Volume 16 January - February 2020 - Emkay

Volume 16

January - February 2020

MANAGEMENT

JANUARY - FEBRUARY 2020 | Volume - 16

Prologue 01

Quite Briefly… 02

Global Growth Slips, but Economies are in Motion… 03

The Flight of Prices…When Growth is Faltering… 05

Short End Holds the Hope…Long End Under Pressure… 07

Equities – A Studied Calm Prevails… 08

Currencies Trading in Narrow Range… 09

Gold and Oil May Remain Subdued… 01

Embassy Office Parks REIT 11

Enhanced Efficiency Model: En Ef Model 12

Recommended Equity Funds 13

Recommended Debt Funds 16

Emkay L.E.A.D PMS 20

PMS Products Update 22

Emkay Capital Builder PMS 23

Estate and Succession Planning 24

Planning For Your Minor Children And Appointing A Guardian 25

Model Portfolio 27

Disclaimer 28

Bhavesh Sanghvi

01JANUARY - FEBRUARY 2020 | Volume - 16

Prologue

MANAGEMENT

It is budget time again!And this is the time the media and the press are full of reports on expectations from theUnion Budget. This year too is no exception. It may be stated that it is under extremely difficult circumstancesthat the budget is being formulated. There may be fiscal slippages as tax collections have not been buoyant,and tax cuts were granted to corporates. It looks like the government may not be able to meet thedisinvestment targets, as things stand at present. All this is happening against the background of a verysluggish economic growth. Such circumstances leave very little choice to the honourable Finance Minister.

In the past, several measures initiated by government and the RBI, focussed more on the supply side, andthe budget is expected to deliver something on the demand side too, as the two macro variables which haveshown a substantial dip are aggregate demand and investments. This situation can be addressed throughdemand-stimulating measures, including rationalization of personal income tax.

Credit flow seems to have improved and liquidity conditions are good, but NBFCs are still finding it difficult toraise money at reasonable rates. We may need a credit guarantee from the government for a longer period ofup to 18 months or 24 months. This would be a good confidence building measure. It is also expected that thegovernment may respond to the long-standing demand for rationalization of Dividend Distribution Tax.Dividend is taxed multiple times, and the same amount should not be taxed many times in a fair and equitabletax regime. In the run up to the introduction of Direct Tax Code (DTC), this reform is something that is requiredand would also promote investments. It is also felt that sectors like agriculture and allied activities,infrastructure, banking and financial services, especially non-banking sector, may receive special attention inthe budget. The need to improve farmers' income in the light of farm distress, the need to promote rural andretail credit to promote spending would require detailed plan and quick execution.

This takes us to the important question, what do we do about portfolios in the light of the budget? Every yearthere is a budget, and budgets always carry some idea or the other, or some measures, which would supportthe economy and the markets, mainly by promoting consumption and investments. While these measuresquite often have positive impact on many sectors of the economy, they may be neutral to some others. Whilethis may have a fleeting impact on the markets, there is no need to worry about portfolios which have beenconstructed based on solid fundamentals, quality and governance. Budgets may trigger sometimes a rally,and a sell off at times. Continue the investments into equities in a phased manner. We suggest initiatinglumpsum investments into the Midcap space against the emerging economic and market conditions. Anexposure to international funds to the tune of not more than 5% of the portfolio maybe considered.

Happy investing!!

Bhavesh Sanghvi

CEO, Emkay Wealth

Dr. K. Joseph Thomas

Head - Research, Emkay Wealth


Quite Briefly…

MANAGEMENT

Many expectations are there, from the budget, that is going to be presented in the next two weeks. Most of theseexpectations revolve around tax rate changes, like rationalization of the dividend distribution tax, and a moderation inthe income tax rates. It is likely that government may not be able to make much concessions, as the widening fiscaldeficit may not allow it, but some measures could be in tune with the final objective of implementing the direct tax code.A significant tax cut was offered to corporates in the current financial year and many announcements regardinginfrastructure was also made recently by the government. We also need to keep in mind the fact that the budget isbeing prepared and presented under conditions of economic and fiscal stress, and therefore, the expectations alsoneed to be moderated. Any major deviation from the fiscal deficit path may have consequences for India's foreigncurrency ratings. This is important because the attitude and approach of overseas investors is fashioned to someextent based on such factors.

Investments should still be focussed on well managed equity portfolios or funds from both the mutual fund space andportfolio management services. Blended strategies with predominantly large caps, followed by mid-caps may be,considered. It is also time to start investing into mid-caps through well researched and carefully selected funds.

Even the fixed income market is waiting to see the extent of fiscal slippages. The comparison will be with the fiscalglide path which was presented in the last budget. There have been genuine difficulties like a shortfall in estimatedrevenues, tax cuts given to corporates etc. against the background of a sagging economy. The difficulties may persist,most likely, in the coming year too, and that is why the numbers in the budget would be keenly watched by investorsboth domestic and overseas

The market operations of the RBI intended to cool down the long end yields may find some success in the immediateterm in countering the trend of rising long end yields. But this may not be useful in the medium to long term as themacro fundamentals and the peculiarities of the fisc would prevail. The long end of the curve indicated by the current10 Yr benchmark may move up from 6.60% levels to 6.90%.Abreach of 7.00% also cannot be ruled out. The short endis also not immune from some volatility, with 25 to 40 bps up-move most likely in that segment too. The focus on theisshort end of the curve and short term and corporate bond funds and enough diligence on credit issues is warranted at, ,this juncture.

The global GDP growth slipped to 2.30%, the lowest since therecession of 2007-08, and there seems to be only a smalluptick in 2020, at 2.50%, that is visible at this pointexpectedof time. The deceleration in growth was witnessed in 2019and it is the result of persistent tariff and trade conflictsinvolving the US and China, and also the US and some of theEU countries. This led to uncertainties in the global economyand the economic outlook, and this resulted in economicslowdown. Generally, such uncertainties adversely affect theinvestment decisions in major projects and businesses. Oneof the by-products of this tariff issues was the fall in exportswitnessed in some of the EU countries, including Germanyand France, and this led to contraction i their GDP, as theynare to some extent export-led economies., ,

Another trend that has been witnessed is the extremely soft monetary policy pursued by the central banks during and afterthe recession continued for a long period of time leading to expansion of credit and subsequent proliferation of issue ofbonds in almost all the major markets. But with risks rising in the recent past and inflation gradually moving up,accommodative monetary policy seems to have reached a dead-end, and the emerging economic conditions may requirereversal of the rate policy. In some markets this is already happening, and the rise in inflation and the rise in rates coupledwith a fall in profitability, may trigger debt related issues, and investments into fixed income would require additionaldiligence in the coming days. The territories where the yields had dipped to negative territory may witness rather mild surgein the yields. But those markets where the debt servicing capacity has been impaired require careful handling by regulatorsthemselves. The rising delinquency in the US of oil exploration firms is a case in point. The interest cover ratio for a largenumber of US firms is reported to be less than one due to fall in profitability and the rise in cost of servicing debt.

The default by Tewoo Group in China, a state ownedenterprise, in its dollar denominated debt highlights twothings, one, that the Chinese government may not bail outany entity though it may try to provide conditions that wouldalleviate stress, and two, there may be increasing stress inthe region, and we may see more defaults. These defaultshave two ramifications, one, this dampens the marketssentiment, and two, this may increase the cost of borrowing inthe coming days. The more important factor to reckon with isthe overwhelming need for higher diligence on debt portfoliosin the light of these developments.

The US economy is expected to grow at a lower rate in thecurrent year, and the same may be the case in the followingyear too going by Fed's estimates. It is a fact that the USmarkets have run up too much with one of the best phases of economic growth, but one or two factors pointed by analystsdo merit consideration. The US unemployment rate has been as low as 3.50% for a long time now, and inflation is graduallyrising, and this historically is a harbinger of lower financial market performance and the beginning of some correctivedownward movements. To put it more clearly, a lower than average unemployment rate and a rising inflation signifies anoverheated economy. The Fed policy meeting and the Fed action thereafter would indicate the trajectory of Fed policy forthe current year.

The trend set in 2019 of a strong US Dollar is likely to continue into 2020, but some of the factors which have beensupporting the currency may weaken in the current year. One example would be China - the government is likely tocontinue with aggressive fiscal and monetary action, whereas in the US or Europe the room for fiscal expansion is quitelimited or does not exist at all.


MANAGEMENT

Global Growth Slips, but Economies are in Motion…

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MANAGEMENT

US

China

Japan

Germany

Spain

UK

Russia

Brazil

South Africa

South Korea

Country GDP Growth

2.10%

6.00%

1.70%

0.50%

1.90%

1.10%

1.70%

1.20%

0.10%

2.20%

Inflation 10 Yr Soverign Yield Policy Rate

2.30%

4.50%

0.80%

1.50%

0.80%

1.30%

3.00%

4.31%

4.00%

0.70%

1.74%

3.07%

-0.02%

-0.29%

0.38%

0.59%

6.21%

6.73%

9.03%

1.70%

1.75%

4.15%

-0.10%

0.00%

0.00%

0.75%

6.25%

4.50%

6.25%

1.25%

Global Growth Slips, but Economies are in Motion…

CPI

The CPI based inflation numbers continued their upwardmarch and witnessed yet another sharp spike. The CPIinflation has now moved outside the RBI's target range. Theheadline inflation number was reported at 7.35% for themonth of Dec'19 as compared to 5.54% in the precedingmonth and 2.11% during the year ago period. The retailinflation has now touched a 5-year high. The reportedinflation number even breached the street expectations, asmarket participants anticipated marginal easing in the pace ofprice gains of food articles.

