ICICI November 15 Issue newcontent.icicidirect.com/MoneyManagerMagazine/November_2015.pdf ·...

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Anup BagchiMD & CEO

ICICI Securities Ltd.

Employee benefit strategies and social security systems differ from one country to other. Although each country is distinct, some of the common benefits across the globe include medical and retirement benefits. Over the years , there has been a fundamental shi f t in how employers deliver benefits, thanks to increasing costs and liabilities. More and more employers and governments today are heavily shifting towards def ined contr ibut ion (DC) retirement plans, with a small and still declining proportion of participants in defined benefit (DB) plans. A DB plan is one which guarantees a certain payout at retirement, while benefits in DC plan depend on amount of money contributed during the employment and the performance of the underlying investment options.

According to a Towers Watson report, by year-end 2013, only 24% of Fortune 500 companies offered any type of DB plan to new hires, down from 60% for the same selection of employers back in 1998. So far in 2014, seven additional employers no longer offer DB plans to new hires, it added.

The greater shift from DB to DC plans suggests that the primary responsibility to build sufficient corpus for retirement and other goals lies with the employees. Though employers provide certain benefits - mandatory as well as voluntary - the task to build strong financial future lies on our shoulders.

1ICICIdirect Money Manager November 2015

India does have a retirement income system comprises of a defined-contribution Employee Provident Fund (EPF), an earnings-related Employee Pension Scheme (EPS) and voluntary employer-managed funds such as superannuation. The National Pension System (NPS) is gradually gaining popularity. Other common benefits include group life cover, medical cover, employee stock option plans, etc. It is important to thoroughly understand these available benefits, make the most of it, identify the gaps if any, and fill it up for better management of finances.

For example, EPF is a good tool for retirement planning. However, one should not rely on it alone. Considering the rising inflation, especially medical inflation, the corpus generated through debt-oriented EPF may not always be sufficient to meet post-retirement needs. It is important to have a balanced mix of growth as well income-producing investments. Likewise, one should not rely only on employer-provided life and medical cover. One should take an additional, separate cover to ensure protection through various life stages.

This edition takes you through various employee benefits available and how to make the adequate use of these. No matter how strong your benefits may be, do not just rely on these alone. Do take into account these benefits into your overall financial planning and work towards how much more you need to start saving and investing now.

It is never too late to start planning and investing for your financial goals. We encourage you to take the first step towards your journey of financial freedom.

Our message remains the same - 'Keep investing and stay invested for your life goals.' Through this magazine and our website www.icicidirect.com we want to make an earnest attempt to partner with you in setting and achieving your financial goals. Give us an opportunity to serve you, walk into any of your Neighbourhood Financial Superstore and talk to us.

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Employee benefits form an integral part of the total

compensation package for salaried individuals. In fact,

employees in India give top priority to salary and employee

benefits over career progression, according to a Randstad

(global human resources company) Survey. It is essential to

understand these benefits and make the adequate use of it. Most

common benefits offered in India are EPF, VPF, gratuity, medical

insurance, life cover, ESOPs, leave encashment, among others. In

our cover story of this edition, we take your through these

benefits in detail and explain how to make the most of it. Go on

and read about these benefits as you try to integrate these into

your overall financial planning and reach your goals.

The edition also covers interviews with Sunil Singhania of

Reliance Mutual Fund and Soumendra Nath Lahiri of L&T Mutual

Fund to help you give an overview of current and expected

market trends, along with advice on how to build a successful,

long-term investment portfolio.

With the tax-saving season in, we would like to highlight ELSS

funds (tax-saving mutual funds), which are good option for

saving taxes as well as creating wealth in the long run. Read on

more about these funds in our Mutual Funds Analysis section.

I would also like to draw your attention to our recently revamped

sections - Asset Class Insights and Prime Numbers - with

inclusion of more data points and indicators - to let you have a

comprehensive overview. So read on, stay updated and

involved. Do write in with your feedback and share your thoughts

at [email protected].

Editor & Publisher : Abhishake Mathur, CFA

Coordinating Editor : Yogita Khatri

Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey

CMEditorial Team : Nithyakumar VP CFP , Sachin Jain, Sheetal Ashar

ICICIdirect Money Manager November 2015

Your magazine is now also available on www.magzter.com, a digital newsstand.


MD Desk....................................................................................................1

Editorial.....................................................................................................2

Contents....................................................................................................3

News........................................................................................................4

Asset Class InsightsA monthly review and outlook on major asset classes – equity, debt/fixed-income and gold.....................................................................................................5

Stock Ideas: Alembic Pharma and HUL.......................................................10

Flavour of the Month: Are you making the most of your employee benefits?EPF, VPF, gratuity, medical insurance, life cover, ESOPs, etc. are some of the common employee benefits offered in India. Do you know how to get the most out of these? Here's a handy guide. Read on............18

Tête-à-tête: 'India to be a $4 trillion economy in 6-7 years’An interview with Sunil Singhania, Chief Investment Officer (CIO) -Equity Investments, Reliance Mutual Fund…......................................26

‘Infrastructure space looks attractive’An interview with Soumendra Nath Lahiri, Chief Investment Officer (CIO), L&T Mutual Fund.........................................................................32

Ask Our Planner: How to save tax through LTA claimYour personal finance queries answered….........................................37

Mutual Funds Analysis: Investing in ELSS fundsWith the tax-saving season in, we would like to highlight ELSS funds (tax-saving mutual funds), which are good option for saving taxes as well as creating wealth in the long run…............................................40

Mutual Fund Top Picks..............................................................................50

Equity Model PortfolioWe have recently aligned our portfolio to capture the new opportunities available in the market…...............................................51

Quiz Time.................................................................................................56

Prime NumbersA revamped section of monthly trends, with inclusion of more data points and indicators............................................................................57

Premium Education Programmes Schedule................................................. 61

4ICICIdirect Money Manager

7th Pay Commission: 225-fold increase in minimum pay in last 56 years

The minimum pay for Central government employees has risen 225 times since 1959, when the second pay commission submitted its report. The second pay commission, which was the first such exercise in Independent India, fixed a minimum pay of Rs.80 (Rs.70 basic pay plus Rs.10 dearness allowance or DA) for Central government employees. The seventh pay commission report recommended a minimum pay of Rs.18,000 per month, making it a 225 times growth from Rs.80. The first pay commission report came in 1947 before Independence and was implemented retrospectively from 1946. As per the recommendation of the first pay commission, the minimum wage was then Rs.55 (Rs.30 basic pay plus Rs.25 DA).

Courtesy: Livemint

Consistent investments by Indian households in equities through systematic investment plans (SIPs) have resulted in domestic mutual funds pumping more money into the markets than foreign portfolio investors (FPIs) since the NDA government came to power in 2014. According to data provided by the Association of Mutual Funds of India ( AMFI), Indian households have invested on average nearly a billion dollar (or Rs 6,638 crore) every month in domestic mutual funds since May 2014. As opposed to this, FPIs have invested nearly $787 million every month since May 2014. This has enhanced the total inflow of domestic mutual funds in comparison to FPIs. In total, Indian households have invested close to $20.5 billion as compared to $14.9 billion by FPIs.

Courtesy: The Economic Times

Local fund flows in equities through systematic investment planspumping more money than FPIs

To enable Indians living abroad to access old age income security, the Reserve Bank of India has allowed non-resident Indians (NRIs) to subscribe to the National Pension System (NPS). NRIs may subscribe to the NPS governed and administered by the Pension Fund Regulatory and Development Authority (PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest according to the provisions of the PFRDA Act, it said.

Courtesy: Business Standard

National Pension System opened up for NRIs

November 2015

Gold monetisation norms relaxed as only 400 gm gold depositedIn the fortnight since the gold monetisation scheme was launched, only 400 gm gold has been deposited and with only one bank, as no other bank had tripartite agreements with hallmarking centres and gold refiners. Now, the finance ministry and the Bureau of Indian Standards (BIS) are simplifying the administration of the scheme to get it moving. In contrast, the response to gold bonds and coins has been much better. A government source said retail investors had applied for Rs 100 crore worth of bonds and 6,000 gold coins had been sold. The gold monetisation scheme, bonds and coins were launched on November 5 by Prime Minister Narendra Modi, to reduce bullion imports and mobilise 22,000 tonnes of idle gold in the country.

Courtesy: Business Standard


Equity: Consolidation to continueIndian equity markets have

been volatile and trading in a

broader range in the last 15

months with selling pressure

witnessing at the higher level

while buying emerging at

every lower level. Markets are

likely to consolidate in the near

term on the back of lack of

fresh triggers. Volatile global

markets may dictate the trend.

Indian markets recovered

smartly from the lows since the

lows of around 26,000 on the

Sensex levels at the start of the

month of October to 27,500

levels before correcting at the

end of October and start of

November.

The comments of U.S. Federal

reserve chairman indicating

rate hike in the month of

December and weak results of

m a n y o f t h e i n d e x

heavyweight companies

weigh on market sentiments.

Corporate earnings growth has

failed to pick up structurally so

far and consequently we have

revised down our earnings

growth for Sensex companies

for FY15-16 from 18% to 13%.

However, we continue to

expect improved growth of

around 19% in FY16-17.

Government has initiated a

number of structural policy

reforms like power reforms,

r o a d s e c t o r r e f o r m s ,

implementation of DBT (direct

benefit transfer) in centrally

funded welfare schemes,

increasing FDI (foreign direct

investment) in many sectors,

thrust on manufacturing in

sectors like defence, focus on

ease of doing business,

taxation reforms etc. Overall,

the markets may continue to

trade in a broad range as slow

improvement in earnings

growth and fear of U.S Fed rate

hike may put pressure while

government's reform and

policy action may keep the

sentiments upbeat.

Structurally, the outlook for the

ASSET CLASS INSIGHTS

Asset Class Insights: Equity, Fixed-income and Gold

Monthly review of the major asset classes - equity, fixed-incomeand gold -- and a snapshot of our outlook.



Indian equity markets remain

better placed on the back of a

s t e e p c o r r e c t i o n i n

commodities, especially crude

oil & industrial metals, 125

basis points (bps) repo rate cut

& subsequent transmission of

the same to the corporate

balance sheets and relatively

stable exchange rates.

Any intermediate throwbacks

from here on should be utilised

to buy in a staggered manner

f r o m a m e d i u m - t e r m

perspective to ride the larger

uptrend.

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Sensex: Volatility remained high…

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Net FII Investment

…on the back of volatile FPI flows

Global economy and markets: Global equity markets clawed their way back to near record highs in October, after several central banks around the world sought to stem rising concerns over the health of the global economy by unveiling or

hinting at, more supportive monetary policy.

The US equity market regained much of the ground lost during the summer with the S&P 500 index returning 8.5% in October. A combination of decreasing concern over



China, and bet ter- than-expected US corpora te earnings results, boosted investor sentiment.

European equity markets registered the largest monthly gain this year. Resilient macro-economic data and optimism that the region's central bank will do is what needed to support the economy, boosted investor sentiment.

Monetary policy announce ments from China helped stabilise investor sentiment, including more proactive fiscal spending and measures in support of growth, as well as the People's Bank of China decision to cut interest rates and reserve requirements for leading bank.

One of the major events likely to impact global market is the rate hike by U.S. Federal reserve. With expectations for the rate hike in December 2015 rising, global equity markets may turn volatile in the near term.

The yield on government securities (G-Secs) were under pressure on the back of weak

Fixed income: U.S. Fed rate hike concern looms

global cues as strong jobs data and comments from U.S. Fed o f f i c i a l s i n c r e a s e d t h e probability of rate hike in the month of December 2015. Comment from the Reserve Bank of India (RBI) Governor that they are comfortable with current level of rates for the near term, indicating status quo for the next few months a l s o i m p a c t e d m a r k e t sentiment.

Indian benchmark 10 year G-Sec yield again rose back to 7.72% from 7.55%, levels before the latest rate cut of 50 basis points (bps) by the RBI. During the month of October, the benchmark U.S. 10 year G Sec yield moved up from by 36 bps from below 2% to 2.34% currently.

Foreign portfolio investors have been on the sidelines in the last one month. They have actually been net sellers to the tune of around USD 500 million in the last two weeks.

A U.S. Fed rate hike may induce some volatility across global markets. However, India's i m p r o v i n g m a c r o f u n d amentals will prevent any sharp selloff. We believe that



Indian bond market has been under pressure, especially Gon global cues

-Sec yield,

7.50

7.75

8.00

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Apr-15

May-

15

Jun-

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Yie

ld(%

)

Spread between 10 year G-Sec yield and Repo rate has increased,indicating its attractiveness

-2.5

-1.5

-0.5

0.5

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2.5

3.5

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-00

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10 Year G-Sec Yield - Repo rate

Source: Bloomberg

Source: Bloomberg

the current tightening in yield is temporary in nature and once the US Fed event is over, the domestic fundamentals will push the yields across the curve lower.

