Equity Market Overview

Transcription

1 March 2018 Equity Market Overview During the month of February 2018, Sensex and Nifty declined by 4.95% and 4.85% respectively. Global markets witnessed significant volatility in February 2018 largely on the back of rising global yields. Indian markets followed weak global markets. ly, domestic dampeners like announcement of long term capital gains tax on equities, the decision by Indian exchanges to ban overseas trading of Indian derivatives, and the revelation of a major scam at public sector lender Punjab National Bank added to the negativity. Indian benchmark indices underperformed other major global indices such as Nasdaq, Dow Jones and Nikkei. Amongst sectoral indices IT, Metals, FMCG, Healthcare and Auto were outperformers while underperformers were Banks, PSU, Capital goods, Consumer durables, Oil & Gas and Realty indices. During the Budget, the fiscal deficit for FY18 was revised up to 3.5% of GDP in Budget 2018 from the previous target of 3.2% of GDP. The fiscal deficit target for FY19 was set at 3.3% of GDP against the original target of 3%. Allocation in the Budget was more towards Agriculture, Rural, Housing and Infrastructure. During the Monetary Policy meeting, RBI maintained its neutral stance and kept rates on hold. The Monetary Policy Committee s (MPC) statement was more dovish than expected, however underlying hawkishness was more pronounced in the minutes of the MPC released subsequently. GVA projection for FY18 has been marginally toned by 0.1% to 6.6% from 6.7%; while FY19 projection was at 7.2% with risks evenly balanced. The RBI also introduced new norms for NPA classification superseding all existing restructuring arrangements except 5/25 with effect from March 1, The new norms emphasize early recognition of stress, and resolution within 180 days from date of default, failing which the IBC process will be initiated. 10 year bond yields rose by further 30bps, ending the month at 7.73% on account of decline in systematic liquidity and rising global bond yields. IIP growth was at 7.1%YoY in December versus 8.4%YoY in November because of the low base of December (demonetization) month. The robust IIP reading was supported by the manufacturing sector, which grew 8.4%YoY & Capital goods production that rose 16.4%YoY in December While sectors such as motor vehicles, particularly commercial vehicles and pharmaceutical products led the recovery, it was broad-based with 16 out of 23 manufacturing industries registering positive growth. The trade deficit for January 2018 stood at US$16.3bn, up from US$14.8bn in the previous month partially on account of higher oil prices which pushed up the oil import bill. Gold imports slowed in January, and was down 22%YoY. Imports excluding oil and gold rose 24.4%YoY, while total imports rose 26.1%YoY. Export growth at 9.1%YoY though was relatively strong, but down from 12.5% in the previous month. The composite PMI stood at 49.5 in February was down from 52.5 in January with the dip in services activity weighing on it. CPI inflation stood at 5.07% in January 2018, down from 5.2% in the previous month. Core inflation was however unchanged at 5.1%. The softening in inflation was led by lower food prices. Food & Beverage Inflation declined from 4.9%YoY in December 2017 to 4.6% in January Vegetable prices declined 6.3%MoM. On the other end, WPI inflation stood at 2.84% in January 2018, down from 3.58% in the previous month. Core WPI inflation was flat at 2.8%, in contrast to CPI. Crude oil (brent) prices softened and stood at US$64.5/bbl as of end February, down 6.3%MoM. The INR depreciated 2.22% in February 2018 against the dollar owing mainly to rising trade deficit and FPI outflows to close at Rs.65.18/US$.

2 Source: Bloomberg/Internal Research Fixed Income Overview MACRO Economic Data for the month: As on As on Difference 31/01/ /02/ year Gsec 7.43% 7.73% 30 bps 5year Corp bonds 7.80% 8.10% 30 bps 3 months Tbill 6.39% 6.36% -3 bps 3 month Cd 7.25% 7.25% No change Brent Crude $ Inflation CPI 5.21% 5.07% -14 bps INR = USD Highlights of RBI policy on February 07, 2018: The Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 6.00%. The committee, however, maintained its Neutral stance on monetary policy. The RBI estimates inflation range of 5.1%-5.6% in H1 and 4.5%-4.6% in H2 of FY19 with upside risk. The RBI has projected GVA growth of 7.2% for FY The major macro events during the month: Inflation and IIP: CPI inflation in January eased to 5.07% YoY (December: 5.21%) on correction in vegetable prices, Core (ex. food & fuel) inflation Chart showing the movement of the 10 year Gsec yield over the past 3 months 6.60 Dec 2017 Jan 2018 Feb 2018 increased marginally to 5.00% YoY (December: 4.96 %) due to housing inflation. January WPI inflation declined to 2.84% YoY (December: 3.58%) primarily on account of fall in vegetable prices. Core inflation rose to 3.50% YOY (December: 3.17%) due to higher inflation in manufacturing cost of basic metals and minerals. December IIP came at 7.10% YoY (November: 8.4%). Manufacturing, Mining and Electricity were at 8.4%, 1.2% and 4.4% respectively. GDP: GDP for 3QFY18 was 7.2% against revised 6.5% in 2QFY18 indicating continued recovery in economy. Boost in crop production and in construction activity aided the overall GDP. Barring mining all segments contributed to the growth. Growth in construction will augur well for job creation as it shows that the Government efforts in heavy lifting in investment activities in rural areas and the push to affordable housing is finally bearing fruit. Trade Deficit: India Jan 18 trade deficit widened to USD 16.30bn (Dec 17: USD 14.88bn mainly on account of surge in import of petroleum products. Numbers imply Current Account Deficit of around 2.0% of GDP in FY Chart showing the Currency movement during the past 3 months Dec 2017 Jan 2018 Feb The content of the articles in Equity Market Overview & Fixed Income Overview represent the opinions of our Fund Management/Research team. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Information and analysis above are derived from various sources and using methods believed to be reliable, but we do not assume responsibility and liability for any consequence of the investment decision taken by you based on this analysis. Investment decision taken by readers to this article will be at their sole discretion. The purpose of this article is intended to be used as an educational discussion of the issues involved. This is not to be construed as a solicitation to buy or sell securities. Source: Internal Research

3 HOW TO READ FACTSHEET? An employee of the asset management company such as a mutual fund or life insurer, who manages investments of the scheme. He is usually part of a larger team of fund managers and research analysts. Application Amount for Fresh Subscription: This is the minimum investment amount for a new investor in a mutual fund scheme. Minimum Amount: This is the minimum investment amount for an existing investor in a mutual fund scheme. Yield to Maturity: The Yield to Maturity or the YTM is the rate of return anticipated on a bond if held until maturity. YTM is expressed as an annual rate. The YTM factors in the bond's current market price, par value, coupon interest rate and time to maturity. SIP: SIP of systematic investment plan works on the principle of making periodic investments of a fixed sum. It works similar to a recurring bank deposits. For instance, an investor may opt for an SIP that invest Rs. 500 every 15th of the month in an equity fund for a period of three years. NAV: The NAV or the net asset value is the total asset value per unit of the mutual fund after deducting all related and permissible expenses. The NAV is calculated at the end of every business day. It is the value at which the investor enters or exits the mutual fund. A group of securities, usually a market index, whose performance is used as a standard or benchmark to measure investment performance of mutual funds, among other investments. Some typical benchmarks include the Nifty, Sensex, BSE200, BSE500, 10-Year G-Sec. Entry Load: A mutual fund may have a sales charge or load at the time of entry and/or exit to compensate the distributor/agent. Entry load is charged at the time an investor purchases the units of a mutual fund. The entry load is added to the prevailing NAV at the time of investment. For instance, if the NAV is Rs. 100 and the entry load is 1%, the investor will enter the fund at Rs Note: SEBI, vide circular dated June 30, 2009 has abolished entry load and mandated that the upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Exit Load: Exit load is charged at the time an investor redeems the units of a mutual fund. The exit load is deducted from the prevailing NAV at the time of redemption. For instance, if the NAV is Rs. 100 and the exit load is 1%, the redemption price would be Rs. 99 per unit. Modified Duration: Modified duration is the price sensitivity and the percentage change in price for a unit change in yield. Standard Deviation: Standard deviation is a statistical measure of the range of an investment's performance. When a mutual fund has a high standard deviation, its means its range of performance is wide, implying greater volatility. Sharpe Ratio: The Sharpe Ratio, named after its founder, the Nobel Laureate William Sharpe, is a measure of risk-adjusted returns. It is calculated using standard deviation and excess return to determine reward per unit of risk. Beta Ratio: Beta is a measure of an investment's volatility vis-a-vis the market. Beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 implies that the security's price will be more volatile than the market. AUM: AUM or assets under management refers to the recent / updated cumulative market value of investments managed by a mutual fund or any investment firm. Holdings: The holdings or the portfolio is a mutual fund's latest or updated reported statement of investments / securities. These are usually displayed in terms of percentage to net assets or the rupee value or both. The objective is to give investors an idea of where their money is being invested by the fund manager. Nature of : The investment objective and underlying investments determine the nature of the mutual fund scheme. For instance, a mutual fund that aims at generating capital appreciation by investing in stock markets is an equity fund or growth fund. Likewise, a mutual fund that aims at capital preservation by investing in debt markets is a debt fund or income fund. Each of these categories may have sub-categories. Rating Profile: Mutual funds invest in securities after evaluating their creditworthiness as disclosed by the ratings. A depiction of the mutual fund in various investments based on their ratings becomes the rating profile of the fund. Typically, this is a feature of debt funds. Total Expense Ratio: The Expenses of a mutual fund include management fees and all the fees associated with the fund's daily operations. Expense Ratio refers to the annual percentage of fund's assets that is paid out in expenses. Average Maturity: The average time of maturity of all the debt securities held in a portfolio. It states the weighted average maturity of the assets in the portfolio. Portfolio Yield: The income return on an investment. This refers to the interest or dividends received from a security and are usually expressed annually as a percentage based on the investment's cost, its current market value or its face value. Risk Free Return: The theoretical rate of return attributed to an investment with zero risk. The risk-free rate represents the interest on an investor's money that he or she would expect from an absolutely risk-free investment over a specified period of time. Tracking Error: The divergence between the price behavior of a position or portfolio and the price behavior of a benchmark. Portfolio Turnover Ratio: This is a measure of the fund's trading activity, which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. 3

4 IDBI Equity Advantage Fund (IEAF) (An open-ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) Features The will seek to invest predominantly in a diversified portfolio of equity and equity related instruments with the objective to provide investors with opportunities for capital appreciation and income along with the benefit of income-tax deduction (under section 80C of the Income-tax Act, 1961) on their investments. Investments in this scheme would be subject to a statutory lock-in of 3 years from the date of allotment to be eligible for income-tax benefits under Section 80C. There can be no assurance that the investment objective under the scheme will be realized. Mr. V. Balasubramanian 10th September, 2013 S&P BSE 200 Index (TRI) Total Experience: Over 36 Years (Managing the since inception) Growth Dividend % to Net DEBENTURES 0.01 Blue Dart Express Ltd EQUITY & EQUITY RELATED TVS Motor Co. Ltd Cholamandalam Investment and Finance Co. Ltd MRF Ltd Eicher Motors Ltd Page Industries Ltd Gruh Finance Ltd Wabco India Ltd Pidilite Industries Ltd VST Industries Ltd ABB India Ltd Kotak Mahindra Bank Ltd Sundaram Finance Ltd Asian Paints Ltd Industry Classification (for equity & equity related) Petroleum Products 2.21% % to Net Thermax Ltd United Breweries Ltd Nestle India Ltd Colgate Palmolive (India) Ltd GlaxoSmithkline Consumer Healthcare Ltd Bosch Ltd CRISIL Ltd The Great Eastern Shipping Co. Ltd Cummins India Ltd Bata India Ltd Castrol India Ltd Blue Dart Express Ltd Sundaram Finance Holding Ltd CBLO 0.37 Cash & Cash Receivables 2.68 TOTAL ` Crs. ` Crs. Consumer Durables Industrial Products Banks Transportation 2.29% 2.30% 4.18% 4.28% : % : % Standard Deviation : Beta : Sharpe Ratio : Portfolio Turnover Ratio^^ : 0.47 Risk free rate: Overnight MIBOR (6.05% as on 28/02/18). Source: FIMMDA. Ratios calculated on monthly 3 years data point. ^^ Lower of Purchase or Sale for one year/average AUM for one year. Chemicals 4.50% Textile Products 5.36% Industrial Capital Goods 7.49% Auto Ancillaries 12.68% Auto 13.90% Finance 18.36% Consumer Non Durables 19.40% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Entry Load : Not Applicable Exit Load (for Lumpsum & SIP) : Nil. Investment under the scheme is subject to a lock-in period of 3 Years. Dividend History Record Date Individual / HUF Others (Face Value: ` 10/- Per Unit) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) 4 IDBI Equity Advantage Fund - Dividend ( Plan) 25th September, th September, th September, IDBI Equity Advantage Fund - Dividend ( Plan) 25th September, th September, th September, Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV of the Dividend option of the will fall to the extent of the dividend payout and statutory levy, if any. All dividend distribution is subject to availability of distributable surplus on the record date and will be at the discretion of IDBI Asset Management Ltd. and IDBI MF Trustee Company Ltd. For complete dividend history including daily dividend history, please refer to our website. * NAV of the record date. Long term capital growth An Equity Linked Savings (ELSS) investing in equity and equity related instruments with the objective to provide investors with opportunities for capital appreciation and income along with the benefit of income-tax deduction (under section 80C of the Income-tax Act, 1961) on their investments, subject to a statutory lock-in of three years Investors understand that their principal will be at Moderately High risk

5 IDBI India Top 100 Equity Fund (IIT100EF) (An open-ended growth scheme) Features To provide investors with opportunities for long-term growth in capital through active management of a diversified basket of equity stocks, debt and money market instruments. The investment universe of the scheme will be restricted to equity stocks and equity related instruments of companies that are constituents of the Nifty 50 Index and the Nifty Next 50 Index comprising a total of 100 stocks. These two indices are collectively referred to as the Nifty100 Index. The equity portfolio will be well-diversified and actively managed to realize the scheme objective. Total Experience: Over 15 Years Mrs. Uma Venkatraman (Managing the since 5th September 2017) 15th May, 2012 Nifty 100 Index (TRI) Growth Dividend ` Crs. % to Net EQUITY & EQUITY RELATED HDFC Bank Ltd Maruti Suzuki India Ltd ICICI Bank Ltd Indian Oil Corpn. Ltd Indiabulls Housing Finance Ltd Housing Development Finance Corpn. Ltd Larsen & Toubro Ltd IndusInd Bank Ltd Britannia Industries Ltd UltraTech Cement Ltd Titan Co. Ltd ABB India Ltd Procter & Gamble Hygiene and Health Care Ltd Yes Bank Ltd Petronet LNG Ltd