The Consumer Food Price Index galloped at a faster paceand has now reported double digit growth for two consecutivemonths. The inflation for the said index was reported at14.12% as compared to 10% in the preceding month and -2.65% during the year ago period. The steep uptrend seen in food prices has now entered its fourth month. Within the foodbasket the biggest spike was witnessed in Vegetables and Pulses, the inflation was reported at 60.5% and 15.44%respectively.Apart from these two food items, high protein based articles such as Meat & Fish and Eggs have reported highinflation. Fuel and Light price index based reported inflation, after five consecutive months of deflation. The inflation forFuel and Light index was reported at 0.70% as compared to -1.93% in the preceding month and 4.47% during the year agoperiod.

Along with Food and Fuel, inflationary pressures were witnessed in other components as well. As a result, Core inflationmoved up from 3.49% in the month of Nov'19 to 3.73% in Dec'19.

View

The headline inflation numbers continue to worsen and have severely restricted the space available with the central bankto support growth. The RBI has the mandate to maintain inflation within a range of -/+ 2% from its target rate of 4% andpositive real rates. The real repo rate has turned negative on the basis of last two CPI based inflation readings and couldhave a bearing on the upcoming monetary policy. While a rate cut is ruled out by market participants, the “accommodativestance” has also come under scrutiny. The impact of rising inflation on market yields could also hamper the transmission ofrates effected till date.

The impact of food prices on headline inflation numbers was expected to be transitory, on the basis of receding impact ofweather conditions and supply management by the government. The volatile prices of vegetables continue to surge aheadand also, more sticky, high protein food items have remained at elevated levels. The other cause of concern is the uptick infuel prices, the rising geopolitical concerns could potentially result in further upmove in oil prices. The risks to theinflationary trajectory are on the upside, the response from the central bank can be muted over the near term but if thetrajectory continues to be upward or if it remains elevated for elongated period of time, the central bank may be compelledto respond.Additionally, the quality of the fiscal deficit, would also be monitored for its impact on inflation.

IIP

The IIP growth returned to expansionary category after a gapof three months. The IIP growth for the month of Nov'19 wasreported at 1.8% as compared to -4% in the preceding monthand 0.2% during the year ago period. The reported numberswere mostly in line with expectations, with consensusestimate expecting growth to be positive for the month ofNovember. The street estimates expecting a marginalrecovery was mostly owing to the base effect. The economicslowdown started getting reflected in the IIP numbers fromNov'18 and has hovered around low single digits since.

The manufacturing sector, representing more than 77% of IIP,growth came in at 2.7% for the month of Nov'19, as comparedto -2.3% for the preceding month. Even as the Manufacturinggrowth turned positive, the breadth of the industries formingpart of Manufacturing sector remained weak; from 23 industrygroups, 13 reported contraction. The growth was the weakest in industries such as other manufacturing and motor


The Flight of Prices…When Growth is Faltering…

MANAGEMENT

0.00%

1.00%

2.00%

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6.00%

7.00%

8.00%

9.00%

10.00%CPI Core CPI

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4

May-1

4

Sep-1

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5

May-1

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-4.0%

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10.0%IIP

Apr-

13

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3

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3

Apr-

14

Aug-1

4

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4

Apr-

15

Aug-1

5

Dec-1

5

Apr-

16

Aug-1

6

Dec-1

6

Apr-

17

Aug-1

7

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7

Apr-

18

Aug-1

8

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9

vehicles. The growth was strongest in wood products, except furniture, and basic metals. Out of the three sectors formingpart of IIP, Electricity was the only one to report negative growth. The growth for Mining sector was reported at 1.7% for themonth of Nov'19, as against growth of -8% in the preceding month.

The growth rates for Use-based categories too improved at the margins. The only segment to report healthy growth ratewas Intermediate goods, at 17.1% as compared to 22.9% in the preceding month. Despite the slowdown in bothconsumption as well as investment demand, the growth in Intermediate Goods has been able to maintain its pace.Anotherpositive was reported in Consumer Non-Durables growth rate, it came in at 2%, as against -1.8% seen in the precedingmonth. Consumer Durables demand and thus the production continues to remain weak, growth rate for the segment wasreported at -1.5%. Primary Goods segment reported negative growth rate of 0.3%. Capital Goods growth remained in thenegative zone for the 11th consecutive month, the growth rate for the month of Nov'19 was reported at -8.6%.Infrastructure/Construction Goods growth rate came in at -3.5% for the month of Nov'19.

View

IIP growth recovered from the recent lows, but this in no way indicates a reversal in trend and recovery in growth. Theimprovement in IIP growth rate is mostly being attributed to the base effect. The base effect would benefit the headlinenumbers for few more months, but the sustained improvement in numbers and the number of contributing industries wouldbe the key indicator of a turnaround.

The upcoming budget would be the primary monitorable as far as providing support to the lagging growth numbers isconcerned. The fiscal as well as monetary stimuli provided over the course of the year gone by have had limited impact onthe economy till now. The measures effected till date have been largely concerning the supply side, while there have beenlimited demand side stimuli. The government is expected to address the demand side in the upcoming budget and provideallocation for capex boosting programmes as well.

PMI

India's manufacturing PMI improved for the second month ina row and touched a joint 10 month high of 52.7 for the monthof Dec'19 as compared to 51.2 in the preceding month. Areading above 50 indicates expansion in activity. The pace ofincrease in new orders was the fastest since Jul'19 and it ledto manufacturers ramping-up the production efforts. Theuptick in demand was well supported by export orders. Theexport demand has strengthened for the 26th consecutivemonth. The key contributing sectors to growth wereconsumer goods and intermediate goods, whereas trend forcapital goods remained weak. As the increase in demand ledto pile-up in outstanding orders, the manufacturers resumedhiring and it was the strongest since Feb'19.Along with hiring,there was improvement also in input buying. Even as inputbuying gained pace, the inventory levels continued todecline. The holding of finished products too declined during the month.

The input costs have been inching-up since the past few months and touched a 13 month high, but the subdued demandhad kept a lid on output charge. The weak demand had severely diminished the manufacturers' pricing power. Withimprovement in demand scenario, the manufacturers passed-on the cost burden. The output charge inflation touched a 34month high in Dec'19.

View

The PMI numbers improved for the second consecutive month and that should come as a respite for the markets after aslew of weak macroeconomic data. The survey report mentions that, “Factories benefited from a rebound in demand, and

responded by scaling up production to the greatest extent since May. There were also renewed increases in input

purchasing and employment during December”. The uptick in activity may not immediately translate into enhancement incapex, but the demand growth would support the capacity utilisation levels.

While increasing demand scenario bodes well for the economic growth outlook, it could potentially negatively theimpactinflation numbers. The latest PMI report indicates that the increasing demand helped the manufacturers to pass on the costburden. The inflationary pressures which were largely restricted to food articles till now can percolate into broadereconomy. The CPI inflation has maintained an upward trajectory since last few months and the green shoots of improvingdemand can lead to similar trend in WPI.


MANAGEMENT

The Flight of Prices…When Growth is Faltering…

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56Mfg. PMI


Short End Holds the Hope…Long End Under Pressure…

MANAGEMENT

The liquidity conditions in the inter-bank market is supportive of lowerrates at the short end of the curve, and the system-wide liquidity isclose to Rs.2.30 Lakh Crs. That the liquidity has been in surplus for aconsiderable amount of time is something that has provide greaterdstability to the markets in the recent past. This has also moderated theimpact of borrowings by the central government and the stategovernments, which had assumed a relatively larger proportioncompared to the earlier years. Almost 95% of government borrowing isalready completed and it needs to be seen whether there are anyadditional borrowings that is coming to hit the markets. It is likely thatgovernment may resort to borrowing through very short-terminstruments to tide over the short fall in the government revenues. Thisis a high probability given the fact that the tax revenues have beenlower than estimated, the level of disinvestments also has been far short of estimates as on the date of preparing thisreport.

The global oil prices have stabilized, and the likely range may be US$ 65-US$75, and the likelihood of the prices shootingup is much less except in conditions of protracted war, and disruption to production. The stability of oil prices and therelatively stable Dollar-Rupee exchange rate offers some support to the domestic price level in terms of transmission ofprices from external factors. But the impact of domestic factors on the price level is pronounced as can be seen from theCPI numbers in the last two months with the CPI going up beyond the RBI limit set at 4% to 6%. The rise in the prices of foodarticles has resulted in the higher CPI, and the prices of pulses has also moved up. While we may see the prices of fruitsand vegetables coming down in due course, the prices of pulses may not because it is a crop which has a longer cropmaturity cycle. The core inflation has also edged higher. The general expectation in global markets is that commodities'prices may also have a moderate upside this year. These price pressures may put some pressure on the RBI fromcontinuing with an aggressive accommodative stance which it has pursued in the last one year or so. However, RBI maynot be in a position to suddenly hike the rates too as the economy is still in a sluggish phase and the recovery may takemore time. But this may make most market participants to read into it that the central bank may have to abandon the softmoney policy at some point of time if inflationary pressures persist.

