Wealthwise. The Stock Market Performance During April May, 2017

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1 Registered - R.N.I. No.: MAHENG/2007/19802 Postal Regd. No.: MCN/72/ Posted at Mumbai Patrika Channel Sorting Office, GPO, Mumbai on 9th & 10th of every month. May, 2017 Volume 11, Issue 5 Price ` 2 A Monthly Publication from Wiseinvest Advisors Private Limited Inside What Kind Of Fund One Should Invest Now? Here's What Can Hold You Back From Being A Successful Investor Performance Of Select Funds Dilemmas Investors Face In A Current Market Like Situation It's Time To Embrace Financial Planning Wealthwise Pg No. Wealthwise is a monthly publication brought to you by Wiseinvest Advisors, which is a quality investment advisory firm that specializes in mutual funds. Our CEO, Hemant Rustagi, is a well known personal finance expert. He brings with him an experience of more than 25 years in this field. He regularly writes articles for major national dailies and business magazines as well as appears as a personal finance expert on many investments related TV shows. Besides, our team of advisors has professionals who have spent years in the mutual fund industry. In the last twelve years, thousands of our clients have benefitted from our quality advice and have made mutual funds as the mainstay of their portfolio. You can benefit too from our expertise for your existing as well as new investments. All you need to do is to just call up any of the offices or your requirements at information@wiseinvestadvisors.com and our professional advisors will do the rest Dear Investor, The stock market did well in the month of April The mid and small cap stocks out-performed their large cap counterparts. Considering that the market has had such a big run up in the last few months, bouts of volatility can't be ruled out from time to time. However, the stock market is expected to do well over the next few years on account of high optimism and significant improvement in underlying conditions. The economy after demonetization has bounced back significantly. Moreover, the introduction of GST from July 2017 would immensely benefit the listed companies in the organized sector. It is really heartening to see a remarkable change in the level of retail participation in the market through mutual funds, especially by way of SIP. AMFI's latest data shows that the industry collected ` 44,000 crore in FY through 1.35 crore SIP accounts. The average investment through SIP has increased to ` 3200 from ` 2,500 in March Besides, FIIs flows have also been very robust over the last few months and are likely to remain so going forward. On the international front, many economies are bouncing back and liquidity conditions are improving. The results of the first round of the French elections were positive for the markets. The India : Vision, Strategy and Action Agenda has envisaged new India in which all citizens will have houses with toilets, two-wheelers or cars, power, air conditioners and digital connectivity. It also visualizes a fully literate society with universal access to healthcare. It envisions that per-capita income will increase three fold to ` 3.14 lacs from ` 1.06 lacs in The RBI kept its Repo rate at 6.25 percent for a third consecutive policy meeting as it continues to guard against any potential flare-up in inflation and uncertain global environment. However, the central bank announced that banks can start to invest in REITs which augurs well for both banks and real estate developers. While banks will benefit by way of having an additional asset class and liquidity, real estate developers will have access to capital at lower cost and enjoy additional liquidity. For investors looking to invest in debt funds, short term and those following accrual strategy would be ideal in the present conditions. For equity funds investors, a combination of a disciplined investment approach and careful selection of funds would ensure that they benefit from the true potential of the stock market. Warm regards, Hemant Rustagi Editor Address to be affixed here The Stock Market Performance During April Indices 3rd 28th Change April April in (%) Sensex 29, , MIDCAP 14, , SMLCAP 14, , BSE-100 9, , BSE-200 4, , BSE , ,

