RETAIL RESEARCH Weekly Statistics Global Index 27-Feb 20-Feb Change (%) Sensex 29362 29231 +0.45 Nifty 8902 8828 +0.83 DJIA 18133 18140 -0.04 Nasdaq 4493 4956 +0.15 FTSE 6947 6915 +0.46 DAX 11402 11051 +3.18 Hang Seng 24823 24832 -0.04 Nikkei 18798 18332 +2.54 Bovespa 51583 51238 +0.67 Indonesia Jakarta 5450 5400 +0.93 Singapore – Strait 3403 3436 -0.95 MSCI Emerging Mkt 990 984 +0.59 Mutual Fund Categories watch Category Name 1 Week Absolute 1 Month Absolute 3 Month Absolute 6 Month Absolute 1 Year CAGR 3 Year CAGR Arbitrage Funds 0.17 0.72 2.43 4.15 8.71 8.96 Balanced - Equity -0.26 -0.45 5.21 13.67 46.83 21.2 Equity - Banking -0.26 -5.89 6.9 21.63 76.45 23.77 Equity - Div Yield 0.06 -1.13 5.22 15.42 59.12 21.04 Equity - Infra 0.22 -0.45 5.68 15.58 75.31 17.76 Equity - Large Cap -0.3 -0.65 6.13 15.83 53.42 21.71 Equity - Mid Cap -0.56 -0.27 8.28 22.27 81.74 33.06 Equity - MNC -0.02 3.03 16.05 35.26 94.4 34.97 Equity - Multi CAP -0.28 -0.67 6.56 17.63 60.96 24.41 Equity - FMCG -0.72 3.59 11.23 22.4 43.79 27.69 Equity - Infotech -0.22 5.19 6.04 16.87 27.42 25.81 Equity - Pharma -1.94 -1.6 2.94 14.74 44.84 34.55 ELSS -0.32 -0.81 6.61 17.02 58.52 24.67 Gold ETFs -0.76 -4.96 0.5 -4.88 -11.76 -3.27 Gilt Funds -0.01 0.59 5.13 10.28 17.03 9.8 Income Funds 0.14 0.42 3.56 7.83 13.51 9.54 Liquid Funds 0.15 0.67 2 4.08 8.45 8.68 MIP 0.04 0.16 3.68 8.55 19.16 11.07 Short Term Income 0.23 0.56 2.4 5.38 10.5 9.24 Note: Trailing Returns up to 1 year are absolute and over 1 year are CAGR. NAV/index values are as on Feb 28, 2015. Equity Markets Due to Union Budget 2015-16, a live trading session was conducted on 28 February 2015, despite it being a Saturday. The S&P BSE Sensex rose 0.48% to settle at 29,361.50, its highest closing level since 19 February 2015.The CNX Nifty rose 0.65%, its highest closing level since 29 January 2015. The index hit a low of 8,751.35 in intraday trade. The market breadth indicating the overall health of the market was negative. 1,498 shares declined and 1,230 shares gained. A total of 141 shares were unchanged. The BSE Mid-Cap index fell 0.01% to settle at 10,810.85. The BSE Small-Cap index fell 0.47% to settle at 11,266.44. Both these indices underperformed the Sensex. Outlook for the current weeks The market could be volatile this week as select stocks and sectors will react to the outcome of Union Budget 2015-16, which was be held on Saturday, 28 February 2015. Trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar, and crude oil price movement will also dictate trend on the bourses. Stock market will be closed on Friday, 6 March 2015, on account of Holi. Global Markets For the week, the Dow was down 0.04% and the Nasdaq was up 0.15%. The MSCI Asia Pacific Index advanced 1.5% last week. G sec Markets Indian bond yields ended higher during the week ended Feb 27, 2015. The G sec market opened the week on Monday on a positive note tracking the stronger rupee. However, the market ended lower for the day in the wake of profit booking by market participants. RETAIL RESEARCH Mar 02, 2015 Weekly Mutual Fund and Debt Report
Note: Trailing Returns up to 1 year are absolute and over 1 year are CAGR. NAV/index values are as on Feb 28, 2015.
