Monthly Strategy

Tragedy of the Commons

December 13, 2013

Destimoney Research

Developed markets continues to target nominal growth led by Japan, while emerging markets fixated on tapering fears and trying to avoid being the turkey.
World Indices (% chg) in November 2013
NIKKIE 225 TOPIX DAX SHANGHAI COMPOSITE DOW NASDAQ HANG SENG KOSPI CAC 40 FTSE 100 ASX 200 INDIAN NIFTY -5%
Source: Bloomberg

In U.S., markets continued to move ahead with major indices crossing key threshold levels for the month: 16,000 for Dow Jones, 1800 for S&P 500 and 4,000 for Nasdaq. The positive momentum for the markets in U.S. was marked by good jobs data and mixed housing data, while fears of Feds tapering capped gains. In Europe, markets too rallied as the European Central Bank (ECB) cut its main lending rate by 0.25% to 0.25% and has revised its economic forecasts for the region upwards. In Japan, markets ended the month with higher year to date gains than other developed markets as the Bank of Japan continues to move aggressively to bolster the country's economy through aggressive monetary easing, temporary fiscal stimulus, and structural reform aimed at ending Japan's 20 years of deflation. While emerging markets stocks fell amid weak data for their respective economies and fears of U.S. fed tapering, Chinese markets rallied post the third plenum meet as it promised reforms.

0%

5%

10%

December 13, 2013

Indian markets remained volatile for the month as inflation continues to remain high, and amid tapering fears.
In November, Indian markets traded with high volatility and ended marginally negative ahead of state assembly elections in four major states. Nifty ended down 123.05 points (-1.95%) at 6176.1 while the Sensex ended down 372.59 points (-1.76%) at 20791.9. During the month RBI continued its short term goal of cushioning Indias forex reserves in anticipation of tapering of stimulus by the U.S. Fed. It allowed qualified foreign investors (QFIs) and foreign institutional investors (FIIs) to invest in the credit enhanced bonds up to a limit of $5 billion. The Government too is preparing to persuade major trading partners including Japan, Iraq and Venezuela to accept rupee payments for some of their exports. The finance ministry has already agreed in principle to lobby Venezuela to accept rupees, while China is already keen to start Yuan-Rupee trade. The Foreign Investment Promotion Board (FIPB) has approved 20 proposals worth Rs 916 crore including Singapore Airlines proposal of Rs 303.18 crore to form a partnership with Tata Sons to start a full service airline. Foreign Direct Investment (FDI) in the pharma sector more than doubled to $ 1.07 billion during April-August' 2013 as compared to $ 487 million during the same period last year. The empowered group of ministers (EGoM) on telecom, paving way for big ticket mergers and consolidation in the telecom sector has approved the 'mergers and acquisitions' (M&A) guidelines and allowed an entity formed by merger between two or more mobile service providers to hold up to 50 percent of the market share in a circle. 10th round of New Exploration Licensing Policy (NELP) auction would be announced by January 15, 2014. The Oil Minister further added that the government would auction 86 hydrocarbon blocks out of which 54 blocks have received clearances from various agencies and the rest of blocks will get approval by the time of bidding in January next year. The auction will be the second highest offering of blocks since the advent of NELP in 1997.
December 13, 2013

Capital Goods index rose 7.3% for the month as market bet on bottoming of the capex cycle; Defensives witnessed selling pressure as funds got allocated to high beta
Sector wise performance during the month
BSE Cons. Durable Index BSE FMCG Index BSE Oil & Gas Index BSE Bankex BSE Healthcare Index BSE IT Index BSE Realty Index BSE Power Index BSE Auto Index BSE Metal Index BSE Capital Goods Index -14% -7% 0% -8.9% -3.7% -3.2% -2.7% 6,050 -1.1% -0.7% 0.9% 1.7% 2.0% 2.6% 7.3% 7% 14% 5,950 1-Nov 5-Nov 9-Nov 13-Nov 17-Nov 21-Nov 25-Nov 29-Nov
NIFTY (LHS)

INDIAN NIFTY Performance in November 2013

6,350 6,250 6,150

Source: Bloomberg

December 13, 2013

FIIs continue to increase their participation in equity market while DIIs remained net sellers with investors redeeming investments as market climbs higher
FIIs continued to inject liquidity in November 2013
19.5 13.0 ` Bn 6.5 0.0 -6.5 1-Nov 5-Nov 6-Nov 7-Nov 8-Nov 11-Nov 12-Nov 14-Nov 18-Nov 19-Nov 20-Nov 21-Nov 22-Nov 25-Nov 26-Nov 27-Nov 28-Nov 29-Nov ` Bn

