KARVY’s

November, 2017

INVESTOR JOURNAL

www.karvyvalue.com

What’s Inside

KARVY’sINVESTOR JOURNAL

Fund of the MonthHDFC EQUITY FUND(G)

The scheme seeks to provide long-term

capital appreciation by predominantly investing...November, 2017

Page 04

Market ReviewPage 01

Karvy Investment InsightPage 03

Fund of The MonthPage 04

Readers CornerPage 05

AMC CornerPage 06

Story of The MonthPage 07

SIP PerformancePage 08

Category Average ReturnsPage 09

Fixed Deposits SchemesPage 10

Equity Funds PerformancePage 11

Debt Funds PerformancePage 12

Global Markets at a GlancePage 13

Indices WatchPage 14

Highlights of the Month » The Securities and Exchange Board of India’s (SEBI) Mutual Fund

Advisory Panel has recommended strict definitions on how mutual funds are categorised, a move that might halve the number of schemes offered by asset managers currently.

» SEBI aims to ensure that an asset management company has only one product offering in each category.Merger of MFs will decrease costs for the investors too.

» Axis Mutual fund has launched its new Multi cap scheme; the subscription is open till Nov 13 2017.In terms of asset allocation the fund will deploy 80 percent of its corpus in equity and equity-related securities, and the balance in debt and money.

» Mutual Funds (MFs) received inflows of Rs 20,000 crore for the second straight month in September taking the year-to-date inflow tally beyond Rs 1 lakh crore.

» The Nifty Infra index has delivered a return of 32 per cent year-to-date and 25.11 per cent over the past one year, outperforming the Nifty 50, whose corresponding figures are 26.61 per cent and 20.15 per cent, respectively. Infrastructure funds are currently the best-performing fund category.

» PFRDA has increased the maximum age for joining under NPS for private sector to 65 years of existing age of 60 years.

» Foreign investors have pumped in close to $3 billion in Indian capital market so far this month due to high nominal and real yield and stable macro economic condition. Interestingly, most of the fund have been infused in debt market this was followed by net outflow of Rs. 10,000 Cr from capital markets.

» Indian residents having investments in PPF, NSC will not enjoy high returns once they become non residents.Current interest rate of PPF and NSC is 7.8%.

» Thus far in the calendar year 2017 (CY17), 28 companies have collectively mopped up Rs 44,853 crore through IPOs, surpassing its previous high.

INVESTOR JOURNALNovember, 2017

Market Review

The ‘October Effect’ theory which suggest that stocks tend to decline in October month has no effect in 2017. In fact the benchmark Sensex and Nifty moved up 5.99% and 5.46% respectively in the month of October’17.

The next 6-12 months looks promising for Indian & global market and one can expect new highs in coming months if geo political factors remain as it is. Investors who are waiting on the sideline for market to crash may feel disappointed in this bull market however if we have 5 or 10% correction in market that would surely be an opportunity to go for bottom-fishing.

Equity mutual fund investors should remain invested as we feel market is yet to top. However, we would suggest that Investor with moderate to low risk appetite should not take much exposure in Sector funds due to its concentrated bet.

In its Fourth Bi-monthly policy, the MPC panel kept the policy rates unchanged at 6.00% while maintaining a neutral policy stance. The latest commentary from RBI suggest that the falling interest rate cycle is near its end but we may see 25-50 bps rate cut in near term (6-9 months). While duration play continues to be opportunistically played, accrual funds clearly offer a good investment option to the investors, especially the ones who shy away from volatility. There is also a school of thought which believes that credit could yet be risky and hence the attraction to high quality portfolios (AAA Corporate Bonds & PSU/PFI backed securities). This category of funds is for very conservative investors who would’ve alternatively focused on FDs & Post Office deposit like instruments

1.Foreign Trade: India’s merchandise rose sharply in September belying fear of a slump due to disruption and working capital issues brought on by GST, Export climbed 26% in September, exceeding 18.1% imports. In absolute terms India’s export were pegged at $28.6 billion in September and Imports were $37.6 billion.

The Rupee ranged between Rs.63.87 - Rs.65.76 per USD before closing at Rs.65.36 per USD in the month of Sep’17, vis-à-vis Rs.64.02 per USD recorded in Aug’17.

Non-petroleum exports which constitute around 74% of the total exports, posted a Y-o-Y growth of 4.71% in the month of Sep’17.

Oil imports continued to increase, posting a growth on a Y-o-Y basis of 18.47% to USD 8.19 billion in Sep’17. The Oil imports constituted around 22% of the total imports alone, during the month.

The non-oil imports also posted a spike of 17.98% to USD 29.41 billion vis-à-vis non-oil imports of USD 24.93 billion recorded in the month of September

of the previous fiscal.

2.Inflation:

Surprisingly, for the month of September, CPI has shown a downfall to 3.28% because of sharp decline in the food prices , however, core inflation stood 11 bps higher at 4.61% as compared to 4.50%.

WPI in September was at 2.60% which stood lower than the expectation against 3.24% in August. Core inflation saw an upward change at 2.89% compared to 2.57% in the previous month.

3.Index of Industrial Production (IIP):

Industrial output rose to 4.29% in Aug’17 compared to 4.02% growth in Aug’16 and 0.94% growth in Jul’17.

Output growth strengthened on account of considerable output growth in the major sectors, mining, electricity and manufacturing.

Growth was also aided by a healthy growth in capital and consumer goods output. Cumulative output growth for Apr-Aug 2017 stood at 2.2% compared

to 5.9% in Apr-Aug 2016.

