Recommended Funds 2014 - Performance Update · Recommended Funds 2014 - Performance Update Prepared...

Recommended Funds 2014 -

Performance Update

Prepared by: iFAST Investment Advisory Division

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Index

Equity

Large Cap Funds……………………………………………………………………………………………………………….5

Mid Cap and Small Cap Funds ........................................................................................ 11

Multi Cap Funds ............................................................................................................. 16

Contra & Value Funds .................................................................................................... 22

Dividend Yield Funds ..................................................................................................... 25

Index Funds ................................................................................................................... 27

Equity Linked Savings Scheme (ELSS) .............................................................................. 30

Global Funds ................................................................................................................. 36

Banking Fund ................................................................................................................. 40

Pharma Funds................................................................................................................ 42

Infrastructure Funds ...................................................................................................... 44

FMCG Fund .................................................................................................................... 48

Technology Fund ........................................................................................................... 50

Debt

Short Term Funds .......................................................................................................... 52

Dynamic Bond Funds ..................................................................................................... 58

Income Funds ................................................................................................................ 62

GILT – Short Term Fund ................................................................................................. 66

GILT – Long Term Funds ................................................................................................. 68

Hybrid

Balanced Funds .............................................................................................................. 71

Monthly Income Plans (MIPs) ......................................................................................... 74

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Note to Investors

Current - Period covered for Analysis

Category of Funds Time Periods used for Current Analysis

ELSS November 2013 to June 2014

Equity Funds December 2013 to June 2014

Debt Funds December 2013 to June 2014

Hybrid Funds December 2013 to June 2014

The current half-yearly review considers the period mentioned above. For our Recommended Funds

released for 2014, the period under review were as follows:

Category of Funds Time Periods used for Previous Analysis

ELSS November 2010 to October 2013

Equity Funds December 2010 to November 2013

Debt Funds December 2012 to November 2013

Hybrid Funds December 2011 to November 2013

Fundamental Changes to the Scheme

The following schemes have undergone changes and the same have been mentioned below.

Old Fund Name Action New Fund Name

BNP Paribas Tax Advantage Plan (ELSS Name Change BNP Paribas Long Term Equity Fund

Franklin India Index Fund – BSE Sensex Plan Scheme Merger Franklin India Index Fund – NSE Nifty Plan

Templeton India Short Term Income Plan Name Change Franklin India Short Term Income Plan

Templeton India Income Builder Account Name Change Franklin India Income Builder Account

Fund House Acquisition

Kotak Mahindra AMC has announced that it will acquire all the domestic schemes of PineBridge Investments India, subject to regulatory approval.

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Our Recommended Funds

5

Recommended Large Cap Equity Funds

6

ICICI Prudential Focused Bluechip Equity Fund

Investment Strategy: The fund is mandated to invest into 20 large-cap stocks from among the top 200 available on the National Stock Exchange of India (NSE) in terms of market capitalization. However, the fund has the flexibility to increase the number of stocks to more than 20, if the fund corpus crosses INR 1,000 crore. The fund follows a bottom-up approach to select bargain stocks and does not have a sectoral bias.

Our Analysis: The fund continues to remain a pure large cap fund with an allocation into large cap stocks being at 95% as of June 2014. In our previous analysis, we had written that during the time period of December 2010 to November 2013, the fund management team was betting big on 2 sectors that is banks and software. However, during the current period of analysis, the allocation into the banking sector has significantly increased to 30% in June 2014 as against 22% in December 2013. During this period, a few banks like Axis Bank, Punjab National Bank, IndusInd Bank and Yes Bank have found a place in the portfolio. On the other hand, the fund manager has reduced the allocation into the software sector, specifically in Infosys whose holding in the portfolio was reduced to 5% from 7% during the period of analysis.

Inception Date: May 23,2008 Fund Manager Name: Manish Gunwani AUM (as at June 2014): Rs. 6644.61 crores

Exit Load: 1% on or before 1 year, Nil after 1year.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)

Company Name Dec 2013

(%) Company

Name June

2014 (%) Banks 22.41 Banks 30.45

HDFC Bank Ltd. 8.71 HDFC Bank 8.40

Software 15.76 Software 13.24

Infosys Ltd. 7.37 ICICI Bank 7.84

Consumer Non

Durables 7.93 Auto 7.97

ICICI Bank Ltd. 7.10 Infosys Ltd. 5.16

Pharmaceuticals 6.39 Consumer Non Durables 5.84

ITC Ltd. 6.53 ITC Ltd. 5.02

Auto 6.37 Auto Ancillaries 4.78

Kotak Mahindra

Bank Ltd. 4.64 State Bank Of India 4.82

Source: ACE, iFAST Compilations


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Performance of the Fund with Benchmark

ICICI Prudential Focused Bluechip Equity Fund-Reg(G) CNX Nifty Index

Source: ACE, iFAST Compiltaions

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Franklin India Bluechip Fund

Investment Strategy: The fund’s investment strategy is a combination of value and growth style of investing. The fund generally follows a bottom-up approach to stock selection and does not have a bias towards any particular sector. The stocks in the fund belong to the large-cap domain, which are defined as stocks whose market capitalization is higher than that of the 100th stock in the CNX 500 Index

Our Analysis: We had written in our previous analysis that banks and software were among the top 5 sectoral picks. This is a trend that we have observed in the current analysis also and it is interesting to note that the fund manager has drastically increased the allocation into banks from 21% in December 2013 to 28% in June 2014. Another observation that can be made is that one of the top 5 sectoral picks during December 2013 was Petroleum Products which has been replaced with Construction Projects as one of the top 5 favoured sectors during June 2014. Under Construction Projects only Larsen & Toubro has been included and it is this allocation which has been increased to 5% from 2% during our current period of analysis. The fund management team is confident about Bharti Airtel, Infosys and ICICI Bank in these 7 months of analysis as well, as they continue to be among the top 5 stock picks in the portfolio.

Inception Date: December 1, 1993 Fund Manager Name: Anand Radhakrishnan & Anand Vasudevan AUM (as at June 2014): Rs. 5228.09 crores Exit Load: 1% within 1 year from the date of allotment. Nil after 1 year from the date of allotment.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company

Name June

2014 (%) Banks 21.00 Banks 28.15

Infosys Ltd. 8.61 ICICI Bank 7.60


Bharti Airtel Ltd. 7.97 Infosys Ltd. 7.14

Pharmaceuticals 9.76 Pharmaceuticals 8.00

ICICI Bank Ltd. 6.18 HDFC Bank 7.07

Petroleum

Products 8.03 Telecom - Services 6.77

Reliance

Industries Ltd. 5.75 Bharti Airtel Ltd. 6.77

Telecom -

Services 7.97 Construction Project 5.04

Dr. Reddys

Laboratories Ltd. 5.09 Larsen & Toubro Ltd. 5.04



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Franklin India Bluechip Fund(G) S&P BSE SENSEX


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Birla Sun Life Frontline Equity Fund

Investment Strategy: The fund intends to be a diversified fund having an exposure across different industries and/or sectors which will be similar to its benchmark index (S&P BSE 200). The fund will have the same sectoral weights as that of the benchmark index; however, the fund manager has the flexibility to select the stocks within a particular sector. The fund will invest into frontline stocks which refer to companies that will provide superior growth opportunities as per the Fund.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)

Company Name

Dec 2013 (%)

Company Name June 2014

(%) Banks 18.71 Banks 23.75

ICICI Bank Ltd. 5.20 ICICI Bank 5.89


Infosys Ltd. 5.12 Larsen & Toubro Ltd. 4.81

Consumer Non

Durables 9.95 Finance 9.88

ITC Ltd. 4.81 HDFC Bank 3.97

Pharmaceuticals 7.72 Consumer Non Durables 7.57

Reliance

Industries Ltd. 4.14 ITC Ltd. 3.93

Finance 7.40 Pharmaceuticals 5.43

HDFC Bank Ltd. 3.92 Infosys Ltd. 3.06



Inception Date: August 30, 2002 Fund Manager Name: Mahesh Patil AUM (as at June 2014): Rs. 5,859.25 crores Exit Load: 1% Within 365 days from the date of allotment. Nil after 365 days from the date of allotment.

Our Analysis: A perusal of the portfolio shows that the top 5 sectors during our 7 months of analysis include Banks, Software, Consumer Non-Durables, Finance and Pharmaceuticals. Here again, as in the previous analysis, Banking and Software continue to be among the top 5 sectoral picks during all the months under analysis. It can be seen that the Fund Manager has increased the allocation into the banking sector from 19% to 24% during the current review period. Among the banking stocks, the new additions have been Yes Bank and Kotak Mahindra Bank. In the previous analysis, we had found that ICICI Bank, ITC and Reliance Industries were among the top 5 stocks during all the 36 months of analysis. ICICI Bank and ITC continue to be among the top 5 holdings during the 7 months of analysis, while the allocation into Reliance Industries has reduced from 4.14% to 2.76%.

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Birla Sun Life Frontline Equity Fund(G) S&P BSE 200


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Canara Robeco Equity Diversified

Investment Strategy: The fund’s investment strategy is based on bottom-up approach to stock picking. It is mandated to invest into companies with a strong competitive position in good business and is having a quality management team. The fund will be actively managed with the support of in-house research. While selecting stocks, the emphasis will be on fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earning drivers. Our Analysis: The fund has made drastic changes in sectoral allocations, as in the previous analysis, Banks, Consumer-Non-Durables and Software were among the top 5 sectoral picks during all the months under study. As against this, Banks, Software and Auto are among the top 5 sectoral picks during all the 7 months under the current analysis. The fund’s positive stance on the banking sector can be seen from the fact that the allocation into the same has increased from 18% in December 2013 to 25% in June 2014. It needs to be noted here that although Software continues to be among the favoured sectors, yet the allocation into the same has been reduced from 17% to 9% during the current analysis period. Among the IT stocks, the allocation into Infosys was reduced to 2% from 7% during the period of analysis. It is also interesting to note that during the months of May and June 2014, Construction Projects have turned out to be among the top 5 sectoral holdings of this fund. In this case, the clear winner is L&T whose allocation has been increased from 4% to 6% while Voltas from the same sector has found a place in the portfolio during the current period of analysis.

Inception Date: September 16, 2003 Fund Manager Name: Ravi Gopalakrishnan AUM (as at June 2014): Rs. 715.92 crores Exit Load: 1% within 1 year from the date of allotment. Nil after 1 year from the date of allotment.