DIIs remained net sellers in November 2013

4.6 2.3 0.0 -2.3 -4.6 1-Nov 5-Nov 6-Nov 7-Nov 8-Nov 11-Nov 12-Nov 13-Nov 14-Nov 18-Nov 19-Nov 20-Nov 21-Nov 22-Nov 25-Nov Oct-13 26-Nov 27-Nov

Apr-Nov FII inflows amount to `421 bn

375 250 ` Bn 125 0 -125 Mar-13 Jun-13 Jan-13 Jul-13 Aug-13 Sep-13 Apr-13 Nov-12 Oct-13 Feb-13 May-13 Nov-13 Dec-12 ` Bn

Apr-Nov DII withdrawals amount to `138 bn

60 30 0 -30 -60 Jun-13 Jan-13 Jul-13 Mar-13 May-13 Aug-13 Nov-12 Sep-13 Apr-13 Feb-13 Nov-13 Dec-12

Source: Bloomberg, Destimoney Research

December 13, 2013

Industrial output declined by 1.8% YoY in November 2013, a four month low despite it being a festival month as against 2% growth in previous month
IIP Growth (%) trend (2004-05 base)
10.5%
8.4%

7.0%
3.5%

3.5% 0.0%

2.5% 2.0%

2.5% 1.5% 0.6%

2.6% 0.4%

2.0%

-0.1% -1.3% -2.0%

-0.7%

-1.0% -0.6% -2.5% -1.8% -1.8%

-3.5% Jun-12 Jan-13 Jul-12 Sep-12 Apr-12 Aug-12 Apr-13 Oct-12 Feb-13 May-12 Mar-13 Nov-12 Dec-12

Jun-13

Jul-13

Aug-13

Sep-13

Source: CSO

Manufacturing witnessed a decline in production by 2% against a high 9.9% growth a year ago. Mining contracted 3.5% against 0.2% growth in October 2012. Electricity generation rose 1.3% against a 5.5% growth. The consumer durable segments, which had been declining throughout the first half of the year, contract for the ninth consecutive month in October. The consumer durable goods output went down by 12% in October against a rise of 16.7% a year ago.

December 13, 2013

May-13

Oct-13

India's exports picked up aided by weak rupee while imports were muted

Deficit in November stood at $9.22 billion compared to $10.56 billion in October

48 36 24 12 0 Mar-13 Jun-13 Jan-13 Jul-13 Aug-13 Sep-13 Apr-13 Nov-12 Oct-13 Feb-13 May-13 Nov-13 Dec-12

Imports ($ bn)
Source: Bloomberg

Exports ($ bn)

Oil imports contracted by 8.1% YoY and came at $12.9 bn in November as against $15.2 bn in the previous month. Non-oil imports have continued to contract for the sixth consecutive month. Gold and Silver imports remain muted at $1.05bn in November as against $1.4 bn in October.

December 13, 2013

Inflation worries continue

Food, Fuel, Core & WPI Inflation YoY trend
24% 16% 8% 0% -8% Apr-10 Apr-11 Apr-12 Apr-13 Jan-10 Jan-11 Jan-12 Jan-13 Jul-10 Jul-11 Jul-12 Jul-13 Oct-10 Oct-11 Oct-12 Oct-13

Crude prices cooled off marginally from Aug end (USD/bl)

115 112 109 106 103 14-Oct 20-Oct 14-Sep 20-Sep 26-Sep 26-Oct 2-Sep 8-Sep 1-Nov 7-Nov 2-Oct 8-Oct

Food

Fuel

Core

WPI Inflation

Source: CSO, Bloomberg

WPI Inflation rose to 7% in October 2013 against 6.46% in September 2013. Fuel & power inflation in October was 0.09% as against 10.08% a month ago. Core inflation too spiked up to 2.6% against 2.1% in the previous month. Food inflation came in at -0.40% in October 2013 against 18.4% a month ago. CPI core inflation in November 2013 rose to 11.24% against 10.09% in October 2013.

