July 5, 2017 | Geojit Insights 2017 Geojit Insight for BRANCHES.pdfJuly 5, 2017 | Geojit Insights 3 In 2016, many clouds, which threatened to push the global economy into another recessionary

July 5, 2017 | Geojit Insights

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In 2016, many clouds, which threatened to push the global economy into another recessionary phase, appeared on the global economic horizon. The year started with concerns of the Chinese economy crash landing, resulting in what Mor-gan Stanley’s Ruchir Sharma called ‘global recession made in China’. The unexpected Brexit vote was a severe blow to global financial markets. The fears of a Frexit, giving a lethal blow to the Euro Zone leading to its disintegration and the consequent recessionary fallout on the global econ-omy loomed large. Another unexpected development was the victory of Donald Trump, a critic of free trade and strong supporter of protectionism, as the US president. It was feared that anti-globalization trends might gather mo-mentum, adversely impacting global economic growth.

Fortunately, the clouds have started receding. President Trump has been milder than candidate Trump particularly vis-à-vis China. The Border Adjustment Tax, which Trump threatened to impose on Chinese imports, could have led to a trade war with disastrous consequences. It did not hap-pen. Also, President Trump, unlike candidate Trump, is not calling China a currency manipulator. There is a growing realization in the Trump Administration that if the Trump regime is to be successful, his China policy has to be con-structive. So, it goes to the credit of President Trump that he did not do anything to upset the applecart, as candidate Trump threatened to do.

The election of the pro-business, pro-reform centrist Emmanuel Macron as the French president is a hugely im-portant turning point. Had Marine Le Pen won in the French presidential elections, it would have marked the beginning of the end of the Euro Zone. Macron’s reformist agenda is a major morale boost to the European Union. The present indications are that Chancellor Angela Merkel is likely to be re-elected in the coming elections in Germany. That would be good news. This will strengthen the forces of globaliza-tion and contribute to higher global economic growth.

Meanwhile, in India, very serious measures have been initiated to address the bad loan issue. The amendment to the Banking Regulation Act to empower the RBI, the setting up of the Oversight Committee and the recent declaration of the 12 major NPA accounts for resolution are bold and

serious initiatives to address the NPA problem, which has turned out to be the biggest constraint on capex recovery. Finally, the mother of all tax reforms – the GST – is going to be a reality. There will be some teething troubles and disruptions for some time, but the long-term benefit of this major reform will be quite substantial. There are reforms happening in other areas too. SEBI’s recent decisions like permitting options trading in commodities, strengthening the monitoring of utilization of IPO proceeds, prohibiting resident Indians and NRIs from investing in participatory notes etc. are all laudable decisions. There are some dis-turbing trends too. The spate of farm loan write offs, which started in UP, and followed up by Maharashtra and Punjab, have the potential to derail State’s finances and ultimately impact the fisc.

The RBI continued with its neutral stance in monetary poli-cy. Inflation figures (CPI inflation in May is 2.18 percent) have been under shooting RBI’s estimates. This trend is likely to continue. There are many experts, including a member of the MPC, who feel that RBI is behind the curve and there is room for a more accommodative stance and a rate cut. Meanwhile, the FED as expected raised the Fed rate by 25 bp. Present indications are that one more 25 bp hike can be expected this year taking the total rate hikes to three, which indicates slow and shallow normalization. In brief, the Fed is sticking to its broad guidance of normaliza-tion over the next two years. The Fed also laid out plans for shrinking its balance sheet but offered no details of its timing. Broadly, the emerging scenario indicates gradual global recovery, which is positive for markets.

Dr. V . K. Vijayakumar Executive Editor

Some Dark Clouds Receding

|EXECUTIVE EDITOR’S NOTE|


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|CONTENTS| |CONTENTS|

Cover Story The significance of economic and market cycles

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VIEWS 06. Equity market is under mild

consolidation Vinod Nair

10. Who stole my volatility?

Anand James

20. Stock Recommendations ITC Limited, Bank of Baroda, Titan

Company, KRN Constructions Limited

22. GST- after the rates are unbundled

Anil R

26. For money and muscle

Vijayananda Prabhu

28. Retirement Planning

Dr. V. K. Vijayakumar

43. Fund Focus HDFC Balanced Fund (G), Motilal Oswal

MOSt Focused 25 Fund, Invesco India Con tra Fund(G), ICICI Pru Dynamic Plan(G), Kotak Emerging Equity Scheme(G)

PERSONAL FINANCE 16. IQ Corner - Derivatives

24. Selfie—Markets in Pockets

GUEST COLUMN

08. All factors are positive for the long

term growth of the markets

Mrinal Singh, Deputy CIO- ICICI

Prudential Mutual Fund

14. Smart Talk

Sonam Udasi, Fund Manager, Tata Asset Management

INVESTOR GYAN

31. Equity Fund Recommendations

33. Debt Fund Recommendations

35. Funds in the limelight

39. SIP Focus

41. Model Portfolio


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Mail Box

Views and opinions expressed in the magazine are not necessarily those of Geojit Insights, its publisher and / or editors. We (at Geojit Insights) do our best to verify the information published, but do not take any responsibility for the absolute accuracy of the information. Geojit Insights does not accept responsibility for any investment or other decision taken by readers on the basis of information provided herein.

Printed & Published by: C J George, Director, Geojit Investment Services Limited 34/659- P, Civil Line Road, Padivattom Kochi - 682 024, Kerala, India Owned by: Geojit Investment Services Limited 34/659- P, Civil Line Road, Padivattom Kochi - 682 024, Kerala, India Printed at: St. Francis Press, St. Benedict Road, Kacheripady, Ernakulam, Kerala-682018 Published at: Geojit Investment Services Limited 34/659- P, Civil Line Road, Padivattom Kochi - 682 024, Kerala, India Editor: C J George, Director, Geojit Investment Services Limited , 34/659- P, Civil Line Road, Padivattom Kochi - 682 024, Kerala, India Phone: + 91 484 2901000 Website: www.geojit.com Email: [email protected] Corporate Identity Number: U52599KL1995PLC008606 Geojit Investment Services Ltd. Is a wholly owned subsidiary of Geojit Financial Services Ltd., (formerly known as Geojit BNP Paribas Financial Services Ltd.) Total Number of Pages: 52 pages (including cover)

Geojit Team: Executive Editor: Dr. V. K. Vijayakumar Features: Vinod Nair, Head Research Anand James, Chief Market Strategist Rajesh Nair, Market Strategist Fundamental Research: Antu Eapen Thomas, Thomas V Abraham, Anil R Investment Advisory: Jeevan Kumar K C, Vijayasri Kaimal, Vijayananda Prabhu, Ranjith V M Copy desk: Elizabeth V, Sankar Ramachandran, Jyothi Radhakrishnan Art Designers: Sajan Jose, Anoop Mathew, Ashik Basheer, A R Joseph Registered Office: 34/659 - P, Civil Line Road, Padivattom, Kochi - 682024, Kerala, India.

Vol.: 01 | Issue:06 | July 05, 2017

Will the GST implementation favour some sectors over the other? Yes. There will be winners and losers. Broadly, the winners are con-sumption, logistics, home construction materials and industrial manu-facturing. In these sectors also, some segments will lose. Within con-sumption, the winners are FMCG and automobiles and the losers are consumer durables. FMCGs like soap, toothpaste, hair oil etc. will ben-efit from lower taxes. Non-branded food items too will benefit. Passen-ger vehicles will see reduction in taxes under GST. SUVs and larger cars will benefit the most. The premium cars/ utility vehicle segment will enjoy a reduction in the total tax incidence. Sectors such as two wheelers, three wheelers and tractors will have minimum impact. Durables like refrigerators, washing machines and air conditioners will experience higher tax rates and therefore, their prices will go up.

O M Abhilash, Alapuzha

Will the GST roll out see dislocations and confusion affect some particular sectors? If so which are they? Some dislocations and confusion are likely. It is difficult to predict which sectors will experience confusion. Some segments like vehicle leasing are fraught with some confusion and they have approached the government for clarity.

Arun Andicot, Kaloor If the market were to correct at this juncture, how steep will that correction be based on past history? GST related disruption could be a trigger for correction. It would be difficult to quantify that. Corrections are likely to be bought into by the huge liquidity flowing into the market. A major correction, if at all it happens, is likely to come from a global trigger. It is quite likely that such a global trigger will come from a presently unknown factor or event.

Joseph Alexander, Bangalore

MAIL BOX:

Letters must be addressed to:

The Editor, Geojit Insights, 34/659 -P, Civil Line Road, Padivattom, Kochi-682024, Kerala, India,

or

[email protected]

Submissions should include the writer's name and address.


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|FEATURES|

Equity Market Is Under Mild Consolidation

R ecently, mid and small cap indexes had a mild correction of about 6% to 8%. The main trigger was the finalisation of GST rates. Rates for some sectors and products were higher than expected.

This brought in risks like product price hikes and competi-tion related factors. Now, mid caps have broadly reversed to all time highs, assuming that the impact will be limited to a few set of products only while profitability will be sus-tained with long-term gains.

At that time no impact was seen in large caps since the rates were largely neutral in their respective businesses. Recently, some volatility was seen post the RBI policy deci-sion on 7th June where RBI maintained its neutral stance while the market was expecting a change to accommoda-tive stance, if not a rate cut. Historic and futuristic inflation data were tempting RBI to lower its inflation estimates which they have done. Economic data were pressing for a

support to the domestic economy post the slowdown led by demonetisation. But, the RBI continued with a hawkish view.

RBI may be concerned about factors which are beyond data points, like the NPA issue on which RBI is working currently. The risk of this matter is that it is very humong-ous which could impact the profitability and capital of the banking industry. And to resolve this issue effectively, banks will have to take a huge hair cut, which could be a point of concern. Secondly, a new issue has come up re-garding the agriculture loan waivers by some states. It may be a well needed requirement for small farmers, but its fiscal implications are a matter of concern. Fiscal situation of some states will deteriorate and the credit culture will be impacted. Thirdly, RBI has a view that inflation will start to inch higher as the decline in vegetable prices will be short lived. So RBI will wait till all these factors stabilize over the

VINOD NAIR


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next one to two quarters.

During June, domestic market was also impacted by global factors post the election outcome in UK, geopolitical risks in Middle East and US FED rate hike. The outcome of UK elec-tion has not impacted the EMs but some deglobalization trends are disturbing. Change in the US policies relating to IT and Pharma has downgraded the outlook for these sec-tors. IT and pharma sectors are down by 10% and 12% in

the last one year. Recently, Pharma index has been outper-forming due to value buying in some select stocks and ex-pectations of increased R&D spending in the future. But please note that consensus of pharma analysts suggest a dip in profitability for FY18.

Many market experts feel that GST implementation could lead to some correction in the market. A correction may

happen during the implementation of GST as many busi-nesses (formal and informal) have a cautious view given lack of preparedness and knowledge. Some industries have a view that they need some more time to understand and implement this new system while some have a view that rates are higher. The true impact will be known only when the new procedure starts. It could have some hiccups in the supply chain, changes in inventory/revenue and inflationary

impact. And this could lead to volatility in quarterly results and disturb the trajectory of future earnings which is antici-pated to expand from FY18. The flaw in this correction ex-pectation is that, it is well known; it is only short-term dis-ruption and has improved outlook in the long-term with an anti-inflationary agenda to the retail index (CPI). Hence it is unlikely to meaningfully impact the listed entities.

6months Performance (as on 19th June)

Investors are a bit cautious given the markets’ strong performance in

the last one year while financial results have been below par. Some

are under profit booking mode and waiting for some correction in the

market. But market appears determined and has been closing at new

highs on a continuous basis. There is some volatility in mid and small

caps, but liquidity is strong and business outlook is solid except for

IT, Pharma and Telecom.


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|GUEST COLUMN|

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All factors are posterm growth o

T he Indian equity markets have been scaling new highs, over the past few months, owing to the positive local and global factors coupled with in-creased retail investor interest in the capital mar-

kets. And the good news here is that these investors are coming through the SIP route. From a global context, India stands out for three reasons –stable macros, prudent fiscal and monetary policies, and gradual but steady pace of re-forms. With the implementation of Goods and Services Tax (GST), there is huge expectation of the tax base increasing and a larger part of the economy coming under taxation. While the markets are headed north, there is frenzied activi-ty visible in several pockets. But what investors should re-member in the current market condition is that a good in-vestment decision depends on striking a right balance be-tween greed and fear. Remember what Warren Buffett, one of the world’s greatest investor said, “Be fearful when others are greedy and greedy when others are fearful.”

In the current market environment, the one question every-one is trying to second-guess remains - Are there more legs to the current rally? The genesis of this question stems from the fact that markets appear expensive on valuation basis. On a price-to-earnings basis, the market is expensive while on a price-to-book and market cap to GDP basis, the market is tad above fair value. The Earnings Factor The current rally has come in even before the corporate earnings revival started. Going forward, the earnings of cor-porate India is likely to improve and consequently price-to-earnings ratio will be at a higher level than its long-term average. However, when stocks are trading at 40 to 60 times earnings, the growth in the immediate years is not that im-portant. What matters more at that stage is whether the company can sustain such high earnings growth for an ex-tended period.

From a global context, India stands out for threemonetary policies, and gradual b

Mrinal Singh Deputy CIO, ICICI Prudential Mutual Fund


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ositive for the long of the markets

We understand that many large companies have spare capaci-ties which are yet to be utilized. This can enhance tremendous operating leverage in the economy, without incurring much capital expenditure in the immediate term. The Return on Equity (RoE) is at the lowest levels in decades at single digit and we strongly believe this can only rise from current levels. In addition, reforms like Goods and Service Tax (GST) may result in positive gains going forward. Realign In the light of the recent rally, it is very likely that the overall portfolio valuation has ballooned. However, one should recall that no asset class is designed to move in one specific direc-tion. With equity markets heading north, it is very likely that

markets may turn volatile, catching many of the investors off-guard. It is often noticed that as markets edge higher, inves-tors tend to become greedy expecting further gains and as a result stay off, instead of rebalancing one’s portfolio. We be-lieve it is time to take a look at one’s portfolio to check if one’s asset allocation has been disturbed. For those investors who are looking to deploy fresh cash, we believe, that volatility suite of products, especially the ones based on dynamic asset allocation strategy, will be best suited in the current market environment. Dynamic asset allocation funds allow an investor to take exposure to both debt and equity, based on relative attractiveness of debt and equity. The markets have mostly factored in this year’s earnings growth. Hence, from the short-term perspective, market valua-tions may appear expensive. However, for long term investors, these are better times to remain invested, as Indian economic growth soars to robust 7 percent plus, making India the fastest growing emerging market globally, while, widespread political mandate give wings for bold economic reforms, setting the stage right for good times in Indian equity markets.

” ree reasons –stable macros, prudent fiscal and al but steady pace of reforms.



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|FEATURES|

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WHO STO ANAND JAMES

“Bullish on markets? Yes sir

But why? GST… Stable government… you know…

Index at 50,000? No problem, sir. “

Sounds ominous? Seasoned traders sound alarm bells, when they see too much optimism.

So, is it time to sell? Or is it telling us something else? Let us investigate.


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OLE MY

While there is no dearth of lofty targets trumpeted about by analysts and common man alike, a parallel market, by way of the futures and options segment traded on the same platform, bets daily on the same, albeit in a different way. Why their bets assume importance is that it attracts a stream of investors that is by and large different from the regular stock investor. And that would mean that expecta-tions of a stock investor are vetted regularly by the F&O segment.

F&O trading differentiates itself from stock investment along these lines.

1. Amount required for investment for an F&O trader is

lesser than that required for the same stock in the cash segment, as only a margin amount is required for the F&O segment.

2. Lower margin attracts more money, which means a higher amount than usual, is at stake. Hence, risk is on the higher side, especially as F&O have a prede-fined expiry date.

3. Higher risk perception in turn means higher volatility.

Such interplay of risk, volatility, and short trading horizon shows itself in the market in peculiar ways.

1. Premium/Discount or Contango/Backwardation 2. Implied volatility (IV)



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Contango is a situation in which the cash price is at a discount to the future price. This concept is usually relevant for commod-ities, where the cost of the commodity at a future date is priced higher because of costs like warehousing, insurance etc. making its future trade at a premium to the commodity’s spot. In equity market, we can relate to it by observing that the incidence of opportunity cost makes the equity future trade at premium. However, in commodities too, there are exceptions, when con-tango is reversed (backwardation) in case of short shelf life or other reasons. In other words, a commodity goes into back-wardation and the commodity will be in higher priced than its future, if the traders are more interested in acquiring it now rather than later. So, when equity markets turn into backwarda-tion, it could also be because, traders perceive that the price gain is to happen now, rather than later. This explains the trend lately seen in stocks listed in the F&O segment in NSE, where in 15 % of the futures are already in backwardation, while for the rest of the futures, a majority are trading at a premium near 0.5, with only a very few near 1. Nifty’s premium which was earlier in the range of 20-30 has now narrowed to 5-10, while

Bank Nifty has shifted from a premium of 50-100 to a discount of 85-100 pointing at backwardation. This suggests that gener-ally, investors perceive that an uptrend is strong and that it is happening now.

The second trend that is visible from F&O segment is that of implied volatility, especially of the key indices, Nifty and Bank Nifty. Usually, IV declines when the expectation is bullish, and vice versa. IV of ATM (at the money options) plotted for the last 10 years show that IV for both Nifty as well as Bank Nifty has

slipped below historic lows. This suggests that investors are much more positive, certain, and comfortable about upside expectations than they were during the previous major rallies, be it in 2004-2007 or 2014-2015.

So, both the backwardation as well as IV is pointing towards stronger investor confidence in continuation of uptrend.

So, who stands to lose?

By and large the investors are much more assured about a trending and northbound market. This has already resulted in a steady stream of inflows and is highly likely to continue. While this keeps stocks buoyant, it also ensures that falls are less sharp and uncertain periods are brief. The direct fallout of this would be reduced opportunities for a section of traders. The day traders or those who ride on waves of volatility, taking both sides of the swings, or those looking for arbitrate opportunities will now be at a disadvantage. History tells us that incidences of volatility are like waves. They recede, leaving us serene, and we keep getting surprised when they return. Just like a storm fol-

lows a lull period, volatility is sure to return. But this time, with liquidity dynamics different, such incidences of volatility are less likely to disturb the long term picture, but pockets of volatility, may just look different. In terms of size, longevity and timing. A new market order, perhaps.

Surfers’ wait for the waves will not be long, but the ships can continue sailing.


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|SMART TALK|

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Sonam Udasi

”

Low valuation is just the starting point of our zeroing

in process. Along with lower valuation, credence is also

given to sustainability of business model, long term

profitability trends and liquidity, among others.

S onam Udasi, has 19 years of his expertise in Equi-

ties Research. Since 2016, he is the Fund Manager

for many of the equity schemes at Tata Asset

Management.

One of the funds managed by Sonam Udasi is Tata Equity PE fund, the investment objective of which is to provide reason-able and regular income along with possible capital apprecia-

tion to its unit holder. 70% to 100% investment in Equity & Equity related – Companies whose rolling P/E at the time of investment is lower than the rolling P/E of the BSE SENSEX and up to 30% in other equities or in debt instruments.

Tata Equity PE fund is the best performing fund in the flexi cap category and is recommended by Geojit.

Sonam Udasi talks to Geojit Insights about the performance of the fund, GST and the market trends.

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The fund seeks capital appreciation by investing up to 70 % of the portfolio in value stocks, which have lower Rolling PE multiple compared to the bench-mark. The market is scaling new heights and the stock valuations are rich. How will this strategy influence a new customer as well as an existing customer?