Top 5 Sectors

Top 5 Companies

Industry Dec

2013 (%)

Industry June 2014 (%)

Company Name Dec

2013 (%)

Company Name June 2014 (%)

Banks 18.06 Banks 25.2

Infosys Ltd. 7.23 ICICI Bank Ltd. 6.26


ICICI Bank Ltd. 6.79 Larsen & Toubro Ltd. 5.59

Auto 9.11 Auto 7.26

Reliance

Industries Ltd. 5.67 HDFC Bank Ltd. 5.13

Consumer Non

Durables 8.41 Construction Project 6.84

Tata Consultancy

Services Ltd. 5.51 State Bank Of India 3.61

Pharmaceuticals 7.76 Petroleum Products 6.77

HDFC Bank Ltd. 4.71 Tata Consultancy Services 3.22



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Canara Robeco Equity Diversified S&P BSE 200


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SBI Magnum Equity Fund

Investment Strategy:

Our Analysis: An analysis of the portfolio shows that the fund’s allocation into the banking sector has increased from 22% to 30%. This has been done by increasing the fund’s holdings into stocks like ICICI Bank, HDFC Bank, Axis Bank and including YES Bank into the portfolio. In our earlier analysis, ICICI Bank had turned out to be among the top 5 stock picks during all the months under study and there was no change in this trend during the current 7 months of analysis as well. During the current analysis, the fund has reduced the allocation into Consumer Non-Durables from 9% to 5%. In this case, the fund not only reduced its allocation into ITC but have even exited from stocks like Nestle India and Asian Paints and in this way Consumer Non-Durables was no longer among the top 5 sectoral picks in June 2014, a position it has held continuously since September 2012.

Inception Date: January 1, 1991 Fund Manager Name: R. Srinivasan AUM (as at June 2014): Rs. 1,159.53 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year

The fund will invest into equity and equity related instruments, derivatives, debt instruments, Government Securities, money market instruments and derivative instruments.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)

Company Name

Dec 2013 (%)

Company Name June

2014 (%)


Reliance

Industries Ltd. 7.57 ICICI Bank Ltd. 9.42


HDFC Bank Ltd. 7.51 HDFC Bank Ltd. 9.14

Petroleum

Products 10.51 Petroleum Products 9.44

ITC Ltd. 7.25 Reliance Industries Ltd. 6.91

Consumer Non

Durables 9.27 Pharmaceuticals 5.51


Pharmaceuticals 7.20 Auto 5.49

Infosys Ltd. 6.88 Tata Consultancy Services Ltd. 5.01



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SBI Magnum Equity Fund-Reg(G) CNX Nifty Index


11

Recommended Mid Cap and Small Cap Funds

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HDFC Mid-Cap Opportunities Fund

Investment Strategy: The investment strategy of the fund will be to focus on small and mid-cap companies. The fund will follow a buy and hold strategy and the portfolio will be fairly diversified.

Our Analysis: Although midcap stocks have been on a roll this year, the fund manager has not followed the herd mentality and continues to follow the buy and hold strategy. As of June 2014, the fund held ~66 stocks out of which 92% have been a part of the portfolio during the 7 months under analysis. In our previous analysis, we had mentioned that the fund had a liking towards Industrial Products, Pharmaceuticals and Banks as they had been among the top 5 sectoral picks. These sectors continue to be in favour during the current period of analysis as well. This time around, there have been a few new additions in the portfolio like Power Finance Corporation, Thermax, Dhanuka Agritech, DB Corp and Navneet Education.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Pharmaceuticals 15.21 Banks 16.82

Supreme

Industries Ltd. 4.14 Aurobindo Pharma Ltd. 3.39

Banks 14.60 Pharmaceuticals 12.36

Mindtree Ltd. 3.89 Ipca Laboratories Ltd. 2.71

Industrial

Products 14.42 Industrial Products 11.33

Ipca Laboratories

Ltd. 3.68 Union Bank Of India 2.28

Software 13.90 Consumer Durables 8.18

Aurobindo

Pharma Ltd. 3.48 Mindtree Ltd. 2.26

Consumer

Durables 8.73 Software 7.16

Persistent

Systems Ltd. 2.93 Solar Industries (India) Ltd. 2.25



Inception Date: June 25, 2007 Fund Manager Name: Chirag Setalvad AUM (as at June 2014): Rs. 5,912.07 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year.

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HDFC Mid-Cap Opportunities Fund(G) CNX Midcap


13

IDFC Sterling Equity Fund


Our Analysis: An actively managed midcap fund, it continues to religiously follow this trend during the current analysis as well. In our previous review, we had observed that during all the months of analysis, Finance and Consumer Non-Durables were amongst the top 5 sectoral picks. However, it can be seen that during the current 7 months under analysis, it was Pharmaceuticals which was among the top 5 sectoral picks during the entire period of analysis. Another interesting observation here is that the Fund Manager seems to be showing an interest in Auto Ancillaries whose allocation has increased from 3% to 10% during the time period December 2013 - June 2014, making it one of the top 5 sectoral picks during the months of May and June 2014. As far as the stocks are concerned, some of the favourite picks of the fund like Nestle India, Mahindra & Mahindra Financial Services and Vardhman Textiles which had continuously found a place in the portfolio during the entire 36 months of analysis is no longer a part of the fund. On the other hand, Gujarat Pipavav Port which made its entry in the portfolio in December 2013 is the largest holding in June 2014 with an allocation of 4%.

Inception Date: March 7, 2008 Fund Manager Name: Aniruddha Naha AUM (as at June 2014): Rs. 1,590.82 crores Exit Load: 2% (if redeemed within 18 months from date of allotment).

The fund intends to invest into well-managed growth companies which are available at reasonable valuations. The portfolio of this fund would consist of emerging businesses and companies which are aspiring leaders in their respective field of operations. The 3 guiding principles on the basis of which this portfolio is constructed are the following: (a) Sustainable company profits drive long term share value, (b) Acquire stocks at reasonable value and (c) Monitor market interest to ensure consistent performance.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)

Company Name Dec

2013 (%) Company Name

June 2014 (%)

Software 10.30 Pharmaceuticals 10.97

Vardhman Textiles

Ltd. 5.54 Gujarat Pipavav Port Ltd. 4.39

Textiles - Cotton 7.89 Auto Ancillaries 9.86

Bajaj Finance Ltd. 4.93 Wabco India Ltd. 4.11

Finance 7.71 Consumer Non Durables 9.41

Tech Mahindra Ltd. 4.43 UPL Ltd. 3.86

Consumer Non

Durables 7.48 Pesticides 8.55

VA Tech Wabag Ltd. 4.40 Exide Industries Ltd. 3.65

Pharmaceuticals 7.41 Finance 8.51

ING Vysya Bank Ltd. 4.40 Mcleod Russel India Ltd. 3.62



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IDFC Sterling Equity Fund-Reg(G) CNX Midcap


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SBI Emerging Businesses Fund

Investment Strategy: The fund’s main focus will be on emerging business themes which are based on export/outsourcing opportunities and/or global competitiveness of such themes. Emerging domestic investment themes will also be a focus area for this fund. Our Analysis: The fund continues to maintain a compact portfolio with 24 stocks as on June 2014. Among these 24 stocks, 20 have been a part of the portfolio during all the 7 months of analysis. The 4 new additions in the portfolio during this period include stocks like AIA Engineering, The Great Eastern Shipping, Solar Industries (India) and Yes Bank. In the current review, the top 5 sectoral picks during all the months of analysis were Consumer Non-Durables, Banks, Trading, Finance and Pharmaceuticals. We had observed in our previous analysis that some of the long term bets of this fund included names like Page Industries, Hawkins Cookers, Goodyear India and Agro Tech Foods. These stocks continue to be a part of the portfolio in the current analysis as well. HDFC Bank is the top holding of this fund with an allocation of 9% in June 2014.

Inception Date: October 11, 2004 Fund Manager Name: R. Srinivasan AUM (as at June 2014): Rs. 1,434.34 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Consumer Non

Durables 23.24 Consumer Non Durables 17.51


Finance 10.41 Banks 11.21

Divis Laboratories

Ltd. 6.62 Shriram City Union Finance Ltd. 8.12

Trading 10.40 Trading 8.74

3M India Ltd. 6.33

Procter & Gamble Hygiene & Health Care Ltd. 7.13

Banks 7.99 Finance 8.64

Page Industries Ltd. 6.00 Goodyear India Ltd. 7.00


Procter & Gamble

Hygiene & Health

Care Ltd. 5.64 3M India Ltd. 5.55



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SBI Emerging Businesses Fund-Reg(G) S&P BSE 500


15

Mirae Asset Emerging Bluechip Fund

Investment Strategy: The fund’s mandate is to invest into companies which are not part of the top 100 stocks by market capitalization and have at least Rs.100 crores of market capitalization at the time of investment. While selecting the different investment opportunities, the Fund Manager is not biased towards any particular theme, sector or style. Our Analysis: In our previous review, we had said that the Fund Manager was betting big on Pharmaceuticals and Consumer Non-Durables as these 2 were among the top 5 sectoral picks. However in the current analysis, Pharmaceuticals continues to be among the top 5 sectoral picks while Consumer Non-Durables is no longer in this league. This is evident from the fact that the Fund Manager has reduced the allocation into these 2 sectors from 16% and 8% to 11% and 5% respectively. The fund also has a positive bias towards 2 other sectors namely Banks and Finance with stocks like ICICI Bank, Sundaram Finance and Federal Bank being the top 3 stock holdings since April 2014.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company

Name June

2014 (%) Pharmaceuticals 15.78 Banks 13.63

Tech Mahindra Ltd. 4.88 ICICI Bank Ltd. 3.59


Divis Laboratories

Ltd. 3.95 Sundaram Finance Ltd. 3.55

Finance 12.54 Finance 10.43

ICICI Bank Ltd. 3.77 Tech Mahindra Ltd. 3.52


The Federal Bank

Ltd. 3.74 The Federal Bank Ltd. 3.43

Consumer Non

Durables 7.90 Auto Ancillaries 6.37

Amara Raja Batteries

Ltd. 3.65 Ipca Laboratories Ltd. 2.83



Inception Date: July 9, 2010 Fund Manager Name: Neelesh Surana AUM (as at June 2014): Rs. 385.89 crores Exit Load: Within 6 months from the date of allotment – 2%, 6 months (182 days) to 1 year (365 days) from the date of allotment – 1%,After 1 year (365 days) from the date of allotment- Nil

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Mirae Asset Emerging BlueChip-Reg(G) CNX Midcap


16

Recommended Multi Cap Funds

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UTI Opportunities Fund

Investment Strategy: The main intent of the fund is to respond to the dynamically changing Indian economy by moving its investments among different sectors as prevailing trends change. The Fund Manager has the flexibility to invest in select sectors based on his outlook on the macro economy. Normally, the fund will target 4 to 5 sectors that are expected to outperform the broader market over a short to medium term. Our Analysis: The fund continues to maintain its bias towards the large cap space with the average allocation in the same being ~92% during the current 7 months of analysis. As of June 2014, the fund held ~47 stocks out of which 79% were a part of the portfolio during the 7 months under analysis. Some of the new entrants in the current analysis were SBI, ONGC, Lupin and Apollo Tyres. During the entire period of analysis, Software, Banks, Consumer Non-Durables and Auto were among the top 5 sectoral picks. As of June 2014, the top stock picks of this fund were ICICI Bank, Infosys, HDFC Bank, TCS and Larsen & Toubro. The first 4 stocks have been among the top 5 picks during all the 7 months under review.

