14 June 15-July 14, 2013 Mutual Fund Insight

BSL Dividend Yield PlusBSL Pure ValueCanara Rob Emerging Eq Canara Robeco MIPDSPBR Small and Mid Cap DSPBR Top 100 Equity

Franklin India Flexi CapGoldman Sachs Nifty ETSHDFC Capital BuilderHDFC GrowthHDFC InfrastructureHDFC Taxsaver

ICICI Pru Dynamic RegICICI Pru Index RegICICI Pru Long-term RegICICI Pru MIP RegICICI Pru Tax Plan RegIDFC Dynamic Bond Reg

IDFC India GDP Gr RegIDFC SSI MT RegKotak 50L&T EquityL&T India Large CapL&T Tax Advantage

LIC Nomura MF GrowthReliance Reg Savings DebtReligare Invesco EquitySahara Tax GainSundaram Select Midcap Tata Dividend Yield Plan A

Taurus Tax ShieldUTI Dividend YieldUTI Master Plus '91UTI Mastershare

Losing stars

Value Research pioneered mutual fund ratings way back in 1993 to enable investorsmake the right pick. The lowest rating is a 1 star, the highest being 5 stars. Therating acts as the first filter in fund selection since it takes into account the return aswell as risk undertaken to achieve that return. Risk-ajusted return from a fund is thesole basis of Value Research Fund Rating (detailed methodology on page 58).Below are the schemes in various categories that sport 5- and 4-star ratings.

TOP RATEDFUNDS

The figures next to fund categories reflect the number of funds that are rated 5- and 4-star within that respective category of funds.VALUE RESEARCH Mutual Fund Ratings are revised every month. The above ratings are as on May 31, 2013

A list of funds that moved out of the 5- and 4-star grade in May 2013

Hybrid: Equity-orientedHDFC Childrens Gift-Inv ICICI Prudential Balanced Reg ICICI Prudential Eq Volatility Advantage Reg Birla Sun Life 95 Edelweiss Absolute Return HDFC Balanced HDFC Prudence Tata Balanced Plan A

Hybrid: Debt-oriented AggressiveIDFC Moderate Asset Allocation Regular UTI CRTS 81 Birla Sun Life MIP II Wealth 25 FT India Life Stage FoF 40s SBI Magnum Children's Benefit Plan UTI MIS-Advantage Plan

Hybrid: Debt-oriented ConservativeBirla Sun Life MIP II Savings 5 ICICI Prudential Blended Plan B Option I Reg IDFC Monthly Income Plan Regular

Reliance MIP Birla Sun Life MIP Birla Sun Life Monthly Income DSPBR MIP HDFC Childrens Gift-Sav HDFC MIP Long-term HDFC Multiple Yield HDFC Multiple Yield Plan 2005 ICICI Prudential ChildCare-Study Reg IDFC Conservative Asset Allocation Regular UTI Monthly Income Scheme

Hybrid (28/87)

Equity: Large CapAxis Equity Franklin India Bluechip ICICI Prudential Focused Bluechip Equity Inst I ICICI Prudential Focused Bluechip Equity Reg ICICI Prudential Top 100 Inst I IDFC Nifty Regular BNP Paribas Equity DSPBR Top 100 Equity Inst HDFC Index Sensex Plus HDFC Top 200 ICICI Prudential Indo Asia Equity Inst ICICI Prudential Indo Asia Equity Reg ICICI Prudential Top 100 Reg IDFC Equity Regular Kotak Sensex ETF Reliance Quant Plus Retail SBI Magnum Equity Tata Index Sensex B UTI Top 100

Equity: Large & Mid CapDaiwa Industry Leaders Edelweiss Diversified Gr Eq Top 100 Edelweiss Diversified Gr Eq Top 100 Plan B Edelweiss Diversified Gr Eq Top 100 Plan C Kotak Select Focus UTI Equity UTI Opportunities Birla Sun Life Frontline Equity Birla Sun Life Top 100

Canara Robeco Equity Diversified Regular Franklin India Prima Plus FT India Life Stage FoF 20s HDFC Equity ICICI Prudential Dynamic Inst I ICICI Prudential Top 200 Inst I L&T Indo Asia Mirae Asset India Opportunities Regular Quantum Long Term Equity Reliance NRI Equity Reliance Top 200 Retail SBI Bluechip

