EXECUTIVE EDITOR’S NOTE

Dr. V. K. Vijayakumar

Economic growth and corporate earnings set for revival

hallenging environment calls for bold reforms. The ‘wealth effect’ of the market gains also can contrib- This was precisely what Finance Minister ute to stimulating demand. From the capital market C NirmalaSitaraman delivered on 20th Septem- perspective, the announcement that the enhanced ber. The cut in corporate tax rates and MAT and the new surcharge will not apply to capital gains on sale of manufacturing tax rate came as an unexpected shot in equity, derivatives or equity oriented funds and the the arm for the economy and markets. Sensex and Nifty removal of tax on buy backs for those companies responded with spectacular rallies of 1921 and 529 making the announcement before July 5 this year are points respectively- the best during the last 10 years. clear positives.

The major factor that pushed India’s GDP growth rate to The stimulus size is quite big since the revenue a six year low was the decline in private investment, foregone is expected to be Rs 1.45 lakh crores. This which has been declining steadily during the last six along with the Rs 20000 crore package for the real years. The corporate tax cuts announced, along with the estate sector has the potential to pump-prime the econ- monetary stimulus already provided by the RBI, have omy. Of course, there will be a revenue shortfall and the the potential to trigger the animal spirits and revive consequent strain on the fisc. But the expected expan- investment and economic growth. The 22 percent sion of economic activity can partly compensate for the corporate tax rate (25.17 percent effective rate including revenue shortfall. The fiscal slippage is a risk worth cess and surcharge) makes our tax rates competitive taking. Fortune favors the brave! and in tune with most emerging markets and our Asian peers. The new tax rate of 15 percent for new manufac- These bold reforms, along with the monetary stimulus turers can attract fresh investment and give a big boost provided by the RBI, the relief package to the automo- to ‘Make in India’. The reduction in MAT is welcome. bile and real estate sectors and the rural uplift expected These tax cuts will leave more money with the corpo- from the good monsoon have the potential to kick start rates for investment and remove the negative image of the economy and push it to higher growth. India as the nation with the highest corporate tax rate. The psychological boost from these bold reforms will be Of course, the external environment needs to be keenly significant. watched. The fact that 20 central banks have cut rates this year is an indication of the challenging global The market has given a big thumps up to the reforms, economic environment. Escalation of the geo-political which can be described as the most path breaking and tension in West Asia is another area of concern. reformative after Manmohan Singh’s path breaking budget of 1991and P Chidambaram’s ‘dream budget’ of 1997. The benchmark indices Nifty and Sensex have delivered the best single day gain of the last 10 years. Dr. V . K. Vijayakumar

04 | Geojit Insights | October 5, 2019 My monthly take-home salary is around Rs 75,000. I have a fixed de- posit of Rs 17 lakh. I would like to buy a house. Would it be wise to use this amount to buy the house or keep the fixed deposit and take Home Vol.: 03 | Issue: 09 | October 05, 2019 Loan and then repay the EMI from the monthly interest on FD? My home rent is Rs15,000. - Anoop Patel, Mumbai Printed & Published by: C J George, Director, Geojit Investment Services Limited 34/659- P, Civil Line Road, Padivattom As per your mail, you are staying in a house which has a monthly rent of Kochi - 682 024, Kerala, India Rs.15,000. As you have not mentioned the cost of the house you are plan- ning to buy, we are assuming it to be Rs. 45 lakhs considering the rent Owned by: Geojit Investment Services Limited amount you pay. So the only option which is left is to take a loan to purchase 34/659- P, Civil Line Road, Padivattom (assumptions as per the mail). Moreover, you are having an a take home Kochi - 682 024, Kerala, India salary of Rs.75,000 (Rs. 9,00,000 per year), which puts you in the 20% slab of income tax bracket. So, taking a home loan will also help you to reduce Printed at: Indu Systems your tax burden. Vishnupuri Building, CUSAT Road, South Kalamassery - 682022, Kerala, India As you have not mentioned the cost of the house you are planning to buy,

we are assuming it to be Rs.45 lakhs. The following are the calculations with Published at: Geojit Investment Services Limited that assumption: 34/659- P, Civil Line Road, Padivattom Kochi - 682 024, Kerala, India In the current loan market, banks provide 80% of the value as loan, the balance 20% has to be the owner's contribution. So, in your case, the bank Editor: C J George, Director, will provide a loan of Rs.36 lakhs and Rs.9 Lakhs will be your contribution. Geojit Investment Services Limited , 34/659- P, Civil Line Road, Padivattom The monthly EMI for a loan of Rs. 36 lakhs will be Rs.32044 at per the pre- Kochi - 682 024, Kerala, India vailing rate of 8.85% (Home loan rate as per SBI website) for 20 years. In the first year you will be saving Rs.76905 from your current tax burden and Phone: + 91 484 2901000 Rs.15,38,096 for the full term of the loan, assuming that you don't have any other deductions. Website: www.geojit.com

In the first year, the total interest paid will be Rs.3,15,859 which will be tak- Email: [email protected] en for the income tax deduction u/s 24 (the full amount will be taken as per the latest income tax guidelines). The principal contribution of Rs. 68,665 Corporate Identity Number: will be taken for the deduction u/s 80C of the Income tax. Both of these will U52599KL1995PLC008606 help in total tax savings of Rs. 76905 in the first year (3,84,524*20%). Geojit Investment Services Ltd. is a wholly owned The balance amount after the contribution of Rs.9,00,000 from the FD subsidiary of Geojit Financial Services Ltd. (assuming that there is no other savings) can be invested in an FD for next 2 years with an interest rate of 6.5%, which will generate an interest of Total Number of Pages: 52 pages (including cover) Rs.39,000 yearly which you can use for paying your EMI. RNI NO: KERENG/2017/72534

Geojit Team: Writers: Dr. V. K. Vijayakumar, Executive Editor The article “Will the Auto Industry bounce back?” summarizes the current Vinod Nair, Head Research situation of the Indian Automotive Industry very well and easy even for a lay Anand James, Chief Market Strategist man to understand. Very well written thanks! - P Manikandan Deepthi Mary Mathew, Economist Manu Jacob, Commodity Research Analyst

Fundamental Research: Dilish K Daniel, Saji John, Abijith T Cherian, Vincent K A, Rajin Rajan P, Antu As part of Geojit’s ‘Go Green’ initiative, Geojit Eapen Thomas Insights magazine, full version, will be digital. To view insightful articles on the markets and the Investment Advisory: Jeevan Kumar K C, Vijayasri Kaimal, Vijayananda Prabhu, Ranjith V M, Gibin economy by industry leaders, visit: John https://blog.geojit.com/geojit-insights-magazine/ Copy Desk: Elizabeth V, Jyothi Radhakrishnan, MAIL BOX: Letters must be addressed to: The Executive Editor, Geojit Insights, 34/659 -P, Civil Line Road, Art: Anoop Mathew, Anand K

Padivattom, Kochi-682024, Kerala, India. Registered Office: or [email protected] 34/659 - P, Civil Line Road, Padivattom, Kochi - 682024, Kerala, India.

Views and opinions expressed in the magazine are not necessarily those of Geojit Insights, its publisher and / or editors. We (at Geojit Insights) do our best to verify the information published, but do not take any responsibility for the absolute accuracy of the information. Geojit Insights does not accept responsibility for any investment or other decision taken by readers on the basis of information provided herein. OUR VIEWS The tax advantage has brought a big Vinod Nair arket sentiment has been weak in the last M four months, till the announcement of change in the big cut in corporate tax on 20th Septem- ber Nifty50 had fallen by 12% from a high of ~12,100 on 3rd June to a low of ~10,640 on 23rd sentiments… August. In the last two months, market was consistently trading below the 200 day moving average, and hovering within a narrow range of 10,650 to 11,100. It was trading in this thin margin because, market was waiting to know

06 | Geojit Insights | October 5, 2019 lus announcements did not time to affect the economy. Having improve the sentiments of the said that all these measures will economy… have a multiplier effect on the econ- The first economic stimulus was omy in the medium to long-term as taken positively by the market, the economy stabilises. Given the which expressed the government’s short-term issues, the market was concern about the slowing economy evading these announcements and and plans to work-on it going moving negatively in accordance forward. It had both supportive and with the momentum of the global corrective measures like reversal of market and weak domestic FPI’s surcharge, speedy recap of economic data. public banks by Rs70,000cr, additional support to housing The latest economic data was finance by Rs20,000cr, tax relief to weak, with the GDP growth of 5% startups, payment of GST refunds having a bad effect on the market. to MSMEs, additional depreciation They were well below the market of 15% for buying new vehicles and expectation and increased the risk lifting of ban on the purchase of new of further downside in economic vehicles by government to replace growth. The data also stated that old ones. FM also indicated that the economy will take more time to they will announce two more such revamp in spite of the supportive plans to revive the economy. And measures announced by the the market was eagerly waiting to government. We will need more know about the upcoming steps and supportive measures from the its implication on the economy with government like higher spending a positive bias. Well, after few days, and stimulus to industries. Besides the second announcement was other important economic data like made regarding PSUBs consolida- Q1 earnings growth, wholesale tion. However, it had no real effect inflation, auto sales and deprecia- in the market, since it did not tion in INR are not helping the provide any add-on package to the market. slowing economy rather an exten- sion to the first announcement. The Market was anticipating for moder- third announcement was more ate improvement in the Indian and understand the global and towards uplifting exports, housing economy by the third quarter of domestic developments which financeand others. In order to see FY20 led by stability in the coun- were being worked-on to elimi- an immediate boost in exports, try’s financial liquidity as NBFCs nate the slowing economy. The firstly, the world economy has to and PSUB recover from the NPA unexpected cut in tax rates by improve. Secondly, it will have a lag issue, increased government ~10 for existing entities and ~20% benefit since it is likely to be imple- spending, good monsoon, demand for new investments have mented only by January 2020. from festival seasons and reduc- changed the negative bias. Given Regarding the housing sector, the tion in interest rate. For a strong the risk averse mode, we had a incentive was targeted towards recovery, we need an improvement conservative view on the market affordable housing which is not the in exports which is currently stuck with a target of 11,600 for Nifty50. problem area today but luxury under trade-war, Brexit, high bond But post this big change, we are segment is. yield and geo-political issues. increasing the FY20E expected EPS growth to 18% from 10% for Overall these announcements did A complete change in sentiment Nifty50. We also increase our not completely change the led by improved earnings one-year target for Nifty50 to sentiment of the market since they outlook… 12,500 valuing at 17.5x did not address the slowing econo- Global market has found some one-year-forward P/E. my in the short-term. For immediate positive momentum in expectation benefits we needed fiscal expendi- of resumption of trade talks The initial three domestic stimu- ture as monetary policy will take between US-China and quantita-

October 5, 2019 | Geojit Insights | 07 tive easing by ECB. This global existing businesses and ~17% for while 7.5% is towards Goldbees. outlook is short-term in nature as new entities. The resultant advan- But we see a possibility to increase foreign investors continue to be tage is going to play for the the mix of small and mid-cap in the cautious with a risk-off mode due to long-term and secure a high growth future, which will be stock specific. uncertainties in global market in the economy. This will in turn followed by high volatility in global reduce the country’s risk and The equity market may trade with a bond yield. provide premium valuation for mild negative bias in the short-term equity market. due to sudden push in prices. But But in the domestic market the we expect the broad market to sentiment has changed a lot led by Given a deep correction in small maintain its positive bias in the strong improvement in earnings and midcap in the last 1.5 years due long-term, with 11,300 likely to be a growth, post the corporate tax cut to slowdown in domestic and global strong support for Nifty50 in the plan. In spite of all these, we expect economy, disruption in system medium to long-term. However, we that the muted economic growth liquidity, structural, cyclical and don’t expect a V shape recovery in and fiscal pain will continue in policy changes, the valuation and the economy and market. Having FY20. Cut in corporate tax will not prices of these classes of equity said that there is a chance that the bring an immediate push in the went down below the long-term worst for the GDP growth will be macro gauge as fiscal deficit will trend. NSE Midcap100 and NSE over by Q2 – Q3 FY20. We had a increase from targeted 3.3% to Smallcap100 indices are also down conservative view on the market 4.0% in FY20, due to loss of Rs1.45 by 30% and 45% respectively. The and cut the target of Nifty50 to lac cr. tax revenue, thereby increas- one year forward P/E stands at 11,600 post the weak Q1FY20 ing the risk of increased govern- 14.5x and 13x which is about 10% results and economic data, but ment borrowing and interest rate. below the five year average respec- today we are changing that view. But this will improve the micro tively, with an all-time high of 25x We therefore increase the EPS factors in the economy led by the and 19x (Bloomberg). We therefore growth for FY20 from 10% to 18% fiscal stimulus, encourage job advise our clients to make room for and maintain 15% for FY21 and generation, increase profitability mid and small caps in their portfolio. FY22. This leads to an EPS of and disposable personal income, We have marginally increased the Rs580, Rs668 and Rs768 for bring new projects and add compet- mix of mid and small cap in Geojit FY20, FY21 and FY22 respectively. itive advantage among Asian peers Equity Model Portfolio (please see We value at one-year-forward P/E to garner gains from globalisation the detailed model portfolio page of 17.5x on one-year-forward EPS and Make in India. Effective tax rate 09) to 17.5%. A majority is still of Rs716 to arrive at target of is reduced from ~35% to ~25% for allocated towards large-cap at 75% 12,500 for Nifty50.

The term “blue chip” was first used to describe high-priced stocks in 1923 when Oliver Gingold, an employee at Dow Jones, observed certain stocks trading at $200 or more per share. The name “blue chip” came from the game of poker in which players bet in blue, white and red chips where the blue chips have the highest value. Today blue chip stocks refer to stocks of high-quality companies that have withstood the test of time.

08 | Geojit Insights | October 5, 2019 OUR VIEWS

All about Cost Sriram B.K.R. Inflation Index (CII) hat is Cost Inflation Index? W Cost Inflation Index, also and its application in referred to as CII, is an index maintained and notified by the Central Board of Direct Taxes, on an annual basis, according to Section 48 of the Mutual Funds Income-tax Act. It essentially measures the relative inflation that prevailed between two given financial years.

October 5, 2019 | Geojit Insights | 09 How CII is computed? According sale after three years, qualify as eligible for Indexation. She to the explanation given in Section long-term. redeemed the investments on 48 of IT act, CII of a financial year is 01.05.19 at Rs.1,25,000. Gains: notified by the central government, What is Indexation? Indexation is Rs.25000. They are Long Term, having regard to 75% of the the process of improving ‘Original since the investment was held for average rise in CPI (Urban) index cost of acquisition’ of a capital more than 36 months. during the immediately preceding asset, with that of inflation as meas- year. The comparison index is ured by CII that prevailed during the Calculation of Indexation and changed to CPI (Urban) since holding period while calculating the taxable capital gains: 1-4-2016. capital gains. Since gains are the This is where Debt mutual funds difference between sale value and scores over other investment Base Year shift: Base year is the the purchase cost, an improved options that are without Indexation year from when the CII series is cost of acquisition (as per CII) benefits (like FDs), where taxation being published with the base value would likely result in lesser gains, is on the whole gains and as per the as 100. Earlier the base year for CII and hence lesser tax outgo. Index- individual’s marginal tax slab. used to be 1981-82. Budget 2017, ation benefit helps in ascertaining proposed to amend the Base Year the capital gains after adjusting for Alternatively, without indexation, of CII from 1981-82 to 2001-02. The inflation, to reflect a more realistic the tax would be charged on the reason for base year change is economic result. Total Gains i.e., Rs.25,000 and at mainly due to the difficulties and the individual’s respective tax problems tax payers used to face How to calculate the Indexed slabs. Which means an assesse in for valuing the properties bought cost of Acquisition / Purchase? 30% tax bracket would have a tax before the 80s. It was equally Indexed Cost of Acquisition / liability of around Rs.7500, 20% tax difficult for the tax authorities to go Purchase = Original Cost of Acqui- Slab around Rs.5,000 (plus cess by such reported valuations. sition X [CII during the year of sale / and other costs). With Indexation, Henceforth, for capital assets (prop- CII during the year of purchase or the tax liability dropped by -38% for erties) bought before 2001, assess- 2001-02, whichever is later] those in 20% tax bracket and by es can use the ‘Fair Market Value -59% for those in 30% tax bracket. (FMV) as of April 2001’ or the Effective Use of CII in Mutual ‘Actual cost of purchase’, whichever Funds with Indexation Benefits: It must be noted that in the last five is higher. (Non-Equity Oriented Schemes like financial years, CII has highly Debt Funds, FMPs, Gold Funds, moderated due to a drop in the CII and its applications: CII is etc.) average CPI inflation. Still debt primarily used to compute the mutual fund investors were able to inflation effect on the gains during Let’s assume, that an Individual has reduce on the tax outgo, by availing the sale of certain specified assets invested Rs.1,00,000 on the Indexation benefits. During high and investments such as property, 01.04.2016, in a Debt Fund that is inflation years, the tax advantages debt mutual funds, gold, unlisted shares, etc. Calculation of Indexation and taxable capital gains:

Gains arising out of sale of capital assets are called capital gains. Capital Gains can be of two types - Short-term and Long-term- depend- ing on the asset type and the holding period. There are stipulated holding periods for different assets for the gains to qualify as ‘long-term’. In the case of property, gains arising from sale after two years (since April17) qualify as long-term capital gains. In the case of debt and non-equity mutual funds, gold, etc. gains arising from

10 | Geojit Insights | October 5, 2019 could be more (as CII would be Year – wise Cost Inflation Index values for reference: higher), sometimes resulting in nil tax (like FY’10 to FY’15).

Debt Mutual Funds have a good potential to maximise the post-tax net yield and returns by way of indexation benefits, and hence lesser tax outgo.

Key points to keep in mind while investing in a debt scheme: Debt MF offers advantages over other traditional fixed income products, but they also come with Market, Interest rate, Liquidity and Credit risks. As explained by us earlier on different occasions, primary factors one should consid- er while looking at debt funds are, the credit quality of the portfolio – how much of the instruments are rated AAA / Sovereign and below, the average maturity and the modi- fied duration – which basically indicates the degree of fluctuations in case of interest rate changes, the concentration level in the portfolio – how much % weight the top holdings / sectors carry, single group or company exposure, the scheme’s and the fund manager’s track record, the risk management processes adopted by the fund house could be checked upon.

Investors should analyze the risk appetite and understand the fund categories before deciding the allocation. One should not over-ex- pose to any category or scheme.

More money has been lost trying to anticipate and protect from corrections than actually in them.