Investors may consider both duration funds as well as accrual funds depending on their risk return profile.

Gold: Range bound movement to continueGlobal gold prices in the month of October remained volatile with prices advanced in the first half of the month post the weak US jobs data. However, a subsequent strengthening of the Dollar and hawkish tone of the October FOMC (Federal Open Market Committee)

policy meet and comments by U.S. Fed members fuelling expectations of rate hike in December 2015 l ed to significant pressure on the precious metal.

The investment demand as reflected by holdings in SPDR Gold Trust (largest Gold ETF) has slipped significantly over the last few months indicating



lack of investor demand.

One of the major determinants for global gold prices is benchmark real interest rates. With increasing probability of rise in interest rates in the month of December 2015, the opportunity cost of holding gold will increase while the same is likely to put pressure on gold prices from a medium-term perspective.

Investment demand for gold is also governed by the broader economic climate. One of the major determinants of the i n v e s t m e n t d e m a n d i s

inflationary concerns. With a low global economic growth env i ronment add ing to d e f l a t i o n a r y p r e s s u r e , inflationary demand factor for gold remains absent in the near term.

Technically, after the multiyear bull phase during 2004-12, g o l d p r i c e s c o r r e c t e d significantly. The violation of the long term trend line highlights the breach of a d e c a d e l o n g t r e n d o f outperformance. This breach of long term up trend support, signals a period of medium-term consolidation.

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Price (|/10 grams)

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Price ($/Ounce)

Gold prices corrected sharply on increased expectationsof rate hike in December 2015

Indian prices followed global prices but to a lesser extent

Source for all the above charts: Bloomberg

Source for all the above charts: Bloomberg

10

STOCK IDEAS

ICICIdirect Money Manager November 2015

Alembic Pharma: Re-writing script with a twist

Company BackgroundTracing its roots way back to 1907, Alembic Pharmac- eut ica ls Ltd. (APL) has remained an active player in the domestic formulations space with few legacy brands like Azithral, Althrocin and Wikoryl in the anti-infective and cough & cold segments. In 2011, APL was de-merged from Alembic Ltd to give more thrust to formulations and insulate this business from the vagaries of commoditised active pharmaceutical ingredi- ents (APIs). Formulations account for 82% of the business while the rest comes from APIs. As of FY15, the domestic: exports formulation r a t i o s t o o d a t 6 5 : 3 5 . Conso l ida ted revenues , EBITDA and PAT have grown at a CAGR of 14%, 30% and 37%, respectively, in FY11-15.

D o m e s t i c f o r m u l a t i o n s constitute 53% of revenues (FY15). In the domestic market, APL derives ~89% of revenues from branded formulations while the rest come from g e n e r i c s a n d a n i m a l healthcare businesses. The domestic branded formulation segment has been further

segregated into two sub-segments - 1) acute and 2) s p e c i a l i t y ( c a r d i o l o g y, diabetology, gynaecology, GI (Gastro Intestinal), orthopaedic and dermatology). While the acute portfolio includes some o f t h e l e g a c y b r a n d s developed and owned by the company, the spec ia l ty portfolio was acquired from Dabur Pharma in 2007.

US key growth driver for generic exportsAPL's generic export revenues grew at ~31% CAGR in FY11-15 mainly on the back of strong growth in the US (71% of export generic sales) on account of consistent product launches including limited competition products. With planned investments in front-end initiatives and eight to ten launches every year in the US, we expect US sales to register a CAGR of 53% in FY15-18E to Rs. 1,325 crore. The company's current ANDA (Abbreviated New Drug Application) filings are at 68 including 30 pending approvals of which ~50% are Para IV and shared exclusivity filings.

Investment Rationale


STOCK IDEAS

Domestic sales growth riding on robust speciality segment growthAPL's domestic formulation sales grew at ~12% CAGR in FY11-15 mainly due to ~22% growth in the speciality s e g m e n t . S p e c i a l t y contribution in the domestic branded space has increased to 56% from 42% in FY11. We expect the speciality segment to grow at 24% CAGR in FY15-18E to 1,040 crore on the back of aggressive product l a u n c h e s a n d c o n s t a n t addition of new speciality segments & sub-segments. Overall, we expect domestic formulations to grow at 16% CAGR in FY15-18E to 1,723 crore.

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After hive-off, its time tested Indian pharma growth story

Brand pedigree in Indian branded formulations and the US foray with few select launches together with a light balance sheet and healthy return ratios are some typical attributes of a well-established Indian pharma company. APL is no exception to this case. With domestic formulation growth of around 16% and USFDA approva ls fo r th coming, the company is well poised to maintain the growth tempo for years to come. The management identified this potential five years back and hived off these businesses well in time. We have ascribed a target price of 790 based on 22x FY18E EPS of 36 with a BUY recommendation.

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Key Financials

Valuations Summary

Revenues( crore) 2,056.2 3,211.5 3,148.3 3,739.2

EBITDA ( crore) 405.5 995.7 712.4 883.5

Net profit ( crore) 285.2 751.8 535.3 675.5

EPS ( ) 15.1 39.9 28.4 35.8

FY15 FY16E FY17E FY18E

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PE (x) 43.9 16.6 23.4 18.5

Target PE (x) 52.2 19.8 27.8 22

EV to EBITDA (x) 32.1 13 18.2 14.6

ROIC (%) 33.8 64.6 33.9 34.3

RoNW (%) 32.2 53 29.8 29.6

RoCE (%) 30.8 55.9 32.6 33.4


STOCK IDEAS


Key Risks and Concerns

Increased USFDA scrutiny

The fallout from the impending patent cliff is the increased intensity of the USFDA scrutiny. As increasing number of drugs were coming out of patent protection, the inspection intensity for hitherto unknown players was bound to increase to comply with required quality standards. Even the pattern of inspection has changed with more surprises and greater focus on data integrity besides quality. With maximum number of USFDA approved plants outside the US, Indian players received maximum number of import alerts and warning letters. Even established players had to contend with the USFDA embargo besides scores of other Indian companies.

The company has just a single USFDA approved formulation plant. Hence,

any adverse outcome from the USFDA could impact APL's US business prospects. Secondly, ~70% of its formulation sales are backward integrated. Thus, any adverse observation on its API facilities may also have negative implications.

Extension of NLEM product list may impact domestic branded formulations

Around 25-30% of APL's domestic branded formulations are under the NLEM (National List of Essential Medicines (NLEM) list. Although most of these products are from the acute segment, recent instances show that specialty segment products have also been included in the extended NLEM list. Also, on account of introduction of uniform pricing from April 2015 the company had to initiate a price cut in its flagship Althrocin brand to the tune of 20%. Note that domestic branded formulations remain the most profitable segment for APL.

(EBITDA: Earnings before interest, taxes, depreciation, and amortization; PAT: Profit after tax; CAGR: Compounded annual growth rate; EPS: Earnings per share; P/E: Price-to-earnings; EV: Enterprise value; ROIC: Return on invested capital; RoNW: Return on net worth; RoCE: Return on capital employed; FII: Foreign institutional investors; DII: Domestic institutional investors)

Stock Data

Market capitalisation ( crore) 12,780

Debt (FY15) ( crore) 263

Cash & cash equivalents (FY15) ( crore) 27

Enterprise value (EV) ( crore) 13,017

52-week High/ Low ( ) 791/381

Equity capital ( crore) 38

Face value ( ) 2

FII holding (%) 6.6

DII holding (%) 5.6

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STOCK IDEAS

HUL: Premiumisation, margin expansion bodes well

Company BackgroundHindustan Unilever Ltd. (HUL)

is the brands behemoth of the

Indian FMCG (fast-moving

consumer goods) industry.

Over the years, HUL has built a

leadership position in the

soaps, detergents, personal

products and coffee segment

along with a vast basket of

brands that have high levels of

recall in minds of consumers

and span across 20 different

categories. Being the country's

largest FMCG player, HUL's

revenue growth has been

supported by the changing

demographic profile of Indian

consumers, increasing per

cap i ta income & r is ing

affluence of consumers.

The most popular brands of

the company are Lifebuoy and

Lux in soaps, Surf Excel, Vim

and Wheel in detergents,

Lakme, Dove, Ponds, Fair &

Lovely and Vaseline in Personal

Products, Brooke Bond,

Lipton, Taj Mahal and Bru in

beverages and Kissan and

Knorr in foods. Of these, Surf,

HUL's largest brand (~ 2,600 `

crore in FY15), Brooke Bond,

Fair & Lovely, Lifebuoy, Wheel &

Rin are 2,000+ crore brands.

Soaps & detergents (S&D)

comprises the largest revenue

segment for HUL contributing

~48% to revenues (Fy15).

HUL's strong brands in soaps

(Lifebuoy, Lux, Liril & Rexona) &

detergents (Wheel, Surf Excel,

Rin, Vim) have aided the

company's dominant position

in both segments (~40% of

value share in detergents &

~45% value share in soaps)

over the years despite the

constant tough competition

from the global player, Procter

& Gamble (P&G). We expect

S&D revenues to grow at a

CAGR (compounded annual

growth rate) of 10.5% in FY15-

18E. With higher contribution

of prices in the sales mix, we

believe margins from the

segment would also improve,

t h e r e b y i n c r e a s i n g t h e

segment's contribution to

overall EBIT (earnings before

interest and tax) from ~40% in

Fy15.

Personal products, the highest

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STOCK IDEAS

contributor to HUL's PBIT

(profit before interest and tax)

(~47% in FY15) over the years

comes in second in terms of

contribution to topline. We

believe that with HUL's strong

brand portfolio across the

value pyramid (Premium -

Pond's, Axe, Dove, TRE

Semme, Close Up; Popular -

Vaseline, Sunsilk, Pepsodent;

Mass – Fair & Lovely, Clinic

Plus) and presence across all

categories of personal care

(hair care, oral care, skin care,

men's grooming, cosmetics &

services), the company will be

the key beneficiary from a

rev iva l in d iscret ionary

d e m a n d a n d b o o m i n g

personal products demand in

the economy going forward.

Portfolio that straddles across the

pyramidWith numerous b rands

present across categories,

H U L h a s g a r n e r e d t h e

complete value pyramid in

each category by having

products across each price

point. It has efficiently used the

brand extension strategy to

reach out to consumers across

Investment Rationale

the pyramid by launching a

brand in a particular category

initially and further extending

the established brand equity to

other segments (men's range)

and a position in the value

chain ( f rom popular to

premium). The company also

extended its Surf brand

(initially a popular segment

brand) to the premium

category through Surf Excel

and Surf Excel Liquid. Having

done this, it slowly phased out

Surf and now markets Rin in

the popular segment. Hence,

the company has efficiently

introduced and re-shuffled its

portfolio periodically to garner

the upcoming demand (Surf

for washing machines, Pond's

Age Miracle targeting the older

w o r k i n g w o m e n ) a n d

simultaneously addressing all

segments of the society. We

believe this gives HUL an edge

over competitors in times of up

trading and down trading by

consumers.

Changing product mix:

Premiumisation and expanding in

potential segmentsHUL is extending its presence

in the premium segment


STOCK IDEAS

across all categories, tapping

the demand arising out of the

changing demographics of the

Indian consumer. Along with

inclusion of premium products

in the portfolio it is also

extending its offerings to

higher growth segments by

building on its existing brand

equity in the respective

segment. HUL's portfolio of

premium products is relatively

l a rge r than any o f i t s

competi tors. Hence, we

be l ieve tha t increas ing

premiumisation across FMCG

categories would considerably

benefit this brand-master.

EBITDA margin improvement to

18.7% by FY18EHUL has maintained its raw

material (RM) cost to sales ratio

at ~53% over the years (CY07-

F Y 1 5 ) . I n s p i t e o f a n

unprecedented increase in RM

costs in FY12 (~54%), the

company's strong brand equity

across categories helped it to

pass on the impact through

h i g h e r p r i c e s w h i l e

maintaining margins and

volume growth. Going ahead,

with HUL shifting its focus

towards higher growth and

premium product categories

that would drive higher

realisation, we expect raw

material cost as a percentage

of sales to moderate to 49.1%

by FY18E on the back of global

decline in commodity prices as

well as HUL's internal cost

efficiencies and aid margins to

18.7% by FY18E. We believe

the savings in raw material

costs would be directed

towards higher marketing

spends to fight competition

and aid new launches.

