8 Our retirement will perhaps be quite different from our parents. In the past there were defined pension schemes and other benefits to fall back on. There was also the additional cushion of a joint family to rely on for support. But with the gradual movement away from Vijay Chandok, MD & CEO, defined pension schemes the onus ICICI Securities Ltd. on securing our retirement is ours alone. The move towards nuclear families actually makes planning and securing our retirement that much more critical.

Retirement planning is a two stage process - accumulation and distribution. The accumulation stage is our earning period when we save and invest our income to be able to fulfill our financial needs after retirement which is the distribution stage. The investment choices we make during this accumulating phase are the most crucial ones as we rely heavily on them in the future. The real challenge is to build a retirement portfolio with right balance of fixed income and market-linked investments.

Traditionally, provident funds have been one of the favorite choices for retirement planning due to their safe and stable returns. However, with the current rate of return on Employee's Provident Fund (EPF) being 8.65 per cent and 7.90 per cent on Public Provident Fund (PPF), these schemes are essential but not sufficient to support one's retired life.

Building wealth through National Pension System (NPS) can be one potential way to strategize retirement as its considerable exposure to equity gives higher scope for growth as compared to debt oriented schemes like EPF. Withdrawal restriction up till 60 years keeps you invested in equity for long-term – optimum time to build returns.

One simple advice for a secure retirement is - the longer time you give your retirement fund to grow the more security you add to your life after retirement. But this plan has to be backed by strong yielding instruments. Like equity. Investing in equity for a longer duration has shown a remarkable growth in returns. Although volatile in nature, if started at a young age, long-term growth potential of equity overrides risks. For more disciplined stock investments, opt for Systematic Equity Plans (SEP) where you either buy stocks of fixed amount or fixed number of shares (irrespective of stock price) at regular intervals. Equity mutual funds are also an excellent way of taking exposure to equity and can also give tax benefit. However, it is always recommended to ascertain your asset allocation and determine the extent of equity exposure you should have in your retirement corpus.

It is also worthwhile to keep having some level of exposure to equity in your retirement corpus post retirement as well. Equity can possibly be the only instrument that can help counter the increasing cost of living.

Additionally, one can also consider post-retirement schemes like Senior Citizen Savings Scheme (SCSS), balanced mutual funds and tax-free bonds – for those in high tax-bracket. Investing in more than one bank fixed deposits of different maturities, known as the laddering strategy, discourages re-investment risk and can be effective retirement saving instrument.

But before you decide the best instruments to invest in for your retirement it is important to actually ascertain how much money you will require for retirement. Here are some of the factors you should consider. Start with life expectancy, for how many year after you retire will you need to draw from your retirement fund. The next step is to consider your expenses today and which of those expenses would rise in the future and which could potentially cease to exit. For example medical bills could rise while your home loan EMIs will end. Once you have done this you will have a fair understanding of the monthly expense you will have to plan for post-retirement. Alternatively, it is also worthwhile to approach a Financial Planner to help plan your retirement.

Our message remains the same - 'Keep investing and stay invested for your life goals'. Through this magazine and our website www.icicidirect.com we want to make an earnest attempt to partner with you in setting and achieving your financial goals. Do walk into any of your Neighborhood Financial Superstore and talk to us.

ICICIdirect Money Manager 1 August 2019 Good retirement planning is a combination of money and time management. Money management, to build diversified portfolio that can secure your wealth; and time management that can give enough time to grow this wealth. In simple words, one should save as much as possible and start as early you realize because financial restraint becomes the major cause of anxiety during retirement period. Here's something on diversified portfolio: Predicting future performance of an asset can be challenging, unnecessarily risky even. And since all asset classes will not perform equivalently during favourable market times, wiser way is to pool money in maximum assets. NPS, fixed-income funds, equity, real estate are tried and tested avenues for retirement income. Depending upon your risk profile, day-to-day income needs, retirement duration, lifestyle changes and other essential expenses you can decide asset allocation of your retirement portfolio. A research report shows that one in ten people do not know what their source of income will be after retirement. Mixed responses included- continue working to fund retirement, reliance on personal pension schemes and income from other savings or investments; which only shows that many Indians understand the need and importance to personally prepare for retirement. I believe, awareness about financial products and professional support can help us construct substantial corpus and turn into a steady stream of post-retirement income. Despite believing in 'living for the day' culture, my advice, especially to young investors, is to take steps towards retirement savings form Today! Longer life expectancy, lack of family support due to nuclear family system, soaring medical costs, rising inflation, job-hopping attitude, lack of government sponsored pension schemes - makes it all the more necessary to plan your retirement now. Calculating cost of living after retirement is the most significant figure in your retirement plan. Our cover story takes you through elements and products to consider while getting down to that ballpark figure. So stay updated, plan a happy retirement and keep reading to stay financially fit. Do write us back at [email protected] any queries or feedback.

Your magazine is now also available on www.magzter.com, a digital newsstand.

Editor & Publisher : Abhishake Mathur, CFA Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey Coordinating Editor : Rhea Miranda Editorial Team : Nithyakumar VP CFPCM, Sachin Jain, Research Team

ICICIdirect Money Manager 2 August 2019 MD Desk ...... 1 Editorial...... 2 Contents...... 3 News...... 4 Stock ideas: IDFC First Bank and PNC Infratech...... 5 Flavour of the Month: All you need to know about retirement When you talk about retirement the only question that arises is, have you collected enough for your living? We are uncertain of the expenses that will occupy in future, thus planning only before retirement is not sufficient. Post your retirement there has to be investments that keep an ongoing cash inflows. Planning for retirement should be such that even if your life expectancy increases you have that corpus to suffice your requirements. This article provides you ways to invest, post your retirement. Read more...... 14 Tête-à-tête: It's better to plan rationally! Is my taken action right for the retirement? No matter how many dreams you list down it should be fulfilled even post your retirement. This article is supported by our expert Mr. Abhishake Mathur, SVP and Head - Investment Advisory and Service, ICICI Securities in bringing out the measures to plan your financials during retirement...... 26 Ask Our Planner Our financial expert answers your personal finance queries ...... 33 Mutual Fund Analysis Which are the top performing mutual funds in current market scenario? Check these top infrastructure funds recommended by our research team... 41 This month on iCommunity Look out for an extraordinary financial learning platform for traders and investors...... 55 Equity Model Portfolio...... 56 Quiz Time...... 60 Prime Numbers...... 61

ICICIdirect Money Manager 3 August 2019 Mukesh Ambani unveils Jio Fiber & the mother of all set top boxes Mukesh Ambani has finally unleashed his triple play of carriage, content and commerce. At the 42nd AGM of Reliance Industries today, he unveiled the Jio Fiber, the much talked-about fiber- to-the-home (FTTH) service. Jio Giga Fiber will essentially offer lifetime free voice calls from landline phones and high speed broadband, besides free high definition TV and dish with minimum subscription of Rs 700 per month. Jio Fiber services will be started on a commercial basis from 5th September this year, which is the third anniversary of Reliance Jio. The cheapest data plan is priced at Rs 700 a month, and has speeds up to 100Mbps. The top-end plan comes at Rs 10,000 a month and provides access to broadband, Jio HomeTV and Jio's IoT. Courtesy: Economic Times

Consumer Alert! Are you buying online insurance from this fake website? Insurance Regulatory and Development Authority of India (IRDAI) has issued a notice in public interest cautioning about a fake website using the name of the authority to sell insurance products to prospective buyers. The IRDAI in its notice says that a website using the domain name of www.irdaionline.org is selling insurance to the general public while this domain is not authorized by the Authority. IRDAI further states that the IRDAI authorized website is having domain name www.irdaonline.org and which also hosts the Centralized Agency Portal. Earlier IRDAI had cautioned the public at large that it is had been brought to their notice about people receiving a lot of spurious calls in the name of officials of IRDAI making fraud related claims and giving fictitious offers to buy insurance from them. Claiming that IRDA is distributing bonus to insurance policyholders out of the funds invested by insurance companies with IRDA. Courtesy: Financial Express

SBI report: 'For faster transmission, link bulk deposits with repo rate’ The best option for faster transmission of repo rate reduction could be linking all incremental bulk deposits to be linked to the repo rate, State Bank of India said in a report. In India, single rupee deposits of Rs 2 crore and above are considered as bulk deposits and banks have discretion to offer differential rate of interest on bulk deposits. The share of bulk deposits in banks' total deposits could be around 30 per cent after the definitional change. "Needless to say, most of the bulk deposits are from institutions. It is thus logical that large institutions could afford to take interest rate risk as this would spare the retail depositors from taking the same," the SBI Research report said. Courtesy: Indian Express

Retirement fund manager may hire new agency to review investments in ETFs Retirement fund manager, the Employees' Provident Fund Organisation (EPFO), is set to hire a new agency to help it review and redeem investments in exchange traded funds (ETFs) whenever required, in the wake of ballooning equity investment. EPFO has so far invested around ?70,000 crore in stocks through ETFs, but does not have a clear plan for redeeming its investments or credit to the subscribers account. The hiring of a new agency assumes significance as the organisation looks to transfer ETF units to subscribers in a separate account and encash some ETF investments if the market goes down because of a slowdown. Courtesy: Live Mint

ICICIdirect Money Manager 4 August 2019 STOCK IDEAS

IDFC First Bank – Retailisation 'FIRST' – new mantra at IDFC First Bank

Company Background branch count from 242 in FY19 to IDFC First Bank has walked a long ~800-900 ahead. Such resource path of transformation starting addition is seen increasing from infrastructure finance NBFC operational expense in the initial to universal bank. To strengthen two fiscals (refer exhibit below) retail franchise, IDFC Bank & with CI ratio being elevated at Capital First Ltd engaged into a ~69% in FY19-21E. With merger to form IDFC First Bank in ac c r eti on of b us i nes s and December 2018. The merged transition of newly opened entity is the eighth largest private branches towards break even mark, CI ratio is expected to bank with funded asset at ~` moderate gradually to ~56-57% 112558 crore (retail: wholesale – in FY23E (management guidance 40:60) as of March 2019 and wide – 50-55%). customer base of ~70 lakh. It is being headed by V Vaidyanathan, who has a proven track record at Asset quality seen steady; credit cost Capital First. IDFC First Bank has a at ~1-1.3% in FY19-23E pan India presence with 279 Erstwhile IDFC Bank has faced branches, 199 ATMs, 520 BCs & asset quality issues pertaining to 102 CFL legacy infrastructure book. H o w e v e r , t h e b a n k h a s Investment Rationale p r o g r e s s i v e l y u n d e r t a k e n provisions after receiving banking Building retail franchise to shore up l i c e n s e . W i t h m a j o r i t y o f opex; leverage to kick in infrastructure stress either IDFC First Bank has been aiming to provided or sold to ARC and build a strong and sustainable adequate provision, the worst in retail franchise for business corporate/ infrastructure book growth ahead. In order to build seems to behind. Going ahead, sustainable deposit base, the the management plans to run bank plans to adopt aggressive down the erstwhile infra book. expansion and frontload branch Therefore, risk of bulky slippages addition. Accordingly, ~600 is ruled out. Lower corporate branches are to be added in the slippages and granular retail loans next five to six years taking total is seen leading to paring down of

ICICIdirect Money Manager 5 August 2019 STOCK IDEAS

GNPA ratio to ~2.2% in FY23E. absolute terms and witness a However, given the intense decline in proportion from competition in the retail segment ~48.6% in FY19E to ~29% in and the bank's plan to increase FY23E. Corporate book growth is proportion of retail book, credit expected at 7.3% CAGR while cost is seen at ~110 – 130 bps in infrastructure book is to rundown FY21-23E. However, credit cost with maturity. for FY20E is expected to remain Building liability franchise; retain focus elevated at 190 bps on the back of on retail asset aid valuation; Initiate exposure towards stressed BUY companies recognised in the watch list. IDFC First Bank, under new leadership, aims to retain its Transition to retail advances; shedding ability to grow retail asset base at of erstwhile infra book – accretive for healthy pace with an eye on yields quality. Building of sustainable Erstwhile IDFC Bank advances liability franchise would act as were dominated by wholesale catalyst to support valuation. sector while Capital First had a Higher capital adequacy rules out loan book with high yielding any near term dilution. Recent segment including SME/ LAP, two- recognition of stress coupled with wheeler and consumer durables. adequate provisions gives Post-merger, the merged entity comfort. With anticipated NIM at focus shifts towards retail loans. 4%, we compare IDFC First Bank The new management envisions with banks delivering superior itself as a retail lender and intends margin (HDFC, IndusInd & Kotak t o g r o w t h e r e t a i l b o o k B a n k ) . I D F C F i r s t B a n k ' s , a g g r e s s i v e l y c o m p a r e d t o sustainable RoE being relatively wholesale book. Accordingly, the lower at 10% vs. 16-17% of retail book is seen growing at a aforesaid banks, a 50% discount faster pace at 27.2% CAGR in to their valuation of ~3x P/ABV is FY19-23E, thereby increasing justified for IDFC First Bank. proportion of retail book to Consequently, we assign a target ~65.6% in FY23E. The wholesale multiple of ~1.5x on FY21E ABV book, on the other hand, is and arrive at target price of ` 54 expected to remain stable in per share with a BUY rating.