Equity Markets
Due to Union Budget 2015-16, a live trading session was conducted on 28 February 2015, despite it being a Saturday. The S&P BSE Sensex rose 0.48% to settle at 29,361.50, its highest closing level since 19 February 2015.The CNX Nifty rose 0.65%, its highest closing level since 29 January 2015. The index hit a low of 8,751.35 in intraday trade. The market breadth indicating the overall health of the market was negative. 1,498 shares declined and 1,230 shares gained. A total of 141 shares were unchanged. The BSE Mid-Cap index fell 0.01% to settle at 10,810.85. The BSE Small-Cap index fell 0.47% to settle at 11,266.44. Both these indices underperformed the Sensex.
Outlook for the current weeks
The market could be volatile this week as select stocks and sectors will react to the outcome of Union Budget 2015-16, which was be held on Saturday, 28 February 2015. Trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar, and crude oil price movement will also dictate trend on the bourses. Stock market will be closed on Friday, 6 March 2015, on account of Holi.
Global Markets
For the week, the Dow was down 0.04% and the Nasdaq was up 0.15%. The MSCI Asia Pacific Index advanced 1.5% last week.
G sec Markets
Indian bond yields ended higher during the week ended Feb 27, 2015. The G sec market opened the week on Monday on a positive note tracking the stronger rupee. However, the market ended lower for the day in the wake of profit booking by market participants.
RETAIL RESEARCH
Mar 02, 2015
Weekly Mutual Fund and Debt Report
RETAIL RESEARCH
10 Year G sec Benchmark move:
Liquidity:
Debt Securities Benchmarks watch
Debt (%) 20-Feb 13-Feb Change (bps)
Call Rate 7.25 7.64 -39
CBLO 6.90 7.12 -22
Repo 7.75 7.75 0
Reverse Repo 6.75 6.75 0
10 Year G sec 7.72 7.69 3
LIBOR – UK 0.56 0.56 0
LIBOR – USA 0.25 0.25 0
LIBOR – Europe 0.05 0.05 0
G sec prices ended lower on Tuesday due to the bearish activity amidst absence of any major triggers and apprehensions over the upcoming budget. The prices of the government securities ended marginally higher on Wednesday tracking appreciation the domestic currency value. The G-Sec market witnessed range-bound activity on Wednesday due to the absence of any major triggers and a holiday shortened trading week. Rise in US treasury yields and global crude oil prices weighed the prices of the bonds. Government bonds prices ended lower on Thursday as the market players trimmed their positions on caution before the announcement of Union Budget. Government securities prices ended higher on Friday seeing the Economic Survey for 2014-15, which talked of possibility of softer inflation trajectory, which in turn could aid the softening in monetary policy. Hence, the yields of the 10-year benchmark 8.40% 2024 bond ended up by 3 bps at 7.72% (Rs 104.45) on Friday against the last week close of 7.69%.
Outlook for the week
We feel that the new 10-year G Sec yields could trade in the 7.55% - 7.85% band for the week.
T Bill Auctions
The T-Bill auctions held last week were fully subscribed in the 91 days T-Bill. The cut-off for 91-Days T-Bill was set at Rs 97.96, implying a yield of 8.37% (previous week yield 8.35%). The 182-Days T-Bill auctions were fully subscribed. The cut-off for 182-Days T-Bill was set at Rs 96.01 implying a yield of 8.33%.
Liquidity, Call & CBLO
The liquidity in the banking system improved last week compared to the previous week. The net infusion from the LAF window was a daily average of Rs. 16,742 crore for last week (Rs. 19,580 crore in previous week). The inter-bank call rates traded around 7.25% levels on Friday. The CBLO rates were positioned at 6.9% level.
