icici july 16 issue new -...
TRANSCRIPT
7
Anup BagchiMD & CEO
ICICI Securities Ltd.
Insurance is often an overlooked area when it comes to building an investment portfolio. Be it life or general insurance, particularly health insurance. Though the insurance penetration may haveseen some improvement over the years, India largely remains an under-penetrated market. According to the latest sigma study from global reinsurer Swiss Re, India's insurance penetration stands at 3.3% compared to global average of 6.2%. Insurance penetration is measured as a percentage of premiums to a country's gross domestic product (GDP). Out of this 3.3%, general insurance is at even less than 1%. No doubt, rising cost of healthcare and early onset of lifestyle-related diseases have made people aware of the importance of health insurance, but it still has a larger room for improvement.
Given the changes in lifestyle, double-digit medical inflation, fading employee benefits, getting a separate and adequate health insurance policy today is more important than ever. One cannot rely entirely upon the employer to provide protection. Just like retirement, we have to fend for ourselves for our insurance needs as well. Even for retirees, rising healthcare costs remain a major worry, shows a recent study by DBS. Having to dip into savings to cover these costs remained a cause of worry.
I am often asked why one should take health insurance if one is already covered by the employer. It is indeed good to have an employer-provided health cover. However, it is important to find if
1ICICIdirect Money Manager July 2016
the policy indeed takes care of all your insurance needs. Each individual has unique needs and it is important that you identify and anticipate your medical needs and take additional cover to meet your health expenses. Does it cover your family or dependants and is it adequate to cover critical illness? What happens when you are between employments?
The other question is how do I know what is an adequate health cover. While there are many methods by which one can arrive at a Life Cover requirement, it is difficult to measure health insurance. Let me share a back of the envelope calculation that one can use. Start with the cost of an average critical illness expense, say a major operation expense, add to that any incidental expenses during the treatment, which normally should be around 50% of the expense. Then you should also factor in any indirect loss because of the illness, like loss of salary or business. From this sum, reduce any existing cover you may have. This should give you a fair idea of the health insurance you should have. More importantly, consult your financial planner before you buy.
The other point that we tend to miss with health insurance is the tax benefit it offers. Our experience is that health insurance tax limits under section 80D are rarely fully and they are over and above 1.5 lakh that we get under section 80C. One can save maximum up to 60,000 under section 80D if assesee and parents both are senior citizens (above age 60 years). Even preventive health check-up expenses up to 5,000 can be claimed under section 80D. We must take health insurance with a high level of confidence so that we can put it to best use in case of an emergency.
You can buy health insurance online from ICICIdirect.com with ease. You can also get in touch with your assigned ICICIdirect relationship manager, who can guide you further. 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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Healthcare today is an expensive affair, making it extremely
important to invest in health insurance to protect one's family and
finances from the huge dent that a medical emergency can cause.
When you are young and healthy, you may feel like health
insurance is a waste of money. But every human being, including
young, is exposed to various health hazards / accidents. The
importance of health insurance being an integral part of your
financial plan can only be overstressed. Our lead story of this
issue will hand-hold you through the details of health insurance
and help mitigate your family from the risk.
The edition also covers an interview with Manish Gunwani,
Deputy CIO, ICICI Prudential Mutual Fund, who believes Indian
economy in the midst of gradual recovery, and is therefore
positive on domestic-focused sectors like financials, utilities,
logistics etc.
In the mutual funds space, balanced funds look ideally placed,
given the current market scenario where equity market has run
up sharply in a short period of time. We list out top 3
recommended balanced funds in our Mutual Funds Analysis
section, which you may consider investing into.
Further, if you wish to get clarity on different aspects of personal
finance or any other money matter through Ask our Planner, you
may write to us at [email protected]. So read
on, stay updated and involved. Do write in with your feedback
and share your thoughts.
Editor & Publisher : Abhishake Mathur, CFA
Coordinating Editor : Yogita Khatri
Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey
CMEditorial Team : Nithyakumar VP CFP , Sachin Jain, Research Team
Your magazine is now also available on www.magzter.com, a digital newsstand.
ICICIdirect Money Manager July 2016
3ICICIdirect Money Manager July 2016
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: Phillips Carbon Black and VA Tech Wabag.....................12
Flavour of the Month: Why You Should Buy Health InsuranceGiven the changes in lifestyle, double-digit medical inflation,fading employee benefits, getting a separate and adequatehealth insurance policy today is more important than ever.Here's the handy guide for you. Read on..................................20
Tête-à-tête: 'Indian economy in the midst of gradual recovery’An interview with Manish Gunwani, Deputy CIO, ICICIPrudential Mutual Fund.............................................................. 30
Ask Our Planner: How are insurance maturity proceeds taxed?Your personal finance queries answered.................................. 34
Mutual Funds Analysis: 3 Balanced Funds to ConsiderGiven the current market scenario, balanced funds look ideally placed..........................................................................................38
Mutual Fund Top Picks....................................................................51
Equity Model Portfolio.................................................................... 52
Quiz Time...................................................................................... 57
Prime NumbersA revamped section of monthly trends, with inclusion of more data points and indicators......................................................... 58
Premium Education Programmes Schedule.......................................62
4
PFRDA launches new features for NPS subscribers
Pension Fund Regulatory and Development Authority (PFRDA) has introduced new features for the benefit of National Pension System (NPS) subscribers, including an mobile app. According to the statement, through the mobile app, 'NPS by NSDL e-Gov', subscribers can raise a request for transaction statement for a particular financial year that will be sent to the registered mail ID at end of the day. Now, the NPS subscribers can view his/her NPS account, latest details of scheme wise units along with latest NAV and the total value of the schemes, details of the last five contributions credited, can change contact details (Telephone/Mobile no/Email ID), etc, it added. The subscribers also can now update/modify their address on their own using Aadhaar based authentication. The statement said a subscriber whose bank has not confirmed (rejected) his/her KYC verification request can now update the address details and confirm KYC using Aadhaar based authentication. Besides, the eNPS subscribers can now access the Central Recordkeeping Agency (CRA) system immediately after registering without waiting for physical I-PIN to be dispatched.
Courtesy: Business Standard
Buoyed by strong stock markets, Labour Minister Bandaru Dattatreya has said the Employees Provident Fund Organisation may invest up to 12 per cent of its investable amount in equities over a period of time. According to the minister, as on June 30, the EPFO invested 7,468 crore in two index-linked ETFs (Exchange Traded Funds) -- one to the BSE's Sensex and the other to NSE's Nifty -- and as of now the market value of the investment stood at 8,024 crore with 7.45 per cent yield.
Courtesy: The Economic Times
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EPFO may invest up to 12% in equity markets: Labour Minister
With an aim to make the Real Estate Investment Trusts (Reits) more attractive to investors and real estate players, the Securities and Exchange Board of India (Sebi) has proposed relaxed norms for related party transactions and allowed these Trusts to invest more in under-construction assets. Sebi also proposed removal of restrictions on Reits relating to investment in special purpose vehicle (SPV) structures while norms relating to related party transactions would also be eased. The proposed move would allow up to 20 per cent investment by Reits in under-construction projects, up from a maximum of 10 per cent allowed currently.
Courtesy: Business Standard
Sebi issues draft paper on REIT to attract investors, realtors
CIBIL may soon give one free credit report a yearYou could soon be getting one free credit report a year from the Credit Information Bureau of India (CIBIL). A healthy CIBIL report and score increases one's chances of getting a loan and costs 500. "By the end of the year, the Credit Information Bureau of India will start providing individuals with one free credit report a year, so that they can check their credit rating and petition if they see possible discrepancies," RBI governor Raghuram Rajan told delegates at a seminar on 'Transforming Rural India through Financial Inclusion'.
Courtesy: The Economic Times
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ICICIdirect Money Manager July 2016
5
ASSET CLASS INSIGHTS
Asset Class Insights: Equity, Fixed-income and Gold
ICICIdirect Money Manager July 2016
A monthly review of the major asset classes - Equity, Fixed-Income and Gold -- and a snapshot of our outlook.
Equity markets: Outlook remains positive; buy on dipsG l o b a l e q u i t y m a r k e t s continued their posit ive momentum during June, 2016 and move higher. Markets w i t n e s s e d h e i g h t e n e d volatility intra-month following the declaration of results of the U K r e f e r e n d u m o n E U membership. While UK's exit from EU could hurt UK's long term growth prospects, its effects on the rest of the world in the near future are more uncertain. After the initial knee jerk reaction, markets seem to have settled down. Key global equity markets had recovered their losses by the end of the month.
Indian equity markets were up 1.2% during June 2016 adding to the previous month's gains. Volatility, however, increased on global new flows on Brexit but markets staged a smart recovery post that event.
The broader markets, as represented by the midcap and small cap indices, displayed a strong outperformance over
the last month. The Nifty midcap and small cap indices z o o m e d 8 % a n d 1 1 % , respectively, from the Brexit bottom while the benchmark is up 5% from the corresponding panic bottom of 7927. This clearly highlights increased market participation and inherent strength in the trend. We expect this outperforming trend of broader markets to continue in the short-term.
The progress of monsoon season has been excellent. Although slightly delayed, the rains have caught up towards the end of June and start of July. Indications and forecasts point to a normal monsoon. As always, July and August remain the key months for the season.
The markets were surprised by the announcement by Dr Rajan that he would be moving on from RBI after the conclusion of his first term in September. RBI has built significant credibility under Dr Rajan through its tough stance on CPI inflation targeting and banking
6ICICIdirect Money Manager July 2016
ASSET CLASS INSIGHTS
system NPA recognition and clean-up. The appointment of a new Governor and his/her stance on these policy matters will be keenly monitored by the markets.
The government continued to push out reform measures. Seven key sectors including aviation, defence, media, single brand retail and pharma sectors were opened up further for FDI investments. It is notable that FDI inflows into India remain extremely strong and have reached record levels over the last 12 months. The coming session of Parliament will be keenly watched to understand the fate of the GST bill.
The Union Cabinet has approved the implementation of the Seventh Central Pay C o m m i s s i o n ( C P C ) recommendations, effective from January 1, 2016. The announcement was largely on expected lines and as per what had been budgeted. The award is expected to provide a big b o o s t t o d i s c r e t i o n a r y consumption in coming months, which is likely to also be helped by good monsoons. The markets have a tendency
to form major bottom on the outcome of major negative events. In the present scenario, markets have absorbed major events like the RBI governor's exit and Brexit outcome as the previous major resistance area and recent breakout level of 8000 acted as strong supports, as per our technical team.
We believe investors should be constructive on the equity markets and accumulate on dips for the next two to three years.
Global economy and markets: With the markets completely wrong-footed by the decision of UK voters on June 23 to leave the European Union (EU), the immediate market reaction was extreme. In a classic risk-off move, equities around the world fell while bond markets, particularly core government bond markets, went up with yields of 10-year US treasuries German Bunds and UK gilts witnessing historic lows.
In a sharp turnaround in sentiment, global capital markets recovered sharply on expectations of easier overall global monetary policy for longer with the market now
7ICICIdirect Money Manager July 2016
ASSET CLASS INSIGHTS
pricing very low probability on rate hike by the US Federal Reserve.
Sentiments towards emerging equity markets were boosted by expectations of easier overall global monetary policy for longer with the futures market now pricing out any US interest rate hike until 2017.
The equity performance in emerging Europe varied greatly - countries with high exposure to the UK/EU were most negatively impacted whereas those with less in-depth trade relationships enjoyed gains.
Brazil was the best performing market on the back of a rebound in commodity prices.
Mixed global markets performance on country specific development
6.3
4.4
1.2
0.8
0.4
-5.7
-6.0
-9.6
2.9 5.
3 6.5
1.4
-2.5
-2.9
-3.4
-7.1
-20
-10
0
10
Bra
zil
UK
Indi
a
US
Chi
na
Ger
man
y
Fran
ce
Japa
n
(%)
1 M 3 M
Source: Bloomberg. Return as June 30, 2016
Exhibit 1: All major markets have negative returns on one year basis
3.4
0.2
-0.2
-8.6
-17.
2
1.8
-2.9
-11.
6
-23.
0
-11.
5
-31.