ICICIdirect Money Manager 6 August 2019 STOCK IDEAS

Key Financials

` Crore FY18 FY19 FY20E FY21E NII 1,973 4,287 5,342 6,263 PPP 1,295 1,482 1,673 2,459 PAT 955 (1,641) (247) 712

Valuations Summary FY18 FY19 FY20E FY21E BV (`) 45 38 38 39 ABV (`) 42 36 34 36 P/ABV (x) 1.0 1.2 1.3 1.2 EPS (`) 2.8 (3.4) (0.5) 1.5 P/E (x) 15.5 (12.7) (84.5) 29.3 RoE (%) 6.3 (9.8) (1.4) 3.9 RoA (%) 0.8 (1.1) (0.1) 0.4

Stock Data Amount Market Capitalisation ` 20851 crore Networth ` 17545 crore 52 week H/L 57/33 Equity capital ` 4782 crore Face value ` 10 DII Holding (%) 3.98 FII Holding (%) 13.75

Key risks include: of wholesale borrowing. This leads to ALM mismatch as well Building strong liability keeps cost of funds higher. f r a n c h i s e r e m a i n s k e y Given competition from larger challenge banks & small finance banks is getting intense, company IDFC First Bank has one of the faces challenge of garnering weakest liability profile with deposits to shore up its greater reliance on borrowings liabilities franchise. In addition, & wholesale deposits. Nearly the bank has to shore up 89% of the liability constitutes deposit base to replace slew of

ICICIdirect Money Manager 7 August 2019 STOCK IDEAS infra bonds slated to mature in The new management is next two to four years. adopting a strategy to focus on retailisation of both sides of Exposure to high yield book of Capital First entails default business i.e. assets as well as risk liabilities. Accordingly, the bank needs to build higher Being a retail focused lender, number of customer touch erstwhile Capital First had points (branches and ATM). c o n c e n t r a t i o n t o w a r d s This will lead to frontloading of SME/LAP at ~40%. Any operating expenses and slowdown in the economy thereby increase CI ratio. would largely impact the However, incurring of high SME/LAP as the sector is expenditure to improve its closely linked to the economy. presence does not guarantees This can derail the growth trajectory being factored in our robust accretion of deposits. assumptions. Failure on garnering healthy traction in liability franchise Cost associated with c o u l d i m p a c t e a r n i n g s retailisation poses risk on trajectory and thereby our earnings estimates.

ANALYST CERTIFICATION

I/We, Kajal Gandhi, CA, Vishal Narnolia, MBA and Harsh Shah, MBA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report. Terms & conditions and other disclosures: ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a Sebi registered Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India's largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI

ICICIdirect Money Manager 8 August 2019 STOCK IDEAS

Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.

Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report.

ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.

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This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

ICICIdirect Money Manager 9 August 2019 STOCK IDEAS

PNC Infratech (PNCINF) – Execution to gain further momentum in H2FY20E…

Company Background ahead. With such strong bidding pipeline lined up Incorporated in 1999, PNC ahead, the company is looking Infratech Limited is one of the forward to bid for national as leading EPC player with expertise well as state government road in execution of major infrastructure projects and expects order projects, including highways, inflows worth ` 6,000-7,000 bridges, flyovers, power crore in FY20E. On the transmission lines, airport e x e c u t i o n f r o n t , w i t h runways, development of industrial appointed date for two HAM areas and other infrastructure projects received in Q4FY19, activities. The company has execution on six out of seven executed a total of 60 major HAM projects is in full swing. Infrastructure projects across 14 Additionally, the company states in India and has a strong aims to complete six projects foothold in northern India. worth total ~` 600 crore in FY20E. The management has Investment Rationale Strong order book position to drive maintained its 45-50% revenue execution ahead... growth in FY20E. Overall, we expect revenues to grow PNC's order book (OB) was at ` 27.4% CAGR to ` 5,028.1 crore 10,950 crore as of Q1FY20, in FY19-21E. 3.5x FY19 revenues, providing strong revenue visibility Equity requirement to be funded ahead. NHAI has 6,000 km road through internal accruals… project lined up for awarding in P N C h a s a t o t a l e q u i t y FY20E. Also, the government requirement of ` 832 crore for is set to roll out Bharatmala its HAM projects, of which, it Phase-2, wherein it is expected has already infused ` 282 crore t o a w a r d 3 , 0 0 0 k m as of Q1FY20. The balance ` expressways and 4,000 km 550 crore equity will be infused greenfield highways, going in the next two to three years: `

ICICIdirect Money Manager 10 August 2019 STOCK IDEAS

240 crore in FY20E, ` 220 crore orderbook & with execution in FY21E & balance in FY22E. started on six of the seven The monetisation of Ghaziabad HAM projects. Its prudent WC Aligarh road project shall entail management & lean balance cash inflows worth ` 300 crore i n F Y 2 0 E . S e c o n d l y, i t s sheet also reinforces our confidence that PNC is well standalone debt was at ` 452 crore as of Q1FY20. The p l a c e d t o c a p t u r e h u g e management sees limited opportunities ahead. With a increase in debt levels to ` 500 strong ramp up in execution to crore by FY20E end. With continue in FY20E, we expect strong internal cash accruals, revenue growth at a 27.4% cash inflows from asset monetisation, limited increase CAGR to ` 5,028.1 crore in in debt expected ahead and FY19-21E. Hence, we maintain lean balance sheet position, our BUY rating on the stock PNC should be able to fund its with a target price of ` equity requirement easily 2 5 5 / s h a r e . We v a l u e i t s Valuation & Outlook… construction business at ` 2 0 7 / s h a r e ( a t 8 x F Y 2 1 E PNC remains our top pick in the EV/EBITDA implying 15.2x EPC space given its robust FY21 EPS).

ICICIdirect Money Manager 11 August 2019 STOCK IDEAS

Key Financials ` Crore FY18 FY19 FY20E FY21E Revenues 1,856.6 3,096.9 4,330.7 5,028.1 EBITDA 318.8 457.3 596.5 697.5 Adjusted PAT 251.0 304.9 319.3 349.6 EPS (`) 9.8 11.9 12.4 13.6

Valuations Summary FY18 FY19 FY20E FY21E PE (x) 17.9 14.7 14.1 12.8 M.Cap/ Revenues (x) 2.4 1.4 1.0 0.9 EV to EBITDA (x) 14.0 10.0 8.1 7.3 P/B (x) 2.5 2.1 1.9 1.6 ROE (%) 13.9 14.4 13.3 12.8 RoCE (%) 13.7 15.6 17.5 17.5

Stock Data Particulars Amount

Market Capitalisation ` 4489 crore Debt (FY19) ` 375 crore Cash (FY19) ` 252 crore EV ` 4612 crore 52 week H/L ` 195/ ` 123 Equity capital ` 51.3 crore Face value ` 2

Key risks include: 1. Failure to win new orders; 3. Addition of new large BOT delay in execution projects which could stress its 2. Concentration risk towards balance sheet and restrict its road sector growth

ICICIdirect Money Manager 12 August 2019 STOCK IDEAS

ANALYST CERTIFICATION I/We, Deepak Purswani, CFA, MBA (Finance), Harsh Pathak, MBA (Finance), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report. Terms & conditions and other disclosures: ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a Sebi registered Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India's largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

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ICICIdirect Money Manager 13 August 2019 FLAVOUR OF THE MONTH

All you need to know about retirement planning

Retirement planning is not just about building up an adequate corpus through savings and investments. The real challenge is managing that corpus and withdrawing funds from it to meet regular expenses as you approach and enter retirement. How would you create a regular stream of income from your accumulated savings in order to pay your bills? What would be your withdrawal strategy to ensure that your money lasts lifelong? How much risk should you be taking with your investment portfolio then? How about managing healthcare costs, inflation and taxes? These are some of the important questions to address as you near retirement or are already retired. Here we help you address these questions and lay a road map for you to have a comfortable and rewarding retirement. Read on.

Whenever we talk about Retirement issues faced by retirement, people tend to retirees neglect its importance. They assume the gratuity, employee At retirement an individual faces majority issues like pension plan and a little bank health expenses, rising rates of savings is enough to suffice the resources due to inflation, retirement period. But, the unmanaged debts during reality is the inflation will eat up earning period, more of cash most of your savings, thus one outflow than inflow, higher needs to have a retirement dependency during retirement plan in place. as the family expenses were Even after understanding the prioritize before retirement importance of planning your planning. retirements early, many miss Health Cost increases: out on planning for the same and face issues during their The main issue faced during retirement. Below are listed retirement begins with health. issues that a retired individual As age passes by, the related could face. health issues arise. Diseases

ICICIdirect Money Manager 14 August 2019 FLAVOUR OF THE MONTH are uncertain so is the cost of reducing the size of your medical expenses certainly p o r t f o l i o . M o s t r e t i r e d high. The basic charges for individuals go for systematic visiting a doctor itself is Rs. 1, withdrawal plan and withdraw 000 and curing the disease has major portion of their corpus. its own payment structure that Setting a limit to withdrawal differs from disease to disease, will keep the money save till life not forgetting the rates of the expectancy. medicines as well. One needs Longer Life Expectancy: to have insurance in support for your retirement. Retirement planning always considers the life expectancy Enjoying retirement: of the individual, in case if the retiree's life rises the extended Everyone wishes to enjoy at life span brings in the expenses their retirement age that is to that needs to be managed. One travel around the world, should have investments to surround themselves with cover up expenses till the life luxurious items, have a lavish expectancy and also could lifestyle, etc. But as we jot have a buffer value set in the down this list we don't keep a corpus in case of emergencies. track of the budget and the withdrawal pattern seems to Piled up debts: empty our retirement corpus. Taking up debt i.e. loan or No fixed withdrawal plan: credit to accomplish your requirements is good only One should discipline their when you are able to repay. withdrawal plan by only Unnecessary opting for loans utilizing the funds required and could hamper your credit keep the remaining money score, so the choice of the invested. Especially during the loans need to be done wisely. falling markets one should Many individuals compromise avoid withdrawals as that is the on their retirement because time to buy rather than they need to pay off debts.