- Peter Lynch

October 5, 2019 | Geojit Insights | 11 OUR VIEWS

When to cash in Anand James

mong several other incredi- more efficient than those in many mark of developed societies to be A ble things, the Indus Valley areas of Pakistan and India today [i]. meticulous about managing what is Civilization is known for its All the houses had access to water left behind after consumption. Take urban planning, a key part of which and drainage facilities. Drains had that allegory to the field of invest- is its elaborate drainage system. movable stone slabs and inspection ments. Do we ever have an exit The systems for waste water drain- points. Sewage was carried from plan for our investments? Our exits age and trash collection used in the homes through earthenware waste are mostly prompted by a sudden cities throughout the Indus region pipes to areas away from the city. inexplicable urge to do so, or a were far more advanced than any And so on. Such elaborate designs sudden need for money, or a found in contemporary urban sites in as early as 3300 BCE for taking out sudden fear of apocalypse. There is the Middle East and arguably even the trash, suggest that it is the hall so much around us that tells us

12 | Geojit Insights | October 5, 2019 what and when to purchase, but so tions can always be misguided point ensures that you lose only so little about when and how to let go. by fear and greed, but a few much. This will ensure that you will guidelines could be handy. not sit crestfallen with no capital to Exit plans? No, thank you sir. What can be a realistic profit invest, just when opportunities The sales pitch of a successful expectation? What cannot be, come beckoning again. investment advisor has two well is the amount you are in “need” defined parts. First is about lining of. You can’t expect each of Closing note: Archaeologist up the right set of products suitable your stock to generate windfall Jonathan Mark Kenoyer suggests for the customer. Second is about gains. So, a starting figure can that “the Indus River[iii] changed how well he can appeal to the be arrived at by taking the course, which would have customer’s insecurity, his/her/their annualized risk free rate that hampered the local agricultural need or greed. But seldom, if ever, you could be earning, which is economy and the city's importance is enough stress given on when to 6.6 %, if you consider India’s 10 as a center of trade. But no cash in on the investments. More year treasury yield and adding it evidence exists that flooding often than not, it is the introduction with the present CPI, which is destroyed the city, and the city of a new product or a better stock around 3.21%, giving you 9.8%. wasn't totally abandoned”. Indus that prompts a change in the inves- 3. Is the upside expectation expert Gregory Possehl says, “a tor’s portfolio. So, the whole commensurate with that of changing river course doesn't ecosystem of investments works in its market cap? As a loose explain the collapse of the entire such a way that you as a customer guidance, small cap stocks Indus civilization. Throughout the is at its weakest when it comes to move more steeply than that of valley, the culture changed”. Suffice exit. It is not dissimilar to any other large cap. to say that, no amount of meticulous investment or purchase, however. 4. Is it May? The age old adage planning could avert the inevitable, Be it your car, land or house, no one is “sell in May and go away”. but did ensure that it was in its tells you the optimum time to History of stock market trends mature form from 2600 BCE to 1900 encash. When it comes to stock across the globe shows that BCE and lasted 2000 years. That is investments, even a seasoned stocks exhibit seasonality and no mean feat. technical analyst may not be able to they trend down or up during consistently call the top or the specific periods of the year.Re- Often, the idea of “investing for the exhaustion of an uptrend. cent history, however has long term” indirectly suggest that the evidence that one could miss exit decisions are to be considered Having said that it is inevitable that out on major moves, if this is only at the long end of that “term”; you feel some discontent after the followed on blind faith, but the only, that term is always uncertain. sale. You could rue about the profits underlying suggestion on The idea of accumulation cannot that you could have made, or the seasonality remains very work if you don’t have a release losses you could have avoided, had relevant and employable, just plan, a consumption plan, or a you held on it for a trifle longer, and like how my June’s diversion plan. Make systematic so on. Behavioural theorists call this articlepipped the markets to checks, a part of your investment as “cognitive dissonance[ii]”, which turn higher in September based strategy and hold if you could, and is the mental discomfort experi- on seasonality. exit if you must. It will not insure you enced by a person who holds two or 5. Have you lost more than “x” from failures though, but it will make more contradictory beliefs especial- percentage? This “x” has to be your entries more meaningful and ly when the belief clashes with new the maximum threshold pain or your long term journey more fruitful. evidence perceived by the person. loss in investment you can So, how can you make an exit from bear. “X” could be an arbitrary Food for thought: Now that your investments, and also be at figure, could be a multiple of the markets are on an upswing again, peace with yourselves? risk free rate, or just say 10%. how much cash will you strive to keep in your portfolio? Try asking yourself these questions. Each of the first four points, are in 1. Have the circumstances of conflict with the idea of letting profits your investment changed? If run, and strikes at the very notion of [i]https://en.wikipedia.org/wiki/Indus_Valley_Civi- lisation yes, is it for the better? Is it too stock picking. But when they are [ii] https://en.wikipedia.org/wiki/Cognitive_disso- good to be true? Or too bad? asked in unison, it gives a consen- nance [iii] https://www.nationalgeographic.com/archae- 2. Has the stock risen to your sus opinion making the exit ology-and-history/archaeology/mohenjo-daro/ expectations? Now, expecta decision, a sober one. And the fifth

October 5, 2019 | Geojit Insights | 13 GUEST COLUMN

Ruling out the Twin Mahesh Vyas Balance Sheet phenomenon

t is worrisome that India Inc has stopped, for all since the 1991-92 liberalisation, been so reticent in practical purposes, investing into the creation betting on the future. In this sense, this is an unusual I of new capacities. We have chronicled in situation. several brief essays over the past nine months, this unusual abdication. What brings us here? Is there a problem with the health of the corporate sector? Has it so weakened Investments is an expression of confidence on the its balance sheet through reckless borrowing such future. And, the corporate sector as a whole has never, that it cannot invest anymore? Is this a case of a

14 | Geojit Insights | October 5, 2019 continuation of the Twin Balance paying interest and principal. So, the depth of financial stress is Sheet (TBS) problem articulated in best seen in its travelling to the January 2017 in Economic Survey, An interest cover between 1.5 times larger companies - to Deciles 4, 3, 2 2016-17? TBS problem was an and 2 times is workable but, ideally and even 1. incorrect diagnosis of the problem it should be over 2 times. then and it is irrelevant today as This data tells us that the worst well. In 2014-15 and 2015-16, interest years of the corporate sector in cover stood at 1.9 times. So, it terms of its inability to repay loans The TBS postulated that a surge in wasn’t too bad even when the were between 1997-98 and borrowing leads to over-leverage Economic Survey was painting the 2003-04. During this period even which in turn leads to debt-servicing sector red. By 2017-18, interest Decile 2 companies were barely problems. It drew a picture of corpo- cover had climbed up to 2.2 times. able to service their debt obliga- rate distress based on the aggre- tions. The best period begins in gated financial indicators of a select Evidently, the corporate sector as a 2004-05 and ends in 2011-12. set of companies in 2016. A whole does not have difficulty in criticism of that analysis is that it servicing its debt. Of course, it is From 2012-13, we see stress was based on a purposively select- always possible to find companies building up to Decile 4 and some- ed set of companies and therefore that are stressed. But, the corporate times higher but not decisively was not necessarily an accurate sector as a whole is not stressed on higher than Decile 4. This was not representation of the state of the servicing its debt obligations. Yet, anywhere as bad as it was during corporate sector as a whole. the corporate sector as a whole, the late 1990s and over the turn of has walked away from investments. the century. More importantly, the Without similarly cherry-picking only stress started showing signs of distressed companies we can see A useful way to understand the receding in 2016-17 when the that the debt-equity ratio of all depth of financial stress (without Economic Survey was painting a non-finance companies in the Prow- cherry-picking the sample) is to gory picture of the same. In ess database (over 20,000 compa- study the distribution of interest 2017-18, interest cover stress had nies) in 2013-14 and 2014-15 had cover by the size of companies and clearly receded leaving all the top reached a decadal peak of 1.16 see how this distribution has four Deciles back in good health. times. But, a gearing of this order is changed over time. To do this, we not alarming. A decade earlier, the divide the full set of sample compa- But, in 2017-18, the corporate ratio was regularly more than 1.16 nies into ten equal bins reflecting sector refused to invest into new times. So, the increase to 1.16 their size and estimate the interest capacities. times was not exceptional and so cover for each bin. does not lend itself to the argument Evidently, the problem with the that the corporate sector was We label the size-bin with the corporate sector is not in its balance over-leveraged. largest 10 per cent companies as sheet. Decile 1 and then progressively But, more importantly, the ratio was label them through Decile 10 which The flip side of the TBS is the health down to less than 1 in 2017-18. represents the size-bin of the small- of the banks. Following the Asset Preliminary estimates suggest that est companies. Quality Review mandated by the it could have remained under 1 RBI, the reported non-performing even in 2018-19. Evidently, the We see that size-bins of smaller assets of banks soared. As a result, corporate sector as a whole is not size companies either do not make the capital adequacy ratio of over-leveraged. It can borrow and profits or do not make adequate commercial banks dipped to 13.3 grow but, it doesn’t. profits to service their debt. This is per cent by the end of March 2016. true for five smallest size-bins It was 13.9 per cent as of March What about financial stress? (Deciles 6 through 10). Interest 2013. But, thanks to some write-offs An interest cover less than 1 is a cover in these bins is almost always and some re-capitalisation of public clear sign of financial stress less than 1. But, even Decile 5 has sector banks, capital adequacy ratio because this indicates an inability to an interest cover that is less than had climbed to 14.3 per cent as of even pay interest from its pre-inter- 1.5 times. This is true throughout March 2019. This is the highest est and pre-tax profits. An interest the nearly 3-decade history of the CAR recorded in at least 20 years. cover less than 1.5 is also stressful corporate sector captured by the because it leaves little buffer after Prowess database. continued on page 17

October 5, 2019 | Geojit Insights | 15 OUR VIEWS Return of QE Deepthi Mary Mathew

he global economy is enter- The European Central Bank (ECB) The slowdown in the Eurozone T ing the next phase of loose has gone a step further by announc- forced the ECB to resume the bond monetary policy. Federal ing the return of Quantitative Easing purchase programme, which was Reserve for the second time since (QE). Mario Draghi, the outgoing put to halt in last December. ECB 2008 has cut the interest rates. In its president of the ECB has announced has cut the growth forecast for the September meeting, Fed has a deposit rate cut by 10 bps from -0.4 Eurozone area to 1.1 percent this lowered the target range for its key percent to -0.5 percent. In addition, year, and 1.2 percent in 2020. The interest rate by 25 basis points to a ECB will be purchasing € 20 billion of inflation rate was also lowered to range of 1.75 percent and 2 bonds every month from November 1.2 percent this year, and 1 percent percent. onwards. for the next year.

16 | Geojit Insights | October 5, 2019 Growth alarms in Eurozone turn out to be much worse for tantrum’ of 2013. The emerging Developments in the global econo- Germany. markets found it difficult to digest my are not providing conducive the news of interest rate hike by the environment for economic growth. The political developments in Italy Fed. The interest hike should have The negative impact of US-China also are not favourable for been considered as a revival sign trade war is not just felt in their Eurozone. With 40 percent of total of the American economy, but respective economies, but across economic output of the Eurozone instead it created a series of turbu- the globe. It has created an atmos- coming from Italy and Germany, lence in the emerging economies. phere of policy uncertainty. recovery of both these economies is important for the region. India was also not immune from it. The uncertainty surrounding We were one among the ‘fragile BREXIT has added more layers of Is QE the solution? five’ economies, apart from Brazil, muddle. If Britain leaves the The developments in the Eurozone South Africa, Indonesia and Turkey. European Union without any deal, it called for an adequate response The hint of a rate hike by the then would disrupt the movement of from the ECB. However, the ques- Fed chief Bernanke led to a reverse goods and services. BREXIT tion is whether the ECB should use flow of capital from emerging econ- without a deal would lead to more the tool ‘QE’. Unlike in the past, this omies to the US. The result was a tariffs and border checks which are time there were many critics on strong dollar and depreciating negative for global trade already Draghi’s decision to bring back QE. currencies of the emerging econo- suffering due to the US-China trade The QE programme was first imple- mies. It is a puzzle difficult to solve war. mented by Bank of Japan in 2001 on why even with a large-scale to cure the ailing Japanese econo- bond purchase programme like QE, Moreover, debate is going on my. The sub prime crisis in 2008, the attainment of 2 percent inflation whether Germany is heading to a forced many developed economies rate is still a difficult task for many recession. Germany is the largest to resort to QE to lift their respective economies. On the other hand, the economy and the powerhouse of economies. The Federal Reserve, savers and pensioners suffered the Eurozone. German economy ECB and Bank of England were all with theses policies. heading towards a recession won’t votaries of QE. However, the effect be good news for the Eurozone as of the loose monetary policies was With the coming back of QE, the well as for the global economy as a not confined to theirrespective question is how long it will take for whole. The brunt of the US-China economies. The spill over effects the global economy to return to a trade war was largely felt in Germa- were felt across the globe, espe- normal path of monetary policy. Or ny. cially on emerging economies like is it even possible to return to a India. For instance, the cheap normal path of monetary policy or is The slowdown in the global econo- credit from the developed econo- it the new normal. “Will interest my mainly due to trade tensions mies flooded the emerging markets rates ever return to normal, and between the US and China, and in search of higher returns. why aren’t they returning to BREXIT worries have brought a normal?” enquired Bill Gates in one slump in the global demand. The Still, a consensus is not reached on his recent interviews. It looks like share of exports in Germany’s GDP whether QE was an effective tool in no one has an answer to this ques- is 47 percent. The number clearly uplifting the crisis hit economies. tion. shows that the performance of the However, the cheap credit flowing export sector is important for the from the developed to emerging Everyone is now eyeing the Fed, on health of the German economy. In economies created a very volatile whether it will also come up with a addition, if the US proceeds with and uncertain market. The best QE programme. In Trump’s US, it tariffs on cars, the situation could example in this regard is the ‘taper won’t be a surprise.

Continued from page 15 Evidently again, banks are corporate sector or the banks. It was reasonably strong on the aggregate. well-stocked and the problem is not never a Twin Balance Sheet Corporate balance sheets allowed in their balance sheet either. problem. Compared to the them to borrow and bank balance mid-to-late 1990s when Indian sheets allowed them to lend. But, In fact, the problem regarding the corporate sector saw its earlier both did not. current investments slowdown was growth compression, both balance The author is the MD and CEO of Centre for never in the balance sheet of the sheets in the recent years were Monitoring Indian Economy Pvt. Ltd.

October 5, 2019 | Geojit Insights | 17 OUR VIEWS Asset Allocation Jyothi Radhakrishnan

ost people mistakenly risks and maximize your potential mix of assets to hold in your portfo- M believe that stock choices returns. And this makes it important lio can be so complicated that we determine success. In that your investments are allocated often jump at thumb rules. "100-mi- reality, one of the most important over a variety of asset classes such nus-age" rule is a simple way to aspects of investing, besides as equities, fixed income, and cash; determine asset allocation. The starting early — is asset allocation. because each asset class performs rule says you should take 100 and This is because when you decide to differently over time due to its subtract your age: i.e. at 40 you invest your hard-earned money, unique balance of risk and reward. would have a 60% allocation to you naturally want to minimize your The process of determining which stocks; by age 65, you would have

18 | Geojit Insights | October 5, 2019 reduced your allocation to stocks to situation and how much money will passes and the capital markets 35%. This is referred to as a “declin- be available to save toward finan- move up and down, your target ing equity glide path” where every cial goals. They will also need allocations can get out of sync with few years you decrease your alloca- larger buffers of liquid investments the original percentage allocation. tion to stocks thus reducing the to meet emergencies. And many investors take on more volatility and risk level of your risk than they can handle, as they portfolio. So, if you are a common investor, go on for years without using one then it is better to opt for the simple strategy - rebalancing their But the "100-minus-age" rule does goal-based approach to investing. portfolio. Rebalancing involves not consider a lot of important It is more scientific, situation-aware making adjustments to your invest- factors. The biggest drawback of and helps you understand why you ments to bring the portfolios this formula is that it puts every are saving in the first place. It holdings back into alignment with individual in an age group in the places your goals right at the centre your asset allocation strategy. same box, but individuals typically of the advice process and builds have different personal situations, the investment strategy to fulfil For instance, if you have over-com- different liabilities, different goals multiple objectives over varying mitted to certain sectors, then it and different risk profile. So is deter- timelines. needs to be brought to align with mining your investment allocation your asset allocation strategy. And by using the "100-minus-age" rule a Goal-based strategy is not about on the other hand, you can smart approach to investing your outperforming benchmarks or increase the stakes if there was money? competitors, but about how well under-commitment to themes that your portfolio is tracking against a look promising now. Financial One must always remember that stated goal. By investing for individ- planners suggest you should rebal- asset allocation that works best for ual goals depending on the availa- ance your investment portfolio after you, at any given point in your life, ble time horizon and risk tolerance every big upward or downward will depend largely on your time for each, you focus on the swing in the stock market that horizon, your ability to tolerate risk long-term goal and avoid worrying disturbs the values of the existing and the predictability of your about the inevitable short-run pre-determined asset allocation. income. Here we discuss why it’s volatility. You will be tracking the Hence, you should rebalance your important to adjust asset allocation progress for each investment sepa- portfolio by changing your equity based on the volatility of income. rately instead of the portfolio’s allocation to 50%. overall performance. This helps you Salaried individuals have a regular “identify your important/ immediate How to do Goal-based investing? stream of income and can opt for goals” and ensures that you stay Geojit’s Online Financial Planning investment solutions that have focused and motivated to keep tool is an online financial planning short-term risks but give higher investing sensibly for a long time. platform where you can manage returns in the long term. But your personal finances on your self-employed professionals such Don’t Set It and Forget It own. It helps you to do comprehen- as lawyers, artists, architects and Asset allocation is all about finding sive financial planning including consultants etc. have fluctuating the right blend of investments that retirement planning on a single income as a result of the type of works for you in the current stage of platform. work that they do. This will have a your financial journey. It is not a one significant impact on their financial time-and-done activity. As time

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."

- Robert Kiyosaki

October 5, 2019 | Geojit Insights | 19 BONDS Basil has a moderate risk profile income securities because you know and wants to invest for the medium the exact amount of cash you get term without thinking about the back if you hold the instrument till short term volatility of the stock maturity. market. He decided to meet Anandu, a financial advisor to Basil: How can I invest in bonds? understand more about bonds. Anandu: Bonds can be bought and Anandu: Bonds are generally sold in the open market just like you considered less risky investment buy and sell stocks, before the compared to equity and hence agreed time period. many investors with a low risk appe- tite invest in bonds. To diversify the Here are a few terms about bonds investments in various asset class- that you should be familiar with: es you can include bond instru- ments also in your portfolio. You can - Coupon invest in long term and short term - Maturity instruments according to the invest- - Yield to maturity ment objectives of the investor. - Market price of the bond - Credit risk A bond is a debt instrument that a government or a company issues to Bonds have a face value (what it is raise money from the public. sold for initially/principal amount), Governments raise money for however they also have a market funding public expenditure value (price at which the bond trades programs. Corporates use the in the secondary market) and this money for a variety of puposes such keeps fluctuating.The coupon rate of as building a new plant, purchasing every bond is based on its face value. equipments, or business develop- The return investors get on a bond is ment. known as the yield. It is the rate of interest the bond pays, expressed as In simple words, bonds are nothing a percentage of its market value. more than a loan for which you are the lender. The organisation that For example, if you bought a bond at sells bond is the known as borrow- Rs.1,000 par value with a 5% coupon, er. The issuer of a bond should pay your yield would be 5%. (Coupon the investor something extra in the divided by value of bond x 100) And form of interest payments, which the yield of a bond is inversely related are made at a predetermined rate to its current price: this means, if the and schedule. The interest rate is price of a bond falls, its yield goes up. referred as ‘coupon’. The date on which the issuer has to repay the For example, if a bond with a face amount borrowed (known as face value of Rs.1000 falls to a market value) is called the maturity date. price of Rs. 900, the yield would rise Bonds are also known as fixed to 5.55% (5/900 x 1000).

20 | Geojit Insights | October 5, 2019 But if the price of the bond rises to the name suggests, its most attrac- Rs1100, then the yield would fall to tive feature is absolute tax exemp- 4.54%. (5/1100 x 1000). tion as per Section 10 of the Income Tax Act of India, 1961. Tax-free Even though the market price of a bonds generally have a long-term bond fluctuates, its face value (i.e. maturity of typically ten years or what it can be redeemed for at the more. BONDS end of the fixed period) remains the same. In this case it is Rs.1000. Basil: What are the advantages and disadvantages of investing in The higher the yield of a bond, the bonds? riskier it is seen to be and the great- er the chance that a company or Anandu: Bonds pay off in two ways government which issued it may not first, you receive income through the be able to repay the money. This is interest payments. where bond rating agencies like ICRA, CARE, CRISIL etc., help us Second is capital gain that you as they grade fixed income securi- receive if you resell the bond at a ties based on current research. This higher price than you bought it. rating system indicates the likelihood of the issuer defaulting Bonds can help offset exposure to either on interest or capital more volatile stock holdings.Like payments. stocks, bonds can be packaged into a bond mutual fund. A bond fund Basil: What are the types of bonds? can also reduce risk through diversi- fication. Anandu: There are mainly, two types of bonds i.e., corporate bonds The disadvantages are: and Government bonds. Bonds pay out a lower return on your investment than stocks. They Corporate bonds: are issued by have credit risk.The issuer may companies to raise capital. The default on its bonds i.e. they may fail bondholders get a specified return to make timely interest or principal every period. These bonds can be of payments. (the default risk is high two types. for corporate bonds)

Government bonds: are issued by Interest rate changes can affect a the Government to finance their bond’s value. Rising interest rates projects. And in India, the market will make newly issued bonds more size of Government bond, also appealing to investors. To sell an known as G-Sec, is much larger older bond with a lower interest rate, than the size of the corporate bond you might have to sell it at a market. The bond’s return depends discount. on the prevailing interest rate. The maturity can be anywhere between Valuing bonds can be confusing 3 months to 30 years. because bond yields move inversely with bond values, i.e., the more Tax-free bonds are issued by demand for bonds, the lower the government enterprises. Some yield. examples are bonds issued by NHAI, NTPC, Power Finance Corporation, HUDCO etc which offer a fixed interest rate, and hence is a low-risk investment avenue. As

October 5, 2019 | Geojit Insights | 21 COVER STORY Economic headwinds are Dr. V. K. Vijayakumar strong, but India he economic slowdown in India is worse than can weather anticipated. The 5 percent GDP growth print T for Q1 FY 20 has come sharply lower than most estimates. Going by the poor trends in manufactur- ing, particularly in automobiles, Q2 also is likely to be the storm poor. But there will be clear pick up in growth in Q3 and Q4 and we are likely to end FY 20 with a growth rate of

22 | Geojit Insights | October 5, 2019 around 6 percent, which will be one of the best growth rates among large economies.