Inception Date: July 20, 2005 Fund Manager Name: Anoop Bhaskar AUM (as at June 2014): Rs. 4,444.34 crores Exit Load: 1% within 1 year from the date of allotment. Nil after 1 year

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)

Company Name

Dec 2013 (%)


(%) Software 20.28 Banks 20.68


Banks 14.82 Software 15.4

Tata Consultancy

Services Ltd. 6.25 Infosys Ltd. 6.18

Consumer Non

Durables 10.02 Auto 8.73

ITC Ltd. 5.87 HDFC Bank Ltd. 5.87

Cement 7.74 Pharmaceuticals 6.16

HDFC Bank Ltd. 5.71 TCS 5.78

Auto 6.19 Consumer Non Durables 5.68




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UTI Opportunities Fund(G) S&P BSE 100


18

Mirae Asset India Opportunities Fund

Investment Strategy: The investment strategy of this fund is to discover investment opportunities which will benefit from the Indian economic growth and its structural shifts. The fund is positioned in such a way that there may not be any bias towards a particular theme, sector, market cap or style in picking investment opportunities. It has been clearly mentioned in the investment strategy that the Fund Manager has the flexibility to manage the portfolio in an aggressive manner.

Our Analysis: During the current review, the fund’s average market capitalization was on these lines: Large Caps (84%), Mid Caps (4%) and Small Caps (6%). Similar to the previous analysis, Banks and Software continue to be among the top 5 sectoral picks during all the 7 months under review. In the current analysis, in addition to the above sectors, Pharmaceuticals and Finance were also among the top 5 sectoral picks. We had said in our earlier review that ICICI Bank and Infosys were among the top 5 stock picks during the 36 months of analysis. The Fund Management Team’s bias towards these 2 stocks can be seen during this review as well as they continue to be among the top 5 stock picks during all the 7 months under analysis.

Inception Date: April 4, 2008 Fund Manager Name: Neelesh Surana & Gopal Agrawal AUM (as at June 2014): Rs. 557.45 crores Exit Load : Within 6 (182 days) months from the date of allotment – 2%, 6 (182 days) months to 1 year (365 days) from the date of allotment – 1%, After 1 year from the date of allotment- Nil

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company

Name June 2014

(%) Banks 17.05 Banks 22.72





ITC Ltd. 5.02 HDFC Bank 4.64

Finance 10.22 Finance 7.88

HDFC Bank Ltd. 4.57 SBI 4.32

Consumer Non

Durables 8.21 Auto Ancillaries 5.78

Reliance Industries

Ltd. 4.14 Larsen & Toubro Ltd. 3.69



19

Reliance Equity Opportunities Fund

Investment Strategy: The fund will follow a top-down approach to stock selection, which means that the Fund Manager will analyze the economy, sector, industry and company to select the appropriate stocks. Along with this, the fund will also follow bottom-up approach to decide the final selection of stocks.

Our Analysis: A fund that sticks to its mandate of being a true multi cap fund maintained an average allocation of 68% in large caps, 24% in mid caps and 7% in small caps during the 7 months under analysis. In the previous review, we had observed that the fund had been showing a preference for Software, Pharmaceuticals and Banks which were among the top 5 sectoral picks during the period of study. The fund management team continues to be biased towards these sectors in the current review as well with the 3 being among the top 5 sectoral picks in all the 7 months under review. Industrial Capital Goods is another sector which has turned out to be among the top 5 sectoral picks in all the months except for the month of February 2014. We had also written in our previous review that Divi’s Laboratories was among the top 5 stock picks during all the 36 months under study. The Fund Manager continues to show his preference towards this stock as can be seen from the fact that this is the top holding during all the 7 months under review.

Inception Date: March 31, 2005 Fund Manager Name: Sailesh Raj Bhan AUM (as at June 2014): Rs. 7,325.17 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Software 16.69 Banks 17.19

Divis Laboratories

Ltd. 6.63 Divis Laboratories Ltd. 5.50

Pharmaceuticals 13.50 Software 12.06

Trent Ltd. 5.34 State Bank Of India 4.77



Retailing 9.33 Industrial Capital Goods 9.94

HCL Technologies

Ltd. 4.52 Bharat Forge Ltd. 4.32

Industrial

Capital Goods 6.99 Industrial Products 8.61

Shoppers Stop Ltd. 3.99 Trent Ltd. 4.24



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Reliance Equity Opportunities Fund(G) S&P BSE 100


20

AXIS Equity Fund

Investment Strategy: This is an actively managed fund which aims to build a diversified portfolio consisting of strong growth companies with sustainable business models. The fund will invest across the market capitalization spectrum.

Our Analysis: This fund continues to be predominantly a large cap fund with the exposure into the same having increased from 81% in December 2013 to 91% in June 2014. On the other hand, the mid cap and small cap allocation reduced to 5% and 1% from 7% and 4% during the time period December 2013 to June 2014. As we had observed in the previous analysis, the Fund Manager’s preferred sectors during all the 36 months under analysis were Banks, Software and Consumer Non-Durables. In the current review, along with Banks and Software, Pharmaceuticals and Petroleum Products turns out to be among the top 5 sectoral picks. On the other hand, Consumer Non-Durables does not find a favourable place in the portfolio as the allocation into ITC has reduced from 5% in December 2013 to 1% in June 2014. We had also observed in the previous analysis that HDFC Bank was one of the top stock holdings during the 36 months of study. The stock continues to retain this position in the current review as well. Some of the new entrants in the portfolio during the current analysis were Federal Bank, Pfizer, DB Corp, Tata Steel and Engineers India.

Inception Date: January 5, 2010 Fund Manager Name: Pankaj Murarka AUM (as at June 2014): Rs. 950.86 crores Exit Load: 3% - Within 6 months 2% - 6-12 Months; 1% - 12 Months

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)

Company Name

Dec 2013 (%)



Infosys Ltd. 8.27 State Bank Of India 8.48


HDFC Bank Ltd. 6.42 Infosys Ltd. 6.51

Finance 11.09 Pharmaceuticals 7.18

Tata Consultancy

Services Ltd. 5.67 ICICI Bank Ltd. 6.41


ICICI Bank Ltd. 5.65 HDFC Bank Ltd. 5.96

Petroleum

Products 5.97 Auto 6.62

ITC Ltd. 5.09 Larsen & Toubro Ltd. 4.47



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Axis Equity Fund(G) CNX Nifty Index


21

IDFC Premier Equity Fund

Investment Strategy: The fund’s mandate is to invest into well-managed sustainable businesses whose stocks are available at reasonable value through a process of disciplined research. To mitigate the overall risk, the portfolio has been diversified across different sectors. Our Analysis: The fund follows a pure multicap strategy as can be seen from the fact the average exposure into large caps, mid caps and small caps were 53%, 31% and 9% respectively. In our previous analysis, we had observed that Consumer Non-Durables was the only sector which was among the top 5 sectoral picks during the entire 36 months of study. The Fund Manager’s bias towards this sector continues during this review as well with the same being among the top 5 sectoral holdings during all the 7 months of analysis. Kaveri Seed Company from this sector is one of the top holdings of this fund during the current period of analysis. Transportation is another sector which has been consistently among the top 5 sectors in the current review. The picks from this sector have been Blue Dart Express and Container Corporation of India. During all the 7 months under analysis, 4 stocks, namely, Kaveri Seed Company, Page Industries, Blue Dart and Bata India have been among the top 5 holdings of this fund.

Inception Date: September 28, 2005 Fund Manager Name: Kenneth Andrade AUM (as at June 2014): Rs. 5,142.87 crores Exit Load: 1% (if redeemed within 365 days from date of allotment). Nil after 365 days

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company

Name June 2014

(%) Consumer Non


Page Industries Ltd. 6.10 Kaveri Seed Company Ltd. 7.17

Textile Products 8.89 Transportation 7.27

Kaveri Seed

Company Ltd. 5.34 Page Industries 5.70

Transportation 7.94 Consumer Durables 7.08

Blue Dart Express

Ltd. 5.21 VA Tech Wabag 5.02

Gas 6.31 Auto Ancillaries 5.88

Bata India Ltd. 4.59 Blue Dart Express Ltd. 4.07

Auto Ancillaries 5.37 Industrial Products 5.77

United Spirits Ltd. 4.05 Bata India Ltd. 4.03



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IDFC Premier Equity Fund-Reg(G) S&P BSE 500


22

Recommended Contra & Value Funds

23

ICICI Prudential Value Discovery Fund

Investment Strategy: The fund’s focus will be to build a well-diversified portfolio of companies available at a discount to its fair value after taking into consideration factors like earnings, asset value, free cash flow and dividend yield. In short, the Fund will use the process of discovery to select stocks which are trading at a discount to its intrinsic value. Our Analysis: The fund has a diversified portfolio with stocks in the range of 59 to 64 during the time period, December 2013 to June 2014. In the current review, there have been 4 sectors, banks, software, auto ancillaries and transportation which have been among the top 5 sectoral picks during the entire 7 months under review. The auto sector has started finding a place in the portfolio since February 2014 and Maruti Suzuki India is the only stock included from this sector. The Fund Management Team has moved out from Telecom Services completely and in this way Bharti Airtel is no longer a part of the portfolio since March 2014. As far as stocks are concerned, as on June 2014, the top 3 holdings are ICICI Bank, Reliance Industries and Sadbhav Engineering with an allocation of 8%, 4% and 3% respectively. It is interesting to note here that Reliance Industries is among the top 5 stock picks during the entire 7 months under analysis.

Inception Date: August 16, 2004 Fund Manager Name: Mrinal Singh AUM (as at June 2014): Rs. 5,242.37 crores Exit Load: 1% (if redeemed within 12 months from date of allotment). Nil after 12 months.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)


Reliance

Industries Ltd. 4.02 ICICI Bank Ltd. 7.92

Software 10.64 Auto Ancillaries 7.76

Mindtree Ltd. 3.51 Reliance Industries Ltd. 3.87

Auto

Ancillaries 8.29 Software 6.63

Bharti Airtel Ltd. 3.43 Sadbhav Engineering Ltd. 3.21

Pesticides 5.44 Transportation 6.56

PI Industries Ltd. 3.33 State Bank Of India 2.95

Transportation 5.33 Pharmaceuticals 6.05

Amara Raja

Batteries Ltd. 3.30 Amara Raja Batteries Ltd. 2.69



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ICICI Prudential Value Discovery Fund-Reg(G) CNX Midcap


24

SBI Contra Fund - Growth

Investment Strategy: The fund’s mandate is to invest into stocks which are currently out of favour.

