MUTUAL FUND & DEBT

RETAIL RESEARCH

08 August 2016

Weekly Report
Equity Markets

Weekly Statistics

A divergent trend was witnessed among various index constituents in the week ended Friday,
5 August 2016. The barometer index, the S&P BSE Sensex rose 26.49 points or 0.09% to settle
at 28,078.35. The gains for the Nifty 50 index were higher than those for the Sensex in
percentage terms. The Nifty rose 44.65 points or 0.51% to settle at 8,683.15. The Sensex
settled above the psychologically important 28,000 level after falling below that level during
the course of trading. The BSE Mid-Cap index was up 0.29%, outperforming the Sensex. The
BSE Small-Cap index fell 0.02%, underperforming the Sensex.
Among key developments during the week, the Rajya Sabha on Wednesday, 3 August 2016
passed the much-awaited Goods and Services Tax (GST) constitutional amendment bill which
is touted as one of the biggest indirect tax reforms since 1991.
Trading for the week ended on a buoyant note on Friday, 5 August 2016, as key benchmark
indices settled with strong gains as firmness in global stocks boosted sentiment on the
domestic bourses.
Outlook for the current weeks
Next batch of Q1 June 2016 corporate results, progress of monsoon rains, macro economic
data, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic
institutional investors (DIIs), the movement of rupee against the dollar and crude oil price
movement will dictate market trend in the near term.
The major domestic event in the upcoming week is the Reserve Bank of India's (RBI) third bimonthly monetary policy meeting scheduled on Tuesday, 9 August 2016. The central bank
had left its benchmark repo rate unchanged at 6.5% in its last meeting.
The domestic earnings season almost comes to an end next week. Among key earnings slated
for the week ahead, Hero MotoCorp and Idea Cellular are scheduled to announce Q1 June
2016 results on Monday, 8 August 2016.
Global Markets
U.S. stocks closed sharply higher with the S&P and the Nasdaq posting their strongest close
ever, after a stronger-than-expected jobs report. The Dow Jones industrial average closed
higher 0.60 percent, at 18,543.53. The Nasdaq rose 1.14 percent, to 5,221.12.

RETAIL RESEARCH

Key Indices

05-Aug

% Chg

Sensex

28078

+0.09

Nifty 50

8683

+0.52

18544

+0.60

Nasdaq

5221

+1.14

FTSE

6793

+5.10

DAX

10367

+0.29

Hang Seng

22146

+1.16

Nikkei

16254

-1.90

Bovespa

57661

+0.62

Indonesia Jakarta

5420

+3.92

Singapore Strait

2828

-1.43

DJIA

Mutual Fund Categories watch

Category Name

1 Week
Absolute

1 Month
Absolute

3 Month
Absolute

6 Month
Absolute

1 Year
CAGR

3 Yr
CAGR

Arbitrage Funds

0.18

0.62

1.74

3.42

6.40

7.83

Balanced - Debt

0.34

2.20

5.46

7.59

4.54

13.77

Balanced - Equity

0.35

3.50

10.10

14.08

4.85

20.68

Equity - Banking

-0.15

6.04

20.27

29.92

5.13

24.89

Equity - Dividend Yield

0.44

3.41

13.45

18.30

3.39

24.41

Equity - Infrastructure

0.06

3.45

14.21

18.49

-1.74

28.11

Equity - LARGE

0.60

4.92

13.86

17.79

1.69

21.14

Equity - MID

-0.03

4.24

14.32

19.83

4.12

36.40

Equity - MNC

-0.49

3.14

9.33

13.23

-2.25

33.00

Equity - MULTI

0.50

4.73

14.14

18.86

2.99

25.13

Equity - FMCG

-1.09

2.84

14.17

15.19

8.34

15.89

Equity - Infotech

1.23

-0.96

0.66

0.72

0.18

17.21

Equity - Pharma

-0.25

3.91

5.54

1.70

-1.65

26.25

ELSS

0.41

4.59

13.34

17.99

2.57

24.60

Gold ETFs

1.65

0.50

6.92

15.68

29.47

3.86

Gilt Funds

0.17

2.65

4.60

8.60

11.80

10.39

Income Funds

0.15

1.75

3.33

6.34

9.82

9.51

Liquid Funds

0.13

0.59

1.83

3.84

7.68

8.54

MIP

0.18

2.33

5.25

8.34

8.19

11.87

Short Term Income

0.13

1.19

2.62

5.12

8.67

9.42

Note: Trailing Returns up to 1 year are absolute and over 1 year are CAGR. NAV/index values are as on August 05,
2016.

Page |1

RETAIL RESEARCH
G sec Markets:

10 Year G sec Benchmark move:

Indian bond yields ended up during the week ended August 05, 2016 by 1 basis point. G sec
Yields fell on Monday as market participants bought government debt on hopes that the
Goods and Services Tax (GST) Bill, a key indirect tax reform, will be approved in the ongoing
session of the Parliament.
G sec yields increased on Tuesday as market participants booked profits after a record rally in
the last few weeks.
Bond yields increased for the second consecutive day on Wednesday as market participants
avoided taking any long positions ahead of the approval of Goods and Services tax (GST) in
the Rajya Sabha.
Bond yields fell on Thursday as market participants bought government debt after Rajya
Sabha approved the constitutional amendment bill that proposes to levy a single indirect tax
window, goods and services tax (GST), in the country.

