JOURNAL HDFC MID-CAP OPPORTUNITIES FUND(G)

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1 KARVY s INVESTOR JOURNAL What s Inside Market Review Page 01 Karvy Investment Insight Page 03 Fund of The Month Page 04 Readers Corner Page 05 Story of The Month Page 06 SIP Performance Page 07 Category Average Returns Page 08 Fixed Deposits Schemes Page 09 Equity Funds Performance Page 10 Debt Funds Performance Page 11 Global Markets at a Glance Page 12 Indices Watch Page 13 Highlights of the Month»» Unified Payments Interface, developed by National Payments Corporation of India (NPCI), is going live for customers of 21 banks, namely - Punjab National Bank, Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Oriental Bank of Commerce, Union Bank of India and Vijaya Bank, among others.experts see it as a positive and unique move with some seeing it as a potential to turn your bank account into an e-wallet.»» The rupee weakened for the third straight session on 4th Sep to hit over a three-week low against the dollar as the investors hope for an immediate reduction in the interest rates seems to have been quashed after the government named Urjit Patel, known to be hawkish on inflation, as the new governor of the Reserve Bank of India (RBI) on Saturday.»» Domestic mutual funds (MF) now account for 4.5 per cent of India s total market capitalisation (m-cap), up from 2.9 per cent two years ago. The rise comes amid robust and consistent investor flows into equity schemes, rise in stock prices, and market-beating performance by fund managers. MFs share in domestic m-cap is at record levels and significantly higher than levels, which is considered to be a boom period for the mutual fund sector.»» Mutual fund managers pumped in over Rs 2,700 crore in equity markets in August after witnessing outflows in the preceding two months. With latest inflow, total investment in stock markets have reached Rs 9,170 crore in current fiscal so far (Apr-Aug). Industry insiders attributed latest inflow to positive investors sentiment that was boosted after long-stalled GST Constitution Amendment Bill was passed in both houses of Parliament last month.»» As per a data released by Securities and Exchange Board of India (Sebi), mutual fund managers invested a net sum of Rs 2,717 crore last month. Prior to that, fund managers had pulled out Rs 120 crore from markets in the preceding two months (June-July). They had infused Rs 7,149 crore in equities in May while they withdrew Rs 575 crore in April. In , fund managers had invested over Rs 70,000 crore in the equity markets. KARVY s INVESTOR JOURNAL Fund of the Month HDFC MID-CAP OPPORTUNITIES FUND(G) The aim of the fund is to generate long-term capital appreciation from a portfolio that is substantially... Page 04