December 13, 2013

Post October policy, RBI continues to cushion Indias forex reserves ahead of uncertainty in US monetary policy
Key rate movement over the years
11.0 9.0 7.0 5.0 3.0 Jul-10 Jul-11 Jul-12 Sep-10 Sep-11 Sep-12 Jul-13 Nov-10 Nov-11 Nov-12 Sep-13 Feb-11 Feb-12 Apr-10 Apr-11 Apr-12 Feb-13 Apr-13 Nov-13

REPO
Source: RBI

REVERSE REPO

CRR

MSF

RBI reduced the gap between repo rate and MSF to 100 bps from 200 bps. In the 29 October 2013 policy review, RBI had reduced the MSF from 9.00% to 8.75% and increased the repo from 7.50% to 7.75%. Reverse repo automatically got reset to 6.75%. Earlier on October 7, RBI had administered another 50 bps reduction in MSF to 9%.

December 13, 2013

Eurozone indicators improving

Business Climate Index

0.5 0.0 -0.5 -1.0 -1.5 Jun-12 Jan-12 Oct-12 Jul-13 Nov-13 Feb-13

Industrial Confidence (YoY %)

0.0 -5.0 -10.0 -15.0 -20.0 Jun-12 Jan-12 Jul-13 Oct-12 Feb-13 Nov-13

Services Confidence (YoY %)

0.0 -4.0 -8.0 -12.0 -16.0 Jun-12 Jan-12 Oct-12 Feb-13 Jul-13 Nov-13

Source: Bloomberg

December 13, 2013

While US indicators have also recovered since the shutdown

ISM PMI Manufacturing Trend

58 56 53 51 48 Jun-11 Jul-12 Mar-12 Mar-13 Nov-11 Nov-12 Jul-13 Nov-13 60 58 55 53 51 Jun-11

ISM PMI Non Manufacturing Trend

Nov-11

Nov-12

Mar-12

ISM New Orders Index

65.0 60.0 55.0 50.0 45.0 Jun-11 Mar-12 Mar-13 Jul-12 Nov-11 Nov-12 Jul-13 Nov-13 400 300 200 100

Net Employment Addition Monthly (000)

0 ISM PMI - Oct-11 New Orders Index

Mar-12

Aug-12

Jan-13

Mar-13

Jun-13

Nov-13

Source: Bloomberg

December 13, 2013

Nov-13

Jul-12

Jul-13

We change our stance in the short-term to a cautiously positive view on cyclicals

NIFTY historical P/E multiple (x)
28 23 18 13 8 Jun-09 Jun-12 Jan-10 Apr-10 Sep-11 Jan-13 Jul-10 Mar-09 May-11 Aug-08 Mar-12 Apr-13 Aug-13 Nov-10 Feb-11 Nov-13 Oct-09 Dec-08 Dec-11 Oct-12

NIFTY P/E
Source: Bloomberg

5 Yr Average PE

We have shifted our stance towards a positive view on cyclical sectors and expect markets to trade with positive bias in short-term. We expect that capital spending could pick up post the national elections and accordingly have adjusted our industry exposure in the model portfolios. We expect NIFTY to reach 6,800 levels by Dec, 2014.

December 13, 2013

Model Portfolio Update

December 13, 2013

All the three portfolios continue to outperform NIFTY and average mutual fund performance
Model Portfolios Performance Summary
58% 44% 29% 15% 0% 3M 6M 1Y 2Y Incpt
Conservative Nifty

58% 33.5% 44% 29.7% 29% 15% 0% 3M 6M 1Y 2Y

Nifty

58% 44% 29% 15% 0% Incpt 3M 6M 1Y 2Y Incpt

Moderate Aggressive Nifty

36.0%

(Since Mar 31, 2011) Relative to NIFTY Relative to Top Quartile Relative to Av. MF

Conservative 27.2% 15.5% 23.2%

Moderate 23.4% 11.6% 19.3%

Aggressive 29.7% 17.9% 25.6%

Ahead of the benchmark NIFTY Index and average mutual funds. Also, all the three model portfolios are in the top quartile of mutual fund performance.

December 13, 2013

Portfolio Changes

In Conservative Portfolio, we are Exiting Bluedart Express Introducing EIH Ltd with an allocation of 5% of AUM In Moderate Portfolio, we are Introducing Kalpataru Power Transmission with an allocation of 5% of AUM In Aggressive Portfolio, we are Exiting Pfizer Introducing HCC with an allocation of 5% of AUM Stop-loss for technical calls In Aggressive Portfolio Godrej Consumer Products Ltd `650

December 13, 2013

Conservative Portfolio
Sectoral Allocation NIFTY
Technology 18.8% Power 4.4% Pharma 6.1% Telecom Auto 3.2% 8.0% Capital Goods 3.3%

Sector
Agri

Company
Bayer Cropscience Ltd

Model Portfolio Wt.