Liquidity:

Bond yields remained unchanged on Friday after the government maintained the Reserve
Bank of India (RBI)s inflation target at 4% (+/- 2%) till Mar 2021.
Hence, the yields of the new 10-Year benchmark 7.59% GS 2026 closed lower at 7.17% on
Friday as the last week close of 7.16%.
Outlook for the week
We feel that the new 10-year G Sec yields could trade in the 7.20% - 7.35% band for the week.
Liquidity, Call & CBLO
RBI infused average gross liquidity via Repo under LAF window worth Rs 3,971 Cr in this week
compared to an infusion of Rs 7,207 Cr in previous week. Infusions via the MSF route
averaged Rs 26 Cr. The Call rate ended at 6.39% compared to 6.46% from the previous week.
The CBLO ended at 5.73% compared to 6.28% in the previous week.
T Bill
The RBI announced auction cut off yield of 91 Day T-Bill at 6.56% and 364 Day T-Bill at 6.69%.
RBI announced auction of 91 Day T-bill and 364 Day T-bill for a notified amount of Rs 9,000 Cr
and Rs 6,000 Cr respectively to be held on 03-August-16.

Debt Securities Benchmarks watch

Debt (%)

05-August

29-July

Change (bps)

Call Rate
CBLO

6.28

6.46

-18

5.73

6.28

-55

Repo

6.50

6.50

Reverse Repo

6.00

6.00

10 Year G sec

7.17

7.16

+1

LIBOR UK

0.48

0.50

-2

LIBOR USA

0.79

0.76

+3

-0.31

-0.30

-1

LIBOR Europe

RETAIL RESEARCH

Page |2

RETAIL RESEARCH
Corporate Debts
The 10 year AAA bond ended at 7.81% as compared to 7.82% in previous week. The 1 year CD
yield was seen trading at 7.38% as compared to 7.30% in the previous week.

AAA Corporate Bond Spread over Gsec:

Security

05-August

29-July

1 Year
3 Year
5 Year
10 Year

40
40
49
52

40
39
40
53

Date of Auction
10-August-16
10-August-16

Value (Rs. Crs)

9,000
6,000

Currency
The USD depreciated against the Euro by 0.45% for week ended 05th August, 2016.

Forthcoming Auctions:

The US dollar depreciated against the yen by 3.55% for the week.

Security
91 D T Bill
182 D T Bill

The USD appreciated against the pound by 0.58% for the week.

Certificates of Deposits:

Gold & Crude oil

International crude oil prices (WTI) ended positively by 0.48% for the week ended 05th
August, 2016 to close at USD 41.80 per barrel.

Maturity

05-August

29-July

3 Months
6 Months
1 Year

6.60
6.90
7.25

6.60
6.90
7.30

Commercial Papers:
International gold prices fell 0.93% for the week ended 05th August, 2016 to close at USD
1,336.4 per troy ounce.
Movements of G sec Benchmark Yields across maturities in the last 1 month.

Maturity

05-August

29-July

3 Months
6 Months
1 Year

7.20
7.65
8.25

7.28
7.70
8.01

Commodity Update:
Commodity
NYMEX Crude Oil ($/bbl)
Gold (oz/$)

RETAIL RESEARCH

05-August

29-July

Change (%)

41.80
1336.40

41.60
1349.00

+0.48
-0.93

Page |3

RETAIL RESEARCH
Mutual Fund Scheme Analysis:

RETAIL RESEARCH

Tata Balanced Fund (G)

Page |4

RETAIL RESEARCH
Key points:

Unit Growth of investments Vs. Benchmark

(Rebased to 100)

Tata Balanced Fund is one of the top performing schemes from Hybrid Equity Oriented
category which has managed to deliver better returns over periods. The scheme registered 7%, +20% and +14% of compounded returns respectively for one, three and five year periods
while the benchmark posted -6%, +10% and +7% of returns respectively. For the same period,
the category registered the growth of -4%, +16% and +12% of CAGR returns respectively.
Balanced funds also known as Hybrid funds invest in combination of debt and equity
instruments to provide a portfolio which combines the growth opportunities of equity and
steady income from the debt. It also helps in a diversified portfolio which is lower in volatility
as compared to equity funds and also provides potentially higher return opportunities than
debt funds.
Tata Balanced Fund aims at seeking a combination of equity and debt investments which
optimize the returns of the portfolio and at the same time manages the volatility of fund. The
scheme actively manages the combination of the equity and debt investments depending
upon the market conditions and outlook. It aims to seek an optimum combination of capital
appreciation and income opportunities. The fund holds a more diversified portfolio of about
68 stocks over 15 different sector. The fund invests about 70-75 per cent of its assets in
equities on most occasions which the fund to outperform its index and peer groups by a
significant margin in up markets.

