Fund Review October 2010 0
Equity Commentary Moving into the second half of the year, the macros look compelling. Not so the sentiment of the investor who has seen the Index at 20,000 only the second time around. This time we are seeing him react exactly the opposite way. Money is moving out of equities as an asset class. Consider the MF data since 2006. In 2006 and 2007 the Industry mobilized a cumulative Rs65,000 cr. In the last three years cumulatively, the Industry has lost Rs5,962 cr. The investor has virtually abandoned the domestic capital market. Three years of income plus a 10% growth in wage income has not found its way into equities. The other extreme is the improving macroeconomic picture. We as a country seem to be for the first time running a fiscal deficit below the planned number. This is due to steady growth in tax collections, the success of the telecom license auctions and the disinvestment programme. We should see a surplus of another Rs150,000cr getting added to the Government coffers. A back of the envelope calculation suggest that we should see the fiscal deficit at 4.2% as against the budgeted 5.5%. Actuals Revised Budget Likely Budget projections projections Apr-Aug 2010 2010-11 Comments Rs.cr 2008-09 2009-10 2010-11 Projcted Net Tax Revenue to 443,319 465,103 534,094 14.8% 25.0% 29.6% 581379 center Non Tax Revenues 96,939 112,191 148,118 223,118 Capital 291,101 449,833 426,538 426,538 Receipts Non Debt Capital 6,705 30212 45129 65129 Receipts Debt Receipts 284396 419621 381409 Draw down of cash 52,596-5,581 balance Receipts 883,955 1,021,546 1,108,750 Add Rs 75000cr 3g Divestment upside Expenditure 883,956 1,021,547 1,108,749 8.5% 15.00% 1,174,779 DA,CWG,NREG Fiscal Deficit 336,993 414,041 381,408 305,153 Fiscal Deficit % GDP 6.0% 6.7% 5.5% 4.2% GDP 5574449 6164178 6934700 7196678 Nominal GDP Growth 10.6% 12.5% 16.75% Now we run the risk of improved fiscal numbers low ownership of equities a vibrant primary market that should pull in more interest from foreign inflows. YTD FII inflows into equities have been $19.25 and October should surprise with the primary issuances. We have entered a phase where valuation risk is now on execution of growth. In the past we have faltered on execution which is always the biggest risk in an emerging market. To sum it up valuation though they look expensive they are nowhere close to their previous peaks, earnings upgrades don t seem to have run their complete course and the macro data is still improving. Source : CCIL Bloomberg Yield Curve 9.00% 8.00% 7.00% 6.00% 1000 800 600 400 31st August 2010 30th September 2010 1 5 10 30 Net Equity Investments by FII & MFs (US $ Million for the Month) 1200 20400 20000 19600 19200 18800 Debt Commentary Inflation will force the RBI (Reserve Bank of India) to continue to hike policy rates in order to first normalize monetary policy and then to tighten it. The RBI has raised the reverse repo rate by 175bps and the repo rate by 125bps over the last eight months on the back of inflation expectations trending higher than forecast. Inflation as measured by the WPI (Wholesale Price Inflation) has been sticky at higher levels, despite a revision of the index forcing the RBI to hike policy rates faster than expected. The current trends in domestic primary article prices and global commodity prices indicate that inflationary pressures are still high. Primary article inflation is trending at over 16% levels while prices of metals and oil in the global market are trending higher due to a weakening US Dollar. The US Dollar index has fallen by over 5% on expectations of further monetary easing by the US Federal Reserve on the back of weak US economic data. The RBI is not likely to slow down the pace of rate hikes until they see signs of inflationary pressures cooling off. The slow growth in bank deposits (trending at around 14.5% levels year on year) is forcing banks to raise deposits rates. Usually, October and November witness a higher credit offtake to coincide with the harvest and festive seasons. Banks will be forced to raise deposit growth to fund the credit offtake and this will lead to higher rates at the short end of the curve. Higher policy rates coupled with higher demand for money will keep money markets pressured and cost of borrowing for corporate will go up. The credit curve upto five years of maturity will underperform in such market conditions. Government bonds will not react much to policy rate hikes and will instead focus on the demand supply scenario. The government is scheduled to borrow Rs 163,000 crores in the October-March period and most of this borrowing will be completed by end of December 2010. The calendar while not light in itself is relatively lighter than the packed calendar seen in the first six months of this fiscal where the government bond auctions averaged over Rs 45,000 crores per month. The Rs 163,000 crores of borrowing for the second half of this fiscal is Rs 10,000 crores lower than budgeted. The government has raised FII limit for government bonds by USD 5billion to USD 10 billion. The higher limit is for bonds of tenors of over five years and if this limit gets filled the domestic market will have to absorb that much less in the auctions. The lower borrowing plus the FII buying could see healthy demand for government bonds leading to yields remaining stable to positive. Liquidity as measured by bids for reverse repo/ repo in the LAF (Liquidity Adjustment Facility) of the RBI tightened in September. Bids for repo at 6% averaged Rs 30,200 crores against Rs 6,000 crores in August. Liquidity is unlikely to ease significantly in October due to seasonal demand for funds. Market