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UNLOCKOPTIMISM

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Volume 20JULY 2020

For Private Circulation Only.

Prologue

Quite Briefly

Global economies prepare to facesevere contraction in growth

India Macro Update

Equities racing ahead of economic realities

India Fixed Income: Yields fall across the curve...

Gold gliding at high altitude, likely to stay elevated

US $ remains the preferred destination

Brent range-bound, but upside pressures abound

Enhanced Efficiency Model: En Ef Model

Recommended Equity schemes

Recommended Debt schemes

Emkay L.E.A.D PMS

PMS Products: An Update

Emkay Capital Builder Strategy

Estate & Succession Planning

HUF & Transfer of Assets

Notes

Model Portfolio

Disclaimer

03

05

08

12

14

16

18

19

20

21

24

27

29

30

31

32

36

37

38

NAVIGATOR | VOLUME 2002

06

Prologue

CEO

SPE

AK

The equity market indexes have moved up, quite close to the pre-March levels, in the last four weeks. This is a testimony of the inherent intention to scale the peaks once again. There is a significant amount of optimism that is being priced in at this juncture, and it is the result of strong expectations that output and employment will pick up soon. While it is rational for markets to price-in both optimism and pessimism, we need to be cautious about irrational exuberance borne of plain hope. This is where an appropriate mode of accessing the markets assumes greater relevance.

There is an interesting strand of investor behaviour which often gets repeated, again and again. There are many investors who were not comfortable with invest-ing even when the indexes were at March lows. The expectation was that it could test still lower levels. And when the markets started rising, the fear was whether the rise was sustainable. While it is logical and rational to think on those lines, practical wisdom and experience bears it out that when the markets are looking cheap on multiple parameters it is a good time to invest. It is here that the merits of phased investments come in, as an appropriate mode for approaching the markets and making investments. From end of March till this day, three to four tranches of investments would have been done at different levels, from the lowest till here. That would have left sufficient space for future deployments too, even if the markets trended lower from here. The objective of mentioning it here is just to highlight how procrastination creates a gulf between our thinking and action.

The fact is that, it is still too early to make any reasonable assessments about the impact of the pandemic and the lockdown on the economy. This is due to the fact that the spread of the pandemic is yet to be contained effec-tively not only in India but in other parts of the world as well. The lockdown is being reversed in some places gradually whereas it is still operational in some of the key cities. This makes any estimates difficult. The govern-ment tax collections have come down, sales have dipped, demand is yet to revive, and all this makes any assessment difficult. It may be another two or three months before we will have a clearer picture. Another factor that we need to consider is the fiscal and mone-tary stimuli that has been initiated by the government

BHAVESH SANGHVI

and the RBI, and the positive impact of that on the econ-omy. For the rural employment program an amount close to ₹1.50 Lakh Cr has been allocated. This will show its positive impact through rural employment levels, rural incomes, and rural demand. In the urban areas there are labour oriented segments like hotels and hospitality, malls, etc. and these facilities must re-open before we may see the first green shoots.

The lesson which markets have reiterated is that - keep it simple and focus on good businesses with good man-agement. While investing in portfolios, portfolios which maintain holdings in quality stocks alone should be invested into because they have better resilience in times of crisis. Good portfolios fall much less than the markets, and when the markets rise, they rise faster than the market. Further, another basic test of portfolios is their track record especially in the recent past, or say, last one year. Incidentally, I would like to bring to your atten-tion the two strategies that we run at Emkay - Emkay L.E.A.D and Emkay’s 12 - based on the principles of quali-ty, leadership and governance. These are two high quali-ty portfolios. Well-managed portfolios from both the mutual funds and PMS space, selected using an appro-priate selection methodology is what makes investment sense.

Hope you are all keeping fit and fine, and in good health.

Cheers!! Bhavesh SanghviCEO, Emkay Wealth


The equity market indexes have moved up, quite close to the pre-March levels, in the last four weeks. This is a testimony of the inherent intention to scale the peaks once again. There is a significant amount of optimism that is being priced in at this juncture, and it is the result of strong expectations that output and employment will pick up soon. While it is rational for markets to price-in both optimism and pessimism, we need to be cautious about irrational exuberance borne of plain hope. This is where an appropriate mode of accessing the markets assumes greater relevance.

There is an interesting strand of investor behaviour which often gets repeated, again and again. There are many investors who were not comfortable with invest-ing even when the indexes were at March lows. The expectation was that it could test still lower levels. And when the markets started rising, the fear was whether the rise was sustainable. While it is logical and rational to think on those lines, practical wisdom and experience bears it out that when the markets are looking cheap on multiple parameters it is a good time to invest. It is here that the merits of phased investments come in, as an appropriate mode for approaching the markets and making investments. From end of March till this day, three to four tranches of investments would have been done at different levels, from the lowest till here. That would have left sufficient space for future deployments too, even if the markets trended lower from here. The objective of mentioning it here is just to highlight how procrastination creates a gulf between our thinking and action.

The fact is that, it is still too early to make any reasonable assessments about the impact of the pandemic and the lockdown on the economy. This is due to the fact that the spread of the pandemic is yet to be contained effec-tively not only in India but in other parts of the world as well. The lockdown is being reversed in some places gradually whereas it is still operational in some of the key cities. This makes any estimates difficult. The govern-ment tax collections have come down, sales have dipped, demand is yet to revive, and all this makes any assessment difficult. It may be another two or three months before we will have a clearer picture. Another factor that we need to consider is the fiscal and mone-tary stimuli that has been initiated by the government

Prologue and the RBI, and the positive impact of that on the econ-omy. For the rural employment program an amount close to ₹1.50 Lakh Cr has been allocated. This will show its positive impact through rural employment levels, rural incomes, and rural demand. In the urban areas there are labour oriented segments like hotels and hospitality, malls, etc. and these facilities must re-open before we may see the first green shoots.

The lesson which markets have reiterated is that - keep it simple and focus on good businesses with good man-agement. While investing in portfolios, portfolios which maintain holdings in quality stocks alone should be invested into because they have better resilience in times of crisis. Good portfolios fall much less than the markets, and when the markets rise, they rise faster than the market. Further, another basic test of portfolios is their track record especially in the recent past, or say, last one year. Incidentally, I would like to bring to your atten-tion the two strategies that we run at Emkay - Emkay L.E.A.D and Emkay’s 12 - based on the principles of quali-ty, leadership and governance. These are two high quali-ty portfolios. Well-managed portfolios from both the mutual funds and PMS space, selected using an appro-priate selection methodology is what makes investment sense.

Hope you are all keeping fit and fine, and in good health.

Cheers!! Bhavesh SanghviCEO, Emkay Wealth


Quite BrieflyThe principle of not going longer on duration and not deeper in credit is still valid and should be followed without any dilution in fixed income portfolios. The pressures likely to emerge from rising non-performing assets are a natural consequence of the extreme financial distress caused by the pandemic and the lockdown. The elevated credit risk is reflected in the rise in the number of downgrades to upgrades. The elevated credit risk is likely to stay with the markets for another 12 to 18 months, till a meaningful recovery in business conditions is achieved. Preferred portfolios will have a substantial portion in AAA rate papers and instruments.

The old ten-year benchmark at 6% and the new ten-year benchmark at 5.80% have been trading in very narrow ranges and have not made any directional move as such, despite the huge surplus in systemic liquidity. While the short end rates have moved down in response to rate cuts and liquidity, it is only reasonable that the long end also may adjust to some extent. But the concerns on fiscal deficit, the large issues in the primary at the long end of the curve and the signs of likely aggravation in inflationary pressures, mainly food inflation, are likely factors that have infused an element of caution while dealing at the long end. On a risk-adjusted return basis, the short to mid sector looks more attractive at this juncture. In equities, there is a probability of increased volatility in the markets, mainly from the friction between the US and China, on the trade, pandemic related issues, and the status of Hong Kong, friction in the South China Sea. The border face-off between India and China, the US presidential elections due early November this year are also factors that may be reckoned with in the medium term. Therefore, the investment preferences should ideally focus on insulating portfolios against undue volatility. This is attained to a significant extent by concentrating more on quality stocks as we have indicated from time to time. These companies have strong balance sheets, leadership position in their respective sectors and have good governance standards. This would help avoid excessive volatility as stronger companies and their prices may be better resilient in times of deep corrections and on occasions of exuberance.

The choice of funds and portfolios should take cognizance of the above factors, and investments should be undertaken in a phased manner over the next six to nine months which would also leave some space for additional purchases, in case of corrective downward movements.

Dr. K. Joseph ThomasHead Research, Emkay Wealth


Global economies prepare toface severe contraction in growth


One of the unique features of the current order of things is the proactive central bank initiatives to mitigate the financial distress in the economy and the markets. Central banks across the world resort-ed to use of non-conventional methods to combat this invisible yet powerful enemy. The most common and distinguishable feature of central bank activity has been the way they have been influ-encing the yield curve and the term structure of interest rates, by infusion of liquidity as well as by switches between maturities on the yield curve, and also actions like selling the short end and buying the long end and vice versa. It is through the specific and targeted yield curve modifications that central banks have been giving effect to their policies. This is an interesting scenario, and it is also a much-evolved central banking from the days of Beckhart.

On January 9, 2020, the Fed view was like this - “The U.S. economy begins the year 2020 in a good place. The unemployment rate is at a 50-year low, inflation is close to our 2 percent objective, gross domestic product growth is solid, and the Federal Open Market Committee's (FOMC) baseline outlook is for a continuation of this performance in 2020.” But the pandemic and the lockdown changed all this very soon. The Fed on June 10, 2020 kept the policy rate unchanged at near zero, and they also underlined the resolution to keep the rates at low levels for a prolonged period of time to support growth and stability. The Fed has also clearly indicated that economic growth will remain weak and inflation may pick up over the next one or two years. The Fed expects the unemployment rate for 2020 to be at 9.30%, and it may come down to 5.50% in 2022. This is far above the 3.50%. That would be well above the level they expect to prevail over the longer run in a healthy economy and far above the historically low jobless rates that preceded the virus. Fed Chairman says that the speed of recovery remains “extraordinarily uncertain”, and that the Fed’s immediate target would be to prevent any “lasting damage” to the economy.