Equity: Multi CapBNP Paribas Dividend Yield ING Dividend Yield L&T India Special Situations Birla Sun Life Asset Allocation Aggressive Goldman Sachs Nifty Junior BeES Religare Invesco Contra Tata Ethical Plan A Templeton India Equity Income

Equity: Mid & Small CapIDFC Premier Equity Regular Reliance Equity Opportunities Reliance Equity Opportunities Inst Religare Invesco Mid N Small Cap SBI Emerging Businesses BNP Paribas Midcap Franklin India High Growth Companies Franklin India Prima Franklin India Smaller Companies HDFC Mid-Cap Opportunities

ICICI Prudential Discovery Inst I ICICI Prudential Discovery Reg IDFC Sterling Equity Regular Religare Invesco Mid Cap SBI Magnum Global Sundaram Select Midcap Inst

Equity: Tax PlanningAxis Long Term Equity Edelweiss ELSS Quantum Tax Saving BNP Paribas Tax Advantage Plan Canara Robeco Equity Tax Saver Regular Franklin India Taxshield HDFC LT Advantage HSBC Tax Saver Equity IDFC Tax Advantage (ELSS) Regular Reliance Tax Saver Religare Invesco Tax Plan

Equity: BankingICICI Pru Banking and Financial Services Reg R*Shares Banking ETF Religare Invesco Banking

Equity: InfrastructureCanara Robeco Infrastructure Regular Franklin Build India Birla Sun Life Infrastructure DSPBR T.I.G.E.R. Inst DSPBR T.I.G.E.R. Reg PineBridge Infra and Economic Reform Inst PineBridge Infra and Economic Reform Standard Tata Growing Economies Infrastructure Plan B

Equity (86/265)

Debt: IncomeBirla Sun Life Dynamic Bond Ret Birla Sun Life Medium Term Birla Sun Life Medium Term Inst ICICI Prudential Banking & PSU Debt Reg ICICI Prudential Banking & PSU Debt Retail ICICI Prudential Dynamic Bond Prem Plus Sahara Income

Templeton India Income Builder Baroda Pioneer Income Birla Sun Life Short Term BNP Paribas Bond Canara Robeco Dynamic Bond Regular DSPBR Strategic Bond Inst Escorts Income ICICI Prudential Dynamic Bond Reg IDFC SSI Medium-term Plan B IDFC SSI Medium-term Plan F

Morgan Stanley Active Bond Reg Reliance Regular Savings Debt Inst Religare Invesco Active Income SBI Dynamic Bond Tata Dynamic Bond B Tata Dynamic Bond Plan A Tata Income Plus HI Tata Income Plus Plan A Templeton India Income Opportunities

Debt (26/80)

CATEGORY WATCH

36 June 15-July 14, 2013 Mutual Fund Insight

If you belong to a groupwhich likes risks but in a cal-culated manner, then large &

mid cap category is meant justfor you. Funds in this categoryhave a large cap bias along witha limited exposure to mid andsmall cap stocks which perfectlysuits those who are averse towide fluctuations in their invest-ment returns.

While large cap allocation ofthese funds provides downsideprotection to the portfolio, expo-sure to mid and small cap stocksgives it an extra edge to generatesuperior returns. The funds havesufficient investments in largecap stocks with the average largecap exposure of 71.4 per cent ason March 31, 2013.

The allocation to mid capstocks is the key for the spurt inreturns for funds in this category.For this reason during bull runs,this category does better than thelarge cap category, and loses outduring bear phases due to the rel-ative higher allocation to mid-capstocks leading to a higher drop inreturns. However, over long peri-ods, this category does well. In thepast 10 years, the category averagereturn has been over 22 per cent.

This category is the frontrun-ner for equity investments byinvestors as the maximumchunk of equity assets are in thiscategory with 34.21 per cent ofthe total equity assets in large-and mid-cap funds. The categoryalso makes up for 21 per cent ofthe total 258 diversified equityfunds accounting for `51,713crore assets, which is about 27per cent of the total assets man-aged by equity funds.