Indicators Security 30th September 2010 31st August 2010 Month on Month Change Basis Points (bps). Yield % Yield % Policy Rates Reverse Repo Rate 5.00 4.50 50 Repo Rate 6.00 5.75 25 Cash Reserve Ratio (CRR) 6.00 6.00 0 Liquidity Average Reverse Repo RsCrores 5100 5158-58 Average Repo Rscrores 30200 6159 24041 Average Call Rate % 5.6 5.3 30 Government Securities 91 Day T-Bill 6.25 6.2 5 364 Day T-Bill 6.7 6.5 20 Five Year Benchmark 7.7 7.67 3 Ten Year Benchmark 7.85 7.93-8 Currency USD/INR Rs 44.86 47.07 5% Inflation (% Change Year on Year) Month Ended 30 th June 2010 Month Ended 31 st May2010 WPI 8.51 9.78 Corporate Bonds 5 Year AAA Benchmark 8.50 8.55-5 3 Month CD Benchmark 7.15 7.15 0 1 Year CD Benchmark 8.15 7.8 35 Interest Rate Swaps 1 Year OIS* 6.48 6.13 35 5 Year OIS* 7.04 6.96 8 * Overnight Index Swap Source : RBI, CCIL, Bloomberg 200 0-200 -400 Source : SEBI 01-Sep-10 02-Sep-10 03-Sep-10 06-Sep-10 07-Sep-10 08-Sep-10 09-Sep-10 13-Sep-10 14-Sep-10 15-Sep-10 16-Sep-10 17-Sep-10 20-Sep-10 21-Sep-10 22-Sep-10 23-Sep-10 24-Sep-10 27-Sep-10 28-Sep-10 29-Sep-10 30-Sep-10 FIIS MF Sensex 18400 18000 17600 17200 1
IDFC Classic Equity Fund (IDFC - CEF) An Open Ended Equity Fund Nature: Equity Average AUM: ` 275.07 Crore Fund Manager: Tridib Pathak Investment objective: The investment objective of the scheme is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style: The Scheme seeks to achieve outperformance through sector rotation, theme selection, market cap bias and bottom up stock picking. Ideal investment horizon: 3 years or more Entry load : (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount ( Plan A & Plan B): `5,000 & in multiples of `1 Additional investment amount: `1 SIP (minimum amount) ( Plan A & Plan B): `1000 Inception Date (Plan A): 9 August 2005 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.87 R Square 0.95 Standard deviation 8.74% Last 3 dividends (`/ unit): 22-Aug-06 1.5 NAV 11.558 28-May-07 1.5 NAV 13.2659 22-Oct-07 1.5 NAV 15.2703 Growth (A) 22.7553 (B) 18.0923 Dividend (A) 16.4653 (B) 14.6003 Face value (`/ unit) : 10 Asset allocation (equity / debt / cash/derivatives): 91.70% /2.26% /8.20%/0.10% Fund manager s comment: Run as a well-diversified portfolio, the opportunity for the fund is to capture the breadth of the market across sectors, market capitalizations, styles and themes. The fund has reduced exposure to midcaps to around 20% and has maintained higher diversification across sectors. Data as of 30 September 2010 Name in Lac(`) % of NAV ICICI Bank Ltd. 1268.71 4.71 Mphasis Ltd. 1162.58 4.32 Oil & Natural Gas Corporation Ltd. 1091.44 4.05 Jindal Steel & Power Ltd. 978.13 3.63 Corporation Bank 935.48 3.47 Manappuram General Finance and Leasing Ltd. 933.23 3.46 Bharti Airtel Ltd. 915.75 3.40 Bank of Baroda 897.64 3.33 Bharat Heavy Electricals Ltd. 888.59 3.30 Jet Airways (India) Ltd. 875.70 3.25 Mahindra & Mahindra Ltd. 814.06 3.02 Rural Electrification Corp Ltd. 809.13 3.00 Lanco Infratech Ltd. 774.00 2.87 Axis Bank Ltd. 771.37 2.86 Bajaj Auto Ltd. 765.08 2.84 Top 15 Stocks 13880.88 51.53 Other Equities 10820.21 40.17 Futures 608.00 2.26 Derivatives 27.19 0.10 Net Asset 2207.68 8.20 Grand 26935.96 100.00 SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 49000 88302 14.97% 18.02% 3 year 36000 47873 20.48% 25.67% 2 year 24000 33903 40.48% 49.22% 1 year 12000 13725 32.95% 36.33% Fund Performance under the IDFC-CEF-Growth 18.48 23.71% 27.54% 10.79 12.79% 12.56% 14.21% 15.05% 18.39% 20.79% 15.24% 18.16% 17.37% 20.07% 1.61 1.98 2.11 2.50 2.63 2.74 3.00 3.25 3.40 3.46 3.63 4.05 4.54 5.64 5.76 5.86 6.26 6.08% 3 month 6 month Benchmark : BSE 200 3.54% 1 year 2 year 3 year 5 year IDFC-CEF Growth BSE 200 Since Allotment (09/08/2005) Consumer Durables Trading Petroleum Products Cement Retailing Pharmaceuticals Finance Transportation Telecom - Services Miscellaneous Ferrous Metals Oil Industrial Products Construction Project Industrial Capital Goods Auto Consumer Non Durables Software Banks 2
IDFC Imperial Equity Fund (IDFC - IEF) An Open Ended Equity Fund Data as of 30 September 2010 Nature: Equity Average AUM: ` 541.47 Crore Fund Manager: Mr.Tridib Pathak (w.e.f.26 April 2010) Investment objective: The investment objective is to seek to generate capital appreciation and/or provide income distribution from a portfolio of predominantly equity and equity related instruments. There is no assurance or guarantee that the objectives of the scheme will be realized. Investment style: The Scheme seeks to invest predominantly in companies based on the potential value unlocking (subsidiary listing), strong growth in domestic demand and emerging sectors in the Indian economy. Ideal investment horizon: 3 years or more Entry load : (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All Investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009). In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount (Plan A & Plan B): `5,000 Additional investment amount: `1 SIP (minimum amount) (Plan A & Plan B): `1,000 Inception Date (Plan A): 16 March 2006 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.86 R Square 0.96 Standard deviation 8.24% Last 3 dividends (`./ unit): 8-Jun-09 1.2 NAV 12.4523 15-Jun-09 1.2 NAV 12.0942 14-May-08 1.5 NAV 13.9431 Growth (A) 20.5516 (B) 17.7093 Dividend (A) 16.9878 (B) 16.3454 Face value (`/ unit): 10 Asset allocation (equity/debt /cash/derivatives): 90.35% /3.04% / 9.55% /0.11% Fund manager s comment: Imperial fund is a diversified large cap biased fund. The portfolio construction has revolved around selecting well established companies which have high capital efficiency or are moving towards improving their capital efficiency further and are