The Tata Equity P/E Fund will complete its 13th year this month end. In this long time frame, the Fund has encoun-tered ups like high growth tenure during UPA 1 govern-ment and downs like global macro events (the 2008 global economic crisis). Despite this, the Fund has managed to deliver a superior return over this long time frame. This fact itself is a testimony to its value philosophy and invest-ment strategy. The good thing about this fund is its eagle like focus on “value” at all times, so whether it’s an existing investor or a new investor, both participate in this strategy.

The valuations of mid caps and small caps which holds 46% of the equity portfolio of the fund are currently higher. How does this impact the perfor-mance of the fund in medium term as well as on a long term perspective?

This Fund consistently aims to have a multicap approach. We strive that at least 50% of the portfolio is invested in large caps. Even within midcaps we give preference to liquidity. We believe that India is a growth economy and thus, barring short term variations, the emerging sectors and companies are likely to create superior wealth, aiding long term fund performance.

As your portfolios have a considerable allocation to PSU stocks especially in the energy sector, what is your view on these sectors and PSUs?

Within energy sector, we like the power distribution and transmission space for its predictability and are thus, over-weight on it. With Oil & Gas space, currently we prefer the gas based themes and the upstream sector. We are under-weight in the refining and marketing segment currently.

How will GST affect the current portfolio of your fund?

GST is likely to create short term supply chain disruptions particularly, in the B2C space. But it will create opportuni-ties for the retail chains as well as branded players. The portfolio is positioned accordingly.

In the current market scenario, what is your strate-gy on picking the value stocks as more inflow is coming into mutual funds?

Low valuation is just the starting point of our zeroing in process. Along with lower valuation, credence is also given to sustainability of business model, long term profitability trends and liquidity, among others. Tata Equity P/E Fund

strategy continues to be oriented towards “value” but with clear focus on sustainable business models.

What is your outlook on Banking and Finance, Ener-gy and Automobile from the long term perspective as the fund has more than 57% of its equity portfo-lio exposure towards these sectors?

For a growth hungry economy like India, BFSI sector is an essential raw material, which has good long term potential. Financialsation of savings has just started and is likely to grow much further over the next few years. Also, one should keep in mind that the benchmark indices like Nifty and Sensex have over 30% weight allocated to this sector. As the Indian per capita income continues to inch up, the consumption levels in auto and energy will continue to rise in tandem.

As per you analysis, which sectors should the inves-tors concentrate in the near future ? India is such a large and diverse economy that to focus on any one sector or theme is a bit myopic. That said, inves-tors should be constructive on BFSI, consumption, public capex oriented sectors and agriculture space. Will the Middle East unrest have any near term im-pact on crude prices? Will it be a considerable shock? The Middle East unrest normally causes volatility in the crude oil prices. So far, this has not materialized. For India, oil prices are the key focus area. If that does not go up alarmingly, we should be fine. In terms of mounting worries on NPAs which indi-cates continued pain in the balance sheets, what impact do you foresee on your portfolio and what precautions do you have in place to counter them? The Tata Equity P/E Fund is quite underweight in the bank-ing PSU space and corporate banks, so to that extent the risk is mitigated. Also, within other sectors, we prefer to invest in companies which have healthy balance sheets and are less leveraged. IT and banking seems to act in opposite directions. What is the long term prospect for these sectors? Can India retain the spice?

I have earlier talked about the Banking sector related op-portunity, indicating our preference for the sector. For IT, while valuations are comfortable, growth prospects are challenging in the near term. The Tata Equity P/E Fund is currently underweight on the IT sector.


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What are derivatives? Derivatives, such as futures or options, are financial con-tracts which derive their value from a spot price, which is called the “underlying”. The term “contracts” is often ap-plied to denote the specific traded instrument, whether it is a derivative contract in commodities, gold or equity shares. World over, derivatives are a key part of the financial sys-tem. The most important contract types are futures and options, and the most important underlying markets are equity, treasury bills, commodities, foreign exchange, real estate etc.

What is a forward contract? In a forward contract, two parties agree to do a trade at some future date, at a stated price and quantity. No money changes hands at the time the deal is signed. What is a futures contract? Futures markets are exactly like forward markets in terms of basic economics. However, contracts are standardized and trading is centralized (on a stock exchange). There is no counterparty in futures markets, unlike in forward mar-kets, increasing the time to expiration does not increase the counter party risk. Futures markets are highly liquid as compared to the forward markets.

What are various types of derivative instruments traded at Exchanges? There are two types of derivatives instruments traded on Exchanges; namely Futures and Options: Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the fu-ture at a certain price. Options: An Option is a contract which gives the right, but not an obligation, to buy or sell the underlying at a stated date and at a stated price. While a buyer of an option pays the premium and buys the right to exercise his option, the writer of an option is the one who receives the option pre-mium and therefore obliged to sell/buy the asset if the buyer exercises it on him. Options are of two types - Calls and Puts options: “Calls” give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. “Puts” give the buyer the right, but not the obligation to

sell a given quantity of underlying asset at a given price on or before a given future date. All options contracts are settled in cash. What are various products available for trading in Futures and Options? Futures and options contracts are traded on Indices and on Single stocks.

Why Should I trade in derivatives? Futures trading will be of interest to those who wish to:

1) Invest - take a view on the market and buy or sell accordingly. 2) Price Risk Transfer- Hedging - Hedging is buying and selling futures contracts to offset the risks of changing underlying market prices. Thus it helps in reducing the risk associated with exposures in underlying market by taking a counter- position in the futures market 3) Leverage- Since the investor is required to pay a small fraction of the value of the total contract as margins, trading in Futures is a leveraged activity since the inves-tor is able to control the total value of the contract with a relatively small amount of margin.

Thus the Leverage enables the traders to make a larger profit (or loss) with a comparatively small amount of capi-tal.

Options trading will be of interest to those who wish to:

1) Participate in the market without trading or holding a large quantity of stock. 2) Protect their portfolio by paying small premium amount.

Benefits of trading in Futures and Options:

1) Able to transfer the risk to the person who is willing to accept them 2) Incentive to make profits with minimal amount of risk capital 3) Lower transaction costs 4) Provides liquidity, enables price discovery in underly-ing market 5) Derivative markets are lead economic indicators

|IQ CORNER|


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|COVER STORY|

18 DR. V K VIJAYAKUMAR

The significance of economic & market cycles

E conomic activity is not linear; it is cyclical. Econom-ic/business cycles are periodic expansions and contractions of economic activity. Thus, there will be periods of expansion of output, employment

and prices followed by periods of contraction of output, employment and price level. The cycles of expansions are characterized by business optimism and expanding busi-ness profitability. Conversely, cycles of contraction are characterized by business pessimism and declining or stag-nating business profitability. Markets anticipate these fluc-tuations and move ahead. Markets start moving up ahead of a boom phase and continue to expand during the boom phase finally declining sharply or crashing anticipating a sharp slow down or recession. Similarly, markets anticipate a recovery and boom and start moving up much ahead of actual economic recovery. From investors’ perspective, the turning points in the business cycles are hugely important. Investors who can anticipate the cyclical swings ahead of the market can make a fortune.

The long cycles

Let us try to get a broad but brief perspective of the cycles in India. In the first three decades following independence - 1950s, 60s and 70s - economic growth was very slow in India. The economy grew only by an average of 3.5 per-cent annually during this period. Private corporate sector was relatively very small and corporate profitability was low. License-Permit-Quota Raj and irrational taxation con-strained the corporate sector and business profitability. The stock market was very shallow and market returns were

less than the inflation rate. The picture started changing in the 1980s when India had the initial dose of liberalization and the economy moved to a higher growth trajectory of 5.6 percent a year. This decade witnessed stock market returns beating inflation and returns from comparable asset classes. In the early 1990s liberalization, privatization and globalization shifted the economic and business para-digm in India. GDP growth averaged 6.5 percent during the 25 year period 1991-2016. This sustained high growth in GDP during the 25 years following the liberalization of 1991 also led to the impressive growth of the Indian corporate sector. Corporate profitability increased many fold. The net profit of the corporate sector rose from Rs 6400 crores in 1991 to above Rs 4 lakh crores by 2017. The stock mar-ket indices reflected this profitability gains: the Sensex moved up from around 1000 in 1991 to above 31000 pres-ently.

The boom and bear phases

Within these long cycles, the markets went through short periods of sharp upswings and downswings, particularly since 1991. Since 1991 we had seven bull markets and six bear markets of varying time periods and intensity. The bull market of 1991-92 witnessed 260 percent appreciation in one year. During the long bull market of 2003-07 the index rose impressively from around 2500 to 21000 giving a return of 600 percent in around 55 months. The bull phase from 2012 to 2015 also gave impressive returns.

The bear phases were also sharp and swift. The 1992-93 crash witnessed a correction of 56 percent. The tech bub-



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ble burst of 2000 led to a bear phase, which lasted 3 years, up to 2003. The global financial melt down of 2008, un-doubtedly the worst in recent history, shaved of 63 percent from the Indian markets in 14 months. Some periods were characterized, not by crashes, but by prolonged phase of stagnation and drift. This happened during September 1994 to November 1998 during which the indices moved only sideways and drifted.

Within these major and longish economic and mar-ket cycles there were short bouts of sharp upswings and downswings. But, the important take away is that, over the long run, the economy moves to high-er growth trajectory and the markets move to high-er levels. Since 1991 India’s GDP rose 10 times and the market (Sensex) multiplied 31 times.

The future too will be characterized by economic and mar-ket cycles. Looking ahead into the future one can safely predict that India is likely to be one of the fastest growing economies in the World, most likely the fastest growing large economy, for many years to come. NITI Ayog has projected that India would be a $ 10 trillion economy by 2030. Many global think tanks share this view. This is a distinct possibility, given India’s favorable demographics, the low base of very low per capita income and sound macro fundamentals. By 2030 the Sensex and Nifty would have crossed many milestones, like they did in the past. Long-term investors should have this big picture in mind when they invest.

The movement of the Sensex, from 100 in 1979 to above 31000 now, has been dramatic and fascinating. From the perspective of investors, the most important take away is that market dips provided great buying opportunities. Par-ticularly, buying at the market trough, when the economy is on the cusp of a recovery, had been hugely rewarding experiences. But it is difficult to buy at the trough. The second best option is to buy systematically.

India on the cusp of a cyclical recovery

Presently, India is on the cusp of a cyclical recovery. Dur-

ing the last three years growth has been modest and cor-porate profitability almost stagnant. Even though the growth numbers were good, the economy lacked vigor. Sluggish demand impacted corporate top and bottom lines. Many factors contributed to this sluggish growth phase. The tight monetary policy following the high inflation of 2013-14, the tight fiscal policy for containing the fiscal deficit, declining exports following the contraction in inter-national trade and very recently, demonetization, impacted growth. Ratio of corporate profits to GDP touched a low of 4 percent, declining from the historical average of 5.6 per-cent. Now the tide is turning. The RBI is providing monetary stimulus and the government is providing fiscal stimulus. Inflation is at record low levels and interest rates have declined sharply. The govern-ment is spending heavily on infrastructure. Exports have turned, growing continuously for seven months in a row.

India’s ‘twin balance sheet problem – high stressed assets of the banking system and the highly leveraged companies - is an area of concern. But the recent initiatives to address this issue can be expected to yield results. Once capacity utilization in the economy improves, private capex will pick up. This will be a key turning point. The market is antici-pating this.

We are in a mid- cycle

The market trough was in 2013. Presently, we are in a mid cycle. No one can correctly predict how long this cycle will last and when it will turn down. We believe that this cycle has a long way to go. Even when it turns, that will be a temporary down turn, before the resumption of the secular bull market driven by the India Growth Story. As the saying goes, “the best time to invest in the market was yesterday; the second best is today.” Investors should continue to remain invested in quality stocks and good mutual funds and persist with systematic investment while being cau-tious of the valuations in some pockets of mid and small caps.

By 2030 the Sensex and Nifty would have crossed many milestones, like they did in the past. Long-term investors should have this big picture in mind when they invest.


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Rating: BUY Rating: BUY

ITC is a diversified conglomerate, present across categories– cigarettes, other FMCG, hotels, paper & agri-business. ITC is a market leader in the Indian cigarettes industry with volume market share of ~75%. Cigarettes business contributes ~50% of revenues for ITC, while the Company is re-positioning itself as one of the fastest growing FMCG business in the country. ITC’s net sales grew by healthy 14% YoY driven. Cigarette revenue registered a growth of 4.8% YoY in Q4FY17 led by realisation growth on account of price hikes undertaken by ITC. Non-cigarette FMCG business grew by 6.5% YoY, while the rising input costs coupled with gestation costs on new categories (juices & dairy) & heavy discounting in Apparel negatively impacted its profitability. EBITDA margin witnessed a decline of 212bps YoY to 34.8% in Q4FY17 due to sluggish performance of other FMCG (EBIT Margin at 1.9% vs 2.9% in Q4FY16) & Agri businesses (margin down 239bps YoY). Apprehension over the GST rates has been an overhang on ITC. GST rate on tobacco is largely neutral and augurs well for cigarette volumes. Uniform tax under GST also removes the ambiguity of different levels of duties and rates currently levied by various states on cigarettes. The excise duty and VAT on cigarettes have gone up cumulatively by 131% and 157%, respectively over the past five years. This has been hurting the cigarette volumes. ITC commands complete pric-ing power in the cigarette segment with its leadership in the Indian cigarette industry and has helped in overcoming the volume pressures through frequent price hikes. The neutral GST rate for cigarette augurs well for volume growth of the category and hence we expect this segment to grow at reve-nue CAGR of ~8.7% over FY17-19E. ITC has been aggressively building its FMCG business in re-cent times. ITC now enjoys strong presence in foods portfo-lio, with strong brands like Sunfeast, Aashirvaad, and Yippee. ITC has also ventured into dairy products with the launch of Aashirvaad Svasti cow ghee, luxury chocolates under Fabelle and dairy whitener segment under Sunfresh. We believe it would continue to leverage the brand equity of its prominent brands by driving line extensions. ITC has an edge over other FMCG players led by its established distribution network of cigarettes. Going ahead, we expect this segment to report a CAGR of 16% over FY17-19E led by upturn in consumer de-mand. Given its leadership position in cigarette category, continuous investment behind brand building & innovations in Other FMCG business, we maintain positive stance on the stock. Revenue and PAT are expected to witness a CAGR of 13.6%/15.4% over FY17-19E. Further, we are estimating overall EBITDA margin to expand from 36.4% in FY17 to 37.5% in FY19E led by better profitability in cigarette seg-ment. We currently have a ‘BUY’ rating on the stock with a Target Price of Rs336 based on 30x FY19E P/E.

BOB is one of India’s largest banks with strong domestic presence spanning across 5,422 branches. The branch net-work is well distributed with 33% coverage in Rural, 28% in Semi-urban, 22% Metro and 17% Urban. The bank also has significant international presence with a network of 106 branches across 25 countries. BoB has been undergoing a business transformation, where-by it is re-aligning its loan book towards better yielding prod-ucts with an optimal risk profile. Total loan growth remained almost flat YoY in FY17 as the bank decided to consolidate its balance sheet. While international loan book (28% of loan book) contracted by 12% YoY, domestic loans grew 5% YoY mainly driven by 14% YoY growth in retail loans. The bank continues to reduce its concentration on large industries thereby loans to large & medium corporates declined by 4% YoY. CASA ratio has improved by 580 bps to 32.2% support-ed by demonetization in FY17. Net interest income (NII) increased at a moderate pace of 6% YoY on account of 14 bps YoY improvement in net inter-est margin (NIM) to 2.7% in FY17. We expect NIM to remain stable around 2.8% over FY17-19E on the back of relatively lower interest reversals coupled with re-allocation of the loan portfolio towards higher yielding loans. The bank reported a net profit of Rs1383cr as against loss in FY16. Going forward, we expect net profit to increase at a CAGR of 65% (albeit on a lower base) over FY17-19E led by improvement in margins coupled with lower operating expenses and provisions. BOB reported 1.4% QoQ decline in addition of gross non-performing assets in Q4FY17. While slippages were marginal-ly lower sequentially, the asset quality ratios of the bank improved significantly on the back of higher QoQ business growth. Hence, Gross/Net non-performing assets (NPAs) of the bank improved by 94/71 bps QoQ to 10.5%/4.7%. Near-ly 55% of slippages resulted from restructured loans, with about half coming from corporate accounts and the rest largely from MSME and agriculture loans. Further, the bank continued to provide aggressively against stressed assets. As a result, provision coverage ratio (PCR) improved by 674 bps YoY to 66.8% in FY17. We expect asset quality to improve gradually and Gross/Net NPA ratios to decline to 6.9%/3.0% by FY19. Going forward, we expect advances to grow at a healthy pace of 11% CAGR over FY17-19E mainly led by retail and agri loan books. Though we expect consolidation in the loan book to continue for the next couple of quarters, we continue to like the bank owing to its better capital position, able man-agement and higher provision coverage ratio. Further, gradu-al improvement in asset quality will lead to better profitabil-ity. As a result, we expect the RoA and RoE to improve to 0.5% and 8%, respectively by FY19E. Hence, we have a BUY rating with a TP of Rs200 valuing the bank at 1.4x FY19E P/ABV.

Analyst: Rohit Joshi, Dion Global Solutions Ltd

INH100002771 Analyst: Kaushal Kanubhai Patel, Dion Global Solutions Ltd INH100002771


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Rating: BUY Rating: REDUCE

Titan Company Limited (Titan), a Tata Group company, is India’s leading watch, jewellery and eyewear retailer. Currently, Titan has 1366 stores with over 1.8 million sq ft of retail space. Titan is well placed to drive growth in jewellery given 1) 5-10% discount on making charges and ethnic designs in wedding jewellery 2) sustained focus on designing 3) market share gains due to Hall-marking, Pan-card requirement and Rs0.2mn cash purchase limit. During Q4FY17, Titan posted stellar revenue growth of ~43% YoY driven by robust growth in jewellery segment. Sales from jewellery segment (contributes ~80% to revenues), grew by strong 55% YoY although on a low base due in Q4FY16. In-creased promotions in the jewellery segment post demonetisation & an attractive exchange programme aided the jewellery business (volumes up 37% YoY). The watch business witnessed a healthy growth of ~11% YoY mainly led by 15% YoY growth (12% YoY in volume terms) in domestic business. Overall EBITDA rose 30% YoY in Q4FY17 but margin dropped ~80bps YoY to 7.9% due to gross margin contraction (down 424bps YoY). EBIT margin of jewellery segment was down 139bps YoY at 9.9% impacted by higher ad spends. However, EBIT margin of watches segment improved by 71bps YoY to 2.4% due to improved product mix of Titan and Fastrack. Adj PAT increased by only 8.6% YoY mainly due to higher tax outgo (effective tax rate at 24.5% in Q4FY17 vs 7.2% in Q4FY16). Titan would be the key beneficiary of GST rate of 3% which was lower than expected. Improved compliance under GST regime will create a level playing field & would help the sector to shift from unorganised to organised one. Notably, demonetisation benefitted Titan in gaining market share from unorganised jewellery players & we expect the trend to continue with the implementation of GST. The management is targeting to increase the jewellery busi-ness revenues by 2.5x over the next five years. Further, we ex-pect jewellery revenues to witness a CAGR of 17.3% over FY17-19E on increasing share of organised market, higher focus on wedding jewellery, network expansion, thrust on studded jewel-lery, new collection launches, redemptions from Golden Harvest Scheme (GHS) and improvement in overall consumer sentiment. Growth in the watches segment has been patchy in the last few years due to rising competition, loss of gifting segment by watch-es, disruption by online retail etc. Eyewear is facing increased competition from Lenskart and unorganised players. It is reorgan-ising business by closing unprofitable stores, undertaking store renovations and back ward integration into frames. However, we expect watch and eyewear business to remain in investment mode in the near term. We expect revenue & PAT to grow at a CAGR of 15.5% and 20.0% respectively over FY17-19E. Titan is trading at P/E of 49x & 40x on FY18E & FY19E which appears rich. Moreover, we believe that the current price does not factor in sustained pres-sure in watch and eyewear business. Additionally, recent run-up in the stock price due to lower than expected GST rate on gold restricts any upside. Considering this we downgrade our rating on the stock from ‘BUY’ to ‘REDUCE’ with a revised TP of Rs480.