Adventurous, but secureLook no further than large and mid cap category if you are one of those who want stabilitybundled with higher returns, says Bharti Pareek

Category history

Top-5 sectorsMarket capitalisation

Best funds

5-year returns Quantum Long Term EquityUTI OpportunitiesMirae Asset India Opp RegCanara Robeco Eq Diversified RegHDFC Equity

Lowest 5-year Risk ScoreFT India Life Stage FoF 20sICICI Pru Advisor-Very Agg RegUTI OpportunitiesReligare Invesco EquityUTI Dividend Yield

Composite Rating ScaleKotak Select FocusDaiwa Industry LeadersEdelweiss Div Gr Eq Top 100UTI EquityUTI Opportunities

As on May 31, 2013

0

20

40

60

80

100

May 2012 April 2013

Small cap Mid cap Large cap

in%

Assets across categories

0

20

40

60

80

100

in%

Mid & Small Multi Large & Mid Large Cap

2008 YTD

Large-cap category has seen a rise

Mid-cap allocation has remained static

These top-5 sectors are mostly common across all thefunds and account for over 50 per cent allocation. The sec-tors’ mix is diverse which aids returns

2008 2009 2010 2011 2012 YTD*

Category Average -52.18 79.61 17.42 -23.72 31.06 -2.34Top Quartile Average -44.84 95.27 24.37 -17.69 38.36 1.84Bottom Quartile Average -59.98 64.22 9.34 -29.68 24.28 -5.89S&P BSE Sensex (%) -52.45 81.03 17.43 -24.64 25.70 1.72CNX Nifty (%) -51.79 75.76 17.95 -24.62 27.70 1.37Net Assets (` Cr) 29,047 48,260 49,297 48,351 64,664 51,713Total equity funds assets (` Cr) 1,13,682 1,97,931 2,14,934 1,79,450 1,91,812 1,88,264Asset as % of total equity 25.55 24.38 22.94 26.94 33.71 27.47Expense Ratio (%) 2.02 2.06 2.04 2.10 2.09 2.17Number of funds 69 81 77 87 84 80

As on March 31, 2013 seven funds joined the large- and mid-cap fund list. They are Birla Sun Life special situations, HSBCUnique Opportunities, ICICI Prudential Top 200, JM Core 11, Kotak Opportunities, Reliance Top 200 Retail and Taurus Starshare*Data as on May 31, 2013, assets as on March 31, 2013

Energy15.23%

Technology9.67%

FMCG8.52%

Financial27.04%

Automobile7.88%

CATEGORY WATCH

38 June 15-July 14, 2013 Mutual Fund Insight

SIP Returns (%) Trailing Returns (%) Top 10 Wt Avg Mkt Assets Portfolio Large Cap Allocation (%)

Fund Rating 3 yr 5 yr 1 yr 3 yr 5 yr Stocks (%) cap (` Cr) (` Cr) P/E P/B Current 3-yr range

ICICI Prudential Top 200 Inst I 6.83 11.84 23.16 6.66 7.06 49.28 50,871 482.78 19.86 3.39 75.37 66.20 - 83.25

L&T Indo Asia 8.20 12.84 21.53 8.33 6.95 42.46 70,492 283.67 21.39 5.32 87.52 62.02 - 87.52

Mirae Asset India Opportunities Regular 7.55 15.35 20.39 8.17 11.43 44.61 29,062 290.65 21.44 3.74 63.57 60.27 - 77.71

Quantum Long Term Equity 7.38 15.14 19.76 8.93 12.10 46.39 38,877 161.40 17.63 3.19 71.25 61.72 - 74.61

Reliance NRI Equity 8.32 13.87 25.66 7.07 9.73 49.68 29,540 89.21 23.08 5.24 73.37 60.68 - 80.11

Reliance Top 200 Retail 5.66 9.77 17.02 6.36 5.58 42.98 33,606 799.25 20.87 3.12 56.12 52.65 - 94.58

SBI Bluechip 10.17 12.00 27.19 7.01 6.21 43.62 35,641 856.35 21.18 4.98 70.28 70.28 - 82.75

Birla Sun Life International Equity Plan B 4.37 7.49 15.08 5.36 2.66 25.67 26,149 173.35 17.34 3.74 55.38 52.50 - 71.54

Birla Sun Life Long Term Advantage 5.71 10.77 20.88 4.84 6.51 36.94 38,799 145.17 21.12 5.07 66.15 49.18 - 76.58

DSPBR Opportunities 4.59 10.26 23.03 4.44 6.52 36.37 28,355 556.88 23.02 4.22 64.45 53.64 - 75.34