7.9% 7.9% 4.2% 4.2% 14.3% 4.5% 4.3% 5.5% 10.9% 4.9% 6.0% 13.4% 5.3% 8.1% 22.8% 6.0% 7.9% 4.2% 4.6% 5.0% 5.0% 12.5% 2.5% 5.2% 4.8% 3.6% 3.6% 5.5% 100.0%

Auto Bosch Ltd Capital Goods ABB India Ltd Larsen & Toubro Ltd Siemens Ltd Chemicals Asian Paints Ltd Pidilite Industries Ltd Financials HDFC HDFC Bank Ltd FMCG GSK Consumer Healthcare Hindustan Unilever Ltd ITC Ltd Nestle India Ltd Hotels
Capital Goods 14.3%

Oil & Gas 15.8% Metals & Mining 8.9% FMCG 9.0%

Cement 2.7% Chemicals 1.2% Construction 0.7% Diversified 0.6% Financials 17.6%

Conservative Portfolio
Cash Power5.5% 3.6% Pharma 12.5% Agri 7.9% Auto 4.2%

EIH Ltd Pharma Cipla Ltd Glaxosmithkline Pharmaceuticals Sanofi India Ltd

Hotels 5.0% Chemicals 10.9% FMCG 22.8% Financials 13.4%

Power NTPC Ltd Cash

December 13, 2013

Moderate Portfolio
Sectoral Allocation NIFTY
Technology 18.8% Power 4.4% Pharma 6.1% Telecom Auto 3.2% 8.0% Capital Goods 3.3%

Sector
Agri

Company
Bayer Cropscience Ltd

Model Portfolio Wt.

3.8% 3.8% 5.4% 5.4% 10.6% 5.0% 5.6% 18.9% 9.6% 9.3% 3.7% 3.7% 14.6% 6.6% 4.9% 3.1% 13.9% 5.1% 8.8% 3.5% 3.5% 10.8% 7.3% 3.6% 7.3% 7.3% 5.1% 5.1% 2.3% 100.0%

Auto Ashok Leyland Ltd Capital Goods Kalpataru Power Transmission Larsen & Toubro Ltd Chemicals Asian Paints Ltd Pidilite Industries Ltd Education MT Educare Ltd Financials HDFC HDFC Bank Ltd IDFC Ltd FMCG ITC Ltd Nestle India Ltd Logistics Gujarat Pipavav Port Ltd Pharma
Capital Goods 10.6%

Oil & Gas 15.8% Metals & Mining 8.9% FMCG 9.0%

Cement 2.7% Chemicals 1.2% Construction 0.7% Diversified 0.6% Financials 17.6%

Moderate Portfolio
Power 7.3% Technology 5.1% Cash 2.3% Agri 3.8% Auto 5.4%

Pharma 10.8% Logistics 3.5%

Glaxosmithkline Pharmaceuticals Merck Ltd Power NTPC Ltd Technology

Chemicals 18.9% FMCG 13.9% Financials 14.6% Education 3.7%

Just Dial Ltd Cash

December 13, 2013

Aggressive Portfolio
Sectoral Allocation NIFTY
Technology 18.8% Power 4.4% Pharma 6.1% Telecom Auto 3.2% 8.0% Capital Goods 3.3%

Sector
Agri

Company
Bayer Cropscience Ltd

Model Portfolio Wt.

4.9% 4.9% 6.9% 4.0% 2.9% 13.4% 8.3% 5.1% 14.8% 5.2% 9.6% 5.0% 5.0% 17.7% 7.3% 5.6% 4.8% 14.7% 3.5% 3.9% 7.3% 3.3% 3.3% 6.4% 6.4% 13.0% 100.0%

Auto Ashok Leyland Ltd Mahindra & Mahindra Ltd Capital Goods Alstom India Ltd Siemens Ltd Chemicals Asian Paints Ltd
Pidilite Industries Ltd

