KARVY’s

September, 2018

INVESTOR JOURNAL

www.karvyvalue.com

What’s Inside

KARVY’sINVESTOR JOURNAL

Fund of the MonthDSP Small Cap Fund-Reg(G)

The primary investment objectiveis to seek to generate long term capital...September, 2018

Page 05

Market ReviewPage 01

Karvy Investment InsightPage 03-04

Fund of The MonthPage 05

Readers CornerPage 06

Associate Connect Page 07

Story of The MonthPage 08

SIP PerformancePage 09

Category Average ReturnsPage 10

Fixed Deposits SchemesPage 11

Equity Funds PerformancePage 12

Debt Funds PerformancePage 13

Global Markets at a GlancePage 14

Indices WatchPage 15

Highlights of the Month » RBI has hiked the repo rate by 25 bps to 6.50%, citing food and

fuel inflation as concerns for the economy. Consequently, RBI has hiked reverse repo rate and the marginal standing facility (MSF) rate by 25 bps to 6.25 and 6.75%, respectively.

» 10 year G-sec eased marginally in July on due to better than normal monsoons, hike in direct tax collections and reduction in oil prices after Saudi agreed to raise oil output. Yields reduced by 0.13% to 7.77% as on July 31, 2018 as against 7.90% in June 29, 2018.

» Assets from B30 locations grew from Rs. 3.23 lakh crore in May 2018 to Rs. 3.32 lakh crore in June 2018. T30 assets meanwhile grew marginally from Rs. 20.19 lakh crore to Rs. 20.24 lakh crore, shows the latest AMFI data.

» Interestingly, majority of B30 assets (65%) were in equity schemes due to higher retail participation. Also, majority of T30 assets were in non-equity schemes (63%) because of institutional presence. AMFI data shows that 94% of institutional investor AUM comes from T30 cities while 6% was from B30 cities.

» An analysis of the latest AMFI quarterly data shows that average ticket size of retail investors in equity funds was Rs.77,805 as on June 2018. We have included balanced funds and ETFs that track indices besides pure equity funds and ELSS in equity funds.

» On the other hand, average ticket size of corporate and HNIs is Rs.79.68 lakh and Rs. 12.85 lakh, respectively.

» The latest SEBI data shows that the industry has added 8.62 lakh new folios in July 2018. Consequently, the total folio count touched 7.55 crore, an increase of 1.2% from June 2018. This folio growth despite volatile markets indicate that the TINA (there is no alternative) effect is at play.

» While folio growth was positive in equity funds such as pure equity schemes, ELSS and balanced funds, the ETF category witnessed a decline of 85,989 folios.

INVESTOR JOURNALSeptember, 2018

Market Review

The Indian mutual fund industry has been on the fast track to growth in the last decade.

At 12.5% annualised growth rate, it is growing at double the rate clocked by world and developed countries, shows a recent AMFI-CRISIL study.

1.Foreign Trade: India registered a merchandise trade deficit of USD 18.02 billion in Jul’18 against USD 11.45 billion in Jul’17, increasing by 57.38% on Y-o-Y basis. On an M-o-M basis, the trade deficit also expanded by 8.55% from USD 16.60 billion recorded in Jun’18.

The Rupee ranged between Rs.68.30 - Rs.69.05 per USD before closing at Rs.68.61 per USD in the month of Jul’18, vis-à-vis Rs.68.58 per USD recorded in Jun’18.

The country’s merchandise exports was reported at USD 25.77 billion in Jul’18 as against USD 22.54 billion recorded in Jul’17, recording a strong growth of 14.33% Y-o-Y.

Non-petroleum exports, constituting around 85% of the total exports, stood at USD 21.86 billion, recording a Y-o-Y growth of 11.91% in Jul’18. Petroleum exports also saw a Y-o-Y surge of 31% in Jul’18 with exports worth USD 3.91 billion against USD 3.00 billion in Jul’17.

The country witnessed a growth in exports during the month of July across the various segments of Engineering goods, Petroleum Products, Organic & Inorganic Chemicals and Drugs &

Pharmaceuticals among others.

2.Inflation:

Headline CPI inflation for July-18 stood at 4.17%, 75bps lower compared to previous month mainly due to favorable base effect. Retail inflation print for June-18 has been revised downwards at 4.92%. Consequently, core inflation moderated to 6.28% vs 6.43% in previous month.

On food inflation front, sequential momentum noted a rise in pricing pressures of 1.43% visà-vis 0.94%

recorded in the previous month. Specifically, vegetables inflation noted upward thrust, rising to 8.56% in the current reading from 5.97% in the previous month.

Falling by 68 bps, July Wholesale Price Index came in at 5.09% as against 5.77% in the June mainly led by sharp fall in prices of minerals along with favorable base effect. The vegetable index alone saw a sequential rise of 18.36% compared to 15.72% in the previous month, whereas fuel prices fell by 0.29% in July compared to 2.97% in June.

3.Index of Industrial Production (IIP):

Industrial Production: Output growth increased to 7.04% in Jun’18, principally on account of increment in the y-o-y output growth of consumer durables and capital goods. The manufacturing sector and use-based categories, particularly infrastructure/construction goods and primary goods, among others recorded a healthy y-o-y growth in Jun’18.

Among the BSE sectoral indices, S&P BSE Health Care index with 12.24% was the top gainer and S&P BSE Auto index with 0.90% was the top looser.

Amongst the NSE Sector indices Nifty Auto with 0.32% was top looser and Nifty pharma was the top gainer with 13.20%. It was a mixed month for the major Asian Indices as Hangseng, Taiwan, Nikkei 225 ended by -2.43% and 0.06%, 1.38% respectively.

