MMR Wealth - March -15

MonthlyMarket Review

MARCH2015 • I SSUE 4 • V OLUME 3

For privileged circulation only

ContentsThe First Page 1

Macro Developments 2

Fixed Income 3

Equity Markets 5

Commodities 7

Currency Markets 8

Core Schemes 9

Satellite Schemes 12

Scheme Recommendations 15

Model Portfolio 23

Product Labelling 25

The First PageDear Investor,

The recent weeks have been quite eventful from the financial markets’ perspective due to mainly two factors. These are the presentation of the Union Budget and the RBI rate cut. The rate cut, second in a row from the RBI has clearly indicated a shift in the policy of the central bank to a soft mode and the RBI is expected to continue the policy stance consistently due to the subdued inflation facilitated mainly by the lower oil prices and stable exchange rate, and also on account of the fact that the Union Budget has presented a roadmap for fiscal consolidation. The rate cuts will definitely help the economy in terms of a lower cost of funds and also a likely support to earnings growth for corporate.

A look at the budget more closely will reveal that the accent of the Union Budget is on job creation, poverty alleviation, and also creation and enhancement of infrastructure. There are three important proposals which are of particular interest. The first and most important proposal is the one relating to the issue of gold bonds. This will help monetize the gold holdings which is dormant at this point in time, and conversion of physical savings into financial savings. The second major development is the proposed is in the pension funds space where the contribution to pension funds to the extent of Rs.50,000/-, that is, to NPS will be exempt from tax. This may encourage more flows into the NPS and these moneys could in turn come back into the markets as longer term investments, chasing either long bonds or equities. Third development is the accent put on health insurance as the tax benefit on health insurance premium has been enhanced to Rs.25,000/- from the current Rs.15,000/- The conversion of post office network into payment bank is another matter which will be of interest to the financial services business as this will help product manufacturers to take their products and solutions to millions of people across the country due to the reach of the post offices.

The markets are also looking at the direction in which the policy of the Fed and the ECB are moving, and the factors that would help the domestic markets is the returns differentials that are still maintained with all the other prominent markets. With prospects of the domestic economy quite bright with growth estimates for the next year put at 8- 8.50 per cent, the earnings growth would also be in line with that and this would help equity assets to provide lucrative dividends. And the falling interest rate scenario will help fixed income markets unlike at any time in the past.

The essence of portfolio performance will be, the asset allocation philosophy that is followed on portfolios and the consistency in following the same. Such portfolios will generally outperform the standard benchmarks as is evident from a scientific analysis of the historical performance.

Girish VenkatExecutive Vice - President &Head- Wealth Management

1

Macro Developmentsper cent

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On the macro front, data from the region is pointing towards some recovery and should be positive as the ECB has embarked on QE to boost growth.

The leading indicators such as PMI data point towards some improvement as the euro area composite PMI rose to 53.5 in Feb from 52.6 in Jan and is at the highest level since April’14. The increase was on account of services PMI which rose to 53.9 while the manufacturing PMI remained unchanged at 51.1. If we look at the manufacturing PMI, though the index remained unchanged the underlying were better as the new orders index rose a bit due to higher export orders and there was a decline in stocks of finished goods which implies an increase in manufacturing going ahead. The services PMI rose primarily due to higher future business expectations, new business growth and an increase in backlog of work. Services PMI is at the highest level since May’11 and this increase should reflect the boost to private consumption.

The Q4 GDP for Eurozone grew 0.3 per cent much better than the market expectations of 0.2 per cent primarily on account of growth in Germany, where its real GDP grew 0.7 per cent. Other core countries like Italy and France remained unimpressive as France grew by just 0.1 per cent while Italy remained flat after two quarters of contraction. The break of the GDP will be not be available for a few weeks but it seems that the growth was driven by strong domestic demand. GDP growth for the region is expected to better than last year as the political risks in the region has faded and lower fuel prices should boost real consumer spending. The region though continues to remain in a deflation mode as the CPI has moved into negative territory and ECB launching its QE should put money into the region.

The Euro area retail sales rose for the fourth month in a row in Jan as they grew 1.1 per cent M-o-M and even the December number was revised upwards to 0.4 per cent M-o-M against 0.3 per cent reported earlier. The January growth was due to strong German retail sales which rose 2.9 per cent M-o-M and 6.8 per cent growth in Portugal retail sales. French retail sales remained subdued as it grew 0.1 per cent M-o-M. The strong retail sales in the past four months indicate that recovery is gaining momentum in the region and the consumer’s purchasing power is boosted further due to lower oil prices. Retail sales are also supported by the declining unemployment in the region though the unemployment rate is high is certain countries.

from the year before and the data for Feb is expected to be bad due to the harsh winter climate and sales will start improving once the spring starts.

On the inflation front, CPI fell 0.7 in Jan, the third straight month of decline and the largest monthly drop since Dec’08 mainly on account of fall in gasoline prices. The fall of crude prices since Sept’14 by 50 has led to a major fall in CPI but it is expected to inch up in Feb as the gasoline prices rose 5.5 during Feb. The headline numbers remain weak but the underlying indicates that weakness is due to temporary factors and should bounce back soon. US Fed target for inflation is at 2 and it will want CPI to rise to the target levels while the core CPI rose to 0.2 .

Europe

USA

The economic data from US remains strong and the Feb employment data remained strong as it 295k jobs were added. If we consider the 18k downward revision to Jan payrolls, the 3 month average job gain has been around 287k, which is one of the highest since 2009. The job growth was very broad based with private service sector adding the most, government added 8k jobs and construction sector added 29k for the month. Unemployment rate fell to 5.5 per cent and is now close to the US Fed unemployment rate target of 5.2-5.5 which was the levels before the financial crisis and the labor force participation rate fell to 62.8 and has been flat for the past six months. Although employment data was strong, average hourly earnings was weak as it rose 0.1 M-o-M after a 0.5 M-o-M in Jan.

If we look at some of the leading indicators such as ISM manufacturing and non manufacturing index, the manufacturing index fell to 52.9 for the fourth straight month in Feb and is at the lowest number since Jan’14. Manufacturing sector is struggling due to a stronger dollar and cut in investment from the energy sector due to the low oil prices. Breakup of the ISM manufacturing index indicate 12 out of the 18 industries are reporting growth, while new export orders index fell below 50, while employment, production and new orders components all remained weak in Feb. On the other hand ISM non manufacturing index rose to 56.9 in Feb, rising for the second month in a row. Break up indicates that new orders index fell a 56.7 from 59.5 in Jan showing a slowdown in activity going ahead.

Housing data continues to remain mixed with the pending home sales index rising to 104.2 in Jan and is at its highest level since Aug’13. Index is up 6.5 Y-o-Y and on a three month average basis; the gains in pending home sales are now higher than the existing home sales. This indicates that the recent weakness in existing home sales may reverse in coming months. On the other hand existing home sales fell 4.9 in Jan to its lowest level in nine months. January’s number now markets the second of the three months where sales have been below the 5mn mark. Sales for single family and condos declined for the month by 5.1 and 3.5 respectively and the fall may be attributed due to the harsh winter conditions. New home sales fell 0.2 in Jan but sales for the previous three months were revised upwards which clearly indicate the level of activity is much stronger than expected. New home sales were to the tune of 437K units in 2014, a gain of 1.9

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per cent

per centper cent

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2

Perc

enta

ge C

hang

e

Source: Reuters

1-Ja

n-07

1-Ap

r-07

1-Ju

l-07

1-O

ct-0

71-

Jan-

081-

Apr-

081-

Jul-0

81-

Oct

-08

1-Ja

n-09

1-Ap

r-09

1-Ju

l-09

1-O

ct-0

91-

Jan-

101-

Apr-

101-

Jul-1

01-

Oct

-10

1-Ja

n-11

1-Ap

r-11

1-Ju

l-11

1-O

ct-1

11-

Jan-

121-

Apr-

121-

Jul-1

21-

Oct

-12

1-Ja

n-13

1-Ap

r-13

1-Ju

l-13

1-O

ct-1

31-

Jan-

141-

Apr-

141-

Jul-1

41-

Oct

-14

1-Ja

n-15

U. S Unemployment Rate (%)11.00

5.00

4.00

7.00

8.00

9.00

10.00

6.00

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. Going forward, the RBI will seek to bring the inflation rate to the mid-point of the band of 4 +/- 2 per cent provided for in the agreement, i.e., to 4 per cent by the end of a two year period starting fiscal year 2016-17.

The accent of this Union Budget is on job creation, poverty alleviation, and also creation and enhancement of infrastructure. The GDP growth for the current year is placed at 7.40 per cent, and the growth for the next year is estimated at 8-8.50 per cent. Government borrowing for FY16 has been set at Rs.4.56 lac crs on a net basis against Rs. 4.46 lac crs in FY15 which is almost the same as last year. On gross basis, the total borrowing for FY16 stands at Rs.6 lac crs. The Finance Minister also mentioned that the inflation indicated by CPI would remain somewhere around the 5 per cent level and that it will help the RBI to ease the monetary policy further.

The introduction of the gold bonds scheme will help monetize the physical gold held by individuals and it will help promote financial savings. The very fact that a dormant asset is being used to create a tradable and liquid asset itself would lead to release of substantial amount of liquidity into productive channels. The impact on the price level most often happens mainly through the tax rate changes. The revision upwards of the service tax from 12.36 per cent to 14 per cent would make the price of services higher. It may also be mentioned here that in the Railway Budget the freight on several articles like coal, steel, cement etc. have been hiked. The enhancement of the deduction limit for health insurance premium and the additional deduction on account of the New Pension Scheme will leave more money in the hands of people.

The current account deficit (CAD) narrowed to USD 8.2 billion in the December quarter from USD 10.1 billion in the preceding quarter. The CAD for the quarter came in at 1.6 per cent of the GDP compared to two per cent in the previous quarter. CAD for December 2014 quarter was up from USD 4.2 billion in December 2013. The reduction in the CAD in the December quarter compared to previous quarter was primarily on account of an improvement in the net exports of services.

CPI for the month of January came in at 5.11 per cent much lower than the market expectations of 5.6 per cent and 4.28 per cent growth seen in December. CPI has not moved up much despite the base effect ending which clearly indicates that the trend is expected to be down. Core inflation was at a fresh low of 3.94 per cent. Combined Food Inflation Index rose to 6.13 per cent against 4.39 per cent in December. The growth in food inflation is the maximum seen since September last year. Fuel and light index moved up to 3.74 per cent as against 3.4 per cent in December, highest growth seen in last 5 months.

Fixed income markets continue to remain a state of flux after a series of events in Jan have made it more volatile. US 10 year Treasuries fell by almost 30-35bps from Jan end to trade at 2.11 levels as a spate of positive economic data led investors and traders exiting from bonds and were worried about a rate hike by the US Fed. Markets continue to remain focused on the outlook for Fed policy and after Fed Chairwomen’s testimony before Congress on 24th Feb indicated that Fed is no rush to hike rates and any rate action will become more data dependent. She indicated that Fed is fairly pleased with the US economy, particularly the labor market, international macroeconomic developments present some downside risk but it may be mitigated by the fall in crude prices and the QE from ECB and BoJ, inflation will be watched closely as it remains much below the target of 2 . On the other hand, European core countries like Germany, France and UK saw their 10 year yields hitting lifetime lows on account of ECB starting the QE from March and ECB indicating that it will buy bonds even if they give negative yields. Peripheral countries like Spain, Italy and Portugal saw their bonds rallying on account of the QE despite Spain and UK facing elections this year. However the fears of US Fed rate hike saw some sell off in emerging market yields as Brazil and India saw yields rising modestly while Chinese yields fell on account of a surprise rate cut by the central bank to boost its growth. Fixed Income markets in March will be more data dependent and as US Fed policy starts diverging from other major central bankers.