Bajaj Finance Ltd State Bank of India Ltd Piramal Enterprises Ltd Hindustan Zinc Ltd Bharat Electronics Ltd Eicher Motors Ltd Asian Paints Ltd % to Net Emami Ltd Container Corpn. of India Ltd Cummins India Ltd Shree Cements Ltd Motherson Sumi Systems Ltd Sun TV Network Ltd Bajaj Finserv Ltd Bosch Ltd Pidilite Industries Ltd ICICI Prudential Life Insurance Co. Ltd Tata Steel Ltd Shriram Transport Finance Co. Ltd Hero Motocorp Ltd Godrej Consumer Products Ltd UPL Ltd Dabur India Ltd Aurobindo Pharma Ltd Tata Steel Ltd. Fully Paid Rights 0.04 Piramal Enterprises Ltd. Rights 0.01 CBLO 2.46 Cash & Cash Receivables 0.12 Total ` Crs. : % : % Standard Deviation : Beta : Sharpe Ratio : Portfolio Turnover Ratio^^ : 0.70 Risk free rate: Overnight MIBOR (6.05% as on 28/02/18). Source: FIMMDA. Ratios calculated on monthly 3 years data point. ^^ Lower of Purchase or Sale for one year/average AUM for one year. Entry Load : Not Applicable Exit Load : for Lumpsum - 1% for exit (Redemption Switch-out/Transfer/SWP) within 12 months from the date of allotment. for SIP - 1% for exit (Redemption/Switch-out/Transfer/SWP) within 12 months from the date of allotment of each installment. Dividend History Record Date Individual / HUF Others (Face Value: ` 10/- Per Unit) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI India Top 100 Equity Fund - Dividend ( Plan) 31st May, th May, th May, IDBI India Top 100 Equity Fund - Dividend ( Plan) 31st May, th May, th May, Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV of the Dividend option of the will fall to the extent of the dividend payout and statutory levy, if any. All dividend distribution is subject to availability of distributable surplus on the record date and will be at the discretion of IDBI Asset Management Ltd. and IDBI MF Trustee Company Ltd. For complete dividend history including daily dividend history, please refer to our website. * NAV of the record date. Industry Classification (for equity & equity related) Pesticides Ferrous Metals Chemicals Media&Entertainment Industrial Products Transportation Non-Ferrous Metals Gas Consumer Durables Auto Ancillaries Pharmaceuticals Construction Project Petroleum Products Cement Industrial Capital Goods Auto Consumer NonDurables Finance Banks 1.21% 1.48% 1.53% 1.76% 2.00% 2.01% 2.41% 2.64% 3.01% 3.36% 3.37% 3.59% 3.79% 5.01% 5.13% 8.68% 12.92% 14.57% 18.96% 0.00% 4.00% 8.00% 12.00% 16.00% 20.00% Disclaimer of IISL: The IDBI India Top 100 Equity Fund offered by IDBI Mutual Fund or its affiliates is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL) and its affiliates. IISL and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of IDBI India Top 100 Equity Fund or any member of the public regarding the advisability of investing in securities generally or in the IDBI India Top 100 Equity Fund linked to Nifty 100 Index or particularly in the ability of the Nifty 100 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty100 Index in the Information Document. Long term capital growth Investments in equity stocks and equity related instruments of companies that are constituents of Nifty100 Index Investors understand that their principal will be at Moderately High risk 5

6 IDBI Diversified Equity Fund (IDEF) (An open-ended growth scheme) 6 Features To provide investors with opportunities for long-term growth in capital through investment in a diversified basket of equity stocks, debt and money market instruments. The equity portfolio will be well-diversified and actively managed to realize the objective. However, there can be no assurance that the investment objective of the scheme will be realized. Total Experience: Over 11 Years Mr. Ashish Mishra (Managing the since 5th September 2017) 28th March, 2014 S&P BSE 500 Index (TRI) Growth Dividend ` Crs. ` Crs. : % : % Standard Deviation : Beta : Sharpe Ratio : Portfolio Turnover Ratio^^ : 0.53 Risk free rate: Overnight MIBOR (6.05% as on 28/02/18). Source: FIMMDA. Ratios calculated on monthly 3 years data point. ^^ Lower of Purchase or Sale for one year/average AUM for one year. Entry Load : Not Applicable Exit Load : For Lumpsum - 1% for exit (Redemption/Switch-out/Transfer/SWP) within 12 months from the date of allotment. For SIP - 1% for exit (Redemption/Switch-out/Transfer/SWP) within 12 months from the date of allotment of each installment. Dividend History Record Date Individual / HUF Others (Face Value: ` 10/- Per Unit) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI Diversified Equity Fund - Dividend ( Plan) 25th September, th September, th May, IDBI Diversified Equity Fund - Dividend ( Plan) 25th September, th September, th May, Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV of the Dividend option of the will fall to the extent of the dividend payout and statutory levy, if any. All dividend distribution is subject to availability of distributable surplus on the record date and will be at the discretion of IDBI Asset Management Ltd. and IDBI MF Trustee Company Ltd. For complete dividend history including daily dividend history, please refer to our website. * NAV of the record date. % to Net DEBENTURES 0.01 Blue Dart Express Ltd EQUITY & EQUITY RELATED Gillette India Ltd Phillips Carbon Black Ltd Bharat Forge Ltd Eicher Motors Ltd 4.00 Hindustan Unilever Ltd PVR Ltd Britannia Industries Ltd Shree Cements Ltd Abbott India Ltd Wabco India Ltd Pidilite Industries Ltd Mahindra & Mahindra Ltd HDFC Bank Ltd Cholamandalam Investment and Finance Co. Ltd Exide Industries Ltd MRF Ltd Camlin Fine Sciences Ltd Thermax Ltd The Great Eastern Shipping Co. Ltd