One of the factors which the fixed income market has been eagerlylooking forward to is the extent of fiscal slippages, which the budgetwhich is going to be presented soon, would actually throw up asagainst the fiscal glide path which the budget last year had presented.There have been genuine difficulties like a shortfall in estimatedrevenues, tax cuts given to corporates etc. against the background of asagging economy. The difficulties may persist, most likely, in thecoming year too, and that is why the numbers in the budget would bekeenly watched by investors both domestic and overseas. If there areany major slippages it may not be accepted very easily by the market,and some pressure on yields may crop up soon thereafter.

The market operations of the RBI intended to cool down the long endyields may find some success in the immediate term in countering the trend of rising long end yields. But this may not beuseful in the medium to long term as the macro fundamentals and the peculiarities of the fisc would prevail. The long end ofthe curve, indicated by the current 10 Yr benchmark may move up from 6.60% levels to 6.90% and or even 7.10% levels.The short end is also not from some volatility, with 25 to 40 bps up-move, most likely in that segment too. Theinsulatedfocus on the short end of the curve and short term and corporate bond funds and enough diligence on credit issues iswarranted at this juncture.

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Net LAF (Outstanding)

6

6.5

7

7.5

8

8.5

910yr Benchmark Sovereign Yield

10 yr Yield Average -1 SD -2 SD

02

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5

02

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-18

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-19

The equity frontline indexes have been buoyant, and it has been morepronounced in the large cap indexes. There are some redeemingfeatures in the mid-caps and the small caps too. But that is very far andfew. The broader markets remain in the shadow of the rise in fewerstocks, which is the product of the hunt for quality, made moreconspicuous by the chase for such stocks even in the face of incrediblyhigh earnings multiples. Being in the grip of a severe slow down, thefocus has been naturally more on companies that have a businessmodel that has survived the test of time, and those with high corporategovernance standards. This is the reason behind the demand for goodcompanies. The prices move up with demand, and the supply-demandprinciple applies here too, like it is in any other commodity, traded on anexchange or otherwise. The large caps, and the midcaps bordering thelarge caps, have been the domain that has been at the centre of attraction.

But the discussion now is more on the space where not much has happened in the recent past, which is the mid-caps andsmall caps. The run up in large caps can be rationalized or balanced out by either the large caps correcting a bit, or by themid- caps moving up. The probability of the latter happening over the next four to six quarters is higher compared to theformer. This is also because the fall in the mid-caps was more drastic in the last one or one and a half years, compared toany other segment of the market. But the time period may be longer for the current pick up, as we need to see the intensityof credit flow or credit pick up, to some of the credit hungry sectors picking up. It is equally important that the rate of interest,at least on short term debt instruments, remain more or less stable.Any rise in short term rates whether inflation-induced oron account of policy shifts could spoil the environment for companies in the mid cap space as their reliance on borrowing isrelatively higher. The road to a recovery in small caps may be still longer compared to the mid- caps.

One factor that continues to lend support to the equity markets is the liquidity conditions, which remains conducive to moreintense economic activity. This level of liquidity has helped transmission of the positive effects of rate cuts faster to thebenefit of larger borrowers. It is also important that rates remain lower at this juncture because it has consequences for thedebt-servicing capacity of mid-sized and smaller corporates. Usually, during times when economy is sluggish, profitabilityof corporates goes down, and this adversely affects their debt servicing capacity. This is aggravated further by rising rates.Therefore, so long as the liquidity conditions remain in surplus as it is today, it will foster growth.

The first few results from the earnings season has hit the streets, and itdoes not add much cheer to the markets. It is expected, that to a largeextent, the earnings scenario would be more or less on the same linesas it was with the last two to three quarters. For a real pick up inearnings, we need to see the GDP growth back to the 6% to 7% levelsor higher. This may happen only over a much longer time period. Butwe need to position investment activity in anticipation of the pick-up intothe most appropriate avenues so that the portfolios benefit from thepick-up when it actually happens, or when it is actually realized.

There are many expectations from the budget that is going to bepresented . Most of the expectations revolve around tax ratesoonchanges, like rationalization of the dividend distribution tax, and amoderation in the income tax rates. It is likely that government may not be able to make much concessions, as the wideningfiscal deficit may not it, but some measures could be in tune with the final objective of implementing the direct taxpermitcode. A significant tax cut was offered to corporates in the current financial year and many announcements regardinginfrastructure also made recently by the government. We also need to keep in mind the fact that the budget is beingwereprepared and presented under conditions of economic and fiscal stress, and therefore, the expectations also need to bemoderated. Any major deviation from the fiscal deficit path may have consequences for India's foreign currency ratings.This is important because the attitude and approach of overseas investors is fashioned to some extent based on suchfactors.

Investments should still be focussed on well manged equity portfolios or funds from both the mutual fund space andportfolio management services. Blended strategies with predominantly large caps, followed by mid-caps may beconsidered. It is also time to start investing into mid-caps through well researched and carefully selected funds.


MANAGEMENT

Equities – A Studied Calm Prevails…

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Jul-1

9

Au

g-1

9

Se

p-1

9

Oct

-19

No

v-1

9

De

c-1

9

Inflow/Outflow in Rs. Crs. Last 12 Months

FII Equity MF Equity

Ju

l-0

7

Ja

n-0

8

Ju

l-0

8

Ja

n-0

9

Ju

l-0

9

Ja

n-1

0

Ju

l-1

0

Ja

n-1

1

Ju

l-11

Ja

n-1

2

Ju

l-1

2

Ja

n-1

3

Ju

l-1

3

Ja

n-1

4

Ju

l-1

4

Ja

n-1

5

Ju

l-1

5

Ja

n-1

6

Ju

l-1

6

Ja

n-1

7

Ju

l-1

7

Ja

n-1

8

Ju

l-1

8

Ja

n-1

9

Ju

l-1

9

Ja

n-2

0

0

10

20

30

40

50

60 Largecap vs Midcap Valuation Gap

Midcap PE Nifty PE

98

100

102

104

106

108

110

112

114

116 USD/JPY

30-O

ct-1

7

30-D

ec-1

7

28-F

eb-1

8

30-A

pr-1

8

30-J

un-1

8

31-A

ug-1

8

31-O

ct-1

8

31-D

ec-1

8

28-F

eb-1

9

30-A

pr-1

9

30-J

un-1

9

31-A

ug-1

9

31-O

ct-1

9

31-D

ec-1

9

The currency levels obtaining currently indicate no significant, ,

changes currency levels over the last few months. The twoin the

factors that have been keeping the markets on tenterhooks were

Brexit, and the trade and tariff war between China and the US. Post

the general elections, the Brexit issue has been now more or less

settled with a vote in the parliament, and the details of the separation

that may emerge gradually would give us a complete picture of how it

may impact UK and the rest of Europe. But it is going to leave its

scars on the UK economy, and the speed with which UK would

renegotiate some of the trade and business treaties would determine

the depth of the impact. This is what has helped both Euro and GBP

to hold quite well against the US Dollar in the last couple of months

which is clearly reflected in the currency rates.

The agreement between China and the US is happening in two

stages as per the information available so far. The first phase

agreement has been signed by both the parties in Washington and

China has agreed to buy US goods to the tune of US$ 200 billion. The

second phase may be a more comprehensive treaty after the

pending issues are ironed out by both parties. This has also brought

some semblance of stability in the currency markets. Most of the

currency majors held quite well against the US$ through the last

three months. There is some strength visible in Yuan too after the

progress in the negotiations on the trade front recently.

The Rupee has been quite rangebound, with the broader range being

70.50 to 71.50 against the US$. The inflows on account of

investment is not consistent and encouraging, and the direction

which the Rupee would take will depend on the patte n of investmentr

flows as also the outcome of the budget, mainly the fiscal path which

the government is likely to chart. The impact of some of the factors on

India's foreign currency rating will be consequential for the Rupee.

Currencies Trading in Narrow Range…

MANAGEMENT

JANUARY - FEBRUARY 2020 | Volume - 16 09

Exchange Rates ( -Dec 2019 and January 2020)Jun

US /JPYD

DGBP/US

DUS /Yuan

Euro USD/

Currency June

107.40

27611.

6.86

1.1387

July

108.11

24401.