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In the monetary policy statement announced the RBI cut Repo rate by 25 bps to 7.50 per cent. The need to act outside the policy review cycle is prompted by two factors: First, while the next bi-monthly policy statement will be issued on April 7, 2015 the still weak state of certain sectors of the economy as well as the global trend towards easing suggests that any policy action

Fixed Income - India

Fixed Income

3

10 Year Benchmark Yields [%]Date/ 26-Feb- 13-Feb- 30-Jan- 15-Jan- 30-Dec- 15-Dec-

Countries 2015 2015 2014 20142015 2015US 2.01 2.02 1.68 1.78 2.19 2.12

UK 1.73 1.68 1.33 1.51 1.79 1.80

Japan 0.34 0.42 0.29 0.25 0.33 0.38

Spain 1.28 1.57 1.46 1.59 1.60 1.79

Germany 0.30 0.35 0.31 0.48 0.54 0.63

France 0.52 0.59 0.55 0.67 0.83 0.90

Italy 1.37 1.64 1.65 1.74 1.89 2.00

Brazil 12.65 12.59 11.97 12.16 12.43 12.70

China 3.36 3.40 3.51 3.57 3.65 3.77

India 7.74 7.70 7.69 7.70 7.87 7.84

Fixed Income - Global

Source: Reuters

The Index of Industrial Production (IIP) for the month of December came in at 1.7 per cent much lower than the market expectations of 1.9 per cent and below the 3.91 per cent seen in Nov 14. Average IIP growth for April-Dec 14 now stands at 2.09 per cent against 0.03 per cent growth in the same period last year. IIP expanded on the back of a modest growth in manufacturing sector which grew 2.06 per cent against a 3.14 per cent growth in Nov 14 and 1.10 per cent fall in Dec 13. Mining sector contracted by 3.16 per cent for the first time since Oct 13, while electricity sector slowed down drastically to 4.84 per cent against 9.97 per cent in Nov. Among the Use based classification, capital goods slowed down to a 4.13 per cent growth compared to a strong 6.62 per cent growth in Nov. Consumer goods turned positive after six months of continuous negative growth to 0.73 per cent against 2.09 per cent contraction in Nov. Core sector growth for Dec 14 came in at 2.4 per cent against 6.7 per cent.

India’s exports declined in January 2015 by 11.2 per cent on a y-o-y basis. This was the sharpest fall in exports in two-and-a-half years. In absolute terms, exports touched USD 23.88 bn the lowest level in 21 months. Imports fell by 11.4 per cent in January 2015 on a y-o-y basis. This was the first instance of a double-digit fall in eight months. In absolute terms, imports touched USD 32.2bn, the lowest level in four years. Imports had averaged at USD 38.91bn per month during April-December 14. India’s trade deficit fell by 12 per cent to USD 8.32bn Jan 15 on a y-o-y basis. This was the second consecutive month of a decline in the deficit. On a sequential basis, the deficit touched a 11-month low.

On fixed income side accrual products and short term income funds may be looked at as the potential for downward adjustment is more at the short end of the curve. The investment in Accrual funds may be done with a time horizon of 3 years to bring some stability to the overall portfolio returns. The Short Term Funds may also be looked at with a time horizon of 6 months to 1 year. Investment recommendation at this juncture is that investors who are already holding long term debt funds when yields were above 8 per cent should continue to hold as we expect the ten year benchmark yield to trend towards 7.15 per cent - 7.20 per cent by end of the year. Fresh investment into duration funds may be done at 7.80-7.90 per cent not exceeding 5-10 per cent of the portfolio.

Fixed Income

4

CP Food, beverages & tobacco

Source: CMIE

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-

14

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct

-14

Nov-

14

Dec-

14

Jan-

15

CPI & Food Inflation (%)13

5

3

789

101112

4

6

Core Sector Growth [%] IIP Growth [%]

Source: CMIE

8.00

-4.00

-2.00

Oct

-13

Nov-

13

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-

14

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct

-14

Nov-

14

Dec-

14

-6.00

0.00

2.00

4.00

6.00

Source: CMIE

Mar

-13

Apr-

13

May

-13

Jun-

13

Jul-1

3

Aug-

13

Sep-

13

Oct

-13

Nov-

13

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-

14

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct

-14

Nov-

14

Dec-

14

Jan-

15

WPI (%)8.8

0.8

-1.2

2.83.84.85.86.87.8

-0.2

1.8

Source: CMIE

IIP- Sector Wise Growth Rate (%)

Categories Dec-14 Nov-14 Dec-13 Weight

Sector-Wise

Mining 3.88 2.57 14.16%

Manufacturing 2.06 3.14 75.53%

Electricity 4.84 9.97 7.49 10.32%

Use based classification 100.00%

Basic goods 2.43 7.10 3.00 45.68%

Capital goods 4.13 6.62 8.83%

Intermediate goods 0.06 4.50 5.22 15.69%

Consumer goods 0.73 29.81%

Consumer durables 8.46%

Consumer non-durables 5.73 6.18 2.80 21.35%

IIP 1.73 3.91 0.11 100.00%

(3.16)

(1.10)

(2.45)

(2.09) (4.64)

(8.99) (14.46) (16.36)

Source: CMIE

CPI Rural, Urban and Combined (in %)

Rural Urban Combined

Jan-15 Dec-14 Jan-15 Dec-14 Jan-15 Dec-14 Weight

Food and beverages 5.69 4.89 6.93 5.43 6.13 5.06 45.86

Pan, tobacco and 7.54 7.09 10.11 11.53 8.21 8.36 2.38

Fuel & light 4.69 3.80 2.16 2.73 3.74 3.41 6.84

Clothing, bedding & 6.71 6.97 5.25 5.51 6.15 6.51 6.53

Housing - - 5.11 7.84 5.11 7.84 10.07

Miscellaneous 3.44 4.11 2.62 3.71 2.98 3.95 28.32

Headline 5.25 4.71 4.96 5.32 5.11 5.00 100.00

intoxicants

footwear

Global equity markets continued their good run into Feb as several factors supported the rally such as ECB announcing its QE program, a spate of positive economic data flows, reduction of tension in Ukraine, crude prices continuing to remain low, supportive policy actions by most central bankers and fears of Greece exiting from EU receded. Most of the European indices performed well during the month with Germany, France and Spain being the top gainers while among the emerging markets Brazil and China were the top gainers.

US Equities posted strong gains during Feb as all the three major indices rose around 5-6 per cent. Most indices are trading near life time highs and in Feb, nine of the ten S&P 500 sectors posted gains indicating a broad based gains. Top sectoral gainers was a mix of cyclical and defensives such as consumer discretionary, information technology and materials sectors.

Markets are rising on improving economic fundamentals coupled with rising investor confidence on US equities. The rally till now has been driven by improved earnings by its corporates coupled with the Fed driven liquidity and price earnings expansion. Going ahead markets may consolidate a bit after rising strongly in Feb as investors look at when US Fed may hike interest rates and the outlook very closely.

Some of the important factors which will influence equities in March and April will be the employment data, the March FOMC meeting, price of crude oil, domestic economic data and the global economic and geopolitical conditions. The latest employment data has been stronger than expectations and unemployment has fallen to 5.5 now, all eyes will be on

US Markets

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the FOMC meeting in March, where everyone will be watching the statement and the forward guidance.

Equity - India

Last month, domestic equity market witnessed strong support on every correction and largely remained in the range of 8750-8900. Even globally, the stock markets were largely trading in positive territory. Markets were awaiting two key events last month a) Railway Budget and b) Union Budget which are now behind us. Modi’s 1st full budget is growth oriented with Infra spending being the key theme. Slow pace of FD cut gives headroom to invest in Infra. Raft of measures were announced with focus on Make in India initiative and attracting foreign capital. Budget laid emphasis on structural reforms along with financial inclusion staying clear of subsidizing the economy though populist schemes – a key positive. Budget will help stroke pvt investment which has fallen to multi year low.

Meanwhile Auto and Metal stocks are likely to remain in limelight as monthly numbers start flowing in and Chinese central bank cut interest rates over the weekend. Internationally, the crude oil and commodities continue to remain volatile on the back of various news flow and policy flip-flops emanating from Iran, Greece, Russia, US and China.

Coal block auction and spectrum auction begin later driving the month and can espect existing operators to slug it out to retain their 900mhz spectrum in circles that go for bids with Govt expected to make ~ Rs. 1000 bn. FPI flows YTD stand @ $4.3 bn – 2nd highest among 8 Asian mkts tracked by Bloomberg. We believe the positive bias is expected to continue as budget is over and the government has laid a clear road map and set the tone for the maekets. We continue our bullish stance on the markets and expect a 12-15 CAGR returns over the next 5 years.

Auto: Current monthly numbers were a mixed bag with: Hero MotoCorp Feb. sales were tows-3.9 YoY to 484,769 units. TVS Motor Feb sales +15 YoY to 204,565 units. MnM auto sales 38,033 units vs 42,166 YoY. Fall in commodity prices and rate cuts will spur additional demand for auto companies. Favourable currency and likely revival of consumer demand in developed and other emerging countries will give boost to exports. Maruti, Eicher Motors, Tata Motor, Hero Moto and TVS are expected to benefit on account of revival in consumer sentiments. Investors can also look at few auto-ancillary names like Munjal Showa, Greaves Cotton, Motherson Sumi, Wabco, ZF Steering, etc, which are likely to benefit from export as well as revival in domestic market.

Capital Goods/Infra: Budget 2015-16 has come out with various measures like a) National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of ̀ 200bn to it. b) Gross Budgetary Support (GBS) for the Railways has been pegged at Rs. 400bn. c) 5 new Ultra Mega Power Projects, each of 4000 MW, in the Plug-and-Play mode and slew of other measures which will revive the overall demand and investment cycle in the capital

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Sectoral Outlook

Equity Markets

5

Equity - Global

Source: ACE MF Performance as on 28th February 2015

BEL-20 (Belgium) 5.22 19.94Bovespa (Brazil) 9.97 9.53 CAC 40 (France) 7.54 12.33 CNX Nifty Index (India) 1.06 41.82 DAX (Germany) 6.61 17.64 Dow Jones (USA) 5.64 11.10 FTSE 100 (UK) 2.92 2.01 Hang Seng (Hong Kong) 1.29 8.70 Jakarta Composite (Indonesia) 3.04 17.97 KLSE Composite (Malaysia) 2.24 Madrid General (Spain) 7.71 9.53 Nasdaq (USA) 7.08 15.21 Nikkei 225 (Japan) 6.36 26.66 S&P BSE SENSEX (India) 5.49 13.18 S&P 500 (U.S.A.) 0.61 39.02 Seoul Composite (S.Korea) 1.87 0.29 Shanghai Composite (China) 3.11 0.51 Straits Times (Singapore) 0.34 9.39 Swiss Market (Switzerland) 7.51 6.36Taiwan Weighted (Taiwan) 2.78 11.37

(0.79)

1 Year

CAGR (%)Absolute Returns (%)

1 MonthIndices

Equity Markets

goods and infra space. Governments “Make in India” initiative seems to gather momentum and is likely to be a key growth driver going forward. High Interest cost regimes seems to have come to an end which will further aid the profitability in the medium to long term. Overall FY15 seems to be a muted year and situation should improve FY16 onwards.

Consumer: Government is taking various initiatives to boost local manufacturing and recently also issued instructions for all PSU have to buy LED’s instead of CFL’s. During the budget Excise duty was reduced from 12 to 6 for Inputs used in the manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps which will lead to higher use of LED’s which are more efficient then CFL’s. One another key announcement was Increase in excise duty in the range of 15-30 for various size of cigarettes which was higher then street estimates and subdued industry cigarette volumes are likely to come under further pressure, as cigarette companies will pass-on the increased tax burden to consumers. Consumer sentiments continue to remain weak, especially in discretionary category. Benefits of lower commodity prices will be reflected in 2HFY15. In long run the sector will continue to grow at CAGR of 12-15 , led by rise in disposable income of middle and bottom of the pyramid population. In short to medium term, we believe discretionary/ consumer cyclical players will do well, led by likely revival in consumer sentiments. Despite rich valuations, we believe money making opportunities still remain in select niche businesses with strong pricing power, strong distribution network and brand

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franchisees. Our top picks are HUL, Marico, Dabur, Pidilite, Asian Paints and United Spirits.