Kotak Mahindra Bank Ltd Cummins India Ltd Indian Oil Corpn. Ltd BASF India Ltd VST Industries Ltd Long term capital growth Investments predominantly in equity & equity related instruments Industry Classification (excluding CBLO and Cash & Cash Receivables) Ferrous Metals Consumer Durables Transportation Petroleum Products Pharmaceuticals Cement Media & Entertainment Industrial Capital Goods Auto Finance Banks Chemicals Industrial Products Auto Ancillaries Consumer NonDurables 1.03% 1.55% 2.19% 3.05% 3.28% 3.31% 3.68% 3.74% % to Net Grindwell Norton Ltd Bosch Ltd Schaeffler India Ltd (Old Name FAG Bearings India Ltd.) Procter & Gamble Hygiene and Health Care Ltd SKF India Ltd IndusInd Bank Ltd ABB India Ltd Goodyear India Ltd Sundaram Finance Ltd General Insurance Corpn. of India 1.26 State Bank of India Ltd Bajaj Finance Ltd Kansai Nerolac Paints Ltd ITC Ltd Castrol India Ltd Titan Co. Ltd Tata Steel Ltd GNA Axles Ltd Indian Energy Exchange Ltd Hawkins Cookers Ltd Precision Camshafts Ltd Sundaram Finance Holding Ltd CBLO 2.79 Cash & Cash Receivables TOTAL % 7.16% 7.94% 11.53% 11.54% 13.10% 17.33% 0.00% 4.00% 8.00% 12.00% 16.00% 20.00% Investors understand that their principal will be at Moderately High risk

7 IDBI Nifty Index Fund (INIF) (An open-ended scheme replicating/ tracking the Nifty 50 Index [Total Returns Index]) Features The investment objective of the scheme is to invest only in and all the stocks comprising the Nifty 50 Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of Nifty 50 Index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the Nifty 50 Index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the Nifty 50 Index (Total Returns Index) and the. Total Experience: Over 15 Years Mrs. Uma Venkatraman (Managing the since 5th September 2017) 25th June, 2010 Nifty 50 Index (TRI) Growth Dividend ` Crs. ` Crs. : % : % Portfolio Turnover Ratio^^ : 0.60 Tracking Error : % Annualised tracking error for last 12 month's period. ^^ Lower of Purchase or Sale for one year/average AUM for one year. Entry Load : Not Applicable Exit Load (for Lumpsum & SIP) : Nil Dividend History Record Date Individual / HUF Others (Face Value: ` 10/- Per Unit) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI Nifty Index Fund - Dividend ( Plan) 14th October, st August, Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV of the Dividend option of the will fall to the extent of the dividend payout and statutory levy, if any. All dividend distribution is subject to availability of distributable surplus on the record date and will be at the discretion of IDBI Asset Management Ltd. and IDBI MF Trustee Company Ltd. For complete dividend history including daily dividend history, please refer to our website. * NAV of the record date. % to Net EQUITY & EQUITY RELATED HDFC Bank Ltd Reliance Industries Ltd Housing Development Finance Corpn. Ltd Infosys Ltd ITC Ltd ICICI Bank Ltd Larsen & Toubro Ltd Tata Consultancy Services Ltd Kotak Mahindra Bank Ltd Maruti Suzuki India Ltd State Bank of India Ltd Hindustan Unilever Ltd IndusInd Bank Ltd Axis Bank Ltd Tata Motors Ltd Mahindra & Mahindra Ltd Vedanta Ltd. (Old Name Sesa Sterlite Ltd.) 1.51 Sun Pharmaceuticals Industries Ltd Yes Bank Ltd Bharti Airtel Ltd Oil & Natural Gas Corpn. Ltd HCL Technologies Ltd Tata Steel Ltd NTPC Ltd Asian Paints Ltd Hero Motocorp Ltd Power Grid Corpn. of India Ltd Industry Classification (for equity & equity related) Auto Ancillaries Pesticides Telecom-Equipment&Accessories Gas Media&Entertainment Transportation Minerals/Mining Ferrous Metals Oil Telecom-Services Cement Power Non-Ferrous Metals Pharmaceuticals ConstructionProject Finance Consumer Non Durables Auto Petroleum Products Software Banks 0.42% 0.65% 0.66% 0.72% 0.75% 0.78% 0.99% 1.27% 1.31% 1.39% 1.52% 2.29% 2.40% 3.76% 3.99% % to Net UltraTech Cement Ltd Bajaj Auto Ltd Indiabulls Housing Finance Ltd Coal India Ltd Indian Oil Corpn. Ltd Bajaj Finance Ltd Tech Mahindra Ltd Eicher Motors Ltd Hindalco Industries Ltd Bharat Petroleum Ltd Wipro Ltd Adani Ports and Special Economic Zone Ltd Zee Entertainment Enterprises Ltd Cipla Ltd Gail (India) Ltd Hindustan Petroleum Corpn. Ltd Dr. Reddys Laboratories Ltd Bharti Infratel Ltd UPL Ltd Lupin Ltd Ambuja Cements Ltd Aurobindo Pharma Ltd Bosch Ltd Tata Steel Ltd. Fully Paid Rights 0.03 CBLO 0.27 Cash & Cash Receivables 0.20 Total % 9.11% 9.28% 10.59% 12.48% 26.11% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Disclaimer of IISL : The IDBI Nifty Index Fund offered by IDBI Mutual Fund or its affiliates is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL) and its affiliates. IISL and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of IDBI Nifty Index Fund or any member of the public regarding the advisability of investing in securities generally or in the IDBI Nifty Index Fund linked to Nifty 50 Index or particularly in the ability of the Nifty 50 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty 50 Index in the Information Document. Long Term growth in a passively managed scheme tracking Nifty 50 Index (TRI) Investments only in and all stocks comprising Nifty 50 Index in the same weight of these stocks as in Index with objective to replicate performance of Nifty 50 Index (TRI) Investors understand that their principal will be at Moderately High risk 7