Apart from FII and MF activity, Key domestic data released in the month of August were:

1

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INVESTOR JOURNALSeptember, 2018

S&P BSE SENSEXDate Close Price Points Diff %age Change

31-Jul-2018 37606.58

3-Aug-18 37556.16 -50.42 -0.13%

10-Aug-18 37869.23 313.07 0.83%

17-Aug-18 37947.88 78.65 0.21%

24-Aug-18 38251.80 303.92 0.80%

31-Aug-18 38645.07 393.27 1.03%

2.76%

CNX Nifty IndexDate Close Price Points Diff %age Change

31-Jul-2018 11356.50

3-Aug-18 11360.80 4.30 0.04%

10-Aug-18 11429.50 68.70 0.60%

17-Aug-18 11470.75 41.25 0.36%

24-Aug-18 11557.10 86.35 0.75%

31-Aug-18 11680.50 123.40 1.07%

2.85%

Sensex & Nifty: (Month Between 31-Jul-2018 to 31-Aug-2018)

MF Activity: (Month Between 01-Aug-2018 to 31-Aug-2018)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

1-Aug-18 2,745.13 2,983.16 -238.03

8-Aug-18 2,324.34 2,227.74 96.60

16-Aug-18 3,022.31 2,880.33 141.98

23-Aug-18 3,242.88 3,007.76 235.12

30-Aug-18 3,948.05 4,904.45 -956.40

Aug-18 50,316.89 47,465.19 2,851.70

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

1-Aug-18 5,492.51 7,617.52 -2,125.01

8-Aug-18 7,275.88 5,814.62 1,461.26

16-Aug-18 5,756.06 3,886.28 1,869.78

23-Aug-18 7,879.84 7,642.78 237.06

30-Aug-18 9,358.93 7,813.33 1,545.60

Aug-18 1,37,116.15 1,09,579.69 27,536.46

2

FII Activity: (Month Between 01-Aug-2018 to 31-Aug-2018)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

1-Aug-18 4,596.85 4,872.79 -275.94

8-Aug-18 4,312.90 3,395.97 916.93

16-Aug-18 10,768.47 12,104.13 -1,335.66

27-Aug-18 4,261.15 3,825.31 435.84

31-Aug-18 6,751.76 9,652.26 -2,900.50

Aug-18 1,00,906.14 1,02,934.95 -2,028.81

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

1-Aug-18 1,837.12 455.49 1,381.63

8-Aug-18 1,025.86 510.28 515.58

16-Aug-18 695.45 1,045.93 -350.48

27-Aug-18 677.55 412.1 265.45

31-Aug-18 487.46 827.21 -339.75

Aug-18 18,679.49 16,312.72 2,366.77

-----------------------------------------------------------------------------------------------------------------------------------------------------------Source : ACE MF

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INVESTOR JOURNALSeptember, 2018

Karvy Investment Insight

Peace of mind and Wealth Creation ideas for long term

Karvy Insights brings to you investment wisdom to help our investors make sound investment decisions and reach their goals faster. These inputs may not help you become wealthy in a short span of time, but they would definitely give you peace of mind and a roadmap for your financial journey.

3

Zero risk in an investment can mean zero returns

Quite often we come across people chasing the best performing asset class of the moment in the quest to earn superior returns with the least or, in some cases, no consideration for risks involved. If the outcome is positive, they wish they had invested everything they had back then. Such behaviour is not uncommon and stems from the fact that most people are oblivious to the concept of risk.

For many years, property and gold were considered as safe avenues for investment and one would get laughed at if she said that their prices could come down some day. Apart from price volatility, there are other inherent risks in these investments which people fail to consider. Here is a look at some such risks that apply to most asset classes.

Market risk: In simple words, this is the risk that the principal invested may not return its full value when you sell the asset. This applies to all investments. Just in case someone thought that investing in the so called safe havens such as gold and bonds would be devoid of market risks, they are mistaken.

Liquidity risk: This is the risk that the asset cannot be sold at the desired time or market price if cash is needed at a short notice. While there is a high level of liquidity risk with property, it is lesser in gold.

Credit risk: This are relevant to bond investments and arises when the borrower defaults or delays on payment of interest or principal. Investors tend to ignore the financial health of the borrower and go for high yielding investments.

INVESTOR JOURNALSeptember, 2018

Karvy Investment Insight

4Courtesy : A Joint investor awareness initiative by Karvy Stock Broking Ltd. and Canara Robeco Mutual Funds

Reinvestment risk: Investments in bonds carry reinvestment risk. This is because interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond.

Reinvestment risk: Investments in bonds carry reinvestment risk. This is because interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond.

Risk of unpredictable returns: Standard deviation is used as a measure of risk of unpredictable returns. It measures the movement away from the average in a data set. For instance, for headline equity indices, the standard deviation based on their annual returns falls in the range of 35-37%, for mid- and small-cap indices it is 40-45%, for the gold price index it is about 18%, for the government securities index it is 6.5-7.5%, for bond indices it is 2-4%, for the liquid index it is up to 2%, and for the one-year treasury bill index it is about 3%.

So, if the average annual return on bonds is 7%, a standard deviation of 4% would mean that most of the times the returns would range between 7%-plus and negative 4%, i.e., between 3% and 11%.

While making investment decisions, savvy investors prefer to consider risk-adjusted returns, which take into account standard deviation in returns. The past financial market turmoil, especially in 2008, has caused great harm. But it has also made us better informed and increased our awareness towards risk.

