The basic principles of managing - Open Online Trading...

The basic principles of managing

personal finances are simple - Set

your financial goals, make an

investment plan to achieve them,

take an adequate cover for life,

health and assets, plan your taxes

well in advance, etc. Yet, we see,

many investors find it hard to

implement the simple piece of

advice given to improve their

financial health. This indeed has a

relation to advice we get to

improve our physical health, 'Eat

right and exercise regularly' may

sound simple and obvious, but is

hard to implement. Isn't it?

This is mainly because we tend to

Anup BagchiMD & CEO

ICICI Securities Ltd.

be hostages of habits and routines.The positive side of this nature is that if we do make up our mind

to follow a routine we will stick to it. The other side of this nature is

that it is difficult to change our existing habits. So it all comes to

taking the first step and form new habits.

Say for example, most of us understand that life and health

insurance covers are essential in case of an untoward event.

However, there are certain routines, such as mixing insurance

with investment, relying only on employer-provided health cover,

which deviate us from following the right practices i.e. separating

insurance from investment and taking an independent health

cover. Then, there are also certain individuals, who believe taking

insurance is a waste of money altogether. That's one of the

reasons why insurance penetration (measured as the ratio of

1ICICIdirect Money Manager March 2015

premium to gross domestic product) is very low in India, at 3.1

percent for life insurance and 0.8 percent for general insurance,

as per the latest report. For the sector as a whole, it is 3.9 percent,

as against the world average of 6.3 percent.

Further, it is a well-established fact that growth assets, such as

equity, are best for long-term financial goals, since they tend to

outperform all other assets in the long run and are inflation-and-

tax-efficient. Yet, we see, less than 5 percent of India's population

investing into equity. Majority of investors prefer investing into

debt instruments even for their long-term goals. Real estate is

another preferred option among investors, including wealthy.

Nearly half of the Indian ultra high net-worth individuals (UHNWI)

investment portfolios are allocated in property - the highest

across the globe, according to the Knight Frank Wealth Report

2015.

These routines and practices are not only limited to insurance

and investments, but also to taxes related investments. By now,

most of us understand that taxes should be planned well in

advance, preferably at the start of the new financial year, yet we

tend to keep it for the last moment. Our cover story of this edition

takes you through such routines, which most investors follow,

and ways to adopt better practices.

To reiterate, the basic principles of managing personal finances

remain same and are simple. It is now time to implement them

and secure our future. ICICIdirect is committed to helping you

reach your financial goals. Our message remains the same - 'Keep

investing and stay invested for your life goals'. Through this

magazine and our website www.icicidirect.com we want to make

an earnest attempt to partner with you in setting and achieving

your financial goals. Do walk into any of your Neighbourhood

Financial Superstore and talk to us.

2

Fundamentals of investing owe itself to the academicians well

as to the practitioners. Theories usually are unable to capture

all constraints and practice is unable to implement without

biases or errors. So if indeed there are some rules that have

been accepted both in theory and practice ….they should

simply be embraced. Our cover story of this edition takes you

through some of these fundamental rules that can help you

better manage your finances.

Last month being the Budget month, we also feature a write up

'Budget Review' stating key measures announced and its

impact on economy and various market sectors. We also

highlight key changes w.r.t. to personal finances in our Ask Our

Planner section.

The edition also features an interview with Mr. Nimesh Shah,

MD & CEO, ICICI Prudential Mutual Fund, who shares his views

on budget, economy, markets, sectors, etc., along with advice

for retail investors in the current scenario in terms of their

overall portfolio and asset allocation.

We also offer comprehensive information and analysis on

equity diversified funds, the ever-green option for individuals

to invest for their long-term financial goals. So read on, stay

updated and involved.

Do write in with your feedback at moneymanager@

icicisecurities.com and share your thoughts.

Editor & Publisher : Abhishake Mathur, CFA

Coordinating Editor : Yogita Khatri

Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey

CMEditorial Team : Azeem Ahmad, Nithyakumar VP CFP , Nitin Kunte, Sachin Jain, Sheetal Ashar

ICICIdirect Money Manager March 2015

Your magazine is now also available on www.magzter.com, a digital newsstand.

3

MD Desk.............................................................................................. 1

Editorial................................................................................................2

Contents .............................................................................................. 3

News .................................................................................................. 4

Union Budget 2015 Review.................................................................... 5

Debt Market Round-up & Outlook............................................................ 9

Getting Technical with Dharmesh Shah..................................................12

Derivatives Strategy by Amit Gupta.......................................................14

Stock Ideas: Inox Leisure and M&M......................................................18

Flavour of the Month: Getting Your Finances in Order

Do you follow the right financial practices to manage your

personal finances? Here's why you should….................................26

Tête-à-tête: 'India is the most attractive emerging market in the world’

An interview with Nimesh Shah, MD & CEO, ICICI Prudential

Mutual Fund..................................................................................... 33

Ask Our Planner: Income-tax Benefits Post Budget

Your personal finance queries answered…....................................39

Mutual Fund Analysis: Category – Diversified Equity Funds

An ever-green option for individuals to invest for their long-term

financial goals….............................................................................. 42

Mutual Fund Top Picks

Here we present our research team's top mutual fund

recommendations, across equity and debt categories…..............49

Equity Model Portfolio..........................................................................51

Quiz Time............................................................................................56

Monthly Trends....................................................................................57

Premium Education Programmes Schedule.............................................61


4ICICIdirect Money Manager

Mutual Fund houses want tax sops for pension products on lines of NPS

Mutual fund houses have said that tax benefits for retirement solutions should be provided on the lines of the New Pension System (NPS) as they are planning to enter pension funds sector in a big way. The Budget has made an additional tax break of Rs 50,000 into the NPS investment under section 80CC(D) of the Income Tax Act. Currently, three MF houses, out of a total of 45, are having products in the pension segment and they are UTI MF, Franklin Templeton and the recently launched retirement product by Reliance Mutual Fund.

Courtesy: The Financial Express

India's trade deficit narrowed to a 17-month low of $6.8 billion in February as oil imports declined by over 55 per cent from a month earlier, government data showed. Imports fell an annual 15.66 per cent last month year-on-year to $28.39 billion. Merchandise exports also declined 15.02 per cent year-on-year to $21.55 billion, the data showed

Courtesy: The Hindu Business Line

Trade deficit narrows to $6.8 bn in February, lowest in 17-months

Roughly one of every two rupees in mutual fund equity schemes was invested after December 2012. The average holding period for only around half of them is greater than two years, show data from the Association of Mutual Funds in India (AMFI). In fact, a quarter of them have an average holding period of six months or less. A large proportion of this is said to be on account of investors exiting as the markets have risen, as well as possible commission-led churning.

Courtesy: Business Standard

Equity MF holding period under 2 years for 50% investors

Over 50 million members of EPFO will have to wait for a few months to be able to use the online PF withdrawal facility as the retirement fund body wants the system to be "foolproof". After the launch of this facility, subscribers will be able to apply online for withdrawal of the provident fund which will be transferred directly to their bank accounts. At present, the subscribers who wish to settle their accounts with the Employees' Provident Fund Organisation are required to apply manually for withdrawing PF.

Courtesy: Business Standard

EPFO's online PF withdrawal facility to take more time

March 2015


Budget 2015-16 Review: Making “One India” accomplish durable growth template

March 2015

BUDGET REVIEW

NDA's first full-fledged Budget was balanced between growth & fiscal prudence and saw a paradigm shift in its thinking to bring ideas of social security for the weaker section. It also expanded the savings pool by c rea t ing a fung ib i l i t y m e c h a n i s m t o c o n v e r t physical savings into financial sav ings . I n i t s r e f i ned architecture, the government has realigned its relationship with the states by empowering t h e m t h r o u g h h i g h e r devolution (62% of national revenue), which could be channelised towards on-the-ground spending. Though fiscal roadmap has been s t r e t c h e d b y a y e a r, incremental deficit is being earmarked for infrastructure spending while a concrete mechanism to dissuade black economy is encouraging. Overall, the Budget addresses three strategic pillars of the economy by inter-weaving pro-poor, pro-growth and pro-investors agenda in the same breath.

The government has shifted its strategic focus to the JAM

trinity (Jan Dhan, Aadhar and Mobi le) a long with Jan Suraksha as it plans to introduce universal social security system for all Indians. The JAM trinity would allow the government to transfer social benefits in a leakage-proof, well-targeted and c a s h l e s s m a n n e r. T h e government's commitment t o w a r d s a n o t h e r g a m e changing reform, goods and s e r v i c e s t a x ( G S T ) , i s commendable. The Finance Minister (FM) highlighted that a state-of-the-art indirect tax system would be put in place by April 1, 2016, which could help increase tax-GDP (gross domestic product) (including states) ratio to 20% from 17.5% over two years . Surprisingly, the corporate tax rationalisation roadmap was introduced, which was not anticipated, in general. The government proposed to reduce the corporate tax rate to 25% from 30% over the next four years starting from FY17E. T h e g o v e r n m e n t a l s o simplified the procedure for Indian companies to attract


foreign investment by doing away with the distinction between different types of f o r e i g n i n v e s t m e n t s , especially foreign portfolio investments (FPIs) and foreign direct investments (FDIs), and replaced them with composite caps.

Key measures announced in this Budget:

- On the tax receipt front, the government is targeting 15.2% year-on-year (YoY) growth in gross tax revenues for FY16E and appears reasonable given the increase in indirect taxes (full impact of excise hike for petroleum products and hike in service tax). However, net tax revenues could grow 1% YoY in FY16E given cooperative federalism.

- Incidentally, the government for the first time highlighted its fiscal road map and aims toachieve fiscal deficit target of 3.9% in FY16E; 3.5% in FY17E and 3% in FY18E. Further, the quality of expenditure is also improving with a shift towards cap i ta l expendi ture vs . r e v e n u e e x p e n d i t u r e . Finally,though the government revised its FY16 fiscal deficit

target to 3.9% vs. 3.6% pre p l a n n e d e a r l i e r , t h e i n c r e m e n t a l d e f i c i t i s beingutilised for infrastructure spending.

- A new bi l l would be i n t r o d u c e d t o t a c k l e b e n a m i t r a n s a c t i o n a n d domestic black money. The enforcement agencies would be empowered to attach assets. The government also m a d e q u o t i n g o f PA N mandatory for transaction worth > 1,00,000.

We believe the government's FY16E fiscal deficit target hinges on its disinvestment target of 69,500 crore.

Other key measures:

- Public sector undertakings (PSUs) to undertake capex of 3,17,889 crore, 34% growth YoY.

- Creation of Micro Units Deve lopment Re f inance Agency (MUDRA) Bank, with a corpus of 20,000 crore and credit guarantee corpus of 3,000 crore.

- F o r w a r d M a r k e t s Commission (FMC) to be merged with Securities and Exchange Board of India (SEBI).