Financials: Downward trajectory in interest rates has begun which shall lower the cost of funds for banks and NBFC. Here, we believe the banks & NBFC having i) high proportion of bulk deposit, ii) high proportion of fixed rate loan book and iii) the companies having pricing power to retain the benefit of lower cost of fund shall benefit the most. Credit growth will remain modest at 12-14

as economic reforms and policies take a while to revive the capex cycle. Besides, i) CP rates are far lower at ~8-8.5 which is used by corporates for borrowing rather than bank loan and ii) Lower tier 1 ratio of PSU banks would limit their ability to lend. We expect private banks to grab significant market share from their PSU counterparts in the years to come. NPAs of private sector banks continue to remain at manageable levels while for PSU banks, stress may continue for another couple of quarters. Overall, we prefer banks and NBFC that are likely to benefit from fall in interest rate. Yes Bank and Indusind are major beneficiaries. Within the NBFC space, we prefer HDFC Ltd, Dewan Housing and Bajaj Finance.

Pharma: Majority of the Pharmaceutical companies have come out with in line street expectations results in Q3FY15 mainly led by strong sales growth registered in the domestic formulations after witnesing a slower growth over the past few quarters due to price cuts on essential medicines. US formulations business grew at a slower pace during the quarter primarily on account of delay in approvals from USFDA, however long term growth prospects are well intact. Revenue from emerging markets have also shown steady improvement over past few quarters. US market will continue to provide significant growth opportunities for Indian Pharma companies as huge number of ANDA filings are pending for approvals which also include complex generics (high margin & low competition drugs). Companies with strong ANDA pipeline pending with USFDA are tend to perform better in the short to medium term.

Power: Government has got a very strong response for the 1st round of coal block auction and the 2nd round of auction will begin this week. The main focus is to revive the ailing sector by getting the stranded projects on stream. Govt is also focusing on non-conventional sources to generate power and reduce power deficit and has set a target of renewable energy capacity of 175000 MW till 2022(100000 MW Solar, 60000 MW Wind, 10000 MW Biomass and 5000 MW Small Hydro). Overall Power sector had been marred on account of under recoveries which put stress on their financials and balance sheet. However, recent government steps and cooling off of coal prices from their highs are likely to benefit these companies in medium to long term. The sector is likely to benefit from the increased clarity on the regulatory hurdle front and reforms undertaken by the centre. PLF is expected to pick up on back of improved clarity on fuel linkage.

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6

CNX Nifty Index 1.06 7.48 41.82S&P BSE 100 1.03 7.47 44.23S&P BSE 200 0.92 7.19 47.29S&P BSE 500 0.95 6.83 48.57S&P BSE AUTO Index -0.02 7.26 58.61S&P BSE BANKEX -0.63 5.20 83.76S&P BSE Capital Goods 4.00 15.14 71.36S&P BSE Consumer Durables -2.51 7.39 74.55S&P BSE FMCG -0.64 5.87 26.81S&P BSE Health Care 1.20 7.91 46.26S&P BSE IT 7.07 13.09 22.23S&P BSE METAL Index 3.72 -1.70 22.04S&P BSE Mid-Cap 0.67 4.23 66.31S&P BSE OIL & GAS Index -4.51 -2.12 14.95S&P BSE Power Index 2.00 8.44 48.45S&P BSE PSU -1.25 -1.51 46.92S&P BSE Realty Index 0.58 17.16 51.39S&P BSE SENSEX 0.61 6.77 39.02S&P BSE Small-Cap -0.55 1.62 74.81S&P BSE TECk Index 4.68 9.96 22.11

Source : ACE MF Performance as on 28th February 2015

1 Year

CAGR (%)Absolute Returns (%)

1 Month YTDIndices

Precious MetalsGold and silver prices nose-dived during February following dollar rally and positive economic data from US which led stock market rally and lured investors away from the yellow metal. Gold fell by around 5 per cent and silver fell by around 4 last month.On the domestic policy front, India, the biggest user of gold after China, did not touch on any rules over gold import duty in Budget, which was largely expected by most of the investors. This led to expectation of dull demand from India.Looking at overall scenario, the underlying fundamentals are pointing towards a bearish scenario for gold and hence we would look to remain on sell side at any bounce in the market from positional perspective. For short term basis, daily economic data will pave the way for intraday trading.As per the recent gold demand numbers released by World Gold Council, gold demand in 2014 dropped by 4 to 3,923.7 MT. But the demand recovered during 4th quarter from key consumers: India and China. The 4th quarter demand was higher by 6 on yearly basis against Q4’13 demand. Having suffered weak year-on-year comparisons for much of 2014, jewellery demand rallied to a strong finish, reaching 575 T in the fourth quarter – 1 higher than Q4 2013. The sector was buoyed by good festival- and wedding-related demand in India, as well as by the seasonal holiday effect in the US and UK. Global annual jewellery demand of 2,152.9 T, although down 10 year-on-year, was above the five-year average by a comfortable 5 margin.From an overall perspective, we expect gold to remain choppy. Prices will be driven by FOMC comments, dollar movements, physical demand from China and India. We expect that prices will remain under pressure as the recent comments from FOMC member indicated that an interest rate hike is on the cards. Also with the Greece issue being resolved, now safe haven demand for gold is reduced for short term. Any rally will likely be short lived until the safe haven demand for gold resurfaces amidst geopolitical tension or strong physical demand.Technical View: Trend is bearish. Prices are having resistance at 26,600 and 26,250 at MCX and at $1,190 at COMEX. Till prices hold below 26,600 this week we will look to remain on sell side at any bounce towards 26,250. Breach of 26,600 is important to take prices up. Breach of 25,950 is important to create fresh selling positions and this can take prices down towards 25,600.Silver trend is looking down at MCX and Comex. Silver prices are likely to take resistance around $16.30 on Comex and 36,500 at MCX. Any bounce towards 36,200-36,400 can be taken as selling opportunity. Important support now is at 35,700 for this week and breach of this level is important to take prices further down towards 34,600-34,200.

per cent

per cent

per cent

per cent

per centper cent

Copper prices traded positively throughout the month of February 2015, as prices continued their strong recovery after hitting their 5-1/2 year lows in the month of January 2015. The recent prices gains remained supported by a series of

Base Metals

production cuts at major mines, after prices on LME fell below $5,500 per ton, while a smart recovery in the benchmark Brent oil prices from below $45 per barrel to above $60 added further support to the prices gains.However, rising inventory levels at LME warehouses and sluggish Chinese demand continued to weigh on the sentiments and capped major gains. Also strength in U.S. dollar in the international market added further support to the metal prices.The International Copper Study Group (ICSG) has forecasted that demand for copper will grow this year, but only by 1.1 per cent. Production will rise 4.3 per cent, led by output increases in Africa, Asia and North America, leaving a surplus of 393,000 tons by the end of the year, the first positive annual balance since 2009.The refined copper market balance in the first 11-months of 2014 was in apparent production deficit of nearly 640,000 tons, with the world refined production increasing by nearly 8 per cent, copper mine production increasing by around 1.5 per cent and global usage of the metal estimated to have increased by over 10 per cent, boosted by robust demand from China, as per ICSG.In the month of March 2015, copper prices may witness some buying support at lower level, with China’s buying post New Year holidays, while movement of various economic indicators such as manufacturing PMI/ industrial output data, home sales and employment data and Chinese demand will give further direction to the copper prices. However, production cuts by key mining companies like BHP and Barrick is likely to keep prices firm.Looking ahead, copper prices are expected to trade on a positive path and can trade in range of 330-395 in short-term.Zinc prices traded with negative bias in the month of February 2015 and moved in range of 126.1-134.85 on the exchange counter, mainly due to slow demand from China while estimates of lower growth by IMF pressurized some of the metal prices.Although prices remained under selling-pressure, but steep losses as seen in other metals like copper/ lead/ aluminum - the same was not seen in case on zinc as the overall fundamentals of the metal are still strong due to supply shortages and despite modest growth in the consumption demand.Zinc stocks at major exchange warehouses are witnessing good draw downs, while new mine supplies are not expected to improve anytime soon as prolonged low prices have discouraged new investments and existing mines are ageing with at least two riously affected. If this scenario continues, then over the next 2-years, zinc inventories will start depleting faster.The global zinc market is estimated to close the year 2015 with a deficit of 400,000 tons, while in the year 2015 and 2016, this deficit is expected to widen further by over 25 per cent - suggesting that going forward the metal prices are likely to trade firm.Moving ahead, in the month of March 2015 zinc prices are expected to trade in the range of 122-138, with some buying support expected at lower levels.

Commodities

7

Currency markets continue to be volatile as they are influenced by various factors such as divergence in monetary policy among developed markets, fall in commodity prices hitting commodity dependent countries, intense focus by traders and investors on the guidance from US Fed regarding its monetary policy normalization, global disinflationary pressures and political crisis in Middle East and Ukraine.

USD is expected to remain strong and resilient for rest of the year and will remain the most preferred reverse asset in times of distress and stability in the global economy. Strong economic growth in US coupled with interest rate differentials and liquidity in the US debt and equity markets may see more inflows and keep the USD strong. There were some worries that USD strengthening may hit the earnings of US corporates and exports but the broader economy remains strong and is less reliant on exports coupled with the fall in oil prices which stimulate more domestic spending by consumers. USD will go through some phases of corrections but the medium term trend is one of strengthening. According to the latest CFTC data for the week ended 3rd March, leveraged funds reduced their overall net long USD positions by USD 1.6bn to USD 36bn and given the rise in the DXY index and strong Feb employment data, there may be an increase in long positions.

EUR after depreciating in Jan’15 consolidated in Feb and remained fairly stable as it torn between a possible Greek exit, a slight improvement in economic data and negative interest rates that saw EUR outflows. EUR has fallen by more than 9 per cent this year and will remain under downward pressure as ECB starts its QE from March to the tune of EUR 60bn every month till Sept’15. There are some signs of economic improvement as a range of indicators point towards a modest cyclical recovery in 2015. According to the latest CFTC data, net short positions in EUR reduced to USD 20bn from USD 20.8bn previously as traders reduced their positions ahead of the ECB meeting. With EUR/USD breaking 1.10 levels, the next data is expected to show rebuilding of short positions towards record highs and EUR may hit parity against the USD by end of this year.

JPY remained in a tight range in Feb with a depreciating bias. Economic fundamentals continue to remain weak as the monetary expansion failed to boost growth. Sentiment continues to remain bearish among investors and traders. According to the latest CFTC data, net short position in JPY has reduced to USD 5.1bn and is the third consecutive week of reduction in short positions amid reports that further monetary

easing to shore up inflation may turn counterproductive. JPY is expected to remain weak and head towards 123-125 levels by end of the year.

Rupee remained stable among the emerging market currencies on account of positive economic data, expected policy easing by the central banker, inflation remaining weak, government committed to a fiscal path and the current account deficit expected to be low because of the crude oil fall. Foreign investors however continue to remain bullish on India and have invested almost USD 10bn in the first two months of CY 15 compared to USD 4.bn in the same period last year. Rupee is expected to track the global cues and may weaken if the USD strengthens further.