Global economy is decelerating Global economy, which accelerated in 2017 and 2018, has been decel- erating this year and is likely to end the year with global output growing at around 3.2 percent. Even though US growth and employment data are impressive, the economy is decelerating after the longest expansion in history. US growth is likely to dip below 2 percent soon. ing how the global economy crashes lead to smart rebounds, Euro Zone is clearly weakening and responds. taking the markets to levels higher is likely to slip into recession if the than the previous highs. Let’s take a UK – EU talks end in a no-deal India will rebound in the second look at the booms, crashes and Brexit. Germany, the powerhouse of half recoveries in the Indian stock the EU, is on the verge of recession The government has responded to market since the early nineties. and the other large economies Italy the challenging environment with and France are also not in good appropriate stimulus. The big bang shape. China’s growth rate has cut in corporate tax rates has come The monetary stimulus almost halved from the peak of 12 as the icing on the cake of several provided by the RBI percent and is likely to weaken stimulus packages announced through four rate cuts will further. Japan is struggling. The earlier. The monetary stimulus start yielding results US-China trade war has impacted provided by the RBI through four soon. Since inflation is global trade. Consequently, poor rate cuts will start yielding results exports have impacted economic soon. Since inflation is very low, very low, there is room growth in most countries. In brief, there is room for further rate cuts by for further rate cuts by the global economic scenario is far the RBI. Another 25 bp rate cut is the RBI. from favorable; a global recession in likely in the October policy. Mone- 2020 cannot be ruled out. tary policy acts with a lag of two to three quarters in India and there- It is evident from the table given Synchronized global monetary fore, the beneficial impact of the above that booms have been stimulus monetary easing can be felt in Q3 followed by crashes and crashes The Fed again cut interest rates on and Q4. Further more, the bountiful have led to sharp recoveries, which 18th September without signaling an monsoon this year will raise agricul- took the markets to higher and accommodative policy. Earlier the ture growth rate, mitigate the rural higher levels. The present down- ECB had announced QE 2.0. For distress and stimulate the aggre- trend will be no different. But it is the first time in 10 years, 20 central gate demand in the economy. Also important to appreciate the fact that banks have cut rates this year, the positive impact of the various the peaks and troughs of the market which is indicative of the serious stimulus measures announced by will be known only in retrospect. slowdown in the global economy. the government will be visible by the Therefore, the only strategy, and This monetary accommodation can last two quarters of the financial the best one too, for the investor is succeed in pre-empting a global year. The favorable base effect to invest systematically unmindful of recession in 2020, but a lot depends alone will raise growth rates in Q3 the short-term ups and downs in the on how the US-China trade and Q4. market. Investors should remember skirmishes evolve. According to the that stocks are available cheap Fed, trade policy uncertainty History will repeat during periods of pessimism. Since accounted for 0.8 percent dip in Stock market presents the classic we are in a pessimistic environ- global GDP in the first half of this example of history repeating itself. ment, there are very good shopping year. Therefore, trade policy and History of stock markets tells us that opportunities for the discerning global trade are crucial in determin- booms are followed by crashes, and investor. Fortune favors the brave!

October 5, 2019 | Geojit Insights | 23

Gibin John WHIZ Geojit’s Investment Analyst, Gibin John, replies to an army personnel’s query on how to effectively utilise his retirement benefits. He is also looking for advise on how to manage his home loan and living expenses after retirement.

am a 43 year old Army which was taken in 2013 from amount of Rs. 3.5 lakh. In this 32 man from Kerala. I could HDFC bank at 8.6% interest rate. instalments of Rs. 5000 each are I not create wealth till now This will end only in 2028. Monthly left. due to family financial living expense is Rs.12000. I have problems. Currently I am getting a term insurance cover for Rs30 I have 1400 square feet two storied Rs.62500 per month as salary. After lakh and am paying a premium of house in a 4 cent plot. This is the deducting PF and group insurance I Rs.7500. I also have an LIC policy main wealth I have created. Also I am getting Rs.53500. I will retire of Rs1 lakh which will maturein have ancestral property of 15 cents from service on March 31st 2022 April 2020 for which I am paying a worth Rs.70000/cent and I have 10 after completing 24 years of serving premium of Rs.6452 per annum. sovereigns of gold. the armed force. My wife is not Health insurance premium of working now. Rs.4200 for Rs2 lakh coverage for My daughter's marriage is my next my wife. I have KSFE chitty of Rs.5 big ambition. She is currently study- I am paying Rs.15000 as home loan lakh which I have already partici- ing for graduation.We are expecting EMI for Rs15 lakh housing loan pated in the auction and got an her marriage expense to be Rs.10

October 5, 2019 | Geojit Insights | 25 lakh. A serious problem which I plan at the begining of one’s career. unnecessary financial burden have noticed is that my home loan during post retirement years. Your will not end even after my retire- You are getting Rs.53500 as take other liability is to pay off your ment. There will be Rs14 lakh home salary after all the deduc- chitfund. With total 32 instalments home loan balance at the time of tions. Subtracting housing loan pending, till retirement you would retirement. Please suggest a EMI, living expenses, and other have completed another 24 instal- solution for this. I am also planning monthly expenses from this you can ments and the balance instalments to buy at least a second hand car save upto Rs.20000 monthly. From to be paid will be eight. You have to after retirement. this amount you should move set aside Rs.40000 from the retire- Rs.10000 to recurring deposit or ment benefits to pay these instal- I am expecting to get approximately debt funds to creating emergency ments. Rs25 lakh as retirement benefits fund for meeting special situation and also around Rs.15000 as a expenses. Your foremost goal is the marriage pension every month. I am planning of your daughter. For this goal you to take up another job after retire- Besides the above mentioned are expecting an expense of Rs.10 ment on a monthly salary of investment you should start another lakh. You may find this amount from minimum Rs.15000 and also I can recurring deposit or debt mutual your retirement benefits and invest let out first floor of my house from fund investments of Rs.10000 for in risk free instruments like bank FD which I expect Rs.5000 per month next two years till retirement. If this or in debt mutual funds. From this as a rent. investment gets 7% return you can investment you may get the amount accumulate around Rs2.5 lakh. By required for your daughter’s Please provide a expert advice on using this amount as well as the marriage. We urge you to invest effective utilisation of my retirement maturity proceedings of insurance since the money should cover the benefits. Also give an advice on amount, you can fulfil the dream of inflation risk to retain its value till the how to manage my home loan and buying a second hand car or a new date of marriage. living expense after retirement. one. When you will retire from current Gibin John, a certified financial The most welcome cash flow is the service your age will only be 45. At planner replies: Rs25 lakh which you will get as that time you may get Rs.15000 as I appreciate your decision to seek a retirement benefit. But more impor- pension but this will not be sufficient financial planner's service in tant is how you manage this to meet your family expenses. Also managing your finances. Based amount. you cannot assume to work beyond your requirements, I understand 60 years. Here we assume that you that you want to know about finan- After retirement your main source will work till age 55. Since expenses cial planning to safeguard your of income will stop. So it is better to grow every year, to sustain long retirement against liabilities, want reduce the liabilities which you will years of retirement, you need to find to plan for your daughter's marriage have to pay in future. You are a job which will pay a monthly and a plan to utilise the retirement expecting Rs.15000 as pension income of Rs20000- Rs25000 at benefits. You have two more years and Rs.5000 as a rental income least so that you can meet your for retirement but you have not during post retirement period. But expenses and at the same time created enough wealth to secure this is not sufficient to pay current invest something to meet future your future life. Loan term going home loan EMI, chit fund monthly expenses. So, out of this salary you beyond your retirement age is what payment and meeting living will have to invest a minimum of haunts you the most. expenses. Rs.13000 in aggressive hybrid mutual funds. If you get 10% return Lack of proper retirement planing is At the time of retirement the on this investment you would create not just your problem but also of balance payment to the housing a corpus of Rs.25 lakh at the age of most of the people. Most people loan will be Rs14.5 lakh. The 55. This can ensure a peaceful think about it only towards the final current interest rate of this loan is retirement life. years of their working period. In this 8.6%. At any given point of time, short period they will try to amass loan interest rates will be higher You should continue the current some amount but it would not be than deposit rates. So it is better to term insurance as well as the health sufficient to meet the living expens- pay off the loan at the earliest, insurance in the name of wife also. es after retirement. Ideally, every- which will help to save the higher Wish you all good health and body should start their retirement interest portion which will cause prosperity!!

26 | Geojit Insights | October 5, 2019

OUR VIEWS Does Crude oil have a room above $80/barrel? Manu Jacob

henever there is tension in the Middle East, In November of 2016, Organization of Petroleum W crude oil comes in crosshair. The recent attack Exporting Countries (OPEC), a group consisting of in Saudi Arabia, the world’s biggest crude oil the major crude oil producing nations, decided tolimit exporter, has disrupted more than half of its daily their production in an effort to lift the prices from output. Consequently, the crude oil prices spiked in multi-year lows. The oil cartel OPEC and their major major global platforms, rallying to monthly highs. But allies including Russia entered into strategic supply the question is: how long such mishaps could influence cut since January 2017 to support the oil prices. the market? For obvious reasons, its impact is for the Crude oil prices have been rising since then. short term. But in the long run, prices would follow the factors that exist for a prolonged period. Interestingly, some external factors contributed to

28 | Geojit Insights | October 5, 2019 $50.26 per barrel in the third quarter As new rounds of tariffs have been of 2018. The prices were knocked imposed since September, the down by surging supplies and trade relation between US and slowing demand to witness the China have been worsening as worst monthly fall in two years in days pass. Regardless of the fact

Source: Reuters October of 2018. Similarly, in the that both countries relaxed some of first half of 2019, crude oil prices their protracted tariff rows there is a witnessed an upswing initially and growing speculation among the the Brent crude reached as high as market watchers that President $75.60 per barrel and soon slipped Donald Trump would let the trade to the vicinity of $60 per barrel. dispute linger until the next election. Even after keeping aside Factors hindering the prices all these speculations, the statistics Increase in US production has would not let the market remain so been counterweighing the efforts of calm. In the second quarter of OPEC-led supply cuts from its very 2019, the Chinese economy beginning. As per Energy Informa- posted 6.2% growth year on year, tion Administration (EIA), the US lowest in more than two and a half crude oil production increased by decades, after marking a 6.4% 17% in 2018, producing 10.96 growth in the first quarter. million barrels per day. In 2018, the US became the world’s largest The International Monetary Fund price surge including outages in crude oil producer surpassing has downgraded the global growth Libya and Nigeria, political crisis Saudi Arabia. Being the major forecast for 2019 to 3.2% in July and US sanctions in Venezuela, crude oil consumer US consumes from a forecast of 3.3 % given in geopolitical tensions surrounding more than three fourth of its April. For 2020, the global growth Middle East and US sanctions over production and its exports are forecast was downgraded by 0.1% Iran’s crude oil exports. However, equivalent to only half of Saudi points to 3.5%. over the past two and a half years, Arabia’s oil exports. supply glut still remained a key issue that restricted the prices from settling on a higher trajectory. Whereas during the later period, cooling demand took toll and added downward pressure on prices.

Brent crude oil, a blend that is extracted from North Sea and traded in Inter Continental Exchange (ICE) platform, was trading at a near four year high of $86.63 per barrel, it then dived to Source: Reuters, Geojit Research

October 5, 2019 | Geojit Insights | 29 OPEC-led supply cuts International Energy Agency (IEA) agreement are capable of pumping Since March 2019, the OPEC and have lowered the crude oil demand more oil in the market. The non-OPEC complied more than outlook for 2020. The crude oil economically stable nation like 100% in the agreed supply cuts, market witnessed a sluggish growth Russia could increase supplies whereas the compliance was below in demand during the first half of once the country is relieved from 100% in January and February of 2019. For the rest of the year and in the pact. Increasing supplies from 2019. Saudi Arabia and Russia, the two oil giants who are involved in the pact, had to give up some of their market share against US during this period. Besides, Russia had repeatedly raised their concern over slowdown in its economic growth from cutting down crude oil production. Despite all these concerns, the OPEC nations and their allies agreed to extend the supply cuts until March 2020.

Several times during this period, certain OPEC members were Source: EIA, Geojit Research granted exemption from supply cuts. OPEC’s ministerial panel decided to give exemptions to Iran, Venezuela and Libya in December 2018 for the remaining period to alleviate their burden from external factors. Iran was under the shadow of US sanctions over the nuclear deal and Venezuela was under US sanction over democratic issues. Libyan oil production was repeated- ly confronting chronic production outages due to political divisions Source: EIA, Geojit Research and civil war and the oil exports wereoften suspended. 2020, crude oil production is United Sates is expected to offset expected to be mostly in surplus. the supply shortages arising from Supply and Demand Overlooking this scenario, the OPEC-led supply cuts. On the The global crude oil production in leaders have urged the members demand side, the slowing growth in 2018 averaged 100.71 barrels per for a deeper cut from their already major crude oil consumers includ- day while the total global demand agreed production levels. ing China and India may subdue averaged 99.91 barrels per day in the demand in the upcoming year. the same period. In the first half of Despite all the efforts from crude oil However, the present volatility from 2019, total crude oil production producers, the prices of crude oil unprecedented attack on the oil averaged 100.17 barrels per day remained highly unstable in the long facilities in Saudi will have impact while the demand was 100.06 run. Apart from OPEC-led strategic on the prices for a short period. barrels per day. Although the joint supply cuts, unplanned supply Once the issues settle down, atten- efforts by oil cartels to restrict disruptions and outages have tion will focus on the factors that production have manged to shrink confused the producers and uncer- influence prices in the long run. the volume of crude oil available in tainty of restoring the output has a Even if Brent prices settle above the market, the market remained substantial influence on crude oil $80 per barrel, gravitation from the sufficiently supplied in the recent prices. Not to mention most of the prevailing supply demand factors period. crude oil producers who subdued may not let prices hover higher for production abiding the supply cut a long period. OPEC and the key market watcher

30 | Geojit Insights | October 5, 2019 GEOJIT’S EQUITY MODEL PORTFOLIO

Sl. No. Company Rating Sector Sector Mix Stocks Mix Category 1 Escorts ltd Reduce 2.50% Small Cap Auto 5.00% 2 Maruti Suzuki Hold 2.50% Large Cap 3 Avanti Feeds Buy Aquaculture 2.50% 2.50% Small Cap 4 InterGlobe Aviation Ltd (Indigo) Accumulate Aviation 6.00% 6.00% Large Cap 5 Kotak Mahindra Bank Hold 6.00% Large Cap Banking 6 Bajaj Finance Hold and 18.00% 6.00% Large Cap Finance 7 HDFC bank Buy 6.00% Large Cap 8 Shree Cement Hold 5.00% Large Cap Cement 7.50% 9 Dalmia bharat Ltd Accumulate 2.50% Mid Cap 10 Larsen and Toubro Buy 5.00% Large Cap Infra 7.50% 11 PNC Infra Buy 2.50% Small Cap 12 Titan Accumulate Consumer Discretionary 6.00% 6.00% Large Cap 13 Reliance Industries Hold Diversified 5.00% 5.00% Large Cap 14 PI Industries Ltd. Hold 5.00% Mid Cap 15 UPL Ltd Hold 5.00% Large Cap Fertilizer/Chemical 12.50% 16 Coromandel International Ltd Buy 2.50% Mid Cap 17 TCS Hold 7.50% Large Cap IT 12.50% 18 HCL technologies Ltd Buy 5.00% Large Cap 19 Torrent Pharma Ltd Hold Pharmaceuticals 5.00% 5.00% Large Cap 20 Avenue Supermarts Ltd(DMART) Buy Retail 5.00% 5.00% Large Cap 21 GOLD (Goldbees) Positive ETF 7.50% 7.50% Non Equity TOTAL 100.00% 100.00% Source: Geojit Research Portfolio Mix Category Large Cap Mid Cap Small Cap Cash Non Equity

Current Mix 75.0% 10.0% 7.5% Nil 7.5%

CHANGE IN MODEL PORTFOLIO*

Change in Sector Mix Sl.No. Sector Current Mix Previous Mix Change in Mix Remarks

1 Infra 7.5% 10.0% -2.5% Fund restrictions may limit NHAI to further increase National Highway network in the country, resulting in less projects for the sector. 2 Fertilizer/Chemicals 12.5% 10.0% 2.5% Strong outlook for the sector with benefits of better monsoon & Direct Benefit Transfer. Change in stock/Asset mix Sl.No. Stock Current Mix Previous Mix Change in Mix Remarks

1 PNC Infra 2.5% 5.0% -2.5% Slowdown in Infrastructure spending & difficulty in getting financial closure can impact the performance of the sector. Change in Addition/Removal Sl.No. Sector Additin/Removal Rating Sector Remarks

1 Coromandel Added Buy Fertilizer/Chemical Margins to improve going forward aided by International backward integration. Change in Rating Sl.No. Stock Current Rating Previous Rating Change in Rating Remarks 1 Maruti Suzuki Hold Buy Downgrade 34% volume degrowth in August sales, competition from new entrants & GST Uncertainties * The changes are made in accordance with previous month’s model portfolio. Source: Geojit Research

October 5, 2019 I Geojit Insights I 31 STOCK RECOMMENDATIONS

Rating: HOLD Rating: HOLD Sector: BANKING/FINANCE Sector: IT

IDFC First Bank is founded by the merger of erstwhile Hexaware Technologies Ltd. is an information IDFC Bank and erstwhile Capital First on December 18, technology and business process outsourcing service 2018. At present, the bank’s total number of branches provider. It caters to software services in banking & stands at 279 with a total funded asset to the tune of around financial, healthcare & insurance, travel & transportation ~Rs1,12,500cr. and manufacturing domains. It has 33 global offices with Robust growth strategy envisioned for the merged entity an employee base of around 18,300. Hexaware now has with a renewed focus on the retail business. The bank plans 120 clients in USD 1mn-plus band. to grow the retail loan assets to over Rs100,000cr to reach a 70% loan mix, at the same time reducing the infrastructure In Q2CY19, Revenue grew significantly by 15.1% YoY exposure to NIL in the coming 5 years. The bank plans to to Rs. 1,308cr. By domain, Healthcare and insurance reduce the wholesale loan book to Rs40,000cr by March grew 29.2% YoY, followed by manufacturing & consumer 2020. The bank expects the gross yield of the loan book to (14.2%) and banking & financial services (6.9%). The increase to 13.5% in the next five years. On CASA front, company has consolidated revenue from Mobiquity the bank strives to reach a CASA ratio of 30% within five business for only half a month this quarter. The years, and gradually take it to 40-50% from thereon. The company’s revenues would have been boosted by USD bank also plans to set up 600-700 branches in the next 5 17.6m if Mobiquity revenues for the entire quarter had years. Over next 5 to 6 years, the bank expects the RoA & been included. Operating profit increased to Rs. 191cr RoE to reach to the tune of 1.4% -1.6% and 13% -15% in Q2CY19 (vs. Rs.159cr in Q2CY18) as the operating respectively. margin improved by 62bps YoY to 14.6%, as higher visa costs and other operating expenses were offset by better In Q1FY20, the Net Interest Income (NII) of the bank has pricing and operational efficiencies. The company has increased by 22% on an annualized basis. The total operating income of the bank has increased to Rs1,485cr also managed to keep its attrition rate flat through its in Q1FY20 compared to 1,386cr in the Q4FY19, marking active efforts to manage attrition. We expect the company around 28% annualized growth. Net Interest Margin is to maintain its good operating performance and estimate almost stable in Q1FY20 at 3.01% compared to 3.03% in the operating margin to be flat YoY at 14.4% in CY19E. Q4FY19. In Q1FY20, the bank’s provisions have increased Management has guided for Effective tax rate for CY19E by 95.4% sequentially to Rs1,281cr on account of exposure at 18.5% from 20% in prior years. The company incurred to the tune of Rs1,461cr to two financial service firms capital expenditure worth USD 4.6m in this quarter, in (including one HFC), which were recently downgraded by addition to USD 3.7m in Q1CY19. Utilisation increased the credit rating agencies. In Q4FY19, the bank has to 80.7% in the current quarter. provided 15% provision for the same, however, after the credit rerating, the bank has increased the provision The company has reported new deal wins worth USD coverage of these accounts to 75% of the outstanding 36m. The company has closed its deal with Mobiquity principal amounting to Rs1,096cr. The bank also made 15% which it acquired for about USD 130m. However, it has provisions for exposure of Rs1,006cr to one infrastructure consolidated Mobiquity’s financials for only half a month account. For other infrastructure accounts amounting to in the current quarter. Consolidated profit including Rs810cr, the bank has provided a prudent provision Mobiquity would have been higher by USD 1.7m if coverage of ~70%. Hence, despite having a 33% sequential included for the entire quarter. The company said that it growth in pre-provision profit, the increased provisions have has several joint pipelines with Mobiquity, with most being resulted in a negative net income of Rs617cr. in early stages as of now. Hexaware is currently trading We strongly believe that the merger and the enhanced at a P/E of 17.6x CY19E. We roll forward to CY20E and focus on retail segment along with a clear growth strategy value the stock at 16x CY20E adj. EPS, as we expect will act positively for the bank on a longer-term. However, the company to continue its strong operating we expect the operating costs as well as the cost of funds performance. Additionally, the consolidation of to remain elevated on a shorter to medium term. Hence, Mobiquity’s financials will boost its top line growth. we value the bank at 1.2x BVPS of FY21E and recommend Hence, we upgrade our rating to HOLD with a revised Hold rating with a target price of Rs45.6. target price of Rs. 410.