RETAIL RESEARCH
AAA Corporate Bond Spread over Gsec:
AAA Corporate Bond Spread over Gsec
Security 27-Feb 20-Feb
1 Year 71 60
3 Year 38 53
5 Year 41 55
10 Year 42 44
Forthcoming Auctions; Security Date of Auction Value (Rs. Crs)
91 Day T-Bill 04-Mar-15 8,000
364 Day T-Bill 04-Mar-15 6,000
Certificates of Deposits:
Maturity 27-Feb 20-Feb
3 Months 8.7 8.75
6 Months 8.7 8.75
1 Year 8.7 8.7
Commercial Papers:
Maturity 27-Feb 20-Feb
3 Months 9.15 9.3
6 Months 9.1 9.2
1 Year 9.05 9.2
Commodity Update:
Commodity 27-Feb 20-Feb Change (%)
NYMEX Crude Oil ($/bbl) 49.76 50.81 -2.07%
Gold (oz/$) 1,213.1 1,204.4 +0.72%
Corporate Debts
The 1 year bond ended at 8.7% compared to the previous week close of 8.75%. The 10-year AAA bond traded at 8.27% compared to the previous week close 8.33%.
Currency
The USD appreciated against the Euro by 1.59% for week ended 27 February 2015. The dollar appreciated against the yen by 0.47% for the week. The USD appreciated against the pound by 0.29%.
Gold & Crude oil
International crude oil prices (WTI) dropped by 2.07% for the week ended 27 February, 2015 to close at USD 49.76 per barrel. International gold prices rose by 0.72% for the week ended 27 February, 2015 to close at USD 1213.1 per troy ounce.
10 Yr G sec Benchmark Yields Movements in last one month.
RETAIL RESEARCH
Scheme Analysis HDFC Equity Fund
RETAIL RESEARCH
Unit Growth of investments Vs. Benchmark (Rebased to 100)
Fund Performance Vis-a-vis Benchmark (Excess returns - monthly) in the last one year:
Excess returns (scheme returns over Nifty returns) over the last 8 years
Key Points
HDFC Equity is one of the consistently performing schemes from the Equity Large-cap category. This is
one of the schemes which managing largest corpus among the equity oriented category. The scheme has
outperformed its benchmark and category for the one, three and five year time frames all thanks to the
efficiency of fund manager on taking calls. Despite the scheme showing an average performance over
short term, it managed to generate higher returns over long term. The scheme registered 60%, 23% and
17% of compounded returns for one, three and five year periods while the benchmark -CNX 500 posted
50%, 20% and 12% of returns respectively. For the same period, the category clocked 52%, 22% and 14%
of CAGR returns respectively.
The scheme focuses mainly on investing in quality companies that are reasonably valued and have a
growth potential. The scheme is a large-cap oriented as the fund manager allocates most of the assets in
the large cap stocks. However, a considerable allocation into mid and small cap stocks helped this scheme
to generate relatively higher returns during equity market rallies and made relatively risky among the
peers. It is clearly exhibited from the below chart (last chart in the slide) that the scheme managed to
generate relatively higher excess returns than the other top performing schemes in the given periods
from the category. On the flip side, the scheme saw showed relatively poor returns but limited during the
market downturns.
The Fund manager follows conservative approach while choosing stocks especially on large caps side from
CNX 500 spectrum. Considering last one year portfolio, he has kept almost 80% equity assets in large cap
side. Portfolio has been churned moderately in the last six months periods as it added 5 new stocks and
exited from 7 stocks. It reflects in the turnover ratio of the scheme which is about 37%.
SBI, ICICI Bank and INFY are the stocks that topped in its latest portfolio having weights of 9.14%, 7.49%
and 6.81% to its net assets respectively. The expense ratio of 2.18% for the scheme is lower compared to
the category average of 2.62%.
Rating agencies like Value research & Crisil assigned ‘3 star’ and ‘CPR 3’ respectively for the scheme.
These reflect good performance of the scheme on generating high-risk adjusted returns. The scheme is
managed jointly by Mr. Prashant Jain and Mr. Rakesh Vyas. The corpus of the scheme as per latest data
was at Rs. 19181 crore.
As far as risk measures are concerned, the scheme has done moderately well in terms of Sharpe and
Jensons Alpha. It registered Sharpe of 0.07% (0.07% for the category) and Alpha of 0.01% (0.01%). The
scheme seems to be risky in the category as it generated 1.06% (category 0.90%) of Standard Deviation
over the last three-years.
