DAIWA EQUITY FUNDDAIWA EQUITY FUND

Section 1 Group 2PAAATH

FT 12113 Anuja Dash

FT 12189 Pramod Ravi Shankar

FT 12127 Harendra Singh

FT 12168 Tushar Arora

FT 12104 Abhilash Mohapatra

FT 12102 Abhay Bohra

Introduction : Introduction : DAIWA EQUITY FUND An open ended equity scheme

Offer of Units of Rs. 10/- each for cash during the New Fund Offer and continuous offer for Units at applicable NAV based prices

Name of Mutual Fund: Daiwa Mutual Fund

Name of Asset Management Company: Daiwa Asset Management (India) Private Limited

Sponsor : Daiwa Asset Management Co. Ltd. is the sponsor of Daiwa Mutual Fund

Name of Trustee Company: Daiwa Trustee Company (India) Private Limited which holds the property of the Mutual Fund in trust for the benefit of the unit holders .

Daiwa Equity Fund –Section 1, Group 2 2

History of DAIWA as an History of DAIWA as an AMCAMC Daiwa Securities Group Inc., the parent company was

established in 1902 Daiwa Securities Group ‘s three core business segments

◦ Retail Securities◦ Wholesale Securities ◦ Asset Management

Daiwa Asset Management Co. Ltd. ("DAM"), the asset management arm of the Daiwa Securities Group was incorporated in 1959

Second-largest mutual fund management company in Japan

More than 300 Mutual Funds Managed world-wide USD 126 billion of assets under management. 109 years old diversified group with 51 years of

experience in Asset managementDaiwa Equity Fund –Section 1, Group 2 3

Scheme DetailsScheme Details

For initial Purchase Rs. 5,000/- and in multiples of Re. 1/- thereafter

No Entry Load Exit load – 1% of applicable NAV if redeemed

within 1 year of allotment, none after that Portfolio turnover of the Scheme is not expected

to be very high The benchmark for the Scheme is BSE-200 index

due to is like appropriate composition Redemption Options:

Growth option: No Dividend will be declared. Dividend option: Dividend Payout and Dividend

Reinvestment sub options

Daiwa Equity Fund –Section 1, Group 2 4

Investment ObjectivesInvestment Objectives Main Objective: Growth and income The Scheme seeks to generate long-

term growth of capital by investing in a diversified portfolio of predominantly equity and equity-related securities

Stocks that have sustainable business models, and potential for income and capital appreciation

Debt would also be used in the fund portfolio besides a wide range of other investment options like money market and derivative instruments

Daiwa Equity Fund –Section 1, Group 2 5

Investment Instruments Investment Instruments OptionsOptions Equity and equity related securities Debt obligations of the Government of

India, state and local governments , government agencies, statutory bodies, public sector undertakings, etc

Money market instruments Pass through, Pay through or other

Participation certificates Deposits of Scheduled Commercial Banks Foreign Securities Derivative instruments Other mutual funds

Daiwa Equity Fund –Section 1, Group 2 6

Equity – Debt AllocationEquity – Debt Allocation

InstrumentAsset Allocation

Risk ProfileMinimum MaximumEquity and equity related securities 65 100 HighDebt and Money market Instruments 0 35 Low to Medium

Daiwa Equity Fund –Section 1, Group 2 7

A mix of Equity and Debt instruments selected

Invest in companies with good growth prospects available at reasonable valuations. Combination of Growth and Value strategies to manage the portfolio.Select companies which have a significant probability of a healthy appreciation in the medium term

Bench Mark IndexBench Mark IndexBSE 200 has grown at mean rate of

20.76% and standard deviation of growth rate is 41.76%, which is very high for the past 19 years

So the Returns are very low and volatile, not worth the risk we are taking

Even for the past 5 years ie 2006 -2010 mean rate of 30% with standard deviation of growth rate is 55%

Daiwa Equity Fund –Section 1, Group 2 8

StatisticsStatisticsGrowth 1991-2010

Mean 20.76427624Standard Error 9.581937257Median 16.06557377Mode #N/AStandard Deviation 41.76669619Sample Variance 1744.45691Kurtosis -0.346008768Skewness 0.247390374Range 150.8921473Minimum -56.47590361Maximum 94.41624365Sum 394.5212485Count 19

Daiwa Equity Fund –Section 1, Group 2 9

StatisticsStatisticsGrowth 2006-2010

Mean 29.66523Standard Error 24.61734Median 39.54469Mode #N/AStandard Deviation 55.04605Sample Variance 3030.068Kurtosis 1.265268Skewness -1.01648Range 145.0572Minimum -56.4759Maximum 88.58131Sum 148.3261Count 5

Daiwa Equity Fund –Section 1, Group 2 10

Investor Profile Investor Profile AssumptionsAssumptionsInvestor Profile 25 – year old Steady job Has adequate insurance cover Regular cash flows in terms of

Salary paycheck Enough Emergency Cash ReserveTime Horizon – 3 to 5 yearsReturn Expectations – Greater than

index returns High Risk Appetite

Daiwa Equity Fund –Section 1, Group 2 11

Recommendation Recommendation We recommend that given the

said Fund’s investment objective and returns strategy vis-à-vis the investor profile and risk appetite , the investor should

BUY !!

Daiwa Equity Fund –Section 1, Group 2 12

Reasons for the Reasons for the RecommendationRecommendation Daiwa Group’s 100 year legacy

makes it trustworthy Experience and expertise as Asset

managers in the Japanese Market Alignment of investor expectations

with the scheme goals Aggressive equity exposure

presents an opportunity to earn high returns

The associated risks are within the young investor’s risk appetite

Daiwa Equity Fund –Section 1, Group 2 13

Daiwa Equity Fund –Section 1, Group 2 14