Fund Performance Vis-a-vis Benchmark (Excess return):

The fund managers of the scheme prefer to hold maximum assets in large cap stocks. There
has been an average of 69% of equity assets into blue chip stocks considering last one-year
period. The latest portfolio as on Feb 2016 shows 71% of its equity assets into large cap
stocks. The equity portfolio has been churned moderately in last six months period in as
much as it added 15 new stocks and exited from 12. The turnover ratio of 14% represents the
less churning.
L&T, HDFC Bank, Infy and Sun Pharma are the stocks topped in its latest portfolio having
weights of 3.84%, 2.99% and 2.53% to its net assets respectively. The expense ratio of 2.22%
for the scheme is lower compared to the category average of 2.60%. In debt side, considering
the last one year period portfolio, the scheme invested more into Government securities
close to 16% of total assets. It holds close to 7% in corporate bonds. Rating agencies like
Value research & Crisil assigned 5 star and CPR 1 respectively for the scheme. These reflect
the very good performance of the scheme on generating high-risk adjusted returns. The
scheme is managed by Atul Bhole since Jan 2012 and Akhil Mittal since Jul 2015. The corpus
of the scheme as per latest data was at Rs. 5,071 crore. The scheme seems to be relatively
risky in the category as it generated 0.75% (category 0.72%) of Standard Deviation over the
last three-year period.

RETAIL RESEARCH

Page |5

RETAIL RESEARCH
Mutual Fund ready Reckoner:
Equity - Diversified - Large CAP
5 Year
Return Since
Return
Inception

NAV (Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

177.33

12,335

5.84

22.20

14.68

22.96

482.99

8,408

5.82

26.20

16.39

19.43

31.48

7,042

7.66

24.66

16.78

11.60

NAV (Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

Franklin India High Growth Companies (G)

INF090I01981

31.31

4,776

3.03

30.79

19.27

ICICI Pru Value Discovery Fund (G)

INF109K01AF8

123.99

13,205

5.88

34.64

19.85

Scheme Name
Birla Sun Life Frontline Equity Fund (G)
INF209K01BR9
Franklin India Prima Plus - (G)
INF090I01239
SBI BlueChip Fund (G)
INF200K01180

Scheme Name

Scheme Name
Franklin India Smaller Companies Fund (G)
INF090I01569
DSP BR Micro-Cap Fund (G)
INF740K01797
Reliance Small Cap Fund (G)
INF204K01HY3
HDFC Mid-Cap Opportunities Fund (G)
INF179K01CR2

Scheme Name
Tata Ethical Fund - (G) (Shariah)
INF277K01956
ICICI Pru Banking & Fin Serv (G) (Banking)
INF109K01BU5
Franklin Build India Fund (G)
(Infrastructure) INF090I01AE7
UTI-Transportation & Logistics (G) (Auto)
INF789F01299
Birla Sun Life MNC Fund - (G) (MNC)
INF209K01322
Birla Sun Life India GenNext Fund (G)
(Consumption) INF209K01447

RETAIL RESEARCH

Equity - Diversified - Multi CAP

5 Year
Return Since
Return
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade

HDFC Bank, ITC

RIL, L&T & Infosys

CPR 2

5 Star

Low

Higher

CPR 2

5 Star

Low

Higher

CPR 1

5 Star

Lower

Higher

HDFC Bank, Infy, ICICI Bank, Bharti

Airtel & Indus Bank
HDFC Bk, Sun Pharm, RIL, INFY, &
L&T

Top holdings

Crisil
Rank

Value Research
Rating

Risk Grade

Return
Grade

13.51

HDFC Bank, Axis bank, SBI, TVS Mot

& ICICI Bank

CPR 2

5 Star

Average

Higher

23.46

L&T, NTPC, Axis Bank, Sun Pharma

& ICICI Bank

CPR 2

5 Star

Low

Higher

Top holdings

Crisil
Rank

Value Research
Rating

Risk Grade

Return
Grade

Equitas Hold, Finolex Cabl, Yes Bk,

eClerx Serv & Repco Home

CPR 1

4 Star

Lower

High

CPR 1

4 Star

Low

High

CPR 2

3 Star

Average

Higher

CPR 3

4 Star

Low

Average

Equity - Diversified - Mid n Small CAP

5 Year
Return Since
Return
Inception

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

45.50

3,234

15.59

41.13

25.67

15.46

49.11

3,113

17.15

48.85

24.61

19.06

28.39

2,241

11.20

45.69

22.73

19.49

42.25

11,537

10.15

35.06

20.29

17.18

Equity Thematic / Sector

5 Year
Return Since
Return
Inception

NAV (Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

133.66

484

1.09

20.67

14.74

16.45

43.27

976

12.58

29.98

17.85

20.29

31.98

623

6.55

35.99

22.43

18.37

94.08

716

6.61

45.45

27.44

18.71

615.69

3,510

1.99

32.89

22.27

18.65

60.45

411

8.65

23.81

18.12

17.81

KPR Mills, Sharda Cropchem, SRF,

Eveready Ind & Navin Fluo
Intellect De, Navin Fluor, GIC hou,
Orient cement, Atul
Bajaj Finance, Voltas, HPCL, Tube
invest & Cholamand

Top holdings
Hindustan Unil, INFY, Ultratech
Cement, TCS & Bajaj Auto
HDFC Bk, ICICI Bk, Indus Bk, Axis
Bank & Yes Bank
HDFC Bank, ICICI Bank, Axis Bank,
SBI & L&T.
Hero Moto, Tata Mot, M&M, Adani
Ports & Bosch
Maruti Suzuki, Bosch, Gillette, Bayer
Crop, Glaxosmithk
HDFC Bank, Maruti Suzuki India, ITC,
Eicher Motors

