Saving for retirement usually is top priority for our customers especially as they advance towards retirement. It is though not the first priority amongst young investors. Many surveys have revealed that investors tend to postpone their plans for early retirement as they progress nearer to the retirement age, clearly indicating that in general we are not as prepared for retirement as we think.
Last few years have been tough specifically with respect to high inflation rates. This has made us conscious of the effect of inflation on real growth of our assets. Some expenses like medical expenses and education have grown at even faster rate than the reported consumer price inflation. The other risk in retirement planning is that we need
to plan for longer retired years with increase in quality of health services and overall longevity.
I feel that one of the biggest impediments to a retirement plan is inertia. Essentially, during the retired period, we depend on our financial assets for income and therefore, our approach towards retirement planning should be very structured. The first step to put a structure to a retirement plan is estimating how much income we would need for our daily expenses. While expenses will typically go down for a retiree, medical expenses are something one has to be concerned about.
It is a good idea to have a separate corpus for medical expenses based on current fitness, family history, coverage, if any, through the current employer, etc. A listing of current expenses minus the expenses which will be non-existent after retirement (e.g. children expenses) is a good way of estimating. Typically, this will be 60-70 percent of the current expenses. The other variables in the calculations are the expected longevity and inflation. With these, one can estimate the amount of
Anup BagchiMD & CEO
ICICI Securities Ltd.
1
corpus required at the time of retirement. This then should be the base of estimating how much we should invest every month to have that corpus at the time of retirement.
Retirement planning is typically construed as planning at the start of retirement. This is a misconception. Retirement planning needs to start at the beginning of one's career. The earlier we start the more time we have on our side to take risk with our investments and make higher returns. A long-term retirement plan needs to strike a balance between capital growth, risk management, protection, and tax planning.
Investments for retirement corpus should have a healthy portion of equity investments as equity provides with growth to the corpus. The proportion of equity in a portfolio depends on the time horizon and investments into debt helps in managing risk in retirement portfolio if the time horizon is short or one doesn't have a risk appetite.
Protecting the plan against untimely death of the earning member is a must and hence an adequate insurance is a key to a successful retirement plan. This should also be followed by estate planning through a simple will. A will in place ensures that the assets are distributed without much effort to the heirs.
Last, but not the least, we need to resist the temptation to withdraw funds from a retirement corpus, unless in an absolutely emergency. One needs to also make sure that the insurance premiums are always paid on time and the systematic investment plans (SIPs) are renewed without fail so that our retirement goals are not jeopardized.
Planning for retirement ought to be the top financial goal. The reason is simple. The responsibility to ensure we have a regular income is no one else's but ours. The services of a personal financial planner can hand-hold you through the process of retirement planning. With our vast experience in financial markets we offer retirement planning and will drafting services. Do talk to your ICICIdirect relationship manager to help you with your plan.
Our message remains the same - 'Keep investing and stay invested for your life goals.' Through this magazine and our website www.icicidirect.com we want to make an earnest attempt to partner with you in setting and achieving your financial goals. Give us an opportunity to serve you, walk into any of your Neighbourhood Financial Superstore and talk to us.
ICICIdirect Money Manager September 2014
2
The present is always far clearer than the future. Retirement will
always seem distant and hazy especially to the young. And yet
when it comes to planning for retirement, how much ever distant
retirement may appear, the right time to start is now. Starting
early not only helps you reap the benefits of compounding over a
longer period, but it also keeps you in a better position to make
suitable adjustments to your plan in a changing scenario.
The more years away from retirement you are, the more you will
benefit from it. In this issue of ICICIdirect Money Manager, we
help you understand the importance of saving and investing early
for retirement, and the steps that you may take to reach your
retirement goal with relative ease.
I would also like to draw your attention to our feature article on
Real Estate Investment Trusts (REITs). REITs are proposed to be
introduced in India, which will help establish a new asset class
and enable investors to tap the twin benefits of yield and growth.
The edition also features an interview with Swati Kulkarni,
Executive Vice President & Fund Manager, UTI Mutual Fund, who
has a positive view on healthcare, banking, cement, industrial
manufacturing, automobiles, and consumer goods sectors over
the next 3-5 years.
We also offer comprehensive information and analysis on
pension plans, in our Mutual Fund Analysis section, to help you
better plan your retirement. So read on, stay updated
and involved. Do write in with your feedback at
[email protected] and share your thoughts.
Editor & Publisher : Abhishake Mathur, CFA
Coordinating Editor : Yogita Khatri
Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey
CMEditorial Team : Azeem Ahmad, Nithyakumar VP CFP , Nitin Kunte, Sachin Jain, Sheetal Ashar
ICICIdirect Money Manager September 2014
3
MD Desk....................................................................................................1
Editorial.....................................................................................................2
Contents.................................................................................................... 3
News.........................................................................................................4
Markets Round-up & Outlook........................................................................5
Getting Technical with Dharmesh Shah.........................................................8
Derivatives Strategy by Amit Gupta............................................................ 10
Stock Ideas: Bajaj Electricals and Page Industries....................................... 15
Flavour of the Month: Retirement Planning The face of retirement ischanging. Here we help you understand why saving for retirement isimportant and the route you may take to reach your retirement goalswith relative ease.................................................................................. 22
Feature Article: Indian Real Estate Investment Trusts (REITs ) – A good time to start........................................................................................... 31
Tête-à-tête: 'Market valuations look interesting for 3-5 year term' An interview with Swati Kulkarni, EVP and Fund Manager – Equities, UTI Mutual Fund...........................................................................................35
Ask Our Planner: Switching your mutual funds investments Your personal finance queries answered…..................................................39
Mutual Fund Analysis: Category – Pension Plans Currently, there are two MF pension plans available in the market. Here we analyse them to help you plan your retirement..............................................................43
Equity Model Portfolio...............................................................................49
Mutual Funds Model Portfolio.................................................................... 54
Quiz Time.................................................................................................56
Monthly Trends.........................................................................................57
Premium Education Programmes Schedule..................................................60
ICICIdirect Money Manager September 2014
4
Portable PF account number to be launched on October 16
Retirement fund manager EPFO's ambitious project to provide portable universal PF account numbers (UAN) to its subscribers will be launched on October 16. Besides, the government will launch unified web portal LIN (Labour Identification Number) for simplifying business regulations and bringing in transparency and accountability in labour inspections by various agencies and bodies under the administrative control of Labour Ministry. Prime Minister Narendra Modi is likely to launch both LIN web portal and UAN on October 16 as per the Plan chalked out by the Labour Ministry.
Courtesy: Business Standard
September 2014ICICIdirect Money Manager
With an aim to attract greater foreign and domestic investments into real estate, Sebi has said it will soon notify norms for creation and listing of business trusts for this key sector. Two separate committees have been set-up for the specific guidelines on the issue. The Securities and Exchange Board of India's board had approved the regulations on Real Estate Investment Trusts last month after receiving public comments.
Courtesy: The Economic Times
SEBI to soon notify norms for Real Estate Investment Trusts
The Reserve Bank of India (RBI) needs to further increase policy rates to bring down inflation on a sustained basis, the International Monetary Fund (IMF) said. In a note released ahead of the G20 meeting of finance ministers and central bank governors at Cairns in Australia, IMF said India needs to take more steps to reduce stubbornly high inflation and the large fiscal deficit. The RBI is scheduled to announce its bi-monthly monetary policy on September 30.
Courtesy: The Times of India
RBI needs to raise policy rates to bring down inflation: IMF
Foreign institutional investors, or FIIs, have stepped up investments in long-term government bonds with maturities extending up to 28-30 years, marking a shift from their practice of betting mainly on Indian sovereign debt instruments maturing within five years and signalling restoration of global faith in the Indian economy. FIIs have already exhausted nearly 65% of the $5-billion investment limit for long-term investors such as foreign central banks, pension funds, sovereign wealth funds, endowment funds and insurance funds, data from the National Securities Depository (NSDL) shows.
Courtesy: The Economic Times
Foreign institutional investors step up investments in long-term government bonds re-instating faith in economy
5
Upbeat macro, falling crude prices likely to keep momentum intact
Indian markets remained volatile at the beginning of the month following the uncertainty in the global markets amid default concerns in Argentina and rising geo-political tensions in Ukraine and Iraq. The mid-month, however, witnessed a strong rally in the markets that aided the markets to close at all-time highs. The rally was led by supportive news flows from all fronts, a report from India's Met (Meteorological) department revising monsoon estimates to 10% below average (earlier 40%), India's five-month low wholesale price index (WPI) data, the Prime Minister announcing a scheme for financial inclusion. Also, reports suggested a renewed top spot for India in a Global Survey of Consumer Confidence that boosted sentiments on the domestic front while reduced tensions in the Middle East and Ukraine eased geo-political concerns and upbeat US data provided supportive cues on the international front. In the last week, the markets turned slightly jittery initially after the Supreme Court cracked down on coal b lock a l locat ion impacting metals, capital goods and power ind ices . The
sent iment was, however, rejuvenated fol lowing an improved gross domestic product (GDP) data of the country for Q2CY14 and positive news flows from the US and Europe (financial stimulus by European Central Bank (ECB)). The markets, thereby, recorded fresh highs again in the last week and recorded a positive close for the month. The rupee remained flat during the month closing at 60.5, losing 0.1%.
The strong rally in Indian markets was aided by upbeat data points reported during the month. India's GDP for Q2CY14 came in at 5.7% (highest since Q1CY13) as against 4.7% in Q2CY13. The Indian auto industry posted growth of 15% for July to 19,08,650 units led by 17% growth in two wheelers and 4% growth in passenger vehicles. The Reserve Bank of India (RBI) in its monetary policy kept the repo and cash reserve ratio (CRR) rates unchanged at 8% and 4%, respectively, and cut the statutory liquidity ratio (SLR) requirement further by 50 basis points (bps) to 22%. The cut in SLR is expected to release ~ 40,000 crore funds for incremental credit. The RBI also
`
MARKETS ROUND-UP
ICICIdirect Money Manager September 2014
6
reduced the held to maturity (HTM) limit from 24.5% to 24%. India's Manufacturing PMI for July rose to 53 vs. 51.5 in June but Services and Composite PMI for July were marginally lower at 52.2 and 53 vs. 54.4 and 53.8 in June, respectively. Inflation numbers for July were mixed with consumer price index (CPI) coming in higher at 7.96% led by soar ing vegetable pr ices whereas WPI eased to 5.19% following a high base and drop in fuel inflation on flat global crude prices. The rally in markets paid no heed to the declining index of industrial production (IIP) data for June and widening trade deficit data for July. IIP for June declined to 3.4% from 5% in May impacted largely by slower output in the consumer goods sector. India's trade deficit widened to $12.23 billion against $11.76 billion in June led largely by higher oil imports, which increased 12.8% in July to $14.35 billion.
Global markets began the month on a weak note as upbeat economic data from the US (expansion in service sector activity, rebound in factory orders, narrowing trade deficit) gave some jitters to investors on the likelihood of an earlier-than expected increase in interest
rates by the Fed. Disappointing data from Italy and a sharper fall in German manufacturing orders supply also added to the pessimism. However, markets gained strength in the latter half of the month on waning geo-political worries as Russia and Ukraine for the first time agreed to a discussion to resolve the ongoing situation in Ukraine, on positive data prints from the US (consumer confidence index at seven years high, improving jobs and housing data, minutes of the Fed's meeting indicating only gradual withdrawal of stimulus) and ECB's statement to continue quantitative easing until some tangible recovery in the eurozone economies. In the end, the US markets gained ~3-5% whereas European markets gained ~1-3%. Asian markets shed their initial gains and closed modestly lower (0.3-1%) following weak data releases from China.
During the month, crude (Nymex) maintained a weak stance losing 2.3% and closed at $96/barrel.
Global markets
Both US and European markets traded with a positive bias. The Dow Jones, S&P 500 and
MARKETS ROUND-UP
ICICIdirect Money Manager September 2014
7
Nasdaq gained about 3.2%, 3.8% and 4.8%, respectively. European markets also posted modest gains with the FTSE, German Dax and French CAC gaining 1.3%, 0.7% and 3.2%, respectively. Asian markets, on the other hand, remained weak with Nikkei and Hang Seng l o s i n g 1 . 3 % a n d 0 . 1 % , respectively, while Shanghai SSEC posted a marginal gain of 0.7%.
Domestic markets
Both foreign inst i tut ional investors (FIIs) and domestic institutional investors (DIIs) pumped money into the Indian markets remaining net buyers of ~ 7,467 crore and ~ 2,336 crore, respectively.
The Nifty and Sensex gained 3% and 2.9%, respectively. The BSE Auto and BSE Healthcare Indices were the major gainers in the month posting gains of 11.6% and 8.2%, respectively. BSE Oil, BSE IT, BSE FMCG, BSE Bankex and BSE PSU were other gainers during the month posting 4%, 3.5%, 3.2%, 3% and 1.1% gains, respectively. BSE Realty, BSE Metal and BSE Power however lost 8.7%, 6.2% and 4.2%, respectively. The BSE Midcap and Small Cap indices grew 1.8% and 2.8% during the
` `
month.