Among the BSE sectoral indices, S&P BSE PSU, S&P BSE METAL Index & S&P BSE OIL & GAS Index were the major gainers which ended the month up by 12.68%, 10.74% & 10.26% respectively while S&P BSE AUTO Index, S&P BSE BANKEX & S&P BSE Consumer Durables were on lowest side zone ending the month by 4.66%, 3.96% & 1.95% respectively.

Among the NSE sectoral indices, NIFTY PSU BANK, NIFTY ENERGY & NIFTY METAL were the major gainers which ended the month up by 25.59%, 12.64% & 11.13% respectively while NIFTY BANK, NIFTY FINANCE & INDIA VIX were on lowest side zone ending the month by 3.27%, 2.41% and -8.09% respectively.

It was a positive month for the major Asian Indices as Nikkei 225, Taiwan & Hangseng ended up by 8.35%, 3.75% & 3.34%.

All major European indices ended in positive territory with DAX, CAC-40, BEL-20 & FTSE 100 going up by 3.73%, 3.70%, 2.45% and 1.86% respectively.

It was a positive month for Major American Indices with Dow Jones, Nasdaq, S&P 500 and NYSE ending up by 4.71%, 3.16%, 2.45% and 1.53% respectively.

Among the major indices across the world, Nikkei 225, Asian index was up by 8.35%.

Apart from FII and MF activity, Key domestic data released in the month of October were:

1

INVESTOR JOURNALNovember, 2017

S&P BSE SENSEXDate Close Price Points Diff %age Change

29-Sep-17 31,283.72

4-Oct-17 31,671.71 387.99 1.24%

11-Oct-17 31,833.99 162.28 0.51%

18-Oct-17 32,584.35 750.36 2.36%

25-Oct-17 33,042.50 458.15 1.41%

31-Oct-17 33,213.13 170.63 0.52%

6.17%

CNX Nifty IndexDate Close Price Points Diff %age Change

29-Sep-17 9,788.60

4-Oct-17 9,914.90 126.30 1.29%

11-Oct-17 9,984.80 69.90 0.70%

18-Oct-17 10,210.85 226.05 2.26%

25-Oct-17 10,295.35 84.50 0.83%

31-Oct-17 10,335.30 39.95 0.39%

5.59%

Sensex & Nifty:

MF Activity: (Month Between 03-Oct-2017 to 31-Oct-2017)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Oct-17 2,773.09 1,389.26 1,383.83

9-Oct-17 1,666.19 1,690.56 -24.37

13-Oct-17 110.22 101.42 8.80

18-Oct-17 3,190.88 1,870.92 1,319.96

27-Oct-17 2,927.07 2,619.52 307.55

Oct-17 44,894.68 36,273.98 8,620.70

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Oct-17 9,123.69 3,455.74 5,667.95

9-Oct-17 9,484.04 4,261.09 5,222.95

13-Oct-17 619.38 291.45 327.93

18-Oct-17 5,436.16 3,551.69 1,884.47

27-Oct-17 4,576.26 4,508.22 68.04

Oct-17 104,036.61 74,738.01 29,298.60

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FII Activity: (Month Between 03-Oct-2017 to 31-Oct-2017)

EquityDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Oct-17 5,959.89 6,397.40 -437.51

10-Oct-17 3,606.93 4,011.06 -404.13

17-Oct-17 4,508.26 4,760.54 -252.28

24-Oct-17 4,039.94 5,231.43 -1,191.49

31-Oct-17 6,307.20 6,362.29 -55.09

Oct-17 111,607.80 109,685.23 1,922.57

DebtDate Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.)

3-Oct-17 3,490.64 771.85 2,718.79

10-Oct-17 2,082.81 359.03 1,723.78

17-Oct-17 1,351.41 843.32 508.09

24-Oct-17 2,051.15 798.76 1,252.39

31-Oct-17 3,161.37 1,397.83 1,763.54

Oct-17 35,371.75 17,411.03 17,960.72

INVESTOR JOURNALNovember, 2017

12

Exciting Features coming up in

Online Investment Account

Upcoming

Features

NFO

Purchase

Convert

Offline Folios

to Online

STP

&

SWP

STAY TUNED...

INVESTOR JOURNALNovember, 2017

Karvy Investment Insight

Peace of mind and Wealth Creation ideas for long term

Karvy Insights brings to you investment wisdom to help our investors make sound investment decisions and reach their goals faster. These inputs may not help you become wealthy in a short span of time, but they would definitely give you peace of mind and a roadmap for your financial journey.

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FUNDSELECTION

Portfolio composition

Individual holdings

Sector breakdown

Deviation from Index

Risk ratios

Standard deviation

Alpha

Beta

Duration( Bond funds)

Fund Managers Commentary

Macro Overview

Reason behind performance

Justifying current holdings

Performance summary

Performance graphs

Growth since inception

Growth over various periods

CAGR

Risk Profile:AggressiveModerate

Conservative

Products: Variety Loads

& Fees Customer service reputation

Investment Goals:Long or Short term

Reputation of fund:Track record

Existing Asset Allocation: Already existing

What is inconsistent with risk profile

Past Performance:Investment approach

Past returnsConsistency

PICKING A FUND

INVESTOR JOURNALNovember, 2017

4

“1 per cent monthly guaranteed dividend” is the pitch I’ve heard a banker pitch

while selling balanced funds. You need to know, a mutual fund cannot guarantee you any return.

- Mahesh@invest_mutual

An

FD investor can’t be

a candidate for a total switch to

balanced funds. His risk appetite may not

allow it. MF industry has erred bigtime.