Analyst: Abijith T Cherian Analyst: Rajin Rajan P Geojit Financial Services Ltd., INH200000345 Geojit Financial Services Ltd., INH200000345

32 I Geojit Insights I October 5, 2019 For Disclosures and Disclaimers: IDFC First Bank: http://bit.ly/2kNWxcu and Hexaware Technologies Ltd. : http://bit.ly/2kYCUOS STOCK RECOMMENDATIONS

Rating: BUY Rating: REDUCE Sector: AQUACULTURE Sector: AUTO ANCILLARIES

Avanti Feeds Ltd (AFL) is a leading manufacturer of Bharat Forge Ltd (BFL) is a leading player in the forgings Shrimp Feeds and Shrimp Processor & Exporter. The industry. The company is serving several sectors including company has a strong technical and marketing tie-up with automobile, power, oil and gas, rail & marine, aerospace, the Thai Union Group Public Company Ltd (equity construction, mining, etc. BFL’s Q1FY20 revenue de-grew participation of ~25%), Thailand. Avanti exports its by 4%YoY due to slowdown in Industrial export segment products mainly to USA and to other countries like Europe, (down 37%YoY) and weakness in domestic CV (down by Japan, Australia and Middle East. 31%YoY). Both Export & domestic declined by 11%YoY & For Q1FY20, revenue grew by 5% YoY mainly on account 7%YoY respectively. The overall volume remains negative of strong growth in processing revenue (48%YoY) while at -9% due to lower demand. Additionally, a fragile demand feed revenue growth was muted. The total capacity environment for domestic autos and lower visibility towards utilisation of the processing segment improved to ~60% per-buying against BS-VI and impending dip in the US (51% for the new capacity of 15000MT and 78% for the class 8 trucks have collectively marred the near term old capacity of 7000MT). In Feed segment, the industry automotive outlook for the company. EBITDA margin witnessed a de-growth of 10-12% in Q1FY20, however declined by 240bps due to higher input cost and lower the company maintained volumes through market share product mix. PAT de-grew by –28%YoY. gains. AFL’s market share has increased to 47% in FY19 from 43% in FY18. The market share improvement will During the year BFL has secured business win of $50 benefit the company with strong top-line growth when the million across sectors and geographies, and large industry regains its momentum. Currently, Feed segment proportion of the wins are on new product development. contributes ~83% of total revenue. The stocking in the We expect the incremental revenue from new business/ first crop of this year was delayed due to climatic products to grow from current 5% of sales to 15% in next 2 conditions but has picked up in April to June months years. Although, the subdued freight rate and increase in supported by favourable prices and climate conditions. funding cost coupled with the recent revision in axle load The farm-gate prices started witnessing improvement from norms has impact sentiment in short term. However, we April (>30% for large size) which will encourage farmers believe domestic CV business to show some pick up owing and hence the feed volumes. Though the industry feed to pre-buying ahead of BS-VI and correct the current volume is expected to be flat for this year considering the inventory levels of the OEM’s. recent drop in shrimp culture, the company however The center for Light Weighting Technology (LWT) in AP is expects 5%-10% growth through market share gains expected to be fully operational by Q4FY20. Having already supported by consistent product quality and service. We maintain our revenue estimates and expects 14% CAGR secured contract for manufacturing critical component in over FY19-21E. Aluminum in the 1st phase itself, the facility will provide a fillip to growth as it gradually ramps up. BFL’s Aluminum EBITDA margin maintained at 12.5% (12.7% YoY) in forging facility in Tennessee, USA at a cost of $55mn is fully Q1FY20. We expect stable realisation for feed segment focused on new generation vehicle. Recently Bharat forge while factoring better shrimp export prices considering America wholly owned subsidiary of BFL is setting up a ~3%-7% increase witnessed in recent months for various green-field Aluminum forging and machining facility in North sizes. Additionally, the company’s focus on value-added Carolina. The 1st phase of the project involves approx. products (29% of total exports in Q1FY20 Vs 14% YoY) US$56 million capital investment. This investment is backed and improvement in capacity utilisation will support up by orders already secured from prestigious OEM’s and margins. However, the recent surge witnessed in raw material prices (Soya & Wheat which is used in feed has been achieved by leveraging our R&D capabilities. manufacturing) may exert pressure on feed margins We expect that the earnings to remain under pressure for unless the company passes it to the customers and it near term due to lower visibility for both domestic CV and would depend on the progress in shrimp culture activity Industrial export which together constitutes 34% of revenue and prices. We lower our EBITDA margin assumptions to mix. In addition, significant decline in US truck sales in 12.2% for FY20 (earlier 12.6%), but expect EBITDA growth FY20 will further add to the woes in FY21, which constitutes of 19% CAGR over FY19-21E. 29% of sales. However, BFL’s strategy to shift into new The recent improvement witnessed in farm-gate and technological products owing to change in regulation and export prices provides better outlook for both Feed & ramp-up in electric vehicle globally will bring value migration Processing segments. We continue to value AFL at 15x per vehicle in the long run. We value BFL at 18x (1yr fwd considering healthy growth & RoE and no debt, maintain basis) FY21E EPS and downgrade our rating from buy to Buy rating with Target of Rs427. Reduce with a revised target price of Rs376.

Analyst: Vincent K A Analyst: Saji John Geojit Financial Services Ltd., INH200000345 Geojit Financial Services Ltd., INH200000345

October 5, 2019 I Geojit Insights I 33 For Disclosures and Disclaimers: Avanti Feeds Ltd. : http://bit.ly/2m2Pn4e and Bharat Forge Ltd. : http://bit.ly/2mvkrtH MARKET UPDATES

• Indian Industrial production(IIP) increased 4.3% YOY in July 2019 following a downwardly revised 1.2% gain in the previous month and beating market consensus of a 2.3% rise. • The Consumer inflation in India edged up to 3.21% year-on-year in Aug 2019 from the previous month's 3.15% , missing market expectations of 3.30%. • The trade deficit narrowed to USD 13.45 bln in Aug 2019 from USD 17.92 bln in the same month last year and below market expectations of USD 13.60 bln. • The Wholesale Price Index for the month of Aug 2019 rose by 1.08% Year On Year(YOY). • The Indian Manufacturing rose to 51.4 in Aug 2019 from 52.5 in the previous month and below market expectations of 52.2. • Mutual funds industry witnessed a net inflows Rs.1,02,538 crs, in the month of Aug 2019. • The total Mutual Fund AUM on Aug'19 reached to the 2nd highest figure of 25.47 lakh crs. • The total SIP inflows remained steady at 8,231 crs in Aug’19. The Industry had 2.81 crore active SIPs, with an average SIP size of about Rs.2,950 per SIP. • The MF industry has added 87.15 lakhs folios in the month of Aug'19, reaching a new all time high level of 8.53crs folios. • Franklin India Mutual Fund has proposed to change the name of the Franklin India Dynamic PE Ratio Fund of Fund to Franklin India Dynamic Asset Allocation Fund of Fund with effect from October 21, 2019. • ICICI Prudential Mutual Fund has changed the Benchmark of ICICI Prudential Exports and Services Fund from NIFTY Services Sector TRI to S&P BSE 500 TRI with effect from September 09, 2019. • Tata Mutual Fund has changed the fund manager of Tata Gilt Securities Fund from Naresh Kumar to Murthy Nagarajan with effect from September 14, 2019. • IDFC Mutual Fund has changed the minimum application amount from Rs 100 to Rs 5000 of IDFC Nifty Fund with effect from September 11, 2019. • Motilal Oswal Mutual Fund changed the fund manager of Motilal Oswal Long Term Equity Fund from Akash Singhania to Aditya Khemani with effect from September 6, 2019. • UTI Mutual Fund has decided to change the fund manager of the following schemes with effect from August 30, 2019:

Scheme Name Existing Revised UTI Mid Cap Fund Lalit Gopalan Nambiar Ankit Agarwal UTI Long Term Equity Fund Vetri Subramaniam & Lalit Gopalan Nambiar Vetri Subramaniam & Vishal Chopda UTI India Consumer Fund Vishal Chopda& Lalit Gopalan Nambiar Vishal Chopda

CATEGORY V/S INDEX PERFORMANCE Average Returns % (Absolute) Returns % (Absolute) Fund Category Index 1 Month 3 Months 6 Months 1 Month 3 Months 6 Months

NIFTY 50 - TRI 1.47 -6.51 -1.45 Large Cap Fund -1.87 -6.49 -5.50 NIFTY 100 - TRI 1.72 -6.06 -1.92 S&P BSE SENSEX - TRI 1.21 -5.43 -0.09 S&P BSE Large Mid Cap - TRI 1.90 -6.15 -2.63 Large & Mid Cap -1.80 -6.10 -6.53 S&P BSE 200 - TRI 1.89 -6.13 -2.48 Nifty Large Midcap 250 - TRI 2.03 -7.03 -4.70 NIFTY 500 - TRI 1.93 -6.61 -3.40 Multi Cap Fund -1.48 -6.10 -6.47 S&P BSE 500 - TRI 2.02 -6.46 -3.34 Nifty Midcap 100 - TRI 2.51 -9.36 -9.27 Mid Cap Fund -0.97 -7.11 -9.26 S&P BSE Mid-Cap - TRI 2.44 -7.57 -8.98 Nifty Small cap 100-TRI 4.01 -10.88 -13.83 Small cap Fund 0.48 -8.23 -11.05 S&P BSE Small-Cap - TRI 4.15 -9.53 -11.89 S&P BSE 250 Small Cap - TRI 3.99 -11.08 -13.25

34 I Geojit Insights I October 5, 2019 TOPz

Top 5 stock purchases Top 5 stock sales Motherson Sumi Systems Ltd. Vodafone Idea Ltd. ITC Ltd. NTPC Ltd. Ashok Leyland Ltd. Power Finance Corporation Ltd. Yes Bank Ltd. Indian Oil Corporation Ltd. The Federal Bank Ltd. NBCC (India) Ltd. Top 5 holdings by Market value Top 5 holdings by number of schemes HDFC Bank Ltd. ICICI Bank Ltd. ICICI Bank Ltd. HDFC Bank Ltd. Infosys Ltd. Axis Bank Ltd. Reliance Industries Ltd. Larsen & Toubro Ltd. Larsen & Toubro Ltd. State Bank Of India Know Your AMC

MIRAE ASSET GLOBAL INVESTMENT MANAGEMENT (INDIA) Inception Date 20.11.2006

Trustee Mirae Asset Trustee Company Mirae Asset Global Investment Company Ltd, Sponsors South Korea Chief Executive Officer Mr. Swarup Anand Mohanty

MAJOR ACQUISITIONS

AMC Name Year of acquisition

NA NA

SCHEME WISE ASSET OF FUNDS ASSET CLASSIFICATION

Assets Types No of plans AUM (Cr.) % of total AUM Total Schemes 16 34,694.49 100.00 Equity 8 27,310.39 78.72 Hybrid 2 2,486.00 7.17 Debt 6 4,898.10 14.12 Other 0 0 0

FUND MANAGERS AND SCHEMES Fund Managers Major Schemes Mr. Neelesh Surana Mirae Asset Emerging Bluechip, Mirae Asset Large Cap Fund, (Chief Investment Officer – Equity) Mirae Asset Tax Saver Fund, Mirae Asset Hybrid

Mr. Gaurav Misra Mirae Asset Focused Fund

Mr. Ankit Jain Mirae Asset Great Consumer Fund, Mirae Asset Midcap Fund

Ms. Bharti Sawant Mirae Asset Nifty 50 ETF

Mr. Vrijesh Kasera Mirae Asset Healthcare Fund

Mr. Mahendra Kumar Jajoo Mirae Asset Cash Management, Mirae Asset Dynamic Bond Fund, Mirae Asset FMP, (Head- Fixed income) Mirae Asset Savings Fund-Reg Savings Plan, Mirae Asset Short Term Fund

Mr. Yadnesh Chavan Mirae Asset FMP

Mr. Sudhir Kedia Mirae Asset Equity Savings Fund

BRAIN BURGER Dynamic Asset Allocation Dynamic asset allocation is a portfolio management strategy that frequently adjusts the mix of asset classes to suit market conditions. Adjustments usually involve reducing positions in the worst performing asset classes while adding to positions in the best performing assets. It is one such hybrid strategy, when markets appear to be relatively expensive (high price-to-earnings or price-to-book ratio), it is prudent to lower the allocation to equity and increase the allocation to debt. Conversely, when markets appear relatively cheaper, the exposure to equity may increase. Such a strategy establishes an optimum balance between equity and debt based on prevailing market conditions instead of having static weights to equity and debt across market cycles.

October 5, 2019 I Geojit Insights I 35 EQUITY FUND RECOMMENDATIONS: OCTOBER 2019 Data as on 13.09.2019

Equity - Large Cap Funds

Large cap funds invest minimum 80% of the total assets in top 100 companies by market capitalisation. These 100 companies are industry leaders and are having highest growth potential.Hence considered as the safest equity bets and exhibit least volatility in share prices during market uncertainties.Suitable for first time investors and those who hold conservative allocation in equities.

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating INF846K01164 Axis Bluechip Fund(G) 5-Jan-10 5000 29.14 5.22 12.37 9.82 ★★★★★ INF204K01562 Reliance Large Cap Fund(G) 8-Aug-07 100 32.42 -5.71 8.30 8.42 ★★★★★ INF769K01010 Mirae Asset Large Cap Fund-Reg(G) 4-Apr-08 5000 49.56 0.07 10.62 10.80 ★★★★★ INF109K01BL4 ICICI Pru Bluechip Fund(G) 23-May-08 100 40.82 -3.31 8.21 8.26 ★★★★★ INF754K01046 Edelweiss Large Cap Fund(G) 20-May-09 5000 34.57 -4.07 8.15 8.05 ★★★★ INF760K01AR3 Canara Rob Bluechip Equity Fund-Reg(G) 20-Aug-10 5000 24.27 0.12 8.69 8.01 ★★★★ INF179K01BE2 HDFC Top 100 Fund(G) 3-Sep-96 5000 471.70 -0.98 8.86 7.04 ★★★★ INF209K01BR9 Aditya Birla SL Frontline Equity Fund(G) 30-Aug-02 100 214.98 -4.00 5.66 7.75 ★★★★ INF200K01180 SBI BlueChip Fund-Reg(G) 20-Jan-06 5000 38.38 -0.52 6.19 8.93 ★★★★ INF205K01304 Invesco India Largecap Fund(G) 21-Aug-09 1000 27.54 -3.63 6.24 8.08 ★★★★ INF174K01153 Kotak Bluechip Fund(G) # 5-Feb-03 1000 227.12 -2.07 6.49 8.02 ★★★ INF789F01976 UTI Mastershare-Reg(G) 3-Aug-05 100 118.06 -3.23 7.16 7.44 ★★★ Equity - Large & Mid Cap Funds

These funds will keep a minimum of 35% each of its total assets in large and mid cap companies.The mid-cap exposure as well as the rest 30% discretionary portfolio(after 70% specified mid and large-cap exposure, the rest could be invested in debt or other equity instruments) will increase the risk reward ratio of the scheme above the pure large- cap. Medium to long term investors with better risk tolerance levels could select this scheme.

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF769K01101 Mirae Asset Emerging Bluechip-Reg(G) 9-Jul-10 5000 52.11 2.45 12.35 15.46 ★★★★★

INF903J01DT1 Sundaram Large and Mid Cap Fund(G) 27-Feb-07 100 32.93 -4.58 9.96 10.07 ★★★★★

INF760K01167 Canara Rob Emerg Equities Fund-Reg(G) 11-Mar-05 5000 87.47 -8.01 8.41 11.87 ★★★★★

INF205K01247 Invesco India Growth Opp Fund(G) 9-Aug-07 1000 33.13 -3.20 9.70 10.05 ★★★★

INF173K01155 Principal Emerging Bluechip Fund(G) 12-Nov-08 5000 97.21 -10.35 6.51 10.68 ★★★★

INF174K01187 Kotak Equity Opp Fund(G) 9-Sep-04 5000 115.18 -0.94 7.35 9.61 ★★★★

INF740K01094 DSP Equity Opportunities Fund-Reg(G) 16-May-00 500 213.60 -1.75 7.10 9.68 ★★★★

INF200K01305 SBI Large & Midcap Fund-Reg(G) 28-Feb-93 5000 210.30 -3.21 6.34 8.99 ★★★ Equity - Multi Cap Funds

Multicap funds hold a well diversified portfolio as its 65 % of total assets can be invested in stocks across market caps.It is also known as ‘fund manager’s fund’ which leaves it to the fund manager to decide which market cap to invest into. Always choose to invest in this fund looking at fund manager’s credentials than looking at the portfolio because asset allocation can change any time.