`

`

`

``

BUDGET REVIEW


- Increase the present rate of service tax plus education cess

from 12.36% to a consolidated rate of 14%

BUDGET REVIEW

Containing deficit at 3.9% with enhanced fiscal federalism

Particulars FY14A FY15REYoY (%) FY16BE YoY (%) FY16IEYoY (%) Comments

Gross Tax

Revenues

1138733 1251392 9.9 1449491 15.8 1442166 15.2 We anticipate gross tax revenues will grow 15.2% YoY on

account of full impact of hike for excise duty on petroleum

products & hike in service tax

Less: State

Shares & Others

322,880 342,928 6.2 524,870 53.1 524,870 53 States share has been hiked to 42% from 32% in line with 14th

Finance Comm. recommendation

Net Tax revenue 815853 908464 11.4 919843 1.3 917296 1.0

Non Tax Revenues

Dividend 90435 88781 -1.8 100651 13.4 100651 13.4

Dividend includes ~ 64477 crore in FY16 vs. 60358 crore in ` `

FY15 from RBI

Economic services 67657 83730 23.8 74017 -11.6 75000 (10.4)

The budgeted figure includes receipt of 42865 crore from `

spectrum auction (telecom), which is achievable if additional

3G spectrum is auctioned

Others 40778 45321 11.1 47065 3.8 47065 3.8

Total 1014723 1126296 11.0 1141576 1.4 1140012 1.2

Capital Receipts

Recovery of Loans 12497 10886 -12.9 10753 -1.2 10753 (1.2)

Disinvestments 29368 31350 6.7 69500 121.7 70000 123.3

With huge disinvestment pipeline such as ONGC, IOC, Balco,

HZL along with IPO of HAL & RINL & monetisation of SUUTI,

we believe FY16 disinvestment target is achievable

Total 41865 42236 0.9 80253 90.0 80753 91.2 Total Receipts 1056588 1168532 10.6 1221829 4.6 1220765 4.5

Non plan Expenditure

Subsidies

Fertilizer 72970 70967 -2.7 72969 2.8 72969 2.8

Food 115000 122676 6.7 124419 1.4 125000 1.9

Food Security Bill allocation to remain higher as it is yet to be

rolled out across all states

Petroleum 63427 60270 -5.0 30000 -50.2 30000 (50.2)

Petroleum subsidy also includes efficiency benefits from

implementation of DBT mechanism in LPG & kerosense. Any

delay to check leakages would lead to slippage in subsidies

to ~ 39000 crore assuming crude oil at US$60 per barrel`

Other subsidies 9260 12779 38.0 16423 28.5 16423 28.5

Other expenditure 845462 946532 12.0 1068389 12.9 1068389 12.9

Total 1106120 1213224 9.7 1312200 8.2 1312781 8.2

Plan Expenditure 453327 467934 3.2 465277 -0.6 465000 (0.6) Though plan expenditure is kept flat, the quality of expenditure

has improved with higher allocation towards capital expenditure

Total Expenditure 1559447 1681158 7.8 1777477 5.7 1777781 5.7

Fiscal deficit 502859 512626 1.9 555648 8.4 557016 8.7

GDP estimates 1134505612653762 11.5 14108945 11.5 14108945 -

Fiscal deficit as %

of GDP

4.4% 4.1% NA 3.9% NA 3.9% NA Fiscal deficit is expected to come down by 20 bps despite

higher state revenues sharing & focus towards development

expenditure

Government Revenue & Expenditure

Infra Push: Key proposals to execute planned capex

Significant focus has been given to budgeted plan capital expenditure, which increased 34% YoY to 1,35,257 crore in (FY16-BE) whereas budgeted plan revenue expenditure has been reduced by 10% YoY to

`

`

3,30,020 crore in FY16BE. Some key (mega investment) proposals announced are:

- Proposal for completing 1 lakh km of roads currently under construction plus sanctioning and building another 1 lakh km of road is of topmost priority.


- Proposal to launch five Ultra Mega Power Projects (UMPPs) with a capital expenditure (capex) of 1,00,000 crore subject to receipt of key clearances.

`

- Proposa l to enhance renewable energy capacity of 175 GW (solar – 100 GW, wind – 60 GW, biomass – 10 GW and 5 GW small hydro) from current level of ~40 GW

Sectoral Impact: Budget 2015-16Measure Sectors ImpactedImpact Key stocksEntertainment sector brought under the service tax net Entertainment Negative PVR, Inox Leisure, Eros, Dish TV, Hathway

Clean energy cess on coal from 100/tonne to ` `

200/tonne

Metals and Mining /

Power

Negative / Neutral Hindalco, Sesa Sterlite / NTPC, Tata power, CESC

Proposal to launch 5 UMPP subject to receipt of key

clearances

Power/Capital goods Positive Bhel, L&T, Thermax, NTPC, Tata Power

Proposal to set up 1,75,000 MW renewable capacity Power/Capital goods Positive Tata Power, NTPC, Power Grid, Kalpataru

Reduction of excise duty on manufacture of footwear from

12% to 6% (on retail price exceeding 1000/pair)`

Retail Positive Bata India, Liberty Shoes, Relaxo Footwear

Comprehensive Bankruptcy Code to be brought in FY15-16 BFSI Positive PNB, BOB

NBFCs to be considered ‘Financial Institution’ for

SARFAESI Act

NBFCs Positive HDFC, IDFC

Forward Markets commission to be merged with Sebi BFSI Positive Kotak Mahindra Bank, MCX

Increase in deduction limit for health insurance premium BFSI Positive Reliance Capital, Max India and HDFC Ltd

Distinction between different types of foreign investments,

especially between FPI & FDI has been done away with

BFSI Positive Axis bank, Indusind Bank

Government to infuse 7940 crore in PSU banks in FY16` BFSI Negative PNB, BoI, Syndicate Bank, Dena Bank

Increase in credit to agricultural sector at 8.5 lakh crore` Agriculture Positive Rallis India, EPC Industrie, KSB Pumps

Allocation of 5300 crore for various irrigation schemes ` Agriculture Positive EPC Industrie, KSB Pumps

Excise increase in below 65 mm cigarettes by 25% &

above 65 mm by 15%

FMCG Negative ITC, VST industries

Increase in excise duty from 12% to 18% on plastic

products (polymers)

Consumer Durable Negative Wimplast

Completing 1 lakh km of roads currently under

construction and sanctioning and building another 1 lakh

km. Increased outlays on roads by 14,031 crore `

Infrastructure Positive Ashoka Buildcon, IRB Infrastructure, Simplex

Infrastruture & NCC

Increase in road cess from 2 per litre to 4 per litre on ` `

petrol and diesel


Infrastruture, NCC & L&T

Establishment of National Investment and Infrastructure

Fund (NIIF) with an initial annual flow of 20,000 crore`


Infrastruture, NCC & L&T

Tax free infrastructure bonds for projects in rail, road and

irrigation sectors

Infrastructure Positive Simplex Infrastructure, NCC & L&T

Rationalisation of capital gains regime for sponsors and

tax pass through status for Infrastructure investment

Trusts (InvITs)

Infrastructure Positive Ashoka Buildcon & IRB Infrastructure

Rationalisation of capital gains regime for sponsors and

tax pass through status for REITs

Real Estate Positive Oberoi Realty

Government to increase visa on arrival facilities to 150

countries from 43 at present. Further, the government to

invest in 22 world heritage sites to promote tourism

Hotels Positive IHCL, Cox&Kings, EIH

Government committed to rationalise subsidies Oil & Gas Positive Oil India, HPCL, IOC, Gail

Basic custom duty on Metallurgical coke increase from

2.5% to 5%

Metals and Mining Negative Kalyani Steel

We are bullish on domestic-o r i e n t e d s e c t o r s l i k e automobiles, cement, capital goods, and banks. Defensive sectors like FMCG, pharmaceuticals and IT could

perform in line with broader markets. We maintain our December 2015 Sensex and Nifty target of 32,500 and 9750, respectively.

BUDGET REVIEW

9ICICIdirect Money Manager February 2015

DEBT MARKET ROUND UP& OUTLOOK

-

Surprise interest rate cut; more cuts ahead

In February, benchmarks yields

for the whole month stayed in

the range of 7.70-7.73% as

market participants awaited

the Union Budget 2015-16

before taking any directional

view. The month started with

the Reserve Bank of India's

(RBI's) sixth bimonthly review

wherein it kept interest rates

unchanged, in l ine with

expectations. However, the

statutory liquidity ratio (SLR)

was reduced by 50 basis points

(bps) while the policy tone was

construed as less dovish than

anticipated by markets. The

January consumer price

inflation (CPI) on the revised

2011-12 base came in at

5.11%, also in line with

expectations. The Union

B u d g e t 2 0 1 5 - 1 6 w a s

announced on the last day of

Government Securities (G-Sec) Yield March 5 January 31 Change (bps)

the month, post which yields

moved up marginally to 7.76-

7.78%. However, in a surprise

move on March 4, 2015, the

RBI pre-empted a repo rate cut

of another 25 bps from 7.75%

to 7.5% outside the policy

review cycle. Two things

prompted the bank to act “the

still weak state of certain

sectors of the economy as well

as the global trend towards

easing suggests that any policy

action should be anticipatory

once sufficient data support

the policy stance. Second, with

the release of the agreement

on the monetary policy

framework, it is appropriate for

the Reserve Bank to offer

guidance on how it will

implement the mandate”.

Yields again retracted to

around 7.70%.

10-year 7.72 7.69 2.8

5-year 7.78 7.67 10.8

3-year 7.79 7.98 -19.5

1-year 7.91 7.96 -4.9



-

Corporate Bond Yields March 5 January 31 Change (bps)

AAA 10-year 8.36 8.33 3

AAA 5-year 8.40 8.38 2

AAA 3-year 8.46 8.41 5

AAA 1-year 8.57 8.47 10

AA 10-year 8.91 8.93 -2

AA 5-year 9.15 9.00 15

AA 3-year 8.90 9.06 -16

AA 1-year 9.06 9.13 -7

Credit Spread March 6 January 31

G sec - AAA 10-year 65 64




On corporate bonds, the RBI restricted foreign institutional investor (FII) investment in less than three year maturity bond, which pushed up yields at the shorter tenure. The investment limit in corporate bonds is $51 bi l l ion. The FI I l imit in government bond has already been exhausted.

The liquidity position remains comfortable as seen in the drop in ca l l and CBLO (Collateralized Borrowing and Lending Obligation) rates to 7.50% and 6.45%,respectively. Even banks on an average borrowed 4,582 crore on a daily basis against 12,575 crore on average borrowing in the previous month.

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Money Market Rates March 5 January 31 Change (bps)

Call 7.50 7.75 -25

CBLO 6.45 7.72 -127.09

Certificate of Deposit (CD) Rates March 5 January 31 Change (bps)

12 Months 8.47 8.59 -12

6 Months 8.47 8.53 -6

3 Months 8.47 8.36 11

1 Month 8.47 8.18 29



-

Commercial Paper (CP) Rates March 5 January 31 Change 12 Months 8.91 8.97 -5.75

6 Months 8.94 8.86 7.75

3 Months 9.03 8.80 22.5

1 Month 9.20 8.31 89

Volume Data (Average for the month – Rs. Crore) February2015 January2015 Change

Call Volume 13410.6 16913.9 -3503.3

CBLO Volume 76258.3 71086.5 5171.8

LAF Volume 4582.5 12575 -7992.5

Data source for all the above tables: Bloomberg

Outlook

We believe the odds remain in favour of the government secur i t ies (G -Sec) y ie ld trending down over the next one or two years. The front loaded rate cuts by the RBI can push overall interest rates down depending on how soon banks transit it into the system by re-pricing their assets and liabilities lower.

The central government has signed a memorandum with the RBI setting out a clear inflation objective to bring the inflation rate to the mid-point of the band of 4 +/- 2%. CPI, as per our assessment, should average close to 5% for Fy16 (on assumption of normal m o n s o o n a n d s t a b l e currency). Hence, it should likely stay on the intended path. This creates room for the

RBI to cut rates by another 50 bps to earn a real return of 2%.

On the supply front, the Budget has pegged the market borrowing for FY16 at 6 lakh crore on a gross basis and 4.56 lakh crore on a net basis. Both the gross and net market borrowings were close to m a r k e t e x p e c t a t i o n s . Borrowings related concern is expected to come down, given the government's commitment towards reducing the fiscal deficit to 3% of GDP (gross domestic product) by Fy17.

Investors may look to lock in the current close to 9%-10% accruals available on corporate bonds via investing in short-term credit opportunities funds. While interest rates may come down, returns in long bond and gilt funds returns may moderate compared to last year.

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ICICIdirect Money Manager

TECHNICAL OUTLOOK

Bulls rejuvenated, Sensex to scale 31,000

March 2015

Domestic equity benchmarks were in consolidation mode throughout February as the markets digested the strong gains accrued in January 2015. Structurally, this is construed as a positive trait as the market c o r r e c t s t h e e x c e s s e s developed after a strong rise by taking a step back before making the next forward leap.

We believe the markets are f i rmly poised af ter the February consolidation and offer a fresh entry opportunity to ride the next up move towards 31,000, 9,370 levels (Sensex, Nifty) in the coming month. The potential higher bottom at February 2014 low is placed in the vicinity of key value area of 27,950, 8,400, which are the short-term floors for the benchmarks.

The corrective dip in the first half of February retraced the January 2015 rally (8,065 to

8,996) by nearly 61.8% placed at 27,950, 8,420 levels. The previous two correct ive declines during September and December 2014 also bottomed out precisely at the 61.8% retracement of their respec t ive ra l l i es . Th is tendency of bottoming out at t h e g o l d e n F i b o n a c c i retracement of the major rallies highlights the overall positive price structure and augurs well for the longevity of the larger uptrend.

Since February 2014, the benchmarks have followed a peculiar price-wise trait as each major up leg has measured average 3,000 p o i n t s o n t h e S e n s e x correspondingly 900 points on the Nifty. We believe the benchmarks will maintain this price-wise symmetry and the current up move starting February 2014 low of 28,044, 8,470 will lead the benchmarks towards 31,000, 9,370 levels, respectively, in the coming month.

12


BSE Sensex – Monthly Candlestick Chart

March 201513

The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.

