach its three-year
consolidation range. It may
eventually find support at its
July 2010 breakout levels of
$78. Hence, our downside
positional target in Brent is at
$78.
Crude option open interest for December Series
0
4000
8000
12000
77 78 79 80 81 82 83 84 85 86 87
Call OI Put OI
The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.
15
STOCK IDEAS
SKF India: Leader in the Bearings space
ICICIdirect Money Manager
Company Background
Incorporated in 1961, SKF India is the Indian subsidiary of the Sweden based SKF Group, which is a global leader in b e a r i n g s , s e a l s a n d mechatronics & lubrication systems. The company is a leader in the Indian bearing market with ~28% market share. SKF is well-diversified across the automotive (54% of revenues including exports, which are manufactured in India) and industrial segment (46% of revenues, which are mainly imported from SKF Group companies) as well as S K F Te c h n o l o g i e s ( t h e subsidiary of the parent). In the automotive segment, SKF India caters to both two-wheelers as well as four-wheelers (PV (passenger vehicles), CV (commercial vehicles), tractors, etc.) of which two-thirds come from or iginal equipment manufacturer (OEM) and r e m a i n i n g f r o m t h e replacement markets. SKF India caters to almost all automotive OEMs in India such as Tata Motors, Hero MotoCorp, HMSI, Maruti, Bajaj Auto, Mahindra & Mahindra, TVS, Bosch, etc. In
the industrial segment, SKF India supplies to all major industries like heavy industries such as steel, mining etc, agriculture, power, capital goods, oil & gas and food & b e v e r a g e ( F & B ) . W i t h i n industrial, ~65% pertains to aftermarket and 35% to OEMs. Its clientele includes: heavy industries: SAIL, Coal India, JSW, Essar, Tata Steel; energy: NTPC, Tata Power, Suzlon; industrial machinery: Bhel, GE, L&T; oil & gas: Reliance, ONGC, Cairn India; F&B: Nestlé, ITC, Pepsi. SKF India has three manufacturing facilities: Pune, Haridwar and Bangalore.
Leading bearing manufacturer with equal presence in industrial & auto
SKF is the leader in the Indian bearing market (pegged at 8,000-8,500 crore) with ~28% share. Known for deep groove ball bearings (forming ~35% of revenues and ~45% market share), SKF is equally present across the industrial (46% of s a l e s ) a n d a u t o m o t i v e segments (54% of sales inc luding exports) . With expected industrial revival and
Investment Rationale
`
November 2014
16
STOCK IDEAS
ICICIdirect Money Manager
up-tick in auto demand going ahead, SKF is well poised to capture the opportunity given its strong balance sheet with cash flow generation and scalability bandwidth. We expect revenues to grow at 13.3% compounded annual growth rate (CAGR) over CY13-16E to 3,266 crore.
Early signs of recovery seen in auto, SKF to be key beneficiary
For year-to-date (YTD) Cy14, the auto sector has shown signs of recovery with ~12.3% growth (mainly driven by two wheeler segment growth, which was up 16.3% year-on-year (YoY)). With the auto industry finally showing signs of recovery after nearly two years of a demand slump, new launches and product refreshes are the key, going ahead. SKF, being the largest bearings player in the industry, commands scalabi l i ty bandwidth coupled with a lean balance sheet and is poised to capture the opportunity arising from the revival in demand in the automotive segment. We expect SKF's manufactured product (auto) sales to exhibit ~14.6% CAGR over CY13-16E, in line with overall auto growth assumptions.
`
Localisation of industrial bearing to boost margins & market share
Industrial bearings (46% of revenues) are sourced from the parent (~90%) and SKF Technologies. We expect import substitution of industrial bearings, through ramp up in SKF Technologies, to be a key revenue driver for SKF's r e v e n u e s a n d m a r g i n expansion as SKF would improve its turnaround time while the resultant cost saving would lead to market share gains. Consequently, we expect industrial (traded goods) sales to grow at 11.6% CAGR over CY13-16E with overall EBITDA margins recovering to 13.7% in CY16E vs. 11.5% in Cy13.
Premium valuations driven by growth prospects ahead
SKF is trading at 20.8x CY16E EPS. Given SKF's leadership position in the bearing space, strong earnings growth (CAGR of 24% in CY13-16E), healthy balance sheet with robust cash flow generation ( 680 crore over CY14E-16E) and core return on equity (RoE) in excess of 30%, we ascribe a P/E multiple of 24x (implying a PEG (Price/Earnings to Growth) of 1x) on CY16E EPS. Hence, we assign a target price of 1,448/share with a BUY rating.
`
`
November 2014
17
STOCK IDEAS
ICICIdirect Money Manager
Key risks include: Japanese competition which may thwart market share, Sustained slowdown in key segment, Raw material cost rise, Delay in SKF Technologies ramp up may delay localisation process and Forex Risk impact on financial performance.
(EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS: Earnings per share; P/E: Price-to-earnings; EV: Enterprise value; RoNW: Return on net worth; RoCE: Return on Capital Employed; FII: Foreign Institutional Investors; DII: Domestic Institutional Investors)
Key Financials
Valuations Summary
Stock Data
November 2014
Net sales ( crore) 2,246.4 2,446.8 2,802.4 3,266.5
EBITDA ( crore) 261.4 318.9 376.2 453.1
Net profit ( crore) 166.7 223.4 263.6 318
CY13 CY14E CY15E CY16E
`
`
`
`EPS ( ) 31.6 42.4 50 60.3
P/E (x) 39.7 29.6 25.1 20.8
Target P/E (x) 45.8 34.2 28.9 24
EV / EBITDA (x) 23.9 19.2 16 12.9
P/BV (x) 5.2 4.7 4.2 3.7
RoNW (%) 13 15.9 16.7 17.6
RoCE (%) 16.6 18.9 20.2 21.7
CY13 CY14E CY15E CY16E
Market capitalization ( crore) 6,620
Total debt (CY13) ( crore) 0
Cash and investments (CY13) ( crore) 376
Enterprise value ( crore) 6,244
52-week High/ Low ( ) 1,248/ 511
Equity capital ( crore) 52.7
Face value ( ) 10
FII holding (%) 15.5
DII holding (%) 17.1
`
`
`
`
`
`
`
18
STOCK IDEAS
ICICIdirect Money Manager
L&T: Best way to capture capex recovery cycle
Company Background
Investment Rationale
After being incorporated in 1938, Larsen & Toubro (L&T) has come a long way to bec om e I nd ia ' s l a r ges t engineering and construction (E&C) company. The company has business interests in engineering, construction, manufacturing, information technology and financial services. Considered the bellwether of the Indian engineering sector, it is renowned for its strong execution capabilities and professional management. The company commands a dominant presence in India's i n f r a s t r u c t u r e , p o w e r, hydrocarbon, machinery and railway related projects. With a customer base spanning across 30 countries, the company has significantly increased its global footprint, along with a notable presence in the Middle East. The company operates across different business verticals through the independent companies.
Proxy play on India Infrastructure story
L&T is the most diversified engineering & infrastructure developer in the country with a presence across all segments of infrastructure i.e. power, roads , hydroca rbons & process industries. It is also planning to scale up in niche areas like defence, nuclear power and shipbuilding, which have the potential to add s ign i f i can t l y to overa l l revenues in the next three to five years (for instance, opening of defence foreign direct investment (FDI) and ordering can help L&T achieve scale of 5x in terms of defence segment revenues from current 1,000 crore run rate). Over the last couple of years, L&T has added capacity to meet increasing volumes. For instance, the company had added 5,000 MW (MegaWatts) of power equipment facility, the heavy engineering facility in Oman (FY10) and recently added a complex shipbuilding facility. Hence, we expect L&T to register a revenue CAGR (compounded annual growth rate) of 16.58% in FY14-16E as it commands a strong order backlog of 2,14,000 crore, thereby providing visibility for
`
`
November 2014
19
STOCK IDEAS
ICICIdirect Money Manager
three years.
In Q1FY15, hydrocarbon business reported an EBIT (earnings before interest and taxes) loss of 942 crore. This was mainly due to cost/time overruns in Middle East hydrocarbon orders to the tune of 10,000 crore. The management expects these orders to get executed by FY15E. However, in Q2FY15, the segment reported a minor loss of 54 crore indicating that most provisions are provided for and losses will be completely provided for in the next six to nine months. Hence, we expect most of the pain to be over by Q4FY15.
We expect revenue CAGR of 16.8% over FY14-16E while EBITDA (earnings before interest, taxes, depreciation, and amortization) CAGR over the same period is expected at 13.4%. Hence, with operating leverage in play, our PAT (profit after tax) CAGR over FY14-16E stands at ~11% as we have assumed flattish other income
Ghost of hydrocarbon segment losses receding gradually
Revenue and PAT to exhibit 16.8% and 11% CAGR in FY14-16E on pick up in execution, margin stability
`
`
`
component in FY16E over FY14 while depreciation and interest costs are expected to exhibit a CAGR of ~9% and 3%, respectively. Hence, we expect L&T's PAT to be at 6,461 crore in FY16E vs. 5,247 crore in Fy14.
Concerns such as a depleting order book in the power/heavy engineering segment seem to be abating as ordering trends in H1FY15 for these segments seems to be encouraging. This, we believe will lead to robust revenue booking over Fy16 17E coupled with continued strong execution of the infrastructure segment. Even the ghost of hydrocarbon seems to be factored into the valuation. We assign a target price of 2,206 (24-months perspective) as we believe by December 2015, we will get clarity on the intensity of the capex (capital expenditure) cycle recovery and markets will start discounting into FY17E-18E earnings and visibility. Thus, we believe L&T's is the best option to play the capex recovery cycle in India. We recommend 'Buy'.