RETAIL RESEARCH
Mutual Fund ready reckoner:
Equity - Diversified - Large CAP
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
3 Year Return
5 Year Return
Return Since Inception
Top holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
Birla Sun Life Frontline Equity - Plan A (G)
INF209K01BR9 166.45 8603 56.72 25.59 17.15 25.24
ICICI Bank, HDFC Bank, ITC
Tata Mot and SBI CPR 2 4 Star Average
Above
Average
HDFC Equity Fund - (G)
INF179K01608 475.46 19181 59.67 21.98 16.63 21.11
SBI, ICICI Bank, Infy, L&T
Aurobindo Pharma CPR 3 3 Star High High
ICICI Pru Focused Bluechip Equity Fund (G)
INF109K01BL4 30.06 8815 50.15 21.89 17.95 17.68
HDFC Bank Ltd, Infosys Ltd, ICICI Bank
Ltd, ITC Ltd and RIL CPR 3 5 Star Low High
Equity - Diversified - Multi CAP
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
3 Year Return
5 Year Return
Return Since Inception
Top holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
Franklin India High Growth Companies (G)
INF090I01981 29.72 1773 89.94 35.37 21.77 15.43
Axis Bank, HDFC Bank, Maruti Suzuki
India, Tech Mahindra & ICICI Bank CPR 1 5 Star
Below
Average High
ICICI Pru Dynamic Plan (G)
INF109K01761 193.81 5915 45.37 22.13 16.60 27.19
Power Grid Corp, INFY, HDFC Bank,
Wipro and RIL CPR 2 4 Star
Below
Average High
Reliance Equity Opportunities Fund (G)
INF204K01489 77.05 11172 68.31 29.04 22.41 22.86
HDFC Bank, Divi's Lab, SBI, Trent and
Cummins India CPR 1 3 Star
Below
Average Average
Equity - Diversified - Mid n Small CAP
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
3 Year Return
5 Year Return
Return Since Inception
Top holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
Reliance Small Cap Fund (G)
INF204K01HY3 24.56 1579 103.51 39.82 - 22.41
LG Balakrishnan & Bros, TVS Motor
Co., Atul, Kalpataru & CCL Pro CPR 2 5 Star Average High
ICICI Pru Value Discovery Fund (G)
INF109K01AF8 114.49 8682 84.87 33.97 23.21 26.05
ICICI Bank, RIL, Sadbhav Engineering,
PI Ind & Amara Raja Bat CPR 2 4 Star Low
Above
Average
Religare Invesco Mid N Small Cap
INF205K01DN2 35.88 389 86.97 36.10 26.23 21.04
DB Corporation, STFC, ING Vysya
Bank, Bharat Forge & Dish TV India CPR 3 4 Star
Below
Average High
Equity - Tax Planning
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
3 Year Return
5 Year Return
Return Since Inception
Top holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
AXIS Long Term Equity Fund (G)
INF846K01131 30.82 4034 76.34 35.00 25.16 24.38
HDFC Bank Ltd, TCS, L&T, HDFC Ltd,
ITC Ltd CPR 1 5 Star Low High
Reliance Tax Saver Fund - (G)
INF204K01GK4 49.64 4156 102.77 33.73 23.31 18.51
TVS Motor Co, SBI, Tata Steel, Wipro
& BHEL CPR 1 5 Star High High
RETAIL RESEARCH
Hybrid - Equity Oriented (Atleast 60% in equity)
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
3 Year Return
5 Year Return
Return Since Inception
Top holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
HDFC Balanced Fund (G)
INF179K01392 107.50 3284 51.84 22.77 19.03 17.85
SBI, ICICI Bank, Axis Bank, Aurobindo
Pharma & L&T CPR 1 4 Star
Below
Average High
ICICI Pru Balanced Fund - (G)
INF109K01480 93.20 1633 50.32 24.29 18.94 15.68
HDFC Bank, Motherson Sumi, City
Union Bank, Maruti Suzuki Ind & ICICI CPR 1 5 Star
Below
Average
Above
Average
Hybrid - Monthly Income Plan - Long Term (About 15% to 20% in equity)
