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com
Sharekhans top SIP fund picks
Why SIP?
Disciplined investing
Being disciplined is a key to investing success. Through
a systematic investment plan (SIP) you can choose to
invest fixed amounts in a mutual fund scheme which
could be as low as Rs500 at regular intervals (like every
month) for a chosen period of time (say for a year).
The amount you invest every month or every quarter
will be used to purchase units of a SIP of a mutual
fund scheme. Small amounts set aside every month
towards well performing SIP mutual fund schemes can
make an investor achieve his financial goals in future.
Invest in instruments that beat Inflation
Equity investing can help you combat rising inflation
that diminishes the value of your savings.
SIP over a longer period can reduce the cost per unit
Example (see table below): An investment of Rs24,000
in a mutual fund resulted in a value of Rs25,200 after
12 months; whereas a SIP mutual fund investment of
Rs2,000 per month grew to Rs27,095 after the same
period.
Fewer efforts to opt for SIP
The procedure to invest through SIP is easy. All you
need to do is give post-dated cheques or opt for an
auto debit of a specific amount towards SIP from your
bank account. SIP plans are completely flexible. One
can even start a SIP just by placing an order by logging
into Sharekhans online mutual fund page. One can
invest for a minimum of six months or for a long tenure.
Also, there is an option of choosing the investment
interval which could be monthly or quarterly.
Illustrative example
Price per unit One-time investment SIP
Month (Rs) Amount Units Amount Units
invested (Rs) purchased invested (Rs) purchased
Jan-10 20 24,000 1,200 2,000 100.0
Feb-10 18 -- 2,000 111.1
Mar-10 14 -- 2,000 142.9
Apr-10 22 -- 2,000 90.9
May-10 26 -- 2,000 76.9
Jun-10 20 -- 2,000 100.0
Jul-10 18 -- 2,000 111.1
Aug-10 17 -- 2,000 117.7
Sep-10 15 -- 2,000 133.3
Oct-10 18 -- 2,000 111.1
Nov-10 20 -- 2,000 100.0
Dec-10 21 -- 2,000 95.2
Total investment (Rs) 24,000 24,000
Average price (Rs) 20 19
Total units purchased 1,200 1,290
Value of investment after 25,200 27,095
12 months (Rs)
*NAV as on the 1st of every month. These are assumed NAVs in a volatile market.
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www.sharekhan.com before investing.
Mutual Funds mutual gains
2 Sharekhan March 06, 2013
Data as on March 04, 2013
(*invested on 2nd day of every month)
We will be showing compounded annualised returns for three years and five years from now on.
SIP investment (monthly Rs1,000)* 1 year 3 years 5 years
Total amount invested (Rs) 12,000 36,000 60,000
Funds would have grown to NAV Present Compounded Present Compounded Present Compounded
value annualised value annualised value annualised
(Rs) return (%) (Rs) return (%) (Rs) return (%)
Large-cap funds
SBI Magnum Bluechip Fund 16.2 12,964.8 8.8 40,425.3 4.1 77,731.1 5.4
Birla Sun Life Frontline Equity Fund - Plan A 95.0 12,782.9 7.2 39,629.7 3.4 80,223.4 6.1
Birla Sun Life Top 100 Fund 24.5 12,543.5 5.0 39,393.0 3.1 77,957.7 5.5
Franklin India Bluechip 229.3 12,558.5 5.1 38,993.0 2.8 79,852.6 6.0
Tata Pure Equity Fund 103.4 12,337.1 3.1 38,250.1 2.1 76,133.1 5.0
BSE Sensex 18,878.0 12,601.0 5.0 37,688.0 1.5 71,866.5 3.7
Multi-cap funds
Reliance Equity Opportunities Fund 41.33 12,474.3 4.3 40,997.2 4.6 93,200.7 9.4
BNP Paribas Equity Fund 38.41 12,725.2 6.6 40,367.2 4.0 76,585.6 5.1
Franklin India High Growth Companies Fund 13.98 13,113.1 9.3 40,313.2 3.8 81,831.9 6.4
Tata Ethical Fund 72.17 12,725.4 6.6 39,657.2 3.4 82,212.0 6.6
UTI Opportunities Fund 30.31 12,254.3 2.3 39,580.7 3.3 83,637.4 7.0
BSE 500 7,139.6 12,341.6 2.9 36,586.3 0.5 70,724.5 3.3
Mid-cap funds
SBI Emerg Buss Fund 55.10 12,824.5 7.5 45,081.5 8.0 103,849.1 11.8
IDFC Premier Equity Fund - Reg 37.10 12,530.8 4.8 40,541.4 4.2 90,340.0 8.7