The US presidential election is one of the important events that is coming up in the next few months. This would be of consequence to the entire range of relationships of the US with the external world. The question would be one of continuity or a break with the policies of the last four years because the

Global economies prepare to face severe contraction in growth


current president followed a completely different path to external relations and business. The trade issues with China and Europe and similar events concerning the US participation in international agencies were reviewed by the president for modifications. The policy changes were more or less focused on primarily serving the US interests around the world and it needs to be seen how the elec-torate responds this time after a full term of the current president. The current state of the economy does not instil much confidence with high levels of unemployment and wide-spread bankruptcies, mainly caused by the pandemic and the lockdown. But the proposed cash spent of almost US$4 trillion is no small amount to be pumped into the economy by the Fed to ease the overall economic conditions. The benefits of this would definitely percolate down to the lower strata of society, but it needs to be seen how much of this is going to be actually gained or lost owing to the raging spread of the pandemic, affecting one of the largest populations in any single country.

The European Commission has EUR 750 billion planned for financial support by way of credit and loans for the whole region. In addition to this, the ECB will be expending close to EUR 600 billion for asset purchases. Both put together is a good program to help the economies swim through the current crisis. The numbers for Europe are likely to have an uptick much earlier than that of the US. GBP 645 billion is the amount which the Bank of England is likely to deploy for asset purchases,mainly the government bonds. The aggressive policy response from the central banks is one of the certain features that has uplifted the sentiments in the financial markets.

China presents a more complex picture with several issues around which the country needs to work its way to keep the economy going. The trade and tariff issues with the US is likely to get accentuated given the fact that China is the source of the pandemic that has led to acute financial stress in the whole world. The issues concerning the status of Hong Kong, the claims over the South China Sea and the border dispute with India are all matters that would gradually get reflected in the direction that China is going to take in its relationship with the rest of the world. Attaining the levels of growth seen earlier in the last one decade seems difficult though the country may be in the positive territory for overall growth this year and in the coming year too.

India Macro Update

The core sector growth continued to shrink in the month of May as well. The growth rate of Index of Eight Core Industries for May 2020 declined by 23.4% compared to a decline of 37% in the previous month of April 2020. Its cumulative growth during April to May, 2020-21 was -30.0%. The slowdown in the core industries growth rates is mostly attributable to the nationwide lockdown effective till the month of May.

Out of the eight core sectors, seven sectors reported contraction in growth rates. The slowdown in demand as well as the complete shutting-down of production facilities due to lockdown has led to the contraction seen in core sectors. Steel production was the worst hit, with the contraction of more than 48% in the month of May. On the other hand, fertilizers production was robust and reported a positive growth of 7.5% in the month of May.

The eight core sectors represent more than 40% of the Index of Industrial Production (IIP). Given the sharp contraction in core sector growth, the IIP growth is expected to be in line and continue to con-tract in the month of May. The core sector growth and also IIP are only expected to see some turna-round in the month of June, when nationwide lockdown was partially lifted. The recovery in growth of infrastructure sectors (steel, cement and electricity) would be keenly watched to gauge any recovery in the economic activity.

CORE SECTOR GROWTH

India’s current account balance (CAB) recorded a marginal surplus of US$0.6 billion (0.1 per cent of GDP) in Q4 of 2019-20 as against a deficit of US$4.6 billion (0.7 per cent of GDP) in Q4 of 2018-19 and US$2.6 billion (0.4 per cent of GDP) in the preceding quarter, i.e., Q3 of 2019-20. The surplus in the current account in Q4 of 2019-20 was primarily on account of a lower trade deficit at US$35.0 billion and a sharp rise in net invisible receipts at US$35.6 billion as compared with the corresponding period of last year.

The lockdown situation and the fall in demand led to subdued import demand. The fall in crude oil prices also helped India in posting a current account surplus. The remittances from Indians employed overseas too supported the capital account. Private transfer receipts, mainly representing remittanc-es by Indians employed overseas, increased to US$20.6 billion, up by 14.8 per cent from their level a

BALANCE OF PAYMENTS (BOP)

% Change Over Previous Year

Apr-20 May-20Industry

1. Coal

2. Crude Oil

3. Natural Gas

4. Petroleum Refinery Products

5. Fertilizers

6. Steel

7. Cement

8. Electricity

Overall Index

-15.46%

-6.35%

-19.89%

-24.16%

-4.49%

-78.71%

-85.26%

-22.96%

-37.00%

-14.02%

-7.06%

-16.76%

-21.26%

7.47%

-48.42%

-22.24%

-15.58%

-23.35%


India Macro Update

Given the paucity of data, the core inflation numbers could not be calculated as well.

Given the lockdown conditions across the country, the headline CPI based inflation numbers were not released for the month of May as well. The price data collection exercise has been in suspension since 19th Mar’20. The inflation data for only such commodities or services sub-groups was declared for which adequate trade data was available. Even as the headline numbers were not collated, the key data point of food inflation was released.

The groups or sub-groups of CPI for which data compilation have been possible are Food & Bever-ages, Housing, Fuel & Light and Health (within Miscellaneous group). The Consumer Food Price (CFP) Index inflation for the month of May’20 was reported at 9.28% as compared to 10.49% in the preceding month. Within the food basket, vegetable prices moved lower whereas prices of meat & fish spiked. The inflation for Housing segment was reported at 3.66% for the month of May’20 as compared to 3.94% during the preceding month.

The headline inflation numbers have now not been released for the second month in a row. The data collation difficulties have led to disruption in calculation of key economic indicators. The pandemic and the resultant lockdown have brought the entire focus of policy makers on the growth concerns. Over the near term, inflationary risks, if any, are expected to be ignored in favour of gearing the fiscal as well as the monetary policy towards supporting growth. Given this

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9.28%

Jan

-14

Ap

r -1

4Ju

l -14

Oct

-14

Jan

-15

Ap

r -1

5Ju

l -15

Oct

-15

Jan

-16

Ap

r -1

6Ju

l -16

Oct

-16

Jan

-17

Ap

r -1

7Ju

l -17

Oct

-17

Jan

-18

Ap

r -1

8Ju

l -18

Oct

-18

Jan

-19

Jan

-20

Ap

r -1

9

Ap

r -2

0

Jul -

19O

ct -1

9

Consumer Food Price Index16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

-2.00%

-4.00%

year ago. In the financial account, net foreign direct investment at US$12.0 billion was higher than US$6.4 billion in Q4 of 2018-19. Foreign portfolio investment (FPI) declined by US$13.7 billion as against an increase of US$9.4 billion in Q4 of 2018-19 – on account of net sales in both the debt and equity mar-kets. Net inflow on account of external commercial borrowings to India was US$9.4 billion in Q4 of 2019-20 as compared with US$7.2 billion a year ago. Going ahead, in FY21, the demand slowdown may keep the imports under check, but the support received by way of inward remittances may wane as the global growth challenges impacts the livelihood across economies.


CPI

The month of Apr’20 was in the eye of the pandemic storm and witnessed nationwide lockdown without any relaxations. As such, it was expected that IIP numbers may contract sharply. The assessment of the level of contraction varied across market participants. Many of the correspond-ents contributing to the IIP data reported “Nil” production for the month of Apr’20. IIP contracted by more than 55% for the month of Apr’20 as compared to contraction of 18.30% in the preceding month of Mar’20.

The IIP number may not necessarily reflect the exact state of the economy as much as it reflects the stringency of the lockdown that caused it. The official NSO press release mentions that, “it is not appropriate to compare the IIP of April 2020 with earlier months and users may like to observe the changes in IIP in the following months.” Thus, even as the index numbers for the con-stituent sectors and their sub-industries were declared, the press release did not indicate YoY growth numbers.

All the sectoral components viz, Mining, Manufacturing and Electricity witnessed degrowth. Simi-larly, contraction was reported across use-based classifications as well. Primary Goods reported the least contraction and Consumer Durables reported the most severe disruption in manufac-turing activity.

IIP

context, the RBI can further reduce the policy rates and also deploy other policy tools to not only support the businesses in this time of crisis but also try to improve demand by reducing borrow-ing rates.

We had discussed in the previous issues that food basket could potentially see some upside. The immediate spikes in food inflation may be ignored, but the medium-term trajectory should be kept in focus. The runaway inflation in food articles can have second round effects on inflationary expectations. At the current juncture, if the government manages the supply side and the mon-soon remains in line with the initial forecasts, the outlook for food inflation is sanguine.

India Macro Update

-20.0-15.0-10.0-5.00.05.0

10.0

Ap

r -1

73.

22.

90.

31.0

4.8

4.1

1.88.

57.

37.

56.

95.

34

.53.

8 7.0

6.5

4.8

4.6 8.

40.

2 2.5

1.6 0.2 2.

73.

2 4.5

1.34

.91.4

4.6 6.6 2.

10.

4 2.1 4.6

-16.

7

Jun

-17

Au

g -1

7

Oct

-17

Dec

-17

Feb

-18

Ap

r -1

8

Jun

-18

Au

g -1

8

Oct

-18

Dec

-18

Feb

-19

Ap

r -1

9

Jun

-19

Au

g -1

9

Oct

-19

Dec

-19

Feb

-20

INDEX OF INDUSTRIAL PRODUCTION


The IIP was mostly on expected lines with the lockdown keeping doors shut for most of the facto-ries. As mentioned earlier, the latest numbers need not necessarily reflect the severity of slow-down. The actual impact of the pandemic on the manufacturing activity would be reflected in the

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The manufacturing activity as measured by the PMI numbers continued to remain in contrac-tionary zone, though the severity of contraction eased in the month of June. The manufacturing PMI for the month of June came in at 47.2 as compared to 30.8 in the preceding month. A reading above 50 indicates expansion. The PMI index for the month of June was a sharp improvement from the all-time low level of 27.4, touched in the month of April, but still in the contraction zone. The gradual withdrawal of a stringent lockdown across the country supported the manufactur-ing activity.

