Aug 17, 2015

Weekly Mutual Fund and Debt Report

RETAIL RESEARCH
Equity Markets

Weekly Statistics
Key Indices

Key benchmark indices edged lower in the week ended Friday, 14 August 2015. After edging lower in first
three trading days of the week following a surprise devaluation of the yuan by China, stocks recovered on
penultimate day before rallying on last trading day of the week on hopes of interest rate cut by the
Reserve Bank of India (RBI) as wholesale price index as the annual rate of inflation contracted to a decade
low in July. The barometer index, the S&P BSE Sensex regained the psychological 28,000 mark after diving
below that level during the week.
In the week ended Friday, 14 August 2015, the 30-share S&P BSE Sensex declined 0.6% to settle at
28,067.31. The 50-unit CNX Nifty fell 0.54% to settle at 8,518.55. The BSE Mid-Cap index fell 0.9% to settle
at 11,453.78. The BSE Small-Cap index declined 2.79% to settle at 11,766.78. The fall in both these indices
was higher than the Sensex's decline in percentage terms.

Outlook for the current weeks

Trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional
investors (DIIs), the movement of rupee against the dollar, crude oil price movement and the progress of
monsoon rains will dictate trend on the bourses in the near term.
Shares of public sector oil marketing companies (PSU OMCs) will be in focus as they undertake a review
of fuel prices during the middle of the month. The review takes place during the middle of the month and
on the last day of the month based on the average imported oil price in the preceding fortnight.
Investors continue to watch the progress of the monsoon rains which will have a bearing on food prices
and rural income. India's weather office, the India Meteorological Department (IMD), said in a weekly
report issued on 13 August 2015, that the rainfall was 31% below normal for the country as a whole
during the period from 6 August to 12 August 2015. In its separate daily monsoon update issued on 13
August 2015, IMD said that for the country as a whole, cumulative rainfall during this year's monsoon
season was 9% below the Long Period Average (LPA) until 13 August 2015.

Global Markets
U.S. stocks closed higher preserving slim gains over a tumultuous week marked by thin summertime
volumes, turmoil abroad and hand-wringing over the timing of the Federal Reserve's plans to raise
interest rates.
The S&P 500 ended up 0.7% for the week, while the Dow rose 0.6%, and the Nasdaq finished the week up
0.1%.

14-August

% Chg

Sensex

28067

-0.60

Nifty

8519

-0.54

DJIA

17477

+0.60

Nasdaq

5048

+0.09

FTSE

6551

-2.50

DAX

10985

-4.40

Hang Seng

23991

-2.29

Nikkei

20519

-0.99

Bovespa

47508

-2.20

Indonesia Jakarta

4585

-3.88

Singapore Strait

3114

-2.58

MSCI Emerging Mkt

864

-2.40

MSCI World

1744

-0.20

Mutual Fund Categories watch

1 Week
Absolute

1 Month
Absolute

3 Months
Absolute

Arbitrage Funds

0.1

0.48

1.62

3.9

7.87

8.48

Balanced - Debt

0.12

1.1

2.1

1.74

12.14

13.13

Balanced - Equity

-0.5

1.65

4.27

1.45

18.6

20.28

Equity - Banking

-1.06

0.06

4.7

-2.26

24.81

20.58

Equity DivYield

-1.39

1.75

5.7

1.79

21.76

21.57

Equity - Infras

-2.65

-0.37

5.05

1.39

19.1

18.76

Equity - LARGE

-0.87

1.81

5.48

0.61

20.31

20.93

Equity - MID

-1.91

2.5

8.74

6.43

36.44

32.98

Equity - MULTI

-1.32

1.77

5.91

1.93

23.61

23.37

Equity - SMALL

-2.31

2.44

8.54

5.78

36.21

31.45

Equity - FMCG

-1.61

2.48

5.14

-1.16

21.08

18.58

Equity - Infotech

3.28

9.65

10.92

-0.05

19.98

28.23

Equity - Pharma

4.98

11.93

15.89

46.29

35.77

ELSS

-1.08

2.01

6.05

1.58

22.96

23.92

Gold ETFs

4.07

-1.23

-6.63

-5.43

-10.63

-6.02

Gilt Funds

0.56

1.32

1.93

1.73

12.44

9.17

Income Funds

0.41

1.15

2.13

2.88

10.6

8.8

Liquid Funds

0.14

0.62

1.92

3.93

8.19

8.46

MIP

0.14

1.25

2.74

2.69

12.2

10.59

Short Term Income

0.24

0.9

2.33

4.12

9.71

9.05

Category Name

6 Months
Absolute

1 Year
CAGR

3 Years
CAGR

Note: Trailing Returns up to 1 year are absolute and over 1 year are CAGR. NAV/index values are as on Aug 14, 2015.