ICICIdirect Money Manager 15 August 2019 FLAVOUR OF THE MONTH

Some end up losing their next 10 years. And to meet savings or assets that is own those rising prices investors house or vehicle, etc. just to set are required to invest in funds o f f t h e i r d e b t s . D u r i n g that beats inflation. retirement one should avoid Taxes: taking a debt, this could i n c r e a s e t h e b u r d e n o f At retirement, you are not free increasing the savings and from taxes. As per the tax negotiate on investments. slabs, taxes are to be paid by Inflation: the retirees based on the income earned. Everyone is fearful of Inflation, as the prices today won't be the Income tax slabs for senior same in future. For example, citizen taxpayers of age more the expenses costing today than 60 years but less than 80 one lac will be five lakh in the years for FY 2019-20 is:

Income range per Tax Rate FY 2019-20, AY 2020-21 annum Up to Rs. 3 lakhs No Tax Above Rs. 3 lakh to Rs. 5% of (total income minus Rs. 3 lakh) 5 lakhs + 4% cess Above Rs. 5 lakhs to Rs. 10,000 + 20% of (total income Rs. 10 lakhs minus Rs. 5 lakh) + 4% cess Above Rs. 10 lakhs Rs. 1,10,000 + 30% of (total income and above minus Rs. 10 lakh) + 4% cess

Income tax slabs for super senior citizen taxpayers above 80 years of age for FY 2019-20 is:

Inco me range per Tax Rate FY 2019-20, AY 2020-21 annum Up to Rs. 5 lakhs No Tax Above Rs. 5 lakh to 20% of (total income minus Rs. 5 lakh) Rs. 10 lakhs + 4% cess Above Rs. 10 lakhs Rs. 1,10,000 + 30% of (total income and above minus Rs. 10 lakh) + 4% cess

ICICIdirect Money Manager 16 August 2019 FLAVOUR OF THE MONTH

Taxes on capital gains: Taxes implied is common to all the ages and so the taxes implied on the capital gains are:

Type of Equity/ Hybrid Debt investment Less than 1 15% tax applicable Taxed as per the year income slab 1-3 years 10% tax applicable if Taxed as per the gains are more than 1 income slab lakh More than 3 10% tax applicable if 20% tax applicable years gains are more than 1 with indexation lakh

In order to save your income to be properly balanced from going in taxes one could i n c l u d i n g t h e c a s h f l o w avail the effective ways of tax requirements, risk tolerance, planning and invest in tax return requirements and saving instruments. duration. Post retirement Balance Risk and Returns: individual need to keep their risk low unless they have Balance risk and returns states surplus funds available. that the asset allocation needs

Housewives don't retire but they should have retirement planning. Indian Housewives have tremendous management skills where they balance the household with corporate life. Many are entrepreneurs in their own style. Some have to leave work due to family. Yet there are a few who are managing only household and the income earned by husband is the only inflow they receive to manage these expenses, the surplus left becomes their savings. It is essential that women should have their retirement plan so that the expenses are taken care off when there is no income. Usually the housewives who do not have income or surplus, husbands tend to invest for them

ICICIdirect Money Manager 17 August 2019 FLAVOUR OF THE MONTH which may or may not be the accurate amount required at the time of distribution phase. Homemakers do for themselves based on the savings they have: · Purchase gold · Keep the money in Savings account Husbands do for their Homemakers: · Open a savings account on the wife's name or a joint account under both names. · Make a fixed deposit on the wife's name. · Have an insurance plan by having a Family floater insurance or personal insurance · Nominee for every asset that the husband owns. · Invest in Physical goal

Apart from the above investment tools, home makers could invest into; · Few SIPs in hybrid funds. · Specifically invest money into personal insurance covers as that will be the backbone during a medical emergencies. Earners could contribute some portion to premiums as well. · Could invest in Atal Pension Yojana (APY), where the minimum investments could be Rs. 100. · A few schemes to support the women entrepreneurs: Bharatiya Mahila Bank, Cent Kalyani Scheme, Mahila Udhyam Nidhi Scheme, Annapurna Scheme, Stree Shakti, Orient Mahila Vikas Yojana Scheme, Dena Shakti Scheme.

ICICIdirect Money Manager 18 August 2019 FLAVOUR OF THE MONTH

Is it the right time to retire? Or Are 10 years, handling those you confident enough about your expenses won't be easy, thus retirement age? there is a need to plan properly and have extra cash to handle When you are nearing your those buffer years. retirement, ask yourself that the funds collected so far is Pros of retiring early: sufficient enough to fulfill all the · Your health stays in good requirements of your family condition as there is less stress and self-till the life expectancy? from work and you get more Even when you know you're not time to spend with your family healthy enough to work more. members. It's time to retire. Many retire There is immense time to assuming their requirements · travel the world are fulfilled but the future is uncertain like medical · Get time to explore your expenses could hit your hard hobbies and indulge into a new earned money, family or career or start a business (new s p o u s e m a y r e q u i r e income stream/ earning from emergency funds and if you doing things you love) crash into a financial burden · Eagerness to increase wealth your retirement will not end as your retiring early. happily. One should not fall Cons of retiring early: under the situation to sell off their assets just to payoff · No income flow unless expenses/ debt. investments post retirement N o e m p l o y e e b e n e f i t s Imagine you want to retire at · ( m e d i c a l c o v e r s , H R A ' s , the age of 60 and your life gratuity, etc.) expectancy is what you assume to be 80 years. You should have · Need to make sure your funds available to manage any savings will last till your years of medical expenses and living emergencies for those 20 · Miss dong ongoing activities years. But imagine your life at work leading you to get expectancy to increase another bored at home

ICICIdirect Money Manager 19 August 2019 FLAVOUR OF THE MONTH

· Spending less, as the cycle of · Less worried about life earning has stopped e x p e c t a n c y a s y o u r increasing your savings by · Early withdrawals could reduce your corpus retiring late Cons of retiring late · Miss out on investment There is less time to explore schemes that are eligible only · to the age bracket between 55 the world. to 60 and more. · Many could suffer health issues during working hours With the above pros and cons How much should be the on retiring early, retirees need withdrawal pattern? to keep one think in mind and t h a t i s . T h i n k i n g a f t e r Retirees should not withdraw retirement is the time to only more than 4-5% of their savings relax, yes it is but exceeding the in the first year itself. Later on limit of relaxation could impact they could balance out the your health and make you sick. expenses and accordingly In fact, engaging yourself in the withdraw. Money that is activities mentioned above blocked in mutual funds should could make your retirement be withdrawn only when fruitful. required. One should not end up in depleting their savings as Pros of retiring late it takes years to build it. While · There is more time for c o n s i d e r i n g w i t h d r a w a l , earning that will add up your individuals need to consider the savings. t a x i m p l i c a t i o n s o n t h e · As you are working longer investments too. you are entitle to receive the employee benefits The best way to handle your withdrawal pattern is try to Less chances to feel lonely as · make a check list of all the your occupied with work that e x p e n s e s t h a t c o u l d b e keeps your mental and incurred in a year. Later try to physical health busy. a v o i d t h e u n n e c e s s a r y · Be engaged as your mind expenses in the list and check stays active

ICICIdirect Money Manager 20 August 2019 FLAVOUR OF THE MONTH the required expenses that will change the asset allocation of be required to be withdrawn. your funds in time of growing This will help you to keep some wealth. Make it a point to keep cash for any uncertain the extra money received from situation/ emergency. It's any sources in the retirement essential that you proportion savings corpus. your equity and debt investments as that's your Either do it yourself or take retirement income that would advise from an expert. At ICICI be in pace with inflation. we service you with a well planned retirement along with What all things should one managing other financial goals. keep in mind during For a better financial plan, you retirement? may write at [email protected]. Also One needs to consider the avail our service of financial financial issues that they could planning to know more, follow face in retirement as mentioned this link: at the start along with that individual needs to keep a track https://www.icicidirect.com/idi of their budget, especially the rectcontent/Home/InvAdvSvc. cash outflow i.e. spending. aspx or visit to While going for investments, the amount invested should be ICICIdirect.com>Advisory equal to the future goals set by Service>Financial Planning you. Never forget to make a will One of the most important point that and have an estate plan in an individual should keep in mind is place, this will keep you never utilize or break the retirement assured that all your corpus of savings corpus before retiring money and assets are legalist to without an emergency. the right individual. There is a need to keep an emergency Benefits of planning early corpus always even if you have retirement a lot of savings. Regulate your One of the biggest reason one investments and proportionate should plan for retirement is it whenever required meaning p o w e r o f c o m p o u n d i n g.

ICICIdirect Money Manager 21 August 2019 FLAVOUR OF THE MONTH

Everyone wishes to have their returns every quarter, at income doubled in time. With present it is 8.60% for Q2 of FY minimum amount invested 2019-20 (July-sept). This today it could enable you to schemes shares the highest maximize your wealth for interest rate as compared to tomorrow. Planning early keeps other small savings schemes. you at ease in advance, that You can open an account at the after retirement there will be a public/ private sector banks and corpus to handle your goals, Indian post offices by applying emergency expenses, health in Form A along with the issues and enough cash to amount deposit. An individual travel places. Additional benefit that an individual gets is tax can have multiple accounts in benefit in post as well as pre- w h i c h t h e y c a n d e p o s i t retirement phase. Another minimum amount of Rs. 1,000 reason of retirement planning is or multiple of thousands but that it beats inflation so you're overall his/her deposit should l e s s w o r r i e d a b o u t t h e not exceed maximum limit of fluctuating future prices. 15 lakh. It can be single or a joint Retirement type: Distribution phase account. Maturity of the account is 5 years from the date Distribution is that phase of of account opening but it can be retirement where you no longer extended post 3 years from build wealth but utilizing the account opening through Form w e a l t h t o f u n d f o r y o u r B as per SBI. retirement. It is the time where you ensure you receive regular Eligibility guaranteed income post your · The individual entry age retirement. should be 60 or more. Senior Citizen Savings Plan: · One can open the SCSS It is a government backed account between the age saving instrument for retired bracket of 55 to 60, given they individuals as it is less risky and retire with a superannuation offers capital protection. The benefit or a VRS (Voluntary Ministry of Finance changes the retirement scheme).