Even as the pace of contraction has slowed, the growth is yet to set in. The output as well as the new orders remained weak in the month of June. The pandemic led restrictions continue to hamper the business activity. The domestic demand was weak and the manufacturers received little support from export orders. The international demand contracted for the fourth month in a row. As the demand environment is weak, there was further reduction seen in employment. The rate of workforce contraction was the quickest since March 2005. In line with demand and employment, the purchasing of inputs was curtailed by manufacturers.

PMI

The pandemic led lockdown and the resultant demand destruction has had a severe impact on the manufacturing community. The latest PMI numbers only indicate that the pace of contrac-tion has slowed, at the current juncture it does not tantamount to a recovery. Apart from slow-down in demand and output, the continuous retrenchment of labour points towards a grim situ-ation. It may indicate that manufacturers are not expecting a swift recovery in demand even if the lockdown is rolled-back completely. The PMI press release also indicated that firms remained positive towards the 12-month period but the degree of optimism was far weaker than the histori-cal average.

The partial roll-back of lockdown helped in reducing the pace of contraction, but the spike in COVID cases may lead to extension of lockdowns. If the rate of pandemic growth continues to rise, the lockdown may be imposed again. As aptly noted in the PMI press release, “further lock-down extensions may be imposed, which would likely derail a recovery in economic conditions and prolong the woes of those most severely affected by this crisis”. The number of measures announced till date have mostly been towards supporting growth rates, if the situation continues with no improvement in demand, future measures may have to be in the form of bailouts to ensure survival of businesses.

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IIP growth numbers for the subsequent months. As the lockdown is gradually relaxed, the recov-ery in activity would be keenly watched. From the manufacturers’ perspective they may not only be grappling with a low demand scenario, but may have to contend with a lesser number in the workforce. The migrants leaving in hordes may also have an impact on the pace of recovery, at least in the near term.

The demand revival remains the key for manufacturers and there have been limited measures to stimulate it at the current juncture.

India Macro Update

Equities racing ahead ofeconomic realities


The equity indexes have moved up, covering a major part of the big fall, and this recovery is mainly facilitated by a sense of optimism about the impending economic recovery. The numbers that we have seen from the last couple of months including the index of industrial production, the purchasing managers index, and the employment numbers, reflect the extent of the distress at the ground level. It is likely that the numbers would continue to be negative over the next two to three months till it displays fully the dent to the economy caused by the pandemic and the lockdown.

Beyond the coming three months, is the time we may start seeing the impact of the measures initiat-ed by the government and the RBI encompassing liquidity and employment measures. The liquidity measures from the RBI has helped the interbank market to remain stable and infuse confidence in the market participants. The cost of funds or the cost of financing, going by the rates for one-year CDs and CPs, and also the other short-term rates. That the cost of borrowing is coming down gradually is also an indication of improvement in the transmission of the beneficial effect of cut in the base rates by the RBI.

The MNREGA allocation was raised to ₹1.00 Lakh Cr, that is ₹40,000 Cr higher than the budget alloca-tion. There has been an additional allocation of ₹50,000 Cr recently for infra-related employment programmes. These programmes are definitely beneficial for the rural economy and it will have a positive impact on rural employment and rural demand. The numbers post the three months’ time period is likely to capture the improvements brought about by the programmes and initiatives. Employment guarantee programmes have a cascading impact on various segments and sectors of the economy.

For the economy to come back on to the growth track may require at least a significant containment of the pandemic not only in India but also in other countries like the US where it is still raging and requires measures targeted at containment. That alone would help reverse the lockdown and lead to a pick-up in economic activity. But it is in the nature of the markets to run ahead of the economy, and one needs to be careful about excessive optimism being priced in. A rally that has its genesis in the

Equities racing ahead of economic realities


liquidity that is there in the system may lose some steam as liquidity dwindles in the system over a period of time. But there is no denying the fact that lower interest rates and sufficient liquidity supports the markets.

Though we had seen a good amount of selling from FPIs earlier on in this year, the intensity has subsided, and we have seen some inflows coming in. Though the Fed is likely to put into the system an amount close to US$4 trillion, unlike as it was in the 2007-08 period, not much of liquidity from the advanced economies is likely to reach the emerging markets as there is an increased accent on the domestic liquidity being spent in domestic projects and firms.

There may be increased volatility in the markets, mainly from the friction between the US and China, on the trade, pandemic related issues, and the status of Hong Kong, friction in the South China Sea. The border face-off between India and China, the US presidential elections due early November this year are also factors that may be reckoned with in the medium term. Therefore, the investment pref-erences should ideally focus on insulating portfolios against undue volatility. This is attained to a significant extent by concentrating more on quality stocks as we have indicated from time to time. These companies have strong balance sheets, leadership position in their respective sectors and have-good governance standards. This would help avoid excessive volatility as stronger companies and their prices may be better resilient in times of deep corrections and also on occasions of exuberance.

The choice of funds and portfolios should take cognizance of the above factors, and investments should be undertaken in a phased manner over the next six to nine months, which would also leave some space for additional purchases, in case of corrective downward movements.

The domestic debt yields maintained an easing bias during the month gone by as well. The weakening growth indicators and the rising number of COVID cases dampening the outlook of a swift recovery, have raised the expectations of continuing support from monetary policy to support the economy. The yield curve witnessed a bull steepening, as the yields at the short to mid segment of the curve eased by a higher quantum as compared to the longer end. The surplus systemic liquidity and the concerns about heightened bond supply at the longer end (mostly g-secs) led to the steepening scenario.

Even as the yields fell across the curve, the softening was mainly seen in the AAA and to an extent in the AA+ rated segment of the fixed income market. The yields for the sub-AA segment remained in a narrow band. The pressures likely to emerge from rising non-performing assets, a natural consequence of the extreme financial distress caused by the pandemic and the lockdown, are reflected in the bond yields. The elevated credit risk is also reflected in the rise in the number of downgrades to upgrades. The credit events that have transpired over the last two years have also led to the investor remaining inclined towards high credit quality portfolios and bonds. The elevated credit risk is likely to stay with the markets for another 12 to 18 months, till a meaningful recovery in business conditions is achieved.

The two key factors that have an outsized bearing on the fixed income markets are growth and infla-tion. On the inflation front, the outlook is sanguine as the severe demand destruction owing to the pandemic led weak purchasing power may keep the demand side inflation under check for an extended period of time. The spare production facilities will continue to hamper the manufacturers’ pricing power. Apart from the manufactured products, the price levels for the services industry too are expected to remain capped. If not worse, the impact on services industry has been in line with the manufacturing. The pressures from food inflation too are expected to subside as the supply related logistics are addressed by the authorities. The forecasts of a normal monsoon too are a positive sign for controlling food inflation.

The futuristic growth prospects continue to be revised downwards, as the lead indicators continue to paint a grim picture. As per the latest projections of the IMF, India GDP growth for calendar year 2020 is expected to contract by 4.5%. The lockdown situation has been partially relaxed across India over the month gone by, but the free-flow of labour and goods still remains constricted as the number of cases continue to rise at a steady rate. As against the initial assumptions of a swift recovery, the

India Fixed Income:Yields fall across the curve...


India Fixed Income: Yields fall across the curve...

expectations are now tilting towards a gradual resumption of businesses. As such, the economy may require monetary as well as fiscal support for an extended period. As discussed above, the growth-in-flation dynamics remain in favour of an accommodative monetary policy. The RBI may be expected to effect additional rate cut to ensure lending rates remain as low as possible in the economy to support both businesses and consumers. The Indian central bank till now has been employing mostly tradi-tional monetary tools such as liquidity management and policy rate cuts to influence market interest rates. While these tools are effective in pulling down short term interest rates, the effect on the entire yield curve is seen with a longer gestation. The global central banks, with limited fire power in terms of reducing the policy rates, have been targeting the term structure of interest rates. As policy rates approach zero and with it the short-term rates, the Yield Curve Control (YCC) entails having specific targets for long term interest rates as well. The YCC increases active involvement of central banks in bond markets, wherein the central banks become buyers or sellers of bonds to achieve the targeted long-term rates. The quantitative easing (QE) done during the GFC 2008 was mainly targeting the market liquidity, YCC specifically targets interest rates. The proponents of YCC indicate that lower interest rates can be achieved via a limited expansion of balance sheet as compared to QE.

The RBI is yet to effect anything close to QE or YCC in terms of the way these policy tools have been utilised by the developed markets central banks, but it has employed measures like LTRO and TLTRO to support liquidity. These measures also had the effect of keeping interest rates low. Further, the RBI has utilised open market operations (OMO) to influence liquidity and interest rates. The RBI till now either conducted purchase or sell transactions within its OMO framework depending on the prevalent economic conditions. As per its latest press release, the RBI is going to conduct simultaneous purchase and sell transactions through OMO. The RBI would be conducting purchase of securities maturing between 2027 to 2033 (long term) and sell securities maturing between 2020 to 2021 (short term). The simultaneous buying and selling of long-term and short-term securities respectively, may effectively reduce the ample surplus liquidity and also support long term interest rates.

From an investment perspective, given the growth-inflation dynamics and the multiple policy tools at RBI’s disposal, the fixed income space continues to offer lucrative opportunities for investors to earn stable income and possible mark-to-market gains. The growth challenges may continue to have an impact on credit worthiness of weak corporates, as such investments would be advised to be main-tained in high credit quality strategies and papers. The preferred segment on the yield curve is short to medium term. The risks pertaining to demand-supply mismatch due to increased central and state government borrowing, coupled with the inherent volatility of high duration strategies make short to medium term duration investment better risk-adjusted options.


Gold gliding at high altitude,likely to stay elevated

These funds are the primary route through which investors can allocate the investible surplus in gold asset class. The underlying asset of these funds is Gold ETF. The key feature of gold savings funds is that investors do not require any demat account to invest in these funds. The transactions can be executed in a manner identical to other mutual fund schemes. The onus of providing liquidity to the investors too falls on the fund house, thereby providing easy exit to the investors at the time of redemption.