available at reasonable valuations. Name in Lac(`) % of NAV ICICI Bank Ltd. 3955.87 7.57 Mphasis Ltd. 2614.25 5.00 Oil & Natural Gas Corporation Ltd. 2557.43 4.90 Bharat Heavy Electricals Ltd. 2490.89 4.77 Bank of Baroda 2476.43 4.74 Jindal Steel & Power Ltd. 2392.27 4.58 I T C Ltd. 2307.20 4.42 Rural Electrification Corp Ltd. 2067.11 3.96 Larsen & Toubro Ltd. 1880.69 3.60 Bajaj Auto Ltd. 1857.95 3.56 Adani Enterprises Ltd. 1845.90 3.53 Axis Bank Ltd. 1805.51 3.46 HDFC Bank Ltd. 1767.44 3.38 Reliance Industries Ltd. 1756.60 3.36 Indian Oil Corporation Ltd. 1751.20 3.35 Top 15 Stocks 33526.74 64.18 Other Equities 13669.98 26.17 Futures 1587.00 3.04 Derivatives 55.18 0.11 Net Asset 4988.25 9.55 Grand 52240.16 100.00 SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 48000 81875 19.29% 17.07% 3 year 36000 49991 23.77% 23.29% 2 year 24000 33607 39.34% 44.00% 1 year 12000 13646 31.36% 37.46% 22.07 11.03 6.62 6.71 6.82 2.66 3.33 3.53 3.60 3.96 4.58 4.77 4.90 4.93 0.84 Fund Performance under the IDFC-IEF-Growth 10.67% 13.50% 12.63% 14.88% 17.65% 18.61% 26.09% 24.01% 10.64% 6.27% 17.17% 14.75% Engineering Cement Telecom - Services Trading Construction Project & Rankings Finance Ferrous Metals Industrial Capital Goods Oil Pharmaceuticals Auto Petroleum Products Consumer Non Durables Software Banks 3 month 6 month 1 year IDFC-IEF Growth Benchmark : S&P CNX Nifty 2 year 3 year S&P CNX Nifty Since Allotment (16-03-2006) Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No. 45. 3
IDFC Nifty Fund (IDFC - NF) An Open Ended Index Linked Equity Scheme Nature: Equity Average AUM: ` 4.72 Crore Fund Manager: Mr. Tridib Pathak Investment objective: The investment objective of the scheme is to replicate the S&P CNX Nifty Index by investing in securities of the S&P CNX Nifty Index in the same proportion/weightage. However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns. Investment style: The Scheme will be managed passively with investments in stocks in a proportion that it is as close as possible to the weightages of these stocks in the S&P CNX Nifty Index. The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme. Ideal investment horizon: 3 years or more Entry load: Nil Exit load: Nil Load shall be applicable in case of switches between other equity schemes and IDFC Nifty Fund. Options available: Growth, Dividend, Reinvestment facility is available under the Dividend Option. Minimum investment amount: `500/- & in multiples of `1 Additional investment amount: `1 SIP (minimum amount): `500 Inception Date: 30 April 2010 Growth 11.4565 Dividend 11.4672 Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives): 97.78% /- / 2.22%/ - Benchmark: S&P CNX Nifty Index Data as of 30 September 2010 Name in Lac(`) % of NAV Reliance Industries Ltd. 52.73 9.20 Infosys Technologies Ltd. 46.70 8.15 ICICI Bank Ltd. 39.69 6.92 Larsen & Toubro Ltd. 34.66 6.05 Housing Development Finance Corporation Ltd. 30.16 5.26 I T C Ltd. 29.56 5.16 HDFC Bank Ltd. 27.68 4.83 State Bank of India 26.77 4.67 Oil & Natural Gas Corporation Ltd. 15.26 2.66 Tata Consultancy Services Ltd. 14.98 2.61 Bharti Airtel Ltd. 14.17 2.47 Tata Steel Ltd. 12.71 2.22 Axis Bank Ltd. 12.35 2.16 Bharat Heavy Electricals Ltd. 12.32 2.15 Tata Motors Ltd. 10.82 1.89 Top 15 Stocks 380.55 66.39 Other Equities 179.94 31.39 Net Asset 12.75 2.22 Grand 573.24 100.00 SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 5000 5557 84.81% 85.40% Fund Performance under the IDFC NF-Growth 20.44 14.57% 12.52 14.25% 9.74 13.40% 13.50% 0.57 0.75 1.18 1.80 1.97 2.89 2.96 3.07 3.09 3.47 4.29 4.41 5.16 6.05 6.53 6.90 3 month IDFC-NIFTY Growth Benchmark : S&P CNX Nifty Since Allotment (30-04-2010) S&P CNX Nifty Minerals/mining Construction Gas Diversified Cement Non - Ferrous Metals Pharmaceuticals Industrial Capital Goods Telecom - Services Oil Power Ferrous Metals Consumer Non Durables Construction Project Auto Finance Petroleum Products Software Banks 4
IDFC Premier Equity Fund (IDFC - PEF) An Open Ended Equity Fund Data as of 30 September 2010 Nature: Equity Average AUM: ` 1857.45 Crore Fund Manager: Kenneth Andrade Investment objective: The Scheme shall seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style: Focus on buying great companies at low valuation with a longer term perspective. The scheme portfolio would seek to acquire, inter alia, small and medium size business with good long term potential, which are available at cheap valuation. Such securities would be identified through disciplined fundamental research keeping in view medium to long term trends in the business environment. The Scheme shall endeavor to accumulate long term investor wealth by opening subscriptions to units during periods when stocks are available at reasonable valuations. By doing so, the fund managers would endeavor to prevent short term money from flowing into the fund which can prove detrimental to the interest of long term investors. Ideal investment horizon: 3 years or more Entry load: (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount (Plan A & Plan B): `25,000 Additional investment amount: `1 SIP (minimum amount) (Plan A & Plan B: `2000 Inception Date (Plan A): 28 September 2005 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.90 R Square 0.88 Standard deviation 9.63% Last 3 dividends (`/ unit): 28-Apr-09 1.5 NAV 13.1031 29 March 2010 A 2.4 NAV 22.3426 29 March 2010 B 2 NAV 18.4696 Growth (A) 34.9637 (B) 25.7818 Dividend (A) 28.3367 (B) 23.4217 Face value (`/ unit): 10 Asset allocation (equity/debt/cash/derivatives): 90.47% /7.09%/0.99%/1.45% Fund manager s comment: The portfolio has attempted to identify emerging themes and segment leaders which have a strong correlation