- Shyam Sekhar@shyamsek

Read Somewhere: Concentration is for building wealth

Diversification is for preserving wealth

- D.Muthukrishnan @dmuthuk

‘Tweets’ of the Month

Fund of The Month

HDFC EQUITY FUND(G)

Investment Objective:

To achieve capital appreciation.

Portfolio:

Top 10 Companies Holdings

Name %age

ICICI Bank Ltd. 9.6

State Bank Of India. 9.4

Larsen & Toubro Ltd. 7.8

Infosys Ltd. 6.4

HDFC Bank Ltd. 5.3

Maruti Suzuki India Ltd. 4.5

Reliance Industries Ltd. 4.0

Tata Steel Ltd. 3.1

Balkrishna Industries Ltd. 3.1

CESC Ltd. 2.8

Top 10 Sector Wise Holding

Industry Name (%)

Bank - Public 15.3

Bank - Private 14.9

Engineering - Construction 9.5

IT - Software 8.5

Power Generation/Distribution 6.3

Automobiles - Passenger Cars 4.5

Refineries 4.0

Electric Equipment 3.2

Steel & Iron Products 3.1

Tyres & Allied 3.1

To read the full Information, Click Here

About Performance of the Scheme:

It is one of the country’s largest Mutual Fund scheme managed by the veteran fund manager Prashant Jain who also manages another behemoth HDFC Top 200. Though both of these are large cap schemes, their operation and strategy are not entirely...

Indicates an increase or decrease or no change in holding since last profile. Indicates an increase or decrease in holding since last portfolio.

Funny how many people are already calling this end of bull market.

Everyone wanted a dip to buy but when the dip comes, fear takes over.

- Anuj Singhal@i_anujsinghal

Prashant Jain of HDFC MF: India’s mkt cap to GDP is at multi yr low. Where is the market expensive?

- Ami Shah@ami_b_shah

INVEST HERE

INVESTOR JOURNALNovember, 2017

Readers Corner

5

BEST OPTIONS FOR CONSERVATIVE INVESTORS

There are different types of investors in this financial world as much as there are different categories of people in this universe. There cannot be a one stop solution in this regard and products have to be customized based on individual requirements. Here, we wish to take you through some options for conservative investors who prefer safety to returns.

Liquid Funds

• Liquid Funds are schemes which invests predominately in Money Market Instruments like commercial papers (CPs), Treasury Bills, certificates of deposits (CDs), call or notice money etc.

• Money market instruments generally have a maturity period of less than one year and are considered very liquid in nature.

• These funds are an attractive alternative to corporate and individual investors as a means to park their idle funds for short periods...

UST Funds

• The investment objective of the scheme is to generate optimal returns commensurate with low risk and a high degree of liquidity by investing primarily in a mix of short term debt & money market instruments which results in a portfolio having marginally higher maturity and moderately higher credit risk as compared to liquid fund at the same time maintaining a balance between safety and liquidity.

Arbitrage Funds

Apart from these two, one can also explore a lesser known category of equity funds called Arbitrage Funds. Though they are categorized as equity, their operation and strategy are different from the other equity sub-categories such as largecap, midcap, smallcap or multicap..

To read the full Article, Click Here

INVESTOR JOURNALNovember, 2017

AMC Corner

6Courtesy : TATA Mutual Fund

Tax Reckoner 2017-18

Tax Implications on Dividend received by Unit holders

Individual/ HUF Domestic Company NRI

Dividend

Equity oriented schemes Nil Nil Nil

Debt oriented schemes Nil Nil Nil

Rate of tax on distributed income (payable by the MF scheme)**

Equity oriented schemes* Nil Nil Nil

Money market or Liquid schemes / debt 25% + 12% Surcharge + 3% Cess 30% + 12% Surcharge + 3% Cess 25% + 12% Surcharge + 3% Cess

schemes (other than infrastructure = 28.84% = 34.608% = 28.84%debt fund)

Infrastructure Debt Fund 25% + 12% Surcharge + 3% Cess 30% + 12% Surcharge + 3% Cess 5% + 12% Surcharge + 3% Cess

= 28.84% = 34.608% = 5.768%

* Securities transaction tax (STT) shall be payable on equity oriented mutual funds schemes at the time of redemption/switch to the other schemes/sale of units.

** For the purpose of determining the tax payable by the scheme, the amount of distributed income has to be increased to such amount as would, after reduction of tax on such increased amount, be equal to the income distributed by the Mutual Fund. In other words, the amount payable to unit holders is to be grossed up for determining the tax payable and accordingly, the effective tax rate would be higher.

Capital Gains Taxation$ @ $ Individual/ HUF Domestic Company NRI

Equity Oriented Schemes● Long Term Capital Gains (units held for more than 12 months) ● Short Term Capital Gains (units held for 12 months or less)

Long term capital gains Nil Nil Nil

Short term capital gains 15% 15% 15%

Other Than Equity Oriented Schemes● Long Term Capital Gains (units held for more than 36 months) ● Short Term Capital Gains (units held for 36 months or less)

& & &Long term capital gains 20% 20% Listed - 20% Unlisted - 10%*

^ ^^ ^^^ ^Short term capital gains 30% 30% /25% 30%

#Tax Deducted at Source (Applicable only to NRI Investors)

$ $Short term capital gains Long term capital gains

Equity oriented schemes 15% Nil^ &Other than equity oriented schemes 30% 10%* (for unlisted) & 20% (for listed)

Snapshot of Tax rates specific to Mutual Funds

The rates are applicable for the financial year 2017-18 as per Finance Act, 2017

$ Surcharge at 15%, is applicable where income of Individual/HUF unit holders exceeds Rs. 1 crore. As per Finance Act, 2017, surcharge at 10% to be levied in case of individual/ HUF unit holders where income of such unit holders exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore. Further, Education Cess at 3% will continue to apply on aggregate of tax and surcharge.