Currency Markets

8

Source: Reuters

Currencies 31-Oct-14 28-Nov-14 31-Dec-14 30-Jan-15 27-Feb-15

INR 61.36 62.03 63.03 61.86 61.83Euro 1.25 1.25 1.21 1.13 1.12JPY 112.30 118.61 119.68 117.44 119.51GBP 1.60 1.56 1.56 1.51 1.54CHF 0.96 0.97 0.99 0.92 0.95AUD 0.88 0.85 0.82 0.78 0.78

Source: Reuters

USD/INR

55.00

40.00

50.00

45.003-

Jan-

1117

-Feb

-11

3-Ap

r-11

18-M

ay-1

12-

Jul-1

116

-Aug

-11

30-S

ep-1

114

-Nov

-11

29-D

ec-1

112

-Feb

-12

28-M

ar-1

212

-May

-12

26-J

un-1

210

-Aug

-12

24-S

ep-1

28-

Nov-

1223

-Dec

-12

6-Fe

b-13

23-M

ar-1

37-

May

-13

21-J

un-1

35-

Aug-

1319

-Sep

-13

3-No

v-13

18-D

ec-1

31-

Feb-

1418

-Mar

-14

2-M

ay-1

416

-Jun

-14

31-J

ul-1

414

-Sep

-14

29-O

ct-1

413

-Dec

-14

27-J

an-1

5

60.00

65.00

70.00

75.00

Source: Reuters

EUR/USD1.51

1.31

1.21

3-Ja

n-11

17-F

eb-1

13-

Apr-

1118

-May

-11

2-Ju

l-11

26-A

ug-1

130

-Sep

-11

14-N

ov-1

129

-Dec

-11

12-F

eb-1

228

-Mar

-12

12-M

ay-1

226

-Jun

-12

10-A

ug-1

224

-Sep

-12

8-No

v-12

23-D

ec-1

26-

Feb-

1323

-Mar

-13

7-M

ay-1

321

-Jun

-13

5-Au

g-13

19-S

ep-1

33-

Nov-

1318

-Dec

-13

1-Fe

b-14

18-M

ar-1

42-

May

-14

16-J

un-1

431

-Jul

-14

14-S

ep-1

429

-Oct

-14

13-D

ec-1

427

-Jan

-151.16

1.36

1.46

1.41

1.26

Source: Reuters

GBP/USD

1.50

1.75

1.55

1.45

3-Ja

n-11

17-F

eb-1

13-

Apr

-11

18-M

ay-1

12-

Jul-

1126

-Aug

-11

30-S

ep-1

114

-Nov

-11

29-D

ec-1

112

-Feb

-12

28-M

ar-1

212

-May

-12

26-J

un-1

210

-Aug

-12

24-S

ep-1

28-

Nov

-12

23-D

ec-1

26-

Feb-

1323

-Mar

-13

7-M

ay-1

321

-Jun

-13

5-Au

g-13

19-S

ep-1

33-

Nov

-13

18-D

ec-1

31-

Feb-

1418

-Mar

-14

2-M

ay-1

416

-Jun

-14

31-J

ul-1

414

-Sep

-14

29-O

ct-1

413

-Dec

-14

27-J

an-1

5

1.60

1.65

1.70

Core Schemes

9

Source : ACE MF

Axis Equity Fund

Investment Objective: To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities including derivatives.

The Fund is 5 years old with 80 to 100 per cent allocation into Equity and Equity Related instruments, while 0 to 20 per cent into Debt and Money market Instruments. The Fund invests in a diversified portfolio of strong growth companies with sustainable business models. The Fund has generated one year CAGR of around 48.97 per cent and has outperformed its benchmark CNX Nifty Index by 7.16 per cent points as on 28th February 2015.

1 Clearing Corporation Of India Ltd. 2.772 Bharti Airtel Ltd. 1.963 Cummins India Ltd. 1.574 DCB Bank Ltd. 1.335 CMC Ltd. 1.306 Grasim Industries Ltd. 1.107 Bata India Ltd. 1.098 CRISIL Ltd. 0.929 DB Corp Ltd. 0.9210 Crompton Greaves Ltd. 0.52

No. Company Name (%)Holding

Birla SunLife Frontline Equity Fund

Investment Objective: An open-end growth scheme with the objective of long term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and or sectors as its chosen benchmark index, BSE 200.

The Fund is in existence for more than a decade and has generated a one year CAGR of around 56.43 per cent as on 28th February 2015 outperforming its benchmark S&P BSE 200 over one, three and five years time-horizon. The fund has been in the top quartile in both good and bad market cycles and has delivered consistent and stable growth. It will target the same sectoral weights within its equity portfolio as the benchmark index but the scheme shall have the flexibility of selecting stocks within a particular sector from a wider investment universe.

1 Maruti Suzuki India Ltd. 1.902 Motherson Sumi Systems Ltd. 1.803 Power Grid Corporation Of India Ltd. 1.624 Muthoot Finance Ltd. 1.105 Oil & Natural Gas Corporation Ltd. 1.036 NTPC Ltd. 0.697 Procter& G ambleH ygiene& H ealthC areL td. 0.298 Nestle India Ltd. 0.299 Oberoi Realty Ltd. 0.2810 Other Derivaties 0.27


Franklin India High Growth Companies Fund

Investment Objective: This is an open ended diversified equity fund. The primary investment objective of the scheme is to achieve capital appreciation through investments in Indian companies / sectors with potential of high growth.

The fund seeks to invest into companies that tend to grow earnings at a fast pace and offer the best trade-off between growth, risk and valuation. The fund is suitable for investors who prefer investments across market caps with investment horizon of 3-5 years. The fund has generated three year CAGR of 35.60 per cent as of 28th February 2015 and has out-performed its benchmark for three and five years time horizon.

1 Idea Cellular Ltd. 4.462 ICICI Bank Ltd. 3.333 HDFC Bank Ltd. 3.274 Glaxosmithkline Consumer Healthcare Ltd. 2.155 FAG Bearings India Ltd. 1.756 Gateway Distriparks Ltd. 1.537 EIH Ltd. 1.378 JK Lakshmi Cement Ltd. 1.239 Hitachi Home & Life Solutions (India) Ltd. 0.8810 Ipca Laboratories Ltd. 0.48


HDFC Top 200 Fund

Investment Objective: The investment objective of the Scheme is to generate long term capital appreciation from a portfolio of equity and equity linked instruments. The investment portfolio for equity and equity linked instruments will be primarily drawn from the companies in the BSE 200 Index.

The Fund is in existence for more than 18 years and has witnessed both the bullish and bearish cycles. The Scheme may also invest in listed companies that would qualify to be in the top 200 by market capitalisation on the BSE even though they may not be listed on the BSE. The fund has generated one year CAGR of 53.86 per cent as on 28th February 2015 outperforming its benchmark S&P BSE 200 by 6.57 per cent for the same period.

1 Reliance Industries Ltd. 3.332 Rural Electrification Corporation Ltd. 1.053 Power Grid Corporation Of India Ltd. 1.044 Oracle Financial Services Software Ltd. 1.015 Oil India Ltd. 0.806 Punjab National Bank 0.807 Oriental Bank Of Commerce 0.428 Power Finance Corporation Ltd. 0.379 Procter & Gamble Hygiene & Health Care Ltd. 0.3010 Petronet LNG Ltd. 0.18


Top 10 Sector Holdings (%)

Bank - Private

Construction - Real Estate

Automobiles-Tractors

Automobiles - Passenger Cars

Cigarettes/Tobacco

Auto Ancillary 0.53

19.74

4.374.23

3.392.53

2.081.2

1

0.97

Breweries & Distilleries

Bearings

Bank - Public

Automobiles-Trucks/Lcv


5.51

4.09

2.31

1.82

1.30

0.640.62

0.54

0.31

0.02

Telecommunication - Service Provider

Refineries

Tv Broadcasting & Software Production

Power Generation/Distribution

Pharmaceuticals & Drugs

Pesticides & Agrochemicals

AirlinesPort

Printing And Publishing

Unspecified


10.90

7.11

7.05

2.79

2.57

2.302.02

1.53

1.37

0.88

IT - Software

Telecommunication - Service Provider

Electronics - ComponentsPesticides & Agrochemicals

Finance - NBFC

Paints

Logistics

Hotel, Resort & Restaurants


Air Conditioners


13.82

13.78

4.53

3.78

2.62

1.800.54

0.42

0.09

0.01

Bank - Private

Bank - Public

Automobiles - Passenger Cars

Automobiles-Trucks/LcvCigarettes/Tobacco

Cement & Construction Materials

Air Conditioners

Automobiles-Tractors

Aluminium & Aluminium Products

Castings/Forgings

Core Schemes

10

Source : ACE MF

Reliance Focused Large Cap Fund

Investment Objective: The primary investment objective of the scheme is to seek to generate capital appreciation and provide long term growth opportunities by investing in a portfolio constituted of equity and equity related securities of top 100 companies by market capitalization and of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities.

The scheme is in existence for 8 years and it intends to reduce volatility and reduce downside risks by using innovative P/E based hedging/shorting strategies. The fund aims to create a focused portfolio consisting of 25 stocks primarily investing in the Top 100 companies by market capitalization. The fund has generated return of 47.56 per cent one year CAGR as on 28th February 2015 in comparison of its benchmark CNX Nifty Index of 41.81 per cent for the same tenure.

1 State Bank Of India 6.492 Ultratech Cement Ltd. 6.073 Maruti Suzuki India Ltd. 4.674 Tata Motors Ltd. 4.595 Max India Ltd. 3.966 Siemens Ltd. 3.457 Reliance Industries Ltd. 2.988 NTPC Ltd. 2.689 Oil & Natural Gas Corporation Ltd. 2.5210 Zee Entertainment Enterprises Ltd. 1.49


Tata Pure Equity Fund

Investment Objective: Aims to provide income distribution and/ or medium to long term capital gains while all times emphasizing the importance of capital appreciation.

The Fund has a track record of 16 years which focuses on investing in fundamentally strong and undervalued large cap companies. The Fund adopts a mix of top down and bottom up approach to stock picking with a bias towards bottom up approach. The fund has locked in one year CAGR of 46.69 per cent as of 28th February 2015.

1 Infosys Ltd. 4.742 ICICI Bank Ltd. 4.453 Housing Development Finance Corporation Ltd. 4.274 Maruti Suzuki India Ltd. 3.735 ITC Ltd. 3.626 Lupin Ltd. 2.867 Larsen & Toubro Ltd. 2.568 Power Grid Corporation Of India Ltd. 2.319 Mahindra & Mahindra Ltd. 1.4810 Oil & Natural Gas Corporation Ltd. 1.44


Kotak Select Focus Fund

Investment Objective: An open-ended equity scheme that aims to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors.

The fund is in existence from September 2009 and has locked in one year CAGR of 66.89 per cent as on 28th February 2015 as against its benchmark CNX 200 which stands at 47.10 per cent. The selection of sectors would be driven primarily by the growth prospects and valuations of the businesses over a medium to long term. The Fund has performed consistently over different market cycles.

1 Tata Motors Ltd. 3.922 Tech Mahindra Ltd. 3.183 Ultratech Cement Ltd. 2.764 Tata Consultancy Services Ltd. 1.785 Yes Bank Ltd. 1.716 The Federal Bank Ltd. 1.547 Sun Pharmaceutical Industries Ltd. 0.888 AIA Engineering Ltd. 0.879 The Ramco Cements Ltd. 0.7410 Whirlpool Of India Ltd. 0.50


ICICI Pru Focused BlueChip Equity Fund

Investment Objective: To generate long-term capital appreciation and income distribution to unit holders from a portfolio that aims for growth from a focused and optimally diversified portfolio by investing in equity and equity related securities, companies belonging to the large cap domain.

The Fund has locked a one year CAGR of 50.24 per cent vis-à-vis its benchmark CNX Nifty Index of 41.81 per cent as on 28th February 2015. It is new fund as compared to the long tenure of the peers in the diversified equity category and adopts bottoms up approach; it has performed in line with the peers and has out-performed its benchmark over one, three and five year time-horizon. The Fund Manager will always select stocks for investment from among Top 200 stocks in terms of market capitalization on the NSE.