ICICIdirect Money Manager 22 August 2019 FLAVOUR OF THE MONTH

· NRI's and HUF are not eligible afford to take risk could go for for this schemes. equity oriented hybrid funds. Investors need to avoid small · Withdrawal is allowed after cap funds as it's too risky. completion of a year from the account opening date subject Eligibility: to penalties. There is no criteria for Senior citizen savings schemes investments in Mutual fund. has section 80C benefit of Jus t b as ed o n your r i s k Income tax act, 1956. capability you need to hold Pre-closure charges are those funds. implied as follows: One of the recommended tool Withdrawal within 1 to 2 years - in mutual fund is the systematic 1.5% deducted from the withdrawal plan. Individuals accumulated amount left in the could pay lump sum amount to account Withdrawal from 2 the fund and in return could get y e a r s t i l l m a t u r i t y - 1 % m o n t h l y w i t h d r a w a l f o r d e d u c t e d f r o m t h e handling their day-today accumulated amount left in the expenses. account. Reverse mortgage: MF- SWP When there is no income Especially for a retired source, retirees tend to sell-off individual debt funds enable their assets especially house or them to generate regular gold. Leading them to pay rent income post retirement. This that is more expensive than the investment avenue is the most owned house, a better way is utilized tool by individuals as it going for a reverse mortgage. is at par with inflation. Retirees Reverse mortgage means are ready to take moderate risk lending your house property to thus, they could invest in hybrid bank and in return receive debt funds, liquid funds, monthly payments for your regular growth funds, large cap daily activities. In simple words, and blue chip funds to earn its opposite of a loan where you impressive interest on their receive the payments here. income. Individual who can Repayment of the loan is till the

ICICIdirect Money Manager 23 August 2019 FLAVOUR OF THE MONTH b o r r o w e r ' s d e a t h o r product that enables the permanently moves out of the individual to avail the income house. Interest rates are low in immediately i.e. post its a reverse mortgage. investment the plan starts Eligibility: giving regular income in f r e q u e n c y t o m o n t h l y, · The age criteria is 60 and quarterly, half-yearly or yearly. above for single owner while a Interest rate defers from 58 could be for joint owners scheme to scheme. · Resident of India Eligibility: Loan is provided for max 20 · · Maximum entry age is 80 y e a r s f r o m t h e t i m e o f years (based on last birthday) application for immediate annuity. The amount availed by banks · · Purchase Price (Amount is Minimum amount according invested) is based on the age to the bank and maximum is Rs. and annuity chosen. 1 crore. · Minimum amount of Rs Pe n s i o n p l a n b y i n s u r a n c e 10,000 is the annuity payout companies: and maximum no limit set. In this retirement plan retirees · One can payout monthly, pay a single lump sum amount quarterly, half-yearly or yearly. i n t h e p e n s i o n p l a n s o f insurance companies. There is Immediate annuity avails tax dual benefit here, there is benefits on premium paid i n v e s t m e n t b a c k e d b y under Section 80CCC and insurance. Can avail a tax commutation under Section benefit on the premiums paid 10(10A) of the Income Tax Act, under section 80CCC of the 1961. The drawback of this Income Tax Act, 1961. investment avenue is the closure of the account, you Immediate annuity cannot cancel the plan nor opt For retirees who receive lump out of the plan. sum amount this plan is good to Post-Office Monthly scheme go with. It is an insurance A post office monthly scheme is

ICICIdirect Money Manager 24 August 2019 FLAVOUR OF THE MONTH a small saving investment that scheme, there is no tax rebate is backed by government. The on the investments or maturity returns received from this amount. For a premature scheme is 7.6 % for Q2 of FY withdrawal/ closure of the 2019-20 (July- sept). The account before completion of 5 account matures in 5 years years, charges are applied; a. from the date of account Withdrawal in between 1-3 opening. 5 % Bonus was years of account opening is 2% availed to account holders, o f t h e d e p o s i t a n d b . who had opened account Withdrawal in between from 3 st before 1 December 2011. till maturity is 1% of the deposit. Eligibility: Summing up: · A minor at the age of 10 years So, when you talk about could open this account, post retirement it doesn't mean u 18 the minor could avail the need to completely go for funds in the account. savings and not spend at all. · Account could be opened by There has to be a limit for every a single or joint account (up to 3 e x p e n s e , s a v i n g s a n d adult holders) i n v e s t m e n t s d o n e b y · Depositing amount could be individuals. Our advice would minimum Rs. 1, 500, or in be to start your retirement plan multiples of Rs. 1,500 and today itself, so you don't have to maximum amount is Rs. 4.5 face any financial issues during lakhs for single account holders retirement phase. Also, making and Rs. 9 lakhs for joint account a will is the most important for holders. securing the ownership in the In post office monthly income right hands.

The views expressed in the article are personal views of the author and do not necessarily represent the views of ICICI Securities

ICICIdirect Money Manager 25 August 2019 Tête-à-tête

It's better to plan rationally!

Is my taken action right for the retirement? No matter how many dreams you list down it should be fulfilled even post your retirement. This article is supported by our expert Mr. Abhishake Mathur, SVP and Head - Investment Advisory and Service, ICICI Securities in bringing out the measures to plan your financials during retirement…

completely. Most prefer to work part-time, say 3 days a week, in their first phase of retired life and earn a decent money to fund their day-to-day needs. Abhishake Mathur, SVP and Head - Investment The reality is that many find it Advisory and Service, difficult to retire early because ICICI Securities they are not prepared. Given Q. What is the ideal age of the reduction in pension retirement? When should one benefits offered on the job, retire? better lifestyle and increased life expectancy are some of the A. People who started their factors that impact the careers till 1980's worked till preparedness. their age of 58-60 years before calling it a day. However, Q. Do you think a self-employed people who started their individual should have a retirement careers this century look to plan? If so, what could be his plan of retire from active work life action and what retirement early, around 45-50 years of benefits can he avail? age. The reality of when they will actually retire is yet to be A. Absolutely. Being self- s e e n . O f c o u r s e , e a r l y employed, sometimes, you retirement doesn't necessarily tend to feel that you can retire mean that income stops any time as per your wish or

ICICIdirect Money Manager 26 August 2019 Tête-à-tête even work till the end of your retirement corpus. l i f e t i m e , a s t h e r e i s n o retirement age like a salaried Q. Should housewives have a person. retirement plan? If yes, how should they plan their retirement savings? However, even if you are self- employed, it's important you A. Housewives contribute a plan your retirement well in significant part in a family's advance by fixing a retirement overall development, from age and plan for succession in upbringing of kids and fulfilling your business accordingly. If most needs of all family succession is not planned members. Any retirement plan properly, then the business made should be for both might not sustain properly, spouses put together i.e. one p o s t t h e d e m i s e o f t h e m u s t c o n s i d e r t h e l i f e individual. expectancy & needs of both spouses and make the plan. Unlike a salaried person, a self- Generally, women outlive men employed person doesn't get and there's an age difference r e t i r e m e n t b e n e f i t s l i k e between husband and wife, provident fund, gratuity, which mean that the wife may superannuation, etc., which live around 5-10 years after the contribute a part of the husband's lifetime. Hence, r e t i r e m e n t n e e d s o f a n considering the needs of the individual. Hence, a self- wife during these years employed person has to start become very important while investing more from the early making a retirement plan for stages of one's career to build a the family. retirement corpus. Now, you have options like Public Also, housewives need to take Pr o v i d e n t Fu n d ( P P F ) & active involvement in the National Pension System finances and the investments (NPS), which can be opted in made for the family. This will addition to other investment help them to handle these options like mutual funds and confidently, post the husband's e q u i t y f o r b u i l d i n g t h e lifetime. This becomes very

ICICIdirect Money Manager 27 August 2019 Tête-à-tête important if there is any investment amount and unforeseen event in the family exemption of tax on the at a much earlier time than lumpsum withdrawal amount expected. During such times, of 60% of the corpus at with the available corpus in retirement. hand, housewives have to make a proper plan for the day- The earlier one starts for to-day needs, child's higher investing towards retirement, education and marriage goals t h e b e t t e r i t i s , a s and her retirement. This is to compounding works better in ensure the funds are invested the long run. I would suggest into appropriate avenues to that from the first month of fund these needs. one's career, one should start investing, even if it's as small Q. What are the best retirement an amount as Rs.1000 per products one could purchase month. The amount can be during an accumulation phase? increased every year gradually, as and when the income A. Equity mutual funds are one increases. There will be a huge of the most sought after difference between the corpus investments for accumulating accumulated by a person t h e r e t i r e m e n t c o r p u s , starting this early and a person specifically if there is more than 15-20 years for starting after say 8-10 years. retirement. These investments Q. When an individual gets his work well in the long run and retirement benefits such as one can start investing even gratuity, superannuation, PF, etc. with a very small amount what should be his investment t h r o u g h S y s t e m a t i c style? Which avenues could he Investment Plan (SIP). National consider to invest his money? Pension System (NPS) is also becoming an increasingly A. When a salaried person popular investment avenue to retires, he/she gets retirement build the retirement corpus, benefits like provident fund given the additional tax a c c u m u l a t i o n , g r a t u i t y, benefits provided on the superannuation accumulation

ICICIdirect Money Manager 28 August 2019 Tête-à-tête

(partly, and remaining in the investments to meet the day to form of regular pension), day needs. encashment of privileged leaves, etc. All these benefits Q. With current increase in put together make a significant medical expenses, how should one amount, if one has worked for protect themselves from post 25-30 years without breaking retirement expenses? any of the benefits in between. A. Medical expenses have The amount received from been inflating at a much higher these benefits plus the amount pace than other expenses. accumulated from one's A n d , p o s t r e t i r e m e n t , a investments are to be used to significant portion of expenses fund all the retirement needs. can go towards medical Some of the retirement needs expenses. Hence, it's every c o u l d b e i m m e d i a t e , important to plan well in lumpsum, regular over a advance for the same. period of time, etc. Hence, depending on the time frame Salaried persons generally of these needs, one has to have an employer-provided invest into the appropriate group medical insurance cover i n v e s t m e n t a v e n u e s . till their employment, which Generally, the corpus available covers the hospitalization at r etir em ent has to be expenses. However, this cover invested in an allocation of ceases once they retire. If they Equity – 30-40% and Debt – 60- would want to take a fresh 70%; the debt portion would medical cover post retirement, help in funding the immediate the premiums would be on a & short-term needs, while the higher side, given their age; equity portion would help in also, if there's any health issue accumulating the corpus like diabetes and blood further to fund the long-term pressure, which are quite needs. The allocation also common these days, then the depends on the corpus and the normal medical insurance amount required from the cover may be declined or they

ICICIdirect Money Manager 29 August 2019 Tête-à-tête may have to shell out higher medical expenses could be on premium. the rise and there could always b e s o m e p o r t i o n o f t h e Hence, it's important to take a expenses not covered under separate medical insurance i n s u r a n c e , e v e n d u r i n g cover for you and your family, hospitalization. To ensure you over and above the employer- have enough funds to fund all provided group cover, by your these expenses, it's a good mid-30's itself, when you are fit idea to build a specific medical and healthy. This can be expenses fund, say around 8 to renewed every year till your 10 lakh (in present value), by lifetime and hence, can be the time you retire. quite useful in your retired life, t o f u n d a n y m a j o r Q. Is it the right thing to utilize the hospitalization expenses. For retirement savings in paying off s e l f - e m p l o y e d p e r s o n s your debts or there is an alternate though, a medical cover has to option for payoff? be taken much earlier, given that they are not covered in any A. Generally, by the time you group medical cover. retire, it's better to be debt-free, so that you do not have the The cover amount has to be tension of paying the EMIs, as higher, say around 20-25 lakh, you are dependent only on as the medical costs have shot income from your investments up and would keep increasing and may be some rental and further. One may consider a pension income. Hence, if you basic cover of around 5-7 lakh have any loan outstanding at and take a top-up cover for the the time of your retirement, it's remaining amount, which can good to pre-close the same help in reducing the overall with any of the investments premium amount being paid. a c c u m u l a t e d f o r y o u r retirement or your retirement Medical insurance generally benefits. covers only hospitalization expenses. However, when you However, if the loan amount is become old, your day-to-day high, it's important to plan well