@ Surcharge at 7% is applicable where income of domestic corporate unit holders exceeds Rs 1 crore but does not exceed 10 crores and at 12% where income exceeds 10 crores. Further, Education Cess at 3% will continue to apply on aggregate of tax and surcharge.

# Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors.

& After providing indexation.

* Without indexation.

^ Assuming the investor falls into highest tax bracket.

^^This rate applies to companies other than companies engaged in manufacturing business who are taxed at lower rate subject to fulfillment of certain conditions.

^^^ If total turnover or gross receipts during the financial year 2015-16 does not exceed Rs. 50 crores.

Further, the domestic companies are subject to minimum alternate tax not specified in above tax rates.

Transfer of units upon consolidation of mutual fund schemes of two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented fund in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.

Transfer of units upon consolidation of plans within mutual fund schemes in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.

Relaxation to non-residents from deduction of tax at higher rate in the absence of PAN subject to them providing specified information and documents.

Dividend Stripping: The loss due to sale of units in the schemes (where dividend is tax free) will not be available for setoff to the extent of tax free dividend declared; if units are:(A) bought within three months prior to the record date fixed for dividend declaration; and (B) sold within nine months after the record date fixed for dividend declaration. Bonus Stripping: The loss due to sale of original units in the schemes, where bonus units are issued, will not be available for set off; if original units are: (A) bought within three months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units. However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

INVESTOR JOURNALNovember, 2017

Story of The Month

A disappointed salesman of a Cola company returns from his Middle East assignment. A friend asked, “Why weren’t you successful with the Arabs?”.

The salesman explained, “When I got posted in the Middle East, I was very confident that I would make a good sales pitch as Cola is virtually unknown there. But, I had a problem I didn’t know to speak Arabic. So, I planned to convey the message through three posters...

First poster - A man lying in the hot desert sand... totally exhausted

and fainting.

Second poster - man is drinking our Cola.

KNOW YOUR CUSTOMER

Third poster - Our man is now totally refreshed.

Then these posters were pasted all over the place. “That should have worked,” said the friend.

The salesperson replied, “I didn’t realize that Arabs go from right to left”

MORAL OF THE STORY:

Courtesy : Karvy Learning Center

Direct Dil Se…

7

In the advisory space, all Advisors are expected to know their customers well. Knowledge of our products along with the territory will enable us to strengthen our

relationship with the customer and thereby provide service to the expected standards.

INVESTOR JOURNALNovember, 2017

SIP Performance

S&P BSE SENSEXCurrent NAV (`)

3 Year SIP 5 Year SIP

Rs.36000 Rs.60000

Profit-SIP XIRR(%) Profit-SIP XIRR(%)

Large Cap

Birla SL Advantage Fund(G) 77.03 11905.83 19.46 43333.77 21.90

SBI BlueChip Fund-Reg(G) 37.50 9022.77 15.07 35424.99 18.62

Reliance Growth Fund(G) 1140.40 12469.50 20.30 43820.89 22.09

BNP Paribas Equity Fund(G) 83.57 7615.75 12.87 30370.58 16.39

Aditya Birla SL Frontline Equity Fund(G) 217.06 9541.33 15.88 34120.19 18.05

Multi Cap

Birla SL Pure Value Fund(G) 64.76 18931.24 29.46 73240.29 32.56

Sundaram Rural India Fund(G) 42.97 16328.21 25.86 52763.42 25.52

L&T India Value Fund-Reg(G) 37.33 14321.12 23.00 58437.56 27.58

ICICI Pru Value Discovery Fund(G) 142.14 7166.79 12.15 38475.54 19.91

SBI Magnum Multicap Fund-Reg(G) 46.75 11928.33 19.49 45108.53 22.60

Mid Cap & Small Cap

DSPBR Micro-Cap Fund-Reg(G) 64.06 14707.09 23.56 76004.79 33.44

SBI Small & Midcap Fund-Reg(G) 52.61 19739.86 30.55 86092.93 36.51

Reliance Small Cap Fund(G) 42.70 19110.24 29.70 83935.82 35.87

Franklin India Smaller Cos Fund(G) 58.96 13829.18 22.29 64599.51 29.72

SBI Magnum MidCap Fund-Reg(G) 79.62 9278.94 15.47 50111.83 24.53

ELSS

Axis LT Equity Fund(G) 39.87 9167.26 15.30 42159.83 21.42

DSPBR Tax Saver Fund-Reg(G) 46.51 12072.89 19.71 43582.27 21.99

Aditya Birla SL Tax Savings Fund(G) 69.61 12053.53 19.68 41024.60 20.96

Franklin India Taxshield(G) 543.37 8149.20 13.71 34967.70 18.42

Invesco India Tax Plan(G) 47.09 9843.63 16.34 39074.75 20.16

Sector

Franklin Build India Fund(G) 41.89 13101.56 21.23 58016.31 27.43

SBI Pharma Fund-Reg(G) 126.25 -2212.54 -4.07 16134.86 9.46

ICICI Pru Banking & Fin Serv Fund(G) 60.70 17526.61 27.53 58087.06 27.46

ICICI Pru Exports & Other Services Fund(G) 57.13 7999.70 13.47 41242.81 21.05

SBI Infrastructure Fund-Reg(G) 15.73 10805.28 17.81 35459.73 18.63

Index

ICICI Pru Nifty Next 50 Index Fund(G) 26.18 14454.22 23.19 46485.56 23.14

IDBI Nifty Index Fund(G) 19.14 7225.82 12.24 21871.68 12.38

LIC MF Index Fund-Sensex plan(G) 61.76 6704.39 11.41 20202.19 11.55

Reliance Index Fund - Sensex Plan(G) 16.31 7035.68 11.94 20965.53 11.93

HDFC Index Fund-Nifty(G) 92.59 8274.25 13.90 25016.82 13.91

As on 27th Oct’17 (Funds have been arranged on 3 years performance)