Outlook: Sentiments upbeat after digesting geo-political concerns
Brent crude fell below $100 a barrel for the first time in 14 months amid mixed global growth indicators, waning geopolitical concerns and excess supply. This has come as a shot in the arm for the Indian economy and one need not elaborate on how this will be beneficial, going ahead. On the economy front, we had some mixed sets of prints but the most important gauge was that GDP growth was the highest since Q1CY13. Globally, the mixed set of US macro data continued to flash mixed signals regarding Fed's next course of action. However, the surprise move from the ECB was by way of a reduction in benchmark interest rates and offering of some more stimuli for the struggling Euro zone region. Apprehensions regarding Ukraine and the Middle East seem to have fizzled out. Most markets across the globe continue to hit new pinnacles on the back of liquidity gush and waning geopolitical concerns and are in no mood to consolidate. We expect the momentum to continue in India as well.
MARKETS ROUND-UP
ICICIdirect Money Manager September 2014
8
Domestic equity benchmarks shrugged off the initial round of profit bookings at the start of August 2014 and surged to record highs buoyed by a cool off in crude oil prices to a 14-month low amid receding geopolit ical tensions and strength in the rupee against the US dollar. The Sensex registered a resolute breakout past the two month consolidation range (26,300 to 24,878), thereby concluding a secondary corrective phase and signalling resumption of the primary uptrend.
We expect benchmarks to enter a sustainable uptrend and head t o w a r d s 2 8 , 3 0 0 / 8 , 4 5 0 (Sensex/Nifty) in the coming months. The larger degree trend remains positive and the index continues to march northwards in a rising peaks and troughs manner. We expect the base of the market to shift higher towards 25,750/7,700 levels. Any cool-off towards this region
s h o u l d b e u s e d a s a n opportunity to go long.
We believe the sectoral churn will add more legs to this uptrend and keep the index in good stead over a medium term horizon. Sectoral heavyweight, the banking index registered a fresh breakout after three month consol idat ion while most cyclicals have cooled off considerably over the last month, which has created further headroom for pullbacks from hereon. In extending markets, we deploy Fibonacci extensions to derive the next logical price objective. The 138.2% extension of the preceding rally that measured around 3,000 points from inception point of current rally p o s t e l e c t i o n r e s u l t consolidation low of 24,163 projects upside potent ia l towards 28,300/8,450 over the coming months.
The index has resolved higher after forming a steady basearound the 24,900/7,440region during the last two month's consolidation. Following the bullish breakout past the said consolidation, we expect the base of the market to shift higher towards 25,750/7,
Piercing new highs; Sensex aiming at 28,300
TECHNICAL OUTLOOK
ICICIdirect Money Manager September 2014
9
TECHNICAL OUTLOOK
ICICIdirect Money Manager September 2014
BSE Sensex – Weekly Candlestick Chart
Source: Bloomberg, ICICIdirect.com Research
The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities.
700levels. The bullishgap area formed on August 12, 2014 around 25,645 also coincides with the 61.8% retracement of the current up move (25,750) making this a key intermediate support for the index.
Key distinguishing factors that signal a shift of trend from sideways to positive is the faster retracement of the last rising segment and active participation from broader markets. The index overhauled its 10-session decline (26,300 to 25,232)
in justfive trading session-sindicating a strong comeback by bulls. Out performance of the broader markets while benchmarks venture into new territory highlights the prevailing buoyancy in the market and augurs well for the sustainability of the uptrend. Thebanking index, which commands highest weightage on the benchmark has also risen from a three-month slumber and supports further upsides.
Double Bottom @ 24879
22939
22277
19963
25375
2976 pts
3098
pts
13 week EMA
The 138.2% extension of preceding rally projects upside towards 28300The index concluded a two month consolidation and resolved
higher to indicate res umption of the upward momentum. We believe the index is set to extend the current up move to the tune of 138.2% extension of the preceding rally, projecting upsides towards 28300 levels over the coming months
24163
Weekly RSI holding its support reading of 60-65 during corrective phase highlights the underlying strength in the trend
10ICICIdirect Money Manager September 2014
DERIVATIVES STRATEGY
Since the election verdict, the
Nifty has been making higher
lows and every decline has
been greeted with long build-
up in the index futures
segment. In the current month,
the Nifty bottomed out at 7550,
post which it added close to
30% OI and as a follow up
made recent highs of 7965.
During the August expiry
week, we have seen smooth
rollover of long positions. As
the Nifty took out 7800 on
August 19, the roll spread
bottomed out at 30 points and
constantly moved higher to 38
points. This means long Nifty
futures are getting rolled into
the September series. This
suggests the bullish bias is
likely to continue.
In the options segment, the
initial build-up is suggesting a
range of 7800-8200.
Looking at the Call options
segment, there is visibility
beyond 8000 as well, as 8200
Call has high OI. This suggests,
if the elusive 8000 level is taken
out, the Nifty would be well and
truly on course for 8200 in
September.
September Put options are
evenly spread out but the
highest OI concentration is at
the 7800 Put. Coincidentally,
the VWAP for the current series
is also placed near 7760 levels.
Since the Nifty bottomed out
near 6000 in February 2014, it
has held monthly VWAP price
on a closing basis.
Nifty Bollinger is showing
signs of expansion and even
with the Nifty clocking over 6%
gains on the trot, the index is
absorbing the adverse news
flows. Hence, the declines in
the index should be utilised to
go long.
On upsides target of 8000/8200 likely to be tested while 7760-7800 is major support zone …
11ICICIdirect Money Manager September 2014
DERIVATIVES STRATEGY
Nifty Options build-upSeptember series
0
0.5
1
1.5
2
2.5
7100
7200
7300
7400
7500
7600
7700
7800
7900
8000
8100
8200
8300
OI i
n M
illio
n Sh
ares
Call OI Put OI
Nifty +2 Sigma Bollinger band : in expansion
5000
5500
6000
6500
7000
7500
8000
23
-Au
g-1
3
23-
Se
p-1
3
23
-Oct
-13
23
-No
v-1
3
23-D
ec-
13
23
-Ja
n-1
4
23-
Fe
b-1
4
23-M
ar-1
4
23
-Ap
r-1
4
23-
Ma
y-1
4
23
-Jun
-14
23
-Ju
l-1
4
23-A
ug-
14
Nifty Spot Mean + 2 Sigma 20 D EMA Mean+ 2 Sigma
Broad based buying observed in
recent Nifty up move …
After bottoming out on August
8 at 7550 , the Nifty saw a sharp
reversal of fortunes as it made
yet another record high of
7965 (gains of close to 6%). In
this move, the entire spectrum
of stocks from the small cap to
large cap and from IT to
banking have participated
Initial leadership was seen in
auto, which later shifted to
banking as the Nifty took out
7800. Towards settlement, IT
and pharma stock saw buying.
In August, the CNX midcap and
small cap space witnessed
gains of over 2%
However, this buying appears
to be mainly domestic as FII
only bought US$600 million
for the month. FIIs bought
protection for the already
aggressive buying of over
US$13 billion in 2014. Geo-
political risk continued to
remain elevated during the
month while the strong
economic data in the US
increased the chances of a rate
hike there
The NSE advance decline ratio
will be keenly tracked. The
ratio remained positive for
most of the August series. A
continuance of this trend is
likely to infuse fresh upsides i n
the broader markets,
especially the midcap and
small cap space
Sectoral return in August Series
-10 -5 0 5 10 15
Bse Health Care
Bse Auto
BSE IT
Nifty
BSE Power
Bse Metal
Bse Realty
% monthly return
12ICICIdirect Money Manager
DERIVATIVES STRATEGY
September 2014
Bank Nifty takes out election verdict high of 15740; likely to hit targets of 16000/16500…
After three months, the banking index took out the election day high of 15740. This up move during this series was on the back of l o n g build-up, where the OI d u r i n g the series nearly doubled to 95250 contracts
Looking at the September series options build-up, highest Call bases are still placed at 16000/16500, w h i c h are target levels for the index in the September series. On the lower side, highest Put base is at 15000
In price ratio terms, the Bank Nifty/Nifty is currently at 1 . 9 9 . The ratio has seen a trendl ine break out at 1.97 and is holding above this level. Eventually, the ratio is likely to head higher towards 2.2
With major asset classes, namely crude and gold in a declining trend on the back of inherent strength in the dollar, the current account deficit is likely to come down further. This will be a good trigger for the banking sector, in
particular. The positive sentiment could get a further push if the CPI reading due on September 12, 2014 comes in lower.
Private sector banks, which contribute over 70% to the index, are showing an accumulation pattern. If adverse news flows soften out, this pattern is l ikely to continue.
Bank Nifty options build up suggests target of 16000/16500
OI Build up for August Series
0
0.1
0.2
0.3
0.4
0.5
0.6
1450
0
1470
0
1490
0
1510
0
1530
0
1550
0
1570
0
1590
0
1610
0
1630
0
1650
0
OI in Millions
Call OI Put OI
India VIX : Likely to be subdued
below 16 levels in near term…
Since the election verdict in
May 2014, the volatility index
has been in a declining trend
and has been making new lows
every month. We believe India
VIX is likely to move in the
range of 12-16.
With volatility near multiyear
lows, some pullback in it is not
ruled out during the series.
However, if this up move
13ICICIdirect Money Manager
DERIVATIVES STRATEGY
September 2014
happens in India VIX, it is
unlikely to deter the Nifty’s
upward trajectory and should
be used as a buying
opportunity to create short
volatility positions.
On a positional basis, the 100
week moving average is at
18.2. This level is likely to be
tested only in the event of an
escalation of geo–political risk.
Another area that could trigger
volatility is strength in the
dollar. With the dollar index
already at a one-year high, any
further strengthening could hit
emerging currencies with a
deprecating bias. If a currency
deprecation starts in Ems, then
this may have an impact on
equities negatively, pushing
the fear gauge higher. The
European Central Bank
meeting on September 4, and
their stance on stimulus could
also push volatility higher.
India VIX likely to remain in 12 to 16 range
FII cash flows remain muted in
August but they bought index
options to hedge cash positions…
FIIs’ cash buying remained tepid during the month as they bought only US$ 600 million, which is almost 65% lower than the last three month’s average of US$1.7 billion.
This low cash buying is also supported by seasonality, which suggests August remains a slack month since 2009 for FII cash inflows.
In the current month, buying was seen on part of domestic participants wherein DIIs after a gap of five months bought in the cash segment. Their total buying was close to US$300 million.
The bond market also remained dry for a major part of the month. Barring record buying by Franklin Templeton of US$2.62 billion in a single session, the figure for the rest of the month is insignificant. Higher CPI reading dampened hopes of long bond play prospects.
The net inflow (FII equity inflow + FII debt inflow) of close to US$3 billion was 33% lower than last month’s inflow of US$4.5 billion
During the month, the dollar index was a key area of strength
14ICICIdirect Money Manager
DERIVATIVES STRATEGY
September 2014
as it moved up close to 2% to a one-year high of 82.7. Euro fell to 11 month low of 1.32 and JPY to seven month high of 104.5. However, the rupee has shown surprising resilience till now as it continues to trade near 60. However, if the dollar strength continues further, it will be difficult for the rupee to continue to defy depreciation
FIIs cash activity in (In ` crore)
-10000
-5000
0
5000
10000
15000
20000
25000
30000
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
INR
is C
r
FIIs debt activity (In ` crore)
-25000
-20000
-15000
-10000
-5000
0
5000
10000
15000
20000
Aug-
13
Sep-
13
Oct-1
3
Nov-
13
Dec-
13
Jan-
14
Feb-
14
Mar
-14
Apr-1
4
May
-14
Jun-
14
Jul-1
4
Aug-
14
INR
in Cr
FIIs hold key to substantial up move
in Nifty: Since 2009, September has
seen largest inflows …
Foreign institutional investors
have been the biggest source of
liquidity and have represented
the largest appetite for Indian
equity markets. Even though FII
flows have remained tepid
during August, flows are likely
to pick up in September.
Historically, since 2009, one of
the smallest inflows is seen in
August, which remained true in
August 2014 as well. However,
September records the largest
inflows, which may happen to
be true this year.
Since 2009, their run rate was
US$14 billion per year. In the
current year, they have already
bought close to US$13 billion.
FII buying picks up from
September onwards. Average
m o n t h l y i n f l o w s d u r i n g
September December were
seen at US$1.85 billion, which is
45% higher than the monthly
average of US$1.27 billion for
the whole year
Average monthly net FII inflowssince 2009
576 91
7
2011
915 11
53
358
1615
286
2662
2107
1214 14
09
0
500
1000
1500
2000
2500
3000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ave
rage
US
$ m
illio
n
15
STOCK IDEAS
Bajaj Electricals: Strong brand play!