In the entire up move since February 2014, the index has followed a peculiar price wise tendency as each major up-leg has measured average 3000 points. This highlights a well structured uptrend and firm grip of the bulls from medium term perspective

TECHNICAL OUTLOOK

The 14 week RSI highlights an established uptrend as

the indicator continues to oscillate in the bull market band of 55 to 75 readings since February 2014 till date

2976 points

2911 points

3062 points

3098 points

3068 points

Price equality (3000 pts) @ 31000 levels

61.8%

Ø The index has formed a potential higher bottom precisely near 61.8% retracement of the January rally during February correction

Ø We expect the index to maintain the price wise trait of last one year where by each major up move has measured average 3000 points and the current up move from February 2015 low will lead the index towards 31000 levels in the coming months

Source: Bloomberg, ICICIdirect.com Research


DERIVATIVES STRATEGY

Reiterate last Monthly Derivatives target of 9300/9500 for Nifty.Key support placed at 8840

Amit Gupta

Head - Derivatives Research,ICICI Securities

March 201514

February series closes with loss of

3% as participants remain cautious

ahead of Budget

• Ahead of the Union Budget,

the Nifty and broader markets

t r a d e d w i t h a a u t i o u s

undertone during February.

For the series, the Nifty was

down 3%.

• A key reason for the decline

was the absence of major

participants from the markets.

After pulling the market over

9% in January, FIIs took a

breather in February as they

waited for the government to

deliver in the Union Budget.

Sectoral focus seems to be on

private banking, IT & pharma in

coming month

• During last month, the oil &

gas , bank ing and au to

remained negative whereas

strong buying was seen in

technology, helping the Nifty to

arrest a more severe decline.

Support was also lent by

cement and capital goods on

hopes of a strong push to infra

spending.

• With the Union Budget now

announced, the focus is likely

to revolve around key budget

beneficiaries. The banking and

finance space have been key

beneficiaries from the Budget.

These sectors had also seen

short build-up in the February

series. Later, they witnessed

high rollover of short positions.

Thus, the banking and finance

space could continue on a

pullback rally on the back of

short covering.

Nifty expiry returns in trailing 12 months

-3%

9%

-4%

4%

-1%

3%3%4%

6%

3%

6%

3%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Jan'1

5

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar


Sectoral performance in Feb :a mixed bag

Nifty: We reiterate last target of

9300/9500 for Nifty with key

support placed at 8840

• In March options build-up,

the highest Call build up was

seen at 9000 Call of 5.4 million

s h a r e s . C u r r e n t l y, C a l l

additions are seen in the 9400

Call strike as well. The open

interest in this strike is well

over 3.5 million shares. Thus, if

the Nifty is able to close above

9000, upsides in the Nifty could

continue towards 9400- 9500.

• Among Put options, the

highest OI of over 4 million

shares is at 8500 Put. However,

recent additions in Put options

are focused on 8800 and

8700 Put options , both of

which have OI of over 3 million

shares each. Hence, declines

on the Nifty are likely to get

arrested near 8840.

• As explained later in the

presentation, the Nifty has

given average positive return

of 6.5% in 30 days post the

Budget. With that calculation,

the Nifty is likely to hit 9400 in

the March series.

• The global liquidity situation

is also improving further. ECB

is expected to start its QE

programme this month along

with existing Bank of Japan

stimulus, China rate cut. Thus,

the liquidity situation bodes

well for Indian equities, as the

Indian economy is currently

one of the fastest growing ones

and is likely to attract a chunk of

emerging market money

allocation.

• Nifty +/- 2 Sigma band

suggests if the Nifty is able to

surpass mean + 2 sigma level

of 9035, upsides could

continue till 9400 as the sigma

b a n d w o u l d a g a i n s e e

expansion.


-5-3-11357

Technology

Metal

Capital Goods

Oil & Gas

Bank

Auto

% monthly return


Nifty options build-up in March series …

Nifty 2 sigma Band : sigma expansion likely

Bank Nifty: Likely to move towards

highest Call base of 21000 with

support near 19300

• The Bank Nifty declined over

10% in the first half of the

February series as FIIs created

short positions in the banking

index post a weak set of

numbers from some index

heavyweights. However, as the

index has recovered above the

last month’s VWAP of 19300,

we believe upsides in the

banking index may continue

till the previous highs and

highest Call base of 21000.

• Bank Nifty/Nifty price ratio

has reverted from 2.13 levels,

which was very close to the last

four-year breakout of 2.11.

Hence, the Bank Nifty should

outperform the Nifty from here

onwards. That is why it seems

the uptrend, which has started

now in private banking is likely

to continue in the coming

weeks.

• The immediate support for

the banking index is placed at

19300. The bias should remain

positive in the index above this

level. On the higher side, it

seems to be heading towards

21000.

• The noticeable Put base of

the Bank Nifty is also placed

near 19000. The decline in

implied volatility along with

increase in open interest at this

strike suggests Put writing at

this strike.

• The maximum short build up

was seen in Bank Nifty futures

in the February series to the

tune of 23%. Hence, if the

index holds above 19300, short

covering may eventually pan

out in it. In addition, the VWAP

of the banking index in the last

series was also placed near

19300, hence strengthening

support at this level for the

banking index.


0

2

4

6

8

10

12

8500

8600

8700

8800

8900

9000

9100

9200

9300

9400

9500

OI i

n M

illio

n S

hare

s

Call OI Put OI

5700

6200

6700

7200

7700

8200

8700

9200

Mar

-14

Apr

-14

May

-14

Jun-

14

Jul-1

4

Aug

-14

Sep

-14

Oct

-14

Nov

-14

Dec

-14

Jan-

15

Feb-

15

Close UBB(2) BollMA (100) on Close LBB(2)



Bank Nifty options build-up for March series

India VIX: Likely to move lower towards 14 post major event of Union Budget

• With the Union Budget being announced, long Vega position are getting closed. Hence, volatility is sliding down. Options writing has also picked up after the Budget supporting the volati l i ty decline. With the current PCR OI of 0.9, the PCR OI is likely to move up on the back of increased Put writing, which

will further push volatility lower.

• In today’s session, India VIX has come down below the support level of 16, which is its 100 & 200 DMA level. We believe this level is now likely to act as a resistance and India VIX is likely to trade in the range of 13-16.

• Ke w n e w s f l o w s o n domest ic fronts include inflation in the middle of March. Looking at the trend, there seems to be no major surprises around this.Globally as well, with the tart of ECB QE, volatility is likely to remain subdued. RBI action on rates or Greece debt turmoil flaring up would be key events that could push volatility higher.

India VIX likely to move towards lower towards 14, as the key event is out…

The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.

0

0.1

0.2

0.3

0.4

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0.7

0.8

1900

0

1920

0

1940

0

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1980

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2020

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2040

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2060

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18

STOCK IDEAS


Inox: A play on the consumerism story

Company BackgroundI n o x Le i s u r e L t d . w a s incorporated as a public limited company on November 9, 1999. It is a part of the Inox group that has a rich lineage of successful businesses such as Inox Wind, Inox Air Products, etc. Inox Leisure operates as a subsidiary of Gujarat Fluorochemicals Ltd. It started as a four screen multiplex in Pune and is now a force to reckon within the Indian multiplex space with ~361 screens spread across 92 properties in 50 cities. The company is the second largest player in the multiplex space with a multiplex screen market share of ~21%. It is behind PVR, which has about 463 screens in its portfolio and a multiplex screen market share of about 27.2%. Apart from the organic expansion, the company has also grown inorganically by acquiring 89 Cinemas, Fame Cinemas and Satyam Cineplexes over the period. The Satyam acquisition has been a strategic move for the

company cement ing i ts position in the northern belt of the country and also helping it bridge the gap with the No. 1 player. Inox has a strong presence in the southern and eastern states with about 82 and 70 screens, respectively ( p r e - S a t y a m ) . T h e management intends to add about 181 screens by FY17E end, thereby reaching a screen count of about 546 screens. Factoring in certain delays, we have incorporated addition of 134 screens over the next two years.

The Indian film industry is expected to grow at 12.3% CAGR from 13,800 crore to 21,980 crore in FY14-18E. Increasing screen penetration and an exponential increase in middle class consumption spending (to $3.2 trillion by 2025) may act as catalysts. Inox would emerge as a clear beneficiary of this consumerism trend. It is expected to post revenue

Investment Rationale

Consumerism to drive film industry, Inox set to emerge as beneficiary

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CAGR of 19.8% over FY14-17E to 1,312.2 crore from 762.8 crore.

Cinema is the most preferred and cheapest source of out-of-home entertainment in India, with Average Ticket Price (ATP) at $0.7, among the lowest in the wor ld . Wi th r i s ing investment in content and a b e t t e r m o v i e w a t c h i n g e x p e r i e n c e , m u l t i p l e x penetration is bound to increase. Inox as the second largest exhibitor is expected to see a 17.2% expansion in screens to 499 by FY17 from 310 in FY14, and 6.5% CAGR in ATP to 188.

Multiplex operators generally follow an asset-light model. However, of the total 94 locations, Inox has about seven owned properties in prime locations spread across 4 lakh sq ft in Pune, Mumbai, Gujarat, Jaipur, etc. The owned nature of properties is also helping in saving lease rentals.

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ATP to soar to new heights; cheapest source of out-of-home entertainment

Potential value-unlocking from owned properties

However, according to the management, the current m a r k e t v a l u e o f t h e s e properties would be closer to 400 crore while the book value is about Rs. 150 crore. A sale-and- leaseback o f these properties could free-up funds to repay debt, resulting in RoCE expansion, though it will be EBITDA margin dilutive (in the form of higher rentals). However, the management has indicated that it has no such plans in the foreseeable future.

With limited competition, rapid screen rollout, rising footfalls and increasing investment in content, Inox's PAT is expected to grow more than double by FY17E. Though the stock has rallied ~69% in the last year, we believe there is room for a further re-rating. Using sum-of-the-parts (SOTP), we value the ordinary shares at 22x FY17E EPS and treasury shares at 50% discount to current price to arrive at a target price of Rs. 240/share, implying an upside of 33%. We initiate coverage on Inox with BUY recommendation.

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Valuations to catch up with fundamentals; initiate with BUY rating

STOCK IDEAS

STOCK IDEAS


Key Financials

Valuations Summary

Stock Data

Net sales ( crore) 762.8 920.8 1,080 1,312.2

EBITDA ( crore) 122 138.6 172.2 242.1

Net profit ( crore) 36.9 20.9 41.2 88.9

EPS ( ) 4.8 2.4 4.8 10.4

FY14 FY15E FY16E FY17E

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P/E (x) 37.3 74 37.5 17.4

Target P/E (x) 49.5 98.4 49.9 23.1

EV / EBITDA (x) 15.9 15 12.2 8.5

P/BV (x) 3.5 2.7 2.5 2.2

RoNW (%) 9.4 3.7 6.8 12.8

RoCE (%) 11.6 5.8 8 13


Market capitalization ( crore) 1,736.2

Total debt (FY14) ( crore) 223.7

Cash and investments (FY14) ( crore) 19.3

Enterprise value (EV) ( crore) 1,940.6

52-week High/Low ( ) 191 / 84

Equity capital ( crore) 96.2

Face value ( ) 10

MF holding (%) 5.9

FII holding (%) 14

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STOCK IDEAS

Key Risks

Dependency on third-party content

Higher than expected rate of GST -

Double edged sword

Though the planning stage in

India lasts 18-24 months, the

implementation stage is just

about six months, leading to

severe cost overruns. Just as

stadiums would be empty if a

sporting match is not thrilling

enough, cinema halls would be

very scantily occupied if the

movie fails to generate viewer

interest. Exhibitors are totally

dependent on third-party

content. In the event that

movies do not fare well at the

box office, footfalls decline

and, hence, occupancies

reduce. A larger number of

misses than hits at the box

office could impact our footfall

assumptions. In such an

eventuality, the topline could

be impacted.

The media industry is plagued

by issues of high taxation as

well as double taxation. Taxes

differ from state to state with

some states like Maharashtra,

Bihar and Karnataka having

taxes in excess of 45%. Inox

pays an average entertainment

tax of ~18-19%, service taxes

on property rentals and value

added tax (VAT) of food and

beverage (F&B) revenues. This

takes a toll on its margins.

Under the goods and services

tax (GST) regime, companies

would be able to get advantage

of input tax credit. According

to management, the neutral tax

rate for Inox would be in the

range of 22-23%. If the GST

rate is fixed above this, it could

impact margins for Inox. Vice

versa, in case the rate is fixed at

a lower end, the company's

margins could expand to that

e x t e n t ( a f t e r p a y i n g

distribution charges which are

paid on net collection). We

have not factored this in our

estimates.