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
3 Year Return
5 Year Return
Return Since Inception
Top holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
Reliance Monthly Income Plan (G)
INF204K01FD1 33.37 2521 26.84 13.12 10.97 11.40
Eq: Sundaram-Clayton, Federal Mogul
Goetze, HDFC Bank. CP: PFC CPR 2 4 Star
Above
Average
Above
Average
HDFC Monthly Income Plan - LTP (G)
INF179K01AE4 34.66 3818 27.25 12.90 10.95 11.77
Eq: SBI, Infy, ICICI Bank, L&T. Debt:
TATA Power, Hindalco Inds CPR 2 3 Star Average Average
Liquid Funds
Scheme Name NAV (Rs) Fund Size (Crs. Rs)
1 Year Return
2 Year Return
3 Year Return
Return Since Inception
Top Holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
HDFC Liquid Fund (G)
INF179K01KG8 27.35 14666 9.05 9.20 9.24 7.25
CP: National Bank Agr. Rur. Devp, CD:
National Bank Agr. Rur, Union Bank. CPR 3 3 Star
Below
Average
Above
Average
SBI Magnum InstaCash - Cash Plan
INF200K01LJ4 3064.08 1134 8.96 9.20 9.19 7.34
CP: M&M Financial Services, Kotak
Mahindra Prime, PFC, CD: SIDBI 2014 CPR 3 4 Star
Below
Average
Above
Average
Ultra Short Term Funds
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
2 Year Return
3 Year Return
Return Since Inception
Top Holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
ICICI Pru Flexible Income Plan - Regular (G)
INF109K01746 260.58 11913 9.50 9.55 9.52 7.49
CD: NABARD, Canara Bk, T Bill, CP:
HDFC, Debt: TCFSL CPR 1 4 Star
Below
Average
Above
Average
SBI Mag Income FRP - Savings Plus Bond (G)
INF200K01636 21.50 842 8.90 9.03 9.26 7.47
CD: HDFC, ICICI, IDBI. Debt: LIC Hou,
HDFC. CP: Sesa ste CPR 3 3 Star Low Average
Short Term Income Funds
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
2 Year Return
3 Year Return
Return Since Inception
Top Holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
Sundaram Select Debt - STAP (G)
INF903J01FG3 24.00 985 10.83 9.95 10.28 7.27
FD: J&K Bank, D: 11.6% DHFL. 2015,
CD: Central Bank of India 2013, CPR 3 3 Star Average
Above
Average
Franklin India Short Term Income (G)
INF090I01304 2847.73 10332 12.25 10.57 10.36 8.33
PTC: 11.85% Adani Enterprises. Debt:
Dewan Housing Fin CPR 1 4 Star Average
Above
Average
RETAIL RESEARCH
Income Funds
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
2 Year Return
3 Year Return
Return Since Inception
Top Holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
Birla Sun Life Medium Term Plan (G)
INF209K01603 16.88 3683 12.27 11.32 11.20 9.24
Debenture: DLF, Tata Mot, IL&FS
Transport, RHC Holdings CPR 3 4 Star Low
Above
Average
ICICI Pru Long Term Plan - Retail (G)
INF109K01712 31.84 349 20.97 14.98 12.89 9.38
Bonds: EXIM Bk, 8.28% GOI 9-21, 8.4%
GOI 7-28 & Cash - 5 Star Low High
Gilt Funds
Scheme Name NAV (Rs)
Fund Size (Crs. Rs)
1 Year Return
2 Year Return
3 Year Return
Return Since Inception
Top Holdings Crisil Rank
Value Research Rating
Risk Grade
Return Grade
Tata Gilt Mid Term Fund (G)
INF277K01LH6 15.30 129 17.96 11.83 11.24 9.52
SDL: 8.94% Maharashtra, GOI: 8.28%
GOI 9-21 CPR 3 4 Star Low High
Sundaram Gilt Fund - (G)
INF903J01FA6 23.61 40 13.07 15.67 14.90 6.41
8.83% GOI 2023, 8.28% GOI 2027,
8.6% GOI 2028 & 8.15% GOI 2026 - 5 Star Low High
Notes:
NAV value as on Feb 27, 2014. Portfolio data as on Jan 2015.