8 IDBI Nifty Junior Index Fund (INJIF) (An open-ended scheme replicating/ tracking the Nifty Next 50 Index [Total Returns Index]) Features The investment objective of the scheme is to invest only in and all the stocks comprising the Nifty Next 50 Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of Nifty Next 50 Index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the Nifty Next 50 Index as and when the derivative products on the same are made available. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the Nifty Next 50 Index (Total Returns Index) and the. Total Experience: Over 15 Years Mrs. Uma Venkatraman (Managing the since 5th September 2017) 20th September, 2010 Nifty Next 50 Index (TRI) Growth Dividend ` Crs. % To Net EQUITY & EQUITY RELATED Titan Co. Ltd JSW Steel Ltd Bajaj Finserv Ltd Britannia Industries Ltd Godrej Consumer Products Ltd Motherson Sumi Systems Ltd Piramal Enterprises Ltd Ashok Leyland Ltd Shree Cements Ltd Shriram Transport Finance Co. Ltd United Spirits Ltd Petronet LNG Ltd Dabur India Ltd MRF Ltd Marico Ltd LIC Housing Finance Ltd Tata Power Co. Ltd Container Corpn. of India Ltd ACC Ltd Colgate Palmolive (India) Ltd Pidilite Industries Ltd Bank of Baroda Ltd Interglobe Aviation Ltd Bharat Heavy Electricals Ltd Bharat Electronics Ltd Havells India Ltd NMDC Ltd Industry Classification (for equity & equity related) % To Net Rural Electrification Corpn. Ltd Idea Cellular Ltd ICICI Prudential Life Insurance Co. Ltd Cummins India Ltd Punjab National Bank Ltd Siemens Ltd Cadila Healthcare Ltd DLF Ltd Power Finance Corpn. Ltd Avenue Supermarts Ltd Sun TV Network Ltd Procter & Gamble Hygiene and Health Care Ltd Oracle Financial Services Software Ltd Steel Authority of India Ltd Hindustan Zinc Ltd ABB India Ltd Glenmark Pharmaceuticals Ltd GlaxoSmithkline Consumer Healthcare Ltd Emami Ltd Torrent Pharmaceuticals Ltd Oil India Ltd NHPC Ltd Glaxosmithkline Pharmaceuticals Ltd Piramal Enterprises Ltd. Rights 0.01 CBLO 1.27 Cash & Cash Receivables 0.40 Total ` Crs. : % : % Portfolio Turnover Ratio^^ : 0.52 Tracking Error : % Annualised tracking error for last 12 month's period. ^^ Lower of Purchase or Sale for one year/average AUM for one year. Entry Load : Not Applicable Exit Load (for Lumpsum & SIP) : Nil Oil Non-Ferrous Metals Software Media&Entertainment Retailing Construction Industrial Products Telecom-Services Minerals/Mining Chemicals Gas Auto Power Banks Transportation Cement Ferrous Metals Industrial Capital Goods Auto Ancillaries Consumer Durables Pharmaceuticals Finance Consumer Non Durables 0.87% 1.13% 1.19% 1.24% 1.28% 1.37% 1.47% 1.56% 1.59% 1.89% 2.57% 2.81% 2.90% 3.30% 3.64% 4.70% 5.69% 5.84% 6.06% 6.37% 7.17% 13.46% 20.21% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Disclaimer of IISL: The IDBI Nifty Junior Index Fund offered by IDBI Mutual Fund or its affiliates is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL) and its affiliates. IISL and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of IDBI Nifty Junior Index Fund or any member of the public regarding the advisability of investing in securities generally or in the IDBI Nifty Junior Index Fund linked to Nifty Next 50 Index or particularly in the ability of the Nifty Next 50 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty Next 50 Index in the Information Document. Long Term growth in a passively managed scheme tracking Nifty Next 50 Index (TRI) Investments only in and all stocks comprising Nifty Next 50 Index in the same weight of these stocks as in Index with objective to replicate performance of Nifty Next 50 Index (TRI) 8 Investors understand that their principal will be at Moderately High risk

9 IDBI Midcap Fund (IMF) (An open-ended equity scheme) Features The objective of the scheme is to provide investors with the opportunities for longterm capital appreciation by investing predominantly in Equity and Equity related instruments of Midcap Companies. However there can be no assurance that the investment objective under the scheme will be realized. Total Experience: Over 11 Years Mr. Ashish Mishra (Managing the since 5th September 2017) 25th January 2017 Nifty Free Float Midcap 100 (TRI) Growth Dividend ` Crs. ` Crs. : % : % Portfolio Turnover Ratio^^ : 0.49 ^^ Lower of Purchase or Sale for one year/average AUM for one year. Entry Load : Not Applicable Exit Load : 1% for exit within 12 months from the date of allotment. % To Net EQUITY & EQUITY RELATED Phillips Carbon Black Ltd Minda Industries Ltd TATA Elxsi Ltd Sterlite Technologies Ltd Escorts Ltd Procter & Gamble Hygiene and Health Care Ltd Trent Ltd Motherson Sumi Systems Ltd RBL Bank Ltd The Federal Bank Ltd Endurance Technologies Ltd Minda Corporation Ltd Akzo Nobel India Ltd 1.99 AIA Engineering Ltd Supreme Industries Ltd Bharat Financial Inclusion Ltd Sanofi India Ltd Dalmia Bharat Ltd Finolex Cables Ltd General Insurance Corpn. of India 1.69 Heritage Foods Ltd The Ramco Cements Ltd Hindustan Copper Ltd National Aluminium Co. Ltd Amara Raja Batteries Ltd CESC Ltd Navin Fluorine International Ltd Industry Classification (for equity & equity related) Pesticides Textile Products Engineering Services Industrial Capital Goods Power Consumer Durables Gas Retailing Auto Non -Ferrous Metals Cement Software Pharmaceuticals Banks Finance Chemicals Consumer Non Durables Auto Ancillaries Industrial Products 0.78% 0.89% 1.08% 1.10% 1.39% 1.95% 2.19% 2.22% 2.87% 3.03% 3.34% 3.38% 3.73% 4.75% 6.05% 6.34% % To Net CCL Products (India) Ltd PNB Housing Finance Ltd Elgi Equipment Ltd Gujarat State Petronet Ltd Dabur India Ltd Johnson Controls - Hitachi Air Conditioning 1.14 India Ltd. BEML Ltd VA Tech Wabag Ltd Mahindra CIE Automotive Ltd Cadila Healthcare Ltd Bosch Ltd Carborundum Universal Ltd Shriram Transport finance Co. Ltd Gujarat Gas Ltd 0.93 Aurobindo Pharma Ltd Trident