(CAGR: Compounded annual growth rate; RoCE: Return on capital employed;

EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS:

Earnings per share; P/E: Price-to-earnings; EV: Enterprise value; P/BV: Price-to-

book value; RoNW: Return on net worth; MF: Mutual Funds; FII: Foreign

Institutional Investors)


M&M: Launches major trigger for growth!

Company BackgroundMahindra and Mahindra

(M&M) manufactures utility

vehicles, light commercial

vehicles and tractors in India.

The company has also made a

foray into the medium and

heavy commercial vehicles

(MHCV) segment. M&M is the

market leader in both the utility

vehicle and tractor segments

with a dominant share in the

segment. M&M has diversified

into many new businesses and

become a US$15.9-billion

multinational group with more

than 1,55,000 employees in

over 100 countries across the

globe with operations in

aerospace , a f termarket ,

agribusiness, automotive,

components, construction

e q u i p m e n t , c o n s u l t i n g

services, defence, energy,

farm equipment, finance &

i n s u r a n c e , i n d u s t r i a l

equ ipment , in fo rmat ion

technology, le isure and

hospitality, logistics, real

es ta te , re ta i l , and two

wheelers.

Investment Rationale

New product launches to drive

volumes in market share FY16E-17E

The M&M util ity vehicle

portfolio has seen significant

market share erosion (~18%

since FY12 down to ~38%) in

the past years owing to lack of

a new appealing offering in the

compact sports utility vehicle

(SUV) segment. New entrants

like Duster and Ecosport have

gained customer mind space.

However, M&M has clearly

highlighted that FY16E would

be an aggressive launch year

with Q1 to Q3 witnessing three

new product launches (two

consumer/one commercial)

along with three new refreshes

on two brand-new platforms.

The compact SUV segment is

expected to grow faster as

customers take to it as

a l t e r n a t e t o p r e m i u m

hatchbacks. We expect M&M

to regain market share as

volumes improve. We also

e x p e c t p r i c i n g t o b e

competitive (signalled by small

engine sizes to claim excise

STOCK IDEAS


benefits) vis-à-vis larger global

peers to provide better value

proposition.

With a strong margin profile

and relatively low capital

expenditure (capex) & product

development expenses, the

farm equipment sector (FES)

segment is a cash cow

business in M&M's portfolio.

W e b e l i e v e , a s f a r m

mechanisation levels increase

and global food grain glut

reduces coupled with a better

monsoon season, the FES

segment could witness a fast

turnaround in volumes by

H2FY16E. M&M has been

outpacing the industry. Its

market share has been on the

uptrend and currently stands at

~44% (highest in three years).

With the launch of new

products/platform like Arjun

Nuvo being well accepted,

overall realisations and gross

margins would remain on an

uptrend.

FES segment to remain cash cow...

Lot depends on monsoons

S u b s i d i a r y / i n v e s t m e n t s

performance remains impressive

Along with strength of the core

business, the performance of

s u b s i d i a r i e s l i k e Te c h

Mahindra has continued to

remain impressive across

business areas like financials,

in format ion technology,

infrastructure, hospitality, etc.

In addition, its automotive

subsidiary in South Korea,

SsangYong Motors, has also

recently launched its first new

p r o d u c t ( T i v o l i ) s i n c e

acquis i t ion (FY11) . The

s y n e r g y b e n e f i t s w i t h

SsangYong like platform

s h a r i n g , r e s e a r c h &

development (R&D), common

sourcing, etc. are likely to bring

benefits to M&M's in the

c o m i n g p e r i o d s . M & M

conglomerate approach and

investment nature led them to

unlock deep value (MESL,

Mahindra CIE being cases in

p o i n t ) . T h i s h i g h l i g h t s

m a n a g e m e n t ' s h o l i s t i c

approach to value creation.

M&M has been one of the

worst hit incumbent original

equipment manufacturers

Valuations factoring in lot of

negatives… Time to be contrarian

STOCK IDEAS


STOCK IDEAS

( O E M s ) i n F Y 1 5 E w i t h

problems ranging from loss of

m a r k e t s h a r e o n t h e

automotive side in H1 to the

sudden dec l ine in FES

business in H2. However, the

ability to sustain profitability at

a respectable level amid all the

a f o r e s a i d p r e s s u r e s

demonstrates business and

management strength. We

believe currently the risk-

r e w a r d b e t w e e n

positive/negative is loaded in

favour of the former. Core

valuations (~5.6x EV/EBITDA

FY17E, ~11x FY17E EPS) are

alluring. We value the stock on

a sum-of-the-parts (SOTP)

basis , valuing the core

business at 7.5x EV/EBITDA

F Y 1 7 E t o 8 3 0 a n d

subsidiaries at 627 to arrive at

an SOTP target price of 1,457.

We recommend a BUY on the

stock.

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Key Financials

Valuations Summary

Net sales ( crore) 40,509 39,351 44,277 50,499

EBITDA ( crore) 4,618 4,386 5,712 7,124

Net profit ( crore) 3,655 3,486 4,001 4,949

EPS ( ) 62.3 59.1 67.8 83.8


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P/E (x) 20.6 21.8 19 15.3

Core EV/EBITDA (x) 8.6 9.1 7 5.6

Target Core EV/EBITDA (x) 11.6 12.2 9.4 7.5

P/BV (x) 4.5 3.9 3.4 3

RoNW (%) 21.8 18.1 18.2 19.3

RoCE (%) 18.3 14.9 18.2 20.7



STOCK IDEAS

Stock Data

Market capitalization ( crore) 75,856

Total debt (FY14) ( crore) 3,545

Cash and investments (FY14) ( crore) 4,670

EV ( crore) 74,731

52-week High/Low ( ) 1,434/8,40

Equity capital ( crore) 295.2

Face value ( ) 5

DII holding (%) 17.7

FII holding (%) 38.6

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(EV: Enterprise value; EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS: Earnings per share; P/E: Price-to-earnings; P/BV: Price-to-book value; RoNW: Return on net worth; RoCE: Return on capital employed; DII: Domestic Institutional Investors; FII: Foreign Institutional Investors)

Key RiskFailure of expected success in

product launches M&M is undertaking multiple

platforms and numerous

product launches (3 new

variants) in FY16E and then

subsequently in FY17E. The

expectation is that new

products would be able to aid

M&M in clawing back lost

market share in the Utility

vehicle space. This key

expectation is one of the major

reasons for the contrarian

approach towards the stock

and any failures on the product

demand or quality or customer

feedback could be major

negative in terms of valuations

and sentiment for the stock.


FLAVOUR OF THE MONTH

Getting your finances in order

March 2015

Take a moment and think about your current financial practices. Do you

mix insurance with investment? Do you rely only on your employer-

provided health cover? Do you invest too conservatively even for your

long-term financial goals? It is important to assess your current financial

practices and think whether these are right. It is only then you will be able

to address any issues that are there. We find a common set of practices

among investors, which are not prudent to follow. One misstep alone may

not harm us, but taken together over time, these can cost us huge in the

long run. Ahead of the new financial year, we offer a look at these common

practices, and ways to stop them. Read on.

1. Considering insurance as a form of investment

Most of us look at insurance as a form of investment. We buy life insurance policies in an anticipation to get something in return or at least the premium that we have paid. Which is why, majority of investors, consider buying term plans with ' return ofpremium' feature than 'pure' term plans, which do not provide anything in return in c a s e o f s u r v i v a l o f a policyholder at the end of the term.

However, it is not a good practice to mix insurance with investment. The core purpose of insurance is to provide protection. Buying a pure term plan for protection purpose

and investing separately for goals helps. Let's understand this with an example:

For a 30-year old healthy male, for a sum assured of Rs. 25 lakh and a term of 25 years, a p p r o x i m a t e p r e m i u m charged in a 'pure' term plan is 4,300 p.a., whereas for a term

plan with 'return of premium' feature, it is around 11,300 p.a. This means, the actual premium for covering the risk of death is only 4,300 p.a., and in a 'return of premium' term plan, the remaining 7,000 p.a. is utilized to invest a n d r e c o v e r t h e t o t a l premiums paid of 2,82,500 (11,300 x 25 years). So, if you look at the return generated from this, it is around 3.50% p.a. only (For an investment of

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March 2015

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7,000 p.a., to grow at 2,82,500, return required is only 3.50% p.a.)

Instead, if you take a pure term plan for 4,300 p.a. and the balance 7,000 p.a. invest into, say, equity mutual funds, you will be able to accumulate 10.45 lakh, assuming a return of 12% p.a.

Most of the salaried people rely only on the group health insurance cover provided by their employers, and do not take the separate cover. For instance, last year, the Insurance Regulatory and Development Authority (IRDA) had estimated that in India, only 2.73 crore people had an i n d i v i d u a l c o v e r f o r themselves.

“Among our customers who have so far opted for fee-based financial planning, around 67% of the customers did not have a separate health insurance cover at the time of enrolling f o r t h e s e r v i c e , ” s a y s Nithyakumar VP, Financial Planner with ICICIdirect Financial Planning Services.

2. Relying only on employer-provided health cover

Relying only on group health insurance cover of your employer is not advisable for the following reasons: Of late, some employers have asked employees to bear a part of the premium; some have started covering only employee and immediate family, not parents. Further, when one shifts job, there is no cover during the break period.

A new employer may or may not provide a health cover. An existing employer could also withdraw the cover anytime. Further, the amount of cover provided by your employer may not be sufficient.

Last but not the least, when one re l ies only on the employer-provided cover, and decides to take a separate cover later i.e. closer to retirement, the premium is very high, one may have to u n d e r g o a m e d i c a l examination and may not get the cover if he or she has any critical disease.

There is also a waiting period for pre-existing diseases to be covered. Hence, it is important to take a separate health cover,



March 2015

early in life, to avoid these circumstances.

There is another report ' A a r o g y a B h a r a t 2 0 1 5 ' , released by NATHEALTH, which shows that 70% Indians don't have health insurance. Remember, medical expenses can quickly wipe out savings and investments and thus jeopard i ze our fami ly ' s financial well-being. So, don't let health insurance take a backseat, procure it today and maintain it regularly to lead a hassle-free life.

This is another common practice among investors, to invest a lump sum amount in public provident fund (PPF) account, towards the end of every financial year in order to save tax.

This is mainly because most of us are not aware of the minute details of how a PPF account works, and look at it as just another instrument for saving taxes or accumulating a corpus for future requirement.

Instead of contributing at the

3. Investing a lump sum in PPF towards the end of financial year for saving tax

last moment, if you try and contribute to your PPF account at the start of every financial year, it can make a good difference to your accumulated corpus. Let's understand this with an example:

Say you invest 1 lakh p.a. into PPF for next 15 years. If this investment is made at the end of every financial year, you will be accumulating 28.23 lakh at the end of 15 years, assuming an average return of 8.5% p.a. But, if you invest at the start of every financial year, you will be able to accumulate 30.63 lakh at the same rate of return, giving you an additional amount of 2.40 lakh in the corpus.

The habit of investing in post of f ice (PO) schemes or traditional fixed deposits (Fds) for long- term goals such as child's higher education and marriage is another common practice among Indians. We c a n s e e , e v e n t o d a y, grandparents gifting an FD of a longer tenure in the name of

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March 2015

grandchildren, for any future requirement.

While investing early on for children's goals is good, investing conservatively in debt instruments for such long-term goals will hardly beat the inflation. Further, the c o s t o f e d u c a t i o n i s skyrocketing; the returns generated by debt instruments would hardly keep the pace with rising cost. To add to it, the returns generated from debt instruments are taxable and h e n c e , t h e n e t r e t u r n generated is much lower than the growth assets such as equity.

Say for example, you invest 5 lakh today into an FD for 10 years to fund your child's graduation after 10 years. You expect the cost of graduation to be 5 lakh (in today's value). With the cost of education growing at a rapid pace, the cost can grow up to 12.97 lakh after 10 years (assuming an inflation rate of 10% p.a.). However, the FD can grow to 11.84 lakh after 10 years (assuming an interest rate of 9% p.a.). But after tax, the FD

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will fetch only 9.72 lakh (assuming a tax of 30.9%) as against the future cost of graduation of 12.97 lakh.