2 May 2017 Page No. 2 What Kind Of Fund One Should Invest Now? Here is the Transcript of our CEO s chat on moneycontrol.com Hi I want to invest in mutual funds but I am confused as I know very little about mutual funds - my budget for investment is Answer : One of the advantages of investing in mutual funds is that they offer a variety of funds to suit the needs to investors with different risk profile and time horizons. Besides, the money is managed by full time professionals and there are other advantages like flexibility to rebalance, tax efficiency and transparency. However, to get the best from them, you must choose the right fund to suit your time horizon. Assuming that you intend to invest for longterm to build a corpus for your important goals, you can invest in well diversified equity funds like Kotak Select Focus, ICICI Pru Value Discovery fund and HDFC Mid-Cap Opportunity fund. A portfolio like this will ensure that you have a balanced allocation to different segments of the market. Can I stop purchasing ELSS SIP if market falls down. What about my money already invested? Answer : The reasons why one invests thru SIP is to avoid timing the market and benefit from the volatility in the market thru averaging. If you have chosen the right fund, you must continue investing thru ups and downs of the market. In fact, investing during market downturns will bring your average cost down and allow you to benefit immensely in the long run. Sir I want to start SIP. How I start with 2000 pm? Answer : Investing thru SIP brings in a discipline in your investment process. Therefore, you have chosen the right strategy to build your portfolio. The key, however, is to align your investments to your goals i.e. short, medium and long-term ones. If you intend to invest for the long-term, I have already named a few funds that will suit your needs. However, you must stay committed to your time horizon thru volatile periods. I want to invest 15 lakh in Small Cap mutual funds. Is DSP Blackrock Microcap fund a good fund? Answer : Investing in small cap funds in the right proportion can do wonders to your portfolio returns over the long-term. However, you should invest in them only if you have already built a decent size of portfolio and gained enough experience to understand that stocks in this segment are more volatile then rest of the market. The fund that you mentioned is a quality fund but it doesn`t accept fresh subscriptions currently. You can consider DSPBR Small and Mid-Cap fund. Hello Mr. Rustagi, Can I invest lumsum amount in Reliance Balance fund and Kotak Balance fund for next 3years? Answer : For a time horizon of 3 years, balanced funds are a good option. Both the funds mentioned by you have been performing consistently well. You can invest in both of them. We see Mid Cap and Small Caps are rising every day now. Should we buy Midcap and Small Cap MFs at this point? Answer : As I have mentioned already, it makes sense to invest in funds investing in these two segments but the key is to ensure that you understand the attendant risks and have exposure in the right proportion. In other words, multi-cap funds that have a bias towards large cap stocks should be the mainstay of your portfolio and mid & small cap funds should be in the proportion of percent. It is true that these funds have been performing well but if you make regular investments, there shouldn`t be any worry about the volatility. GM Hemant, I have invested in below 06 funds from last 2 years for INR 5000 each/month. Kindly suggest if below portfolio is good for long term (10-15 Yrs) horizon. Birla Sun Life Frontline Equity Fund (G) Franklin India Smaller Companies Fund (G) HDFC Balanced Fund (G) HDFC Mid-Cap Opportunities Fund (G) SBI Blue Chip Fund (G) Tata Balanced Fund - Regular Plan (G). Answer : In terms of selection of funds, you have done well. However, considering that your time horizon is years, it may be a good decision to invest the entire sum in well diversified equity funds as your debt investments for short and medium term goals would take care of asset allocation. You can consider exiting from Tata balanced fund and reinvest that amount in Reliance Top 200 fund. Hi how can I get regular income from mf? Answer : It is quite challenging to get regular income from mutual funds as they offer market linked products and these are prone to ups and down due to different factors. If you do not intend to rely completely on mutual funds for generating regular income for you, you can consider a combination of equity savings (40%), balanced advantage (30%) and balanced funds (30%). If I invest in mutual fund through SIP and I need money can I withdraw it immediately? Answer : One of the great advantages of investing in mutual funds is that they provide liquidity any time. While you can withdraw your money invested thru SIP, there are likely to be implication by way of short term capital gains and exit loads. Therefore, it is very important to plan your SIP investments to avoid such a situation. Also, creating an emergency fund helps in tackling such situations. Hi Sir I was doing an SIP in Axis Long Term equity Fund- ELSS, but as I have taken home loan I don't need any ELSS fund. I want to switch to Large Cap, Small Cap. What do you suggest? Should I switch to some Large Cap or Small Cap or continue in ELSS? Answer : Money invested in ELSS can be withdrawn only after completing the mandatory lock-in period of three years. However, you can divert fresh investments as per your requirements.