RETAIL RESEARCH

G sec Markets

10 Year G sec Benchmark move:

Indian bond yields ended lower during the week ended August 14, 2015.
The G sec bond yield fell on Monday due to lack of an open market bond sale announcement.
Speculations that the slide in crude oil prices will help slow CPI inflation gains from a nine-month high
also added pressure on the yield to drop to one month low.
Prices of the Government bonds ended slightly lower on Tuesday. Bond market remained relatively
resilient. Lack of fresh triggers and caution ahead of release of CPI inflation kept the market in a narrow
band.
Prices of the Government bonds ended steady on Wednesday as weakness in the rupee against the dollar
was offset by lower crude oil prices and expectation of benign retail inflation data.
Upbeat market sentiment owing to better-than-expected CPI inflation led to gap up opening in bond
market. G sec prices ended higher on Thursday after inflation slowed down more than expectations
which brightened prospects of a rate cut by the RBI.

Liquidity:

Following the strong opening in previous session, bond market opened on steady note- holding onto its
gains on Friday. Bond yields continued to ease on hopes that RBI maybe compelled to cut interest rates
following Yuan devaluation.
Hence, the yields of the new 10-Year benchmark 7.72% GS 2025 closed down at 7.75% (Rs. 99.81) on
Friday against the last week close of 7.81%.

Outlook for the week

We feel that the new 10-year G Sec yields could trade in the 7.65% - 7.90% band for the week.

Liquidity, Call & CBLO

RBI infused average gross liquidity via Repo under LAF window worth Rs. 3,633 Cr in this week compared
to an infusion of Rs. 2,390 Cr in previous week. Infusions via the MSF route averaged Rs. 248 Cr.
The Call rate ended at 7.07% versus 7.12% compared to previous weeks closing. The CBLO ended at
7.19% compared to 6.78% in the previous week.

RETAIL RESEARCH

Debt Securities Benchmarks watch

Debt (%)

14-Aug

07-Aug

Call Rate

6.80

7.25

Change (bps)
-45

CBLO

7.15

5.50

+165

Repo

7.25

7.25

Reverse Repo

6.25

6.25

0.

10 Year G sec

7.75

7.81

+6

LIBOR UK

0.59

0.58

+1

LIBOR USA

0.31

0.30

+1

LIBOR Europe

-0.02

-0.02

0.00

T Bill

AAA Corporate Bond Spread over Gsec:

The 91-Days T-Bill auction worth Rs 8,000 crore was fully subscribed (7.36% of cut off yield). The 364-Days
T-Bill auction worth Rs 6,000 crore was also fully subscribed (7.55% of cut off yield). RBI announced 91
Day T-bill auction and 364 Day T-bill auction for notified amount of Rs 9,000 and Rs 5,000 Cr respectively
to be held on 19-Aug-15.

Security

AAA Corporate Bond Spread over Gsec

14-Aug

1 Year
3 Year
5 Year
10 Year

07-Aug

42
26
47
49

46
20
43
48

Date of Auction
19-Aug-15
19-Aug-15

Value (Rs. Crs)

9,000
5,000

Corporate Debts
Forthcoming Auctions;

The 10 year AAA bond ended at 8.34% compared to 8.41% in previous week. The 1 year AAA bond yield
was seen trading at 8.00% compared to 8.15% in the previous week.

Security
91 D T Bill
364 D T Bill

Currency
Certificates of Deposits:
th

The USD depreciated against the Euro by 1.30% for week ended 14 August, 2015.

Maturity

14-Aug

07-Aug

The dollar appreciated against the yen by 0.02% for the week.

3 Months
6 Months
1 Year

7.47
7.62
7.86

7.45
7.70
7.95

The USD depreciated against the pound by 0.96% for the week.
Commercial Papers:

Gold & Crude oil

th

International crude oil prices (WTI) ended negative at 3.12% for the week ended 14 August, 2015 to
th
close at USD 42.50 per barrel. International gold prices rose 1.72% for the week ended 14 August, 2015
to close at USD 1112.90 per troy ounce.