Thus, for long-term goals, it is always advisable to invest into growth assets such as equity mutual funds, which will protect you not only against inflation, but also taxes. In fact, the amount required to invest also comes down due to these benefits. In the above example, the lump sum investment required in an FD was 5 lakh, but if you invest in equity mutual funds, it will be just 4.18 lakh to accumulate the future value of 12.97 lakh (assuming a return of 12% p.a.). And to accumulate the future value of 12.97 lakh (post tax), the lumpsum investment required in an FD would be 6.98 lakh as against

4 . 1 8 l a k h i n e q u i t y instruments.

Some individuals do invest in growth assets, such as equity mutual funds, for their long-term goals. However, they choose div idend opt ion

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5. Opting for dividend schemes of mutual funds for long-term goals



March 2015

instead of growth option. They see dividend as a regular income (though funds do not declare dividend on a regular basis), in addition to the appreciation expected from the fund.

However, one should note that, whenever a mutual fund declares dividend, the NAV of a fund comes down to the extent of the dividend declared. For example, if the NAV of a fund is 35 and the fund declares a

dividend of 5 per unit, the NAV of a fund comes down to 30 post dividend. So, when you opt for the dividend option, you actually withdraw the part of the capi ta l appreciated, in the form of dividend. It is therefore better to opt for growth option for long-term financial goals, as one generally does not require income in between in the form of dividends, plus the capital keeps getting appreciated over the long run.

It is a well established fact that diversification helps reduce the overall portfolio risk while

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6. Over-diversifying stock and MF holdings

maintaining the expected level of returns. However, if you overdo, it could actually work against you. Many investors don't realize how the portfolio becomes too complex to u n d e r s t a n d w i t h o v e r -diversification. Further, the tracking and monitoring becomes difficult.

We have seen investors holding as many as 40 mutual funds (MFs) and 100 stocks in a portfolio. There is a misplaced belief that with every additional stock / mutual fund in the portfolio, the overall risk gets reduced to that extent. However, this is not true.

According to the modern portfolio theory, you would come very close to achieving optimal diversity after adding about the 20th stock to your portfolio. In Edwin J. Elton and Martin J. Gruber's book "Modern Portfolio Theory and Investment Analysis", they conclude that the average standard deviation (risk) of a portfolio of one stock was 49.2%, while increasing the number of stocks in the a v e r a g e w e l l - b a l a n c e d



March 2015

Source: Investopedia

While in case of mutual funds, 7-8 funds - across categories of equity, debt and gold- make a good number. It does not make sense to pi le up 30-40 schemes, since mutual funds itself offer you the inherent benefit of diversification.

Further, with every addition, there could be a chance of duplication, without adding any value to the portfolio. For

example, all diversified equity funds have a basket of stocks, with the holdings spread across companies and sectors. If you choose 10 to 15 diversified equity funds, each having at least 50-60 stocks in their kitty, you could end up paying more money for funds which are picking the same set of stocks.

This is another common practice / misconception among MF investors. The general theory behind this misconception is that a lower NAV fund can grow faster than a higher NAV fund. However, this is not the case. Let's understand this with an example:

There are two similar MF schemes, Scheme 'A' with NAV of 15 and Scheme 'B' with NAV 150. Let's assume you invest 15,000 into both. You will get 1,000 units of Scheme 'A' and 100 units of Scheme 'B'. If the market goes up by 20%, then the NAV of Scheme 'A' goes up to 18, whereas NAV of Scheme 'B' goes up to 180.

7. Buying MFs with lower NAV thinking they are cheap/give better return

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portfolio could reduce the portfolio's standard deviation to a maximum of 19.2% (this number represents market risk). However, they also found that with a portfolio of 20 stocks the risk was reduced to about 20%. Therefore, the additional stocks from 20 to 1,000 only reduced the portfolio's risk by about 0.8%, while the first 20 stocks reduced the portfolio's risk by 29.2% (49.2%-20%).



March 2015

The value of Scheme 'A' would be 18,000 (1,000 units x 18) and the value of Scheme 'B' would be 18,000 (100 units x

180). Hence, it does not matter whether the NAV is lower or higher.

Instead of looking at the NAV of a fund, it is important to look at other various factors such as its historical performance and track record, risk-adjusted rate of return, expense ratio, etc.

Usually, in case of financial emergency, people turn to personal loans. However, there are certain alternatives which may come in handy in hard t i m e s . T h e s e i n c l u d e leveraging your existing assets a n d i n v e s t m e n t s s u c h proper ty, go ld , shares , insurance policies, fixed deposits, etc. There are loans available against these assets and the interest rates on these are generally lower (13-15% p.a.) when compared to personal loans (16 - 30% p.a.). One may also go in for an overdraft facility offered by various banks against savings or current accounts in case of

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8. Taking personal loan instead of leveraging existing assets

an emergency.

Not only life and health insurance, general insurance penetration is also low in India, e.g. home insurance. Most Indians do not bother to take home insurance, even though the rates are low. It is important to get your assets such as home, home contents, etc. accurately appraised and take a cover to fit your collection. It costs just about 15 a day to insure your most valuable asset - your home - and its contents (Assuming you take a cover of 50 lakh). If you already have insurance, consider whether you need an update.

The way we build our routines today define the future course of our financial position. It is therefore important to follow g o o d p e r s o n a l f i n a n c e practices in order to secure our future. Managing personal finances is not difficult, it is all in our control to be disciplined with our investments, and lead a healthy financial life.

9. Leaving assets uninsured

Summing up

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‘India is the most attractive emerging market in the world'

With the current price of crude and good growth prospects, India is the most attractive emerging market in the world and therefore, it is an opportunity for people to invest for the long-term in Indian equities, says Nimesh Shah, MD & CEO, ICICI Prudential Mutual Fund, in an interview with ICICIdirect Money Manager. The outlook for equity markets is very positive for the next 3-5 years, he adds. Excerpts:

Nimesh Shah,

MD & CEO,

ICICI Prudential Mutual Fund

Tête-à-tête

March 2015

Q:

A:

How do you broadly review the

Union Budget 2015-16? What are

the key posi t ives and the

negatives?

The FY16 Union Budget, a

much awaited event, laid down

a roadmap for economy,

having delivered against the

backdrop of high expectations.

The government has done well

t o r e i t e r a t e t h e f i s c a l

conso l ida t ion roadmap,

vis ibi l i ty on the capital

expenditure (capex) cycle and

thrust on infrastructure. One

highlight is that the road map

to implement the Goods and

Service Tax (GST) has been laid

down.

I t h a s i n c r e a s e d t a x

deductibles for individuals.

The government has also

come out with a system to

monetise household gold

holdings thus allowing for

productive use of gold. It seeks

to widen the social safety net,

which all in all, will strengthen

and aid India's economic rise.

While the boost towards the

capex cycle is not really

substantial, it is clearly a good

star t g iven the current

economic situation.

What do you think of the

economy, on both global and

domestic fronts?

Q:


Tête-à-tête

A: Currently, India is in the early

s tages of an economic

recovery. The current account

deficit (CAD) is under control,

wholesale inflation is negative,

and interest rate cut cycle has

only just begun. So there is a

huge scope for the long-term

investor as the economy

expands and gross domestic

p r o d u c t ( G D P ) g r o w t h

recovers. A lower oil price and

lower CAD bodes well and

saves considerable amounts

for the government.

As for the global scenario, one

of the most widely talked about

expectations for the current

year is the rate hike in US, and

currency headwinds taking

place globally. It may be

difficult for the US to have a

h i g h e r i n t e r e s t r a t e

environment, while the rest of

the developed world is

conducting some form of

quantitative easing (QE) or

another. Europe is on a bond

buying spree, and so is Japan.

T h i s s c e n a r i o i t s e l f i s

tantamount to tightening in the

US.

However, if the US does raise

interest rates this year due to a

strong economy, i t wi l l

def ini tely impact global

markets. Equity markets are

pricing a low or zero interest

rate environment. A rate hike in

the US will mean equity assets

will get re-priced which will

give opportunities across

equity assets.

What is your outlook for the

market? Will it sustain the

momentum?

With the current price of

crude and good growth

prospects, India is the most

attractive emerging market in

the world. Equities albeit not

cheap, continue to remain a

good long term investment

destination. The outlook for

equity markets is very positive

for the next 3-5 years. In the

short run, we have seen a

decent uptick in the market,

complemented by a positive

rate cut from the Reserve Bank

of India (RBI). On the flipside,

global headwinds coming from

Europe and US combined with

richer domestic valuations

should keep optimism in

check.

Q:

A:


Tête-à-tête

In fact, it will be suitable to have

a subdued market rally this

year because after two good

years in the market, investors

tend to get exuberant and

invest with hopes that the

markets give 30 percent

returns every year.

No one can really predict the

market. Investors shouldn't get

swayed by the past returns of

the market. Therefore, a

sideways movement is good

for the market. For the rest of

2015 we expect continued

volatility with decent upticks

and a few downdrafts based on

domestic and global news

f low. From a va luat ion

perspective, any consolidation

is healthy for the markets and

beneficial to prevent high

investor expectations.

What are the risks to the market?

Broader market valuations

will look quite high with

earnings multiple ranging

about 20 times. But the fact is

we are talking about specific

stocks. There are pockets

w h e r e v a l u a t i o n s a r e

expensive, and others that are

Q:

A:

not-so-expensive, among

them are the rate-sensitive

sectors.

Second, there's a risk of crude

prices spiking back to $90 or

$100 per barrel because we

benefit immensely out of crude

falling as an economy. Besides,

that there would be external

risks if something happens in

Venezuela or Greece, markets

would react. It will make equity

prices gyrate significantly. But,

in my view, it's more of an

opportunity, than a risk.

What are your key takeaways

from third quarter earnings? What

is the road ahead for corporate

earnings?

India's macro fundamentals

like CAD, inflation, lower crude

prices and growth impulses

are improving. Further, in this

Budget, there is a clear thrust

on infrastructure which is a

step towards recovery. It's the

only way the wheels of the

economy can start running

comfortably again. This could

benefit certain sectors in the

i n f r a s t r u c t u r e s p a c e .

Cascading benefits could

Q:

A:


Tête-à-tête

boost demand aiding the

domestic cyclical sectors. As

the investment cycle picks up,

these sectors will further gain

strength. All this should result

in earnings expansion over 3-5

years.

How do you generate investment

ideas? What makes you say, “Yes, I

want to invest in this company" or

"No, I don't want to”?

In the first part, we look at

the s tocks which have

performed badly. We also

figure out why institutional

investors are underinvested

and why external analysts

have degraded that particular

stock - this is the starting point

for us. Similarly, we also look at

stocks which have done well

and why institutional investors

are overweight, and why

analysts have put 'BUY' for that

particular stock.

In both the scenarios, we try to

make a case to move out of a

set of stocks, which have done

well, to stocks which have

done badly. In the next part, we

try to find out why people are

negative on that stock, meet

Q:

A:

the management of the

company and do our own

internal research. But that is

not enough; when we are

using value investing, we

figure out whether that stock

can improve from the current

s i tuat ion. We meet the

companies and sector analysts

among all the brokerages.

After going through all the

annual reports, participating in

conference calls, we look at

where the stock is placed in a

cycle and then decide whether

the stock should be bought or

not.

So it's a combination of cycles,

sector, industry and company

valuations - all these factors are

considered before including

the stock in the portfolio. A

combinat ion o f under

investment and valuations

gives us the best value

investment.

How do you approach valuation,

and what type of returns do you

target?

We believe in a concept of

relative value. In 2007, we

found significant value in

Q:

A:


Tête-à-tête

consumer, pharmaceutical and

technology. Therefore, at any

point of time, we will be able to

find value in something at least

relative to the rest. In our

opinion, given the way markets

have got integrated, there is lot

of scope to find value at all

points of time. What is required

is the intrinsic approach to buy

value while others don't like it;

in first place, it becomes value

because others don't like it.

Where do you think interest

rates will be one year from now?

A: Towards the end of the year,

we believe interest rates may

be substantially lower in order

t o a i d t h e e c o n o m i c

expansion.

Post-budget, which sectors

would you now look to add to your

portfolio and which ones could see

a miss?

In such an environment, one

segment that is likely to do well

is clearly the highly leveraged

segment. A fifty-basis point

cut, once passed through to

the broader economy, will

reduce the interest burden of

leveraged companies. Many

Q:

Q:

A:

highly leveraged companies

did badly relative to the rest of

the market, and some of them

are well-poised to make the

most of the lower interest rate

cycle.

Debt ridden companies may

not necessarily have the best

financials or the best balance

sheets hence, it requires

intensive research to narrow

down to specific companies.

Financials is another area that

looks quite promising. Public

sector banks require capital

and over time with lower

interest rates should benefit

banks as it will improve growth

and reduced non-performing

assets (NPAs). A combination

of lower interest rates, lower

NPAs, and capital infusion are

extremely positive for the

financial sector.