ICICIdirect Money Manager 30 August 2019 Tête-à-tête in advance and keep making like an education loan, which part prepayments every year, can be repaid by the children. so that you can pre-close the loan before you retire and do However, if you happen to face not utilize any of the a shortfall in the accumulation investments accumulated for of retirement corpus, you may your retirement or your not have a great alternative, retirement benefits. g i v e n t h e d e c r e a s i n g dependency on your children Q. In a choice of investment, which to fund your retirement needs. goal would you prioritize first You cannot take any loans w h e t h e r c h i l d r e n ' s h i g h e r either to bridge the shortfall. education goal or retirement goal? Reverse mortgage can be of If we choose retirement goal then help, but it's still at a nascent how would one accomplish the stage and the property might other goal in that duration? be sold off at the end of your lifetime to pay it off, if your A. When it boils down to a heirs don't pay it off. choice between children's higher education goal and Q. How should one decide the retirement goal, generally we percentage of withdrawal post tend to give higher importance retirement as the remaining will be to the former, as we are required for future expenses? emotionally connected to our children. However, when it A. If accumulating the required comes to financial planning, it's corpus by the time you retire is better to plan rationally important, withdrawing from i n s t e a d . I n m y o p i n i o n , the corpus and spending retirement goal should take t o w a r d s y o u r n e e d s higher priority compared to appropriately, without going children's higher education overboard, is more important, goal. If you happen to face a a s a n y o v e r s h o o t i n shortfall in the accumulation of withdrawals can lead to the the corpus required for your corpus getting exhausted children's education goal, you before the end of your still have an alternative option expected lifetime. This

ICICIdirect Money Manager 31 August 2019 Tête-à-tête becomes a huge concern but at that time, the medical then.This is where Safe expenses could be higher. Withdrawal Rate concept There could be some one-time c o m e s i n , w h i c h i s t h e expenses too coming in percentage of amount that can between. b e w i t h d r a w n f r o m t h e retirement corpus every year. All this mean that it's important A study made in US in 1994 to foresee and project your says 4% is a safe withdrawal retired life's cashflows and rate to ensure the corpus lasts then decide on the withdrawal f o r 3 0 y e a r s . H o w e v e r, rate based on the needs, practically, the expenses might corpus available and the not have a uniform pattern avenues where the money is every year. In the initial years of being invested into. This is retirement, the travel & where a financial planner can vacations could be higher, be of great help and plan it for compared to the last stages; you.

ICICIdirect Money Manager 32 August 2019 ASK OUR PLANNER

Do I need to rearrange my asset allocation?

Q. What is the impact on senior invest at least 80% of their citizens asset allocation as the corpus in the highest-rated maximum funds are parked in debt corporate bonds – rated AAA oriented mutual funds? Suggest and above. Another option is what should be done. to invest in 'Banking & PSU' -Kunal Apte debt funds, which invest at least 80% of the corpus in a A Recently a series of debt mix of bonds or debentures oriented mutual funds have issued by banking firms and witnessed a fall in their NAVs public sector enterprises due to few NBFCs which which boast highest credit missed their principal and / or rating. However both these i n t e r e s t p a y m e n t s o n categories can suffer from outstanding bonds. It is interest rate risks if aggregate important that investors set maturity of portfolio is on the their expectations right w.r.t higher side. If investors want to their investments in debt minimize interest rate risks, mutual funds. Debt mutual they can consider investing in funds offer superior taxation lower duration schemes – benefits when investment Overnight Funds, Liquid & horizon is more than 3 years Ultra-Short Duration funds. As (investors get indexation their portfolio is mostly benefit while calculating long composed of instruments term capital gains) compared which are to mature within a to traditional bank or post year, NAV fluctuations due to office deposits. Thus investors interest rate changes is very c a n s e l e c t s u i t a b l e s u b low or negligible. category of debt oriented mutual funds according to If investors do not want to their needs and requirement. expose their investments to any form of volatility, they can If investors want to minimize invest their funds in traditional c r e d i t r i s k s , t h e r e a r e bank or post office deposits. 'Corporate Bond' funds which Returns are also guaranteed

ICICIdirect Money Manager 33 August 2019 ASK OUR PLANNER for the term of the investment, mutual funds can be w h i c h m a k e s t h e s e considered by the investor, in instruments better choice for addition to traditional c o n s e r v a t i v e i n v e s t o r s . instruments, to achieve the According to new budget dual objective of portfolio provisions, interest income stability and growth. upto Rs. 50,000 from bank & post office are exempt for Q. Tax Liability on money received senior citizens. Other options on Surrender of LifeStage Pension can be Senior Citizen Savings Plan from ICICI. I have taken Scheme or Pradhan Mantri LifeStage Pension Plan from ICICI Vaya Vandana pension plan in Sept'2009 having a death benefit which provide higher pre-tax with Zero Sum Assured which returns to investors. The make it a pure Investment Plan. I disadvantage is that the have surrendered policy on interest payouts or pension April'2018 and received an amount income from such traditional of Rs.11.14/- Lakh after paying a premium Rs.7.2/- lakh upto 2016 @ instruments is taxable in the Rs.98000/- per annum. I have not hands of the investor as per tax claimed IT rebate on the premium slab. paid between 2009 and 2016. Please Clarify, my Tax liability will The decision to change your be on Entire amount Rs.11.14 Lakh asset allocation should be received or Rs.3.94/- i.e., Diff of the g u i d e d b a s e d o n y o u r amount received and premium paid. withdrawal needs and whether (11.14 - 7.2=3.94) considering it as your available corpus is capital gain as premium paid s u f f i c i e n t t o m e e t y o u r Rs.7.2/-lakh is taxed money. Your recurring expenses in line with clarification will help immensely in rising inflation and any one- filing IT return 2018-19 which is due time requirements in the on 31st July'2019. future. As someone who is in need of stability and longevity - Fahim Ashraf of accumulated corpus, debt should be a major part in your A The Income Tax Act only portfolio and the various sub- says that if any amount categories of debt oriented available in a pension policy, in

ICICIdirect Money Manager 34 August 2019 ASK OUR PLANNER respect of which deduction has meet bank's underwriting been allowed, together with requirements. Banks generally interest or bonus, is received assess individual's repaying on account of surrender, then capacity by asking for income such amount is added to your & i n v e s t m e n t / a s s e t income and taxed as per your documents. If need be, lenders income slab. It does not may also ask for guarantor's explicitly say how it is taxed, if details who will have to deduction was not claimed. assume the loan liability in case Our interpretation is that if b o r r o w e r d e f a u l t s o n deduction was not claimed for payments. While car loan is the premiums paid, then the secured loan (the purchased accumulated gains (Surrender vehicle acts as collateral and Value less Total Premiums can be sold off by the lender to Paid) will be added to your make good of loan amount in income and taxed as per the case of default), personal loans tax slab. If that's the case, then are unsecured. Hence, the only the accumulated gains terms will be a bit stricter in can be shown as 'Income from case of unsecured loans i.e. Other Sources' in the return. banks normally charge higher However, we suggest you to rate of interest on personal take opinion from a Chartered loans; banks also ask for a Accountant and then file your guarantor if required. return. Taking too many loans does Q. Currently I am paying off my not negatively affect your education loan, while I require a car credit score. In fact, if you keep loan as well as a personal loan. Do making timely payments of banks provide dual loans? Which loan EMIs, your credit score loan should be paid-off first? In this gradually improves. However situation, does my credit score be when you apply for new credit impacted? (credit cards, loans etc), the lender runs an inquiry on your - Nikhil Reddy CIBIL report to check your credit history. Too many of A Banks are willing to lend to such inquiries within a short an individual so long as they span of time negatively

ICICIdirect Money Manager 35 August 2019 ASK OUR PLANNER impacts your credit score as Dec 2019. On maturity of the policy, this portrays credit hungry he wants to opt to buy another behavior. This negative impact annuity to the extent of two thirds is small and can be improved value of the maturity amount in her gradually through timely name and take cash to the extent of repayments of loan EMIs. One one third of the maturity proceeds other point to note is that as per one of the policy terms and acting as a guarantor for deposit the same in his savings another person's loan will not bank account (joint account). affect your credit score but if the person for whom you have - Raman given guarantee defaults or delays payments, then as a A On maturity of a pension guarantor your credit score will policy, a maximum of 1/3rd of be hurt. the maturity amount can be withdrawn as lumpsum, which Q. My friend Mr. A (Date of Birth: 1- is exempt from tax. The 4-1935) has taken a lifestage policy r e m a i n i n g 2 / 3 r d w i l l b e from ICICI Pru on Dec 1, 2009 for 10 converted to annuity and she years IN THE NAME OF his WIFE will start receiving pension as (Date of birth: 20th May 1944). His per the frequency and choice wife does not have any income on opted by her. The amount her own any time. He has paid all received as pension would be the 10 yearly instalments of 50000 considered as her income and rupees as subscription. In 2014 and added to her income, if any, 2016 he had availed tax exemption and would be taxable as per under 80CCC to the extent of 20000 her income slab. For the each. (Total 40000 rupees). The amount specified by you, the present value of the investment is pension amount will be less around 7.6 lakhs. As per the policy than the minimum amount terms, on maturity, the one third eligible for income tax and maturity amount will be paid by hence, it will not be taxable, if cheque in his wife's name (free of she does not have any other tax) and the cheque for two thirds income. maturity amount will be directly Please ensure to approach the utilized for buying the new annuity insurer atleast a week before if opted so. The policy will mature in maturity and inform how much

ICICIdirect Money Manager 36 August 2019 ASK OUR PLANNER she would like to withdraw as Our interpretation is that if lumpusm; if not, the entire deduction was not claimed for maturity amount may be the premiums paid, then the converted to annuity once the accumulated gains (Surrender policy matures. Value less Total Premiums Paid) will be added to your Q. Tax on income from ICICI Pru income and taxed as per the pension plan Commencement tax slab. However, we suggest 2 4 . 0 1 2 0 1 0 V e s t i n g d a t e y o u to hire a Chartered 24.1.2020 I want to surrender and Accountant to understand the use the entire amount. Fund value intricacies of the section and as on the date 1196000 Premium how it would be taxed. paid 600000 What is the taxable amount? Pl suggest. Q. I am a 30 year old planning to - Y. Chalapathi rao save for retirement. Should I select a pension plan from an insurance A If you surrender a pension company? Please advice the policy before its maturity, then benefits. the entire surrender proceeds shall be added to your income - Tushar Khanna and taxed as per the income slab, if you have claimed any A Life insurance companies deduction on the premiums offer two types of pension paid for the policy. The Income policies – traditional pension Tax Act only says that if any policies and unit linked amount available in a pension pension policies. Traditional policy, in respect of which pension policies only provide deduction has been allowed, an option to invest in Fixed together with interest or Income instruments like bonus, is received on account government securities or/and of surrender, then such corporate bonds. By nature of amount is added to your underlying investments, the income and taxed as per your accumulated corpus may income slab. It does not prove to be inadequate for explicitly say how it is taxed, if meeting post-retirement needs deduction was not claimed. of the investor. Unit Linked Pension policies, however,

ICICIdirect Money Manager 37 August 2019 ASK OUR PLANNER provide investor an option to limitation here is that the invest in both 'Equity' & 'Debt' pension income from such asset classes in various annuity is fully taxable. Also as proportions, which can help the pension amount is fixed, it create a more sustainable may not be able to meet the corpus. Pre-mature withdrawal inflated adjusted expenses of from traditional plans result in the pensioner. a very low surrender value c o m p a r e d t o t h e t o t a l Considering above limitations, premiums paid till date, while an investor with a time horizon in case of Unit Linked Pension of about 20-25 years till plans, the fund value at the retirement, is better off time of surrender, is payable. investing through mutual funds. With the available time I n b o t h t h e s c e n a r i o s , in hand, you can consider p r e m a t u r e w i t h d r a w a l / raking higher risk and opt to surrender before maturity date invest 80% of your investible attracts tax liability on the surplus in Equity oriented received amount. In case you mutual funds (using Large Cap had taken tax deduction / Multi Cap / Mid Cap funds) benefits for premiums paid and 20% of investible surplus under section 80C / 80CCC, in Debt oriented mutual funds t h e n t h e e n t i r e a m o u n t (using Corporate Bond / received is taxable. If you had Medium & Long Duration not taken any tax deduction funds) every year. You can benefits, then the difference anytime withdraw from this amount (total amount received portfolio as there are no less total premiums paid) is liquidity restrictions (however taxable. This amount is added onto investor's income and there are exit load of certain % taxed at the marginal rate of of the investment, if you tax. withdraw before a given U p o n m a t u r i t y, 1 / 3 r d o f period, generally 12 months). a c c u m u l a t e d c o r p u s i s Following a specific asset received as lump-sum while allocation and periodic re- the remaining portion has to be balancing will help your compulsorily annuitized. The portfolio reduce the risk level.