With increased thrust on financial inclusion in India, we would hopefully see increased awareness and change in investor behaviour towards risks as well.In the financial world, the phrase ‘risk-free rate’ refers to yields on treasury bills. But are they really risk-free? All investing involves taking some form of risk, even if it is not that apparent. Talking about risks which are not apparent but are present, brings forth the classic example of deposits placed with various institutions which earn a fixed rate of interest. Technically speaking, these offer predictable returns (negligible to zero standard deviation), which may also be the best risk-adjusted returns. But there are other risks to consider. No, I am not talking about credit risk, reinvestment risk or even illiquidity risk, which are very much there and which most text books will teach you and prepare you for. I am pointing towards the risk of loss of purchasing power, either due to inflation or due to taxes. Are investors actually earning real returns after taking inflation into consideration? This is the risk of playing too safe or being too conservative. I am not suggesting that one should take more risk to get proportionately higher returns. But the least one could do is to follow a proper asset allocation depending on her investment horizon, goal(s) and risk appetite. Generally, a financial adviser helps one with a suitable asset allocation depending on individual inputs shared with her.

The bottom line is that you can’t eliminate all risk when investing, and the more you focus on avoiding just one peril, the more vulnerable you’ll be to others. By diversifying smartly, you should be able to protect yourself adequately against a variety of risks, and lower the chances that any single threat will do your portfolio in.

There’s no such thing as a risk-free return, and it’s not a right-now problem based on the level of the market or the low returns on deposits, but it’s about how risk works. The same rule applies to stock picking as well. When a company’s stock is available at a certain price, one needs to ascertain whether there are risks that are not apparent but are present and which need to be considered to arrive at the true value of that stock. These could be the risk of a faulty business model, weak management or corporate governance structure, weak financials, and so on, all of which impact the sustainability of the company’s earnings. If one considers all the risks and then prices the stock accordingly, the outcome of the investment is likely to be a better risk-adjusted one.

INVESTOR JOURNALSeptember, 2018

5

‘Tweets’ of the Month

Fund of The Month

DSP Small Cap Fund-Reg(G)

Investment Objective:

The primary investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small cap companies. From time to time, the fund manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction. There is no assurance that the investment objective of the Scheme will be realized.

Portfolio:

Top 10 Companies Holdings

Name %age

Atul Ltd. 3.8

Ipca Laboratories Ltd. 3.5

Aarti Industries Ltd. 3.5

SRF Ltd. 3.3

Finolex Cables Ltd. 3.3

APL Apollo Tubes Ltd. 2.9

DCB Bank Ltd. 2.9

KPR Mill Ltd. 2.8

Nilkamal Ltd. 2.6

Siyaram Silk Mills Ltd. 2.5

Top 10 Sector Wise Holding

Industry Name (%)

Chemicals 13.0

Textile 8.3

Auto Ancillary 7.2

Pharmaceuticals & Drugs 6.4

Plastic Products 6.3

Cable 5.4

Steel & Iron Products 4.2

Other 3.5

Diversified 3.3

Ceramics/Marble/Granite/Sanitaryware 3.2

To read the full Information, Click Here

Indicates an increase or decrease or no change in holding since last profile. Indicates an increase or decrease in holding since last portfolio.

INVEST HERE

“Nobody can predict interest

rates, the future direction of the economy or the stock

market. Dismiss all such forecasts and concentrate on what’s actually happening

to the companies in which you’ve invested.” - Peter Lynch

- Cheap Investor@CheapInvesting

Some of the best

opportunities are the companies that are

forgotten, misunderstood, or viewed as insignificant.

#microcap

- Ian Cassel@iancassel

“As an industry we have

a long way to go as retail contribution is still 28%, long

way to go” Journey of next decade very exciting , our past methods

cannot be basis for future growth.

- Gaurav Suri@gawruv

Source : ACE MF

Expectation: The market crashes periodically; don’t

be surprised when it happens and have an asset allocation that lets you endure it.

Forecast: The market is going to crash by December. More of the former, less of the

latter.

- Morgon Housel@morganhousel

Worst performing currencies against US Dollar over past year.

Venezuela: -2,500,000% Argentina: -104% Turkey: -96% Brazil: -30% Iran: -30% Ethiopia: -18%

Russia: -17% Pakistan: -16% Sweden: -15% Myanmar: -13% South Africa: -13% India: -11%

- The Spectator Index@spectatorindex

INVESTOR JOURNALSeptember, 2018

Readers Corner

6

FROM MUTUAL FUNDSTO MUTUAL FRIENDS

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HOW TO MAKE GOAL BASED INVESTMENT

Our goals can only be reached through a vehicle called Plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” - Pablo Picasso

If you are investing without a goal in mind, then you are not saving enough for your future needs. Having a goal-based investment plan is both very important as well as useful.

What is a goal?

A lot of us think that dreaming about a house or a car is a goal. But the actual goal is where your name few things very clear in mind.

• What is my goal? - Give a name to your goal• When do I want to achieve this? - Decide a time horizon• How much money do I need to achieve this goal? - Decide the monetary value of your goal

Once you have the above 3 things in your clear conscious, you are all set to take the next steps.

Mistakes to avoid while doing goal-based investment:

Not having target amount in mind: All of us want to more and more returns, but having a target amount in mind will help you to make decisions like how much do you need to invest, till when to hold and when to sell your investment. It will act as a balance between savings and expense.

Not considering inflation: The prominent reason we save and invest is to beat inflation so we can still buy the same things and live the same lifestyle even after 10 years. Always consider inflation while deciding your target amount. Calculate the future value of your goals. There are lots of calculators available in the market which can help you to do so.

Not saving enough: The most common mistake done at the time of doing goal-based investment is we overestimate our savings. Once you have determined the future value of your goal or inflation-adjusted value...