KNR Constructions Ltd (KNR) is a leading EPC player largely fo-cusing on national and state highway projects. KNR has success-fully executed ~6,000 lane km road projects across 12 states in India. KNR has 20 years of experience in road projects and they have an upper hand in road & highway projects, one of the fast-est growing sectors. The strong EPC order book of Rs3,769cr in roads as on FY17 will elevate revenue prospects for the years ahead. The efficiency of management and their experience in the field have helped to evolve a scientific bidding and execution, instead of aggressive bidding in the industry. KNR has stable asset utilization with the efficient use of company owned assets. This has also helped to achieve higher margins in the industry. Q4FY17 revenue grew by 63% to Rs482cr, which is above our estimate. Improved executions in Madurai- Ramanathpuram Project, TVM Bypass, Salem flyover EPC projects and starting of Dindigul-Bangalore road (Rs415cr) have led to this stunning performance. We expect execution will ramp up as the construc-tion work of Hubli-Hospet NH has already started and the reve-nue will start to reflect from Q1FY18. Improving execution cou-pled with strong order book will stimulate the revenue to grow by 14% CAGR over FY17-19E. Order book continued to remain strong @ 2.4x FY17 revenue and the total outstanding order book stands at Rs3,769cr a growth of 9% YoY. Road & Irrigation projects constitute 85% & 15% in the order book. During the quarter the company has not registered any fresh order as they give more focus on execution. The man-agement is expecting Rs2,000cr fresh order in FY18E. The gov-ernment has initiated various reforms to ensure speedy approvals and clearances to aid the pace in construction. Consequently, this will increase the order pipeline of EPC players like KNR. We ex-pect order intake to grow at CAGR of 31% over FY17-19E. We witnessed a ramp up in execution in Q4FY17, however higher depreciation & lower other income pulled down reported PAT growth by -9% during the quarter. Adj. PAT grew by 30% YoY by adjusting the benefit of MAT credit. Given the better visibility on execution and better operating performance we increased FY18E/FY19E PAT estimate by 3%&5% respectively. Ministry of Road Transport and Highways kept the target for construction of 15,000 kilometres, but only 8,231 kilometres could be build averaging at an all-time high pace of 22.5 kilome-tres per day which was, however, lower, than the target of 41 kilometres per day. For Financial Year 2018, Ministry of Road Transport and Highways has set the target at 41 kilometres per day or 15,000 kilometres of highways construction. It is estimat-ed that National Highways Authority of India has been asked to execute 8,000 kilometres of highways for current fiscal while the rest would be done by the ministry with the support from state Public Works Department and NHIDCL. On the award front also, the target has been kept at last year’s development of 25,000 kilometres, last fiscal a record of 16,271 kilometres of national highways were awarded. Sound balance sheet (standalone D/E 0.1x FY17) and the earn-ings visibility keep KNR in premium valuation. We value at 17x on FY19E EPS and BOT projects at 1xP/B to arrive at SOTP target price Rs243 & revised our rating to ‘Buy’ from ‘Accumulate.

Analyst: Rohit Joshi, Dion Global Solutions Ltd INH100002771

Analyst: Antu Eapen Thomas, Geojit Financial Services Ltd. INH200000345


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|ARTICLE|

After the rates are unbundled

F inally GST is in the books! Hailed as Prime Minister Narendra Modi’s most significant economic reform since coming to power in 2014, it is seen as a game changer for taxation in India. With the rates

being fixed now and government reaching a consensus on all disputed issues between states, the country is all set to witness a new era of indirect tax regime. Thus any benefits due to GST by way of reduction in tax rates and set off of input tax credits will be passed on to consumers in the form of lower prices. This would certainly improve the demand in sectors where there is significant reduction of taxes. An effective execution of “anti-profiteering clause” built within the GST framework will be the key factor in determining the success of these transitions.

For the purpose of this article, we are focusing on three major sectors which are likely to be impacted by GST namely FMCG, consumer durables and automobiles.

FMCG Sector:

FMCG would benefit from lower GST rates. Essential com-modities are brought under lower tax brackets with the prime objective of having an inflation- neutral impact. GST

rates are lower for a total of 89 items in this sector. These include edible items such as milk products, wheat, rice, oil, garments and so on. An attempt has been made to distin-guish products on the basis of goods consumed by lower, middle and higher income groups. Accordingly, toothpow-ders, hair oils, soaps, etc have seen a reduction in overall taxes. Furthermore, FMCG has one of the highest numbers of unorganized players in India. GST implementation will force the unorganized players to come under the ambit of taxation. A gradual shift from unorganized to organized sector in this manner will benefit the already established companies by encouraging a healthy competition.

Consumer Durables: GST is touted as the single biggest tax reform since India's independence in 1947 and is ex-pected to add 2 per cent to India's GDP (gross domestic product)

Consumer durables are tagged as luxurious commodities under the GST regime and most of the goods are put un-der a higher tax slab of 28%. Equipments like water heat-ers, fans, air conditioners, refrigerators and washing ma-chines, which were taxed at 18%-24% are now being

Any benefits due to GST by way of reduction in tax rates and set off of input tax credits will be passed on to consumers in the form of lower prices. This would certainly improve the

demand in sectors where there is significant reduction of taxes.

ANIL R


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shifted to the 28% bracket. Cables and wires previously taxed at 18% are taxed at 28 %. Considering the overall higher tax incidence, manufacturers are expected to come up with more price hikes. This could add pressure on the buying front at least in the medium term. On the other hand, large unorganized sector presence and unfair com-petition might delay these price implementations, thereby impacting the near term margins. With GST rollout this situation is expected to reverse gradually. Input tax credits and efficiencies in the supply chain will be an added benefit in this direction.

Automobile Segment:

In the automobile segment, GST is largely in line with ex-pectations. Passenger vehicles will see reduction in taxes under GST with SUVs and larger cars benefitting the most. The utility vehicle (premium cars) segment will enjoy a reduction in the total tax incidence, despite a cess of 15%.

For promoting greener vehicles, hybrid vehicles will be levied at base rate without any cess and electrically operat-ed vehicle will be levied at 12%. Sectors such as two

wheelers, three wheelers and tractors are seeing minimal impact and the outlook is likely to be neutral. Thus the implementation of GST will reduce the cost of manufactur-ing cars due to the subsuming of different taxes levied currently and would give a thrust to the growth of the automobile industry in India.

Conclusion Goods and Services Tax, apart from improving tax collec-tion through better compliance, will also boost the growth of Indian economy by removing indirect tax barriers be-tween states and integrating the country into a single mar-ket through a uniform tax rate. Government has already given enough time for a smooth transition to GST and any remaining confusion, if any, can be cleared within few months from now. Lauded as India’s single biggest tax reform since independence and with the expectation that

this will add up to 2 per cent to India’s Gross Domestic Product, GST is being welcomed by the general public as a much needed reform.

Sector/ Products GST rate Pre-GST rate

Auto

Small Cars <4 mtr petrol engine <1200cc 28%+1% cess 31.4%

Small diesel Cars with Length > 4 mtr and Engine < 1500cc 28%+3% cess 33.5%

SUV’s , Mid size cars, luxury cars, Hybrid cars >1500cc 28%+15% cess 45.6-55.3%

Electric cars 12% 14%

Commercial Vehicle (LCV, M&HCV 28% 30%

Tractors 12% 14%

Two wheelers <350cc 28% 30%

Two wheelers >350cc 28% +3% cess 30%

Three wheelers 28% 29%

Consumer durables

White goods- A/C, TV, Refrigerators 28% 26.5%

Cables 28% 18.5%

Appliances, fans 28% 26.5%

FMCG

Soaps 18% 25%

Tooth Paste 18% 25%

Hair Oil 18% 26%

Detergents 28% 26%

Others

Cement 28% 31%

Metals 18% 17.5%

Table of rates for important commodities and sectors


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|FEATURES|

VIJAYANANDA PRABHU

For Money & Muscle

I t's easy to gain weight - to add those extra pounds in no time. But it's really hard to get back in shape. And it's difficult because it demands discipline. Keeping something in order, always, is really a tough task. It is due to this reason that our portfolios are messed up. We get into too much of too many things and spoil the show. We might need only one pill for relief from the ailment. But we will take advice from all around and buy half of the medical store. Let's stop this. Let's get disciplined.


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Why don't we learn Financial Planning in the context of diet planning? In planning a healthy diet, first and foremost thing is to assess the blood sugar level and lipid profile to know what food is good and what should be avoided. The daily calo-rie intake should be within approved limits to maintain the biometrics in a satisfactory range. Similarly, financial planning first requires knowing ourselves, more precisely our risk profile. It is the level of risk tolerance and financial capacity to shoul-der the risk. This will yield a result as to what should be the ideal asset allocation one can afford in terms of including riski-er asset classes in the portfolio. One cannot slice away those extra pounds using a sharp knife, however, one can manage the future food intake to lose/gain weight. Investors cannot readily align their existing investments in line with the suggest-ed asset allocation. But gradually, this could be achieved, through continuous rebalancing exercises. A planned approach to investments can help you in this.

There should be a fine balance between the calories we intake and the calories we use during the day. Excess calo-ries, if not used up, will get converted into fat and unnecessari-ly deposited in the blood vessels and result in cardiac arrest. Same is the case with the surplus after all your expenses lying idly in savings accounts. We should burn those excess calories efficiently to be healthy. Likewise, we should invest our surplus according to our risk profile, for a secure future. And regarding management of expenses, just plotting the last three months expenses can reveal the items where we can make some cor-rections. Expenses also include EMIs and credit card bills. Con-solidation, restructuring or refinancing of loans can reduce interest expense to a great extent. This will increase the sur-plus. And this surplus need to be invested wisely. Financial planning exercise includes ‘surplus management’ in relation to life’s financial goals.

The word itself brings a frown on most faces. This is because we have not yet understood insurance in its real con-cept. Insurance is primarily meant for transferring the risk which one cannot afford. Do you mind contributing just 1% of your yearly income to make sure that your family's needs are taken care of even in your absence? A person should be in-sured enough to fund his/her child's education, marriage, fami-ly's monthly expenses till the time their financial status get to normalcy and to close any loan outstanding. Medical Insurance is a must for every family, perhaps more important than life insurance. Unfortunate will be those who have renewed their vehicle insurance but not their health insurance. A sound finan-cial plan can help you analyse your insurance needs.

Now that you have learned your bio information, you can chart a diet according to your need - to gain weight, to lose weight, to get muscular or to recover from a physical ail-ment. The significant thing here is that it is a continuous pro-cess. We cannot see results in a day or two. Some goals may take years of disciplined life style to achieve them, like weight loss. Same with financial goals. Now, since you have under-stood your financial position in terms of monthly surplus, exist-ing investments, loans etc, you can set our life’s goals. One should set realistic goals within one’s working life span. If a

goal falls beyond ones retirement, funding the goal might be problematic. The goal amount and the return expectation should be in line with the surplus monthly availability of invest-able funds after expenses. Retirement planning, since it is a long term goal, should be planned very prudently and with utmost seriousness. Since one cannot predict future rates pre-cisely, returns have to kept as conservative as possible and inflation rates could be assumed at current or higher rates to avoid shocks. Retirement planning is an indispensable part of financial planning.

A regular health check up is necessary. But do we need to check our blood sugar level every day? Not at all. We may check our medical info once in a quarter. But that is really important exercise. One cannot notice the weight loss on a daily basis but once in a month the change will be evident. This review will help us in taking corrective actions and make sure we are on track with our goal. Financial goals are not different. They demand constant monitoring in terms of corpus achieved, any shortfalls, portfolio rebalancing requirements etc. It's not planning, but constant monitoring that plays the trick on reach-ing the goal corpus. It's not a fit it-forget it game. But that does not mean that one should stay tuned every day. Just once in six months, have a review on the entire portfolio and financ-es.

Financial planning will help you to assess your financial position at a given point of time. It uses certain simple ratios (for e.g. debt to asset ratio which calculates how much debt you have in terms of assets you posses. If the value of your assets is more than your liabilities, you are more solvent and safe) which will

give you a one stop assessment of your financial health. Fill the gaps, fix the issues, fall in love with life. It's simple and effective.

One cannot notice the weight loss on a daily basis but once in a month the change will be evi-dent. This review will help us in

taking corrective actions and make sure we are on track with our goal. Financial goals are not

different. They demand con-stant monitoring in terms of

corpus achieved, any shortfalls, portfolio rebalancing require-

ments etc.


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Retirement Planning DR. V. K. VIJAYAKUMAR

T he famous fable of the ant and the grasshopper has an important economic message. The ant worked hard during summer and stored food for winter. The grasshopper, always playing, un-

mindful of the coming difficult times, made fun of the ant for not enjoying the present. And then, winter came. The ant, which had well stocked food, was comfortable. The hungry grasshopper froze to death. Human beings should learn from this fable.

The environment in which we live is crucial in financial planning. Now, we are living at a time when life expectan-cy is increasing at a steady pace. In 1950, only 4.9% of world population was above 65 years of age. Presently, this is 22% and is projected to reach 39.5% by 2050. Clearly, the world population is aging fast.

Why retirement planning?

In India, our life expectancy in 1947 was a mere 32. Pres-ently, it is above 65 and is showing a clear increasing trend. All these point to the importance of retirement plan-ning. The developed countries have comprehensive ‘cradle to grave’ social security system. Developing economies like India are not resourceful enough to provide such social security to its citizens. In India only 10% of the working population employed in the government and organized private sector has pension and retirement benefits. 90% of the labour force, working in the unorganized sector, is faced with an uncertain future in their old age. Therefore,

it is important that we plan for retirement.

When should I start planning for retirement?

The simple answer is: ‘earlier the better.’ It is ideal to plan for retirement right from the early days of one’s career. The more the time given for Accumulation Phase, the bet-ter it is for Maturity / Annuity Phase (retired life).

Starting early will give the advantages of longer term com-pounding of investment returns. Also, there are the ad-vantages of starting with an affordable amount and disci-pline in savings.

Accumulation phase is that part of the retirement plan, during which you invest gradually (monthly for example) towards building the retirement corpus. Maturity / Annuity phase is the period post retirement, when you start with-drawing from the Accumulated Retirement Corpus (eg: invest and withdraw the interest) for meeting the expens-es.

Where should I invest?

The simple answer is: invest in instruments that have the potential to generate returns that can beat the average inflation. Historically, equities have delivered the best re-turns beating inflation. Also keep the diversification part in mind. One of the time-tested routes of equity investing is Systematic Investment Plans (SIPs).

|FEATURES|


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What is SIP?

Under SIP, the investor invests a particular amount of money regularly, say every month. This regular investment done through the ups and downs of the market helps in reducing the average cost. Investors don’t have to bother about tim-ing the market and the long-term investment helps in reap-ing the benefit of the power of compounding.

There are debt funds that invest in debt instruments, equity funds that invest in equity and balanced funds that invest in a combination of both. SIPs may ideally be done in equity mutual funds since equity funds give excellent returns in the long run. In equity funds, large cap funds give stable and steady returns while mid and small-cap funds, though risky in the short run, might give higher returns in the long run. Balanced funds, which invest 65 percent in equity and 35 percent in debt instruments, are also desirable.

How much should I invest for retirement?

Deciding how much to invest for retirement requires multiple number crunching. The following guidelines would be help-ful:

1. Ascertain your current monthly expenses. Consider those expenses that would continue post retirement as well like the monthly gro-ceries, bills, etc. (Eg: exclude school fees, home loan EMI, etc., which would stop after certain years).

2. Calculate the number of years left for your retirement .

3. Assign an expected inflation figure to find out your cost of living after your retirement.

4. Assume an expected rate of return on invest-ments during Accumulation Phase.

5. Assume a conservative expected rate of return on investments post retirement since the in-vestment will be in fixed income avenues.

6. Assume that you are likely to live long, say upto 90 years.

7. Anticipate a sum which might be required for meeting the regular medical and health check-up costs.

Following the above steps will help you decide the amount to be invested for retirement planning.

Let us consider an example of a 40 year old person planning to retire at sixty. His present expenses that will continue

post retirement is Rs 20000 per month. Assuming an infla-tion rate of 6 %, he will need Rs 64120 per month on reach-ing 60 to meet these expenses. Assuming an expected re-turn of 12 % post-tax during the accumulation phase and 10

% return in the post-retirement phase, he will have to invest Rs 7870 every month for 20 years to get an income of Rs 64120 per month post-retirement. Therefore, the minimum monthly investment for retirement planning should be 7870. Ideally, it should be higher than that since he should be saving / reinvesting a part of the income to compensate for inflation in the post-retirement stage.

New Pension Scheme

Another option for retirement planning is the New Pension Scheme (NPS). NPS introduced by the government is open to the public. Any Indian in the age group 18 to 55 can join this scheme. The subscriber has to make at least 4 contribu-tions a year, with a minimum contribution size of Rs 500. There is also a condition that the minimum contribution during a year should be Rs 6000.The amount so mobilized will be invested by professional fund managers regulated by the PFRDA. The funds will be invested in 3 different schemes: E, G and C. E class will invest mainly in equity; G class in government securities and C class in PSU/ corporate bonds, bank deposits etc. The allocation among different schemes can be decided by the subscriber. At 60, the sub-scriber can withdraw 60% of the accumulated value. 40 % is used for buying annuities which ensure pension for life.

Plan for the rainy day through SIP or NPS.

This regular investment done through the ups and downs of the market helps in reducing the average cost. Investors don’t have to bother about timing the market and the

long-term investment helps in reaping the benefit of the power of compounding


30


31

|MUTUAL FUND|

EQUITY FUND RECOMMENDATIONS: JULY 2017

Large Cap Funds:

Large Cap Funds invest in industry leaders with stable growth.

They are least risky among the equity category due to their large size, lower volatility and high liquidity.

Suited for first time investors, or for investors with least risk appetite and for conservative investors looking for small equity allocations.

Flexi Cap / Multi cap Funds:

The fund manager has the freedom to invest across market caps that increases investment opportunity. The volatility risk is higher than large cap funds due to presence of mid caps in the portfolio.

Suited for long term investments in equity without the hassle of constant portfolio restructuring.

Scheme Name

1 Year 3 Years 5 Years

Invesco India Growth Fund (G) 23.27 15.63 19.51

SBI BlueChip Fund-Reg (G) 18.87 17.13 21.44

Birla SL Frontline Equity Fund (G) 22.11 14.21 20.32

ICICI Pru Focused Bluechip Equity Fund (G) 23.01 12.92 18.17

Reliance Top 200 Fund (G) 26.95 14.73 19.58

BNP Paribas Equity Fund (G) 20.66 14.56 19.20

Kotak 50(G) 18.85 14.19 17.47

Franklin India Bluechip Fund (G) 17.67 13.16 16.21

DSPBR Focus 25 Fund-Reg (G) 21.52 16.10 18.89

UTI Equity Fund (G) 17.12 12.95 17.78

CAGR

Scheme Name


Kotak Select Focus Fund (G) 29.80 19.77 23.13

Tata Equity P/E Fund (G) 40.95 20.84 24.08

Birla SL Equity Fund (G) 32.79 17.51 23.89

DSPBR Opportunities Fund-Reg (G) 30.31 18.90 22.18

L&T India Spl. Situations Fund-Reg (G) 31.85 17.00 20.98

ICICI Pru Value Discovery Fund (G) 16.43 15.38 23.19

Franklin India Flexi Cap Fund (G) 18.17 15.07 20.49

Tata Equity Opportunities Fund (G) 20.29 15.42 19.24

CAGR


32

|MUTUAL FUND| Mid /Mid & Small Cap Funds:

Mid Cap funds invest in medium sized companies beyond the top 100 companies by market cap.