GOLD FUNDS

Gold at US$1760, is at a striking distance from the crucial US$1800 level. Given the factors that have been driving the prices, the likelihood of gold getting closer to that mark seems to be almost certain.

What gives gold strength is the uncertainties in the global economy, the pandemic and the lockdown and the fall in business revenues, the cut in interest rates by central banks, the infusion of liquidity, and the presence of negative interest rates. It is almost certain that all the major economies will go through a contractionary phase during this year and early next year. It is these uncertainties that have helped gold to move up.

Second, there has been good demand for gold from ETFs and institutional investors in the last two years. The central banks have been the major contributor to the institutional demand.

But what we need to keep in mind is that once these uncertainties are behind us, the rationale for gold to appreciate will not exist. We need to be watchful of that point. The last time gold touched US$1800 was in September 2011 and in the same year, in December, gold was already lowered to US$1560.

When this correction happens, the returns will get naturally normalized. But in the overall asset alloca-tion plan, an allocation equivalent to 5% of the portfolio is a standard allocation to gold. This could be modified from time to time, based on the view on gold.


Scheme Name

HDFC Gold Fund(G)

Kotak Gold Fund(G)

Physical Gold

Nippon India Gold Savings Fund(G)

BenchMark

AUM(Rs in Cr.)

544

453

952

CAGRAbsolute

8.50

8.52

7.13

3Months

24.53

24.21

24.10

6Months

11.40

11.82

11.17

3Years

5Years

1Year

42.24

42.76

41.75

9.59

4.05

3.28

3.91

1Months

2.60 24.60 12.5440.66

18.05

18.24

17.66

18.87

Returns as on 30th June 2020.

SGBs are Government of India securities, with the issuance handled by RBI and provides one more option in lieu of investing in physical gold. The tenor of these bonds is 8 years with exit option after the 5th year. The investment and maturity value reflect the prevailing price of gold at that point of time. The upcoming issuances of SGBs are as follows:

SOVEREIGN GOLD BONDS

The second option available to investors is to directly buy Exchange Traded Funds (ETFs). Investors need to have a demat account to invest in ETFs as the nomenclature suggests the units of these funds are traded on the exchange and investors need to execute their transactions (buy/sell) on the bourses.

GOLD ETFS

Gold gliding at high altitude, likely to stay elevated

S. No. Tranche

1

2

3

2020-21 Series IV

2020-21 Series V

2020-21 Series VI

Date of Subscription

July 06-10, 2020

August 03-07, 2020

Aug.31-Sept.04, 2020

Date of Issuance

July 14, 2020

August 11, 2020

September 08, 2020


Returns as on 30th June 2020.

Scheme Name

HDFC Gold ETF

Kotak Gold ETF

Physical Gold

Nippon India ETF Gold BeES

BenchMark

AUM(Rs in Cr.)

1274

1026

3996

CAGRAbsolute

9.41

9.37

9.34

3Months

24.17

24.02

23.92

6Months

11.48

11.43

11.46

3Years

5Years

1Year

38.83

39.51

39.32

9.59

2.50

2.51

2.51

1Months

2.60 24.60 12.5440.66

17.94

17.78

17.35

18.87

US $ remains the preferred destination

Currency Levels

Dec-19Currency Jan-20 Apr-20

109.50US$/JPY

May-20 June-20

109.90 107.50 107.20 107.20

6.99US$/Yuan 6.90 7.07 7.14 7.07

1.3035GBP/US$ 1.3040 1.2510 1.2340 1.2435

1.1135Euro/US$ 1.1070 1.0880 1.1090 1.1225

The US Dollar is holding well due to its safe haven status, and this is mainly occasioned by the spread of the corona infections throughout the world and it does not seem to be abating at this point of time. Therefore, there is a preference for investors to hold on to dollar assets and currency. But a more realis-tic consideration for market players is that economic growth is going to come back not in a hurry, and it may take more time than expected. Interest rates have been cut very aggressively and this has brought down the currency yield which acts as disincentive to holding currencies. The general perception is that the game of war between the US and China will be a protracted one, and that may also affect global trade, and certain regional equations. Significantly, the Euro has displayed tremen-dous amount of resilience in the face of adverse global developments.


Brent range-bound, butupside pressures aboundBrent is at US$40 per barrel and it is likely to hover around this level in the immediate term. But the probability for oil to climb higher from here would depend on two factors, the revival of demand from major consumers like China and India; the strength of unity among OPEC+ to go in for further cuts in production and supply. The first factor is solely dependent on the revival of economic growth post the pandemic and the lockdown, and the restoration of movement of goods and services across large geographic territories. The second would depend on the new equations that are emerging among the major oil producers in the wake of the emerging political equations in different regions. The face-off between China and India, the worsening trade and diplomatic relationship between the US and China, the likelihood of some revival in shale production, and the intra group dynamics between the producers would all be having their own roles in the whole drama of fuel prices. It is also reported in some section of the international media about China buying oil from Iraq in a large quantity in the recent days. This would also point towards a likely assessment of further rise in prices over the coming months. While in the immediate term the prices may remain range bound, an objective assessment gives a guidance of likely price pressures emerging gradually. The price pressures may get transmit-ted into the domestic economies too. There is surplus at this time and stocks are building up. Interest-ing forecasts from some of the majors see a shortage of oil starting from the year 2022 and the prices more than doubling by that time. This is something that needs to be watched closely.

Brent Crude $/barrel 140

120

100

80

60

40

20

0

6/30

/20

10

6/30

/20

11

6/30

/20

12

6/30

/20

13

6/30

/20

14

6/30

/20

15

6/30

/20

16

6/30

/20

17

6/30

/20

18

6/30

/20

19


Enhanced Efficiency Model: En Ef ModelEstate and succession planning is the process of anticipating and arranging for the disposal of estate during and after one's lifetime. In absence of a succession plan, the assets of the deceased would be distributed as per the applicable religious laws amongst the legal heirs.

FUND SELECTION PROCESS

ALPHA GAMMA OMEGABETA

Scanningfunds for

compliancewith

hygienefactors

Fundsevaluatedon returnbased andrisk based

factors

Compre--hensive

ranking ofFunds

Final FundList andModel

Portfolio

EQUITY SCHEMES SELECTION PROCESS

HYGIENE FACTORS | MINIMUM SCHEME AUM | MINIMUM TRACK RECORD | RANKING PARAMETERS

SCHEMERETURNS

PORTFOLIOANALYTICS

SCHEMERISK

QUALITATIVEFACTORS

RECOMMENDED SCHEMES

Point to PointAbsolute / CAGR

Returns

Average RollingReturns

Downside Risk

Net Selectivity

Treynor Ratio

Information Ratio

Sector Concentration

Stock Concentration

AMC Lineage/Pedigree

AMC Equity strategy

AMC Size

OutperformanceRatio

Fund ManagementExperience

Fund ManagementStrength

Portfolio Composition(Sector / Company)

DEBT SCHEMES SELECTION PROCESS

HYGIENE FACTORS | MINIMUM SCHEME AUM | MINIMUM TRACK RECORD | RANKING PARAMETERS

SCHEMERETURNS

PORTFOLIOANALYTICS

SCHEMERISK

QUALITATIVEFACTORS

RECOMMENDED SCHEMES

Point to PointAbsolute / CAGR

Returns

Average RollingReturns

AMC Lineage/Pedigree

AMC Debt strategy

AMC Size

Fund ManagementExperience

Fund ManagementStrength

Credit Quality

Average Maturity /Modified Duration

YTM

Scheme Size

Sharpe Ratio

Semi StandardDeviation


Recommended Equity Funds

ELSS Category Fund Manager AUM(Rs in Cr.)

19127929

5595916

10303141

8.397.88

25.7325.25

-14.19-14.18

-8.67-8.45

-11.22-10.49

-2.69-1.57

1.762.89

5.455.82

Axis Long Term Equity Fund

Canara Rob Equity Tax Saver Fund

ICICI Pru LT Equity Fund (Tax Saving)

Invesco India Tax Plan

Kotak Tax Saver Fund

BenchmarkNIFTY 500 - TRI

S&P BSE 200 - TRI

5.295.336.477.038.239.79

14.7519.8626.1921.8922.8726.24

-12.55-8.47-15.08-10.97-12.39-12.52

-7.51-3.79-8.31-5.87-6.87-5.63

-5.48-6.44-13.99-7.09-10.17-7.28

0.412.76-2.98-1.860.902.00

5.805.271.363.941.954.67

7.156.424.866.235.67

-

CAGR Returns (%)Absolute Returns (%)

Jinesh Gopani

Cheenu Gupta

Harish Bihani

Dhimant Kothari

Harsha Upadhyaya

Mirae Asset Tax Saver Fund Neelesh Surana

1Month

3Months

6Months

2Years

3Years

5Years

1Year

9Months

Large & Mid CapSchemes

Fund Manager AUM(Rs in Cr.)

478822858808241110251397

6.816.429.318.227.297.32

7.859.40

8.62 26.10 -12.81 -6.80 -9.52 -2.70 1.92 6.03

25.3126.68

-14.58-12.52

-8.95-6.64

-11.26-10.46

-2.08-3.30

2.511.26

5.506.33

20.6119.9325.6922.4821.4124.50

-9.70-13.97-10.63-13.92-18.14-13.28

-3.48-9.63-3.25

-10.06-14.06-8.47

-7.30-8.76-4.68-12.11-13.79-9.63

-1.88-1.724.00-2.49-3.831.26

1.393.724.330.531.431.86

8.245.9111.534.475.865.30

Miyush Gandhi

Taher Badshah

Neelesh Surana

Saurabh Pant

S. Krishnakumar

Canara Rob Emerg Equities Fund

Invesco India Growth Opp Fund

Mirae Asset Emerging Bluechip

SBI Large & Mid cap Fund

Sundaram Large & Mid Cap Fund

Tata Large & Mid Cap Fund

BenchmarkNIFTY200 -TRINifty Large Midcap 250 Index-TRI

S&PBSE 250 Large Mid Cap65:35 Index -TRI


Chandraprakash Padiyar

1Month

3Months

6Months

2 3Years

5Years

1Year

9Months Years


Large Cap Category Fund Manager AUM(Rs in Cr.)