Oil & Gas 15.8% Metals & Mining 8.9% FMCG 9.0%

Cement 2.7% Chemicals 1.2% Construction 0.7% Diversified 0.6% Financials 17.6%

Construction HCC Financials HDFC Bank Ltd ICRA Ltd

IDFC Ltd

Aggressive Portfolio
Agri 4.9% Cash 13.0% Technology 6.4% Logistics 3.3% Auto 6.9% Capital Goods 13.4%

FMCG Godrej Consumer Products Ltd ITC Ltd

Nestle India Ltd

Logistics Gujarat Pipavav Port Ltd

Chemicals 14.8%

Technology Just Dial Ltd Cash

FMCG 14.7%

Financials 17.7%

Construction 5.0%

December 13, 2013

Current Portfolio Composition (for ` 1 mn invested as on Mar 31, 2011)

Conservative Portfolio
Particulars Agri Bayer Cropscience Ltd Auto Bosch Ltd Capital Goods ABB India Ltd Larsen & Toubro Ltd Siemens Ltd Chemicals Asian Paints Ltd Pidilite Industries Ltd Financials HDFC HDFC Bank Ltd FMCG GSK Consumer Healthcare Hindustan Unilever Ltd ITC Ltd Nestle India Ltd Hotels EIH Ltd Pharma Cipla Ltd Glaxosmithkline Pharmaceuticals Sanofi India Ltd Power NTPC Ltd. Cash TOTAL Shares 60 6 88 54 120 128 260 86 164 17 183 177 12 1,243 83 26 22 326 Value (` ) 103,776 53,113 60,403 56,951 72,558 64,570 79,911 70,726 107,543 78,180 105,957 56,498 61,189 66,749 32,420 67,453 63,360 47,498 86,502 1,335,358

Moderate Portfolio
Particulars Agri Bayer Cropscience Ltd Auto Ashok Leyland Ltd Capital Goods Kalpataru Power Transmission Larsen & Toubro Ltd Chemicals Asian Paints Ltd Pidilite Industries Ltd Education MT Educare Ltd Financials HDFC HDFC Bank Ltd IDFC Ltd FMCG ITC Ltd Nestle India Ltd Logistics Gujarat Pipavav Port Ltd Pharma Glaxosmithkline Pharmaceuticals Merck Ltd Power NTPC Ltd Technology Just Dial Ltd Cash TOTAL Shares 28 4,194 738 68 247 391 508 104 96 376 208 22 799 36 73 651 54 Value (` ) 48,429 69,620 64,833 71,716 124,599 120,174 47,904 85,530 62,952 40,552 66,394 112,179 45,703 93,397 45,986 94,851 65,140 36,991 1,296,950

Aggressive Portfolio
Particulars Agri Bayer Cropscience Ltd Auto Ashok Leyland Ltd Mahindra & Mahindra Ltd Capital Goods Alstom India Ltd Siemens Ltd Chemicals Asian Paints Ltd Pidilite Industries Ltd Construction HCC Financials HDFC Bank Ltd ICRA Ltd IDFC Ltd FMCG Godrej Consumer Products Ltd ITC Ltd Nestle India Ltd Logistics Gujarat Pipavav Port Ltd Technology Just Dial Ltd Cash TOTAL Shares 38 3,310 40 296 113 140 425 5,353 150 50 611 53 167 19 781 71 Value (` ) 65,725 54,946 37,970 112,554 68,325 70,623 130,624 67,983 98,363 75,918 65,896 46,494 53,306 96,882 44,673 85,647 183,799 1,359,729

Note: The shares are adjusted for stock splits and bonus

December 13, 2013

Portfolio Changes Summary

Date 03-Dec-13 20-Nov-13

Conservative Exited - Bluedart Added - EIH Ltd with 5% allocation

Moderate Added - Kalpataru Power with 5% allocation

Aggressive Exited - Pfizer Ltd Added - HCC with 5% allocation Reduced - Justdial to 7.5% and Pfizer to 6.4% of AUM Added -Siemens Ltd with 5% allocation Added -Siemens Ltd with 5% allocation Exited - Glenmark Pharma Added - Ashok Leyland with 4% allocation Exited - Bluedart Express Ltd Added - IDFC Ltd with 5% allocation Exited - Jubilant Foodworks Reduced - Bayer Cropscience to 5% of AUM Added - GPPL, M&M with 3% allocation each

14-Nov-13 12-Nov-13 09-Oct-13 07-Oct-13

Added - ABB Ltd with 4% allocation Added - L&T with 4% allocation Exited - Cummins India Ltd Added - Siemens with 5% allocation

