Factsheet June 2019.Cdr
Total Page:16
File Type:pdf, Size:1020Kb
Facts in Figures June 2019 Monthly fund analysis and market reviews Alok Singh MARKET UPDATE CHIEF INVESTMENT OFFICER The global economy is showing signs of slow down and things like US-China trade war are contributing to it. Indian economy being part of large global ecosystem is also getting affected. The incoming growth data suggest some slowdown in Indian economy and following things are contributing to current situation. 1. The NBFCs which were major source of financing in the recent past have been most affected due to IL&FS crisis and subsequent defaults in the credit market. With NBFCs virtually going out of the business the credit flow in the economy got disrupted resulting in slow down 2. Indian export growth has been impacted because of the global slowdown. It is commonly perceived that India is less externally driven and that domestic factors are the key to India’s macro cycle. However, exports account for approximately 20% of India's GDP - almost comparable to China's share of exports in its GDP. 3. RBI maintained the extremely tight monetary policy situation for long period of time, despite the fact that inflation remained subdued. During this period RBI also kept the systemic liquidity in deficit mode, impacting the money flow and money multiplier. 4. The policy inaction of last six month mainly because of elections resulted in some amount of slowdown. Indian economy at this stage desperately needs a policy push to avoid further slowdown. RBI has already started the easing process and the effects of that should become visible in coming quarters. Along with the monetary policy stimulus, a fiscal support from the Government is also needed. The upcoming budget can provide the much needed fiscal push to the economy. However, it is easier said than done. The scope of this fiscal support is limited as Government is also facing resource crunch and losing fiscal discipline also has its negative implication on currency and lead to crowding out of finance for private investment. Since the tax revenues have been lower than projected and likeliness of increase in tax collections is quite low. In such situation Government need to work hard to generate resources from other sources may be like disinvestments etc. Government also needs to take some policy initiative to ease the extreme risk aversion in the credit market. Currently the bond market funds are available to only select few issuers. The outstanding bonds of low rated or doubtful issuers have become extremely illiquid and have become impossible to ascertain the right credit spread over the government bond. The Government 10yr bond in the recent months have rallied below 7%, even at this level the real positive interest rate is quite high and allow RBI to cut rate further by another 50 basis point and also increase the liquidity in the banking system for better transmission. If one look this inconjunction with the higher fiscal deficit resulting in increased supply of bonds in the market. The possibility of yield curve steepening is quite high. Therefore it makes lot of sense for a fixed income investor to remain invested in short end of the curve with lower duration. The Indian equity market continues to remain strong after the BJP’s decisive win in general elections. This was supported by the fact that the Domestic flows turned positive in May after staying negative for three months. FPIs continued to invest heavily in the Indian market and have put in more than $10 billion since the start of year. Index earnings were boosted by swing in profits of bank sector in 4Q FY19. However, outside index overall earnings were impacted because of weaker-than-expected volumes, revenues and profits in the case of several consumer staples and discretionary stocks. We expect markets to be range bound because of weak economic activity. Though valuations on the broader market side are more attractive than large caps, the preference for large-caps in a volatile environment is expected to continue. Going forward increased Government spending, incentives in budget, good monsoon could act as positives for the market. The underperformance of midcap index has continued and we believe that there is lot of value stocks in mid and small cap category. These from here have limited downside given the reasonable valuations and low earnings growth expectations. Source : RBI, Bloomberg. 