To read the full Article, Click Here

INVESTOR JOURNALSeptember, 2018

Associate Connect

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How advisor can help clients planning personal finance

Financial planning has changed a lot as a process over the past few years. But the basics remain the same. Here are six tips to help your client in financial planning process

1. Spend less than you earn:

This is a no-brainer. Yet most clients fail to do so, despite worrying about their ability to meet their financial goals. They must spend less money than what they earn. This can be done by first preparing a saving plan – keeping money aside for savings - and then preparing spending plan.

2. Prepare a budget and stick to it:

Preparing a budget that details income, expenses, and saving is a must if client want a smooth execution of financial plan. When you prepare a budget, you will know where your money is going, so that you can plug out all wasteful expenses. This will also help your client in preparing proper spending and saving goals.

3. Create an emergency funds:

As a general rule in planning financial life, an advisor must help client first save an emergency fund, then pay off high-interest debt, and only then advising on investment. As a rule of thumb, emergency fund should cover 6-8 months of household expenses. Thus money must be kept ultra-safe, either in a bank account or in a debt fund so that he/she can access it quickly. In the second leg of the cycle, it’s important to pay off any loan (usually credit card loan or personal loan) as soon as possible. This is simply because such a loan is, well, high cost, and eats into monthly savings.

4. Buy insurance:

Research proves that Indians are inadequately insured. If your client also fall into this category, don’t delay insuring your client and his family’s future. Insurance can bring you immense peace of mind to client. So buy them some!

5. Investment planning:

An advisor can help client suggesting proper allocation of money between stocks, bonds, mutual funds, gold and real estate etc. Investment is in fact one of the most important stages of the financial planning process, as it is here that you are looking to help your client achieve his financial goals like buying house, children education, etc.

6. Make a Will:

Like insurance, a large majority of Indians don’t have a will. If your client has dependents, no matter how little or how much they own, they need a will. Write a will for them.

Source: Advisor perspective

INVESTOR JOURNALSeptember, 2018

Story of The Month

A crow lived a very satisfied life in a forest. But one day, he

saw a Swan. “This Swan is so white,” he thought, “and I am

so black. This swan must be the happiest bird in the world.”

He expressed his thoughts to the Swan. “Actually,” the Swan

replied, “I was feeling that I was the happiest bird around until

I saw a parrot, which has two colors. I now think the parrot is

the happiest bird in creation.” The crow then approached the

parrot. The parrot explained, “I lived a very happy life until

I saw a peacock. I have only two colors, but the peacock has

multiple colors.”

WHO IS HAPPY - THE PEACOCK AND THE CROW

The crow then visited a peacock in the zoo and saw that hundreds of people had gathered to

see him. After the people had left, the crow approached the peacock. “Dear peacock,” the crow

said, “you are so beautiful. Every day thousands of people come to see you. When people see

me, they immediately shoo me away. I think you are the happiest bird on the planet.”

The peacock replied, “I always thought that I was the most beautiful and happy bird on the

planet. But because of my beauty, I am entrapped in this zoo. I have examined the zoo very

carefully, and I have realized that the crow is the only bird not kept in a cage. So, for the past

few days, I have been thinking that if I were a crow, I could happily roam everywhere.”

MORAL OF THE STORY:

Courtesy : Karvy Learning Center

Direct Dil Se…

8

That’s our problem too. We make unnecessary comparison with others and become sad. We don’t value what God has given us. This all leads to the vicious cycle of unhappiness. Learn to be happy in what you have instead of looking at what you don’t have. There will always

be someone who will have more or less than you have. Person who is satisfied with what he/she has, is the happiest person in the world.

INVESTOR JOURNALSeptember, 2018

SIP Performance

S&P BSE SENSEXCurrent NAV (`)

3 Year SIP 5 Year SIP

Rs.36000 Rs.60000

Profit-SIP XIRR(%) Profit-SIP XIRR(%)