1 Axis Bank Ltd. 4.082 State Bank Of India 3.663 Tech Mahindra Ltd. 3.444 Wipro Ltd. 3.365 Tata Motors Ltd. 3.116 United Spirits Ltd. 2.437 ACC Ltd. 1.088 ABB India Ltd. 0.739 Steel Authority of India Ltd. 0.2310 Sundaram Finance Ltd. 0.16

No. Company Name (%)Holding Top 10 Sector Holdings (%)

22.80

5.19

3.11

2.64

2.43

2.402.15

1.43

1.33

0.14

Bank - Private

Automobiles - Tractors

Bank - public


Castings/ForgingsAutomobiles - Passenger Cars

Breweries & Distilleries


Auto Ancillary

Cash and Cash Equivalents


16.72

7.77

7.00

3.92

3.85

2.392.36

2.2

2.08

0.12



Auto Ancillary

Bank - public

Bank - Private

Cigarettes/Tobacco

Automobiles - passenger CarsAutomobile Two & Three Wheelers

Tyres & Allied

Compressors / Pumps

Telecommunication - Service provider


11.679.71

6.07

4.67

4.593.95

3.37

2.671.49

0.35

Bank - PrivateBank - Public

Cement & Construction MaterialsAutomobiles - Passenger Cars

Airlines

TextileAutomobiles-Trucks/Lcv

Tv Broadcasting & Software ProductionCash and Cash Equivalents

Engineering - construction


IT - SoftwareFinance - Housing

Electronic - ComponentsElectric Equipment

Diversified

Finance - NBFC

Logistics

Index

Consumer Food

13.834.273.92

2.642.56

2.472.160.990.60

0.10

Core Schemes

*Risk-free rate assumed to be 7.98%**Standard Deviation and Treynor Ratio are calculated on annualised basis using 3 year historical data of monthly returnsSource: ACEMFColour code for all the above schemes is BROWN. Please refer to page no. 25 for product labels and other risk related information.

Scheme Recommendations

11

Exit Load1% on or

before 1Y, Nil after 1Y

1% on or before 12M, Nil after 12M


1% on or before 1Y, Nil after 1Y

HDFC Top 200 Fund(G)

ICICI Pru Focused

BlueChip Eq Fund-Reg(G)

Kotak Select Focus Fund(G)

Fund Manager Pankaj Murarka Mahesh Patil Prashant Jain

& Rakesh Vyas

Manish Gunwani &

Shalya Shah

Harsha Upadhyaya

R. Janakiraman & Roshi Jain

Pradeep Gokhale &

Nainesh Rajani

Omprakash Kuckian

Scheme Name Axis Equity Fund(G)

Birla SL Frontline

Equity Fund(G)

Franklin India High Growth Cos Fund(G)

Tata Pure Equity Fund(G)

Reliance Focused Large Cap Fund(G)

1% on or before 2Y

1% on or before 365D



Benchmark Name CNX Nifty Index CNX 500 IndexS&P BSE 200 S&P BSE 200 CNX Nifty

IndexCNX Nifty

IndexCNX 200 S&P BSE SENSEX

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 31.39 35.47 37.82 35.47 31.39 35.53 31.39 29.89

Dec 31, 2012 to Dec 31, 2013 6.76 4.38 3.61 4.38 6.76 4.44 6.76 8.98

Dec 31, 2011 to Dec 31, 2012 27.53 30.79 31.65 30.79 27.53 31.45 27.53 25.54

Current Value of Investment of INR 10,000 if invested from

Dec 31, 2013 to Dec 31, 2014 13,139 13,547 13,782 13,547 13,139 13,553 13,139 12,989

Dec 31, 2012 to Dec 31, 2013 10,676 10,438 10,361 10,438 10,676 10,444 10,676 10,898

Dec 31, 2011 to Dec 31, 2012 12,753 13,079 13,165 13,079 12,753 13,145 12,753 12,554

Quaterly AAUM (Rs. Crs.) Dec-2014 1,324 7,378 1,134 13,543 8,014 1,291 1,119 772

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 40.85 44.72 79.58 46.52 41.10 57.87 37.33 36.05

Dec 31, 2012 to Dec 31, 2013 13.49 9.25 9.22 4.05 10.21 6.13 9.25 7.96

Dec 31, 2011 to Dec 31, 2012 31.54 35.85 42.27 32.23 26.63 33.24 41.02 28.29

Since Inception till Dec 31, 2014 14.10 24.99 15.11 22.66 17.25 16.21 9.71 23.72


Dec 31, 2013 to Dec 31, 2014 14,085 14,472 17,958 14,652 14,110 15,787 13,733 13,605

Dec 31, 2012 to Dec 31, 2013 11,349 10,925 10,922 10,405 11,021 10,613 10,925 10,796

Dec 31, 2011 to Dec 31, 2012 13,154 13,585 14,227 13,223 12,663 13,324 14,102 12,829

Since Inception till Dec 31, 2014 19,310 157,040 28,483 422,972 28,630 22,192 22,529 347,059

Inception Date 5-Jan-10 30-Aug-02 26-Jul-07 3-Sep-96 23-May-08 11-Sep-09 28-Mar-06 7-May-98

Ratios

SD (%) 14.84 16.41 17.39 19.90 15.03 16.45 18.46 13.60

Treynor 1.5897 1.5489 2.3829 1.1615 1.3542 1.7286 1.2975 1.2961

Satellite Schemes

12

Source : ACE MF

Axis Midcap Fund

Investment Objective: An open ended equity scheme. The primary investment objective of the scheme is to achieve long term capital appreciation by investing predominantly in equity & equity related instruments of mid size companies. The focus of the fund would be to invest in relatively larger companies.

The scheme had been launched in Feb-2011. The scheme predominantly will invest in the mid-sized companies that have the potential to offer more returns than the usual large blue chip companies. The portfolio will be built utilizing a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The Fund has generated one year CAGR of around 84.66 per cent and has outperformed its benchmark S&P BSE Mid-Cap Index by 18.35 per cent as on 28th February 2015.

1 Clearing Corporation Of India Ltd. 4.702 DCB Bank Ltd. 3.483 Gujarat State Petronet Ltd. 3.264 Pfizer Ltd. 3.055 NIIT Technologies Ltd. 2.406 Eicher Motors Ltd. 2.207 Gateway Distriparks Ltd. 2.198 Mahindra Holidays & Resorts India Ltd. 2.149 ICRA Ltd. 2.1310 CMC Ltd. 2.06


Canara Rob Emerg Equity Fund-Reg Fund

Investment Objective: An open-ended equity fund with the objective to generate capital appreciation by primarily investing in diversified mid-cap stocks.

The scheme aims to generate capital appreciation by investing in equity related instruments. The fund would follow a bottom-up approach by identifying companies with strong competitive position in good business and having quality management. The fund is being into existence for more than 9 years and has managed to outperform its benchmark CNX Midcap over one, three and five year time horizon. The fund has generated three year CAGR of 37.94 per cent, compared to 19.87 percent to the benchmark CNX Midcap as on 28th February 2015

1 IndusInd Bank Ltd. 3.042 Yes Bank Ltd. 3.003 Persistent Systems Ltd. 2.194 Ashoka Buildcon Ltd. 2.165 Aditya Birla Nuvo Ltd. 2.106 Dish TV India Ltd. 2.097 Century Plyboards (India) Ltd. 2.088 The Federal Bank Ltd. 2.079 Gulf Oil Lubricants India Ltd. 2.0110 Texmaco Rail & Engineering Ltd. 1.99


Franklin India Prima Fund

Investment Objective: An open-end growth scheme with an objective to provide medium to long term capital appreciation as a primary objective and income as a secondary objective. The fund manager seeks aggressive growth by focusing primarily on mid and small cap companies.

The Fund has a long track record for nearly 20 years. The scheme follows a blend of value and growth style of investing. The fund will follow a bottom-up approach to stock-picking and choose companies across sectors. It has generated a one year CAGR of 88.51 per cent as on 28th February 2015 and has out-performed both its benchmark CNX 500 Index and CNX Midcap over one, three and five year time-horizon.

1 Yes Bank Ltd. 4.802 Finolex Cables Ltd. 3.213 Amara Raja Batteries Ltd. 3.164 Mindtree Ltd. 2.715 FAG Bearings India Ltd. 2.626 IndusInd Bank Ltd. 2.577 Cyient Ltd. 2.568 Axis Bank Ltd. 2.419 HDFC Bank Ltd. 2.1910 Kansai Nerolac Paints Ltd. 2.04


HDFC Mid-Cap Opportunities Fund

Investment Objective: The aim of the fund is to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small and mid-cap companies.

The Fund has given one year CAGR of 74.63 per cent as on 28th February 2015. Over fund’s seven year period, fund has given consistent returns and has out-performed the benchmark CNX Midcap which helped the fund to place itself in the upper quartile of the midcap diversified equity funds.

1 Bajaj Finance Ltd. 2.842 Axis Bank Ltd. 2.453 Amara Raja Batteries Ltd. 2.354 Mindtree Ltd. 2.325 Bayer CropScience Ltd. 2.236 AIA Engineering Ltd. 2.217 Hindustan Petroleum Corporation Ltd. 2.108 ING Vysya Bank Ltd. 2.109 Whirlpool Of India Ltd. 2.0210 Divis Laboratories Ltd. 2.01



Bank - Private


Finance - Investment

Automobiles-Trucks/LcvGas Trasmission/Marketing

Air Conditioners

Finance - NBFC

Bearings

Fertilizers

Bank - Public

10.72

9.34

6.93

4.09

4.02

3.68

3.35

3.16

3.01

2.96


11.19

7.54

5.33

4.95

4.70

4.31

4.19

4.19

3.22

2.58

Bank - Private

IT - Software

Engineering - Construction

Auto Ancillary

Engineering

Textile

Construction - Real Extate

TV Broadcasting & Software Production




15.98

6.56

4.66

4.65

4.41

4.13

3.43

3.36

2.75

2.60

Bank - Private

IT - Software

Auto Ancillary


BearingsFinance - Housing

Cable



Chemicals


11.46

9.87

7.24

5.72

5.42

3.92

3.76

3.73

3.65

3.51


Bank - Public

Bank - Private

IT - Software

Auto Ancillary

Printing And Publishing

Air ConditionersChemicals

Bearings


Satellite Schemes

13

UTI Mid Cap Fund

Investment Objective: An open-ended equity fund with the objective to provide ‘Capital appreciation’ by investing primarily in mid caps stocks.

It is a pure mid cap fund. The entire portfolio is invested in dynamic and well managed, medium sized enterprises with higher growth potential vis-à-vis their well established counterparts. The scheme is in existence for almost 9 years and has out-performed its benchmark CNX Midcap over one, three and five year time-horizon. The fund has generated one year CAGR of 92.47 per cent, compared to 68.06 per cent to the benchmark CNX Midcap there by outperforming its benchmark by 24.41 per cent as on 28th February 2015.

1 Allahabad Bank 2.332 Allsec Technologies Ltd. 1.923 Alstom T&D India Ltd. 1.704 Amara Raja Batteries Ltd. 1.375 Apollo Tyres Ltd. 0.846 Arvind Ltd. 0.767 Automotive Axles Ltd. 0.458 Bajaj Corp Ltd. 0.389 Bajaj Electricals Ltd. 0.3210 Bharat Forge Ltd. 0.04


Source : ACE MF

ICICI Pru Value Discovery Fund

Investment Objective: Open ended equity fund. Primary objective is to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well diversified portfolio of value stocks.

Value-investment approach followed by the Fund helped it in the bearish market phases as against its peers. The Fund lost less than the other peers in the category and has consistently beaten the benchmark giving stable returns. The fund has generated a one year CAGR of 86.06 per cent and has outperformed its benchmark CNX Midcap by 18 per cent. Since inception the fund has given a CAGR of 26.13 per cent as on 28th February 2015.