5
4.2
2.9
-0.1
-0.3
-2.8
-35
-25
-15
-5
5
15
UK
Indi
a
US
Bra
zil
Ger
man
y
Japa
n
Fran
ce
Chin
a
(%)
6M 1Y
Source: Bloomberg, Return as June 30, 2016
8ICICIdirect Money Manager July 2016
ASSET CLASS INSIGHTS
Fixed income: Well poised on RBI's
liquidity boost
Liquidity in the Indian debt
market improved significantly
over the last month on the back
of a significant amount of
OMOs done by the RBI.
System liquidity, which was in
deficit, to the extent of around
1.8 lakh crore in the first
quarter of 2016, has turned into
surplus. Borrowing under
liquidity adjustment facility
(LAF) has fallen into the
negative territory indicating
that banks/financial institutions
are not borrowing any more
from the RBI.
Money market rates fell to
multi year lows with three
month, six months and 12
month CD falling to around
6 .9%, 6 .7% and 7 .3%,
respectively.
G-sec yields have also fallen in
the range of 20-50 bps since
February 2016. Globally, the
yield on sovereign papers has
fallen significantly post Brexit
event on rising risk aversion.
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The same has helped ease
domestic yields as well.
E x p e c t a t i o n s o n t h e
announcement of new RBI
Governor have also pushed the
long term G-Sec yield down,
which were otherwise stuck in
a range. The market is
expect ing the new RBI
Governor to adopt a dovish
s tance on the in f la t ion
targeting regime.
The RBI in its monetary policy
o n J u n e 6 , 2 0 1 6 k e p t
benchmark policy repo rates
unchanged at 6.5%. RBI
maintained its stance to
provide liquidity as required to
progressively lower the
average ex ante liquidity deficit
in the system from 1% of NDTL
to a posit ion closer to
neutrality.
Although the latest PCI
inflation was higher than
market expectations, the
medium term outlook remains
positive on normal monsoons.
The monsoon, after a delayed
start, has progressed rapidly in
9ICICIdirect Money Manager July 2016
ASSET CLASS INSIGHTS
the last fortnight covering
almost all parts of country. As
per IMD, for a country as a
whole the southwest monsoon
as of July 7, 2016 has been 1%
above long period average
(LPA) wherein all regions
expect north east receiving
surplus rainfall. The weather
conditions are favourable for
further advancement of
sowing activity domestically,
which was held up due to a
delay in monsoon rains. For
southwest monsoon 2016, the
I M D a n d S k y m e t h a v e
maintained above normal
rainfall forecast of 106% and
109% of LPA, respectively.
The change in l iquidity
framework has increased
market expectations on the
magnitude and frequency of
OMOs. It is a big positive as far
as lower bond yields are
concerned and posi t ive
liquidity to encourage a
steeper yield curve, going
forward.
The combination of better
liquidity conditions, increased
OMO purchases by RBI and
quarterly increases in FPI debt
limit is a positive development
for the overall debt market.
Although the outlook on G-sec
yields remains positive, the
duration strategy should be
played through act ively
managed income or dynamic
bond funds. They will be able
to make swift duration change
within G-secs or switch
between corporate bonds and
G - s e c s w i t h i n s p e c i f i c
duration.
As the outlook on system
liquidity is positive, short-term
debt funds are best placed.
Credit opportunities funds with
a consistent track record and
exposure to stable sectors
offer a good investment
opportunity to earn higher
accrual. Ultra short term debt
fund and liquid funds remain
well placed. However, returns
are likely to be lower as short
term CP/CD rates have already
fallen significantly.
10ICICIdirect Money Manager July 2016
ASSET CLASS INSIGHTS
Gold: Two year high on global risk
aversion
Gold prices rallied to a two year
high in June 2016 on the back
of heightened risk aversion
post the unexpected Brexit
event. The global risk-off trade
was visible across asset
classes with perceived safe
haven assets like gold and
treasuries attracting investors'
interest.
Global gold prices crossed
US$1360 per ounce in July
2016 rising sharply by almost
12% since June. Indian prices
also crossed 31000 per 10
gram on MCX.
As the UK decided to exit
European Union, concerns
were raised on negative
implications on international
trade. Many analysts believe
the Brexit could have a severe
impact on the recovery efforts
of both the UK and EU.
Currency movement was
extremely sharp further
accentuating the impact of the
event.
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G o l d h a s w i t n e s s e d a
spectacular rally since the start
of calendar year 2016. Global
prices have rallied 28% since
the star of the year. The rally
was triggered by fears on a
hard landing in China, which
resulted in a sharp sell-off in
Chinese equities that extended
to other parts of the world. This
sent investors toward safe-
haven assets, boosting ETF
holdings. Buying pressure in
go ld was bo ls te red by
downward revisions to the
expected path of US interest
rates from investors and the
F e d . F e d t i g h t e n i n g
expectations through the first
quarter pushed gold higher by
pressurising the dollar 4%
lower and by moving real
yields on the 10-year US
treasuries to their lowest since
April 2015.
The expectat ion on the
quantum of rate hike by the US
Fed has declined significantly
post the recent turmoil in
global capital markets. The
11ICICIdirect Money Manager July 2016
ASSET CLASS INSIGHTS
market is now factoring in just
one rate hike in the whole of
calendar year 2016 especially
post the dovish statement
from the US Fed Chair. The
interest rate hike in general is
negative for gold prices. With
rate hike concern receding, the
overhang on prices has also
abated in the near term.
M e d i u m t e r m d e m a n d ,
however, will continue to be
impacted by the overall global
environment, particularly the
US Fed rate hike trajectory.
Gold prices consolidating post sharp rally at the start of the year
1000
1100
1200
1300
1400
Jan-
14
Apr
-14
Jul-1
4
Oct
-14
Jan-
15
Apr
-15
Jul-1
5
Oct
-15
Jan-
16
Apr
-16
Jul-1
6Price ($/Ounce)
Indian prices follow
global prices
24000
25000
26000
27000
28000
29000
30000
Fe
b-1
5
Ma
r-1
5
Ap
r-1
5
Ma
y-1
5
Ju
n-1
5
Ju
l-1
5
Au
g-1
5
Se
p-1
5
Oct-
15
No
v-1
5
De
c-1
5
Ja
n-1
6
Fe
b-1
6
Ma
r-1
6
Ap
r-1
6
Ma
y-1
6
Ju
n-1
6
|
Price (|/10 grams)
Source: Bloomberg
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STOCK IDEAS
ICICIdirect Money Manager July 2016
Phillips Carbon Black: Turnaround in Sight;on Robust Earnings Trajectory
Company BackgroundPhillips Carbon Black (PCBL) is an RP-Sanjiv Goenka group (CESC promoter group) company manufactur ing carbon black domestically. It was incorporated in the year 1960 in collaboration with Phillips Petroleum Company, US. In 1988, the company entered into a technical collaboration with Columbian Chemicals Company, US. P C B L ' s f i r s t p l a n t f o r manufacturing carbon black was set up in Durgapur (West Bengal) with an installed capacity of 14 KT, which commenced production in 1962. As of FY16, PCBL has four plants across India manufacturing carbon black with associated waster heat recovery power p lants; Durgapur, WB (147 KT, 30 MW); Mundra, Gujarat (140 KT, 30 MW); Palej, Gujarat (95 KT, 12 MW); Kochi, Kerala (90 KT, 10 MW). It has an installed capacity to manufacture 472 KT of carbon black annually. The e f fec t i ve capac i ty, however, gets limited to 411 KT due to fungibility across
various carbon black grades. PCBL also has 76 MW of power capacity, operating on waste gases produced during the process of manufacturing carbon black making it a carbon neutral company.
Carbon black is primarily used as a reinforcement material in tyres and other industrial rubber goods. . It is critical for manufacturing tyres and forms 23% by volume of the tyre weight and 10% by value of tyre costs. PCBL is the largest manufacturer of carbon black in India with a market share at 31%. PCBL has an effective installed capacity of 411 kilo tonne (KT) for carbon black (name plate capacity at 472 KT). In FY16, PCB operated at 81% capacity utilisation levels with carbon black sales at 335 KT. Going forward, on the back of a pick-up in tyre demand domestically & imposition of anti dumping duty, PCBL is witnessing robust demand of ca rbon b lack . Capac i ty
Investment Rationale
Carbon black - capacity utilisation inching upwards
13ICICIdirect Money Manager July 2016
STOCK IDEAS
utilisation is expected to augment to 93% in FY18E with corresponding carbon black sales at 380 KT in FY18E, implying sales volume CAGR of 6.5% in FY16-18E. PCBL also sells high margin speciality grade carbon black, which finds application in plastics, inks, etc. Its volume in Fy16 was at 5 KT (2.5 KT in Fy15). Going forward, the speciality g rade sa les vo lume i s expected at 10 KT in FY17E & 18 KT in FY18E, which will further drive profitability at PCBL.
PCBL uses carbon black feed stock (CBFS) as its key raw material for manufacturing carbon black. CBFS is a crude derivative and, therefore, declining crude price and consequent decline in CBFS price benefits Indian players despite raw material price being a pass through. Hence, d e c l i n i n g C B F S p r i c e , increasing capacity utilisations levels & increasing share of speciality grade sales are expected to create healthy operating leverage at PCBL. Consequently, we expect
Decline in crude price; operating leverage to enhance profitability
EBITDA margins to improve at PCBL to the tune of 450 bps over FY16-18E. We expect PCBL to clock EBITDA margins of 13.2% in FY17E & 13.3% in FY18E (8 .7% in Fy16 ) . EBITDA/tonne is expected at 6374/tonne in FY17E & 6556/tonne in FY18E ( 4926/tonne in FY16). Sales growth, however, is expected to be flat in FY16-18E despite volume growth due to steep correction in realisations in FY17E (blended realisations assumed at US$674/tonne vs. FY16 at US$828/tonne largely tracking the decline in crude price.
B y v i r t u e o f d e c l i n i n g profitability (6.2% EBITDA margins in FY15) and an elongated working capital cycle (93 days in FY15) PCBL has accumulated huge debt with peak debt at 1220 crore as of FY15. However, with the tide now turning in favour of PCBL and working capital controls, debt has reduced to 1021 crore as of FY16 with consequent debt: equity at 2.0x. Going forward, with a s t r o n g o p e r a t i o n a l
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Turnaround in sight; declining debt; strong earnings
14ICICIdirect Money Manager July 2016
STOCK IDEAS
Stock Data
Key Financials
Valuations Summary
performance, we expect PCBL to generate healthy CFO annually to the tune of ~ 200 crore (FCF to the tune of ~ 175 crore annually). This will further reduce debt, with consequent debt: equity at 1.2 x by FY18E. Going forward, in FY16-18E, on account of sales
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volume growth (6.5% CAGR), expansion in EBITDA margins (450 bps) and reducing interest costs, we expect PAT to quadruple to 93 crore in Fy18 vs. 23 crore in FY16. We value PCBL at 225-240, i.e. 8.5x-9.0x P/E (0.1x PEG) on FY18E EPS of 27.
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` crore FY15 FY16 FY17E FY18E
Net Sales 2470.2 1894.7 1740.4 1880.6
EBITDA 152.3 165.0 230.5 249.2
Net Profit 12.6 22.7 49.5 92.9
EPS 3.7 6.6 14.4 27.0
P/E 47.8 26.4 12.2 6.5
Target P/E 62.6 34.5 16.0 8.5
EV / EBITDA 11.9 8.9 6.0 5.2
P/BV 1.2 1.2 1.1 1.0
RoNW 2.5 4.4 8.9 14.7
RoCE 6.2 8.0 13.1 14.2
ROIC 5.8 8.4 13.5 14.9
FY15 FY16 FY17E FY18E
Market Capitalization ( crore) 603.1
Debt (FY16) ( crore) 1021.4
Cash and Cash Equivalent (FY16) ( crore) 148.6
Enterprise Value ( crore) 1475.9
52 week H/L 181 / 80
Equity Capital ( crore) 34.5
Face Value ( ) 10.0
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15ICICIdirect Money Manager July 2016
STOCK IDEAS
Key risks include:
Carbon black price; crude linked; inherent volatility
The realisation of carbon black largely tracks crude prices as it utilises CBFS as its key raw material, which is a crude d e r i v a t i v e . T h e r e f o r e , realisations are subject to a lot of volatility given volatile crude prices. As an industry practice, in terms of carbon black pricing, companies operate with a quarterly price lag i.e. average of daily crude price during the current quarter (Apr i l - June) is used to determine/fix the carbon black price for the subsequent quarter (July-September), which makes them susceptible to pricing risk unless one has the capacity to hold the inventory for the entire quarter. Since PCBL operates with around 45 days of inventory, it is also susceptible to pricing risk and has limited ability to hedge the same. Therefore, sharp swings in crude price m a y r e s u l t i n v o l a t i l e realisations and consequent volat i le prof i tabi l i ty for
industry participants including PCBL, going forward.
