MONTHLY MEET - JANUARY 2017
AGENDA Flash back - 2016 Market Update MARS Performance Debt Opportunity Knowledge Bytes Focus Product of the Month - CPSE ETF ELSS - Business Opportunity Contest Update PBC and Carnival
FLASH BACK 2016
MUTUAL FUND INDUSTRY PERFORMANCE IN 2016 PARAMETERS DEC -15 DEC- 16 GROWTH(%) MF Industry - AUM (Lakh Cr.) R 13.49 R 16.94 25.57% R 4.38 R 5.26 20.09% MF Industry - Equity AUM (Lakh Cr.) Source: AMFI 2016 was great year for mutual fund industry as awareness and acceptance of mutual fund has increased
NJ WEALTH PERFORMANCE IN 2016 PARAMETERS DEC -15 DEC- 16 GROWTH(%) Total AUM (Cr.) R 25,953 R 34,000 31.01% Equity AUM (Cr.) R 20,904 R 26,814 28.27%
NEW DEVELOPMENT IN 2016 March -2016 April -2016 May -2016 Business Planning Tool Partner Initiated Transactions June -2016 LAUNCHED NEW NJ PMS STRATEGY NJ DYNAMIC STOCK ALLOCATION PORTFOLIO (DSAP) June -2016 NJ BUSINESS INTELLIGENCE INITIATIVES DESIGN CAMPAIGNS TO GENERATE BUSINESS
NEW DEVELOPMENT IN 2016 July -2016 E-SIGN Nov -2016 instaacash Dec - 2016 All Trail Model for Silver Partners Dec -2016
INDIAN MARKET UPDATE
MARKET UPDATE INDEX 1 YEAR 2 YEAR 3 YEAR S&P BSE SENSEX 2.0-1.6 7.9 S&P BSE SMALL CAP 1.8 4.2 22.5 S&P BSE MIDCAP 8.0 9.0 20.2 Data as on 31st Dec 16 Indian Equity market was so much volatile in CY 2016 due to events at global and domestic market
MF PERFORMANCE MUTUAL FUND PERFORMANCE 1 YEAR OUT PERFORM 2 YEAR OUT PERFORM Avg performance of Diversified Equity Funds 4.1 2.1 3.9 5.5 Avg performance of Balanced Funds 6.6 4.6 4.9 6.5 Avg performance of ELSS 3.5 1.6 2.8 4.4 S&P BSE SENSEX 2.0-1.6 Data as on 31st Dec 16 SENSEX HAS GIVEN NEGATIVE RETURNS BUT MUTUAL FUNDS HAVE POSITIVE RETURNS
NJ STAR FUNDS (OCT DEC 16) - PERFORMANCE Largecap Category Schemes DSP BlackRock Opportunities Fund - Gr SBI Blue Chip Fund - Gr Kotak Opportunities Fund - Gr Kotak Select Focus Fund - Gr Mirae Asset India Opportunities Fund - Gr Axis Focused 25 Fund - Gr Motilal Oswal MOSt Focused 25 Fund - Gr Birla Sun Life Frontline Equity Fund - Gr DSP BlackRock Focus 25 Fund - Gr Reliance Top 200 Fund - Gr S&P BSE SENSEX Data as on 31st Dec 16 1 Year 10.2 4.5 8.9 8.7 7.7 4.2 1.1 7.0 4.8 1.8 2.0 2 Year 8.4 6.3 6.3 6.2 6.0 4.3 4.2 4.1 4.0 1.6-1.6
NJ STAR FUNDS (OCT DEC 16) - PERFORMANCE Blend Category Schemes L&T India Value Fund - Gr Birla Sun Life Equity Fund - Gr Principal Emerging Bluechip Fund - Gr SBI Magnum Multicap Fund - Gr Birla Sun Life Special Situations Fund - Gr Birla Sun Life Advantage Fund Gr SBI Magnum Multiplier Fund - Div Invesco India Contra Fund - Gr Reliance Growth Fund Gr HDFC Core and Satellite Fund - Gr S&P BSE SENSEX Data as on 31st Dec 16 1 Year 7.1 14.9 10.3 5.1 6.7 8.0-0.3 6.1 3.0 1.2 2 Year 10.2 8.8 8.5 7.5 7.4 6.8 5.5 5.3 4.8 3.4 2.0-1.6