1 ICICI Bank Ltd. 5.922 Mahindra & Mahindra Ltd. 3.293 HDFC Bank Ltd. 3.214 Amara Raja Batteries Ltd. 2.915 Wipro Ltd. 2.716 Infosys Ltd. 2.557 Bharat Forge Ltd. 2.458 Gateway Distriparks Ltd. 2.429 Gujarat Pipavav Port Ltd. 2.3910 Larsen & Toubro Ltd. 2.35

No. Company Name (%)Holding Top 10 Sector Holdings (%)

11.93

8.60

6.52

5.98

4.90

3.73

3.703.69

3.643.50

Bank - Private

IT - Software


Auto Ancillary

Refineries

Pesticides & AgrochemicalsCement & Construction Materials

Engineering - Construction


Logistics


6.84

5.36

4.32

3.70

3.51

0.64

0.30

0.22

0.14

0.04

Auto Ancillary

Bank - Private

Bank - Public


Casting/Forgings

Cable

Automobiles-TractorsAgriculture

Automobile Two & Three Wheelers

BPO/ITeS

Scheme RecommendationsSatellite Schemes

*Risk-free rate assumed to be 7.98%**Standard Deviation and Treynor Ratio are calculated on annualised basis using 3 year historical data of monthly returnsFranklin India Prima Fund has 2 benchmarks CNX 500 Index and CNX MidcapSource: ACEMFColour code for all the above schemes is BROWN. Please refer to page no. 25 for product labels and other risk related information.

14

Scheme NameCanara Rob Emerg

Eq Fund-Reg(G)Franklin India Prima Fund(G)

HDFC Mid-Cap Opportunities

Fund(G)

ICICI Pru Value Discovery

Fund-Reg(G)

UTI Mid Cap Fund(G)

Axis Midcap Fund(G)

Quaterly AAUM (Rs. Crs.) Dec-2014 822 169 2,691 8,222 7,367 1,956

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 76.55 96.02 78.14 76.63 73.76 90.44

Dec 31, 2012 to Dec 31, 2013 4.07 3.16 7.40 9.64 8.31 9.69

Dec 31, 2011 to Dec 31, 2012 52.24 48.57 44.13 39.37 45.70 41.28

Since Inception till Dec 31, 2014 26.52 19.12 21.72 18.60 25.76 18.09


Dec 31, 2013 to Dec 31, 2014 17,655 19,602 17,814 17,663 17,376 19,044

Dec 31, 2012 to Dec 31, 2013 10,407 10,316 10,740 10,964 10,831 10,969

Dec 31, 2011 to Dec 31, 2012 15,224 14,857 14,413 13,937 14,570 14,128

Since Inception till Dec 31, 2014 24,840 55,670 632,407 36,093 107,990 47,955

Inception Date 18-Feb-11 11-Mar-05 1-Dec-93 25-Jun-07 16-Aug-04 30-Jul-05

Ratios

SD (%) 19.94 21.74 17.30 18.26 18.76 19.81

Treynor 2.4923 2.7491 2.9680 2.6592 2.7017 2.9470

Fund Manager Pankaj MurarkaRavi

Gopalakrishnan & Krishna Sanghavi

Mrinal Singh & Shalya Shah

R. Janakiraman & Roshi Jain

Chirag Setalvad & Rakesh Vyas

Anoop Bhaskar

Exit Load 1% on or before 1Y1% on or before 1Y,

NIL after1Y1% on or before

12M,Nil after 12M1% on or before

548D, Nil after 548D1% on or before

18M, Nil after 18M1% on or before

12M, Nil after 12M

Benchmark Name S&P BSE Mid-Cap CNX Midcap CNX 500 Index CNX Midcap CNX Midcap CNX Midcap

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 54.69 55.91 37.82 55.91 55.91 55.91

Dec 31, 2012 to Dec 31, 2013 -5.73 -5.10 3.61 -5.10 -5.10 -5.10

Dec 31, 2011 to Dec 31, 2012 38.27 38.91 31.65 38.91 38.91 38.91


Dec 31, 2013 to Dec 31, 2014 15,469 15,591 13,782 15,591 15,591 15,591

Dec 31, 2012 to Dec 31, 2013 9,427 9,490 10,361 9,490 9,490 9,490

Dec 31, 2011 to Dec 31, 2012 13,827 13,891 13,165 13,891 13,891 13,891


15

Balanced Funds

Reliance Reg Savings

Fund-Balanced Plan(G)

Tata Balanced Fund(G)

Birla SL '95 Fund(G)

Scheme Name ICICI Pru Balanced Fund-Reg(G)

Crisil Balanced Fund Index

HDFC Prudence Fund(G)

Scheme Name

Fund Manager Mahesh Patil & Prasad Dhonde

Prashant Jain & Rakesh Vyas

Yogesh Bhatt & Manish Banthia

Sanjay Parekh & Amit Tripathi

Atul Bhole & S. Raghupathi.

Archarya-

Exposure (%)Debt 20.15 24.78 21.15 24.19 23.31 -

Equity 71.16 71.48 71.35 72.44 74.07 -Cash & Equivalent 8.68 3.74 7.50 3.37 2.62 -

Exit Load1% on or before

540D, Nil after 540D




1% on or before 540D, Nil

after 540D-

Quaterly AAUM (Rs. Crs.) Dec-2014 1,058 7,605 1,290 821 1,438 -CAGR (%)

Dec 31, 2013 to Dec 31, 2014 48.56 51.76 45.56 43.20 49.61 25.34Dec 31, 2012 to Dec 31, 2013 6.10 2.06 11.18 3.52 7.54 6.05Dec 31, 2011 to Dec 31, 2012 24.45 29.90 29.20 33.64 30.36 21.21

Since Inception till Dec 31, 2014 22.26 20.74 15.60 14.94 17.30 -Current Value of Investment of INR 10,000 if invested from

Dec 31, 2013 to Dec 31, 2014 14,856 15,176 14,556 14,320 14,961 12,534 Dec 31, 2012 to Dec 31, 2013 10,610 10,206 11,118 10,352 10,754 10,605 Dec 31, 2011 to Dec 31, 2012 12,445 12,990 12,920 13,364 13,036 12,121

Since Inception till Dec 31, 2014 545,502 516,095 90,160 37,866 215,708 -Inception Date 10-Feb-95 1-Feb-94 3-Nov-99 10-Jun-05 8-Oct-95 -

Benchmark

Source: ACEMF

ELSS

Lock-in for 3 yearsSource: ACEMFColour code for all the above schemes is BROWN. Please refer to page no. 25 for product labels and other risk related information.

ICICI Pru Tax Plan-Reg(G)

Axis LT Equity Fund(G)

Fund Manager Jinesh Gopani Ajay Garg Ajay GargVinay R. Kulkarni

& Rakesh VyasChintan Haria &

Shalya Shah Ashwani Kumar

Quaterly AAUM (Rs. Crs.) Dec-2014 2,983 192 1,809 4,910 2,341 3,458CAGR (%)


Since Inception till Dec 31, 2014 23.42 12.01 10.93 29.66 23.68 18.07Current Value of Investment of INR 10,000 if invested from

Dec 31, 2013 to Dec 31, 2014 16,618 15,291 15,455 15,636 15,082 18,300 Dec 31, 2012 to Dec 31, 2013 11,651 10,853 10,909 10,509 11,015 10,347 Dec 31, 2011 to Dec 31, 2012 13,347 13,618 13,632 12,643 13,739 14,575

Since Inception till Dec 31, 2014 28,690 25,490 20,273 1,308,119 262,601 46,726 Inception Date 29-Dec-09 3-Oct-06 10-Mar-08 31-Mar-96 19-Aug-99 21-Sep-05

Scheme Name Birla SL Tax Plan(G)

HDFC TaxSaver(G)

Reliance Tax Saver (ELSS) Fund(G)

Birla SL Tax Relief '96(G)

Benchmark Name S&P BSE 200 S&P BSE SENSEX S&P BSE 200 CNX 500 Index CNX 500 Index S&P BSE 100CAGR (%)



Dec 31, 2013 to Dec 31, 2014 13,547 12,989 13,547 13,782 13,782 13,228Dec 31, 2012 to Dec 31, 2013 10,438 10,898 10,438 10,361 10,361 10,587Dec 31, 2011 to Dec 31, 2012 13,079 12,554 13,079 13,165 13,165 12,977


16

Arbitrage Funds

Source: ACEMFColour code for different schemes indicating the level of risk is given on page no. 25 along with other risk related information.

Kotak Equity Arbitrage

Scheme(G)

SBI Arbitrage Opportunities Fund-Reg(G)

ICICI Pru Blended-A-Reg(G)

Scheme Name IDFC Arbitrage Fund-Reg(G)

Crisil Liquid Fund Index

ICICI Pru Equity-Arbitrage Fund-

Reg(G)

Fund Manager Kayzad Eghlim & Manish Banthia

Kayzad Eghlim & Manish Banthia Yogik Pitti Deepak Gupta Neeraj Kumar -

Exit Load 0.50% on or before 3M

0.50% on or before 3M

0.25% on or before 3M

0.50% on or before 90D

0.50% on or before 3M, Nil after 3M

-

Quaterly AAUM (Rs. Crs.) Dec-2014 944 1,132 2,275 2,274 339 -CAGR (%)




Since Inception till Dec 31, 2014 20,810 18,700 17,904 20,168 18,547 -Inception Date 31-May-05 30-Dec-06 21-Dec-06 29-Sep-05 3-Nov-06 -

MIP

Reliance MIP(G)Birla SL MIP II-Wealth 25(G)

Scheme Name HSBC MIP-Savings(G)

ICICI Pru MIP 25(G)

Crisil MIP Blended Index

Franklin India MIP(G)

Scheme Name

Fund ManagerSatyabrata Mohanty &

Kaustubh Gupta

Anand Radhakrishnan &

Sachin Padwal-Desai

Aditya Khemani & Sanjay Shah

Sanjay Parekh & Amit Tripathi

Rajat Chandak & Manish Banthia -

Quaterly AAUM (Rs. Crs.) Dec-2014 353 328 183 906 2,313 -CAGR (%)




Since Inception till Dec 31, 2014 28,368 41,929 28,510 29,572 32,318 -Inception Date 22-May-04 28-Sep-00 24-Feb-04 30-Mar-04 12-Jan-04 -Average Maturity in Years

Dec-14 - 9.85 11.46 8.40 8.27 -Jan-15 - 11.32 10.79 7.93 9.45 -

Benchmark

Exit Load

1.5% on or before 12M, 1% after 12M

but on or before 24M, 0.50% after

24M but on or before 36M, Nil after 36M

1% on or before 1Y NIL 1% on or before

3Y, Nil after 3Y1% on or before 1095D, Nil after

1095D-

Source: ACEMF Colour code for all the above schemes is YELLOW. Please refer to page no. 25 for product labels and other risk related information.

Exposure (%)Debt 64.19 77.42 69.53 75.30 76.08 -

Equity 29.46 19.53 24.80 22.06 19.76 -Cash & Equivalent & Others 6.35 3.05 5.67 2.64 4.16 -

Scheme RecommendationsFocus List - Additional Recommended Schemes

Debt Funds Equity Funds

Axis Short Term Fund Birla SL Equity Fund

HDFC Corporate Debt Opportunities Fund Birla SL Top 100 Fund

Kotak Bond-STP DSPBR Small & Midcap Fund

Kotak Medium Term Fund Edelweiss Absolute Return Fund

Tata Income Fund Franklin India Smaller Cos Fund

HDFC Infrastructure Fund

HSBC India Opportunities Fund

ICICI Pru Dynamic Fund

IDFC Premier Equity Fund

Kotak Emerging Equity Scheme

Reliance Banking Fund

Reliance Small Cap Fund

HDFC Liquid Fund(G)

ICICI Pru MoneyM arket Fund-Reg(G)

JM High Liquidity Fund(G)

Religare Invesco

Liquid Fund(G)

DWS Insta Cash Plus Fund(G)

UTI Liquid-Cash Plan(G)

SBI Premier Liquid

Fund(G)Axis Liquid

Fund(G)

Fund Manager Devang Shah Manish JoshiRajeev

Radhakrishnan

Kumaresh Ramakrishnan & Rakesh Suri

Shobhit Mehrotra & Rakesh Vyas

Rahul Goswami &

Aditya Pagaria

Shalini Tibrewala

Krishna Venkat Cheemalapati & Nitish Sikand


-

Quaterly AAUM (Rs. Crs.) Dec-2014 7,385 6,319 17,292 5,989 5,135 7,939 24,419 16,637 -

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 9.10 9.05 9.10 9.12 9.14 9.11 9.04 9.08 9.21

Dec 31, 2012 to Dec 31, 2013 9.20 9.10 9.28 9.15 9.31 9.24 9.22 9.11 9.03

Dec 31, 2011 to Dec 31, 2012 9.64 9.66 9.50 9.68 9.55 9.69 9.60 9.57 8.50

Since Inception till Dec 31, 2014 8.29 8.15 7.24 7.50 8.06 8.10 10.29 7.36 -


Dec 31, 2013 to Dec 31, 2014 10,910 10,905 10,910 10,912 10,914 10,911 10,904 10,908 10,921

Dec 31, 2012 to Dec 31, 2013 10,920 10,910 10,928 10,915 10,931 10,924 10,922 10,911 10,903

Dec 31, 2011 to Dec 31, 2012 10,964 10,966 10,950 10,968 10,955 10,969 10,960 10,957 10,850

Since Inception till Dec 31, 2014 15,167 17,762 27,018 18,932 37,362 18,825 21,493 21,939 -

Inception Date 9-Oct-09 4-Sep-07 17-Oct-00 8-Mar-06 31-Dec-97 17-Nov-06 11-Mar-07 10-Dec-03 -

Average Maturity in Days

Dec-14 50 44 41 43 41 51 37 43 -

Jan-15 28 26 32 25 29 35 33 28 -

Particulars

Liquid Funds

No Exit LoadSource: ACEMFColour code for all the above schemes is BLUE. Please refer to page no. 25 for product labels and other risk related information.