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INVESTOR JOURNALNovember, 2017

Category Average Returns

Category Sub Category1 Week Return

1 Month Return

3 Month Return

6 Month Return

1 Year Return

3 Year Return

5 Year Return

Since Inception

Diversified

Large-cap 2.19 5.68 4.00 10.71 19.85 12.03 16.52 14.08

Mid-cap 2.00 6.92 6.19 10.45 22.70 18.48 24.93 17.67

Multi-cap 2.03 5.84 4.86 10.64 21.20 13.71 18.87 16.18

Small-cap 2.41 7.51 6.66 12.11 25.64 21.35 29.35 20.50

Sector Funds

Banks & Financial Services 2.46 3.91 -0.53 9.96 24.88 15.91 17.25 20.16

Energy & Power 1.65 7.02 9.34 13.68 34.80 19.63 19.41 18.97

FMCG 0.75 5.18 5.65 11.60 22.05 14.79 16.73 16.54

Infrastructure 3.69 9.16 8.20 12.43 28.59 14.45 17.45 10.01

Media & Entertainment 3.25 4.04 1.06 -7.35 2.43 8.19 13.06 15.12

Pharma & Health Care 1.38 4.39 0.27 -2.45 -9.94 2.87 15.42 11.12

Service Industry 2.16 5.66 7.53 8.57 17.26 12.91 26.22 15.73

TECk 0.99 4.35 2.91 10.15 10.40 3.42 16.00 9.15

Speciality

Contra 2.01 7.02 5.65 13.25 21.71 14.33 18.87 17.66

Dividend Yield 2.24 6.91 5.90 12.20 24.60 12.77 16.69 16.82

Index - Nifty 1.55 5.76 2.91 11.50 20.55 9.07 14.27 12.03

Index - Sensex 2.04 6.34 2.35 11.56 19.38 6.62 12.85 14.00

MNC 1.85 4.09 4.37 11.66 17.75 16.70 22.46 18.13

Equity Exchange Traded Funds 2.76 6.67 3.29 11.45 21.55 8.86 13.72 13.99

Equity Linked Savings Scheme 2.05 5.97 4.61 11.53 21.30 13.48 18.74 17.86

Arbitrage Funds

Debt-Oriented 0.09 0.67 0.80 3.13 5.59 7.27 7.29 6.16

Equity-Oriented 0.12 0.57 1.52 3.05 5.89 6.64 7.42 6.50

Asset Allocation 1.03 1.96 1.46 4.75 9.04 7.19 7.45 9.45

Balanced Funds

Debt-Oriented 0.61 2.09 1.61 5.44 9.56 6.20 10.97 7.90

Equity-Oriented 1.39 3.74 2.95 7.91 15.40 10.74 15.56 13.61

Category Capital Protection Funds 0.42 1.38 1.36 4.45 8.16 7.43 7.33

Monthly Income Plans 0.56 0.93 4.77 3.25 5.61 9.38 9.07 8.46

Fund Of Funds

Debt-Oriented 0.38 1.29 1.45 5.02 9.63 9.58 10.14 9.42

Equity-Oriented 0.77 2.62 1.60 7.47 15.34 11.73 15.16 13.44

Hybrid-Oriented 0.62 2.40 2.01 6.24 11.99 10.06 11.36 12.05

Gold - FOF -0.75 -1.40 2.48 -1.35 -6.26 1.74 -2.99 -0.02

Gold Exchange Traded Funds -0.55 -2.04 1.57 -0.24 -4.78 2.93 -2.41 4.04

Income

Long Term 0.01 0.17 0.56 3.84 6.22 8.67 8.48 8.17

Medium Term 0.10 0.45 1.19 4.03 7.59 8.94 8.97 8.30

Short Term 0.11 0.52 1.38 3.95 7.13 8.35 8.55 8.01

Gilt

Long Term -0.19 -0.39 -0.53 3.65 6.25 9.99 9.39 8.88

Medium Term -0.14 -0.15 0.14 3.06 4.93 8.88 8.76 8.28

Short Term 0.04 0.32 1.26 3.99 7.20 8.73 8.67 7.04

Floating Rate

Long Term Floating Rate 0.06 0.49 1.43 4.21 7.28 8.93 8.67 7.89

Med Term Floating Rate 0.16 0.66 3.03 4.58 9.46 9.44 9.34 7.22

Short Term Floating Rate 0.13 0.58 1.61 3.71 7.32 8.24 8.66 7.86

Speciality-Debt

Interval Funds - Half Yrly 0.12 0.58 1.65 3.47 7.07 7.71 8.17 8.09

Interval Funds - Monthly 0.11 0.52 1.51 3.12 6.28 7.16 7.88 7.92

Interval Funds - Quarterly 0.11 0.52 1.52 3.14 6.44 7.28 8.02 8.13

Interval Funds - Yearly 0.11 0.55 1.60 3.40 7.06 7.88 8.33 8.06

Liquid 0.12 0.53 1.56 3.25 6.36 7.38 8.01 7.43

Ultra Short Term Plan 0.12 0.56 1.54 3.58 6.94 7.88 8.38 7.60

Returns are as on 27th Oct’179

INVESTOR JOURNALNovember, 2017

Fixed Deposits Schemes

FD Name Rating IndustryInterest Rate

* (Up to)

Bajaj Finance Ltd.FAAA by CRISILICRA MAAA

Bajaj Finserv is the most diversifed non-bank in the country, the largest financier of consumer durables in India and one of the most profitable firms in the category.