``
`
Worst seems to be getting over as FY16E to see robust execution; recommend 'Buy’
November 2014
20
STOCK IDEAS
ICICIdirect Money Manager
Key risks include: Delay in macro economic environment pickup, policy inaction and rising competitive intensity from domestic as well as Chinese and Korean players.
(EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS: Earnings per share; P/E: Price-to-earnings; EV: Enterprise value; P/BV: Price-to-book value; RoNW: Return on net worth; RoCE: Return on Capital Employed; DII: Domestic institutional investors; FII: Foreign Institutional Investors)
Key Financials
Valuations Summary
Stock Data
November 2014
Net sales ( crore) 60,874 66,580.2 74,114.5 90,823.8
EBITDA ( crore) 6,403.9 7,280.5 7,915.8 9,365.3
Net profit ( crore) 4,729.5 5,247.2 5,374.8 6,461.8
EPS ( ) 51.1 56.7 58.1 69.9
`
`
`
`
P/E (x) 32.3 29.1 28.4 23.6
Target P/E (x) 18.9 17.1 16.7 13.9
EV / EBITDA (x) 25.1 22.1 20.3 17.2
P/BV (x) 5.2 4.7 4.2 3.8
RoNW (%) 16.2 16.2 14.9 16
RoCE (%) 14.8 15.1 14.8 16.2
Market capitalization ( crore) 1,52,608.5
Total debt (FY15E) ( crore) 10,836.2
Cash and investments (FY15E) ( crore) 2,799.3
Enterprise value (EV) ( crore) 16,0645.4
52-week High/ Low ( ) 1.5
Equity capital ( crore) 185
Face value ( ) 2
DII holding (%) 36.6
FII holding (%) 15.6
`
`
`
`
`
`
`
21ICICIdirect Money Manager
FLAVOUR OF THE MONTH
Tax implications of various investments
One of the important aspects of investments, which, we as investors often overlook, is: Tax-efficiency of returns. Tax efficiency is a measure of how much of an investment's return is left over after taxes are paid. Tax efficiency is essential in order to maximize net returns on our investments. “As regards the return of investment, one needs to consider the real net returns and not gross returns. There are various tax implications, as regards to returns on investments, which one needs to consider before investing,” says CA Dhananjay J. Gokhale. A basic understanding of investment income and taxes can go a long way in helping you build a tax-efficient portfolio. Mr. Gokhale takes us through the various avenues of investments across asset classes, in the light of tax implications. Read on.
INVESTMENTS IN EQUITY
Stocks (Equity and Preference
Shares):
There are two types of income
which are earned from stock,
viz., Dividend and / or Capital
Gain / (Loss) when the stock is
sold.
As regards the tax aspect on
d i v i d e n d o n s h a r e s o f
domest ic company, the
dividend is not taxable in the
hands of the investor as the
company pays dividend
distribution tax or DDT at
17.65% on the same. (It Was
15% up to September 30, 2014
and has been increased to
17.65% w.e.f. October 01,
2014). For details on DDT,
please refer Section 115O of
Income Tax Act, 1961.
When a stock is sold, the same
is considered as capital gain
except in case wherein the
investment is made in the
course of business of trading in
securities and not as an
investment. As regards the tax
aspect on Gain / (Loss) on sale
of stock the period of holding is
important to determine the
taxability of the income, which
will be clear from the following
table:
November 2014
CA Dhananjay J. Gokhale
22ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
Type of security Period of holding
Type of capital gain / (loss)
Taxability
Equity shares / preference shares which are listed
Up to 12
months
Short -term capital gain / (loss) at
15%
Taxable
More than 12 months
Long -term capital gain / (loss )
Not Taxable if securities tran saction tax (STT ) paidTaxable if STT is not paid
Equity shares / preference shares which are not listed
Up to 36 months
Short -term capital gain / (loss)
Taxable
More than 36 months
Long -term capital gain / (loss)
Taxable
There are various avenues to prudently save the taxable long-term capital gains, which are as follows:
Section Particulars Amount / Limitations54F If net consideration is
invested in residential house property purchased either before one year or within two years or constructed within three years
The benefit cannot be availed if the assessee owns more than one house property (other than the newly acquired / constructed property) as on the date of capital gain
If the amount is not utilised for purchase / construction of house property by the end of the financial year, the same needs to be deposited in Capital Gain Scheme Account on or before the due date of filing Income Tax return
54EC If amount of capital gain is invested in specified securities
Rs. 50 lakh
Employee Stock Option Plans (ESOPs):
Today, there a re many corporates who offer ESOPs to its employees wherein the employees are rewarded by
offer ing a stake in the ownership of the company.
As regards the taxability of the ESOPs, when an employee exercises the option under ESOP, i.e., when he subscribes
23ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
to the equity shares (securities) of the company, his taxability is dependent on the Fair Market Value (FMV) as on the date of exercising the option:
(I) If the FMV is lower than the exercise price, the difference is taxable in the hands of the employee as a perquisite and is considered as Income from Salary and taxed accordingly;
(ii) If the FMV is higher than the exercise price, generally the employee does not exercise the option to subscribe the equity shares. In case if it is exercised, there is no tax incidence.
When equity acquired under ESOPs are sold, the same are governed by the regulations applicable to equity shares, except that the cost price is required to be considered as FMV or exe rc i se p r i ce w h i c h e v e r i s h i g h e r (presuming that the taxability of the same is taken care of at the time of exercising the option as stated in the above para).
Derivatives:
The transactions in derivatives a r e n o t c o n s i d e r e d a s “Speculative Transactions”
w.e.f. financial year 2005-06, thanks to the provisions of Finance Act, 2005. The classification of income from derivatives as capital gain or business income depends on various factors in relation to the assessee such as:
(I) I n t e n t i o n b e h i n d undertaking transactions
(ii) Frequency of transactions(iii) Holding period(iv) Volume of transaction
However, as all the above factors are subjective in nature, there is always a grey area to determine the nature of income from derivatives transactions. In case if the said income is considered as b u s i n e s s i n c o m e , t h e compliance of tax audit needs to be kept in mind, if the turnover (which is gross summation of profit and loss from derivative transactions), exceeds 1 crore during a financial year and in other cases, compliance with section 44AD needs to be ensured.
Equity Mutual Funds:
There are two types of income which are earned from equity-oriented mutual funds, viz., Dividend (in case of dividend
`
24ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
option) and/or Capital Gain/ Loss when the units are redeemed.
As regards the tax aspect on dividend (income) from equity-oriented mutual funds, the dividend is not taxable in the hands of the investor as the
mutual fund pays DDT at 14.28% on the same (Note: 14.28% is for individual investors and for others it is 42.86%). For details on DDT, please refer Section 115R of Income Tax Act, 1961.
When mutual fund units are sold or redeemed, the same is considered as capital gain, which is subject to taxability as follows:
Type of security
Period of holding
Type of capital gain / (loss)
Taxability
Equity oriented mutual funds where in STT is paid
Up to
12 months
Short -term capital gain / (loss)
Taxable
More than 12 months
Long -term capital gain / (loss)
Not t axable
Equity oriented mutual funds where in STT is not paid
Up to
36 months
Sho rt -term capital gain / (loss)
Taxable
More than 36 months
Long -term capital gain / (loss)
Taxable
Further, in case if an assessee invests in Equity Linked Savings Scheme (ELSS) mutual funds, the investment is eligible for deduction from his
taxable income to the extent of 1,50,000 (Refer section 80C of
Income Tax Act, 1961) with a lock-in period of three years from the date of investment.
`
Following table will give a comparative statistics as regards the various angles related to tax implications w.r.t. growth and regular (dividend) option of equity mutual funds.
Holding period wherein STT is paid
Equity mutual fund – Growth
Equity mutual fund – Dividend Dividend
Principal amount
Up to 12 months
Taxable as short-term capital gain at 15%
DDT p aid by MF at 14.28%
Taxable as short-term capital gain at 15%
More than 12 months Not taxable
DDT paid by MF at14.28%
Not taxable
25ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
Thus, an investor should
prudently choose the type of
scheme, depending on his
taxable income and applicable
tax bracket.
Rajiv Gandhi Equity Savings
Scheme (RGESS):
The scheme was launched as a
new tax advantage saving
scheme for equity investors in
India, who are first time retail
investors in securities market.
Under the scheme an investor
was allowed to invest a
maximum amount of 50,000
per financial year and was
eligible for 50% deduction
from his taxable income. The
said scheme can be availed by
t h e i n v e s t o r f o r t h r e e
consecutive years and the
gains arising out the scheme
can be realized after one year.
The said scheme is applicable
for investors with annual
income not more than 12 lakh
per annum.
`
`
The taxability of income (in the
form of dividend / gain arising
out of redemption of units) is
same as in case of equity
mutual funds.