Earnings growth justifies premium

valuationWith strong brands in the

g r o w i n g a s p i r a t i o n a l

segments, HUL, aided by an

improvement in margins (18%

in FY16E, 18.5% in FY17E &

18.7% in FY18E) on the back of

s t r u c t u r a l d e c l i n e i n

commodity prices, is strongly

placed to capture a revival in

consumer demand, going

forward. We estimate sales

growth & profitability growth of

10 .7% & 12 .1% CAGR,

respectively, in FY15-18E. We

value the stock at 36x its FY18E

EPS of 28.1 and arrive at a

target price of 1,017/share

with a BUY recommendation.

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STOCK IDEAS

Key Financials

Valuations Summary

Stock Data

Net sales ( crore) 30,171 32,606 36,790 40,945

EBITDA ( crore) 5,208 5,984 6,933 7,817

Net profit ( crore) 4,315 4,509 5,375 6,073

EPS ( ) 19.9 20.8 24.8 28.1

Adjusted EPS ( ) 15.8 18.2 21.6 24.7


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P/E (x) 40.5 38.8 32.5 28.8

Target P/E (x) 51 48.8 40.9 36.2

Dividend yield (%) 1.9 2 2.5 3

Mcap/Sales (x) 5.8 5.4 4.8 4.3

RoNW (%) 91.8 93.5 103.3 117.1

RoCE (%) 101.4 126.9 137.1 154


Market capitalization ( crore) 1,74,897.3

Total debt (FY15) ( crore) 0

Cash and investments (FY15) ( crore) 5,161.4

Enterprise value (EV) ( crore) 1,69,736

52-week High/ Low ( ) 981 / 717

Equity capital ( crore) 216.4

Face value ( ) 1

FII holding (%) 13.9

DII holding (%) 4.8

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STOCK IDEAS

Key Risks and Concerns

Slowdown in consumer demandWe believe that temporary weakness in rural demand on the back of deficient monsoon may prove to be an overhang on the company as it derives ~35-40% of its sales from rural India. Further, s lower recovery in urban discretionary consumption may also impact the company. These factors are linked to the overall macroeconomic scenario. Hence, a prolonged subdued economic environment may impact the company's business.

Increasing competition may threaten marginsHUL has already been facing tough competition from P&G in the detergents space that has led to the recent price cuts in the process of passing on the benefits of softer commodity costs. Also, the company would have to keep its advertisement expenses higher in order to maintain its brand equity. However, we believe that, going ahead, the intensifying competition could impact the margins of the company if it indulges into price wars with its rivals.

(EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS: Earnings per share; P/E: Price-to-earnings; EV: Enterprise value; Mcap/Sales: Market capitalisation/sales; RoNW: Return on net worth; RoCE: Return on capital employed; FII: Foreign institutional investors; DII: Domestic institutional investors)


FLAVOUR OF THE MONTH

Are you making the most of your employee benefits?

November 2015

Most employers offer a host of benefits - mandatory as well as voluntary - in order to retain, motivate, and attract employees. In fact, more than half the companies in India, surveyed by Towers Watson, ranked improving attraction and retention of talent as the major focus of their benefit strategies, in the company's 2015 Asia Pacific Benefit Trends survey. More than 3 in 10 employers spend over 20% of payroll on benefits, the survey added. Often, the combined value of these benefits forms a significant portion of your total pay and can be quite valuable. Hence, it is important to understand the ins and outs of these benefits to take the full advantage. Whether you have just started a new job or have been working with the same company for years, you should make sure you are making the most of your employee benefits. Here's a handy guide. Read on.

Employee benefits that are commonly offered in India can be categorized in two parts:

such as employees' provident fund (EPF), gratuity and

such as superannuation, medical cover, life cover, ESOPs, NPS, etc. Let's take a detailed look at each of these.

EPF is a statutory, interest-g u a r a n t e e d , d e f i n e d contribution retirement plan, available to al l salaried individuals. The employee and the employer each contribute 12% of the basic salary. Employees can contribute over and above the 12%; h o w e v e r , e m p l o y e r ' s

Mandatory / Statutory Benefits

Voluntary Benefits

Employees' Provident Fund (EPF):

contribution is fixed at 12%.

F r o m t h e e m p l o y e r ' s contribution of 12%, 8.33% is diverted to the EPS (Employee Pension Scheme) and the balance 3.67% goes into an EPF account. It is important to note that if your basic salary is above 15,000 a month (the limit was 6,500 before Sept. 1 2014), your employer can contribute only 8.33% of 15,000 (i.e. 1,250) to your EPS and the balance to your EPF account. Employers also contribute an additional 0.5% of the basic pay (capped at a maximum of 15,000) towards assurance benefit under Employees' Deposit Linked Insurance (EDLI) scheme.

The EPF, being an important

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November 2015

component of your salary, helps in building up a sufficient corpus for retirement. A fixed rate of interest and tax-free status (EEE regime) makes EPF an attractive proposition. The EPF contributions, if left to grow for long term, can help r e a p g o o d a m o u n t a t retirement. For instance, a 25-year old salaried employee with a basic salary of 15,000, if contributes 12%, along with a matching contribution from his employer, can accumulate 3.11 crore at the age of 60.

This is at an average 8.50% interest rate and at 10% incremental contribution every year (in line with the average

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salary hike). The EPF, if utilized properly, can come in handy to fulfill some of your post-retirement needs, if not all.

A few employees treat EPF as an additional surplus to fulfill certain discretionary needs. H o w e v e r , p r e - m a t u r e withdrawals from EPF should be avoided until in case of an urgent situation. EPF does allow partial withdrawals subject to few conditions and situations, which could be a better option than opting for costlier loans such as personal loan.

EPF: Partial withdrawalsPurpose Eligibility Maximum withdrawable

amount

For the marriage of:

Self, son, daughter, brother and

sister

For the education of :

Self, son and daughter

Should comple te at least 7 years of

service. 3 times in the entire service.

50% of employee share at the

time of tendering the

application.

For the medical treatment of :

Self & family (spouse, son,

daughter, dependent father and

mother)

No minimum service required.

6 times of basic salary +

dearness allowance (DA), Or

full of employee share

(whichever is less).

For the construction/ purchase of

dwelling unit (house/ flat)

Should complete 5 years of service.

Only once in service.

36 times of basic salary + DA.

Repayment of housing loan

Should complete 10 years of service .

Only once in service.

36 times of basic salary + DA.

For the purchase of site/ plotShould complete 5 years of service.

Only once in service.24 times of basic salary + DA.

Addition/alteration of houseShould complete 5 years after

construction. Only once in service.12 times of basic salary + DA.

Repair of houseShould complete 10 years after

construction. Only once in service.12 times of basic salary + DA.



November 2015

Some employees also tend to

withdraw money from EPF

when changing jobs and spend

it away on discretionary items.

It would be prudent to transfer

the balance to a new account

to ensure suitable capital

appreciation for the corpus.

Multiple accounts can now be

managed smoothly through a

single portal by getting a

Unique Account Number

(UAN).

To put it in a nutshell, EPF is a

good investment tool for

retirement planning. However,

one should not rely on the EPF

alone. That is because EPF

being a debt instrument does

not offer growth benefits

p r o v i d e d b y e q u i t y

instruments and its returns

may not beat inflation in the

long run. Ideally, a good

retirement plan should have a

mix of growth as well as

income-producing assets.

As

per the laws, the mandatory

contribution for EPF is fixed up

to 12% on basic salary of

15,000 p.m. If you, as an

employee, want to contribute

Voluntary Provident Fund (VPF):

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over and above the 12%, you

can do so through voluntarily

p r o v i d e n t f u n d ( V P F ) .

Contributions to VPF can go up

to 100% of the basic salary.

Subscribing to VPF can help

bring in more discipline, as

voluntary contributions get

deducted directly from the

salary and become like a

mandatory savings, which in

turn help build a higher corpus.

Say for example, if a 35-year

old employee, who has an EPF

balance of 8 lakh, basic salary

of 30,000 p.m., retires in the

next 20 years, he would be

accumulating 1.08 crore in

his EPF account at the time of

retirement, assuming an

average interest of 8.50% p.a.

However, if he had started

contributing an additional 12%

of his basic salary into VPF for

t h e s e 2 0 y e a r s , a t a n

incremental contribution of 8%

p.a., his EPF accumulation

could have grown by 40% or

an additional 41 lakh i.e. to

1.49 crore.

It is a defined benefit

plan, offered by employers to

employees upon retirement or

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Gratuity:



November 2015

completion of five years of

continuous service (5-year

tenure is not applicable in the

case of death or disablement).

Gratuity, unlike provident fund,

is fully contributed by the

e m p l o y e r w i t h o u t a n y

c o n t r i b u t i o n f r o m t h e

employee. The minimum

benefit is approximately two

weeks' last drawn salary for

each year of service with an

upper limit of 10 lakh.`

Gratuity payable = Last drawn bas ic sa lary × 15/26 × Completed years of employment

The ratio 15/26 represents 15 days out of the 26 working days in a month.

For example, if you have worked with some company for 5 years and had Rs. 25,000 as last drawn basic salary, the gratuity payable would be: 72,115 (i.e. 20,000 × 15/26 × 5).

Note, for gratuity calculation, a service period of more than 6 months in a year is treated as 1 completed year. E.g., if you have worked for 5 years and 7 months, you are eligible for 6 years' gratuity. However, if you

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have worked for 5 years and 5months, you are eligible only for 5 years' gratuity.

Gratuity benefit can be a sizable amount if the number of years served is higher. Even if the amount is small, you may include this in your pool of investments and make it grow.

This scheme is available with some of the employers and most of them provide it as an option for their employees to enroll. If opted for, employer contributes 15% of basic salary towards superannuation fund and there is no contribution from the employee. The contribution made by the employer is part of the CTC and hence, this portion becomes a mandatory saving, just like VPF, towards retirement.

Most employers provide medical insurance for the employees and their immediate family. Some employers extend the facility even to dependent parents; whereas some offer an option to add dependent parents but at an additional cost i.e. by deducting the premium from an employee's

Superannuation:

M e d i c a l i n s u r a n c e :



November 2015

salary. In such cases, it makes better sense to pay additional premium and cover your parents, if they do not have a separate medical cover. This is because separate medical cover may not be available to them if they have any existing disease / disorder.

Along with the basic medical insurance, some employers also provide top-up plans. Even if not provided for, you may cons ider tak ing i t separately from outside, in order to have a higher cover, specifically for your parents. Say for ins tance , your employer provides Rs. 4 lakh family floater medical cover for you, your spouse, your children and your parents. You may consider taking a top-up plan of 10 lakh for your parents, separately. It will help you recover the expenses incurred over and above 4 lakh (your base cover). Premium for top-up plans is generally much lower than buying the fresh, basic health cover.

There are also super top-up plans available, which may be a better proposition than top-up plans. Let's take a look. Top -

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up plans work on 'per claim' or 'per single hospitalization' basis. They are beneficial as long as the single claim amount is above the threshold limit (the base cover). For ins tance , in the above example, if there is a single claim of 10 lakh in a year, your base cover will pay 4 lakh and the remaining claim amount of Rs 6 lakh will be paid by the top up plan of 10 lakh. However, if there are two claims in a year, one for 4 lakh (Claim 1) and another for 3.5 lakh (claim 2), the base cover will pay the claim 1 amount ( 4 lakh) and t h e t o t a l c o v e r a g e i s exhausted, the claim 2 amount ( 3.5 lakh) will not get covered either by the base cover or by the top-up plan, as top-up plans pay the claim only if the bill amount is more than the threshold limit or base cover (in this example, 4 lakh).

To overcome this drawback, super top-up plans are made available. Super top-up plans consider the total of all the bills in a given year. They cover multiple hospitalizations and look at the aggregate claim. Suppose there are two claims in a year, one for 6 lakh (claim

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November 2015

1) and another for 7 lakh (claim 2). For claim 1, the base cover will pay 4 lakh and super top-up plan will pay the remaining amount 1 lakh. And the entire amount of claim 2 i.e. 7 lakh will be paid by super top up plan.

Another major benefit of employer-provided medical insurance is that maternity expenses are covered under it, which is generally not covered when you take a separate cover.

Many employers provide group term life insurance as part of your benefits package (usually 1-2x your salary). It is an important benefit because it provides financial protection to a family in case of an employee's untimely death. However, one should not rely only on employer-provided cover. It is important to go for an additional term cover to ensure your family is able to meet goals and repay liabilities if something were to happen to you.

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Life insurance:

Employee stock ownership plan (ESOP): An ESOP is a type of employee benefit plan which is

a i m e d a t e n c o u r a g i n g employees to acquire stocks or ownership in the company. ESOPs give employees the option to buy a certain number of shares of the company at a pre-decided price. Studies show that employees in an ESOP work harder and feel better about their work because they feel as if it's their company too.