Added - Ashok Leyland with 5% allocation Exited - Elgi Equipment Ltd Added - L&T with 5% allocation Exited - Bluedart Express Ltd Added - IDFC Ltd with 3% allocation Reduced - NTPC by 3% of AUM Added - GPPL with 3% allocation

30-Sep-13 16-Aug-13 31-Jul-13

Exited - SBI Added - MT Educare with 4% allocation Increased - HDFC Bank to 8% Added - HDFC Bank with 5% allocation Exited- BHEL Exited - L&T, Procter & Gamble Hygiene and Reduced - HUL, GSK Consumer, HDFC, Nestle, ITC Healthcare Increased - NTPC to 10% of AUM by 1% each Added - HDFC Bank with 5% allocation

23-Jul-13 19-Jul-13 25-Jun-13 07-Jun-13 31-May-13 10-May-13 14-Mar-13 08-Mar-13 01-Mar-13 12-Feb-13

Exited - Mahindra & Mahindra, Trent Ltd Added - Cummins India Ltd with 5% allocation

Exited - Mahindra & Mahindra Added - Just Dial Ltd with 3% allocation Replaced - Hindustan Unilever by Nestle India

Reduced -Bluedart by 2% of AUM Exited- HDFC Bank

Reduced -Bluedart by 2% of AUM

Exited - Jyothy Labs, Speciality Restaurants Increased - HDFC to 7.5%,Asian Paints to 10%

Increased - HDFC Bank to 8% Exited - L&T, Sobha Developers, PNB Reduced - Pidilite to 10%, Nestle to 9%, ITC to 5% of AUM Increased - Pfizer to 10% of AUM Added - HDFC Bank with 5% allocation Increased- Just Dial Ltd to 7% of AUM Exited - Mahindra & Mahindra, Wipro Ltd Added - Just Dial Ltd with 3.5% allocation Exiting Marico as stoploss got triggered Replaced - Hindustan Unilever by Nestle India Added - GCPL with 4% allocation Reduced -Bluedart by 2% of AUM Exited - Titan Industries Added -Glenmark Pharma(5% ) Replaced - Dabur India by Titan Industries Exited - Jyothy Labs, Merck, Speciality Restaurants

Continued

December 13, 2013

Portfolio Changes Summary

Date

Conservative

Moderate

Aggressive

06-Feb-13 31-Jan-13

Exited- Crisil Exited -Power Grid Corporation, State Bank of India, Tata Power Added -Asian Paints (5%),HDFC Bank (5%) Exited -Infosys Added - Hindustan Unilever (8%) Exited - Gail India ,Merck Reduced - ITC to 5% of AUM Added - Pidilite Industries , Glaxosmithkline Pharmaceuticals, Bosch with 5% each Reduced - Bluedart to 4%, M&M to 3%

23-Jan-13 11-Jan-13

Exited- Crisil Exited - Pfizer, TCS Reduced - Bayer Cropscience to 3% of AUM Increased - Asian Paints to 8%,Pidilite Industries to 8% of AUM Increased- Hindustan Unilever to 8% of AUM Reduced - ITC to 5% Increased - Glaxosmithkline Pharmaceuticals to 6% Added - Pidilite Industries (4%), Elgi Equipments Reduced- Bluedart to 4%, M&M to 3%, Jyothy Labs to 4% Exited -Tube Investments, Gillette India, IFCI Added - Asian Paints(5%), Specialty Restaurant (5%),Procter & Gamble Hygiene and Healthcare (4%) Replaced - Colgate Pamolive by Gillette India

Exited -Tube Investments of India Added - Pidilite Industries (10%)

Increased- Hindustan Unilever to 8% of AUM Reduced- ITC to 5% of AUM Added - Pidilite Industries (5%), Jubilant Foodworks (5%) Added -Specialty Restaurant (5%) and Marico (4%) Reduced - Bluedart to 4%, M&M to 3%,Jyothy Labs to 5%, Tube Investments to 2.5%,Sobha Developers to 2% Exited - Gillette India, IFCI Increased -Asian Paints to 5% Replaced - Britannia Industries by Dabur India, Colgate Pamolive by Gillette, Jain Irrigation by Asian Paints Exited Jain Irrigation DVR Added - Colgate Palmolive (5%) Exited -Pantaloon Retail Exited - Ajanta Pharma Increased - M&M to 6% Added - Bayer Crop Science (5%), Pfizer (7%) Exited -Crompton Greaves, Allahbad Bank, HDFC Bank,Tamilnadu Newsprint Increased - Britannia by 3%