Unit Linked Insurance Plans
(ULIPs)/ Unit Linked Pension Plan
(ULPPs)/ National Pension System
(NPS):
The investment made under
ULIP as well as ULPP/NPS, is
eligible for deduction from
taxable income, under section
80C to the extent of 1,50,000
per annum. (In case of NPS,
eligible for deduction under
section 80CCD to the extent of
1,00,000 within over all limit
of 1,50,000 under section
80CCE). However, as regards
the taxability from encashment
of the same, one needs to
check various aspects which
are summar ised in the
following table:
`
`
`
26ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
Type of investment
Event for encashment
Taxability Conditions
ULIP Death of policy holder
Not taxable in the hands of the recipient
Surrender of policy before maturity
Not taxable in the hands of the recipient
If paid for five years
Taxable in the hands of the recipient
If not paid for five years
Surrender of policy at the time of maturity
Not taxable in the hands of the recipient
ULPP Death of policy holder
Not taxable in the hands of the recipient
Surrender of policy before maturity
Benefit availed under section 80C will be reversed and the surrender value will be required to be offered to tax
Surrender of policy at the time of maturity
1/3 rd
of the surrender value is tax -free and balance 2/3 rd
needs to be used for purchas e of annuity plan
NPS Death of policy holder
Not taxable in the hands of the recipient
Closure or opting out of the scheme or pension received from annuity plan purchased
Taxable
As regards NPS, there is an additional benefit available for employees which is in addition to the overall ceiling of 1,50,000 under section 80CCE, wherein the contribution is
`
made by an employer to account of an employee under NPS, subject to a ceiling of 10% employee's salary will be eligible for deduction from his taxable income. (Please refer
27ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
sub-section (2) of section 80CCD of Income Tax Act, 1961 for more details on this additional benefit).
Bank Fixed Deposits (Fds): There are no tax-incentives for investment in bank fixed deposits (FDs) except for Fds kept with a scheduled bank with a lock-in period of not less than five years, wherein deduction under section 80C is available. However, such tax-benefit FDs are subjected to certain conditions like lock-in period of at least five years, no advances can be granted against security of these Fds. As regards the interest received on bank FDs, the
INVESTMENTS IN FIXED-INCOME
same is taxable in the hands of the assessee.
Corporate Fixed Deposits (Fds):
The investment in corporate fixed deposits (FDs) does not offer any tax benefit. As regards the interest received on corporate FDs, the same is taxable in the hands of the assessee.
Debentures / Non-Convertible Debentures (NCDs):
The investment in Debentures / NCDs does not offer any tax benefit. As regards the interest received on Debentures / NCDs, the same is taxable in the hands of the assessee.
Debt Mutual Funds (Including Fixed Maturity Plans or FMPs):
The investment in debt mutual funds does not offer any tax benefit. As regards the taxability of the income earned on the debt mutual funds, the taxability is as per following table:
Holding period Debt mutual fund – Growth
Debt mutual fund – Dividend Dividend Principal
amountUp to 36 months
Taxable as short-term capital gain
DDT paid by MF at 33.33%
(42.86% if the
investor is other than Individual)
Taxable as short-term capital gain
More than 36 months
Taxable as long-term
capital gain at
20% after indexation
DDT paid by MF at
33.33%
Taxable as long-term capital gain at 20% after indexation
28ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
PPF/ EPF/ KVP/ NSC/ SCSS/ Other Post Office Savings Schemes:
There are various other avenues for investments which are fixed-income generating and the taxability w.r.t. the same is given in the following table:
Type of investment
Tax benefit available on investment
Taxability on income earned
Taxability on withdrawal of
principal amountPublic Provident Fund (PPF)
Eligible for deduction under section 80C within overall limit of Rs. 1,50,000 p.a.
Tax -free Tax -free
Employees’ Provident Fund (EPF)
Eligible for deduction un der section 80C within overall limit of Rs. 1,50,000 p.a.
Tax -free
Tax -free, provided the employee is in employment for a continuous period of not less than five years, otherwise taxable
Kisan Vikas Patra (KVP)
No benefit
Taxable
Not taxable
National Sa vings Certificates (NSC)
Eligible for deduction under section 80C within overall limit of Rs. 1,50,000 p.a.
Taxable but eligible for deduction under section 80C
Not taxable
Senior Citizen Savings Scheme (SCSS)
Eligible for deduction under section 80C with in overall limit of Rs. 1,50,000 p.a.
Taxable
Not taxable
Five -year time deposit with Post Office
Eligible for deduction under section 80C within overall limit of Rs. 1,50,000 p.a.
Taxable
Not taxable
Recurring Deposit (RD) / Monthly Income Scheme (MIS) with Post Office
No benefit Taxable Not taxable
29ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
INVESTMENTS IN CASH /LIQUID ASSETS
Savings Bank Account:
The interest earned on savings bank account in excess of 10,000 p.a. is taxable in the hands of the individual (Deduction to the extent of 10,000 is available under section 80TTA of Income Tax Act, 1961). In case if the amount of interest does not exceed 10,000, the same is not taxable in the hands of the
`
`
`
individual.
Liquid Mutual Funds:
The investment in liquid mutual funds does not offer any tax benefit. However, these mutual funds are popular amongst the investors for parking of surplus funds and ea rn be t te r r e tu rns as compared to short-term fixed deposits of banks and also due to very lower or nil exit load charged by the mutual funds.
As regards the taxability of the income earned on the liquid mutual funds, the taxability is as per following table:
Holding period Liquid mutual funds –Growth
Liquid mutual funds–Dividend Dividend
Principal amount
Up to 36 months
Taxable as sho rt -term capital gain
DDT paid by MF at
33.33%
(42.86% if the investor is other than Individual)
Taxable as short -term capital gain
More than 36 months
Taxable as long -term capital gain at
20% after indexation
DDT
paid by MF at
33.33%
Taxable as long-term capital gain at 20% after indexation
INVESTMENTS IN GOLD
I n Ind ia , a lmos t every household invests in gold in v a r i o u s f o r m s ( t h o u g h traditionally is purchased in physical form) and at various occasions.
Investment in gold in any of the
following forms attracts same tax treatment w.e.f. FY: 2014- 15:
I) Physical Form
ii) Gold Exchange Traded Funds (ETFs)
iii) Gold Mutual Funds
30ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
Holding period Taxability Tax rate
Up to 36 months
Taxable as short term capital gain
Will be clubbed along with the overall income, thus, app licable tax bracket depending on the taxable income of the assessee
More than 36 months Taxable as long -term
capital gain20% after indexation
There are various avenues to prudently save the taxable long-term capital gain, which are as follows:
Section Particulars Amount / Limitations54F If net consideration is
invested in residential house property purchased either
before one year or within two years or constructed within three years .
The benefit cannot be availed if the assessee owns more than one house property (other than the newly acquired / constructed property) as on the date of capital gain
If the amount is not utilised for purchase / construction of house property by the end of the financial year, the same needs to be deposited in Capital Gain Scheme Account on or before the due date of filing Income Tax return
54EC If amount of capital gain is invested in specified securities
Rs. 50 lakh
INVESTMENTS IN REAL ESTATE
Physical Property:
The taxability of income from
investment in real estate
(physical investment) is
considered as “Income from
House Property” and taxed
according to the provisions
under Income Tax.
As regards the gains arising out of sale of physical property, the tax incidence and avenues of saving of tax are as follows:
31ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
Type of security Period of holding* Type of capital gain / (loss)
Taxability
i) Residential house property
ii) Land used for agricultural purposes
Up
to 36 months
Short -term capital gain / (loss)
Taxable
More than 36 months
Long -term capital gain / (los s)
Taxable
*To be calculated from the date of possession of the house property and not from the date of purchase agreement
There are various avenues to prudently save the taxable long-term capital gain, which are as follows:
Section Type of capital gain Particulars Amount / Limitations
54 Residential house property
If amount of capital gain is invested in residential house property purchased either before one year or within two years or constructed within three years
No limitIf the amount is not ut ilised for purchase /construction of house property by the end of the financial year, the same needs to be deposited in Capital Gain Scheme Account on or before the due date of filing Income Tax return
54B Land used for agricultural purposes
If amount of capital gain is invested in land to be used for agricultural purpose within two years from the date of transfer
The land sold should have been used for agricultural purpose for two years immediately preceding the date on which transfer took place
If th e amount is not utilised for purchase /construction of house property by the end of the financial year, the same needs to be deposited in Capital Gain Scheme Account on or before the due date of filing Income Tax return
54EC If amount of capital gain is invested in specified securities
Rs. 50 lakh
32ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
Real Estate Investment Trusts (REITs):
The recent announcement by the Securities and Exchange Board of India (SEBI) as regards guidelines for creation of REITs, it is expected that it would be a new investment avenue for avid investors who are on the look-out for non-t r a d i t i o n a l i n v e s t m e n t avenues . However, t he success of REITs would largely depend on the way the scheme are drafted and launched. As regards the taxability of the REITs, presuming that the same are launched as mutual funds, is likely to be in line with non-equity mutual funds. But one needs to wait and watch for the REITs to be launched to understand the nitty-gritty of taxation.
ALTERNATE INVESTMENTS
Art Effects /Private Equity (PE) /Venture Capital:
These are unconventional investment avenues, not su i tab le for r i sk-averse investors, thanks to the illiquidity of such investments and uncertainty of income generation on the same. As r e g a r d s t h e i n c o m e generation, the same may be generated in the form of dividend on Private Equity (PE) investments , which has taxability similar to dividend on equity shares, which is not taxable in the hands of the investor. As regards income received on Venture Capital, the taxability depends on the nature of instruments as to whether the same is in the form of units of mutual fund, or equity or debentures.