PCBL primarily imports its CBFS requirements with imports constituting a healthy 79% of its entire raw material needs ( 922 crore in FY16). PCBL also exports carbon black to other countries with the share of exports to gross sales at ~21% ( 473 crore in FY16). This indeed makes PCBL a net importer and is susceptible to forex risk (US$). The company gains from rupee appreciation and is worse off from depreciation. All short-term borrowings are also dollar denominated ( 704 crore). Hence, even this is susceptible to forex risk. PCBL spends a considerable amount as hedging costs ( 47 crore in F Y 1 6 ) a n d s t i l l i n c u r s translational forex losses/gains due to adverse currency movement. Going forward, the re fo re , any adverse movement in currency beyond hedged limits may impact its profitability.
High forex exposure; hedging costs
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16ICICIdirect Money Manager July 2016
STOCK IDEAS
VA Tech Wabag: Moderate performance, strong outlook
Company Background
VA Tech Wabag (Wabag) is a
leading MNC in the water
treatment space with a
presence in India, Middle
East, North Africa, Central &
Eastern Europe, China and
South East Asia with access
to over 100 patents. The
company operates on an
asset light EPC model,
thereby manifesting a lean
balance sheet. With growing
concern on access to clean
water and urgent measures
to solve the issue of depleting
w a t e r r e s o u r c e s , t h e
i n v e s t m e n t i n w a t e r
treatmentis likely to increase
m a n i f o l d g l o b a l l y .
Accordingly, Wabag is
e x p e c t e d t o b e n e f i t
significantly by leveraging its
strong domestic presence
and rising global footprint.
The company's strong book-
to-bill ratio of ~2.9x provides
revenue visibility for three
years. This, coupled with a
strong execution track record
is expected to lead to 22.1%
revenue CAGR in FY16-18E to
3,800 crore while the margin
is expected to expand ~190
bps to 10.7% in FY16-18E.
VA Tech Wabag (Wabag) is a
leading MNC in the water
treatment space (water
desalination, sewage water
treatment, waste water
treatment, etc), with a global
presence. The company
operates on an asset light-
EPC led model in water
treatment projects across
munic ipa l & indus t r ia l
segments. It focuses on
design & engineering while
outsourcing civil construction
`
Investment Rationale
VA Tech Wabag - Leading global
water treatment player
17ICICIdirect Money Manager July 2016
STOCK IDEAS
& erection jobs. Wabag has
executed over 2,250 projects
till date and has a market
share of ~14% in the Indian
m a r k e t . T h e c o m p a n y
garners a higher EBITDA
margin of ~13-14% across its
India business, 8-9% across
the India internat ional
business and 5-6% across the
Europe segment taking
overall EBITDA margin to
~9.3%. Wabag registered
strong growth in its order
inflow over FY10-15, at 13.8%
CAGR. This led to revenue
and PAT CAGR of 14.6% and
23.1%, respectively over the
same period.
Wabag's order backlog and
revenue are expected to
increase at a CAGR of 17.9%
and 22.1%, respectively, in
FY16-18E driven by the
robust opportunity across the
Remain positive on robust order
backlog, new order wins
water treatment industry. We
have pencilled in an order
intake of 4,100 crore and
4,500 crore for FY17E and
FY18E, respectively, leading
to a robust book-to-bill ratio
of ~2.7x. We have revised our
FY18E earnings marginally
downwards to factor in the
c u r r e n t s u b d u e d
performance. However, we
maintain our positive stance
on the company and expect it
to maintain its low D/E ratio
factoring in its asset light
business model that would
continue to provide positive
FCF (~ 200 crore over FY16-
18E). Also, order intake for
FY16 crossed 5000 crore,
surpassing the company's
annual guidance. We revise
our target price to 760 ( 823
earlier) and maintain BUY
recommendation on VA Tech
Wabag valuing it at 19x FY18E
EPS of 40.
` `
`
`
` `
`
18ICICIdirect Money Manager July 2016
STOCK IDEAS
Key Financials
Valuations Summary
Stock Data
(` crore)
Net Sales 2,435.2 2,548.6 3,225.0 3,799.8
EBITDA 234.5 224.7 341.8 406.6
Net Profit 110.2 92.2 181.5 218.1
EPS ( ) 20.3 16.9 33.3 40.0
(YoY Growth) FY14 FY15 FY16E FY17E
`
P/E 30.6 36.7 18.6 15.5
Target P/E 37.4 44.6 22.8 19.0
EV / EBITDA 14.0 15.5 9.8 8.1
P/BV 3.7 3.4 2.9 2.5
RoNW (%) 12.6 9.7 17.0 17.6
RoCE (%) 18.9 17.0 23.0 24.2
(x) FY15 FY16 FY17E FY18E
Market Capitalization ( Crore) 3,367.0
Total Debt (FY16) ( Crore) 206.0
Cash and Investments (FY16) ( Crore) 311.0
EV ( Crore) 3,262.0
52 week H/L ( ) 970/551.4
Equity capital ( Crore) 10.9
Face value 2
FII Holding (%) 27.7
DII Holding (%) 22.5
`
`
`
`
`
`
`
19ICICIdirect Money Manager July 2016
STOCK IDEAS
Key risks include:
Political risk across various
geographies
The company operates and
has ongoing projects across
various geographies globally,
which exposes the company to
political risk. Any political
uncertainty in regions where
the company has ongoing
operations could hamper its
profitability. A point in case is
the recent delay in engineering
approvals in a few projects
under the Europe cluster
which contributed to the drop
in revenue from overseas
projects. Any such prolonged
political risk in any particular
region could impact Wabag's
project execution and, thus,
financials, going ahead.
Fuels and lubricants form
~50% of the total expenditure.
The company is exposed to
volatility in crude prices as it
enters into long term contracts
with suppl iers of these
materials over a defined
period. Some of the dredging
contracts into which DCI has
entered do not contain an
escalation clause for fuel price
hikes. Hence, if prices of fuels
and lubricants r ise, the
operational profitability would
be adversely affected.
Fuels and lubricants may have a
material adverse impact
20
FLAVOUR OF THE MONTH
Why You Should Buy Health Insurance
Lifestyles have changed. Sedentary routines, little exercise, unbalanced diets,
high levels of stress… All these factors impact our health in more than just one
way. Non-communicable diseases such as obesity, diabetes, high blood
pressure, strokes, and heart attacks are on the rise. One in every five Indians is
obese, diabetic, and suffers from high BP, shows data. It is not only important to
keep our health in check, but also safeguard our interests through adequate health
insurance coverage. Remember, illnesses strike without warning and can cause
huge dent our finances. In fact, medical bills are the biggest cause (62%) of
personal bankruptcies in the US. In India too, majority (60%) pay healthcare
expenses out of their pocket. Healthcare costs are rising at an exponential rate.
It is prudent to take health insurance at an early age. Here's the handy guide for
you to ensure protection throughout life stages. Read on.
ICICIdirect Money Manager July 2016
To start with, a few striking
truths…· O v e r 8 0 % o f I n d i a n
population is not covered
under any health insurance
(As high as 86% of rural
population and 82% of urban
population).
· People in villages mainly
depend on `household
income or savings' (68%)
and `borrowings' (25%) to
f u n d h o s p i t a l i z a t i o n
expenses.
· In cities, people rely much
more on their 'income or
savings' (75%) than on
'borrowings' (18%) to fund
their treatment.
·health insurance by people
across all age groups.
· Customers do understand
that healthcare costs have
risen. However, they do not
consider buying health
insurance.
· Nearly half of all deaths in the
country occur due to non
communicable diseases
(NCDs), with cardiovascular
diseases responsible for
23% of them.
(Sources: National Sample Survey
Office (NSSO), Registrar General of
India, insurance company surveys)
Low priority given to buying
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 201621
Amit Bhandari,
Head - Health Underwriting & Claims,
ICICI Lombard General Insurance Company.
Procedures 2008 2013 Increase
%
Heart Valve Replacement
` 1,75,415
` 3,43,145
52%
Knee Replacement
` 2,70,220
` 4,36,730
61%
Cataract Removal
` 16,000
` 25,000
56%
Angiography ` 14,000 ` 22,000 57%
Coronary Artery Bypass Graft
` 1,65,000
` 2,40,000
45%
Appendectomy
` 28,000
` 47,000
66%
Gall Bladder Removal
` 32,000
` 59,000
84%
Angioplasty (PTCA) with 2 Stents ` 1,75,000 ` 2,65,000 51%
Please Note: Rates are as per the approximate cost of treatment. (Source: www.onemint.com), we can add 10% inflation year-on-year from here. (By ICICI Lombard General Insurance Company).
”The prevalence of lifestyle diseases like diabetes and hypertension are rising due to changing lifestyles. Moreover, non communicable diseases are now affecting more young adults than before. In addition to
this, the medical inflation rate is growing. Fai l ing to hold adequate amount of health insurance cover can prove to be a major personal finance disaster. It could lead to either poor health care because of non-affordability or lead an individual into financial distress due to high medical bills. Hence it is better to buy health insurance with adequate cover at early age,” says
In the last 5 years, the medical cost has increased, making it difficult for a common man to borne the expenses from his pocket. Let us look at the cost of few medical treatments in India:
Amit Bhandari, Head - Health Underwriting & Claims, ICICI Lombard Genera l I nsu rance Company.
Rising cost of medical treatments
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 201622
What holds one back from buying health insurance
There are two most common myths that generally hold one back from buying health insurance. One: 'I am young and healthy and do not need health insurance.' Two: 'I have coverage under my employer's group insurance policy and separate cover is not required'.
Many youngsters feel that if they are young and healthy, they do not require any health insurance. However, one should always be prepared to deal with any untoward incident and availing a health insurance policy is the best way.
“A medical exigency can arise at any time in one's life and it is best to be prepared for such an eventuality from early on. The idea l t ime to purchase healthinsurance is when one is younger and healthiest. A
policy purchased early in life and renewed regularly, leads to better claim experiences should the need arise. Certain maladies remain undiscovered unti l symptoms become evident. These pre-existing diseases are covered only after a person holds a health insurance policy for at least a certain number of months (24/ 36/ 48). Therefore, buying health insurance early is a good idea, as the policyholder stays insured at any life stage. Health insurance needs to be renewed regularly to ensure continued coverage especially during old age,” advises
“Further it is always easier to avail insurance at younger age. As age progresses, most insurance companies ask the insured to undergo medical tests and also the criteria for g e t t i n g i n s u r a n c e g e t s stringent,” he adds.
Bhandari.
The premiums are also lower when you enroll in a health insurance cover at early age. For example, At 25, a plan with Rs 5 lakh coverage would cost you around Rs 4000, at 35 you'll have to shell out around Rs 6000 and at 45 the cost rises to Rs 8000.
Secondly, many salaried
employees believe that their
employer's health insurance is
enough and there is no need to
23
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 2016
take separate cover. “However,
it is necessary to check the
details of the group health
i n s u r a n c e p r o v i d e d b y
employer thoroughly. The
coverage amount needs to be
checked for sufficiency. Also
the terms and conditions,
features, exclusions need to be
studied. If the insurance is not
adequa te , i t i s a lways
recommended to have an
individual/ family cover. You
also need to remember that the
group cover will continue only
as long as you are in the job.
The period between switching
j o b s m a y l e a v e y o u
unprotected. Therefore ,
having your own health
insurance policy helps,”
Most employers provide
medical insurance for the
e m p l o y e e s a n d t h e i r
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 salary. In such
says
Bhandari.