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade

CPR 2

4 Star

Lower

Higher

NA

4 Star

Lower

Higher

CPR 1

5 Star

Lower

Higher

NA

NA

NA

NA

CPR 2

NA

NA

NA

CPR 2

NA

NA

NA

Page |6

RETAIL RESEARCH
SBI Pharma Fund (G) (Pharma)
INF200K01446
ICICI Pru Exports and Other Services Fund
(G) (Services) INF109K01BB5

Scheme Name
AXIS Long Term Equity Fund (G)
INF846K01131
Birla Sun Life Tax Relief '96 (G)
INF209K01108
DSP BR Tax Saver Fund (G)
INF740K01185

Scheme Name
HDFC Balanced Fund (G)
INF179K01392
Tata Balanced Fund - Plan A (G)
INF277K01303
L&T India Prudence Fund (G)
INF917K01LB0
HDFC Prudence Fund - (G)
INF179K01AV8

144.17

1,010

1.32

29.12

24.69

17.60

47.39

872

1.82

30.15

21.94

15.72

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

Equity - Tax Planning

5 Year
Return Since
Return
Inception

32.80

9,291

4.69

29.95

20.16

19.80

23.36

2,252

5.81

27.74

15.80

10.81

36.26

1,267

8.59

25.91

16.25

14.48

NAV (Rs)

Fund Size
(Crs. Rs)

1 Year
Return

117.75

6,207

8.00

180.53

6,281

4.68

23.57

16.30

16.63

21.11

2,143

6.80

23.30

15.59

14.64

401.05

9,357

5.14

23.47

12.80

18.16

NAV
(Rs)

Fund Size
(Crs. Rs)

Reliance Monthly Income Plan (G)

INF204K01FD1

36.22

2,512

HDFC Monthly Income Plan - LTP (G)

INF179K01AE4

38.36

3,629

Scheme Name

Scheme Name
HDFC Liquid Fund (G)
INF179KB1HK0
JM High Liquidity Fund - (G)
INF192K01882

RETAIL RESEARCH

Sun Pharma, Lupin, Aurobindo Phar,

Divi's Lab & Strides Sha
Cipla, Motherson Sumi, Natco
Pharma, Astrazeneca Pha

NA

NA

NA

NA

CPR 1

NA

NA

NA

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade

HDFC Bk, Kotak Mahi Bank, TCS, Sun

Pharma & HDFC

CPR 1

5 Star

Lower

Higher

CPR 1

4 Star

Low

High

CPR 3

4 Star

Average

High

Sundaram-Clayton, Honeywell
Automation, Bayer Crop, ICRA
HDFC Bank, SBI, Indusind Bank, INFY
& BPCL

Hybrid - Equity Oriented (Atleast 65% in equity)

3 Year
5 Year
Return Since
Top holdings
Return
Return
Inception
Eq:ICICI Bank, Infy, HDFC Bank, RIL
25.25
14.95
16.80
& SBI

Crisil
Rank

Value Research
Rating

Risk Grade

Return
Grade

CPR 2

4 Star

Low

Higher

CPR 2

4 Star

Average

Higher

CPR 1

5 Star

Low

Higher

CPR 4

2 Star

Higher

Average

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade

CPR 2

3 Star

High

High

CPR 3

2 Star

Higher

Average

Top Holdings

Crisil
Rank

Value Research
Rating

Risk Grade

Return
Grade

Eq: HDFC Bank, INFY, Yes Bk, HCL &

Power Grid
Eq: INFY, ICICI Bank, ITC, HDFC Bank
& Indusind Bank
INFY, SBI, ICICI Bank, Axis Bk & L&T

Hybrid - Monthly Income Plan - Long Term (About 15% to 20% in equity)
1 Year
3 Year
5 Year
Return Since
Top holdings
Return
Return
Return
Inception
Eq: Sundaram-Clayton, Axis Bk, HDFC
7.51
12.73
10.38
10.77
Bank, RIL & Infy.
9.04

14.09

10.26

11.27

Liquid Funds
3 Year
Return Since
Return
Inception

Eq: SBI, Infy, ICICI Bank, L&T & Axis

Bk

NAV (Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3,059.00

30,622

8.00

8.40

8.84

7.34

Tbill, CP: SAIL, CBLO: Corporation

Bank, IOB,

CPR 1

3 Star

Average

Average

42.37

3,002

8.11

8.48

8.92

8.08

CD: OBC, Axis Bk, IOB, Canara

Bank. CP: Tata Pow

CPR 2

5 Star

Low

High

Page |7

RETAIL RESEARCH

1 Year
Return

2 Year
Return

Ultra Short Term Funds

3 Year
Return Since
Return
Inception

Scheme Name

NAV (Rs)

Fund Size
(Crs. Rs)

ICICI Pru Flexible Income Plan - Regular (G)

INF109K01746

294.70

16,334

8.90

9.06

9.51

IDFC Ultra Short Term Fund (G)

INF194K01FU8

21.85

4,200

8.72

8.94

9.42

Top Holdings

Crisil
Rank

Value Research
Rating

Risk Grade

Return
Grade

8.12

CP: HDFC, Vedanta, PFC, SIDBI. CD:

Axis Bk.