Axis Bluechip Fund

BNP Paribas Large Cap Fund

Canara Rob Bluechip Equity Fund

ICICI Pru Bluechip Fund

Mirae Asset Large Cap Fund


NIFTY 50 - TRI

S&P BSE 200 - TRI

13003747459

2176615175

5.915.476.345.997.93

13.0018.7821.0224.0123.10

-11.09-11.18-7.81

-14.98-15.13

-7.78-7.49-1.60

-10.02-9.14

-4.27-5.02-1.37-11.88-11.23

2.832.284.28-1.97-0.23

8.823.146.832.143.05

8.194.967.555.597.35

7.507.587.88

24.9424.5925.25

-14.71-15.54-14.18

-9.10-9.61-8.45

-10.72-11.60-10.49

-1.17-0.77-1.57

3.423.952.89

5.785.555.82

1Month

3Months

6Months

2 3Years

5Years

1Year

9Months Years

Shreyash Devalkar

Karthikraj Lakshmanan

Shridatta Bhandwaldar

Anish Tawakley

Gaurav Misra

21 Returns as on 30th June 2020.


Value Fund/Contra Schemes

Fund Manager AUM(Rs in Cr.)

3356430070924183750

Amit Ganatra

Taher Badshah

Shibani Kurian

Meenakshi Dawar

Vetri Subramaniam

HDFC Capital Builder Value Fund

Invesco India Contra Fund

Kotak India EQ Contra Fund

Nippon India Value Fund

UTI Value Opp Fund


NIFTY 500 - TRI

S&P BSE 200 - TRI

7.357.658.328.506.98

25.3326.9924.6423.9425.12

-17.31-8.82-14.16-15.65-12.10

-14.15-4.00-9.95-12.18-5.46

-18.63-6.98-10.80-15.20-7.26

-9.18-1.21-2.37-4.94-2.09

-2.144.484.18

-0.382.52

3.577.865.933.973.54

7.508.397.88

24.9425.7325.25

-14.71-14.19-14.18

-9.10-8.67-8.45

-10.72-11.22-10.49

-1.17-2.69-1.57

3.421.762.89

5.785.455.82


1Month

3Months

6Months

2 3Years

5Years

1Year

9Months Years

Mid Cap category Fund Manager AUM(Rs in Cr.)

5157649875658715592

Shreyash Devalkar

Vinit Sambre

Pranav Gokhale

Pankaj Tibrewal

Manish Gunwani

Axis Midcap Fund

DSP Midcap Fund

Invesco India Midcap Fund

Kotak Emerging Equity Fund

Nippon India Growth Fund

BenchmarkNifty Midcap 100 - TRI

S&P BSE Mid-Cap - TRI

5.936.526.858.549.02

18.0923.4122.3922.6121.43

-5.66-6.72-6.66-12.20-13.07

-0.74-1.06-0.87-7.01-8.28

2.07-1.83-2.80-9.30-12.03

5.050.850.39-3.30-3.20

8.521.783.21

-0.76-0.83

7.868.386.356.554.55

10.8510.36

28.5426.84

-13.46-12.21

-7.71-6.70

-15.70-10.64

-9.11-6.95

-5.07-2.71

3.645.33


1Month

3Months

6Months

2 3Years

5Years

1Year

9Months Years


MultiCap Category Fund Manager AUM(Rs in Cr.)


Canara Rob Equity Diver Fund

DSP Equity Fund

HDFC Equity Fund

Kotak Standard Multicap Fund

UTI Equity Fund


NIFTY 500 - TRI

S&P BSE 500 - TRI

19243110

17495259849057

5.948.286.937.717.16

19.9620.8921.7923.9220.14

-8.20-11.03-20.72-13.96-10.49

-3.18-7.28-16.89-9.20-3.86

-5.02-4.85-23.68-11.03-3.84

2.422.05-4.95-0.72-0.70

5.514.09-2.182.224.92

6.547.042.847.156.09

7.858.398.30

25.3125.7325.61

-14.58-14.19-14.11

-8.95-8.67-8.57

-11.26-11.22-11.01

-2.08-2.69-2.63

2.511.761.88

5.505.455.58

1Month

3Months

6Months

2 3Years

5Years

1Year

9Months Years


Atul Bhole

Prashant Jain

Harsha Upadhyaya

Ajay Tyagi



Focused Fund Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2 3

Years5

Years

94287768012923

8.008.468.175.16

17.5923.7217.3622.61

-12.73-10.79-10.96-13.94

-7.91-4.19-5.78-8.21

-5.53-2.73-5.70-9.56

-0.716.002.29

-0.46

5.646.016.544.08

8.318.608.935.78

Jinesh Gopani

Mayur Patel

R. Srinivasan

Rahul Baijal

Axis Focused 25 Fund

IIFL Focused Equity Fund

SBI Focused Equity Fund

Sundaram Select Focus Fund

NIFTY 50 - TRI

S&P BSE 500 - TRI

7.588.30

24.5925.61

-15.54-14.11

-9.61-8.57

-11.60-11.01

-0.77-2.63

3.951.88

5.555.58


1Year

9Months Years

Aggressive Hybrid Fund Fund Manager

1Month

AUM(Rs in Cr.) 3

Months6

Months2 3

Years5

Years

2884174233274

285831514

4.844.335.935.775.02

15.5719.4118.5014.3316.99

-4.21-12.05-9.42-9.20-10.00

0.67-6.20-3.55-5.17-5.38

-0.22-10.06-5.56-3.87-5.44

4.63-0.422.753.000.71

5.671.514.535.244.01

7.726.22

-6.956.37


Sankaran Naren

Neelesh Surana

R. Srinivasan

Rahul Baijal

Canara Rob Equity Hybrid Fund

ICICI Pru Equity & Debt Fund

Mirae Asset Hybrid Equity Fund

SBI Equity Hybrid Fund

Sundaram Equity Hybrid Fund

BenchmarkCRISIL Hybrid 35+65 - Aggressive Index 5.55 18.04 -5.56 -0.80 -1.24 4.05 5.54 7.61


1Year

9Months Years


Small Cap Category Fund Manager AUM(Rs in Cr.)

2124971

124269443374

Anupam Tiwari

Sankaran Naren

Pankaj Tibrewal

Samir Rachh

R. Srinivasan

Axis Small Cap Fund

ICICI Pru Small cap Fund

Kotak Small Cap Fund

Nippon India Small Cap Fund

SBI Small Cap Fund

BenchmarkNifty Smallcap 100 - TRI

Nifty Smallcap 250 - TRI

S&P BSE Small-Cap - TRI

7.0413.6512.5412.6510.20

17.8221.8025.2031.2421.96

-13.27-18.34-12.03-10.92-9.20

-8.15-14.56-8.60-8.19-6.82

-4.92-17.31-10.45-12.94-5.56

3.01-8.16-6.88-8.62-2.38

3.39-6.39-4.03-2.363.22

7.840.274.247.679.78

15.3114.9513.73

32.3731.1932.79

-19.92-15.35-8.73

-16.90-12.39-5.32

-24.51-19.69-11.79

-18.78-15.09-11.09

-12.99-11.12-6.11

-1.640.343.21


1Month

3Months

6Months

2 3Years

5Years

1Year

9Months Years


Recommended Debt Funds

430902960557566317281937828330

4.373.904.114.293.944.06

4.28 4.35 5.02 5.32 5.81

4.283.754.034.013.773.84

5.034.795.005.094.894.79

5.295.285.295.275.365.09

5.685.625.605.645.615.50

4.063.784.073.893.733.73

43.8048.0048.4647.0044.0041.76

Aditya Birla SL Liquid Fund

Axis Liquid Fund

ICICI Pru Liquid Fund

Nippon India Liquid Fund

Tata Liquid Fund

UTI Liquid Cash Plan

Kaustubh Gupta

Devang Shah

Rahul Goswami

Anju Chhajer

Amit Somani

Amandeep Chopra

Liquid Schemes Fund Manager

Annualised Return (%)

BenchmarkCrisil Liquid Fund Index

AverageMaturityin Days1

Month2

Weeks

AUM(Rs in Cr.) 3

Months Months6 1

Year YTM

12902664354169848

13.699.066.628.79

4.28 4.35 5.02 5.32 5.81

22.27 16.16 14.76 12.73 11.46

10.948.286.377.68

10.169.378.538.69

8.067.747.407.34

8.227.617.567.62

5.595.394.264.75

189.80141.00143.00171.55

Aditya Birla SL Savings Fund

HDFC Ultra Short Term Fund

IDFC Ultra Short Term Fund

SBI Magnum Ultra Short Duration Fund

Kaustubh Gupta

Anil Bamboli

Harshal Joshi

Rajeev Radhakrishnan

Ultra Short Term Schemes Fund Manager



Crisil Short Term Bond Fund Index


Month2

Weeks

AUM(Rs in Cr.) 3

Months Months6 1

Year YTM


47771825041441670

15.1421.8417.6013.90

4.28 4.35 5.02 5.32 5.81

22.27 16.16 14.76 12.73 11.46

12.1413.8713.1310.45

11.0712.2810.7311.43

8.819.148.878.75

8.869.098.648.85

5.106.064.595.05

367.00422.75355.00376.00

Devang Shah

Rahul Goswami

Anurag Mittal

Low Duration Schemes Fund Manager





Month2

Weeks

AUM(Rs in Cr.) 3

Months Months6 1

Year YTM

Axis Treasury Advantage Fund

ICICI Pru Savings Fund

IDFC Low Duration Fund

Invesco India Treasury Advantage Fund

SBI Magnum Low Duration Fund Rajeev Radhakrishnan 8727 11.98 9.81 10.34 8.37 8.41 5.48 365.00