8.10%

DHFL Aashray DepositPlus

CARE AAA FD, BWR FAAA

Dewan Housing Finance Ltd (DHFL) is the second housing finance company to be set up in the private sector in India.

8.25%

Gruh Finance Ltd.MAAA by ICRA, FAAAby CRISIL

GRUH Finance Ltd is subsidiary of HDFC Ltd is housing finance company (HFC) recognized by National Housing Bank.

7.75%

HDFC Ltd.FAAA by CRISIL, MAAA by ICRA

A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 4.9 million customers to own a home of their own. HDFC is the Largest mobiliser of public deposits outside the banking system and the HDFC Group has a strong asset base of over Rs.2.97 trillion and a customer base of over 42.5 million.

7.65%

HUDCO‘tAA+(ind)’ by FITCH, ‘CARE AA+(FD)’ by CARE

HUDCO is a premier techno-financing company set up in 1970 by the Government of India to accelerate the pace of housing and urban development in the country.

7.25%

ICICI Home Finance Ltd

CARE FAAA, ICRA MAAA

ICICI Home Finance Company Limited is one of the leaders in the Indian mortgage finance and realty space.

7.65%

LIC Housing Finance Ltd.

FAAA / STABLE by CRISIL

One of India’s largest housing finance companies, having nation-wide network. Consistent record of dividend payments.

7.55%

Mahindra & Mahindra Financial Services Ltd

CRISIL FAAAMahindra and Mahindra Financial Services Limited (MMFSL) commenced its journey two decades back in the rural non-banking finance industry.

7.80%

PNB Housing Finance Ltd.

FAAA by CRISILPNB Housing Finance (PNBHF) is a subsidiary of Punjab National Bank and a partner of Destimoney Enterprises Pvt. Ltd. PNBHF was incorporated in 1988 and is based in New Delhi.

7.65%

Shriram City Union Finance Ltd.

IND +AA- CARE AA FD

As a deposit-accepting non-banking financial company (NBFC), Shriram City is today India’s premier financial services company specializing in retail finance.

8.25%

Shriram Unnati Deposits

FAAA/Stable by CRISIL, MAA+/Stable by ICRA

With a track record of about 30 years in this business, STFC is among the leading organized finance provider for the commercial vehicle industry

8.25%

Sundaram Home Finance Ltd.

ICRA MAA+Sundaram BNP Paribas Home Finance combines its expertise in Home Finance with the Service Orientiation of its promoter Sundaram Finance.

8.25%

* highest rate including additional interest for Senior citizens, employees etc. wherever applicable

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INVESTOR JOURNALNovember, 2017

Equity Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Diversified

SBI Small & Midcap Fund-Reg(G) 51.77 31.38 29.46 34.23 22.39

L&T Emerging Businesses Fund-Reg(G) 26.24 37.22 26.99 32.12

Aditya Birla SL Small & Midcap Fund(G) 41.25 27.97 25.93 27.45 14.44

Mirae Asset Emerging Bluechip-Reg(G) 49.50 26.54 25.12 30.85 24.47

L&T Midcap Fund-Reg(G) 143.29 33.12 24.48 29.21 22.30

ELSS

ICICI Pru LT Equity Fund (Tax Saving)(G) 339.57 4.32 10.00 10.30 18.02

IDBI Equity Advantage Fund-Reg(G) 25.41 7.03 13.96 14.06

Franklin India Taxshield(G) 538.05 7.24 14.56 13.20 18.91

Canara Rob Equity Tax Saver Fund-Reg(G) 57.34 7.48 16.08 10.28 15.37

Axis LT Equity Fund(G) 39.56 11.27 17.32 14.37 22.95

Sector

DSPBR Natural Res & New Energy Fund-Reg(G) 37.37 44.17 26.59 23.47 14.86

Aditya Birla SL Banking & Financial Services Fund-Reg(G) 27.45 23.64 24.28 29.80

ICICI Pru Banking & Fin Serv Fund(G) 60.29 28.58 22.51 24.06 21.60

L&T Infrastructure Fund-Reg(G) 17.68 40.32 22.34 22.74 5.81

IDFC Infrastructure-Reg(G) 18.67 46.21 20.22 16.44 9.85

Dividend Yield

BNP Paribas Dividend Yield Fund(D) 18.64 27.75 16.82 20.59 13.62

ICICI Pru Dividend Yield Equity Fund(D) 14.72 28.89 14.67 18.70

Principal Dividend Yield Fund(HD) 25.64 27.86 14.49 16.32 13.42

Tata Dividend Yield Fund(D) 30.42 17.20 12.97 16.81 16.99

Aditya Birla SL Dividend Yield Plus(D) 17.47 20.14 11.00 15.23 21.70

Global

MOSt Shares NASDAQ-100 ETF 385.36 20.01 15.36 22.05 22.14

Aditya Birla SL Intl. Equity Fund-B(G) 18.23 18.38 11.90 13.38 6.19

Franklin Asian Equity Fund(G) 21.42 22.19 11.00 12.01 8.09

Reliance ETF Hang Seng BeES 2852.96 22.64 10.50 12.23 11.53

Kotak US Equity Fund(G) 14.44 18.92 10.28 10.00

Equity Index

ICICI Pru Nifty Next 50 Index Fund(G) 25.94 26.04 19.42 21.96 13.85

IDBI Nifty Junior Index Fund(G) 22.27 24.12 18.42 21.23 11.93

UTI Nifty Index Fund(G) 66.27 20.34 9.34 13.35 11.30

HDFC Index Fund-Nifty(G) 92.42 20.15 9.31 13.56 15.41

HDFC Index Fund-Nifty(G)(Post Addendum) 92.42 20.15 9.31 13.56 15.41

Equity FOF

ICICI Pru Very Aggressive(G) 69.60 19.08 13.70 13.09 15.02

Aditya Birla SL Financial Planning FOF Aggressive Plan(G) 21.84 15.52 13.05 15.27 12.83