6.88

.11441

Aug

105.40

1.2300

7.10

1.1200

Sept

107.76

1.2470

7.10

1.0999

Oct

108.40

1.2860

7.07

1.1120

Dec

109.50

1.3035

6.99

1.1135

Jan 20

109.90

1.3040

6.90

1.1070

50

55

60

65

70

75

80USD/INR

02-J

an-1

5

02-M

ay-1

5

02-S

ep-1

5

02-J

an-1

6

02-M

ay-1

6

02-S

ep-1

6

02-J

an-1

7

02-M

ay-1

7

02-S

ep-1

7

02-J

an-1

8

02-M

ay-1

8

02-S

ep-1

8

02-J

an-1

9

02-M

ay-1

9

02-S

ep-1

9

02-J

an-2

0

1

1.05

1.1

1.15

1.2

1.25

1.3EUR/USD

30-O

ct-1

7

30-D

ec-1

7

28-F

eb-1

8

30-A

pr-1

8

30-J

un-1

8

31-A

ug-1

8

31-O

ct-1

8

31-D

ec-1

8

28-F

eb-1

9

30-A

pr-1

9

30-J

un-1

9

31-A

ug-1

9

31-O

ct-1

9

31-D

ec-1

9

13-O

ct-1

7

13-D

ec-1

7

13-F

eb-1

8

13-A

pr-1

8

13-J

un-1

8

13-A

ug-1

8

13-O

ct-1

8

13-D

ec-1

8

13-F

eb-1

9

13-A

pr-1

9

13-J

un-1

9

13-A

ug-1

9

13-O

ct-1

9

13-D

ec-1

9

5.8

6

6.2

6.4

6.6

6.8

7

7.2

7.4USD/YUAN

1.2

1.25

1.3

1.35

1.4

1.45

1.5GBP/USD

30-O

ct-1

7

30-D

ec-1

7

28-F

eb-1

8

30-A

pr-1

8

30-J

un-1

8

31-A

ug-1

8

31-O

ct-1

8

31-D

ec-1

8

28-F

eb-1

9

30-A

pr-1

9

30-J

un-1

9

31-A

ug-1

9

31-O

ct-1

9

31-D

ec-1

9

Gold Movements

Gold touched a high of and at the time of compiling this report it is1580trading at . The sudden spike in gold prices in the recent past was1560the direct result of the geo-political tensions which developed due tothe US-Iran confrontation. Sensing the likelihood of enhancedaggression in the region gold prices just zoomed up. But soonthereafter, the prices eased to lower levels as the rhetoric moderated.The factors which are most likely to influence the trajectory of gold pricemovements are two fold - one , the geo political tensions that may cropup from time to time may keep the gold prices well supported, andsecond, the scenario of a global economic sluggishness an thedpotential for low interest regimes across Europe, Asia and orthNAmerica may also support gold prices. At present the strong supportlevels are at or around 1510/20 and 1470/80.

While gold prices may remain elevated due to the factors listed above, the tendency to move towards the support levels willbe very high. It may also be stated that the gold price volatility has increased but the level of volatility is low. The institutionalinvestors, especially the central banks, have been the major investors into gold last year. The demand from central banks isexpected to continue into the current year too. This offers good support for gold apart from the inflows into ETFs. ETFholdings grew at 14% in 2019, and the trend may continue unabated in view of the global economic and market conditions.The negative bond yields and the general low interest rate scenario prompted investors to look at ETFs progressively,mainly the by-product of low real interest rates. Therefore, while ETFs and institutional investments would all support goldprice, the chances of sharp upticks are a function of the evolving geo-political conditions multiple theatres of likelyinconflict.

Brent

The broad range that we had indicated for Brent has been US 65 to$US$ 75, the probable range for the whole year. It touched the upside onthe breakout of the hostilities between the US and Iran and came back,to the US$ 70 level as the hostilities subsided. Currently trading at US$65, the price of oil is expected to remain more or less subdued, unlessdisturbed by geo-political tensions. This means that oil prices may notbe bullish but occasional events may distort the prices. The DavosSummit is on, and the International Energy Agency has released areport in which it highlights the state of affairs as far as oil is concernedand also on clean energy alternatives for the world. Oil producers andoil companies have faced adverse conditions on account of twofactors, the first is that the profitability of the oil business has comedown in the recent years, and secondly, the awareness of the need forclean energy to support climate initiatives is on the rise. The alternate energy sources and the spend on those sourceshave gone up, in areas like wind energy, biofuels, solar and electricity. This drives home the business risks which oilbusiness would face, which will only rise with passage of time. While this may be a long term phenomenon, the transition toelectric vehicles are happening at a rapid pace. In the coming years, almost all countries are going to tighten the climatenorms, and this may reduce, over a period of time, the reliance on oil. The production from Libya is in a standstill now,mainly due to the closure of some oil facilities and closure of all major ports.


MANAGEMENT

Gold and Oil May Remain Subdued…

01

/01

/20

08

01

/08

/20

08

01

/03

/20

09

01

/10

/20

09

01

/05

/20

10

01

/12

/20

10

01

/07

/20

11

01

/02

/20

12

01

/09

/20

12

01

/04

/20

13

01

/11

/20

13

01

/06

/20

14

01

/01

/20

15

01

/08

/20

15

01

/03

/20

16

01

/10

/20

16

01

/05

/20

17

01

/12

/20

17

01

/07

/20

18

01

/02

/20

19

01

/09

/20

19

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

1,800.0

2,000.0 Gold USD

0

20

40

60

80

100

120

140

160 Brent Crude $/Barrel

02

-Ja

n-0

8

02

-Au

g-0

8

02

-Ma

r-0

9

02

-Oct

-09

02

-Ma

y-1

0

02

-De

c-1

0

02

-Ju

l-11

02

-Fe

b-1

2

02

-Se

p-1

2

02

-Ap

r-1

3

02

-No

v-1

3

02

-Ju

n-1

4

02

-Ja

n-1

5

02

-Au

g-1

5

02

-Ma

r-1

6

02

-Oct

-16

02

-Ma

y-1

7

02

-De

c-1

7

02

-Ju

l-1

8

02

-Fe

b-1

9

02

-Se

p-1

9

REIT

The Real Estate Investment Trust (REIT) is structured like Mutual Funds (MFs), in the sense that it allows pooling ofinvestor money to buy a particular asset. REITs, as the nomenclature suggests, invest in income generating real estateassets. The investors benefit by way of dividend-like income and also by valuations gains in the underlying real estateassets over a period of time. To provide liquidity, REIT units are compulsorily listed on stock exchanges.

Embassy Office Parks

Embassy Office Parks is India's first publicly-listed Real Estate Investment Trust (REIT). It owns and operates a 33 million

square feet (msf) portfolio of seven Grade A office parks and four city-center office buildings in Bengaluru, Mumbai, Puneand the National Capital Region (NCR). Embassy Office Parks' portfolio has 24.8 msf completed by area, runs at 94.7%occupancy as of September 30, 2019. The portfolio also comprises strategic amenities, including two completed (includingthe Four Seasons hotel at Embassy One), two under-construction hotels, and a 100MW solar park supplying renewableenergy to park tenants.

Source: Embassy Office Parks REIT – Investor Factsheet Q2FY20

Suitability

As mentioned earlier, REITs' main sources of value accretion are mark-to-market (MTM) gains in the underlying real estateassets and the rental income from these assets. The influence of real estate investments on the unit valuation gives it a riskprofile similar to equity asset class and also having a mandate to make regular payments from the accruals. The EmbassyREIT was listed at a price of Rs. 300 per unit in Mar'19 and is currently trading at Rs. 413 per unit (as on 27th Jan'20),translating into healthy MTM gains. Conversely a sharp gain in valuation impacts the dividend yield; the dividend yield forFY20 stands at 5.6%, based on current valuations, which is lower than YTMs of some of the debt mutual fund schemes.

The product is not suitable for investors aiming at regular dividend-like income, owing to the higher influence of real estateMTM on the valuations. Given the equity-esque risk profile, investors seeking regular income could consider makinginvestments if the correction in valuations push the dividend yield into double digits, where they can also fall-back on thesafety net offered by periodic mark-ups in rentals. At the current juncture, Embassy REIT would be suitable for investorslooking to allocate investments to real estate sector. It provides an ideal opportunity to participate in the potential pricegains from some of the marquee commercial properties in India.


MANAGEMENT

Embassy Office Parks REIT

% of Rentals

IBM

Cognizant

NTT Data

Cerner

Google India

PwC

NOKIA

JP Morgan

Lowe’s

L&T Infotech

Total

Top 10 Tenants

13%

10%

5%

3%

3%

2%

2%

2%

2%

2%

44%

Technology

Technology

Technology

Healthcare

Technology

Research, Consulting & Analytics

Telecom

Financial Services

Retail

Technology

Sector

Financial Highlights

Portfolio Area: 32.7 msf

Completed Area: 24.8 msf

Development Area: 7.9 msf

Commercial Offices: 11 (75 Buildings)

Occupancy: 94.7%

Operating Highlights

Revenue: Rs. 5,206 mn, +15%, YoY

Contribution: 88% Offices (12% Ancillary)

EBITDA: Rs. 4,194 mn, +12%, YoY

Distribution per Unit: Rs. 6 (YTD Rs. 11.4)

FY20 Dividend Yield: 5.6%

Enhanced Efficiency Model: En Ef Model

MANAGEMENT

Fund Selection Process

Enhanced Efficiency Model or En Ef Model is a proprietary model, which is a parametrized scheme selection model,developed by a team of experts, and having a performance track record of more than a decade, helping investors makescientific and objective choice of funds. The model brings together return based factors as well as risk based factors whileidentifying the potential performers.