Franklin India Flexi Cap 4.26 10.90 18.81 6.04 7.54 57.11 26,487 1,692.58 18.33 2.79 63.21 52.68 - 74.76

HDFC Capital Builder 4.54 12.04 16.39 5.34 8.98 48.65 33,015 467.37 19.32 4.01 68.29 55.04 - 75.64

HDFC Focused Large Cap 2.22 9.21 12.82 4.71 6.61 60.11 50,398 465.91 16.68 4.17 90.30 45.32 - 90.56

HDFC Growth 2.28 9.80 12.26 4.96 7.17 61.12 20,432 1,227.38 20.99 3.28 61.89 55.56 - 72.99

HSBC India Opportunities 3.60 7.50 12.04 5.25 2.17 37.34 29,349 228.36 20.27 3.69 55.73 55.73 - 86.48

ICICI Pru Advisor-Very Aggressive Reg 3.88 8.95 9.63 5.65 5.52 - 1,03,303 5.34 22.84 5.66 97.92 61.16 - 97.92

ICICI Prudential Dynamic Reg 4.15 10.96 11.84 5.36 8.14 47.98 31,412 3,885.34 16.51 2.28 64.98 62.03 - 79.84

ICICI Prudential Top 200 Reg 5.35 10.31 21.24 5.24 5.68 49.28 50,871 482.78 19.86 3.39 75.37 66.20 - 83.25

ING Core Equity 3.79 9.11 16.64 5.16 3.97 40.00 26,683 69.51 17.64 3.20 69.15 49.98 - 78.61

Kotak Classic Equity 8.31 11.50 21.22 5.65 7.33 41.52 68,429 75.87 18.68 5.31 85.44 32.58 - 88.92

Kotak Opportunities 5.30 9.84 20.23 4.70 4.09 40.88 51,890 671.15 22.74 4.09 76.87 46.74 - 77.91

L&T Equity 4.15 11.19 16.57 5.56 8.28 47.59 59,562 2,398.60 21.08 4.62 80.49 72.30 - 89.03

L&T India Large Cap 4.17 11.26 16.64 5.65 8.44 50.19 57,045 335.62 21.99 5.16 87.17 72.51 - 90.76

Morgan Stanley A.C.E. Reg 4.43 11.59 20.93 4.14 8.28 40.15 31,260 211.90 20.91 4.11 65.62 46.77 - 76.07

Morgan Stanley Growth Reg 8.36 10.86 29.14 5.35 4.10 44.54 28,413 1,331.44 22.88 4.25 65.68 60.07 - 75.19

Principal Large Cap 3.47 10.48 16.51 3.60 6.83 53.69 70,216 365.83 23.23 4.29 82.21 70.12 - 83.28

Religare Invesco Equity 7.72 11.36 24.04 5.71 7.77 66.53 67,960 16.06 22.44 3.90 88.87 55.05 - 88.87

Religare Invesco Growth 6.48 10.74 21.78 6.26 6.53 54.87 53,275 36.08 18.76 3.62 74.37 66.60 - 82.20

Tata Pure Equity Plan A 6.62 11.17 19.22 6.07 6.85 55.80 48,496 592.96 20.33 3.97 89.77 58.96 - 90.72

Taurus Starshare 3.39 9.88 17.54 5.26 2.73 39.75 30,563 164.85 22.13 3.99 59.42 38.44 - 78.24

UTI Dividend Yield 3.37 10.99 14.91 5.42 10.08 42.42 43,734 3,511.12 19.03 4.57 72.28 67.33 - 74.48

DWS Investment Opportunity Regular 4.48 7.14 24.63 1.65 1.26 50.02 91,641 105.92 25.41 6.23 93.03 48.07 - 93.03

Franklin India Opportunities 2.82 6.93 16.60 3.55 0.95 47.39 51,718 304.12 21.44 4.91 75.28 50.39 - 86.71

Goldman Sachs CNX 500 4.32 - 19.59 3.27 - 40.07 48,887 68.89 23.96 5.22 75.68 74.80 - 100.00

HSBC Unique Opportunities 1.87 6.49 14.65 2.95 -1.00 48.97 33,660 57.31 16.57 3.34 63.50 43.65 - 80.23

IDFC Classic Equity Plan B 4.68 - 22.28 3.34 - 45.55 43,218 150.96 30.43 5.94 76.43 55.73 - 78.15