Company Background
Established in 1938, Bajaj
Electricals Ltd. (BEL) was first
incorporated as Radio Lamp
Works Ltd. It was later
renamed Bajaj Electricals in
1960. BEL operates mainly in
three business segments,
namely, lighting & luminaries,
consumer durables (CD) and
engineering & project (E&P).
The company follows an asset
light model strategy wherein it
largely outsources (revenue
from outsourced product
contributes ~95% in the
topline) the manufacturing of
its kitchen and home appliance
products and lightings. Under
i t s k i t c h e n a n d h o m e
appliances, BEL offers a wide
range o f b rown goods
including water heaters, mixer
grinder, food processors etc.
The Bajaj lighting & luminaries
unit markets a wide range of
light sources and domestic
luminaries. The E&P segment
(contributes ~20% to topline)
includes three sub segments
viz. special projects,
transmission line tower and
high masts.
Consumption story to remain intact
Dominant play in appliances
segment, BEL is a well
established national brand in
the k i tchen & domest ic
appliances (KDA) and lighting
s e g m e n t s . T h e s e t w o
segments contribute ~70% to
the topline and recorded sales
CAGR (compounded annual
growth rate) of ~18.3% in
FY09-14. BEL has successfully
leveraged its brand to create a
huge retail network of 45,000
for appliances, 86,000 for fans
and over 4,00,000 for lighting
across India. In order to use its
expertise in different product
lines, BEL has entered into
various joint ventures (JVs) in
the appliances and lighting
segments. Among major
brands, Morphy Richards
(leading brand in the UK) is a
well-accepted brand in India
marketed by Bajaj. The JV was
started in 2003 mainly to tap
Investment Rationale
ICICIdirect Money Manager September 2014
16
the market for premium
products. Revenues of
Morphy's products recorded a
CAGR of 28.2% in FY09-14
from 55 crore to 190 crore.
BEL outsources its lighting
products domestically while
luminaries are sourced from
domestic and international
vendors. With a strong dealer
network, we believe the CD &
lighting segment will witness
sales CAGR of ~17% and
~10%, respectively, in FY14-
16E, supported by an un-
penetrated rural market, rapid
urbanisation and a growing
middle class.
Recovery in engineering & project
(E&P) segment
BEL entered lighting project
services in 1960 with an aim of
diversifying the business from
a lighting and consumer
durable player to a strong
contender in the engineering
and project segments. The
business unit is divided into
three segments, namely high
masts, transmission line
towers (TLT) and special
projects. The E&P segment
` `
revenue increased four fold
from 178 crore in FY05 to
1150 crore in FY14 while the
segment contributes ~29% to
the FY14 topline. The segment
recorded revenue CAGR of
~16 .2% in FY09 -14 . A
slowdown in the industrial
bus iness and s t re tched
working capital cycle resulted
in a decline in EBIT margin
from 12.6% in FY09 to -18.1%
in FY13 and -9% in Fy14.
However, BEL's order book size
has more than doubled in
FY14. Company has recently
won major orders (all higher
margin orders) from various
states electricity boards and
Power Grid Corporation of
India. With the completion
period of 24 months, major
part of revenues would flow in
FY17E. However, continuous
order inflow improved the
visibility of revenue booking
from the E&P segment.
Pan-India presence through strong
dealer network
BEL, one of the oldest
consumer durable companies
in the country, has a pan-India
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STOCK IDEAS
ICICIdirect Money Manager September 2014
17
STOCK IDEAS
ICICIdirect Money Manager September 2014
presence through a strong
dealer and retail network. The
company has 2,200+
distributors and 5,000+
dealers across India. Further,
Bajaj's lighting solutions are
available in over 3,50,000 retail
s t o r e s w h i l e f a n s a n d
appliances are available at
over 88,000 and 45,000 retail
stores across India. In order to
leverage its strong brand, BEL
has taken an initiative to reach
directly to the consumer
through opening retail chain
'Bajaj World' (pure franchise
model) for appliances and
lighting products. Currently,
the company has 75 exclusive
Bajaj World stores. It also has
plans to expand its presence
globally through franchise
agreements. It has recently
opened stores in Nepal and
plans to open stores in Ghana,
Nigeria, Sri Lanka and South
Africa.
Consumer business to drive rating
Bajaj Electricals, despite being
a dominant play in the lighting
a n d c o n s u m e r d u r a b l e
segment (contributes ~70% of
topline) with a strong dealer
network, has paid the price for
poor execution in the E&P
b u s i n e s s . Po o r E B I T DA
margins with rising working
capital requirement (due to a
delay in execution of E&P
projects) resulted in sharp
multiple contractions. At the
current price, the stock is
trading at a PE multiple of 17.4x
FY15E and 10x FY16E earnings.
On an EV/EBITDA basis, it is
trading at ~9.9x and 7x for
FY15E and FY16E, respectively.
With the expected turnaround
in the E&P business from FY15E
onwards and dominance in
lighting & consumer durable
business, we expect the
company to generate of
EBITDA of 315 crore in FY15E
and 430 crore in FY16E. We
believe the stock is trading at
a t t r a c t i v e m u l t i p l e s
considering the turnaround in
the E&P segment. We have
valued the consumer durable,
lighting & E&P business at 12x,
6x and 6x FY16E EBITDA,
respectively, to arrive at a target
price of 416 with a BUY
recommendation.
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Key risks include: Rising competition from domestic and international players entering the Indian markets could pose a threat. In addition, the company's import content contributes ~13% to the topline, which includes 40% of Morphy Richards, 20% of appliances, 10% each of lighting and fans. Rupee depreciation over an extended duration could put pressure on margins in the near term. Further, a slowdown in the power transmission and distribution industry and slower rate of project execution has hit the company's segment revenue. This led to stretched working capital requirement and finally hit margin.
(EBITDA: Earnings before interest, taxes, depreciation, and amortization; EV: Enterprise value; EPS: Earnings per share; P/E: Price-to-earnings; P/BV: Price/book value; RoNW: Return on net worth; RoCE: Return on Capital Employed; Mcap: Market capitalization; MF: Mutual Funds; FII: Foreign Institutional Investors)
STOCK IDEAS
Key Financials
Valuations Summary
Stock Data
ICICIdirect Money Manager September 2014
Net sales ( crore) 3,381 4,048 4,695 5,512
EBITDA ( crore) 101.2 81.8 314.5 429.9
Net profit ( crore) 51.2 (5.3) 168.3 285
EPS ( ) 3.1 (0.5) 16.9 28.6
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P/E (x) 90.9 - 16.6 9.8
Target P/E (x) 135.2 - 24.7 14.6
EV / EBITDA (x) 28.7 37.7 9.5 6.7
P/BV (x) 3.8 3.9 3.3 2.5
RoNW (%) 7 (0.7) 19.7 25.7
RoCE (%) 9.8 5.4 24.8 29.2
Mcap/sales (x) 0.8 0.7 0.6 0.5
Particulars Figures
Market capitalization ( crore) 2,793.2
Total debt (FY14) ( crore) 344.3
Cash and investments (FY14) ( crore) 121.8
Enterprise value (FY14) ( crore) 3,015.7
52-week High/Low ( ) 382 / 150
Equity capital ( crore) 20
Face value ( ) 2
MF Holding (%) 3.9
FII Holding (%) 16.3
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Page Industries: Galloping ahead!
Company Background
Investment Rationale
Page Industries (Page), promoted by the Genomal brothers in 1995, is the exclusive licensee of Jockey International Inc (US) for the manufacture and distribution of the Jockey® brand innerwear /leisure wear for men and women in India, Sri Lanka, Bangladesh, Nepal and UAE. The promoters have been associated with Jockey International Inc. for over 50 years (since 1959) as their sole licensee in the Philippines. Page has 10 factories with a total manufacturing capacity of ~16 crore pieces. Page's distributors cater to over 23,000 retail outlets spread across five formats - chain stores (large format stores), multi brand outlets (MBOs), hosiery stores, multi purpose stores and exclusive Jockey brand outlets (EBOs).
Favourable demographics, low penetration to boost growth
The Indian innerwear segment valued at $4 billion is expected to grow at 12% compounded
annual growth rate (CAGR) over the next decade. Page has consistently grown well above the industry average. We expect the same to continue as India's per capita spend on innerwear is ~90% lower than that of Thailand and China. The market has been growing faster than the overall clothing market, driven by premiumisation. With discretionary consumer spend in India continuing to grow, these trends should persist, aided by rising urbanisation and growth in consumer incomes.
Healthy revenue growth to continue and margins to be maintained
Page's revenues have grown at a CAGR of 36.4% during Fy10 14. We expect the growth rate to slow down to 27.6% during FY14-17E owing to a larger base effect. We expect both volumes as well as realisation to aid this growth. Considering that the p e n e t r a t i o n o f b r a n d e d innerwear is significantly low in India and that Indians spend significantly lower on innerwear compared to their Asian peers, we do not anticipate any roadblocks in the company's growth plans. Continuous
STOCK IDEAS
ICICIdirect Money Manager September 2014
20
capacity addition and entry into newer markets is likely to further aid growth. Page is cushioned from rising input costs as it takes price hikes to the tune of 5-10% per annum, which enables it to maintain operating margins. The company is confident of maintaining its operating margin around 20%. Though the operating margin has increased to 21.4% in Fy14 (owing to removal of excise duty), we expect it to stabilise at 21% by FY17E.
Capacity addition to continue
Page has continuously expanded capacities in line with the growing demand for its products. Page's capacity has increased from 2.2 crore pieces in FY07 to 16.3 crore pieces in FY14. We expect the same to go up to 28.2 crore pieces by FY17E. As the company is absent in a highly capital-intensive segment, Page has been comfortably able to fund the same through internal accruals. We expect the same to continue, going forward. With the current rate of capacity addition, the company is only able to cater to the Indian markets despite holding
licenses for Sri Lanka, Bangladesh, Nepal and UAE as well. In a scenario when Indian demand starts to flatten out, the company can access these markets for growth opportunities.
Consistent growth with healthy fundamentals; recommend BUY
We bel ieve changing demographics will continue to work in favour of consumption oriented companies like Page Industries. The company will be a beneficiary of the shift from unbranded to branded products. Apart from local demand, Page has licenses to cater to countries like Nepal, Sri Lanka, Bangladesh and UAE. Many consumer oriented companies that have delivered consistent growth are trading at premium multiples. Similarly, we believe Page should also command a premium considering its strong fundamentals and consistent dividend payouts. Page has been able to grow consistently while many of its peers are struggling to grow. We, thereby, recommend BUY on Page Industries with a target price of 8,660 (based on 30x FY17E
EPS of 288.7).`
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STOCK IDEAS
ICICIdirect Money Manager September 2014
21
Key risks include: Rising competition from international players entering the Indian markets could pose a threat. Also, if sales growth slows down faster-than-expected, the company would have to resort to debt to fund working capital as well as pay dividends at the current rate.
(EBITDA: Earnings before interest, taxes, depreciation, and amortization; EPS: Earnings per share; P/E: Price-to-earnings; RoNW: Return on Net-Worth; RoCE: Return on Capital Employed; MF: Mutual Funds; FII: Foreign Institutional Investors).
Key Financials
Valuations Summary
Stock Data
STOCK IDEAS
ICICIdirect Money Manager September 2014
Net sales ( crore) 1,187.6 1,511.6 1,923.8 2,458
EBITDA ( crore) 251.2 310.9 400.3 512.7
Net profit ( crore) 153.8 193.1 250.8 322
EPS ( ) 137.9 173.2 224.9 288.7
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P/E (x) 53.3 42.5 32.7 25.5
Target P/E (x) 62.8 50 38.5 30
Dividend yield (%) 0.7 0.8 1.2 1.5
Price/Sales (x) 6.99 5.49 4.31 3.37
RoNW (%) 53.2 52.3 53 53.1
RoCE (%) 52.5 58.4 59.7 60.1
Market capitalization ( crore) 8,203.7
Total debt (FY14) ( crore) 163.2
Cash and investments (FY14) ( crore) 3.5
Enterprise value (EV) ( crore) 8,363.4
52-week High/Low ( ) 8,205 / 3,850
Equity capital ( crore) 11.2
Face value ( ) 10
MF holding (%) 14.9
FII holding (%) 20
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
A guide to secure your retirement
The face of retirement is changing. Today, most of us can't count
on what our previous generations could, for their retirement
needs. Assured pension, guaranteed returns from government
schemes, support from a joint family, and periods of relatively
low inflation -- are almost things of the past. Our retirement is
going to be very different from that of our parents or
grandparents. We would need to fend for ourselves for our
retirement needs. Here we help you understand why saving for
retirement is important and the route you may take to reach your
retirement goals with relative ease.