NJ STAR FUNDS (OCT DEC 16) - PERFORMANCE Midcap Category Schemes 1 Year 2 Year DSP BlackRock Micro Cap Fund - Gr 11.8 16.0 Mirae Asset Emerging Bluechip Fund - Gr 11.6 12.8 Birla Sun Life Small and Midcap Fund - Gr 8.8 11.2 L&T Midcap Fund - Gr 8.7 9.8 Reliance Small Cap Fund - Gr 4.6 9.8 Kotak Emerging Equity Scheme - Gr 9.7 9.3 DSP BlackRock Small and Mid Cap - Reg Gr 10.2 9.0 HDFC Mid Cap Opportunities Fund - Gr 10.6 8.3 Birla Sun Life Pure Value Fund - Gr 7.7 6.3 Reliance Mid & Small Cap Fund - Gr 2.1 5.3 S&P BSE MIDCAP 8.0 9.0 Data as on 31st Dec 16
NJ STAR FUNDS (OCT DEC 16) - PERFORMANCE Balanced Funds 1 Year 2 Year L&T India Prudence Fund - Gr 4.3 7.1 DSP BlackRock Balance Fund - Gr 8.3 6.5 Reliance Regular Savings Fund Balance Plan - Gr 4.2 6.4 HDFC Balanced Fund Gr 9.7 6.3 Birla Sun Life Balanced 95 Fund - Gr 8.9 6.1 S&P BSE SENSEX 2.0-1.6 Data as on 31st Dec 16
MARS PERFORMANCE
MARS : JOURNEY of 3 YEARS MARS AUM: 1000 CR + MARS INVESTORS: 22000+
MARS PERFORMANCE MARS PORTFOLIO 1 YEAR DAA-AGGRESSIVE 14.4 Nifty 500 3.8 FAA E100 7.2 Nifty 500 3.8 OUTPERFORM 10.5 3.4 2 YEAR OUTPERFORM 11.4 1.5 6.8 1.5 9.9 5.3 3 YEAR 20.0 12.4 21.0 12.4 OUTPERFORM 7.6 8.6 Performance as on 31 Dec 16, Inception Date 16 Dec 13 MARS Dynamic Asset Allocation Aggressive has outperformed by 7.6% CAGR with only 54% equity exposure in 3 years
MARS UNDERLYING EQUITY SCHEMES MARS EQUITY SCHEMES 1 YEAR 2 YEAR 3 YEAR Invesco India Contra Fund - Gr 6.7 5.4 21.9 Kotak Select Focus Fund - Gr 9.4 6.2 21.2 Mirae Asset India Opportunities Fund - Gr 8.1 6.2 19.9 Motilal Oswal MOSt Focused Multicap 35 Fund - Gr 8.5 11.5 NA SBI Magnum Multicap Fund - Gr 5.8 7.8 21.9 MARS Equity Portfolio (E100) 7.2 6.8 21.0 NIFTY 500 3.8 1.5 12.4 Performance as on 31 Dec 16, Inception Date 16 Dec 13
DEBT OPPORTUNITY
WHY YOU SHOULD SELL DEBT FUNDS? Better Tax Effective Returns than Bank Saving Deposits Opportunity to tap >15 Lakh Cr lying in Banking System Instaa Cash is better alternative against Saving Accounts for short term investment Debt funds are better alternative against Bank FD for medium term investment Opportunity to acquire New Clients Reliance Regular Saving fund - Debt is an ideal product against bank deposits
RELIANCE REGULAR SAVING FUND - DEBT RRSF-DEBT OFFERS STABLE RETURNS + TAX EFFECTIVE RETURNS + 3 YEAR FD RATES: 7.5% RRSF DEBT NET YTM: 8.5% DIFFERENCE: 1% ALTERNATE TO LOW VOLATILITY
RRSF - DEBT CONSISTENT PERFORMANCE RRSF-DEBT PERFORMANCE 1 Year 2 Years 3 Years 5 Years 10.01 9.39 9.92 9.46 Performance as on 30th Dec 16
KNOWLEDGE BYTES UNDERSTANDING ETF (EXCHANGE TRADED FUND)
ETF (EXCHANGE TRADED FUND) An Exchange Traded Fund (ETF) is primarily a mutual fund scheme which is listed and traded on a stock exchange. An ETF can invest in: Equities - replicating the composition and performance of an equity index (e.g. Nifty 50 Index, Nifty Next 50 Index) Commodities - tracking the actual price of a commodity (e.g. Gold) Money market instruments - which include short-term government securities and call money Debt Instruments maturity - Government securities with long
ADVANTAGES OF ETF
WHY INVEST VIA AN ETF?