Our Analysis: During the current review, the fund’s average allocation into large caps, mid caps and small caps has been 78%, (7%) and 7% respectively. A perusal of the portfolio shows that in the current review, banks, software, pharmaceuticals and petroleum products have been among the top 5 sectoral picks. The fund has been showing an interest in the auto sector as the allocation into the same has increased from 1% in January 2014 to 5% in June 2014. The fund has picked up only 2 stocks, Maruti Suzuki India and Eicher Motors from this sector. As far as the stocks are concerned; ICICI Bank, HDFC Bank and Reliance Industries have been among the top 5 picks during the current period of analysis.

Inception Date: July 14, 1999 Fund Manager Name: Srinivasan AUM (as at June 2014): Rs. 2,099.95 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)

Company Name

Dec 2013 (%)


(%) Banks 16.38 Banks 23.15

ICICI Bank Ltd. 6.04 ICICI Bank Ltd. 7.43


Infosys Ltd. 5.75 HDFC Bank Ltd. 7.32

Consumer Non


HDFC Bank Ltd. 5.66 Reliance Industries Ltd. 5.32


Reliance

Industries Ltd. 5.37 Merck Ltd. 4.11

Petroleum


ITC Ltd. 5.31 Tata Consultancy Services Ltd. 4.03



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SBI Contra Fund-Reg(G) S&P BSE 100


25

Recommended Dividend Yield Fund

26

Tata Dividend Yield Fund

Investment Strategy: The fund’s endeavour will be to invest into those companies that have a high dividend yield. High Dividend Yield means that the dividend yield of the stock will be greater than the dividend yield of S&P BSE Sensex last released/published by S&P BSE. It is clearly mentioned in their strategy that the fund would take a 70% exposure into high dividend yield stocks while the rest 30% could be deployed in stocks which may not give a high dividend yield.

Our Analysis: The fund has been showing a bias towards the large cap stocks as the allocation into the same has increased from 74% in December 2013 to 79% in June 2014. As far as the sectoral allocation is concerned, banks, software and consumer non-durables have been among the top 5 sectoral picks during the entire period of analysis. The fund management team has been showing an interest in a few other sectors like construction project, textile products and ferrous metals. From the construction project sector, 2 stocks have been included which are Engineers India and Sadbhav Engineering, while from the other 2 sectors, the following stocks have been included namely KPR Mill and Maharashtra Seamless. HCL Technologies and Gujarat Mineral Development Corporation have been among the top 5 stock picks during the 7 months under analysis.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company

Name June 2014


HCL Technologies Ltd. 4.87 ICICI Bank Ltd. 5.96


Gujarat Mineral

Development

Corporation Ltd. 4.39

HCL Technologies Ltd. 5.60

Finance 10.00 Industrial Products 10.64

ITC Ltd. 4.35 Bharat Forge Ltd. 4.47

Consumer Non

Durables 8.34 Finance 9.80

Infosys Ltd. 4.02 GMDCL 4.35

Minerals/Mining 7.75 Consumer Non Durables 7.69

ICICI Bank Ltd. 3.81 HDFC Bank Ltd. 4.07



Inception Date: November 22, 2004 Fund Manager Name: Rupesh Patel AUM (as at June 2014): Rs. 307.96 crores Exit Load: 1% if redeemed on or before expiry of 365 days from the date of allotment.

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Tata Dividend Yield Fund(G) CNX 500 Index


27

Recommended Index Funds

28

ICICI Prudential Index Fund

Investment Strategy: The fund’s mandate is to invest into stocks constituting the CNX Nifty index and exchange traded derivatives on the CNX Nifty Index. Further, the fund will keep a small proportion of the surplus liquid to meet any redemption requirements.

Inception Date: February 26, 2002 Fund Manager Name: Kayzad Eghlim AUM (as at June 2014): Rs. 81.92 crores Exit Load: Upto 7 Days from allotment - 0.25% of applicable NAV, more than 7 Days - Nil

Top 5 Sectors

Top 5 Companies

Industry Dec

2013 (%)


Company Name Dec

2013 (%)





Infosys Ltd. 7.34 Reliance Industries Ltd. 6.14

Consumer Non


Reliance Industries Ltd. 6.42 ICICI Bank Ltd. 6.02

Auto 8.07 Auto 8.28


Petroleum

Products 6.81 Petroleum Products 6.71

Housing Development

Finance Corporation Ltd. 5.40 Housing Development Finance Corporation Ltd. 5.70



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ICICI Pru Index Fund CNX Nifty Index


29

HDFC Index Fund – Sensex Plus Plan

Investment Strategy: The fund will be a passively managed fund in which 80-90% of the net assets would follow an investment strategy that is similar to the Sensex. On the other hand, the balance 10-20% of the net assets will be invested into stocks that have a high probability to outperform the Sensex.

Inception Date: July 17, 2002 Fund Manager Name: Vinay Kulkarni AUM (as at June 2014): Rs. 104.89 crores Exit Load: 1% (if redeemed within 30 days from date of allotment). Nil after 30 days

Top 5 Sectors

Top 5 Companies

Industry Dec

2013 (%)


Company Name Dec

2013 (%)





Infosys Ltd. 7.91 Reliance Industries Ltd. 6.74

Consumer Non

Durables 11.24 Petroleum Products 9.03

Reliance Industries Ltd. 7.35 ICICI Bank Ltd. 6.14

Petroleum


Tata Consultancy

Services Ltd. 5.96 Infosys Ltd. 5.95

Auto 8.99 Consumer Non Durables 8.63




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HDFC Index Fund-Sensex Plus(G) S&P BSE SENSEX


30

Recommended Equity Linked Savings Scheme (ELSS)

31

Franklin India Taxshield

Investment Strategy: The investment strategy of the fund is a combination of value and growth style of investing. The fund will follow a bottom-up approach to stock picking and has the flexibility to invest across sectors and market capitalizations.

Our Analysis: The fund’s affinity towards the large cap space continues with the average allocation into the same being at 83% during the current review. In our previous analysis, we had observed that Banks, Software and Telecom Services were among the top 5 sectoral picks during the entire 36 months of analysis. This trend continues in this review as well with the average allocation into these sectors being at 21%, 11% and 7% respectively. In the banking space, ICICI Bank and HDFC Bank have been the top holdings during the entire 8 months under review; while on the other hand, Bharti Airtel is the only stock from the telecom services which is a part of this portfolio. During the current review, Pharmaceuticals have also turned out to be among the top 5 sectoral picks with an average allocation of 12%. Auto Ancillaries is another sector which is slowly gaining favour with the fund management team with it being among the top 5 sectoral picks since March 2014. As far as the stocks are concerned, we had observed in our previous review that Infosys and Bharti Airtel have been among the top 5 picks during the entire 36 months under study. The Fund Manager seems to bet on these 2 stocks in this review as well as they continue to be among the top 5 stock picks during the 8 months of analysis. Along with these 2 stocks, ICICI Bank has also emerged as one of the top 5 stocks during the current period of review.

Inception Date: April 10, 1999 Fund Manager Name: Anand Radhakrishnan & Anil Prabhudas AUM (as at June 2014): Rs. 1,266.08 crores Exit Load: Nil

Top 5 Sectors

Top 5 Companies

Industry Nov 2013 (%)


Company Name Nov 2013 (%)

Company Name

June 2014 (%)


Infosys Ltd. 8.00 Bharti Airtel Ltd. 5.83


Bharti Airtel Ltd. 7.37 ICICI Bank Ltd. 5.83

Software 11.03 Pharmaceuticals 8.49


Telecom - Services 7.37 Auto Ancillaries 7.33

Reliance Industries Ltd. 5.07 HDFC Bank Ltd. 4.61

Petroleum Products 6.70 Telecom - Services 5.83

HDFC Bank Ltd. 4.81 Yes Bank Ltd. 3.51



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Franklin India Taxshield(G) CNX 500 Index


32

Canara Robeco Equity Tax Saver

Investment Strategy: The fund’s investment strategy is to identify companies which have a strong competitive position in a good business and have a quality management to support it. The fund will follow an active investment style and the main focus would be on long-term fundamentally driven values.

Our Analysis: The fund continues to be predominantly a large cap fund with the allocation into the same having increased from 88% in November 2013 to 91% in June 2014. A detailed analysis of the portfolio shows that similar to our previous analysis, banks and computer software continues to be among the top 5 sectoral picks during the entire 8 months of study. Pharmaceutical is another sector which is among the top 5 sectoral picks with an average allocation of 8% in the current review. Another observation is that the fund has been slowly decreasing its allocation into consumer non-durables and as of June 2014 only 2 stocks from this sector are a part of the portfolio namely, ITC and United Spirits. We had seen in the previous analysis that HDFC Bank was the only stock among the top 5 picks during the entire 36 months of review. In the current review, we observed that along with HDFC Bank, ICICI Bank is also among the top 5 stock picks during the entire period of analysis.

Inception Date: March 31, 1993 Fund Manager Name: Krishna Sanghavi AUM (as at June 2014): Rs. 781.04 crores Exit Load: Nil

Top 5 Sectors

Top 5 Companies

Industry Nov

2013 (%) Industry

June 2014 (%)

Company Name

Nov 2013 (%)


(%) Banks 20.04 Banks 23.68




Consumer Non



Auto 8.28 Petroleum Products 6.07

Tata Consultancy

Services Ltd. 4.87 Reliance Industries Ltd. 3.48

Pharmaceuticals 7.85 Cement 5.74

Reliance

Industries Ltd. 3.93 Tata Consultancy Services Ltd. 3.32



33

Axis Long Term Equity Fund

Investment Strategy: The fund will invest in a diversified portfolio of strong growth companies with a sustainable business model. Although the benchmark of the fund is S&P BSE 200, the fund enjoys the flexibility to invest across market capitalizations, industries/sectors. The investment need not be limited to companies which are a part of the benchmark index.

Our Analysis:

The fund is slowly increasing its bias towards the large cap space as can be seen from the fact that the allocation into the same has increased from 77% in November 2013 to 84% in June 2014. In the current review, there were 4 sectors which were a part of the portfolio continuously for 8 months which included banks, finance, software and pharmaceuticals. The new entrants in the banking and software sectors have been ICICI Bank and Info Edge (India). An interesting observation that can be made at this juncture is that as of June 2014, consumer non-durables are no longer a part of the portfolio. During the current review, the fund exited from all the 3 stocks from this sector which are ITC, Asian Paints and Colgate-Palmolive (India). On the other hand, the Fund Manager is showing an increased bias towards consumer durables and the stocks included from this sector were names like TTK Prestige, Bata India and Symphony. In the current review, HDFC Bank, Larsen & Toubro and Kotak Mahindra Bank have been among the top 5 stock picks during all the months under analysis.