3 Page No. 3 May 2017 Here's What Can Hold You Back From Being A Successful Investor All of us want our investments to grow manifold. However, very few can claim to be happy with their efforts as an investor. That's because many investors either don't plan their investments or fail to implement their plan effectively and that compels them to make haphazard decisions. Then, there are those investors who allow their emotions to drive their investment decisions. Needless to say, they invariably fail to make their money work for them. Therefore, the moot question is how can investors achieve investment success on a consistent basis. It is important for every investor to remember that although investing money successfully may sound like a complex process, in reality it is a simple process that requires one to follow a disciplined approach. In fact, investors falter time and again either because of certain bad investing habits or following certain misconceptions that do not allow them to achieve investment success on a consistent basis. Here's is what comes in their way and how they need to avoid these tricky situations: strategy to make higher returns. Hence, they wait on the sidelines for a steep fall so that they can invest at the lowest levels and book profits when market moves up. As a result, they miss out on a number of opportunities to make handsome returns. A case in point is a rise of 500 points in Sensex a day after announcement of recent state election results. Only those who were already invested benefitted from that. In fact, those who have been waiting on the sidelines for a fall may feel compelled now to invest at a much higher level than if they had followed a disciplined process of investing regularly. Lack of efforts to become financially aware A sound investment advice can help investors in getting the best results from their investments. Therefore, it pays to take help of a qualified investment advisor. However, having an advisor doesn't mean that one should not make efforts to educate himself/herself about various aspects of investment process. A well informed investor can keep advisor on his toes and ensure that investment decisions are driven by keeping his/her interest in mind. Delay investing Many investors delay the start of their investment process either because of lack of knowledge or believing that they do not have enough money to start Fortunately, there is so much information available in print and electronic media as well as on internet that can make investors aware enough to ensure that their head-earned money is put to work in the right manner. investing. The fact is that one can start investing with as little as `1000 and invest in well diversified investment vehicle like mutual fund wherein professional fund managers manage their money. In fact, delaying investment process can cost them dearly. For example, if a 30 year old investor makes an investment of `5000 per month thru SIP in equity funds till retirement i.e. for 30 years, he can expect to create a corpus of `1.77 crore (at an assumed annualized returns of 12 %). However, if the process is delayed by 10 years i.e. money is invested for 20 years, the expected corpus would be around ` 50 lacs. Timing the market It is a proven fact that there is not right or wrong time to start investing. However, many investors still believe that timing the market is the best Failing to act There are investors who keep thinking about making investments but fail to take any action. Every time investors miss an opportunity to earn handsome returns, they vow to start investing so that they don't miss out on the next such opportunity. However, they continue to wait on the sidelines and pay a heavy price. Then there are investors who invest majorly in traditional options like bank deposits and small savings schemes but often complain about lower returns. When they are advised to invest in market linked products offered by mutual funds, they sound convinced but often fail to move their investments into mutual fund products. Investors will do well to understand the pros and cons of investing in different investment options and act by investing in what suits them the best and can give them positive real of return overtime.