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating INF174K01336 Kotak Standard Multicap Fund(G) 11-Sep-09 5000 34.30 -0.33 9.15 11.18 ★★★★★ INF209K01AJ8 Aditya Birla SL Equity Fund(G) 27-Aug-98 100 693.17 -4.87 6.94 9.72 ★★★★★ INF200K01222 SBI Magnum Multicap Fund-Reg(G) 16-Sep-05 1000 48.00 0.64 8.70 11.16 ★★★★★ INF247L01478 Motilal Oswal Multicap 35 Fund-Reg(G) 28-Apr-14 500 25.20 -4.47 8.11 13.50 ★★★★ INF109K01613 ICICI Pru Multicap Fund(G) 1-Oct-94 5000 279.04 -6.94 6.13 8.68 ★★★★ INF173K01940 Principal Multi Cap Growth Fund(G) 25-Oct-00 5000 131.74 -9.29 6.72 7.86 ★★★★ INF179K01608 HDFC Equity Fund(G) 1-Jan-95 5000 636.90 -1.42 8.47 6.70 ★★★★ INF789F01513 UTI Equity Fund-Reg(G) 1-Aug-05 5000 136.66 -6.24 7.28 7.77 ★★★★ INF205K01DN2 Invesco India Multicap Fund(G)# 17-Mar-08 1000 44.76 -9.73 5.30 7.79 ★★★

36 I Geojit Insights I October 5, 2019 Equity - Mid Cap Funds

A minimum of 65% of its total asset is invested in mid-cap stocks that are 101th -250th companies by market capitalisation.This midcap exposure makes it a completely long term oriented portfolio since one cannot rely on mid-caps for shorter-term goals. Suitable for investors having an investment horizon beyond 7 Years and desirable for SIP portfolio. Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF174K01DS9 Kotak Emerging Equity Scheme(G) 30-Mar-07 5000 36.83 -4.59 5.96 11.24 ★★★★★ INF917K01254 L&T Midcap Fund-Reg(G) 9-Aug-04 5000 121.96 -12.28 6.83 10.54 ★★★★★ INF846K01859 Axis Midcap Fund(G) 18-Feb-11 5000 35.58 -2.67 10.59 9.59 ★★★★★ INF740K01128 DSP Midcap Fund-Reg(G) 14-Nov-06 500 51.98 -4.34 5.97 10.45 ★★★★ INF205K01BC9 Invesco India Midcap Fund(G) 19-Apr-07 1000 45.70 -7.21 6.99 8.88 ★★★★ INF090I01809 Franklin India Prima Fund(G) 1-Dec-93 5000 901.57 -5.87 5.03 9.85 ★★★★ INF179K01CR2 HDFC Mid-Cap Opportunities Fund(G) 25-Jun-07 5000 50.18 -11.22 3.88 8.84 ★★★★ INF109K01AN2 ICICI Pru Midcap Fund(G) 28-Oct-04 5000 89.17 -7.53 5.35 7.36 ★★★★ INF843K01013 Edelweiss Mid Cap Fund-Reg(G) # 26-Dec-07 5000 24.89 -9.38 5.39 9.49 ★★★ Equity - Small cap Funds A minimum of 65 % of its total assets is invested in small cap stcoks (other than large and mid cap stocks in term of market capitalisation). With least liquidity among all equity stocks and highly volatile nature, small-cap funds are best suited for really long-term goals like retirement. Minimum investment horizon should be 10 years and SIP is the best option. Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF200K01T28 SBI Small Cap Fund-Reg(G) 9-Sep-09 5000 49.77 -8.97 11.73 15.38 ★★★★★

INF204K01HY3 Reliance Small Cap Fund(G) 16-Sep-10 5000 36.50 -15.89 7.76 10.23 ★★★★★

INF179KA1RZ8 HDFC Small Cap Fund-Reg(G) 3-Apr-08 5000 38.28 -14.73 8.24 9.61 ★★★★

INF917K01QC7 L&T Emerging Businesses Fund-Reg(G) 12-May-14 5000 21.95 -17.03 7.81 10.86 ★★★★

INF090I01569 Franklin India Smaller Cos Fund(G) 13-Jan-06 5000 48.22 -13.45 0.98 7.47 ★★★★

INF174K01211 Kotak Small Cap Fund(G) 24-Feb-05 5000 67.13 -9.13 2.73 8.25 ★★★ Equity Linked Saving Schemes (ELSS) ELSS will invest 80% of its total assets in equity and equity related instruments.This category is generally used for tax saving purpose. Investors could make use of the lock-in feature in these schemes for real wealth creation. SIP investors should note that each instalment will get locked for 3 years. Plan your redemptions accordingly. Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF769K01DK3 Mirae Asset Tax Saver Fund-Reg(G) 28-Dec-15 500 17.26 1.03 13.34 0.00 ★★★★★ INF846K01131 Axis Long Term Equity Fund(G) 29-Dec-09 500 44.29 -0.58 10.18 10.82 ★★★★★ INF209K01108 Aditya Birla SL Tax Relief '96(G) 10-Mar-08 500 29.55 -9.80 7.58 10.34 ★★★★★ INF174K01369 Kotak Tax Saver Scheme(G) 23-Nov-05 500 42.34 -0.73 7.41 9.74 ★★★★★ INF740K01185 DSP Tax Saver Fund-Reg(G) 18-Jan-07 500 47.28 1.75 7.77 9.93 ★★★★ INF205K01270 Invesco India Tax Plan(G) 29-Dec-06 500 48.51 -6.48 7.68 9.20 ★★★★ INF194K01292 IDFC Tax Advt(ELSS) Fund-Reg(G) 26-Dec-08 500 52.03 -9.65 7.56 8.46 ★★★★ INF247L01544 Motilal Oswal Long Term Equity Fund-Reg(G) 21-Jan-15 500 16.66 -5.91 9.10 0.00 ★★★★ INF109K01464 ICICI Pru LT Equity Fund (Tax Saving)(G) 19-Aug-99 500 358.74 -5.69 5.92 7.07 ★★★★ INF173K01361 Principal Tax Savings Fund 31-Mar-96 500 193.67 -9.24 6.59 7.78 ★★★ INF677K01064 L&T Tax Advt Fund-Reg(G) 27-Feb-06 500 50.69 -9.59 6.51 8.00 ★★★ Equity - Value Funds Scheme follows a value investment strategy. Minimum investment in equity and equity related instruments -65% of total assets.Value investing is a long term strategy where fund manager identifies businesses which are futuristic but low-priced now. Long- term lumpsum and SIP investments could be done in these schemes. Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating INF277K01451 Tata Equity P/E Fund(G) 29-Jun-04 5000 128.01 -8.08 8.01 9.63 ★★★★★ INF179K01426 HDFC Capital Builder Value Fund(G) 1-Feb-94 5000 270.35 -10.21 6.89 7.85 ★★★★★ INF677K01023 L&T India Value Fund-Reg(G) 8-Jan-10 5000 33.63 -8.57 6.56 10.01 ★★★★ INF194K01342 IDFC Sterling Value Fund-Reg(G) 7-Mar-08 5000 45.26 -15.52 5.58 6.49 ★★★★ INF109K01AF8 ICICI Pru Value Discovery Fund(G) 16-Aug-04 1000 138.35 -9.53 3.32 6.15 ★★★

October 5, 2019 I Geojit Insights I 37 Equity - Focused Funds

This scheme focused on particular number of stocks (maximum30). Minimum investment in equity and equity related instruments -65% of total assets.This could be seen as a concentrated multi-cap fund. Due to fewer stocks, the risk reward ratio will be higher than multi-cap scheme. Choice of the scheme is mainly based on fund manager’s credentials and suited for SIP towards long term goals.

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF846K01CH7 Axis Focused 25 Fund(G) 29-Jun-12 5000 27.44 -3.30 11.46 11.69 ★★★★★

INF200K01370 SBI Focused Equity Fund-Reg(G) 11-Oct-04 5000 137.34 0.07 9.55 10.31 ★★★★★

INF090I01981 Franklin India Focused Equity Fund(G) 26-Jul-07 5000 39.05 -0.14 7.04 9.15 ★★★★

INF903J01116 Sundaram Select Focus(G) 30-Jul-02 100 175.93 -0.87 10.48 7.39 ★★★★

INF204K01GE7 Reliance Focused Equity Fund(G) 26-Dec-06 5000 43.08 -8.10 4.50 7.80 ★★★★

INF209K01462 Aditya Birla SL Focused Equity Fund(G) 24-Oct-05 1000 57.46 -1.98 6.50 7.86 ★★★★ Infrastructure Funds

A minimum of 80 % of the total assets is invested in companies closely associated with the infrastructure theme. The risk associated with this is high but lower compared to sectoral funds. Suitable for those having long term investment horizon and this category is best suited for SIP

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating INF090I01AE7 Franklin Build India Fund(G) 4-Sep-09 5000 39.35 -2.22 6.68 10.13 ★★★★★

INF917K01536 L&T Infrastructure Fund-Reg(G) 27-Sep-07 5000 14.60 -13.27 6.69 8.01 ★★★★★

INF178L01095 Kotak Infra & Eco Reform Fund(G) 25-Feb-08 5000 19.00 -3.86 3.47 6.28 ★★★★

INF277K01782 Tata Infrastructure Fund-Reg(G) 31-Dec-04 5000 52.48 -2.80 3.41 6.42 ★★★★

INF903J01F68 Sundaram Infra Advantage Fund(G) 29-Sep-05 100 29.94 -6.73 3.76 5.50 ★★★ Aggressive Hybrid Funds

Aggressive hybrid scheme will invest 65-80% of its assets in equity and equity related instruments and 20-35% of the assets in debt instruments.This category is an evergreen choice of investors seeking debt cushion in equity investments. This category is a great choice for long-term investment.

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF200K01107 SBI Equity Hybrid Fund-Reg(G) 6-Jan-96 1000 135.01 4.93 8.83 9.72 ★★★★★

INF109K01480 ICICI Pru Equity & Debt Fund(G) 3-Nov-99 5000 130.18 -0.51 7.60 9.04 ★★★★★

INF173K01CL8 Principal Hybrid Equity Fund(G) 14-Jan-00 5000 72.84 -5.98 8.06 8.75 ★★★★★

INF760K01050 Canara Rob Equity Hybrid Fund-Reg(G) 1-Feb-93 5000 155.00 1.50 7.76 8.94 ★★★★

INF769K01DE6 Mirae Asset Hybrid - Equity Fund-Reg(G) 29-Jul-15 5000 14.55 2.80 9.45 0.00 ★★★★

INF903J01744 Sundaram Equity Hybrid Fund(G) 15-Jun-00 100 88.92 -0.67 7.67 7.50 ★★★★

INF740K01318 DSP Equity & Bond Fund-Reg(G) 27-May-99 500 151.20 2.60 6.86 9.49 ★★★★

INF917K01LB0 L&T Hybrid Equity Fund-Reg(G) 7-Feb-11 5000 25.36 -4.24 5.80 8.37 ★★★★

INF209K01BT5 Aditya Birla SL Equity Hybrid '95 Fund(G) # 10-Feb-95 100 727.02 -4.16 4.48 7.84 ★★★ Balanced Advantage Funds

A Hybrid category fund which invests in equity and debt that is managed dynamically.This type of schemes take investment decisions based on algorithms. Buy and sell decisions as well as portfolio constitution decisions happen according to pre-set models. Hence even though not high return yielding, the scheme tries to manage volatility effectively.

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF109K01BH2 ICICI Pru Balanced Advantage Fund(G) 30-Dec-06 500 35.50 4.40 7.23 8.39 ★★★★★

INF179K01830 HDFC Balanced Advantage Fund(G) 1-Feb-94 5000 192.25 0.98 7.71 7.32 ★★★★

INF084M01AB8 Aditya Birla SL Balanced Advantage Fund(G) 25-Apr-00 100 52.67 2.96 6.33 8.03 ★★★★

# Under Review

38 I Geojit Insights I October 5, 2019 DEBT FUND RECOMMENDATIONS : OCTOBER 2019 Data as on 13.09.2019

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating LIQUID FUNDS: Investment in debt and money market securities with maturity of up to 91 days only. Liquid funds cannot be viewed as investment but one way of parking funds with least risk. Generally used by STP investors for staggered equity investment.

INF277K01YD8 Tata Liquid Fund-Reg(G) 5,000 5.62 0.11 0.46 3.43 7.26 ★★★★★

INF846K01412 Axis Liquid Fund(G) 500 5.59 0.10 0.46 3.46 7.30 ★★★★★

INF903J01GU2 Sundaram Money Fund-Reg(G) 1,000 5.70 0.08 0.45 3.44 7.30 ★★★★

ULTRA SHORT DURATION FUNDS: Investment in debt and money market instruments such that the Macaulay duration of the portfolio is between 3 to 6 months. Ideal for short term investment matching the duration of the portfolio.

INF090I01CN4 Franklin India Ultra Short Bond Fund-Super Inst(G) 10,000 9.71 0.61 0.70 4.58 10.03 ★★★★

INF200K01LJ4 SBI Magnum Ultra Short Duration Fund-Reg(G) 5,000 6.45 0.47 0.66 4.12 8.63 ★★★★

LOW DURATION FUNDS: Investment in debt and money market instruments such that the Macaulay duration of the portfolio is between 6 to 12 months. Ideal for short term investment matching the duration of the portfolio.

INF200K01MO2 SBI Magnum Low Duration Fund(G) 5,000 6.69 0.94 0.74 4.36 8.88 ★★★★★

MONEY MARKET FUNDS: Investment in money market instruments having maturity up to 1 year. Ideal for short term investment matching the duration of the portfolio.

INF174K01NA6 Kotak Money Market Scheme(G) 5,000 6.24 0.47 0.63 4.19 8.69 ★★★★★

SHORT DURATION FUNDS: Investment in debt and money market instruments such that the Macaulay duration of the portfolio is between 1 to 3 years. Conservative investors who look for alternatives for bank FDs generally invest in Short Duration Fund. This helps in minimizing tax using the 3 year investment horizon coupled with indexation benefit (according to existing tax rules) and least NAV volatility.

INF179K01CU6 HDFC Short Term Debt Fund(G) 5,000 7.45 2.66 0.99 5.12 10.15 ★★★★★

MEDIUM DURATION FUNDS: Investment in debt and money Market instruments such that the Macaulay duration of the portfolio is between 3 to 4 years. Ideal for investments if the duration matches your investment horizon. Risk and return increases as duration increases.

INF090I01445 Franklin India Income Opportunities Fund(G) 5,000 11.69 4.48 0.56 2.54 7.86 ★★★★★

MEDIUM TO LONG DURATION FUNDS: Investment in debt and money Market instruments such that the Macaulay duration of the portfolio is between 4 to 7 years. Ideal for investments if the duration matches your investment horizon. Risk and Return increases as duration increases.

INF109K01BO8 ICICI Pru Bond Fund(G) 5,000 7.40 4.07 1.07 6.21 11.83 ★★★★★

DYNAMIC BOND FUNDS: Investment across duration. This can be viewed as the ‘multi cap’ fund of debt category. In this scheme, the fund manager can choose to invest in any paper irrespective of their risk and maturity. It’s a fund manager’s fund and one of the most risky among debt fund schemes.

INF090I01BP1 Franklin India Dynamic Accrual Fund(G) 10,000 11.95 2.85 0.63 3.04 9.09 ★★★★★

INF174K01FA2 Kotak Dynamic Bond Fund-Reg(G) 5,000 7.68 5.16 0.93 6.43 13.51 ★★★★

CORPORATE BOND FUNDS: Minimum investment in corporate bonds – 80% of total assets (only in AA+ and above rated corporate bonds.).Corporate bonds are mainly short to medium-term papers. There are less long-term bonds in corporate category. Both in terms of maturity and credit rating, corporate bonds fall in a moderate risk category. Those who can afford risk for higher short term returns can opt for this fund.

INF178L01BO1 Kotak Corporate Bond Fund(G) 5,000 7.20 1.59 0.93 5.13 10.21 ★★★★★

BANKING AND PSU DEBT FUNDS: Minimum investment in debt instruments of banks,Public Sector Undertakings, Public Financial Institutions and Municipal Bonds – 80% of total assets. They mainly host AAA rated public entity bonds with credibility better than that of corporate papers. Ideal for investors who cannot lock their funds in government bonds (due to their high volatile nature and low returns), but at the same time want better returns with less risk.

INF200K01U41 SBI Banking and PSU Fund-Reg(G) 5,000 7.11 4.00 1.02 5.68 10.50 ★★★★

GILT FUNDS: Minimum investment in GSecs- 80% of total assets (across maturity).Most credible in terms of principal safety but most volatile in terms of duration risk. Hence one can invest in long bond funds and Gilts only if they are so sure that they are near the peak of an interest rate cycle and can possibly make money during the future fall in rates.

INF200K01AN9 SBI Magnum Constant Maturity Fund(G) 5,000 6.56 9.56 0.93 9.69 18.48 ★★★★★

CONSERVATIVE HYBRID FUNDS: Investment in equity and equity related instruments- between 10% and 25% of total assets; Investment in Debt instruments- between 75% and 90% of total assets. It is a hybrid category fund. A very conservative investor who wishes to taste the benefit of equity investment and beat fixed income returns can opt for this category.

INF109K01902 ICICI Pru Regular Savings Fund(G) 5,000 8.89 2.36 0.88 2.66 7.43 ★★★★★

October 5, 2019 I Geojit Insights I 39 MODEL PORTFOLIO FOR DIFFERENT CLASS OF INVESTORS

Investors are classified in to 4 groups based on their risk tolerance level, age, objective of investment, time horizon for which they ready to park funds etc. Schemes could be chosen from our recommended list with respect to Its category. In case the investor finds that a fund is removed from the recommended list due to under performance, he/she may replace that fund with another one in the same category. Aggressive Portfolio Recommended Asset Class Category Suitability Allocation

Large & Midcap Funds 20% This portfolio is ideal for investors with high risk tolerance and those who wish to generate wealth over Equity Multicap Funds 40% longer time horizon. Minimum investment horizon Small Cap Funds 20% recommended is 10 years.

Dynamic Funds 10% Debt Corporate Bond Funds 10%

Moderately Aggressive Portfolio

Recommended Asset Class Category Suitability Allocation

Large & Midcap Funds 30% This portfolio has potential for higher long term risk adjusted return with downside protection aided by debt Equity Multicap Funds 20% portfolio. Suited for investors with longer investment Small Cap Funds 10% horizon of 7 years + or those who can shoulder higher volatility in returns Dynamic Funds 10%

Medium to Long Duration Funds 10% Debt

Short Duration Funds 20%

Moderate Portfolio

Recommended Asset Class Category Suitability Allocation

Largecap Funds 20% This portfolio is ideal for investors who are new to equity investments and those who want higher tax Equity Multicap Funds 10% adjusted returns compared to fixed return in- Small Cap Funds 10% vestments. Ideal Investment horizon is 5 years+

Medium to Long Duration Funds 10%

Short Duration Funds 30% Debt Medium Duration Funds 10%

Conservative Hybrid Funds 10%

Conservative Portfolio

Recommended Asset Class Category Suitability Allocation

Equity Largecap Funds 10% For investors who cannot afford high volatility in their portfolio and at the same time wish to earn returns Short Duration Funds 40% better than Fixed deposits. Ideal Investment horizon is 3 years+ Debt Medium Duration Funds 10%

Conservative Hybrid Funds 40%

40 I Geojit Insights I October 5, 2019 SIP PERFORMANCE OF RECOMMENDED FUNDS Data as on 13.09.2019

3 Year @ Rs.5000 each 5 Year @ Rs.5000 each 10 Year @ Rs.5000 each Inv. Amount :180000/- Inv. Amount :300000/- Inv. Amount :600000/- Present Value (Rs) Return % Present Value (Rs) Return % Present Value (Rs) Return % Large Cap Fund

Axis Bluechip Fund(G) 214434 12.24 398114 11.57 - -

Reliance Large Cap Fund(G) 189072 3.81 356074 7.14 1096123 11.75

Mirae Asset Large Cap Fund-Reg(G) 199184 7.12 385672 10.24 1268331 14.44

ICICI Pru Bluechip Fund(G) 192376 4.95 362423 7.84 1089748 11.64

Edelweiss Large Cap Fund(G) 195977 6.08 362129 7.75 1061300 11.12

Canara Rob Bluechip Equity Fund-Reg(G) 198568 6.95 368353 8.42 - -

HDFC Top 100 Fund(G) 193288 5.39 363371 8.02 1039064 10.78

Aditya Birla SL Frontline Equity Fund(G) 185948 2.67 347041 6.09 1057308 11.06

SBI BlueChip Fund-Reg(G) 189831 4.09 354594 6.99 1108762 11.97

Invesco India Largecap Fund(G) 190714 4.20 352441 6.62 1015953 10.27

Kotak Bluechip Fund(G) 191035 4.56 351907 6.71 1005693 10.15

UTI Mastershare-Reg(G) 192039 4.70 352566 6.67 1003359 10.05

Large & Mid Cap

Mirae Asset Emerging Bluechip-Reg(G) 200042 7.31 410500 12.69 - -

Sundaram Large and Mid Cap Fund(G) 192398 4.98 369529 8.63 1079024 11.46

Canara Rob Emerg Equities Fund-Reg(G) 182953 1.64 362910 7.90 1483371 17.40

Invesco India Growth Opp Fund(G) 196474 6.21 372392 8.84 1137623 12.41

Principal Emerging Bluechip Fund(G) 177852 -0.25 352732 6.73 1309067 15.06

Kotak Equity Opp Fund(G) 188638 3.66 360213 7.60 1100439 11.83

DSP Equity Opportunities Fund-Reg(G) 186824 3.07 361926 7.82 1115051 12.09

SBI Large & Midcap Fund-Reg(G) 187306 3.09 352692 6.70 1114948 12.05

Multi Cap Fund

Kotak Standard Multicap Fund(G) 194978 5.89 376529 9.40 1226446 13.87

Aditya Birla SL Equity Fund(G) 184930 2.21 359748 7.47 1155086 12.70

SBI Magnum Multicap Fund-Reg(G) 194237 5.50 373249 8.96 1182688 13.15

Motilal Oswal Multicap 35 Fund-Reg(G) 185424 2.36 367043 8.26 - -

ICICI Pru Multicap Fund(G) 187401 3.28 354830 7.04 1094563 11.74

Principal Multi Cap Growth Fund(G) 179290 0.17 348206 6.15 1095157 11.69

HDFC Equity Fund(G) 191382 4.72 359780 7.62 1062814 11.21

UTI Equity Fund-Reg(G) 193803 5.40 357361 7.26 1079904 11.46

Invesco India Multicap Fund(G) 177186 -0.66 333143 4.36 1228807 13.83

October 5, 2019 I Geojit Insights I 41 3 Year @ Rs.5000 each 5 Year @ Rs.5000 each 10 Year @ Rs.5000 each Inv. Amount :180000/- Inv. Amount :300000/- Inv. Amount :600000/- Present Value (Rs) Return % Present Value (Rs) Return % Present Value (Rs) Return % Mid Cap Fund