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 Even if
not provided for, you may
consider taking it separately
from outside, in order to have a
higher cover, specifically for
your parents. Say for instance,
your employer provides Rs. 4
lakh family floater medical
cover for you, your spouse,
your chi ldren and your
parents. You may consider
taking a top-up plan of Rs. 10
l a k h f o r y o u r p a r e n t s ,
separately. It will help you
recover the expenses incurred
over and above Rs. 4 lakh (your
base cover). Premium for top
up plans is generally much
lower than buying the fresh,
basic health cover.
There are also
available, which may be a
top-up plans.
super top-up plans
24
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 2016
better proposition than top-up
plans. “A top-up cover will pay
you only if your claim amount
(bill for a single hospitalization)
is above the threshold.
Whereas in a super top-up
plan, the claim will be triggered
i f the sum tota l of a l l
hospitalization expenses in a
policy year crosses the
aggregate threshold limit. For
example, if you have a top up
health cover of Rs 10 lakh sum
assured with the threshold
limit of Rs 5 lakh, in case your
claim amount is Rs 8 lakh, then
it will only pay you Rs 3 lakh (8 –
5), and NOT Rs 8 lakh total. The
top up cover will help you only
when your bill is above Rs 5
lakh each time. But if you have
two bills of Rs 4 lakh each, then
the normal top up cover will
not help because no single bill
amount is above the threshold
limit of Rs 5 lakh. That's where
super top-up plans come into
picture, which takes into
consideration the TOTAL of the
bills in a year and not just the
single instance. So in case of
two bills of Rs 4 lakh each, your
total bill is Rs 8 lakh (above
threshold limit of Rs 5 lakh),
then super top-up cover will
pay you, where a top-up cover
will not. Also, as the claim is
triggered only after a certain
deductible limit, premium for
top-up plans are lesser than the
regular mediclaim plan,”
Salaried employees usually
have some form of health
cover provided by their
employers. But for
there is no
such protection. Hence, self
employed persons need to buy
hea l th po l i cy fo r the i r
individual and family needs.
We suggest that they
which
not only cover inpatient
hospitalization cover but also
outpatient treatment cover,
which will cater to overall
healthcare needs. Premium
should not be the only factor to
decide which insurer to go
with.
Health insurance plans can be
b r o a d l y c l a s s i f i e d a s :
which are
explains Bhandari.
self-
employed persons
should go
for comprehensive plans
Types of health insurance policies
Hospitalization plans
25
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 2016
indemnity plans that pay cost
of hospitalization and medical
costs of the insured subject to
the sum insured. These
policies can be taken for an
individual or a family floater
basis. Apart from this, there are
which
provide daily cash benefit to
the insured for every day that
he is hospitalized subject to a
maximum number of days.
Also, there are
which give cover for
severe illnesses like heart
attack, cancer etc. Under these
policies, lump sum benefit
amount is paid if the customer
is diagnosed with a critical
illness for the first time.
“Traditional health policies pay
for basic hospital ization
expenses and expenses
related to day care procedures.
Critical Illness policies are
benefit policies which help the
individual take care of the
greater financial liabilities
rather than just the medical
expenses incurred for the
treatment. Both treatment of
critical illness and recovery will
need time, money and utmost
hospital daily cash products
critical illness
plans
care. It is important to be
f inanc ia l l y secure pos t
treatment also, as there may be
a change required in job and
l i f es ty le . The lumpsum
p a y m e n t r e c e i v e d o n
diagnosis of critical illness will
help in providing this financial
security,”
can also be
opted for which they provide
death and disability benefit in
case of accident.
Hospital Cash, Critical Illness
and Personal Accident covers
are available on standalone
basis or can be taken as an add-
on under the indemnity policy.
There are also some
available in the
market that are catching up –
for specific ailments such as
diabetes, high blood pressure
and cancer. Should you go for
these? “Single-disease policies
are generally bought by people
who are in the high-risk
category. Since the base
hospitalization policy covers all
diseases except the excluded
ones, a single-disease policy is
usually not required. Only such
says Bhandari. Personal
accident covers
single
disease covers
26
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 2016
single diseases that are
otherwise excluded in regular
hospitalization policy may be
relevant. A single-disease
c o v e r p l a n w i l l o f f e r
comprehensive coverage for a
specific disease and serves as
an add-on cover for regular
health insurance policies. At
the time of opting for single-
disease cover, check for the
salient features and benefits in
the plan along with OPD cover,
exclusions, etc. and the
relevance of a single disease
product for you,”
Critical illness policies
usually cover a number of
illnesses like cancer, heart
attack, kidney failure, etc. On
the other hand, a single-
disease cover plan offers
comprehensive coverage for a
specific disease. Currently,
there are plans that cover for
specific diseases such as
dengue, cancer. Before
selecting a suitable health
insurance plan, it is important
to keep in mind that there is no
advises
Bhandari.
How is critical illness cover
different from single-disease
covers?
one size that fits all. Whether
you opt for a single-disease
cover or critical illness cover,
compare health insurance
q u o t e s f r o m d i f f e r e n t
providers to ensure you find
the most competitive deal
possible.
While comparing health
insurance products available in
market, you should look for
major factors like sum insured
options available, extent of
coverage: both in patient & out
patient, room rent capping, if
any, coverage for maternity
and waiting period for the
same, exclusions, length of
waiting period for pre-existing
diseases, optional add-on
covers, disease sub-limits, co-
pay applicability, benefits like
free health checkups, no claim
bonus, etc.
Secondly, efficiency in claim
services of the company is also
very important factor. In house
v s . T PA ( T h i r d P a r t y
A d m i n i s t r a t i o n ) , c l a i m
settlement ratio etc. should be
noted. Insurance is a promise
How to zero down a right policy
27
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 2016
and promptness and fairness
in settling the claims is the
delivery on this promise.
Based on this comparison, you
should narrow down few
products that suit the health
care needs of yourself and
your family. While doing so,
you should keep in mind both
anticipated and unexpected
health care needs in future as
well. After that premiums
should be compared. If the
plan that suits you best and if
the company offering it has
good claim service, it's worth
to choose it even if the
premiums are a little on the
higher side.
“At any stage of life, an
individual should ensure that
he has a comprehensive health
insurance plan which takes
care of his and his family's
needs. Typically at a ,
it is important to consider
purchasing a health plan as
well as disability coverage. If
you are thinking about
, you will want to review
Adequate cover throughout life
stages
young age
starting a
family
your health plan to be sure you
are able to add a new family
member to the plan and make
sure you have adequate
coverage. A family floater
policy can take care of
insurance needs of your
spouse and children till they
are dependent on you. At the
,
you can still continue with your
existing health plan. At the
same time, the market has
certain specific plans which
cater to senior citizens and one
can opt for these also,” says
Bhandari.
The adequate size of cover
depends on your present and
future health care needs, city
where you are staying (medical
costs are different in metro and
n o n - m e t r o c i t i e s ) a n d
affordability. We suggest you
should go for a comprehensive
plan which gives OPD (out-
patient department) and
maternity cover as well which
will cater to your future
healthcare needs as well.
later stage of life as a senior citizen
Making claims: Cashless /
Reimbursement
28
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 2016
You can make a claim under a
health insurance policy on a
c a s h l e s s b a s i s o r
reimbursement basis. For a
claim on cashless basis, your
treatment must be only at a
network hospital with which
your insurance company/ TPA
has a tie-up. The list of network
hospitals is provided along
with policy copy or available
on the company website. You
have to seek authorisation for
availing the treatment on a
c a s h l e s s b a s i s a s p e r
procedures laid down and in
the prescribed form. Once the
claim is authorised by the
insurance company/ TPA,
treatment can be availed and
the claim amount will be
directly settled with the
hospital. If there are any
deductions as per the policy
terms and conditions, the
insured will have to pay for
such part of the claim amount.
Usually when treatment is
done in a non-network
hospital, insured will have to
pay the hospital expenses on
his own and later claim under
the reimbursement process. It
i s n e c e s s a r y t h a t y o u
understand the procedure and
the documents required for
m a k i n g a c l a i m o n
reimbursement basis which
will be mentioned in the policy.
When a claim arises you
should inform the insurance
company as per procedures
required. After hospitalization,
you have to ensure that you
obta in and keep ready
documents such as claim form,
d i s c h a r g e s u m m a r y ,
prescriptions and bills that you
should submit for a claim.
Buying health insurance also
helps you save on taxes under
section 80D. One can save up
to Rs. 60,000 towards health
insurance premiums paid if
assesee and parents both are
senior citizens (above age 60
years) as per current tax laws.
You can also claim tax
deduct ion on expenses
incurred for preventive health
check-ups, up to Rs. 5,000, as a
part of section 80D. All these
deductions are over and above
the deductions available under
section 80C.
Tax benefits: Icing on the cake
29
FLAVOUR OF THE MONTH
ICICIdirect Money Manager July 2016
Summing upWith a lifestyle encompassing stress, pollution and not enough exercise, healthcare related issues are on the rise. Simultaneously, healthcare is b e c o m i n g i n c r e a s i n g l y e x p e n s i v e . T h e s e uncertainties make it even more important to procure a health insurance plan and maintain it regularly to lead a happy and hassle free life.
“Rising cost of medical care and early onset of chronic l i f es ty le re l a ted hea l th conditions have made people aware of the importance of health insurance. Still this awareness has not yet translated into proportionately improved penetration of health insurance in our country. There should be more efforts
towards marke t ing and d e v e l o p i n g v a r i o u s distribution channels for health insurance products. These channels will lead to improved awareness regarding health insurance among different strata of the society. This coupled with various health insurance products with features suitable to specific health needs of population will improve the penetration of health insurance,”
To buy, or to find out about individual health insurance plans, please contact your IC IC Id i rec t Re la t ionsh ip Manager or walk to any ICICIdirect stores. You can also buy a health insurance policy online from ICICI Lombard by visiting ICICIdirect.com.
concludes Bhandari.
Particulars Limit
Mediclaim (Individual / HUF)
Rs. 25,000
Mediclaim towards health of parents who are not senior citizen
Rs. 25,000
Mediclaim towards health of parents who are senior citizen (60 years
and above)
Rs. 30,000
Preventive Health Check-up
Rs. 5,000
Medical Expenditure incurred on oneself or his / her parents. This clause
is applicable only for very senior citizens (80 years or above). Condition:
Provided, there is no medical insurance in force for such persons.
Rs. 30,000
Please send your feedback to [email protected]
30
Tête-à-tête
'Indian economy in the midst of gradual recovery'
We believe that the Indian economy is in the midst of a gradual recovery and
combined with better valuations, domestic focused sectors look more attractive
to us - these include financials, utilities, logistics etc., says Manish Gunwani,
Deputy CIO (Chief Investment Officer), ICICI Prudential Mutual Fund in an
interview with ICICIdirect Money Manager. On an overall basis, we are quite
positive on equities on a 2-3 year time frame, he adds. Excerpts:
Manish Gunwani,
Deputy CIO (Chief Investment Officer),
ICICI Prudential Mutual Fund
ICICIdirect Money Manager July 2016
Q:
A:
The markets have had a good run
post Budget 2016. What's the
outlook ahead?
We can look this from three
angles - macro, valuation and
f l o w s . F r o m a m a c r o
perspective the domestic
macro looks reasonably
attractive with CAD (current
account deficit) and inflation in
control. Globally growth is
tepid which is also hindering
the veloci ty of India 's
growthrev iva l . From a
valuation basis the market is
now in middle zone on
earnings and book value post
this run up. From a flow angle,
globally with dollar weakening
the prospects of flows into
emerging markets in general
and India in particular have
improved. So, on an overall
basis, we are quite positive on
equities on a 2-3 year time
frame.
What are some risks investors
should be watchful of in the near
term?
Some of the key risks to
Q:
A:
31
Tête-à-tête
ICICIdirect Money Manager July 2016
watch in the near term could
be monsoons, Fed being
unexpectedly hawkish which
depends on US data on
inflation and employment and
China's macro becoming
unstable in terms of credit
i s s u e s a n d c u r r e n c y
devaluation.
How would Brexit impact Indian
markets and investors?