Large Cap

Mirae Asset Emerging Bluechip-Reg(G) 52.44 12551.43 20.43 742.53 11.68

Canara Rob Emerg Equities Fund-Reg(G) 98.57 12605.20 20.51 841.96 13.27

Principal Emerging Bluechip Fund(G) 112.26 12193.41 19.90 606.46 9.51

Sundaram Large and Mid Cap Fund(G) 35.62 12830.44 20.84 1348.92 21.50

Invesco India Growth Opp Fund(G) 35.39 12733.14 20.70 1292.94 20.58

Multi Cap

Invesco India Multicap Fund(G) 52.18 36607.32 19.13 10344.81 17.12

Mirae Asset India Equity Fund-Reg(G) 50.67 36341.22 19.01 11939.52 19.52

Kotak Standard Multicap Fund(G) 35.37 35670.73 18.73 11052.22 18.19

Aditya Birla SL Equity Fund(G) 748.22 35035.59 18.45 10433.98 17.25

Principal Multi Cap Growth Fund(G) 149.62 34830.10 18.37 11570.21 18.97

Mid Cap & Small Cap

Kotak Emerging Equity Scheme(G) 40.04 40775.50 20.87 8948.35 14.97

Axis Midcap Fund(G) 37.85 39593.78 20.38 13131.78 21.28

HDFC Mid-Cap Opportunities Fund(G) 58.60 39524.06 20.35 10186.56 16.88

Invesco India Midcap Fund(G) 51.79 39039.18 20.15 11215.98 18.44

Edelweiss Mid Cap Fund-Reg(G) 28.62 38998.60 20.13 9582.29 15.95

ELSS

Aditya Birla SL Tax Relief '96(G) 33.66 38559.14 19.95 11981.86 19.58

Axis Long Term Equity Fund(G) 46.06 38327.10 19.85 12166.14 19.86

Aditya Birla SL Tax Plan(G) 42.13 37285.69 19.41 11776.75 19.28

Invesco India Tax Plan(G) 53.38 36070.25 18.90 11895.39 19.45

Principal Tax Savings Fund 220.19 34681.68 18.30 11524.60 18.90

Sector

ICICI Pru Banking & Fin Serv Fund(G) 62.92 44384.07 22.32 13581.90 21.94

DSP Natural Res & New Energy Fund-Reg(G) 34.65 44087.92 22.21 13588.31 21.96

Reliance Banking Fund(G) 286.81 41573.92 21.19 14109.10 22.71

Invesco India Financial Services Fund(G) 55.42 39564.20 20.37 13211.13 21.40

Mirae Asset Great Consumer Fund-Reg(G) 35.54 38961.29 20.12 14418.90 23.15

Index

ICICI Pru Nifty Next 50 Index Fund(G) 27.42 36256.39 18.98 11556.87 18.95

IDBI Nifty Junior Index Fund(G) 23.32 33572.42 17.82 10625.39 17.54

HDFC Index Fund-Sensex(G) 338.08 27713.88 15.18 12189.02 19.89

Taurus Ethical Fund-Reg(G) 54.97 27265.35 14.97 10351.21 17.13

UTI Nifty Index Fund-Reg(G) 75.08 27211.19 14.95 11511.86 18.88

As on 03rd Sep’18 (Funds have been arranged on 3 years performance)