Kotak Emerging Equity Scheme(G) 180531 0.75 353276 6.82 1286212 14.74

L&T Midcap Fund-Reg(G) 171543 -2.72 343061 5.54 1266524 14.40

Axis Midcap Fund(G) 202145 7.92 375612 9.06 - -

DSP Midcap Fund-Reg(G) 181228 0.79 355582 6.94 1246907 14.10

Invesco India Midcap Fund(G) 183104 1.47 346988 5.97 1261045 14.31

Franklin India Prima Fund(G) 178938 0.12 344272 5.75 1280592 14.64

HDFC Mid-Cap Opportunities Fund(G) 172373 -2.58 336213 4.63 1266268 14.35

ICICI Pru Midcap Fund(G) 174962 -1.47 331520 4.17 1156878 12.70

Edelweiss Mid Cap Fund-Reg(G) 175928 -1.09 336735 4.80 1269332 14.45 Small cap Fund

SBI Small Cap Fund-Reg(G) 188160 2.84 386731 10.05 1653222 19.22

Reliance Small Cap Fund(G) 170979 -2.87 346864 6.01 - -

HDFC Small Cap Fund-Reg(G) 176752 -0.94 355029 6.81 1136330 12.33

L&T Emerging Businesses Fund-Reg(G) 168081 -4.14 350220 6.28 - -

Franklin India Smaller Cos Fund(G) 161431 -6.50 312347 1.86 1270194 14.47

Kotak Small Cap Fund(G) 169821 -3.24 325729 3.56 1114022 12.04

Equity Linked Savings Scheme

Mirae Asset Tax Saver Fund-Reg(G) 202802 8.26 - - - -

Axis Long Term Equity Fund(G) 202897 8.27 380943 9.69 - -

Aditya Birla SL Tax Relief '96(G) 185183 2.25 354135 6.81 1142343 12.48

Kotak Tax Saver Scheme(G) 189964 4.12 359081 7.48 1057842 11.09

DSP Tax Saver Fund-Reg(G) 192560 5.05 370730 8.77 1190412 13.31

Invesco India Tax Plan(G) 190082 3.98 358635 7.32 1165380 12.85

IDFC Tax Advt(ELSS) Fund-Reg(G) 180859 0.90 345535 5.95 1112807 12.04

Motilal Oswal Long Term Equity Fund-Reg(G) 185387 2.43 - - - -

ICICI Pru LT Equity Fund (Tax Saving)(G) 188668 3.58 349450 6.34 1099459 11.79

Principal Tax Savings Fund 179265 0.20 347516 6.10 1098093 11.75

L&T Tax Advt Fund-Reg(G) 178260 -0.18 342485 5.51 1037840 10.69 Value Fund

Tata Equity P/E Fund(G) 181735 1.00 360640 7.53 1176845 13.03

HDFC Capital Builder Value Fund(G) 179824 0.47 343569 5.69 1077992 11.43

L&T India Value Fund-Reg(G) 176045 -0.90 344359 5.78 - -

IDFC Sterling Value Fund-Reg(G) 167386 -4.32 323379 3.17 1045081 10.79

ICICI Pru Value Discovery Fund(G) 179928 0.41 328515 3.85 1152433 12.65

42 I Geojit Insights I October 5, 2019 3 Year @ Rs.5000 each 5 Year @ Rs.5000 each 10 Year @ Rs.5000 each Inv. Amount :180000/- Inv. Amount :300000/- Inv. Amount :600000/- Present Value (Rs) Return % Present Value (Rs) Return % Present Value (Rs) Return % Focused Fund

Axis Focused 25 Fund(G) 202191 8.04 392616 10.90 - -

SBI Focused Equity Fund-Reg(G) 200706 7.46 382670 9.83 1297461 14.82

Franklin India Focused Equity Fund(G) 188185 3.57 352063 6.73 1236839 14.04

Sundaram Select Focus(G) 200785 7.79 371688 8.84 977110 9.58

Reliance Focused Equity Fund(G) 174084 -1.27 331388 4.48 1159199 12.89

Aditya Birla SL Focused Equity Fund(G) 188340 3.56 350872 6.56 1082282 11.52

Infrastructure Fund

Franklin Build India Fund(G) 183181 1.92 350307 6.61 1297243 14.96

L&T Infrastructure Fund-Reg(G) 169411 -3.24 335330 4.81 994966 9.96

Kotak Infra & Eco Reform Fund(G) 171907 -2.28 322247 3.24 968528 9.46

Tata Infrastructure Fund-Reg(G) 175801 -0.96 326106 3.64 858957 7.14

Sundaram Infra Advantage Fund(G) 170448 -3.07 316912 2.43 791400 5.53

Aggressive Hybrid Fund

SBI Equity Hybrid Fund-Reg(G) 200984 7.61 373058 8.84 1146629 12.52

ICICI Pru Equity & Debt Fund(G) 190352 4.25 361068 7.69 1147398 12.61

Principal Hybrid Equity Fund(G) 186464 2.63 360634 7.49 1049024 10.85

Canara Rob Equity Hybrid Fund-Reg(G) 194909 5.59 363108 7.78 1090926 11.60

Mirae Asset Hybrid - Equity Fund-Reg(G) 198901 7.04 - - - -

Sundaram Equity Hybrid Fund(G) 194963 5.72 361784 7.70 918480 8.38

DSP Equity & Bond Fund-Reg(G) 193069 5.03 362294 7.74 1045714 10.82

L&T Hybrid Equity Fund-Reg(G) 183745 1.70 342851 5.50 - -

Aditya Birla SL Equity Hybrid '95 Fund(G) 182143 1.05 339257 5.03 1024442 10.39

Balanced Advantage Fund

ICICI Pru Balanced Advantage Fund(G) 196326 6.05 362546 7.71 1070548 11.24

HDFC Balanced Advantage Fund(G) 195817 6.24 371250 8.87 1041004 10.81

Aditya Birla SL Balanced Advantage Fund(G) 190662 4.11 358835 7.30 967323 9.33

October 5, 2019 I Geojit Insights I 43 GEOJIT FUND RATING Data as on 13.09.2019

The ratings given here are a result of the quantitative analysis of Mutual fund schemes done by Geojit Research team. This does not indicate a BUY or SELL of any scheme. For recommendation refer the page EQUITY AND DEBT FUND RECOMMENDATIONS

Equity - Large Cap Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF666M01162 Indiabulls Blue Chip Fund(G) 10-Feb-12 500 20.30 -2.21 7.58 8.05 ★★★★

INF251K01894 BNP Paribas Large Cap Fund(G) 23-Sep-04 5000 88.91 4.32 7.75 8.06 ★★★

INF677K01155 L&T India Large Cap Fund-Reg(G) 23-Oct-07 5000 26.47 -0.35 6.56 6.93 ★★★

INF767K01105 LIC MF Large Cap Fund(G) 31-Mar-98 5000 26.21 1.72 6.52 6.83 ★★★ Equity - Large & Mid Cap Funds Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF767K01NB5 LIC MF Large & Midcap Fund-Reg(G) 25-Feb-15 5000 14.57 -2.46 9.40 0.00 ★★★

INF194K01524 IDFC Core Equity Fund-Reg(G) 9-Aug-05 5000 42.18 -8.10 5.84 7.87 ★★★

INF843K01047 Edelweiss Large & Mid Cap Fund-Reg(G) 14-Jun-07 5000 30.00 -3.76 7.12 7.97 ★★★

INF209K01165 Aditya Birla SL Equity Advantage Fund(G) 24-Feb-95 1000 377.38 -10.38 2.72 8.40 ★★★ Equity - Multi Cap Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF740K01037 DSP Equity Fund-Reg(G) 7-Jun-07 500 38.69 1.77 8.27 8.31 ★★★★

INF843K01KN5 Edelweiss Multi-Cap Fund-Reg(G) 3-Feb-15 5000 13.87 -4.24 9.17 0.00 ★★★

INF760K01019 Canara Rob Equity Diver Fund-Reg(G) 16-Sep-03 5000 128.00 -1.52 9.15 7.43 ★★★

INF204K01489 Reliance Multi Cap Fund(G) 28-Mar-05 100 89.68 -5.63 5.76 5.79 ★★★

INF205K01DN2 Invesco India Multicap Fund(G) 17-Mar-08 1000 44.76 -9.73 5.30 7.79 ★★★

INF846K01B51 Axis Multicap Fund-Reg(G) 17-Nov-17 5000 11.61 4.58 0.00 0.00 ★★★

INF090I01239 Franklin India Equity Fund(G) 29-Sep-94 5000 550.86 -9.06 4.16 7.62 ★★★ Equity - Mid Cap Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF277K01626 Tata Mid Cap Growth Fund(G) 1-Jul-94 5000 131.26 -2.17 6.45 8.86 ★★★

INF843K01013 Edelweiss Mid Cap Fund-Reg(G) 26-Dec-07 5000 24.89 -9.38 5.39 9.49 ★★★

INF204K01323 Reliance Growth Fund(G) 8-Oct-95 100 1,049.52 -5.33 5.76 7.92 ★★★

INF903J01173 Sundaram Mid Cap Fund(G) 19-Jul-02 100 426.56 -12.53 2.05 8.06 ★★★ Equity - Small cap Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF846K01K01 Axis Small Cap Fund-Reg(G) 29-Nov-13 5000 29.20 6.09 10.02 11.06 ★★★★

INF740K01797 DSP Small Cap Fund-Reg(G) 14-Jun-07 500 50.00 -13.97 -0.15 9.11 ★★★

INF209K01EN2 Aditya Birla SL Small Cap Fund(G) 31-May-07 1000 29.91 -20.14 -0.39 7.28 ★★★

Equity - Value Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF204K01GB3 Reliance Value Fund(G) 8-Jun-05 500 69.69 -4.92 6.21 8.07 ★★★

44 I Geojit Insights I October 5, 2019 Equity - Focused Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating INF247L01155 Motilal Oswal Focused 25 Fund-Reg(G) 13-May-13 500 21.39 -2.18 7.24 9.02 ★★★ INF173K01189 Principal Focused Multicap Fund(G) 11-Nov-05 5000 61.60 -2.59 6.41 6.81 ★★★ Infrastructure Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF740K01151 DSP India T.I.G.E.R Fund-Reg(G) 11-Jun-04 500 86.87 -0.81 4.98 6.72 ★★★★ INF200K01CT2 SBI Infrastructure Fund-Reg(G) 6-Jul-07 5000 14.68 -0.78 4.88 6.54 ★★★ INF109K01AV5 ICICI Pru Infrastructure Fund(G) 31-Aug-05 5000 48.52 -2.39 5.15 4.06 ★★★ Equity Linked Savings Schemes (ELSS)

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating INF277K01I52 Tata India Tax Savings Fund-Reg(G) 13-Oct-14 500 17.59 0.83 8.55 0.00 ★★★★ INF760K01100 Canara Rob Equity Tax Saver Fund-Reg(G) 2-Feb-09 500 61.87 -3.15 8.48 7.38 ★★★★ INF767K01956 LIC MF Tax Plan(G) 31-Mar-98 500 65.82 -0.01 8.19 8.04 ★★★ INF090I01775 Franklin India Taxshield(G) 10-Apr-99 500 541.46 -4.90 5.04 7.98 ★★★ INF754K01517 Edelweiss Long Term Equity Fund (Tax Savings)-Reg(G) 30-Dec-08 500 44.48 -3.71 5.49 7.08 ★★★ Aggressive Hybrid Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating INF090I01817 Franklin India Equity Hybrid Fund(G) 10-Dec-99 5000 117.62 -0.23 5.11 8.33 ★★★ INF789F01323 UTI Hybrid Equity Fund-Reg(G) 2-Jan-95 1000 161.50 -5.74 4.55 6.08 ★★★ INF277K01303 Tata Hybrid Equity Fund(G) 8-Oct-95 5000 207.10 -0.38 3.85 7.12 ★★★ INF174K01E92 Kotak Equity Hybrid Fund(G) 3-Nov-14 5000 24.47 1.02 5.61 0.00 ★★★ Balanced Advantage Funds

Inception Minimum CAGR % Geojit ISIN Code Scheme Name NAV Date Investment 1 year 3 years 5 years Rating

INF204K01604 Reliance Balanced Advantage Fund(G) 15-Nov-04 100 89.65 2.33 8.33 7.54 ★★★

DEBT FUNDS Liquid Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating INF666M01014 Indiabulls Liquid Fund(G) 500 5.62 0.06 0.47 3.40 7.13 ★★★★ INF223J01BP6 PGIM India Insta Cash Fund(G) 100 5.58 0.09 0.46 3.48 7.38 ★★★★ INF204K01UN9 Reliance Liquid Fund(G) 100 5.88 0.09 0.46 3.51 7.38 ★★★★ INF209K01RU9 Aditya Birla SL Liquid Fund(G) 1,000 5.93 0.10 0.47 3.52 7.36 ★★★★ INF205K01HM5 Invesco India Liquid Fund(G) 1,000 5.53 0.08 0.44 3.33 7.18 ★★★ INF090I01BG0 Franklin India Liquid Fund-Super Inst(G) 10,000 6.04 0.06 0.48 3.53 7.48 ★★★ INF760K01CW9 Canara Rob Liquid Fund-Reg(G) 5,000 5.48 0.06 0.45 3.29 7.03 ★★★ INF740K01FK9 DSP Liquidity Fund-Reg(G) 500 5.59 0.11 0.45 3.38 7.21 ★★★ INF109K01VQ1 ICICI Pru Liquid Fund(G) 100 5.74 0.13 0.46 3.44 7.25 ★★★ INF200K01MA1 SBI Liquid Fund(G) 5,000 5.64 0.10 0.45 3.37 7.14 ★★★ INF767K01IS9 LIC MF Liquid(G) 5,000 5.80 0.11 0.47 3.37 7.12 ★★★ INF789F01PH1 UTI Liquid Cash Plan-Reg(G) 500 5.64 0.09 0.47 3.47 7.30 ★★★ INF336L01BN7 HSBC Cash Fund(G) 5,000 5.83 0.09 0.47 3.47 7.31 ★★★ INF917K01JH1 L&T Liquid Fund(G) 10,000 5.53 0.07 0.44 3.37 7.18 ★★★ INF194K01VX9 IDFC Cash Fund-Reg(G) 100 5.44 0.07 0.44 3.31 7.02 ★★★

October 5, 2019 I Geojit Insights I 45 Ultra Short Duration Funds Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF194KA10Q8 IDFC Ultra Short Term Fund-Reg(G) 100 6.15 0.45 0.63 4.22 8.73 ★★★★★

INF174K01FD6 Kotak Savings Fund(G) 5,000 6.64 0.45 0.61 4.03 8.47 ★★★

INF917K01AS7 L&T Ultra Short Term Fund(G) 10,000 6.02 0.43 0.58 4.02 8.38 ★★★

INF209K01LZ1 Aditya Birla SL Savings Fund(G) 1,000 6.71 0.49 0.72 4.48 9.15 ★★★

INF109K01TP7 ICICI Pru Ultra Short Term Fund Fund(G) 5,000 7.58 0.40 0.63 4.22 8.68 ★★★

INF205K01TM0 Invesco India Ultra Short Term Fund(G) 1,000 6.85 0.47 0.62 4.03 8.31 ★★★ Money Market Funds Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF109K01TX1 ICICI Pru Money Market Fund(G) 500 6.14 0.45 0.64 4.18 8.53 ★★★★

INF205K01SD1 Invesco India Money Market Fund(G) 1,000 5.85 0.28 0.52 3.51 7.56 ★★★★

INF209K01RV7 Aditya Birla SL Money Manager Fund(G) 1,000 6.04 0.45 0.63 4.32 8.82 ★★★★

INF204K01VA4 Reliance Money Market Fund(G) 500 6.11 0.38 0.61 4.25 8.80 ★★★

INF789F01PX8 UTI Money Market Fund-Reg(G) 10,000 6.16 0.49 0.61 4.26 8.69 ★★★

INF090I01CA1 Franklin India Savings Fund(G) 10,000 6.40 0.62 0.69 4.52 9.11 ★★★

INF179KB1HR5 HDFC Money Market Fund(G) 5,000 6.29 0.48 0.63 4.33 8.67 ★★★

INF200K01636 SBI Savings Fund-Reg(G) 500 6.42 0.51 0.62 4.11 8.26 ★★★ Low Duration Funds Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF760K01795 Canara Rob Savings Fund-Reg(G) 5,000 6.33 0.79 0.65 4.26 8.65 ★★★★★

INF846K01537 Axis Treasury Advantage Fund(G) 5,000 6.67 0.83 0.79 4.68 9.30 ★★★★

INF194K01FU8 IDFC Low Duration Fund-Reg(G) 100 6.35 0.81 0.73 4.40 8.99 ★★★★

INF109K01746 ICICI Pru Savings Fund(G) 100 6.94 1.22 0.81 4.60 9.05 ★★★★

INF205K01HY0 Invesco India Treasury Advantage Fund(G) 1,000 6.54 0.89 0.80 4.70 9.38 ★★★★

INF209K01LQ0 Aditya Birla SL Low Duration Fund(G) 100 7.03 0.95 0.76 4.27 8.80 ★★★

INF090I01BU1 Franklin India Low Duration Fund(G) 10,000 11.16 1.15 0.79 3.58 8.87 ★★★

INF178L01202 Kotak Low Duration Fund(G) 5,000 8.76 1.09 0.90 4.00 8.47 ★★★

INF179K01442 HDFC Low Duration Fund(G) 5,000 6.81 0.99 0.71 4.24 8.47 ★★★

INF204K01EV6 Reliance Low Duration Fund(G) 500 8.17 0.84 0.91 2.65 7.30 ★★★

INF677K01452 L&T Low Duration Fund-Reg(G) 10,000 8.13 1.02 0.57 1.63 5.88 ★★★

INF740K018P2 DSP Low Duration Fund-Reg(G) 500 6.75 0.82 1.94 4.66 9.33 ★★★

46 I Geojit Insights I October 5, 2019 Short Duration Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF917K01CL8 L&T Short Term Bond Fund-Reg(G) 10,000 6.95 1.99 0.87 4.91 10.15 ★★★★

INF194K01HF5 IDFC Bond Fund - Short Term Plan-Reg(G) 5,000 6.96 2.12 0.97 5.03 10.88 ★★★★

INF174K01ES7 Kotak Bond-STP(G) 5,000 7.51 2.60 0.93 5.16 10.41 ★★★★

INF200K01HZ8 SBI Short Term Debt Fund-Reg(G) 5,000 7.34 3.09 1.01 5.19 10.18 ★★★★

INF090I01304 Franklin India ST Income Plan(G) 5,000 12.11 2.91 0.47 2.45 8.43 ★★★

INF109K01654 ICICI Pru Short Term Fund(G) 5,000 7.73 2.52 0.97 5.19 9.98 ★★★

INF760K01BM2 Canara Rob Short Duration Fund-Reg(G) 5,000 6.84 2.35 0.77 4.62 9.30 ★★★