Edelweiss Gr China Equity Off-Shore Fund-Reg(G) 26.08 29.86 12.89 15.23 12.44

Aditya Birla SL Asset Allocator Multi FoF(G) 27.78 13.85 12.77 14.94 9.55

ICICI Pru Long Term Savings Plan(G) 61.44 16.86 11.39 12.41 13.99

(Funds has been arranged on the basis of 3 years performance)

11

INVESTOR JOURNALNovember, 2017

Debt Funds Performance

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Gilt Funds

Aditya Birla SL Gilt Plus-PF(G) 48.75 -0.23 5.35 8.25 11.84

Aditya Birla SL Gilt Plus-PF(G)-Instant Gain 48.75 -0.23 5.35 8.25 11.84

SBI Magnum Gilt-LTP-Reg(G) 38.48 -0.16 4.27 9.00 11.81

BNP Paribas Government Securities Fund(G) 15.15 0.20 5.38 7.84 11.48

Reliance Gilt Securities Fund(G) 22.88 -0.12 4.60 7.99 11.37

Income

ICICI Pru Long Term Plan(G) 21.39 0.08 4.86 8.45 11.11

DHFL Pramerica Dynamic Bond Fund(G) 1648.24 0.52 4.96 10.06 10.52

Franklin India Dynamic Accrual Fund(G) 59.87 1.92 4.84 9.77 10.44

UTI Dynamic Bond Fund-Reg(G) 20.00 0.43 4.09 9.55 10.40

SBI Dynamic Bond(G) 21.42 0.10 3.99 8.29 10.26

Scheme NameLatest

NAV (`)

Absolute CAGR

1 Year 3 Year 5 YearSINCE

INCEPTION

Balanced

Tata Retirement Sav Fund - Mod Plan(G) 28.81 24.17 18.03 20.45 19.34

Principal Balanced Fund(G) 74.62 25.70 16.11 18.50 11.96

L&T India Prudence Fund-Reg(G) 25.71 17.20 14.83 19.00 15.08

HDFC Balanced Fund(G) 146.58 18.07 14.47 18.95 16.96

ICICI Pru Balanced Fund(G) 127.40 19.27 14.42 19.42 15.19

MIP

SBI Magnum Children Benefit Plan 52.61 18.02 15.54 14.85 11.11

Aditya Birla SL MIP II-Wealth 25(G) 38.86 11.44 13.27 14.25 10.63

Aditya Birla SL MIP II-Wealth 25(Payment) 38.86 11.44 13.27 14.60 10.73

ICICI Pru Child Care Plan-Study Plan 69.08 10.31 12.34 15.52 12.70

Tata Retirement Sav Fund - Cons Plan(G) 18.92 11.90 11.41 11.61 11.24

Arbitrage

Edelweiss Arbitrage Fund-Reg(G) 12.61 5.92 6.97 7.20

Reliance Arbitrage Advantage Fund(G) 17.32 5.76 6.93 7.63 8.11

DHFL Pramerica Arbitrage Fund-Reg(G) 12.36 6.02 6.82 6.92

Kotak Equity Arbitrage Scheme(G) 24.23 5.90 6.77 7.72 7.60

L&T Arbitrage Opp Fund-Reg(G) 12.48 5.85 6.76 6.89

Gold-FOF

SBI Gold-Reg(G) 9.41 -4.14 1.13 -2.82 -1.00

Invesco India Gold Fund(G) 9.18 -4.88 1.03 -2.95 -1.44

Canara Rob Gold Saving Fund-Reg(G) 8.79 -4.97 0.68 -3.00 -2.39

HDFC Gold Fund(G) 9.71 -5.34 1.18 -2.76 -0.49

IDBI Gold Fund(G) 8.60 -5.87 0.31 -3.23 -2.87

(Funds has been arranged on the basis of 1 year performance)

Hybrid Funds Performance

12

INVESTOR JOURNALNovember, 2017

Global Markets at a Glance

13

Exhibit: Nifty

Exhibit: S&P 500

Exhibit: Euro Stoxx 50

Exhibit: Nikkei

Exhibit: Shanghai

Exhibit: INR

Exhibit: Dollar Index

Exhibit: Eur

Exhibit: JPY

Exhibit: CNY

Exhibit: India 10 Yr Yld %

Exhibit: US 10 Yr Yld %

Exhibit: Germany 10 Yr Yld %

Exhibit: Japan 10 Yr Yld %

Exhibit: China 10 Yr Yld %

Source: Bloomberg, Karvy Research

9660971097609810986099109960

10010

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25-S

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27-S

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28-S

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64.50

65.00

65.50

66.00

22-S

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25-S

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28-S

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29-S

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4-O

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6.586.606.626.646.666.686.70