Franklin India Prima Fund 307.07 12,764.0 7.0 40,283.4 3.9 84,927.1 7.3
IDFC Sterling Equity Fund - Reg 20.10 12,239.3 2.2 39,220.4 3.0 88,847.7 8.3
Sundaram Select Midcap - Reg 154.28 11,977.4 -0.2 37,168.0 1.1 79,880.2 6.0
BSE Midcap 6,234.4 11,614.0 -3.2 33,462.3 -2.4 65,248.1 1.7
Tax saving funds
BNP Paribas Tax Advantage Plan 16.10 12,633.2 5.8 40,535.0 4.2 78,723.3 5.7
Franklin India Taxshield 232.07 12,547.2 5.0 39,877.4 3.6 82,363.1 6.7
Tata Tax Saving Fund 43.93 12,441.1 4.0 38,546.4 2.4 76,357.4 5.0
Reliance Tax Saver (ELSS) Fund 22.19 11,934.3 -0.6 38,074.6 1.9 79,198.9 5.8
Sundaram Taxsaver- (Open Ended Fund)-Reg 45.22 12,368.9 3.4 37,944.9 1.8 72,767.0 4.0
S&P Nifty 5,698.5 12,534.4 4.5 37,758.8 1.6 72,062.7 3.7
Mutual Funds mutual gains
3 Sharekhan March 06, 2013
IDFC Sterling Equity FundGrowth
With about five years of experience, the fund has been a consistent outperformer in comparison with both the benchmark index,
CNX Midcap , and the category average. Despite the volatility and uncertainties in the market, the fund performed much better
than its peers, giving returns of 14% over one year as against that of -1.9 % and 8.6% given by the benchmark index and the
category average, respectively, in the same period. Over the longer time horizon of three years, the fund has grown at 8.5%
compounded annual growth rate (CAGR) while the BSE Mid Cap Index and the category average have grown at -2.3% and 4.7%
respectively. In the recent months, the fund has garnered returns of 5.4%, higher than the 5.2% return posted by the benchmark
index and 5.1% returns from the mid-cap funds category average.
The fund currently has about 44 stocks in its portfolio. It has nearly 90.8% of its net assets exposed to equity while the rest is
exposed to other money-market instruments. The top ten stocks form about 40.3% of the portfolio. The fund has invested nearly
15.6% of its funds in the banking sector followed by the pharmaceutical sector, and exchanges and rating agencies with 13.3%
and 11.5% allocations respectively.
Key features
Fund category Mid-cap fund
Launch date March 7, 2008
Minimum investment Rs5,000
Load structure Entry load is nil / if redeemed bet. 0
days to 365 days, exit load is 1%
Fund manager Kenneth Andrade
Latest NAV (gr.) Rs20.1
Latest NAV (div.) Rs13.7
Expense ratio 2.02 (Mar-12 )
AUM Rs1,305 crore (31-Dec-2012)
Benchmark index CNX Midcap
Holding by market cap
Particular %
BSE Sensex -
BSE Mid Cap 41.5
BSE Small Cap 12.7
CNX Midcap 31.8
Top 5 holdings 22.4
Top 10 holdings 40.3
Top 10 stock holdings (total no. of scrips: 44)
Company name % of net assets
Strides Arcolab 5.0
Mahindra & Mahindra Financial Services 4.8
Va Tech Wabag 4.4
Wockhardt 4.1
Vardhman Textiles 4.1
Bajaj Finance 3.7
National Mineral Development Corporation 3.7
Allahabad Bank 3.7
Nifty 3.5
Nestle India 3.4
Style box analysis
Fact sheet
IDFC Sterling Equity Fund is benchmarked to the CNX Midcap
Index and within that there is an active stock selection. The
portfolio bias is towards companies that are financially sound,
have a proven business model, tend to lead the markets and are
consolidating.
Top 5 sectors
Scheme analysis
Scheme performance
Returns (point to point) < 1 yr: Absolute, >1yr: CAGR
Large-cap
Mid-cap
Small-cap
Growth blend value
8.5
15.0
5.1
8.6
4.7
4.0
1.9
19.1
5.4
14.0
0.0
14.2
5.2
-1.9
-0.1
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
6 Months 1 Year 3 Years 5 Years Since
Inception
IDFC Sterling Equity Fund Mid Cap funds Category Average CNX Midcap
15.6
13.3
11.5
8.7
8.0
0.0 5.0 10.0 15.0 20.0
Banks
Pharmaceuticals
Exchanges and rating agencies
NBFC
Engineering and Capital Goods
Mutual Funds mutual gains
4 Sharekhan March 06, 2013
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Disclaimer: Mutual fund investments are subject to market risk. Please read the offer document carefully before investing. Past
performance may or may not be sustained in the future.