They are future large caps. The fund displays higher volatility and has the potential to deliver higher risk adjusted returns over longer term.

Suited for young investors with longer investment horizon.

Equity Linked Saving Schemes (ELSS):

The scheme enjoys tax benefit forming the 80 C category with 3 year lock in period

Portfolio is generally multi cap with higher large cap allocation which reduces volatility risk.

Balanced Funds:

These are designed to combine the benefit of equity and debt in the same portfolio

Ensures equity taxation on returns due to majority allocation in equity (65%) and 35% in debt. In the debt portfolio the fund managers mostly hold short term papers to reduce duration related risk.

Suited for investors with low risk appetite.

The schemes are listed in the above tables according to the position they hold in the quartile ranking for the month of June 2017.

Scheme Name CAGR


Franklin India Smaller Cos Fund(G) 29.14 26.69 33.20

L&T Midcap Fund-Reg(G) 44.63 27.39 29.48

Kotak Emerging Equity Scheme(G) 30.13 27.23 27.62

HDFC Mid-Cap Opportunities Fund(G) 34.45 23.13 27.48

Canara Rob Emerg Equities Fund-Reg(G) 38.42 27.44 30.68

SBI Magnum MidCap Fund-Reg(G) 20.24 24.78 30.35

Scheme Name CAGR


Birla S L Tax Relief '96 (G) 22.89 19.72 23.01

Axis LT Equity Fund (G) 20.39 18.50 24.79

ICICI Pru LT Equity Fund (Tax Saving)( G) 19.07 12.23 19.73

Scheme Name CAGR


HDFC Balanced Fund (G) 24.38 16.25 19.52

ICICI Pru Balanced Fund (G) 25.46 15.65 19.86

L&T India Prudence Fund-Reg (G) 24.31 17.24 20.50

SBI Magnum Balanced Fund-Reg (G) 15.16 15.37 19.77


33

|MUTUAL FUND|

DEBT FUND RECOMMENDATIONS: JULY 2017

LIQUID FUNDS :

Average Maturity is less than 90 days.

Ideal for parking idle funds for very short period.

Least risk of volatility since there is no comparing of the rates with the market.

ULTRA SHORT TERM FUNDS:

Average Maturity is 3 to 6 months.

Suitable for short term fund parking.

Minor volatility in returns due to marking fund rates to market.

SHORT TERM FUNDS:

Average maturity is 1 to 4 years.

Provides accrual returns plus capital appreciation.

Suitable for short term investment of around 3 years. Returns subject to volatility in market rates

Scheme Name

YTM 2 Week 1 Month 3 Months

L&T Liquid Fund (G) 6.44 0.21 0.52 1.64

Reliance Liquid-Treasury Plan (G) 0.00 0.21 0.51 1.64

Tata Liquid Fund-Reg (G) 6.45 0.21 0.51 1.61

Birla SL Cash Plus (G) 6.47 0.21 0.51 1.64

Invesco India Liquid-Reg (G) 6.62 0.19 0.47 1.49

Absolute Return %

Scheme Name Absolute Return %

YTM 2 Week 1 Month 3 Months

Franklin India Low Duration Fund (G) 8.77 0.45 0.85 2.41

DHFL Pramerica Low Duration Fund (G) 8.03 0.37 0.69 1.93

UTI Treasury Advantage-Reg (G) 7.34 0.34 0.65 1.86

SBI Savings Fund-Reg (G) 7.39 0.32 0.63 1.78


YTM 3 Months 1Year 3 Years

L&T ST Income Fund-Reg(G) 8.55 2.48 10.35 9.55

ICICI Pru Regular Savings(G) 9.04 2.53 10.12 9.36

Birla SL Treasury Optimizer Plan(G) 7.51 3.22 10.70 10.18

Reliance STF(G) 7.57 2.51 9.14 9.04

CAGR


34

|MUTUAL FUND|

INCOME FUNDS:

Average Maturity is 5 to 10 years.

Maturity varies from short to long term to benefit from yield curve movements.

Dynamically managed portfolio suited for tactical allocation.

DYNAMIC FUNDS:

Average Maturity 1 to 10 years.

Similar to Income funds, with greater flexibility to choose papers of different maturities ,lower Average Maturity in a bear market and vice versa.

MONTHLY INCOME PLANS:

Generally 80% of the portfolio is allocated into debt and 20% into equity.

Preferred by conservative investors who want some allocation in equities.

The schemes are listed in the above tables according to the position they hold in the quartile ranking for the month of June 2017.

Scheme Name

YTM 1Year 3 Years 5 Years

ICICI Pru Income (G) 7.76 15.38 11.65 9.78

HDFC Income Fund (G) 7.34 12.33 10.39 9.13

DSPBR Income Opportunities Fund-Reg (G) 8.90 9.95 9.81 9.60

Kotak Income Opportunities Fund (G) 8.42 10.19 9.67 9.45

CAGR

Scheme Name

YTM 1Year 3 Years 5 Years

IDFC Dynamic Bond Fund-Reg (G) 7.44 14.33 11.37 10.13

ICICI Pru Dynamic Bond Fund (G) 7.69 12.94 11.12 9.95

Birla SL Dynamic Bond Fund-Reg (G) 7.77 12.34 11.22 10.41

BNP Paribas Flexi Debt Fund (G) 7.55 13.25 10.75 10.03

CAGR


6 Month 1 Year 3 Years 5 Years

HDFC MIP-LTP(G) 7.18 17.20 10.99 12.19

SBI Magnum MIP(G) 6.51 14.31 12.57 11.70

Reliance MIP(G) 6.24 13.13 11.11 11.24

Sundaram MIP-Aggr Plan (G) 5.65 12.68 12.00 11.29

CAGR


35

FUNDS IN THE LIMELIGHT Data as on 14.06.2017 The schemes are listed in the below table according to the position they hold in the quartile ranking for the month of June 2017

Equity Large Cap CAGR %

ISIN Code Scheme Name Inception Date Minimum Amount NAV 1 Year 3 Years 5 Years

INF205K01247 Invesco India Growth Fund(G) 09.08.2007 5000 28.39 23.27 15.63 19.51 INF200K01180 SBI BlueChip Fund-Reg(G) 20.01.2006 5000 35.30 18.87 17.13 21.44 INF209K01BR9 Birla SL Frontline Equity Fund(G) 30.08.2002 1000 201.61 22.11 14.21 20.32 INF109K01BL4 ICICI Pru Focused Bluechip Equity Fund(G) 23.05.2008 5000 35.98 23.01 12.92 18.17 INF090I01296 Templeton India Growth Fund(G) 05.09.2003 5000 243.79 31.59 16.45 19.02 INF204K01562 Reliance Top 200 Fund(G) 08.08.2007 5000 29.28 26.95 14.73 19.58 INF209K01462 Birla SL Top 100 Fund(G) 24.10.2005 1000 52.80 21.71 13.33 19.98 INF109K01431 ICICI Pru Top 100 Fund(G) 09.07.1998 5000 298.75 26.64 11.90 17.78 INF205K01213 Invesco India Dynamic Equity Fund(G) 04.10.2007 5000 26.03 21.81 12.89 17.57 INF663L01GW4 DHFL Pramerica Large Cap Fund(G) 30.01.2003 5000 150.92 20.12 13.44 18.01 INF205K01304 Invesco India Business Leaders Fund(G) 21.08.2009 5000 24.95 18.75 14.20 17.70 INF789F01869 UTI Top 100 Fund(G) 20.05.2009 5000 58.55 21.41 13.73 17.05 INF251K01894 BNP Paribas Equity Fund(G) 23.09.2004 5000 80.43 20.66 14.56 19.20 INF846K01CH7 Axis Focused 25 Fund(G) 29.06.2012 5000 23.18 29.28 17.27 0.00 INF247L01155 MOSt Focused 25 Fund-Reg(G) 13.05.2013 5000 20.02 30.75 17.99 0.00 INF174K01153 Kotak 50(G) 05.02.2003 5000 207.16 18.85 14.19 17.47 INF090I01171 Franklin India Bluechip Fund(G) 01.12.1993 5000 425.88 17.67 13.16 16.21 INF740K01532 DSPBR Focus 25 Fund-Reg(G) 10.06.2010 1000 21.01 21.52 16.10 18.89 INF789F01513 UTI Equity Fund(G) 01.08.2005 5000 119.18 17.12 12.95 17.78

Equity Flexi Cap CAGR %

ISIN Code Scheme Name Inception

Date Minimum Amount NAV 1 Year 3 Years 5 Years

INF174K01336 Kotak Select Focus Fund(G) 11.09.2009 5000 30.57 29.80 19.77 23.13 INF174K01187 Kotak Opportunities Fund(G) 09.09.2004 5000 108.07 31.04 19.05 21.18 INF277K01451 Tata Equity P/E Fund(G) 29.06.2004 5000 124.78 40.95 20.84 24.08 INF209K01AJ8 Birla SL Equity Fund(G) 27.08.1998 1000 654.22 32.79 17.51 23.89 INF090I01981 Franklin India High Growth Cos Fund(G) 26.07.2007 5000 36.24 24.78 20.31 25.83 INF677K01023 L&T India Value Fund-Reg(G) 08.01.2010 5000 34.33 35.86 23.40 27.89 INF090I01239 Franklin India Prima Plus Fund(G) 29.09.1994 5000 538.46 18.83 17.82 20.99 INF205K01189 Invesco India Contra Fund(G) 11.04.2007 5000 39.95 28.25 18.72 22.61 INF740K01094 DSPBR Opportunities Fund-Reg(G) 16.05.2000 1000 198.81 30.31 18.90 22.18 INF677K01098 L&T India Spl. Situations Fund-Reg(G) 22.05.2006 5000 45.82 31.85 17.00 20.98 INF200K01222 SBI Magnum Multicap Fund-Reg(G) 16.09.2005 1000 42.72 23.87 20.22 22.50 INF209K01165 Birla SL Advantage Fund(G) 24.02.1995 1000 396.61 31.30 20.26 24.45 INF109K01613 ICICI Pru Multicap Fund(G) 01.10.1994 5000 254.02 22.95 15.71 20.34 INF251K01951 BNP Paribas Dividend Yield Fund(G) 15.09.2005 5000 43.73 26.50 16.67 20.69 INF194K01524 IDFC Classic Equity Fund-Reg(G) 09.08.2005 5000 41.54 30.30 15.80 18.31 INF247L01478 MOSt Focused Multicap 35 Fund-Reg(G) 28.04.2014 5000 24.27 37.79 28.71 0.00 INF109K01761 ICICI Pru Dynamic Plan(G) 31.10.2002 5000 234.01 26.62 12.09 18.17 INF109K01AF8 ICICI Pru Value Discovery Fund(G) 16.08.2004 1000 134.23 16.43 15.38 23.19 INF179K01426 HDFC Capital Builder Fund(G) 01.02.1994 5000 255.20 25.55 15.81 20.35 INF090I01205 Franklin India Flexi Cap Fund(G) 02.03.2005 5000 73.34 18.17 15.07 20.49 INF090I01841 Franklin India Opportunities Fund(G) 21.02.2000 5000 67.81 19.86 16.86 19.60 INF277K01345 Tata Dividend Yield Fund(G) 22.11.2004 5000 73.49 22.99 15.63 17.58

CAGR %


INF917K01254 L&T Midcap Fund-Reg(G) 09.08.2004 5000 128.65 44.63 27.39 29.48 INF174K01DS9 Kotak Emerging Equity Scheme(G) 30.03.2007 5000 36.47 30.13 27.23 27.62 INF179K01CR2 HDFC Mid-Cap Opportunities Fund(G) 25.06.2007 5000 52.24 34.45 23.13 27.48 INF760K01167 Canara Rob Emerg Equities Fund-Reg(G) 11.03.2005 5000 84.96 38.42 27.44 30.68 INF200K01560 SBI Magnum MidCap Fund-Reg(G) 29.03.2005 5000 77.35 20.24 24.78 30.35 INF174K01211 Kotak Midcap Scheme(G) 24.02.2005 5000 73.36 31.87 24.99 25.46 INF903J01173 Sundaram Select Midcap(G) 19.07.2002 5000 474.23 33.50 24.92 28.33 INF251K01AW3 BNP Paribas Mid Cap Fund(G) 02.05.2006 5000 32.55 27.83 22.10 27.54 INF205K01BC9 Invesco India Mid Cap Fund(G) 19.04.2007 5000 43.23 25.78 19.89 25.60 INF209K01363 Birla SL Midcap Fund(G) 03.10.2002 1000 293.41 32.72 22.51 24.91 INF277K01626 Tata Mid Cap Growth Fund(G) 01.07.1994 5000 127.88 28.95 21.77 25.99

Equity- Mid Caps


36

Equity- Mid & Small Caps CAGR %


INF090I01569 Franklin India Smaller Cos Fund (G) 13.01.2006 5000 54.70 29.14 26.69 33.20

INF740K01797 DSPBR Micro-Cap Fund-Reg (G) * 14.06.2007 1000 61.92 36.21 34.41 33.16

INF090I01809 Franklin India Prima Fund (G) 01.12.1993 5000 900.60 27.18 23.83 28.69

INF204K01HY3 Reliance Small Cap Fund (G) 16.09.2010 5000 37.77 43.29 29.08 33.40

INF209K01EN2 Birla SL Small & Midcap Fund (G) 31.05.2007 1000 37.35 38.50 26.58 27.42

INF752K01016 SBI Small & Midcap Fund-Reg (G) * 09.09.2009 5000 43.63 32.87 32.87 33.14

* Subscription stopped .

ELSS CAGR %


INF209K01108 Birla SL Tax Relief '96(G) 10.03.2008 500 27.00 22.89 19.72 23.01

INF209K01348 Birla SL Tax Plan(G) 18.01.2007 500 33.86 22.19 18.91 22.22

INF846K01131 Axis LT Equity Fund(G) 03.10.2006 500 37.11 20.39 18.50 24.79

INF677K01064 L&T Tax Advt Fund-Reg(G) 27.02.2006 500 50.52 32.21 17.89 20.22

INF194K01292 IDFC Tax Advt(ELSS) Fund-Reg(G) 29.12.2009 500 50.07 30.30 18.66 22.89

INF205K01270 Invesco India Tax Plan(G) 29.12.2006 500 43.22 22.02 17.05 21.31

INF277K01I60 Tata India Tax Savings Fund-Reg(DP) 31.03.1996 500 69.51 26.68 20.12 22.04

INF740K01185 DSPBR Tax Saver Fund-Reg(G) 23.11.2005 500 42.77 28.62 18.31 22.78

INF090I01775 Franklin India Taxshield(G) 10.04.1999 500 511.99 18.50 17.36 20.43

INF174K01369 Kotak Tax Saver Scheme(G) 26.12.2008 500 39.21 29.60 18.82 18.61

INF179K01996 HDFC Long Term Adv Fund(G) 19.08.1999 500 309.79 28.15 14.16 19.51

INF336L01BA4 HSBC Tax Saver Equity Fund(G) 02.01.2001 500 35.46 30.18 16.55 21.27

INF109K01464 ICICI Pru LT Equity Fund (Tax Saving)(G) 19.08.1999 500 322.27 19.07 12.23 19.73

Balanced Funds CAGR %


INF179K01392 HDFC Balanced Fund(G) 03.11.1999 5000 138.62 24.38 16.25 19.52

INF109K01480 ICICI Pru Balanced Fund(G) 11.09.2000 5000 117.86 25.46 15.65 19.86

INF917K01LB0 L&T India Prudence Fund-Reg(G) 07.02.2011 5000 24.77 24.31 17.24 20.50

INF090I01817 Franklin India Balanced Fund(G) 06.01.1996 5000 108.54 15.76 15.81 17.96

INF200K01107 SBI Magnum Balanced Fund-Reg(G) 10.02.1995 1000 113.70 15.16 15.37 19.77

INF084M01AB8 Birla SL Balanced Advantage Fund(G) 10.12.1999 1000 49.03 23.53 13.16 15.26

INF209K01BT5 Birla SL Balanced '95 Fund(G) 25.04.2000 1000 708.32 20.63 15.98 19.06

INF109K01BH2 ICICI Pru Balanced Advantage Fund(G) 27.05.1999 5000 31.12 15.86 12.21 16.35

Data as on 15.06.2017 MIP CAGR %


INF209K01751 Birla SL MIP II-Wealth 25(G) 22.05.2004 1000 37.63 20.42 15.18 14.90

INF109K01902 ICICI Pru MIP 25(G) 30.03.2004 5000 38.13 16.99 12.71 12.87

INF179K01AE4 HDFC MIP-LTP(G) 26.12.2003 5000 43.09 17.20 10.99 12.19

INF174K01393 Kotak MIP(G) 02.12.2003 5000 28.95 15.25 11.67 11.65

INF200K01859 SBI Magnum MIP(G) 23.03.2001 5000 37.56 14.31 12.57 11.70

INF336L01099 HSBC Monthly Income Plan(G) 24.02.2004 10000 34.82 13.75 9.95 11.40

INF109K01555 ICICI Pru MIP(G) 10.11.2000 5000 46.51 14.47 10.63 10.93

INF204K01FD1 Reliance MIP(G) 12.01.2004 5000 39.79 13.13 11.11 11.24

INF179K01AF1 HDFC MIP-STP(G) 26.12.2003 5000 29.53 14.24 8.69 10.09

INF903J01HB0 Sundaram MIP-Aggr Plan(G) 08.03.2010 5000 18.25 12.68 12.00 11.29

INF194K01RW9 IDFC MIP-Reg(G) 25.02.2010 5000 19.95 13.61 10.85 11.59

INF251K01845 BNP Paribas MIP Fund-Reg(G) 23.09.2004 1000 26.06 12.36 9.77 10.34


37

Income Funds CAGR %

ISIN Code Scheme Name Inception Minimum Amount NAV 1 Year 3 Years 5 Years

INF109K01365 ICICI Pru Income(G) 09.07.1998 5000 54.51 15.38 11.65 9.78

INF789F01406 UTI Bond Fund(G) 17.06.1998 1000 51.48 15.11 11.00 9.96

INF200K01719 SBI Regular Savings Fund(G) 05.11.2003 5000 29.04 13.29 10.90 10.79

INF200K01594 SBI Magnum Income(G) 25.11.1998 5000 41.42 13.10 10.54 9.38

INF209K01579 Birla SL Income Plus(G) 21.10.1995 1000 75.94 13.19 10.58 9.25

INF204K01CL1 Reliance Income(G) 01.01.1998 5000 55.02 12.82 10.46 9.06

INF846K01BP2 Axis Regular Savings Fund(G) 28.03.2012 5000 16.12 11.51 10.40 9.57

INF760K01324 Canara Rob Income-Reg(G) 19.09.2002 5000 35.63 12.86 10.13 9.29

INF277K01659 Tata Long Term Debt Fund(G) 28.04.1997 5000 52.00 11.74 9.94 9.62

INF109K01BO8 ICICI Pru Income Opportunities Fund(G) 18.08.2008 5000 23.59 11.27 10.35 9.84