CPR 3

3 Star

Average

Average

7.70

Debt: Edelweiss comm, DLF,

Albrecht. CD: HDFC Bk. CP:

CPR 3

2 Star

High

Average

Short Term Income Funds

Scheme Name

NAV (Rs)

Fund
Size (Crs.
Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

CrisilRank

Value
Research
Rating

Risk
Grade

Return
Grade

Birla Sun Life Treasury Optimizer - Ret (G)

INF209K01LV0

295.23

5,230

10.98

10.72

10.94

7.88

GOI, Bonds: Reliance Jio Info,

Indiabulls Hou, STFC.

CPR 2

5 Star

Lower

Higher

Sundaram Select Debt - STAP (G)

INF903J01FG3

26.72

723

8.29

8.74

9.16

7.33

Debt: STFC, SIDBI, LIC Hou, CD:

Corp Bank, IDBI Bank

CPR 3

2 Star

High

Low

NAV
(Rs)

Fund
Size (Crs.
Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

Risk Grade

Return
Grade

18.90

924

12.63

12.19

12.98

10.26

GOI: 7.88% GOI 2030, 8.3% GOI

2040, 8.3% GOI 2042

5 Star

Average

Higher

17.60

1,026

10.75

10.29

10.86

9.72

CPR 2

4 Star

Low

Average

17.08

4,999

9.59

9.79

10.24

9.21

CPR 2

4 Star

Lower

High

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

SBI Magnum Gilt Fund - Long term (G)

INF200K01982

33.71

1,933

10.97

12.84

11.27

L&T Gilt Fund (G)

INF917K01BP1

39.24

111

12.50

12.74

11.99

Income Funds
Scheme Name
ICICI Pru Long Term Plan - Retail (G)
INF109K01712
UTI-Dynamic Bond Fund (G)
INF789F01JQ5
HDFC Medium Term Opportunities Fund
(G) INF179K01DC2

Scheme Name

Gilt Funds
Return Since
Inception

GOI: 7.88% GOI 2030, 8.6% GOI

2028, Debt: Reliance
Debt: REC, HDFC, Petronet. CD:
Vijaya Bk, Canara Bank

Top Holdings

Crisil
Rank

Value Research
Rating

Risk Grade

Return
Grade

8.11

8.32% GOI 2032, 9.23% GOI 2043,

9.2% GOI 2030, 8.17%

CPR 1

5 Star

Low

Higher

8.74

G sec: 7.88% GOI 2030, 8.13% GOI

2045

CPR 1

5 Star

Low

Higher

Notes:
NAV value as on July, 25 2016. Portfolio data as on June 2016.
Returns are trailing and annualized (CAGR).
The notations '5 Star & CPR 1' (used by VR &Crisil respectively) are considered as top in respective rating and ranking scales.
The performance of the funds are rated and classified by Value Research in the following ways. Top 10% funds in each category were classified ***** funds, the next 22.5% got a **** star, while the middle 35% got a ***, while the next 22.5% and
bottom 10% got ** and * respectively.
The criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAVs over the Quarter Ended Dec 2015, Based on percentile of number of schemes considered in the category, the schemes are ranked as follows:
CPR 1- Very Good performance, CPR 2 - Good performance, CPR 3 - Average performance, CPR 4 - Below average and CPR 5 - Relatively weak performance in the category.
Schemes shortlisted based on the corpus and age. Final picks arrived from return score (respective weightage given for rolling returns for 1m, 3m, 6m, 1yr, 2yr & 3yr) and risk score. Schemes from Quantum and JM Mutual Funds have not been considered.

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RETAIL RESEARCH
Mutual Fund NEWS:

Dividend

DSP Blackrock Mutual Fund has decided to temporarily suspend the below mentioned transactions in DSP
BlackRock Micro Cap Fund, an open ended diversity equity growth scheme with effect from August 10,
2016, as there is a possibility that further large inflows into the Scheme may prove detrimental to the
interest of the existing unit holders:

Scheme Name

Mr. Akash Singhania ceases to be the fund manager of DHFL Pramerica Midcap Opportunities Fund with
effect from August 1, 2016. Further, Mr. Avinash Agarwal has been appointed as the fund manager (equity)
of the said scheme with effect from August 1, 2016. Mr. Kumaresh Ramakrishnan continues to manage the
debt portion of the scheme.
Kotak Mutual Fund has announced change in exit load structure under Kotak Equity Arbitrage Scheme, an
open ended equity growth scheme, with effect from 05 August 2016. Accordingly, the revised exit load
structure will be: If redeemed or switch out (including SIP/STP) within 30 days from the date of allotment of
units, irrespective of the amount of investment 0.25%. If units redeemed or switched out (including
SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment Nil.

Record Date

ICICI Pru Business Cycle Fund - Series 2 - Dir (D)

ICICI Pru Growth Fund - Series 2 (D)
ICICI Pru Infrastructure Fund - (D)
ICICI Pru Value Fund - Series 4 - Regular (D)
Sundaram Rural India Fund - Direct (D)
Sundaram S.M.I.L.E Fund - Direct (D)
Sundaram Select Micro Cap - Sr.V - Direct (D)
UTI-Banking Sector Fund - Direct (D)

05-08-2016
05-08-2016
05-08-2016
05-08-2016
05-08-2016
05-08-2016
05-08-2016
10-08-2016

Gross
(%)
7.50
7.50
11.50
7.50
5.00
5.00
5.00
25.00

Ex-Dividend
Date
08-08-2016
08-08-2016
08-08-2016
08-08-2016
08-08-2016
08-08-2016
08-08-2016
11-08-2016