Inception Date: December 29, 2009 Fund Manager Name: Jinesh Gopani AUM (as at June 2014): Rs. 1,572.21 crores Exit Load: Nil

Top 5 Sectors

Top 5 Companies





Finance 14.00 Banks 18.76

Larsen & Toubro Ltd. 6.83 HDFC Bank Ltd. 7.81

Banks 13.82 Finance 13.08

HDFC Bank Ltd. 6.47 Larsen & Toubro Ltd. 6.82


Kotak Mahindra Bank Ltd. 6.19 Kotak Mahindra Bank Ltd. 6.35

Pharmaceuticals 11.82 Consumer Durables 8.77

Housing Development

Finance Corporation Ltd. 5.80 Tata Consultancy Services Ltd. 5.65

Auto 8.40 Pharmaceuticals 8.57

Tata Consultancy Services

Ltd. 5.59 Housing Development Finance Corporation Ltd. 5.35



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Axis LT Equity Fund(G) S&P BSE 200


34

ICICI Prudential Tax Plan

Investment Strategy: The investment approach followed by this fund is the value style which focuses on the fundamentals of the business, industry structure, quality of management, sensitivity to economic factors, financial strength of the company and key earnings drivers.

Our Analysis: In the current review, it can be seen that the fund has been gradually increasing its allocation into large caps from 71% to 78% during the time period, November 2013 to June 2014. In our previous analysis, we had noted that banks and pharmaceuticals were among the favourite picks of the fund manager and there is no deviation from this bias in the current review as well. These 2 sectors, along with software are among the top 5 sectoral picks during the current analysis with an average allocation of 18%, 10% and 12% respectively. It is interesting to note here that the fund manager has been slowly increasing the allocation into 2 other sectors namely Finance and Industrial Capital Goods, thus making them among the top 5 sectoral picks during the current analysis. As of June 2014, HDFC Bank is the top holding followed by Infosys and ICICI Bank with an allocation of 10%, 8% and 7% respectively.

Top 5 Sectors

Top 5 Companies






NMDC Ltd. 5.59 HDFC Bank Ltd. 9.74


Infosys Ltd. 5.00 Infosys Ltd. 7.92

Banks 13.38 Industrial Capital Goods 7.40

Tech Mahindra Ltd. 3.97 ICICI Bank Ltd. 7.45

Oil 7.45 Pharmaceuticals 6.71

ICICI Bank Ltd. 3.95 Bharat Electronics Ltd. 4.11

Minerals/Mining 6.49 Finance 6.48

Cairn India Ltd. 3.78 Cipla Ltd. 3.72



Inception Date: August 19, 1999 Fund Manager Name: Chintan Haria AUM (as at June 2014): Rs. 2,095.14 crores Exit Load: Nil

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ICICI Prudential Tax Plan-Reg(G) CNX 500 Index


35

BNP Paribas Long Term Equity Fund

Investment Strategy: The fund aims to provide long-term capital growth by investing in a diversified and actively managed portfolio of equity and equity related securities.

Our Analysis: The fund’s increasing bias towards large cap stocks can be seen from the allocation into the same having seen a rise from 80% in November 2013 to 84% in June 2014. In our previous analysis, we had observed that banks and pharmaceuticals were among the top 5 sectoral picks during the entire period of study. We can see that in the current review, banks continue to be the preferred sector while pharmaceuticals have been replaced by software as the top 5 holding, having an average allocation of 17% and 13% respectively. The Fund Manager has been showing a preference towards the cement sector as the allocation into the same has increased from 1% in February 2014 to 6% in June 2014. The 3 stocks included from this sector were Ultratech Cement, ACC and JK Cement. In our previous review, we had noted that HDFC Bank and Infosys had been a part of the portfolio continuously for 36 months. These stocks find a place in the current review as well with an average allocation of 5% and 4% respectively.

Top 5 Sectors

Top 5 Companies


Industry June 2014

(%)

Company Name Nov 2013

(%) Company Name

June 2014 (%)




Bharti Airtel Ltd. 5.81 Tata Consultancy Services Ltd. 4.33

Telecom - Services 10.49 Cement 6.47



Idea Cellular Ltd. 4.68 Axis Bank Ltd. 3.92

Consumer Non

Durables 6.75 Telecom - Services 5.35

ITC Ltd. 4.61 IndusInd Bank Ltd. 3.77



Inception Date: January 5, 2006 Fund Manager Name: Shreyash Devalkar AUM (as at June 2014): Rs. 235.00 crores Exit Load: Nil

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BNP Paribas Tax Advantage Fund(G) CNX 200


36

Recommended Global Funds

37

JPMorgan Greater China Equity Off-shore Fund

Investment Strategy: The fund invests into JPMorgan Funds - Greater China Fund, an equity fund which invests primarily in a diversified portfolio of companies that are domiciled in, or carrying out the main part of their economic activity, in a country of the Greater China region.

Inception Date: August 26, 2009 Fund Manager Name: Namdev Chougule AUM (as at June 2014): Rs. 125.55 crores Exit Load: 1% (if redeemed within 18 months from date of allotment). Nil after 18 months

Top 5 Sectors

Top 5 Companies

Industry Dec

2013 (%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Financials 37.20% Financials 34.0%

Taiwan Semiconductor 6.7 Taiwan Semiconductor 7.80%

Information

Technology 24.80% Information Technology 30.1%

Tencent Holdings 6.2% Tencent Holdings 6.80%

Consumer

Discretionary 12.30% Consumer Discretionary 8.4%

China Construction Bank 5.5% China Construction Bank 5.30%

Energy 6.20% Industrials 7.2%

AIA Group 5.00% AIA Group 4.90%

Industrials 6.00% Energy 5.7%

Industrial & Commercial

Bank of China 4.2% China Petroleum & Chemical 2.90%



38

Birla Sun Life International Equity Fund -Plan A

Investment Strategy: The fund’s mandate is to invest into international stocks. The portfolio would be diversified geographically so as to benefit from low correlation between various countries and the portfolio will have high quality-high growth stocks.

Inception Date: October 31, 2007 Fund Manager Name: Vineet Maloo AUM (as at June 2014): Rs. 76.26 crores Exit Load: 1% within 365 days from the date of allotment: Nil after 365 days from the date of allotment.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

FINANCE 13.80% FINANCE 15.26%

Northrop Grumman

Co 4.50% McKesson Corp. 4.92%

CONSUMER

NON

DURABLES 9.19% HEALTHCARE SERVICES 9.76%

Exxon Mobil

Corporation Ltd 4.37% Chubb Corp 4.87%

HARDWARE 7.52% HARDWARE 8.27%

Chubb Corp 4.31% Aetna Inc New 4.84%

SOFTWARE 7.40% CONSUMER NON DURABLES 7.47%

McKesson Corp. 3.55% PPG Industries 4.18%

HEALTHCARE

SERVICES 6.97% SOFTWARE 5.15%

Aetna Inc New 3.42% Roche Holdings Ag Genus Bearer Shs 3.73%



39

L&T Global Real Assets Fund

Inception Date: February 11, 2010 Fund Manager Name: Abhijeet Dakshikar AUM (as at June 2014): Rs. 78.61 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year

Investment Strategy: The Fund will invest into the underlying scheme, Fidelity Funds - Global Real Asset Securities Fund, an offshore fund launched by Fidelity Funds. The underlying fund will in turn invest around 70% of the surplus in equities of companies across the world that provide exposure to commodities, property, industrials, utilities, energy, materials and infrastructure.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Overseas

Mutual Fund

Units 98.71%

Overseas

Mutual

Fund Units 99.09%

Fidelity Funds - Global

Real Asset Securities

Fund 98.71%

Fidelity Funds -

Global Real Asset

Securities Fund 99.09%

Cash & Cash

Equivalents 1.29%

Cash &

Cash

Equivalents 0.91%

Net Current Asset 1.29% CBLO 1.00%

Net Current Asset -0.09%



40

Recommended Banking Fund

41

ICICI Prudential Banking & Financial Services Fund

Investment Strategy: The fund’s mandate is to invest into companies whose focus is on banking and financial services. Here, Financial Services refers to those which provide non-banking financial services like stock broking, wealth management, insurance, etc. and could include names like MAX India, Motilal Oswal and others.

Our Analysis: The fund’s increasing interest into Finance companies continues in this review as well. During our 7 months review, the average allocation into Banks and Finance Companies was 71% and 26% respectively. In the banking space, the fund has been showing a preference towards private sector banks as can be seen from the fact that the average allocation into the same has been 47% vis-à-vis 23% into Public Sector Banks during the current review. The new additions in the private sector banking space included names like DCB Bank, Yes Bank and IndusInd Bank. In our previous review, we had observed that HDFC Bank and ICICI Bank were among the top 5 picks during the entire 36 months of analysis and they continue to be the top picks in the current period of review as well. As far as the Finance Companies are concerned, some of the names like MAX India, Repco Home Finance, Bajaj FinServ, Sundaram Finance and Motilal Oswal Financial Services have been a part of the portfolio during the entire 7 months of analysis.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Bank - Private 47.65 Bank - Private 46.30


Bank - Public 21.44 Bank - Public 18.05

ICICI Bank Ltd. 15.13 ICICI Bank Ltd. 13.83

Finance - NBFC 7.81 Finance - NBFC 12.49

State Bank Of India 7.54 State Bank Of India 7.42

Diversified 6.20 Finance - Housing 11.16

Max India Ltd. 6.20 HDFC 6.30

Finance -

Housing 5.00 Finance - Investment 4.35

Bank Of Baroda 5.79 Repco Home Finance Ltd. 4.87



Inception Date: August 22, 2008 Fund Manager Name: Venkatesh Sanjeevi AUM (as at June 2014): Rs. 425.50 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year

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ICICI Prudential Banking & Financial Services Fund-Reg(G)

S&P BSE BANKEX


42

Recommended Pharma Fund

43

SBI Pharma Fund

Investment Strategy: The fund will invest into companies which are in the pharmaceutical space.

Our Analysis: We had observed in our previous review that there were 5 stocks namely, Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Lupin, Cipla and Indoco Remedies that were a part of the portfolio during all the 36 months under analysis. It is interesting to note here that since May 2014, Cipla does not find a place in the portfolio. Among these 5 stocks we had also seen that Dr. Reddy’s Laboratories was the only stock which was among the top 5 picks during the entire 3 years. In the current review also, this stock continues to be among the top 5 stock picks along with 2 other peers which are Sun Pharmaceutical Industries and Lupin. One of the major observations about this fund is that during the period under review, ~25% of the surplus was concentrated in 1 stock that is Sun Pharmaceutical Industries. This is a trend that we have been seeing since February 2013, wherein ~20% of the portfolio began to be concentrated in Sun Pharmaceutical Industries.