Also, with visibility on capex

revival through increased

government spending and

addressing issues of financing

infrastructure projects could

benefit certain sectors in the

infrastructure space.

In your opinion, what is the Q:


Tête-à-tête

single biggest mistake that keeps

investors from reaching their

goals?

Not adhering to asset

allocation model is one of the

biggest mistakes that keeps

investors from reaching their

financial goals. Building a

portfolio based on the suitable

asset a l locat ion, inst i ls

discipline in investing, helps

avoid the tendency to invest at

market tops and redeem at

market bottoms.

What is your advice for investors

at this point in terms of their overall

portfolio and asset allocation?

I f i n v e s t o r s a r e

underinvested in equities, they

may look to invest lump sum in

equity strategies which are

defensive (or have cash) as

equity markets have run up

and if the markets offer

opportunities over the course

of next few months or one

year, these strategies will have

enough cash to buy equities. It

may be a prudent strategy,

A:

Q:

A :

thus, to add flavour of funds in

the balanced advantage and

dynamic asset allocation

category. These funds seek to

increase allocation to equity

when the markets are cheap,

and book profits in equities

when markets are rising

thereby reducing volatility and

boosting returns.

However, if an investor is well

invested in equities, we would

recommend investing this

amount in a staggered manner

through equity mutual funds

over the course of next 6-9

months. With the current price

of crude and good growth

prospects, India is the most

attractive emerging market in

the world and therefore, it is an

opportunity for people to

invest for the long-term in

Indian equities. The outlook for

equity markets is very positive

for the next 3-5 years.

The views expressed in the interview are personal views of the authors and do

not necessarily represent the views of ICICI Securities.


ASK OUR PLANNER

Income tax benefits post budget

March 2015

Q:

A:

Can you brief on the tax benefits

provided by the recent budget for

individuals? Also, in the recent

budget, the Finance Minister had

remarked that salaried people can

get exemptions upto 4,44,200 per

year. Please let me know what all

components are included in this

figure.- Rajesh Kumar

The recent budget has given

below provisions with respect

to deductions on income for

individuals:

SECTION 80C

Limit for deduction under

Section 80 CCC for investment

in pension schemes raised to

1,50,000 from 1,00,000.

However, the overall limit of

1,50,000 under section 80CCE

i.e.

combined deduction U/s 80C,

80CCC and 80CCD(1) remains

same as before.

For contribution made

towards the National Pension

System (NPS), additional

deduction of 50,000 is

a l l o w e d u n d e r s e c t i o n

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80CCD(1B), which is over and

above the existing deductions.

Deduction is proposed to be

introduced retrospectively

f r o m F Y 2 0 1 4 - 1 5 f o r

subscriptions made towards

Sukanya Samriddhi Scheme,

relating to education of the girl

ch i ld . Addi t iona l ly, any

payment received from

such a scheme is proposed to

be exempt from tax.

SECTION 80D

Limit of deduction of health

insurance premium has been

increased to 25,000 f r o m

15,000; for senior citizens, the

limit has been increased to

30,000 from 20,000.

OTHERS

People aged above 80 and

no t covered by hea l th

insurance will be allowed

deduction of 30,000 for

medical expenses.

Deduction under Section

80G is proposed to be

introduced for donation made

to Swachh Bharat Kosh and

Clean Ganga Fund to the extent

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ASK OUR PLANNER

March 2015

of 100% of thedonation.

Additional deduction of

25,000 allowed for differently-

abled persons under Section

80DD and Section 80U.

For salaried individuals,

t r a n s p o r t a l l o w a n c e

exemption is being increased

from 800 per month to

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1,600 per month.

The additional deductions

/exemption as aforesaid

introduced in the Union Budget

2015-16, t ranslates into

incremental tax savings of

7,168, 14,337 and 21,506 for

individual tax payer falling

under the 10%, 20% and 30%

tax slabs, respectively.

`

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To answer your other query about the exemptions upto 4,44,200 p.a., the break-up of the same is as below:

`

Deductions under 80C

` 1,50,000

Deductions under 80CCD for contribution to NPS

` 50,000

Interest on house property loan (self-occupied) under Sec.24 ` 2,00,000

Exemption with new transportation allowance of Rs. 1,600 x 12 months ` 19,200

New deductible health insurance premium under 80D

` 25,000

Total ` 4,44,200

Q: Thank you for giving a brief idea

on pension policy in your last

edition. I am having a pension

policy which has completed 5 years

of policy term and value is around

Rs.6 lakh. You had mentioned that

the entire fund value would be

taxable if I surrender the policy.

Instead of surrendering the policy

what if I transfer this 6 lakh

amount as premium to my other

policy or make top up. As in many

companies, we have an option of

transferring premium from one

`

policy to another if it has completed

the lock-in periods. Kindly let me

know what would be the taxation

part in this case.- Sushil Salian

When a pension policy is

surrendered, the end use of

funds is immaterial and the

proceeds are added to your

income and taxed as per your

income slab. In this case, the

surrender proceeds from the

pension policy are being

utilized to pay premium for

A:


ASK OUR PLANNER

March 2015

other insurance policies and

this does not affect the taxation

of surrender proceeds of the

pension policy by any means

(even if the funds do not

actually come to you and are

transferred to your other policy

within the insurance

company).

I am 32 year male and a doctor by

profession. I am looking for a

retirement mutual fund. I wanted to

start a systematic investment plan

(SIP) of Reliance Retirement Fund -

Wealth Creation scheme which

was recently launched. Kindly give

me advice whether this is a good

fund to invest and if not whether

any other mutual fund which has

provisions of retirement is there to

invest. My retirement time is 30

years from now.- Abhishek Balani

It is good to note that you are

looking to start investing for

your retirement at this stage of

your life itself. If you start

investing for retirement (which

is 30 years away) from now,

your investments can grow

signif icantly due to the

compounding effect over a

longer tenure.

Q:

A:

As you have a longer tenure of

30 years to ret irement,

investing into proper equity

mutual funds would make

more sense. Also, the long-

term capital gains on normal

equity mutual funds are

exempt from tax, as per the

current tax laws.

Till now, there have been only a

couple of retirement specific

funds in the industry and these

funds take lesser exposure into

equity. And, the long term

capital gains were also taxed,

as the minimum exposure to

equity was less than 65%.

However, the recently

i n t r o d u c e d R e l i a n c e

Retirement Fund – Wealth

Creation Scheme takes a

minimum of 65% and a

maximum of 100% exposure

into equity and is

benchmarked to S&P BSE 100

Index. This means that the

long-term capital gains are

exempt from tax. In addition to

this, deduction can be claimed

from your income under

S e c t i o n 8 0 C u p t o a n

investment of 1.50 lakh p.a.

into the scheme.

`

MUTUAL FUND ANALYSIS


Category: Equity Diversified Funds

Here we analyze top-performing equity diversified funds, the ever-green option for individuals to invest for their long-term financial goals.

Reliance Equity Opportunities

Fund Objective:The primary investment objective of the scheme is to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio constituted of equity securities and equity related securities.Key Information:NAV as on February 27, 2015 ( ) 77.1

Inception Date March 28,2005

Fund Manager Sailesh Raj Bhan

Minimum Investment (`)

Lumpsum 5000

SIP 500

Expense Ratio (%) 2.13

Exit Load 1% on or Before 1Y,

Nil after 1Y

Benchmark S&P BSE 100

Last declared Quarterly AAUM(`cr) 11172

`

Product Label:

This product is suitable for investors who are seeking*:

Long term capital growth.

Investment in equity and euity related securities.

High risk. (BROWN)

•

•

•

Fund Manager: Sailesh Raj Bhan

Mr. Sailesh Raj Bhan, CFA is a Deputy Chief Investment Of f icer (C IO) o f Equ i ty

Investments at Rel iance Mutual Fund. He has about 19 years of experience in equity research, analysis, and fund management, of which 10 years have been spent at Reliance Mutual Fund.

The fund does well in market rallies beating the benchmark as well as peers by good margins. On downturns, the performance is closer to the benchmark. Recently in the CY14 rally, the fund delivered 60% return, double the benchmark due to its exposure t o p h a r m a c e u t i c a l a n d technology stocks. It has a higher standard deviation compared to peers on account of higher exposure to midcap stocks. The fund delivers in bull markets and is best suited for an aggressive investor.

Performance:

Performance vs. Benchmark

22.2

67.7

30

22.1

11.8

44.4

19.2

12

0

20

40

60

80

6 Month 1 Year 3 Year 5 Year

Retu

rn

%

Fund Benchmark



31-Dec-13 31-Dec-12

31-Dec-13 31-Dec-12 31-Dec-11

31-Dec-14

Last Three Years Performance

Fund Name

2014 2013 2012 2011 2010

Calendar Year-wise Performance

* Since inception to December 31, 2014

Note: Investors should note that past performance may or may not be repeated in future

Current Value of Standard Investment of ` 10000 in the

NAV as on Dec 31 ( ) 74.0 46.4 44.3 30.1 38.4

Return (%) 59.7 4.6 47.4 -21.6 30.5

Benchmark (%) 32.3 5.9 30.0 -25.7 15.7

Net Assets (` Cr) 10670 5291 4990 3159 2861

`

Reliance Equity Opportunities

Fund 59.67 4.56 47.35

Benchmark 32.28 5.87 29.96

S&P BSE Sensex 29.89 8.98 25.70

Scheme 74490

Benchmark 41443

S&P BSE Sensex 42354

Portfolio:

The fund has a well diversified

portfolio. Exposure to any

particular sector does not

exceed 12%. Also, there is a

good mix of large and midcap

stocks with higher orientation

towards midcap . Some

midcap bets to which the fund

m a n g e r h a s i n c r e a s e d

exposure include Ramco

Cements, Havel ls India,

Castrol, Simplex Infra, etc.

The fund manager has taken

exposure to hotel companies,

which are not seen in peer

funds.

Overall, a diversified portfolio

with exposure to diverse

companies within the sector

makes the fund a good choice

for long term investing.

Top 10 Holdings Asset Type %

State Bank Of India Domestic Equities 5.3

HDFC Bank Ltd. Domestic Equities 5.2

Divis Laboratories Ltd. Domestic Equities 4.3

HCL Technologies Ltd. Domestic Equities 3.7

Cummins India Ltd. Domestic Equities 3.7

Maruti Suzuki India Ltd. Domestic Equities 3.5

Trent Ltd. Domestic Equities 3.4

Bharat Forge Ltd. Domestic Equities 3.4

The Indian Hotels Company Ltd. Domestic Equities 3.4

Larsen & Toubro Ltd. Domestic Equities 3.1



Top 10 Sector Asset Type %

Pharmaceuticals & Drugs Domestic Equities 11.2

IT - Software Domestic Equities 10.5

Bank - Private Domestic Equities 9.5

Bank - Public Domestic Equities 7.4

Electric Equipment Domestic Equities 7.1

Retailing Domestic Equities 5.6

Hotel, Resort & Restaurants Domestic Equities 4.5

Electronics - Components Domestic Equities 4.0

Diesel Engines Domestic Equities 3.7

Automobiles - Passenger Cars Domestic Equities 3.5

Whats In % %Whats Out

Portfolio AttributesTotal Stocks 65

Top 10 Holdings (%) 38.9

Fund P/E Ratio 30.8

Benchmark P/E Ratio –

Fund P/BV Ratio 5.9

Risk ParametersStandard Deviation (%) 14.22

Beta 0.83

Sharpe ratio 0.23

R Squared 0.79

Alpha (%) -3.53

Asset AllocationEquity 97.8

Debt 0.0Cash 2.2

Performance of all the schemes managed by the fund manager

Fund Name31-Dec-13

31-Dec-14

31-Dec-12

31-Dec-13

31- -11Dec

31- -12Dec

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

(Blue) Investors understand that

their principal will be at low risk

(Yellow) Investors understand that

their principal will be at meduim risk

(Brown) Investors understand

that their principal will be at high

risk

Data as on February 27, 2015; Portfolio details as on January 31, 2015Source: ICICIdirect.com Research, Accord Fintech

Castrol India Ltd. 0.2

Axis Bank Ltd. 0.5

Asian Paints Ltd. 0.5

Dividend HistoryDate Dividend (%)

Mar-18-2014 20

Mar-04-2013 25

Mar-30-2012 15

Mar-14-2011 20

Jul-27-2009 20

Mar-24-2008 15

Reliance Equity Opportunities Fund(G) 59.67 4.56 47.35

S&P BSE 100 32.28 5.87 29.96

Reliance ELSS Fund-I(G) 56.81 1.37 47.09

S&P BSE 100 32.28 5.87 29.96

Reliance Pharma Fund(G) 49.46 20.87 34.84

S&P BSE Health Care 47.43 22.55 38.53

Reliance Media & Entertainment Fund(G) 41.24 -1.52 57.96

– -- -- –



Franklin India Prima Plus

Fund Objective:

To provide growth of capital plus regular dividend through a diversified portfolio of e q u i t i e s , f i x e d i n c o m e securities and money market instruments.

