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February 19, 2015
Sharekhan’s top SIP fund picks
Why SIP?
Š SIP over a longer period can reduce the cost per unit
Š Disciplined investing
Being disciplined is a key to investing success. Through
a systematic investment plan (SIP) you can choose to
invest fixed amounts in a mutual fund scheme which
could be as low as Rs500 at regular intervals (like every
month) for a chosen period of time (say for a year).
The amount you invest every month or every quarter
will be used to purchase units of a SIP of a mutual
fund scheme. Small amounts set aside every month
towards well performing SIP mutual fund schemes can
make an investor achieve his financial goals in future.
Š Invest in instruments that beat Inflation
Equity investing can help you combat rising inflation
that diminishes the value of your savings.
Example (see table below): An investment of Rs24,000
in a mutual fund resulted in a value of Rs25,200 after
12 months; whereas a SIP mutual fund investment of
Rs2,000 per month grew to Rs27,095 after the same
period.
Š Fewer efforts to opt for SIP
The procedure to invest through SIP is easy. All you
need to do is give post-dated cheques or opt for an
auto debit of a specific amount towards SIP from your
bank account. SIP plans are completely flexible. One
can even start a SIP just by placing an order by logging
into Sharekhan’s online mutual fund page. One can
invest for a minimum of six months or for a long tenure.
Also, there is an option of choosing the investment
interval which could be monthly or quarterly.
Illustrative example
Price per unit
One-time investment
SIP
Month
(Rs)
Amount
invested (Rs)
Units
purchased
Amount
invested (Rs)
Units
purchased
Jan-10
20
24,000
1,200
2,000
100.0
Feb-10
18
--
2,000
111.1
Mar-10
14
--
2,000
142.9
Apr-10
22
--
2,000
90.9
May-10
26
--
2,000
76.9
Jun-10
20
--
2,000
100.0
Jul-10
18
--
2,000
111.1
Aug-10
17
--
2,000
117.7
Sep-10
15
--
2,000
133.3
Oct-10
18
--
2,000
111.1
Nov-10
20
--
2,000
100.0
Dec-10
21
--
2,000
95.2
Total investment (Rs)
Average price (Rs)
Total units purchased
Value of investment after
12 months (Rs)
24,000
24,000
20
19
1,200
1,290
25,200
27,095
*NAV as on the 1st of every month. These are assumed NAVs in a volatile market.
For Private Circulation only
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Mutual Funds
mutual gains
Data as on February 11, 2015
SIP investment (monthly Rs1,000)*
1 year
Total amount invested (Rs)
Funds would have grown to
3 years
12,000
NAV
5 years
36,000
Present Compounded
value
annualised
(Rs)
return (%)
60,000
Present Compounded
value
annualised
(Rs)
return (%)
Present Compounded
value
annualised
(Rs)
return (%)
Large-cap funds
Reliance Top 200 Fund
24.2
14,607.4
23.7
57,888.5
17.7
105,279.6
12.1
Birla Sun Life Top 100 Fund
43.6
14,234.2
20.3
56,997.3
17.0
105,213.1
12.1
SBI Bluechip Fund
27.7
14,479.8
22.6
56,834.4
16.9
104,214.9
11.9
165.0
14,299.2
20.9
56,485.8
16.7
103,520.2
11.7
49.5
14,288.7
20.8
53,855.0
14.8
96,711.9
10.2
28,534.0 13,476.6
12.94
49,931.6
11.70
88,258.4
8.11
Birla Sun Life Frontline Equity Fund - Reg
UTI Top 100 Fund
BSE Sensex
Multi-cap funds
Franklin India High Growth Companies Fund
29.3
15,751.6
34.3
67,581.4
24.1 125,073.7
16.1
ICICI Prudential Value Discovery Fund
112.5
15,057.2
27.9
65,663.0
22.8 123,767.4
15.8
SBI Magnum Global Fund 94
131.9
15,603.4
32.9
65,327.4
22.6 123,239.0
15.7
23.1
14,929.1
26.7
59,731.5
18.9 108,852.1
12.9
126.9
14,429.4
22.1
56,683.2
16.8 104,524.9
11.9
11,132.1 13,892.8
16.60
51,619.4
Kotak Select Focus Fund
Tata Ethical Fund - Plan A
BSE 500
12.96
89,880.3
8.51
Mid-cap funds
SBI Small & Midcap Fund
29.4
16,961.5
45.5
75,672.5
29.0 139,269.6
18.6
Canara Robeco Emerging Equities
56.8
16,313.2
38.0
72,331.1
26.6 135,814.3
17.9
UTI Mid Cap Fund
76.4
15,478.3
31.7
71,094.3
26.2 130,719.6
17.1
Tata Mid Cap Growth Fund - Plan A
98.7
15,878.4
35.4
68,249.5
24.5 124,554.3
16.0
SBI Magnum Midcap Fund
54.2
15,048.7
27.8
67,588.1
24.1 125,741.4
16.2
10,543.1 14,440.9
21.43
55,174.2
BSE Midcap
15.54
92,660.2
9.18
Tax saving funds
Reliance Tax Saver (ELSS) Fund
49.0
16,035.3
35.5
69,390.1
24.9 128,253.6
16.6
Axis Long Term Equity Fund
30.0
15,084.7
28.1
65,135.9
22.5 125,211.1
16.1
Religare Invesco Tax Plan
34.9
14,998.6
26.4
60,169.6
19.0 109,742.0
13.0
DSP BlackRock Tax Saver Fund
31.8
14,378.6
21.6
57,612.3
17.5 104,579.0
11.9
HSBC Tax Saver Equity Fund
27.4
14,261.7
20.6
56,938.7
17.0 103,840.3
11.8
8,627.4 13,624.4
14.24
50,224.4
CNX Nifty
(*invested on 2nd day of every month)
We will be showing compounded annualised returns for three years and five years from now on.