9

Source : ACE MF

INVESTOR JOURNALSeptember, 2018

Category Average Returns

Category Sub Category1 Week Return

1 Month Return

3 Month Return

6 Month Return

1 Year Return

3 Year Return

5 Year Return

Since Inception

Market Cap

Large-cap -0.31 2.30 5.15 4.20 9.23 14.56 23.00 16.09

Large and mid cap -0.31 1.82 4.72 4.01 8.70 12.80 19.54 12.74

Mid-cap 0.22 2.35 3.34 0.56 6.21 13.49 28.09 11.94

Multi-cap -0.48 1.32 4.40 4.26 9.00 13.38 21.97 11.47

Small-cap 0.93 1.10 -1.79 -5.43 4.13 14.58 30.80 11.06

Sector Funds

Banks & Financial Services -1.46 0.46 4.65 9.62 7.66 18.28 25.78 16.74

Consumption -0.26 2.85 5.60 6.30 15.14 16.20 19.02 11.16

Energy & Power 0.34 1.17 0.59 -6.28 -0.22 18.83 25.18 14.20

Infrastructure 0.42 1.33 -0.13 -5.79 1.25 11.30 22.89 7.62

Pharma & Health Care 2.37 7.44 20.10 10.76 18.74 -0.79 15.63 11.58

Service Industry 1.45 3.28 7.89 3.08 15.06 8.12 22.11 15.19

TECk 0.97 5.60 10.97 15.78 45.11 12.28 17.21 13.70

Speciality

Contra -0.64 2.13 6.95 9.78 18.82 17.80 24.37 14.39

Dividend Yield 0.03 1.82 4.29 2.89 8.55 14.16 19.23 15.38

Global 1.17 3.97 7.61 9.78 20.46 12.45 9.34 10.31

MNC 1.76 5.05 7.51 9.30 17.84 11.50 27.52 18.10

Equity Exchange Traded Funds -0.77 2.28 8.91 11.59 17.12 14.85 17.48 14.28

Equity Linked Savings Scheme -0.05 1.66 3.32 2.35 8.16 13.97 22.19 12.67

Equity Savings Scheme -0.23 0.80 2.78 3.57 5.75 8.12 9.07 6.86

Focused Fund -0.57 1.82 5.72 5.71 9.43 14.47 22.05 11.06

Index

Nifty -0.88 2.02 8.46 10.94 16.47 14.11 16.86 12.45

Nifty Next 50 0.67 3.73 7.16 5.82 8.60 15.99 23.96 11.52

Sensex -0.99 2.01 8.95 12.92 20.40 14.35 16.13 14.64

Others 0.18 3.00 7.69 7.33 14.16 11.90 17.87 15.50

Aggressive Hybrid Fund -0.30 1.68 4.44 4.30 7.76 11.48 18.18 11.63

Balanced FundsBalanced advantage -0.17 1.32 3.48 3.54 7.18 11.99 17.31 11.64

Balanced hybrid -4.49 11.07 12.05 7.49 6.00 6.50 9.17 7.44

Capital Protection Funds -4.63 11.26 10.86 7.20 5.11 7.41 9.13 6.90

Conservative Hybrid Fund -13.01 4.50 8.60 5.49 3.67 7.67 10.31 8.64

Dynamic Asset Allocation -0.47 0.69 3.21 4.97 7.37 9.07 15.56 8.76

Fund of FundsDomestic 0.96 2.47 1.49 1.07 4.85 8.66 12.61 10.71

Overseas -0.16 1.97 1.34 0.32 12.96 7.75 5.36 6.52

Multi Asset Allocation -0.03 1.29 3.02 3.77 7.49 9.11 11.49 10.64

Gold - FOF 47.16 4.38 -15.41 -2.93 -2.69 3.46 -3.45 0.08

Gold Exchange Traded Funds 85.35 25.96 -10.99 -1.78 -0.04 2.99 -2.98 3.92

Banking and PSU Fund 0.81 4.53 7.61 5.94 4.45 7.21 8.06 7.67

Corporate Bond 0.74 4.49 7.48 5.69 3.75 6.98 8.17 7.35

Credit Risk Fund 2.39 5.49 7.75 6.43 5.13 7.95 9.00 8.10

Dynamic Bond -4.46 1.52 5.66 5.07 1.04 6.78 8.21 7.26

Fixed Maturity Plans 2.92 5.99 8.48 6.90 5.83 7.81 8.85 6.56

GiltLong Term -29.53 -10.27 3.61 5.06 1.00 7.37 9.26 7.47

Short and Medium term -11.34 -2.61 4.34 5.13 -1.30 6.48 8.21 7.93

Floating Rate 5.52 6.26 7.79 6.77 5.89 7.30 8.13 7.80

Duration

Long duration -23.71 -6.91 3.59 3.58 -0.24 5.91 7.78 5.64

Low Duration 5.91 6.52 7.78 7.02 6.25 7.35 8.10 7.52

Medium Duration -1.91 3.54 7.11 6.04 3.96 7.58 8.92 8.10

Medium to Long Duration -9.18 -0.90 4.72 4.27 -0.13 6.12 7.61 7.88

Money Market 7.14 6.98 7.66 7.26 6.78 7.24 7.96 7.47

Overnight 5.85 6.00 5.88 5.85 5.54 6.29 7.11 6.74

Short Duration 2.67 5.26 7.51 6.01 4.55 6.95 8.07 7.36

Speciality-Debt

Interval Funds - Half Yearly 5.76 6.08 6.71 7.01 6.77 7.25 7.88 7.99

Interval Funds - Monthly 6.23 6.35 6.91 7.10 6.78 6.93 7.66 7.87

Interval Funds - Quarterly 6.90 6.66 7.20 7.26 7.07 7.15 7.90 8.11

Interval Funds - Yearly 6.00 6.27 7.54 7.24 6.70 7.38 8.26 7.90

Liquid 6.78 6.77 6.99 7.09 6.83 7.00 7.79 7.33

Ultra Short Term Plan 6.65 6.67 7.59 7.14 6.49 7.38 8.28 7.55

Returns are as on 03rd Sep’18

10Source : ACE MF

INVESTOR JOURNALSeptember, 2018

Fixed Deposits Schemes

FD Name Rating IndustryInterest Rate

* (Up to)

Bajaj Finance Ltd.FAAA by CRISILICRA MAAA

Bajaj Finserv is the most diversifed non-bank in the country, the largest financier of consumer durables in India and one of the most profitable firms in the category.

8.75%

DHFL Aashray DepositPlus

CARE AAA FD, BWR FAAA

Dewan Housing Finance Ltd (DHFL) is the second housing finance company to be set up in the private sector in India.

9.15%

Gruh Finance Ltd.MAAA by ICRA, FAAAby CRISIL

GRUH Finance Ltd is subsidiary of HDFC Ltd is housing finance company (HFC) recognized by National Housing Bank.

8.00%

HDFC Ltd.FAAA by CRISIL, MAAA by ICRA

A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 4.9 million customers to own a home of their own. HDFC is the Largest mobiliser of public deposits outside the banking system and the HDFC Group has a strong asset base of over Rs.2.97 trillion and a customer base of over 42.5 million.

8.05%

HUDCO‘tAA+(ind)’ by FITCH, ‘CARE AA+(FD)’ by CARE

HUDCO is a premier techno-financing company set up in 1970 by the Government of India to accelerate the pace of housing and urban development in the country.

7.75%

ICICI Home Finance Ltd

CARE FAAA, ICRA MAAA

ICICI Home Finance Company Limited is one of the leaders in the Indian mortgage finance and realty space.

8.25%

LIC Housing Finance Ltd.

FAAA / STABLE by CRISIL

One of India’s largest housing finance companies, having nation-wide network. Consistent record of dividend payments.

8.10%

Mahindra & Mahindra Financial Services Ltd

CRISIL FAAAMahindra and Mahindra Financial Services Limited (MMFSL) commenced its journey two decades back in the rural non-banking finance industry.

8.75%

PNB Housing Finance Ltd.

FAAA by CRISILPNB Housing Finance (PNBHF) is a subsidiary of Punjab National Bank and a partner of Destimoney Enterprises Pvt. Ltd. PNBHF was incorporated in 1988 and is based in New Delhi.

8.50%

Shriram City Union Finance Ltd.

IND +AA- CARE AA FD

As a deposit-accepting non-banking financial company (NBFC), Shriram City is today India’s premier financial services company specializing in retail finance.

9.00%

Shriram Unnati Deposits

FAAA/Stable by CRISIL, MAA+/Stable by ICRA

With a track record of about 30 years in this business, STFC is among the leading organized finance provider for the commercial vehicle industry

9.00%

Sundaram Home Finance Ltd.

ICRA MAA+Sundaram BNP Paribas Home Finance combines its expertise in Home Finance with the Service Orientiation of its promoter Sundaram Finance.

7.75%

* highest rate including additional interest for Senior citizens, employees etc. wherever applicable