INF174K01EM0 Kotak Bond Fund-Reg(G) 25.11.1999 5000 47.94 12.09 10.00 8.83

INF179K01962 HDFC Income Fund(G) 11.09.2000 5000 38.58 12.33 10.39 9.13

INF090I01DG6 Franklin India IBA-A(G) 23.06.1997 10000 58.18 11.13 9.61 9.80

INF090I01445 Franklin India Income Opportunities Fund(G) 11.12.2009 5000 19.46 10.89 9.51 9.69

INF740K01599 DSPBR Income Opportunities Fund-Reg(G) 13.05.2003 1000 27.42 9.95 9.81 9.60

INF174K01DY7 Kotak Income Opportunities Fund(G) 11.05.2010 5000 18.27 10.19 9.67 9.45

Income-Dynamic CAGR %


INF663L01484 DHFL Pramerica Dynamic Bond Fund(G) 12.01.2012 5000 1,625.16 14.55 11.54 9.36

INF789F01JQ5 UTI Dynamic Bond Fund-Reg(G) 23.06.2010 10000 19.78 15.98 11.44 10.98

INF200K01958 SBI Dynamic Bond(G) 13.01.2004 5000 21.33 14.44 11.36 9.63

INF194K01QG4 IDFC Dynamic Bond Fund-Reg(G) 01.12.2008 5000 20.70 14.33 11.37 10.13

INF109K01CB3 ICICI Pru Dynamic Bond Fund(G) 12.06.2009 5000 19.42 12.94 11.12 9.95

INF760K01449 Canara Rob Dynamic Bond Fund-Reg(G) 29.05.2009 5000 19.48 15.07 11.11 10.27

INF209K01793 Birla SL Dynamic Bond Fund-Reg(G) 27.09.2004 1000 30.14 12.34 11.22 10.41

INF204K01FI0 Reliance Dynamic Bond(G) 15.11.2004 5000 23.12 13.14 10.78 9.88

INF251K01DW7 BNP Paribas Flexi Debt Fund(G) 23.09.2004 5000 29.37 13.25 10.75 10.03

INF205K01RM4 Invesco India Active Income Fund(G) 02.08.2007 5000 1,969.40 13.54 9.35 8.69

Absolute Return % CAGR%

ISIN Code Scheme Name Inception Date Minimum Amount NAV 3 Months 6 Months 1 Year

INF090I01304 Franklin India ST Income Plan(G) 31.01.2002 5000 3,461.72 2.74 4.96 11.02

INF109K01654 ICICI Pru Short Term Plan(G) 25.10.2001 5000 34.84 3.10 3.94 10.51

INF677K01452 L&T ST Income Fund-Reg(G) 04.12.2010 10000 17.75 2.48 4.82 10.35

INF223J01DT4 DHFL Pramerica Short Maturity Fund(G) 27.01.2003 5000 30.43 2.75 4.30 9.90

INF109K01GU4 ICICI Pru Regular Savings(G) 03.12.2010 10000 17.71 2.53 4.02 10.12

INF209K01LV0 Birla SL Treasury Optimizer Plan(G) 05.05.2008 1000 212.93 3.22 3.20 10.70

INF209K01785 Birla SL Short Term Fund(G) 03.03.1997 1000 63.51 2.65 3.76 9.62

INF179K01AY2 HDFC Regular Savings Fund(G) 28.02.2002 5000 33.01 2.27 3.91 9.51

INF789F01QA4 UTI ST Income Fund-Inst(G) 18.09.2007 10000 20.31 2.49 3.73 10.03

INF179K01913 HDFC High Interest-STP(G) 06.02.2002 5000 33.31 2.50 3.31 10.45

INF204K01FL4 Reliance STF(G) 18.12.2002 5000 31.40 2.51 3.51 9.14

INF209K01942 Birla SL ST Opportunities Fund(G) 09.05.2003 1000 27.70 2.86 2.99 9.72

INF109K01TP7 ICICI Pru Regular Income Fund(G) 03.05.2011 5000 16.66 2.06 3.78 9.17

INF200K01HZ8 SBI Short Term Debt Fund(G) 26.07.2007 5000 19.23 2.34 3.42 9.13

INF209K01MC8 Birla SL Savings-Ret(G) 27.11.2001 1000 313.85 2.23 3.82 8.64

Short Term funds


38

Ultra Short Term Funds Absolute Return %

ISIN Code Scheme Name Inception Date Minimum Amount NAV 1 Month 3 Months 6 Months

INF090I01BU1 Franklin India Low Duration Fund(G) 26.07.2010 10000 18.84 0.85 2.41 4.64

INF090I01CN4 Franklin India Ultra Short Bond Fund-Super Inst(G) 18.12.2007 10000 22.67 0.76 2.21 4.39

INF109K01CE7 ICICI Pru Ultra Short Term Plan-Ret(G) 12.06.2009 5000 18.50 1.10 2.58 3.72

INF109K01AX1 ICICI Pru Savings Fund(G) 17.11.2005 5000 248.39 0.70 2.04 3.97

INF194K01FU8 IDFC Ultra Short Term Fund-Reg(G) 17.01.2006 5000 23.40 0.71 2.05 3.82

INF204K01EF9 Reliance Medium Term(G) 14.09.2000 1000 34.66 0.76 2.03 3.55

INF677K01AE7 L&T Banking and PSU Debt Fund-Reg(G) 20.09.2007 10000 14.71 1.17 2.63 2.84

INF663L01HV4 DHFL Pramerica Low Duration Fund(G) 22.06.2007 5000 22.55 0.69 1.93 3.84

INF760K01795 Canara Rob Savings Plus Fund-Reg(G) 04.03.2005 5000 25.89 0.72 1.91 3.66

INF179K01442 HDFC Cash Mgmt-TA Plan(G) 18.11.1999 5000 34.91 0.71 2.02 3.45

INF090I01CA1 Franklin India Savings Plus Fund(G) 11.02.2002 10000 30.17 0.67 1.94 3.79

INF209K01LQ0 Birla SL Cash Mgr Fund(G) 14.05.1998 1000 398.24 0.74 1.89 3.47

INF789F01331 UTI Treasury Advantage-Reg(G) 12.07.1999 100000 4,167.38 0.65 1.86 3.57

INF174K01FD6 Kotak Treasury Advantage Fund(G) 13.08.2004 5000 26.45 0.66 1.88 3.54

INF251K01DL0 BNP Paribas Money Plus Fund-Reg(G) 21.10.2005 10000 24.25 0.69 1.90 3.37

INF200K01636 SBI Savings Fund-Reg(G) 14.07.2004 500 25.72 0.63 1.78 3.37

Absolute Return %

ISIN Code Scheme Name Inception Date Minimum Amount NAV 1 Week 2 Week 1 Month

INF336L01BN7 HSBC Cash Fund(G) 01.06.2004 10000 1,639.15 0.09 0.21 0.52

INF846K01412 Axis Liquid Fund(G) 09.10.2009 500 1,822.77 0.09 0.21 0.51

INF109K01VQ1 ICICI Pru Liquid Plan(G) 17.11.2005 500 243.44 0.09 0.21 0.51

INF917K01JH1 L&T Liquid Fund(G) 03.10.2006 10000 2,255.24 0.09 0.21 0.52

INF740K01QQ3 DSPBR Money Manager Fund-Reg(G) 31.07.2006 1000 2,209.48 0.11 0.26 0.53

INF109K01TX1 ICICI Pru Money Market Fund(G) 08.03.2006 500 227.45 0.09 0.21 0.51

INF204K01UN9 Reliance Liquid-Treasury Plan(G) 09.12.2003 100 4,008.20 0.09 0.21 0.51

INF277K01LQ7 Tata Liquid Fund-Reg(G) 22.05.2003 5000 3,030.71 0.09 0.21 0.51

INF767K01IS9 LIC MF Liquid(G) 13.03.2002 5000 2,978.35 0.09 0.21 0.51

INF209K01RU9 Birla SL Cash Plus(G) 30.03.2004 1000 264.10 0.09 0.21 0.51

INF204K01VA4 Reliance Liquidity(G) 15.06.2005 5000 2,475.30 0.09 0.21 0.51

INF251K01NF1 BNP Paribas Overnight Fund-Reg(G) 02.09.2004 100000 2,390.32 0.09 0.21 0.51

INF194K01VX9 IDFC Cash Fund-Reg(G) 02.04.2004 5000 1,997.64 0.09 0.21 0.51

INF740K01FK9 DSPBR Liquidity Fund-Inst(G) 22.11.2005 1000 2,349.43 0.09 0.21 0.51

INF200K01LJ4 SBI Magnum InstaCash Fund(G) 19.05.1999 5000 3,634.76 0.09 0.21 0.50

INF205K01HG7 Invesco India Liquid-Reg(G) 17.11.2006 5000 2,092.28 0.08 0.19 0.47

Liquid Funds


39

|MUTUAL FUND|

SIP FOCUS

3 Year @ Rs.5000 each 5 Year @ Rs.5000 each 10 Year @ Rs.5000 each

Inv. Amount :180000/- Inv. Amount :300000/- Inv. Amount :600000/-

Scheme Name Present value(Rs)

Return % Present val-

ue(Rs) Return %

Present value(Rs)

Return %

LARGE CAP FUNDS

Templeton India Growth Fund (G) 2,31,780.82 17.47 4,80,825.01 19.16 13,04,122.89 14.92

SBI BlueChip Fund-Reg (G) 2,23,202.15 14.77 4,79,950.23 19.08 13,46,203.21 15.51

Reliance Top 200 Fund (G) 2,23,814.60 14.97 4,75,680.95 18.71 - -

Invesco India Growth Fund (G) 2,23,047.54 14.72 4,69,203.76 18.14 - -

Birla SL Frontline Equity Fund G) 2,22,413.38 14.52 4,68,067.28 18.04 13,66,444.94 15.79

Birla SL Top 100 Fund (G) 2,20,470.55 13.90 4,67,996.10 18.03 13,41,877.57 15.45

BNP Paribas Equity Fund G) 2,20,626.38 13.95 4,65,847.61 17.84 12,82,327.88 14.60

DSPBR Focus 25 Fund-Reg (G) 2,17,563.47 12.96 4,61,133.80 17.42 - -

ICICI Pru Top 100 Fund (G) 2,23,080.48 14.73 4,56,251.55 16.98 12,76,817.47 14.52

ICICI Pru Focused Bluechip Equity Fund (G) 2,20,573.12 13.93 4,53,582.77 16.74 - -

Kotak 50 (G) 2,17,398.97 12.90 4,45,554.42 16.01 11,72,842.23 12.93

SBI Magnum Equity Fund-Reg (G) 2,14,508.11 11.96 4,39,315.27 15.43 12,18,442.20 13.65

UTI Equity Fund( G) 2,10,666.37 10.70 4,38,730.06 15.37 12,87,966.57 14.69

Franklin India Bluechip Fund (G) 2,15,418.55 12.26 4,35,230.47 15.04 12,12,211.14 13.55

FLEXICAP FUNDS

L&T India Value Fund-Reg (G) 2,49,148.08 22.74 5,93,779.45 28.02 - -

Tata Equity P/E Fund (G) 2,48,508.16 22.55 5,59,723.97 25.51 15,97,478.90 18.71

Birla SL Advantage Fund (G) 2,39,311.96 19.79 5,41,802.02 24.14 14,52,147.77 16.93

Franklin India High Growth Cos Fund( G) 2,26,757.58 15.90 5,31,494.31 23.34 - -

Birla SL Equity Fund (G) 2,38,057.84 19.41 5,31,270.09 23.32 14,55,966.67 16.98

Kotak Select Focus Fund (G) 2,36,374.23 18.89 5,19,254.87 22.36 - -

Invesco India Contra Fund (G) 2,29,970.17 16.91 5,17,858.01 22.25 15,00,840.79 17.54

SBI Magnum Multicap Fund-Reg (G) 2,33,213.61 17.92 5,14,771.20 22.00 13,48,867.34 15.55

DSPBR Opportunities Fund-Reg (G) 2,35,586.85 18.65 5,05,054.98 21.20 13,99,349.50 16.24

Kotak Opportunities Fund (G) 2,34,875.86 18.43 4,99,919.74 20.77 13,68,977.20 15.83

ICICI Pru Value Discovery Fund (G) 2,12,425.10 11.28 4,98,455.92 20.65 17,44,513.64 20.34

L&T India Spl. Situations Fund-Reg (G) 2,33,839.79 18.11 4,96,005.15 20.45 14,52,107.61 16.93

SBI Magnum Multiplier Fund-Reg (G) 2,25,503.14 15.50 4,93,199.97 20.21 13,90,608.99 16.12

HDFC Capital Builder Fund (G) 2,26,681.94 15.87 4,87,032.75 19.69 14,27,219.74 16.61

ICICI Pru Multicap Fund (G) 2,23,584.24 14.89 4,80,569.81 19.13 13,35,453.90 15.36

Franklin India Prima Plus Fund (G) 2,19,857.69 13.70 4,79,957.67 19.08 14,05,369.68 16.32

Franklin India Flexi Cap Fund (G) 2,15,018.74 12.13 4,67,820.84 18.02 13,52,686.66 15.60

IDFC Classic Equity Fund-Reg (G) 2,34,715.58 18.38 4,65,380.00 17.80 11,65,091.08 12.80

Tata Equity Opportunities Fund (G) 2,19,223.06 13.49 4,64,656.07 17.74 12,78,760.71 14.55

ICICI Pru Dynamic Plan (G) 2,22,187.68 14.45 4,58,677.88 17.20 13,30,730.98 15.30

The above listed funds are taken from the first two quartile of mutual fund analysis.


40

SIP FOCUS

3 Year @ Rs.5000 each 5 Year @ Rs.5000 each 10 Year @ Rs.5000 each

Inv. Amount :180000/- Inv. Amount :300000/- Inv. Amount :600000/-

Scheme Name Present value

(Rs) Return %

Present val-ue(Rs)

Return % Present value

(Rs) Return %

MID & SMALLCAP FUNDS

Canara Rob Emerg Equities Fund-Reg (G) 2,55,433.54 24.59 6,52,065.76 32.02 21,91,126.50 24.58

L&T Midcap Fund-Reg (G) 2,63,531.00 26.92 6,43,415.32 31.44 19,41,440.87 22.33

Franklin India Smaller Cos Fund (G) 2,48,976.81 22.69 6,38,627.89 31.12 21,27,718.04 24.03

Kotak Emerging Equity Scheme (G) 2,49,392.55 22.81 6,05,602.73 28.85 17,34,240.12 20.23

Sundaram Select Midcap (G) 2,47,984.32 22.40 5,95,933.92 28.17 18,89,312.42 21.82

HDFC Mid-Cap Opportunities Fund (G) 2,45,970.04 21.80 5,87,546.45 27.57 - -

SBI Magnum MidCap Fund-Reg (G) 2,36,162.48 18.82 5,87,263.69 27.55 17,72,003.65 20.64

Franklin India Prima Fund (G) 2,39,234.94 19.76 5,74,598.43 26.62 18,46,610.00 21.40

ELSS

Axis LT Equity Fund (G) 2,21,355.30 14.18 5,12,349.28 21.80 - -

Birla SL Tax Relief '96 (G) 2,29,166.07 16.66 5,10,296.08 21.63 - -

DSPBR Tax Saver Fund-Reg (G) 2,33,085.69 17.88 5,09,635.84 21.58 14,74,411.82 17.21

Invesco India Tax Plan (G) 2,20,794.11 14.00 4,85,150.23 19.53 14,65,193.39 17.10

Franklin India Tax shield (G) 2,18,803.42 13.36 4,76,181.52 18.75 14,29,239.27 16.63

ICICI Pru LT Equity Fund (Tax Saving) (G) 2,12,250.24 11.22 4,61,004.02 17.41 14,07,837.91 16.35

BALANCED FUND

HDFC Balanced Fund (G) 2,27,433.72 16.11 4,87,970.89 19.77 15,12,754.27 17.69

L&T India Prudence Fund-Reg (G) 2,27,557.58 16.16 4,86,939.41 19.68 - -

ICICI Pru Balanced Fund (G) 2,26,208.60 15.72 4,78,029.50 18.91 14,00,959.96 16.26

Birla SL Balanced '95 Fund (G) 2,23,701.24 14.93 4,70,564.71 18.26 13,64,942.13 15.77

SBI Magnum Balanced Fund-Reg (G) 2,14,623.52 12.00 4,55,393.70 16.91 12,63,901.66 14.33

Franklin India Balanced Fund (G) 2,14,805.66 12.06 4,51,092.89 16.51 12,44,163.16 14.04

The above listed funds are taken from the first two quartile of mutual fund analysis.


41

Aggressive Portfolio*

Category Recommended Allocation

This portfolio is ideal for investors with high risk tolerance and those who wish to gen-erate wealth over longer time horizon. Minimum investment horizon recommend-ed is 10 years. The thematic funds could be replaced by sector funds or gold on opportunity basis.

Equity Funds

Large Cap Funds 40%

Small and Midcap Funds 20%

Thematic Funds 20%

Debt Funds Income Funds 10%

Dynamic Bond Funds 10%

Moderately Aggressive Portfolio*


This portfolio has potential for higher long term risk adjusted return with downside protection aided by debt portfolio. Suited for investors with longer investment hori-zon of 7 years + or those who can shoul-der higher volatility in returns.

Equity Funds

Multi Cap Funds 30%

Large Cap Funds 15%

Mid Cap Funds 15%

Debt Funds

Income Funds 20%

Short Term Funds 10%


Moderate Portfolio*


This portfolio is ideal for investors who are new to equity investments and those who want higher tax adjusted returns compared to fixed return investments. Ideal Invest-ment horizon is 5 years+

Debt Funds

Income Funds 20%



Equity Funds Multi Cap Funds 40%

Conservative Portfolio*


For investors who cannot afford high vola-tility in their portfolio and at the same time wish to earn returns better than Fixed deposits. Ideal Investment horizon is 3 years+

Debt Funds


Income Funds 20%


Equity Funds Balanced Funds 20%

|MUTUAL FUND|

MODEL PORTFOLIO FOR DIFFERENT CLASS OF INVESTORS

* Investors are classified in to 4 groups based on their risk tolerance level, age, Objective of investment, time horizon for which they ready to park funds etc. Schemes could be chosen from our recommended list with respect to Its category. In case the investor finds that a fund is removed from the recommended list due to under performance, he/she may replace that fund with another one in the same category.


42


43

HDFC Balanced Fund CATEGORY: Balanced Inception Date 11.09.2000 AUM as on May.2017 ( in Cr) 11,748.42

Benchmark CRISIL Balanced Fund - Aggressive Index Expense Ratio# 1.87

NAV as on 20.06.2017 139.29 Risk Status Moderately High

Fund Manager Mr. Chirag Setalvad:- Mr. Setalvad has done his B.Sc and MBA from University of North Carolina. He has been managing this fund since April-2007.

Investment Dynamics This veteran balance fund has an exposure of 69.98% in to equi-ty, 30% in to debt and 0.32% in cash. This balance fund has all A+ and above rated debt instrument with longer duration in its kitty, while the equity portfolio has higher mid and small cap allocations. The fund maintains an equity exposure of 68%-72% which is higher than its peers. The fund had generated an alpha of 7.16% over its benchmark in the last one year performance. The Mid and small cap exposure helps the fund to outperform its bench mark in all periodic returns. The debt exposure of the fund act as a cushion for the fund on the market downfalls.