Sharekhan
2
February 19, 2015
11.92
88,837.2
8.25
Mutual Funds
mutual gains
Tata Mid-Cap Growth Fund
Key features
Fact sheet
To provide income distribution and/or capital gains over the
medium to long term. Investments would be focused on midcap stocks.
• Fund category
Mid-cap fund category
• Launch date
July 01, 1994
• Minimum investment Rs5,000
Scheme performance
• Load structure
Entry load is nil/if redeemed bet. 0
days to 540 days, exit load is 1%
• Fund manager
Atul Bhole
• Latest NAV (gr.)
Rs100.5
• Latest NAV (div.)
Rs35.3
• Expense ratio (%)
2.79 (Feb 13, 2015 )
• AUM
Rs332 crore (Dec 31, 2014)
• Benchmark index
CNX Mid-cap
Holding by market cap
Particular
%
CNX Nifty
2.2
CNX Mid-cap
25.5
CNX Small-cap
Returns (point to point) < 1 yr: Absolute, >1yr: CAGR
Style box analysis
0.8
CNX Mid-cap
25.5
Top 5 holdings
17.3
Top 10 holdings
30.8
Top 10 stock holdings (total no. of scrips: 59)
Large-cap
Company name
Mid-cap
Small-cap
Growth blend value
Top 5 sectors
% of net assets
Eicher Motors
4.11
WABCO India
3.78
Yes Bank
3.26
Sadbhav Engineering
3.23
Bharat Electronics
2.94
Sundaram Finance
2.87
Shree Cement
2.76
Glenmark Pharmaceuticals
2.73
Federal Bank
2.69
AIA Engineering
2.44
Scheme analysis
With more than twenty years of experience, the fund has been an outstanding performer in comparison with both the benchmark
index, the CNX Mid-cap Index, and the category average. Despite volatility and uncertainties in the market, the fund performed
better than its peers, giving returns of 95.7% over one year as against that of 69.4% and 88.3% given by the benchmark index and
the category average respectively in the same period. Over a longer time horizon of three years, the fund has grown at 33.7%
compounded annual growth rate while the BSE Mid-cap Index and the category average have grown at 19% and 31.7% respectively.
In recent months, the fund has garnered returns of 32.9% compared with 19.5% and 28.8% returns posted by the benchmark index
and the mid-cap fund category average.
Currently, the fund has about 59 stocks in its portfolio. It has nearly 97% of its net assets exposed to equities while the rest is
exposed to the other money-market instruments. The top ten stocks form about 30.8% of the portfolio. The fund has invested
nearly 11.4% of its funds in the auto sector followed by the banking and construction material sectors with 9.7% and 7.7%
allocations respectively.
Sharekhan
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February 19, 2015
Mutual Funds
mutual gains
Disclaimer
Nothing in this report constitutes investment advice or tax advice in any form and these products may or may not be suitable for you. Investors should make independent judgment taking into account specific investment objectives,
financial situations and needs before taking any investment decision. Mutual fund investments are subject to market risk. Please read the offer document carefully before investing. Past performance may or may not be sustained in the
future.
This document has been prepared by Sharekhan Ltd. (SHAREKHAN) and is intended for use only by the person or entity to which it is addressed to. This document may contain confidential and/or privileged material and is not for any type
of circulation and any review, retransmission, or any other use is strictly prohibited. This document is subject to changes without prior notice. This document does not constitute an offer to sell or solicitation for the purchase or sale of
any financial instrument or as an official confirmation of any transaction. Though disseminated to all customers who are due to receive the same, not all customers may receive this report at the same time. SHAREKHAN will not treat
recipients as customers by virtue of their receiving this report.
The information contained herein is obtained from publicly available data or other sources believed to be reliable and SHAREKHAN has not independently verified the accuracy and completeness of the said data and hence it should not
be relied upon as such. While we would endeavour to update the information herein on a reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees (“SHAREKHAN and affiliates”) are under
no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. Sharekhan provides non-advisory/order execution services
for Mutual Funds. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Mutual fund investments are subject to market risk. Please read the offer
document carefully before investing. Also, Recipients of this report should also be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The user assumes the entire
risk of any use made of this information. Each recipient of this document should make such investigations as he deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do
not undertake to advise you as to any change of our views. Affiliates of SHAREKHAN may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject SHAREKHAN and affiliates to any registration or licencing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all
jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Either SHAREKHAN or its affiliates or its directors or employees/
representatives/clients or their relatives may have position(s), make market, act as principal or engage in transactions of purchase or sell of securities, from time to time or may be materially interested in any of the securities or related
securities referred to in this report and they may have used the information set forth herein before publication. SHAREKHAN may from time to time solicit from, or perform investment banking, or other services for, any company
mentioned herein. Without limiting any of the foregoing, in no event shall SHAREKHAN, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any
kind. The analyst certifies that all of the views expressed in this document accurately reflect his or her personal views about the subject company or companies and its or their securities and do not necessarily reflect those of SHAREKHAN.
Further, no part of the analyst’s compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this document.”
Compliance Officer: Ms. Namita Amod Godbole; Tel: 022-6115000; e-mail: [email protected] • Contact: [email protected]
Sharekhan
4
February 19, 2015