Key Information:

Product Label:This product is suitable for investors seeking*:

• Long term capital appreciation.

• Primarily a large cap fund with some allocation to small / mid cap stocks.

• High risk** (BROWN)

Fund Manager: Anand RadhakrishnanMr. Anand Radhakrishnan, CFA is Chief Investment Officer (CIO), Franklin Equity – India. H e i s r e s p o n s i b l e f o r overseeing all local equity funds. Mr. Radhakrishnan has been in the investment

NAV as on February 27, 2015 ( ) 441.2

Inception Date September 29,1994

Fund Manager Anand Radhakrishnan

Minimum Investment (`)

Lumpsum 5000

SIP 500

Expense Ratio (%) 2.30

Exit Load 1% on or before 1Y

Benchmark CNX 500 Index

Last declared Quarterly AAUM(` cr) 3790

`

management industry since 1994.

The fund, in over 20 years of existence has delivered 20% Compounded Annualised Return (CAR) against 15% CAR delivered by its benchmark CNX 500. The performance can largely be attributed to the asset management company's in-built research process and fundamental ideologies along with the star fund managers who have managed the fund exceptionally better than its peer diversified multicap funds. Mr Radhakrishnan has been managing the fund since April 2007 and has delivered 16% CAR since then. The performance across market cycles has been above the benchmark be it the crash of CY08, wherein CNX 500 was down 57%. The fund curtailed loss to -47%. Even in rallies, the fund has beaten index returns by decent margins. We believe it can be a perfect all weather fund due to its multicap portfolio allocation and the fund management team, which is one of the best in industry and recognised worldwide for the same.

Performance:



Performance vs. Benchmark

Fund Benchmark

31-Dec-13 31-Dec-12

31-Dec-13 31-Dec-12 31-Dec-11

31-Dec-14

Last Three Years Performance

Fund Name

2014 2013 2012 2011 2010

Calendar Year-wise Performance

Current Value of Standard Investment of ` 10000 in the

* As on Sep 30, 2014

22.2

65.6

27

18.6

13.5

49.7

20.1

11.8

010203040506070

6 Month 1 Year 3 Year 5 Year

Retu

rn%

NAV as on Dec 31 ( ) 417.6 266.3 252.3 192.6 230.4

Return (%) 56.8 5.6 31.0 -16.4 19.5

Benchmark (%) 37.8 3.6 31.8 -27.2 14.1

Net Assets (` Cr) 3568 2014 2142 1679 1842

`

Franklin India Prima Plus Fund 56.79 5.55 31.04

Benchmark 37.82 3.61 31.84

S&P BSE Sensex 29.89 8.98 25.70

Scheme 417601

Benchmark 62246

S&P BSE Sensex 63157

Note: Investors should note that past performance may or may not be repeated in future

Portfolio:

The fund predominantly

invests in wealth creating

companies that generate a

return on capital in excess of

their cost of capital. The fund,

at present, is overweight on

private banks with 27%

exposure. Despite the poor

result show, the fund manager

added Bank of Baroda to his

holding in public sector

undertaking (PSU) banks. The

next highest exposure is to

pharmaceutical companies,

even after the exposure being

trimmed from 11% to 9% in the

past year. Third largest

exposure is to technology

c o m p a n i e s w h e r e i n

preference is for company

specific triggers over sector

positives. Other companies

that have been added to the

portfolio include refinery

companies, select companies

on consumption themes like

Havells India, Voltas, Marico,

etc. Overall, we believe the

portfolio is positioned to

benefit from a decline in

i n t e r e s t r a t e s a n d

implementation of economic

reforms. We believe it will have

relatively higher beta over

peers due to concentrated

exposure to the banking

sector. However, the stock

select ion within sectors

provides strength to the overall

portfolio composition.



Top 10 Holdings Asset Type %

HDFC Bank Ltd. Domestic Equities 5.9

ICICI Bank Ltd. Domestic Equities 5.6

Infosys Ltd. Domestic Equities 4.9

Call Money Cash & Cash Equivalents 4.7

Bharti Airtel Ltd. Domestic Equities 3.9

Yes Bank Ltd. Domestic Equities 3.9

IndusInd Bank Ltd. Domestic Equities 3.8

Eicher Motors Ltd. Domestic Equities 3.2

Bosch Ltd. Domestic Equities 2.8

Torrent Pharmaceuticals Ltd. Domestic Equities 2.7

Top 10 Sector Asset Type %

Bank - Private Domestic Equities 26.9

Pharmaceuticals & Drugs Domestic Equities 8.1

IT - Software Domestic Equities 7.8

Auto Ancillary Domestic Equities 6.4

Automobiles-Trucks/Lcv Domestic Equities 4.3

Telecommunication - Service Provider Domestic Equities 4.1

Refineries Domestic Equities 3.7

Diesel Engines Domestic Equities 2.9

Diversified Domestic Equities 2.7

Chemicals Domestic Equities 2.7

Whats In % %Whats OutTitan Company Ltd. 0.4 Himatsingka Seide Ltd. 0.2

Repco Home Finance Ltd. 0.3

Asset AllocationEquity 95.3

Debt 0.0

Cash 4.7

Portfolio AttributesTotal Stocks 60.0

Top 10 Holdings (%) 41.3

Fund P/E Ratio 32.4

Benchmark P/E Ratio –

Fund P/BV Ratio 6.1



Risk ParametersStandard Deviation (%) 11.84

Beta 0.82

Sharpe ratio 0.26

R Squared 0.91

Alpha (%) 2.15

Dividend HistoryDate Dividend (%)

Feb-16-2015 25

Feb-24-2014 20

Feb-18-2013 30

Mar-05-2012 25

Feb-21-2011 30

Feb-22-2010 60

Performance of all the schemes managed by the fund manager

Fund Name31-Dec-13

31-Dec-14

31-Dec-12

31-Dec-13

31- -11Dec

31- -12Dec

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

(Blue) Investors understand that

their principal will be at low risk

(Yellow) Investors understand that

their principal will be at meduim risk

(Brown) Investors understand

that their principal will be at high

risk

Data as on February 27, 2015; Portfolio details as on January 31, 2015Source: ICICIdirect.com Research, Accord Fintech

Franklin Build India Fund(G) 93.80 6.06 39.91

CNX 500 Index 37.82 3.61 31.84

Franklin India Smaller Cos Fund(G) 89.92 13.22 51.70

CNX Midcap 55.91 -5.10 39.16

Franklin India High Growth Cos Fund(G) 79.58 9.22 42.54

CNX 500 Index 37.82 3.61 31.84

Franklin India Prima Fund(G) 78.14 7.40 44.42

CNX 500 Index 37.82 3.61 31.84

Franklin India Opportunities Fund(G) 58.58 2.14 27.51

S&P BSE 200 35.47 4.38 30.98

Franklin India Taxshield(G) 56.92 6.14 29.38

CNX 500 Index 37.82 3.61 31.84

Franklin India Prima Plus Fund(G) 56.79 5.55 31.04

CNX 500 Index 37.82 3.61 31.84

Franklin India Flexi Cap Fund(G) 55.90 7.07 31.45

CNX 500 Index 37.82 3.61 31.84

Franklin India Life Stage FOFs-20(G) 38.91 3.54 26.22

CNX 500 Index 37.82 3.61 31.84

Franklin India Bluechip Fund(G) 37.22 4.08 26.79

S&P BSE SENSEX 29.89 8.98 25.70


CNX 500 Index 37.82 3.61 31.84

Franklin India Dynamic PE Ratio FOFs(G) 24.74 3.93 20.02

Crisil Balanced Fund Index 25.34 6.05 21.27


CNX 500 Index 37.82 3.61 31.84

Franklin India MIP(G) 22.39 5.97 14.19

Crisil MIP Blended Index 16.83 4.41 12.10


Crisil Composite Bond Fund Index 14.31 3.79 9.36

Franklin Infotech Fund(G) 16.75 53.34 0.26

S&P BSE IT 16.54 59.78 -1.18

Franklin India Life Stage FOFs-50s +FR(G) 14.77 7.70 12.79

Crisil Liquid Fund Index 9.21 9.03 8.52


MUTUAL FUND TOP PICKS

Wth over thousand of mutual fund schemes available in the market, selecting the right ones may become too complex. To make it easy for you, we present our research team’s top recommendations, across equity and debt categories

Mutual Fund Top Picks

Equity

Category Top Picks

Largecaps Axis Equity FundBirla Sunlife Frontline equity FundICICI Pru Focussed Bluechip Equity FundUTI Opportunities Fund

Midcaps HDFC Midcap Opportunities FundICICI Prudential Value Discovery FundFranklin India Smaller Companies FundSBI Magnum Global Fund

Diversified Franklin India Prima PlusICICI Prudential Dynamic PlanReliance Equity Opportunities

ELSS Axis Long Term EquityICICI Prudential Tax PlanFranklin India Tax shield

Sector - Banking ICICI Prudential Banking Reliance BankingUTI Banking

March 2015


MUTUAL FUND TOP PICKS

March 2015

Short Term Birla Sunlife Short Term FundHDFC Short Term Opportunities FundICICI Pru Short Term Plan

Credit Opportunities Fund

Birla Sunlife Medium Term PlanFranklin India Short term PlanICICI Prudential Regular Savings

Income Funds ICICI Prudential Dynamic Bond FundBirla Sun Life Income Plus - Regular Plan IDFC Dynamic Bond Fund

Gilts Funds ICICI Pru Gilt Inv. PF PlanBirla Sunlife Gilt Plus

MIP(Aggressive)

Birla Sunlife Savings 5ICICI Prudential MIP 25DSP Blackrock MIP

Debt

Category Top Picks

Liquid Funds HDFC Cash Mgmnt Saving Plan ICIC Pru Liquid PlanReliance Liquid Treasury Plan

Ultra Short Term Birla Sunlife Savings FundFranklin India Ultra Short Term Bond FundICICI Pru Flexible Income Plan


EQUITY MODEL PORTFOLIO

Our indicative large-cap equity model portfolio (“Quality-21”) has continued to deliver an impressive return of 96.7% (inclusive of dividends) till date (as on March 3, 2015) since its inception (June 21, 2011) vis-à-vis the benchmark index (S&P BSE Sensex) return of 67.8% during the same period, out-performance of ~29%. This validates our thesis of selecting companies with sound business fundamentals that forms the core theme of our portfolio. Our “Consistent-15” mid-cap portfolio also continues to outperform, delivering 113.7% (inclusive of dividends) till date (as on March 3, 2015) vis-à-vis the benchmark index (CNX Midcap) return of 73.1%, out-performance of 40.6%. Our consistent out-performance demonstrates our superior stock picking ability as markets in H2FY15 aligned to our view of favourable risk-reward, good franchisee vs. reward-at-any-risk businesses. Some key performers of our portfolio are Lupin, Sun Pharmaceuticals, Axis Bank, TCS and Shree Cement delivering ~160-330% returns since inception.

We have always suggested the systematic investment plan (SIP) mode of investment and still find a lot of merit in it as the preferred mode of deployment given the market conditions and volatility associated since the inception of the portfolio. It has outperformed other portfolios, thus, reinforcing our belief in a plan of investment. However, now we are also advising clients to look at lump sum investments at any possible dips.

The last few months saw a paradigm shift in the global energy industry as crude prices declined to a historic five-year low to $58 (down ~40% since June 2014). Intense competition among oil-producing nations for market share (OPEC (Organization of the Petroleum Exporting Countries) vs. non-OPEC) and ramp-up in US shale resources led to this slump in global commodity aided further by languishing global growth prospects. While world economies adjust to this new normal, India, which fulfils ~80% of its oil demand through imports, could be a major beneficiary of this benign oil scenario. Thus, domestic equities attracted strong foreign institutional investor (FII) flows ($16 billion+ during Cy14, highest ever) helped by a stable, reformist central government. Consequently, sectors geared towards a pick-up in domestic economy like consumer discretionary, banks, auto and cement outperformed the benchmark index. On the other hand, defensives

March 2015



saw profit booking as CNX IT and FMCG indices underperformed by ~13% each during 2014 on moderating valuations and changing investor preference.