The taxability on sale of investments made in Art (effects), Private Equity and Venture Capital (whether in the form of units, equity or debentures) is as follows:
Holding Period Taxability Tax Rate
Up to 36 months
Taxable as short-term capital gain
Will be clubbed along with the overall income, thus, applicable tax bracket depending on the taxable income of the assessee
More than 36 months Taxable as long-term
capital gain20% after indexation
33ICICIdirect Money Manager
FLAVOUR OF THE MONTH
November 2014
There are various avenues to prudently save the taxable long-term capital gain, which are as follows:
Section Particulars Amount / Limitations54F If net consideration is
invested in residential house
property purcha sed either before one year or within two years or constructed within three years
The benefit cannot be availed if the assessee owns more than one house property (other than the newly acquired / constructed property) as on the date of capital gain
If the
amount is not utilised for purchase / construction of house property by the end of the financial year, the same needs to be deposited in Capital Gain Scheme Account on or before the due date of filing Income Tax return
54EC If amount of capital gain is invested in specified securities
Rs. 50 lakh
Portfolio Management Services (PMS):
The taxability of investments made under PMS depend on the intention of the investor, i.e., whether the same is to be treated as business income or capital gain. Depending on the
intention of the investor (which is a subjective concept), the tax incidence on such transaction needs to be determined as stated earlier in relevant type of securities (dependent on the type of investment, viz., equity, debentures, etc.).
Note:The implication of tax on various aspects of investment is a vast subject and is dependent on case to case basis. This article is limited to the extent of having an overview of the same. It may be noted that the reader of the article is expected to take a decision only after consulting an expert in the field of taxation and not depending on the contents of this article. This article is not an expression of an opinion by the author, and in no manner is intended to provide guidance to the investor in what so ever manner. The decision of investment made by the reader of the article should be made at his own risk and without any recourse to the author of this article.
Please send your feedback to moneymanager@icicisecurities.com
34ICICIdirect Money Manager
'Remain focused on long-term asset allocation'
Indian macro has stabilized and has become more supportive for economic growth, says Pankaj Murarka, Head – Equity, Axis Mutual Fund in an interview with ICICIdirect Money Manager. He advises investors to remain focused on their long-term asset allocation and not make too many frequent adjustments based on recent market actions.
Pankaj Murarka,
Head – Equity,
Axis Mutual Fund
Tête-à-tête
Q :
A:
Markets seem to be in consolidation mode, after sharp gains in the recent past. How do you see them trending in the near term? What are the risks to the market?
We do not take a view on markets in the short-term as we do not think it is possible to predict short-term market movements.
The key risk to the market over the medium-term is linked to execution by the government. Market expects the government
t o i m p l e m e n t g r o w t h -enhancing policies over the next 6-12 months.
Do valuations look expensive?
Valuations are around the fair-value range. However, it should be noted that corporate earnings are at the low-end of the cycle and any growth rebound should lead to a strong earnings boost.
How is the economic situation looking like?
Indian macro has stabilized a n d h a s b e c o m e m o r e support ive for economic growth. While growth has revived, it remains weak and uneven. It will take a couple of years for the economy to move to a decisively higher growth path and government policies will be crucial to decide the trajectory.
How are September quarter earnings looking like? What is the road ahead for corporate earnings?
In the absence of a broad based recovery so far, Earnings activity is extremely stock-spec i f i c . H igher qua l i t y
Q:
A:
Q:
A:
Q:
A:
November 2014
35ICICIdirect Money Manager
Tête-à-tête
November 2014
companies have been able to maintain/grow profits but many other companies have got i m p a c t e d b y t h e w e a k economy. On a consolidated basis, earnings-to-GDP (gross domestic product) ratio is far lower than the level seen in 2007. Sustained revival in growth should provide a strong boost to earnings.
Which sectors are you favoring currently and why?
Rather than looking at sectors, our approach has always been to look at quality companies across sectors that offer good medium-term earnings growth prospects. From a portfolio perspective, over the last few months, we have run a higher exposure to cyclical stocks that are exposed to the economic recovery. We believe that the economy has bottomed and the revival over the medium term will provide a big boost to quality stocks that can take advantage of the same.
The Reserve Bank of India (RBI) has maintained status quo in its recent monetary policy. By when do you see the interest rates easing?
Inflation is on a weakening trend and the RBI should be able to comfortably meet its glide path target in January 2015. We expect policy rates to be cut over the next 6-12 months.
Q:
A:
Q:
A:
Q:
A:
Q:
A:
How do you see the currency reacting to the expected Fed action in 2015?
Given the stability in Indian macro situation, the economy should not face any disruptive risk from any rate hikes by the Fed. Some points to note are the significant fall in current account deficit (CAD), higher forex (FX) reserves, one of the highest interest rates in emerging markets, and being at a dif ferent stage in the economic cycle compared to the US.
What is your advice for investors at this point in terms of their overall portfolio and asset allocation?
Investors should remain focused on their long-term asset allocation and not make too many frequent adjustments based on recent market actions. Going forward, from a medium-to-long term perspective, both equity and fixed-income seem to be poised to generate r e a s o n a b l e r e t u r n s f o r investors. Investors should only look at quality portfolios and avoid making large allocations to narrow strategies.
The views expressed in the interview are personal views of the authors and do not necessarily represent the views of ICICI Securities.
36ICICIdirect Money Manager
ASK OUR PLANNER
Switching your investment options
Q:
A:
Our Group Superannuation Fund is managed by ICICI Prudential Life Insurance for the last 7 years. We have been given a choice to select the fund and I have chosen 'Short Term Debt Fund ' f rom the beginning. We have the option of switching to Tradition Plan / Balanced Plan / Growth Plan. Is it advisable to switch it to Traditional plan / Balanced Plan for a better return with minimal risk? My age is 47.
- Sivaramakrishnan KG
Short Term Debt Funds are ideal for investing for shorter term i.e. less than 1 year. Staying invested in them for a period of 7 years is not advisable. If your horizon is long i.e.15 years or more, you should consider investing some portion into equity-oriented funds. Now that you are 47 and might retire in the next 10-12 years, you can still consider investing into equity for below reasons:
One, your provident fund already invests into debt instruments and will be a signif icant part of your retirement corpus. Two, the
provident fund accumulation can be utilized for funding your initial post-retirement years, say 10 to 15 years, depending on the accumulation and your post-retirement expenses. This means that your other investments can stay invested into equity - oriented instruments for this period too, adding to the 10-12 years left now for retirement.
Since the number of years your other investments can stay invested is over 15-20 years, you can consider switching the funds even to Growth Plan. Growth Plan carries risk, but the risk can get minimized if you hold it over a longer period of time (15-20 years).
Also, while switching to Growth Plan, it is suggested not to switch the entire amount in lump sum, rather it is better to switch systematically on a regular basis, say, once in a month or quarter, depending on how it is allowed for you in your Superannuation Fund. This will help in averaging the entry point into equity.
I am a retired employee aged 60 Q:
November 2014
37ICICIdirect Money Manager
ASK OUR PLANNER
years. My requirement of housing, medical and monthly income is taken care of. I would like to invest part of my retirement corpus of around 30 lakh in mutual funds with following objectives: To beat the inflation and grow the corpus in tax-efficient manner in next five – seven years.
Since investing big amount of money through SIP route is not possible in a short time, please let me know if it is a good idea to invest in lump sum in mutual funds at current levels. Please suggest funds for investment keeping my profile in mind.
- Manjunath
In order to beat inflation and grow tax-efficient corpus, the best option is to invest into equity. However, it is not advisable to invest lump sum amount in equity, given its inherent volati le nature. Hence, it is best to invest systematically, either through SIP (systematic investment plan) or STP (systematic transfer plan).
If you invest through SIP, the entire amount would be kept in savings bank account, earning you a nominal rate of return. Instead, you may shift the
`
A:
entire amount in liquid funds, which will provide better return than savings bank account.
You can then start an STP from liquid mutual fund, which will systematically transfer a fixed amount from your liquid mutual fund into equity mutual fund regularly, say, every month. However, the gains from your liquid mutual fund shall be added to your income and will be taxable as per your income slab.
Let's say you invest 30 lakh into liquid mutual funds and start doing an STP of 1.50 lakh per month into equity mutual funds from next month onwards. You would have transferred the entire amount into equity funds over the next 22 months approximately. The gain booked from the liquid m u t u a l f u n d s w h i l e transferring every month will be added to your income. This can be around 2 lakh in the first year and 60,000 in the next year (assuming the liquid fund gives you a return of 9% p.a.).
On equity side, if your horizon is more than 10 years, it is better to stick to balanced
`
`
` `
November 2014
38ICICIdirect Money Manager
ASK OUR PLANNER
November 2014
funds and large-cap funds only. Of the entire gamut of equity funds, these will be the lesser riskier ones comparatively. However, if you are looking at strictly 5 to 7 years horizon, it is better to stick to Monthly Income Plans (MIPs), as shifting all your funds into equity funds will itself take close to 2 years, leaving you with only 3 to 5 years for growth, which may not be an ideal time horizon for investing the full amount into equity funds.
For our recommended mutual funds, please refer our MF Top Picks in this edition or visit our website www.icicidirect.com.
I have an ICICI Prudential Life Time Pension policy maturing on 23.01.15. I do not want annuity now as my age is 51 years. The total amount is approximately 2.40 lakh on maturity. My annual income is above 25 lakh. My query is:
1. What is the tax implication if I surrender the policy now and invest the whole amount in National Pension System (NPS)?