IDFC Classic Equity Regular 4.68 7.39 22.27 3.34 2.27 45.55 43,218 150.96 30.43 5.94 76.43 55.73 - 78.15

Kotak Equity FoF 4.08 8.44 19.27 3.17 4.88 - 35,240 24.21 21.48 4.01 67.83 48.39 - 80.08

Principal Growth 6.72 8.59 22.36 3.67 0.41 40.30 32,438 261.38 21.15 3.58 65.18 50.84 - 74.60

Reliance Vision -0.53 5.88 8.07 0.58 3.78 50.11 22,589 1,769.25 22.89 4.46 49.18 41.19 - 73.53

Reliance Vision Inst -0.33 6.13 8.29 0.81 4.06 50.11 22,589 1,769.25 22.89 4.46 49.18 41.19 - 73.53

Sahara Growth 0.72 5.50 10.79 2.36 4.93 34.43 33,162 9.25 17.69 4.61 81.99 60.02 - 85.96

45June 15-July 14, 2013 Mutual Fund Insight

No straitjacketed approach

SIP value (`)

Annual return (%)`1,000 invested per month for 5 years amounts to `87,059

We like this fund for not following acast-in-stone investment policy whichhelps it post gains across the marketcycles with dexterity.

StrategyIt is the flagship fund of the AMC witha large cap bias. It tries to identifyfuture growth trends at an early stageand focuses on companies which havestrong pricing power and are sectorleaders.

An important feature of its invest-ment strategy is the flexibility to investacross sectors, market caps, themes andstyle on the basis of market movements.

Also, it remains fully invested mostof the times with its equity exposuregoing up to 99 per cent. The averagecash allocation over the 5 years hasbeen just 3.99 per cent. Currently, ithas a meagre 1.21 per cent of its invest-ments in cash.

PerformanceDespite being launched during thetroubled year of 2008, it managed torestrict its fall to 38 per cent which wasslightly better than the category aver-age of 40.23 per cent. But it was thenext year (2009) which marked itsbeginning as a standout fund. Thatyear it beat the category average by 29

per cent and was one of the top-2 fundsin the category. It has done better thanits peers since then even though it hasnot managed to achieve the same featagain. Nonetheless, it has been a topquartile performer since 2009.

The scheme manages to sail throughthe market ups and down with equalease as it has delivered good returnsirrespective of the market cycle. Itstrailing returns also reflect its consis-tent performance as its annualised 5-year return of 11.72 per cent is higherthan the category average return of5.24 per cent.

The fund’s portfolio is of dualnature: core, which is meant for thelong term, and tactical which investsfor short term to capitalise on marketopportunities. To cite an example, itentered Alok Industries in May 2009and exited the next month when thestock price increased by 53 per cent.

It has a diversified portfolio of 58stocks which is higher than the catego-ry average of 46 and has less than 1.5per cent holdings in around 25 stocks.

Why invest?Consistent performance over the last 5years and the ability to straddle acrossthe sectors and stocks make it a fundworth investing.

Year 2007 2008 2009 2010 2011 2012 YTD

Fund - - 109.33 23.12 -19.64 33.28 -1.73Category 55.65 -52.47 80.24 16.99 -23.19 30.41 -2.34S&P BSE 200 60.44 -56.46 88.51 16.22 -26.95 30.98 -0.63

Mirae Asset India Opportunities Reg|

Fund style

Growth Blend ValueInvestment style

LargeM

id Small

Capitalisation

Data as on May 31, 2013, Portfolio relateddata as on April 30, 2013

Assets : `291 cr(March 2013)

Launch : March 2008Fund manager : Gopal Agrawal

Neelesh SuranaRisk :

Return :

Top-5 sectors (%)Sector Fund S&P BSE 200

Financial 26.06 27.00Energy 11.50 15.42Technology 9.92 9.69Healthcare 9.31 6.55FMCG 8.55 13.31

Fund S&P BSE 200Recent Rally - 09/03/2009 - 09/11/2010Recent Crash - 08/01/2008 - 09/03/2009

Trailing returns (%)

20.3920.27

8.173.83

11.433.40

June 20080

20000

40000

60000

80000

100000

May 2013Amount Invested

Quartile Ranking2012 2011 2010 2009 2008

103.7683.60

-58.97

1-Year

3-Year

5-Year

RecentRally

RecentCrash