Alpha

Scanningfunds forcompliancewithhygienefactors

Beta

Fundsevaluatedon returnbased andrisk basedfactors

Gamma

Comprehensiveranking ofFunds

Omega

Final FundList andModelPortfolio

Equity Schemes Selection Process

Debt Schemes Selection Process

Hygiene Factors

Minimum Scheme AUM

Minimum Track Record

Ranking Parameters

RecommendedSchemes

▪ Point to Point

Absolute / CAGR

Returns

▪ Average Rolling

Returns

▪ Downside Risk

▪ Net Selectivity

▪ Treynor Ratio

▪ Information Ratio

▪ Outperformance Ratio

▪ Portfolio Composition

(Sector / Company)

▪ Sector Concentration

▪ Stock Concentration

▪ AMC Lineage / Pedigree

▪ AMC Equity strategy

▪ AMC Size

▪ Fund Management

Experience

▪ Fund Management

Strength

Risk RatioScheme Returns Scheme Risk Portfolio Analytics Qualitative Factors

Hygiene Factors

Minimum Scheme AUM

Minimum Track Record

Ranking Parameters

RecommendedSchemes

▪ Point to Point

Absolute / CAGR

Returns

▪ Average Rolling

Returns

Risk RatioScheme Returns

▪ Semi Standard Deviation

▪ Sharp Ratio

Scheme Risk

▪ AMC Lineage / Pedigree

▪ AMC Debt strategy

▪ AMC Size

▪ Fund Management

Experience

▪ Fund Management

Strength

Qualitative Factors

▪ Credit Quality

Average Maturity /▪

Modified Duration

▪ YTM

Portfolio Analytics

Scheme Size▪



Recommended Equity Funds

MANAGEMENT

Return as on 15th January 2020. Source : ACE MF

Large & Mid CapSchemes

Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

5339

2239

9516

2847

1016

1568

Miyush Gandhi

Taher Badshah

Neelesh Surana

Saurabh Pant

S. Krishnakumar

Canara Rob Emerg Equities Fund

Invesco India Growth Opp Fund

Mirae Asset Emerging Bluechip

SBI Large & Midcap Fund

Sundaram Large and Mid Cap Fund

Tata Large & Mid Cap Fund

Benchmark

NIFTY 200 - TRI

Nifty Large Midcap 250 Index - TRI

S&P BSE 250 Large Mid Cap65:35 Index - TRI

3.73

2.24

4.19

3.44

2.50

2.29

2.60

3.77

3.56

10.23

7.17

13.04

9.12

7.16

8.35

8.76

10.71

10.27

8.43

10.01

12.17

6.56

9.78

7.55

7.02

7.59

8.30

5.80

7.51

10.78

4.59

8.14

10.50

5.29

3.96

5.17

11.95

13.95

18.58

8.87

13.24

16.05

12.22

9.40

11.12

CAGR Returns (%)Absolute Returns (%)

0.22

5.37

4.51

1.02

5.14

3.81

4.97

0.69

2.51

13.69

14.74

16.90

11.99

14.22

11.59

13.71

12.74

13.12

11.75

10.50

15.68

9.42

10.70

8.83

9.12

9.91

9.75

1Year

9Months

Large Cap Schemes Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

10212

301

25025

16873

12955

Axis Bluechip Fund

Canara Rob Bluechip Equity

Fund

ICICI Pru Bluechip Fund

Mirae Asset Large Cap Fund

Nippon India Large Cap Fund

Benchmark

NIFTY 100 - TRI

NIFTY 50 - TRI

S&P BSE 200 - TRI

2.04

2.63

2.45

1.95

2.63

2.27

2.13

2.68

10.64

10.96

6.78

7.62

3.48

7.21

7.16

7.50

14.10

12.13

6.36

7.15

1.37

6.15

6.68

5.80

20.90

18.19

11.56

14.44

8.03

13.60

14.85

12.61


12.65

9.92

4.63

5.62

3.34

6.85

8.67

5.41

19.83

15.63

12.44

14.99

13.32

14.46

15.17

13.98

10.50

9.60

9.13

11.59

8.66

9.41

9.14

9.44

1Year

9Months

Shreyash Devalkar

Shridatta

Bhandwaldar

Anish Tawakley

Gaurav Misra

Sailesh Raj Bhan

4.98

8.36

7.26

9.03

9.30

8.13

8.21

8.76

Focused Fund Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

9110

8920

551

6924

1056

Jinesh Gopani

Anand Radhakrishnan

Mayur Patel

R. Srinivasan

Rahul Baijal

Axis Focused 25 Fund

Franklin India Focused Equity

Fund

IIFL Focused Equity Fund

SBI Focused Equity Fund

Sundaram Select Focus

Benchmark

NIFTY 50 - TRI

500 - TRIS&P BSE

2.73

2.67

3.61

2.89

1.64

2.13

3.18

6.72

9.54

10.86

8.80

7.73

8.21

9.20

11.76

3.11

13.00

9.19

7.97

7.16

7.39

13.50

3.16

16.15

8.90

9.29

6.68

5.01

20.32

11.66

28.22

19.34

15.42

14.85

11.60


7.72

1.48

8.27

5.89

7.81

8.67

3.42

18.59

11.26

15.18

16.86

15.98

15.17

13.27

12.64

8.06

11.20

11.21

8.81

9.14

9.20

1Year

9Months

Chandraprakash Padiyar

MANAGEMENT



Small Cap Schemes Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

1542

799

5941

8525

3156

Anupam Tiwari

Sankaran Naren

Venugopal Manghat

Samir Rachh

R. Srinivasan

Axis Small Cap Fund

ICICI Pru Smallcap Fund

L&T Emerging Businesses Fund

Nippon India Small Cap Fund

SBI Small Cap Fund

Benchmark

Nifty Smallcap 100 - TRI

Nifty Smallcap 250 - TRI

S&P BSE Small-Cap - TRI

5.75

7.05

7.11

9.11

4.04

10.23

10.39

9.01

9.31

11.97

9.51

13.20

8.06

15.37

15.51

13.90

14.89

7.82

3.55

7.95

9.53

4.00

5.21

6.97

19.02

7.43

-3.06

1.42

5.31

-7.25

-4.80

-2.94

23.83

16.11

-1.87

4.31

10.66

-2.35

-0.59

0.34


5.85

-6.21

-10.38

-9.08

-8.15

-18.13

-16.31

-14.07

15.12

7.12

9.42

10.15

14.70

1.22

3.04

5.51

11.58

6.27

10.80

10.22

13.56

4.13

4.91

6.05

1Year

9Months

MultiCap Schemes Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

1634

3267

23737

29598

10343

10217

Shridatta Bhandwaldar

Atul Bhole

Prashant Jain

Harsha Upadhyaya

Sailesh Raj Bhan

Ajay Tyagi

Canara Rob Equity Diver Fund

DSP Equity Fund

HDFC Equity Fund

Kotak Standard Multicap Fund

Nippon India Multi Cap Fund

UTI Equity Fund

Benchmark

NIFTY 200 - TRI

NIFTY 500 - TRI

S&P BSE 500 - TRI

2.95

3.54

2.48

2.97

3.43

4.29

2.60

3.11

3.18

8.01

7.69

8.63

8.85

9.71

10.91

8.76

9.19

9.20

8.61

12.47

1.18

7.69

2.70

12.63

7.02

7.17

7.39

7.96

12.06

0.77

7.85

0.16

7.67

5.29

4.83

5.01

14.69

20.98

7.51

15.41

3.46

14.74

12.22

11.50

11.60


7.09

4.50

1.13

6.00

-0.11

8.10

4.97

3.25

3.42

15.39

14.06

11.22

13.86

11.87

14.50

13.71

13.13

13.27

8.79

9.12

7.36

10.71

5.85

9.04

9.12

9.06

9.20

1Year

9Months

Mid Cap Schemes Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

Shreyash Devalkar

R. Janakiraman

Vinit Sambre

Pranav Gokhale

Pankaj Tibrewal

Manish Gunwani

16.45

7.27

13.97

8.74

14.66

10.38

1.72

5.40

3.12


1Year

9Months

Axis Midcap Fund

Franklin India Prima Fund

DSP Midcap Fund

Invesco India Midcap Fund

Kotak Emerging Equity Fund

Nippon India Growth Fund

Benchmark

Nifty Midcap 100 - TRI

Nifty Midcap 150 - TRI

S&P BSE Mid-Cap - TRI

4141

7583

6957

674

5888

6844

2.58

3.88

4.98

4.84

5.92

5.79

5.34

5.26

4.56

6.99

8.37

11.59

10.46

13.33

11.67

14.20

13.31

11.35

12.91

6.18

11.73

10.09

11.47

7.83

5.42

7.92

7.76

11.55

1.63

8.53

5.46

8.60

5.13

-1.47

1.79

0.86

8.27

-2.24

-0.26

-0.74

-0.46

-1.77

-8.46

-5.27

-6.59

18.08

9.54

10.84

11.72

11.31

10.84

6.68

10.85

8.17

9.95

8.65

10.34

9.03

10.81

8.76

8.04

10.17

9.11


MANAGEMENT



Aggressive Hybrid Fund Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

2824

23073

3190

31620

1832

Shridatta Bhandwaldar

Sankaran Naren

Neelesh Surana

R. Srinivasan

Rahul Baijal

2.28

3.25

2.03

2.15

1.89

2.17

6.74

8.48

8.46

6.01

6.53

6.22

7.77

5.69

6.29

7.49

7.38

5.86

8.11

5.51

6.83

9.40

8.28

7.00

13.43

10.77

13.37

15.16

12.06

12.06


6.82

3.89

6.36

6.64

6.91

6.63

11.78

9.70

12.60

12.84

11.25

11.61

9.01

9.17

—

9.72

8.24

9.27

1Year

9Months

Canara Rob Equity Hybrid Fund

ICICI Pru Equity & Debt Fund

Mirae Asset Hybrid Equity Fund

SBI Equity Hybrid Fund

Sundaram Equity Hybrid Fund

Benchmark

CRISIL Hybrid 35+65 -Aggressive Index

ELSS Schemes Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

21473

1005

6707

988

1068

3066

Jinesh Gopani

Cheenu Gupta

Sankaran Naren

Amit Ganatra

Harsha Upadhyaya

Neelesh Surana

3.05

2.90

3.98

2.25

3.94

3.31

3.11

2.68

5.95

7.04

10.89

7.90

10.65

11.76

9.19

8.76

10.46

7.06

6.43

8.74

8.45

9.97

7.17

7.50

12.56

6.41

4.81

6.88

9.43

10.05

4.83

5.80

19.99

12.33

10.53

11.79

16.17

17.36

11.50

12.61


8.36

7.02

4.81

3.92

5.17

5.69

3.25

5.41

17.33

14.04

11.16

13.02

12.75

17.54

13.13

13.98

10.86

8.39

8.39

9.87

9.43

—

9.06

9.44

1Year

9Months

Axis Long Term Equity Fund

Canara Rob Equity Tax

Saver Fund

ICICI Pru LT Equity Fund

(Tax Saving)