The economic activity
impact is unlikely to be high in
the short term. Of course the
political risks for both UK and
EU have gone up - if they
intensify it could flow through
to various markets like
currency, commodities etc.
which could then effect Indian
equit ies also. However
currently the impact seems
limited.
How have been the latest
macroeconomic variables - both
domestic and international?
Early indicators of monsoon
Q:
A:
Q:
A:
are healthy and clearly some
part of the run up in the market
is due to this - if the monsoon is
weak definitely there could be
some impact on the country's
economy. As far as inflation
goes the headwinds and
tailwinds seem to be in
balance. The positive side is
prospects of a good monsoon
and low capacity utilization in
lot of sectors - the headwinds
are the pull back in commodity
prices especially oil in the last
few months and sticky inflation
expectations.
What are your key takeaways
from the past quarter's earnings?
Given muted expectations
the results were quite good.
C lear ly sec tors fac ing
consumers benefitted from the
fact that input prices especially
those linked to crude oil have
been on a deflationary trend.
Also lot of corporates
demonstrated the ability to
control costs much better than
Q:
A:
32
Tête-à-tête
ICICIdirect Money Manager July 2016
expected in an environment
where topline growth is scarce.
Genera l ly the pos i t ive
surprises came from sectors
like auto, FMCG, cement and
industrials.
Concerns on the banking sector
with respect to asset quality, credit
growth and margins have not
abated. What's the road ahead for
this sector?
Clearly there is a big effect of
macro variables like credit
growth, interest rates,
commodity prices etc. on the
profitability of these banks.
While we believe that a fair
amount of asset quality pain is
priced in the valuation of PSU
(public sector unit) banks, one
needs to look at this segment
with caution.
The government has retained
the capital infusion in PSU
Banks at 250bn which we
hope is adequate to support
the economic recovery.
Alternatively, we expect the
Q:
A:
`
Government to infuse more
capital if required as Bank
Recapitalization could boost
the economy's growth and
revival to large extent. With this
budget, first phase of the
deleveraging cycle will be
completed as the government
takes steps to clean up the
Non-Performing Loans in the
system.
Which sectors have you been
overweight and underweight on?
We believe that the Indian
economy is in the midst of a
g r a d u a l r e c o v e r y a n d
c o m b i n e d w i t h b e t t e r
valuations, domestic focused
sectors look more attractive to
us - these include financials,
utilities, logistics etc.
Indian households remain largely
under-invested in equities. How can
the retail investor participation be
increased?
From a structural perspective
we do believe that Indian
households are under invested
Q:
A:
Q:
A :
33
Tête-à-tête
ICICIdirect Money Manager July 2016
in equities and that this asset
class remains the most
attractive for them in a 2-3 year
time frame. We do expect that
domestic investors could shift
their savings share from
physical assets to financial
assets including equities.
We believe that equities
remaining the best major asset
class for domestic investors
from a 2-3 year timeframe and
inves to rs can have a
sys temat i c manner o f
increasing allocation to this
asset class
In the backdrop of the current
market scenario, what is your
advice to new and existing
investors?
It may be a prudent strategy,
thus, to add flavour of funds in
the balanced advantage and
dynamic asset allocation
category. These funds seek to
increase allocation to equity
Q:
A:
when the markets are cheap,
and book profits in equities
when markets are rising
thereby reducing volatility and
providing reasonable returns.
However, if an investor is well
invested in equities, we would
recommend investing this
amount in a staggered manner
through equity mutual funds
over the course of next 6
months. The outlook for equity
markets is positive for the next
3-5 years.
What are the key fundamental
principles of building a successful,
long-term investment portfolio?
We recommend investors to
increase their allocation to an
asset class with attractive
valuations, which is usually
when there is some fear; also,
adopt a long term approach to
investments and avoid selling
in panic.
Q:
A:
The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.
34
ASK OUR PLANNER
How are insurance maturity proceeds taxed?
ICICIdirect Money Manager July 2016
Q:
A:
I bought a policy on 31/12/2007,
which matured in January 2016. The
sum assured of the policy is 80,000
and the annual premium is 10,100.
Is the maturity amount taxable or
not?- Shahid Hassan
You haven't mentioned if your
policy is a pension policy or a
normal unit-linked/endowment
policy. Your policy has been
issued between the period April
01, 2003 and March 31, 2012.
The maturity proceeds of
normal unit-linked / endowment
policies issued in this period are
exempt from tax only if the
premium payable for every year
is less than/upto 20% of the sum
assured (i.e. minimum amount
assured under the policy at any
time during the term of the
policy).
Hence, if your policy is a normal
unit-linked/ endowment policy,
then the maturity proceeds of
your policy will be exempt from
tax, provided the sum assured
`
`
was 50,500 or more in all the
policy years. However, if your
policy is a pension policy, then rd
1/3 of the maturity proceeds
will be received in lumpsum and
exempt from tax and the rd
remaining 2/3 will be received
in the form of annuity and will be
taxed on receipt as per the
income slab in which you fall in
for income tax purpose.
I am a government employee. We
have no pension scheme. I want to
grow capital so that at the time of
retirement I can purchase the
pension plan. My rest of the service
period is 16 years. I want to invest in
mutual fund (MF) @ 6,000 p.m.
May you guide me how to proceed
and in which MF?- Bishwajit Kumar Saha
Investing into mutual funds is
a good way to accumulate your
retirement corpus, given that
you have 16 years for your
retirement. You can look at an
asset allocation of around 70-
80% into equity mutual funds
`
`
Q:
A:
35
ASK OUR PLANNER
ICICIdirect Money Manager July 2016
and the rest into debt funds.
However, before fixing up the
amount of investment, you can
approach a financial planner to
find out how much retirement
corpus would be required to
meet your post-retirement
needs. This will give you a clear
idea on how much to invest for
your retirement and even where
exactly your investments should
be made.
You can refer to 'Research'
section of ICICIdirect.com to
know about the mutual funds
currently recommended by us.
I would like to know which of the
two modes i.e., SIP and Lumpsum
would be better for Equity and Debt
Mutual Funds. Timeframe would be
8-10 yrs in Equity MF and 1-3 yrs in
Debt MF.- Susheel Ratna Raj M
The basic difference between
these two modes i.e. SIP and
Lumpsum is that the former
helps in averaging the cost of
investment as it's done over a
period of time, while the latter
fails to do so, being a one-time
Q:
A:
investment. The averaging
aspect is more relevant in equity
funds, as the level of volatility is
m u c h h i g h e r i n t h e s e
instruments than debt funds.
Hence, for equity funds, SIP is a
better option than lumpsum, as
timing the market and investing
at the lowest point is always a
difficult task.
In debt funds, for the tenure of 1-
3 years, it is ideal to choose
short-term funds as the volatility
in these funds is lesser
compared to long duration
funds. In that case, you could
choose to invest as a lumpsum.
I had taken ICICIPru LifeStage
Pension Advantage policy in year
2010. Till year 2016 I have paid a sum
of 3,50,000 with 50,000 being
paid every year as premium for the
last 7 years. The year of Severity for
the Policy is 2034 and Sum Assured
is 0 (ZERO) Rupees. I want to
withdraw the entire fund value for
this policy and not continue with the
same.
I had not claimed any deduction for
the premiums paid for this policy.
Q:
` `
36
ASK OUR PLANNER
ICICIdirect Money Manager July 2016
Would the total fund value that I
receive would still be taxable? Ifthe
total fund value is taxable then
wouldn't it be the case of double
taxation since I never claimed any
deductions for the premiums paid as
part of this policy in earlier years?- Yogesh Shahane
This being a pension policy,
the entire surrender proceeds
would be added to your income
and taxed as per your income
slab. It does not matter if you
have availed deduction earlier
for the investment into the
policy, as these are dealt
through two different sections in
The Income Tax Act; and there is
no such condition specified in
the relevant sections of the Act.
Can you please tell me tax payable
on following transaction? I have
invested in ICICI Prudential Super
Pension plan. I have not claimed
deduction for the same u/s
80CCC/80C.
Now I want to redeem the plan
before maturity. Please advise on:
What will be tax payable if redeemed
before maturity?
A:
Q:
What will be tax payable on receipt
of maturity?- C.B. Dushi
Please refer the answer to the
previous question, which will
answer your first question. To
answer your second question,
when you withdraw pension
plans on maturity, usually, you rdcan withdraw upto 1/3 of the
maturity proceeds as lumpsum,
which will be exempt from tax; rdthe balance 2/3 of the maturity
proceeds will be converted to
annuity, hich will be added to
your income on receipt and
taxed as per your income slab.
As you may be aware the Bank FD
rates has been shrinked off quarter
on quarter, what is the alternate and
best option to get a reasonable
return? What is the difference
between MIP and FMP products and
which are good funds to start invest
on? What is the applicable tax on
them? What otheral ternate
investment you can suggest.Vasanth L. Iyer
If you are looking to invest
only into debt instruments, apart
A:
Q:
A:
37
ASK OUR PLANNER
ICICIdirect Money Manager July 2016
from Bank Fixed Deposits, there
are a few more options
available. There are non-
convertible debentures (NCDs)
& Fixed Deposits offered by
various corporates. Some of
them offer much higher yield,
when compared to a Bank Fixed
Deposit. However, you should
always check out the credit
rating of these issues and invest
into a high credit rated
instrument.
Fixed Maturity Plans (FMPs) are
similar to Bank FDs with a fixed
term; however, the capital gains
earned on FMPs with a term of
more than 36 months attracts a
lower taxation i.e. 20% with
indexation; the net tax rate after
considering indexation is much
lesser. FMPs are close-ended
schemes.
Monthly Income Plans (MIPs)
are most ly open-ended
schemes and invest mostly into
debt instruments with a little
portion around 10 to 15%
diverted into equity. This helps
MIPs to provide a slightly higher
return than a debt mutual fund;
the taxation part remains the
same as a FMP or any other debt
mutual fund. To know the best
funds under this category, you
can visit Research section of
ICICIdirect.com.
If you are looking for alternation
options in debt for a term of 3
years or more, debt mutual
funds and MIPs are the best bets
which offer betterpost-tax return
than a Bank Fixed Deposit.
Do you also have similar queries to ask our experts? Write to us at: [email protected].
MUTUAL FUND ANALYSIS
38
3 Balanced Funds to Consider
ICICIdirect Money Manager July 2016
ICICI Prudential Balanced Fund
Fund Objective:The primary investment objective of the Scheme is to seek to generate long term capital appreciation and current income from a portfolio that is invested in equi ty and equity re lated securities as well as in fixed income securities. However, there can be no assurance that the investment objective of the Scheme will be realized.
Key Information:
Product Label:
This product is suitable for investors who are seeking*:
• long-term wealth creation solution
• a balanced fund aiming for long term capital appreciation and current income by investing in equity as well as fixed income securities
In current market scenario where the equity market has run up sharply in a short period of time, and the medium to long term outlook remains positive, balanced funds are ideally placed. Balanced funds are suitable for all types of investors.
Balanced funds are hybrid funds that invest in a mix of equity and debt instruments. Balanced maintain around 65-70% exposure to equity markets while the rest is maintained in debt instruments. Balanced funds do well when stock markets are going through a difficult phase as they have a cushion of debt. So, they are better equipped to withstand shocks in falling markets. However, when stock markets are rising, they may not do as well as funds with 100% equity component but perform better than debt funds. Capital gain tax on balanced funds is similar to equity funds viz. exempt after one year and 15% if sold before one year. Debt funds are mainly comprised of government securities or good credit quality corporate bonds. Therefore credit risk is very low in the debt portfolio.
Investors can look to invest in the following funds: HDFC Balanced Fund, ICICI Prudential Balanced Fund, and SBI Balanced Fund.
NAV as on July 12, 2016 ( ) 99.4
Inception Date November 3, 1999
Fund Manager Sankaran Naren
Minimum Investment (`)
Lumpsum 5000
SIP 1000
Expense Ratio (%) 2.33
Exit Load NIL upto 20% of units and for remaining - 1% on or
before 1Y, Nil after 1Y
Benchmark CRISIL Balanced Fund - Aggressive Index
Last declaredQuarterly AAUM(` cr) 3018
`
Fund Manager: Sankaran Naren
Mr. Sankaran Naren has a B. Tech degree from IIT Chennai and MBA from IIM Kolkata. He joined ICICI Prudential AMC in 2004.