2. Is it possible that on maturity I get 1/3rd amount back as tax-free and instead of purchasing annuity, balance 2/3rd is credited to my NPS
Q:
`
`
account, or entire amount is credited to my NPS account? Or, is there any other tax beneficial option?
- A Saraswat
First option: If you surrender any pension plan before its maturity, then the entire surrender proceeds, not just the gain, will be added to your income and taxed as per your income slab. This had been done to discourage investors from surrendering pension plans. However, there is no Tax Deducted at Source (TDS).
Second option: On maturity of a pens ion p lan , you can
rd withdraw a maximum of 1/3 of the maturity value in lump-sum, which will be exempt
rdfrom tax. The balance 2/3 has to be necessarily utilized to purchase annuity.
In the first option, you can invest the post-tax surrender proceeds into NPS. If you opt for the second option, you will
rdbe able to invest only 1/3 of the maturity value into NPS on maturity of the policy.
From taxation perspective, pulling out money from one EET (Exempt-Exempt-Tax) investment, i.e. pension policy,
A:
39ICICIdirect Money Manager
ASK OUR PLANNER
November 2014
and putting it into another EET ( E x e m p t - E x e m p t Ta x ) investment, i.e. NPS will not make much difference.
(EET regime means your investment at the stages of contribution and accumulation is Exempt from tax, denoted by E-E-, but at the time of withdrawal, it is Taxable, denoted by T).
If you are not keen on receiving
annuity, then surrendering the
amount and investing into
equity mutual funds in a
staggered manner may be a
better choice, as this will help
you recover the tax paid on
surrender proceeds quicker
than NPS if markets do well
and also the gains after a
per iod o f 1 year f rom
investment into equity funds
will be exempt from tax.
I want to know the two best
mutual funds to invest 3,000 p.m.
for long term purpose. I would also
like to get some rough idea of the
corpus that these two funds would
generate in next say 15 or 20 years.
- H S Harikrishnan
The table below gives you an
idea of how much corpus will
be generated if you invest
3,000 per month in two equity
mutual funds for a period of
next 15 or 20 years. This is at
different rates of returns.
Q:
A:
`
`
In the last 15 years, some of the consistently performing equity mutual funds have given returns of around 15% p.a. While no return is guaranteed by any mutual fund, in the longer term – 15 to 20 years, you can expect a decent
return, which will help you beat inflation comfortably.
T o k n o w a b o u t o u r recommended mutual funds, please refer our MF Top Picks in this edition or visit our website www.icicidirect.com.
Period
Returns (p.a.)
8% 10% 12% 15%
15 years ` 10,19,335 ` 12,04,864 ` 14,27,794 ` 18,49,097
20 years ` 17,17,980 ` 21,71,960 ` 27,59,572 ` 39,81,220
Do you also have similar queries to ask our experts? Write to us at: moneymanager@icicisecurities.com
40
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Category: Equity Linked Savings Scheme (ELSS)
Key Information:
The Equity Linked Savings Schemes (ELSS), tax-saving mutual funds, are the best avenue for saving taxes as well as creating wealth in the long run. Here we analyse the top-performing funds.
Fund Objective:
To generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securit ies. However, there can be no assurance the investment objective of the scheme will be achieved.
Product Label:
This product is suitable for investors seeking*:
• Capital appreciation & generating
income over long term
• Investment in a diversified portfolio
predominantly consisting of equity and equity related instruments
• High risk
Fund Manager:
Performance:
Jinesh Gopani has a total experience of 13 years in the capital markets of which four years are in equity fund management. He has done his MMS in finance from Mumbai University.
E x c e p t i o n a l l y g o o d performance so far makes the fund a top ranking ELSS fund. On a one-year basis, the fund has delivered a whopping 66% return (as on October 30, 2014) vs. 35% delivered by its benchmark and ~47% being category average in the same year.
Over three years - minimum for which ELSS funds get locked in, the fund has delivered 2 8 . 3 % c o m p o u n d e d annualised return (CAR), thereby not only beating other tax-saving instruments but comparing very well against its own benchmark (S&P BSE 200) CAR of 15.5% and ELSS category average CAR of ~20% for the same three-year
NAV as on October 30, 2014 ( ) 26.7
Inception Date December 29,2009
Fund Manager Jinesh Gopani
Minimum Investment (`)
- Lumpsum 500
- SIP –
Expense Ratio (%) 2.33
Exit Load Nil
Benchmark S&P BSE 200
Last declared Quarterly AAUM( cr) 2512
`
`
Axis Long Term Equity
41
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
period. An investment of 100,000 would have grown to 2,17,094 in three years. Additionally, the investment would have earned tax savings of 30,900 for the individual falling in the highest tax b r a c k e t . T h e r e f o r e , a cumulative return of 147,997 ( 117,097+ 30,900) is the gain on the 1,00,000 invested within a period of three years.
``
`
`` `
`
Performance vs. Benchmark
38.4
66.3
28.3
24 3
4.9
15.5
11.2
010203040506070
6 Month 1 Year 3 Year 5 Year
Retu
rn%
Fund Benchmark
30-Sep-13 30-Sep-12
30-Sep-13 30-Sep-12 30-Sep-11
30-Sep-14
Last Three Years Performance
Fund Name
Fund 76.27 3.26 18.97
Benchmark 42.50 -1.11 13.77
CNX Nifty 38.87 0.56 14.42
2013 2012 2011 2010 2009
Calendar Year-wise Performance
NAV as on Dec 31 ( ) 17.3 14.8 11.1 13.0 10.0
Return (%) 16.5 33.7 -14.8 30.0 0.0
Benchmark (%) 4.4 31.0 -27.0 16.2 88.5
Net Assets (` Cr) 840 426 137 60
`
`Date
Fund 25950
Benchmark 14957
CNX Nifty 15532
* As on Sep 30, 2014
Note: Investors should note that past performance may or may not be repeated in future
Portfolio:
Being an ELSS, funds get
locked in for three years, which
give fund managers the liberty
to increase exposure to
midcap stocks. Some of Mr.
Gopani's mid-cap bets have
been exceptionally rewarding:
e.g. Page Industries, Astral
Polytechnic. The portfolio is a
selection of high-quality stocks
within the chosen sector.
Banking exposure is restricted
to private sector banks as asset
quality pressure is lowest.
Public sector banks reeling
under asset quality pressure
find no place in the portfolio.
The fund manager has
remained so cautious that
even the leader - State Bank of
India (SBI), the favourite stock
of his peers and an index
heavyweight - has not been
included.
Overall, the portfolio is mix of
fundamentally strong large-
cap and mid-cap companies. It
i s t h e o p t i m u m f u n d
forinvesting with three year
horizon.
Value of investement of 10000 since inception`
42
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Top 10 Holdings Asset Type %
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
(Blue) Investors understand that
their principal will be at low risk
(Yellow) Investors understand that
their principal will be at meduim risk
(Brown) Investors understand
that their principal will be at high
risk
HDFC Bank Ltd. Domestic Equities 8.2Kotak MahindraBank Ltd. Domestic Equities 5.5Tata Consultancy Services Ltd. Domestic Equities 5.3Housing Development Finance Corporation Ltd. Domestic Equities 4.9Larsen & Toubro Ltd. Domestic Equities 4.8Sun Pharmaceutical Industries Ltd. Domestic Equities 4.2TTK Prestige Ltd. Domestic Equities 4.0Motherson Sumi Systems Ltd. Domestic Equities 3.4Tech Mahindra Ltd. Domestic Equities 3.4Maruti Suzuki India Ltd. Domestic Equities 3.4
Top 10 Sector Asset Type %
Bank - Private Domestic Equities 17.0IT - Software Domestic Equities 11.1Pharmaceuticals & Drugs Domestic Equities 10.0Finance - Housing Domestic Equities 7.2Auto Ancillary Domestic Equities 6.8Consumer Durables - Domestic Appliances Domestic Equities 6.1Engineering - Construction Domestic Equities 4.8Automobiles - Passenger Cars Domestic Equities 3.4Finance - NBFC Domestic Equities 3.2Diesel Engines Domestic Equities 2.9
Market Capitalisation (%)
Large 68.1
Mid 26.7
Small 2.8
Portfolio Attributes
Total Stocks 41.0
Top 10 Holdings (%) 47.2
Fund P/E Ratio 35.8
Benchmark P/E Ratio –
Fund P/BV Ratio 7.5
Asset Allocation
Equity 97.6
Debt 0.0
Cash 2.4
Risk Parameters
Standard Deviation (%) 11.85
Beta 0.79
Sharpe ratio 0.26
R Squared 0.82
Alpha (%) 7.73
Dividend History
Jan-07-2014 10
Aug-08-2012 8
Sep-01-2010 10
Date Dividend (%)
Performance of all the schemes managed by the fund manager
Fund Name30-Sep-13
30- -14Sep
30- -12Sep
30- -13Sep
31- -11Sep
31- -12Sep
Axis LT Equity Fund(G) 76.27 3.26 18.97S&P BSE 2004 2.50 -1.11 13.77Axis Hybrid Fund-7-Reg(G) 22.82 – –Crisil MIP Blended Index 15.45 – --
Data as on October 31, 2014; Portfolio details as on September 30, 2014
Source: ICICIdirect.com Research, Accord Fintech
43
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Franklin India Tax Shield
Fund Objective:
To provide medium to long term
growth of capital along with
income tax rebate.