Maturity

14-Aug

07-Aug

3 Months
6 Months
1 Year

7.70
8.05
8.50

7.80
8.20
8.60

Commodity Update:

10 Yr G sec Benchmark Yields Movements in last one month.

RETAIL RESEARCH

Commodity

14-Aug

07-Aug

Change (%)

NYMEX Crude Oil ($/bbl)

Gold (oz/$)

42.50
1112.9

43.87
1094.10

-3.12
+1.r

Reliance Top 200 Fund- G

RETAIL RESEARCH

Key Points

Unit Growth of investments Vs. Benchmark(Rebased to 100)

Reliance Top 200 Fund, one of the above average performing schemes from Equity Diversified Large cap
category, showed better performance in the recent periods.
The scheme registered +26%, +26% and +15% of compounded returns for the one, three and five year
periods while the benchmark S&P BSE 200 posted +15%, +20% and +9% of returns respectively. Over the
same period, the category clocked +21%, +22% and +12% of CAGR returns respectively.
Reliance Top 200 Fund invests in companies whose market capitalization is within the range of highest
and lowest market capitalization of S&P BSE 200 Index.
The fund manager follows buy and hold strategy as its turnover ratio stood at 30%.The portfolio has been
churned moderately in last one year period as the scheme added 18 new stocks and exited from 17.
HDFC Bank, Tata Mot and ICICI Bank are the stocks topped in its latest portfolio having weights of 6.93%,
5.01% and 5.00% to its net assets respectively.
The expense ratio of 2.53% for the scheme is lower compared to the category (the category average has
been at 2.64%).
Rating agencies like Value research & Crisil assigned 3 star and CPR 3 respectively for the scheme.
These reflect above average performance of the scheme on generating high-risk adjusted returns.
The scheme is managed by Mr. Ashwani Kumar since Jun 2007. The corpus of the scheme as per latest
data was at Rs. 1,386 crore.
As far as risk measures are concerned, the scheme seems to be higher risky in the category given its
concentrated investment strategy. The scheme has generated 4.69% (category 4.26%) of Standard
Deviation that calculated from the monthly returns over the last three-year NAV history.
To conclude, though posted average performance during recent period, the scheme managed to deliver
th
better performance during long run (as far as 5 year returns are concerned, it holds 5 rank out of 55
schemes in equity diversified large-cap category).

RETAIL RESEARCH

Fund Performance Vis-a-vis Benchmark (Excess return):

Mutual Fund ready reckoner:

Equity - Diversified - Large CAP
5 Year
Return Since
Return
Inception

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

Birla Sun Life Frontline Equity - Plan A (G)

INF209K01BR9

167.50

9364

19.03

26.52

14.49

HDFC Equity Fund - (G)

INF179K01608

477.37

18032

11.86

23.41

ICICI Pru Focused Bluechip Equity Fund (G)

INF109K01BL4

30.02

9107

16.09

Reliance Top 200 Fund (G)*

INF204K01562

24.90

1386

DSP BR Focus 25 Fund (G)*

INF740K01532

18.16

UTI-Top 100 Fund (G)*

INF789F01869

50.61

Scheme Name

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade
Above
Average

24.40

ICICI Bank, HDFC Bank, Axis

RIL & Infosys

CPR 2

4 Star

Average

12.67

20.67

SBI, ICICI Bank, Infy, L&T &

Maruti Suzuki

CPR 3

2 Star

High

Average

23.73

14.62

16.56

HDFC Bank Ltd, Infosys Ltd, ICICI Bank

Ltd, Axis Bank & HCL Tech

CPR 2

5 Star

Below
Average

High

23.66

26.23

14.63

12.14

HDFC Bank, Tata Motors, ICICI Bank,

Maruti Suzuki Ind & L&T

CPR 3

3 Star

Above
Average

Above
Average

467

28.63

26.17

11.67

12.35

HDFC Bank, BPCL, TCS, Sun Pharma &

Maruti Suzuki India

CPR 3

3 Star

Above
Average

Average

854

21.62

22.67

13.08

12.96

HDFC Bank, Axis Bank, Infosys, ICICI

Bank & TCS

CPR 2

4 Star

Low

Above
Average

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade
Below
Average

Return
Grade

*-Recent performance of these schemes is good. Need to watch longer term performance.
Equity - Diversified - Multi CAP
5 Year
Return Since
Return
Inception

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

Franklin India High Growth Companies (G)

INF090I01981

30.38

2934

37.19

36.30

19.15

14.90

HDFC Bank, SBI, Maruti Suzuki , Axis

Bank & Idea Cellular

CPR 1

5 Star

Reliance Equity Opportunities Fund (G)

INF204K01489

76.05

11319

23.61

26.82

16.98

21.70

HDFC Bank, Divi's Lab, SBI, Bharat

Forge & Cummins India

CPR 2

3 Star

Average

Average

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Return
Grade

Reliance Small Cap Fund (G)

INF204K01HY3

25.52

1604

31.67

39.42

21.28

Vindhya Tele, Orient Cement, HDFC

Bank, LG Balak & Kalpataru Power

CPR 3

3 Star

Risk
Grade
Above
Average

ICICI Pru Value Discovery Fund (G)