2 Market Review INVESTOR JOURNAL In his last monetary policy review (MPR) as RBI Governor, Dr. Raghuram Rajan decided against a change in policy stance in view of the changing inflation scenario in the economy. To that effect, policy repo as well as reverse repo rate has been kept unchanged at 6.5 per cent and 6.0 per cent, respectively. Foreign investors have already pumped in a significant amount of investment in the domestic treasury market, to hedge the uncertainty that lies ahead. CPI inflation in Jul-16 soared to 6.07%, slightly higher than upper bound of the mandated inflation range of 2% - 6%. Weak statistical base amid limited disinflation in food prices remained the primary reasons for this anticipated rise. Bucking analysts estimates, India s 1st quarter GDP for came in at 7.1 per cent, compared to 7.9 per cent in the previous quarter. Gross value added (GVA), the final price of products and services in the country, for the same period came in at 7.3 per cent, as compared to 7.1 per cent for the same period a year ago. GDP for the corresponding period in the previous year was 7.5 per cent. INR ended the month of Aug at against the USD. Indian broader indices performed well with respect to most of the peers in the month. Sensex and Nifty both were up by 1.43% and 1.71% respectively. In the corresponding period, FIIs were net buyers in Equity segment worth around Crores and were net sellers in Debt segment worth Crores respectively. Mutual Funds were net buyers in Equity to the tune of 1908 Crores and in debt up to 13,943 Crores. Apart from FII and MF activity, Key domestic data released in the month of August were: 1.Foreign Trade: The country s merchandise exports stood at USD billion in Jul 16 as against USD billion recorded last year, which is a marginal drop of 6.84% Y-o-Y. The country s merchandise imports bills eased to USD billion in Jul 16 from USD billion recorded a year ago. Oil imports continued to ease Y-o-Y, contracting by 28.10% to USD 6.82 billion in Jul 16. The non-oil imports dipped by 15.83% in Jul 16 to USD billion vis-à-vis nonoil imports of USD billion recorded in the month of July of the previous fiscal. 2.Inflation: Wholesale Price Index based inflation more than doubled from 1.62 to 3.55 in July-16. Food inflation, which was 8.18% in the month of June 16 went up to 11.82% yoy in July 16. The fuel inflation stood at -1% in July 16 from -3.62% in the month of June 16. CPI inflation stood at 7.96% in July 16 from 7.46% in the month of June Index of Industrial Production (IIP): Index of Industrial Production (IIP) for June 16 went up by 2.06% against 1.11% in previous month. Manufacturing production in India registered a growth of 0.9% for June 16. Basic Goods grew at 5.88% in June 16 compared to 3.78% in May 16. Capital goods contracted by 16.47% in June 16 against 12.35% in May 16. Among the BSE sectoral indices, Metal, Bankex and Oil & Gas were the major gainers which ended the month up by 5.67%, 4.51% and 4.51% respectively while Realty, IT & Teck were the major losers ending the month down by 4.04%, 3.46% & 3.33% respectively. Among the NSE sectoral indices, PSU Bank, Metal and Midcap 50 were the major gainers which ended the month up by 8.65%, 5.95% and 5.60% respectively while major indices such as VIX, IT and Pharma ended the month in the negative territory, falling by 11.23%, 3.36% & 1.78% respectively. Among the major Asian Indices, it was a positive month for Hangseng, Nikkei and Taiwan ended up by 4.96%, 1.92% and 0.94% respectively. It was a positive month for all major European indices with BEL-20 and DAX ending up by 2.56% and 2.47% respectively while CAC-40 was down by 0.04% respectively. It was not a good month for all Major American Indices with NASDAQ, NYSE, Dow Jones and S&P500 which ended down by 1.24%, 0.19%, 0.17% and 0.12% respectively. Among the major indices across the world, Bovespa, Brazilian index had a decent month, going up by 1.03%. 1

3 FII Activity: (Month Between 01-Aug-2016 to 31-Aug-2016) Equity Date Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.) 1-Aug-16 5, , , , , , , Aug-16 3, , Aug-16 15, , Aug , , , Debt Date Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.) 1-Aug-16 1, Aug-16 1, , Aug , Aug-16 25, , , MF Activity: (Month Between 01-Aug-2016 to 31-Aug-2016) Equity Date Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.) 1-Aug-16 1, , , , , Aug-16 1, , Aug-16 1, , Aug-16 27, , , Debt Date Gross Purchase (Cr.) Gross Sale (Cr.) Net (Cr.) 1-Aug-16 7, , , , , , , , , Aug-16 8, , , Aug-16 9, , , Aug , , , Sensex & Nifty: S&P BSE SENSEX Date Close Price Points Diff %age Change 29-Jul-16 28, Aug-16 27, % , % , % 25-Aug-16 27, % 31-Aug-16 28, % 1.43% CNX Nifty Index Date Close Price Points Diff %age Change 29-Jul Aug % % % 25-Aug % 31-Aug % 1.71% 2

4 Karvy Investment Insight Peace of mind and Wealth Creation ideas for long term Karvy Insights brings to you investment wisdom to help our investors make sound investment decisions and reach their goals faster. These inputs may not help you become wealthy in a short span of time, but they would definitely give you peace of mind and a roadmap for your financial journey. How to become a millionaire!!! Amount/ Month to make you a millionaire Investment Tenure(Yrs) 15% 12% 10% 8% 6% 4% , , , , ,001 1,306 1, , , ,478 2,983 2,393 2, , , ,589 4,305 4,842 5, , , ,151 12,124 12,807 13, , , Asset allocation - Age based 3