ICICIdirect Money Manager 38 August 2019 ASK OUR PLANNER

Alternatively, you can also percentage of the corpus can consider investing in NPS for be withdrawn that too based your retirement. Investments on occurrence of certain pre- upto Rs. 1.50 lakh is eligible for defined events. tax deduction under section 80C and another additional You could also consider deduction of Rs. 50,000 under investing into a combination of 80CCD(1b). Your funds are mutual funds and NPS for invested among different asset accumulating your retirement class: Equity, Government corpus. Bonds & Securities, Corporate Bonds and Alternate Assets Q. The subject policy is maturing like REITs & InVITs. You have next year in June 20. What are the the option to choose the asset maturity benefits for this policy? allocation yourself or set it in What action do have I to take for auto mode: allocation to getting maturity benefits? Equity will keep on reducing as investor's age increases. The - Mangesh Joshi major limitation is NPS is a strict retirement investment A We do not have access to vehicle. Upon maturity at age your policy details. You can 60 (or company decided check the maturity benefits of retirement age), you can your policy from your policy withdraw 60% of the portfolio document. Alternatively, as lump-sum (entirely tax-free) please provide the name of the while remaining 40% of policy to help us answer your p o r t f o l i o h a s t o b e query. If the insurer is ICICI compulsorily annuitized, Prudential, then you would suffering same issues related have to register your bank to annuity as explained above. account details with them in Withdrawing before retirement advance, as per the process or age of 60 will mean only provided in their website. 20% of the withdrawal as Please visit their website and lump-sum, while remaining go to Customer Services > 80% is annuitized. In the Processes > Payout Related to meanwhile, only certain know the same. Your maturity

ICICIdirect Money Manager 39 August 2019 ASK OUR PLANNER a m o u n t w i l l b e d i r e c t l y within 15 days of your policy credited to your bank account maturity date. number registered with them

Do you also have similar queries to ask our experts? Write to us at: [email protected].

ICICIdirect Money Manager 40 August 2019 MUTUAL FUND ANALYSIS

Investing in infrastructure funds

The equity market have seen a midst of current negative sharp correction in the last investor sentiments, the month from near all-time levels structural positives in terms of at the start of July 2019. l o w e r i n t e r e s t r a t e Concerns over taxation on environment and the foreign investors, growth government's significant slowdown and global market infrastructure spending volatility surrounding the trade guidance augur well for war between the US and China companies operating in these have turned foreign investors sectors. Therefore, historical cautious. However, domestic underperformance, reasonable institutional investors, valuations and improved particularly mutual funds, have b u s i n e s s o u t l o o k m a k e been net buyers in the current infrastructure funds better fall indicating a value buying placed for medium to long term opportunity. investment.

The broader market reflected Infrastructure: Government's by midcaps and small caps key focus area continues to underperform and has fallen significantly from The manifesto of the ruling their highs in January 2018. p a r t y e n v i s a g e s o v e r a l l Many of the midcap and small infrastructure investment to the cap stocks offer good buying tune of ` 100 lakh crore by opportunity. 2022, implying an annual i n v e s t m e n t o f Individual companies in ` 20 lakh crore. To meet this, we i n v e s t m e n t o r i e n t e d believe the government will infrastructure segments like have to step up tendering & capital goods, power, utilities, awarding activity exponentially and industrials sector have from ` 9.6 lakh crore & ` 3.3 lakh lagged in performance in the crore, respectively, in FY19. last four to five years. In the T h i s c o u l d o f f e r h u g e

ICICIdirect Money Manager 41 August 2019 MUTUAL FUND ANALYSIS opportunities to all infra and work, it could present an allied industries and see a opportunity of ` 1.4-1.85 lakh significant rise in the order crore. book from the current level over the next three years. In terms of airport, it aims to d o u b l e t h e n u m b e r o f In terms of verticals, it plans to functional airports in the next construct 60,000 km of national five years (101 airports highways in the next five years. functional currently). As per I n o u r v i e w, t h e m a j o r media reports, the construction component of 60,000 km would of 100 new airports could entail involve Bharatmala 1.0 and investment of US$60 billion (` balance road work under NHDP 4.2 lakh crore). aggregating 34,800 km at an On the housing front, by 2022, it estimated cost of ` 5.35 lakh crore. EPC players could reap plans to ensure a pucca house good benefits from this to every family who are either opportunity. living in a kuccha house or have no access to housing. On the urban infrastructure front, it aims to cover 50 cities Being thematic in nature, with the metro network. With allocation to infrastructure 400 km of metro lines currently funds should not exceed 5-10% operational, the government of an investor's overall equity could have to add additional portfolio. Our preferred funds in ~700 km of metro line to cover this sector are Sundaram Infra 50 cities, which could entail A d v a n t a g e F u n d , Ta t a Infrastructure Fund and UTI investment of ` 2.8-3.5 lakh crore. Assuming 50% as civil Infrasturcture Fund.

ICICIdirect Money Manager 42 August 2019 MUTUAL FUND ANALYSIS

Sundaram Infrastructure Advantage Fund

THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE Fund Objective: SEEKING To generate long-term returns • Long term capital wealth creation solution • An equity fund that predominantly invests in equity by investing predominantly in and equity related securities of companies engaged in banking and financial services. e q u i t y / e q u i t y - r e l a t e d Performance: instruments of companies engaged either directly or The fund is among the oldest indirectly in infrastructure - and funds in the infrastructure infrastructure related activities sector space. The funds recent or expected to benefit from the performance has lagged its growth and development of benchmark as it shied away infrastructure. from few of the expensive

Key Information stocks which continued to rally NAV as on July 31, 2019 (`) 30.4 Inception Date September 29, 2005 in last few months. However Fund Manager S. Krishnakumar Minimum Investment (`) Lumpsum 100 SIP 100 we believe that the fund is well Expense Ratio (%) 2.56 Exit Load 1% on or before 12M Benchmark S&P BSE 100 - TRI positioned to outperform the Last declared Quarterly AAUM(` cr) 613 benchmark going forward. As Product Label: of July 31st, it has generated CAGR of 4.8% and 7.4% over three years and five years vs. 9.6% and 9% returns by benchmark, respectively.

Performance vs. Benchmark 15 9.6 9 8.4

10 7.4 5 4.8 N.A. 0 -5 2.3 -10 - CAGR Returns % 6.5 1 - Year 3 Year 5 Year Since Inception

Fund Benchmark

ICICIdirect Money Manager 43 August 2019 MUTUAL FUND ANALYSIS

Portfolio: indicating a play on capex The portfolio comprises 41 cycle revival. However, the stocks. Currently, the portfolio fund also has stocks catering to is tilted towards large caps the retail segment. The fund (~64%) while midcap and has handpicked public sector small cap stocks make up the banks (non PCA) with relatively rest. The fund has significant better capital adequacy poised exposure to large private to benefit from a revival in the corporate centric banks, credit cycle.

Top 10 Holdings Asset Type % Larsen & Toubro Ltd. Domestic Equities 5.2 ICICI Bank Ltd. Domestic Equities 5.2 The Ramco Cements Ltd. Domestic Equities 5.1 Timken India Ltd. Domestic Equities 4.3 Kalpataru Power Transmission Ltd. Domestic Equities 4.1 Grindwell Norton Ltd. Domestic Equities 4.0 Shree Cement Ltd. Domestic Equities 3.4 Praj Industries Ltd. Domestic Equities 3.4 Honeywell Automation India Ltd. Domestic Equities 3.4 HDFC Bank Ltd. Domestic Equities 3.3

Top 10 Sectors Asset Type % Engineering - Construction Domestic Equities 13.3 Cement & Construction Materials Domestic Equities 13.2 Engineering - Industrial Equipments Domestic Equities 12.8 Bank - Private Domestic Equities 8.4 Bearings Domestic Equities 6.0 Construction - Real Estate Domestic Equities 4.9 Transmission Towers / Equipments Domestic Equities 4.1 Abrasives Domestic Equities 4.0 Consumer Durables - Electronics Domestic Equities 3.4 Refineries Domestic Equities 2.9

Whats out % GAIL (India) Ltd. 1

ICICIdirect Money Manager 44 August 2019 MUTUAL FUND ANALYSIS

Our View: mediocre. With a good mix of The fund's strong performance stocks that are a play on since inception and a long corporate lending and private history are comforting factors lending, we feel investors can even though the performance consider the fund from a three- in recent times has been year perspective.

You can view performance of other schemes being managed by the fund manager of this scheme on the following link: https://www.sundarammutual.com/uploaddir/consolidated_fa ctsheet/Consolidated_Factsheet_7_2019_230819_170329.pdf

Data as on July 31, 2019; Portfolio details as on Jun- 2019 Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 45 August 2019 MUTUAL FUND ANALYSIS

Tata Infrastructure Fund

Fund Objective: THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING • Long term capital wealth creation solution • An equity fund that predominantly invests in equity and equity The scheme aims to provide related securities of companies engaged in banking and financial income distribution and services. medium to long term capital Performance g a i n s b y i n v e s t i n g predominantly in equity or The fund has consistently been equity related instruments of among the top performing the companies in the funds in the sector over shorter infrastructure sector. as well as longer timeframes. It Key Information NAV as on July 31, 2019 (`) 53.6 Inception Date December 31, 2004 has delivered 4.9% CAGR and Fund Manager Rupesh Patel Minimum Investment (`) Lumpsum 5000 8 . 6 % C A G R r e t u r n s , SIP 150 Expense Ratio (%) 2.55 Exit Load 0.25% on or before 3M respectively, for three and five- Benchmark S&P BSE India Infrastructure Index - TRI Last declared Quarterly AAUM(` cr) 571 year time frames as of July 31st. Product Label: The historical performance the benchmark is not available as it's a newly constructed benchmark.

Investors understand that their principal will be at high risk

Performance vs. Benchmark

15 12.2

10 8.6 4.9 5 0 CAGR Returns % -5 1.7

1 Y- ear 3 Year 5 Year Since Inception Fund Benchmark

ICICIdirect Money Manager 46 August 2019 MUTUAL FUND ANALYSIS

Portfolio 35 stocks in the portfolio, The fund's portfolio has making it less concentrated exposure to a diverse mix of than some other funds and businesses within the banking with a larger tail than most and financial services space – peers. The fund has lower banks (private as well public), exposure to its top picks than NBFCs as well as insurance. Its some other peers. It has ~60% focus on corporate facing of its portfolio invested in large private banks is accentuated cap stocks with the rest by recent additions to the invested in midcaps and small portfolio. Currently, there are caps.