to the growth of the economy. The fund is invested close to 90% with the balance in cash. The investment process and diversification have not undergone any radical shifts. The focus remains on buying into emerging businesses and taking a call on the entrepreneur/organization to ride through successfully the growth curve of the business cycle. Name in Lac(`) % of NAV Coromandel Fertilisers Ltd. 10217.15 5.53 Bajaj Electricals Ltd 9002.14 4.87 Asian Paints Ltd. 8892.27 4.81 Sun TV Network Ltd. 8566.15 4.63 Shriram Transport Finance Co. Ltd. 8427.53 4.56 GlaxoSmithkline Consumer Healthcare Ltd. 7698.95 4.17 IRB Infrastructure Developers Ltd. 6899.28 3.73 Pantaloon Retail (India) Ltd. 6365.77 3.44 Torrent Power Ltd. 6335.45 3.43 Page Industries Ltd. 6242.99 3.38 Spicejet Ltd. 5871.80 3.18 Petronet LNG Ltd. 5827.25 3.15 Motherson Sumi Systems Ltd. 5816.00 3.15 Emami Ltd. 5339.14 2.89 Blue Dart Express Ltd. 5302.18 2.87 Top 15 Stocks 106804.04 57.78 Others Equities 60419.23 32.69 CBLO 537.41 0.29 Floating Rate Note 7982.72 4.32 Derivatives 2678.83 1.45 Mutual Fund Units: Debt 513.18 0.28 Non Convertible Debentures 4075.78 2.20 Net Asset 1837.33 0.99 Grand 184848.52 100.00 SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 96000 253747 32.78% 17.80% 3 year 72000 125209 41.65% 26.06% 2 year 48000 85058 72.46% 50.70% 1 year 24000 29917 58.45% 36.98% Fund Performance under the IDFC-PEF-Growth 46.60% 44.58% 27.13% 27.68% 28.39% 17.89% 12.58% 15.39% 21.85% 21.06% 17.74% 5.62% 3 month 6 month 1 year 2 year 3 year Since Allotment (28-09-2005) IDFC-PEF Growth BSE 500 Benchmark : BSE 500 31.54 11.96 & Rankings 1.79 1.81 2.08 3.15 3.38 3.44 3.99 4.56 4.63 5.53 5.93 6.68 Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No. 45. Industrial Products Miscellaneous Software Auto Ancillaries Textile Products Retailing Gas Finance Media & Entertainment Fertilisers Power Consumer Durables Transportation Consumer Non Durables 5
IDFC Arbitrage Fund (IDFC - AF) An Open Ended Equity Fund Nature : Equity & Equity Derivatives Average AUM :` 112.10 Crore Fund Manager : Ritesh Kumar & Ashwin Patni Investment objective : The investment objective is to generate capital appreciation and income by predominantly investing in arbitrage opportunity in the cash and the derivative segments of the equity markets and the arbitrage opportunity available within the derivative segments and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style : The Scheme seeks to capture the Cost of Carry by executing simultaneous buy (in the cash market) and sell (In the futures) trades. The amount not so invested is invested in FDs and money market instruments. Ideal investment horizon : 1 year or more Entry load : Nil Exit load: 0.25% in both Plan A and Plan B, if redemption / switch is requested within 30 days from the date of purchase, during ongoing period. (w.e.f. August 24, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Plans available: Plan A (Regular), Plan B (Institutional) Options available: Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount : Plan A: `5,000, Plan B: `25,00,000 (w.e.f. July 6, 2009) Additional investment amount : `1 SIP (minimum amount) : NA Inception Date: 21 December 2006 Statistical Measures : Standard deviation 0.30% Dividend frequency: Monthly, subject to availability of distributable surplus Last 8 dividends (`/ unit) : 26-Aug-09 B 0.0200 NAV 10.419 12-Nov-09 A 0.0600 NAV 10.3214 12-Nov-09 B 0.0600 NAV 10.4668 14-Dec-09 A 0.0200 NAV 10.3226 14-Dec-09 B 0.0200 NAV 10.4729 12-Jan-10 A 0.0200 NAV 10.3285 12-Jan-10 B 0.0200 NAV 10.4834 11-Feb-10 A 0.0200 NAV 10.3249 11-Feb-10 B 0.0200 NAV 10.4843 10-Mar-10 A 0.0100 NAV 10.3287 10-Mar-10 B 0.0100 NAV 10.4922 19 -Apr-10 B 0.0100 NAV 10.5203 11-May-10 B 0.0100 NAV 10.5498 21-Jun-10 B 0.0100 NAV 10.5834 12-July-09 B 0.0100 NAV 10.5929 Plan A (Regular) Growth 12.5139 Plan A (Regular) Dividend 10.5904 Plan B (Institutional) Growth 12.7528 Plan B (Institutional) Dividend 10.7468 Face value (` / unit) : 10 Asset allocation (equity / debt / cash) :64.33%/-25.62%/-3.65% Fund manager s comment: Cash-future spreads were quite attractive in August. The fund was able to successfully rollover its futures positions into September. Name in Lac (`) Data as of 30 September 2010 % of NAV Value of Firstsource Solutions Ltd. 507.87 5.19-512.59 Mercator Lines Ltd. 465.34 4.76-470.72 Bajaj Hindusthan Ltd. 321.13 3.28-324.64 Vijaya Bank 299.92 3.07-303.23 Reliance Infrastructure Ltd. 294.00 3.01-296.07 Nagarjuna Fertilizers & Chemicals Ltd. 252.28 2.58-255.67 IDBI Bank Ltd. 231.65 2.37-233.70 Rural Electrification Corp Ltd. 226.28 2.31-227.70 Nagarjuna Construction Co. Ltd. 225.94 2.31-227.52 IVRCL Infrastructures & Projects Ltd. 225.60 2.31-228.00 Rolta India Ltd. 223.56 2.29-225.91 ICSA (India) Ltd. 221.17 2.26-224.37 Bharat Forge Ltd. 221.13 2.26-221.46 Ispat Industries Ltd. 215.69 2.20-218.53 Adlabs Films Ltd. 204.58 2.09-206.54 Dena Bank 203.62 2.08-206.30 Pantaloon Retail (India) Ltd. 193.64 1.98-195.34 Hindustan Petroleum Corporation Ltd. 192.72 1.97-194.62 K.S. Oils Ltd. 188.18 1.92-190.12 Television Eighteen India Ltd. 168.45 1.72-170.48 Dabur India Ltd. 155.52 1.59-156.17 Moser Baer India Ltd. 152.65 1.56-154.47 Mphasis Ltd. 146.10 1.49-147.39 Praj Industries Ltd. 142.08 1.45-143.62 GMR Infrastructure Ltd. 140.86 1.44-141.48 Petronet LNG Ltd. 114.43 1.17-115.61 Power Grid Corporation of India Ltd. 106.50 1.09-107.55 Shree Renuka Sugars Ltd. 70.36 0.72-70.36 Mangalore Refinery & Petrochemicals Ltd. 70.33 0.72-71.02 Ashok Leyland Ltd. 57.68 0.59-58.32 Reliance Industries Ltd. 54.30 0.56-54.67 6293.54 64.33 - Money Market Instrument 2347.24 23.99 Bank Deposit 1500.00 15.33 Net Current Assets -357.46-3.65 Grand 9783.3 100.00 Fund Performance under the IDFC-AF-Growth 6.11% 6.12% 6.45% 5.25% 3.85% 4.04% 4.29% 4.44% 2.41% 2.40% 1.51% 1.39% 3 month IDFC-AF Growth 6 month 1 year Benchmark : Crisil Liquid Fund Index 2 year 3 year Since Inception (21/12/2006) Crisil Liquid Fund Index CAGR Compounded Annualised Growth Rate 6