5 Fund of The Month INVESTOR JOURNAL HDFC MID-CAP OPPORTUNITIES FUND(G) Investment Objective: The aim of the fund is to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small and mid-cap companies. Portfolio: Name Top 10 Companies Holdings %age Top 10 Sector Wise Holding Industry Name (%) HDFC Liquid Fund(G)-Direct Plan 3.7 Hindustan Petroleum Corporation Ltd. 3.4 Voltas Ltd. 2.7 Cholamandalam I & F Company Ltd. 2.6 Tube Investments Of India Ltd. 2.4 Aurobindo Pharma Ltd. 2.3 Yes Bank Ltd. 2.3 Bajaj Finance Ltd. 2.2 Axis Bank Ltd. 2.1 Bank - Private 8.9 Pharmaceuticals & Drugs 8.6 Bank - Public 5.8 Finance - NBFC 4.8 Pesticides & Agrochemicals 4.7 IT - Software 4.7 Air Conditioners 4.6 Printing And Publishing 4.3 Engineering - Industrial Equipments 3.9 Carborundum Universal Ltd. 2.1 Indicates an increase or decrease or no change in holding since last profile. About Performance of the Scheme: Other 3.7 Indicates an increase or decrease in holding since last portfolio. Chirag Setalvad, fund manager of HDFC Midcap Opportunities fund has 14 years of experience, of which 11 years in Fund Management and Equity Research and 3 years in investment banking... Tweets of the Month To read the full Information, Click Here Invest in equities as part of long term asset allocation! Not because India is a sweet spot - such stories can get diabetic - Kalpen Equity holding of Indian retail remains close to 2.80% of the household savings ; seem to be participating thru equtiy MF - A Not every stock can perform like Sachin, try SIPs to form a balanced team. - Samir BEFORE PLANNING FOR RETIREMENT KNOW THIS To earn 1 lakh/month taxfree u need 1.6 crores yielding 9%. Equity is MUST! - Srikanth Size of labour force (million) 1. China: 797.6; 2. India: EU: 228; 4. US: 155.4; 5. Indonesia: The Int l 4

6 Readers Corner NINE COMMANDMENTS OF PERSONAL FINANCE I do not have enough money to invest or My expenses do not allow me to save or invest for my goals are commonlyheard statements during conversations on expenses, savings or investment. If these are true, something is surely wrong in the thought process. Any financial expert would suggest Save first and spend later. Yet, this could be tough to follow. To eliminate all confusion, here are 9 commandments that we need to imbibe in our DNA if we wish to reach our financial goals on time: 1) You shall act Reading about how to improve your personal finances is just a start, but has no meaning unless you implement it... 2) You must settle all credit card debt In most cases, credit card debt is the main enemy of your personal finances... 3) Differentiate between wants and needs You should clearly delienate between wants and needs. While needs are necessary expenses, wants are discretionary... 4) You should live on less than you earn Only way to save money is to spend less than you earn or earn more than you spend... To read the full Article, Click Here 5

7 Story of The Month THE WISE MAN AND THE COW There was a Master who had a disciple. The disciple had never seen a cow. He was very curious to find out about cows. He approached his Master and asked Do you know anything about cows? Yes replied the Master. Then would you please explain what a cow looks like? the disciple asked. The Master explained: A cow has four legs. It is a domestic animal which can be found in villages. It gives milk, white in color, which is good for health. The Master gave him a lot more information on the features of a cow. Direct Dil Se The student went to a village and there he saw a statue of a cow. Someone was painting an adjacent compound wall and had left a bucket of white paint water near the statue of the cow. The student saw the cow and observed its features. He finally came to the conclusion that it must be the cow. He also saw the bucket with white liquid near by. This is definitely a cow, so this must be the milk thought the disciple and drank some of it. He soon started screaming with pain and had to be hospitalized. His Master visited him in the hospital, What happened? he asked. Master you don t know anything about cows or their milk the disciple answered. Tell me what happened? the Master asked. The student explained everything. Did you milk the cow yourself or make sure that was milk? asked the Master. No. That s why you are in trouble. The Master replied. MORAL OF THE STORY: One has to experience and not merely follow others blindly. Experience is the best teacher for acquiring any knowledge. Courtesy : Karvy Learning Center 6