The grant price (price on which the options are granted) is u s u a l l y d e t e r m i n e d b y averaging the stock's market price for a particular period. It could also be the average market price on the issue date. ESOPs have a vesting period during which they cannot be exercised. Exercising the options makes sense only if the market price of the stock is more than the grant price.

As ESOP benefits form a part of t h e e m p l o y e e ' s t o t a l compensation package, they are taxable as a perquisite. The perquisite value is computed as the excess of the fair-market value (FMV) of the share on the date of exercise over the exercise price. Additionally, in the event employee disposing of the shares, the difference



November 2015

b e t w e e n t h e s a l e consideration of the shares and the FMV on the date of exercise is chargeable to tax under the head 'capital gains' in the hands of the employee.

Let's understand with an example how an employee can gain from the ESOPs. On April 1 2010, suppose the company grants an employee 100 shares, at an exercise price of 100 a share, which is also the

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market price that day. Let's assume that the vesting period is two years. At any point after 1 April 2012, he can pay 100 a share and get the shares. If the market price on 1 August 2012 is 200, he can sell the shares and make a neat profit. However, if the market price is 50, he need not exercise the

option. He can instead wait for the stock price to rise.

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Taxation of ESOPs

Stage Date Value per share

Tax treatment Tax outgo

Grant of options (100 shares)

1 Apr ‘10

Rs.100

Nil

Nil

Vesting of options

1 Apr ‘12 Rs.150 Nil till exercised Nil

Exercise of

options

1 Aug ‘12

Rs.200

Tax on difference between fair market value on date of exercise and exercise price. As per tax bracket

(100 shares X(Rs.200 –

100))

X30% = Rs.3,000 (assuming 30% tax

bracket)

Sale of

options1 Dec ‘12 Rs.500

Tax on difference between sale price and fair market

value. 15% *STCG tax if sold within 1 year and nil tax if sold after 1 year

(100 shares X(Rs.500– 200)X15% = Rs.4,500

*STCG – Short-term capital gains

In short, ESOPs can be of great value in the long run, if managed properly. However, don't heavily rely on them, especially for your core goals such as retirement. Have a good mix of various stocks to avoid concentration risk and to have a well-balanced portfolio.

Corporate

(NPS):

National Pension

System The NPS -

corporate model is a voluntary

retirement savings scheme.

U n d e r t h i s m o d e l , t h e

government gives special tax



November 2015

deduction for contributions

towards NPS by employers on

behalf of employees. Both

employee and employer's

contributions are eligible for

tax deduction. While the

employee contribution up to

10% of basic + DA is eligible

for deduction under Section

80CCD, within the 1.50 lakh

limit of Section 80C; the

employer's contribution up to

10% of basic + DA is eligible

for deduction under Section

80CCE, over and above the Rs

1.50 lakh limit. For example, if

your basic salary is 3.60 lakh a

year ( 30,000 p.m.), you can

avail an additional deduction of

36,000 (i.e.10% of 3.60

lakh). Apart from this, an

additional deduction of upto

50,000 is also available under

the new Section 80CCD (1b),

wherein you can claim over

and above the 1.50 lakh

invested under Section 80C.

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Leave encashment :

Summing up

Some

employers also provide an

option to encash unused

leaves, the amount of which

can come in handy at the time

of retirement. You may plan

your leaves, accordingly.

A p a r t f r o m t h e a b o v e

discussed employee benefits,

there are several other benefits

offered by employers such as

e m p l o y e e d e v e l o p m e n t

p r o g r a m s , e d u c a t i o n

assistance programs, etc.

which you can sign up for to

develop and grow your career.

Employee benefits are an

essential part of any pay

package and it is important to

understand the full scope of it.

So set aside some time to read

t h r o u g h y o u r b e n e f i t s

thoroughly, be aware of any

shortfalls, and fill the gaps to

keep yourself in good financial

shape.

Please send your feedback to [email protected]


Tête-à-tête

'India to be a $4 trillion economy in 6-7 years'

India presents a strong wealth creation opportunity for investors and the economy can potentially double over the next 6-7 years to 4 trillion US$, says Sunil Singhania, Chief Investment Officer (CIO) - Equity Investments, Reliance Mutual Fund in an interview with ICICIdirect Money Manager magazine. India's current Market Capitalization to GDP ratio is about 75%. Assuming market capitalization to GDP rises in line with other large markets to 100%, there is an opportunity of multiplying the current wealth by 2.5 times. Hence, from long-term perspective, the current index levels offer an interesting opportunity to gain from the expected domestic revival, he adds. Excerpts:

Q:

A:

What do you make of the current market correction? Is there more pain in the offing?

Corrections are part and parcel of the markets. In fact, sharp corrections are often witnessed during structural

Sunil Singhania,Chief Investment Officer (CIO) -

Equity Investments,Reliance Mutual Fund

uptrends. However, on the positive side, Indian macros are turn ing favorable - declining oil prices, current and fiscal deficit trending lower, subsidy burden falling, inflation at multi-year lows and a f a l l i n g i n t e r e s t r a t e environment. On the reform and growth front, things can only improve from here.

Volatility is not a negative thing as it is generally perceived. Volatility does not mean risk for long-term investors but is disguised opportunity. We h a v e a n a l y z e d s h a r p corrections witnessed in equity markets over the last 15 years, which have proven to be the best time to increase equity exposure.


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3 year return after every major fall in sensex

Peak date Bottom date Sensex High Sensex low % fall from high 1 year return 3 year return

Feb-01 Apr-02 4,462 3,096 -31% 14% 93%

Feb-02 Apr-02 3,758 2,932 -22% 31% 163%

Jan-03 Apr-03 3,416 2,904 -15% 106% 317%

May-04 May-04 5,772 4,227 -27% 60% 245%

May-06 Jun-06 12,671 8,799 -31% 67% 77%

Jan-08 Mar-08 21,206 14,677 -31% 31% 33%

Oct-08 Oct-08 13,203 7,697 -42% 127% 133%

Jan-11 Dec-11 20,664 15,135 -27% 30% 90%

May-13 Aug-13 20,443 17,448 -15% 53% -

Mar-15 Aug-15 30,024 25,742 -14% - -

Source: Bloomberg. Past performance may or may not be sustained in future

Q:

A:

What are the key concerns related to markets one should be watchful about?

Some of the key near-term drivers which are being tracked currently are:

Bihar election results - The state government elections verdict can have a short-term impact on the market sentiment. However, the same is unlikely to have any significant bearing for long term investors.

Global volatility - However, we believe that we have seen the worst in the near term and all the major blocks US, Europe and China are now stabilizing.

Domestic growth - has been lower and deficient monsoon is leading to lower rural demand. However, we expect the government spending to increase further and revive the demand in the next few months.

Q:

Q:

A:

What are your-end targets for Sensex and Nifty?

We believe India presents a s t rong wea l th c rea t ion opportunity for investors and the economy can potentially double over the next 6-7 years to 4 trillion US$. India's current Market Capitalization to GDP ratio is about 75%. Assuming market capitalization to GDP rises in line with other large markets to 100%, there is an opportunity of multiplying the current wealth by 2.5 times. Hence , f rom long- te rm perspective, the current index levels offer an interesting opportunity to gain from the expected domestic revival.

In rising markets, more investors tend to invest, while in declining markets, they tend to sell. How s h o u l d i n v e s t o r s a v o i d overreacting to market cycles or volatility?

Investors, especially the


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retail investors, get swayed by marke t sen t iments and accordingly the inflows and outflows reflect the current market mood. However, we believe, domestic investors are maturing and despite the recent few months of higher volatility, we have witnessed steady equity inflows from individual investors. In fact, over the last few months, domestic investors have positive net equity flows while the foreign inst i tut ional investor (FII) flows have been negative on a net basis.

Clear investment goals and investing in right product mix based on one's risk appetite can go a long way in helping investors overcoming reacting to short term market cycles or vo la t i l i ty. A lso , regu lar disciplined investing can assist investors par t ic ipate in markets at different points of time and smoothen out the volatilities over the long run.

The Q2FY16 earnings season is on. What is your assessment so far and what is the road ahead?

Earnings growth has been muted but for a change there is a small beat in the overall

Q:

A:

numbers. While the sales growth has been disappointing margin expansion has been substantial.

India is emerging out of cyclical lows and earn ings a re expected to grow rapidly in the medium term. The two main drivers for corporate profit are demand pick-up and lower interest rates. Consumer demand always picks up with a lag. While we are now witnessing transmission of lower interest rates, consumer demand will come in later as a growth driver.

Can you briefly tell us about your stock selection process?

Our investment philosophy in equities is to attempt to create alpha and therefore, create significant wealth for our investors over a period of time, which is what we have managed to achieve in the past. We lay a strong emphasis o n i n t e r n a l r e s e a r c h , processes and having robust policies and framework to sustain our track record. In house, we conduct extensive research on nearly 250 companies, while we track another 250 companies

Q:

A:


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through research firms.

In addition, we passively track 2,800 companies globally across 20 geographies to spot early trends and gain useful perspect ives. Our stock selection process consists of extensive collection and analysis of publicly available data including past results, t rends in per formance , company visits and detailed internal assessment. We have created and use robust market and portfolio tracking tools that continuously monitors our holdings, performance vs. markets and sectors which helps us take corrective actions quickly.

Which sectors look attractive in the current scenario and which ones would you avoid?

We are positive on private sector banks , se lec t ive discretionary themes like auto, auto ancillary, equipment manufacturers and select companies within capital goods. We are also positive on cement and some large power companies. Most of these themes / sectors will benefit from economic growth, and would also get particular

Q:

A:

bene f i t f rom inc reased capacity utilization levels and lower interest rates. We are a l s o c o n s t r u c t i v e o n p h a r m a c e u t i c a l s a n d information technology (IT) s e c t o r s . F a s t - m o v i n g consumer goods (FMCG), utilities, upstream petroleum are a few sectors we do not have much exposure at present.

Post 50 basis points (bps) rate cut by the Reserve Bank of India (RBI), how should a long-term fixed-income investor optimize his returns?

The RBI has cut rates by 125 bps in CY15, including the 50 bps cut in the recent monetary policy in September. As long as the government adheres to fiscal discipline and inflation pressures stay anchored, we believe there will be space created for further rate cuts over the next 6-9 months. We expect 25-50 bps cut over the next 6-9 months horizon as growth conditions will receive more focus in a low and stable inflation scenario. Therefore, long term f ixed- income investors should find long duration products ideal.

Q:

A:


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Q:

A:

Q:

A :

What are the key fundamental principles of building a successful, long-term investment portfolio?

It's fairly simple. Investors have to keep investing into a fairly good set of mutual fund schemes, which have a decent established track record, without attempting to time the market. An emerging market like India, with improving fundamentals is bound to generate significant returns, and therefore wealth for investors. But the key to achieving that is being invested, and investing for the longer term.

What is your advice for investors at this point in terms of their overall portfolio and asset allocation?

I n d i a ' s h o u s e h o l d investments into equities is very low – estimated to be only at 2.7% of the total household wealth, whereas property is 58%, gold is 12.5% and bank deposits is 15%, despite the strong returns generated in equities: in the last 35 years, equity has returned 16%, while real estate return is about 13%, gold is 7.8% and deposits 8 .3%. Investors should

fundamentally increase their allocations towards equities. Mutual Funds may be the best proposition for investors to conveniently and effectively take exposure in equities.

Would you like to share anything else with our readers?

Yes. Regardless of the short term movements in the m ar k e t s , I wou ld u r ge investors to look at the Big Picture. India is currently the 9th largest economy in the world. Indian economy is likely to double in USD terms over the next 6-7 years to 4 trillion US$. This presents a huge opportunity of wealth creation in India in the next 6-7 years. India's current Market Cap to GDP ratio is about 75%. A s s u m i n g m a r k e t capitalization to GDP rises in line with other large markets to 100%, there is an opportunity of multiplying the current wealth by 2.5 times. India's favorable demographic profile and tremendous scope for productivity improvement augur well for a sustained e c o n o m i c g r o w t h , a n d therefore wealth creation.

Q:

A:

The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.


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Disclaimers:

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third-party sources, which are deemed to be reliable. It may be noted that since RCAM has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; RCAM does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RCAM's views or opinions,which in turn may have been formed on the basis of such data or information.

The Sponsor, the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable, to the extent possible.

This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision.

None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.