Krishna Cheemalapati

24 YTM and average maturities are as on 31st May 2020Return as on 30th June 2020


1531716791616349736230

17.0618.6916.1518.2017.25

14.7616.16 12.73 11.46 8.36 8.57

16.2418.1815.9018.3817.62

12.0914.1312.3414.1513.12

11.7312.9711.6712.7911.74

9.209.438.758.808.89

8.778.648.808.948.55

5.585.766.405.655.76

2.202.824.122.983.76

Axis Banking & PSU Debt Fund

IDFC Banking & PSU Debt Fund

Kotak Banking and PSU Debt Fund

Nippon India Banking & PSU Debt Fund

SBI Banking and PSU Fund

Aditya Pagaria

Anurag Mittal

Deepak Agrawal

Prashant Pimple


Banking & PSU Schemes Fund Manager

Annualised Return (%) CAGR Return (%)

Benchmark


AverageMaturityin Years3

Months1

Month

AUM(Rs in Cr.) 6

Months Year1 3

Years5

Years YTM

180591598612707149974359

21.7020.7117.9323.5017.32

14.7616.16 12.73 11.46 8.36 8.57

20.4918.2517.7820.2914.18

14.4814.3912.5714.3210.83

12.0112.2311.4111.3510.44

8.908.908.378.218.53

9.069.098.61

-8.60

6.376.236.356.155.75

4.353.783.523.721.68

Aditya Birla SL Corp Bond Fund

HDFC Corp Bond Fund

ICICI Pru Corp Bond Fund

IDFC Corp Bond Fund

Kotak Corporate Bond Fund

Maneesh Dangi

Anupam Joshi

Anuj Tagra

Anurag Mittal

Deepak Agrawal

Corporate BondSchemes Fund Manager


BenchmarkCrisil Short Term Bond Fund Index


Months1

Month

AUM(Rs in Cr.) 6

Months Year1 3

Years5

Years YTM

60051032412511

1053414266

18.1317.9218.1317.7614.92

14.7616.16 12.73 11.46 8.36 8.57

15.8515.5516.5115.9116.61

12.2212.1712.4412.0212.23

11.4811.4811.4110.9411.26

8.268.598.328.017.98

8.438.598.298.258.31

5.957.265.676.205.79

2.703.472.203.103.18

Axis Short Term Fund

HDFC Short Term Debt Fund

IDFC Bond Fund - Short Term Plan

Kotak Bond Short Term Fund

SBI Short Term Debt Fund

Devang Shah

Anil Bamboli

Suyash Choudhary

Deepak Agrawal


Short Term Schemes Fund Manager


BenchmarkCrisil Short Term Bond Fund Index


Months1

Month

AUM(Rs in Cr.) 6

Months Year1 3

Years5

Years YTM

4851173106613812752

4.453.4112.738.392.28

17.187.44 15.57 12.53 9.06 9.99

22.2620.0724.5319.8518.88

17.2618.4419.4416.5116.56

13.1114.8915.5113.3913.64

8.399.109.619.178.45

10.419.9810.4110.6310.21

6.286.106.036.056.27

11.8610.708.2310.4912.93

Aditya Birla SL G-Sec Fund

DSP G-Sec Fund

IDFC G-Sec-Invest

Nippon India Gilt Securities Fund

SBI Magnum Gilt Fund

Pranay Sinha

Vikram Chopra

Suyash Choudhary

Prashant Pimple

Dinesh Ahuja

Gilt Schemes Fund Manager


BenchmarkI-BEX (I-Sec Sovereign Bond Index)


Months1

Month

AUM(Rs in Cr.) 6

Months Year1 3

Years5

Years YTM

NAVIGATOR | VOLUME 2025 YTM and average maturities are as on 31st May 2020Return as on 30th June 2020


4182785

3569470

14663

-1.51-2.48-2.02-0.28-1.98

0.08-3.74 2.68 3.49 4.30 5.28

5.154.575.105.325.13

5.546.066.175.785.66

5.495.945.895.695.55

5.695.966.015.825.68

5.966.176.135.866.03

5.956.056.135.846.08

6.01-

6.235.976.17

Aditya Birla SL Arbitrage FundBNP Paribas Arbitrage FundEdelweiss Arbitrage FundInvesco India Arbitrage FundKotak Equity Arbitrage Fund

Lovelish SolankiKarthikraj LakshmananBhavesh JainRajeev BhardwajHiten Shah

Arbitrage Schemes Fund Manager


BenchmarkNifty 50 Arbitrage Index

3Months

1Month

AUM(Rs in Cr.) 6

Months9

Months Year1 2

Years3

Years5

Years

41991674165854900

2.832.612.592.76

4.352.94

4.282.75

5.022.84

5.323.67

5.814.49

2.932.772.772.88

2.912.722.732.89

3.693.533.593.67

4.434.314.384.42

3.283.183.183.22

1.001.001.001.00

Axis Overnight FundHDFC Overnight FundKotak Overnight FundUTI Overnight Fund

Aditya PagariaAnil BamboliDeepak AgrawalAmandeep Sing Chopra

Overnight Schemes Fund Manager


BenchmarkCrisil Liquid Fund IndexNifty 1D Rate Index


Months1

Month2

Week

AUM(Rs in Cr.) 6

Months Year1

YTM

84227592795342184898

7.437.326.626.757.06

4.354.28 5.02 5.32 5.81

7.237.366.096.286.46

9.8910.317.888.708.97

8.338.316.917.397.34

8.088.157.307.617.52

4.914.764.264.434.74

255.50235.00135.05173.00157.50

Aditya Birla SL Money Manager Fund

HDFC Money Market Fund

Kotak Money Market Fund

Nippon India Money Market Fund

UTI Money Market Fund

Kaustubh Gupta

Anil Bamboli

Deepak Agrawal

Anju Chhajer

Amandeep Chopra

Money Market Schemes Fund Manager



16.1622.27 14.76 12.73 11.46Crisil Short Term Bond Fund Index


Months1

Month2

Week

AUM(Rs in Cr.) 6

Months Year1

YTM

NAVIGATOR | VOLUME 2026 YTM and average maturities are as on 31st May 2020Return as on 30th June 2020

Emkay L.E.A.D PMS

Focus on riskadjusted

returns

Steady performanceover medium

term

Low portfolio turnover

Portfolio of 15 structural growth cos

No use of leverage orHigh debt cos

Lower portfolio volatility & high liquidity

FEATURESOF A L.E.A.D.PORTFOLIO

L.E.A.D. PMS – CORE INVESTMENT FRAMEWORK

LEADERSHIP• Market-share Leadership• Profit-share Leadership (Apple vs Rest of the manufacturers)• Cost Leadership (Export Oriented sectors like IT, Textiles, Chemicals)• Growth Leadership (Companies with best growth in the sector like Private banks vsPSUBanks)• Product Leadership

MOAT / NICHE IN THE BUSINESS• How different is the company• Edge, Entry-barrier, Competition, Pricing-power• Bargaining power of the indust

STRONG CREDENTIALS• Track record of past decisions• Comments v/s Delivery• Future-vision• Avoid aggressive accounting policies• Management background

DEPENDABLE• Identifying Price-Value gap with focus on margin of safety• Comparative valuations• Market-cap vs Opportunity size

STRONG EARNINGSVISIBILITY & QUALITY• How big the sector can be (3x, 4x....)• Revenue/PAT/ Cash-flow growth• RoE, RoCE analysis• High operating/Free cash-flow generation

SMARTALPHASMARTALPHA


EMKAY L.E.A.D PMS

FOCUS ON CAPITAL PRESERVATION

L.E.A.D. PMS – PERFORMANCE & PORTFOLIO TOP 5 HOLDINGS

RISK MANAGEMENT• >15% price movement in a month triggers review of the stock• Focus on Liquidity risk• No use of leverage• Monthly portfolio review

EARNINGS GROWTH AND QUALITY FILTERS• ROCE > COE• Earnings growth > GDP growth

FOCUS ON LARGE AND MID CAP COMPANIES• >50% exposure in companies with Mcap >USD 3bn• Nil exposure in small cap companies (Top 250 cos as per Mcap)• Companies with minimum turnover of INR 500cr

Strong Riskmanagement strategy with

focus onCapital

PreservationDIVERSIFICATION ACROSSINDUSTRIES AND COMPANIES• < 30%* exposure in one sector• <10%* exposure in one stock• Maximum investment in 15 stocks• <20%* exposure in turn arounds or special situation stocks *At the time of initiation

Top 5 Holdings

Holding (%)Company

8.958.668.158.087.98

Avenue Supermarts Ltd.Berger Paints Ltd.Pidilite Industries Ltd.Aarti Industires Ltd.Whirlpool India Ltd.

Performance in %

Returns as on 30th June 2020. *Inception Date 1st November 2018

1Month

3Months

6Months

L.E.A.D

Nifty 200

9Months

SinceInception*

5.30

7.80

12.40

20.70

-11.70

-14.50

-8.20

-9.50

1Year

-0.40

-12.30

10.20

-1.60


PMS Products: An Update

Investment strategy:

IIFL MULTICAP PMS

Investment Strategy

Identify businesses with competitive advantage that are significant sized (min Rs. 100cr of PBT) but not a large part of the opportunity. Enables growth from both market share gains and growth of the opportunity size and can sustain for multiple years.

The quality of the business should be good to be able to fund strong growth through internal cash generation.

The management should have the drive and have skin in the game to deliver compounded growth, period after period (uncompromised corporate governance is a must).

It seeks to identify such businesses at reasonable discount to value and stay invested for a length of time and make money as EPS compounds.

ASK INDIAN ENTREPRENEUR PORTFOLIO

Identify large and growing business opportunities.

Performance in %

3 Month 1 Year1 Month 2 YearCAGR

IEP

BSE 500

Nifty

6 Month 3 YearCAGR

5 YearCAGR

SinceInception

CAGR*

*Inception Date 1st April 2013. Return as on 30th June 2020

7.80

8.20

7.50

13.90

21.10

19.80

-13.50

-14.20

-15.30

-6.70

-12.10

-12.60

-1.80

-3.80

-1.90

4.00

0.70

2.70

6.90

4.30

4.20

15.90

6.90

7.20


The investment strategy is to invest in companies and sectors that are available at significant discount to their intrinsic value and provide earnings visibility.The strategy takes a concentrated position in stocks and sectors and endeavours to strategically change allocation between sectors depending on changes in the business cycle.The investment decisions are taken based on SCDV framework that has 4 quadrants to it, namely:

Cyclical growth (PAT>15%, ROE <15%): Companies/Sectors that show high growth but are affected by market cycles and hence need to be timed for entry and exit.Secular (PAT>15%, ROE >15%): High growth companies/sectors which show consistent growth across market cycles.Defensive (PAT<15%, ROE >15%): Companies/sectors that show consistent stable growth across market cycles.Value Trap (PAT<15%, ROE <15%): Companies/sectors that are at attractive valuation but do not show commensurate growth.