39
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
Performance:The fund has consistently outperformed its benchmark over a period of time. The fund has delivered a CAGR return of 15.9% over a period of 5 years
as against benchmark return of 9.4%. Except for 2007, 2008 and 2009, when the marginally underperformed, the fund has outperformed its benchmark in all years.
2015 2014 2013 2012 2011
92.1 90.2 61.9 55.7 43.1
2.1 45.6 11.2 29.4 -9.3
0.5 25.3 6.1 21.3 -14.4
2569 1515 630 410 300Net Assets ( Cr)`
Return (%)
NAV as on Dec 31 ( )`
Benchmark (%)
Calendar Year-wise Performance
Performance vs. Benchmark
Fund Benchmark
12.1
7.6
20.7
15.9
10.8
5.2
11.5
9.4
0
5
10
15
20
25
6 Month 1 Year 3 Year 5 Year
Retu
rn%
ICICI Prudential Balanced Fund
Benchmark
30-Jun-15 30-Jun-14
6.70 17.06 41.23
Fund Name30-Jun-15 30-Jun-14 30-Jun-13
30-Jun-16
3.12 10.58 20.99
Last Three Years Performance
Portfolio:The fund seeks to optimize the r i sk-ad jus ted re turn by distributing assets between both equity and debt markets. In bullish markets equity allocation can go up to 80%. In bear i sh marke ts equ i ty allocation can go down to 65%. This dynamic allocation along with core debt portfolio
reduces the volatility of return.
The equity portion of the fund is managed as a largecap biased diversified portfolio. The stock selection by the fund manager is a key here. The fund manager does not hold typical largecap holding as is common in many diversified
Our View:
40
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
schemes. The fund hold high potential largecap stocks with the objective for long term wealth creation. Balanced
funds in general are ideal funds for conservative investors who want equity participation with low volatility.
%
10.5
5.5
4.3
4.2
4.2
4.1
4.1
4.0
3.9
3.6
08.60% GOI - 02-Jun-2028 Government Securities
07.59% GOI 2029 Government Securities
HCL Technologies Ltd. Domestic Equities
Cipla Ltd. Domestic Equities
Reliance Industries Ltd. Domestic Equities
Bharti Airtel Ltd. Domestic Equities
CBLO Cash & Cash Equivalents
Nifty Index Derivatives-Futures
Power Grid Corporation Of India Ltd. Domestic Equities
Coal India Ltd. Domestic Equities
Top 10 Holdings Asset Type
%9.8
9.8
8.7
6.4
6.3
4.5
4.2
4.1
4.1
3.3
Oil Exploration Domestic Equities
Mining & Minerals Domestic Equities
Refineries Domestic Equities
Telecommunication - Service Provider Domestic Equities
Finance - Investment Domestic Equities
Top 10 Sectors Asset TypeBank - Private Domestic Equities
Power Generation/Distribution Domestic Equities
Pharmaceuticals & Drugs Domestic Equities
Index Derivatives-Futures
IT - Software Domestic Equities
12.841.040.010.856.19
Sharpe ratioR SquaredAlpha (%)
Risk ParametersStandard Deviation (%)Beta
60.515.1
3.4Small
Market Capitalisation (%)LargeMid
%
1
0.9
Whats In
Infosys Ltd.
Axis Bank Ltd.
%
0.4
1
0.9
Whats out
Vedanta Ltd.
Larsen & Toubro Ltd.
Motherson Sumi Systems Ltd.
41
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
SIP Performance(Value if invested 5000 per month (in'000))`
60 1
80 300
600
65.8 228.
3 466.
1
1288.
3
64.6 208.
8
393
979.4
0
200
400
600
800
1000
1200
1400
1Yr 3Yrs 5Yrs 10Yrs
Total Investment Fund Value Benchmark Value
40.048.319.9
--3.2
Fund P/E RatioBenchmark P/E RatioFund P/BV Ratio
Portfolio AttributesTotal StocksTop 10 Holdings (%)
69.319.011.8Cash
Asset AllocationEquityDebt
May-23-2016 1.2Apr-20-2016 1.2Mar-21-2016 1.2
Jun-20-2016
Dividend History
Date Dividend (%)
1.2
Feb-22-2016 1.2Jan-18-2016 1.5
42
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
Data as on July 12,2016 ;Portfolio details as on Jun-2016 ICICIdirect Research
Performance of all the schemes managed by the fund manager
30 -Jun-15 -14 -13
30 -Jun-16 30 -Jun-15 30 -Jun-14
30 -Jun 30 -JunFund Name
ICICI Pru Gold ETF 17.90 -5.72 9.79
Gold-India -- -5.61 12.32
ICICI Pru Regular Gold Savings Fund(G) 13.11 -6.31 9.75
Gold-India -- -5.61 12.32
ICICI Pru Value Fund-3(D) 12.48 11.72 –
S&P BSE 500 -- 11.36 –
ICICI Pru Gilt-Invest-PF(G) 11.49 12.91 1.47
I-Sec Li-BEX -- 13.34 1.67
ICICI Pru Long Term Plan-Ret(G) 11.06 12.61 13.30
Crisil Composite Bond Fund Index -- 11.10 4.55
ICICI Pru Income(G) 10.43 10.64 1.33
Crisil Composite Bond Fund Index -- 11.10 4.55
ICICI Pru Short Term Plan(G) 9.38 9.21 7.84
Crisil Short Term Bond Fund Index -- 9.56 8.76
ICICI Pru Income Opportunities Fund(G) 9.15 11.01 5.08
Crisil Composite Bond Fund Index -- 11.10 4.55
ICICI Pru Multicap Fund(G) 8.07 19.13 45.74
S&P BSE 200 -- 12.01 34.45
ICICI Pru Balanced Advantage Fund(G) 7.31 15.23 31.21
CRISIL Balanced Fund - Aggressive Index -- 10.58 20.99
ICICI Pru Equity Income Fund(G) 7.16 -- –
ICICI Pru Value Fund-1(D) 6.72 13.18 –
S&P BSE 500 -- 11.36 –
ICICI Pru Balanced Fund(G) 6.70 17.06 41.23
CRISIL Balanced Fund - Aggressive Index -- 10.58 20.99
ICICI Pru Top 100 Fund(G) 5.79 7.42 47.67
NIFTY 50 -- 9.95 30.28
43
MUTUAL FUND ANALYSIS
SBI Balanced Fund
Fund Objective:To provide investors long term capital appreciation along with the liquidity of an open-ended scheme by investing in a mix of debt and equity. The scheme will invest in a diversified portfolio of equities of high g rowth compan ies and balance the risk through investing the rest in a relatively safe portfolio of debt.
ICICIdirect Money Manager July 2016
Key Information:
This product is suitable for investors who are seeking*:
•
• Investment in a mix of debt and equity through stocks of high g r o w t h c o m p a n i e s a n d relatively safe portfolio of debt to provide both long term
long-term capital appreciation
NAV as on July 12, 2016 ( ) 101.7
Inception Date January 6, 1996
Fund Manager R. Srinivasan, Dinesh Ahuja
Minimum Investment (`)
Lumpsum 5000
SIP 1000
Expense Ratio (%) 2.36
Exit Load Nil for 10% of investments and 1% for remaining
investment on or before12M, Nil after 12M
Benchmark CRISIL Balanced Fund -Aggressive Index
Last declared QuarterlyAAUM(` cr) 5184
`
Product Label:
Fund Manager: R Srinivasan
Mr. Srinivasan
Performance:
is M.com and MFM. He has been working with SBI AMC since 2009. Prior to joining SBI he has worked with Principal PNB AMC, Motilal oswal, etc
The fund has been an excellent performer in the last 5 years. The fund got off to a great start and then had a difficult time from 2008 to 2011. Since then, this scheme has made a strong comeback. The fund has outpaced the benchmark and its peers in the last five years. The fund has fared very well against both the benchmark and the peers over three and five years.
44
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
2015 2014 2013 2012 2011
230.4 214.6 149.8 134.0 99.2
7.4 43.2 11.9 35.0 -22.2
0.5 25.3 6.1 21.3 -14.4
3242 1226 456 364 377
Return (%)
Calendar Year-wise Performance
NAV as on Dec 31 ( )`
Benchmark (%)
Net Assets ( Cr)`
Portfolio:It maintains a 75-25 equity-debt mix. The equity part is multi cap, with 40-50% of the equity portion, in large caps (defined as the top 100 companies by market cap) and the rest in mid and small caps. Some offbeat mid-cap picks are used to spice up returns. The equity portion features a mix of large- and mid-cap stocks, with a mix of both defensives and cyclicals. About 40 to 50% of the debt
portion is deployed in high yielding credits to improve income. The balance is managed using G-secs and liquid AAA bonds, while keeping in mind the overall view on interest rates. The fund rebalances on a daily basis and caps cash calls at 7.5 per cent.
Consistency in the mandate and the strategy has been evident from 2009 and this has paid off by way of a good show across market phases. The
Our View:
Performance vs. Benchmark
Fund Benchmark
7.1
6
21.1
15.5
10.8
5.2
11.5
9.4
0
5
10
15
20
25
6 Month 1 Year 3 Year 5 Year
Retu
rn%
SBI Magnum Balanced Fund
Benchmark
30-Jun-15 30-Jun-14
5.59 23.63 37.28
Last Three Years Performance
Fund Name30-Jun-15 30-Jun-14 30-Jun-13
30-Jun-16
3.12 10.58 20.99
45
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
multicap approach to equity portfolio offers a good blend of stability and growth to the portfolio. SBI as an AMC has improved significantly over the
last few years in its investment processes and approach. The performance of most of the funds across category has improved significantly over the last few years.
%
6.8
5.2
4.7
4.3
3.7
3.3
2.9
2.6
2.5
2.4
Top 10 Holdings Asset Type
07.59% GOI 2029 Government Securities
07.68% GOI - 15-Dec-2023 Government Securities
State Bank Of India Domestic Equities
07.59% GOI 2026 Government Securities
HDFC Bank Ltd. Domestic Equities
Infosys Ltd. Domestic Equities
Divis Laboratories Ltd. Domestic Equities
07.83% GOI 2018 Government Securities
07.61% GOI - 09-May-2030 Government Securities
eClerx Services Ltd. Domestic Equities
%8.4
7.4
6.8
3.7
3.4
3.3
2.4
2.3
2.2
2.2
Finance - NBFC Domestic Equities
BPO/ITeS
Asset Type
Domestic Equities
Power Generation/Distribution Domestic Equities
Bank - Public Domestic Equities
Pharmaceuticals & Drugs Domestic Equities
IT - Software Domestic Equities
Bank - Private Domestic Equities
Top 10 Sectors
Cement & Construction Materials Domestic Equities
Mining & Minerals Domestic Equities
Household & Personal Products Domestic Equities
10.470.890.010.789.36
Standard Deviation (%)BetaSharpe ratioR SquaredAlpha (%)
Risk Parameters
32.025.712.3Small
Market Capitalisation (%)LargeMid
Dividend History
Date Dividend (%)Jun-24-2016 6
Jun-26-2015 9Mar-20-2015 10
Mar-23-2016 6.5Dec-23-2015 7Sep-24-2015 9
46
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
Data as on July 12,2016 ;Portfolio details as on Jun-2016 ICICIdirect Research
%
1.6
0.8
0Mahanagar Gas Ltd.
Whats In
Bajaj Holdings & Investment Ltd.
Maruti Suzuki India Ltd.
%
0.5
2.40.4
Whats out
Hero MotoCorp Ltd.
ICICI Bank Ltd.Orient Refractories Ltd.
49.0
38.4
27.2--
5.3
Portfolio Attributes
Total Stocks
Top 10 Holdings (%)
Fund P/E Ratio
Benchmark P/E Ratio
Fund P/BV Ratio
68.729.61.7Cash
Asset AllocationEquityDebt
SIP Performance (Value if invested 5000 per month (in'000))`
Total Investment Fund Value Benchmark Value
60 1
80 300
600
64.2 228.