Invesco India Tax Plan

Kotak Tax Saver Fund

Mirae Asset Tax Saver Fund

Benchmark

NIFTY 500 - TRI

S&P BSE 200 - TRI

Value / Contra Schemes Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

HDFC Capital Builder Value

Fund

Invesco India Contra Fund

Kotak India EQ Contra Fund

Nippon India Value Fund

UTI Value Opp Fund

Benchmark

NIFTY 100 - TRI

NIFTY 500 - TRI

S&P BSE 200 - TRI


1Year

9Months

2.71

3.53

3.05

2.98

3.69

2.27

3.11

2.68

Miten Lathia

Taher Badshah

Shibani Kurian

Meenakshi Dawar

Vetri Subramaniam

4496

4596

882

3133

4560

7.67

8.95

7.84

7.05

10.96

8.13

9.19

8.76

2.31

7.19

8.65

4.21

9.64

7.21

7.17

7.50

-3.69

4.61

6.87

2.44

6.69

6.15

4.83

5.80

1.99

9.52

13.46

8.05

12.89

13.60

11.50

12.61

-2.93

1.67

7.00

-1.85

4.30

6.85

3.25

5.41

9.46

13.68

14.99

11.54

11.45

14.46

13.13

13.98

7.67

10.73

9.62

7.94

6.09

9.41

9.06

9.44



Recommended Debt Funds

MANAGEMENT


Liquid Schemes Fund ManagerAverageMaturityin Days1

Month2

Week

AUM(Rs in Cr.) 3

Months6

Months1

Year YTM

Annualised Return (%)

40854

29119

12529

5130

24235

30477

Kaustubh Gupta

Devang Shah

Pallab Roy

Kapil Punjabi

Anju Chhajer

Amandeep Singh Chopra

4.86

4.89

5.00

5.03

4.81

4.80

5.28

5.01

5.10

5.23

5.11

4.98

4.96

5.60

5.17

5.22

5.53

5.26

5.16

5.10

5.59

5.68

5.64

5.95

5.69

5.65

5.58

5.97

6.59

6.54

6.78

6.57

6.60

6.52

6.76

5.42

5.29

5.72

5.38

5.38

5.31

47.45

62.00

32.85

43.80

46.00

43.80

Aditya Birla SL Liquid Fund

Axis Liquid Fund

Franklin India Liquid Fund-

Super Inst

HSBC Cash Fund

Nippon India Liquid Fund

UTI Liquid Cash Plan

Benchmark

Crisil Liquid Fund Index

Overnight Fund Fund ManagerAverageMaturityin Days1

Month2

Week

AUM(Rs in Cr.) 3

Months6

Months1

Year YTM


1863

9765

3479

2802

Aditya Pagaria

Anil Bamboli

Deepak Agrawal


4.51

4.29

4.49

4.35

5.28

4.43

4.60

4.46

4.61

4.53

5.60

4.62

4.73

4.64

4.74

4.72

5.59

4.82

5.00

4.91

5.00

4.98

5.97

5.09

—

5.47

5.56

5.55

6.76

5.67

4.91

4.89

4.87

4.96

1.00

1.00

—

0.99

Axis Overnight Fund

HDFC Overnight Fund

Kotak Overnight Fund

UTI Overnight Fund

Benchmark


Nifty 1D Rate Index

Arbitrage Fund Fund Manager1

Month

AUM(Rs in Cr.) 3

Months6

Months2

Year3

Years5

Years

Lovelish Solanki

Bhavesh Jain

Hiten Shah

Rajeev Gupta


1Year

9Months

Aditya Birla SL Arbitrage Fund

Edelweiss Arbitrage Fund

Kotak Equity Arbitrage Fund

UTI Arbitrage Fund

Benchmark

Nifty 50 Arbitrage Index

5493

3870

17486

3309

4.68

4.65

4.64

4.86

7.08

4.81

4.63

4.64

4.86

4.72

5.43

5.30

5.21

5.33

5.47

6.24

6.17

6.06

6.16

6.49

6.29

6.24

6.20

6.30

6.78

6.09

6.14

6.19

6.18

5.58

6.00

6.10

6.14

6.08

—

6.35

6.51

6.44

6.38

—


MANAGEMENT



Kaustubh Gupta

Anil Bamboli

Harshal Joshi

Rajeev Radhakrishnan

Ultra Short Term

Schemes

Fund ManagerAverageMaturityin Days1

Month2

Week

15847

8660

4408

12192

AUM(Rs in Cr.)

3Months

6Months

1Year YTM


Aditya Birla SL Savings Fund

HDFC Ultra Short Term Fund

IDFC Ultra Short Term Fund

SBI Magnum Ultra Short

Duration Fund

Benchmark


Crisil Short Term BondFund Index

6.65

5.08

5.61

5.99

5.28

8.50

6.23

5.01

5.35

5.64

5.60

9.68

6.56

5.56

6.03

6.28

5.59

7.01

7.56

6.72

7.07

7.21

5.97

8.41

8.29

7.63

7.86

7.82

6.76

9.51

6.31

5.71

5.78

6.15

189.80

122.00

150.00

182.50

Axis Treasury Advantage Fund

ICICI Pru Savings Fund

IDFC Low Duration Fund

Invesco India Treasury

Advantage Fund

SBI Magnum Low Duration Fund

Benchmark



Low Duration Schemes Fund ManagerAverageMaturityin Days1

Month2

WeekAUM

(Rs in Cr.)3

Months6

Months1

Year YTM


Devang Shah

Rahul Goswami

Anurag Mittal

Krishna Cheemalapati


3949

21306

5323

1567

8442

6.10

6.69

5.88

6.24

6.37

6.64

6.99

6.25

6.89

6.23

5.28

8.50

6.61

8.31

6.06

6.28

6.16

5.60

9.68

6.76

7.57

6.36

6.88

6.55

5.59

7.01

7.91

7.96

7.49

8.07

7.53

5.97

8.41

8.65

8.67

8.25

8.73

8.13

6.76

9.51

329.00

412.64

289.00

319.00

335.80


MANAGEMENT



Gilt Schemes Fund ManagerAverageMaturityin Years

Annualised Return (%)AUM

(Rs in Cr.) 1Month

3Months

6Months

1Year

3Years

5Years

CAGR Return (%)

YTM

Aditya Birla SL G-Sec Fund

DSP G-Sec Fund

IDFC G-Sec-Invest

Nippon India Gilt Securities Fund

SBI Magnum Gilt Fund

Benchmark

I-BEX (I-Sec SovereignBond Index)

Pranay Sinha

Vikram Chopra

Suyash Choudhary

Prashant Pimple

Dinesh Ahuja

231

596

462

1118

1945

10.74

16.25

20.83

13.40

17.06

13.35

2.81

2.96

3.44

2.99

5.62

6.65

2.05

3.89

3.18

2.88

3.97

3.29

10.99

12.36

12.57

11.77

13.12

10.25

6.85

6.37

7.43

7.28

6.99

7.09

8.57

8.05

8.21

8.83

8.64

8.65

6.87

6.84

7.09

6.86

5.87

8.30

11.56

12.75

10.04

5.97

Kaustubh Gupta

Pallab Roy

Anil Bamboli

Amit Tripathi


Aditya Birla SL Money

Manager Fund

Franklin India Savings Fund

HDFC Money Market Fund

Nippon India Money Market Fund

UTI Money Market Fund

Benchmark



Money Market Schemes Fund ManagerAverageMaturityin Days1

Month2

WeekAUM

(Rs in Cr.)3

Months6

Months1

Year YTM


10878

4724

9132

3805

7515

6.06

5.57

4.80

5.50

5.54

5.28

8.50

5.67

5.24

4.98

5.40

5.33

5.60

9.68

5.94

6.01

5.76

6.05

5.80

5.59

7.01

7.02

7.46

7.04

7.10

6.92

5.97

8.41

7.90

8.33

7.98

7.95

7.86

6.76

9.51

5.91

5.75

5.41

5.55

5.69

142.35

138.70

64.00

110.00

115.05

Short Term Schemes Fund ManagerAverageMaturityin Years

Devang Shah

Anil Bamboli

Suyash Choudhary

Deepak Agrawal


2.50

3.05

2.23

2.94

2.51

3Months

1Month

AUM(Rs in Cr.) 6

Months1

Year3

Years5

Years


8.94

10.06

7.82

9.33

9.46

9.68

8.10

8.57

7.57

7.35

7.42

7.01

8.48

8.79

8.58

7.84

8.17

8.41

9.62

9.47

9.54

9.38

9.39

9.51

7.16

7.62

7.25

6.89

6.95

7.36

7.87

8.17

7.76

7.73

7.78

8.11

CAGR Return (%)