INF740K01656 DSP Short Term Fund-Reg(G) 500 6.95 2.39 0.89 4.98 9.91 ★★★

INF846K01644 Axis Short Term Fund(G) 5,000 7.15 2.50 0.91 5.26 10.33 ★★★

INF204K01FL4 Reliance Short Term Fund(G) 500 7.92 2.61 0.95 5.03 9.90 ★★★

INF209K01942 Aditya Birla SL Short Term Opp Fund(G) 1,000 8.59 3.03 0.78 5.04 10.10 ★★★ Medium Duration Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF194K01JU0 IDFC Bond Fund - Medium Term Plan-Reg(G) 5,000 6.71 3.76 0.86 5.75 11.40 ★★★★

INF109K01AH4 ICICI Pru Medium Term Bond Fund(G) 5,000 9.86 2.58 1.14 4.69 8.17 ★★★★

INF200K01719 SBI Magnum Medium Duration Fund-Reg(G) 5,000 8.68 3.78 1.05 5.98 11.45 ★★★

INF179K01913 HDFC Medium Term Debt Fund(G) 5,000 8.44 4.00 0.90 5.01 9.65 ★★★

INF789FB1JU4 UTI Medium Term Fund-Reg(G) 5,000 9.15 3.74 0.73 3.26 6.98 ★★★

INF846K01BP2 Axis Strategic Bond Fund(G) 5,000 8.49 3.50 0.81 2.72 7.73 ★★★

INF174K01VL6 Kotak Medium Term Fund(G) 5,000 9.50 3.70 1.03 2.56 6.77 ★★★

Medium to Long Duration Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month6 Months 1 Year Rating

INF200K01594 SBI Magnum Income Fund-Reg(G) 5,000 8.05 5.67 1.25 6.47 11.71 ★★★★

INF194K01IL1 IDFC Bond Fund - Income Plan-Reg(G) 5,000 6.81 7.59 1.00 8.07 15.51 ★★★★

INF767K01923 LIC MF Bond Fund(G) 5,000 7.36 6.39 0.88 6.49 12.93 ★★★

INF204K01CL1 Reliance Income Fund(G) 5,000 6.38 7.04 0.75 8.68 15.70 ★★★

INF209K01579 Aditya Birla SL Income Fund(G) 1,000 6.88 8.42 0.79 6.89 13.87 ★★★

INF179K01962 HDFC Income Fund(G) 5,000 7.66 6.27 0.83 5.45 10.58 ★★★ Dynamic Bond Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF109K01GN9 ICICI Pru All Seasons Bond Fund(G) 5,000 8.50 5.07 0.97 6.07 10.54 ★★★★

INF200K01958 SBI Dynamic Bond Fund(G) 5,000 6.38 5.32 1.19 9.16 14.86 ★★★

INF194K01QG4 IDFC Dynamic Bond Fund-Reg(G) 5,000 6.66 7.16 1.11 8.20 15.57 ★★★

INF277K01360 Tata Dynamic Bond Fund-Reg(G) 5,000 6.90 6.53 0.42 4.35 8.79 ★★★

INF204K01FI0 Reliance Dynamic Bond(G) 5,000 6.25 5.23 0.53 6.82 12.13 ★★★

October 5, 2019 I Geojit Insights I 47 Corporate Bond Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF209K01785 Aditya Birla SL Corp Bond Fund(G) 100 7.22 2.84 0.85 5.36 10.91 ★★★★

INF109K01CQ1 ICICI Pru Corp Bond Fund(G) 5,000 7.22 2.28 0.96 5.33 10.19 ★★★★

INF204K01EF9 Reliance Prime Debt Fund(G) 1,000 9.02 1.71 0.95 4.00 8.65 ★★★

INF789F1A447 UTI Corporate Bond Fund-Reg(G) 5,000 7.12 4.64 0.79 5.97 11.14 ★★★

INF179K01DC2 HDFC Corp Bond Fund(G) 5,000 7.26 4.08 0.97 5.94 11.75 ★★★

INF194KA1L81 IDFC Corp Bond Fund-Reg(G) 5,000 6.51 0.62 0.70 4.35 9.53 ★★★

INF090I01DG6 Franklin India Corp Debt Fund-A(G) 10,000 9.12 3.94 0.79 4.93 11.02 ★★★

Banking and PSU Debt Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF767K01535 LIC MF Banking & PSU Debt Fund(G) 5,000 6.77 3.22 0.83 5.64 11.43 ★★★★★

INF846K01CB0 Axis Banking & PSU Debt Fund(G) 5,000 7.03 2.60 1.10 5.37 12.44 ★★★★

INF903J01IN3 Sundaram Banking & PSU Debt Fund(G) 100,000 6.87 1.79 1.01 5.07 11.30 ★★★★

INF174K01FO3 Kotak Banking and PSU Debt Fund(G) 5,000 7.47 3.61 1.00 6.00 11.74 ★★★

INF194K01SN6 IDFC Banking & PSU Debt Fund-Reg(G) 5,000 7.16 3.39 1.20 5.84 13.43 ★★★

INF740K01ZP6 DSP Banking & PSU Debt Fund-Reg(G) 500 6.76 3.28 0.99 5.34 10.93 ★★★

INF090I01KO5 Franklin India Banking & PSU Debt Fund(G) 5,000 7.55 3.83 1.16 5.84 12.66 ★★★

INF204KA1T56 Reliance Banking & PSU Debt Fund(G) 5,000 6.98 2.94 1.14 6.25 11.84 ★★★ Gilt Funds

Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF200K01982 SBI Magnum Gilt Fund-Reg(G) 5,000 6.40 7.18 1.08 10.24 16.58 ★★★★

INF789F01661 UTI Gilt Fund-Reg(G) 5,000 6.45 8.97 0.38 9.82 15.16 ★★★★

INF204K01BU4 Reliance Gilt Securities Fund(G) 5,000 6.54 8.11 0.92 9.51 17.40 ★★★

INF194K01DZ2 IDFC G-Sec-Invest-Reg(G) 5,000 6.79 8.58 1.17 9.77 18.50 ★★★

INF179K01756 HDFC Gilt Fund(G) 5,000 6.39 5.25 0.66 5.56 11.89 ★★★

INF209K01AC3 Aditya Birla SL G-Sec Fund(G) 1,000 6.63 8.19 0.64 8.59 15.98 ★★★

INF740K01615 DSP G-Sec Fund-Reg(G) 500 6.72 11.13 1.11 9.61 16.57 ★★★

Conservative Hybrid Funds Minimum Average Absolute Return % CAGR % Geojit ISIN Code Scheme Name YTM Investment Maturity Years 1 Month 6 Months 1 Year Rating

INF090I01EA7 Franklin India Debt Hybrid Fund(G) 10,000 8.87 3.39 1.42 3.37 5.85 ★★★★

INF251K01845 BNP Paribas Conservative Hybrid Fund-Reg(G) 1,000 6.88 3.58 0.60 3.04 6.13 ★★★★

INF204K01FD1 Reliance Hybrid Bond Fund(G) 5,000 12.90 2.66 0.60 -0.76 3.12 ★★★

INF200K01859 SBI Debt Hybrid Fund-Reg(G) 5,000 NA NA 1.31 1.73 6.30 ★★★

INF174K01393 Kotak Debt Hybrid Fund(G) 5,000 8.16 5.94 1.59 3.84 6.48 ★★★

INF789F01893 UTI Regular Savings Fund-Reg(G) 5,000 9.47 5.49 0.50 -1.65 -0.27 ★★★

For further reference, full list of Geojit star ratings is available on Geojit.net

48 I Geojit Insights I October 5, 2019 PAN - INDIA OFFICE NETWORK

ANDHRA PRADESH-BRANCH: ANANTHAPUR - BRANCH: 08554-274507, 9995808994,8367782845; BHIMAVARAM: 08816-221014,9396221014,8367782852; CHI- RALA: 08594-233627,9995809112,8367782859; CHITTOOR-ANDHRA PRADESH: 08572-233971, 9995808905,8367782853; GAJUWAKA MAIN ROAD:0891- 2549347,9995808943,8367782844; GOVERNORPET:0866-2578084,9995809377,8367782876; GUNTUR:0863-2331063, 9995809388,8367782850; KADAPA:08562- 245773,9995808996,8367782869; KAKINADA: 0884 - 2344491,9995809042,8367782871; KURNOOL BRANCH: 08518-228831, 8008993217,8367782841; NANDYAL:08514- 225987,9995809387,8367782842; NARASARAOPET:08647-223134,9995808908,8367782872; NELLORE:0861-2311697, 9995805026,8367782860; ONGOLE:08592- 222010,09959022564,8367782862; RAJAHMUNDRY:0883-2448635,9995808907,8367782858; STATION ROAD - KAVALI:08626-244104, 9995808986,8367782843; TENALI: 08644 - 220120,,8367782863; TIRUPATI:0877-2220882,8008238872,8367782866; VIJAYANAGARAM: 08922-220163, 9995802062,8367782874; VIJAYAWADA: 0866- 6647995,9995809391,8367782854; VISAKHAPATNAM:0891-2717351,9995809107,8367782870; BIHAR-BRANCH: PATNA BRANCH:0612- 2216842,7091099399,8227098040; CHANDIGARH-BRANCH: CHANDIGARH:0172-5046120,7527053404; GOA-BRANCH:MARGAO:0832- 2712696,9995809603,8669626344; GUJARAT- BRANCH: AHMEDABAD - MOTERA:079- 23298586,9995801194,7096065609; AHMEDABAD - SHAHIBAUG:079- 22862522,9995800482,7096065603; AHMEDABAD -AMBAVADI:079-40024925,9995800553,7096065601; ANAND BRANCH:02692-246931,9995801207,7096065613; BHARUCH:02642-226998,9995801227,7096065602; JAMNAGAR: 0288-2553369,9995801450,7096065607; JUNAGADH: 0285-2620286,9995801416,7096065606; KARELI- BAUG-VADODARA:0265-780541,9995805029,7096065608; NAVSARI:02637-233472,9099053861,7096065612; RAJKOT-MOTI TANKI CHOK: 0281- 2221722,9974766301,7096065604; SURAT-EMPIRE STATE BLDG:0261-2479661,9995801242,7096065610; VADODARA -R CDUTT: 0265-2324586,9099053872,7096065611; VALSAD BRANCH:02632-245901,9995801243,7096065605; GUJARAT-FRANCHISE: MEHSANA:02762-223594,9429359105,7096065614; HARYANA-BRANCH: FARIDABAD:0129-2429380,9995801875,7835002374; GURGAON:0124-4105747,9910025558,7835002371; JAMMU AND KASHMIR-BRANCH: JAMMU:0191- 2474160,9906069423,9055503053; JHARKHAND-BRANCH:DHANBAD:0326-2302405,9304127514,8227098041; JAMSHEDPUR:0657- 2233734,7593891674 ,8227098043; RANCHI: 0651-2331401 ,9234611160,8227098042; KARNATAKA-BRANCH: BAGALKOT:08354-222557,9995801424,9071392615; BANASHANKARI: 080-26690875 ,9591996180,9071392609; BANGALORE: 080-40429999,9995809548,9071392595; BASAVANGUDI:080-26676121,9980114690,9071392629; BELGAUM: 0831-2402128,9995801622 ,9071392606; BELLARY: 08392-255393 ,9995801609,9071392591; BHATKAL: 08385-224062,9741329922,9071392622; BIDAR: 08482 -222652,9995800543,9071392588; BIJAPUR: 08352-242714,9995801489,9071392599; CHICKMAGALUR: 08262-234892,9995809453,9071392601; CHITRADURGA: 08194- 223254,9995801495,9071392600; DAVANGARE: 08192-253671,7338461961,9071392613; DHARWAD: 0836-2790031 ,9995801494,9071392589; FRAZER TOWN: 080- 25564350,9995800730,9071392593; GADAG: 08372-250250,9995801635 ,9071392604; GULBARGA TOWN: 08472-272940,9995809189,9071392632; HAL AIRPORT ROAD: 080-25231243 ,9995809602,9071392587; HASSAN: 08172-233609,7760686146,9071392605; HSR LAYOUT: 080-25723451,9108025990,9071392585; HUBLI: 0836- 2353371,0836-2353373,9071392608; INDIRANAGAR: 080-25252831,9072530278,9071392596; JAYANAGAR: 080-26562600,9995809448,9071392597; KORAMANGALA: 080- 25503462,9995809434,9071392612; MAJESTIC: 080-22340067,9995809596,9071392582; MALLESWARAM: 080-23360980,9995809440,9071392598; MANGALORE: 0824- 2444531,0824-2446024,9071392618; MANGALORE CITY: 0824-2221434,0824-2223881 ,9071392619; MERCARA: 08272-221671,7022255332,9071392620; MYSORE - SAR- ASWATHIPURAM: 0821- 2344819,9995809547,9071392621; MYSORE-V V MOHALLA: 0821-2516519,0821-2519309,9071392627; RAICHUR:08532- 226925,9995809257,9071392623; RAJAJI NAGAR: 080-23109739,9995809558,9071392610; RAJARAJESHWARI NAGAR: 080-28606326,9108028854,9071392611; SHIMOGA: 08182-271905,9995809516,9071392626; TUMKUR:0816-2285651,9995809221,9071392625; UDUPI TOWN:0820 2527689,9072530283,9071392580; WHITEFIELD:0802- 8456665,9663125104,9071392583; KARNATAKA-FRANCHISE: ANKOLA:08388-232353,9071392634; BANASHANKARI BDA COMPLEX:080- 26715410,9379337789,9071392633; BTM LAYOUT , BANGALORE:080-41506462 ,98457 30404,9071392641; CHANNARAYAPATNA: 9242624222,9071392640; GAN- GAVATI:08533-234406,9916136294,9071392643; GULBARGA:08472-324613,9448477078,9071392644; HONAVAR:08387-221804,8904973288,9071392645; JALAHALLI CROSS:080-41228351,9886718394,9071392647; JAYANAGAR 9TH BLOCK:080-41301711,9343509764,9071392646; KAMMANHALLI:080-41330045,9341066950,9071392639; KENGERI SATELLITE TOWN:080-28486202,9449046005,9071392635; KOPPAL:08539-231401,9886716394,9071392648; KOTHANUR-BANGALORE:080- 28465397,8971256119,; KUSHAL NAGAR, MANGLORE: 08276-272756,9448108364,9071392649; MANGALORE TOWN: 0824-2430120,9480401003,9071392660; MARATHA- HALLI: 080-64522596,9341037912,9071392638; NEW BEL ROAD: 080-23519633,9845244208,9071392651; PUTTUR: 08251-231285 ,9449801285,9071392655; R T NAGAR: 080-41532210,9342552943,9071392652; SAHAKARA NAGAR- BANGALORE:080-23620778,8546970778,9071392636; SARJAPUR ROAD:080- 42039972,9886483496,9071392653; SHARADADEVI NAGAR -MYSORE : 0821-4851883,7540006866,9071392637; UDUPI: 0820-4295656,9845314134,9071392654; VIDYARANYAPURA-BANGALORE:080-23646724,9448052835,9071392642; VIJAYANAGAR:080-23204282,8050699480,9071392659; YELAHANKA:080- 28561934,9845904150,9071392661; KERALA-BRANCH: ALAPUZHA:0477-2252605,9995800090,8111990250; ALWAYE: 0484-2630568 ,9995800065,8111990247; ANCHAL:0475-2270175,9995800120,8111990291; ANGAMALY BRANCH:0484-2454791,9995800142,8111990306; ATTINGAL-TRIVANDRUM:0470- 2622120,9995800072,8111990242; CALICUT: 0495-2722387,9995800089,8111990251; CALICUT NADAKKAVU: 0495-2761430,9995800081,8111990296; CHALAKUDY: 0480- 2705048,9995800092,8111990246; CHANGANACHERRY: 0481-2429091,9995800084,8111990243; CHITTUR-PALAKKAD: 0492-3224591,9995806381,8111990265; EDAPAL: 0494-2689402,9995806385,8111990285; EDAPPALLY: 0484-4014281,9995800049,8111990248; ERATTUPETTA: 04822-275993,9995800048,8111990293; GURUVAYOOR: 0487-2551798, 9995800061,8111990259; HEAD OFFICE: 8111990263; INFOPARK-KOCHI: 0484-4061991,9995800051,8111990266; IRINJALAKUDA:0480- 2820111,,8111990252; KADUTHURUTHY:04829-322800,9995800083,8111990298; KALOOR:0484-4046512,9995800069,8111990244; KALOOR MES BUILDING:0484- 2405227,9995800425,8111990238; KANHANGAD BRANCH:0467-2200731,9995800952,8111990240; KANJIRAPALLY:04828-204912,,8111990271; KANNUR:0497- 2712101,9995800086,8111990245; KANNUR-FORTLIGHT: 0497-2761018,8111990276; KASARAGOD:04994-225245,9995800106,8111990269; KATTAPPANA:04868 - 274783,9995808272,8111990270; KOCHI:0484-2355325,,8111990257; KOCHI,MARKET ROAD,(NEAR BANERJI ROAD JN.):0484-2380182,9995800135,8111990262; KO- LENCHERY: 0484-2760090,9995800738,8111990268; KOLLAM: 0474-2745171,,8111990256; KOLLAM 2 - CHINNAKKADA: 0474-2768085,9995800071,8111990310; KOTTAK- KAL:0483-2741501,0483-3203221,9995800078,8111990249; KOTTAYAM-KK ROAD:0481-2567646,,8111990253; KOTTAYAM-NAGAMPADOM:0481- 2561145,9995800075,8111990312; KOTTIYAM:0474-2534093,8111990267; KOZHIKODE:0495-2727944,8111990261; MALA:0480-2897700,9995800077,8111990275; MAL- APPURAM:0483-2735882,9995800156,8111990311; MALLAPPALLY:0469-2681394,9995800121,8111990305; MANJERI:0483-2769011,9995806538,8111990272; MAT- TANCHERRY:0484-2227337,9995800063,8111990277; MOONUPEEDIKA:0480-2836980,9995800076,8111990279; MUVATTUPUZHA-BRANCH:0485- 2835753,9995800136,8111990292; NEYYATTINKARA:0471-2220844,8111990280; NILAMBUR:04931-221171 ,9995800074,8111990278; PALA:0482-2210471,8111990273; PALAKKAD:0491-2544571,9995800054,8111990254; PALAKKAD-STADIUM BYEPASS ROAD:0491-2533312,9995800070,8111990309; PALARIVATTOM:0484- 2334208,9995800066,8111990281; PATHANAMTHITTA: 0468-2326243,,8111990255; PAYYANNUR BRANCH: 04985-201901,9995800147,8111990308; PIRAVOM:0485- 2243388,9995800041,8111990236; PONNANI: 0494-2664919,9995800073,8111990282; SULTHAN BATHERY: 04936-226175,9995800119,8111990284; TALASSERRY: 0490- 2344511, 9995800094,8111990289; TECHNO PARK- TVM: 0471-2527635,9995800068,8111990287;THAMARASSERI:0495-2225425 ,9995800117,8111990241; THIRUVALLA: 0469-2604455,,8111990274; THIRUVANANTHAPURAM: 0471-2467710,,8111990288; THIRUVANANTHAPURAM- VANCHIYOOR:0471-2577247,8590010999,8111990398; THRISSUR- PUNKUNNAM: 0487-2385072 ,9995800099,8111990239; THRISSUR- ROUND NORTH:0487- 2322826,9995800082,8111990290; THRISSUR - ROUND SOUTH: 0487-2427454,8111990258; TRISSUR - KOKKALAI: 0487-2442803,8111990286; TRIVANDRUM KARAMANA: 0471-2348165 ,9995800141,8111990283; TRIVANDRUM, MAIN ROAD, KAVADIAR:0471-2539668,9995800034,8111990264; VADAKENCHERRY: 04922-254249,9995800151,8111990307;VALANCHERY - KOZHIKODE:0494- 2642220,9995802149,8111990295; VARKALA:047-2611706,9995800067,8111990294; VATAKARA BRANCH:0496-2515783,9995800625,8111990237; VYTILLA:0484- 2306036,,8111990297; WADAKANCHERY:04884-232250 ,9746111187,8111990260; KERALA-FRANCHISE: ADOOR:04734-220940,9447560081,8111990337; ALATHUR - PALAKKAD:0492-2225786,9995855786,8111990332; AMBALAPUZHA:0477-2970494,9446611700,8111990335; ANGAMALY-CHURCH JUNCTION:0484- 2456777,9447146744,8111990321; ATHIRAMPUZHA:0481-2730198,9995512688,8111990328; AYYAPPANKAVU- ERNAKULAM:0484-2392820,9846279195,8111990331; BANK JUNCTION-ALUVA:0484-2620962,9961353122,8111990345; CALICUT-MALABAR GATE:0495-4050918,9895779945,8111990340; CHAVAKKAD:0487- 2502000,9746760006,8111990392; CHENGANNUR:0479-2457545,9447971343,8111990371; CHERPU:0487-2971494,9946662494,8111990342; CHERPULASSERY-TRICHUR: 0466-2284054,94473 80233,8111990339; CHERTHALA:0478-2811877,9447089891,8111990338; CIVIL STATION CALICUT:0495-2371116,9249122799,8111990395; EDA- PALLY-BANK JUNCTION:0484-4852003,8157846097,8111990334; ELAMAKKARA:0484-4020969,9497668001,8111990322; ERANAKULAM-KADAVANTHARA:0484- 2974366,9496305566,8111990349; ETTUMANUR:0481-2531924,9142051267,8111990358; HARIPAD:0479-2410960,9645090257,8111990359; IRITTY:0490- 2494522,9447721122,8111990355; KAKKANAD:0484-2428353,9447125354,8111990361; KALAMASSERY:9995824886,8111990344; KALPETTA:04936- 204670,9495318552,8111990357; KANHANGAD: 0467-2209322,9447086822,8111990360; KANNUR TOWN: 0497-2701570,9446337789,8111990364; KARUKACHAL: 0481- 2486529,9447087229,8111990363; KARUNAGAPPALLY: 0476-2622192,,8111990365;KODAKARA: 0480-2622502,9072741633,8111990323; KODUNGALLUR: 0480- 2808299,9447259640,8111990387; KONNY: 0468-2340701,9447074708,8111990372; KOONAMMAVU: 0484-2512919,9567652919,8111990315; KOOTHATTUKULAM:0485- 2250461,9745050642,8111990367; KOTHAMANGALAM:0485-2828874,9447267063,8111990346; KOTTARAKARA: 0474-2452166,,8111990350; KOZHENCHERRY:0468- 2210083,9847314385,8111990366; KUMBANAD:0469-2663474,9847365760,8111990317;KUNNAMKULAM-HARVEST:04885-210762,,8111990362;KURISUMOOD:0481- 2728034,9447484522,8111990314;MANJAPRA:0484-2692544,9446128473,8111990324;MANNARKKAD:04924-225556,9745005638,8111990369;MAVELIKARA:0479- 2340353,9447971343,8111990368;MUKKAM:0495-2298467,7012824880,8111990393;MUVATUPUZHA:0485-2833501,9847221711,8111990352;NEMMARA:04923- 244220,9847263902,8111990320; NORTH IRINJALAKUDA:0480-3259370,,8111990354; NORTH PARAVUR: 0484-4020886,9349124767,8111990370;OTTAPPALAM: 0466- 2247702,,8111990353; PALAKKAD-CHITTUR ROAD:0491-2536673,9747896672,8111990330; PALAKKAD JRS: 0491-2533125,9846596462,8111990356; PANAMPILLY NAGAR: 0484-2317887,9544700210,8111990313; PANDALAM: 0473-4252607,9495823023,8111990351; PATHANAPURAM: 0475-2353553,9400654917,8111990376; PATTAM: 0471- 2545521,9447427427,8111990377; PATTAMBI: 0466-2212640 ,9846060299,8111990374; PAYYANNUR: 04985-201922,9447781122,8111990378; PENTA MENAKA: 0484- 2323232,9388800188,8111990375; PERINTHALMANNA: 04933-227975,9446767004,8111990373; PERUMBAVOOR: 94474 33316,9562143334,8111990347; PUNALUR: 0475- 2227556,8547879132,8111990327; QUILON ASHRAMAM: 0474-2797940,9895773259,8111990379; RAVIPURAM: 0484-2364172,9847273381,8111990381;

