Mutual Funds
Mutual Gains
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February 17, 2016
Sharekhan’s top equity mutual fund picks
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w Top rated equity funds >> Large-cap funds
>> Mid-cap funds
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w Fund focus
>> ICICI Prudential Long Term Equity Fund (Tax Saving)
w Fund ranking procedure
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February 17, 2016
1
Mutual Funds
Mutual Gains
Top rated equity mutual funds
Data as on February 01, 2016
Scheme name
Star
rating
NAV (Rs)
6 mths’
returns %
Annually compounded returns (%)
1 yr
3 yrs
5 yrs
Since
inception
Large-cap funds
SBI Bluechip Fund
Birla Sun Life Top 100 Fund
Birla Sun Life Frontline Equity Fund - Reg
Religare Invesco Business Leaders Fund
Franklin India Bluechip
êêêêê
27.4
-6.7
-2.0
17.6
14.6
10.6
êêêê
40.3
-9.9
-9.3
15.4
13.0
14.5
êêêê
152.0
-9.8
-9.3
14.5
12.3
22.5
êêêêê
19.7
-8.7
-6.3
14.0
10.8
11.1
êêêê
331.8
-9.7
-7.7
11.3
10.0
22.4
24,824.8
-11.6
-14.9
7.9
6.6
16.0
Indices
BSE Sensex
Mid-cap funds
Reliance Small Cap Fund
êêêêê
25.4
-2.7
0.9
35.1
22.0
18.9
DSP BlackRock Micro Cap Fund - Reg
êêêêê
40.4
-4.8
7.2
33.4
22.4
17.6
Franklin India Smaller Companies Fund
êêêê
37.8
-5.4
-0.6
30.0
22.9
14.1
UTI Mid Cap Fund
êêêê
75.3
-9.5
-3.4
29.2
20.7
19.5
êêêêê
58.2
-6.4
5.5
28.8
21.6
17.6
10,476.8
-7.0
-2.4
14.6
9.2
21.1
SBI Magnum Midcap Fund
Indices
BSE MID CAP
Multi-cap funds
Birla Sun Life Pure Value Fund
êêêêê
37.5
-7.2
-3.4
27.0
18.7
18.3
L&T India Value Fund
êêêêê
24.0
-6.8
1.2
24.7
17.5
15.6
êêêê
106.2
-10.2
-6.8
22.8
17.7
22.9
SBI Magnum Global Fund 94
ICICI Prudential Value Discovery Fund
êêêêê
125.9
-9.0
-4.7
22.4
19.7
15.0
SBI Magnum Multi Cap Fund
êêêêê
31.8
-6.8
-1.0
19.1
13.3
11.8
10,020.7
-10.7
-11.6
9.5
7.4
14.5
19.4
Indices
BSE 500
Tax-saving funds
Axis Long Term Equity Fund
êêêêê
29.5
-6.0
-2.9
26.3
20.3
Birla Sun Life Tax Relief 96
êêêêê
20.6
-7.8
-4.9
20.6
13.6
9.6
Birla Sun Life Tax Plan
êêêê
26.0
-7.9
-5.5
19.7
14.7
10.8
ICICI Prudential Long Term Equity Fund (Tax Saving)-Reg
êêêê
260.8
-5.8
-5.8
18.0
14.0
21.9
Franklin India Taxshield
êêêê
399.2
-9.6
-6.4
17.8
15.0
24.5
6,341.6
-10.7
-11.5
9.9
7.8
9.0
Indices
Nifty 500
Thematic funds
ICICI Prudential Exports and Other Services Fund
Franklin Build India Fund
Birla Sun Life Special Situations Fund
êêêêê
46.2
-2.6
9.0
33.6
23.0
16.2
êêêêê
25.9
-15.0
-12.1
23.3
18.1
16.0
êêêê
16.5
-8.8
-5.7
17.5
11.9
6.5
Sundaram Rural India Fund - Reg
êêêêê
25.4
-7.0
-2.5
14.9
12.6
10.0
Birla Sun Life India Reforms Fund
êêêê
13.1
-9.3
-9.8
10.5
6.8
4.9
7,556.0
-11.4
-14.1
8.0
6.9
13.8
Indices
Nifty 50
Balanced funds
L&T India Prudence Fund
êêêêê
19.2
-4.4
0.6
18.6
--
13.9
Tata Balanced Fund - Reg
êêêê
162.9
-6.3
-2.7
18.4
15.6
16.5
êêêêê
93.4
-4.1
-2.8
17.4
13.7
16.3
Franklin India Balanced Fund
SBI Magnum Balanced Fund
êêêê
87.9
-5.8
-3.0
16.5
13.4
14.4
DSP BlackRock Balanced Fund
êêêê
104.6
-7.6
-2.8
13.3
10.4
15.1
--
-6.1
-7.0
8.5
7.8
12.3
Indices
Crisil Balanced Fund Index
Note: Returns < 1 year - absolute, > 1 year - CAGR (compounded annual growth rate)
Sharekhan
2
February 17, 2016
Mutual Funds
Mutual Gains
ICICI Prudential Long Term Equity Fund (Tax Saving)
Fact sheet
Key features
The scheme seeks to generate long-term capital appreciation
from a portfolio that is invested predominantly in equity and
equity-related securities.
• Fund category
• Launch date
• Minimum investment
• Load structure
• Fund manager
• Latest NAV (gr.)
• Latest NAV (div.)