The changing landscape
Pensions are nearly extinct: In the
p a s t , l a r g e e m p l o y e r s
worldwide provided their
employees with defined
benefit (DB) plans. Put simply,
c o m p a n i e s p r o m i s e d
employees a certain monthly
benefit at retirement. Those
benefits are almost a dream
now. The increasing burden of
p e n s i o n l i a b i l i t i e s o n
governments and the private
sector across the world,
including India, has forced the
s h i f t t o w a r d s d e f i n e d
contribution (DC) plans. For
example, Japan and Canada,
both historically had only DB,
are now showing signs of a
shift towards DC, according to
a
In
case of DC plans, the liability is
clear; whereas in DB plans, the
liabilities are uncertain.
report 'Global Pensions Asset
Study 2014' by Towers Watson,
a global consultancy firm.
Source: Towers Watson, Global Pensions Asset Study 2014
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
The gradual shift from DB to DC plans suggests that we ourselves would need to take the charge of our retirement. Though some of us are covered under employees' provident fund (EPF) account, the overall coverage remains low. Adding civil servants and the voluntary and mandatory participants of the Employers Provident Funds Organization (EPFO) schemes (of which not all are active participants), only 17– 21% of the Indian workforce is currently covered
b y a f o r m a l p e n s i o n arrangement,
The average Indian now lives for up to almost 65 years, compared with 48 years in 1970. The life expectancy is expected to further rise in the coming years. It is expected to reach 72 for males and 76 for females by 2025, according to a planning commission report.
according to the Asian Development Bank (ADB).
We are living longer:
Source: Planning Commission report - Demographic scenario, 2025
Rising life expectancy means we would need to save enough today for 25-30 years of our retired life.
The Indian population is ageing. India has around 100 million elderly (60 years of age) at present and the number is expected to
Demographic shift:
increase to 323 mill ion, constituting 20% of the total population, by 2050, according to . This means we will have a longer span in retirement, and therefore, must accumulate a bigger corpus for our sunset years.
the United Nations report
Projected life expectancy
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
Cost of living rising: About 60
years ago, an average middle
class person earning 600 a
month, could well support his
family. Today, it takes about
30,000. Likewise, there will be a
`
`
continuous price rise over a
long period. If you plan to
maintain your current lifestyle
even after you retire, you
would need to build in an
inflation-protected portfolio.
If your monthly expenses today are 30,000`
10 53,725
15 71,897
20 96,214
25 128,756
30 172,305
35 230,583
Years to retirement Actual amount required considering inflation(Rs.)
Note: Inflation taken at 6%
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
Healthcare costs sharply rising:
The good part is, despite all the
challenges listed above, we
can achieve our goals with
relative ease. The key is: Start
where you are. Start now.
The early bird catches the worm
Healthcare costs are on the
rise, and they are significantly
outpacing consumer inflation
averages. In India, medical
inflation has been running into
double digits -- at the rate of 18
20% every year. As healthcare
expenses go up in retirement,
it is important to build
sufficient retirement corpus to
take care of our needs.
Saving for retirement may
seem very distant when you
are young. But the sooner you
start saving and investing for
your retirement, the more
secure your future will be.
Starting early has significant
long-term benefits, thanks to
the magic of compounding.
Calculations show that if a
person aged 30 years, starts
investing 3,000 a month, at
the rate of return at 12% p.a.,
h e w o u l d b e a b l e t o
`
accumulate 51,06,620 by the
age of 55. If he starts 5 years
later, even with a greater
investment amount of 5,000 a
month, he will be able to
accumulate only 45,99,287.
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`
Age of starting investment 30 years 35 years
Retirement age 55 years 55 years
Monthlyinvestment Rs. 3,000 Rs. 5,000
Rate of return 12% p.a. 12% p.a.
Corpusaccumulated Rs. 51,06,620 Rs. 45,99,287
Scenario 1 Scenario 2
Also, when you start early, you
require lesser investment
amount to build retirement
corpus. Let's understand this
with an example. Suppose, a
person needs a corpus of 1
crore in his retirement kitty at
the age of 60. If he plans at the
age of 25, considering returns
of 8%, he has to save 58,033
per year. If he starts planning at
the age of 35 he has to save
1,36,788 every year. And if he
starts planning late at the age
of 45 he has to save 3,68,295
to reach his goal of 1 crore.
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
AgeAmount to be invested every year to accumulate 1 crore`
At 8% p.a. return At 10% p.a. return At 12% p.a. return
25 ` 58,033 ` 36,897 ` 23,166
35 ` 1,36,788 ` 1,01,681 ` 75,000
45 ` 3,68,295 ` 3,14,738 ` 2,68,242
Since younger investors have
a longer time to absorb market
setbacks, it is usually prudent
for them to invest a larger
portion of their portfolio in
e q u i t y . H i s t o r i c a l l y ,
i n v e s t m e n t s i n e q u i t y
haveprovided better returns
than other asset classes.
S ince incep t ion , Sensex
hasdelivered a compounded
annual growth rate (CAGR)
return of 17%, which is higher
t h a n a n y o t h e r a s s e t
class.Investment in equity
alsohelps build-in an inflation-
protected and tax-efficient
portfolio in the long run.
For a retirement corpus, one
should take maximum equity
exposure at an early age. One
can gradually reduce it as he
approaches retirement. But
suppose, if one has started
planning for retirement at a late
age then to satisfy his goal he
has to take equity exposure
accordingly, irrespective of his
age.
How much is enough to lead a
comfortable retired life? Well, it
depends on a number of
fac tors . These inc lude:
yourexpected lifestyle in
retirement, health history, how
much risk you are willing to
take in your portfolio, the
amount you have saved and
invested so far, and how much
time you have until retirement.
- First, determine the age at
which you wish to retire. (e.g.
Current age – 30; Retirement
age – 55). Today, a lot of us
want to retire early. But
remember, retiring early will
require more money.
- Next, list your current
e x p e n s e s a n d p o s t
A bit of number crunching
Here's the simple method to
find out the retirement corpus
required.
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
retirement expenses in today's
cost. For example, if you are
a family of 4 with annual
household expenses of 3
lakh, your post-retirement
expenses for a family of 2
members could be 2 lakh in
today's cost. I t is also
impor tan t to f ac to r in
increases in certain expenses
such as medical and traveling
expenses. (e.g. let's say your
current monthly expenses are
30,000 per month).
- Factor in the inflation rate
(e.g. 6% p.a.) and then
c a l c u l a t e t h e m o n t h l y
expenses that you will need
after retirement. (e.g. 128,756
per month).
- Assume a rate of return to be
g e n e r a t e d f r o m y o u r
retirement corpus, i.e. annuity
rate. (e.g. 8% p.a.).
- Now, arrive at the real rate of
return from your retirement
corpus post-retirement, after
negating the effect of inflation.
(Eg:[(1+8%)/(1+6%)] – 1 =
1.89%)
- D i v i d e t h e m o n t h l y
expenses required post
`
`
`
retirement by the real rate of
return to arrive at your
ret i rement corpus. (Eg:
128,756 / [1.89%/12] = Rs. 8.17
crore.)
This will be the total corpus
required. You also need to
factor in the investments
including provident fund,
which you have already made,
to arrive at the net corpus
required.
This was fairly a simple
calculation. But getting the
precise figure needs a look into
various aspects that you may
have not thought of. A
professional financial planner
will help you look into all the
aspects and minimize the
complexity.
Once you have determined the
retirement corpus needed, you
need to start planning for it.
If you are a parent, you may
find yourself asking how to
save enough for retirement
when saving for your children's
education goals. Though your
children's needs take priority, it
is important to make it a
balancing act. Remember, one
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
can bor row fo r ch i ld ' s
educa t ion , bu t no t fo r
retirement. The key is to build a
separate kitty for each short-
term and long-term financial
goal.
There are various tools
a v a i l a b l e f o r b u i l d i n g
retirement corpus. One of the
best tools is Public Provident
Fund (PPF) account. One can
open PPF account and deposit
a maximum of 1.50 lakh
every year. The current interest
rate is 8.7%. A PPF account has
a maturity of 15 years and it can
be renewed for 5 years each
time.
For equity investments, one
can go for equity mutual funds,
national pension system (NPS)
or pension plans.
are an ideal
option for accumulating
retirement corpus, as equities
tend to outperform most asset
classes in the long run. The
best way to start is to invest
t h r o u g h a s y s t e m a t i c
investment plan (SIP). SIPs
s m o o t h e n o u t p r i c e
Building a retirement kitty
Equity mutual funds
`
fluctuations over a period of
time. You can start an SIP with
an amount as small as 500 a
month.
, launched by the Pension
F u n d R e g u l a t o r y &
D e v e l o p m e n t A u t h o r i t y
(PFRDA) , i s a de f ined-
contribution product, where
your contributions grow and
accumulate over the years.
NPS begins with a mandatory
T i e r I a c c o u n t ( n o n -
withdrawable), which helps
you save regularly to build
your retirement corpus. A Tier
II account is like a voluntary
savings fac i l i ty (wi th a
withdrawal option).
T h e m i n i m u m a n n u a l
contribution for Tier I account
is 6,000 ( 500 a month). For
Tier II account, the minimum
contribution is 250, and one
needs to have a minimum
balance of 2000 at the end of
financial year. There is no
upper cap on the contributions
for both the accounts.
Any citizen of India, whether
resident or nonresident, who is
in the age bracket of 18-60
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NPS
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
this 4% makes a substantial
difference. At the time of
maturity of these pension
plans, you can withdraw one-
third the amount as lump-sum
and the balance has to be
utilized to buy annuity.
Another choice is pension
p lans of mutual funds.
Currently, there are two MF
pension plans available in the
market (please refer Mutual
Fund Analysis for more
details).
Beside the regular investment
avenues, there may be other
resources that can be tapped
to generate income after
retirement. This will mainly be
an outcome of the investments
that you make along your way
to fulfill your financial goals.
Some of the income sources
are:
This can be useful
to generate steady returns
against your earlier property
investment. If you have a
second house and if it is rented
out, then it is a good source of
income during your retired life.
Living well in retirement
House rentals:
years, can subscribe NPS. It
of fers three investment
options to choose from: Equity
(E) in which a maximum of
5 0 % c a n b e i n v e s t e d ,
Corporate bonds or fixed-
income securities other than
government securities © and
Government securities (G).
NPS has the lowest cost
s t r u c t u r e a m o n g o t h e r
products in the market. The
fund management charge is up
to 0.25%. Further, it has a
provision for mandatory 40%
annuitization, which ensures
regular pension in old years.
are offered by
insurance companies as well
as mutual funds in India. Plans
o f f e r e d b y i n s u r a n c e
companies include traditional
as well as unit linked pension
plans (ULPPs). One can go in
for these pension plans as per
their risk appetite. Normally,
traditional pension plans give
returns of 8%, whereas returns
of ULPPs are market-linked and
one can expect around 12%
returns for the equity option
over a year. One should
remember that in the long run
Pension plans
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FLAVOUR OF THE MONTH
ICICIdirect Money Manager September 2014
Please send your feedback to [email protected]
Reverse mortgage: A reverse
mortgage provides income
that people can tap into for
their retirement. It is a type of
m o r t g a g e i n w h i c h a
homeowner can borrow
money against the value of his
or her home. No repayment of
the mortgage (principal or
interest) is required until the
borrower passes away or the
home is sold. The transaction
is structured so that the loan
amount will not exceed the
value of the home over the life
of the loan. A senior citizen
who holds a house or property,
but lacks a regular source of
income can mortgage his
property with a bank or
housing finance company
(HFC) and the bank or HFC
pays the person a regular
payment. The advantage is
that the person who has
mortgaged his property in this
manner can continue staying
in the house for his life and at
the same time receiving the
m u c h n e e d e d r e g u l a r
payments. So, effectively the
property now pays for the
owner.
Life after
retirement also provides you
with an opportunity to turn
your passions and hobbies,
such as teaching, writing,
gardening, music, arts, etc.
into a payable scheme. You
may also choose to set-up your
own business, with the
experience from a long career.
Factors such as increasing life
spans , r i s ing in f l a t ion ,
preference for nuclear families,
absence of pension systems,
etc. necessitate early investing
for retirement. The earlier you
start the greater you can save
to create a nest egg for old age.
There are various financial
products that will help you
reach your retirement goals
with relative ease. If you have
concerns, get professional
help so that you can look at all
the aspects of retirement
planning, thus leading to an
independent, stable and
serene life after retirement.
A second career:
Summing up
31ICICIdirect Money Manager September 2014
FEATURE ARTICLE
Indian REITs – A good time to start
Real Estate Investment Trusts
(REITs) are investment vehicles
that invest in a pool of real
estate, or income generating
properties. The underlying
income generating asset can
be office, retail, hospitality,
industrial, residential or
logistics property. In India,
h o w e v e r, c u r r e n t R E I T
definition does not allow REITs
to invest in the residential
market.