8 SIP Performance S&P BSE SENSEX Large-cap Current NAV (`) 3 Year SIP 5 Year SIP Rs Rs Profit-SIP XIRR(%) Profit-SIP XIRR(%) Birla SL Advantage Fund(G) Birla SL Equity Fund(G) Reliance Growth Fund(G) SBI BlueChip Fund-Reg(G) DSPBR Equity Fund-Reg(G) Birla SL Frontline Equity Fund(G) Axis Focused 25 Fund(G) Multi cap Birla SL Pure Value Fund(G) Sundaram Rural India Fund(G) L&T India Value Fund-Reg(G) Birla SL Special Situations Fund(G) Tata Equity P/E Fund(G) Birla SL India GenNext Fund(G) SBI Magnum Multicap Fund-Reg(G) Mid Cap & Small Cap DSPBR Micro-Cap Fund-Reg(G) SBI Small & Midcap Fund-Reg(G) Mirae Asset Emerging BlueChip-Reg(G) Franklin India Smaller Cos Fund(G) Canara Rob Emerg Eq Fund-Reg(G) Birla SL Small & Midcap Fund(G) Reliance Small Cap Fund(G) ELSS DSPBR Tax Saver Fund-Reg(G) L&T Tax Saver Fund(G) IDBI Equity Advantage Fund-Reg(G) Birla SL Tax Relief '96(G) Axis LT Equity Fund(G) Reliance Tax Saver (ELSS) Fund(G) Birla SL Tax Plan(G) Sector ICICI Pru Banking & Fin Serv Fund(G) DSPBR Natural Res & New Energy Fund-Reg(G) Franklin Build India Fund(G) L&T Infrastructure Fund-Reg(G) Reliance Banking Fund(G) Invesco India Banking Fund-Ret(G) UTI Banking Sector Fund(G) Index ICICI Pru Nifty Next 50 Index Fund(G) IDBI Nifty Junior Index Fund(G) GS CNX 500(G) R*Shares CNX 100 ETF IDFC Nifty Fund-Reg(G) As on 03 rd Sep 16 (Funds have been arranged on 3 years performance) 7

9 Category Average Returns Category Diversified Sector Funds Speciality Sub Category 1 Week Return 1 Month Return 3 Month Return 6 Month Return 1 Year Return 3 Year Return 5 Year Return Since Inception Large-cap Mid-cap Multi-cap Small-cap Banks & Financial Services Energy & Power FMCG Infrastructure Media & Entertainment Pharma & Health Care Service Industry TECk Contra Dividend Yield Index - Nifty Index - Sensex MNC Equity Exchange Traded Funds Equity Linked Savings Scheme Arbitrage Funds Debt-Oriented Equity-Oriented Asset Allocation Balanced Funds Debt-Oriented Equity-Oriented Category Capital Protection Funds Monthly Income Plans Fund Of Funds Debt-Oriented Equity-Oriented Hybrid-Oriented Gold - FOF Gold Exchange Traded Funds Income Gilt Floating Rate Speciality- Debt Long Term Medium Term Short Term Long Term Medium Term Short Term Long Term Floating Rate Med Term Floating Rate Short Term Floating Rate Interval Funds - Half Yrly Interval Funds - Monthly Interval Funds - Quarterly Interval Funds - Yearly Liquid Ultra Short Term Plan Returns are as on 03 rd Sep 16 8