Key Information:
NAV as on October 30, 2014 ( ) 373.8
Inception Date April 10, 1999
Fund Managers Anand Radhakrishnan and Anil Prabhudas
Minimum Investment ( )- Lumpsum 500
- SIP 500
Expense Ratio (%) 2.39
Exit Load Nil
Benchmark CNX 500 Index
Last declared Quarterly AAUM( cr) 1413
`
`
`
Product Label:
This product is suitable for investors
seeking*:
• Long term capital appreciation
• An ELSS fund offering tax benefits
underSection 80C of the Income Tax Act
• Medium risk
Fund Managers:
Anand Radhakrishnan and Anil
Prabhudas
Anand Radhakrishnan is Chief
Investment Officer (CIO),
Franklin Templeton Asset
Management (India) Pvt Ltd.
He has overall 18 years of
experience in the investment
management industry. Mr.
Radhak r i shnan ho lds a
postgraduate degree in
management (Indian MBA),
from the Indian Institute of
M a n a g e m e n t ( I I M ) ,
Ahmedabad, and a Bachelor of
T e c h n o l o g y d e g r e e ,
special ising in chemical
eng ineer ing f rom Anna
University, Chennai in 1990. He
is also a Chartered Financial
Analyst (CFA) charter holder.
Anil Prabhudas is assistant vice
president and senior research
analyst for Franklin Templeton
India AMC Ltd, based in
Chennai, India. He holds a
bachelor in commerce from
Bombay University, and is also
a chartered accountant.
The fund is a steady performer.
It is sure to deliver above
category average return in any
kind of market (bull market,
bear market or consolidation).
However, the fund hardly ever
is a top ranker. It will always fall
in the first quartile beating
several of its peer funds in
terms of performance. This
uniqueness is across all funds
from the Franklin Templeton
AMC stable in their respective
categories.
Performance:
44
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Performance vs. Benchmark
34.6 5
1.6
21.1
18.425
37.9
15.8
11.3
0102030405060
6 Month 1 Year 3 Year 5 Year
Retu
rn%
Fund Benchmark
30-Sep-13 30-Sep-12
30-Sep-13 30-Sep-12 30-Sep-11
30-Sep-14
Last Three Years Performance
Fund Name
Franklin India Taxshield 59.14 0.21 13.54
Benchmark 46.08 -2.49 13.22
CNX Nifty 38.87 0.56 15.42
2013 2012 2011 2010 2009
Calendar Year-wise Performance
Value of investement of 10000 since inception`
`Date
NAV as on Dec 31 ( ) 256.1 241.3 186.5 219.9 178.1
Return (%) 6.1 29.4 -15.2 23.5 78.8
Benchmark (%) 3.6 31.8 -27.2 14.1 88.6
Net Assets (` Cr) 1004 942 747 884 760
`
Fund 373196
Benchmark NA
BSE Sensex 76876
Portfolio:
The portfolio comprises of large-
cap stocks with highest weightage
to private sector banks. The two
large public sector banks - State
Bank of India (SBI) and Punjab
National Bank (PNB) also form
part of the portfolio indicating the
fund manger 's preference
towards the sector. Finance
companies and rating agencies
also find a place indicating the
fund manger is positive on the
economic recovery cycle leading
increased growth rates for
banking & finance companies. The
fund has also benefited from the
rally in the auto and auto ancillary
companies and still continues to
hold many of them (combined
exposure: ~10% of portfolio).
There is no bias towards a
particular theme and the portfolio
comprises companies from
diverse sectors.
A large-cap bias along with
optimum sector diversification
makes the fund relatively low on
risk. It is a suitable ELSS fund for a
moderate to conservat ive
investor.
An investment of 1,00,000
would have grown to
1,81,340 in three years.
Additionally, the investment
would have earned tax
savings of 30,900 for the
individual falling in the
highest tax bracket. Therefore
a cumulative return of
1,12,240 is the gain on the
1,00,000 invested.
`
`
`
`
`
45
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Top 10 Sectors Asset Type %Bank - Private Domestic Equities 24.7
IT - Software Domestic Equities 9.0
Pharmaceuticals & Drugs Domestic Equities 8.8
Telecommunication - Service Provider Domestic Equities 5.9
Auto Ancillary Domestic Equities 5.9
Automobiles-Trucks/Lcv Domestic Equities 4.2
Diversified Domestic Equities 3.6
Refineries Domestic Equities 3.3
Diesel Engines Domestic Equities 3.3
Ratings Domestic Equities 3.1
Whats In %Crompton Greaves Ltd. 0.4
SKF India Ltd. 0.9
Alstom T&D India Ltd. 0.1
%Whats OutHousing Development Finance Corporation Ltd. 1.6
Idea Cellular Ltd. 0.5
Numero Uno International Ltd. 0
Portfolio Attributes
Total Stocks 55.0
Top 10 Holdings (%) 43.9
Fund P/E Ratio 26.2
Benchmark P/E Ratio –
Fund P/BV Ratio 4.9Risk Parameters
Standard Deviation (%) 11.70
Beta 0.81
Sharpe ratio 0.22
R Squared 0.90
Alpha (%) 1.99
Market Capitalisation (%)
Large 76.1
Mid 169.0
Small 5.0
Asset Allocation
Equity 93.4
Debt 0.0Cash 6.6
Dividend History
Jan-27-2014 30
Jan-21-2013 20
Feb-06-2012 30
Jan-17-2011 40
Jan-18-2010 30
Dec-19-2008 30
Date Dividend (%)
Top 10 Holdings
Call Money Cash & Cash Equivalents 6.6
Bharti Airtel Ltd. Domestic Equities 5.6
Infosys Ltd. Domestic Equities 5.4
ICICI Bank Ltd. Domestic Equities 5.3
HDFC Bank Ltd. Domestic Equities 5.0
IndusInd Bank Ltd. Domestic Equities 3.6
Yes Bank Ltd. Domestic Equities 3.2
Eicher Motors Ltd. Domestic Equities 3.1
Torrent Pharmaceuticals Ltd. Domestic Equities 3.1
Dr. Reddys Laboratories Ltd. Domestic Equities 3.0
Asset Type %
46
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Performance of all the schemes managed by the fund manager
Fund Name30-Jun-13
30-Jun-14
30-Jun-12
30-Jun-13
31-Jun-11
31-Jun-12
Franklin Build India Fund(G) 87.81 1.48 16.37
CNX 500 Index 46.08 -2.49 13.22
Franklin India Taxshield(G) 59.14 0.21 13.54
CNX 500 Index 46.08 -2.49 13.22
Franklin India Prima Plus Fund(G) 58.95 0.38 13.49
CNX 500 Index 46.08 -2.49 13.22
Franklin India Balanced Fund(G) 46.77 1.39 11.49
Crisil Balanced Fund Index 28.89 1.86 13.74
Franklin India Life Stage FOFs-20(G) 42.62 -0.41 11.95
CNX 500 Index 46.08 -2.49 13.22
Franklin India Bluechip Fund(G) 41.41 -0.61 12.28
S&P BSE SENSEX 37.41 3.29 14.03
Franklin India Index Fund-NSE Nifty(G) 38.57 0.73 15.26
CNX Nifty Index 38.87 0.56 15.38
Franklin Infotech Fund(G) 34.47 27.62 13.75
S&P BSE IT 36.33 32.36 12.27
Franklin India Life Stage FOFs-30(G) 31.64 1.07 11.09
CNX 500 Index 46.08 -2.49 13.22
Franklin India Pension Plan(G) 28.87 2.37 11.15
CNX 500 Index 46.08 -2.49 13.22
Franklin India Dynamic PE Ratio FOFs(G) 27.89 0.38 10.77
Crisil Balanced Fund Index 28.89 1.86 13.74
Franklin India Life Stage FOFs-40(G) 24.46 2.53 10.98
CNX 500 Index 46.08 -2.49 13.22
Franklin India MIP(G) 19.88 5.24 9.94
Crisil MIP Blended Index 15.45 3.18 10.64
Franklin India Life Stage FOFs-50(G) 17.01 2.74 10.23
Crisil Composite Bond Fund Index 11.61 3.45 9.55
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
(Blue) Investors understand that
their principal will be at low risk
(Yellow) Investors understand that
their principal will be at meduim risk
(Brown) Investors understand
that their principal will be at high
risk
Data as on October 31, 2014; Portfolio details as on September 30, 2014
Source: ICICIdirect.com Research, Accord Fintech
47ICICIdirect Money Manager
EQUITY MODEL PORTFOLIO
Our indicative large-cap equity model portfolio has continued to deliver an impressive return of 78.7% (inclusive of dividends) till date (as on November 11, 2014) since its inception (June 21, 2011) vis-à-vis the benchmark index (S&P BSE Sensex) return of 58.9% during the same period, out-performance of ~20%. Our portfolio approach towards high-quality stocks aided us in outperforming the Sensex with continued success. We continue to trust our philosophy of choosing stocks where the risk reward is favourable and not just the reward aspect. We feel “Quality-21” large-cap portfolio will continue to be aligned to the same philosophy.
Our “Consistent-15” mid-cap portfolio also continues to outperform, delivering 87% (inclusive of dividends) till date (as on November 11, 2014) vis-à-vis the benchmark index (CNX Midcap) return of 57.1%, as we continued to identify fundamentally strong stocks. Some key performers of our portfolio are Sun Pharmaceuticals, Lupin, Tata Consultancy Services (TCS), Tata Motors, Info Edge and Dabur India delivering 97%-190% returns since inception.