Ltd Vinati Organics Ltd Century Plyboards (India) Ltd UPL Ltd Timken India Ltd Cummins India Ltd DCB Bank Ltd Housing & Urban Development Corpn. Ltd % Vendanta Redeemable Preference Shares 0.06 CBLO Cash & Cash Receivables 8.68 Total % 12.65% 13.17% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Disclaimer of IISL: The IDBI Midcap Fund offered by IDBI Mutual Fund is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of IDBI Midcap Fund or any member of the public regarding the advisability of investing in securities generally or in the IDBI Midcap Fund linked to Nifty Free Float Midcap 100 Index or particularly in the ability of the Nifty Free Float Midcap 100 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty Free Float Midcap 100 Index in the Information Document. Long term capital growth Investment predominantly in equity & equity related instruments of Midcap companies Investors understand that their principal will be at Moderately High risk 9

10 IDBI Small Cap Fund (ISF) (An open-ended equity scheme) Features The objective of the scheme is to provide investors with the opportunities for longterm capital appreciation by investing predominantly in Equity and Equity related instruments of Small Cap companies. However there can be no assurance that the investment objective under the will be realized. Total Experience: Over 15 Years Mrs. Uma Venkatraman (Managing the since 5th September 2017) 21st June 2017 Nifty Smallcap 250 Index (TRI) Growth Dividend ` Crs. ` Crs. : % : % Portfolio Turnover Ratio^^ : 027 ^^ Lower of Purchase or Sale for one year/average AUM for one year. Entry Load : Not Applicable Exit Load : 1% for exit within 12 months from the date of allotment. % To Net EQUITY & EQUITY RELATED General Insurance Corpn. of India M India Ltd Camlin Fine Sciences Ltd Cholamandalam Investment and Finance Co. Ltd Voltas Ltd KEI Industries Ltd Mahindra & Mahindra Financial Services Ltd V S T Tillers Tractors Ltd Elantas Beck India Ltd Somany Ceramics Ltd Kansai Nerolac Paints Ltd Transport Corpn. of India Ltd AIA Engineering Ltd Timken India Ltd Ahluwalia Contracts (India) Ltd Cochin Shipyard Ltd Vijaya Bank 2.07 GNA Axles Ltd Goodyear India Ltd NCC Ltd Cera Sanitaryware Ltd ISGEC Heavy Engineering Ltd ABB India Ltd Mahindra Logistics Ltd JK Cement Ltd Ingersoll Rand (India) Ltd Industry Classification (for equity & equity related) Consumer Durables Gas Retailing Minerals/Mining Textile Products Pharmaceuticals Cement Chemicals Auto Consumer Non Durables Banks Transportation Trading Construction Project Industrial Capital Goods Auto Ancillaries Construction Finance Industrial Products 1.18% 1.56% 1.67% 1.69% 2.05% 2.29% 3.50% 3.74% 3.74% 3.75% 3.79% 3.98% 4.52% 4.63% 5.53% 7.31% 7.34% % To Net Mold-Tek Packaging Ltd NRB Bearing Ltd City Union Bank Ltd Gravita India Ltd V-Mart Retail Ltd Muthoot Capital Services Ltd Star Cement Ltd Hatsun Agro Product Ltd Dishman Carbogen Amcis Ltd Aegis Logistics Ltd Garware Wall Ropes Ltd Honeywell Automation India Ltd INEOS Styrolution India Ltd Bajaj Auto Ltd Wabco India Ltd Greenply Industries Ltd Indian Energy Exchange Ltd MM Forgings Ltd Exide Industries Ltd Capacite Infraprojects Ltd Sundaram Clayton Ltd Caplin Point Laboratories Ltd Sintex Plastics Technology Ltd Rajapalayam Mills Ltd CBLO 4.00 Cash & Cash Receivables Total % 19.60% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Long term capital growth Investment predominantly in equity & equity related instruments of Small Cap companies 10 Investors understand that their principal will be at Moderately High risk

11 IDBI Prudence Fund (IPF) (An open-ended balanced scheme) Features The investment objective of the scheme would be to generate opportunities for capital appreciation along with income by investing in a diversified basket of equity and equity related instruments, debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be realized. Fund Managers: V. Balasubramanian (Equity Portion) Mr. Raju Sharma (Debt Portion) Total Experience: Over 36 Years (Managing the since inception) Over 25 Years (Managing the since 3rd May, 2017) 24th October % S&P BSE 500 Index + 50% CRISIL Composite Bond Fund Index (TRI) Growth Dividend ` Crs. ` Crs. : % : % YTM : 8.07% Average Maturity : 7.26 Years Modified Duration : 5.01 Years Portfolio Turnover Ratio^^ : 3.17 ^^ Lower of Purchase or Sale for one year/average AUM for one year. Entry Load : Not Applicable Exit Load : 1% for exit within 12 months from the date of allotment. (for Lumpsum & SIP) No load on exit after the aforementioned period. Dividend History Record Date Individual / HUF Others (Face Value: ` 1000/- Per Unit) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI Prudence Fund - Monthly Dividend ( Plan) 30th October, st August, IDBI Prudence Fund - Monthly Dividend ( Plan) 30th October, st August, Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV of the Dividend option of the will fall to the extent of the dividend payout and statutory levy, if any. All dividend distribution is subject to availability of distributable surplus on the record date and will be at the discretion of IDBI Asset Management Ltd. and IDBI MF Trustee Company Ltd. For complete dividend history including daily dividend history, please refer to our website. * NAV of the record date. Issuer / Rating % To Net FIXED COUPON BONDS LIC Housing Finance Ltd. CRISIL AAA 2.26 Bank of Baroda Ltd. CRISIL AA Axis Bank Ltd. CRISIL AA Punjab National Bank Ltd. IND AA 2.25 Fullerton India Credit Co. Ltd CARE AAA 1.14 EQUITY & EQUITY RELATED Godrej Consumer Products Ltd. N.A 