Portfolio Moves Being a balance fund, this had exposure to quality debt with high rating and long duration. In the equity part, last month, the fund had shown a high movement in the fund's portfolio. The fund had purchased Hexaware Technologies Ltd. The fund had increased its holdings in Vedanta Ltd.(410%),Housing Development Finance Corporation Ltd.(147%), HPCL (39%) etc. The fund had exited from Blue Star Ltd., BSE Ltd., Cadila Healthcare Ltd., Century Plyboards (India) Ltd. and Crompton Greaves.

Scheme Performance Period Returns Category SIP Returns

6 Months 17.57 15.35 22.68

1 Year 23.64 18.65 24.39

3 Year 16.20 12.93 17.36

5 Year 19.51 16.32 19.50

10 Year 15.86 11.03 17.49

Since Inception 16.99 13.57 18.00

Investment Strategy

This fund has a very big portfolio of 67 Stocks and46 bonds. The cushion of debt helps this fund to overcome the market fluctuation. This fund is suitable for a conservative investor who want to ride out volatility safely. This balance fund had outper-formed its peers and holds a permanent position in the top quartile for a long period. The fund has maximum exposure in Banks, Refineries and Engineering - Construction. All these top sectors have a positive sector outlook. This helps the fund to generate a higher alpha in the long run.

Sector Wise (%) Company Wise (%)

Other 14.4 HDFC Bank Ltd. 5.45

Bank - Private 13.7 Reliance Industries Ltd. 3.48

Unspecified 8.8 Larsen & Toubro Ltd. 3.45

Bank - Public 7.6 ITC Ltd. 3.30

Refineries 5.3 ICICI Bank Ltd. 3.24

Engineering - Construction 5.0 State Bank Of India 2.73

Finance - Housing 4.5 Tube Investments Of India Ltd. 2.36

Cigarettes/Tobacco 4.0 Infosys Ltd. 2.15

IT - Software 3.9 Power Grid Corporation Of India Ltd. 2.13

Finance - NBFC 2.9 Voltas Ltd. 2.02

Top 10 Holding Risk Reward Measures (%) One year data Category Range

Standard Deviation* 0.55 0.39 - 0.68

Sharpe 0.14 0.07 - 0.18

Information Ratio*** 0.08 0. 02 - 0.09

* Measures the risk, lower the better.

** Measures the excess return (over risk free rate) per unit of risk, higher the better.

*** Measures the consistency of a fund manager in beating the benchmark, higher the better.

The expense ratio is the total fee charged by the fund. It is expressed as a percentage of total assets. #


44

Motilal Oswal MOSt Focused 25 Fund CATEGORY: Large Cap Inception Date 13.05.2013 AUM as on May.2017 ( in Cr) 569.01 Benchmark NIFTY 50 Expense Ratio# 2.63


Fund Manager Mr. Siddharth Bothra :-Mr. Bothra has done his Post Graduate Program (PGP) from Indian School of Business (ISB), Hyderabad. He has been managing this fund since Nov 2016.

Investment Dynamics This Young Large cap Fund holds 99.05% in equity and 0.95% in debt. In its equity portfolio, most focused 25 Fund holds 80.72% in large cap and 19.28% in Mid cap. The fund does not have exposure towards small cap stocks. The fund remains almost fully invested in equity with allocation to cash less than 2%.Even if the fund is young, the fund has shown strong performance in this short period of time. The fund had out performed its bench-mark in almost all periodic returns. On the one-year daily rolling return basis, the fund had outperformed the benchmark almost 80% of the time. In its three years of performance, the fund had generated an alpha of 9.22% over its benchmark.

Portfolio Moves The mandate of the fund requires a compact portfolio of less than 25 stocks, while the fund currently holds only 19 stocks. So, the portfolio movement of the fund is comparatively less. The fund did not purchase any new stocks last month, but it had increased the holdings in Housing Development Finance Corporation Ltd. (57%),Container Corporation Of India Ltd. (44%),Godrej Industries Ltd.etc. and reduced the holdings in Lupin Ltd. (-47%) and Hindustan Petroleum Corporation Ltd (-20%).

Scheme Performance

Period Returns Category SIP Returns

6 Months 24.00 20.35 26.68

1 Year 27.93 22.11 27.39

3 Year 17.90 12.52 17.20

5 Year - 16.13 -

10 Year - 10.63 -


Investment Strategy

This fund holds a very small portfolio of 19 stocks which helps in focused investing. It adopts growth investing strategy while se-lecting the portfolio. This fund is suitable for an investor who looks for a less volatile large-cap fund and seeks to play safe. As the portfolio of the fund is small, the investment concentration on each shares are high. The Private Banks, Refineries and Automo-biles - Passenger Cars holds top three position in the sector allo-cations. All the three sectors have a positive future outlook which help the fund to maintain its performance and generate more alpha to outperform its benchmark


Bank - Private 23.2 Maruti Suzuki India Ltd. 9.73

Refineries 9.9 HDFC Bank Ltd. 9.57

Automobiles - Passenger Cars 9.7 Kotak Mahindra Bank Ltd. 9.14

Finance - Others 8.6 Max Financial Services Ltd. 8.56

Finance - Housing 7.5 Housing Development Fi-nance Corporation Ltd. 7.48

Insurance 6.5 ICICI Prudential Life In-surance Company Ltd. 6.45

Automobile Two & Three Wheelers 5.4 Indian Oil Corporation Ltd. 5.84

Engineering - Industrial Equipments 5.3 Eicher Motors Ltd. 5.39

Consumer Food 4.6 Bosch Ltd. 5.30

Logistics 4.0 Britannia Industries Ltd. 4.57



Sharpe 0.15 0.07 - 0.15

Information Ratio*** 0.13 -0. 04 - 0.14






45

Invesco India Contra Fund(G) CATEGORY: Flexi Cap

Inception Date 11.04.2007 AUM as on May .2017 ( in Cr) 526.85 Benchmark S&P BSE 500 Expense Ratio# 2.31


Fund Manager

Mr. Taher Badshah & Mr. Amit Ganatra:-Mr. Taher Badshah has done B.E (Electronics) and MMS (Finance) from University of Mumbai. He has been managing this fund since Jan-2017. Mr. Ganatra is a B.Com (H), Chartered Accountant and CFA.. He has been managing this fund since Aug-2012

Investment Dynamics This consistent performer has 97.05% exposure in equity, 2.54% in debt and 0.41% in cash. Out of the equity exposure, this fund had invested 63.44% in Large caps, 24.67% in Mid caps and 11.89% in small caps. The fund had given higher returns than its benchmark in almost 80% of time for the last 5 years. This was possible through the fund managers’ ability to time the entry and exit in the market. The fund had generated an alpha of 6.6% over its benchmark in the 3 years performance. The 5 year re-turns of the fund had out-performed its benchmark with a high margin. The fund follows value based approach of investment style.

Portfolio Moves The contra fund holds a small portfolio of 40 stocks. This fund has relative high movement in the portfolio. Last month the fund had purchased ICICI Bank and J K Cements. The fund had also increased its holdings in Axis Bank (149%), Coromandel International Ltd.(80%), DCB Bank (54%),Sun pharma (24%) etc. Meanwhile, the fund had exited from Balrampur Chini Mills Ltd., CG Power & Industrial Solutions Ltd., Housing Development Finance Corporation Ltd. and JSW Energy Ltd. The fund had reduced its holdings in Hero MotoCorp Ltd.


6 Months 23.26 22.84 25.79

1 Year 26.70 26.27 26.81

3 Year 18.69 17.08 19.08

5 Year 22.28 20.42 21.94

10 Year 14.08 12.34 -


Investment Strategy The fund pursues a blended investment strategy by investing both in value and growth stocks. This fund is suitable for an equity investor with a higher appetite for risk and a long term invest-ment horizon. The private bank, IT and Automobiles holds the top three positions in the sector allocation. Around 40% of the fund's investment concentrates in this top three sectors. The effect of GST helps in reducing the cost of manufacturing, thus boosting the Passenger Cars sector and giving positive outlook to that sector. On the other side, private banks having a positive outlook will also help the fund to hold its performance in the long term. had generated in the past.


Bank - Private 20.3 HDFC Bank Ltd. 7.36

IT - Software 11.1 Maruti Suzuki India Ltd. 6.38

Automobiles - Passenger Cars 8.0 ICICI Bank Ltd. 5.54

Finance - NBFC 4.6 Infosys Ltd. 5.53

Finance - Housing 4.3 Axis Bank Ltd. 5.48

Engineering - Construction 4.3 LIC Housing Finance Ltd. 4.31

Automobiles-Trucks/Lcv 4.0 HCL Technologies Ltd. 4.30

Industrial Gases & Fuels 3.8 KEC International Ltd. 4.29

Household & Personal Products 3.5 Tata Motors Ltd. 4.02

Batteries 3.1 GAIL (India) Ltd. 3.85


Standard Deviation* 0.87 0.58-1.00

Sharpe 0.10 0.04 - 0.17







46

ICICI Pru Dynamic Plan (G) CATEGORY: Flexi Cap

Inception Date 31.10.2002 AUM as on May.2017 ( in Cr) 6,516.71 Benchmark NIFTY 50 Expense Ratio# 2.14


Fund Manager Mr. Sankaran Naren & Mr. Ihab Dalwai:- Mr. Naren has done B.Tech from IIT Chennai and MBA (Finance) from IIM Kolkata. He has been associated with this fund since Feb-2012.Mr. Dalwai is a Chartered Accountant. He has been associated with this fund since Jun 2017.

Investment Dynamics

This defensive flexi cap invests 81.01% in equity and 22.89% in debt. Out of the equity portion, the fund have 65.43% exposure towards large caps, 27.36% in mid cap and 7.21% on small cap companies. This fund has an inherent defensive character of reducing equity exposure, when the market runs up and valua-tion seems stretched. The fund manager uses top-down views while selecting the shares in this portfolio. He also ensures that the fund performs better than the peers when the market falls. This is clearly visible in the since inception returns of the fund. Over the last three years, the equity exposure has ranged be-tween 72-95 per cent.

Portfolio Moves This fund has an investment approach of regular profit book-ing and rebalancing of the portfolio. Last month, the major purchases of the fund were Equitas Holdings Ltd., Idea cellu-lar Ltd., Infosys Ltd and Vedanta Ltd. The fund had also increased its holdings in NTPC Ltd (143%), Axis Bank Ltd (83%),Sun Pharma (80%), Apollo Tyres Ltd (76%), Bata India Ltd (72%). The fund had exited from Bharti Infratel Ltd, Endurance Technologies Ltd, HDFC Bank, ICICI Bank, ITC, SBI, M&M Ltd. The fund had also reduced its exposure to BPCL (-91%), Castrol India Ltd. (-52%).

Scheme Performance

Period Returns Category SIP Returns

6 Months 15.13 22.84 21.59

1 Year 25.51 26.27 24.98

3 Year 12.22 17.08 15.09

5 Year 18.06 20.42 17.17

10 Year 12.87 12.34 15.07


Investment Strategy This fund follows a defensive investment strategy which is suita-ble for an investor having a medium risk appetite, who wants stable returns with lower volatility. The fund manager picks stocks that have the potential to become a multibaggers in future. In the equity part, the fund has major exposure towards Private Banks, Power generation and distribution and IT sectors. The banking sector continues to prefer private banks over PSU Banks which have continuous positive outlook. The IT sector having a neutral outlook are currently undervalued and likely to be an under performer in near future. ad generated in the past.


Unspecified 17.8 Bharti Airtel Ltd. 5.97

Bank - Private 11.7 ICICI Bank Ltd. 5.76

Power Generation/Distribution 9.0 Power Grid Corporation Of

India Ltd. 5.43

IT - Software 8.2 07.61% GOI - 09-May-2030 5.06

Pharmaceuticals & Drugs 7.6 Honda Motor Co Ltd. 4.73

Telecommunication - Service Provider 5.8 Tata Chemicals Ltd. 4.56

Fertilizers 4.6 07.59% GOI 2026 4.16

Metal - Non Ferrous 4.4 Tata Steel Ltd. 3.69

Finance - NBFC 4.3 Infosys Ltd. 3.00

Steel & Iron Products 3.7 Cipla Ltd. 2.93



Sharpe 0.14 0.04 - 0.17







47

Kotak Emerging Equity Scheme (G) CATEGORY: Mid Cap

Inception Date 30.03.2007 AUM as on May.2017 ( in Cr) 1,956.14

Benchmark S&P BSE Mid-Small Cap Expense Ratio# 2.11


Fund Manager Mr.Pankaj Tibrewal:-Mr. Tibrewal has done B.Com (H) from St.Xavier's College Kolkata and MBA (Finance) from Manchester University, U.K. He has been managing this fund since May 2010.

Investment Dynamics The Kotak Emerging equity fund holds 95.16% of its portfolio in equity and balance in debt. Out of the equity portfolio, the fund holds 15.8% in large caps, 65% in Mid caps and 19.19% in small cap companies. The fund maintains an equi-ty allocation ranging between 90-98% all the times. This Mid cap fund had out performed its benchmark in all the periodic returns. The fund had generated an alpha of 18.56% over its benchmark returns in three year period. The fund managed to beat the benchmark more than 90% of the times on a rolling one year return basis for the past five years.

Portfolio Moves

This Mid cap fund had shown high portfolio movement last month. The fund had added Jubilant Foodworks Ltd. to its portfolio last month. The fund had also increased its holdings in Bata India Ltd.(59%),Eveready Industries (India) Ltd (49%), Torrent Pharmaceuticals Ltd.(46%),Shriram City Union Finance Ltd.(25%) etc in the last month. The fund had exited from PVR Ltd and Alkem Laboratories Ltd, it had also reduced its holdings in Finolex Industries Ltd.(-33%),Maharashtra Seam-less Ltd. (-15%),Sheela Foam Ltd.(-14%) etc.


6 Months 25.17 25.79 28.44

1 Year 30.18 30.41 32.29

3 Year 27.05 21.39 26.36

5 Year 27.65 25.14 28.25

10 Year 12.57 13.62 -


Investment Strategy

This fund aims to generate long-term growth by investing in equity and equity related instruments which is suitable for a high risk appetite investor who have a long term fund horizon. The Private Banking, Finance - NBFCand Pharmaceuticals& Drugs holds the top three positions which holds more than 25% of the fund's portfolio. The private banks and the Finance- NBFC holds a positive sector outlook which can help the fund to gen-erate high alpha. The Pharma sector, which is currently under-valued will help in capital appreciation of the fund in long term horizon.


Bank - Private 10.40 IndusInd Bank Ltd. 3.49

Finance - NBFC 8.90 FAG Bearings India Ltd. 2.96

Pharmaceuticals & Drugs 6.30 The Federal Bank Ltd. 2.57

Bearings 4.70 Apollo Hospitals Enterprise Ltd. 2.45

Engineering - Industrial Equipments 4.60 Motherson Sumi Systems

Ltd. 2.42

Chemicals 4.50 Atul Ltd. 2.35

Other 4.30 Navneet Education Ltd. 2.26

Printing And Publishing 3.90 Strides Shasun Ltd. 2.18

Consumer Durables - Domestic Appliances 3.50 Solar Industries (India)