INF109K01AF8

117.07

9770

26.86

33.09

19.86

25.21

ICICI Bank, HDFC Bank, RIL, Mahindra

& Mahindra & Wipro

CPR 2

4 Star

Low

Above
Average

Religare Invesco Mid N Small Cap

INF205K01DN2

36.70

439

33.65

36.56

21.63

20.12

Dish TV India, DB Corporation, Biocon,

Aditya Birla Nuvo & Sanofi Ind

CPR 3

4 Star

Below
Average

Above
Average

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

Equity - Tax Planning

5 Year
Return Since
Return
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade

31.32

5437

30.76

35.22

21.87

HDFC Bank, Kotak Mahindra Bank,

CPR 1

5 Star

Low

High

Scheme Name

High

Equity - Diversified - Mid n Small CAP

Scheme Name

Scheme Name
AXIS Long Term Equity Fund (G)
INF846K01131

RETAIL RESEARCH

22.75

High

TCS, Sun Pharm & HDFC Ltd

Reliance Tax Saver Fund - (G)
INF204K01GK4

47.00

4393

22.10

30.52

17.87

17.02

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

HDFC Balanced Fund (G)

INF179K01392

108.96

4121

18.99

23.00

15.82

Tata Balanced Fund - Plan A (G)

INF277K01303

172.39

3733

26.28

25.71

HDFC Balanced Fund (G)

INF179K01392

108.96

4121

18.99

23.00

NAV
(Rs)

Fund Size
(Crs. Rs)

Reliance Monthly Income Plan (G)

INF204K01FD1

33.67

2633

HDFC Monthly Income Plan - LTP (G)

INF179K01AE4

35.15

3815

10.70

12.46

9.83

NAV (Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

28.32

18718

8.79

9.27

3172.16

1692

8.74

NAV
(Rs)

Fund Size
(Crs. Rs)

ICICI Pru Flexible Income Plan - Regular (G)

INF109K01746

270.42

IDFC Ultra Short Term Fund (G)

INF194K01FU8

TVS Motor Co, SBI, Tata Steel, ACC &

BHEL

CPR 2

4 Star

High

High

Top holdings

Crisil
Rank

Value Research
Rating

17.42

ICICI Bank, Infy, HDFC Bank, SBI

& L&T

CPR 2

4 Star

Risk
Grade
Below
Average

Return
Grade
Above
Average

16.59

17.28

Eq: Axis Bank, HCL Technologies,

HDFC Bank, Glenmark Pha & Infosys

CPR 1

5 Star

Below
Average

High

15.82

17.42

ICICI Bank, Infy, HDFC Bank, SBI

& L&T

CPR 2

4 Star

Below
Average

Above
Average

Crisil
Rank

Value Research
Rating

CPR 2

4 Star

Risk
Grade
Above
Average

Return
Grade
Above
Average

Eq: SBI, Infy, ICICI Bank, L&T. Debt:

TATA Power, Hindalco Inds

CPR 3

2 Star

High

Above
Average

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

9.06

7.30

CP: National Bank Agr. Rur. Devp, CD:

National Bank Agr. Rur, Union Bank.

CPR 2

3 Star

Risk
Grade
Below
Average

Return
Grade
Above
Average

9.25

9.00

7.37

CP: M&M Financial Services, Kotak

Mahindra Prime, PFC, CD: SIDBI 2014

CPR 2

4 Star

Below
Average

Above
Average

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

12295

9.22

9.84

9.41

8.06

CD: NABARD, Canara Bk, T Bill, CP:

HDFC, Debt: TCFSL

CPR 3

3 Star

Risk
Grade
Below
Average

Return
Grade
Above
Average

20.08

2582

9.16

9.80

9.37

7.60

Bonds: PFC, LIC Housing Fin, CD: IDBI,

ING Vysya

CPR 4

3 Star

Average

Average

NAV

Fund Size

1 Year

2 Year

3 Year

CrisilRank

Value Research

Risk

Return

Hybrid - Equity Oriented (Atleast 60% in equity)

Scheme Name

Scheme Name

Hybrid - Monthly Income Plan - Long Term (About 15% to 20% in equity)
1 Year
3 Year
5 Year
Return Since
Top holdings
Return
Return
Return
Inception
Eq: Sundaram-Clayton, Federal Mogul
13.64
12.40
9.97
11.06
Goetze, HDFC Bank. CP: PFC
11.46

Liquid Funds
Scheme Name
HDFC Liquid Fund (G)
INF179K01KG8
SBI Magnum InstaCash - Cash Plan
INF200K01LJ4

Ultra Short Term Funds

Scheme Name

Short Term Income Funds

Scheme Name

RETAIL RESEARCH

Return Since

Top Holdings

(Rs)

(Crs. Rs)

Return

Return

Return

Inception

Rating

Grade
Above
Average

Grade

Birla Sun Life Treasury Optimizer - Ret (G)