30-Aug-12

30-Apr-12

31-Jan-12 30-Nov-11 25-Nov-11 16-Nov-11 15-Nov-11 01-Nov-11 01-Nov-11

Added - Colgate Pamolive (5%) Exited - Asian Paints Exited -Maruti, Pantaloon Retail Increased - M&M to 6% Added - Bayer Crop Science (5%) Exited -DLF, HDFC Bank,ICRA Increased - M&M to 6% Added - Bayer Crop Science (5%), Pfizer (5%) Exited- BHEL, Sobha Developers, PNB, Reilance Industries

Continued

December 13, 2013

Portfolio Changes Summary

Date
31-Oct-11

Conservative
Added - M&M (5%), Merck (5%)

Moderate
Added - M&M (5%), Merck (5%)

Aggressive
Added - Merck (5%), Britannia Industries (3%) Increased - M&M to 6% Replaced - Grasim by Ajanta Pharma Reduced - Hindustan Unilever to 3.7% of AUM Replaced - Dabur India by Hindustan Unilever, Sun Pharmaceuticals by Grasim Exited - Maruti Suzuki Replaced - Apollo Hospital Enterprises by Sun Pharma, P&G Hygine and Healthcare by Dabur India Exited - ICICI Bank, Kotak Mahindra Bank Reduced - Allahabad Bank by 2%, PNB by 3% Introduced -HDFC Bank (4%) and ITC (6%) Increased- P&G Hygiene by 1% of AUM Replaced- Lupin byApollo Hospital Enterprises, EIH by P&G Hygine and Healthcare Reduced - Crompton Greaves by 2% and L&T by 2% of AUM Increased - Allahbad Bank to 5% of AUM Replaced - Pfizer by Lupin, Aditya Birla Nuvo by EIH Reduced - Maruti Suzuki to 2%, M&M to 2% of

30-Sep-11 19-Sep-11 30-Aug-11 Exited - Maruti Suzuki

Replaced - GSK Consumer Healthcare by Asian Paints Exited - Maruti Suzuki Replaced -Gillette India by GSK Consumer Healthcare Exited - ICICI Bank, Kotak Mahindra Bank Reduced- IFCI , PNB and SBI by 1% each Introduced - HDFC (4%) and HUL (4%) Increased - NTPC by 2.5% of AUM Replaced- Tata Power by Gillette India

09-Aug-11

29-Jul-11 20-Jul-11 Reduced-DLF by 2% of AUM

Reduced - Sobha Developers by 2% of AUM

30-Jun-11 27-Jun-11 Reduced- Maruti Suzuki to 2% of AUM

Replaced - Dabur by Tata Power

16-Jun-11 31-May-11

19-May-11 18-May-11 05-May-11 29-Apr-11

Reduced - Blue Dart to 4.5% of AUM

31-Mar-11

Portfolio Incorporated

Added - PNB 4% of AUM Reduced -Maruti Suzuki to 2% of AUM AUM Exited - Suprajit Engineering Exited - GEI Industrial Systems Increased - SBI 7%, NTPC 6% of AUM Added - PNB 7% of AUM Replaced - Britannia Industries by Dabur Replaced - Godrej Consumer Products by Pfizer Added - Tube Investments of India 3.2% of AUM Added - Tube Investments of India 4.3% of AUM Replaced - Exide by Britannia Industries Replaced- Lupin by Aditya Birla Nuvo,Colgate Palmolive Godrej Consumer Products Exited - Dr Reddy's Lab Exited - ONGC Replaced - Deepak Fertilizers by Lupin Reduced - Blue Dart to 4.5% of AUM Reduced - Bluedart to 4.5% of AUM Replaced - Biocon by ONGC, Onmobile by Replaced - Elder Pharma by Jain Irrigation, Suprajit Engineering Onmobile by GEI Industrial, Godrej Industries by Dr. Reddy' lab, Opto Circuits by Deepak Fertilisers, Gitanjali Gems by Colgate Palmolive Portfolio Incorporated Portfolio Incorporated

December 13, 2013

Destimoney Securities Private Limited

6th Floor, "A" Wing, Tech-Web Centre, New Link Road, Oshiwara, Near Behram Baug, Jogeshwari (West), Mumbai - 400102

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December 13, 2013