11

INVESTOR JOURNALSeptember, 2018

Equity Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Diversified

Reliance Small Cap Fund(G) 45.10 14.80 22.61 39.39 20.80

Mirae Asset Emerging Bluechip-Reg(G) 52.44 10.66 20.43 35.14 22.52

Canara Rob Emerg Equities Fund-Reg(G) 98.57 11.90 18.85 35.39 18.48

Principal Emerging Bluechip Fund(G) 112.26 10.32 18.70 32.12 27.94

Aditya Birla SL Small Cap Fund(G) 39.34 3.78 17.64 29.59 12.80

ELSS

Motilal Oswal Long Term Equity Fund-Reg(G) 18.04 5.45 18.77 17.71

Principal Tax Savings Fund 220.19 11.79 18.06 24.95 16.89

Aditya Birla SL Tax Relief '96(G) 33.66 18.98 17.07 26.46 12.40

HDFC Long Term Adv Fund(G) 357.94 11.39 16.62 22.02 22.43

Tata India Tax Savings Fund-Reg(G) 18.26 9.17 16.28 16.72

Sector

DSP Natural Res & New Energy Fund-Reg(G) 34.65 -0.41 26.98 26.52 12.74

SBI Banking & Financial Services Fund-Reg(G) 17.39 17.12 25.18 17.01

Aditya Birla SL Banking & Financial Services Fund-Reg(G) 30.09 8.59 23.98 26.27

ICICI Pru Banking & Fin Serv Fund(G) 62.92 4.59 21.29 30.50 20.11

Reliance Banking Fund(G) 286.81 8.63 20.41 29.56 24.56

Thematic

Sundaram Rural and Consumption Fund(G) 44.14 6.45 20.27 25.90 12.81

Invesco India Contra Fund(G) 50.04 21.57 18.92 29.18 15.16

Principal Dividend Yield Fund(G) 55.56 13.88 18.05 22.05 13.14

Canara Rob Consumer Trends Fund-Reg(G) 39.80 13.39 17.81 24.40 16.64

Aditya Birla SL India GenNext Fund(G) 84.17 10.97 16.70 24.44 17.68

Value

Tata Equity P/E Fund(G) 142.73 8.01 19.80 28.58 20.61

HDFC Capital Builder Value Fund(G) 306.33 14.90 16.72 24.15 14.92

IDFC Sterling Value Fund-Reg(G) 55.71 5.86 16.56 24.86 17.77

Aditya Birla SL Pure Value Fund(G) 58.81 -0.45 15.89 31.11 18.49

Templeton India Value Fund(G) 269.89 4.65 13.87 21.85 18.71

Equity Index

ICICI Pru Nifty Next 50 Index Fund(G) 27.42 9.37 16.65 24.49 13.09

IDBI Nifty Junior Index Fund(G) 23.32 7.83 15.32 23.43 11.23

HDFC Index Fund-Sensex(G) 338.08 20.96 15.21 17.03 15.69

UTI Nifty Index Fund-Reg(G) 75.08 17.26 15.01 17.60 11.51

IDFC Nifty Fund-Reg(G) 23.78 17.20 14.93 17.64 10.93

(Funds has been arranged on the basis of 3 years performance)

12

Source : ACE MF

INVESTOR JOURNALSeptember, 2018

Debt Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Gilt Funds

SBI Magnum Constant Maturity Fund(G) 37.42 3.88 8.25 9.49 7.74

ICICI Pru Gilt Fund(G) 60.49 0.44 8.08 9.43 9.91

Aditya Birla SL G-Sec Fund(G) 48.54 -1.22 7.94 9.67 8.71

Reliance Gilt Securities Fund(G) 22.99 -0.22 7.87 9.70 8.65

UTI Gilt Fund-Reg(G) 38.53 -0.15 7.69 9.37 8.45

Asset Allocation

ICICI Pru Multi-Asset Fund(G) 253.09 4.89 11.20 18.09 22.77

SBI Dynamic Asset Allocation Fund-Reg(G) 13.24 8.11 9.94 8.76

Invesco India Dynamic Equity Fund(G) 29.29 7.58 9.52 15.92 10.44

Axis Triple Advantage Fund(G) 19.32 9.98 8.38 9.85 8.66

HDFC Multi-Asset Fund(G) 31.87 6.46 8.30 10.95 9.36

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Balanced

HDFC Balanced Advantage Fund(G) 193.14 11.84 15.21 20.21 17.89

Aditya Birla SL Balanced Advantage Fund(G) 51.76 3.52 11.98 15.26 9.36

Reliance Balanced Advantage Fund(G) 88.42 6.04 10.55 17.56 17.10

ICICI Pru Balanced Advantage Fund(G) 34.30 7.32 10.23 16.19 11.12

Union Balanced Advantage Fund-Reg(G) 10.27 4.00

Conservative Hybrid

ICICI Pru Regular Savings Fund(G) 40.43 4.96 9.53 12.25 10.24

Aditya Birla SL Regular Savings Fund(G) 38.96 1.46 9.43 13.36 10.06

DHFL Pramerica Hybrid Debt Fund(G) 21.88 6.65 8.39 8.07 7.56

SBI Debt Hybrid Fund(G) 38.12 0.66 7.62 9.86 8.01

DSPBR Regular Savings Fund-Reg(G) 36.58 2.89 7.54 9.90 9.61

Arbitrage

Reliance Arbitrage Fund(G) 18.26 6.30 6.18 7.00 7.93

ICICI Pru Equity-Arbitrage Fund(G) 23.57 5.88 6.12 7.13 7.61

Invesco India Arbitrage Fund(G) 21.81 5.90 5.98 6.89 7.11

DHFL Pramerica Arbitrage Fund-Reg(G) 12.93 5.49 5.97 6.59

IDFC Arbitrage Fund-Reg(G) 22.45 5.86 5.97 7.00 7.15

Gold-FOF

ICICI Pru Regular Gold Savings Fund(G) 10.41 4.58 4.37 -2.22 0.59

Canara Rob Gold Savings Fund-Reg(G) 9.29 3.24 4.07 -2.70 -1.18

Axis Gold Fund(G) 9.59 2.31 2.64 -3.53 -0.60

Quantum Gold Saving Fund-Reg(G) 12.46 0.37 1.67

HDFC Gold Fund(G) 9.89 0.07 3.09 -2.47 -0.17

(Funds has been arranged on the basis of 1 year performance)