NFO:
Scheme name
Balanced
UTI-CPO - Sr.VIII - I(1278Days) - Reg (G)
Equity
Sundaram LT MC Tax Advantage Fund - Sr.III (G)
Mahindra Kar Bachat Yojana - Regular (G)
Fixed Maturity Plans
DHFL Pramerica Fixed Duration Fund - Sr.32 (G)
UTI-FTI - Series XXV - III(1100Days)-Reg (G)
DHFL Pramerica Fixed Duration Fund - Sr.33 (G)
DHFL Pramerica Fixed Duration Fund - Sr.34 (G)
DHFL Pramerica Fixed Duration Fund - Sr.31 (G)
Sundaram FTP - Plan HS (G)
ICICI Pru FMP - Sr.79 - 1118Days Plan K - Reg (G)
ICICI Pru FMP - Sr.79 - 1118Days Plan L - Reg (G)
Reliance Fixed Horizon - XXXI - Sr.8 (G)
DHFL Pramerica Fixed Duration Fund - Sr.30 (G)
ICICI Pru FMP - Sr.79 - 1125Days Plan H - Reg (G)
HDFC FMP - 1148Days-Aug2016(1)(XXXVI) (G)
Birla Sun Life FTP - Series NR (G)

RETAIL RESEARCH

Open Date

Close Date

Minimum Investments

02-08-2016

16-08-2016

5000

08-08-2016
22-08-2016

11-11-2016
07-10-2016

500
500

09-08-2016
05-08-2016
05-08-2016
05-08-2016
08-08-2016
10-08-2016
09-08-2016
09-08-2016
08-08-2016
05-08-2016
26-07-2016
01-08-2016
04-08-2016

22-08-2016
19-08-2016
18-08-2016
18-08-2016
16-08-2016
12-08-2016
11-08-2016
11-08-2016
10-08-2016
09-08-2016
08-08-2016
08-08-2016
08-08-2016

5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000

Tenure

Structure

1278 Days

CLOSE

10 Years

CLOSE
OPEN

1100 Days
1100 Days
2464 Days
2464 Days
1100 Days
1100 Days
1118 Days
1118 Days
1419 Days
1099 Days
1125 Days
1148 Days
1099 Days

CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE

Page |9

RETAIL RESEARCH
Global Updates:

(Source: AMC Newsletters)

India:
Indian service providers enjoyed a welcome upturn in demand during July with the Nikkei Services Purchasing Managers' Index (PMI) rising from 50.3 in June to a three-month high of 51.9 in
July.
Indian factory activity grew at its fastest pace in four months in July as export orders jumped, but prices remained muted, giving room to the central bank to ease policy further if needed. The
Nikkei/Markit Manufacturing Purchasing Managers Index (PMI) rose to 51.8 in July from Junes 51.7, marking its seventh month above the 50 level that separates growth from contraction.
Asia:
Japan's Ministry of Finance reported that last week foreign investors bought JPY1.091 trillion of Japanese bonds.
Foreign investors turned net buyers of Japanese stocks for the first time in three months in July. In the July 4-29 period, foreigners posted net buying of 128,972 million yen, against a selling
excess of 262,972 million yen in June.
Japans services Purchasing Managers Index (PMI) crossed the 50-point mark during the month of July, a sign of optimism after the contraction witnessed last month as companies shrugged off
business backlogs amid a steady revival in new orders. The IHS Market Japan Services Purchasing Managers Index (PMI) rose to 50.4 in July from 49.4 in June on a seasonally adjusted basis.
The monetary base in Japan soared 24.7 percent on year in July, coming in at 402.457 trillion yen. That follows the 25.4 percent spike in June.
Japans manufacturing Purchasing Manufacturers Index (PMI) declined for the fifth straight month in a row in July, albeit at a pace slower than that in June. However, new export orders
contracted at the fastest pace in 3-1/2 years, a sign that a rising yen is hurting export business. The Markit/Nikkei final manufacturing PMI rose to 49.3 in July, up from 48.1, thought still
remaining below the 50-point mark that separates expansion from contraction in the manufacturing sector.
US:
The number of Americans filing for unemployment benefits unexpectedly rose last week, while renewed job cuts in the energy sector boosted layoffs announced by U.S.-based employers in
July. Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 269,000 for the week ended July 30.
New orders for U.S. factory goods fell for a second straight month in June on weak demand for transportation equipment and capital goods, but signs of stabilization in business spending
offered some hope for struggling industries. The new orders for manufactured goods declined 1.5 percent after a downwardly revised 1.2 percent decrease in May.
U.S. private employers added 179,000 jobs in July, above economists' expectations. Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of
170,000 jobs, with estimates ranging from 140,000 to 190,000 jobs added.
U.S. consumer spending rose more than expected in June as households bought goods and services, suggesting strength that appeared to be sustained early in the third quarter with auto sales
surging to an eight-month high in July. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4 percent in June after a similar gain in May.
Markit's US manufacturing index surge to 9-month highs, printing at the expected 52.9 led by faster growth of output, new orders, and employment. However, in true Chinese-style, US ISM
Manufacturing missed expectations (52.6 vs 53.0) with new orders and employment dropping.
U.S. construction spending fell for a third straight month in June as outlays dropped across the board, suggesting a downward revision to the second-quarter economic growth estimate
published last week. Construction spending declined 0.6 percent to its lowest level since June 2015 after an upwardly revised 0.1 percent dip in May. Construction outlays were up 0.3 percent
from a year ago.
UK:
UK interest rates have been cut from 0.5% to 0.25% - a record low and the first cut since 2009. The Bank of England has also signalled that rates could go lower if the economy worsens. The Bank
announced additional measures to stimulate the UK economy, including a 100bn scheme to force banks to pass on the low interest rate to households and businesses. It will also buy 60bn of
UK government bonds and 10bn of corporate bonds.
Euro Zone:
The Eurozone final PMI services-sector index strengthened to 52.9 from the flash reading of 52.7, which was marginally higher than expected, while the composite index strengthened to 53.2
from 52.9. The composite reading was the strongest for six months and the index has been in expansion territory for 37 successive months.
Euro zone retail sales were stable in June compared to the previous month, as consumers reduced their purchases of fuel. Eurostat said retail sales, a proxy for household spending, were flat in
June month-on-month, in line with market expectations, and 1.6 percent higher on a yearly basis in the 19-country currency bloc.
Euro zone producer prices rose by more than expected in June for a second consecutive month, driven by soaring energy prices. Eurostat said prices at factory gates in the 19 countries sharing
the euro increased 0.7 percent in monthly terms for a 3.1 percent year-on-year decline.