We have always suggested the systematic investment plan (SIP) mode of investment and still find a lot of merit in it as the preferred mode of deployment given the market conditions and volatility associated since the inception of the portfolio. It has outperformed other portfolios, thus, reinforcing our belief in a plan of investment. However, now we are also advising clients to look at lump-sum investments at any possible dips.
In the last few years, anxiety stemming from weak economic health and unstable policy environment has resulted in defensive sectors commanding high scarcity premium while debt-ridden cyclicals witnessed a de-rating. However, the recent decisive election verdict has given investors optimism over the overall growth prospects of the economy. Thus, the current rally has totally reversed the penchant for defensives (like information technology (IT), pharmaceuticals and fast-moving consumer goods (FMCG)), which have underperformed in 2014 year-to-date (YTD). On the other hand, old economy sectors, including capital goods, realty, metals, power and oil & gas have been
November 2014
48ICICIdirect Money Manager
EQUITY MODEL PORTFOLIO
topping the charts this year, signifying changing investor preference.
Thus, from a portfolio perspective, we have now leaned forward towards inclusion of stocks with more real economy, domestic discretionary exposure viz. GAIL, JK Cement, Arvind, etc. We have, thus, taken a strategic call of including stocks that possibly have a larger opportunity size either via reforms push or via revival in the discretionary demand from domestic consumers. Thus, we exit Page Industries and Nestlé with minimal returns.
Hence, we have made a significant shift in our portfolio stance to play the recovery cycle. In terms of relative weightage of the sector vis-à-vis the Sensex, we have changed our stance and gone overweight on financials (raising weights of public sector banks), oil & gas, the infrastructure space (cement, infrastructure and power). This has been primarily triggered by the possibility of decisive action in the infrastructure and real economy space by the new government. We have maintained our overweight stance on telecom considering the reducing regulatory hurdles and relatively better earnings growth profile. We are also overweight on sunrise sectors like media via Zee Entertainment.
We have, thus, positioned away from pure play defensives like the pure play mature exporter- IT and the expensive FMCG space. We feel both these sectors may have normalised earnings growth but the sectoral churning would cause them to de-rate on valuation terms.
For other equal weight sectors we are playing consumer discretionary sectors like autos (pent up demand, strong franchises) and the metals and mining space (high infrastructure demand expected), pharmaceuticals (large global generic opportunity yet to be tapped).
On individual names, we are strongly overweight on companies like L&T and UltraTech Cement in the infrastructure space while in public sector banks we like State Bank of India (SBI).
We believe we now have a better balance to our portfolio going into a recovery cycle and possibly a longer-term Bull Run.
November 2014
49ICICIdirect Money Manager
EQUITY MODEL PORTFOLIO
Name of the company
Largecap Stocks
Model Portfolio
Largecap(%)
Midcap(%)
Diversified(%)
November 2014
Consumer Discretionary 10 7
United Spirits 2 1.4
Tata Motors DVR 4 2.8
Bajaj Auto 2 1.4
Titan 2 1.4
BFSI 27 18.9
HDFC 6 4.2
HDFC Bank 6 4.2
SBI 8 5.6
Axis Bank 7 4.9
Power, Infrastructure & Cement 13 9.1
L & T 8 5.6
Ultratech Cement 5 3.5
FMCG 10 7
ITC 10 7
Metals & Mining 4 2.8
NMDC 4 2.8
Oil and Gas 14 9.8
Reliance 11 7.7
Gail 3 2.1
Pharma 5 3.5
Lupin 2 1.4
Sun Pharma 3 2.1
IT 12 8.4
Infosys 3 2.1
TCS 6 4.2
Wipro 3 2.1
Telecom 3 2.1
Bharti Airtel 3 2.1
Media 2 1.4
Zee Entertainment 2 1.4
Largecap share in diversified 70
50ICICIdirect Money Manager
EQUITY MODEL PORTFOLIO
Midcap Stocks
Content source: ICICIdirect.com Research
ICICI Securities Ltd. has been assigned an advisory mandate by Ranbaxy Laboratories Limited with regard to Sun Pharmaceutical Industries Limited's acquisition of Ranbaxy Laboratories Limited. This report is prepared on the basis of publicly available information.
Name of the company Model Portfolio
Largecap(%)
Midcap(%)
Diversified(%)
November 2014
Consumer Discretionary 20 6
Bosch 6 1.8
Cox & Kings 6 1.8
Arvind 8 2.4
IT 6 1.8
Info Edge 6 1.8
BFSI 16 4.8
DCB 8 2.4
IndusInd Bank 8 2.4
FMCG 14 4.2
Kansai Nerolac 8 2.4
Tata Global Beverages 6 1.8
Pharma 6 1.8
Natco Pharma 6 1.8
Media 8 2.4
PVR 8 2.4
Capital Goods 6 1.8
Cummins 6 1.8
Realty/Infrasturcture/Cement 24 7.2
JK Cement 6 1.8
Container Corporation of India 6 1.8
Oberoi Realty 6 1.8
Shree Cement 6 1.8
Midcap share in diversified 30
Total of all three portfolios 100 100 100
51ICICIdirect Money Manager
EQUITY MODEL PORTFOLIO
Performance* so far Since inception
*Returns (in %) as on , 2014
Large-cap Portfolio Benchmark: BSE Sensex; Mid-cap Portfolio
Benchmark: CNX Midcap; Diversified Portfolio Benchmark: Combination
of BSE Sensex and CNX Midcap
November 11
Value of ` 1,00,000 invested via SIP at the end of every month
Portfolio Benchmark
Investment Value of Investment in Portfolio Value if invested in Benchmark
Start date of SIP: June 30, 2011; *Value as on November 11, 2014
November 2014
78.787.0
78.8
58.9 57.1 55.8
0
20
40
60
80
100
Large Cap Midcap Diversified
%
4,2
00,0
00
4,2
00,0
00
4,2
00,0
00
5,9
95,3
39
7,0
60,7
88
6,2
67,5
22
5,7
49,1
77 6,3
02,5
86
4,9
29,2
08
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Largecap Midcap Divesified
52ICICIdirect Money Manager
MUTUAL FUND TOP PICKS
Wth over thousand of mutual fund schemes available in the market, selecting the right ones may become too complex. To make it easy for you, we present our research team’s top recommendations, across equity and debt categories
Mutual Fund Top Picks
November 2014
Equity
Category Top Picks
Largecaps Axis Equity FundBirla Sunlife Frontline equity FundICICI Pru Focussed Bluechip Equity FundUTI Opportunities Fund
Midcaps HDFC Midcap Opportunities FundICICI Prudential Value Discovery FundFranklin India Smaller Companies FundSBI Magnum Global Fund
Diversified Franklin India Prima PlusICICI Prudential Dynamic PlanReliance Equity Opportunities
ELSS Axis Long Term EquityICICI Prudential Tax PlanFranklin India Tax shield
Sector - Banking ICICI Prudential Banking Reliance BankingUTI Banking
53ICICIdirect Money Manager
MUTUAL FUND TOP PICKS
November 2014
Short Term Birla Sunlife Short Term FundHDFC Short Term Opportunities FundICICI Pru Short Term Plan
Credit Opportunities Fund
Birla Sunlife Medium Term PlanFranklin India Short term PlanICICI Prudential Regular Savings
Income Funds ICICI Prudential Dynamic Bond FundBirla Sun Life Income Plus - Regular Plan IDFC Dynamic Bond Fund
Gilts Funds ICICI Pru Gilt Inv. PF PlanBirla Sunlife Gilt Plus
MIP(Aggressive)
Birla Sunlife Savings 5ICICI Prudential MIP 25DSP Blackrock MIP
Debt
Category Top Picks
Liquid Funds HDFC Cash Mgmnt Saving Plan ICIC Pru Liquid PlanReliance Liquid Treasury Plan
Ultra Short Term Birla Sunlife Savings FundFranklin India Ultra Short Term Bond FundICICI Pru Flexible Income Plan
QUIZ TIME
1. When a domestic company pays dividend, it pays dividend distribution tax (DDT) at ______ per cent currently.
2. If an assessee invests in Equity Linked Savings Scheme (ELSS) mutual funds, the investment is eligible for deduction from his taxable income to the extent of Rs. ______ under section 80C.
3. There are no tax-incentives for investment in bank and corporate fixed deposits (FDs). True/ False
4. The interest earned on savings bank account in excess of Rs. ______ p.a. is taxable in the hands of the individual.
5. Expand EET (Hint: It's a taxation regime).
Note: All the answers are in the stories that have appeared in this edition of ICICIdirect Money Manager. You may send in your answers at:moneymanager@icicisecurities.com
The answers will be published in our next edition. The names of the earliest all correct entries will be published too. So jog your grey cells and be quick to send in your entries.
Correct answers for the October 2014 quiz are:
1. Expand UAN (Hint: It would be provided for provident fund (PF) accounts).
A: Universal Account Number
2. Non-equity mutual funds do not invite tax on dividends for unit holders. True/ False.
A: True; the tax on dividend is payable by the mutual fund houses
3. The period for long-term capital gains has been changed from 12 months to 24 months in case of non-equity mutual funds for taxation purpose. True/ False.