October 5, 2019 I Geojit Insights I 49 SHORNUR:0466-2222595,9846030269,8111990382; THALIPARAMBA:0460-2204632,9249992448,8111990341; THALIPARAMBA BAZAR: 0460- 2204437,9846994444,8111990384; THIRUVANKULAM: 0484-2787077,9447164942,8111990329; THODUPUZHA: 0486-2225263,8111990388; THRIPRAYAR: 0487- 2394545,9074144735,8111990394; THRISSUR-KURIACHIRA:0487-2252307,9895711663,8111990318;THRISSUR-M.G.ROAD:0487-2339733,9895201385,8111990389; THRISSUR AMBALOOR:0480-2757226,9387828851,8111990383; THRISSUR HARVEST:0487-2221420,9400052225,8111990385; TIRUR:0494- 2431943 ,9995894699,8111990386; TRIPUNITHURA: 0484-2778828,94470 83130,8111990348; TRIVANDRUM-KUMARAPURAM: 0471-4064164,8606168833,8111990326; TRIVANDRUM-SASTHAMANGALAM: 0471-3010405,9946996002,8111990325; TRIVANDRUM, EAST THAMPANOOR: 0471-4060329,9633200329,8111990316; VADANAPPILLY: 0487-2604321,9495855211,8111990390; VAIKOM:04829-223674,9447011244,8111990343; VATAKARA: 0496-2513241,9995177955,8111990391; VAZHAKKALA: 0484- 2428599,9995808140,8111990319; VAZHUTHACAUD-TRIVANDRUM: 0471-2333221,9846031970,8111990336; VENGARA: 0494-3215353,9995894599,8111990380; MADH- YA PRADESH-BRANCH: BHOPAL: 0755-4083979,9981500822,6262001755; INDORE - SAPNA SANGEETA: 0731-2572204 ,9752501444,6262001757; INDORE - Y N ROAD: 0731-2547224,9893026647,6262001752; JABALPUR: 0761-2481002 ,7869915368,6262001754; REWA: 07662-254166,9303439311,6262001751; SAGAR- CIVIL LINES (MP):0758-2227405,9893101067,6262001756; UJJAIN:0734-4071528,,6262001753; MADHYA PRADESH-FRANCHISE: KHANDWA:0733- 2225822,9685036222,6262001758; MAHARASHTRA-BRANCH: AHMEDNAGAR:0241-2452360,7028919036,8669626327; ANDHERI EAST:022- 49715895,9072530226,8422828105; ANDHERI WEST: 022-26239300,9072530242,8422828106; AURANGABAD:0240-2350390,7028919031,8669626321; BANDRA:022- 26465144,9072530244,8422828107;BORIVILI:022-28989161,9072530220,8422828110; CHEMBUR: 022-25253027,8452048069,8422828108; DADAR-PRABHADEVI: 022- 24384816,9072530223,8422828109; DHULE: 02562-222284,7028919032,8669626322; FORT MUMBAI: 022-66368911,9072530229,8422828112;GHATKOPAR-WEST:022- 25117632,9072530218,8422828122;GHATKOPAR WEST-RAJSHREE PLAZA: 022-25002351,8422828131; GOREGAON:022 - 28423455,7506003971,8422828113; JALGAON BRANCH: 0257-2237656,7028919035,8669626326; KALYAN-DOMBIVILI:0251-2863446,9072530227,8422828117; KANDIVALI EAST:022-28460200,9072530245,8422828114; KARAD: 02164-229730,9860717438,8669626334; KARAD-DUTTA CHOWK: 02164-229734 ,8451055335,; KOLHAPUR: 0231-2520794,9072530280 ,8669626339; MULUND: 022-25927316,9072530224,8422828116; MUMBAI: 022-26193813 ,9072530225,8422828119; MUMBA-POWAI:022-25717107,9072530221,8422828118; NAGPUR:0712- 2424880,7028919037,8669626328; NANDED:02462-245546,7028919034,8669626324; NANDED-SHIVAJINAGAR: 08857028802,,8669626341; NASIK: 0253- 2575505,7028919039,8669626330; NASIK-KALIDASKALAMANDIR ROAD:0253-2595845,8669626342; NASIK ROAD: 0253-2453657,7028919038,8669626329;NERUL:022- 27700559,9072530252,8422828115;PUNE CAMP: 020-26332985,9072530248,8669626332; PUNE CHINCHWAD: 020-27442282,9072530257,8669626337; PUNE DECCAN: 020-25532582,,8669626323; PUNE MARKETYARD: 020-24261564,9072530255,8669626338;RATNAGIRI:02352-271104,9072530256,8669626325;SANGLI:0233- 2326281,9072530249,8669626340; SATARA: 02162-228163,9860326107,8669626336; SHOLAPUR:0217-2316303,9072530281,8669626331;SION:022- 24042010,,8422828121; THANE: 022-25479410,,9072530219,8422828124;ULHASNAGAR:0251-2560763,9072530282,8669626335; VASHI:022- 67911596,9072530241,8422828120; ZAVERI BAZAR: 022-22095001,,8422828123; MAHARASHTRA-FRANCHISE: DIAMOND GARDEN , CHEMBUR: 022- 25247021,9820290855,8422828125; FORT-2:022-22631371,98202 91774,8422828126; KHANDWA:0733-2225822,9685036222,6262001758; KOLHAPUR CITY:0231- 2667030,9326630060,8422828130; L&T CAPITAL COMPANY LIMITED: 022-22 67372852,9820190742,8422828128; MALAD: 022-28818812,9323108856,8422828129; THANE WEST: 022-25308077,93239 59119,8422828127; NEW DELHI-BRANCH: CONNAUGHT PLACE: 011-43598491 ,98990 47510,7835002378; DELHI- EAST PATEL NAGAR: 011-45508974,,7835002383; JANAKPURI:011-45508971,9958599262,7835002376; KONDLI:011-22510450,9599667163,7835002375; MAYUR VIHAR:011- 45160313,9995801941,7835002372; NEHRU PLACE: 011-46507571,9995801825,7835002373; NEW DELHI: 011-26160082 ,09599667158,7835002377; PITAMPURA: 011- 27352730,9995801932,7835002379; NEW DELHI-FRANCHISE: LAJPAT NAGAR: 011-46504139,9582702295,7835002380; OLD DELHI: 011-32466655,7835002381; SOUTH DELHI: 011-26935001,7835002382,7835002382; ORISSA-BRANCH: BERHAMPUR: 0680-2221094,9338437956,7377979531; BHUBANESHWAR-JANPATH: 0674- 2573351 ,9337001821,7377979535; CUTTACK: 0671-2314500 ,9583625732,7377979530; ROURKELA: 0661-2500059 ,7593891670,7377979532; SAMBALPUR: 0663- 2541669,9337017219,7377979534; PUNJAB-BRANCH: AMRITSAR: 0183-5002901,9995801909,7527053401; BHATINDA: 0164-2237147 ,9995801953,7527053402; JALANDHAR: 0181-5030046,9995801951,7527053405; LUDHIANA: 0161-5099224,9995801924,7527053400; PATIALA: 0175-5008601,9995801952,7527053403; RAJA- STHAN-BRANCH: AJMER: 0145-2633376,9928599280,8440047111; BHILWARA: 01482-242643,9928599281,8440047117; BIKANER: 0151- 2530613,9950040631,8440047110; JAIPUR: 0141-4011801,9950040674,8440047113; JAIPUR - JDA MARKET: 0141-6621569,,8440047118; JODHPUR: 0291- 2770450,9995801947,8440047112; KOTA: 0744-2365400 ,7073695666,8440047115; SIKAR: 0157-2271234,9950330666,8440047114; UDAIPUR: 0294 - 2421485,9928599282,8440047116; TAMILNADU-BRANCH: ADAYAR: 044-24422890,7358771601,7448831630; ANNA NAGAR: 044- 26193932,9840099974,7448831631; ANNANAGAR-MADURAI: 0452-2521036,9952423244,7448831681; ASHOK NAGAR: 044-23701025,7358771602,7448831632; AVADI: 044-26375382,7358065761,7448831652; BLUE STAR ANNA NAGAR: 044-26161580,9995801150,7448831633; CHENGELPET: 044-27429894,9995802289,7448831659; CHENNAI - ST. XAVIER STREET: 044-42138199,9840642126,7448831718; CHENNAI - T NAGAR: 044-24353930,7358771604,7448831636; CHENNAI,POONAMALLE HIGH ROAD: 044-26404435,9995802330,7448831648; CHIDAMBARAM: 04144-225158,9995802198,7448831651; COIMBATORE: 0422-2222005,9995802068,7448831634; COIM- BATORE-RAMANATHAPURAM: 0422-2310656,9995879697,7448831649; COONOOR: 0423-2232572,9995802064,7448831637; DEVAKOTTAI: 04561- 273412,9995800241,7448831668; DHARMAPURI, COIMBATORE: 04342-267411,9995802037,7448831641; DINDIGAL: 0451-2434871,9995802065,7448831639; EGMORE: 044-28194015,7358771603,7448831635; ERODE: 0424-2241144,9995802144,7448831645; ERODE BROUGH ROAD - COIMBATORE: 0424- 2266008,9995802045,7448831643; GEORGE TOWN: 044-25354564,,7448831638; GOBICHETTIPALAYAM: 04285-227242,9790945205,7448831690; GUINDY: 044- 22201655,7358771607,7448831682; HOSUR: 04344-246828,,7448831667; KANCHIPURAM: 044 27231315,9995801142,7448831653; KARUR: 04324 - 260965,9995802207,7448831657; KARUR 2: 04324-233993,9995802047,7448831693; KARUR 3: 04324-231991,9995801954,7448831688; KRISHNAGIRI: 04343- 237186,9995801977,7448831646; KUMBAKONAM: 0435-2400953,9995802076,7448831680; M C ROAD - ROYAPURAM: 044-25955282 ,9995801768,7448831629; MADURAI -K K NAGAR: 0452-2584612 ,9995802019,7448831640; MARTHANDAM: 04651-273775,8754121214,7448831642; MAYILADUTHURAI: 04364- 227177,9791803011,7448831715; METHA NAGAR - NELSON MANICKAM ROAD: 044-23745100,9995801102,7448831686; METTUPPALAYAM: 04254- 225725,9995802197,7448831660; METTUR: 04298-242236,9995802168,7448831644; MINT STREET - SOWCARPET: 044-25205358,9840013165,7448831662; NAGERCOIL BRANCH: 04652- 234425,9995802067,7448831665; NAMAKKAL BRANCH: 04286-274205,9995802079,7448831663; NEYVELI: 04142-251060,9995801963,7448831628; NUNGANBAKKAM: 044-28211056,9995801139,7448831664; PERAMBUR: 044-25518831,9995801068,7448831691; PUDUKKOTTAI: 04322-228920,9995802044,7448831669; R.A PURAM, CHENNAI: 044-24362059,9995801127,7448831673; RAJAPALAYAM: 04563-223105,9995801955,7448831647; RAMNAGAR: 0422- 2234319,9995800706,7448831672; SALEM: 0427-2336801,9995802096,7448831674; SIVAKASI: 04562-227161,,9677670552,7448831654; SRIRENGAM-TRICHY: 0431- 2437006,9995802176,7448831675; T.NAGAR (INTERNET TRADING - IT): 044-28344925 ,7358771605,7448831677; THANJAVUR: 04362-274996,9995802257,7448831656; THENI: 04546-250561,9995801959,7448831678; THIRUVALLUR: 044-27662577,9995801141,7448831655; TIRUCHENKODE: 04288-250057 ,9791666130,7448831626; TIRUNELVELI: 0462-2323304,9677848946,7448831658; TIRUVANNAMALAI: 04175-251067,9995801044,7448831695; TNAGAR USMAN ROAD: 044- 24352070 ,7358771606,7448831679; TOWN HALL - COIMBATORE: 0422-2301457,9995802103,7448831687; TRICHY: 0431-2767521,9995801985,7448831676; TRICHY 2: 0431-2710627,9360179991,7448831650; TRICHY 3 - CANTONMENT: 0431-2414115,9995802142,7448831689; VADAPALANI: 044-23652234,7358771609,7448831684; VELACHERY-SOUTH CHENNAI: 044-22440756,9995802287,7448831694; VELLORE: 0416-2226833,7358771608,7448831683; VEPERY: 044 - 26413431,9995802272,7448831670; VILLUPURAM: 04146-250017,7358771610,7448831685; VIRUDHUNAGAR:04562-246611,9995802034,7448831671;TAMILNADU- FRANCHISE: ADAMBAKKAM: 044-43580069 ,9500005802,7448831714; AMBATTUR: 044-42086962,9952937774,7448831696; ANNANAGAR-WEST: 044- 26567483,9551365955,7448831711; BESANT NAGAR: 044-24917714,,7448831697; BHAVANI: 04256-234035,9788775557,7448831698; MADURAI EAST: 0452- 4353613 ,9087144444,7448831703; MYLAPORE: 044-42074441,9940085959,7448831702; NANGANALLUR: 044-22249944,9840366171,7448831705; PARRYS: 044- 25250070,9940673388,7448831701; PONDICHERY: 0413-4205253,9443050592,7448831707; PURUSAWALKAM CHENNAI: 044-42051118,9840792535,7448831706; TAM- BARAM WEST: 044-22262544,9884385113,7448831710; TIRUPUR: 0421-6549646,9363056711,7448831708; TUTICORIN: 0461-2339138,9363319837,7448831709; WASH- ERMANPET: ,98407 10281,7448831713; WEST MAMBALAM: 044-42614182,9841390655,7448831712; TELANGANA-BRANCH: A S RAO NAGAR - HYDERABAD: 040- 27132872,9391055688,8367782864; ADILABAD - CINEMA ROAD: 08732-236766,,8367782878; AMEERPET - HYDERABAD: 040-23414686,9959022567,8367782848; BANJA- RA HILLS: 040-23391418,,8367782857; BEGUM BAZAR: 040-24650438,9642023482,8367782846; DILSUKH NAGAR: 040-23447691,9995809431,8367782847; HABSIGUDA: 040-40165414,9995808997,8367782875; HITECH CITY - HYDERABAD: 040-23100277,9959022563,8367782873; HYDERABAD - HIMAYAT NAGAR: 040- 23220327,9072530258,8367782851; KARIMNAGAR - HYDERABAD: 0878-2233073,9995809322,8367782861; KHAMMAM: 08742-222240,9995808993,8367782867; KUKATPALLY BRANCH: 040-66665291,9515107528,8367782840; MAHBUB NAGAR: 08542-221856,7673959992,8367782868; MEHDIPATANAM: 040- 23521740,9995808940,8367782849; NIZAMABAD: 08462-220009 ,9995809037,8367782877; PG ROAD SECUNDERABAD-BRANCH: 040-27892465,9995802198,8367782856; SANTHOS NAGAR BRANCH:040-24532981,9995809354,8367782865; WARANGAL-HYDERABAD: 0870-2447145,9959022566,8367782855;UTTAR PRADESH-BRANCH: AGRA: 0562-2525916,9956295254,7055219802; ALLAHABAD: 0532-2260473,9956295252,8917719903; BAREILLY: 0581-2510663,9956295253,7055219803; DEHRADUN - BRANCH: 0135-2711859,9760343456,7055219804; GHAZIABAD - RDC RAJ NAGAR: 0120-2820430,9560871444,7835002386; GORAKHPUR: 0551- 2204954,9956295258,8917719904; INDIRAPURAM: 0120-4159950,9971015581,7835002384; KANPUR-BRANCH: 0512-3930500,9956295257,8917719901; LUCKNOW- BRANCH: 0522-2629824,9995801709,8917719902; MEERUT: 0121-4032101,9368292488,7055219801; MORADABAD: 0591-2410350,9995806316,7055219800; NOIDA - BRANCH: 0120-4208590,9958698298,7835002385; VAISHALI: 0120-4162545,,7835002387; VARANASI: 0542-2222828,9956342346,8917719905; WEST BENGAL- BRANCH: ASANSOL: 0341-222 014,9332208162,9062205861; BARASAT: 033-25241657,9995801547,9062205865; BEHALA: 033-24075054,9831891583,9062205863; CAMAC STREET, KOLKATA: 033-22892784,9339144820,9062205860; GARIAHAT: 033-24669641,9330930844,9062205862; PRINCEP STREET: 033- 40647868,9339308800,9062205866; SILIGURI: 0353-2541789,8585075633,7377979533; TEGORIA: 033-40647873,9831891765,9062205864.

50 I Geojit Insights I October 5, 2019