INF209K01LT4

265.79

4643

10.45

10.96

10.01

7.64

Bonds: PFC, LIC Housing Fin, Tata

Capital Fina, Bajaj Finance

Franklin India Short Term Income (G)

INF090I01304

2948.10

11219

10.99

11.26

10.15

8.35

PTC: 11.85% Adani Enterprises. Debt:

Dewan Housing Fin

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

Income Funds
3 Year
Return Since
Return
Inception

Birla Sun Life Medium Term Plan (G)

INF209K01603

17.49

4207

10.65

11.37

10.76

9.22

Debenture: DLF, Tata Mot, IL&FS

Transport, RHC Holdings

CPR 4

4 Star

Low

Franklin India Corporate Bond Opportunities

(G) INF090I01ET7

14.47

8788

10.68

11.50

10.13

10.71

Debenture: 10.55% JSW Steel, 8.96%

Dolvi Minerals, 12.33% Rel Com.

CPR 3

5 Star

Below
Average

Above
Average

Scheme Name

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Top Holdings

Crisil
Rank

Value Research
Rating

Return
Grade

SBI Magnum Gilt Fund - Long term (G)

INF200K01982

30.36

1578

14.44

12.05

11.50

7.92

8.32% GOI 2032, 9.23% GOI 2043,

9.2% GOI 2030, 8.17% GOI 2044

CPR 1

5 Star

Risk
Grade
Below
Average

Sundaram Gilt Fund - (G)

INF903J01FA6

23.62

50

8.88

10.70

13.19

6.22

8.83% GOI 2023, 8.28% GOI 2027,

8.6% GOI 2028 & 8.15% GOI 2026

5 Star

Low

High

Scheme Name

Notes:

Gilt Funds
Return Since
Inception

CPR 1

3 Star

CPR 2

4 Star

Average

Top Holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

High
Above
Average

Return
Grade
Above
Average

High

NAV value as on July 24, 2015. Portfolio data as on June 2015.

Returns are trailing and annualized (CAGR).
The notations '5 Star & CPR 1' (used by VR & Crisil respectively) are considered as top in respective rating and ranking scales.
The performance of the funds are rated and classified by Value Research in the following ways. Top 10% funds in each category were classified ***** funds, the next 22.5% got a **** star,
while the middle 35% got a ***, while the next 22.5% and bottom 10% got ** and * respectively.
The criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAVs over the Quarter Ended March 2015, Based on percentile of number of
schemes considered in the category, the schemes are ranked as follows: CPR 1- Very Good performance, CPR 2 - Good performance, CPR 3 - Average performance, CPR 4 - Below average and
CPR 5 - Relatively weak performance in the category.
Schemes shortlisted based on the corpus and age. Final picks arrived from return score (respective weightage given for rolling returns for 1m, 3m, 6m, 1yr, 2yr & 3yr) and risk score. Schemes
from Quantum, Mirae and JM Mutual Funds have not been considered.
* - Recent performance of these schemes is good. Need to watch longer term performance.

RETAIL RESEARCH

NFO:
Scheme name

Open Date

Close Date

Tenure

Minimum Investments

ICICI Pru Capital Protection Orient. VIII-J Reg(G)

13-Aug-15

27-Aug-15

5000

1284 Days

UTI-CPO - Sr.VI - I(1098Days) - Reg (G)

10-Aug-15

24-Aug-15

5000

1098 Days

ICICI Pru Capital Protection Orient. VIII-I Reg(G)

08-Aug-15

22-Aug-15

5000

1290 Days

ICICI Pru Capital Protection Orient. VIII-H Reg(G)

04-Aug-15

18-Aug-15

5000

1105 Days

AXIS Hybrid Fund - Series 25 (G)

07-Aug-15

17-Aug-15

5000

1278 Days

UTI-Dual Advantage FTF Sr.II - I(1998Days)-Reg(G)

14-Aug-15

28-Aug-15

5000

1998 Days

Reliance Dual Advantage FTF - VIII - Plan B (G)

14-Aug-15

28-Aug-15

5000

1099 Days

UTI-FTI - Series XXII - XV(1098Days)-Reg (G)

13-Aug-15

27-Aug-15

5000

1098 Days

Reliance Fixed Horizon - XXIX - Sr.3 (G)

12-Aug-15

25-Aug-15

5000

1113 Days

ICICI Pru FMP - Series 77 - 1162Days Plan R-Reg(G)

14-Aug-15

20-Aug-15

5000

1162 Days

HDFC FMP - 1127Days-Aug 2015(1)(XXXIV) (G)

12-Aug-15

18-Aug-15

5000

1127 Days

Balanced:

Fixed Maturity Plans:

Mutual FundNEWS:
JPMorgan Mutual Fund has announced change in exit load structure under both regular plan and direct
plan of JPMorgan India Banking & PSU Debt Fund (an open-ended income scheme), with effect from 17
August 2015. Accordingly, the exit load will be: If redeemed within 12 months from the date of allotment
in respect of purchase made other than through SIP; if redeemed within 12 months from the date of
allotment in respect of each purchase made through SIP, the exit load will be 1.00%. If redeemed after 12
months from the date of allotment in respect of purchase made other than through SIP; if redeemed after
12 months from the date of allotment in respect of each purchase made through SIP, the exit load will be
Nil.
Kotak Mahindra Mutual Fund has announced change in the fund managers for the following debt
schemes, with effect from 13 August 2015. Accordingly, Kotak Mahindra Liquid Scheme, Kotak Floater
Short Term Scheme, All Fixed Maturity Plans in existence and Kotak Quarterly Interval Plan Series 1 - 9
will be managed by Deepak Agarwal. Mayank Prakash has ceased to be associated with the organization
and key personnel of AMC, with effect from 12 August 2015.
HSBC Mutual Fund has announced the change in fundamental attributes of HSBC Progressive Themes
Fund, with effect from 14 September 2015.

RETAIL RESEARCH

Dividend
Scheme Name
L&T Midcap Fund (D)
L&T Midcap Fund - Direct (D)
Religare Invesco Arbitrage Fund (D)
ICICI Pru Dynamic Bond Fund (Div-HY)
Religare Invesco Arbitrage Fund - Direct
ICICI Pru Dynamic Bond Fund - Direct (Div-HY)

Record Date
19-Aug-15
19-Aug-15
17-Aug-15
17-Aug-15
17-Aug-15
17-Aug-15

Gross (%)
30.00
30.00
0.40
1.69
0.40
1.76

Ex-Dividend
Date
20-Aug-15
20-Aug-15
18-Aug-15
18-Aug-15
18-Aug-15
18-Aug-15

Global Updates:
India:

Asia:

US:

Government caps kerosene subsidy at Rs 12/ltr and LPG at Rs 18/kg.

Indias indirect collections rose by 39.1% to Rs 56739 cr in July on account of sharp pick up in excise mop up.
India consumer price index (CPI) inflation for the month of July eased to 3.78% versus 5.40% in June.
Indias index of industrial production (IIP) grew to 3.78% in June following revised 2.51% growth in May.
Government clears Rs 493 cr outlay to promote BPOs
RBI to transfer 25% more by way of surplus funds to the government for the year ended June 30, 2015.
Indias exports fell for the eighth month in a row contracting 10.30% in July to $23.13 bn while the import fell 10.28% in the month to $35.94 bn; trade deficit widened to $12.8 bn in July from
$10.8 bn in June.
Indias Wholesale Price Index (WPI) inflation plunged to a historic low of -2.4% in June.
India's foreign exchange reserves declined by $113.5 m August 7.
Japans current index of Economy Watchers' survey rose to 51.6 in July from 51.0 in June.
Japan consumer confidence index fell to 40.3 in July from 41.7 in June.
Chinas industrial production rose 6% year-on-year in July, compared with a 6.8% rise in June
Chinas retail sales rose 10.5% in July from a year earlier, compared with a 10.6% rise in June.
Japans industrial production grew a seasonally adjusted 1.1% month-on-month in June, compared with a 2.1% fall in May.
Japan's economy shrank at an annualized rate of 1.6% in April-June, compared with a 4.5% expansion in the first quarter.
US wholesale inventories climbed by 0.9% in June following a revised 0.6% increase in May.
US labor productivity climbed by 1.3% in the second quarter following a revised 1.1% decrease in the first quarter.
US budget deficit came in at $149 bn in July, $55 bn higher than in the same month a year ago.
US retail sales rose by 0.6% in July, while revised data showed that sales were unchanged in June.
US initial jobless claims edged up to 274,000 in the week ended August 8, an increase of 5,000 from the previous week's revised level of 269,000.
US business inventories climbed by 0.8% in June after rising by 0.3% in May.
US import prices fell by 0.9% in July after coming in unchanged in June while the export prices edged down by 0.2% in July after falling by 0.3% in the previous month.

UK:

(Source: AMC Newsletters)

UK unemployment rate edged up to 5.6% in Q2 from 5.5% in Q1; the number of people claiming unemployment benefits declined by 4,900 in July from June.

Euro Zone:

The Euro-zone Sentix investor confidence index came in at 18.4 for August, from 18.5 in the previous month.

Germany economic confidence index dropped by 4.7 points to 25 in August.

Euro zone industrial production fell by 0.4% month-on-month in June, following 0.2% decline in May.

Eurozone GDP growth slowed to 0.3% quarter-on-quarter in Q2 from 0.4% in Q1

Eurozone CPI inflation fell 0.6% in July following 0.4% decline in the previous month; on annual basis inflation rose 0.2% in July, same as previous month.