• Expense ratio (%)
•AUM
• Benchmark index
Scheme’s performance
ICICI Prudential Long Term Equity Fund (Tax Saving) - Reg
ELSS Category Average
Nifty 500
21.9
18.0
14.0
16.8
16.1
12.8
9.9
9.0
7.8
25.0
20.0
15.0
10.0
: ELSS
: August 19, 1999
: Rs500
: Exit Load is Nil
: George Heber Joseph
: Rs260.8
: Rs22.8
: 2.36
: Rs2,794.48
: Nifty 500
Holdings by market cap
5.0
Particulars
0.0
-5.0
-10.0
-15.0
6 Months
1 Year
-5.8
-5.8
-10.6
-10.7
3 Years
5 Years
Since Inception
-8.8
-11.5
48.4
Nifty Mid-cap 100
17.4
Nifty Small-cap 100
Returns < 1 yr: Absolute, > 1yr: CAGR
BSE Sensex
Style box analysis
%
Nifty 50
4.4
-
Top 5 holdings
32.8
Top 10 holdings
51.0
Large-cap
Mid-cap
Top 10 stock holdings (total no. of scrips: 39)
Small-cap
Company name
Growth blend value
Top 5 sectors
Tourism and Hospitality
4.8
NBFC
10.7
Banks
13.5
Pharmaceuticals & Biotechnology
13.9
Software and Consultancy Services
16.2
0.0
2.0
4.0
6.0
8.0 10.0 12.0 14.0 16.0 18.0
% of net assets
HCL Technologies
9.4
HDFC Bank
7.7
Cipla
6.0
Kotak Mahindra Bank
4.9
Thomas Cook
4.8
Bajaj Finserv
4.5
Tech Mahindra
3.8
Lupin
3.7
Motherson Sumi Systems
3.1
Infosys
3.1
Scheme analysis
With more than 15 years of experience, the fund has been an outperformer in comparison with both the benchmark index Nifty
500, and the category average. Despite the volatility and uncertainties in the market, the fund performed better than its peers,
giving returns of -5.8% over one year as against that of -11.5% and -8.8% given by the benchmark index and the category average,
respectively, in the same period. Over the longer time horizon of three years, the fund has grown at 18% compounded annual
growth rate (CAGR) while the Nifty 500 and the category average have grown at 9.9% and 16.1% respectively. In the recent
months the fund has garnered returns of -5.8% as compared with the -10.7% returns posted by the benchmark index and -10.6%
returns from the equity-linked savings scheme (ELSS) category average.
The fund currently has about 39 stocks in its portfolio. It has nearly 94.6% of its net assets exposed to equity while the rest is
exposed to other money-market instruments. The top ten stocks form about 51% of the portfolio. The fund has invested nearly
16.2% of its funds in the software and consultancy services sector followed by pharmaceuticals & biotechnology, banks with 13.9%
and 13.5% allocations respectively.
Sharekhan
3
February 17, 2016
Mutual Funds
Mutual Gains
Fund ranking procedure
Thereafter, we have calculated the percentage underperformance or over-performance of each scheme
(relative performance) based on each of the five
parameters vis-a-vis the maximum value among them.
We have identified the best equity-oriented schemes
available in the market today based on the following five
parameters: the past performance as indicated by the
one-year, two-year and three-year returns, the Sharpe
ratio and the Information ratio.
For our final selection of schemes, we have generated a
total score for each scheme giving 60% weightage each to
the relative performance as indicated by the one-year,
two-year and three-year returns; 20% weightage to the
relative performance as indicated by the Sharpe ratio;
and the remaining 20% to the relative performance as
indicated by the Information ratio of the scheme.
The Sharpe ratio indicates risk-adjusted returns, ie the
returns earned in excess of the risk-free rate for each
unit of the risk taken. The Sharpe ratio is also indicative
of the consistency of the returns as it takes into account
the volatility in the returns as measured by the standard
deviation.
The Information ratio is one of the most important tools
in active fund management. It is the ratio of active
return (the return over the index return) to active risk
annualised. A higher Information ratio indicates a better
fund manager.
Sharekhan mutual fund ranking scale
We have selected the schemes based upon their ranking
using the above five parameters and then calculated
the maximum value of each of the five parameters.
Stars
Description
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For top 10 percentile of the eligible schemes
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Next 22.5 percentile of the eligible schemes
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Next 35 percentile of the eligible schemes
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Next 22.5 percentile of the eligible schemes
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Bottom 10 percentile of the eligible schemes
Disclaimer
Nothing in this report constitutes investment advice or tax advice in any form and these products may or may not be suitable for you. Investors should make independent judgment taking into account specific investment objectives,
financial situations and needs before taking any investment decision. Mutual fund investments are subject to market risk. Please read the offer document carefully before investing. Past performance may or may not be sustained
in the future.
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The information contained herein is obtained from publicly available data or other sources believed to be reliable and SHAREKHAN has not independently verified the accuracy and completeness of the said data and hence it should
not be relied upon as such. While we would endeavour to update the information herein on a reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees (“SHAREKHAN and affiliates”)
are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. Sharekhan provides non-advisory/order
execution services for Mutual Funds. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Mutual fund investments are subject to market risk.
Please read the offer document carefully before investing. Also, Recipients of this report should also be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well.
The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as he deems necessary to arrive at an independent evaluation of an investment in the securities
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for, any company mentioned herein. Without limiting any of the foregoing, in no event shall SHAREKHAN, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for
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4
February 17, 2016