The Sponsor, the Investment Manager, the Trustee, any of their respective directors, employees including the fund managers, affiliates, representatives including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) / specific economic sectors mentioned herein, subject to compliance with the applicable laws and policies.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


Tête-à-tête

'Infrastructure space looks attractive'

By the end of second half, on a fundamental basis, the situation should be

better than where we are today and our expectation is that earnings

growth should start coming back into the system, says Soumendra Nath

Lahiri, Chief Investment Officer (CIO), L&T Mutual Fund in an interview

with ICICIdirect Money Manager magazine. “Of the sectors which should

show growth over the 3-5 years, infrastructure space is surely showing

signs of some revival. Within infrastructure roads, rail, defense, power

transmission and may be logistics are some of the areas where we are

seeing some improvement,” he adds. Excerpts:

Q: What do you make of the current

market scenario? Is there more

pain in the offing?

In the last six months of the

current fiscal year, earnings

growth has remained very

lackluster, and without any

improvements and the first half

Soumendra Nath Lahiri,

Chief Investment Officer (CIO),

L&T Mutual Fund

has seen more downgrades

than upgrades. Secondly,

global markets have been very

volatile with expectations of

rate hikes in the US. In the last

quarter, we saw significant

outflows from FIIs (foreign

institutional investors). So,

both the fundamentals and

flows have been a challenge.

The good news, however, was

that the domestic flows were

pretty strong.

By the end of second half, on a

fundamenta l bas i s , the

situation should be better than

where we are today and our

expectation is that earnings

growth should start coming

back into the system. The

reason being - we are getting

into a zone where revenue


Tête-à-tête

growth is showing some

improvement and this should

continue to do so over the next

couple of quarters. As far as

the infrastructure space goes,

we have had a slowdown for

quite some time. Nonetheless,

the last quarter saw a record of

new project announcements.

While this may not translate

into immediate revenues, I

think the trend in new project

announcements has been very

positive. We believe that over

a period of time this should

start showing an uptick in the

investment cycle. We already

have favorable commodity

pricing and wages have

remained soft across the rural

and urban areas. From the

u r b a n p e r s p e c t i v e a

c o m b i n a t i o n o f l o w

commodity prices and interest

rates trending downwards,

surely has helped consumers.

The rural side hasn't been that

lucky. Monsoons haven't been

great and added to that the

minimum support price (MSP)

hikes have been around 2.5%,

smaller than usual and this

could put some pressure on

rural spend / wages. In terms of

our expectations, second half

should look better than the first

half and by the fourth quarter

of the current financial year,

one should start seeing

earnings recovery set in.

What are the key concerns

related to markets one should be

watchful about?

I believe in the near term the

pace of global flows and their

impact on the domestic

markets could be one of the

concerns to watch out for. The

direction of interest rates in the

US and the resultant impact on

emerging markets including

India needs to be seen.

The Q2FY16 earnings season is

on. What is your assessment so far

and what is the road ahead?

We started the second

quarter earnings season with

ve ry low expec ta t ions .

However, the numbers that

have come through so far have

been slightly better than

expectations. Overall this

earnings season is still a mixed

bag in terms of hits and misses.

I believe that expectations

Q:

A:

Q:

A:


Tête-à-tête

have tempered down quite

c o n s i d e r a b l y a n d

comparatively numbers are

looking slightly better. I would

think this quarter and the next

one should be when you

should see maximum pain in

the system and hopefully by

the fourth quarter this fiscal

year, things should start

looking much better.

Can you briefly tell us about your

stock selection process?

We follow a bottom up

approach to stock selection.

Growth at a reasonable price is

what we look for. We have

5,000 companies listed in the

market but not all qualify to

b e c o m e a p a r t o f t h e

investment universe. We

follow our proprietary process

called GEM - Idea Generation

(G), Evaluation of Companies

( E ) a n d P o r t f o l i o

Manufacturing and Monitoring

(M). Herein we actively look for

new ideas which could come

f r o m s o u r c e s s u c h a s

investment team meetings,

external research, meetings

with company management /

competitors / suppliers,

Q:

A:

industry experts, regulators,

etc. These ideas are then

filtered using various filters

such as liquidity, market

capitalisation, ownership, etc

t o s h o r t l i s t i n v e s t a b l e

c o m p a n i e s w h i c h a r e

thoroughly evaluated based on

t h e i r p r o f i t a b i l i t y a n d

attractiveness of business,

compet i t ive posi t ioning,

balance sheet strength,

management track record,

corporate governance and

valuations. The analysts'

r e c o m m e n d a t i o n s a r e

subsequently incorporated in

the portfolio. The stocks

bought in the portfolio are

reviewed periodically and as

the portfolio manager, I may

decide to exit a stock on

achieving the price target or for

o ther reasons such as

weakening business prospects

or if I find better investment

opportunity elsewhere. The

portfolios are monitored

continuously to ensure that

they are positioned to meet

their investment objectives.

Which sectors look attractive in

the current scenario and which

Q:


Tête-à-tête

ones would you avoid?

Of the sectors which should

show growth over the 3-5

years, infrastructure space is

surely showing signs of some

revival. Within infrastructure

roads, rail, defense, power

transmission and may be

logistics are some of the areas

where we are seeing some

improvement. Other sectors

w h e r e w e h a v e s e e n

i m p r o v e m e n t i s t h e

automobile sector and more so

the four-wheeler segment.

Consumer discretionary sector

will benefit from reducing

operational costs as well as

lower financing charges.

Clearly, there are a lot of areas

which are showing promise at

this point in time. Building

products is another area we

believe can have a good

upside over the next 3 to 5

years.

We would stay away from

areas where the stocks have

performed very strongly and

shown good performance

based on fundamentals. For

example, consumer staples

have had a good run and we

A:

have exited stocks in this

sector. The other areas where

we are underweight are real

estate and commodit ies

although we feel that over the

next six months a lot of value

could emerge here.

What are the key fundamental

principles of building a successful,

long-term investment portfolio?

A successful long term

portfolio is built with intent to

create wealth and not take

small profits. Accordingly, an

investor should assess his risk

profile, his goals and the

various time periods that he

needs the corpus for. As such,

choosing a right investment

plan is very critical if you want a

lump sum closer to your goals

and at a higher rate over

inflation. The first step is

planning; how much is

required for the goal which

could be chi ld 's school

education, higher studies,

wedding etc. Start early - the

sooner you start saving, the

longer your investment has

time to grow. Just like the early

bird gets the worm, investing

early and when you have time

Q:

A:


Tête-à-tête

on your side, you can benefit

f r o m t h e p o w e r o f

compounding and the length

of time until you need the

money either for your child's

education or marriage. A key

tool which allows you to invest

regularly, smoothen out

market volatility and benefit

from power of compounding is

S y s t e m a t i c m o n t h l y

investments which could help

in building up a sizeable corpus

over the years.

What is your advice for investors

at this point in terms of their overall

portfolio and asset allocation?

I believe that investors

s h o u l d h a v e a w e l l -

constructed and diversified

portfolio with investments

Q:

A:

spread across asset classes.

Do not try to time the market

but invest systematically

t h r o u g h s y s t e m a t i c

investment plans. (SIPs).

Longer term investors pay an

average price for units over

time and this helps beat

volatility. Stay invested in the

markets and do not worry

about short term volatility.

Often investors make the

mistake of trying to time the

market and as a result end up

entering the markets at higher

levels and sometimes stop

their SIPs or exit when markets

decline.

Mutual Fund investments are

subject to market risks, read all

scheme re lated documents

carefully.

The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.

DisclaimerThe article (including market views expressed herein) is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient of this article/ information should understand that statements made herein regarding future prospects may not be realized. He/ She should also understand that any reference to the securities/ sectors in the document is only for illustration purpose and are NOT stock recommendations from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates. Any performance information shown refers to the past should not be seen as an indication of future returns. The value of investments and any income from them can go down as well as up. CL02298


ASK OUR PLANNER

November 2015

Q:

A:

I have recently shifted to a large organ izat ion f rom a smal l partnership firm. Now, my salary structure includes Leave Travel Allowance (LTA) as a component. Can you please let me know how can I save tax through the same?

- Shalini Gupta

If LTA forms a part of your salary, then this allowance can be availed on a trip within India. This does not apply for foreign travel. Also, you should have officially taken leave for the purpose. The claim is allowed for you and your family where family means spouse and children (two children only). The family could also include parents, brother, sister, who are wholly or mainly dependent on you. But you must be on the trip with them.

You could choose to travel by air, rail or road. It is also only for the shortest distance between two places that you can claim the amount for. Let's say for example, you, your spouse and two children take a flight between Delhi and Mumbai and on your way back you stop

at Ahmedabad and Jaipur, the amount can only be claimed for the Delhi-Mumbai distance.

Also, note that only two journeys can be claimed in a block of 4 years. We are currently on the Jan. 1, 2014 – Dec. 31, 2017 block. You can claim two journeys against your LTA within this period. If you are having only one trip in these four years, the other one can be carried forward on the next 4-year block, but this must be claimed in the first year of the next block, i.e. by Dec. 31, 2018.

If your spouse is also working and getting LTA component in salary, then you can claim twice in the block and your spouse can also claim twice, making it four journeys for 4 years. You can claim deduction for LTA only up to the amount granted to you by your employer. For claiming the LTA, you will have to produce the original tickets / boarding pass to your employer.

I want to save tax and invest 50,000 for the same, next month. I am confused as to which of the

Q: `

How to save tax through LTA claim


ASK OUR PLANNER

investments to select: ELSS / tax-saving bank FD / PPF. I am currently 25 years old and working in a private sector company. Can you please suggest?

- Vijay Shinde

A: Here's the basic difference between these three tax-saving instruments – ELSS ( e q u i t y - l i n k e d s a v i n g s scheme), tax-saving bank FD (fixed deposit) and PPF (public provident fund), on various parameters:

Particulars ELSS Tax-saving bank FD PPF

Asset class Equity Debt Debt

Amount that you can invest

No maximum limit (Tax exemption only upto Rs.1.50 lakh) Upto Rs.1.50 lakh Rs. 500 p.a. to 1.50 lakh p.a.

Lumpsum / Regular Both lumpsum / regular possible

Lumpsum

Regular. Every year, min. Rs.500 to be invested

Maturity NA

5 years

15 years

Lock-in period

3 years (For regular investments through SIP, every instal lment will have a lock-in of 3 years)

5 years

15 years

Pre-mature withdrawal Not possible during lock-in

Not possible

Partial withdrawal possible, after expiry of 5 financial years

Return

No fixed return; linked to performance of stocks invested in the scheme

Generally 0.5% to 1% higher than normal FD

Fixed by Government every year; 8.7% p.a. for 2014-15; awaited for 2015-16

Taxation

Capital Gain: If redeemed within 1 year - 15%; If redeemed after 1 year - Nil. Dividend: Nil

Interest added to income and taxed as per your tax slab

Interest & maturity proceeds are exempt from tax

Each of the above investments has its own merits. Since you are young, you can look to invest into equity asset class and can opt for ELSS, as equity as an asset class outperforms all other asset classes in the long run. For example, five top-performing ELSS funds have generated an average annualized return of 15.31% as compared to 8.24% by PPF and 8.06% by bank FDs in the last 10 years.

Q: I am 27 and work in a software

firm in Bangalore. I stay with my

parents. My company provides

House Rent Allowance (HRA) of

13,500 p.m. as a part of my salary.

But since I don't live in a rented

accommodation, I end up paying

tax on the full amount. Is there any

way I can save tax on my HRA?

`

- Puneet Jain

If the house belongs to your

parents, then you can pay rent

to your parents and claim

deduction from your HRA. All

you have to do is enter into a

rental agreement with your

parents and transfer money to

them every month.

A:


ASK OUR PLANNER

In case you are already paying

some amount to your parents

every month, then the same

can be considered as rent paid

to them. This way you will be

able to save some taxes too.

But remember, your parents

will have to show the rent you

pay as their income in their

income tax returns.

If your parents are working and

they fall under a higher income

slab than you, then this

a r rangement might not

benefit, because you might

end up paying more taxes on

this part of your income as a

family. However, if your

parents are retired and fall

under a lower income slab than

you, then this arrangement can

benefit your family as the tax

outgo on this part of your

income will be lesser.

I work in Mumbai and I had

bought a house few years back on

loan. Till last year I was staying in

the same house. However, as the

distance to office is very long and I

consume almost 4 hours a day in

Q:

travelling, I recently shifted to a

house close to my office on rent and

have let out my house. I have been

claiming deduction on principal and

interest on my home loan till now.

Can I also claim the deduction from

HRA along with this, since now I

have moved to a rented house?

- Pramod Kumar

Yes, one can do so, provided

the person has a genuine

reason for not living in the

owned house, when the

owned house and rented

house is in the same city. Since

you have a valid reason that

your office is far off, you can

claim the HRA amount.

Also, as you have rented out

your own house, you should

declare your rental income

when you file your income tax

returns.