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RETAIL RESEARCH

The German manufacturing PMI index was revised up marginally to 53.8 for July from the 53.7 flash reading with markets expecting an unchanged figure, although this was still below Junes
reading of 54.5. Although new orders for German producers edged slightly lower, it was still the second highest reading for 28 months and export orders rose significantly for the month. There
was also the strongest increase in production for over two years.
The eurozone's manufacturers are shrugging off fears about the impact of Britain's vote to leave the European Union, and are enjoying "steady growth" in the face of the vote. Markit's
manufacturing PMI for the eurozone was a marginal beat on the flash reading, released on July 22, which showed a score of 51.9.

Economic Calendar:
Date
08-08-2016
08-08-2016
08-08-2016
08-09-2016
08-09-2016
08-09-2016
08-09-2016
08-09-2016
08-09-2016
08-09-2016
08-09-2016
08-09-2016
08-10-2016
08-10-2016
08-10-2016
08-10-2016
08-10-2016
08-10-2016
08-10-2016
08-10-2016
08-10-2016
08-11-2016
08-11-2016
08-11-2016
08-11-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016
08-12-2016

Country
Germany
US
US
Germany
India
UK
UK
UK
US
US
US
US
India
India
Japan
Japan
Japan
US
US
US
US
US
US
US
US
European Monetary Union
European Monetary Union
European Monetary Union
Germany
Germany
India
India
India
US
US
US

RETAIL RESEARCH

Event
Industrial Production (Month over Month)
Labor Market Conditions Index (Level)
TD Ameritrade IMX (Level)
Merchandise Trade (Level)
RBI Third Bi-monthly Monetary Policy Statement
Merchandise Trade (Level)
Industrial Production (IP-Y/Y)
Merchandise Trade (Imports-Y/Y)
NFIB Small Business Optimism Index (level)
Productivity and Costs (Unit labor costs - Q/Q change - SAAR)
Redbook
Wholesale Trade (Inventories - M/M change)
Reserve Money (change on year)
Foreign tourist arrivals (YoY Chg)
Producer Price Index (Month over Month)
Machine Orders (M/M Change)
Tertiary Index (Month over Month)
MBA Mortgage Applications
JOLTS (Job Openings)
EIA Petroleum Status Report
Treasury Budget (Treasury Budget - Level)
Jobless Claims
Import and Export Prices (Export Prices - M/M change)
Bloomberg Consumer Comfort Index
EIA Natural Gas Report
Industrial Production (Month over Month)
GDP Flash (Quarter over Quarter)
Industrial Production (Year over Year)
CPI (Month over Month)
GDP Flash (Quarter over Quarter)
FX reserve (change on wk)
CPI Inflation - Combined (YoY Chg)
IIP (YoY Chg)
Money Supply
Fed Balance Sheet
Retail Sales (Retail Sales - M/M change)

Period
Jun, 2016
Jul, 2016
Jul, 2016
Jun, 2016
2016-17
Jun, 2016
Jun, 2016
Jun, 2016
Jul, 2016
wk8/6, 2016
Jun, 2016
Wk to Aug 5
Jul
Jul, 2016
Jun, 2016
Jun, 2016
wk8/5, 2016
Jun, 2016
wk8/5, 2016
Jul, 2016
wk8/6, 2016
Jul, 2016
wk 8/7, 2016
wk8/5, 2016
Jun, 2016
Q2, 2016
Jun, 2016
Jul, 2016
Q2, 2016
Wk to Aug 5
Jul
Jun
wk8/1, 2016
wk8/10, 2016
Jul, 2016

Frequency
Monthly
Monthly
Monthly
Monthly

Unit
Percent

Monthly
Yearly
Yearly
Monthly
Quarterly
Weekly
Monthly
Weekly
Monthly
Monthly
Monthly
Monthly
Weekly
Monthly
Weekly
Monthly
Weekly
Monthly
Weekly
Weekly
Monthly
Quarterly
Yearly
Monthly
Quarterly
Weekly
Monthly
Monthly
Weekly
Weekly
Monthly