4 May 2017 Page No. 4 Performance Of Select Funds Data as on April 28, 2017 EQUITY FUNDS Diversified Fund Launch 6-Mth* 1-Year* 2-Year** 3-Year** 5-Year** 7-Year**10-Year** 15-Year** Birla Sun Life Frontline Equity Fund Aug Birla Sun Life Equity Fund Aug Canara Robeco Equity Diversified Fund Sep Franklin India Prima Plus Fund Sep HDFC Equity Fund Jan HDFC Top 200 Fund Sep ICICI Prudential Dynamic Plan Oct ICICI Prudential Focused Bluechip May Kotak 50 Regular Plan Dec Kotak Select Focus Fund Regular Plan Sep L&T Equity Fund May Motilal Oswal MOSt Focused Multicap Apr Reliance Top 200 Fund - Retail Plan Aug Invesco India Contra Fund Apr SBI Bluechip Fund Feb UTI Opportunities Fund Jul Sector, Specialty & Tax Saving Canara Robeco FORCE Fund Sep ICICI Prudential Infrastructure Fund Aug Reliance Banking Fund May Reliance Pharma Fund Jun Axis Long Term Equity Fund Dec HDFC Taxsaver Fund Mar IDFC Tax Advantage (ELSS) Fund Dec Reliance Tax Saver (ELSS) Fund Sep Midcap & Smallcap Canara Robeco Emerging Equities Mar DSP BlackRock Small and Mid Cap Nov Franklin India Smaller Companies Fund Jan HDFC Mid-Cap Opportunities Fund Jun ICICI Prudential Value Discovery Fund Aug IDFC Premier Equity Fund - Regular Sep Motilal Oswal MOSt Focused Midcap 30 Feb SBI Magnum Global Fund Sep L&T India Value Fund Jan Reliance Equity Opportunities Fund Mar HYBRID Equity, Debt Oriented & Multi Asset Class Birla Sun Life Balanced '95 Fund Feb Canara Robeco Balance Fund Feb DSP BlackRock Balanced Fund May HDFC Balanced Fund Sep HDFC Prudence Fund Feb ICICI Prudential Balanced Advantage Dec ICICI Prudential Balanced Fund Nov Kotak Balance Regular Plan Nov L&T India Prudence Fund Jan Reliance Regular Savings Fund - Bal. Jun SBI Magnum Balanced Fund Dec Tata Balanced Fund - Regular Plan Oct Axis Triple Advantage Fund Aug Franklin India Dynamic PE Ratio Oct Kotak Equity Savings Fund Oct Arbitrage Funds Funds Launch1 Week*1 Mth* 3 Mths* 6 Mths* 1 Year* 2 year** 3 Year** 5 Year** ICICI Prudential Equity Arbitrage Fund Dec IDFC Arbitrage Plus Fund Jun Kotak Equity Arbitrage Fund Sep Invesco India Arbitrage Fund Apr DEBT Income, Short Term & Ultra Short Term Funds Funds Launch 1 Week* 1 Month* 3 Months*6 Months* 1 Year* 2 year** 3 Year** Birla Sun Life Short Term Opp. Fund May Birla Sun Life Dynamic Bond Fund Sep Birla Sun Life Medium Term Plan Mar HDFC Corporate Debt Opp. Fund Mar Kotak Income Opp. Fund May Invesco India Short Term Fund Mar Invesco India Bank Debt Fund Dec Reliance Regular Savings Fund-Debt Jun SBI Magnum Income Fund Nov L&T Income Opportunities Fund Oct BNP Paribas Flexi Debt Fund Sep BNP Paribas Money Plus Fund Oct Kotak Treasury Advantage Fund Aug L&T Ultra Short Term Fund Apr L&T Ultra Short Term Fund Apr Kotak Banking and PSU Debt Fund Dec *Absolute ** Annualised. Past performance may or may not be sustained in future. Dividends declared by equity and equity-oriented funds during the month of April 2017 Scheme name Date Dividend declared in ` Per unit Axis Equity Saver Fund - Regular (QD) ICICI Pru Balanced Fund (MD) Invesco India Contra (D) Kotak Equity Savings Fund - Regular (MD) Tata Equity P/E Fund (D) (TO-A 5%) Mirae Asset Prudence Fund - RP (D) Tata Balanced Fund - Regular (D) Tata Balanced Fund - Regular (MD) ICICI Pru Dynamic Plan (D) ICICI Pru Top 100 Fund (D) ICICI Pru Equity-Arbitrage- RP (D) Kotak Balance - Regular Plan (D) L&T India Prudence Fund (D) Birla SL Enhanced Arbitrage-RP (D) Birla SL (I) Opportunities (D) ICICI Pru Growth Fund-Sr1-RP (D) ICICI Pru Growth Fund-Sr2-RP (D) ICICI Pru Growth Fund-Sr3-RP (D) ICICI Pru Value Fund - Sr 1-RP (D) ICICI Pru Value Fund - Sr 2-RP (D) ICICI Pru Value Fund - Sr 3-RP (D) ICICI Pru Value Fund - Sr 4-RP (D) ICICI Pru Value Fund - Sr 5-RP (D) IDFC Dynamic Equity Fund-Reg (D) L&T Arbitrage Oppor. - Regular (MD) SBI Arbitrage Oppor. Fund (D) SBI Emerging Busi (D) Please check whether you have received dividend for the fund/s that you may have in your portfolio out of this list. In case, you do not maintain any portfolio statement, Wiseinvest Advisors can do that for you free of charge. Once we have the details, we would send your updated statement every month. You can contact our corporate office or our branch to avail of this free service. Mutual funds, like securities investments, are subject to market and other risks. As with any investments in securities, the NAV of units can go up or down depending on the factors and forces affecting capital markets.