10 Fixed Deposits Schemes FD Name Rating Industry Interest Rate * (Up to) Bajaj Finance Ltd. FAAA by CRISIL ICRA MAAA Bajaj Finserv is the most diversifed non-bank in the country, the largest financier of consumer durables in India and one of the most profitable firms in the category. 8.70% DHFL Aashray Deposit Plus CARE AAA FD, BWR FAAA Dewan Housing Finance Ltd (DHFL) is the second housing finance company to be set up in the private sector in India. 9.15% Gruh Finance Ltd. MAAA by ICRA, FAAA by CRISIL GRUH Finance Ltd is subsidiary of HDFC Ltd is housing finance company (HFC) recognized by National Housing Bank. 8.25% HDFC Ltd. FAAA by CRISIL, MAAA by ICRA A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 4.9 million customers to own a home of their own. HDFC is the Largest mobiliser of public deposits outside the banking system and the HDFC Group has a strong asset base of over Rs.2.97 trillion and a customer base of over 42.5 million. 8.30% HUDCO taa+(ind) by FITCH, CARE AA+(FD) by CARE HUDCO is a premier techno-financing company set up in 1970 by the Government of India to accelerate the pace of housing and urban development in the country. 7.80% ICICI Home Finance Ltd CARE FAAA, ICRA MAAA ICICI Home Finance Company Limited is one of the leaders in the Indian mortgage finance and realty space. 8.85% LIC Housing Finance Ltd. FAAA / STABLE by CRISIL One of India s largest housing finance companies, having nation-wide network. Consistent record of dividend payments. 8.50% Mahindra & Mahindra Financial Services Ltd CRISIL FAAA Mahindra and Mahindra Financial Services Limited (MMFSL) commenced its journey two decades back in the rural non-banking finance industry. 8.70% PNB Housing Finance Ltd. FAAA by CRISIL PNB Housing Finance (PNBHF) is a subsidiary of Punjab National Bank and a partner of Destimoney Enterprises Pvt. Ltd. PNBHF was incorporated in 1988 and is based in New Delhi. 8.50% Shriram City Union Finance Ltd. IND +AA- CARE AA FD As a deposit-accepting non-banking financial company (NBFC), Shriram City is today India s premier financial services company specializing in retail finance. 9.00% Shriram Unnati Deposits FAAA/Stable by CRISIL, MAA+/Stable by ICRA With a track record of about 30 years in this business, STFC is among the leading organized finance provider for the commercial vehicle industry 9.00% Sundaram Home Finance Ltd. ICRA MAA+ Sundaram BNP Paribas Home Finance combines its expertise in Home Finance with the Service Orientiation of its promoter Sundaram Finance. 8.75% * highest rate including additional interest for Senior citizens, employees etc. wherever applicable 9

11 Equity Funds Performance Scheme Name Diversified Latest NAV (`) Absolute CAGR 1 Year 3 Year 5 Year SINCE INCEPTION DSPBR Micro-Cap Fund-Reg(G) UTI Transportation & Logistics Fund(G) Reliance Small Cap Fund(G) Franklin India Smaller Cos Fund(G) Canara Rob Emerg Eq Fund-Reg(G) ELSS Reliance Tax Saver (ELSS) Fund(G) Axis LT Equity Fund(G) DSPBR Tax Saver Fund-Reg(G) Birla SL Tax Relief '96(G) Invesco India Tax Plan(G) Sector Franklin Build India Fund(G) ICICI Pru Banking & Fin Serv Fund(G) L&T Infrastructure Fund-Reg(G) Reliance Banking Fund(G) HDFC Infrastructure Fund(G) Dividend Yield BNP Paribas Dividend Yield Fund(G) Tata Dividend Yield Fund(G) Birla SL Dividend Yield Plus(G) Principal Dividend Yield Fund(G) HSBC Dividend Yield Equity Fund(G) Global Birla SL Intl. Equity Fund-B(G) MOSt Shares NASDAQ-100 ETF ICICI Pru US Bluechip Equity Fund(G) Franklin Asian Equity Fund(G) Birla SL CEF-Global Agri-Reg(G) Equity Index ICICI Pru Nifty Next 50 Index Fund(G) IDBI Nifty Junior Index Fund(G) GS CNX 500(G) R*Shares CNX 100 ETF HDFC Index Fund-Sensex Plus(G) Equity FOF Kotak Asset Allocator Fund(G) Franklin India Life Stage FOFs-20(G) Birla SL Asset Allocator Multi FoF(G) Birla SL Financial Planning FOF Aggressive Plan(G) Franklin India Life Stage FOFs-30(G) (Funds has been arranged on the basis of 3 years performance) 10