ETF MARKET Source : MFI Explorer *Average AUM for the Quarter. ** Month end AUM (For other periods AUM is Average AUM for Month). Latest Available
FOCUS PRODUCT FOR THE MONTH CPSE ETF (EXCHANGE TRADED FUND) MANAGED BY RELIANCE MUTUAL FUND
WHAT IS CPSE ETF? CPSE ETF New Fund Offer (NFO) was first launched in March 2014 CPSE ETF was launched in order to facilitate GOI s (Government of India) initiative to dis-invest some of its stake in selected CPSEs through the innovative ETF route The ETF is based on Nifty CPSE index. The Nifty CPSE Index includes 10 listed Central Public Sector Enterprises: Selection Criteria: Having more than 55% government holding and Having average free float market capitalization of more than R1,000 crore for six month period ending June 2013 Having paid dividend of not less than 4% including bonus for 7 yrs immediately preceding or for at least seven out of the eight or nine years immediately preceding, are considered as eligible companies as on cut-off date i.e.28-jun-2013
CPSE ETF - PORTFOLIO & INDUSTRY ALLOCATION Note: Portfolio & industry allocation data as on November 30, 2016. Source: RMF Internal
CPSE ETF NFO BACKGROUND Government of India (GOI) used innovative route to divest its holding in CPSEs via ETF New Fund Offer (NFO) was first launched in March 2014 GOI offered upfront NFO discount of 5% on the underlying Nifty CPSE Index shares to all categories of investors Loyalty units in the ratio of 1:15 loyalty unit was provided to every eligible Retail investor amounting to an additional discount of ~6.66% NFO received overwhelming response; NFO collection was Rs.4,363 Crs, out of which R1,363 Crs was refund to investors due to limited issue size of R3,000 Crs Participation across various categories of investors Units of CPSE ETF were listed on 04th April 2014 on NSE & BSE
Nifty CPSE Index Vs Other Broad Indices - Valuations Data as 30h Nov 2016. Source: www.nseindia.com
CPSE ETF - FEATURES The Scheme is in compliance with the provisions of Rajiv Gandhi Equity Savings Scheme, 2013 ('RGESS')
CPSE ETF - PERFORMANCE PARTICULARS Allotment Date Current Date Number of Days Initial investment Allotment price per unit (post 5% discount) No. of units No. of loyalty units (1:15 retail category) Total no. of units available Current NAV (30th Dec 2016) Current portfolio value Point To Point Return CAGR Return Performance as on 30th Dec 16 CPSE ETF 28/03/2014 30/12/2016 1,008 100,000 17 5,731 382 6,113 25 154,736 54.74% 17.13% Nifty TRI Index 28/03/2014 30/12/2016 1,008 100,000 8,729 11 NA 11 11,040 126,479 26.48% 8.88%
FFO WILL BE LAUNCHED ON 18th - 20th JAN 2017
E-WEALTH AC ONLINE PURCHASE Log in E wealth AC > Mutual Fund > NFO Transaction > NFO Purchase
NFO Switch NFO Switch - 1 NFO Switch - 2 Select the Scheme for switch out NFO Switch
NFO Switch - 3 NFO Switch - 4 Select Check Box NFO - Switch If the units are in demat mode then select demat check box as shown else it will show as partial if the units are in physical mode. If the units are in demat mode then T day option of switch will be available Else it will be funds realisation option.