A:

Do you also have similar queries to ask our experts? Write to us at: [email protected].

MUTUAL FUND ANALYSIS


Investing in tax-saving ELSS fundsEquity-linked savings schemes (ELSS) are equity diversified mutual funds that are eligible for tax benefits under Section 80C of the Income Tax Act. The investment limit for individuals to invest in financial instruments under the section 80C is Rs. 1.5 lakh which we believe can be invested in ELSS as it is the only tax-saving instrument that invests purely in equities (an asset class that can potentially earn higher return). The ELSS lock-in period of three years is also lowest among other investment options available under Section 80C of the Income Tax Act.

Advantages of ELSS

§

§

§

§

§

Investment in ELSS is

eligible for tax benefits under

section 80C. Maximum tax

saved can be up to 40,250

ELSS invests in equity

stocks, which leads to capital

appreciation over the long

term

Capital gains at the end of

t h e l o c k- i n p e r i o d a r e

completely tax free

The lock-in period of three

years curtails panic selling in

case of interim volatility in

equ i ty markets . Hence,

investments reap the benefit of

long term investing in equities

Highly professional and

experienced fund managers

`

handle the equity exposure of

o n e ' s o v e r a l l p o r t f o l i o

allocation

Sys temat i c mode o f

investment (regular monthly

investment) available

We believe the positive

momentum in markets will

further gain traction as

ea rn ings g rowth s ta r t s

s h o w i n g a f u r t h e r

improvement. For a three-year

period, the Indian equities

markets are expected to

outper form other asset

classes. Therefore, ELSS funds

p r o v i d e a n e x c e l l e n t

investment opportunity apart

from tax benefits.

§



Product Label:

This product is suitable for investors who are seeking*:•

•

Capital appreciation and generating income over long terminvestments in a diversified Portfoilio predominantly consisting of equity and equity related Securities.

Fund Manager: Jinesh GopaniJ i n e s h G o p a n i has been managing the fund since 5 years now. Prior to joining Axis Asset Management Company he worked with Birla SL AMC, Voyager Capital, etc and has 11 years of experience in financial services sector.

Performance:The fund has delivered 13.4% return in 1 year and 8% year-to date (YTD) on annualized basis. The fund has delivered compounded annual ized return (CAR) for the last five years at 18.3% as against the 5.5% delivered by benchmark index. In 2010, when the Sensex delivered 17.43%, this fund delivered 30% (category average: 19%). In 2011, when the Sensex crashed by around 25%, this fund restricted its fall to -15% (category average: - 24%).

Axis Long Term Equity Fund

Fund Objective:The investment objective of the scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities.

Key Information:NAV as on November 03, 2015 ( ) 30.8

Inception Date December 29,2009

Fund Manager Jinesh Gopani

Minimum Investment ( )

Lumpsum 500

SIP –

Expense Ratio (%) 1.95

Exit Load Nil

Benchmark S&P BSE 200

Last declared Quarterly AAUM( cr) 6236

`

`

`

2014 2013 2012 2011 2010

28.7 17.3 14.8 11.1 13.0

66.2 16.5 33.7 -14.8 30.0

35.5 4.4 31.0 -27.0 16.2

3595 840 426 137 60

Benchmark (%)

Net Assets ( Cr)`

Return (%)

Calendar Year-wise Performance

NAV as on Dec 31 ( )`

Performance vs. Benchmark

Fund Benchmark

2.6

13.4

29.3

18.3

-0.6

0.2

13.8

5.5

-100

10203040

6 Month 1 Year 3 Year 5 Year

Retu

rn%



Portfolio:The fund is a pure growth

oriented and picks stocks on a

bottom-up basis for their

industry leadership, pricing

power and strong cash flows

and good governance. In tax-

saving funds, which are a part

of the multi-cap category, the

allocations between large, mid

and small-cap stocks can be

pretty fluid with some funds.

But this fund has maintained a

55-60% large-cap tilt, 35-40%

mid-cap tilt, with a marginal

small-cap allocation. Fund

Manager follows a strategy of

keeping the core intact while

churning the rest of its

portfolio. The fund avoids

highly regulated and cyclical

sectors which have taken a

battering in the market lately.

For a three-year period, the

Indian equities markets are

expected to outperform other

asset classes. Therefore, ELSS

funds provide an excellent

investment opportunity apart

from tax benefits.

Axis Long Term Equity Fund

has stood out for its category

leading returns in all of the five

years since inception. It has

bagged numero uno slot back

to back in a good year as well

as a bad year. Overall, it is a

great fund to park tax-saving

investments.

Our View:

%

8.3

6.6

6.6

5.6

5.4

4.1

4.1

3.9

3.2

3.1

Pidilite Industries Ltd. Domestic Equities

Cummins India Ltd. Domestic Equities

TTK Prestige Ltd. Domestic Equities

Sun Pharmaceutical Industries Ltd. Domestic Equities

Maruti Suzuki India Ltd. Domestic Equities

Tech Mahindra Ltd. Domestic Equities

HDFC Bank Ltd. Domestic Equities

Kotak Mahindra Bank Ltd. Domestic Equities

Tata Consultancy Services Ltd. Domestic Equities

Housing Development Finance Corporation Ltd.Domestic Equities

Top 10 Holdings Asset Type



Data as on November 03,2015 ;Portfolio details as on Sep-2015Source: ACE MF, ICICIdirect Research

SIP Performance (Value if invested 5000 per month (in'000))`

20Jan-07-2014 10Aug-08-2012 8Sep-01-2010 10

Jan-23-2015

Dividend History

Date Dividend (%)

Performance of all the schemes managed by the fund manager

30 -Sep-14 30 -Sep-13 30 -Sep-12

30 -Sep-15 30 -Sep-14 30 -Sep-13

Fund Name

Axis LT Equity Fund(G) 17.99 76.27 3.26

S&P BSE 200 3.08 42.50 -1.11

%14.9

12.2

11.7

8.0

6.0

4.9

4.5

4.1

3.9

3.2

Domestic Equities

Auto Ancillary Domestic Equities

Chemicals Domestic Equities

Diesel Engines Domestic Equities

Automobiles - Passenger Cars Domestic Equities

Top 10 Sectors Asset TypeBank - Private Domestic Equities

IT - Software

Consumer Durables - Domestic Appliances Domestic Equities

Finance - NBFC Domestic Equities

Domestic Equities

Pharmaceuticals & Drugs Domestic Equities

Finance - Housing

Total Investment Fund Value Benchmark Value

60

180

300

60.5

275.4

570.1

58.2

217.4

403.7

0

100

200

300

400

500

600

1Yr 3Yrs 5Yrs 10Yrs



ICICI Prudential Long Term Equity Fund

Fund Objective:To generate long-term capital a p p r e c i a t i o n t h r o u g h investments made primarily in equity and equity related securities of companies. Accordingly, the NAV of the S c h e m e i s l i n k e d t o p e r f o r m a n c e o f s u c h companies. However, there can be no assurance that the investment objective of the Scheme will be realized.

Key Information:

scheme tha t a ims to generate long term capital appreciation by primarily investing in equity and related securities.

Fund Manager: George Heber Joseph

Performance:

George Heber Joseph is B.Com, BA and CA. Prior to joining ICICI AMC, he has worked with DSP Merill Lych Ltd. as Senior Specialist - Equity & Treasury Business and many more reputed firms. He has 10 years of experience in financial services sector.

The fund is known to generate trail-blazing returns with last o n e - y e a r c o m p o u n d e d annualised return (CAR) at 4.3% as against the benchmark return of 0.6% and last five-year CAR of 11.9% (benchmark return: 5.4%). The CAR for past 10 years is 32%. The fund follows high-risk, high-return strategy and delivers higher returns over long term horizon rather than short-term periods.

NAV as on November 05, 2015 ( ) 268.1

Inception Date August 19,1999

Fund Manager Chintan Haria

Minimum Investment (`)

Lumpsum 500

SIP 500


Exit Load Nil

Benchmark CNX 500 Index

Last declared Quarterly AAUM(`cr) 2720

`

Product Label:

This product is suitable for investors who are seeking:

•

•

Long term wealth creation solution

An equity linked savings

2014 2013 2012 2011 2010

262.6 174.1 158.1 114.9 151.0

50.8 10.2 37.6 -24.0 24.1

37.8 3.6 31.8 -27.2 14.1

2412 1592 1521 1197 1320


NAV as on Dec 31 ( )`

Benchmark (%)

Net Assets ( Cr)`

Return (%)



Portfolio:In the ELSS category funds, which mainly have growth-oriented stocks, this fund displays a value orientation. T h e f u n d f o l l o w s a n unconstrained mult i -cap strategy, with the proportion of large-cap and mid/small-cap stocks decided based on the relative valuations. The fund also raises cash up to 10% in overheated market. In recent months, the fund has had a large-cap tilt, with a 65-70%

allocation to these stocks while mid-caps made up 20-25% of the portfolio.

The fund's slightly contrarian take on markets may lead to lower near-term returns but may deliver quite well over a market cycle. The fund is not only aggressive in selecting stocks but also tends to churn its portfolio quite frequently. But it spreads its portfolio across over 50 stocks to partially mitigate the risks that come with investing in stocks of smaller companies.

This fund is a good investment option for long term horizon as it delivers higher returns due to its risk taking ability.

Our View:


Fund Benchmark

0.7 3.3

21.4

11.6

-3.2 -0.8

13.9

5.1

-10

0

10

20

30


Retu

rn%

%

7.8

6.1

4.9

4.9

4.7

4.6

4.4

4.1

3.8

3.7



HCL Technologies Ltd. Domestic Equities

Cipla Ltd. Domestic Equities

Mahindra & Mahindra Ltd. Domestic Equities

Power Grid Corporation Of India Ltd. Domestic Equities

Tech Mahindra Ltd. Domestic Equities

Lupin Ltd. Domestic Equities


Bajaj Finserv Ltd. Domestic Equities

Thomas Cook (India) Ltd. Domestic Equities



Data as on November 05,2015 ;Portfolio details as on Sep-2015Source: ACE MF, ICICIdirect Research

%16.0

13.6

10.7

6.4

4.8

4.7

4.3

3.8

3.0

2.8

Top 10 Sectors Asset Type

IT - Software Domestic Equities

Automobiles - Passenger Cars


Bank - Private Domestic Equities

Travel Services Domestic Equities

Automobiles-Trucks/Lcv Domestic Equities

Electric Equipment Domestic Equities

Domestic Equities

Finance - NBFC Domestic Equities

Power Generation/Distribution Domestic Equities

Finance - Investment Domestic Equities

60 1

80 300

600

59.7 2

44.9 482

1376.2

58 2

17.2

405

1002.3

0

500

1000

1500

1Yr 3Yrs 5Yrs 10Yrs

SIP Performance (Value if invested | 5000 per month (in'000))


%

4.9

1.6

1.7SKS Microfinance Ltd.

Whats In

Mahindra & Mahindra Ltd.

Maruti Suzuki India Ltd.

%

0.5

31.9

Whats out

Steel Authority Of India Ltd.

Sun Pharmaceutical Industries Ltd.IndusInd Bank Ltd.

Dividend History

Date Dividend (%)Feb-09-2015 20

Feb-27-2012 10Feb-21-2011 20

Nov-10-2014 20Feb-10-2014 20Feb-11-2013 20


30 -Sep-14 30 -Sep-13 30 -Sep-12

30 -Sep-15 30 -Sep-14 30 -Sep-13

Fund Name

ICICI Pru LT Equity Fund (Tax Saving)-Reg(G) 6.43 67.65 1.18

CNX 500 Index 3.59 46.08 -2.49

ICICI Pru Child Care Plan-Gift Plan 2.39 72.65 -7.30

Crisil Balanced Fund Index 4.38 28.89 1.86

3.4

11.7

23.1

13.9

0.1

0.8

14.4

5.8

05

10152025


Retu

rn%


Fund Benchmark



Franklin India Taxshield

Fund Objective:To provide medium to long term growth of capital along with income tax rebate.

Key Information:

Product Label:

This product is suitable for investors who are seeking:

•

•

L o n g t e r m c a p i t a l appreciation

An ELSS fund offering tax benefits under section 80C of the Income tax act.

NAV as on November 03, 2015 ( ) 424.5

Inception Date April 10,1999

Fund Manager Anand Radhakrishnan

Minimum Investment (`)

Lumpsum 500

SIP 500


Exit Load Nil

Benchmark CNX 500 Index

Last declared Quarterly AAUM(` cr) 1810

`

Fund Manager: Anand RadhakrishnanAnand Radhakrishnan is B. Tech, CFA and PGDM from IIM

Ahmedabad. Prior joining to Franklin Templeton AMC, he has worked with Sundaram A M C a n d S B I F u n d Management. He has been managing this fund since 2007.