5 Page No. 5 May 2017 Dilemmas Investors Face In A Current Market Like Situation The stock market has been performing well for some time now. While the general feeling is that investors usually make haphazard decisions during market downturns, the fact is that even rising markets can test the resolve of investors. Their not-so-pleasant experiences of the past of seeing their gains vanish after a good run in the market often makes them nervous after future prospects of the market. Hence, it is important for investors to keep their focus on their goals and avoid making abrupt changes to their portfolio and investment strategy. Here are some of the dilemmas faced by investors and how these need to tackled by them: Why not exit now and re-enter when the markets go down? Although there is always a possibility of a correction in the market, it pays to Do I need to rebalance the portfolio within an asset class? It is important to ensure that one has a balanced portfolio in terms of exposure to different segments of the stock market. It is quite common to see investors chasing short term performance and investing in top performing funds. It is quite likely that someone following this strategy may have built a portfolio having very high exposure to mid and small cap funds. Although these segments have the potential to improve overall portfolio returns, it is equally important to know the attendant risks. If you have a portfolio that has a bias towards these two segments, it would be prudent to rebalance the portfolio by pruning the exposure to these two segments and increasing exposure to either large-cap funds or large-cap oriented multi-cap funds. Remember, equity by itself is an aggressive asset class and hence it is not always a great idea to make the portfolio very aggressive. stay invested as investors who stay committed to their defined time horizon get handsome rewards in the long run. That's because over the longer term volatility tends to work itself out due to offsetting of bad years against good years. Timing the market can be a futile exercise as it is very difficult, if not impossible, to predict short term market movements with perfection. Have I missed the opportunity? When stock market does well, it is quite common for investors to have that missed out feeling, especially for those who have been wanting to start investing in equity funds but didn't do enough to start investing. Needless to say, it becomes difficult for them to make a decision in the midst of a rising Will a goal based investment approach help me stay invested? Most investors find it difficult to handle dizzy heights of the market because they do not invest with defined goals and time horizon. If you react abruptly, you may end up exiting too early and miss out on gains from a rising market. That's why, it always helps to follow a goal based investment strategy as it ensures that only long-term money is invested in equities. Therefore, if you have been following a goal based investment strategy, you must continue your investment process irrespective of the market condition. If you are one of those investors who didn't start investing by aligning their investments with your goals, you must do it now as it will give you a clear indication of what to do with your equity fund investments. market. If you are one of those investors, you must remember that investing in equities is a process and not a one-time activity. Therefore, the right strategy would be to follow a disciplined investment approach as it invariably allows you to get the best from your equity fund investments by allowing you to benefit from "Rupee cost Averaging". Should I begin investing thru SIP at the current level? If you decide to invest thru SIP, there is no need to allow the current market level to come in the way of starting the process. The very purpose of investing thru SIP is to avoid timing the market and benefit from "averaging" by investing at different market levels. Hence, if you intend to invest for longterm now in a disciplined manner, go-ahead and do so straightaway.