A: False; it has been increased to 36 months
4. All Monthly Income Plans (MIPs) are debt-oriented funds. True/ False.
A: True
5. Short-term capital gains are taxed at ______% for equity mutual funds.
A: 15%
Congratulations to the following winners for providing correct answers! Neelakandan Eswaran
54ICICIdirect Money Manager November 2014
55ICICIdirect Money Manager
MONTHLY TRENDS
3.52
2.70
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Sep-14 Oct-14
(%)
91.16
82.20
74.0
76.0
78.0
80.0
82.0
84.0
86.0
88.0
90.0
92.0
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
$ pe
r bar
rel
-157.13
1906.73
201.24
-276.49
-2000
-1500
-1000
-500
0
500
1000
1500
2000
2500
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-OctFII DII
.
WPI INFLATION (FOOD)
(The figures are in %)
CRUDE OIL
NYMEX crude oil prices ($/barrel)
FII & DII INVESTMENTS
(Foreign institutional investors (FIIs) and domestic institutional
investors (DII) net equity investment ( ` in crore)
November 2014
13.1513.30
10.0
11.0
12.0
13.0
14.0
15.0
16.0
17.0
18.0
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
VIX
VOLATILITY INDEX (VIX)
56ICICIdirect Money Manager
MONTHLY TRENDS
26630.51
27865.83
25000
25500
26000
26500
27000
27500
28000
28500
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
7964.80
8322.20
7400
7500
7600
7700
7800
7900
8000
8100
8200
8300
8400
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
DOMESTIC INDICES BSE Sensex
NSE Nifty
4.49%
4.64%
November 2014
17042.90
17390.52
15300
15600
15900
16200
16500
16800
17100
17400
17700
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
GLOBAL INDICES
2.04%
Dow Jones
4493.39
4630.74
4000
4100
4200
4300
4400
4500
4600
4700
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
NASDAQ
3.06%
57ICICIdirect Money Manager
MONTHLY TRENDS
61.93
61.39
60.4
60.6
60.8
61.0
61.2
61.4
61.6
61.8
62.0
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
US
D /
INR
100.39
98.19
96.0
96.5
97.0
97.5
98.0
98.5
99.0
99.5
100.0
100.5
101.0
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
£/
INR
78.22
76.89
76.0
78.0
80.0
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
€/
INR
1208.74
1173.92
1150
1225
1300
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
$ pe
r O
unce
16.94
16.14
15.0
17.0
19.0
30-Sep 5-Oct 10-Oct 15-Oct 20-Oct 25-Oct 30-Oct
$ pe
r Oun
ce
EXCHANGE RATES USD-INR
POUND-INR
EURO-INR
BULLION GOLD
(The prices are in $ per ounce).
SILVER
(The prices are in $ per ounce). (Source for all indicators: Bloomberg, Reuters)
2.19%
0.86%
1.70%
November 2014
58ICICIdirect Money Manager
Premium Education Programmes Schedule
ICICIdirect Centre for Financial Learning (ICFL) imparts quality education on financial markets to beginners and amateurs, student, housewives, working professionals and self employed. ICFL's broad objective is to make participant feel confident to start investing in stock market.
Here is the list of our programmes scheduled for the month of November, 2014.
Schedule for Beginners' programme on Futures and Options (F&O) TradingSr.No
City Dates For More Information & Registration call:
Sr.No
City Dates For More Information & Registration call:
Schedule for Chartered Financial Analyst (CFA) Level 1
November 2014
1 New Delhi Nov 01 and 02, 2014 Vishal on 07838290143, Harneet on 09582158693
2 Kolkata Nov 01 and 02, 2014 Sumit on 08017516187
3 Mumbai-Andheri Nov 08 and 09, 2014 Vidhu on 9619716146
4 Pune Nov 15 and 16, 2014 Kusmakar on 7875442311
5 Thane Nov 15 and 16, 2014 Vidhu on 9619716146
6 Kolkata Nov 15 and 16, 2014 Sumit on 08017516187
7 Bangalore Nov 22 and 23, 2014 Subrata on 9620001478
8 Navi Mumbai Nov 22 and 23, 2014 Manish on 8451057943
9 New Delhi Nov 22 and 23, 2014 Vishal on 07838290143, Harneet on 09582158693
10 Mumbai-Chembur Nov 22 and 23, 2014 Manish on 8451057943
11 Mumbai-Malad Nov 02 and 09, 2014 Vidhu on 9619716146
12 New Delhi Nov 02 and 09, 2014 Vishal on 07838290143, Harneet on 09582158693
Sr.No
City Dates For More Information & Registration call:
Schedule for Chartered Financial Analyst (CFA) Level 1 ( FOR ICICI GROUP EMPLOYESS)
13 New Delhi Nov 02 and 09, 2014 Vishal on 07838290143, Harneet on 09582158693
Sr.No
City Dates For More Information & Registration call:
Schedule for Certified Financial PlannerCM (CFP CM) certification
14 Mumbai-Malad Nov 02 and 09, 2014 Vidhu on 9619716146
15 New Delhi Nov 09 and 16, 2014 Vishal on 07838290143, Harneet on 09582158693
Sr.No
City Dates For More Information & Registration call:
Schedule for Chartered Wealth Manager® (CWM) certification
16 New Delhi Nov 09 and 14, 2014 Vishal on 07838290143, Harneet on 09582158693
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast-Track Programme on Futures & Options (F&O)
17 Ahmedabad 02 Nov, 2014 Yogesh on 8238053563
18 Rajkot 09 Nov, 2014 Yogesh on 8238053563
19 Lucknow 09 Nov, 2014 Harneet on 09582158693
20 Surat 16 Nov, 2014 Yogesh on 8238053563
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast-Track Programme on Stock Investing
21 Bhubaneshwar 02 Nov, 2014 Sumit Sarkar on 8017516187
22 Aurangabad 02 Nov, 2014 Kusmakar on 7875442311
23 Ludhiana 02 Nov, 2014 Vishal on 7838290143
24 Jalandhar 02 Nov, 2014 Vishal on 7838290143
25 Ghaziabad 02 Nov, 2014 Harneet on 09582158693
26 Dehradun 02 Nov, 2014 Harneet on 09582158693
59ICICIdirect Money Manager November 2014
27 Vadodara 16 Nov, 2014 Yogesh on 8238053563
28 Jaipur 16 Nov, 2014 Vishal on 07838290143
29 Jamshedpur 23 Nov, 2014 Sumit Sarkar on 8017516187
30 Dhanbad 23 Nov, 2014 Sumit Sarkar on 8017516187
31 Ajmer 23 Nov, 2014 Harneet on 09582158693
32 Bikaner 23 Nov, 2014 Harneet on 09582158693
33 Guwahati 30 Nov, 2014 Sumit Sarkar on 8017516187
34 Amritsar 30 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast-Track Programme on Technical Analysis
35 Meerut 09 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
36 Ranchi 23 Nov, 2014 Sumit Sarkar on 8017516187
Sr.No
City Dates For More Information & Registration call:
Schedule for MarketMaster Programme
37 Chandigarh 08 and 09 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
38 New Delhi 15 and 16 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
Sr.No
City Dates For More Information & Registration call:
Schedule for Technical Analysis
39 Bangalore 15 and 16 Nov, 2014 Subrata on 9620001478
40 Hyderabad 15 and 16 Nov, 2014 Ruchi on 8297362323
41 New Delhi 15 and 16 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
42 Pune 22 and 23 Nov, 2014 Kusmakar on 7875442311
43 Mumbai-Andheri 22 and 23 Nov, 2014 Vidhu on 9619716146
44 Hyderabad 29 and 30 Nov, 2014 Ruchi on 8297362323
45 Kolkata 29 and 30 Nov, 2014 Sumit on 08017516187
Sr.No
City Dates For More Information & Registration call:
Schedule for Foundation Programme on Stock Investing
46 Pune Nov 01 and 02, 2014 Kusmakar on 7875442311
47 New Delhi Nov 01 and 02, 2014 Vishal on 07838290143, Harneet on 09582158693
48 Kolkata Nov 01 and 02, 2014 Sumit on 08017516187
49 NEw Delhi 08 and 09 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
50 Pune 08 and 09 Nov, 2014 Kusmakar on 7875442311
51 Bangalore 08 and 09 Nov, 2014 Subrata on 9620001478
52 Mumbai-Chembur 08 and 09 Nov, 2014 Manish on 8451057943
53 Thane 08 and 09 Nov, 2014 Vidhu on 9619716146
54 Nagpur 15 and 16 Nov, 2014 KUsmakar on 7875442311
55 Navi Mumbai 15 and 16 Nov, 2014 Manish on 8451057943
56 Mumbai-Andheri 15 and 16 Nov, 2014 Vidhu on 9619716146
57 New Delhi 15 and 16 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
58 Chandigarh 22 and 23 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
59 Mumbai-Andheri 22 and 23 Nov, 2014 Vidhu on 9619716146
60 Hyderabad 22 and 23 Nov, 2014 Ruchi on 8297362323
61 New Delhi 22 and 23 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
62 Pune 29 and 30 Nov, 2014 Kusmakar on 7875442311
63 Mumbai-Andheri 29 and 30 Nov, 2014 Vidhu on 9619716146
Sr.No
City Dates For More Information & Registration call:
Schedule for Advanced Derivatives Trading Strategies
64 Bangalore 29 and 30 Nov, 2014 Subrata on 9620001478
65 New Delhi 29 and 30 Nov, 2014 Vishal on 07838290143, Harneet on 09582158693
Recommended