The fund has delivered 11.7% return in 1 year and 5.4% year-to-date (YTD) on annualized basis. The fund has delivered compounded annual ized return (CAR) for the last five years at 13.9% as against the 5.8% delivered by benchmark index and 10 year CAR return of 40.2%. In 2000, when entire category fell by 23.7%, the fund delivered 2.1% return.

Performance:

2014 2013 2012 2011 2010

401.9 256.1 241.3 186.5 219.9

56.9 6.1 29.4 -15.2 23.5

37.8 3.6 31.8 -27.2 14.1

1589 1004 942 747 884Net Assets (| Cr)

Return (%)


NAV as on Dec 31 (|)

Benchmark (%)

Portfolio:The fund sticks mainly to the large-cap stocks which makes it immune to ups and downs of the market. The key to this performance lies in the fund's 65-70% large-cap allocations



at most times. Mid-caps can make up 25-35% of the portfolio. But the fund tends to reduce this proportion if valuations heat up. The top 10 holdings account for almost half the portfolio, most of which are large-cap stocks, thus mitigating the risks. Also, the fund goes high on cash holdings as compared to other funds.

For a three-year period, the Indian equities markets are

Our View:

expected to outperform other asset classes. Therefore, ELSS funds provide an excellent investment opportunity apart from tax benefits.

Franklin India Taxshield has a unique ability to always protect the downside but during the bull runs, it has been a middle o f the road per former. However, during a long term it beats the category average. Overall, it is a sound and safe offering, best suited for conservative equity investors.

%

6.6

5.6

4.0

4.0

3.9

3.6

3.2

2.8

2.5

2.5

Yes Bank Ltd. Domestic Equities


Torrent Pharmaceuticals Ltd. Domestic Equities

ICICI Bank Ltd. Domestic Equities

Bharti Airtel Ltd. Domestic Equities

Dr. Reddys Laboratories Ltd. Domestic Equities


Infosys Ltd. Domestic Equities

IndusInd Bank Ltd. Domestic Equities

Call Money Cash & Cash Equivalents


%24.7

10.7

10.6

4.5

3.2

3.1

3.0

3.0

2.9

2.7

Chemicals Domestic Equities

Diesel Engines Domestic Equities

Automobiles-Trucks/Lcv Domestic Equities

Cement & Construction Materials Domestic Equities

Refineries Domestic Equities

Top 10 Sectors Asset TypeBank - Private Domestic Equities

IT - Software Domestic Equities


Telecommunication - Service Provider Domestic Equities

Batteries Domestic Equities



Data as on November 3, 2015; Portfolio details as on September-2015Source: ACE MF, ICICIdirect Research

SIP Performance (Value if invested | 5000 per month (in'000))

180

300 6

00

60.3 255.3

498.7

58.5 220.7

410.1

1Yr 3Yrs 5Yrs 10Yrs


%

0.8

Whats In

Asian Paints Ltd.

%

0.5

Whats out

CRISIL Ltd.

40

Jan-18-2010 30

30

Jan-27-2014 30

Jan-21-2013 20

Feb-06-2012 30

Feb-02-2015

Dividend History

Date Dividend (%)

Jan-17-2011

Franklin India Taxshield

Benchmark

Additional Benchmark

429012

108152

85041

Value of investment of 10000invested since inception

`

Particulars `


30 -Sep-14 30 -Sep-13 30 -Sep-12

30 -Sep-15 30 -Sep-14 30 -Sep-13

Fund Name

Franklin Build India Fund(G) 17.99 87.81 1.48

CNX 500 Index 3.59 46.08 -2.49

Franklin India Prima Plus Fund(G) 16.65 58.95 0.38

CNX 500 Index 3.59 46.08 -2.49

Franklin India Balanced Fund(G) 16.38 46.77 1.39


Franklin India Taxshield(G) 16.17 59.14 0.21

CNX 500 Index 3.59 46.08 -2.49

Franklin India Pension Plan(G) 15.55 28.87 2.37

CNX 500 Index 3.59 46.08 -2.49

Franklin India MIP(G) 12.19 19.88 5.24

Crisil MIP Blended Index 10.72 15.45 3.18

Franklin India Life Stage FOFs-40(G) 11.29 24.46 2.53

CNX 500 Index 3.59 46.08 -2.49


CNX 500 Index 3.59 46.08 -2.49

Franklin India Life Stage FOFs-20(G) 10.77 42.62 -0.41

CNX 500 Index 3.59 46.08 -2.49


Crisil Composite Bond Fund Index 12.56 11.61 3.45

Franklin India Bluechip Fund(G) 10.32 41.41 -0.61

S&P BSE SENSEX -1.79 37.41 3.29

Franklin India Dynamic PE Ratio FOFs(G) 10.22 27.89 0.38


Franklin India Life Stage FOFs-50s +FR(G) 9.00 15.90 6.26

Crisil Liquid Fund Index 8.56 9.49 8.54

Franklin Infotech Fund(G) 8.41 34.47 27.62

S&P BSE IT 8.33 36.33 32.36

Franklin India Index Fund-NSE Nifty(G) 0.20 38.57 0.73

CNX Nifty Index -0.20 38.87 0.56


MUTUAL FUND TOP PICKS

November 2015

Based on our quarterly rankings, we have updated our mutual fund (MF) top picks.

Mutual Fund Top Picks

Equity

Category Top Picks

Largecaps

Midcaps

Diversified

ELSS

Birla Sunlife Frontline equity FundICICI Pru Focussed Bluechip Equity FundUTI Opportunities FundSBI Bluechip Fund

HDFC Midcap Opportunities FundICICI Prudential Value Discovery FundFranklin India Smaller Companies FundSBI Magnum Global Fund

Franklin India Prima PlusICICI Prudential Dynamic PlanReliance Equity Opportunities

Axis Long Term EquityICICI Prudential Tax PlanFranklin India Tax shield

Liquid Funds

HDFC Cash Mgmnt Saving Plan ICIC Pru Liquid PlanReliance Liquid Treasury Plan

Ultra Short Term

Birla Sunlife Savings FundFranklin India Ultra Short Term Bond FundICICI Pru Flexible Income Plan

Short Term

Birla Sunlife Short Term FundHDFC Short Term Opportunities FundICICI Pru Short Term Plan

Credit Opportunities FundBirla Sunlife Medium Term PlanFranklin India Short term PlanICICI Prudential Regular Savings

Income FundsICICI PrudenIncome FundBirla Sun Life Income Plus - Regular Plan UTI Bond Fund

Gilts Funds

ICICI Pru Gilt Inv. PF PlanBirla Sunlife Constant Maturity 10 yeargilt plan

MIP (Aggressive)

Birla Sunlife Savings 5ICICI Prudential MIP 25DSP Blackrock MIP

Debt


EQUITY MODEL PORTFOLIO

November 2015

Our indicative large-cap equity model portfolio (“Quality-21”) has continued to deliver an impressive return of 81.2% (inclusive of dividends) till date (as on November 17, 2015) since its inception (June 21, 2011) vis-à-vis the benchmark index (S&P BSE Sensex) return of 47.3% during the same period, out-performance of 34%. This validates our thesis of selecting companies with sound business fundamentals that forms the core theme of our portfolio. Our “Consistent-15” mid-cap portfolio also continues to outperform, delivering 136.6% (inclusive of dividends) till date (as on November 17, 2015) vis-à-vis the benchmark index (CNX Midcap) return of 65.9%, out-performance of 71%. Our consistent outperformance demonstrates our superior stock picking ability as markets in H1CY15 aligned to our view of favourable risk reward, good franchisee vs. reward-at-any-risk businesses. Some key performers of our portfolio are Lupin, Axis Bank and TCS in the large-cap portfolio while Natco Pharma and Shree Cement have delivered stupendous returns in the mid-cap portfolio.

We have always suggested the systematic investment plan (SIP)

mode of investment and still find a lot of merit in it as the

preferred mode of deployment given the market conditions and

volatility associated since the inception of the portfolio. It has

outperformed other portfolios, thus, reinforcing our belief in a

plan of investment. However, now we are also advising clients to

look at lump sum investments on any possible dips.

On a year-to-date (YTD) basis, the markets have been

consolidating in a broad range of 8,000-8,800 on the Nifty. This is

owing to: a) markets awaiting a turnaround on the ground and,

hence, corporate earnings and b) taking a breather post a

stupendous rise witnessed in CY14, wherein valuations in some

areas were ahead of fundamentals. Going ahead, in the medium

term, stocks with reasonable earnings visibility and valuations

should do well and will find flavour among investors.

On the back of this run up in stock prices and valuations running

ahead of fundamentals, we have aligned our portfolio to capture



November 2015

the new opportunities available in the market. We have replaced

Bajaj Auto with Maruti and Titan Company with Asian Paints.

Furthermore, we have transferred Bosch which was earlier a part

of the mid-cap portfolio to the large-cap portfolio. Apart from

shuffling stocks, we have also increased/reduced the allocation

weights of some companies.

In the large-cap space as compared to broader indices we

continue to remain overweight on Pharma & IT, following which

FMCG forms the major portion of the asset allocation. We

continue to remain underweight on metals and oil & gas with our

only pick being ONGC and Tata Steel, which have a better risk-

reward opportunity. We believe that return on investment (RoI)

for these sectors would continue to remain stressed due to a

subdued pricing environment and discreet trade activities. We

continue to remain over-weight to neutral on pure play

defensives (IT, FMCG) as secular earnings coupled with sector

rotation could lead to consolidation in near term valuations and

offer stock specific opportunities. We remain positive on auto,

pharma, capital goods and infrastructure.

Among individual names, we are strongly overweight on Infosys,

TCS in the IT space, HDFC and HDFC Bank in the BFSI space, ITC

and PVR in consumer space and L&T and NBCC in the infra space.

House view on Index: Factoring in the fall in inflation, comfortable

CAD (current account deficit), improved sentiments and pick-up

in GDP (gross domestic product) growth, we expect Sensex EPS

(earnings per share) to grow 13.2% and 19.4% to Rs. 1,539 and

Rs. 1,838 during FY16E and FY17E, respectively (CAGR of 16% in

FY15-17E). We assign a P/E (price-to-earnings) multiple of 16.5x

on FY17E EPS to arrive at a fair value of 30,300 for the Sensex by

end CY15 with the Nifty estimated to reach 9,100.



November 2015

Name of the company

Largecap Stocks

Model Portfolio

Largecap(%)

Midcap(%)

Diversified(%)

Auto 10 7

Tata Motor DVR 3 2.1

Bosch 3 2.1

Maruti 4 2.8

BFSI 29 20.3

HDFC Bank 8 5.6

Axis Bank 7 4.9

HDFC 8 5.6

SBI 6 4.2

Capital Goods 6 4.2

L & T 6 4.2

Cement 3 2.1

UltraTech Cement 3 2.1

FMCG/Consumer 13 9.1

ITC 7 4.9

United Spirits 2 1.4

Asian Paints 4 2.8

IT 18 12.6

Infosys 10 7

TCS 8 5.6

Meida 2 1.4

Zee Entertainment 2 1.4

Metal 2 1.4

Tata Steel 2 1.4

Oil & Gas 3 2.1

ONGC 3 2.1

Pharma 11 7.7

Lupin 6 4.2

Dr Reddys 5 3.5

Telecom 3 2.1

Bharti Airtel 3 2.1

Largecap share in diversified 70



November 2015

Content source: ICICIdirect.com Research

ICICI Securities has received an investment banking mandate from Government of India for disinvestment in ONGC.

ICICI Securities Limited has received an Investment Banking mandate from Castrol India Ltd.This report is prepared based on publicly available information.