Scheme Name Benchmark

17

Scheme RecommendationsUltra Short Term Funds

Source: ACEMFColour code for all the above schemes is BLUE. Please refer to page no. 25 for product labels and other risk related information.

No Exit Load

18

Benchmark Name Crisil Short Term Bond Fund Index






Scheme Name DWS Ultra ST(G) ICICI Pru Flexible Income Plan-Reg(G)

Franklin India Ultra Short Bond Fund(G) Tata Floater(G) UTI Treasury

Advantage Fund(G)Birla SL Savings

Fund(G)

Quaterly AAUM (Rs. Crs.) Dec-2014 10,909 2,789 6,769 12,323 2,665 6,670

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 9.66 9.53 10.00 9.49 9.22 9.31

Dec 31, 2012 to Dec 31, 2013 9.55 9.95 10.04 9.62 9.37 9.55

Dec 31, 2011 to Dec 31, 2012 9.69 9.93 10.20 9.61 9.60 9.67



Dec 31, 2013 to Dec 31, 2014 10,966 10,953 11,000 10,949 10,922 10,931

Dec 31, 2012 to Dec 31, 2013 10,955 10,995 11,004 10,962 10,937 10,955

Dec 31, 2011 to Dec 31, 2012 10,969 10,993 11,020 10,961 10,960 10,967


Inception Date 16-Apr-03 4-Jul-08 18-Dec-07 27-Sep-02 6-Sep-05 23-Apr-07

Average Maturity in Days

Dec-14 - 102 168 197 160 75

Jan-15 - 146 183 159 154 76

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 10.47 9.21 9.21 9.21 9.21 9.21

Dec 31, 2012 to Dec 31, 2013 8.27 9.03 9.03 9.03 9.03 9.03

Dec 31, 2011 to Dec 31, 2012 9.10 8.50 8.50 8.50 8.50 8.50


Dec 31, 2013 to Dec 31, 2014 11,047 10,921 10,921 10,921 10,921 10,921

Dec 31, 2012 to Dec 31, 2013 10,827 10,903 10,903 10,903 10,903 10,903

Dec 31, 2011 to Dec 31, 2012 10,910 10,850 10,850 10,850 10,850 10,850

Fund Manager Sunaina da CunhaNitish Gupta & Kumaresh

Ramakrishnan

Rahul Goswami & Rohan Maru

Sachin Padwal-Desai & Pallab Roy

Sudhir AgarwalAkhil Mittal

Exit Load NILNIL NIL NIL NIL NIL

Short Term Funds

Exit Load 0.75% on or before 6M, Nil after 6M

0.75% on or before 12M,

NIL after 12M

1.50% on or before 365D, 0.50%

after 365D but on or before 540D, Nil after 540D

HDFC STP(G)HSBC Income-Short Term

Plan(G)

ICICI Pru Short Term Plan-Reg(G)

Fund ManagerKaustubhG upta

& Sunaina da Cunha

Nitish Gupta & Kumaresh

Ramakrishnan

Anil Bamboli & Rakesh Vyas

Sanjay Shah & Piyush Harlalka

Manish Banthia

Santosh Kamath &

Kunal Agrawal

S. Raghupathi. Archarya & Akhil Mittal

Prashant Pimple

Scheme NameBirla SL ST

Opportunities Fund(G)

DWS Short Maturity Fund(G)

Franklin India ST Income

Plan(G)

Tata ST Bond(G)

RelianceSTF(G)

0.50% on or before 1Y

0.50% on or before 90D, Nil after 90D

N i l0.25% on or before 1M, Nil after 1M


Benchmark NameCrisil AA Short

Term Bond Fund Index

Crisil Short Term Bond Fund Index







Source: ACE MFColour code for different schemes indicating the level of risk is given on page no. 25 along with other risk related information.

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 - 10.47 10.47 10.47 10.47 10.47 9.21 10.47

Dec 31, 2012 to Dec 31, 2013 - 8.27 8.27 8.27 8.27 8.27 9.03 8.27

Dec 31, 2011 to Dec 31, 2012 - 9.10 9.10 9.10 9.10 9.10 8.50 9.10


Dec 31, 2013 to Dec 31, 2014 - 11,047 11,047 11,047 11,047 11,047 10,921 11,047

Dec 31, 2012 to Dec 31, 2013 - 10,827 10,827 10,827 10,827 10,827 10,903 10,827

Dec 31, 2011 to Dec 31, 2012 - 10,910 10,910 10,910 10,910 10,910 10,850 10,910

Quaterly AAUM (Rs. Crs.) Dec-2014 3,796 1,914 9,904 2,253 943 3,622 4,757 1,546

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 11.33 10.62 11.65 10.96 9.90 11.55 11.33 10.56

Dec 31, 2012 to Dec 31, 2013 10.12 8.10 9.39 7.28 7.09 7.24 7.51 9.10

Dec 31, 2011 to Dec 31, 2012 11.08 9.76 9.98 9.54 9.13 9.49 9.75 9.50

Since Inception till Dec 31, 2014 7.13 7.82 8.33 7.84 7.00 8.12 8.12 7.83


Dec 31, 2013 to Dec 31, 2014 11,133 11,062 11,165 11,096 10,990 11,155 11,133 11,056

Dec 31, 2012 to Dec 31, 2013 11,012 10,810 10,939 10,728 10,709 10,724 10,751 10,910

Dec 31, 2011 to Dec 31, 2012 11,108 10,976 10,998 10,954 10,913 10,949 10,975 10,950

Since Inception till Dec 31, 2014 22,316 24,561 28,123 26,370 22,622 28,008 25,607 25,477

Inception Date 9-May-03 27-Jan-03 31-Jan-02 28-Feb-02 10-Dec-02 25-Oct-01 18-Dec-02 8-Aug-02

Average Maturity in Years

Dec-14 - 2.32 2.79 2.13 2.54 2.96 2.89 2.51

Jan-15 - 2.89 2.75 2.19 2.52 2.80 2.88 2.78


19

Scheme RecommendationsAccrual Funds

Santosh Kamath & Sumit Gupta

Scheme Name ICICI Pru Regular Savings(G)

Reliance Reg Savings Fund-Debt Plan(G)

Quaterly AAUM (Rs. Crs.) Dec-2014 4,150 4,611 4,868

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 11.65 10.97 10.97

Dec 31, 2012 to Dec 31, 2013 8.64 7.50 7.99

Dec 31, 2011 to Dec 31, 2012 10.11 9.38 9.57

Since Inception till Dec 31, 2014 9.34 9.14 6.65


Dec 31, 2013 to Dec 31, 2014 11,165 11,097 11,097

Dec 31, 2012 to Dec 31, 2013 10,864 10,750 10,799

Dec 31, 2011 to Dec 31, 2012 11,011 10,938 10,957

Since Inception till Dec 31, 2014 15,711 14,289 18,515

Inception Date 11-Dec-09 3-Dec-10 10-Jun-05


Dec-14 3.10 2.95 2.07

Jan-15 3.25 2.82 2.02


Benchmark Name Crisil Composite Bond Fund Index

Crisil Composite Bond Fund Index


CAGR (%)

Dec 31, 2013 to Dec 31, 2014 10.47 14.31 14.31

Dec 31, 2012 to Dec 31, 2013 8.27 3.79 3.79

Dec 31, 2011 to Dec 31, 2012 9.10 9.34 9.34


Dec 31, 2013 to Dec 31, 2014 11,047 11,431 11,431

Dec 31, 2012 to Dec 31, 2013 10,827 10,379 10,379

Dec 31, 2011 to Dec 31, 2012 10,910 10,934 10,934

Fund Manager

Exit Load

3% on or before 12M, 2% after 12M but on or before 18M, 1% after 18M but on or before 24M


1% on or Before 1Y, NIL after 1Y.

Prashant Pimple

20

Rahul Bhuskute

Franklin India Income Opportunities Fund(G)

Scheme RecommendationsIncome Funds


Benchmark Name Crisil Composite Bond Fund Index






Scheme NameHDFC Income

Fund(G)ICICI Pru Income-

Reg(G)ICICI Pru Income

Opportunities Fund(G)

Kotak Bond Fund - Plan A(G)

Reliance Income(G)

Birla SL Income Plus(G)

Quaterly AAUM (Rs. Crs.) Dec-2014 3,444 2,354 1,805 3,069 3,543 1,890

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 16.03 15.68 14.54 16.92 15.13 14.81

Dec 31, 2012 to Dec 31, 2013 2.65 2.17 4.24 0.86 2.10 2.80

Dec 31, 2011 to Dec 31, 2012 10.64 10.45 11.20 10.16 12.86 11.04



Dec 31, 2013 to Dec 31, 2014 11,603 11,568 11,454 11,692 11,513 11,481

Dec 31, 2012 to Dec 31, 2013 10,265 10,217 10,424 10,086 10,210 10,280

Dec 31, 2011 to Dec 31, 2012 11,064 11,045 11,120 11,016 11,286 11,104


Inception Date 21-Oct-95 11-Sep-00 18-Aug-08 9-Jul-98 25-Nov-99 1-Jan-98


Dec-14 - 14.00 6.87 15.06 13.17 15.82

Jan-15 - 15.19 7.04 13.47 14.64 15.72

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 14.31 14.31 14.31 14.31 14.31 14.31

Dec 31, 2012 to Dec 31, 2013 3.79 3.79 3.79 3.79 3.79 3.79

Dec 31, 2011 to Dec 31, 2012 9.34 9.34 9.34 9.34 9.34 9.34


Dec 31, 2013 to Dec 31, 2014 11,431 11,431 11,431 11,431 11,431 11,431

Dec 31, 2012 to Dec 31, 2013 10,379 10,379 10,379 10,379 10,379 10,379

Dec 31, 2011 to Dec 31, 2012 10,934 10,934 10,934 10,934 10,934 10,934

Fund Manager Prasad DhondeShobhit Mehrotra

& Rakesh Vyas Manish BanthiaManish Banthia Deepak Agrawal & Abhishek Bisen

Prashant Pimple

Exit Load 1% on or before 1Y, Nil after 1Y

1% on or before 1Y, Nil after 1Y NILNIL NIL


21

Scheme RecommendationsLong Term Gilt

Source: ACEMFColour code for all the above schemes is BLUE. Please refer to page no. 25 for product labels and other risk related information.