12 Debt Funds Performance Scheme Name Gilt Funds Latest NAV (`) Absolute CAGR 1 Year 3 Year 5 Year SINCE INCEPTION ICICI Pru Gilt-Invest-PF(G) HDFC Gilt-Long Term Plan(G) Birla SL Gilt Plus-PF(G) Reliance Gilt Securities Fund(G) SBI Magnum Gilt-LTP-Reg(G) Income ICICI Pru Long Term Plan(G) Birla SL Dynamic Bond Fund-Ret(G) ICICI Pru Income(G) HDFC High Interest Fund-Dynamic Plan(G) ICICI Pru Income Opportunities Fund(G) Hybrid Funds Performance Scheme Name Balanced Latest NAV (`) Absolute CAGR 1 Year 3 Year 5 Year SINCE INCEPTION ICICI Pru Child Care Plan-Gift Plan HDFC Balanced Fund(G) HDFC Prudence Fund(G) Tata Balanced Fund(G) Franklin India Balanced Fund(G) MIP SBI Magnum Children Benefit Plan ICICI Pru Child Care Plan-Study Plan Birla SL MIP II-Wealth 25(G) HDFC MIP-LTP(G) ICICI Pru MIP 25(G) Arbitrage ICICI Pru Blended-B-I(G) Kotak Equity Arbitrage Scheme(G) ICICI Pru Equity-Arbitrage Fund(G) IDFC Arbitrage Fund-Reg(G) SBI Arbitrage Opportunities Fund-Reg(G) Gold-FOF Birla SL Gold Fund(G) ICICI Pru Regular Gold Savings Fund(G) Axis Gold Fund(G) HDFC Gold Fund(G) Invesco India Gold Fund(G) (Funds has been arranged on the basis of 1 year performance) 11

13 Global Markets at a Glance Exhibit: Nifty Exhibit: INR Exhibit: India 10 Yr Yld % Exhibit: S&P 500 2,200 2,190 2,180 2,170 2,160 Exhibit: Dollar Index Exhibit: US 10 Yr Yld % Exhibit: Euro Stoxx 50 Exhibit: Eur Exhibit: Germany 10 Yr Yld % Exhibit: Nikkei Exhibit: JPY Exhibit: Japan 10 Yr Yld % Exhibit: Shanghai Exhibit: CNY Exhibit: China 10 Yr Yld % Source: Bloomberg, Karvy Research 12

14 Indices Watch Indian Indices: Index Name As on 29-Jul-16 As on 03-Sep-16 % Change S&P BSE Capital Goods % S&P BSE BANKEX % S&P BSE Power Index % S&P BSE PSU % S&P BSE DOLLEX % S&P BSE AUTO Index % S&P BSE SENSEX % S&P BSE % S&P BSE % S&P BSE % S&P BSE O & G Index % S&P BSE METAL Index % S&P BSE Mid-Cap % S&P BSE GREENEX % S&P BSE Small-Cap % S&P BSE TECk Index % S&P BSE Consumer Durables % S&P BSE IT % S&P BSE Health Care % S&P BSE FMCG % S&P BSE Realty Index % Global Indices: Index Name As on 29-Jul-16 As on 03-Sep-16 % Change Bovespa % CAC % Dow Jones % Hang Seng % BEL % Nasdaq % Nikkei % S&P % Taiwan Weighted % All Ordinaries % Index Name As on 29-Jul-16 As on 03-Sep-16 % Change NIFTY FMCG % NIFTY MEDIA % NIFTY COMMODITIES % NIFTY % Nifty 500 Shariah index % NIFTY PSE % NIFTY DIV OPPS % NIFTY FINANCE % NIFTY IT % NIFTY REALTY % Nifty Midcap % INDIA VIX % NIFTY % NIFTY SERV SECTOR % NIFTY % NIFTY INFRA % NIFTY PHARMA % NIFTY METAL % NIFTY PSU BANK % NIFTY % NIFTY % NIFTY CONSUMPTION % NIFTY BANK % NIFTY ENERGY % For more information on MUTUAL FUNDS call or contact your nearest Karvy branch. Research Team PF/MFNL/ /34 Ankit Choradia ankit.choradia@karvy.com Phone : Production: Naga Babu K Disclaimer The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. This report is intended for a restricted audience and we are not soliciting any action based on it. 13