2 SIP SHIELD AVAILABLE Equity Fund Hybrid Fund Debt Fund This product is suitable for investors BOI AXA Large & Mid Cap Equity Fund** who are seeking*: Riskometer • Long-term capital growth. Moderate Moder ately High ately Formerly BOI AXA Equity Fund • Investment in equity and equity- ModerLow related securities including equity (An open ended equity scheme investing in both large cap and mid cap stocks) High derivatives of companies across Low **Fundamental Attributes and Name of the fund have been changed from BOI AXA Equity Fund to market capitalisations. LOW HIGH BOI AXA Large & Mid Cap Equity Fund w.e.f. April 11, 2018. Investors understand that their principal will be at moderately high risk *Investors should consult their financial advisers if in doubt about All data as on June 30, 2019 (Unless indicated otherwise) whether the product is suitable for them. TOP 15 INDUSTRY ALLOCATION PORTFOLIO DETAILS Banks 23.42% Portfolio Holdings Industry/ % to Net Finance 12.64% Rating Assets Software 7.45% Consumer Durables 6.92% EQUITY & EQUITY RELATED Industrial Products 6.82% Listed / awaiting listing on the stock exchanges 6.48% Consumer Non Durables Apollo Micro Systems Limited Industrial Capital Goods 0.42 Construction Project 3.70% Pharmaceuticals 3.56% Asian Paints Limited Consumer Non Durables 1.60 Auto 3.38% Axis Bank Limited Banks 3.76 Chemicals 2.66% Bajaj Finance Limited Finance 3.34 Auto Ancillaries 2.61% Bharat Financial Inclusion Limited Finance 1.99 Industrial Capital Goods 2.58% Pesticides 2.47% Cholamandalam Investment and Finance 2.13 Textile Products 2.45% Finance Company Limited Services 2.01% City Union Bank Limited Banks 2.68 Crompton Greaves Consumer Consumer Durables 1.37 INVESTMENT OBJECTIVE Electricals Limited The Scheme seeks to generate income and long-term capital appreciation by investing Dalmia Bharat Limited Services 2.01 through a diversified portfolio of predominantly large cap and mid cap equity and equity related securities including equity derivatives. The Scheme is in the nature of large and mid Dilip Buildcon Limited Construction Project 1.30 cap fund. The Scheme is not providing any assured or guaranteed returns Divi's Laboratories Limited Pharmaceuticals 1.39 WHO SHOULD INVEST Exide Industries Limited Auto Ancillaries 1.43 The fund is suited to investors with some prior experience in equity investing or even for Godrej Consumer Products Limited Consumer Non Durables 0.99 L first time equity investors who are aware of the risk associated with investing in equities, Gravita India Limited Minerals/Mining 0.76 particularly with regard to mid and small capitalization companies. A Havells India Limited Consumer Durables 1.32 BENCHMARK HDFC Bank Limited Banks 4.54 R BSE 200 Total Return Index (TRI) Hero MotoCorp Limited Auto 1.92 DATE OF ALLOTMENT G Hindustan Unilever Limited Consumer Non Durables 1.77 October 21, 2008 FUND MANAGER Honeywell Automation India Limited Industrial Capital Goods 2.16 E Alok Singh: (w.e.f. February 16, 2017) Around 18 years of experience, including 14 years in Housing Development Finance Finance 3.74 mutual fund industry. Corporation Limited AVERAGE AUM ICICI Bank Limited Banks 5.20 & ` 157.58 Crs. ICICI Prudential Life Insurance Finance 1.44 LATEST AUM Company Limited ` 161.40 Crs. Infosys Limited Software 2.04 M MINIMUM APPLICATION AMOUNT (LUMPSUM) ITC Limited Consumer Non Durables 1.37 Regular/ Direct Plan ` 5,000 and in multiples of ` 1 KEI Industries Limited Industrial Products 1.19 I ADDITIONAL PURCHASE AMOUNT KNR Constructions Limited Construction 1.91 D Regular/ Direct Plan ` 1,000 and in multiples of ` 1 Kotak Mahindra Bank Limited Banks 3.21 PORTFOLIO TURNOVER RATIO (As on June 30, 2019) L&T Technology Services Limited Software 2.15 # # 1.12 Times ( Basis last rolling 12 months) Larsen & Toubro Limited Construction Project 2.41 C OTHER PARAMETERS (As on June 28, 2019) Lemon Tree Hotels Limited Hotels, Resorts And Other 0.83 Standard Deviation (Annualized): 15.42% (BOI AXA Large & Mid Cap Equity Fund) Recreational Activities 14.08% (BSE 200 TRI) A Beta: 1.03 Maruti Suzuki India Limited Auto 1.46 Sharpe Ratio*: 0.37 MphasiS Limited Software 1.06 P Tracking Error (Annualized): 5.32% Pfizer Limited Pharmaceuticals 1.31 Above ratios are calculated using 6 years history of monthly returns PI Industries Limited Pesticides 2.47 *Risk-free rate assumed to be 5.97% (MIBOR as on June 28, 2019) F NAV (As on June 28, 2019) NAV (`) RBL Bank Limited Banks 1.94 Regular Plan Eco Plan Relaxo Footwears Limited Consumer Durables 0.54 U Growth 34.11 Growth 36.16 SKF India Limited Industrial Products 3.35 Bonus 34.11 Bonus 36.16 SRF Limited Textile Products 2.45 N Regular Dividend 11.06 Regular Dividend 11.23 State Bank of India Banks 2.08 Quarterly Dividend 13.22 Quarterly Dividend 10.90 D Supreme Industries Limited Industrial Products 2.27 Direct Plan Tata Consultancy Services Limited Software 2.21 Growth 36.70 Bonus 18.97 Titan Company Limited Consumer Durables 2.15 Regular Dividend 11.51 Torrent Pharmaceuticals Limited Pharmaceuticals 0.86 Quarterly Dividend 11.00 Trent Limited Retailing 1.91 LOAD STRUCTURE (FOR ALL PLANS) United Breweries Limited Consumer Non Durables 0.75 Entry Load NIL Vinati Organics Limited Chemicals 2.66 Exit Load • For redemption/switch out upto 10% of the initial units allotted - within 1 year from the date of allotment: “NIL” WABCO India Limited Auto Ancillaries 1.18 • Any redemption/switch out - in excess of the above mentioned limit Whirlpool of India Limited Consumer Durables 1.56 would be subject to an exit load of 1%, if the units are redeemed/ Total 94.55 switched out within 1 year from the date of allotment of units.