IDFC Equity Fund (IDFC - EF) An Open Ended Equity Scheme Data as of 30 September 2010 Nature: Equity Average AUM: ` 581.41 Crore Fund Manager: Kenneth Andrade Investment objective: The investment objective of the scheme is to seek to generate capital growth from a portfolio of predominantly equity and equity related instruments(including Equity derivatives). The scheme may also invest in debt and money market instruments to generate reasonable income. However there is no assurance that the investment objective of the scheme will be realized. Investment Strategy (in brief): The Scheme intends to invest in companies which are involved in or are in the process of setting up various business activities, ventures, projects or other commercial endeavours The Scheme would invest in equities in the IPOs subsequent public offers or in the secondary market, other equity related instruments (including derivatives), benefit out of the cash and derivative markets arbitrage, opportunity and invest the residual sums in debt and money market instruments. For details please refer to the Offer document. The scheme will endeavour to generate capital appreciation through investing in equities by interalia adopting the mode of applying IPOs or subsequent public offering made by companies, if well-priced IPOs are not available the funds collected will be invested in other investment avenues such as index, cash futures arbitrage. Nifty spot futures arbitrage etc. as per the investment strategy of the scheme. The Scheme will endeavour to generate capital appreciation through investing in equities and equity related instruments by inter alia adopting the mode of applying for Initial Public Offerings (IPOs) or subsequent public offerings made by companies. The Scheme envisages to generate reasonable returns by investing in such equities. The balance equity allocations by the fund will be closely in line with Nifty. However the fund will seek to take on some deviation from Nifty by making smaller allocations to a range of arbitrage strategies in the equity and derivative markets. Investment style: The Scheme endeavours to generate capital appreciation through investing in equities by inter alia adopting the mode of applying for IPOs or subsequent public offering made by companies. If well priced IPOs are not available the funds collected may be invested in the index, hence generating market return from the index and the alpha from the premium on listing of IPOs. Entry load: (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All Investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend Minimum investment amount (Plan A & Plan B): `5,000 (w.e.f. July 6, 2009) Additional investment amount: `1 SIP (minimum amount) (Plan A & Plan B): `1000 (w.e.f. July 6, 2009) Inception Date (Plan A): 9 June 2006 Inception Date(Plan B): 6 July 2009 Statistical Measures: Beta (BSE 200) 0.92 R Square (BSE 200) 0.91 Beta (Nifty) 0.98 R Square (Nifty) 0.91 Standard deviation 8.02% Last 3 dividends (`./ unit) : 8-Jun-09 1.2 NAV 12.4523 15-Jun-09 1.2 NAV 12.0942 Growth (A )17.1193 (B) 14.0736 Dividend (A )14.0408 (B) 11.813 Face value (` / unit) : 10 Asset allocation (equity/debt/cash/derivatives) : 80.35%/33.43%/6.81%/- Fund manager s comment: The fund is currently invested in the Nifty stocks. The fund aims to generate alpha by participating in primary market issuances. As a strategy, Enterprise follows a 100% invested philosophy. We have activated our participation in primary issuances of recent origin. Name in Lac(`) % of NAV Reliance Industries Ltd. 4418.30 7.57 Infosys Technologies Ltd. 3936.55 6.74 ICICI Bank Ltd. 3302.99 5.66 Larsen & Toubro Ltd. 2918.14 5.00 Housing Development Finance Corporation Ltd. 2543.66 4.36 I T C Ltd. 2477.57 4.24 HDFC Bank Ltd. 2325.77 3.98 State Bank of India 2263.91 3.88 Oil & Natural Gas Corporation Ltd. 1291.25 2.21 Tata Consultancy Services Ltd. 1264.17 2.17 Bharti Airtel Ltd. 1190.02 2.04 Tata Steel Ltd. 1065.99 1.83 Axis Bank Ltd. 1038.77 1.78 Bharat Heavy Electricals Ltd. 1036.78 1.78 Tata Motors Ltd. 937.90 1.61 Top 15 Stock 32011.78 54.83 Other Equities 14896.34 25.51 Certificate of Deposit 1998.87 3.42 Fixed Deposits - Security 5500.00 9.42 Futures 12018.15 20.58 Net Asset 3976.30 6.81 Grand 58383.30 100.00 0.59 0.62 0.97 1.27 1.48 Minerals/mining Construction Gas Cement Diversified 2.38 2.55 2.55 2.61 2.88 Non - Ferrous Metals Industrial Capital Goods Telecom - Services Pharmaceuticals Oil 3.56 3.64 Power Ferrous Metals 4.24 Consumer Non Durables 4.96 5.00 Auto Construction Project 5.82 Finance 8.02 Petroleum Products 10.37 Software 16.84 Banks SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 49000 71137 16.37% 17.33% 3 year 36000 49472 22.95% 23.68% 2 year 24000 34818 43.93% 44.78% 1 year 12000 13968 37.85% 37.46% Fund Performance under the IDFC-EF-Growth 22.77% 24.01% 18.11% 18.61% 18.82% 13.45% 13.50% 15.12% 14.88% 13.28% 5.84% 5.27% 3 month 6 month 1 year 2 year 3 year S&P CNX Nifty Since Allotment (09-06-2006) IDFC-EEF Growth Benchmark : S&P CNX Nifty 7