Benchmark Name I-Sec Li-BEX I-Sec Li-BEX I-Sec Composite Gilt Index

I-Sec Composite Gilt Index

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 19.74 19.74 15.12 19.74 15.12

Dec 31, 2012 to Dec 31, 2013 1.38 1.38 4.12 1.38 4.12

Dec 31, 2011 to Dec 31, 2012 12.81 12.81 11.05 12.81 11.05


Dec 31, 2013 to Dec 31, 2014 11,974 11,974 11,512 11,974 11,112

Dec 31, 2012 to Dec 31, 2013 10,138 10,138 10,412 10,138 10,492

Dec 31, 2011 to Dec 31, 2012 11,281 11,281 11,105 11,281 11,007

I-Sec Li-BEXI-Sec Li-BEX

22

S. Raghupathi. Archarya & Akhil Mittal

Scheme NameKotak Gilt-

Invest-Reg(G)Reliance Gilt

Securities Fund(G)Birla SL G-Sec-LT(G)

ICICI Pru Gilt-Invest-PF-Reg

Quaterly AAUM (Rs. Crs.) Dec-2014 415 299 407 463 78

CAGR (%)

Dec 31, 2013 to Dec 31, 2014 17.54 20.53 17.09 18.64 17.70

Dec 31, 2012 to Dec 31, 2013 3.05 1.40 0.06 3.27 5.20

Dec 31, 2011 to Dec 31, 2012 11.15 9.53 14.54 12.96 10.34

Since Inception till Dec 31, 2014 9.63 9.24 10.07 9.21 9.47


Dec 31, 2013 to Dec 31, 2014 11,754 12,053 11,709 11,864 11,770

Dec 31, 2012 to Dec 31, 2013 10,305 10,140 10,006 10,327 10,520

Dec 31, 2011 to Dec 31, 2012 11,115 10,953 11,454 11,296 11,034

Since Inception till Dec 31, 2014 40,397 26,737 46,476 17,518 40,046

Inception Date 28-Oct-99 19-Nov-03 29-Dec-98 22-Aug-08 4-Sep-99


Dec-14 - 20.52 15.45 17.80 13.84

Jan-15 - 19.56 16.93 19.26 15.62

Fund Manager Prasad Dhonde & Kaustubh Gupta

Rahul Goswami & Anuj Tagra

Deepak Agrawal & Abhishek Bisen Prashant Pimple

Exit Load NILNIL NIL 0.50% on or before 180D, Nil after 180DNIL

Tata Gilt Securities Fund(G)

Investment not applicable

Wealth Wealth Wealth Wealth Wealth Guard (%) Keeper (%) Builder (%) Enhancer (%) Multiplier (%)

Low Risk Debt 60 50 30 20 15

Long/Short Term Debt 35 35 30 20 15

Equity 5 15 30 40 50

Alternate 0 0 10 20 20

Total 100 100 100 100 100

Corporate/Bank Deposits

Income Funds

Gilt - Medium to Long Term

Diversified Equity

Direct Equity/Derivatives

Private Equity

Equity PMS

Structured Products (Non-Capital protected)

Post Office & RBI/ PSU Bonds

Fixed Maturity Plans (FMPs)

Liquid/Ultra Short Term Funds

Short Term Funds

Funds

Monthly Income Plans (MIPs)

Other Asset Class (Gold, etc.)

Structured Products (Capital protected)

Model Portfolio

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Disclaimer:

This document is prepared by the Research Division of Aditya Birla Money Mart Limited (ABMML/ the Company) on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been taken based upon this information, ABMML does not warranty either expressly or impliedly, the accuracy, completeness or reliability of any information provided herein. Neither ABMML nor any of its employees / directors / authorized representatives shall be liable for any direct, indirect, special, consequential, punitive or exemplary damages including lost profits arising in any way from the information contained in this material, and hereby disclaims any liability with regard to the same. This report is disseminated for the information of authorized recipients only and is not to be relied upon or taken in substitution for the exercise of due diligence and judgment by any recipient. This report does not provide individually tailored investment advice; investors should seek independent financial advice with respect to the merits and risks involved in any of the matters concerning investments in the Schemes/products mentioned in the report. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS READ ALL SCHEME RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE. Returns are for Growth Option. Calculations of return assume that all payouts during the period have been reinvested in the Scheme at the then prevailing NAV. Returns of less than one year are absolute returns and returns of one year and more are compounded annualized returns.

This document is meant solely for the selected recipient to whom it has been specifically made available for general reading purposes. Nothing in this document should be construed as an investment/financial advice or solicitation to purchase or sell, units of Scheme of any particular fund house or any financial product referred to in this document. Investment decision if any taken will be at your sole and absolute discretion after due assessment and understanding of your investment objective, appropriateness and risk averseness including indicated under product labeling of mutual fund scheme. ABMML shall not be held responsible in any manner whatsoever for the consequences resulting from you taking the decision based on the use of this information. You may therefore obtain your own legal, tax and financial advice before making a decision. Aditya Birla Money Mart Ltd is registered with AMFI as a distributor of mutual fund [ARN 0003] and being engaged in the distribution of Mutual Fund products may receive fees / commission from the asset management companies. The indicative range of commission receivable from AMCs is from 0% to 6.5% depending on the schemes and as notified by the AMCs from time to time. For more details about the Company, its businesses and other information including the commissions received from asset management companies you may visit the website www.adityabirlamoney.com under the “Products – Mutual Fund section” or can seek direct information from your relationship manager at the time of investment. ABMML is an also an associate / group company of Birla Sun Life Asset Management Company Limited and trustees and sponsor of Birla Sun Life Mutual Fund (BSLMF), and also acts as a distributor of BSLMF. Any recommendation or reference of schemes of BSLMF made here if any is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. The payment of commission (upfront /annualized & trail) for any Schemes of BSLMF to ABMML would be as per prevailing market practices. You may execute the mutual fund transactions using the execution services of the Company. These services shall be as per the SEBI guidelines issued from time to time and you may quote the EUIN number of the relationship manager in case of such transactions is executed based on the advice provided by the Company.

ABMML RESEARCH TEAM:

Head - Investment Research & Advisory

Wealth Advisory Group

K. Joseph Thomas [email protected]

Sanket Desai 022-6132 5221 [email protected]

Sravan Kumar 022-6132 5214 [email protected]

Ananth Sundur 022-6180 2841 [email protected]

Swarashree Bhosale 022-6132 5216 [email protected]

Shrenik Daga 022-6132 5211 [email protected]

Rajneet Singh 022-6132 5215 [email protected]

Akanksha Mehta 022-6132 5217 [email protected]

Gargi Bhattacharjee 022-6132 5219 [email protected]

Aditya Mehta 022-6132 5213 [email protected]

Tushar Patil 022-6132 5212 [email protected]

Nilesh Shinde 022-6132 5226 [email protected]

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Product Labelling

Ultra Short Term FundsBirla SL Savings Fund Low Risk BlueDWS Ultra ST Low Risk BlueFranklin India Ultra Short Bond Fund Low Risk BlueICICI Pru Flexible Income Plan Low Risk BlueTata Floater Low Risk BlueUTI Treasury Advantage Fund Low Risk Blue

Note: Risk is represented as: Investors understand that their principal will be at low risk

“This product is suitable for investors who are seeking for income with capital growth over short term.”

Investors understand that their principal will be at medium risk“This product is suitable for investors who are seeking income with capital growth over medium to long term.”(Brown) Investors understand that their principal will be at high risk“This product is suitable for investors who are seeking long term capital growth.”

(Blue)

(Yellow)

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

Accrual FundsFranklin India Income Opportunities Fund Low Risk BlueICICI Pru Regular Savings Low Risk BlueReliance Reg Savings Fund-Debt Plan Low Risk Blue

Focus List (Equity)Birla SL Equity Fund High Risk BrownBirla SL Top 100 Fund High Risk BrownDSPBR Small & Midcap Fund High Risk BrownEdelweiss Absolute Return Fund High Risk BrownFranklin India Smaller Cos Fund High Risk BrownHDFC Infra Fund High Risk BrownHSBC India Oppor Fund High Risk BrownICICI Pru Dynamic Fund High Risk BrownIDFC Premier Equity Fund High Risk BrownKotak Emerging Equity Scheme High Risk BrownReliance Banking Fund High Risk BrownReliance Small Cap Fund High Risk Brown

Balanced FundsBirla SL '95 Fund High Risk BrownHDFC Prudence Fund High Risk BrownICICI Pru Balanced Fund High Risk BrownReliance Reg Savings Fund-Balanced Plan High Risk BrownTata Balanced Fund High Risk Brown

Arbitrage FundsICICI Pru Blended-A Medium Risk YellowICICI Pru Equity-Arbitrage Fund Medium Risk YellowIDFC Arbitrage Fund Low Risk BlueKotak Equity Arbitrage Scheme Low Risk BlueSBI Arbitrage Opportunities Fund High Risk Brown

MIPBirla SL MIP II-Wealth 25 Medium Risk YellowFranklin India MIP Medium Risk YellowHSBC MIP-Savings Medium Risk YellowICICI Pru MIP 25 Medium Risk YellowReliance MIP Medium Risk Yellow

Satellite SchemesAxis Midcap Fund High Risk BrownCanara Rob Emerg Eq Fund High Risk BrownFranklin India Prima Fund High Risk BrownHDFC Mid-Cap Opportunities Fund High Risk BrownICICI Pru Value Discovery Fund High Risk BrownUTI Mid Cap Fund High Risk Brown

Core SchemesAxis Equity Fund High Risk BrownBirla SL Frontline Equity Fund High Risk BrownFranklin India High Growth Cos Fund High Risk BrownHDFC Top 200 Fund High Risk BrownICICI Pru Focused BlueChip Eq Fund High Risk BrownKotak Select Focus Fund High Risk BrownReliance Focused Large Cap Fund High Risk BrownTata Pure Equity Fund High Risk Brown

Short Term FundsBirla SL ST Opportunities Fund Medium Risk YellowDWS Short Maturity Fund Low Risk BlueFranklin India ST Income Plan Low Risk BlueHDFC STP Low Risk BlueHSBC Income-Short Term Plan Low Risk BlueICICI Pru Short Term Plan Low Risk BlueReliance STF Low Risk BlueTata ST Bond Medium Risk Yellow

Income FundsBirla SL Income Plus Medium Risk YellowHDFC Income Fund Low Risk BlueICICI Pru Income Opportunities Fund Low Risk BlueICICI Pru Income Low Risk BlueKotak Bond Fund - Plan A Low Risk BlueReliance Income Low Risk Blue

Gilt FundsBirla SL G-Sec-LT Low Risk BlueICICI Pru Gilt-Invest-PF Low Risk BlueKotak Gilt-Invest Low Risk BlueReliance Gilt Securities Fund Low Risk BlueTata Gilt Securities Fund Medium Risk Yellow

Focus List (Debt)Axis Short Term Fund Low Risk BlueHDFC Corporate Debt Opportunities Fund Medium Risk YellowKotak Bond-STP Low Risk BlueKotak Medium Term Fund Low Risk BlueTata Income Fund Medium Risk Yellow

ELSSAxis LT Equity Fund High Risk BrownBirla SL Tax Plan High Risk BrownBirla SL Tax Relief '96 High Risk BrownHDFC TaxSaver High Risk BrownICICI Pru Tax Plan High Risk BrownReliance Tax Saver (ELSS) Fund High Risk Brown

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Liquid FundsAxis Liquid Fund Low Risk BlueDWS Insta Cash Plus Fund Low Risk BlueHDFC Liquid Fund Low Risk BlueICICI Pru Money Market Fund Low Risk BlueJM High Liquidity Fund Low Risk BlueReligare Invesco Liquid Fund Low Risk BlueSBI Premier Liquid Fund Low Risk BlueUTI Liquid-Cash Plan Low Risk Blue

Contact InformationAditya Birla Money Mart LimitedCorporate Office: One Indiabulls Centre, Tower 1, 14th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013.Registered Office: Indian Rayon Compound, Veraval, Gujarat 362 266. E-mail: [email protected], CIN U61190GJ1997PLC062406, Tel: +91 22 43568300, Website: www.adityabirlamoney.com, Fax: +91 22 43568310

MMR Wealth - March -15

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