WHY YOU SHOULD SELL THIS ETF? Better Return High Probability of Full Allotment to retail investors Win Client Trust A great opportunity to acquire new clients and open more E-Wealth Accounts Park client investment in either in instaa cash or any liquid scheme immediately so that same can be switched in to CPSE ETF NFO. Brokerage details will be shared shortly
ELSS - GREAT BUSINESS OPPORTUNITY
ELSS PERFORMANCE Tax Saving Scheme (ELSS) Reliance Tax Saver Fund DSP BlackRock Tax Saver Fund Axis Long Term Equity Fund Birla Sun Life Tax Relief 96 Kotak Tax Saver Regular Plan Birla Sun Life Tax Plan Invesco India Tax Plan Principal Tax Savings Fund L&T Tax Advantage Fund SBI Magnum Taxgain Scheme S&P BSE Sensex Performance as on 30th Dec 16 3 year 22.8 20.9 20.8 20.4 19.5 19.5 19.1 17.7 17.2 16.3 7.9 Outperform 14.9 13.0 12.8 12.4 11.6 11.5 11.1 9.7 9.3 8.3 5 year 22.8 21.4 22.3 21.0 16.9 20.3 19.3 21.0 17.0 17.7 11.5 Outperform 11.3 9.9 10.8 9.5 5.4 8.8 7.9 9.5 5.5 6.2
ELSS BUSINESS OPPORTUNITY With increased income disclosure and higher number of taxpayers in the year, ELSS is all set to attract large investments With end of Financial year approaching, it is best time to approach clients for ELSS ELSS is only attractive investment option under sec 80C as interest rate falls and Excellent ELSS performance Great opportunity to acquire new clients Great opportunity to complete PBC and Carnival Great opportunity to qualify L& T Winter Bonanza Contest
CONTEST UPDATE
(Only for New Partners enrolled on or after 1 April 2015)
Refer Contest One Pager for Details
LNT MUTUAL FUND CONTEST Refer Contest One Pager for T&C
650 PARTNERS HAVE ALREADY QUALIFIED FOR PBC 2016 GOA
EASY WAY TO QUALIFY PBC Check your PBC Points from your partner desk Sit with your UM and do planning for remaining points in remaining month Easy way to qualify for PBC: New E Wealth Account Opening through ESIGN MARS Instaa Cash HURRY!! LAST 3 MONTHS TO BOOK YOUR PBC TICKET
68 PARTNERS ALREADY QUALIFIED IN CARNIVAL
CONCLUSION Debt fund is very good option against FD and clients are looking for good investment products as their funds are ideal lying in a bank. Instaa Cash and RRSF-Debt is ideal product for these types of conservative clients CPSE ETF is very good business opportunity to acquire new clients Focus on E-Wealth + MARS + Instaa cash to complete PBC MARS has completed 3 years and performed well in all scenarios. Now time to advise MARS aggressively to your clients. Birla Emerging star contest is good opportunity for New partners to visit NJ HO and interact with NJ and AMC stalwarts Complete shortfall of CARNIVAL and other contests
NEW PRODUCTS IN
REFERENCE GUIDE - INVESTMENT AVENUES NJ bizmall presents REFERENCE GUIDE INVESTMENT AVENUES, AN ALL IN ONE KIT which includes leaflets of Mutual fund, SIP, Bonds, Diversified Fund, Balanced fund & many more for existing as well as new client meetings. Specifications: Size: 5.5 (W) x 8.5 (H) Inch Reference leaflets - 130 GSM Paper Folder jacket: 300 GSM Paper with Lamination Colour: Multi colour Language: English Multi colour details on STICKER on all reference leaflets & jacket COST: R 2,950/25 qty R 10,000/100 qty
ELSS FLYER ELSS (INVEST SMART) COST: PRINTSHOP PPF VS ELSS (BETTER RETURN) COST: BULKSHOP Multi Colour Single Colour Multi Colour Single Colour R 1,000/1,000 qty R 1,500/2,000 qty R 8,000/10,000 qty R 3,000/5,000 qty
PPF VS ELSS CONCESSIONAL FLYERS AVAILABLE FOR LIMITED PERIOD ONLY PPF VS ELSS HDFC (CONCESSIONAL) Multi Colour PPF VS ELSS RELIANCE (CONCESSIONAL) Single Colour COST: COST: R 2,000/5,000 qty R 1,500/5,000 qty