Introduction of REITs in India
will help establish a new asset
class that enables investors to
tap the twin benefits of yield
and growth, improve property
m a r k e t t r a n s p a r e n c y ,
smoothen volatile property
cycles, and potentially lower
the cost of capi ta l for
developers.
We expect the listing of REITs
to start in approximately 6-9
months (post Budget 2015), as
some bottlenecks remain to be
addressed. Since REITs have
q u a s i d e b t - e q u i t y
characteristics, macro factors
(bond yield compression,
f a v o u r a b l e c o m m e r c i a l
property dynamics) appear
well aligned for REIT markets
to grow and develop.
REITs provide a variety of
benefits to stakeholders.
Investors stand to gain from
portfolio diversification, while
overall physical property
markets benefit from improved
liquidity, lower cost of capital,
improved transparency and
higher quality real estate (due
to better asset management
and positioning). Reduction in
information asymmetry leads
to less volatile property
markets, and aids in price
discovery leading to a more
efficient real estate market.
Introduction of REITs – a potential
game changer for real estate:
32
FEATURE ARTICLE
ICICIdirect Money Manager September 2014
b o n d , w i t h a g r o w t h
component built-in through
price appreciation. Further, real
estate's historical inflation
h e d g e c h a r a c t e r i s t i c s ,
provides investors with a
stable underlying asset class.
Liquidity benefits and lower cost of
capital: REITs are mandated to
provide recurring dividends,
and most REIT legislations
globally also put a cap on
gearing (debt-to-asset) ratios,
which reduces the r isk
perception associated with the
asset class. Further, tax
concessions ensure that
dividend payouts are healthy
Portfolio diversification: For small
investors and institutions,
REITs provide an opportunity
to invest in large-scale
commercial real estate, which
would have otherwise been
only possible for high net-
worth individuals (HNIs) and
wealthy individuals.
REITs enable investors to
achieve better returns with
lower volatility primarily due to
their quasi debt-equity nature.
A compulsory dividend payout
(typically >80% globally and
>90% in India) makes the
underlying asset similar to a
33
FEATURE ARTICLE
ICICIdirect Money Manager September 2014
REIT roadmap – Regulations largely
in line with regional markets;
expect more clarity to emerge:
We benchmarked current draft
SEBI regulations to other
regional markets and find that
the regulator has provided a
good starting point despite
limitations over its jurisdiction
( tax, for instance). Our
interactions with stakeholders
(developers, legal and tax
experts) indicate that current
REIT regulations do not offer
significant advantages versus
listing its equity. A key
deterrent currently remains the
high upfront costs for the
principal sponsor (developer).
Final REIT regulations from
SEBI are anticipated to provide
more clarity on certain clauses
regarding trustees, related
party transactions, financial
sponsor (PE) REIT listings, etc.
Stakeholders are also hopeful
of simplification of tax norms in
Budget 2015, post which active
REIT listings are anticipated.
and less impacted by changes
in Central tax laws.
REITs enhance liquidity within
the real estate sector, and the
stable underlying income
prospect tends to attract
foreign capital.
Improved transparency and less
volatile property cycles: REITs
improve transparency in the
real estate markets as
information is periodically
disclosed on average rents,
occupancy levels, tenant
profile, renewal profile, etc.
Availability of such information
r e d u c e s i n f o r m a t i o n
asymmetry, which is typically
seen in real estate markets and
is a key reason for volatility.
Greater availability of
information also helps
smoothen out the property
cycle, since the various
stakeholders in the market are
better informed enabling them
to make prudent capital
commitments, etc.
34
FEATURE ARTICLE
ICICIdirect Money Manager September 2014
Macro factors appear well aligned: REITs have quasi debt-equity characteristics, due to which they become a play on yields, and property fundamentals (rent reversion, occupancy, etc).
We believe peaking out of long term bond yields (likely to soften going forward), and i m p r o v i n g p r o p e r t y fundamentals in the office sector (especially in the South,
where occupanc ies a re improving) will be conducive to REIT markets in India.
Further, debt on developers' balance sheets continues to remain high, and cash-flow generation from the residential sector has been sluggish making REITs an attractive exit option to accelerate cash-flows. Key plays on India REIT listings are DLF, Prestige Estates, Oberoi Realty and
35
‘Market valuations look interesting for 3-5 year term'
The market valuations are looking reasonable, considering the FY15
earnings estimate, but they look interesting for 3-5 year term, says Swati
Kulkarni, Executive Vice President (EVP) and Fund Manager – Equities, UTI
Mutual Fund, in an interview with ICICIdirect Money Manager. She has a
positive view on healthcare, banking, cement, industrial manufacturing,
automobiles, and consumer goods sectors, over the next 3-5 years.
Excerpts:
the Indian equity market. BSE Sensex FY 15 Bloomberg consensus price-to-earnings (P/E) multiple expanded from 14 to about 17 times. We believe that the investors will now take clues from the earnings growth which would guide the next up-move.
What are the possible negatives that could upset the momentum?
There is an expectation that the Indian government will now focus to revitalize the investment s ide of the economy. There are early signs of stuck projects getting clearances. A mismatch of market expectation about the industrial pick up vs. the actual on ground evidences of the same can be a risk in the short term. Also, global liquidity has remained supportive for 'Risk
Q:
A:
ICICIdirect Money Manager September 2014
Tête-à-tête
Swati Kulkarni,
Executive Vice President (EVP) &
Fund Manager – Equities,
UTI Mutual Fund
Q:
A:
Over the past few weeks, the markets have touched new highs. Can we expect the momentum to continue?
The global liquidity, early signs of Indian economy bottoming out and decisive general election results have been instrumental in re-rating
36
On' trades resulting into strong inflows into emerging markets including India. Any reversal in that can upset the markets temporarily.
Are the markets looking overvalued right now?
I would say they are looking reasonable considering the FY15 earnings estimate, but they look interesting for 3-5 year term.
What are your expectations in terms of earnings growth for Fy15?
The earnings growth for FY15 is expected to be 12% 14%. However, it is expected that as the economy picks up the operating leverage benefits can expand the current operating margins and support higher earnings growth from FY16 onwards.
Which sectors are likely to do well over the next 3-5 years?
We have a positive view on healthcare, banking, cement, industrial manufacturing, automobiles, and consumer goods over that period as India
Q:
A:
Q:
A:
Q:
A:
has a huge demographic a d v a n t a g e p r o v i d i n g sustainable domestic demand. The expected focus on and improvement in infrastructure, urbanization over the next 3-5 year period also augurs well for these sectors.
How are you looking at the entire public sector undertakings (PSU) space? Do you see value here?
PSU space appears to have value, provided they are able to participate in the anticipated economic recovery without any hindrances. We have to be cognizant about the valuation discount in these names, part of which may remain if the intermittent supply in some of the names from the government continues.
What do the recent macro economic data suggest about our economy?
The current domestic macro encapsulates: 1) a cyclical upturn and revival in growth sentiment. 2) Steady external balances given the manageable current account deficit (CAD) and robust capital
Q:
A:
Q:
A:
ICICIdirect Money Manager September 2014
Tête-à-tête
37
inflows. 3) Fiscal consolidation on its defined trajectory. 4) Elevated headline inflation levels, albeit structural factors such as high-wage inflation and sharp spike in minimum support prices (MSP) on the downtrend. 5) A steady and fairly-valued Indian rupee. T h e s e m e a s u r a b l e macroeconomic adjustments augur well and set the platform for bottoming out of growth cycle.
Various incipient signs of recovery are imminent in faster project clearances, strong core industries performance (viz. coal, electricity, cement), recovery in mining activity, strong capital goods growth, pick up in industrial performance, spike in manufac tur ing PMI (purchasing managers' index), improved consumer and business outlook, growth in exports, transportation and infrastructure lead indicators.
The recent macro data releases reflect the following:
- Q1FY15 gross domestic product (GDP) at 5.7% year
- on-year (YoY) encapsulates qualitatively improved
b r o a d - b a s e d g r o w t hcomposition (Agriculture at 3.8%, Industries at 4.2% & Services at 6.8%). The higher GDP growth reflects a pick-up in industries and improvement in the services sector performance.- April-July industrial production growth at 3.3% (vs -0.1% same period last year) has seen a pervasive improvement across sectors, viz. mining, manufacturing and electricity.
- August consumer price index (CPI) inf lat ion at 7.8% moderated from the 8% seen in July; Core CPI at 6.9% marked a series low. Inflation is expected to follow the reserve bank of India's (RBI's) disinflation glide path - food and fuel triggers to moderate g iven the recovery in monsoon and soft global crude oil price.
- August trade data marked a growth in exports (2.4%) as well as imports (2.1%) reflecting improving trade balances.
- Q1FY15 CAD at 1.7% of GDP; comfortable within the sustainable level of 2-2.5%
ICICIdirect Money Manager September 2014
Tête-à-tête
38
for Indian economy.
(This question has been answered by Meghna Shah, economist, UTI Mutual Fund).
How do you expect the interest rates to move from here?
The RBI has walked the tight rope juggling several macro variables including inflation, growth, currency and liquidity at the same time. The RBI's August monetary policy stance and language hinted at an extended pause in the key policy interest rates.
While growth indicators hint at an up-tick, inflation needs to be monitored with a cautious approach. Ups ide r i sks emanate from government's focus on rural development and inclusive growth which could imply price pressures. The RBI would also remain sensitive to demand-side factors picking up with growth recovery and normalization of US Fed's monetary policy going ahead.
The RBI would bear in mind consistent lower inflation and
Q:
A:
lower inflationary expectations before any rate action. The RBI's resolve to stick to the disinflation glide path of 6% CPI inflation by Jan 2016 do not portend any rate easing soon. We expect the Repo rate to remain at 8% during Fy15.
(This question has been answered by Meghna Shah, economist, UTI Mutual Fund).
What is your advice for retail investors at this point in terms of their overall portfolio and asset allocation?
Equity as an asset class provides long term returns that can beat inflation. Our analysis suggests that investing in portfolios of quality companies with strong brands and strong f u n d a m e n t a l s p r o v i d e s consistent returns over 3-5 years. Investors need to work out their financial needs in terms of the return objective and investment horizon to allocate their investments in the equity, debt and liquid assets rather than timing the markets.
Q:
A:
ICICIdirect Money Manager September 2014
Tête-à-tête
The views expressed in the interview are personal views of the authors and do
not necessarily represent the views of ICICI Securities.
39
ASK OUR PLANNER
ICICIdirect Money Manager September 2014
Switching your mutual funds investments
Q :
A:
I somet imes watch TV
programmes on investments / read
articles in magazines. The experts /
advisors while giving opinions on
the investment / por t fo l io
(specifically about mutual funds)
mention that a person has to stop
SIP / withdraw money from a
particular plan and shift to other
plan. But they do not mention that,
after stopping the SIP in existing
plan whether to transfer all amount
in single transaction to the
suggested plan or to follow any
specific method like: 1) carry out
stepwise withdrawal from existing
plan and put that money in new
suggested plan, or 2) redeem all
units and put that money in account
and start SIP in newly suggested
plan etc. Can you please advice on
this scenario?
- Vivek Bhat
It is true that mutual fund
investments have to be
monitored continuously, at
l e a s t o n c e a y e a r, t o
understand whether these are
performing better than their
benchmark and peer funds.
Further, one needs to also
check whether there is any
significant change in the stock-
selection style of the fund, any
change in the fund manager,
whether portfolio is skewed to
any specific sector, etc. It is on
these bases, the experts
suggest shifting existing
investments to better funds,
and not based on one's goals.
In such cases, one may redeem
all the units in the existing fund
at one go, and invest into the
suggested fund in lump sum. If
both the funds belong to the
same asset management
company (AMC), then one may
do the same through a 'switch'
transaction. However, one will
have to consider capital gain
taxation before doing this. If it's
an equity-oriented fund, then
redeeming or switching within
1 year attracts short-term
capital gain tax of 15%.
40
ASK OUR PLANNER
ICICIdirect Money Manager September 2014
On the other hand, if the
suggestions are based on
one's goals, which could also
include shifting between asset
classes, such as from equity
fund to a debt or a liquid fund, if
a goal is nearing, shifting
systematically through a
Systematic Transfer Plan (STP)
can be done.
Also, if one has an SIP going on
into the existing fund, it can be
stopped and a fresh SIP can be
started into the suggested
fund.
I have been investing Rs. 2,500
per month in National Pension
System (NPS) tier-I account for the
last 2.5 years. How do you see this
mode of saving? I have a home loan
EMI of Rs. 24,000 and I live in the
same house. I have also purchased
2 plots, one in Noida and another in
a tier-III city for my two kids. One
kid is 5 years old and another one is
to come in the world next month.
- Karan Rana
Q:
A: From the details that you
have disclosed, it seems that
you have invested into real
estate for your children's future
goals. While real estate is seen
as a good option by many of
us, given the returns it has
provided in the last decade, it is
also important to understand
that this asset class runs
through cycles. Further, there
are certain risks attached to
this asset class. First, as
investment in real estate can
be large, it can destabilize one's
por t fo l io . L iqu id i ty and
overleveraging are also other
risks associated. Hence,
looking at different investment
options and diversifying a
portfolio remains a better
option.