Top 5 Companies


(%) Company Name

June 2014 (%)

Sun Pharmaceutical Industries Ltd. 24.07 Sun Pharmaceutical Industries Ltd. 25.54

Dr. Reddys Laboratories Ltd. 16.41 Lupin Ltd. 11.56

Lupin Ltd. 11.38 Dr. Reddys Laboratories Ltd. 6.97

Cipla Ltd. 10.60 Aurobindo Pharma 6.81

Glenmark Pharmaceuticals Ltd. 6.05 Divis Laboratories Ltd. 6.71


Inception Date: July 14, 1999 Fund Manager Name: Tanmaya Desai AUM (as at June 2014): Rs. 217.66 crores Exit Load: Nil

90001100013000150001700019000210002300025000270002900031000330003500037000

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SBI Pharma Fund-Reg(G) S&P BSE Health Care


44

Recommended Infrastructure Funds

45

PineBridge Infrastructure & Economic Reform Fund

Investment Strategy: The fund’s strategy is to invest into those companies which will benefit from the potential investments in infrastructure and unfolding economic reforms.

Our Analysis: During the current review, it seems like the fund is trying to have a compact portfolio with the number of stocks having reduced from 20 in December 2013 to 17 in June 2014. We had observed in our previous review that the Fund Manager has become very bullish on Industrial Products as the allocation into the same had increased from 6% in December 2010 to 24% in November 2013. The positive bias towards this sector can be seen in this review as well with the average allocation into the same being at 30%. Some of the prominent picks in this sector included names like KSB Pump, SKF India and Cummins India. The next big bet is being made on Industrial Capital Goods sector with the average allocation being at 21% in the current analysis. There were 4 stocks (Coromandel International, Indraprastha Gas, Power Grid Corporation of India and AIA Engineering) which were a part of the portfolio consistently during our 36 months of analysis. It is interesting to note here that except for Power Grid Corporation of India, all the other 3 stocks continue to be a part of this fund in the current review as well.

Inception Date: February 25, 2008 Fund Manager Name: Huzaifa Husain AUM (as at June 2014): Rs. 114.83 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Industrial

Products 25.88 Industrial Products 33.37

Larsen & Toubro Ltd. 11.74 Shree Cement Ltd. 9.25

Industrial

Capital Goods 18.01 Industrial Capital Goods 22.48

Shree Cement Ltd. 8.48 KSB Pumps Ltd. 9.16

Cement 14.87 Cement 14.20

Thermax Ltd. 7.84 Thermax Ltd. 8.98

Construction

Project 11.74 Construction Project 7.19

KSB Pumps Ltd. 6.59 ABB India Ltd. 7.87

Gas 10.17 Gas 6.77

Container Corporation

Of India Ltd. 6.56 SKF India Ltd. 7.41



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PineBridge Infrastructure & Economic Reform Fund

S&P BSE 100


46

DSP BlackRock India T.I.G.E.R. Fund

Investment Strategy: The fund’s mandate is to invest into those companies which will benefit from the ongoing process of economic reforms and the investments happening in the infrastructure sector. The fund will follow a combination of top-down and bottom-up approach to select stocks.

Our Analysis: An analysis of the portfolio shows that during the current review, Banks, Construction Project, Power and Finance were among the top 5 sectoral picks with an average allocation of 24%, 16%, 9% and 10% respectively. It is interesting to note here that the top 3 stock picks included names like Larsen & Toubro, ICICI Bank and HDFC Bank. The Fund Management Team seems to be placing its bet on Finance as can be seen by the new entrants into this sector like IDFC, Rural Electrification Corporation, Repco Home Finance, Credit Analysis and Research and SKS Microfinance. As of June 2014, SBI is the top holding of this fund with an allocation of 7.47%.

Inception Date: June 11, 2004 Fund Manager Name: Rohit Singhania AUM (as at June 2014): Rs. 1,437.86 crores Exit Load: 1% within 12 months from the date of allotment: Nil after 12 months from the date of allotment.

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)


ICICI Bank Ltd. 7.94 SBI 7.47

Construction

Project 11.87 Construction Project 16.71

HDFC Bank Ltd. 5.69 Larsen & Toubro 7.34

Power 10.39 Finance 10.72

Bharti Airtel Ltd. 5.39 ICICI Bank Ltd. 6.89

Finance 8.26 Power 8.01

Larsen & Toubro Ltd. 5.03 HDFC Bank Ltd. 3.57

Telecom -

Services 6.58 Industrial Capital Goods 7.27

Reliance Industries Ltd. 4.15 Grasim Industries Ltd. 3.40



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47

Canara Robeco Infrastructure

Investment Strategy: The fund will invest into those companies which are in the infrastructure sector. To define the sector, the fund house follows the classification of industries as given by The Association of Mutual Funds in India (AMFI), from which it chooses a set of companies which according to them would constitute the infrastructure sector.

Our Analysis:

As observed in the previous review, the Fund Manager continues to be bullish on 2 sectors; Cement and Power which are among the top 5 sectoral picks during the current analysis as well. Ultratech Cement is the top holding in the cement sector while in the power sector, the biggest bet is being placed on Power Grid Corporation of India. An interesting observation that needs to be made here is that the allocation into the banking sector has increased from 2% in December 2013 to 9% in June 2014. Some of the new entrants in this sector include names like State Bank of Bikaner and Jaipur, Kotak Mahindra Bank and HDFC Bank.

Inception Date: December 2, 2005 Fund Manager Name: Ravi Gopalakrishnan & Yogesh Patil AUM (as at June 2014): Rs. 96.58 crores Exit Load: 1% within 1 year from the date of allotment: Nil after 1 year from the date of allotment

Top 5 Sectors

Top 5 Companies

Industry Dec

2013 (%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Cement 12.57 Cement 14.24

Housing Development

Finance Corporation Ltd. 8.91 Ultratech Cement 8.52

Finance 11.99 Construction Project 12.46

Ultratech Cement Ltd. 8.14

Power Grid Corporation Of India 7.08

Transportation 11.73 Transportation 11.16

Container Corporation

Of India Ltd. 6.67 Texmaco Rail & Engineering Ltd. 5.56

Power 11.00 Power 10.07

Oil India Ltd. 5.61 Grasim Industries Ltd. 4.97

Petroleum

Products 9.61 Banks 9.06

Power Grid Corporation

Of India Ltd. 5.28 Ashoka Buildcon Ltd. 4.76



48

Recommended FMCG Fund

49

SBI FMCG Fund

Investment Strategy: The fund’s mandate is to invest into FMCG companies.

Our Analysis: In our previous analysis, we had observed that there were 3 stocks which were a part of the portfolio continuously for 36 months. These 3 stocks included names like ITC, Hindustan Unilever and Agro Tech Foods. In the current review, ITC and Agro Tech Foods continue to be a part of the portfolio while Hindustan Unilever does not find a place in the portfolio since May 2014. It also needs to be noted here that, ITC continues to be the top holding during the 7 months under review with an average allocation of 44%. Stocks like United Spirits, Colgate-Palmolive (India) and Procter & Gamble Hygiene & Health Care have been among the top 5 holdings during the current period of review. Some of the new entrants in the portfolio included stocks like Hawkins Cookers, Marico and Britannia Industries.

Inception Date: July 14, 1999 Fund Manager Name: Saurabh Pant AUM (as at June 2014): Rs. 200.33 crores Exit Load: Nil

Top 5 Sectors

Top 5 Companies

Industry Dec 2013

(%) Industry

June 2014 (%)


(%) Company Name

June 2014 (%)

Consumer

Non Durables 96.93 Consumer Non Durables 91.47


Consumer

Durables 1.81 Consumer Durables 3.37

United Spirits Ltd. 9.59 Colgate-Palmolive (India) Ltd. 8.10

Others 2.82

Colgate-Palmolive (India)

Ltd. 6.99

Procter & Gamble Hygiene & Health Care Ltd. 6.19

VST Industries Ltd. 6.89 Kansai Nerolac Paints Ltd. 5.93

Procter & Gamble

Hygiene & Health Care

Ltd. 4.97 United Spirits Ltd. 5.43



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SBI FMCG Fund-Reg(G) S&P BSE FMCG


50

Recommended Technology Fund

51

ICICI Prudential Technology Fund

Our Analysis: A perusal of the portfolio shows that as of June 2014, the fund held ~ 14 stocks out of which 13 had been a part of the portfolio during the entire 7 months under analysis. Infosys continues to be the top holding during the current period of analysis with an average allocation of 31%. In addition to this, 3 stocks namely, Mindtree, Persistent Systems and Tech Mahindra have been among the top 5 stock holdings during the 7 months under review.

Investment Strategy: The fund will invest into technology and technology-dependent companies. A majority of the allocations would go into the stocks which constitute the benchmark Index (S&P BSE IT). However, the Fund Manager has the flexibility to invest outside the index but only in those companies which will form a part of Information Technology Services industry.

Inception Date: March 03, 2000 Fund Manager Name: Mrinal Singh AUM (as at June 2014): Rs. 232.38 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year.

Top 5 Companies

Company Name Dec 2013 (%) Company Name June 2014

(%) Infosys Ltd. 27.80 Infosys Ltd. 31.11

Mindtree Ltd. 15.15 Mindtree Ltd. 10.42

Persistent Systems Ltd. 10.98 Persistent Systems Ltd. 9.31

Tech Mahindra Ltd. 9.17 Wipro Ltd. 8.53

Oracle Financial Services Software

Ltd. 8.14 Tech Mahindra Ltd. 8.23


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ICICI Pru Technology Fund-Reg(G) S&P BSE IT


52

Recommended Short Term Funds

53

Franklin India Short Term Income Plan

Investment Strategy: The fund’s mandate is to focus on investment opportunities at the short-end of the curve.

Our Analysis:

During the 7 months under review, as in the previous analysis, the fund’s portfolio is seen to be biased towards the corporate debt space. The average allocation into this space during the current review is 78%. An interesting observation that can be made in this review is that the fund which had a nil exposure into Treasury Bills in December 2013 has slowly started parking surplus into this instrument since March 2014 and as of June 2014, the allocation stands at 8%. The fund continues to have ~45% of the portfolio concentrated in instruments which are rated below AA.

Top 5 Instruments

Instruments Dec 2013

(%) Instruments June

2014 (%)

Corporate Debt 85.91 Corporate Debt 76.68

Certificate of

Deposit 9.08 Certificate of Deposit 12.19

Commercial Paper 2.44 Treasury Bills 7.70

Cash & Cash

Equivalents 2.08

Cash & Cash

Equivalents 2.25

PTC & Securitized

Debt 0.49 Commercial Paper 1.02


Inception Date: January 31, 2002 Fund Manager Name: Santosh Kamath & Kunal Agrawal AUM (as at June 2014): Rs. 9,574.39 crores Exit Load: 0.50%, if redeemed within 1 year of allotment.

0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 year 3 year 5 year

Franklin India ST Income Plan(G)

Crisil Short Term Bond Fund Index

9.27%8.76%

7.45%

8.93%8.96%

9.82%

54

PineBridge India Short Term Fund

Our Analysis: During the current review, the fund has increased the exposure into Corporate Debt from 46% in December 2013 to 62% in June 2014. The allocation into Certificates of Deposit has reduced from 46% to 25% during the time period, December 2013 to June 2014. Since April 2014, the fund has no exposure into G-Secs while from the same month, allocations have been made into Treasury Bills. The fund does not compromise on quality as can be seen from the fact that the entire portfolio is parked in AAA and A1+ Instruments.