IDFC Tax Saver (ELSS) Fund (IDFC TS (ELSS) Fund) A 10 Year Close Ended Equity Linked Saving Scheme Nature : Equity Average AUM : `61.95 Crore Fund Manager : Neelotpal Sahai. w.e.f. 22 Sep, 2010 Investment objective : The investment objective is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related instruments. There can be no assurance that the investment objective of the scheme will be realised. Investment style : The Scheme will invest in well- managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on a deep understanding of the industry growth potential and interaction with company management. Entry load : Nil Exit load : Nil (w.e.f. 4th September, 2009) Options available: Growth, Dividend Minimum investment amount :` 500 Additional investment amount :`500 Inception Date: 15 March 2007 Statistical Measures : Beta 0.82 R Square 0.92 Standard deviation 9.08% Dividends frequency : 29 Sep 09 1.10 NAV 12.3972 29 Apr 10 1.60 NAV 13.9863 Growth 15.6225 Dividend 15.6223 Name Data as of 30 September 2010 Market value in Lac (`) % of NAV Central Bank of India 340.55 5.63 Vijaya Bank 326.00 5.39 Larsen & Toubro Ltd. 307.97 5.10 Axis Bank Ltd. 307.32 5.08 Infosys Technologies Ltd. 305.05 5.05 Allahabad Bank 290.25 4.80 ICICI Bank Ltd. 250.41 4.14 Emami Ltd. 230.05 3.81 Tata Steel Ltd. 228.15 3.77 Unichem Laboratories Ltd. 222.28 3.68 Ashok Leyland Ltd. 216.30 3.58 Sun TV Network Ltd. 207.60 3.43 Mahindra & Mahindra Ltd. 207.45 3.43 Siemens Ltd. 205.86 3.41 Rural Electrification Corp Ltd. 205.71 3.40 Top 15 Stocks 3850.95 63.71 Other Equities 1574.10 26.04 Fixed Deposits - Security 200.00 3.31 Net Asset 419.09 6.93 Grand 6044.14 100.00 Face value (` / unit) : 10 Asset allocation (equity / debt / cash) :89.76% / 3.31% / 6.93% Fund manager s comment The focus is to invest in long term growth stocks at reasonable price. The portfolio is an diverse mix of companies across sectors and is agnostic to capitalization bias. Given the plethora of opportunities which is there in domestic economy, the fund seeks to invest in companies with strong track record of execution, high operating leverage and reasonable valuations. SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 21000 29833 21.42% 21.23% 3 year 18000 25625 25.68% 25.67% 2 year 12000 18040 48.81% 49.22% 1 year 6000 7001 38.52% 36.33% 25.06 Fund Performance under the IDFC TS (ELSS) -Growth 26.68% 20.79% 31.34% 27.54% 9.01 9.74 11.25 12.81% 12.56% 16.03% 15.05% 13.40% 15.95% 2.63 3.03 3.17 3.40 3.43 3.68 3.77 5.10 6.49 7.49% 6.08% 3 month 6 month 1 year 2 year 3 year IDFC-TSF-ELSS Growth BSE 200 Benchmark : BSE 200 Since Allotment (19-03-2007) Gas Telecom - Services Consumer Durables Finance Media & Entertainment Pharmaceuticals Ferrous Metals Construction Project Consumer Non Durables Industrial Capital Goods Auto Software Banks 8
IDFC Arbitrage Plus Fund (IDFC - APF) An Open Ended Equity Fund Nature : Equity Derivatives Average AUM : `67.92 Crore Fund Manager : Ritesh Kumar & Ashwin Patni Investment objective : The investment objective of the scheme is to generate income (absolute to low volatility returns) by taking advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style : The fund aimed to generate absolute returns by investing in trades in the equity and derivative markets. The trades can consist of cash-futures arbitrage as well as relative value (such as pair trades and corporate event- based strategies) and derivatives strategies. Ideal investment horizon : 1 year or more Entry load : Nil Exit load: IDFC- APF - Plan A & Plan B : 0.50% of NAV on investors who purchase/switch in and seek to redeem/switch out such units within 365 days such from the date of effecting such purchase/switch in. (w.e.f. August 24, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount : Plan A : `5,000, Plan B: `25,00,000 (w.e.f. July 6, 2009) Additional investment amount : `1 Inception Date: 9 June 2008 Statistical measures : Standard deviation 0.68% Last 3 dividends (` / unit): 11 May 2010 A 0.02 NAV 10.5708 11 May 2010 B 0.02 NAV 10.6296 21 Jun 2010 A 0.01 NAV 10.5741 21 Jun 2010 B 0.01 NAV 10.6360 12 Jul 2010 A 0.01 NAV 10.4622 12 Jul 2010 B 0.01 NAV 10.5250 Dividend frequency : Monthly, subject to availability of distributable surplus Growth (A) 11.3575 (B) 11.3971 Dividend (A) 10.7131 (B) 10.7832 Face value (` / unit) : 10 Asset allocation (equity / debt / cash) : 58.99% / -20.92% / 7.21% Fund manager s comment: Cash-future spreads were quite attractive in August. The fund was able to successfully roll-over its arbitrage positions into September. The fund also had positions in options, corporate action and pair trades. Name in Lac (`) Data as of 30 September 2010 % of NAV Value of Futures Housing Development and Infrastructure Ltd. 466.29 7.47-471.15 Bajaj Hindusthan Ltd. 302.56 4.85-305.86 GMR Infrastructure Ltd. 284.00 4.55-285.25 Firstsource Solutions Ltd. 279.76 4.48-282.36 Tata Teleservices (Maharashtra) Ltd. 278.46 4.46-281.61 Jindal Saw Ltd. 203.30 3.26-205.30 IVRCL Infrastructures & Projects Ltd. 200.00 3.21-202.13 Reliance Infrastructure Ltd. 157.69 2.53-158.80 Pantaloon Retail (India) Ltd. 147.65 2.37-148.95 Mercator Lines Ltd. 146.12 2.34-147.81 Cairn India Ltd. 137.35 2.20-138.25 Hindustan Construction Co. Ltd. 131.82 2.11-133.28 Nagarjuna Construction Co. Ltd. 125.52 2.01-126.40 Yes Bank Ltd. 119.05 1.91-120.39 IDBI Bank Ltd. 103.63 1.66-104.55 ICSA (India) Ltd. 101.89 1.63-103.36 Union Bank of India 101.11 1.62-101.83 Reliance Natural Resources Ltd. 95.85 1.54-96.97 3382.06 54.20 - Firstsource Solutions Ltd. 197.98 3.17 Cairn India Ltd. 100.50 1.61 Pair Trade 298.48 4.78 Money Market Instrument 1609.01 25.79 Bank Deposit 500.00 8.01 Net Current Assets 449.97 7.21 Grand 6239.53 100.00 Fund Performance under the IDFC-APF-Growth 5.79% 5.44% 5.67% 5.79% 4.07% 4.05% 2.47% 2.40% 1.44% 1.39% 3 month 6 month IDFC-APF Growth 1 year 2 year Since Inception (09/06/2008) Crisil Liquid Fund Index CAGR Compounded Annualised Growth Rate Benchmark : Crisil Liquid Fund Index 9