RETAIL RESEARCH

Economic Calendar:
Date
17-08-2015
17-08-2015
17-08-2015
17-08-2015
17-08-2015
17-08-2015
17-08-2015
17-08-2015
17-08-2015
18-08-2015
18-08-2015
18-08-2015
18-08-2015
18-08-2015
18-08-2015
18-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
19-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
20-08-2015
21-08-2015
21-08-2015
21-08-2015
21-08-2015
21-08-2015

Country
Japan
Japan
India
India
India
European Monetary Union
US
US
US
US
Japan
UK
UK
UK
US
US
Japan
Japan
Japan
India
India
India
India
US
US
US
US
India
India
Germany
Germany
UK
UK
UK
US
US
US
US
US
US
US
India
India
India

RETAIL RESEARCH

Event
GDP (Quarter over Quarter)
GDP (Year over Year)
Output of Crude oil
Output of Refinery
Output of Natural gas
Merchandise Trade (Level)
Empire State Mfg Survey (General Business Conditions Index - Level)
Housing Market Index (Housing Market Index)
E-Commerce Retail Sales (E-Sales Q/Q Change SAAR)
Treasury International Capital (Foreign Demand for Long-Term U.S. Securities)
All Industry Index
CPI (Month over Month)
Producer Price Index (Output-M/M)
CPI (Year over Year)
Redbook
Redbook (Store Sales Y/Y change)
Merchandise Trade
Merchandise Trade (Imports-Y/Y)
Merchandise Trade (Exports-Y/Y)
91 day T- Bills auction of Rs 90 bln (cut-off yld)
Reserve Money (change on year)
M3 (YoY Chg)
364 day T- Bills auction of Rs 60 bln (cut-off yld)
MBA Purchase Applications
MBA Mortgage Applications
Consumer Price Index (CPI - M/M change)
EIA Petroleum Status Report
CPI - Agricultural Labourers(YoY Chg)
CPI - Rural Labourers (YoY Chg)
PPI (Month over Month)
PPI (Year over Year)
Retail Sales (Month over Month)
Retail Sales (Year over Year)
CBI Industrial Trends Survey (Level)
Jobless Claims
Bloomberg Consumer Comfort Index
Philadelphia Fed Business Outlook Survey (General Business Conditions Index - Level)
Existing Home Sales (Existing Home Sales - Level - SAAR)
EIA Natural Gas Report
Money Supply
Fed Balance Sheet
FX reserve (change on wk)
Bank Deposit (YoY Chg)
Bank Credit (YoY Chg)

Period
Q2, 2015p
Q2, 2015p
Jul
Jul
Jul
Jun, 2015
Aug, 2015
Aug, 2015
Jun, 2015
Jun, 2015
Jul, 2015
Jul, 2015
Jul, 2015
wk8/15, 2015
wk8/15, 2015
Jul, 2015
Jul, 2015
Jul, 2015
Wk to Aug 14
Wk to Aug 7
wk8/14, 2015
wk8/14, 2015
Jul, 2015
wk8/14, 2015
Jul
Jul
Jul, 2015
Jul, 2015
Jul, 2015
Jul, 2015
Aug, 2015
wk8/15, 2015
wk8/16, 2015
Aug, 2015
Jul, 2015
wk8/14, 2015
wk8/10, 2015
wk8/19, 2015
Wk to Aug 14
Wk to Aug 7
Wk to Aug 7

Frequency
Quarterly
Yearly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Quarterly
Monthly
Monthly
Monthly
Monthly
Yearly
Weekly
Yearly
Monthly
Yearly
Yearly
Weekly
Weekly
Fortnightly
Fortnightly
Weekly
Weekly
Monthly
Weekly
Monthly
Monthly
Monthly
Yearly
Monthly
Yearly
Monthly
Weekly
Weekly
Monthly
Monthly
Weekly
Weekly
Weekly
Weekly
Fortnightly
Fortnightly

Unit
Percent
Percent
mln tn
mln tn
bln cu m
Billion

Percent
Billion
Percent
Percent
Percent
Percent
Percent
Percent
pct
pct
pct
pct

Percent
pct
pct
Percent
Percent
Percent
Percent

Million

$ mln
pct
pct

Previous
1
-1
3.1
18.87
2.72
21.2
3.86
60
3.5
93
0
0
0
0
0
1.9
0
-2.9
9.5
7.27
10.09
11.45
7.58
0
0
0.3
0
4.46
4.7
-0.1
-1.4
-0.2
4
-10
0
0
5.7
5.49
0
0
0
-113.5
11.8
9.4

Economy Updates
US Dollar Vs Indian Rupee

Relationship among policy rates and benchmarks:

The rupee fell breaching the key psychological 65 to the dollar mark as bearish bets on
the currency continued to pile up after the devaluation of the Chinese yuan earlier this
week. The rupees fall was also accentuated on bets the Reserve Bank of India would cut
policy rates ahead of the scheduled September 29 meeting on the back a sharp fall in
retail inflation.