Ltd. 2.12

Cement & Construction Materials 2.7 Finolex Cables Ltd. 2.10



Sharpe 0.13 0.06 - 0.17







48

PAN - INDIA OFFICE NETWORK

ANDHRA PRADESH: Branches: Ananthapur: 08554-274507, 08, 09, 09393222966, Bhimavaram: 08816-221014,15, 09396221014, Chirala: 08594-233627, 628 , 629, 09391151071, Chittoor - Andhra Pradesh:08572-233971, 72, 9396503632,Gajuwaka Main Road: 0891-2549347, 48, 49, 09393925961: Governorpet: 0866 - 2578084,86, 87, 09346841411, Guntur: 0863-2331063, 64, 65, 6533775, 76, 09346697094, Kadapa:08562-245773, 74, 75, 76, Kakinada: 0884 - 2344491, 92, 93, 9392333039, Kurnool: 085818-228831, 32,33, 08008993217, Nandyal: 08514-225987, 88, 89, 09346682244, Narasaraopet:08647-223134, 35, 36, 38, 9396272677, Nellore: 0861-2311697, 2311712, 735, 736, 9347112168, Ongole: 08592 222010,11,12, 09959022564, Rajahmundry: 0883-2448635, 36,37, 9396418771, Station Road – Kavali: 08626-244104, 5, 6, 7, 09393239991, Tenali: 08644 -220120, 450, 221860, 840, Tirupati: 0877 - 2220882, 84, 2220879, 8008238872, Vijayanagaram: 08922 - 220163,4, 5, 09346220829, Vijayawada: 0866-6647995, 98, 09346623964,Visakhapatnam: 0891 - 2717351, 52, 53, 09391288980. Business Associates: Nandyal- Opp. Govt Hospital: 08514 249003; Chodavaram: 08934 245088, 08121742700, 9059909089, 9133682124, 9133682126; Visakhapatnam - Diamondpark Road: 08916666242; Ongole- Gupthas Square Complex : 08592 283010 / 20 BIHAR: Branches: Patna: 0612-2216842, 43, 44, 45, 7091099399 GOA: Branches: Margao: 0832 2712696, 693, 2736576, 09326112251 GUJARAT: Branches: Ahmedabad – Motera: 079- 23298586, 87, 23294323, 09377642325, Ahmedabad-Shahibaug: 079- 22862522,23,22862535,09377625885, Ahmedabad –Ambavadi: 079-40024925, 40024926,26441410, 26441425,09327974007, Anand: 02692-246931,34,32,33, 09375769982, Bharuch: 02642-226998, 858, 807, Jamnagar: 0288-2553369 , 0288-2553370,028, Junagadh: 2620386, 9974092324, Karelibaug– Vadodara: 0265 -2780541, 2780542, 2780543, 9377579787 , Navsari: 02637- 233472,233473, 233474,233475; 9099053861, Rajkot-Moti Tanki Chok: 0281-2221722, 23, 24, 25 Surat - Empire State Bldg: 09327974008, 0261-2479661, 2479662, 2479663, 2479664 ,Vadodara - R C Dutt: 0265-2324586, 2354326, 2354091, 2351795, 9099053872 , Valsad :02632 - 245901, 245902, 245903, 09377501506. Business Associates: Keshav Baug: 09898088987; Mehsana: 02762-220314, 02762- 223594, 02762-220708,09824434378, 09925938517; Vadodara - Sarabhai Compound: 0265 2336720 ,21 ,23 ,24. HARYANA: Branches: Faridabad: 0129-4142250, 0129-4142251, 0129-4142252,09312199172, Gurgaon: 0110124-2566238, 2566239, 2566240, 4105747, 4257712, 09910025558 . JAMMU & KASHMIR: Branches: Jammu: 2474163, 2474164,9906069423. JHARKHAND: Branches: Dhanbad: 0326-2302405, 06, 07,09304127514, Jamshedpur: 09386708146, 0657- 2233734, 2442983, 2442984, 985, Ranchi: 0651-2331401, 2331403, 04, 09234611160. KARNATAKA: Branches: Bagalkot: 08354 222557, 222558, 222566, 09341124272, Banashankari: 080-26690875, 26690401, 26691241, 9591996180, Bangalore: 080 40429999, 40984621, 40984070, 9341980773, Basavangudi: 080 - 26676121, 26676181, 26611243, 26676141, 09980114690, BC Road: 08255 230767, 230769, 9343350687, Belagavi: 09342209326, 2402128, 2402131, 2402156, 2422153, 2422154, Bellary: 08392 – 255393, 94, 95, 09342682887, Bhatkal: 08385 224062, 224063, 226482,226483, 09741329922, Bidar: 08482-222652, 53, 54, 07483185238, Bijapur: 08352-242714, 242715, 242716, 240407 ,240408,9343583006, Chickmagalur: 08262 234892, 93, 94, 233564, 230418, 09343574542, Chitradurga: 08194 223254, 74, 221270, 71, 09342311341, Davangare: 08192 253671, 08192253575, 08192 253576, 7338461961, Dharwad: 0836 2790031, 2790032, 2790033,9341240048, Frazer Town: 080 25564350,080 25564351,080 25564352, 09341238420, Gadag: 09342808978, 274550, 274551, 274552, 252550, 250250, Gulbarga Town: 08472-272940, 08472-272941,9379844033, HAL Airport Road: 080 25231243, 25231286, 25231254, 09341051088, Hassan: 08172 233609, 610, 233652, 7760686146, HSR Layout: 080-25723451, 52, 53, 9341225709,Hubli: 0836 2353371, 72, 73, Indiranagar: 080 25252831, 32, 25252823, 25252841,09343706936, Jayanagar: 080-26530311,12, 13, 14, 15, 16, 17, 09343706746, Koramangala:080 - 25503462, 25500232, 25503273, 41303691, 9343706783, Majestic: 080 22340067, 68,09341114190, Malleswaram: 080 -23360980,81, 82, 84, 09343706756, Mangalore: 0824 2444531, 2426158, 2446024, 2441535, 2441542, MangaloreCity: 0824 2221434, 2221435, 2223881, 2223873, Mercara: 08272 221671 221672 220672 220441, 07022255332, Mysore –Saraswathipuram: 0821-2344816, 2344817, 2344818, 2344819, 09342183451, Mysore - V V Mohalla: 0821 2516519, 2415050, 2519309, 2517719,Raichur: 08532 226925, 226926, 226927, 09379059007, Rajaji Nagar: 080-23109739, 23109745, 09341805767, Rajarajeshwari Nagar: 080 28606326, 28606327, 09108028854, Shimoga: 08182 271905, 08182 271901, 225597, 09343310824, Tumkur: 0816 – 2285651, 52, 53, 09379222011, Udupi Town: 0820-2529689, 2528269, 2527689, 9740189922, Whitefield: 08028456665, 08028455082, Mob : 9663125104, 9663125104. Business Associates: Ankola: 08388 – 232353, 232255, 232455, 231522, Banashankari BDA Complex: 080 26715410, 26715460, 09379337789, 9972099978, BTM Layout – Bangalore:080 41506462, 63, 09845730404, Channarayapatna: 08176 - 252161, 09242461911, 09242624222, 8884870989, Gangavati: 08533 234406, 07, 09916136294, 09916134294, Gulbarga: 9448477078, 08472 324613, Honavar: 08387 221804, , 8904973288, 9972191924, Haveri - Shivajinagar: 08375 233363,8861308596; Ilkal: 09901903375, 08351-271494, Jalahalli Cross: 080 41228351, 40903157, 40903149,09886718394, Jayanagar 9th Block: 080 41301711, 09343509764, Kammanhalli: 080 41330045, 41330046, 41330048, 41330049, 41330047, 9341066950 Kengeri Satellite Town: 080 28486202, Koppal: 231402, 231202, 9886716394, Kushal Nagar- Manglore:08276 272756, 274134, 09448108364, Mangalore - Presidency Zone-1: 0824 2444521,9480974005; Mangalore Town: 0824 2430120, 4288120,9342699120, Marathahalli: 08064522596, 42132181, 09342552077, 09341037912, New BelRoad: 080 23519633, 23519644, 09243164208, Puttur: 08251-231285, 09449801285, 09449818285, R T Nagar: 115, Sahakara Nagar: 080-48536117, 23620778,79, 8546970778 Sarjapur Road: 080-28440711, 28440712, 9886483496, 9845294327, Udupi: 0820 4295656, 4295894, 9845314134, 9916314944,Vidyaranyapura – Bangalore: 080 23646724, 41626004, 9448052835, Vijayanagar: 8884242429, 08023204282, 08023204293 , Yelahanka: 08041538197, 28561934, 08088038009. KERALA: Branches: Alapuzha: 0477 2252605, 2252607, 2264853,9995800090, Alwaye: 0484-2630568, 2621205, 2620445, 2624404, 2630796 , 9995800065, Alathur-Palakkad: 04922-225786,226786,9995855786 Anchal: 0475 - 2270175/76,2270458/59, 9995800120, Angamaly : 0484-2454793, 2454792, 2454791, 9995800142, Attingal-Trivandrum: 0470 2622120, 2622130,2621020, 9995800072, Calicut: 0495 2722387, 2722388, 9995800089, 2723137, 2723237, 2723969, Calicut Nadakkavu: 0495- 2761430, 2761431, 2761432, 9995800081, Chalakudy: 0480 2705048, 2700248, 2709048, 2709095, 9995800092 Changanacherry: 0481- 2429091, 2400294,9995800084, Chittur-Palakkad: 0492 3224591, 3222292, 9995806381, Edapal: 0494 -2689402, 2689404, 9995806385, Edappally: 0484-4014281, 282, 283, 9995800049, Erattupetta: 04822-275993, 275994, 275995, 09995800048, Guruvayoor: 0487 2551798, 2550238, 2555460, 2557775, 9995800061, Hni Kochi: 0484- 2380182 2380189 2363262, 9995800135, Hni Trivandrum: 0471 2539668, 69,

Infopark – Kochi: 0484-4061991, 4061990, 4023041, 9995800051, Irinjalakuda: 0480 2827734, 2826735, 2829566, 2820111, Kaduthuruthy: 04829 322800, 801, 284299, 9995800083, Kaloor: 0484-4046512,13, 2533416, 9995800069, 2534568, Kaloor MES Building: 0484 2405227, 2405229, 9995800425, Kanhangad: 0467- 2200731, 2200733, 2200735, 9995800952, Kanjirapally: 04828 – 204912, 204914, 204172, Kannur: 0497 2712101, 02, 03, 2761127, 2761276, Kannur - Fortlight: 0497 2761018, 2768215, 2761514, Kasaragod: 04994 -225245, 225497, 226868, 9995800106, Kattappana: 04868 274783 , 250708, 9995808272, Kochi: 0484-2355325, 2355327, 2355328, 2350971, 2369074, 2370138, Kolenchery: 0484 2760090, 2761381, 9995800738, Kollam: 0474 2745171, 2746552, 2745706, 2764126, 2763618, 2769081-84,9995800060,Kollam 2 – Bishop Jerome Nagar: 0474 2768085, 86, 87,9995800071. Kottakkal: 0483-2741501, 2741502, 2741503, 3203221 , 9995800078, Kottayam - K K Road: 0481 2567646, 2565311, 2301163, 2303548, Kottayam – Nagampadom: 0481 2561145, 46, 47, 48, 9995800075, Kottiyam: 0474 2534093, 89, 2534070, 9995800150, Kozhikode: 0495 2727944, 2724170, 2720132, 3261013, Mala: 9995800077, 0480- 2897700, 2897701, Malappuram: 0483-2735880, 2735881, 2, 9995800156, Mallappally: 0469-2681394, 98, 2681474, 09995800121, Manjeri: 0483-2769011, 2769022, 2769033, 9995806538, Mattancherry: 0484 - 2227337, 7388, 2224688, 4188, 2211391, 2225840, 9995800063, Moonupeedika: 0480-2836980, 2836990, 2836970, 9995800076, Muvattupuzha: 0485- 2835753, 2835795, 2835798, 2835925, 9995800136, Neyyattinkara: 0471-2220844 ,2220944, 2221044, 9995800149, Nilambur: 04931- 221171, 221864 , 221885, 9995800074 , Pala: 0482 - 2210471, 2211071, 2216245, 46, Palakkad: 0491- 2544576, 2544580, 2544571, 9995800054, Palakkad - Stadium Byepass Road: 0491-2533312, 2533313, 9995800070, Pala- rivattom: 0484 2334208, 2348111, 2533390, Pathanamthitta: 0468 2326243, 2326244, 2228486, 2270172, Payyannur : 04985 201901, 02, 03, 9995800147, Piravom: 0485 2243388, 2243988, 9995800041, Ponnani: 0494-2664907, 2664919, 2666808, 9995800073, Sulthan Bathery: 04936 226175, 227411, 224151, 9995800119, Talasserry: 0490 2344511, 2344512, 2344513, 9995800094, Techno Park – Thiruvananthapuram: 9995800068, 0471 2527635, 636, Tha-marasseri: 0495 2225425, 26, 27, 9995800117, Thiruvalla: 0469 2604455, 2634425, 3206887, 2607305, 2636051, Thiruvananthapuram: 0471- 2467710, 2467720, 2467730, 2467726, 2466584, 9995800093, Thrissur – Punkunnam: 0487 2385072, 74, 76, 9995800099, Thrissur - Round North: 2322826, Thrissur - Round South: 459, 2429810, 11, 2427465, 66, 2430016-19, 2427458, Trissur - Kokkalai: 0487-2442803, 2442804, 05, 2440973, 2423141, Trivandrum Karamana: 0471 2348165, 66,67, 69, 9995800141, Vadakencherry: 04922- 254249, 254250, 254251, 9995800151, Valanchery– Kozhikode: 0494- 2642220, 2642440, 2642660, 9995802149, Varkala: 0470-2611706, 09, 9995800067, Vatakara: 0496 2515783, 84, 9995800625, Vytilla: 0484- 2306036,2306049, 2307774, 2302142, Wadakanchery: 04884-232250, 236050, 231611, 9746111187 Business Associates: Adoor: 04734- 220940, 226307, 9447560081, Angamaly - Church Junction: 0484 - 2456777, 2457444, Athirampuzha: 0481- 2730198, 2730399, Ayyappankavu – Ernakulam: 0484- 2392820, 2391840, 3001006, 9846279195, Bank Junction - Aluva: 0484- 2620962, 9447578610, Calicut - Malabar Gate: 0495- 4050918, 4060461,9895779945, 9447736040, Chavakkad: 0487 - 2502000, 9746760006, Chengannur: 0479- 2457544, 2457545, 9447971343, Cherpu: 0487 2343494, 9946662494, 9895245201, Cherpulassery -Trichur: 0466 2284054, 2284550, 94473 80233, 9447939434, Cherthala: 0478- 2811877, 9447089891, Cherupuzha: 04985- 240145, 240132, 9495097923, Civil Station Calicut: 0495-2371116, 3253303, 9249122799, Elamakkara: 0484 - 4020969, 2340969, 9497668001, Ernakulam – Kadavanthara: 0484- 2324366, 9496305566, Ettumanur: 0481-2531924, 2531925, 9142051267, Haripad: 0479- 2410960, 2410961, 9645090257, Irinjalakuda – Chanthakunnu: 0480-2833390, 9895880671, Iritty: 0490 - 2494522, 2494523, 9447721122, 9447290050, Kakkanad: 0484- 2428353, 2428354, 9447125354, Kalamassery: 9995824886, 9744793339 , 9895013589, Kaloor - Katrikadavu: 0484 3200525, 9847325023, Kalpetta: 04936 204670, 205452, 205771, Kanhangad: 0467 2209322, 2209625, 2207878, 2207910, 9447086822, 9495986822, Kannur Town: 0497 2701570, 9400501571, 9446337789, 9656107789, 8891965789, Karukachal: 0481 2486529, 9447087229, 9446516529, Karunagappally: 047- 2622192, 2620139, Kattappana - Ozhukayil Complex:04868- 274977, Kizhakkambalam: 0484- 2684632, 2684628, 9446062562, Kodakara: 0480-2622502, 9072741633, 9995695469, Kodungallur: 0480- 2808298, 99, 9447259640, Konny: 0468- 2340701, 3290368, 2248883, 9447074708, Koonammavu: 0484 2512919,6512919, 9567652919, 9446135128, Koothattukulam: 0485- 2250461, 2881272, 9745050642, Kothaman-galam: 0485- 2824023, 2828874, 2827401, 9447267063, 9745768034, Kottarakara: 0474- 2452166, 2450244, 9446556148, Kottayam - Star Junction: 0481- 2561926, Koyilandy: 0496 - 2620099, 8086161216, Kozhencherry: 0468- 2210083, 2210641, 8606012179, 9847314385, Kumbanad: 0469- 2663474, 9847365760, Kunnamkulam-Harvest: 04885- 210762, 210412, 210449, Kurisumood:0481- 2728034, 2728033, 2728035, 09447087229, Manarcad – Kottayam: 0481- 2371267,9946832777, Manjapra: 0484 2692544, 9446128473, Mannarkkad: 04924-225556, 225656, 9745005638, 9745006238, Mavelikara: 0479-2340353, 2301343, 9447971343, Mukkam: 0495 - 2298467, 9846297894, Muvatupuzha: 0485-2833501, 2834026, 2832269, 9847221711, Nemmara: 04923 244220, 244340, 9496838029, 9847263902, North Irinjalakuda: 0480- 2825031, 3259370, 94462 32417, North Paravur: 0484- 3290887, 3260887, 4062023, 9349124767, Ottappalam: 0466 - 2247702, 2247703, 2249554, 2249664, Pala - Ambady Complex: 04822-216399, Palakkad - Chittur Road: 0491- 2536673, 2536674, Palakkad Jrs: 0491- 2533125, 126, 127 Panampilly Nagar: 0484- 2317887, 2317888, 9544700210, Pandalam: 04734252607, 9495823023, 9495823023, Pathanapuram: 0475-2353553, 9400892704, 9400654917, Pattam: 0471-2545521, 2545523, 9447427427, Pattambi:0466- 2212640, 2212641, 2211536, 2211537, 9846060299 , Payyannur: 04985- 201922, 201933, 201122, 9447781122, Penta Menaka: 0484 2323232, 2323231, 2323630, 2323631, 9388800188, Perinthal-manna: 04933 227975, 325075, 9446767004, 9446767005, 9249901122, Perumbavoor: 0484-2590689, 9809820010, 9809820100, 9562143334, 9447433316, Punalur: 0475 2227556, 8547879132, Quilon Ashramam: 0474-2797940, 9895773259, 9349835356, Ravipuram: 0484-2364172, 2364271, 4028267, 9745678777, Shornur: 0466-2222595, 9846030269, 9567790269, Thaliparamba: 0460-


49

2204632, 2208794, 2204357, 09249992448,Thaliparamba Bazar: 0460- 2204437, 9846994444, Thiruvankulam: 0484– 2787180, 7077, 7977, 9447164942, 9605109990, Thodupuzha: 0486- 2225263, 2229561, 2229562, 2227232,Thriprayar: 0487 2394545, 3242535, 9567699419, Thrissur – Kuriachira: 0487- 2252307, Thrissur - M.G.Road: Thrissur - Pallikulam Road:0487- 2440457, 3254514, 9847946972, Thrissur Ambaloor: 0480-2757226, 2757227, 32911,9387828851, Thrissur- East Fort: 0487- 2426507, 9446576505, Thrissur Harvest: 0487- 2330071,72, 2330496, 7034707200 Tirur: 0494- 2431943, 9995894699, 2420414, 2420124, Tripunithura: 0484- 2778828, 6519157, 9447083130, 9447708726, Trivandrum – Kumarapu-ram: 0471- 4064164, 9645879326,Trivandrum – Sasthamangalam: 0471- 3010405, 9946996002, Trivandrum, East Thampanoor: 0471- 4060329, 3021229, 7293786987, 9633200329, Vada-nappilly: 0487- 2604321, 2601116, 2604737, 9495462737, Vaikom: 04829- 223674, 9447011244, Vatakara: 0496-2513241, 2523496, 09995177955, Vazhakkala: 0484- 2428599, 2428799, 9995808140, Vengara: 0494- 3215353, 9995894599. MADHYA PRADESH: Branches: Bhopal: 09981500822, 0755 - 4083979, 4083973, 4083655, Indore-Sapna Sang eeta: 0731- 2572204, 2571104, 4020889, 4020890, 9752501444, Indore-Y N Road: 0731 -2547224, 2547225, 4245318, 4249021, 09893026647, Jabalpur: 7869915368, 0761-2481002, 2481003, Rewa: 07662- 254166, 254167, 254168, 7024100751, Sagar - Civil Lines: 9893101067, 0758 2227405, 2227406, 2227407, Ujjain: 0734 - 4071528,4061853, 4061674, 9981524244. Business Associates: Khandwa: 0733 - 2223822, 2225822, 9685036222. MAHARASHTR: Branches: Ahmednagar: 0241 - 2452360, 2452362, 2452363, 2452364, 7028919036, Andheri East: 022-30082222, 23, 24, 25, 26, 27, 28, 29, 09323104455, Andheri West: 022 26239300, 26200188, 26200154, 26239200, 09323814937, Aurangabad: 0240- 2350390, 2350391, 2350392, 2343650, 7028919031, Bandra: 022-26465144, 26465145, 46, 26001572, 74, 75, 78, 09324276147, Borivili: 022-28989161, 62, 63, 64, 65, 09322302142, Chembur: 022-25253027, 25251072, 25250082, 25251067, 25257449, 25256188, 08452048069, Dadar– Prabhadevi: 022- 24384816, 24382909, 24383198, 09322302145, Dhule: 02562-222284, 222484, 7028919032, Fort Mumbai: 022-66368911, 66368912, 09323814935, Ghatkopar – West: 022 – 25117632, 33, 34, 35, 36, Goregaon: 022 - 28425880, 28423455, 28428548, 9322880135, Jal- gaon: 0257- 2237656, 2237657, 2237658,7028919035, Kalyan – Dombivili:0251- 2863446, 2863465, 2862866, 2863206, Kandivali East: 022-28460200, 28460204, 28846106, Karad: 02164 229730, 229732, 229733, 9860717438, Kolhapur: 0231-2520794, 2520974 , 6679101, 110, 09370329889, Mulund: 022 25927316, 25920563, 09322302146, 25905029, Mumbai: 022 26193813, 26193823, 26100435, 09322660241, Mumbai-Powai: 022 25717107, 25717108, 093223 02144, Nagpur: 0712 6559714, 6587784, 7028919037, Nanded: 02462 - 245546, 245547, 7028919034, Nasik: 0253-2575505, 2575506, 2580116, 2580245, 7028919039, Nasik Road: 0253-2453657, 2453658, 7028919038, Nerul: 022 27700559, 27700569, 27700579, 09320822655, Pune Camp: 020-26332985, 26332986, 26332987, 9325503023, Pune Chinchwad: 020 - 27442281, 27442282, 27442283, 9373777121, Pune Deccan: 020- 25533136, 25532582, 25532583, 09372738393 Pune Marketyard: 09372633033, 24261556, 24261564,Ratnagiri: 02352 271104, 271105, 271106, 271107, 09373466064, Sangli: 0233-2326281,2326282, 09326651235, Satara: 02162 228161, 228162, 228163, 228164, Sholapur: 0217-2316479, 2316303, 9370009957, Sion: 022 24042010, 24042011, 24042012, Thane: 022 –25438882, 25437974, 25422190, 25422191, 25454510, 25392112, 25392127, Ulhasnagar:0251-2560763, 2560752, 2560768, 9324966198, Vashi: 022-67911596, 67911597, 67911598,09323814936, Zaveri Bazar: 022-22095001, 22095003, 22095004, 22093001, 22093002. Business Associates: Diamond Garden – Chembur: 022 25247021, 022 25297518, 09820290855, Fort – 2: 022 - 22631371, 22631372, 098202 91774, Kolhapur City: 0231 2667030, 2667040, 2667050, 2667041, 2667051, 9326630060, L&T Capital Company Limited: 022- 22 67372852, 09820190742, Malad: 022 28822132, 28822142, 28822138, 28818812, 13, 09323108856, Thane West: 093239 59119, 25308077, 25308766, 25862810. NEW DELHI: Branches: Connaught Place: 011-43598491, 92, 93, 96, 97, 98, 47340415, 9899047510 Janakpuri: 9958599262, 45508972, 45508973, Kondli: 011 22610450, 22610451,22610453, 22610452, 09310491138, Mayur Vihar: 011-45160313, 43073612, 43073613,43073614, 43073615, 22753936, 48, 52, 43, Nehru Place: 011- 46507571, 46507572,46507573, 09311722844, New Delhi: 011- 26160082, 26160083, 26160084, 09599667158, Pitampura: 27352731, 27352732, 09350344499.Business Associates: Lajpat Nagar: 011-46504139, 32682650, Old Delhi: 011-32466655,23827408, South Delhi: 42603017, 9312439791. ORISSA: Branches: Berhampur: 0680 2221094, 2221093, 2221092, 09338437956, Bhubaneshwar – Janpath: 0674 2573351, 2380551, 2380940, 09337001821, Cuttack: 0671-2314500, 01, 02,09583625732, Rourkela: 0661 2500099, 2500089, 2500059, 9337243034, 9853398432, Sambalpur: 0663 - 2541669, 2540189, 2541860, 2541830, 09337017219. PUNJAB: Branches: Amritsar: 0183-5002901, 02, 03, 04, 10, 9317550333, Bhatinda: 0164-2237147, 48, 50, 51, 5006486, 09357705566, Chandigarh: 0172-5046120, 5046121, 5046122, 5046124, 5046127, 8968451220, Jalandhar: 0181-5030046, 5030043, 44, 09356555540, Ludhiana: 09317772226, 0161-5099223, 24, 26, 28, 33, 37, Patiala: 602, 603, 604, 605, 606, 9356662007. RAJASTHAN: Branches: Ajmer: 0145-2633376, 2633377, 09928599280, Bhilwara: 09928599281, 01482-242643, 242644, 242645, Bikaner: 0151-2530613, 614, 09950040631, Jaipur: 0141- 4011801,02, 03, 04, 9950040674, Jodhpur: 0291-2770450, 2770451,52, 53, 09351517114, Kota: 0744-2365400, 01, 02,0 7073695666, Sikar: 0157-2271234, 251065, 66, 9950330666, Udaipur: 0294-2421485, 86, 87, 9928599282. TAMIL NADU: Branches: Adayar: 044 24422890, 91, 93, 42054296, 07358771601, Anna