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25-S

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4-O

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2,480

2,505

2,530

2,555

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28-S

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29-S

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2-O

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92.0

92.5

93.0

93.5

94.025

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26-S

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28-S

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29-S

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3-O

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4-O

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2.15

2.20

2.25

2.30

2.35

2.40

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27-S

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28-S

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29-S

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3-O

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4-O

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3,5003,5203,5403,5603,5803,6003,620

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26-S

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28-S

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29-S

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2-O

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3-O

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1.165

1.170

1.175

1.180

1.185

1.190

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28-S

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29-S

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0.3800.4000.4200.4400.4600.4800.500

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28-S

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29-S

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2-O

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3-O

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4-O

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20,200

20,300

20,400

20,500

20,600

20,700

25-S

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26-S

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27-S

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28-S

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29-S

ep

2-O

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3-O

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4-O

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111.0

111.5

112.0

112.5

113.0

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26-S

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27-S

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28-S

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29-S

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2-O

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0.00

0.02

0.04

0.06

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26-S

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27-S

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28-S

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29-S

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2-O

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3-O

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3,320

3,330

3,340

3,350

3,360

3,370

20-S

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21-S

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22-S

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25-S

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26-S

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27-S

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28-S

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29-S

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6.50

6.55

6.60

6.65

6.70

20-S

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21-S

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22-S

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25-S

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26-S

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27-S

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3.593.603.613.623.633.643.65

20-S

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21-S

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22-S

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25-S

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26-S

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27-S

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28-S

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29-S

ep

INVESTOR JOURNALNovember, 2017

Indices Watch

Index NameAs on

29-Sep-17As on

28-Oct-17%

Change

S&P BSE Capital Goods 17172.12 18294.50 6.54%

S&P BSE BANKEX 27025.26 28096.49 3.96%

S&P BSE Power Index 2206.23 2340.08 6.07%

S&P BSE PSU 8322.24 9377.34 12.68%

S&P BSE DOLLEX 30 3929.30 4186.07 6.53%

S&P BSE AUTO Index 24180.04 25305.86 4.66%

S&P BSE SENSEX 31283.72 33157.22 5.99%

S&P BSE 100 10172.64 10748.30 5.66%

S&P BSE 200 4280.88 4522.23 5.64%

S&P BSE 500 13610.70 14405.17 5.84%

S&P BSE O & G Index 14842.54 16365.51 10.26%

S&P BSE METAL Index 13563.90 15020.98 10.74%

S&P BSE Mid-Cap 15436.01 16379.58 6.11%

S&P BSE GREENEX 2629.49 2809.52 6.85%

S&P BSE Small-Cap 16113.68 17303.66 7.38%

S&P BSE TECk Index 5607.57 5972.61 6.51%

S&P BSE Consumer Durables 17554.86 17897.54 1.95%

S&P BSE IT 9946.60 10417.09 4.73%

S&P BSE Health Care 13487.76 14140.93 4.84%

S&P BSE FMCG 9772.71 10277.77 5.17%

S&P BSE Realty Index 2065.41 2188.39 5.95%

Indian Indices:

Index NameAs on

29-Sep-16As on

28-Oct-17%

Change

NIFTY FMCG 24480.80 25814.70 5.45%

NIFTY MEDIA 2983.60 3147.80 5.50%

NIFTY COMMODITIES 3751.20 4109.15 9.54%

NIFTY 100 10143.90 10714.00 5.62%

Nifty 500 Shariah index 2846.11 3002.32 5.49%

NIFTY PSE 4048.80 4385.70 8.32%

NIFTY DIV OPPS 50 2434.45 2588.65 6.33%

NIFTY FINANCE 9939.35 10178.85 2.41%

NIFTY IT 10475.35 10862.05 3.69%

NIFTY REALTY 273.50 290.15 6.09%

Nifty Midcap 50 4687.50 5052.90 7.80%

INDIA VIX 12.49 11.48 -8.09%

NIFTY 100 10143.90 10714.00 5.62%

NIFTY SERV SECTOR 12869.25 13302.35 3.37%

NIFTY 50 9788.60 10323.05 5.46%

NIFTY INFRA 3245.65 3546.75 9.28%

NIFTY PHARMA 9172.60 9650.10 5.21%

NIFTY METAL 3550.30 3945.30 11.13%

NIFTY PSU BANK 3042.10 3820.70 25.59%

NIFTY 500 8600.00 9104.45 5.87%

NIFTY 200 5312.70 5615.30 5.70%

NIFTY CONSUMPTION 4390.65 4682.85 6.66%

NIFTY BANK 24053.00 24839.55 3.27%

NIFTY ENERGY 12772.65 14387.00 12.64%

Global Indices:

Index NameAs on

29-Sep-17As on

28-Oct-17%

Change

Bovespa 74294.00 75975.71 2.26%

Dow Jones 22381.12 23434.19 4.71%

BEL-20 3994.20 4092.16 2.45%

Hang Seng 27518.50 28438.85 3.34%

Nasdaq 6495.96 6701.26 3.16%

Nikkei 225 20312.35 22008.45 8.35%

S&P 500 2519.36 2581.07 2.45%

Straits Times 3212.05 3386.44 5.43%

Taiwan Weighted 10321.99 10709.11 3.75%

All Ordinaries 5742.90 5969.30 3.94%

DisclaimerThe information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document.

This report is intended for a restricted audience and we are not soliciting any action based on it.

For more information on MUTUAL FUNDS call1800 425 8282 or contact your nearest Karvy branch.

Research TeamPF/MFNL/03112017/46

Ankit ChoradiaE-mail : ankit.choradia@karvy.com

Phone : 040 3321 7132

Production: Naga Babu K

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