YTM

6.65

7.17

6.79

7.16

7.03

Axis Short Term Fund

HDFC Short Term Debt Fund

IDFC Bond Fund - Short Term

Plan

Kotak Bond Short Term Fund

SBI Short Term Debt Fund

Benchmark

Crisil Short Term Bond

Fund Index

4404

10519

11757

10602

9625


MANAGEMENT


Corporate Bond Schemes Fund ManagerAverageMaturityin Years

1.98

4.22

2.40

0.00

1.72

3Months

1Month

AUM(Rs in Cr.) 6

Months1

Year3

Years5

Years


17587

12320

11339

14568

4418

8.30

10.21

10.11

4.78

7.94

9.68

CAGR Return (%)

YTM

6.68

6.95

6.96

5.64

6.82

Maneesh Dangi

Anupam Joshi

Rohan Maru

Anurag Mittal

Deepak Agrawal

7.41

6.76

8.42

5.74

7.58

7.01

7.60

6.86

8.30

7.17

8.61

8.41

9.48

10.01

9.71

8.16

9.43

9.51

7.55

7.45

7.35

6.68

7.86

7.36

8.37

8.39

8.19

—

8.24

8.11

Aditya Birla SL Corp Bond Fund

HDFC Corp Bond Fund

ICICI Pru Corp Bond Fund

IDFC Corp Bond Fund

Kotak Corporate Bond Fund

Benchmark

Crisil Short Term Bond

Fund Index


Banking & PSU Schemes Fund ManagerAverageMaturityin Years

Annualised Return (%)AUM

(Rs in Cr.)

12801

12627

4204

5070

3423

1Month

3Months

6Months

1Year

3Years

5Years

CAGR Return (%)

YTM

Aditya Pagaria

Anurag Mittal

Deepak Agrawal

Anju Chhajer


Axis Banking & PSU Debt Fund

IDFC Banking & PSU Debt Fund

Kotak Banking and PSU Debt

Fund

Nippon India Banking &

PSU Debt Fund

SBI Banking and PSU Fund

Benchmark


6.79

6.95

7.09

6.75

7.06

2.40

3.14

3.81

2.73

3.40

7.98

8.95

11.18

9.11

12.20

9.68

7.95

8.10

8.79

7.42

8.54

7.01

9.06

9.15

8.04

8.62

7.99

8.41

10.33

10.97

10.76

10.48

9.82

9.51

8.31

8.02

7.73

7.44

7.82

7.36

8.42

8.10

8.41

—

8.09

8.11

Focus on riskadjusted returns

Steady performanceover medium term

Low portfolio turnover

L.E.A.D.PMS

Lower portfolio volatilityand high liquidity

Portfolio of 15structural growth cos

No use of leverage orHigh debt cos

Features of a L.E.A.D. Portfolio

L.E.A.D. PMS – Core Investment Framework


Emkay L.E.A.D PMS

MANAGEMENT

Leadership

• Market-share Leadership

• Profit-share Leadership

(Apple vs Rest of the manufacturers)

• Cost Leadership

(Export Oriented sectors like IT, Textiles,Chemicals)

• Growth Leadership

(Companies with best growth in the sector likePrivate banks vs PSU Banks)

• Product Leadership

Strong Management Credentials

• Track record of past decisions

• Comments v/s Delivery

• Future-vision

• Avoid aggressive accounting policies

• Management background

Strong Earnings Visibility & Quality

• How big the sector can be (3x, 4x....)

• Revenue/PAT/Cash-flow growth

• RoE, RoCE analysis

• High operating/Free cash-flow generation

Dependable

• Identifying Price-Value gap with focus

on margin of safety

• Comparative valuations

• Market-cap vs Opportunity size

Moat / Niche in the Business

• How different is the company

• Edge, Entry-barrier, Competition,

Pricing-power

• Bargaining power of the indust


MANAGEMENT

Emkay L.E.A.D PMS

Focus on Capital Preservation

L.E.A.D. PMS – Performance and Portfolio Top 5 Holdings

Strong Riskmanagement strategy with focus

on Capital Preservation

Focus on large and mid cap companies

• >50% exposure in companies with Mcap >USD 3bn

• Nil exposure in small cap companies

(Top 250 cos as per Mcap)

• Companies with minimum turnover of INR 500cr

Diversification acrossindustries and companies

• < 30%* exposure in one sector

• <10%* exposure in one stock

• Maximum investment in 15 stocks

• <20%* exposure in turnarounds or special situationstocks

*At the time of initiation

Earnings growth andQuality Filters

• ROCE > COE

• Earnings growth > GDPgrowth

Risk Management

• >15% price movement in a month

triggers review of the stock

• Focus on Liquidity risk

• No use of leverage

• Monthly portfolio review

Top 5 Holdings

Cholamandalm Invst. & Fin. Co. Ltd.

Berger Paints

Pidilite Industries Ltd.

Whirpool of India Ltd.

Aarti Industries Ltd.

Total

Holding (%)Company

7.20

7.50

7.00

7.10

6.70

35.50

Returns as on 31 Dec. 2019. *Inception Date 1 November 2018st st

Performance in %

1Month

3Month

6Month

2.90

0.50

L.E.A.D

Nifty 200

1Year

4.10

5.80

13.90

2.90

21.60

8.70

SinceInception*

28.10

12.10

Performance in %

FY19-20(Till Date)

-3.50

2.20

-5.60

EIDEA

Alpha

NIFTY 500

SinceInceptionCAGR*

FY18-19 FY17-18 FY16-17 FY15-16 FY13-14FY14-15

0.60

8.40

-7.80

17.20

11.50

5.70

38.80

23.90

14.90

-4.00

-7.50

3.50

30.60

17.70

12.90

57.40

33.60

23.80

15.40

9.80

5.60

*Inception Date - May 30 , 2011. Return as on 3th

1 Dec. 2019st

ASK Indian Entrepreneur Portfolio

Investment Strategy

• Identify large and growing business opportunities.

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

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

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

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

*Inception Date 18 April 2016. Return as on 3th

1 Dec. 2019.st

Performance in %

3 Month 1 Year1 Month 2 YearCAGR

IEP

BSE 500

Nifty

0.68%

0.64%

0.93%

6 Month

7.89%

2.46%

3.22%

2.50%

5.79%

6.05%

12.44%

7.75%

12.02%

12.38%

7.88%

7.99%

3 YearCAGR

6.95%

2.19%

7.47%

5 YearCAGR

18.47%

8.96%

9.35%

SinceInceptionCAGR*

16.20%

12.38%

14.11%

Investment strategy:

• To construct a high quality, high conviction, long-only portfolio of approximately 20 stocks & customized portfolio; Nomodel portfolio approach.

• Allocation across industries and capitalization ranges including companies which are typically under-researched andoffer a higher return potential.

• Limits individual stock exposure to 10% at cost, limits sector exposure to 25% at cost, limits individual business groupsto 25% at cost; not more than 10% of the free float of individual company. No derivatives/leveraged trades

• ENAM like to own businesses not stocks & follow a bottom up stock picking.

• Seek to identify high-quality businesses that are structurally well-positioned, have sustainable competitive advantagesand strong execution capability for consistent long-term growth


PMS Products Update

MANAGEMENT

ENAM India Diversified Equity Advantage (EIDEA) Portfolio

• Emkay Investment Managers Ltd is a SEBIregistered PMS service provider with overallPMS track record of over 10 years.

• Emkay Capital Builder allows complete

flexibility in selection of stocks across marketcapitalization.

• Capital preservation and appreciation over-

time through an “absolute returns” approach.

• Investing in sectors and companies expected

to benefit from the fast-paced growth of theIndian economy and having a competitiveadvantage with a significant size that willbenefit both from market share gains andgrowth of the opportunity size.

• Our unique proprietary process seeks to

d i f f e r e n t i a t e b u s i n e s s o n b a s i s o fmanagement capability, integrity and skin inthe game to deliver growth over-time.

• Strategy consistently seeks to identify such

business where intrinsic value of the businessis good and the price is reasonable.

• Focused portfolio with no over-diversification.

• Capital Builder Benchmark - Nifty 500.

Emkay Capital Builder PMS Strategy

Fund Management Team

Sachin Shah - Fund Manager

Mr. Shah is Chatered FinancialAnalyst and has 18years of experience in the Portfolio Managementspace with Emkay. He has provided valuableinputs in the establishment of a well-documentedinvestment process E-QUAL Risk (EmkayProprietary Model) - a key factor behind oursplendid performance.