3.76 HDFC Bank Ltd. N.A 3.46 Pidilite Industries Ltd. N.A 3.10 Yes Bank Ltd. N.A 2.96 JSW Steel Ltd. N.A 2.80 Bharat Forge Ltd. N.A 2.54 TVS Motor Co. Ltd. N.A 2.34 Nestle India Ltd. N.A 2.14 Aarti Industries Ltd. N.A 2.10 Dewan Housing Finance Corpn. Ltd. N.A 2.07 IndusInd Bank Ltd. N.A 1.93 CESC Ltd. N.A 1.92 Larsen & Toubro Ltd. N.A 1.82 Hindustan Unilever Ltd. N.A 1.81 Hindalco Industries Ltd. N.A 1.69 Hero Motocorp Ltd. N.A 1.65 Finolex Cables Ltd. N.A 1.48 Jain Irrigation Systems Ltd. N.A 1.48 Godrej Industries Ltd. N.A 1.39 Sundram Fasteners Ltd. N.A 1.30 Exide Industries Ltd. N.A 1.29 Eicher Motors Ltd. N.A 1.26 Kansai Nerolac Paints Ltd. N.A 1.23 Heidelberg Cement India Ltd. N.A 1.14 Vedanta Ltd. (Old Name Sesa Sterlite Ltd.) N.A 1.14 Birla Corpn. Ltd. N.A 1.08 Reliance Infrastructure Ltd. N.A 1.05 JSW Energy Ltd. N.A 0.93 TI Financial Holdings Ltd. (Formerly Tube Investment of India Ltd.) N.A 0.92 Fixed Deposits placed for margin purpose for Derivative Exposure Total Outstanding exposure in Derivative Instruments as on February 28, 2018: Rs (Market Value in Lakhs) Industry Classification (for equity & equity related) Fertilizers Healthcare Services Pesticides Textile Products Telecom -Services Pharmaceuticals Media &Entertainment Construction Project Ferrous Metals Non -Ferrous Metals Auto Ancillaries Cement Power Chemicals Auto Finance Industrial Products Banks Consumer Non Durables 0.19% 0.32% 0.42% 0.47% 0.52% 0.86% 1.64% 2.52% 2.80% 2.83% 3.47% 3.72% 3.89% Issuer / Rating % To Net ITC Ltd. N.A 0.91 IDFC Bank Ltd. N.A 0.90 Century Textiles and Industries Ltd. N.A 0.85 Infrastucture Development Finance Co. Ltd. N.A 0.83 Sun TV Network Ltd. N.A 0.83 Inox Leisure Ltd. N.A 0.81 Timken India Ltd. N.A 0.78 NCC Ltd. N.A 0.70 Sintex Plastics Technology Ltd. N.A 0.68 Indiabulls Housing Finance Ltd. N.A 0.67 Housing Development Finance Corpn. Ltd. N.A 0.62 Shree Cements Ltd. N.A 0.60 TVS Srichakra Ltd. N.A 0.53 Tata Communications Ltd. N.A 0.52 Wockhardt Ltd. N.A 0.51 Raymond Ltd. N.A 0.47 UPL Ltd. N.A 0.42 Aditya Birla Capital Ltd. N.A 0.38 Tube Investments of India Ltd. (Formerly TI Financial Holdings Ltd) N.A 0.36 Aurobindo Pharma Ltd. N.A 0.35 Force Motors Ltd N.A 0.34 Fortis Healthcare Ltd. N.A 0.32 LIC Housing Finance Ltd. N.A 0.32 Gujarat State Fertilizers and Chemicals Ltd. N.A 0.19 The India Cements Ltd. N.A 0.05 FIXED DEPOSITS 1.84 HDFC Bank Ltd. N.A 1.84 GOV'T SECURITIES GOI 2028 SOV GOI 2027 SOV GOI 2031 SOV 1.44 CBLO 0.68 Cash & Cash Receivables 0.24 TOTAL % 5.59% 5.82% 6.95% 9.25% 11.25% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% This product is suitable for investors who are seeking*: Long term capital appreciation with income Investments in equity & equity related instruments as well as debt and money market instruments Investors understand that their principal will be at Moderately High risk Asset Profile 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.14% 10.00% 0.00% 67.70% 1.84% 19.40% Fixed Coupon Bond Equity&Equity Related Fixed Deposit Gov't Securities CBLO Cash&Cash Receivables 0.68% 0.24% 11

12 IDBI Focused 30 Equity Fund (IF30EF) (An open-ended equity scheme investing in maximum 30 stocks (predominantly large cap)) Features The investment objective of the is to provide long term capital appreciation by investing in concentrated portfolio of large cap focused equity and equity related instruments of up to 30 companies and balance in debt and money market Instruments. However there can be no assurance that the investment objective of the will be realized. Mr. V. Balasubramanian 17th November, 2017 Nifty 100 Index (TRI) Total Experience: Over 36 Years (Managing the since inception) Growth Dividend ` Crs. ` Crs. : % : % Issuer Name Rating % To Net CERTIFICATE OF DEPOSIT 2.86 Axis Bank Ltd. CRISIL 2.86 A1+ EQUITY & EQUITY RELATED HDFC Bank Ltd. N.A 5.48 ITC Ltd. N.A 3.86 Larsen & Toubro Ltd. N.A 3.84 Hindustan Unilever Ltd. N.A 3.83 Housing Development Finance N.A 3.68 Corpn. Ltd. Reliance Industries Ltd. N.A 3.61 Bharat Forge Ltd. N.A 3.45 Asian Paints Ltd. N.A 3.25 Mahindra & Mahindra Ltd. N.A 3.18 Tata Motors Ltd. N.A 2.96 Tata Steel Ltd. N.A 2.93 Power Grid Corpn. of India Ltd. N.A 2.88 Industry Classification (for equity & equity related) Industrial Capital Goods Auto Ancillaries Pharmaceuticals Cement Power Ferrous Metals Construction Project Petroleum Products Auto Induatrial Products Banks Finance Consumer Non Durables 0.95% 2.11% 2.57% 2.66% 2.88% 2.93% 3.84% Issuer Name Rating % To Net Shree Cements Ltd. N.A 2.66 Cipla Ltd. N.A 2.57 Indiabulls Housing Finance Ltd. N.A 2.55 ICICI Prudential Life N.A 2.40 Insurance Co. Ltd. Hindustan Petroleum Corpn. Ltd. N.A 2.21 Motherson Sumi Systems Ltd. N.A 2.11 ISGEC Heavy Engineering Ltd. N.A 1.96 GlaxoSmithkline Consumer N.A 1.95 Healthcare Ltd. Mahindra CIE Automotive Ltd. N.A 1.88 Yes Bank Ltd. N.A 1.88 Bajaj Finserv Ltd. N.A 1.47 Honda Siel Power Products Ltd. N.A 0.95 CBLO Cash & Cash Receivables Total % 6.14% 7.28% 7.36% 10.11% 12.89% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Entry Load : Not Applicable Exit Load : 1% for exit within 12 months from the date of allotment. Asset Profile 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% % 2.86% 67.56% 29.82% Certificate of Deposit Equity&Equity Related CBLO Cash&Cash Receivables -0.24% Long term capital growth Investment predominantly in large cap focused equity & equity related instruments of upto 30 companies and balance in debt & money market instruments 12 Investors understand that their principal will be at Moderately High risk