Returns are trailing and annualized (CAGR).
The notations '5 Star & CPR 1' (used by VR & Crisil respectively) are considered as top in respective rating and ranking scales.
The performance of the funds are rated and classified by Value Research in the following ways. Top 10% funds in each category were classified ‘*****’ funds, the next 22.5% got a ‘****’ star, while the middle 35% got a ‘***’, while the next 22.5% and bottom 10% got ‘**’ and ‘*’ respectively.
The criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAVs over the Quarter Ended Dec ‘14, Based on percentile of number of schemes considered in the category, the schemes are ranked as follows: CPR 1- Very Good performance, CPR 2 - Good performance, CPR 3 - Average performance, CPR 4 - Below average and CPR 5 - Relatively weak performance in the category.
Schemes shortlisted based on the corpus and age. Final picks arrived from return score (respective weightage given for rolling returns for 1m, 3m, 6m, 1yr, 2yr & 3yr) and risk score. Schemes from Quantum, Mirae and JM Mutual Funds have not been considered.
NFO:
Scheme name Tenure Open Date Close Date Minimum Investments
Equity
SBI Long Term Advantage Fund - Series II (G) 10 Years 12/22/2014 3/23/2015 500
Reliance Capital Builder Fund II - Sr.C (G) 3 Years 3/9/2015 3/23/2015 5000
Sundaram Long Term Tax Advantage Fund-Sr.I (G) 10 Years 12/18/2014 3/20/2015 500
DWS Large Cap Fund - Series 1 (G) 1281 Days 3/4/2015 3/18/2015 5000
Canara Robeco India Opportunities - Sr.2 (G) 3 Years 3/2/2015 3/16/2015 5000
Birla Sun Life Focused Equity Fund - Sr.5 (G) 3 Years 2/20/2015 3/13/2015 5000
Sundaram Top 100 - Series V (G) 3 Years 2/12/2015 3/11/2015 5000
UNION KBC Trigger Fund - Series 2 (G) 3 Years 2/18/2015 3/4/2015 5000
RETAIL RESEARCH
Dividend
Scheme Name Record Date Gross (%) Ex Date
Reliance Growth Fund - Inst (D) 3/5/2015 550.00 3/9/2015
Reliance Growth Fund - (D) 3/5/2015 65.00 3/9/2015
HDFC Top 200 Fund (D) 3/5/2015 50.00 3/9/2015
IDFC Premier Equity Fund (D) 3/2/2015 45.00 3/3/2015
IDFC Premier Equity Fund - Plan B (D) 3/2/2015 35.00 3/3/2015
HDFC Infrastructure Fund (D) 3/5/2015 15.00 3/9/2015
AXIS Equity Fund (D) 3/5/2015 10.00 3/9/2015
AXIS Equity Fund - Direct (D) 3/5/2015 10.00 3/9/2015
Motilal Oswal Most Focused Midcap 30 Fund (D) 3/4/2015 10.00 3/5/2015
Baroda Pioneer ELSS '96 - Plan A (G) 3/2/2015 3/2/2015 500
ETFs
SBI BSE 100 ETF 3/2/2015 3/5/2015 5000
SBI Banking ETF 3/2/2015 3/5/2015 5000
SBI Nifty Junior ETF 3/2/2015 3/5/2015 5000
Balanced
ICICI Pru Multiple Yield Fund - Sr.8-Plan G-Reg(G) 1284 Days 3/5/2015 3/19/2015 5000
DWS Hybrid FTF - Series 36 (G) 1210 Days 3/2/2015 3/16/2015 5000
DWS Hybrid FTF - Series 36 - Direct (G) 1210 Days 3/2/2015 3/16/2015 5000
DWS Hybrid FTF - Series 35 (G) 1100 Days 2/18/2015 3/4/2015 5000
ICICI Pru Capital Protection Oriented VII-H Reg(G) 1284 Days 2/18/2015 3/4/2015 5000
Tata Dual Advantage Fund - Sr.3 - Scheme A (G) 1099 Days 3/9/2015 3/20/2015 5000
Reliance Dual Advantage FTF - VII - Plan D (G) 1103 Days 3/5/2015 3/19/2015 5000
Birla Sun Life FTP - Series MJ (G) 1099 Days 3/2/2015 3/2/2015 5000
Religare Invesco FMP - Sr.XXV - Plan C (G) 1148 Days 2/24/2015 3/2/2015 5000
Ultra Short Term Funds
DSP BR Ultra Short Term Fund (G) 2/27/2015 3/4/2015 1000
Mutual Fund NEWS:
SEBI has canceled Sahara AMC's license as Portfolio Manager: The Securities and Exchange Board of India (SEBI) on Friday has cancelled the license granted to Sahara AMC to act as a portfolio manager, a Sebi release said. The Sebi said Sahara AMC is not a `fit and proper person' to act as a portfolio manager and rejected the application from the company for renewal of licence. According to the Sebi release, the Certificate of Registration granted to Sahara AMC will stand cancelled after 30 days of the receipt of the order and the AMC shall not take on any new clients during the intervening period. The release further said that Sahara AMC should transfer its business to another Sebi-registered portfolio manager or allow the clients to withdraw the securities and funds in its custody without any additional cost to them.
RETAIL RESEARCH
Global Updates: (Source: AMC Newsletters)
India:
• SEBI cancels the portfolio management licence held by Sahara Asset Management Company, saying the firm does not comply with its "fit and proper" norms. • India's foreign exchange reserves rose to $334.19 bn as of February 20, compared with $333.17 bn a week earlier. • According to the Railway Budget, the government plans investment of Rs 8.5 lakh cr over 5 years; no hike in passenger fares, however freight charges have been hiked 10% for urea, 2.7% for
cement, 6.3% for coal, and 0.8% for iron and steel. • RBI Deputy Governor S S Mundra says India is likely to meet the central bank’s inflation target of 6% by January 2016. • S&P raises India’s growth forecast to 7.9% from 6.2% for FY’2016 citing rising investment and low oil prices; also raises the forecast for FY’2017 to 8.2% from 6.6% forecasted earlier. • Moody's says fiscal policies and structural reforms will determine India's sovereign credit profile, and not recent revisions to the economic growth data. • President Pranab Mukherjee says India has emerged as the fastest growing large economy with an estimated 7.4% growth rate in 2014-15 and the government is taking "decisive measures" to
ensure a better future for the people. • RBI Deputy Governor H.R. Khan says a fall in global oil prices provides India with the opportunity to strengthen its balance sheet, alluding to the need to use savings to invest, build reserves
and cut subsidies. Asia:
• China’s official manufacturing purchasing managers’ index (PMI) rose slightly to 49.9 in February from 49.8 in January, while non-manufacturing PMI rose to 53.9 in February from 53.7 in
January. • Japan's consumer price index rose 2.2% in January from a year earlier, compared with a 2.5% rise in December. • Japan’s industrial production rose 4% month-on-month in January, following the 0.8% increase in December.
US:
• The US economy expanded at an annual rate of 2.2% in the fourth quarter of 2014, following growth of 5% in the previous quarter. • US pending home sales index rose 1.7% to a seasonally adjusted level of 104.2 in January from 102.5 in December. • University of Michigan's consumer sentiment index fell to 95.4 in February, from 98.1 in January. • US’ Chicago PMI fell to 45.8 in February compared with 59.4 in January. • US manufacturing PMI rose to 54.3 in February, up from the January's final reading of 53.9. • US initial jobless claims dropped 21,000 to a seasonally adjusted 283,000 for the week ended February 14. • US leading economic indicators index edged up 0.2% in January following a 0.4% in December
UK:
• UK GfK's consumer confidence index held at +1 in February, matching January's reading that was the highest since last August. • The UK economy expanded 2.7% annually in Q4 2014, following growth of 2.6% in the previous quarter; in 2014, the economy expanded 2.6%.