Top 10 Stock Holding


Emkay Capital Builder PMS

MANAGEMENT

Emkay PMS Guiding principles

No Model PortfolioPatience not just after

investing but evenbefore investing

Strict PurchasePrice DisciplineGet client into a

"positive cycle" at thetime of investing to

ensure achievementof "Absolute Returns”

Absolute ReturnFocus

Avoid capital lossover client's

investment horizonof 2-3 years

Returns as on 31 Dec. 2019. *Inception Date 1 April 2013st st

ICICI Bank

Divi’s Lab

HDFC Bank

Nesco

Sundram Fasteners

Reliance Industries

Sun Pharma

M & M Ltd

Gujarat Pipavav Ports Ltd

Apar Industries

Total

Holding (%)Company

15.27

10.90

9.26

9.10

8.20

7.22

3.56

3.44

3.35

3.18

73.48Performance in %

FY 14 FY15 FY 16 FY 17 FY 18 FY 19 FY 20 YTD

24.50

17.70

6.80

53.80

33.60

20.20

-4.40

-7.50

3.10

27.50

23.90

3.60

10.10

11.50

-1.40

-0.90

8.40

-9.30

-2.00

2.50

-4.50

Emkay PMS

(Model Client)

NIFTY 500

Outperformance

Benchmark

SinceInceptionCAGR*

14.50

12.70

1.80


Estate and Succession Planning

MANAGEMENT

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

Who needs Estate Planning?

Joint Family Nuclear Family• •

Businessmen Professionals• •

Multiple marriages Asset Protection needs• •

NRI family members Family with special children• •Inheritance tax planning Family with no legal heir• •

Emkay Estate Planning Services

1. Drafting Will:

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

2. Gifts during lifetime:

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

3. Formation of Private Trust:

A Trust is a relationship whereby property is transferred by one party(Settlor) to be held and managed by anotherparty(Trustees) for the benefit of third party (Beneficiaries), governed by the Indian Trust Act, 1882. Some of theadvantages of a Private Trust are:

• Multi-generation succession and provision for wishes beyond lifetime of Settlor

• Trust can be structured to control the timing and amount of distributions

• Provide for dependent relatives and to provide for ongoing financial management

• Protection of assets from outside claims and from disputes within the family

• To hold the shares of company for business continuity & for delinking ownership from management

• Avoids probate

• Privacy protection

• Inheritance tax planning and avoid forced heirship rules for NRIs

4. Charitable Trust :

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

5. Family Business Succession:

Family business succession is the process of transitioning the management and the ownership of the business to nextgeneration of family members. The family component plays a crucial role here and needs to be effectively integrated inthe transition process.

6. Obtaining Probate/Succession Certificate:

Probate establishes the validity of a Will in Court. In absence of a Will, a succession certificate is required to beobtained from the Court for transferring the assets of a deceased.

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


Planning For Your Minor Children And Appointing A Guardian

MANAGEMENT

Succession planning for minor children is a must. In an unfortunate event of demise of both the parents, a properly draftedWill would ensure that the parents appoint a guardian of their choice for the minor children. In absence of a will or if the willis silent with respect to guardianship, the court will appoint the guardian and court chooses someone who it thinks iscompetent to be a guardian of minor child without knowing the preference of parents. This may cause disputes amongrelatives of the mother and father of the child on guardianship claim, leaving the child feeling emotionally stressed; andeventually it may result in guardianship being granted to a person whom the parents wouldn't have chosen.

While appointing a guardian for a minor child one may choose a separate guardian for personal care and custody of thechild and a separate guardian to manage the property which the child will inherit from parents. For example, if a child liveswith his grandmother, she can be appointed as guardian for personal care and the child's uncle can be appointed tomanage the property until child attains the age of majority i.e. 18 years or above. Hence, choosing a right guardian willrequire careful deliberation by the parents and guardian should be someone who shares the values, life priorities and havean established relationship with your child.

The appointed guardian will manage the property you leave behind only until the child attains the age of eighteen years.There are certain restrictions to deal with immovable assets left by parents for the benefit of minor child. The guardiancannot sell, transfer, gift or mortgage immovable assets without the court's permission and court grants such permissiononly if it is necessary for the best interest of child. Therefore, having investments in sufficient financial assets also becomesimportant.

It is extremely important that as part of the overall financial planning for the family, specific plan may be prepared forchildren. This planning should address the requirements for education, healthcare, travel, marriage etc. of the children sothat sufficient funding is available for these critical events in future.

As soon as child turns eighteen, he becomes legally independent to inherit and manage every penny you leave behind. Atsuch young age the child may not have the skill and knowledge to invest your hard-earned property which you have kept forthe well-being of your child and he may squander the money by taking wrong investment decisions. In order to avoid suchmishaps, parents can create a testamentary trust (trust created through a Will) to hold these assets even beyond the age ofmajority for the benefit of child. The trust will provide guidelines to the trustees for investment, administration anddistribution of assets for benefit of minor child and even afterwards. The trust would provide for child's day to dayexpenses, health, education and support. It could provide that your child will have the ability to withdraw funds when theyare older and wiser, say 50% to be withdrawn at age 25 and balance at age 30. The trust can mention that the trustees shallendeavor to invest the trust assets in risk free products which will generate a regular cash flow to meet day to day expensesand build a corpus to fund expenses for education, buying a house, marriage expenses etc. Enough discretion shall begiven to the trustees to provide for the best interest of the children under changing circumstances. If the parents outlivebeyond the age of minority/maturity of the child, then such a trust may never get created and the children can inheritdirectly. For larger estates creating an inter-vivos trust (trust created during lifetime) would be more beneficial which willcontinue for a longer time and can provide protection of assets from matrimonial and creditor claims.

It is also important to impart financial literacy to children about family wealth, investment strategies from a young age duringregular conversations so, that he can invest the wealth smartly in your absence.

Notes

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Model Portfolio

MANAGEMENT

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

Conserve – The primary objective continues to be capitalpreservation, but with marginally enhanced return generatingpotential. With an endeavour to earn better returns as compared toa pure debtportfolio, equityasset classallocation is introduced.

Steady – This portfolio is suitable for moderately aggressiveinvestors, aiming to earn higher returns on their investments butat the same time do not intend to expose entire portfolio to thevolatility of asset classes with high return generating potential.The allocation to equity asset class goes up, whilst the tilt remainsin favour of debt.

Build – The allocation to equity asset class is further enhancedas the primary investment objective moves towards capitalgrowth rather

than preservation of capital over the near term. As the equityallocation goes up, so does the investment horizon. A healthyexposure to debt asset class is also maintained to reduce theoverall volatility of returns.

Grow – The portfolio is suitable for aggressive investors withprimary investment objective of capital growth. The major part ofthe portfolio is maintained in equity asset class. To providestability to returns and to manage liquidity requirementseffectively, a portion of the portfolio is maintained in debt assetclass.

Multiply – The portfolio is suitable for aggressive investors in the“Accumulation Phase”. With minimal liquidity requirements, theentire portfolio is allocated in high return generating assets. Inorder to reduce the risks associated with asset classconcentration, Alternate Assets are introduced in the portfolio, soas to reduce the overall risk without compromising on the returngenerating potential.

Conservative Aggressive

Liquid Funds

Fixed deposits

Bonds/Tax Frees

UST/Low Duration/Arbitrage

FMPs/Interval Funds

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

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

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

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

Emkay Wealth -Guard

Emkay Wealth -Conserve

Emkay Wealth -Steady

Emkay Wealth -Build

Emkay Wealth -Grow

Emaky Wealth -Multiply

Investor Suitability

I . Debt - Short Term

II . Debt-Long Term

III. Equity

Short Term Funds

Income Funds

Credit Risk Funds

Gilt Funds

Equity Funds

Direct Equity

PMS

Private Equity

IV. Alternate Assets

Gold ETF/Funds

Real Estate Products/REITS

Structured Products

I+II+III+IV 100% 100% 100% 100% 100% 100%



Disclaimer

MANAGEMENT

Published by Mr.Amit Rawal – Research Division Emkay Wealth Management.

For content related queries contact at [email protected]

Designed and Printed at Sunny Printers,

Nand Kishore Industrial Premises, A-Wing, Gala No. 3, Off. Mahakali Caves Road, Near Paper Box, Andheri (E), Mumbai – 400 093.Contact No.: 9819391038.

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

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

Bhavesh Sanghvi, CEO - Emkay Wealth

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

Joseph Thomas, Head of Research - Emkay Wealth

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

Ashish Ranawade, Head of Products - Emkay Wealth

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

Parag Morey, Head of Sales - Emkay Wealth

A qualified CFA, Sachin brings in nearly two decades of experience in the portfolio management space. He hasplayed a pivotal part in the development of Emkay Portfolio Management Service's proprietary module - E-QUALRISK, which helps evaluate and compare listed companies objectively on major factors like management integrityand capability, wealth distribution to minority shareholders, information to shareholders and liquidity.

Sachin Shah, Fund Manager - Emkay Investment Managers

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

Ashish Todi, Head of Strategy & New Initiatives - Emkay Wealth

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

Namita Agarwal, AVP Succession Planning - Emkay Wealth

A management graduate from Mumbai University, Raj comes with over a decade of experience in the Indian equitymarket. As an equity strategist he is an expert at managing equity advisory (PMS/ ND-PMS/ Direct Equities) forwealth clients. In his past assignments he has also worked as a senior equity analyst tracking multiple sectors andmanaging event based trading strategies.

Raj Gala, Sr. Portfolio Manager - Emkay Wealth

LEADERSHIP PROFILE

Volume 16 January - February 2020 - Emkay

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Transcript of Volume 16 January - February 2020 - Emkay