Top 10 Holdings Asset Type % Larsen & Toubro Ltd. Domestic Equities 11.7 Astral Poly Technik Ltd. Domestic Equities 6.3 KNR Construction Ltd. Domestic Equities 5.4 ICICI Bank Ltd. Domestic Equities 5.4 Shree Cement Ltd. Domestic Equities 5.2 Power Grid Corporation Of India Ltd. Domestic Equities 4.5 Sadbhav Engineering Ltd. Domestic Equities 4.2 Voltas Ltd. Domestic Equities 3.9 AIA Engineering Ltd. Domestic Equities 3.3 NCC Ltd. Domestic Equities 3.0

Top 10 Sectors Asset Type % Engineering - Construction Domestic Equities 25.7 Power Generation/Distribution Domestic Equities 8.5 Cement & Construction Materials Domestic Equities 8.0 Plastic Products Domestic Equities 6.3 Bank - Private Domestic Equities 5.4 Engineering - Industrial Equipments Domestic Equities 5.1 Bearings Domestic Equities 4.1 Air Conditioners Domestic Equities 3.9 Construction - Real Estate Domestic Equities 2.9 Port Domestic Equities 2.8

Whats In % Tata Steel Ltd. 2.1

ICICIdirect Money Manager 47 August 2019 MUTUAL FUND ANALYSIS

Our View: diversification. Investors can The portfolio is well consider the fund from a three- constructed in terms of year perspective.

You can view performance of other schemes being managed by the fund manager of this scheme on the following link: http://www.tatamutualfund.com/our- funds/equity/sectoral/tata-infrastructure-fund

Data as on July 31, 2019; Portfolio details as on Jun- 2019 Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 48 August 2019 MUTUAL FUND ANALYSIS

UTI Infrastructure Fund

Fund Objective: Product Label: The investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in Investors understand that their principal will be at high risk equity and equity related THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING securities of companies • Long term capital wealth creation solution • An equity fund that predominantly invests in equity and equity engaged either directly or related securities of companies engaged in banking and financial services. indirectly in the infrastructure Performance areas of the Indian economy. The fund has consistently been However, there can be no among the top performing assurance or guarantee that funds in the sector over shorter the investment objective of the as well as longer timeframes. It has delivered 5% CAGR and scheme would be achieved. 6 . 3 % C A G R r e t u r n s , respectively, for three and five- Key Information year time frames vs. 3.2% NAV as on July 31, 2019 (`) 26.6 Inception Date April 7, 2004 C A G R a n d 1 . 1 % C A G R Fund Manager Sanjay Ramdas Dongre Minimum Investment (`) Lumpsum 5000 performance of the benchmark SIP 500 Expense Ratio (%) 2.26 Exit Load 1% on or before 1Y, Nil after 1Y over these time frames (as of Benchmark NIFTY INFRA - TRI st Last declared Quarterly AAUM(` cr) 1379 July 31 ).

Performance vs. Benchmark

15 1.8 1 7.82

10 6.3 5 5 3.2 1.1 0.1 0 -5 3.8 - 1 Year 3 Year 5 Year Since

CAGR Returns % Inception Fund Benchmark

ICICIdirect Money Manager 49 August 2019 MUTUAL FUND ANALYSIS

Portfolio 42 stocks in the portfolio, The fund's portfolio has making it less concentrated exposure to a diverse mix of than some other funds and businesses within the banking with a larger tail than most and financial services space – peers. The fund has lower banks (private as well public), exposure to its top picks than NBFCs as well as insurance. Its some other peers. It has ~60% focus on corporate facing of its portfolio invested in large private banks is accentuated cap stocks with the rest by recent additions to the invested in midcaps and small portfolio. Currently, there are caps.

Top 10 Holdings Asset Type % Larsen & Toubro Ltd. Domestic Equities 8.2 Shree Cement Ltd. Domestic Equities 7.3 State Bank Of India Domestic Equities 6.4 Axis Bank Ltd. Domestic Equities 6.4 ICICI Bank Ltd. Domestic Equities 5.7 Bharti Airtel Ltd. Domestic Equities 3.5 Ultratech Cement Ltd. Domestic Equities 3.3 Voltas Ltd. Domestic Equities 3.2 Kalpataru Power Transmission Ltd. Domestic Equities 3.1 Blue Star Ltd. Domestic Equities 3.1

Top 10 Sectors Asset Type % Engineering - Construction Domestic Equities 19.8 Bank - Private Domestic Equities 13.6 Cement & Construction Materials Domestic Equities 12.5 Bank - Public Domestic Equities 6.4 Air Conditioners Domestic Equities 6.3 Industrial Gases & Fuels Domestic Equities 5.8 Power Generation/Distribution Domestic Equities 4.0 Engineering - Industrial Equipments Domestic Equities 3.9 Logistics Domestic Equities 3.9 Telecommunication - Service Provider Domestic Equities 3.5

ICICIdirect Money Manager 50 August 2019 MUTUAL FUND ANALYSIS

Our View: diversification. Investors can The portfolio is well consider the fund from a three- constructed in terms of year perspective.

You can view performance of other schemes being managed by the fund manager of this scheme on the following link: https://docs.utimf.com/v1/AUTH_5b9dd00b-8132-4a21-a800- 711111810cee/ UTIContainer/UTI% 20Fund %20Watch %20August%20201920190807-213004.pdf

Data as on July 31, 2019; Portfolio details as on Jun- 2019 Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 51 August 2019 MUTUAL FUND ANALYSIS

Performance of other schemes managed by these fund managers:

1. Sundaram Infrastructure Advantage Fund

Performance of other schemes managed by the fund manager - S. Krishnakumar

Fund Name 1 Year 3 Years 5 Years Top 3 Performing Schemes Sundaram World Brand Fund-Sr II-Reg(G) 8.68 11.90 -- MSCI ACWI Industrials ------Sundaram World Brand Fund-Sr III-Reg(G) 8.63 11.89 -- MSCI ACWI Industrials ------Sundaram Fin Serv Opp Fund(G) 2.77 10.35 11.78 Nifty Financial Services - TRI 8.52 17.88 15.79 Bottom 3 Performing Schemes Sundaram Emerging Small Cap-Sr-V-Reg(G) ------S&P BSE 250 Small Cap -23.76 -- -- Sundaram Emerging Small Cap-Sr-VI-Reg(G) ------S&P BSE 250 Small Cap -23.76 -- -- Sundaram Emerging Small Cap-Sr-VII-Reg(G) ------S&P BSE 250 Small Cap -23.76 -- --

Note : The schemes may or may not have been managed by the same Fund Manager since its inception Note : The concerned Fund Manager manages 40 other schemes of the concerned Mutual Fund

Performance of other schemes managed by the fund manager - S. Bharath Fund Name 1 Year 3 Years 5 Years Top 3 Performing Schemes Sundaram Value Fund-II-Reg(G) -6.95 8.28 -- S&P BSE 500 -7.58 6.88 7.84 Sundaram Value Fund-III-Reg(G) -7.06 8.41 -- S&P BSE 500 -7.58 6.88 7.84 Sundaram LT Tax Adv Fund-Sr II-Reg(G) -7.82 6.63 -- S&P BSE 500 -7.58 6.88 7.84 Bottom 3 Performing Schemes Sundaram Smart NIFTY 100 Eq Weight Fund-Reg(G) -12.04 -- -- NIFTY 100 Equal Weight Index - TRI -11.72 3.80 7.00 Sundaram Value Fund-VII-Reg(G) -12.90 -- -- S&P BSE 500 -7.58 6.88 7.84 Sundaram Equity Savings Fund-Reg(G) ------NIFTY 50 Equity Savings Index ------

Note : The schemes may or may not have been managed by the same Fund Manager since its inception Note : The concerned Fund Manager manages 12 other schemes of the concerned Mutual Fund

ICICIdirect Money Manager 52 August 2019 MUTUAL FUND ANALYSIS

2. Tata Infrastructure Fund

Performance of other schemes managed by the fund manager - Rupesh Patel

Fund Name 1 Year 3 Years 5 Years Top 3 Performing Schemes Tata Large Cap Fund(G) 0.03 7.36 8.81 S&P BSE SENSEX - TRI 0.93 11.49 9.09 Tata Infrastructure Fund-Reg(G) -1.74 4.85 8.60 S&P BSE India Infrastructure Index - TRI ------Tata India Tax Savings Fund-Reg(DP) -2.14 8.31 12.56 S&P BSE SENSEX - TRI 0.93 11.49 9.09 Bottom 3 Performing Schemes Tata Mid Cap Growth Fund(G) -3.55 5.88 11.17 Nifty Midcap 100 - TRI -14.85 3.68 9.18 Tata Ethical Fund(G) -9.41 3.08 7.18 Nifty 500 Shariah - TRI -7.83 7.81 9.61

Note : The schemes may or may not have been managed by the same Fund Manager since its inception Note : The concerned Fund Manager manages 4 other schemes of the concerned Mutual Fund

Performance of other schemes managed by the fund manager - Abhinav Sharma Fund Name 1 Year 3 Years 5 Years Top 3 Performing Schemes Tata Infrastructure Fund-Reg(G) -1.74 4.85 8.60 S&P BSE India Infrastructure Index - TRI ------

Note : The schemes may or may not have been managed by the same Fund Manager since its inception Note : The concerned Fund Manager manages 1 other schemes of the concerned Mutual Fund

ICICIdirect Money Manager 53 August 2019 MUTUAL FUND ANALYSIS

3. UTI Infrastructure Fund

Performance of other schemes managed by the fund manager - Sanjay Ramdas Dongre

Fund Name 1 Year 3 Years 5 Years Top 3 Performing Schemes UTI Infrastructure Fund-Reg(D) -3.75 5.05 6.34 NIFTY INFRA - TRI 0.10 3.21 1.10 UTI MEPUS -6.59 7.14 8.81 S&P BSE 100 - TRI -2.29 9.58 8.96

Note : The schemes may or may not have been managed by the same Fund Manager since its inception Note : The concerned Fund Manager manages 1 other schemes of the concerned Mutual Fund

Data as on July 31, 2019; Portfolio details as on Jun- 2019 Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 54 August 2019 ICICIdirect Community (iCommunity)

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Our indicative large-cap equity model portfolio is delivering an impressive return (inclusive of dividends) of 146.20% till date (as on July 31, 2019) since its inception (June 21, 2011) vis-à-vis the benchmark index (S&P BSE Sensex) return of 110.73% during the same period, an outperformance of 35.47. This validates our thesis of selecting companies with sound business fundamentals that forms the core theme of our portfolio. We have revised stocks in our midcap portfolio. It continues to outperform, delivering 234.79% (inclusive of dividends) till date (as on July 31, 2019) vis-à-vis the benchmark index (CNX Midcap) return of 105.90%, an outperformance of 128.89. Our consistent outperformance demonstrates our superior stock picking ability as markets aligned to our view of favourable risk reward, good franchisee vs. reward-at- any-risk businesses.

We have always suggested the SIP mode of investment and still find a lot of merit in it as the preferred mode of deployment given the market conditions and volatility associated since the inception of the portfolio. We highlight that the SIP return of our portfolio has consistently outperformed the indices.

Following the same pace and opportunities in the market, our latest portfolio (large caps) remains overweight on BFSI sector – HDFC Bank (10%), HDFC Limited (9%), Axis Bank (6%) Bajaj Finance (6%) and SBI (6%). Tech Mahindra Limited is the latest addition to the large-cap portfolio, given 6% weightage. Maruti Suzuki and EICHER Motors have been removed from the large-cap and diversified model portfolio. Please note that the weightage for State Bank of India and Divis Laboratories have been revised. Affirming our view on consumption demand, Dabur (5%) and Marico (4%) continue to be part of our large cap portfolio.

Brigade Enterprises given 6% weightage and Somany Ceramics given 6% weightage are the latest addition to the mid-cap portfolio. Exide Industries and Graphite India have been removed from the mid-cap and diversified model portfolio.