Top 5 Instruments


(%) Instruments June 2014

(%)

Certificate of

Deposit 46.19 Corporate Debt 61.72

Corporate Debt 45.59 Certificate of Deposit 24.97

Government

Securities 10.40 Treasury Bills 15.74

Deposits 1.28 Deposits 0.72

Cash & Cash

Equivalents -3.46

Cash & Cash

Equivalents -3.15


Investment Strategy: The fund’s mandate is to invest into Debt securities and money market instruments with a short to medium-term time horizon. The Fund Manager will make investment decisions on the basis of different factors like credit analysis of individual exposures, macro-economic factors, etc. which will be used to estimate the direction of interest rates and level of liquidity. The quality and liquidity of the security will be selected by using a bottom-up approach.

Inception Date: March 6, 2008 Fund Manager Name: Vikrant Mehta AUM (as at June 2014): Rs. 278.38 crores Exit Load: Nil

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00


PineBridge India Short Term Fund(G)


7.20%

8.76%

7.45%7.85%

8.96%8.80%

55

UTI-Short Term Income Fund

Top 5 Instruments


(%) Instruments June

2014 (%)

Corporate Debt 75.09

Cash & Cash

Equivalents 44.29

Certificate of

Deposit 10.49 Corporate Debt 36.39

Government

Securities 5.70

Government

Securities 15.72

Cash & Cash

Equivalents 4.63 Certificate of Deposit 3.36

Commercial

Paper 4.09 Deposits 0.24


Investment Strategy: The fund will invest into money market securities and high-quality Debt securities focusing on low risk and high liquidity.

Our Analysis:

During the review period of December 2013 to June 2014, the fund had drastically reduced the exposure into Corporate Debt from 75% to 36%. In the same period, the exposure into Certificates of Deposit has been reduced from 10% in December 2013 to 3% in June 2014. On the other hand, the fund’s average allocation into Government Securities and Cash and Cash Equivalents stood at 15% and 17% respectively. The average maturity of the fund reduced from 2.60 years in December 2013 to 0.90 years in March 2014 after which it increased to 4 years in May 2014. Finally as of June 2014, the average maturity stood at 2.10 years.

Inception Date: June 23, 2003 Fund Manager Name: Sudhir Agarwal AUM (as at June 2014): Rs. 2,895.89 crores Exit Load: 0.75 % within 90 days from the date of allotment. 0.5% from 90-180 days from the date of allotment. Nil after 180 days of allotment

0.00

2.00

4.00

6.00

8.00

10.00

12.00


UTI ST Income Fund(G)


8.97%8.76%

7.45%

9.26%8.96%

10.43%

56

Sundaram Select Debt Short-Term Asset Plan

Top 5 Instruments



(%)


Cash & Cash

Equivalents 22.22 Certificate of Deposit 13.84

Certificate of

Deposit 17.89 Government Securities 12.83

Commercial

Paper 1.37

Cash & Cash

Equivalents 5.05

Government

Securities 0.38 Commercial Paper 1.73


Investment Strategy: As per the investment strategy of the fund, it will invest in fixed income securities with a higher degree of mark-to-marked component and lengthier maturity profile.

Our Analysis: The fund continues to remain biased towards corporate debt as can be seen from the increase in allocation from 58% in December 2013 to 67% in June 2014. In the current review, the fund took an active call in G-Secs as can be seen from the fact that the allocation into the same increased from 0.38% in December 2013 to 13% during December 2013-June 2014. As of June 2014, more than 60% of the portfolio was parked in AAA and A1+ Instruments. The average maturity of the fund was increased from 1.34 years in December 2013 to 2.65 years in June 2014.

Inception Date: September 5, 2002 Fund Manager Name: Dwijendra Srivatsava and Sandeep Agarwal AUM (as at June 2014): Rs. 854.58 crores Exit Load: Nil.

0.00

2.00

4.00

6.00

8.00

10.00

12.00


Sundaram Select Debt-STAP(G)

Crisil Liquid Fund Index

8.49%

9.64%

7.36%

8.40%8.82%

10.55%

57

Reliance Regular Savings Fund -Debt Option

Investment Strategy: The fund’s mandate is to invest into fixed income securities like Central Government securities (G-Secs), Treasury Bills (T-Bills), Corporate Bonds, and CBLOs. The fund will limit the exposure into Government Securities to reduce volatility and the exposure into this instrument will not exceed 50% of the corpus of the fund.

Our Analysis: Similar to the previous analysis, this fund continues to be in favour of corporate debt in this review as well. The allocation into corporate debt has increased from 87% in December 2013 to 93% in June 2014. It can be noted here that during the current review, the fund had more than 50% allocation into AA and AA+ instruments. As far as average maturity of the fund is concerned, it has come down from 2.03 years in December 2013 to 1.91 years in June 2014.

Top 5 Instruments



(%)


Certificate of

Deposit 6.38 Commercial Paper 2.89

Cash & Cash

Equivalents 4.42

Cash & Cash

Equivalents 2.86

Commercial

Paper 1.73 Certificate of Deposit 0.98


Inception Date: June 9, 2005 Fund Manager Name: Prashant Pimple AUM (as at June 2014): Rs. 4,797.62 crores Exit Load: 1% (if redeemed within 1 year from date of allotment). Nil after 1 year.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00


Reliance Reg Savings Fund-Debt Plan(G)

Crisil Composite Bond Fund Index

8.58%

4.55%

6.62%

8.06%7.97%

9.28%

58

Recommended Dynamic Bond Funds

59

Birla Sun Life Dynamic Bond Fund

Investment Strategy: The fund’s intent is to design a portfolio which will dynamically manage interest rate movements in the short term by reducing duration in a rising interest rate scenario while increasing duration when interest rates are falling. At the same time, the fund manager will also consider yield spreads both on the gilt and corporate bond instruments to gain maximum value.

Our Analysis: In our previous analysis, we had noted that the fund was heavily biased towards the corporate debt space with more than 50% allocation into the same during December 2012-November 2013. However, it is interesting to observe that during the current review, the fund has the maximum exposure into G-Secs, as the allocation into the same has been increased from 24% in December 2013 to 86% in June 2014. On the other hand, the fund has reduced the allocation into corporate debt from 53% to 11% during the same time period. The Modified Duration of the Fund has increased from 2.30 years in December 2013 to 6.33 years in June 2014.

Top 5 Instruments



(%)

Corporate Debt 53.40 Government Securities 85.82

Government

Securities 23.50 Corporate Debt 10.88

Commercial

Paper 10.77

Cash & Cash

Equivalents 2.39

Cash & Cash

Equivalents 8.43

Floating Rate

Instruments 0.87

Treasury Bills 1.89 Treasury Bills 0.04


Inception Date: September 27, 2004 Fund Manager Name: Maneesh Dangi AUM (as at June 2014): Rs 8,976.91 crores Exit Load: 0.50% Within 180 days from the date of allotment. Nil after 180 days from the date of allotment.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00


Birla SL Dynamic Bond Fund-Ret(G)


6.67%

8.76% 8.96%

9.35%

7.45%

8.23%

60

UTI-Dynamic Bond Fund

Investment Strategy: The fund’s mandate is to actively manage the portfolio in line with the view on the interest rate scenario. The fund is positioned between a short-term fund and a medium/long term fund. This is because it has the ability to mimic a cash fund when interest rates are rising while in a declining interest rate scenario, it can generate the returns of an Income Fund.

Our Analysis: In the current review, across the 7 month time period, the fund has actively reduced the exposure into corporate debt from 89% in December 2013 to 27% in June 2014. On the other hand, the average allocation into G-Secs and Cash and Cash Equivalents has been 27% and 22% respectively during the above time period. As far as the average maturity is concerned, it initially increased from 3.70 years in December 2013 to 8.50 years in April 2014 after which it was reduced to 2.60 years in June 2014.

Top 5 Instruments



(%)

Corporate Debt 88.95

Cash & Cash

Equivalents 56.86

Cash & Cash

Equivalents 6.91 Corporate Debt 26.53

Government

Securities 4.14 Government Securities 16.08

Deposits 0.53


Inception Date: June 16, 2010 Fund Manager Name: Amandeep S. Chopra

AUM (as at June 2014): Rs. 375.11 crores

Exit Load: 0.75% within 89 days from the date of allotment. Nil after 89 days.

0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 year 3 year

UTI Dynamic Bond Fund-Reg(G)


9.78%

4.55%

10.12%

7.97%

61

DSP BlackRock Strategic Bond Fund

Our Analysis: In the current review, the fund continues to maintain a positive bias towards Corporate Debt and G-Secs whose average allocation stood at 49% and 32% respectively. The average maturity of the fund has shown an increase from 3.82 years in February 2014 to 6.42 years in June 2014.

Investment Strategy: The fund intends to actively manage the portfolio and ensure a high degree of liquidity in the portfolio.

Top 5 Instruments



(%)

Corporate Debt 44.09 Government Securities 44.82

Government

Securities 42.45 Corporate Debt 42.74

Cash & Cash

Equivalents 8.42

Cash & Cash

Equivalents 5.00

Certificate of

Deposit 5.04 Commercial Paper 4.95

Certificate of Deposit 2.49


Inception Date: May 9, 2007 Fund Manager Name: Dhawal Dalal AUM (as at June 2014): Rs. 2,004.11 Crores Exit Load: 0.1% within 7 calendar days from the date of allotment: Nil after 7 calendar days from the date of allotment.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00


DSPBR Strategic Bond Fund(G)


6.62%

4.55%

7.97%

9.02%

6.62%

7.61%

62

Recommended Income Funds

63

Franklin India Income Builder Account

Investment Strategy: The fund’s mandate is to actively manage the portfolio by investing into high quality fixed income instruments.

Our Analysis: The fund has increased the allocation into G-Secs from to 3% in December 2013 to 22% in June 2014. As far as the average maturity of the fund is concerned, it has increased from 2.63 years in

December 2013 to 4.05 years in June 2014.

Top 5 Instruments



(%)


Certificate of

Deposit 16.90 Government Securities 21.53

Cash & Cash

Equivalents 9.09

Cash & Cash

Equivalents 11.33

Government

Securities 3.23 PTC & Securitized Debt 0.05

PTC &

Securitized Debt 0.07


Inception Date: June 23, 1997 Fund Manager Name: Santosh Kamath & Sumit Gupta AUM (as at June 2014): Rs. 1,463.63 crores Exit Load: 0.50%, if redeemed within 1 year of allotment .