With regard to NPS, it is more
suitable for a conservative
investor, having a low risk
appetite. Also, withdrawals in
NPS are currently taxable;
though it is proposed to have a
tax-free status going ahead.
We suggest, if you are in your
41
ASK OUR PLANNER
ICICIdirect Money Manager September 2014
30s, invest aggressively in
options such as equity and
equity mutual funds, for your
children goals and other long-
term goals.
I have been reading about
exposure to international funds in
several places including your
Money Manager magazine. I need
some clarity on the same. I have
59% in large-cap, 32% in mid-cap
and small-cap, and 9% in sector
fund. I am pondering that though
Indian economy is doing good, this
is certainly going to be cyclical.
Should I have some investment in
international funds? If so, should I
go for a country-specific fund or a
global fund? What percentage of
equity exposure should be there in
the international funds? Do you
know of any international funds
that can help me build a robust
portfolio and what should be the
time horizon of investing in them?
What kind of returns one can
expect?
- Sailesh Damani
Q:
A: Exposure to International
F u n d s d o e s p r o v i d e
diversification, and hence, it
should form a part of the
overall portfolio (5%-10% of
the portfolio). Given that
domestic markets have seen a
turn-around, higher exposure
to domest ic markets is
advisable.
We do not have an active
coverage on International
Funds, some funds, however,
you may look to invest are:
1. ICICI Prudential US Bluechip
Equity Fund - Regular Plan -
Growth
2. Franklin India Feeder -
Franklin U.S. Opportunities
Fund - Growth
In house, we do not take any
country or economic specific
calls, and hence, we do not
have explicit view on the
International Funds. Although,
we believe, these bigger asset
management companies
(AMCs) may have the needed
42
ASK OUR PLANNER
ICICIdirect Money Manager September 2014
resources to conduct global
research and hence can be
trusted upon.
I was really excited to see the
example given in your August
edition to explain the difference in
taxation between a fixed deposit
(FD) and mutual fund (MF) debt
scheme. The tax difference, it is
known, is huge for a long term
investor more than 3 years. Here, I
could not resist myself from asking
one question that the example is
very true --- if the Debt fund
generates an assured return of 10%
p.a., which nobody guarantees but
people site the example of that fund
when it actually performed well. It
is very difficult to suggest a fund
prior to investment, which is
almost surely expected to give that
much return as FD. Only you can
take a chance. But in a FD, it is not a
chance; it is confirmed prior to the
investment. Your example is true
and correct for those funds which
are almost sure to earn 10% p.a. I
will be very happy to know at least
3 funds which, as an expert, you
Q:
can advise me to invest so that the
effective earning is better than FD.
- S. Sengupta
As rightly mentioned by
you, there are no assured
returns in mutual fund debt
schemes. However, there are
chances that debt funds could
deliver similar returns to Fds,
or even better returns in some
cases.
While it is difficult to judge a
fund for its exact expected
performance for a period of
next 3 years, there are some
funds, which could deliver
better returns, based on the
quality of papers invested by
the fund, their duration and the
future outlook on the interest
rates.
For specific recommendations,
by our research team, you may
visit Mutual Funds page in Do
Your Research Section on our
website www.icicidirect.com.
A:
43
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Pension Plans by Mutual Funds
Key Information:
Franklin India Pension Plan
At present, there are only two pension plans available in the market. These are: Franklin India Pension Plan and UTI Retirement Benefit Pension Fund. Here, we analyse these, to help you plan your retirement:
Fund Objective:
The fund seeks to provide
investors regular income
under the dividend plan and
capital appreciation under the
growth plan.
NAV as on August 28,2014 (`) 84.0
Inception Date April 30,1997
Fund Manager Anil Prabhudas
Minimum Investment (`) 500
Expense Ratio (%) 2.46
Benchmark Crisil Composite Bond Fund Index
(Lumpsum)
Exit Load:
Product Label:
3% before the age of 58 years; Nil-after the age of 58 years.
This product is suitable for investors seeking*:• Long term capital appreciation• Investment in equity instruments
(maximum-40%) and debt/ money market instruments
Fund Manager Profile:
Performance:
Mr. Anil Prabhudas is assistant vice president and senior research analyst for Franklin Templeton India AMC Ltd, based in Chennai, India. He holds a bachelor in commerce from Bombay University, and is also a chartered accountant.
In the last year, the fund delivered absolute 18% return as equity allocation to the extent of 40% of portfolio has benefited the fund. The fund is an open-ended tax-saving scheme notified under Section 80C with a lock-in period of three financial years. Post tax return for the fund, therefore, adds the tax savings to the capital appreciation. It has delivered 10% annualised return, which is higher than popular pension products available in the market, e.g. pension plans offered by insurance companies, whose returns are in the range of 7%-8% per annum.
44
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
17.9
30
13
10.3
6.6 1
2.4
7.9
7
05
101520253035
6 Month 1 Year 3 Year 5 Year
Retu
rn%
Fund Benchmark
Performance vs. Benchmark
Current Value of Standard Investment of ` 10,000
Portfolio:
The fund manager seeks
steady capital appreciation by
maintaining a diversified
portfolio of equities and seeks
to earn regular income on fixed
income component by
managing interest rate
movements and credit risk.
As on August 31, 2014, 45% of
its assets are invested in
government securities of
longer maturity. The fund
manager is able to take higher
exposure to longer tenure
papers on account of higher
lock-in, and also, as it is a
retirement fund, assets under
management (AUM) are sticky
in nature.
Equity allocation as on August
31, 2014 is up to 40%, which is
the highest that the fund can
take as per its objective,
indicating the fund manager is
bullish on equity markets. The
portfolio has allocation to both,
large-cap and mid-cap stocks.
The overall portfolio is well
positioned for generating
capital appreciation in the
current positive turnaround.
The fund scores over a normal
equity linked savings scheme
(ELSS), as apart from the
scheme being notified under
section 80C and hence, a three
year lock-in, it has a higher exit
load of 3% for redemption
before attaining the age of 58
years, which deters earlier
redemptions and helps to
achieve the goal of
accumulat ing ret i rement
corpus.
View:
212
207
222
222
234
242
240
245
236
247
256 278
0
50
100
150
200
250
300
Sep
/11
Dec/1
1
Mar/
12
Ju
n/1
2
Sep
/12
Dec/1
2
Mar/
13
Ju
n/1
3
Sep
/13
Dec/1
3
Mar/
14
Ju
n/1
4
AU
M(|
Cro
res)
AUM movement
17.2
12.4
3.6
16.8
9.9
2.5
-2.4
7
12.1
7.1
-5.0
0.0
5.0
10.0
15.0
20.0
30-Jun-13 To 30-Jun-14 30-Jun-12 To 30-Jun-13 30-Jun-11 To 30-Jun-12
Ret
urn%
Fund Benchmark Crisil 10 year Gilt
Fund 81442
Benchmark NA
Crisil 10 year Gilt index NA
45
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13
Top 10 Holdings Asset Type %
09.23% GOI 2043 Government Securities 18.51
09.20% GOI 2030 Government Securities 18.12
HPCL-Mittal Pipelines Ltd. Corporate Debt 8.89
08.60%GOI -02-Jun-2028 Government Securities 7.97
Cash & Cash Equivalent Cash & Cash Equivalents 3.46
Eicher Motors Ltd. Domestic Equities 2.79
Andhra PradeshExpressway Ltd. Corporate Debt 2.52
ICICI Bank Ltd. Domestic Equities 2.5
HDFC Bank Ltd. Domestic Equities 2.42
Bharti Airtel Ltd. Domestic Equities 2.35
Whats In %
Idea Cellular Ltd. 0.4
Power Grid Corporation Of India Ltd. 0.1
Cash & Cash Equivalent 3.5
%Whats OutPetronet LNG Ltd. 0.5
Call Money 3.3
Power Grid Corpn. of India Ltd. 10.9% (21-Jun-15) 0.1
Performance of all the schemes managed by the fund manager
Fund Name30-Jun-13
30-Jun-14
30-Jun-12
30-Jun-13
31-Jun-11
31-Jun-12
Franklin India Balanced Fund(G) 30.58 11.35 -0.75
Crisil Balanced Fund Index 20.99 10.91 -0.98
Franklin India Index Fund-NSE Nifty(G) 29.92 10.67 -6.40
CNX Nifty Index 30.28 10.67 -6.53
Franklin India Pension Plan(G) 17.25 12.44 3.57
CNX 500 Index 36.87 8.16 -7.79
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
(Blue) Investors understand that
their principal will be at low risk
(Yellow) Investors understand that
their principal will be at meduim risk
(Brown) Investors understand
that their principal will be at high
risk
Data as on August 29, 2014; Portfolio details as on July 31, 2014Source: ICICIdirect Research, Accord Fintech
CDs -- -- -- -- -- -- -- -- 10.09 -- -- -- -- --
CPs -- -- -- -- -- -- -- -- -- -- -- -- -- –
Corp Bond 11.53 11.74 11.85 12.61 12.91 12.72 38.21 28.92 28.33 28.35 28.22 28.52 28.93 45.17
Gsec 45.46 45.61 -- 44.84 47.24 46.78 20.76 21.32 15.77 32.01 32.13 25.58 20.69 17.18
Others 43.00 42.66 88.15 42.55 39.85 40.50 41.02 49.76 45.81 39.64 39.65 45.90 50.38 37.65
Credit quality %
A & Eqiv -- -- -- -- -- -- -- -- -- -- -- -- -- –
AA & Equiv 8.89 9.05 9.13 9.35 9.60 9.45 19.33 19.63 19.25 19.28 19.20 19.31 19.60 19.31
AAA & Equiv 2.64 2.69 2.72 3.26 3.31 3.27 18.89 9.29 19.17 9.07 9.02 9.21 9.33 25.85
Cash & Equivalent 3.46 3.25 49.13 3.67 2.41 2.44 3.20 13.41 8.60 2.48 2.67 10.79 15.54 2.50
SOV 45.46 45.61 -- 44.84 47.24 46.78 20.76 21.32 15.77 32.01 32.13 25.58 20.69 17.18
Others -- -- -- -- -- -- -- -- -- -- -- -- – –
Asset Allocation %
Credit quality %
46
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
UTI Retirement Benefit PensionFund
Fund Objective:
To provide pension in the form
of periodical income/ cash flow
to the unit-holders to the extent
of redemption value of their
holding after they complete 58
years of age.
Key Information
NAV as on August 28, 2014 (`) 20.0
Inception Date December 28, 1994
Fund Manager Amandeep Singh Chopra
Minimum Investment (`) 500
Expense Ratio (%) 2.17
Benchmark Crisil Debt Hybrid (60:40)
(Lumpsum)
Exit Load:
5% - < 1 year; 3% - >= 1 year & < 3 years; 1% - >= 3 years; Nil - >= 5 years; Nil - Redemption at maturity (i.e. 58 years of age).
Product Label:
This product is suitable for investors seeking*:
• Long term capital appreciation
• Investment in equity instruments(maximum-40%) and debt/ money market instruments
• Medium risk
Fund Manager Profile:
Performance:
Mr. Amandeep Singh Chopra is a graduate from St. Stephens College, Delhi and an MBA from FMS, Delhi. He has been with UTI AMC since 1994.
Being a fair ly balanced portfolio, the returns are more or less in line with benchmark index. Since its inception in December 1994, the fund has delivered 11% annualised return, which is not the best return among hybrid funds, but definitely better than popular pension products available in the market whose returns are in the range of 7%-8% per annum.
Performance vs. Benchmark
16.3
27.2
11.4
9.21
3.4
24.8
12.6
4.5
05
1015202530
6 Month 1 Year 3 Year 5 Year
Retu
rn%
Fund Benchmark
Yearly Returns
18.6
9.4
1.9
17.3
10.1
2.9
-2.4
7
12.1
7.1
-5.0
0.0
5.0
10.0
15.0
20.0
30-Jun -13 To 30 -Jun -14 30-Jun -12 To 30 -Jun -13 30-Jun -11 To 30 -Jun -12
Retu
rn%
Fund Benchmark Crisil 10 Year Gilt Index
Current Value of Standard Investment of ` 10,000
Fund 79454
Benchmark NA
Crisil 10 year Gilt index NA
Since inception to June 30, 2014
47
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
AUM movement76
5
765
827
827
883
929
936
964
956
1025
1087 12
26
0200400600800
100012001400
Sep
/11
Dec
/11
Mar
/12
Jun/
12
Sep
/12
Dec
/12
Mar
/13
Jun/
13
Sep
/13
Dec
/13
Mar
/14
Jun/
14
AUM
(| C
rore
s)
Portfolio:As on August 31, 2014, 39% of the funds are invested in equ i t i es . Equ i ty s tocks selected are majority large-cap stocks or the larger mid-cap stocks. Allocation to equities has been in the range of 30-40% of the total assets under management (AUM) over the long term.Allocation to fixed-income securities fluctuates between c o r p o r a t e d e b t a n d government securities. The larger portion of the debt is invested in corporate debt with
AA, AA+ and above rating. Investment in government securities has gone up to 20% in August 2014 from ~12% in March 2014. Consequently, allocation to corporate debt has been reduced to 30% from 41% in the same period.