IDFC Small & Midcap Equity (SME) Fund (IDFC SMEF) An Open Ended Equity Scheme Data as of 30 September 2010 Nature: Equity Average AUM: ` 991.66 Crore Fund Manager: Kenneth Andrade Investment objective: The investment objective is to seek to generate capital appreciation from a diversified portfolio of equity and equity related instruments. The Scheme will predominantly invest in small and midcap equity and equity related instruments. Small and Midcap equity and equity related instruments will be the stocks included in the CNX Midcap index or equity and equity related instruments of such companies which have a market capitalization lower than the highest components of CNX Midcap Index. The Scheme may also invest in stock other than mid cap stocks (i.e. in stocks, which have a market capitalization of above the market capitalization range of the defined small midcap stocks) and derivatives. On defensive considerations, the Scheme may also invest in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme will predominantly invest in small and mid-cap equity and equity related instruments. Small and Mid-cap equity and equity related instruments will be the stocks included in the CNX Mid-Cap Index or equity and equity related instruments of such companies which have a market capitalization lower than the highest components of CNX Mid-Cap Index. The scheme would predominantly create a portfolio of emerging business and companies that are aspiring leaders in their respective field of operations. Some part of the portfolio would be in stocks/ companies that do not have a significant history of being listed. Ideal Investment Horizon: More than 3 years Entry Load: Nil Exit load: The scheme is converted into open ended scheme w.e.f. September 11, 2009. W.e.f. September 11, 2009 Exit Load - If redeemed within 365 days from the date of purchase(s) applying First in First out basis (including purchase made through the STP/SIP) - 1.00%.No exit load /CDSC will be chargeable in case of switches made between different options of the schemes. In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund (w.e.f. October 12, 2009) Options available: Growth, Dividend Minimum investment amount: `5,000 SIP (minimum amount): `1000 Additional investment amount: `1 Inception Date: 7 March 2008 Statistical Measures: Beta 0.71 R Square 0.87 Standard deviation 6.28% Last 3 dividends (`./ unit): 8-Jun-09 1.2 NAV 12.4523 15-Jun-09 1.2 NAV 12.0942 14-May-08 1.5 NAV 13.9431 Growth 19.7271 Dividend 16.2776 Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives) : 88.60% /6.24% / 5.15%/ - Fund manager s comment The fund philosophy is to capture the potential of the small and mid-cap companies in the country. The underlying companies in the portfolio are growth-oriented. At a second level the fund seeks to optimize valuations in this space. With markets buoyant the portfolio shifts have been reasonably aggressive in tune with the changing valuations. The strategy is to remain invested in smaller companies with low business risk and extreme valuation comfort Name in Lac(`) % of NAV Central Bank of India 3892.00 3.84 Castrol (India) Ltd. 3840.58 3.79 Siemens Ltd. 3703.20 3.66 Union Bank of India 3694.55 3.65 Exide Industries Ltd. 3616.33 3.57 Bajaj Auto Ltd. 3204.38 3.17 Bombay Rayon Fashions Ltd. 3131.09 3.09 Redington (India) Ltd. 3116.25 3.08 Venky's (India) Ltd. 2806.86 2.77 Vijaya Bank 2709.88 2.68 Tulip Telecom Ltd. 2625.00 2.59 Titan Industries Ltd. 2600.07 2.57 Fortis Healthcare Ltd. 2524.00 2.49 Mundra Port and Special Economic Zone Ltd. 2418.35 2.39 Mandhana Industries Ltd. 2313.64 2.29 Top 15 Stocks 46196.19 45.64 Other Equities 43492.80 42.97 CBLO 400.11 0.40 Fixed Deposits - Security 5000.00 4.94 Mutual Fund Units: Debt 513.18 0.51 Non Convertible Debentures 407.25 0.40 Net Asset 5217.41 5.15 Grand 101226.94 100.00 SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 31000 55212 58.19% 48.07% 2 year 24000 42014 70.43% 65.89% 1 year 12000 14569 50.24% 43.38% Fund Performance under the IDFC SMEF-Growth 9.41 10.17 12.75 54.64% 43.96% 5.38 5.52 5.82 5.90 20.99% 18.94% 36.51% 36.89% 30.30% 3.50 3.79 3.87 3.07 3.08 2.48 2.49 2.59 0.56 0.93 1.03 1.31 1.45 1.57 1.93 12.68% 12.71% 3 month 6 month IDFC-SMC-EF Growth 1 year Benchmark : CNX Midcap 2 year CNX Midcap 14.31% Since Allotment (07-03-2008) Pesticides Pharmaceuticals Software Textiles - Synthetic Construction Power Telecom - Equipment Textiles - Cotton Healthcare Services Telecom - Services Finance Hardware Miscellaneous Petroleum Products Transportation Textile Products Media & Entertainment Auto Ancillaries Industrial Capital Goods Auto Banks Consumer Non 10
IDFC Strategic Sector (50-50) Equity Fund (IDFC SS (50-50)-EF) An Open Ended Equity Fund Data as of 30 September 2010 Nature: Equity Average AUM: `32.09 Crore Fund Manager: Kenneth Andrade Investment objective: The investment objective of the scheme is to seek to generate long-term capital appreciation by investing in Equity and Equity related instruments. The investment objective of the fund shall be achieved by investing up to fifty percent of the assets of the scheme in a chosen sector (sector specific exposure) while the balance amount may be invested in companies across market capitalizations and across sectors (diversified exposure). The scheme may also invest in debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns. Ideal investment horizon: 3 years or more Entry Load: (Plan A & Plan B): Nil Exit Load: (Plan A & Plan B): All investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount (Plan A & Plan B): `5,000 Additional investment amount: `1 SIP (minimum amount) ( Plan A & Plan