Midcap Stocks

Name of the company Model Portfolio

Largecap(%)

Midcap(%)

Diversified(%)

Auto 8 2.4

Eicher Motors 8 2.4

BFSI 14 4.2

Bajaj Finance 8 2.4

CARE 6 1.8

Capital Goods 6 1.8

Cummins 6 1.8

Cement 6 1.8

Shree Cement 6 1.8

Consumer 12 3.6

Symphony 6 1.8

FMCG 8 2.4

Nestle 8 2.4

Infrastructure 6 1.8

NBCC 6 1.8

Logistics 6 1.8

Container Corporation of India 6 1.8

Media 8 2.4

PVR 8 2.4

Oil & Gas 6 1.8

Castrol 6 1.8

Pharma 14 4.2

Natco Pharma 8 2.4

Torrent Pharma 6 1.8

Textile 6 1.8

Arvind 6 1.8

Total 30

Total of all three portfolios 100 100



Performance* so far Since inception

*Returns (in %) as on

Large-cap Portfolio Benchmark: BSE Sensex; Mid-cap Portfolio

Benchmark: CNX Midcap; Diversified Portfolio Benchmark: Combination

of BSE Sensex and CNX Midcap

November 17, 2015

Value of ` 1,00,000 invested via SIP at the end of every month

Portfolio Benchmark

Investment Value of Investment in Portfolio Value if invested in Benchmark

Start date of SIP: , 2011; *Value as on June 30 November 17, 2015

November 2015

81.2

136.6

100.1

47.3

65.9

51.6

0

25

50

75

100

125

150

%

5,4

00,0

00

5,4

00,0

00

5,4

00,0

00

6,6

99,8

23

9,5

42,0

75

7,4

44,5

31

6,0

49,2

61

6,5

02,7

22

6,3

31,2

18

3,500,000

4,500,000

5,500,000

6,500,000

7,500,000

8,500,000

|

QUIZ TIME

1. You can claim deduction for Leave Travel Allowance (LTA) for your

trip to Europe or any other foreign trip. True/False

2. Contributions to Voluntary Provident Fund (VPF) account can go up

to ______% of the basic salary.

3. The maximum benefit that one can get under gratuity is Rs. ______

lakh.

4. After 7 years of service, you can withdraw maximum ______% of

your EPF (Employee Provident Fund) share, from your EPF account,

for your children's education.

5. You can claim deduction for House Rent Allowance (HRA) even

when you are staying with your parents, provided you pay rent to

them. True/False

Note: All the answers are in the stories that have appeared in this edition

of ICICIdirect Money Manager. You may send in your answers at:

[email protected]. The answers will be published in

our next edition. The names of the earliest all correct entries will be

published too. So jog your grey cells and be quick to send in your

entries.

Correct answers for the October 2015 quiz are:

1. Principal invested as well as interest income earned from tax-free

bonds is exempt from tax. True / False

A: False, only interest income earned is tax exempt

2. The Employees' Provident Fund Organisation (EPFO) is expected to

launch an online PF withdrawal facility by ______.

A: March end

3. Currently, there are four credit bureaus in India, viz. ______, ______,

______ and ______.

A: CIBIL, Equifax, Experian and High Mark Credit Information Services

4. Interest income earned from senior citizen savings scheme (SCSS)

is exempt from tax. True / False

A: False, it is added to your income and taxed as per tax slab one falls into

5. If your CIBIL score is more than ______, then there is a higher chance

of your loan being approved.

A: 750



PRIME NUMBERS

November 2015

Equity Markets

Domestic Equity Indices

Global Equity Indices

Sectoral Indices

Volatility Index (VIX)

30-Oct-15 30-Sep-15 Change (%)

CNX Nifty 8,065.8 7,948.9 1.5%

CNX Midcap 13,238.5 12,984.5 2.0%

S&P BSE Sensex 26,656.8 26,154.8 1.9%

S&P BSE 100 8,193.9 8,077.4 1.4%

S&P BSE 200 3,404.2 3,352.0 1.6%

S&P BSE 500 10,671.6 10,498.3 1.7%


Dow Jones 17,663.5 16,284.7 8.5%

S&P 500 2,079.4 1,920.0 8.3%

Nasdaq 5,053.7 4,620.2 9.4%

FTSE 6,361.1 6,061.6 4.9%

DAX 10,850.1 9,660.4 12.3%

CAC 40 4,897.7 4,455.3 9.9%

Nikkei 19,083.1 17,388.2 9.7%

Hang Seng 22,640.0 20,846.3 8.6%

Shanghai Composite 3,382.6 3,052.8 10.8%

Taiwan Weighted 8,554.3 8,181.2 4.6%

Straits Times 2,998.4 2,790.9 7.4%


S&P BSE Auto 18,166.2 17,391.1 4.5%

S&P BSE Bankex 19,773.9 19,681.6 0.5%

S&P BSE FMCG 4,232,894.0 4,183,637.0 1.2%

S&P BSE Healthcare 18,066.4 17,779.2 1.6%

S&P BSE Metals 7,307.7 6,833.7 6.9%

S&P BSE Oil & Gas 9,065.9 8,694.7 4.3%

S&P BSE Power 1,917.1 1,841.7 4.1%

S&P BSE Realty 1,371.6 1,396.6 -1.8%

S&P BSE Teck 6,115.0 6,255.6 -2.2%

30-Oct-15 30-Sep-15

VIX 17.88 19.63


PRIME NUMBERS

Debt Markets

Government Securities (G-Sec) Yields (in %) Oct-15 Sep-15 Change (bps)

Corporate Bond Yields (in %) Oct-15 Sep-15 Change (bps)

Certificate of Deposit (CD) Rates (in %) Oct-15 Sep-15 Change (bps)

Commercial Paper (CP) Rates (in %) Oct-15 Sep-15 Change (bps)

Treasury Bill (T-Bills) Yields (in %) Oct-15 Sep-15 Change (bps)

10 year 7.64 7.54 10

5 year 7.69 7.63 6

3 year 7.48 7.50 -3

1 year 7.20 7.25 -5

AAA 10 year 8.19 8.41 -22.1

AAA 5 year 8.18 8.44 -26.3

AAA 3 year 8.08 8.37 -29.1

AAA 1 year 7.90 8.23 -33.1

AA 10 year 8.68 8.95 -26.9

AA 5 year 8.57 8.98 -41.1

AA 3 year 8.55 8.91 -36.3

AA 1 year 8.56 8.77 -21.6

12 Months 7.57 7.38 19

6 Months 7.38 7.24 14

3 Months 7.27 7.12 15

1 Month 7.05 7.13 -8

12 Months 8.06 8.05 1

6 Months 7.89 7.73 16

3 Months 7.69 7.51 18

1 Month 7.43 7.36 6

91D TB 7.10 7.04 5.5

182D TB 7.14 7.10 4.1

364D TB 7.18 7.12 5.1


PRIME NUMBERS

10-year benchmark yields (%) across countries

Inflows In Equity and Debt Markets

Macro-economic Indicators

Countries 30-Oct-15 30-Sep-15 Change in bps

US 2.14 2.04 11

UK 1.92 1.76 16

Japan 0.31 0.36 (5)

Spain 1.67 1.89 (22)

Germany 0.52 0.59 (7)

France 0.86 0.98 (12)

Italy 1.48 1.73 (24)

Brazil 15.89 15.40 49

China 3.08 3.27 (19)

India 7.64 7.54 10

MF Inflows Oct-15 Sep-15 YTD(in Rs. crore)

Equity 2952 9320 59753

Debt 25128 16660 381848

FII Inflows Oct-15 Sep-15 YTD(in Rs. crore)

Equity 5064 -5696 26676

Debt 15627 165 54614

Consumer price index (CPI)

Items Weights Oct15 (in %) Sept-15 (in %) Aug-15 (in %)

Food & beverages 45.86 5.34 4.29 2.92

Pan, tobacco and intoxicants 2.38 9.5 9.35 9.34

Cloth & Foot 6.53 5.62 6 5.77

Housing 10.07 4.88 4.74 4.68

Fuel & light 6.84 5.32 5.42 5.7

Misc. 28.31 3.51 3.34 3.08

CPI 100 5.00 4.41 3.66

Wholesale price index (WPI)Particulars Weights Oct-15 (in %) Sept-15 (in %) Aug-15 (in %)

WPI 100 -3.81 -4.54 -4.95Primary Articles 20.1 -0.36 -2.09 -3.71Fuel & Power 14.9 -16.32 -17.71 -16.5Manufactured Goods 65 -1.67 -1.73 -1.92


PRIME NUMBERS

Index of industrial production (IIP) Sector-wise growth rate (%)

Currencies and CommoditiesCurrencies

Commodities

Mutual Funds: Category Average Returns

Equity Funds Returns (in %)

Tenure Diversified Funds Mid-cap & Small-cap

Funds

Large-capFunds

ELSS (Tax-

savingfunds)

Returns as on Oct. 30, 2015

Debt Funds Returns (in %)

Tenure Liquid Funds Short-termincome funds

Ultra short-term funds

Long-termincome funds

Returns as on Oct. 30, 2015

Gilt funds

Sources for above data: Bloomberg, Reuters, CRISIL, MOSPI, ICICIdirect.com Research

Categories Sep-15 Aug-15 Jul-15 Weight(%)

Mining 3.0 3.8 1.3 14.2Manufacturing 2.6 6.9 4.7 75.5Electricity 11.4 5.6 3.5 10.3

30-Oct-15 30-Sep-15 Change (%) StatusUSDINR 65.27 65.59 0.5% AppreciatedEURINR 71.85 73.50 2.3% AppreciatedGBPINR 100.15 99.58 -0.6% DepreciatedAUDINR 46.36 46.12 -0.5% DepreciatedCHFINR 65.99 67.37 2.0% AppreciatedJPYINR 0.54 0.55 0.6% AppreciatedCNYINR 10.33 10.32 -0.1% Depreciated

30-Oct-15 30-Sep-15 Change (%)Crude ($/barrel) 49.6 48.4 2.5%Gold ($/ounce) 1,142.0 1,114.6 2.5%

6 months 1.51 4.81 -0.56 0.561 year 9.65 19.54 5.14 9.113 year 19.89 29.06 16.25 19.385 year 10.05 15.70 8.25 9.69

6 months 7.69 8.13 8.13 7.61 7.631 year 8.19 9.05 8.53 10.50 10.833 year 8.65 8.76 8.85 8.84 8.98


ICICIdirect Centre for Financial Learning (ICFL) imparts quality education on financial markets to beginners and amateurs, student, housewives, working professionals and self employed. ICFL's broad objective is to make participant feel confident to start investing in stock market.

Here is the list of our programmes scheduled for the month of November, 2015.

Schedule for Beginners' programme on Futures and Options (F&O) TradingSr.No

City Dates For More Information & Registration call:

Premium Education Programmes Schedule

Schedule for Fast-Track Programme on Futures & Options (F&O)Sr.No City Dates For More Information & Registration call:

Sr.No


Schedule for Technical Analysis Programme

Sr.No


Schedule for Foundation Programme on Stock Investing

1 Pune 21st and 22nd November 2015 Kusmakar on 7875442311

2 Bangalore 28th and 29th November 2015 Subrata on 9620001478

3 Chennai 21st and 22nd November 2015 Rajat on 9962294867

4 Mumbai 7th and 8th November Nihal on 9619359592

5 Mumbai 21st and 22nd November 2015 Manish on 8451057943

7 Guwahati 22nd November 2015 Sumit Sarkar on 8017516187

8 Ahmedabad 8th November 2015 Yogesh on 8238053563

9 Pune 7th and 8th November Kusmakar on 7875442311

10 Hyderabad 7th and 8th November Ruchi on 8297362323

11 Chennai 21st and 22nd November 2015 Rajat on 9962294867

12 New Delhi 21st and 22nd November 2015 Vishal on 07838290143, Harneet on 09582158693

13 Pune 28th and 29th November 2015 Kusmakar on 7875442311

14 Hyderabad 20th and 21st November 2015 Ruchi on 8297362323

15 New Delhi 7th and 8th November Vishal on 07838290143, Harneet on 09582158693


17 New Delhi 28th and 29th November 2015 Vishal on 07838290143, Harneet on 09582158693

Schedule for Fast-track Programme on Stock InvestingSr.No


18 Pune 28th and 29th November 2015 Kusmakar on 7875442311

19 Hyderabad 20th and 21st November 2015 Ruchi on 8297362323

20 New Delhi 7th and 8th November Vishal on 07838290143, Harneet on 09582158693


22 New Delhi 28th and 29th November 2015 Vishal on 07838290143, Harneet on 09582158693

23 Mumbai 21st and 22nd November 2015 Nihal on 9619359592

24 Mumbai 28th and 29th November 2015 Nihal on 9619359592

25 Mumbai 7th and 8th November Manish on 8451057943


Contact us

Email:

Send us an email at [email protected] mention the name, date and venue of the programme you have

attended or wish to attend, for faster resolution of your queries.

SMS:

SMS EDU to 5676766 for more details

Sr.No City Dates For More Information & Registration call:

Schedule for Fast-track Programme on Technical Analysis


Schedule for Techno Derivatives Programme


Schedule for MarketMaster Programme

26 Rajahmundry 3rd Jan 2016 Ruchi on 8297362323

27 Visakhapatnam 8th November 2015 Ruchi on 8297362323

28 Surat 1st November 2015 Yogesh on 8238053563

29 New Delhi 5th and 6th December 2015 Vishal on 07838290143, Harneet on 09582158693

30 Hyderabad 21st and 22nd November 2015 Ruchi on 8297362323

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