We like the balance that the fund has maintained in terms of investing into equities, c o r p o r a t e d e b t a n d government securities. While equities will provide alpha, the credit strategy (to invest in AA papers that have higher coupon) will cushion returns via higher accrual, and allocation to government securities will play the interest rate cycle.
View:
Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13
Asset Allocation %
CDs -- -- -- -- -- 3.38 -- -- -- -- -- -- -- 0.17
CPs -- -- -- -- -- -- -- -- -- -- -- -- -- 2.66
Corp Bond 31.45 31.41 34.72 36.03 39.57 40.39 42.05 42.86 44.62 45.74 45.31 44.55 44.67 45.15
Gsec 20.46 21.75 20.70 19.49 16.23 11.97 12.40 12.69 11.27 10.63 9.93 11.69 11.68 7.38
Others 48.09 46.84 44.58 44.48 44.20 44.26 45.55 44.45 44.11 43.63 44.76 43.76 43.65 44.64
A & Eqiv -- -- -- -- -- -- -- -- -- -- -- -- -- –
AA & Equiv 21.22 20.89 24.04 25.00 27.95 28.52 29.69 30.26 31.09 31.90 25.81 25.45 26.21 26.20
AAA & Equiv 10.23 10.52 10.68 11.03 11.62 15.25 12.36 12.60 13.53 13.84 19.50 19.10 18.46 21.83
Cash & Equivalent 8.11 7.08 4.15 3.85 4.59 3.39 4.93 5.07 3.28 2.37 3.64 3.52 3.55 5.14
SOV 20.46 21.75 20.70 19.49 16.23 11.97 12.40 12.69 11.27 10.63 9.93 11.69 11.68 7.38
Others -- -- -- -- -- -- -- -- -- -- -- -- -- –
Credit quality %
Other attributes (Years)
Avg Maturity(Yrs) 5.67 5.85 5.90 5.90 5.66 5.32 5.37 5.44 5.47 5.53 5.27 5.59 5.86 5.18
48
MUTUAL FUND ANALYSIS
ICICIdirect Money Manager September 2014
Top 10 Holdings Asset Type %08.83% GOI - 25-Nov-2023 Government Securities 13.14
Net Current Asset Cash & Cash Equivalents 8.11
Shriram Transport Finance Company Ltd. (24-Aug-15) Corporate Debt 4.03
Sterlite Industries (India) Ltd. 9.1% (05-Apr-23) Corporate Debt 3.87
Power Finance Corpn. Ltd. (20-Nov-19) Corporate Debt 3.28
08.20% GOI 2025 Government Securities 2.64
Sundaram Finance Ltd. 10.55% (23-Sep-16) Corporate Debt 2.01
Reliance Gas Transporation Infrastructure Ltd. 10.25% (22-Aug-21) Corporate Debt 2.01
Tata Motors Ltd. 9.7% (18-Jun-20) Corporate Debt 1.97
ICICI Bank Ltd. Domestic Equities 1.86
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
(Blue) Investors understand that
their principal will be at low risk
(Yellow) Investors understand that
their principal will be at meduim risk
(Brown) Investors understand
that their principal will be at high
risk
Data as on August 29, 2014; Portfolio details as on July 31, 2014Source: ICICIdirect Research, Accord Fintech
Performance of all the schemes managed by the fund manager
Fund Name30-Jun-13
30-Jun-14
30-Jun-12
30-Jun-13
31-Jun-11
31-Jun-12UTI Balanced Fund(G) 34.71 8.18 -3.51Crisil Balanced Fund Index 20.99 10.91 -0.98UTI CC Balanced Plan 22.80 21.41 4.22Crisil Debt Hybrid (60:40) 17.30 10.10 2.92UTI Retirement Benefit Pension 18.56 9.38 1.91Crisil Debt Hybrid (60:40) 17.30 10.10 2.92UTI ULIP(G) 16.42 9.99 5.22Crisil Debt Hybrid (60:40) 17.30 10.10 2.92UTI CRTS 1981(D) 16.41 9.56 13.68Crisil Debt Hybrid (75:25) 14.08 9.84 5.18UTI MIS Adv Plan(G) 16.09 9.99 4.63Crisil MIP Blended Index 8.24 10.86 6.56UTI Mahila Unit(G) 15.73 6.88 1.87Crisil Debt Hybrid (75:25) 14.08 9.84 5.18UTI MIS(G) 10.60 9.74 6.25Crisil MIP Blended Index 8.24 10.86 6.56UTI Dynamic Bond Fund-Reg(G) 9.83 10.98 9.59Crisil Composite Bond Fund Index 4.55 10.75 8.71UTI G-Sec-STP(G) 9.10 7.79 9.02I-Sec Si-BEX 6.80 9.53 9.32UTI Income Opp Fund(G) 8.36 -- --Crisil Short Term Bond Fund Index 8.76 -- --UTI Gilt Adv-LTP(G) 3.76 11.98 9.44I-Sec Li-BEX 1.67 14.51 9.74UTI Bond Fund(G) 3.50 13.25 10.99Crisil Composite Bond Fund Index 4.55 10.75 8.71
Whats In %Cummins India Ltd. 0.1
Housing Development Finance Corporation Ltd.9.5% 0.4
08.60% GOI -02-Jun-2028 1.6
%Whats OutWyeth Ltd. 0.3
Oil India Ltd. 0.3
Rural Electrification Corpn Ltd 09.24% (17-Oct-18) 2
49
Our indicative large-cap equity model portfolio has continued to deliver an impressive return of 73.4% (inclusive of dividends) till date (as on September 8, 2014) since its inception (June 21, 2011) vis-à-vis the benchmark index (S&P BSE Sensex) return of 55.6% during the same period, out-performance of 17.8%. Our portfolio approach towards high-quality stocks aided us in outperforming the Sensex with continued success. We continue to trust our philosophy of choosing stocks where the risk reward is favourable and not just the reward aspect. We feel “Quality-21” large-cap portfolio will continue to be aligned to the same philosophy.
Our “Consistent-15” mid-cap portfolio also continues to outperform, delivering 77.1% (inclusive of dividends) till date (as on September 8, 2014) vis-à-vis the benchmark index (CNX Midcap) return of 52.3%, as we continued to identify fundamentally strong stocks. Some key performers of our portfolio are Sun Pharmaceuticals, Lupin, Tata Consultancy Services (TCS), Tata Motors, Info Edge and Dabur India delivering 97%-190% returns since inception.
We have always suggested the systematic investment plan (SIP) mode of investment and still find a lot of merit in it as the preferred mode of deployment given the market conditions and volatility associated since the inception of the portfolio. It has outperformed other portfolios, thus, reinforcing our belief in a plan of investment. However, now we are also advising clients to look at lump-sum investments at any possible dips.
In the last few years, anxiety stemming from weak economic health and unstable policy environment has resulted in defensive sectors commanding high scarcity premium while debt-ridden cyclicals witnessed a de-rating. However, the recent decisive election verdict has given investors optimism over the overall growth prospects of the economy. Thus, the current rally has totally reversed the penchant for defensives (like information technology (IT), pharmaceuticals and fast-moving consumer goods (FMCG)), which have underperformed in 2014 year-to date (YTD). On the other hand, old economy sectors, including capital goods, realty, metals, power and oil & gas have been topping the
EQUITY MODEL PORTFOLIO
ICICIdirect Money Manager September 2014
50
charts this year, signifying changing investor preference.
Thus, from a portfolio perspective, we have now leaned forward towards inclusion of stocks with more real economy, domestic discretionary exposure viz. GAIL, JK Cement, Arvind, etc. We have, thus, taken a strategic call of including stocks that possibly have a larger opportunity size either via reforms push or via revival in the discretionary demand from domestic consumers. Thus, we exit Page Industries and Nestlé with minimal returns.
Hence, we have made a significant shift in our portfolio stance to play the recovery cycle. In terms of relative weightage of the sector vis-à-vis the Sensex, we have changed our stance and gone overweight on financials (raising weights of public sector banks), oil & gas, the infrastructure space (cement, infrastructure and power). This has been primarily triggered by the possibility of decisive action in the infrastructure and real economy space by the new government. We have maintained our overweight stance on telecom considering the reducing regulatory hurdles and relatively better earnings growth profile. We are also overweight on sunrise sectors like media via Zee Entertainment.
We have, thus, positioned away from pure play defensives like the pure play mature exporter- IT and the expensive FMCG space. We feel both these sectors may have normalised earnings growth but the sectoral churning would cause them to de-rate on valuation terms.
For other equal weight sectors we are playing consumer discretionary sectors like autos (pent up demand, strong franchises) and the metals and mining space (high infrastructure demand expected), pharmaceuticals (large global generic opportunity yet to be tapped).
On individual names, we are strongly overweight on companies like L&T and UltraTech Cement in the infrastructure space while in public sector banks we like State Bank of India (SBI).
We believe we now have a better balance to our portfolio going into a recovery cycle and possibly a longer-term Bull Run.
EQUITY MODEL PORTFOLIO
ICICIdirect Money Manager September 2014
ICICIdirect Money Manager 51 September 2014
Name of the company
Largecap Stocks
Model Portfolio
Largecap(%)
Midcap(%)
Diversified(%)
EQUITY MODEL PORTFOLIO
Consumer Discretionary 10 7
United Spirits 2 1.4
Tata Motors DVR 4 2.8
Bajaj Auto 2 1.4
Titan 2 1.4
BFSI 27 18.9
HDFC 6 4.2
HDFC Bank 6 4.2
SBI 8 5.6
Axis Bank 7 4.9
Power, Infrastructure & Cement 13 9.1
L & T 8 5.6
Ultratech Cement 5 3.5
FMCG 10 7
ITC 10 7
Metals & Mining 4 2.8
NMDC 4 2.8
Oil and Gas 14 9.8
Reliance 11 7.7
Gail 3 2.1
Pharma 5 3.5
Lupin 2 1.4
Sun Pharma 3 2.1
IT 12 8.4
Infosys 3 2.1
TCS 6 4.2
Wipro 3 2.1
Telecom 3 2.1
Bharti Airtel 3 2.1
Media 2 1.4
Zee Entertainment 2 1.4
Largecap share in diversified 70
52
Midcap Stocks
Content source: ICICIdirect.com Research
ICICI Securities Ltd. has been assigned an advisory mandate by Ranbaxy Laboratories Limited with regard to Sun Pharmaceutical Industries Limited's acquisition of Ranbaxy Laboratories Limited. This report is prepared on the basis of publicly available information.
EQUITY MODEL PORTFOLIO
Name of the company Model Portfolio
Largecap(%)
Midcap(%)
Diversified(%)
ICICIdirect Money Manager September 2014
Consumer Discretionary 20 6
Bosch 6 1.8
Cox & Kings 6 1.8
Arvind 8 2.4
IT 6 1.8
Info Edge 6 1.8
BFSI 16 4.8
DCB 8 2.4
IndusInd Bank 8 2.4
FMCG 14 4.2
Kansai Nerolac 8 2.4
Tata Global Beverages 6 1.8
Pharma 6 1.8
Natco Pharma 6 1.8
Media 8 2.4
PVR 8 2.4
Capital Goods 6 1.8
Cummins 6 1.8
Realty/Infrasturcture/Cement 24 7.2
JK Cement 6 1.8
Container Corporation of India 6 1.8
Oberoi Realty 6 1.8
Shree Cement 6 1.8
Midcap share in diversified 30
Total of all three portfolios 100 100 100
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
4,0
00,0
00
4,0
00,0
00
4,0
00,0
00
5,7
02,9
05
6,6
75,6
17
5,9
48,3
72
5,4
26,9
71
5,9
10,8
55
4,6
10,1
55
53
Large Cap Midcap Diversified
Performance* so far Since inception
*Returns (in %) as on September 8, 2014
Large-cap Portfolio Benchmark: BSE Sensex; Mid-cap Portfolio
Benchmark: CNX Midcap; Diversified Portfolio Benchmark: Combination
of BSE Sensex and CNX Midcap
Value of ` 1,00,000 invested via SIP at the end of every month
Portfolia Benchmark
Largecap Midcap DivesifiedInvestment Value of Investment in Portfolio Value if invested in Benchmark
EQUITY MODEL PORTFOLIO
ICICIdirect Money Manager September 2014
73.477.1 75.4
55.652.3 52.1
10
20
30
40
50
60
70
80
90
%
0
Start date of SIP: June 30, 2011; *Value as on September 8, 2014
54ICICIdirect Money Manager September 2014
MUTUAL FUND MODEL PORTFOLIO
EQUITY MUTUAL FUNDS MODEL PORTFOLIO
Investors who are wary of investing directly into equities can still get returns almost as good s equity markets through the mutual fund route. We have designed three mutual fund model portfolios, namely, conservative, moderate and aggressive. These portfolios have been designed keeping in mind various key parameters like investment horizon, investment objective, scheme ratings, and fund management.