B): `1000 Inception Date (Plan A): 3 October 2008 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.78 R Square 0.92 Standard deviation 7.24% Dividend frequency: NA Growth (A) 15.7119 (B) 17.2162 Dividend (A) 15.5416 (B) 17.2123 Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives): 88.43% /12.91% /8.67%/ Fund manager s comment: The fund is built around allocating 50% of its invested portfolio in one sector. The current sector concentration is around Banking and Financials. Financials is a direct play on the Indian economy which is on a sure and stable path of recovery. Credit growth is picking up, margins are expanding, NPA risk is controlled and valuations are commensurate to growth. SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 23000 32069 40.84% 43.66% 1 year 12000 14306 44.77% 37.46% Name in Lac(`) % of NAV Sector - Banking & Finance 1324.86 48.39 ICICI Bank Ltd. 222.59 6.45 Central Bank of India 204.33 5.92 Axis Bank Ltd. 184.39 5.34 Bank of Baroda 174.50 5.06 HDFC Bank Ltd. 149.36 4.33 State Bank of India 129.62 3.75 Union Bank of India 108.89 3.15 Finance 151.18 4.38 Bank Nifty Futures 345.58 10.01 Diversified 2082.52 60.33 Tata Motors Ltd. 48.24 1.40 Mahindra & Mahindra Ltd. 40.78 1.18 Auto 89.02 2.58 Larsen & Toubro Ltd. 150.21 4.35 Construction Project 150.21 4.35 I T C Ltd. 129.08 3.74 Consumer Non Durables 129.08 3.74 Hindustan Unilever Ltd. 44.59 1.29 Tata Steel Ltd. 55.69 1.61 Jindal Steel & Power Ltd. 37.79 1.09 Ferrous Metals 93.48 2.71 Bharat Heavy Electricals Ltd. 53.96 1.56 Industrial Capital Goods 53.96 1.56 Sterlite Industries (India) Ltd. 36.52 1.06 Hindalco Industries Ltd. 35.27 1.02 Non - Ferrous Metals 71.79 2.08 Oil & Natural Gas Corporation Ltd. 65.14 1.89 Oil 65.14 1.89 Other Equity 433.61 12.56 Reliance Industries Ltd. 230.44 6.68 Petroleum Products 230.44 6.68 NTPC Ltd. 38.13 1.10 Power 38.13 1.10 Infosys Technologies Ltd. 202.19 5.86 Tata Consultancy Services Ltd. 64.65 1.87 Software 266.83 7.73 Bharti Airtel Ltd. 61.50 1.78 Telecom - Services 61.50 1.78 CBLO 100.03 2.90 Net Asset 299.31 8.67 Grand 3451.97 100.00 Fund Performance under the IDFC Strategic Sector (50-50) Equity Fund-Growth 34.00 25.46% 25.79% 20.02% 19.47% 18.61% 16.56% 13.50% 14.88% 0.29 0.55 0.86 1.29 1.41 1.89 2.08 2.23 2.23 2.46 3.05 3.19 3.74 4.34 4.35 4.38 7.06 9.02 3 month 6 month IDFC-SSEF Growth Past performance may or may not be sustained in future Benchmark : S&P CNX Nifty 1 year S&P CNX Nifty Since Allotment (03-10-2008) Minerals/mining Construction Gas Diversified Cement Pharmaceuticals Non - Ferrous Metals Telecom - Services Industrial Capital Goods Oil Power Ferrous Metals Consumer Non Durables Auto Construction Project Finance Petroleum Products Software Banks 11
IDFC Tax Advantage (ELSS) Fund (IDFC TA (ELSS) Fund) An Open Ended Equity Linked Saving Scheme with Lock in Period of 3 Years Data as of 30 September 2010 Nature: Equity Average AUM: ` 101.36 Crore Fund Manager: Neelotpal Sahai. w.e.f. 22 Sep, 2010 Investment objective: The investment objective is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related securities. There can be no assurance that the investment objective of the scheme will be realized. Investment style: The Scheme will invest in well-managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on a deep understanding of the industry growth potential and interaction with company management. Entry load: Nil Exit load: Nil (w.e.f. September 04, 2009) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount: `500 Additional investment amount: `500 SIP (minimum amount): `500 Inception Date: 26 December 2008 Statistical Measures: Beta 0.68 R Square 0.87 Standard deviation 6.69% Last 3 dividends (`/ unit): 20-Jan-10 2.5 NAV 14.9373 23-Mar-10 1 NAV 14.3869 Growth 21.1705 Dividend 16.9533 Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives): 90.80% /1.90 /7.30%/ Fund manager s comment: The focus is to invest in long term growth stocks at reasonable price. The portfolio is a diverse mix of companies across sectors and is agnostic to capitalization bias. Given the plethora of opportunities which is there in domestic economy, the fund seeks to invest in companies with strong track record of execution, high operating leverage and reasonable valuations. Name in Lac(`) % of NAV Central Bank of India 583.80 5.56 Infosys Technologies Ltd. 518.59 4.93 Vijaya Bank 489.00 4.65 Axis Bank Ltd. 460.98 4.39 Larsen & Toubro Ltd. 410.63 3.91 Tata Steel Ltd. 391.11 3.72 Ashok Leyland Ltd. 360.50 3.43 Allahabad Bank 348.30 3.31 ICICI Bank Ltd. 333.89 3.18 Sterlite Industries (India) Ltd. 333.80 3.18 Siemens Ltd. 329.38 3.13 Tata Consultancy Services Ltd. 324.43 3.09 Vardhman Textiles Ltd. 312.15 2.97 TTK Prestige Ltd. 301.76 2.87 Jyothy Laboratories Ltd. 298.25 2.84 Top 15 Stocks 5796.56 55.16 Other Equities 3745.14 35.64 Fixed Deposits - Security 200.00 1.90 Net Asset 766.71 7.30 Grand 10508.41 100.00 SIP Returns Period Investment Value Scheme Return Benchmark Return Since Inception 10500 14850 47.95% 46.41% 1 year 6000 7121 43.44% 36.33% Fund Performance under the IDFC TA (ELSS) -Growth 21.09 59.17% 53.07% 8.12 8.68 10.02 14.92% 12.56% 17.41% 15.05% 29.16% 20.79% 1.00 2.07 2.11 2.11 2.50 2.61 2.77 2.97 3.18 3.72 3.91 4.20 4.72 5.02 3 month 6 month Past performance may or may not be sustained in future Benchmark : BSE 200 1 year IDFC-TAF Growth BSE 200 Since Allotment (26-12-2008) Miscellaneous Hardware Textile Products Industrial Products Pharmaceuticals Telecom - Services Finance Textiles - Cotton Non - Ferrous Metals Ferrous Metals Construction Project Consumer Durables Media & Entertainment Industrial Capital Goods Consumer Non Durables Auto Software Banks 12