9 473.5
1236.
9
64.6 208.
8
393
979.
4
0
200
400
600
800
1000
1200
1400
1Yr 3Yrs 5Yrs 10Yrs
NAV as on July 12, 2016 ( ) 116.2
Inception Date September 11, 2000
Fund Manager Chirag Setalvad
Minimum Investment (`)
Lumpsum 5000
SIP 0
Expense Ratio (%) 1.99
Exit Load NIL upto 15% of investment and 1% in excess of 15%
of investment on or before1Y, NIL after 1Y
Benchmark CRISIL Balanced Fund- Aggressive Index
Last declared QuarterlyAAUM(` cr) 6207
`
47
MUTUAL FUND ANALYSIS
HDFC Balanced Fund
Fund Objective:The primary objective of the Scheme is to generate capital appreciat ion along with current income f rom a combined portfolio of equity & equity related and debt & money market instruments.
ICICIdirect Money Manager July 2016
Key Information:
Product Label:
This product is suitable for
investors who are seeking*:
•
current income over long term.
Capital appreciation along with
Fund Manager: Chirag Setalvad
Mr. Chirag Setalvad
Performance:
has Bachelor
in Science degree in Business
Administration from University
of North Carolina. He has been
with HDFC Mutual Fund since
2007.
The fund has been a consistent
performer over a longer period
of time. 3 year and 5 year
returns show it to be outpacing
the benchmark by 6-12
percentage points. The fund's
ten-year record is quite
comparable to pure equity
funds. Despite its aggression,
the fund has contained
downside well in the bear
markets of 2011 and 2008,
relative to its peers. On the
debt side, the focus is on
playing duration calls, with no
risks on credit quality.
•
equity and equity related
instruments with balance
exposure to debt and money
market instruments
Investment predominantly in
48
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
2015 2014 2013 2012 2011
108.5 105.3 69.5 63.9 50.5
3.0 51.5 8.8 26.6 -10.6
0.5 25.3 6.1 21.3 -14.4
4911 3087 1208 1101 496Net Assets ( Cr)`
Return (%)
NAV as on Dec 31 ( )`
Benchmark (%)
Calendar Year-wise Performance
Performance vs. Benchmark
Fund Benchmark
10.9
7.8
23.4
15
10.8
5.2
11.5
9.4
0
5
10
15
20
25
6 Month 1 Year 3 Year 5 Year
Retu
rn%
HDFC Balanced Fund
Benchmark
30-Jun-15 30-Jun-14
5.97 18.07 49.60
Fund Name30-Jun-15 30-Jun-14 30-Jun-13
30-Jun-16
3.12 10.58 20.99
Last Three Years Performance
Portfolio:The fund is an ideal long term balanced fund. It is aggressive in nature among its peers and makes the most of bull markets. This fund maintains a more or less steady-state asset allocation between equities and debt, with a 70-72 per cent equity allocation, which is higher than that its peers. The fund avoids cash calls and dynamic changes in allocation. The debt portion is invested mainly in good-quality bonds,
recently extending duration to take advantage of falling interest rates.
The fund maintains slightly higher equity allocation as compared to its peers and does not take cash calls. This makes the fund slightly more aggressive as compared to its peers. The value investment a p p r o a c h f o r e q u i t y investment makes it good long term balanced fund. The debt portion does not take ant
Our View:
49
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
%
5.2
4.9
4.8
3.6
3.3
3.2
2.8
2.8
2.8
2.5
08.30% GOI 2040 Government Securities
Larsen & Toubro Ltd. Domestic Equities
08.28% GOI - 21-Sep-2027 Government Securities
ICICI Bank Ltd. Domestic Equities
State Bank Of India Domestic Equities
08.32% GOI - 02-Aug-2032 Government Securities
CBLO Cash & Cash Equivalents
Infosys Ltd. Domestic Equities
HDFC Bank Ltd. Domestic Equities
Reliance Industries Ltd. Domestic Equities
Top 10 Holdings Asset Type
%
12.2
7.1
5.6
4.7
4.6
4.0
2.4
2.3
2.2
1.9
Pharmaceuticals & Drugs Domestic Equities
Chemicals Domestic Equities
Cigarettes/Tobacco Domestic Equities
Air Conditioners Domestic Equities
Hotel, Resort & Restaurants Domestic Equities
Top 10 Sectors Asset Type
Bank - Private Domestic Equities
IT - Software Domestic Equities
Bank - Public Domestic Equities
Refineries Domestic Equities
Engineering - Construction Domestic Equities
11.931.000.010.848.32
Sharpe ratioR SquaredAlpha (%)
Risk ParametersStandard Deviation (%)Beta
42.515.013.1Small
Market Capitalisation (%)LargeMid
Mar-25-2015 20Feb-28-2014 12.5
5Mar-29-2016 6Dec-29-2015 5Sep-29-2015 5
Jun-28-2016
Dividend History
Date Dividend (%)
creditrisk and is therefore less risky. The performance may be volatile during a short period of time but is likely to be among better performers over a
longer period of time. The fund, therefore, is best for those willing to take on a little risk for higher returns.
50
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager July 2016
Performance of all the schemes managed by the fund manager
-15 -14 -13
30 -Jun-16 30 -Jun-15 30 -Jun-14
30 -Jun 30 -Jun 30 -JunFund Name
Data as on July 12,2016 ;Portfolio details as on Jun-2016 ICICIdirect Research
SIP Performance (Value if invested 5000 per month (in'000))`
Total Investment Fund Value Benchmark Value
60 1
80 300
600
65.3 232.
1 469.
4
1420.
6
64.6 208.8
393
979.
4
0
500
1000
1500
1Yr 3Yrs 5Yrs 10Yrs
%
0
Whats In
Mahanagar Gas Ltd.
%
0.5
Whats out
Greenlam Industries Ltd.
67.035.919.5
--3.7
Fund P/E RatioBenchmark P/E RatioFund P/BV Ratio
Portfolio AttributesTotal StocksTop 10 Holdings (%)
68.9
24.0
7.2Cash
Asset Allocation
Equity
Debt
HDFC Small and Mid Cap Fund-Reg(G) 10.10 20.32 40.58
NIFTY SMALL 100 -- -1.21 85.40
HDFC Mid-Cap Opportunities Fund(G) 8.60 26.72 70.10
Nifty Free Float Midcap 100 -- 17.24 51.13
HDFC Multiple Yield Fund 2005(G) 7.81 7.59 20.59
Crisil MIP Blended Index -- 11.05 8.24
HDFC Long Term Adv Fund(G) 4.53 11.08 48.59
S&P BSE SENSEX -- 9.31 31.03
51
MUTUAL FUND TOP PICKS
Based on our quarterly rankings, we have updated our mutual fund (MF) top picks recently
Mutual Fund Top Picks
Equity
Largecaps
Midcaps
Diversified
ELSS
Birla Sunlife Frontline equity FundICICI Pru Focussed Bluechip Equity FundSBI Bluechip Fund
HDFC Midcap Opportunities FundFranklin India Smaller Companies FundSBI Magnum Global Fund
Franklin India Prima PlusReliance Equity OpportunitiesICICI Prudential Value Discovery Fund
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 FundReliance Medium Term FundICICI Pru Flexible Income Plan
Short Term
Birla Sunlife Short Term FundHDFC Short Term Opportunities FundICICI Pru Short Term Plan
Credit Opportunities FundBirla Sunlife Short Term Opportunities PlanReliance Regular Savings FundICICI 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 year gilt plan
MIP Aggressive
Birla Sunlife Savings 5ICICI Prudential MIP 25DSP Blackrock MIP
Debt
ICICIdirect Money Manager July 2016
52
Our indicative large-cap equity model portfolio has continued to
deliver an impressive return (inclusive of dividends) of 101.5%
since its inception (June 21, 2011) vis-à-vis the index return of
59.1% during the same period, an outperformance of 42%. This
validates our thesis of selecting companies with sound business
fundamentals that form the core theme of our portfolio. Our
midcap portfolio of 16 stocks outperformed the benchmark by
85% since June 2011. Our consistent outperformance
demonstrates our superior stock picking ability as markets in
CY15 aligned to our view of favourable risk-reward, good
franchisee vs. reward at-any-risk businesses. Some key
performers of our portfolio are Lupin, HDFC Bank and TCS in the
largecap portfolio while Natco Pharma, Cummins and Shree
Cement have delivered stupendous returns in the midcap
portfolio.
We reiterate the SIP (systematic investment plan) mode of
investment as the preferred mode of deployment given the
current volatile market conditions. We highlight that the SIP
return of our portfolio has consistently outperformed the indices.
This affirms our belief in the staggered and systematic approach
of investment amid market volatility.
The initial results of some companies were higher than Street
expectations, indicating a revival in the earnings cycle.
Furthermore, India's eight core industries output expanded 6.4%
YoY (yearon-year) in March 2016, which is the fastest growth in
the last 16 months The countries' top automakers are off to a
strong start in the new financial year with all segments passenger
vehicles (PV), two-wheelers, commercial vehicles (CV) and
tractors reporting strong April sales. These initial upticks are the
lead indicators for an economic revival.
Given the last revamp in the portfolio, we have made minimal
changes in the current edition, to capture the new opportunities
available in the market. Following the same we have reshuffled
EQUITY MODEL PORTFOLIO
ICICIdirect Money Manager July 2016
53
EQUITY MODEL PORTFOLIO
the weights of some companies. Among large caps, we have
reduced the weight of L&T by 1% and simultaneously increased
the weights in Lupin and Dr Reddy's by 1% each. Furthermore,
affirming our view on consumption demand, we have added
Marico in our large cap portfolio. We believe that as the softness
in commodities continues, oil & gas and metal sectors would
continue to remain under pressure. Following this, we have
exited Tata Steel from large caps Furthermore following the
prospects of a good monsoon we have added Rallis in our
midcap portfolio and exited Castrol.
In the large cap space we continue to remain positive on auto,
infrastructure & cement. Relative to the benchmark index, we are
underweight on BFSI (Banking, Financial services and
Insurance).
We continue to remain underweight on metals and oil & gas with
our only pick being Reliance Industries, which has a better risk-
reward opportunity. We expect PSU (public sector unit) banks to
underperform next year owing to steep asset quality woes
ahead. In the private banking space, we prefer large banks with a
strong retail presence. We continue to remain overweight 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, pharm!, 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 Nestlé in the consumer space and L&T & NBCC in the infra
space.
House view on Index: We expect Sensex EPS to de-grow 3.5% to
1311 in FY16E. However, following the de-growth in two
consecutive year, Sensex EPS is expected to grow 19% in FY17E
to 1559.
`
`
ICICIdirect Money Manager July 2016
54
EQUITY MODEL PORTFOLIO
ICICIdirect Money Manager July 2016
Name of the company
Largecap Stocks
Model Portfolio
Largecap(%)
Midcap(%)
Diversified(%)
Auto 14 10
Tata Motor DVR 4 3
Bosch 3 2
Maruti 4 3
Eicher Motors 3 2
BFSI 23 16
HDFC Bank 8 6
Axis Bank 3 2
HDFC 8 6
Bajaj Finance 4 3
Power, Infrastructure & Cement 11 8
L & T 4 3
UltraTech Cement 3 2
Reliance Industries 4 3
FMCG / Consumer 17 12
ITC 7 5
Marico 3 2
Zee Entertainment 2 1
Asian Paints 5 4
Pharma 14 10
Lupin 6 4
Dr Reddys 5 4
Aurobindo Pharma 3 2
IT 21 15
Infosys 10 7
TCS 8 2
Wipro 3 2
Largecap share in diversified 100 70
55
EQUITY MODEL PORTFOLIO
ICICIdirect Money Manager July 2016
ICICI Securities Ltd has received an investment banking mandate from group company of Larsen and Toubro Ltd. The report is prepared based on publicly available information.