-26193932 - 36, 9382140258, Anna Nagar – Madurai: 0452 - 2521036, 2521037, 2521038, 2521039, 09952423244, Ashok Nagar: 044 23701025, 23701068, 23701217, 7358771602,Avadi: 044-26375382, 26375391, 26375394, 29035441, 07358065761, Blue Star Anna Nagar: 04426161580, 79, 78, 77, 09381388980, Chengelpet: 044 27429894, 27429895, 27429896, 09381446444, Chennai - T Nagar: 044 24353930, 24353931, 24353933, 42033891, Chidam- baram: 04144-225158, 223060, 223071, 9366672555, Coimbatore: 0422 2222005, 2220718, 2222115, 4351295, 09360322027, Coonoor: 0423 2232572, 2221847, Devakottai: 09364270444, Dharmapuri- Coimbatore: 04342-267411, 267412, 267413, 9345297659, Din- digal: 0451 2434871, 2434971, 2434870, 2434972, 093602 25463, Egmore: 044 28194015, 16,17, 7358771603, Erode: 0424 2241144, 2241155, 2241119, 2264994, 2214470, 2214480, 9364105761, Erode Brough Road – Coimbatore: 0424 2226001, 02, 09345298225, George Town: 044 25354564, 25354565, 25354566, 25354567, 09840694951, Gobichettipalayam: 04285- 227242, 227243, 227245, 9790945205, Guindy: 044 22201655, 22201656, 22201657, 7358771607 Hni Chennai: 044-26404435, 36, 9382692004, Hosur: 04344-246828, 246829, 246830, 80, 81, 82, Kanchipuram: 044 27231315, 27231316, 27231317, 09363307787, Karur: 04324 - 260965, 260966, 260241, 260739, 324001, 9367138895, Karur 2: 04324 - 233993, 233728, 233994, 233995, Karur 3: 04324 231991, 231992, 231994, 09344001767, Krishnagiri: 04343-237186, 237187, 237188, 09345040541, Kumbakonam: 0435 - 2400953, 2400954, 2403094, M C Road – Royapuram: 044-25955282, 91, 42872879, 08144062710, Madurai -K K Nagar: 0452 2584612 , 2584613, 09345213784, Marthandam: 04651-273775, 205281, 272733, 08754121214, Mayiladuthurai: 04364 222036, 86, 96, 227177, 9344022825, Metha Nagar - Nelson Manickam Road: 09360218188, Mettuppalayam: 04254 225725, 225677, 225645, 225669, 09364638999, Mettur: 04298 242236, 8242238, 8242249, 09364363642, Mint Street – Sowcarpet: 044-25205333, 25205344, 25205358, 2520536, 09840013165Nagercoil: 04652 234425, 234426, 320922, 09360314712, Namakkal: 04286 274205, 274206, 274207, 09361829444, Neyveli: 04142-251060, 251061, 251062, 09344986500, Nungambakkam: 044 28211056, 58, 59, 9385344449, Perambur: 044 25518831, 25518832, 33, 09363134311, Pudukkottai: 04322-228920, 228922, 228927, 320300, 9345297774, R.A Puram-Chennai: 044 24362059, 069, 089, 09381101190, Ra- japalayam: 04563 223105, 6, 7, 09344045225, Ramanathapuram: 0422- 2310656, 2310671, 2317765, 9363262776, Coimbatore - Ramnagar: 0422 2234319, 2234321, 2236576, 2236577, 9360322030, Salem: 0427 - 2336801, 2336802, 2336803, 2336804, 9362123621, Sivakasi: 227162, 227163, 9677670552, Srirengam-Trichy: 0431 2437006, 2437007, 2437008, 9364483000, T.Nagar (Internet Trading - It): 044 - 28344925 , 42170091, Thanjavur: 04362-274996, 274992, 274993, Theni: 04546 -250561, 250859, 250285, Thiruvallur: 09380001017, 27662577, 27662522, Tiruchengode: 04288-250057, 250067, 250072, 09791666130, Tirunel- veli: 0462 – 2503306, 07, 09367165858, Tiruvannamalai: 04175 251067, 251068, 04, 09345175688, Tnagar Usman Road: 044 24352070, 71, 72, 7358771606, Town Hall – Coim- batore: 0422 - 2301457, 2301458, 09363109486, Trichy: 0431-2767521, 2766621, 2766276, 3299014, 09345124915, Trichy 2: 0431- 2710627, 2710637, 2710647, 09360179991, Trichy 3 – Cantonment: 0431-2414115, 2414116, 09363284848, Vadapalani: 044 23652234, 23652235, 23652238, 7358771609, Velachery - South Chen-nai: 044 22440755, 22440756, 22440239, 22450236, 22440317, 9380540446, Vellore: 0416 2256133, 233, 433, 7358771608, Vepery: 044 - 26411430, 26411431, 26411432, Villupuram:

250027, 251262, 250037, Virudhunagar: 04562 -246611, 246612, 246613, 246614, 9345223737. Business Associates: Adambakkam: 7299667544, 22600231, 43580069, Ambattur: 044 - 42086962, 09840444375, 09952937774, 9600137165, Annanagar-West: 044 26567483,26567484, Besant Nagar: 044 24917714, 24917715, 42150969, Bhavani: 04256 -234035, 235137, 9788775557, Kumbakonam - Nbs Towers: 0435 2400955, Madurai East: 0452 – 4353613, 4382861, 90871 44444, Mylapore: 044 42074441, 42088275, 42088274, 09940085959,Nandanam: 044 42640436, 8012760119, Nanganallur: 044 22249943, 22249944, 43588446, 9840366171, Parrys: 044 25250070, 25249924, 25242922, 09940673388, Pondichery: 0413- 4205253, 6537730, 4205252, 09443050592, Purusawalkam Chennai: 044- 42051118, 09840792535, Tambaram West: 044 - 22262544, 45030123, 9884385113, 7845335113, Tirunelvelli – Palayamcottai: 0462-2572111, 2572555, 09443193467, Tirupur: 0421 6549646, 2224660, 4324049, 09363056711, 09363036523, 09363020602, Tuticorin: 0461-2339138, 2339139, 4009137, 09363319837, 9894806936, Washermanpet: 9840029077, 9840710281, West Mambalam: 044-42614182, 42614183, 42614184, 9841390655.TELANGANA: Branches: A S Rao Nagar – Hydera-bad: 09391055688, 27132872, 27132873, 27132874, Ameerpet –Hyderabad: 040 23414686, 23414687, 23414689, 09959022567, Banjara Hills: 040 23391418, 23391419, 23391420, 23370117, Begum Bazar: 040-24740442,040-24740443,040-24650439, 9642023482, Dilsukh Nagar: 040 - 23447691, 23447692, 23447693, 23447694, 09346623769, 9985641159 Habsiguda: 040 40165414, 40165415, 9392988880, 09985641159, Hitech City – Hyderabad: 040 - 23115026, 23114826, 23114821, Hyderabad - Himayat Na- gar: 091-040-23220316, 23220318, 09399999900, 23220329, 23220327, Karimnagar – Hyder- abad: 0878 - 2233073, 2233074, 2234073, 2234074, 9347902061, Khammam: 08742-222240, 222250, 222260, 09393223424, Kukatpally: 040-66665291, 92, 93, 09515107528, Mahbub Nagar: 08542 221256, 221257, 221363, 07673959992, Mehdipatanam: 09395121751, 23521740, 23521750, 23521751, Nizamabad: 9392517766, 08462 220009, 220016, 220030, P G Road Secunderabad: 040-27892465, 27892466, 27892467, 27892468, 9346581118, San- thosh Nagar: 040-24532981, 24532982, 24532973, 24532974, 09347616868, Warangal – Hyderabad: 0870 2447145, 2447146, 2447147, 09959022566.UTTAR PRADESH: Branches: Agra: 0562 2525916, 2525875, 2525873, Allahabad: 0532-2260473, 2260474, 09956295252, Bareilly: 2510664, 2510876, 09956295253, Ghaziabad - Rdc Raj Nagar: 0120-2820430, 2820422, 2820423, 2820424, 09560871444, Gorakhpur: 0551- 2204954, 2204631, 2204628, 2204616, 09956295258, Indirapuram: 0120 – 4159950, 51, 52, 53, 54, 09971015581, Kanpur: 0512 - 3930500, 3930501,3930502, 2332876, 09956295257, Lucknow: 0522-2629824, 2629826, 2629827, Meerut: 0121-4032101, 4032102, 4032103, 9897514979, Moradabad: 5912410350, 5912410380, Noida: 91, 93, 4340744, 745, 09958698298, 9810068936, Vaishali: 0120-4162545, 4162546, 4162547, 4162548, 4162549, 9560377411, Varanasi: 0542 - 2222828, 2222829, 2222830, 09956342346. Business Associates: Agra– Nehru Nagar : 0562 -2529414, 2529273/ 83, Bareilly– Prabhat Nagar: 0581 -2531774 , 75, Lucknow Park Road: Ph: 0522-410370, 4072191, 4007123, 9519385522, UTTARAKHAND: Dehradun: 0135 2711859, 2711854, 2650816, WEST BENGAL: Branches: Asansol: 0341-222014, 2220148, 149, 150, 09332208162, Barasat: 033 25241657, 25241658, 09333874734, Behala: 033-24075054, 24075055, 09831891583, Camac Street- Kolkata: 033 22892784, 22892784, 22892785, 228927846, 22892787, Gariahat: 033 24669641, 24669642, 09330930844, Princep Street: 033 40647868, 40053825, 09339308800, Siliguri: 0353 2541789, 2789, 3789, 08585075633, Tegoria: 033-40647873, 40647874, 09831891765.


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General Disclosures and Disclaimers (KNR Constructions)

CERTIFICATION I, Antu Eapen Thomas, author of this Report, hereby certify that all the views expressed in this research report reflect our personal views about any or all of the subject issuer or securities. This report has been prepared by the Research Team of Geojit Financial Services Limited, hereinafter referred to as Geojit. COMPANY OVERVIEW Geojit Financial Services Limited (hereinafter Geojit), a publically listed company, is engaged in services of retail broking, depository services, portfolio management and marketing investment products including mutual funds, insurance and properties. Geojit is a SEBI registered Research Entity and as such prepares and shares research data and reports periodically with clients, investors, stake holders and general public in compliance with Securities and Exchange Board of India Act, 1992, Securities And Exchange Board Of India (Research Analysts) Regulations, 2014 and/or any other applicable directives, instructions or guidelines issued by the Regulators from time to time. DISTRIBUTION OF REPORTS This document is not for public distribution and has been furnished to you solely for your information and must not be repro-duced or redistributed to any other person. Geojit will not treat the recipients of this report as clients by virtue of their receiving this report. GENERAL REPRESENTATION The research reports do not constitute an offer or solicitation for the purchase or sale of any financial instruments, inducements, promise, guarantee, warranty, or as an official confirmation of any transaction or contractual obligations of any kind. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The information contained herein is from publicly available data or other sources believed to be reliable, but we do not represent that it is accurate or complete and it should not be relied on as such. We have also reviewed the research report for any untrue statements of material facts or any false or misleading information. While we endeavour to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. RISK DISCLOSURE Geojit and/or its Affiliates and its officers, directors and employees including the analyst/authors shall not be in any way be responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Investors may lose his/her entire investment under certain market conditions so before acting on any advice or recommendation in these material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. This report does not take into account the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investi-gation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this report (including the merits and risks involved). The price, volume and income of the investments referred to in this report may fluctuate and investors may realize losses that may exceed their original capital. FUNDAMENTAL DISCLAIMER We have prepared this report based on information believed to be reliable. The recommendations herein are based on 12 month horizon, unless otherwise specified. The invest-ment ratings are on absolute positive/negative return basis. It is possible that due to volatile price fluctuation in the near to medium term, there could be a temporary mismatch to rating. For reasons of valuations/return/lack of clarity/event we may revisit rating at appropriate time. The stocks always carry the risk of being upgraded to buy or downgrad-ed to a hold, reduce or sell. The opinions expressed are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. This report is non-inclusive and does not consider all the information that the recipients may consider material to investments. This report is issued by Geojit without any liability/undertaking/commitment on the part of itself or any of its entities. We may have issued or may issue on the companies covered herein, reports, recommendations or information which is contrary to those contained in this report. The projections and forecasts described in this report should be evaluated keeping in mind the fact that these are based on estimates and assumptions and will vary from actual results over a period of time. The actual performance of the companies represented in the report may vary from those projected. These are not scientifically proven to guarantee certain intended results and hence, are not published as a warranty and do not carry any evidentiary value whatsoev-er. These are not to be relied on in or as contractual, legal or tax advice. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. JURISDICTION The securities described herein may not be eligible for sale in all jurisdictions or to all categories of investors. The countries in which the companies mentioned in this report are organized may have restrictions on investments, voting rights or dealings in securities by nationals of other coun-tries. Distributing/taking/sending/dispatching/transmitting this document in certain foreign jurisdictions may be restricted by law, and persons into whose possession this docu-ment comes should inform themselves about, and observe any such restrictions. Failure to comply with this restriction may constitute a violation of any foreign jurisdiction laws. Foreign currencies denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of or income derived from the investment. Investors in securities such as ADRs, the value of which are influenced by foreign currencies effectively assume currency risk. REGULATORY DISCLOSURES: Geojit‟s Associates consists of privately held companies such as Geojit Technologies Private Limited (GTPL- Software Solutions provider), Geojit Credits Private Limited (GCPL- NBFC Services provider), Geojit Investment Services Limited (GISL- Corporate Agent for Insurance products), Geojit Financial Management Services Private Limited (GFMSL) & Geojit Financial Distribution Private Limited (GFDPL), (Distributors of Insurance and MF Units). In the context of the SEBI Regulations on Research Analysts (2014), Geojit affirms that we are a SEBI registered Research Entity and in the course of our business as a stock market intermediary, we issue research reports /research analysis etc that are prepared by our Research Analysts. We also affirm and undertake that no disciplinary action has been taken against us or our Analysts in connection with our business activities. In compli-ance with the above mentioned SEBI Regulations, the following additional disclosures are also provided which may be considered by the reader before making an investment decision: 1. Disclosures regarding Ownership*: Geojit confirms that: (i) It/its associates have no financial interest or any other material conflict in relation to the subject company (ies) covered herein. (ii) It/its associates have no actual beneficial ownership greater than 1% in relation to the subject company (ies) covered herein. Further, the Analyst confirms that: (i) he, his associates and his relatives have no financial interest in the subject company (ies) covered herein, and they have no other material conflict in the subject company. (ii) he, his associates and his relatives have no actual/beneficial ownership greater than 1% in the subject company covered 2. Disclosures regarding Compensation: During the past 12 months, Geojit or its Associates: (a) Have not received any compensation from the subject company; (b) Have not managed or co-managed public offering of securities for the subject company (c) Have not * received any compensation for investment banking or merchant banking or broker-age services from the subject company. (d) Have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company (e) Have not received any compensation or other benefits from the subject company or third party in connection with the research report (f) The subject company is / was not a client during twelve months preceding the date of distribution of the research report. 3. Disclosure by Geojit regarding the compensation paid to its Research Analyst: Geojit hereby confirms that no part of the compensation paid to the persons employed by it as Research Analysts is based on any specific brokerage services or transactions pertaining to trading in securities of companies contained in the Research Reports. 4. Disclosure regarding the Research Analyst‟s connection with the subject company: It is affirmed that the I Antu Eapen Thomas Research Analyst(s) of Geojit have not served as an officer, director or employee of the subject company 5. Disclo-sure regarding Market Making activity: Neither Geojit/its Analysts have engaged in market making activities for the subject company.

Please ensure that you have read the “Risk Disclosure Documents for Capital Market and Derivatives Segments” as prescribed by the Securities and Exchange Board of India before investing.

Geojit Financial Services Ltd. (formerly known as Geojit BNP Paribas Financial Services Ltd.), Registered Office: 34/659-P, Civil Line Road, Padivattom, Kochi-682024, Kerala, India. Phone: +91 484-2901000, Fax: +91 484-2979695, Website: geojit.com. For investor queries: [email protected], For grievances: [email protected], For compliance officer: [email protected]. Corporate Identity Number: L67120KL1994PLC008403, SEBI Regn.Nos.: NSE: INB/INF/INE231337230 I BSE:INB011337236 & INF011337237 | MSEI: INE261337230, IN-B261337233 & INF261337233, Research Entity SEBI Reg No: INH200000345, Investment Adviser SEBI Reg No: INA200002817, Portfolio Manager:INP000003203, NSDL: IN-DP-NSDL-24-97, CDSL: IN-DP-CDSL-648-2012, ARN Regn.Nos:0098, IRDA Corporate Agent (Composite) No.: CA0226. Research Entity SEBI Registration Number: INH200000345

General Disclosures and Disclaimers (Titan) http://14.141.46.130/demo/researchdocs/Titan Ltd-Q4FY17.pdf General Disclosures and Disclaimers (ITC) http://14.141.46.130/demo/researchdocs/ITC Ltd-Q4FY17.pdf General Disclosures and Disclaimers (Bank of Baroda) http://14.141.46.130/demo/researchdocs/Bank of Baroda - Q4FY17.pdf


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