The Wholesale Price Index (WPI) based inflation came in at -4.05 for the month of July 2015.
It has been in the negative zone for the last nine months. On the other hand, the Consumer
Price Index based inflation data (CPI), showed retail inflation fell 3.78% in July. The index of
industrial production (IIP) climbed to a four-month high, adding to the evidence that growth
was gathering pace.

WPI Inflation (YoY)

Deposit vs. Advance Growth (YoY)%

Deposit Growth

19.00

Credit Growth

17.00
15.00
13.00

Deflationary trends continued for the ninth month in a row in July with wholesale
inflation plunging to a historic low of (-) 4.05% on cheaper vegetable and fuel. The
overall inflation based on the wholesale price index was (-) 2.40% in June, It has been in
the negative zone since November 2014.

RETAIL RESEARCH

Jul-15

Ma

Mar

Jan-

Nov

Sep

Jul-14

Ma

Mar

Jan-

Nov

Sep

Jul-13

Ma

Mar

9.00

Jan-

11.00

The y-o-y growth in scheduled commercial bank (SCB) credit increased at 9.65 per cent in
the fortnight ended 07 August 2015. The outstanding SCB credit decreased by Rs.144.1
billion to Rs.65.6 trillion. The food and non-food credit stood at Rs.1.1 trillion and Rs.65.5
trillion, respectively, as on 24 July 2015. The SCB deposit base increased by Rs.10.5 billion to
Rs.88.8 trillion during the fortnight. The y-o-y growth in total deposits improved marginally
to 11.8 per cent. The demand deposit and time deposit stood at Rs.8 trillion and Rs.81
trillion, respectively, as on 24 July 2015.

Money Stock (M3) (YoY) (%)

Corporate Bonds Spread Vs Gilt Securities:

Money supply (M3) or broad money fell by Rs.47.2 billion to Rs.109.4 trillion during the
fortnight ended 24 July 2015. Out of the components of M3, demand deposits with the banks
rose by Rs.123.1 billion to Rs.9 trillion and time deposits contracted by Rs.104.8 billion to
Rs.86 trillion. Currency with the public fell by Rs.155.6 billion to Rs.14.2 trillion. Other deposits
with the Reserve Bank of India (RBI) grew by Rs.90.1 billion to Rs.0.2 trillion.

Corporate bond yields fell last week. The one year AAA credit spreads fell by 6 basis points
while 10 year spread rose by 1 basis points.

Foreign Exchange Reserves (mn of USD)

Liquidity support from RBI (Bn. Rs)

India's foreign exchange reserves fell by $188 million in the week ended July 31. RBIs weekly
statistical supplement, showed that India's foreign exchange reserves stood at $353,460.5
million.

RETAIL RESEARCH

RBI infused average gross liquidity via Repo under LAF window worth Rs. 3,633 Cr in this week
compared to an infusion of Rs. 2,390 Cr in previous week. Infusions via the MSF route
averaged Rs. 248 Cr. The Call rate ended at 7.07% versus 7.12% compared to previous weeks
closing. The CBLO ended at 7.19% compared to 6.78% in the previous week.

MFs net investment in Debt (RsCrs):

Certificates of Deposit (%):

In May, MF bought debts worth Rs. 15,956 crore while In June, MF bought worth Rs.
36,331 crore. In July, MF bought debt worth Rs. 30,907 crore.

CD rates are trending marginally lower in the recent periods. The CD rates hovered around
7.86% levels (as per the latest data) (one year CD).

FIIs net investment in Debt (RsCrs):

Commercial Paper (%):

In May, FIIs sold debt worth Rs. 8,815 crore. In June, FII bought debts worth Rs. 19,331
crore. In July, FII bought debt worth Rs. 177 crore.

RETAIL RESEARCH

Rates of Commercial papers are seen trading marginally lower in the recent periods. The CP
rates are hovering around 8.5% levels (one year maturity CP).

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email:
hdfcsecretailresearch@hdfcsec.com
Disclaimer: Mutual Funds and Debt investments are subject to risk. Past performance is no guarantee for future performance This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This documen t is not to be
reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied
upon as such. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment banking, or other services for, any company mentioned in this document. This report is intended for nonInstitutional Clients
This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry prices and/or other parameters mentioned in this document may or may not match or may be contrary with those of the other Research teams
(Institutional, PCG) of HDFC Securities Ltd.

RETAIL RESEARCH