Auto 6 2
Bharat Forge 6 2
BFSI 6 2
Bharat Forge 6 2
Consumer Discretionary 36 11
Symphony 6 2
Supreme Ind 6 2
Kansai Nerolac 6 2
Pidilite 6 2
Interglobe Aviation 6 2
Arvind 6 2
Infrastructure, Defence & Logistics 26 8
NBCC 8 2
Ramco Cement 6 2
Bharat Electronics 6 2
Concor 6 2
FMCG & Agro 14 4
Rallis 6 2
Nestle 8 2
Pharma 12 4
Natco Pharma 6 2
Torrent Pharma 6 2
Midcap share in diversified 100 30
Total of all three portfolios 100 100 100
56
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
July 14, 2016
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 July 14, 2016
EQUITY MODEL PORTFOLIO
ICICIdirect Money Manager July 2016
101.5
145.6
114.9
59.1 60.4 66.0
0
25
50
75
100
125
150
175
%
6,20
0,00
0
6,20
0,00
0
6,20
0,00
0
8,27
9,86
2
12,0
07,6
83
8,96
0,35
1
6,99
4,17
6
5,68
0,86
1
8,56
9,39
0
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
|
QUIZ TIME
1. Under section 80D, one can save tax up to Rs. _______ towards health insurance premiums paid if assesee and parents both are senior citizens (above age 60 years).
2. Capital gains earned on fixed maturity plans (FMPs) with a term of more than 36 months attract tax of _______ per cent with indexation.
3. The Employees Provident Fund Organisation (EPFO) may invest up to _______ per cent of its investable amount in equities over a period of time.
4. Health insurance premiums tend to go down as one ages. True / False
5. The entire surrender proceeds of a pension policy are taxable. 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 June 2016 quiz are:
1. Cabinet has approved big pay hike for government employees. The Seventh Pay Commission had recommended a _______ per cent increase in pay.
A: 23.5%
2. _______companies are in race to manage EPFO's equity investments in Fy17.
A: Seven
3. NRIs are allowed to buy life insurance policies in India. True / FalseA: True
4. The current interest rate offered on Senior Citizens Savings Scheme is _______% p.a.
A: 8.6%
5. Expand ULHIP.A: Unit-linked health insurance plans
Congratulations to the following winners for providing correct answers! K L Lakshmipathi; B S R Murthy; Uma Rengaswamy
57ICICIdirect Money Manager July 2016
58
PRIME NUMBERS
Equity Markets
ICICIdirect Money Manager July 2016
Domestic Equity Indices
Global Equity Indices
Sectoral Indices
30-Jun-16 31-May-16 Change (%)
CNX Nifty 8287.8 8160.1 1.6%
CNX Midcap 13816.5 13292.7 3.9%
S&P BSE Sensex 26999.7 26668.0 1.2%
S&P BSE 100 8430.0 8276.7 1.9%
S&P BSE 200 3513.8 3442.8 2.1%
S&P BSE 500 11029.5 10761.5 2.5%
30-Jun-16 31-May-16 Change (%)
Dow Jones 17,930.0 17,787.2 0.8%
S&P 500 2,098.9 2,097.0 0.1%
Nasdaq 4,842.7 4,948.1 -2.1%
FTSE 6,504.3 6,230.8 4.4%
DAX 9,680.1 10,262.7 -5.7%
CAC 40 4,237.5 4,505.6 -6.0%
Nikkei 15,575.9 17,235.0 -9.6%
Hang Seng 20,794.4 20,815.1 -0.1%
Shanghai Composite 2,929.6 2,916.6 0.4%
Taiwan Weighted 8,666.6 8,535.6 1.5%
Straits Times 2,840.9 2,791.1 1.8%
30-Jun-16 31-May-16 Change (%)
S&P BSE Auto 19,744.6 19,363.3 2.0%
S&P BSE Bankex 20,531.2 20,111.7 2.1%
S&P BSE FMCG 4,570,470 4,343,881 5.2%
S&P BSE Healthcare 15,493.0 15,246.2 1.6%
S&P BSE Metals 8,519.7 7,950.4 7.2%
S&P BSE Oil & Gas 9,721.0 9,322.0 4.3%
S&P BSE Power 1,996.1 1,871.7 6.6%
S&P BSE Realty 1,532.8 1,421.1 7.9%
S&P BSE Teck 6,068.8 6,227.1 -2.5%
59
PRIME NUMBERS
ICICIdirect Money Manager July 2016
Debt Markets
Government Securities (G-Sec) Yields (in %) Jun-16 Change (bps)May-16
Corporate Bond Yields (in %) Change (bps)Jun-16 May-16
Commercial Paper (CP) Rates (in %) Change (bps)Jun-16 May-16
Treasury Bill (T-Bills) Yields (in %) Change (bps)Jun-16 May-16
Volatility Index (VIX)
30-Jun-16 31-May-16 Change (%)
VIX 16.29 16.05 1.5%
10 year 7.45 7.47 -2
5 year 7.39 7.45 -6
3 year 7.14 7.23 -9
1 year 7.03 7.05 -2
AAA 10 year 8.36 8.31 5
AAA 5 year 8.18 8.22 -4
AAA 3 year 8.05 8.11 -6
AAA 1 year 7.93 7.95 -2
AA 10 year 9.09 9.09 0
AA 5 year 8.89 8.89 0
AA 3 year 8.69 8.69 0
AA 1 year 8.40 8.40 0
12 Months 8.27 8.31 -4
6 Months 8.08 8.16 -8
3 Months 7.79 7.98 -19
1 Month 7.60 7.73 -13
91D TB 6.65 6.84 -19
182D TB 6.79 6.92 -13
364D TB 6.88 6.93 -5
60
PRIME NUMBERS
10-year benchmark yields (%) across countries
Macro-economic Indicators
Consumer price index (CPI)
Wholesale price index (WPI)
ICICIdirect Money Manager July 2016
Month
Index of industrial production (IIP) Sector-wise growth rate (%)
Countries 30-Jun-16 31-May-16 Change in bps
US 1.47 1.85 (38)
UK 0.87 1.43 (56)
Japan (0.22) (0.11) (11)
Spain 1.16 1.47 (31)
Germany (0.13) 0.14 (27)
France 0.18 0.48 (30)
Italy 1.26 1.36 (10)
Brazil 12.07 12.99 (92)
China 2.86 2.97 (11)
India 7.45 7.47 (2)
Items Weights(%) Apr-16 May-16 Jun-16
Food&bev. 45.86 6.29 7.20 7.38
Pan,tob& intox. 2.38 8.04 7.82 7.28
Cloth & Foot 6.53 5.56 5.37 5.01
Housing 10.07 5.37 5.35 5.46
Fuel & light 6.84 3.03 2.94 2.92
Misc. 28.31 4.26 3.96 3.85
CPI 100 5.47 5.76 5.77
Weights Apr-16 May-16 Jun-16
WPI 100.0 0.34 0.79 5.50
Primary Articles 20.1 2.34 4.55 4.55
Fuel & Power 14.9 -4.83 -6.14 -3.62
Manufactured Goods 65.0 0.71 0.91 1.17
May-16 Apr-16 Mar-16 Weight (%)
Mining 1.3 1.1 0.3 14
Manufacturing 0.7 -3.7 -1.0 76
Electricity 4.7 14.6 11.8 10
Total 1.2 -1.3 0.3 100
61
PRIME NUMBERS
Currencies and CommoditiesCurrencies
Commodities
Sources for above data: Bloomberg, Reuters, CRISIL, MOSPI, ICICIdirect.com Research
ICICIdirect Money Manager July 2016
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 June 30, 2016
Debt Funds Returns (in %)
Returns as on June 30, 2016
Tenure Liquid Funds Short-termincome funds
Ultra short-term funds
Long-termincome funds
Gilt funds
30-Jun-16 31-May-16 Change (%) Status
USDINR 67.53 67.26 -0.4% Depreciated
EURINR 75.24 75.08 -0.2% Depreciated
GBPINR 90.90 98.36 7.6% Appreciated
AUDINR 50.37 48.84 -3.1% Depreciated
CHFINR 69.17 67.99 -1.7% Depreciated
JPYINR 0.66 0.60 -8.6% Depreciated
CNYINR 10.16 10.21 0.6% Appreciated
30-Jun-16 31-May-16 Change (%)
Crude ($/barrel) 49.7 49.7 0.0%
Gold ($/ounce) 1,322.2 1,215.3 8.8%
6 months 4.06 3.77 4.65 3.88
1 year 3.35 7.54 0.11 1.64
3 year 21.82 33.08 16.80 20.66
5 year 12.77 19.73 10.52 12.51
6 months 7.65 8.63 8.32 9.04 11.06
1 year 7.68 8.47 8.14 8.78 9.88
3 year 8.44 8.48 8.71 7.72 8.01
62
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 July, 2016.
Schedule for Beginners' programme on Futures and Options (F&O) TradingSr.No
City Dates For More Information & Registration call:
Premium Education Programmes Schedule
ICICIdirect Money Manager July 2016
Schedule for Fast-Track Programme on Futures & Options (F&O)Sr.No City Dates For More Information & Registration call:
Sr.No
City Dates For More Information & Registration call:
Schedule for Foundation Programme on Stock Investing
1 Navi Mumbai 16th & 17th July 2016 Kusmakar on 7875442311
2 Pune 23rd & 24th July 2016 Kusmakar on 7875442311
3 New Delhi 23rd & 24th July 2016 Harneet on 9528152693
4 Chennai 23rd & 24th July 2016 Abdul on 8939930837
5 Thane 23rd & 24th July 2016 Kusmakar on 7875442311
6 Mumbai 23rd & 24th July 2016 Kusmakar on 7875442311
7 Jaipur 23rd & 24th July 2016 Harneet on 9528152693
8 Rajahmundry 24th July 2016 Manish on 8451057349 and Shraddha on 8451942818
9 Ahmedabad 24th July 2016 Yogesh on 8238053563
10 Thane 16th & 17th July 2016 Kusmakar on 7875442311
11 Nagpur 16th & 17th July 2016 Kusmakar on 7875442311
12 Hyderabad 16th & 17th July 2016 Manish on 8451057349 and Shraddha on 8451942818
13 Chennai 23rd & 24th July 2016 Abdul on 8939930837
14 New Delhi 23rd & 24th July 2016 Harneet on 9528152693
15 Pune 30th & 31st July 2016 Kusmakar on 7875442311
16 Mumbai 30th & 31st July 2016 Kusmakar on 7875442311
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast-track Programme on Stock Investing
17 Bhubaneshwar 17th July 2016 Jayeeta on 9007391920
Sr.No City Dates For More Information & Registration call:
Schedule for Technical Analysis Programme
18 New Delhi 16th & 17th July 2016 Harneet on 9528152693
19 Chennai 16th & 17th July 2016 Abdul on 8939930837
20 Bangalore 23rd & 24th July 2016 Subrata on 9620001478
63
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
ICICIdirect Money Manager
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast-track on Technical Analysis Programme
Sr.No
City Dates For More Information & Registration call:
Schedule for Techno Derivatives Programme
Sr.No
City Dates For More Information & Registration call:
Schedule for Advanced Derivatives Trading Strategies Programme
Sr.No
City Dates For More Information & Registration call:
Schedule for Professional Trader & Investor Programme
July 2016
21 Mysore 16th July 2016 Subrata on 9620001478
22 Jodhpur 17th July 2016 Harneet on 9528152693
23 Surat 24th July 2016 Yogesh on 8238053563
24 Pune 16th & 17th July 2016 Kusmakar on 7875442311
25 New Delhi 16th & 17th July 2016 Harneet on 9528152693
26 Kolkata 23rd & 24th July 2016 Jayeeta on 9007391920
27 Coimbatore 23rd July 2016 Subrata on 9620001478
28 Salem 16th July 2016 Subrata on 9620001478
29 Mysore 16th July 2016 Subrata on 9620001478
30 Chennai 23rd & 24th July 2016 Subrata on 9620001478
31 Erode (Tirupur) 23rd July 2016 Subrata on 9620001478
32 Tirunelveli 30th July 2016 Subrata on 9620001478
33 Kolkata 15th to 19th July 2016 Jayeeta on 9007391920
34 Pune 22nd to 24th July 2016 Kusmakar on 7875442311
35 Bangalore 29th July to 2nd Aug 2016 Subrata on 9620001478
36 Chandigarh 29th July to 2nd Aug 2016 Harneet on 9528152693
37 Chennai 30th & 31st July 2016 Abdul on 8939930837
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