3 Month 1 Year1 Month 2 YearCAGR

IIFL Multicap PMS

S&P BSE 200 TRI

6 Month 3 YearCAGR

5 YearCAGR

SinceInception

CAGR*

**Inception Date : 31 Dec 2014. Return as on 30th June. 2020

9.32

7.88

21.23

20.87

-13.76

-13.67

-5.68

-10.49

5.83

-1.57

7.35

2.89

13.78

5.70

14.11

5.80

Performance in %

29

Emkay Capital Builder StrategyEmkay Capital Builder PMS Strategy

Fund Management TeamSachin Shah - Fund Manager

Emkay Investment Managers Ltd is a SEBI registered PMS service provider with overall PMStrack record of over 10 years.

Emkay Capital Builder allows complete flexibility in selection of stocks across market capitalization.

Capital preservation and appreciation overtime through an “absolute returns” approach.

Investing in sectors and companies expected to benefit from the fast-paced growth of the Indian economy and having a competitive advantage with a significant size that will benefit both from market share gains and growth of the opportunity size.

Mr. Shah is Chatered FinancialAnalyst and has 18 years of experience in the Portfolio Management space with Emkay. He has provided valuable inputs in the establishment of a well-documented investment process E-QUAL Risk (Emkay Proprietary Model) - a key factor behind our splendid performance.

Our unique proprietary process seeks to differentiate business on basis of management capability, integrity and skin in the game to deliver growth over-time.

Strategy consistently seeks to identify such business where intrinsic value of the business is good and the price is reasonable.

Focused portfolio with no over-diversifiction.

Capital Builder Benchmark - Nifty 500.

Return as on 30th June 2020. *Inception Date 1st April 2013

Performance in %

FY 14 FY 15 FY 16 FY 17

24.10

17.70

52.7

33.6

-3.8

-7.5

25.1

23.9

10.3

11.5

0.90

8.4

12.33

14.50

-31.7

-27.6

10.20

8.70

Emkay PMS(Model Client)

NIFTY 500

Benchmark

SinceInception

CAGR*FY 18 FY 19 FY 20 FYTD

Top 5 Stock Holding

Holding (%)Company

16.6613.809.517.936.85

Divi's Laboratories Limited

ICICI Bank Ltd.

HDFC Bank Ltd.

Nesco Ltd.

Sun Pharmaceutical Ltd.




Estate and succession planning is the process of anticipating and arranging for the disposal of estate during and after one's lifetime. In absence of a succession plan, the assets of the deceased would be distributed as per the applicable religious laws amongst the legal heirs.

1. Drafting a Will:Will is a legal document that comes in play on the demise of the testator. It carries the wishes of an individual regarding distribution of his/her estate.

2. Gifts during lifetime:Gift is transfer of movable or immovable property, made voluntarily, during one's lifetime and without consideration, by the donor and accepted by donee. If the gift is received from any blood relative, it will not be taxable.

4. Charitable Trust :CharitableTrust is setup for philanthropy aspirations for the benefit of public at large. It enjoys income tax benefit on the income of the trust and tax benefit to the donors on the donation made by them.

5. Family Business Succession:Family business succession is the process of transitioning the management and the ownership of the business to next generation of family members. The family component plays a crucial role here and needs to be effectively integrated in the transition process.

6. Obtaining Probate/Succession Certificate:Probate establishes the validity of a Will in Court. In absence of a Will, a succession certificate is required to be obtained from the Court for transferring the assets of a deceased.

3. Formation of Private Trust:A Trust is a relationship whereby property is transferred by one party(Settlor) to be held and managed by another party(Trustees) for the benefit of third party (Beneficiaries), governed by the Indian Trust Act, 1882. Some of the advantages of a PrivateTrust are:• Multi-generation succession and provision for wishes beyond lifetime of Settlor• Trust can be structured to control the timing and amount of distributions• Provide for dependent relatives and to provide for ongoing financial management• Protection of assets from outside claims and from disputes within the family• To hold the shares of company for business continuity & for delinking ownership from management• Avoids probate• Privacy protection• Inheritance tax planning and avoid forced heirship rules for NRIs

Who needs Estate Planning?∙ Joint Family

∙ Businessmen

∙ Multiple marriages

∙ NRI family members

∙ Inheritance tax planning

∙ Nuclear Family

∙ Professionals

∙ Asset Protection needs

∙ Family with special children

∙ Family with no legal heir

For any queries or assistance kindly contact us at [email protected]


HUF and Transfer of AssetsHindu Undivided Family (HUF), as the name suggests, is a joint or undivided family which is seen as a separate entity from that of the individual members in the HUF. Hindu, Jain, Buddhist and Sikh families can form HUFs. HUF is a family which consists of all persons lineally descended from a common ancestor and it also includes the wives and daughters of the male descendant. It consists of the Karta, who is typically the eldest person or head of the family, while others are coparceners and members of HUF. The Karta manages the day-to-day affairs of the HUF. Children are coparceners of their father’s HUF. Once a daughter gets married, she becomes a member of her husband’s HUF, while continuing to be a coparcener of her father’s HUF.

HUF usually has assets which come from a gift, a will, ancestral property, or property acquired from the sale of joint family property or property contributed to the common pool by members of HUF.

Under section 2(31) of the Income-tax Act, 1961, an HUF is considered a ‘person’ and therefore, is treated as a separate entity for the purpose of tax assessment. Often families that own ancestral properties and businesses obtain a separate Permanent Account Number (PAN) in the name of the HUF. This is done so that the income earned from the assets and businesses owned by the HUF are assessed separately, which also brings down the family’s tax liability. HUF is taxed on the same slab rates that are applicable to an individual income tax assessee.

A person becomes coparcener by birth and acquires interest in the HUF property. An adopted child also becomes coparcener of the HUF. The share of a coparcener may increase or decrease depending upon the number of births and deaths in the family. Upon marriage, a wife becomes a member of her husband’s HUF. It is also to be noted that members are different from coparceners and members cannot demand partition in the HUF property but have a share in the HUF property as and when the partition takes place. For example, if a family consists of father as Karta, his wife and three children i.e. two son and one daughter. In this case, the father and his three children are coparceners and the wife of Karta is a member of the HUF.

COPARCENER AND MEMBER OF HUF

HUF is purely a creation of law and cannot be created by an act of parties (except in case of adoption and marriage). Family is a group of people and a single person, male or female, does not constitute a family. Hence, a single person cannot create HUF. As soon as a person gets married, HUF gets created automatically. But to be recorded by tax authorities, it needs to have an income-generating asset, which can come as a gift from a relative or through a will or through ancestral property. Once it has such an asset, the HUF needs to be registered with a name and other formalities such as acquiring a Permanent Account Number (PAN), opening a bank account, etc. must be completed.

CREATION OF HUF

Section 6 of the Hindu Succession Act, 1956, which deals with coparcener’s right in the HUF property, was amended in 2005 w.e.f. September 9, 2005. With this amendment, daughters have been put at par with sons, as far as coparcenary rights in HUF property are concerned.Prior to the Hindu Succession (Amendment) Act 2005, only male members descended from a common ancestor such as sons, grandsons and great grandsons could be coparceners in HUF property

LEGAL RIGHTS OF DAUGHTERS IN HUF PROPERTY


Coparceners or members of the HUF are treated as relative of the HUF, the gift of their individual property to the HUF will not be taxable under Section 56(2) at the time of receipt of the gift. From an income tax perspective, capital gain is triggered only when there is a taxable transfer. Here, gift by any member or coparcener of HUF is a non-taxable transfer to the HUF and it will not trigger capital gains tax. But gifts received from non-members shall become fully taxable if the aggregate of all gifts received by the HUF during the year exceeds ₹50,000/-. However, gifts up to ₹50,000 in a year received by HUF from non-members are fully exempt under Section 56(2).

It is also to be noted that a gift given by HUF to its coparcener or member with the consent of all the other members of HUF, is not taxable under section 56(2) of IT Act 1961 as held in DCIT vs. Ateev V. Gala (ITAT Mumbai).

In case of gifts through cheque or movable assets, no registration is required to be done but in case of gifts of immovable property such gift needs to be registered and adequate stamp duty is also required to be paid. Stamp duty on gift deed varies from state to state.

GIFT RECEIVED BY HUF THROUGH ITS MEMBERS OR COPARCENERS

It is to be noted that HUF property can be given through a will. If a coparcener wants to bequeath his undivided share in HUF property in favour of other members or coparceners, then he can do so by executing his Will and bequeathing his share.

HUF PROPERTY INHERITED THROUGH A WILL

PARTITION OF HUF ASSETS

and have an interest by birth in coparcenary or HUF property and daughters did not have a right to HUF property. Daughters, being a member of HUF, could only ask for maintenance from joint Hindu family and they ceased to be a member of HUF after their marriage. However, now, by virtue of the Hindu Succession (Amendment) Act 2005, daughters are also coparceners, in the same manner as sons. However, for a daughter to be a coparcener, both she and her father should have been alive on 9 September 2005 as per the judgement of the Supreme Court in Prakash & Ors. vs. Phulavati & Ors. In case the father passed away prior to this date, regardless of the daughter being alive on this date, the daughter will not get the benefit of this amendment and will, therefore, have no rights over the property. In such a case, the ancestral property would devolve only upon the male coparceners of the Hindu Undivided Family (HUF).