Billion
Percent
Percent

Billion

Percent
Percent
pct
pct
Percent
Percent
Percent
Million
Billion
Percent

Percent
Percent
Percent
Percent
Percent
$ mln
pct
pct

Percent

Previous
-1.3
-1.9
5
22.2
0
-9.88
1.4
2.8
94.5
4.5
0
0
15.22
7.3
-0.1
-1.4
-0.7
0
5.5
0
6.3
0
0.8
0
0
-1.2
0.3
0.5
0.3
0.7
2808.6
5.77
1.2
0
0
0.6

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RETAIL RESEARCH
08-12-2016
08-12-2016
08-12-2016
08-12-2016

US
US
US
US

RETAIL RESEARCH

PPI-FD (PPI-FD - M/M change)

Consumer Sentiment (Sentiment Index - Level)
Business Inventories (Inventories - M/M change)
Baker-Hughes Rig Count (N. Amer. Rig Count)

Jul, 2016
Aug, 2016
Jun, 2016
wk8/12, 2016

Monthly
Monthly
Monthly
Weekly

Percent
Percent

0.5
90
0.2
586

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RETAIL RESEARCH
Economy Updates
US Dollar Vs Indian Rupee

Relationship among policy rates and benchmarks:

The Indian rupee on Friday strengthened against the US dollar, after local equity markets gained
over 360 points. This is the eighth out of nine trading sessions when the rupee closed higher.

Ballooning prices of food articles pushed up India's annual wholesale price index sharply to
1.62% for June from 0.79% for the month before. This kept the inflation level in the positive
domain for the third month after 17 months in the negative.

WPI Inflation (YoY)

Deposit vs. Advance Growth (YoY)%

The Wholesale Price Index (WPI) based inflation for June 2016 surged 1.62 per cent from a level of
0.79 per cent in the previous month. The rise in WPI could be attributed to the spurt in food articles
inflation -- which has about 15 percentage points weightage -- at 8.18 per cent in June from a level
of 3.12 per cent in the same month last fiscal.

The growth rate of non-food credit of banks fell marginally to 9.87% (yo-y) in the fortnight
ended July 22, as compared to the 10.02% seen in the previous fortnight. Outstanding nonfood credit in the banking system stood at Rs 71.63 lakh crore as on July 22, as compared to
Rs 65.19 lakh crore in the same fortnight last year a rise of Rs 6.44 lakh crore. Similarly,
the rate of growth in deposits fell further to 8.71% (y-o-y) as compared to 9.52%% (y-o-y) in
the previous fortnight.

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RETAIL RESEARCH
Money Stock (M3) (YoY) (%)

Corporate Bonds Spread Vs Gilt Securities:

India's reserve money grew 13.8 pct year on year in week to July 22 vs 10.8 pct year ago. Currency
in circulation grew 16.7 pct y-o-y in week to July 22 vs 10.3 pct year ago.

Corporate bond yields ended down last week. The one year AAA credit spreads fell by 12 bps
while 10 year spread fell by 2 bps.

Foreign Exchange Reserves (mn of USD)

Liquidity support from RBI (Bn. Rs)

India's foreign exchange reserves rose $2.8 billion in the week ended July 29 to a record high of
$365.5 billion. In July, foreign portfolio investors bought a record Rs 7,000 crore of bonds and
another Rs 11,000 crore in equities in the local market.

RBI infused average gross liquidity via Repo under LAF window worth Rs 3,971 Cr in this week
compared to an infusion of Rs 7,207 Cr in previous week. Infusions via the MSF route averaged
Rs 26 Cr. The Call rate ended at 6.39% compared to 6.46% from the previous week. The CBLO
ended at 5.73% compared to 6.28% in the previous week.

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RETAIL RESEARCH
MFs net investment in Debt (Rs Crs):

In June, MF bought worth Rs. 43,814 crore. In July, they bought debt sec worth Rs.19,174.8 crore. So
far in August, they sold debt worth Rs. 147.9 crore.

FIIs net investment in Debt (RsCrs):

In June, FII sold bonds worth Rs. 6,505 crore. In July, they bought debt worth Rs. 6,965.23 crore. So
far in August, they sold debt worth Rs. 1,652.6 crore.

RETAIL RESEARCH

Certificates of Deposit (%):

CD rates are trending lower in the recent periods. The CD rates hovered around 7.25%
levels (as per the latest data) (one year CD).

Commercial Paper (%):

Rates of Commercial papers are seen trading higher in the recent periods. The CP rates are
hovering around 8.25% levels (one year maturity CP).

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RETAIL RESEARCH

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022)
2496 5066 Website: www.hdfcsec.com Email: hdfcsecretailresearch@hdfcsec.com
Disclaimer: Mutual Funds and Debt investments are subject to risk. Past performance is no guarantee for future performance This document has been prepared by HDFC Securities Limited and is meant for sole
use by the recipient and not for circulation. This document is not to be reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security.
The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as such. We may have from time to time positions or options
on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment banking, or other services for, any company mentioned in this document. This report is intended for
non-Institutional Clients
This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry prices and/or other parameters mentioned in this document may or
may not match or may be contrary with those of the other Research teams (Institutional, PCG) of HDFC Securities Ltd. HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no.
INH000002475."

RETAIL RESEARCH

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