Hybrid Funds Performance

13Source : ACE MF

INVESTOR JOURNALSeptember, 2018

Global Markets at a Glance

14

Exhibit: Nifty

Exhibit: S&P 500

Exhibit: Euro Stoxx 50

Exhibit: Nikkei

Exhibit: Shanghai

Exhibit: INR

Exhibit: Dollar Index

Exhibit: Eur

Exhibit: JPY

Exhibit: CNY

Exhibit: India 10 Yr Yld %

Exhibit: US 10 Yr Yld %

Exhibit: Germany 10 Yr Yld %

Exhibit: Japan 10 Yr Yld %

Exhibit: China 10 Yr Yld %

Source: Bloomberg, Karvy Research

116601168011700117201174011760

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7.86

7.88

7.90

7.92

7.94

7.96

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31-A

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2,895

2,900

2,905

2,910

2,915

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31-A

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94.4

94.6

94.8

95.0

95.2

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31-A

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2.84

2.85

2.86

2.87

2.88

2.89

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3,3603,3803,4003,4203,4403,4603,480

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1.155

1.160

1.165

1.170

1.175

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0.340

0.360

0.380

0.400

0.420

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22,790

22,810

22,830

22,850

22,870

22,890

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110.9

111.1

111.3

111.5

111.7

111.9

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0.100

0.105

0.110

0.115

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2,7202,7302,7402,7502,7602,7702,7802,790

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3.593.603.613.623.633.643.65

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INVESTOR JOURNALSeptember, 2018

Indices Watch

Index NameAs on

27-Jul-18As on

31-Aug-18%

Change

S&P BSE 100 11625.85 12016.97 3.36%

S&P BSE 200 4870.95 5040.98 3.49%

S&P BSE 500 15314.81 15846.20 3.47%

S&P BSE Auto Index 24496.98 24716.48 0.90%

S&P BSE Bankex 31005.96 31741.91 2.37%

S&P BSE Capital Goods 18295.56 18996.76 3.83%

S&P BSE Con Durables 20902.46 21696.40 3.80%

S&P BSE Dollex 30 4500.88 4471.34 -0.66%

S&P BSE FMCG 12012.67 12771.69 6.32%

S&P BSE Greenex 2869.23 2999.01 4.52%

S&P BSE Health Care 14205.73 15945.17 12.24%

S&P BSE IT 14527.23 15548.52 7.03%

S&P BSE Metal Index 12659.62 13821.31 9.18%

S&P BSE Mid-Cap 16013.44 16881.33 5.42%

S&P BSE O & G Index 15023.57 15079.04 0.37%

S&P BSE Power Index 1975.25 2140.72 8.38%

S&P BSE PSU 7688.09 7907.60 2.86%

S&P BSE Realty Index 2094.86 2141.43 2.22%

S&P BSE Sensex 37606.58 38645.07 2.76%

S&P BSE Small-Cap 16584.16 17193.20 3.67%

S&P BSE TECk Index 7383.64 7817.25 5.87%

Indian Indices:

Index NameAs on

27-Jul-18As on

31-Aug-18%

Change

Nifty Pharma 9179.40 10390.95 13.20%

India VIX 12.48 12.60 0.94%

Nifty IT 14587.80 15811.40 8.39%

Nifty Serv Sector 15363.95 15645.40 1.83%

Nifty Financial Services 11662.90 11719.05 0.48%

Nifty Bank 27764.15 28061.75 1.07%

Nifty 50 11356.50 11680.50 2.85%

Nifty FMCG 31007.25 32911.55 6.14%

Nifty 100 11633.85 12003.10 3.17%

Nifty 100 11633.85 12003.10 3.17%

Nifty Consumption 5248.25 5379.30 2.50%

Nifty 200 6032.30 6240.55 3.45%

Nifty MNC 14716.25 15066.90 2.38%

Nifty 500 9650.60 9992.00 3.54%

Nifty Energy 15150.20 15763.00 4.04%

Nifty 500 Shariah 3092.38 3191.40 3.20%

Nifty Div Opps 50 2689.25 2807.85 4.41%

Nifty Auto 10973.75 11009.25 0.32%

Nifty Midcap 50 5010.90 5345.45 6.68%

Nifty PSU Bank 3186.25 3315.50 4.06%

Nifty Media 2832.55 2840.10 0.27%

Nifty Commodities 3641.10 3852.45 5.80%

Nifty Metal 3335.10 3643.45 9.25%

Nifty Infra 3158.10 3289.25 4.15%

Nifty PSE 3610.60 3725.35 3.18%

Nifty Realty 272.85 275.85 1.10%

Global Indices:

Index NameAs on

27-Jul-18As on

31-Aug-18%

Change

Bovespa 79220.44 76678.00 -3.21%

CAC 40 5511.30 5406.85 -1.90%

Dow Jones 25415.19 25964.82 2.16%

FTSE 100 7748.76 7432.40 -4.08%

Hang Seng 28583.01 27888.55 -2.43%

Nasdaq 7671.79 8109.54 5.71%

Nikkei 225 22553.72 22865.15 1.38%

NYSE 12963.28 13016.89 0.41%

S&P 500 2816.29 2901.52 3.03%

Taiwan Weighted 11057.51 11063.94 0.06%

All Ordinaries 6366.20 6427.80 0.97%

DisclaimerThe information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document.

This report is intended for a restricted audience and we are not soliciting any action based on it.

For more information on MUTUAL FUNDS call1800 425 8282 or contact your nearest Karvy branch.

Contact PersonPF/MFNL/05092018/56

Ankit ChoradiaE-mail : ankit.choradia@karvy.com

Phone : 040 3321 7132

Production: Naga Babu K

15

Source : ACE MF