0.00

2.00

4.00

6.00

8.00

10.00

12.00


Franklin India IBA-A(G)


6.20%

4.55%

7.97%

10.18%

6.62%

8.45%

64

Canara Robeco Income Fund

Investment Strategy: The fund will invest into Debt and money market securities of different maturities and risk profiles which will offer reasonable liquidity and returns. On the other hand, some portion of the surplus will be invested into rated and un-rated corporate bonds and debentures. Our Analysis: The fund’s exposure into Corporate Debt initially increased from 29% in December 2013 to 61% in May 2014 and as of June 2014 stands at 42%. On the other hand, the average exposure into G-Secs stood at 48% during the current review. The average maturity has increased from 5.89 years in December 2013 to 10.08 years in June 2014.

Top 5 Instruments



(%)

Government


Corporate

Debt 28.77 Corporate Debt 41.90

Cash & Cash

Equivalents 11.28

Cash & Cash

Equivalents 3.73


Inception Date: September 19, 2002 Fund Manager Name: Avnish Jain AUM (as at June 2014): Rs. 180.93 crores Exit Load: 1% within 12 months from the date of allotment: Nil after 12 months from the date of allotment .

0.00

1.00

2.00

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4.00

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6.00

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8.00

9.00


Canara Rob Income-Reg(G)


3.60%

4.55%

7.97%8.28%

6.62%6.95%

65

Baroda Pioneer Public Sector Undertaking (PSU) Bond Fund

Investment Strategy: The fund will predominantly invest into Debt securities issued by domestic Public Sector Undertakings. In addition to this, the scheme also has the flexibility to invest into companies based on various criterions like sound professional management, track record, industry scenario, growth prospects, liquidity of the securities, etc.

Top 5 Instruments



(%)

Corporate

Debt 69.99 Certificate of Deposit 69.74

Certificate

of Deposit 26.88 Corporate Debt 26.69

Cash & Cash

Equivalents 2.95

Cash & Cash

Equivalents 3.35

Government



Our Analysis: The fund is biased towards Certificates of Deposit with the allocation into the same increasing from 27% in December 2013 to 70% in June 2014. On the other hand, the fund has reduced the exposure into corporate debt from 70% to 27% during the same time period. The average maturity of the fund is 0.85 years in June 2014 vis-à-vis 2.53 years in December 2013.

Inception Date: December 24, 2009 Fund Manager Name: Alok Sahoo & Hetal Shah AUM (as at June 2014): Rs. 58.09 crores Exit Load: On or after August 16, 2012: 0.50% on or before 6 months from the date of allotment. Nil if redeemed after 6 months from the date of allotment.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

1 year 3 year

Baroda Pioneer PSU Bond Fund(G)


6.37%

4.55%

7.97%8.61%

66

Recommended GILT – Short Term Fund

67

SBI Magnum Gilt Fund – Short Term Plan

Investment Strategy: The fund will invest into government securities issued by the Central Government and the State Governments. The fund also has the flexibility to invest into term/notice money market, repos and reverse repos to meet the liquidity requirements or on defensive considerations.

Top 5 Instruments



(%)

Treasury

Bills 62.70

Cash & Cash

Equivalents 45.83

Government

Securities 28.91 Treasury Bills 30.34

Cash & Cash

Equivalents 8.39 Government Securities 23.83


Our Analysis: In the current review, the average allocation into G-Secs, Treasury Bills and Cash and Cash Equivalents stood at 19%, 52% and 32% respectively. The average maturity of the fund was at 2.18 years in June 2014.

Inception Date: December 30, 2000 Fund Manager Name: Dinesh Ahuja AUM (as at June 2014): Rs. 124.52 crores Exit Load: CDSC - 0.15% for exit within 15 days from The date of investment .

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00


SBI Magnum Gilt-STP(G)

I-Sec Si-BEX

8.79%

6.80%

8.53%

9.37%

7.05%7.42%

68

Recommended GILT – Long Term Funds

69

Birla Sun Life Government Securities Fund - Long Term Plan

Investment Strategy: The fund will invest into G-Secs or State Government securities and has the flexibility of having duration of up to seven years.

Our Analysis: During the current review, the average allocation into G-Secs was to the tune of 96%. The modified duration of the fund stood at 8.44 years in June 2014 as against 7.58 years in December 2013.

Top 5 Instruments



(%)

Government


Cash & Cash

Equivalents 3.68

Cash & Cash

Equivalents 4.34


Inception Date: : October 28, 1999 Fund Manager Name: Prasad Dhonde AUM (as at June 2014): Rs. 359.70 crores

Exit Load: 1% if redeemed / switched out within 365 days from the date of allotment.

0.00

1.00

2.00

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5.00

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Birla SL G-Sec-LT(G)

I-Sec Li-BEX

0.61%

1.67%

8.50%8.22%

6.96%

8.19%

70

IDFC Government Securities Fund - Investment Plan


The fund’s mandate is to invest into Government Securities which are aimed at generating optimal returns with high liquidity.

Our Analysis: In December 2013, the fund’s exposure into G-Secs stood at 96% which was reduced to 31% in March 2014. It was again increased and as of June 2014 the allocation into G-Secs stood at 98%. The average maturity of the fund also went from 10.70 years in December 2013 to 2.03 years in March 2014 after which it showed an increase and was at 12.39 years in June 2014.

Top 5 Instruments



(%)

Government


Cash & Cash

Equivalents 3.81

Cash & Cash

Equivalents 1.82


Inception Date: March 09, 2002 Fund Manager Name: Suyash Choudhary AUM (as at June 2014): Rs. 424.58 crores Exit Load: Nil

0.00

2.00

4.00

6.00

8.00

10.00

12.00


IDFC G Sec-Invest-Reg(G)

I-Sec Composite Gilt Index

3.56%4.07%

8.57%

10.23%

7.00%

7.55%

71

.

Recommended Balanced Funds

72

HDFC Balanced Fund

0.00

10.00

20.00

30.00

40.00

50.00

60.00


HDFC Balanced Fund(G)

Crisil Balanced Fund Index

49.27%

20.99%

9.93%

16.37%

10.57%

20.30%

Others , 9%

Equity , 70%

Debt , 21%

Asset Allocation (as of December 2013)

Source: ACE, iFAST Compliations

Investment Strategy: The fund’s mandate is to be a lower risk alternative to a pure equity scheme, while retaining some of the upside potential from equities exposure. The Fund Manager has the flexibility to shift allocations into the different asset classes depending on his views regarding the same.

Our Analysis: An analysis of the portfolio shows that during the current review, the average allocation into equities and debt has been 69% and 23% respectively. As far as equities are concerned, the fund is very positive on the banking sector and the exposure into the same was at 18% in June 2014. On the Fixed Income space, the fund has been showing an increasing bias towards G-Secs as can be seen from the fact that the exposure into the same has increased from 6% in December 2013 to 14% in June 2014.

Inception Date: September 11, 2000 Fund Manager Name: Chirag Setalvad AUM (as at June 2014): Rs. 1,772.93 crores Exit Load: 1% (if redeemed within 18 months from date of allotment). Nil after 18 months

Others , 5%

Equity , 69%

Debt , 26%

Asset Allocation (as of June 2014)


73

ICICI Prudential Balanced Fund

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00


ICICI Pru Balanced Fund-Reg(G)

Crisil Balanced Fund Index

40.96%

20.99%

9.93%

17.90%

10.57%

18.46%

Investment Strategy: The fund’s mandate is to invest into equities and fixed income instruments. The strategy of the fund will be to take long-term call on stocks which would offer a better return over a long time period. Due to liquidity and risk considerations, the fund would take a smaller exposure into mid and small-cap stocks.

Our Analysis: During the 7 months under review, the average allocation into equities and debt were 68% and 25%. A glance through the equity portfolio shows that the fund has been biased towards banks and auto ancillaries with an average allocation of 12% and 9%. In June 2014, the maximum allocation from these sectors was into 2 stocks namely HDFC Bank and Motherson Sumi Systems. It is interesting to note here that these 2 stocks have been among the top 5 picks during the entire 7 months under review. On the fixed income space, the average allocation into G-Secs and corporate debt has been 18% and 7% in the current review.

Inception Date: November 3, 1999 Fund Manager Name: Equity : Yogesh Bhatt; Debt : Manish Banthia AUM (as at June 2014): Rs. 901.66 crores Exit Load: 1% (if redeemed within 12 months from date of allotment). Nil after 12 months.

Others , 10%

Equity , 69%

Debt , 20%



Others , 7%

Equity , 66%

Debt , 26%



74

Recommended Monthly Income Plans (MIPs)

75

DSP BlackRock MIP Fund

0.00

2.00

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6.00

8.00

10.00

12.00

14.00


DSPBR MIP Fund-Reg(G)

Crisil MIP Blended Index

12.85%

8.24% 8.53%

10.67%

7.65%

9.33%

Others , 4%

Equity , 24%

Debt , 71%



Others , 3%

Equity , 24%

Debt , 73%



Investment Strategy: The fund will have a substantial portion of the portfolio invested into quality debt securities while a smaller proportion of the investments will be invested into equities. As for the debt securities, the Fund Manager will invest into those securities which are rated Investment Grade by domestic rating agencies such as CRISIL, ICRA, etc. and will also consider unrated Debt securities which are of equivalent quality. To select stocks, a combination of top-down and bottom-up approaches will be adopted.

Our Analysis:

A perusal of the portfolio shows that in the current review, the average allocation into debt and equities were 70% and 24%.The fund continues to be biased towards Corporate debt and G-Secs with the average allocation in both remaining at 51% and 18% respectively. As of June 2014, the average maturity of the fund stood at 5.19 years. As far as equities are concerned, the fund seems to be very positive on banks and the allocation into this sector has increased from 4% in December 2013 to 8% in June 2014.

Inception Date: Jun 11, 2004 Fund Manager Name: Dhawal Dalal & Vinit Sambre AUM (as at June 2014): Rs. 372.07 crores Exit Load: 1% within 12 months from the date of allotment: Nil after 12 months from the date of allotment.

76

Canara Robeco Monthly Income Plan

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00


Canara Rob MIP-Reg(G)

Crisil MIP Blended Index

17.92%

8.24% 8.53%

10.26%

7.65%

9.51%

Others , 9%

Equity , 24%

Debt , 67%



Others , 9%

Equity , 25%

Debt , 67%



Investment Strategy: The fund’s mandate is to invest into debt and money market securities of different maturities and risk profiles, while a small portion of the surplus will be allocated into equities.

Our Analysis: A glance through the asset allocation of this fund shows that the average allocation has been at 68% and 24% in debt and equity. In the current review, the fund’s maximum exposure from the fixed income side has been into corporate debt and G-Secs with an average allocation of 41% and 20% respectively. The average maturity of the fund was at 6.66 years in June 2014. In the equity segment, the fund’s top sectoral pick have been banks with an average allocation of 5%.

Inception Date: April 24, 1988 Fund Manager Name: Ravi Gopalakrishnan & Avnish Jain AUM (as at June 2014): Rs. 225.26 crores Exit Load: 1% within 1 year from the date of allotment: Nil after 1 year from the date of allotment.

Recommended Funds 2014 - Performance Update · Recommended Funds 2014 - Performance Update Prepared...

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