Thus, we rebalanced our portfolio in December 2014, to capture the essence of a broader economic revival, growing urbanisation and benefits of crude declines. Accordingly, thus add stocks like Castrol India (crude), CARE (economy), Voltas (consumerisation) and Heidelberg Cement (value buying) while we feel Tata Steel, ONGC are well placed to be added to large-cap portfolio.

Though we have a tilt towards higher beta that could generate substantial returns given their respective market dominance, we have not deviated from our core focus on holding good brands. We exit DCB (74% returns), JK Cement (71%) to book profits since potential upside appears limited, hereafter, and remove Tata Global Beverages and Oberoi Realty as company-specific headwinds could likely persist in the medium term.

Our conviction in domestic recovery is visible in terms of relative weightage of sector vis-à-vis the index. We remain overweight on the consumer discretionary (auto, consumer), financials (private sector banks in particular), and the infra space (cement, infra and power). This has been primarily triggered by hopes of a rate cut by the Reserve Bank of India (RBI) on the back of moderating inflation and possibility of decisive action in the infrastructure and real economy space by the new government. We are also overweight on telecom, media owing to reducing concerns & better earnings growth.

We have turned underweight on oil & gas as we have chosen to replace Reliance with ONGC, which has better risk-reward (muted return of investment (RoI) from unrelated investments could impact the former while the latter has lessening regulatory challenges). We continue to remain underweight on pure play defensives (IT, FMCG) as secular earnings coupled with sector rotation could de-rate valuations and offer limited upside. We remain equal weight on pharmaceuticals, metals (global generic opportunity, stock specific play).

On individual names, we are strongly overweight on companies like L&T and UltraTech in the infrastructure space while we prefer HDFC & SBI in financials.

March 2015



Name of the company

Largecap Stocks

Model Portfolio

Largecap(%)

Midcap(%)

Diversified(%)

March 2015

Consumer Discretionary 12 8.4

United Spirits 4 2.8

Tata Motors DVR 4 2.8

Bajaj Auto 2 1.4

Titan 2 1.4

BFSI 30 21

HDFC 8 5.6

HDFC Bank 7 4.9

SBI 8 5.6

Axis Bank 7 4.9

Power, Infrastructure & Cement 15 10.5

L & T 8 5.6

UltraTech Cement 7 4.9

FMCG 8 5.6

ITC 8 5.6

Metals & Mining 4 2.8

Tata Steel 4 2.8

Oil and Gas 8 5.6

ONGC 6 4.2

Gail 2 1.4

Pharma 5 3.5

Lupin 2 1.4

Sun Pharma 3 2.1

IT 13 9.1

Infosys 5 3.5

TCS 5 3.5

Wipro 3 2.1

Telecom 3 2.1

Bharti Airtel 3 2.1

Media 2 1.4

Zee Entertainment 2 1.4

Largecap share in diversified 70



Midcap Stocks

Content source: ICICIdirect.com Research

ICICI Securities Ltd. has been assigned an advisory mandate by Ranbaxy Laboratories Limited with regard to Sun Pharmaceutical Industries Limited's acquisition of Ranbaxy Laboratories Limited. This report is prepared on the basis of publicly available information.

ICICI Securities Limited has received an advisory mandate from Natco Pharma. This report is prepared based on publicly available information.

ICICI Securities has received an investment banking mandate from Government of India for disinvestment in ONGC. This report is prepared based on publicly available information.

This report is based on publicly available information.

Name of the company Model Portfolio

Largecap(%)

Midcap(%)

Diversified(%)

March 2015

Consumer Discretionary 34 10.2

Bosch 6 1.8

Cox & Kings Ltd 6 1.8

Arvind 6 1.8

Voltas 8 2.4

Castrol 8 2.4

IT 6 1.8

Info Edge 6 1.8

BFSI 14 4.2

CARE 6 1.8

IndusInd Bank 8 2.4

FMCG 8 2.4

Kansai Nerolac 8 2.4

Pharma 6 1.8

Natco Pharma 6 1.8

Media 8 2.4

PVR 8 2.4

Capital Goods 6 1.8

Cummins 6 1.8

Realty/Infrasturcture/Cement 18 5.4

Heidelberg Cement 6 1.8

Container Corporation of India 6 1.8

Shree Cement 6 1.8

Midcap share in diversified 100 30

Total of all three portfolios 100 100 100



Performance* so far Since inception

*Returns (in %) as on , 2015

Large-cap Portfolio Benchmark: BSE Sensex; Mid-cap Portfolio

Benchmark: CNX Midcap; Diversified Portfolio Benchmark: Combination

of BSE Sensex and CNX Midcap

March 03

Value of ` 1,00,000 invested via SIP at the end of every month

Portfolio Benchmark

Investment Value of Investment in Portfolio Value if invested in Benchmark

Start date of SIP: June 30, 2011; *Value as on March 03, 2015

March 2015

96.7

113.7

100.3

67.873.1

66.8

0

25

50

75

100

125

%

4,6

00,0

00

4,6

00,0

00

4,6

00,0

00

6,9

94,5

13

8,7

36,5

11

7,4

60,5

07

6,4

79,3

43

7,3

61,0

91

6,7

02,3

92

3,500,000

4,500,000

5,500,000

6,500,000

7,500,000

8,500,000

|

QUIZ TIME

1. The Budget allowed additional deduction of Rs. ______ for

investment made into National Pension System (NPS).

2. The health insurance premium deduction has been increased

from Rs. ______ to Rs. ______ in case of senior citizens.

3. Salaried individuals now can get exemptions upto Rs. ______ per

financial year.

4. The investment limit in corporate bonds is $______ billion for

foreign institutional investors (FII).

5. Limit for deduction under Section 80 CCC for investment in

pension schemes has been raised from Rs. ______ to Rs. ______.

Note: All the answers are in the stories that have appeared in this

edition of ICICIdirect Money Manager. You may send in your

answers at:

The answers will be published in our next edition. The names of the

earliest all correct entries will be published too. So jog your grey

cells and be quick to send in your entries.

Correct answers for the February 2015 quiz are:

1. The government is looking to increase the lock-in period for

Public Provident Fund (PPF) from current ______ years to ______

years in this Budget.

A: 6 years to 8 years

2. When you surrender a pension policy, there is indexation benefit

available on the gains generated. True / False

A: False

3. Investment into National Pension Scheme (NPS) is available for

tax deduction under section ______ of Income Tax Act.

A: 80CCD

4. In case of a pension policy, you have an option to convert 100%

of the maturity amount into an annuity. True / False

A: True

5. Expand CBLO.

A: Collateralized Borrowing and Lending Obligation

[email protected]



MONTHLY TRENDS

8.00

7.74

7.6

7.7

7.7

7.8

7.8

7.9

7.9

8.0

8.0

8.1

Jan-15 Feb-15

(%)

48.24

49.76

45.0

46.0

47.0

48.0

49.0

50.0

51.0

52.0

53.0

54.0

30-Jan 6-Feb 13-Feb 20-Feb 27-Feb

$ pe

r ba

rrel

5325.16

489.31609.00

546.70

-2000

-1000

0

1000

2000

3000

4000

5000

6000

FII DII

.

WPI INFLATION (FOOD)

(The figures are in %)

CRUDE OIL

NYMEX crude oil prices ($/barrel)

FII & DII INVESTMENTS

(Foreign institutional investors (FIIs) and domestic institutional

investors (DII) net equity investment ( ` in crore)

March 2015


29182.95

29361.50

27600

27800

28000

28200

28400

28600

28800

29000

29200

29400

29600


8808.90

8901.85

8300

8400

8500

8600

8700

8800

8900

9000


DOMESTIC INDICES BSE Sensex

NSE Nifty

1.06%

0.61%

March 2015

20.17

16.97

10.0

15.0

20.0

25.0

30-Jan 6-Feb 13-Feb 20-Feb 27-FebVIX

VOLATILITY INDEX (VIX)

MONTHLY TRENDS

VIX is a key measure of market expectations of near term volatility. When the markets are highly volatile, the VIX tends to rise.


17164.95

18132.70

16500

16800

17100

17400

17700

18000

18300

18600


GLOBAL INDICESDow Jones

4635.24

4963.53

4400

4500

4600

4700

4800

4900

5000

5100


NASDAQ

62.01

61.65

61.0

61.2

61.4

61.6

61.8

62.0

62.2

62.4

62.6


US

D /

INR

EXCHANGE RATES USD-INR

0.58%

MONTHLY TRENDS

5.64%

7.08%


69.99

69.00

65.0

67.0

69.0

71.0

73.0


€/

INR

1282.80

1212.55

1100

1175

1250

1325


$ pe

r O

unce

17.22

16.60

15.0

17.0

19.0


$ pe

r Oun

ce

POUND-INR

EURO-INR

BULLION GOLD

(The prices are in $ per ounce).

SILVER

(The prices are in $ per ounce). (Source for all indicators: Bloomberg, Reuters)

MONTHLY TRENDS

93.42

95.14

91.0

92.0

93.0

94.0

95.0

96.0

97.0


£/

INR

1.83%

1.40%


ICICIdirect Centre for Financial Learning (ICFL) imparts quality education on financial markets to beginners and amateurs, student, housewives, working professionals and self employed. ICFL's broad objective is to make participant feel confident to start investing in stock market.

Here is the list of our programmes scheduled for the month of March, 2015.

Schedule for Beginners' programme on Futures and Options (F&O) TradingSr.No

City Dates For More Information & Registration call:

Premium Education Programmes Schedule

Sr.No City Dates For More Information & Registration call:

Schedule for Fast-Track Programme on Futures & Options (F&O)


Schedule for Fast-Track Programme on Stock Investing

Sr.No


Schedule for Market Master Programme

1 Pune 14 and 15 MAR, 2015 Kusmakar on 7875442311

2 New Delhi 21 and 22 MAR, 2015 Vishal on 07838290143, Harneet on 09582158693

3 Mumbai 21 and 22 MAR, 2015 Vidhu on 9619716146

4 Thane 28 and 29 MAR, 2015 Vidhu on 9619716146


6 Bangalore 28 and 29 MAR, 2015 Subrata on 9620001478

7 Rajkot 01 MAR, 2015 Yogesh on 8238053563

8 Vadodara 08 MAR, 2015 Yogesh on 8238053563

9 Bhopal 15 MAR, 2015 Kusmakar on 7875442311

10 Jaipur 01 MAR, 2015 Vishal on 07838290143

11 Jodhpur 01 MAR, 2015 Vishal on 07838290143

12 Bhubaneshwar 01 MAR, 2015 Sumit Sarkar on 8017516187

13 Ghaziabad 01 MAR, 2015 Harneet on 09582158693

14 Surat 01 MAR, 2015 Yogesh on 8238053563

15 Ahmedabad 01 MAR, 2015 Yogesh on 8238053563

16 Indore 15 MAR, 2015 Kusmakar on 7875442311

17 Lucknow 15 MAR, 2015 Harneet on 09582158693



Sr.No


Schedule for Technical Analysis Programme

20 Hyderabad 07 and 08 MAR, 2015 Ruchi on 8297362323




Sr.No


Schedule for Advanced Derivatives Trading Strategies Programme


Schedule for Fast-track Technical Analysis Programme

Contact us

Email:

Send us an email at [email protected] mention the name, date and venue of the programme you have

attended or wish to attend, for faster resolution of your queries.

SMS:

SMS EDU to 5676766 for more details

23 Kolkata 21 and 22 MAR, 2015 Sumit Sarkar on 8017516187


Sr.No


Schedule for Foundation Programme on Stock Investing



27 Navi Mumbai 14 and 15 MAR, 2015 Manish Jamb on 8451057943




31 Thane 14 and 15 MAR, 2015 Vidhu on 9619716146


33 Gurgaon 14 and 15 MAR, 2015 Vishal on 07838290143


35 Hyderabad 21 and 22 MAR, 2015 Ruchi on 8297362323




39 Dhanbad 01 MAR, 2015 Sumit Sarkar on 8017516187

40 Dehradun 01 MAR, 2015 Harneet on 09582158693

41 Jamshedpur 01 MAR, 2015 Sumit Sarkar on 8017516187

42 Jamnagar 15 MAR, 2015 Yogesh on 8238053563

43 Meerut 15 MAR, 2015 Harneet on 09582158693

44 Ajmer 15 MAR, 2015 Vishal on 07838290143

45 Vapi 22 MAR, 2015 Yogesh on 8238053563

held in January 2015

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