6 Registered - R.N.I. No.: MAHENG/2007/19802 Postal Regd. No.: MCN/72/ Posted at Mumbai Patrika Channel Sorting Office, GPO, Mumbai on 9th & 10th of every month. May 2017 Page No. 6 Date of Publication: 5th of every month. It's Time To Embrace Financial Planning Financial planning is the process of making informed money management decisions to secure your future. Financial planning helps to achieve financial goals and meet personal priorities, taking into consideration available resources, responsibilities, risk appetite and lifestyle. A financial plan lays down the allocation of savings across various asset classes to achieve an appropriate risk-reward balance. Do you need a financial plan? All individuals and families regardless of age or income need a financial plan so that they know that they are saving enough for retirement, education funds or a new home. A financial plan gives you the discipline necessary to save money. A qualified and experienced financial planner can help you plan your investments so that you get the best returns for your risk level by spreading your investments into the different asset classes as well as investment options. Wiseinvest Advisors is a SEBI registered Investment Adviser (Registration No. INA ). To maintain an arm's length distance between our Advisory and Execution services, we have set up a separate department named Investment Adviser Department (IAD). We can help you achieve your goals by providing comprehensive fee based financial planning and making recommendations of financial products that suit your requirements the most. Our mission is to help you overcome uncertainty and take control of your finances and move confidently towards achieving your goals. The basis of fee calculation is the complexity of the engagement. Remember, financial planning doesn't have to be an intimidating process. We have qualified and experienced advisers who can make financial planning a simple and fruitful process for you. Our process: Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: The first meeting provides an opportunity for you and us to get to know each other. You also get an opportunity to decide whether we have the capability to fulfill all your requirements. Establish a clear understanding of your goals and objectives as well as analyze your current situation. We have a discussion to determine what you want to achieve with your wealth. Determine your risk profile through discussion and a psychometric test. This enable us to find out how much risk you would like to and need to take to achieve your goals. Develop your unique financial plan. This will also include the recommended asset allocation and various investment options that suit your needs. While doing this, we also analyze your current investments. We present a final version of your customized financial plan so that you're positioned to move forward. Implement the investment plan. There would be no obligation on you to choose Wiseinvest Advisors to implement the recommendations made in the financial plan. We'll meet regularly to proactively address changes in your circumstances, as well as those in the markets, economy and taxes. If you are keen to start the process of financial planning, you can get in touch with Investment Advisers at our Andheri office. WISEINVEST ADVISORS PVT. LTD. (CIN No.: U74140MH2003PTC142921) Corporate Office th Andheri : 602, 6 Floor, Sri Krishna Complex, Opposite Laxmi Industrial Estate, New Link Road, Andheri (W), Mumbai Tel : / Fax : information@wiseinvestadvisors.com / information3@wiseinvestadvisors.com Branch th Thane : 502, 5 Floor, Pratibha Premises, Near Teen Petrol Pump, Panchpakhadi, Thane West Tel : / Fax : information1@wiseinvestadvisors.com DISCLAIMER: All reasonable care has been taken to ensure that the information contained herein is neither misleading nor untrue at the time of publication, but we make no representation as to its accuracy or completeness. All information is provided without any liability whatsoever on the part of Wiseinvest Advisors Private Limited. RISK FACTORS: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the scheme's objectives will be achieved. As with any investments in securities, the NAV of units can go up or down depending on the factors and forces affecting capital markets. Please read the offer document before investing. Edited, Published and Printed by Mr. Hemant Kumar Rustagi, on behalf of Wiseinvest Advisors Pvt. Ltd. from 602, 6th Floor, Sri Krishna Complex, Opp. Laxmi Ind. Estate, New Link Road, Andheri West, Mumbai at AdvantEdge Offset Printers, K-7 Rizvi Park, S V Road, Santacruz (W), Mumbai Design by Mosaic Design. Copyright reserved All rights reserved in favour of Wiseinvest Advisors Pvt. Ltd.