We remain positive on auto, IT and pharma. We remain overweight to neutral on pure play defensives (IT, FMCG) as secular earnings coupled with sector rotation could lead to consolidation in near term valuations and offer stock specific opportunities.

We continue to remain underweight on metals and oil & gas with our only pick being Gail Ltd., which has a better risk reward opportunity. Among individual names, we recommend TCS in the IT space, HDFC and HDFC Bank in the BFSI space and ITC in consumer space.

ICICIdirect Money Manager 56 August 2019 EQUITY MODEL PORTFOLIO

Name of the company Model Portfolio Largecap Midcap Diversified (%) (%) (%) Largecap Stocks Mahindra & Mahindra (M&M) 4.0 2.8 HDFC Bank 10.0 7.0 Axis Bank 6.0 4.2 HDFC Limited 9.0 6.3 Bajaj Finance 6.0 4.2 State Bank of India 8.0 5.6 Larsen & Toubro 6.0 4.2 UltraTech Cement 4.0 2.8 Dabur India 5.0 3.5 Marico 4.0 2.8 ITC 6.0 4.2 Nestle India 4.0 2.8 Tata Consultancy Services 6.0 4.2 Tech Mahindra Limited 6.0 4.2 Hindustan Zinc 6.0 4.2 GAIL Ltd. 5.0 3.5 Divis Laboratories 5.0 3.5 Total 100.0 Largecap share in diversified 70.0

ICICIdirect Money Manager 57 August 2019 EQUITY MODEL PORTFOLIO

Bharat Forge 6.0 1.8 Bajaj Finserve 8.0 2.4 Indian Bank 6.0 1.8 AIA Engineering 6.0 1.8 Kalpataru Power transmission 6.0 1.8 Ramco Cement 6.0 1.8 Kansai Nerolac 6.0 1.8 Pidilite Industries 6.0 1.8 Tata Chemicals 6.0 1.8 Bata India 6.0 1.8 Brigade Enterprises 6.0 1.8 Somany Ceramics 6.0 1.8 Firstsource Solutions 6.0 1.8 Container Corporation of India 6.0 1.8 Syngene International 8.0 2.4 Arvind Fashions 6.0 1.8 Total 100.0 Midcap share in diversified 30

TOTAL 100.0

ICICI Securities has received an Investment Banking mandate from Mahindra & Mahindra.

ICICIdirect Money Manager 58 August 2019 EQUITY MODEL PORTFOLIO

Performance so far since inception*

300

234.7949728

200 170.3703537 146.2013853 % 110.7338154 105.9024365 108.8265052 100

0 Large Cap Midcap Diversified

Portfolio Benchmark *Returns (in %) as on July 31, 2019

Large-cap Portfolio Benchmark: BSE Sensex; Mid-cap Portfolio Benchmark: CNX Midcap; Diversified Portfolio Benchmark: Combination of BSE Sensex and CNX Midcap

Value of Rs 1,00,000 invested via SIP at end of every month

16000000 14000000 12000000 9800000 9800000 9800000 10000000 8000000 | 21214754.62 6000000 15889.46 15480229.12 4000000 14672748.03 131 13015800.12 12297817.14 2000000 0 Largecap Midcap Divesified

Investment Value of Investment in Portfolio Value if invested in Benchmark

Start date of SIP: June 30, 2011; *Value as on July 31, 2019

ICICIdirect Money Manager 59 August 2019 QUIZ TIME

1. The current rate of Senior Citizen Savings Scheme (SCSS) is ______for Q2 of FY 2019-20 (July-sept). 2. What is the age criteria for reverse mortgage? 3. ______is that phase of retirement where you no longer build wealth but utilize it. 4. Returns received from which scheme is 7.6 % for Q2 of FY 2019-20 (July-sept) 5. Debt investors are not subject to taxation. State True or False. 6. Loan approved in a reverse mortgage is max ______years from the time of application.

Note: You may send in your answers at: [email protected]. The answers will be published in our next edition. The names of the earliest all correct entries will be published too. So jog your grey cells and be quick to send in your entries.

Correct answers for the July 2019 Quiz is:

1. A meter that indicates the risk involved in the fund? – Riskometer 2. Asset Management Company comes up with a New Fund Offer when there is a demand for a specific investment category. 3. You can redeem units of mutual fund at any time, if you have invested in Open-ended scheme. 4. A measure of volatility of returns on funds that tells us how much the return of a fund can deviate from its historical mean. - Standard deviation 5. There is no tax implication on Physical Gold-False 6. Which investment has restriction in withdrawal, but investors could withdraw partial amount, post 7th year of the investment? - Public Provident Fund

ICICIdirect Money Manager 60 August 2019 PRIME NUMBERS

Equity Markets Domestic Equity Indices 31-Jul-19 28-Jun-19 Change (%) CNX Nifty 11118.0 11789.0 -5.7% CNX Midcap 15921.2 17654.1 -9.8% S&P BSE Sensex 37481.1 39394.6 -4.9% S&P BSE 100 11210.8 11909.7 -5.9% S&P BSE 200 4634.7 4926.6 -5.9% S&P BSE 500 14324.1 15291.7 -6.3%

Global Equity Indices 31-Jul-19 28-Jun-19 Change (%) Dow Jones 26,864.3 26,600.0 1.0% S&P 500 2,980.4 2,941.8 1.3% Nasdaq 8,175.4 8,006.2 2.1% FTSE 7,646.8 7,425.6 3.0% DAX 12,189.0 12,398.8 -1.7% CAC 40 5,511.1 5,539.0 -0.5% Nikkei 21,521.5 21,275.9 1.2% Hang Seng 27,565.7 28,542.6 -3.4% Shanghai Composite 2,932.5 2,978.9 -1.6% Taiwan Weighted 10,823.8 10,730.8 0.9% Straits Times 3,300.8 3,372.3 -2.1%

Sectoral Indices 31-Jul-19 28-Jun-19 Change (%) S&P BSE Auto 15,472.0 17,904.2 -13.6% S&P BSE Bankex 32,689.4 34,971.9 -6.5% S&P BSE FMCG 17,555.9 19,855.4 -11.6% S&P BSE Healthcare 12,704.4 12,889.3 -1.4% S&P BSE Metals 9,685.5 11,107.2 -12.8% S&P BSE Oil & Gas 13,237.0 14,803.3 -10.6% S&P BSE Power 1,966.3 2,093.9 -6.1% S&P BSE Realty 2,067.1 2,201.4 -6.1% S&P BSE Teck 7,686.8 7,674.2 0.2%

ICICIdirect Money Manager 61 August 2019 PRIME NUMBERS

Volatility Index (VIX) 31-Jul-19 28-Jun-19 VIX 13.59 14.95

Debt Markets Government Securities Yield (in %) Jul-19 Jun-19 Change (bps) 10 year 6.37 6.88 -51 5 year 6.30 6.77 -46 3 year 6.21 6.58 -37 1 year 5.87 6.19 -32

Corporate Bond Yields (in %) Jul-19 Jun-19 Change (bps) AAA 10 year 7.91 8.35 -44 AAA 5 year 7.73 8.09 -36 AAA 3 year 7.41 7.84 -43 AAA 1 year 7.27 7.61 -35 AA 10 year 8.29 8.63 -35 AA 5 year 8.07 8.50 -43 AA 3 year 7.89 8.43 -54 AA 1 year 7.71 8.17 -47

Commercial Paper (in %) Jul-19 Jun-19 Change (bps) 12 Months 0 6 Months 0 3 Months 0 1 Month 0 Note : Data not available on Bloomberg for 3,6 and 12 month CP post 1/15/19 and for 1 month CP post 3/27/18 T-Bills Yields (in %) Jul-19 Jun-19 Change (bps) 91D TB 0 182D TB 0 364D TB 0

Note : Data not available on Bloomberg for 3,6 and 12 month Tbill post 3/28/18

ICICIdirect Money Manager 62 August 2019 PRIME NUMBERS

10-year benchmark yields (%) across countries Countries 31-Jul-19 28-Jun-19 Change in bps US 2.014 2.005 1 UK 0.611 0.833 (22) Japan (0.153) (0.158) 1 Spain 0.280 0.392 (11) Germany (0.440) (0.327) (11) France (0.186) (0.007) (18) Italy 1.542 2.102 (56) Brazil 7.229 7.452 (22) China 3.160 3.236 (8) India 6.369 6.879 (51)

MF Investment Jul-19 Jun-19 Fy19 Equity 15084 6232 87667 Debt 52799 45371 389356

FII Investment Jul-19 Jun-19 Fy19 Equity -13316 1033 9722 Debt 8418 8265 -39425

Macro-economic Indicators Consumer price index (CPI) Items Weights(%) May-19 Jun-19 Jul-19 Food&bev. 45.86 2.03 2.37 2.33 Pan,tob& intox. 2.38 3.93 4.11 4.89 Cloth & Foot 6.53 1.80 1.52 1.65 Housing 10.07 4.82 4.84 4.87 Fuel & light 6.84 2.48 2.32 -0.36 Misc. 28.31 4.62 4.45 4.65 CPI 100 3.05 3.18 3.15 Wholesale price index (WPI) Month Weights May-19 Jun-19 Jul-19 WPI 100.0 2.45 2.02 1.08 Primary Articles 22.6 6.16 6.72 5.03 Fuel & Power 13.2 0.98 -2.20 -3.64 Manufactured Goods 64.2 1.28 0.94 0.34 *WPI numbers are based on new series with 2011-12 as the base year’ ICICIdirect Money Manager 63 August 2019 PRIME NUMBERS

Index of industrial production (IIP) Sector-wise growth rate (%) Categories 30-Jun-19 31-May-19 30-Apr-19 Weight(%) Mining -3.3 2.2 -18.7 14.4 Manufacturing -4.3 6.2 -8.3 77.6 Electricity -2.2 8.6 1.7 8.0 Overall -3.9 5.9 -8.8 100.0 *IIP numbers are based on new series with 2011-12 as the base year’ Currencies and Commodities Currencies 31-Jul-19 28-Jun-19 Change (%) Status USDINR 68.8 69.0 -0.3% Appreciated EURINR 76.7 78.5 -2.4% Appreciated GBPINR 83.7 87.6 -4.4% Appreciated AUDINR 47.4 48.3 -1.9% Appreciated CHFINR 69.5 70.8 -1.8% Appreciated JPYINR 0.6 0.6 -1.2% Appreciated CNYINR 10.0 10.1 -0.5% Appreciated Commodities 31-Jul-19 28-Jun-19 Change (%) Crude ($/barrel) 65.2 66.6 -2.1% Gold ($/ounce) 1,413.8 1,409.5 0.3% Mutual Funds: Category Average Returns Equity Funds Returns (in %) Multicap Midcap Large Cap Small cap ELSS 6 months 0.43 -2.34 3.02 -5.22 -0.14 1 year -6.83 -11.78 -3.04 -17.06 -8.07 3 year 6.62 3.77 7.34 2.78 6.94 5 year 9.16 9.96 8.83 9.75 9.56 Returns as on July 31, 2019

Debt Funds Returns (in %) Debt Funds Returns (in %) Liquid Debt ST Ultra ST Debt LT 6 months 6.74 3.31 6.67 24.34 1 year 6.76 5.18 6.05 19.87 3 year 6.78 5.95 6.52 9.08

Returns as on July 31, 2019

Sources for above data: Bloomberg, Reuters, CRISIL, MOSPI, ICICIdirect.com Research

ICICIdirect Money Manager 64 August 2019

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