HUF and Transfer of Assets

To transfer immovable assets through partition, one needs to prepare a partition deed. On partition between father and children, the father and children get an equal share ‘per stirpes’. Per stirpes means that each branch of the family will receive an equal share of the property. Grandchildren also become coparcener on birth and have a right to the property where grandchildren get a share in their respective parent’s share. For example, if a family consists of five members such as husband and wife having three children. The HUF property would be divided into five shares, the husband and the wife each taking one share and the remaining three shares devolving upon each child equally. Hence, each person will receive 1/5th share in the property. If a child has demised then the share of the pre-de-ceased child, as they would have got had they been alive at the time of partition, shall be allotted to



the surviving children of such pre-deceased child.

As we know, all the coparceners have a right in the assets of the HUF, so the Karta cannot disentitle any coparcener of his right. In case the coparcener demands partition of the HUF’s assets, the Karta must give the coparcener his share from the assets of the HUF. Though, as per the Hindu Law, part distribution of some of the assets of the HUF, which is called as partial partition of the HUF, either in respect of certain and not all assets or in respect of some of the members is fully valid. However, in view of provisions of S.171(9) of Income-tax Act, 1961, partial partitions will not be recognised for tax purposes. The income tax laws require that partition of HUF should be full.

An instrument of partition, of immovable property, of the value of ₹100 or upward requires registration. As held by the Supreme Court in Ramnagina vs. Harihar, a partition of immovable properties between coparceners or co-owners can be made orally, and is not required to be in writing; but, if there is an instrument effecting partition of immovable properties, it requires registration. Partition deed attracts stamp duty and must be registered. Stamp duty on partition deed varies from state to state.

Family settlements/arrangements are also effective for the distribution of ancestral property. The object of the family settlement should be broadly to settle existing or future disputes regarding prop-erty, amongst the members of the family. The family arrangement must be bonafide, honest, volun-tary and it should not be induced by fraud, coercion, or undue influence. In, Partap Singh & Anr. vs. Sant Palani Pillai vs. Sengamalathachi & Ors., the Supreme court has held that a minor cannot disturb a family settlement made in good faith unless he or she makes out a case in fraud.

The Supreme Court has clearly laid down in Roshan Singh vs. Zail Singh, that, if the family arrange-ment is of such nature, where one person transfers his right in the property to the other and the other person derives title of property through such an arrangement, then the family arrangement is required to be registered and duly stamped.

FAMILY ARRANGEMENT/SETTLEMENT

Release deed is a legal document/instrument where a legal heir gives up or releases his legal rights in an inherited property in favour of other legal heirs such as his mother, son, daughter, brother, sister, etc.

The term release refers to the abandoning and surrender of the rights, title, and interest, by one co-owner of property in favour of other co-owners. Hence, if a legal heir chooses to give up rights in the inheritance, he or she will have to execute a ‘deed of release' in favor of other heirs, stating that they are giving up their claim in the said property and in such a case, the children of this person will also not be able to stake claim over the property in future. The Bombay High Court in the case of Raivathari Madhupati Singhania vs. Madhupati Vijaypath Singhania, dismissed the plea filed by grandchildren of Mr. Vijaypath Singhania. The grandchildren have challenged a 1998 settlement agreement through which Mr. Madhupati and his family had relinquished their share in the property. The grandchildren have alleged that the settlement agreement ignored their rights as minors, but High Court dismissed all the claims of grandchildren and refused them a share in the property which

RELEASE DEED



HUF is an ever-increasing entity as members keep getting added or reduced. In such a scenario, managing the family and its finances might get quite complex. Though creating and registering an HUF is fairly easy, complications may arise later. At the root of many problems is poor understanding of the laws that govern HUFs. HUF laws are not codified and are read along with the Hindu Succession Act and the Income-tax Act. We have also interpreted the law through various judicial pronounce-ments which makes it quite easy to understand HUF laws and its implication. Hence, we can conclude by saying that each member has an equal right to the property owned by HUF which implies that the share of the existing members keeps diluting with new additions or increases on demise of any member. While all goes well till there are no disagreements among members, matters might go out of hand in case any discontent arises.

CONCLUSION

was relinquished by their father.

A deed of release is required to be duly stamped and registered. Stamp duty varies from state to state.


Notes


ModelPortfolio

Conservative Aggressive

Liquid FundsFixed depositsBonds/Tax FreesUST/Low Duration/ArbitrageFMPs/Interval Funds

30% 30% 10% 10% 15% 0%

Emkay Wealth Emkay Wealth Emkay Wealth Emkay Wealth Emkay Wealth Emkay WealthGUARD CONSERVE STEADY BUILD GROW MULTIPLY

Investor SuitabilityI . Debt - Short Term

II . Debt-Long Term

III. Equity

Short Term FundsIncome FundsCredit Risk FundsGilt Funds

Equity FundsDirect EquityPMSPrivate EquityIV. Alternate AssetsGold ETF/FundsReal Estate Products/REITSStructured ProductsI+II+III+IV 100% 100% 100% 100% 100% 100%

0% 0% 0% 0% 5% 20%

0% 10% 40% 60% 70% 80%

70% 60% 50% 30% 10% 0%

Guard - This is the most conservative of the model portfolios. The primary objective of this portfolio is preservation of capital. From a near to medium term perspective the portfolio construction aims at reducing the probability of losses, thereby there is no equity allocation in this portfolio.

Grow - The portfolio is suitable for aggressive investors with primary investment objective of capital growth. The major part of the portfolio is maintained in equity asset class. To provide stability to returns and to manage liquidity requirements effectively, a portion of the portfolio is maintained in debt asset class.

Multiply - The portfolio is suitable for aggressive inves-tors in the “Accumulation Phase”. With minimal liquidity requirements, the entire portfolio is allocated in high return generating assets. In order to reduce the risks associated with asset class concentration, Alternate Assets are introduced in the portfolio, so as to reduce the overall risk without compromising on the return generating potential.

Conserve - The primary objective continues to be capital preservation, but with marginally enhanced return generating potential. With an endeavour to earn better returns as compared to a pure debt portfolio, equity asset class allocation is introduced.

Steady - This portfolio is suitable for moderately aggres-sive investors, aiming to earn higher returns on their investments but at the same time do not intend to expose entire portfolio to the volatility of asset classes with high return generating potential. The allocation to equity asset class goes up, whilst the tilt remains in favour of debt.

Build - The allocation to equity asset class is further enhanced as the primary investment objective moves towards capital growth rather than preservation of capital over the near term. As the equity allocation goes

up, so does the investment horizon. A healthy exposure to debt asset class is also maintained to reduce the overall volatility of returns.


Published by Mr. Amit Rawal - Research Division Emkay Wealth Management.For content related queries contact at [email protected]

The information published is as per the data provided by various Mutual Funds, PMS Portfolio Man-agers, ProductManufacturers and segregated, consolidated and presented (statistically) by and on behalf of Emkay Wealth Management (EWM) which is involved in distribution of third party financial products. Though sufficient care has been taken to provide the correct data, EWM does not guaran-tee the accuracy of the data provided herein. As a potential investor, you are advised to check the updated data and other Terms & Conditions on the manufacturer’s website before making any investments. This report is disseminated for the information of authorized recipients only and is not to be relied upon or taken as substitution for the exercise of due diligence and judgment by any recipient. This report does not provide individually tailored investment advice; investor should seek independent financial advice with respect to the merits and risks involved in any of the matters con-cerning investment in the schemes / products mentioned in the report. Any person investing on the basis of the data published in Navigator will be doing so at their own risk and are advised to consult their certified financial planner before taking any investment decision. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimer


LEADERSHIP PROFILE

An alumni of Columbia Business School and NMIMS, Bhavesh brings in nearly three decades of experience, of which, the last 16 years are with the Financial Services industry. Throughout his career, he has been known for building, leading and motivating teams to excel in highly demanding and dynamic business environments. At Emkay he puts to good use his entrepreneurial drive combined with business-manage-ment skills to drive gains in revenue, market share and profit performance.

Bhavesh Sanghvi, CEO

A Masters in Economics and a Ph.D in Management, Dr. Thomas brings to the table a rich experience spanning three decades. His views on the economy, markets, portfolios and financial products are highly appreciated and pursued. He is a visiting faculty at numerous management and professional institutes and has also presented research papers at national and international conferences.

Joseph Thomas, Head of Research

An alumni of Columbia Business School, a Masters in Management from JBIMS and an Engineer from VJTI, Mumbai, Ashish brings in over 25 years of experience in financial services and investment management. He has been a fund manager for various funds, ranging from private equity, fixed income and hybrid to Equity.As a CIO and Head of PMS and Offshore Funds in his previous stints, he has lead teams and built assets across products. He brings in a rich experience and product knowledge to the team and his process oriented approach and Institutional background are an asset to our Institutional and high net-worth clients.

Ashish Ranawade, Head of Products

Apost graduate in Finance from Pune University, Parag holds over 21 years of experience in the financial services industry. He is renowned in the industry for his astute leadership skills and has been extremely successful in building teams during his earlier stints. At Emkay he will be driving the entire sales function of the division and setting out quality standards for various operational areas, implementing quality systems and procedures to facilitate a high quality customer experience.

Parag Morey, Head of Sales

With a Masters in Finance & Marketing and several leadership programs from IIM-A & ISB Hyderabad, Ashish comes with over a decade of experience in the Wealth Management space. His core competencies include strategy and alliances, negotiations and relationship management, business development, customer relationship management and customer engagement.

Ashish Todi, Head of Strategy & New Initiatives

A lawyer and a Company Secretary, Namita comes with a decade of experience in succession planning. She provides specialized and personal advice to families, business houses and high net worth individuals having wealth across various asset classes, geographies and complex business structures, keeping in mind the religious laws applicable in India, the succession laws for each class of assets and cross border succession laws.

Namita Agarwal, AVP Succession Planning

Amanagement graduate from Mumbai University, Raj comes with over a decade of experience in the Indian equity market. As an equity strategist he is an expert at managing equity advisory (PMS/ ND-PMS/ Direct Equities) for wealth clients. In his past assignments he has also worked as a senior equity analyst tracking multiple sectors and managing event based trading strategies. He is part of the Investment Managers team.

Raj Gala, Sr. Fund Manager/EIML


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