Euro Zone:
• Euro zone flash services PMI rose to a 7 month high of 53.9 in February from 52.7 in January. • Euro zone flash composite PMI came in at 53.5 in February, a 7 month high, compared to 52.6 in January.
RETAIL RESEARCH
Economic Calendar:
Date Country Event Period Frequency Unit Previous
2/3/2015 India Power generation Feb Monthly bln kwh 86.03
2/3/2015 European Monetary Union PMI Manufacturing Index (Level) Feb, 2015 Monthly 51
2/3/2015 UK CIPS/PMI Manufacturing Index (Level) Feb, 2015 Monthly 53
9/3/2015 Japan GDP (Quarter over Quarter) Q4, 2014 Quarterly Percent 0.6
9/3/2015 India Automobile sales data (y/y chg) Feb Monthly pct 1.66
9/3/2015 India OECD composite leading indicator for India Jan Monthly 99.4
RETAIL RESEARCH
Relationship among policy rates and benchmarks:
In its sixth bi-monthly Monetary Policy review, the Reserve Bank of India kept policy rates unchanged. However it announced a cut in SLR by 50 bps from 22 percent to 21.5 percent of their NDTL with effect from February 7, 2015. Deposit vs. Advance Growth (YoY)%
Non-food credit growth of banks slowed to 10.72% y-o-y in the fortnight ended February 6 to R63.38 lakh crore, RBI data show. The pick-up in the Non-food credit growth is largely due to working capital loan disbursals as project loan sanctions as well as disbursals are weak. Banks’ deposits grew at a faster pace of 11.77% y-o-y to R84.63 lakh crore in the fortnight ended February 6. While time deposits grew 11.79% y-o-y to R77.48 lakh crore.
Economy Updates
US Dollar Vs Indian Rupee
The US dollar deppreciated against the rupee by 0.75% for the week ended 27 February, 2015.
WPI Inflation (YoY)
The WPI inflation for January 2015 was placed at -0.39% YoY which is lower than the previous month reading of 0.11%. The decline in the inflation was attributable to a considerable fall in food and fuel sub-indices. The Primary Articles inflation reading for January 2015 was noted at 3.3% YoY while the Fuel inflation was printed at -10.7% YoY against -7.8% noted in December 2014.
RETAIL RESEARCH
Corporate Bonds Spread Vs Gilt Securities:
Corporate bond yields fell last week. The one year AAA credit spreads rose by 11 basis points while 10 year spread fell by 2 basis points.
Liquidity support from RBI (Bn. Rs)
The liquidity in the banking system improved last week compared to the previous week. The net infusion from the LAF window was a daily average of Rs. 16,742 crore for last week (Rs. 19,580 crore in previous week). The inter-bank call rates traded around 7.25% levels on Friday. The CBLO rates were positioned at 6.9% level.
Money Stock (M3) (YoY) (%)
Money supply (M3) rose by Rs.750 billion to Rs. 1,04,155 billion during the fortnight ended Feb 06, 2015. This was the fifth consecutive fortnight of an increase in money supply. On a y-o-y basis, growth in money supply accelerated to 11.4 per cent from 11.2 per cent a fortnight ago. Foreign Exchange Reserves (mn of USD)
India's foreign exchange reserves rose to $334.19 bn as of February 20, compared with $333.17 bn a week earlier.
RETAIL RESEARCH
Certificates of Deposit (%):
CD rates are trending marginally lower in the recent periods. The CD rates hovered around 8.7% levels (as per the latest data) (one year CD).
Commercial Paper (%):
Rates of Commercial papers are seen trading lower in the recent periods. The CP rates are hovering around 9.05% levels (one year maturity CP).
MF’s net investment in Debt (Rs Crs):
In December, MF have bought worth Rs. 54,654 crore while in January, the MF have bought debt worth Rs. 33,124 crore. In Feb, they have bought debt worth Rs. 52,342 crore. FII’s net investment in Debt (Rs Crs):
In December, FII have bought worth Rs. 11,156 crore while in January, they have bought debt worth Rs. 23,068 crore. So far in Feb, they have bought debt worth Rs. 10,726 crore. Analyst: Dhuraivel Gunasekaran ([email protected])
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