Keeping in mind the current market scenario, we have revised the portfolio allocation. Based on the portfolios of individual funds, we have introduced mid-cap funds in the portfolio.
All three portfolios have outperformed the benchmark index
Returns (in %) are compounded annualized (since April 15, 2009); Source: ICICIdirect.com Research, Crisil Fund Analyser
Particulars Aggressive Moderate Conservative
Review Interval
Risk Return
Monthly QuarterlyMonthly
High Risk- High Return
Medium Risk - Medium Return
Low Risk -
Low Return
Funds Allocation% Allocation
Franklin India Prima Plus 20 20 20
Birla Sunlife Frontline Equity 20 20 20
ICICI Prudential Dynamic Plan - - 20
UTI Opportunities - 20 20
Reliance Long Term Equity 20 - -
ICICI Prudential Value Discovery 20 20 20
HDFC Midcap Opportunities 20 20 -
Grand Total 100 100 100
Source: ICICIdirect.com Research
20.9019.57 19.72
15.94
0
5
10
15
20
25
Aggressive Moderate Conservative BSE 100
(%)
Returns
55
MUTUAL FUND MODEL PORTFOLIO
ICICIdirect Money Manager September 2014
DEBT MUTUAL FUNDS MODEL PORTFOLIO
We have designed three different mutual fund model portfolios for different investment duration namely less than six months, six months to one year and above one year. These portfolios have been designed keeping in mind various key parameters like investment horizon, interest rate scenarios, credit quality of the portfolio and fund management, etc.
Source: ICICIdirect.com Research
CY14 YTD* (year-to-date) returns closer to 6% so far
YTD*: August 28, 2014; Source: Crisil Fund Analyser, ICICIdirect.com Research; Index: 0-6 months portfolio – Crisil Liquid Fund Index; 6 months-1 year – Crisil Short Term Index; Above 1 year: Crisil Composite Bond Index.
ParticularsTime Horizon
0 – 6 months 0 – 6 months 1 Tear Above 1 Year
Objective LiquidityLiquidity with
moderate return Above FD
Review Interval Monthly QuarterlyMonthly
Risk ReturnVery Low Risk - Nominal Return
Medium Risk -Medium Return
Low Risk - High Return
Funds Allocation% AllocationUltra Short term Funds
IDFC Money Manager Fund - Investment Plan 20 - -
Templeton India Low Duration Fund 20 - -
Reliance Medium Term Fund 20 - -
Short Term Debt Funds
Taurus Short Term Income Fund 20 - -
Birla Sunlife Short Term Fund 20 - -
Birla Sunlife Short Term Opportunities Fund - 20 20
ICICI Prudential Short Term - 20 -
ICICI Prudential Regular Savings - - 20
IDFC SSI Short Term - 20 -
Sundaram Select Debt - 20 20
UTI Short Term Fund - 20 -
Templeton Short Term Income - - 20
Long Term/Dynamic Debt FundsIDFC Dynamic Bond fund - - 20
Total 100 100 100
5.766.12
6.525.94
6.51
7.88
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
0-6 Months 6Months - 1Year Above 1yr
%
Portfolio Index
56
QUIZ TIME
1. Switching equity-oriented mutual funds within 1 year attracts short-term
capital gain tax. True/ False
2. The minimum annual contribution for Tier-I national pension system
(NPS) account is Rs. ______.
3. One can deposit a maximum of Rs. ______ every year in public provident
fund (PPF) account.
4. There is no upper-cap on the contributions for investing into NPS. True/
False
5. A Tier-II account of NPS has withdrawal option. True/ False
Note: All the answers are in the stories that have appeared in this edition of
ICICIdirect Money Manager. You may send in your answers at:
The answers will be published in our next edition. The names of the earliest
all correct entries will be published too. So jog your grey cells and be quick
to send in your entries.
Correct answers for the August 2014 quiz are:
1. As per the Companies Act, 2013, the first annual general meeting (AGM)
for a newly established firm has to be held within ______ months from
the date of closing of its first financial year.A: 9
2. ______ resolutions are passed if the number of votes cast in favor of the
resolution exceeds the number of votes cast against the resolution.A: Ordinary
3. The total remuneration payable to the directors of a company with
respect to any financial year should not exceed ______% of the
net profits of the company for that financial year.A: 11%
4. ______ method of voting follows the principle of one vote per person.A: Show of hands
5. The Companies Act, 2013, mandates rotation of audit firms every ______
years and of the individual auditor every ______ years.A: 10 years; 5 years
Congratulations to the following winners for providing correct answers!
Narasimharao Maddineni; Suresh Babu K
ICICIdirect Money Manager September 2014
57
MONTHLY TRENDS
VIX is a key measure of market expectations of near term volatility.When the markets are highly volatile, the VIX tends to rise.
ICICIdirect Money Manager September 2014
8.43
5.15
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Jul-14 Aug-14
(%)
WPI INFLATION (FOOD)
CRUDE OIL
(The figures are in %)
NYMEX crude oil prices ($/barrel)
FII & DII INVESTMENTS
(Foreign institutional investors (FIIs) and domestic institutional
investors (DII) net equity investment ( ` in crore)
98.17
95.96
90.0
91.0
92.0
93.0
94.0
95.0
96.0
97.0
98.0
99.0
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
$ pe
r ba
rrel
427.03
-710.63
515.66 730.43
-1000
-500
0
500
1000
1500
2000
2500
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-AugFII DII
.
13.8213.07
12.0
13.0
14.0
15.0
16.0
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
VIX
VIX
VOLATILITY INDEX (VIX)
58
MONTHLY TRENDS
ICICIdirect Money Manager September 2014
DOMESTIC INDICES BSE Sensex
25894.97
26638.11
24500
25000
25500
26000
26500
27000
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
7721.30
7954.35
7300
7400
7500
7600
7700
7800
7900
8000
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
16563.30
17098.45
15900
16200
16500
16800
17100
17400
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
4,369.77
4,580.27
4200
4300
4400
4500
4600
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
60.5560.51
59.8
60.0
60.2
60.4
60.6
60.8
61.0
61.2
61.4
61.6
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
US
D /
IN
R
NSE Nifty
2.87%
3.02%
GLOBAL INDICES Dow Jones
NASDAQ
EXCHANGE RATES USD-INR
3.23%
4.82%
0.07%
59
MONTHLY TRENDS
ICICIdirect Money Manager September 2014
(The prices are in $ per ounce). (Source for all indicators: Bloomberg, Reuters)
102.23
100.42
98.0
99.0
100.0
101.0
102.0
103.0
104.0
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
£/
INR
81.06
79.46
78.0
80.0
82.0
84.0
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
£/
INR
1282.09 1287.07
1150
1225
1300
1375
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
$ p
er O
unce
20.35
19.43
18.0
20.0
22.0
31-Jul 4-Aug 8-Aug 12-Aug 16-Aug 20-Aug 24-Aug 28-Aug
$ pe
r O
unce
POUND-INR
1.77%
EURO-INR
1.98%
BULLION GOLD
(The prices are in $ per ounce).
SILVER
60
Premium Education Programmes Schedule
ICICIdirect Centre for Financial Learning (ICFL) imparts quality education on
financial markets to beginners and amateurs, student, housewives, working
professionals and self employed. ICFL's broad objective is to make participant
feel confident to start investing in stock market.
Here is the list of our programmes scheduled for the month of September, 2014.
Schedule for Beginners Programme on Futures and Options Trading
Sr.No
City Dates For More Information & Registration call:
ICICIdirect Money Manager September 2014
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast Track Beginners Programme on Futures and Options Trading
Sr.No
City Dates For More Information & Registration call:
Schedule for Foundation Programme on Stock Investing
1 Navi Mumbai Sep 13 and 14,2014 Manish on 8451057943
2 Mumbai-Chembur Sep 13 and 14,2014 Manish on 8451057943
3 Mumbai-Andheri Sep 20 and 21,2014 Vidhu on 9619716146
4 Thane Sep 20 and 21,2014 Vidhu on 9619716146
5 Kolkata Sep 13 and 14,2014 Sumit on 8017516187
6 New delhi Sep 27 and 28,2014 Vishal on 07838290143, Harneet on 09582158693
7 Pune Sep 20 and 21,2014 Kusmakar on 7875442311
8 Hyderabad Sep 20 and 21,2014 Ruchi on 8297362323
9 Chennai Sep 20 and 21,2014 Manivannan on 9742273109
10 Mumbai-Chembur Sep 06 and 07,2014 Manish on 8451057943
11 Chandigarh Sep 13 and 14,2014 Vishal on 07838290143
12 Ranchi Sep 07,2014 Sumit on 8017516187
13 Jamnagar Sep 07,2014 Yogesh on 8238053563
14 Vadodara Sep 21,2014 Yogesh on 8238053563
15 Jodhpur Sep 07,2014 Vishal on 07838290143
16 Bhubaneshwar Sep 14,2014 Sumit on 8017516187
17 Meerut Sep 14,2014 Harneet on 09582158693
18 Pune Sep 06 and 07,2014 Kusmakar on 7875442311
19 Navi Mumbai Sep 20 and 21,2014 Manish on 8451057943
20 Mumbai-Chembur Sep 20 and 21,2014 Manish on 8451057943
21 Mumbai-Andheri Sep 06 and 07,2014 Vidhu on 9619716146
22 Thane Sep 06 and 07,2014 Vidhu on 9619716146
23 Mumbai-Andheri Sep 13 and 14,2014 Vidhu on 9619716146
24 Mumbai-Andheri Sep 27 and 28,2014 Vidhu on 9619716146
25 New delhi Sep 06 and 07,2014 Vishal on 07838290143, Harneet on 09582158693
26 New delhi Sep 20 and 21,2014 Vishal on 07838290143, Harneet on 09582158693
27 New delhi Sep 27 and 28,2014 Vishal on 07838290143, Harneet on 09582158693
28 Hyderabad Sep 13 and 14,2014 Ruchi on 8297362323
61ICICIdirect Money Manager September 2014
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast Track Foundation Programme on Stock Investing
Schedule for Advance Derivatives Trading Strategies Sr.No
City Dates For More Information & Registration call:
Schedule for Technical Analysis Sr.No
City Dates For More Information & Registration call:
Sr.No
City Dates For More Information & Registration call:
Schedule for Fast Track Technical Analysis
Contact us
Email:
Send us an email at [email protected] mention the name, date and venue of the programme you have
attended or wish to attend, for faster resolution of your queries.
SMS:
SMS EDU to 5676766 for more details
29 Pune Sep 27 and 28,2014 Kusmakar on 7875442311
30 Pune Sep 13 and 14,2014 Kusmakar on 7875442311
31 New delhi Sep 13 and 14,2014 Vishal on 07838290143, Harneet on 09582158693
32 Chennai Sep 13 and 14,2014 Manivannan on 9742273109
33 Chennai Sep 20 and 21,2014 Manivannan on 9742273109
34 Nagpur Sep 13 and 14,2014 Kusmakar on 7875442311
35 Bhopal Sep 07,2014 Kusmakar on 7875442311
36 Ahmedabad Sep 21,2014 Yogesh on 8238053563
37 Gurgaon Sep 21,2014 Vishal on 07838290143
38 Jalandhar Sep 07,2014 Vishal on 07838290143
39 Bikaner Sep 07,2014 Vishal on 07838290143
40 Jaipur Sep 07,2014 Vishal on 07838290143
41 Ludhiana Sep 14,2014 Vishal on 07838290143
42 Salem Sep 21,2014 Manivannan on 9742273109
43 Vapi Sep 14,2014 Yogesh on 8238053563
46 Ahmedabad Sep 07 ,2014 Yogesh on 8238053563
47 Jamshedpur Sep 21,2014 Sumit on 8017516187
48 Ghaziabad Sep 21,2014 Harneet on 09582158693
49 Ajmer Sep 14,2014 Vishal on 07838290143
44 New delhi Sep 13 and 14,2014 Vishal on 07838290143, Harneet on 09582158693
45 Hyderabad Sep 27 and 28,2014 Ruchi on 8297362323
50 Mumbai-Chembur Sep 27 and 28,2014 Manish on 8451057943
51 Hyderabad Sep 06 and 07,2014 Ruchi on 8297362323
52 New delhi Sep 20 and 21,2014 Vishal on 07838290143, Harneet on 09582158693
53 Pune Sep 06 and 07,2014 Kusmakar on 7875442311
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