Sharekhan Top Mutual Fund Picks May 2015

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com
May 19, 2015
Sharekhans top equity mutual fund picks

Index
Top rated equity funds >> Large-cap funds
>> Mid-cap funds
>> Multi-cap funds
>> Tax-saving funds
>> Thematic funds
>> Balanced funds
Fund focus
>> Franklin Build India Fund
Fund ranking procedure
For Private Circulation only

REGISTRATION DETAILS Regd Add: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway
Station, Kanjurmarg (East), Mumbai 400042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos. BSE - INB/INF011073351 ; BSE- CD ;
NSE- INB/INF231073330; CD-INE231073330 ; MCX Stock Exchange - INB/INF261073333 ; CD-INE261073330 ; DP - NSDL-IN-DP-NSDL-233-2003 ; CDSL-IN-DP
-CDSL-271-2004 ; PMS-INP000000662 ; Mutual Fund-ARN 20669 ; Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080 ; (MCX/TCM/
CORP/0425) ; NCDEX-00132 ; (NCDEX/TCM/CORP/0142) ; NCDEX SPOT-NCDEXSPOT/116/CO/11/20626 ; For any complaints email at igc@sharekhan.com;
Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and Dos & Donts by MCX & NCDEX and the T & C on
www.sharekhan.com before investing.
Mutual Funds
Mutual Gains
Top rated equity mutual funds

Data as on May 12, 2015
Scheme name
Star
NAV
6 mths
Annually compounded returns (%)
rating
(Rs)
returns
%
1 yr
3 yrs
5 yrs
Since
inception
27.2
157.1
23.0
47.7
165.5
4.6
1.3
0.8
1.8
1.8
37.3
28.8
35.9
30.8
29.5
27.7
26.2
25.1
22.2
21.9
14.5
14.3
14.8
12.6
12.0
11.5
24.2
11.3
12.6
23.8
26,877.5
-4.0
14.1
18.1
9.3
16.6
29.6
28.3
75.6
65.7
638.6
18.9
6.8
3.7
6.7
7.7
83.6
56.7
61.1
56.3
52.8
42.3
37.2
36.7
35.4
34.7
23.3
20.4
17.5
20.4
21.0
24.0
21.0
33.6
21.4
10,274.1
1.4
36.8
20.0
8.2
22.3
28.7
36.0
110.5
130.4
60.1
7.6
0.5
5.0
10.9
3.9
58.7
40.9
49.6
55.9
37.3
35.2
33.1
32.4
32.2
27.7
19.6
18.2
20.2
20.9
16.0
14.5
19.7
25.1
15.7
19.2
10,598.7
-1.3
21.9
18.9
9.1
15.6
29.8
39.1
45.3
28.3
407.0
7.8
11.5
1.4
3.7
4.4
48.4
45.3
49.8
39.9
40.6
35.0
30.7
30.6
27.2
26.3
22.3
16.6
18.9
17.0
17.2
22.6
23.8
17.0
11.8
25.9
6,689.4
-1.3
22.1
19.4
9.4
9.6
43.0
28.1
13.7
16.7
14.8
5.5
8.7
5.3
5.1
0.2
49.1
66.7
53.3
44.7
48.0
40.6
37.7
28.4
27.1
24.6
21.3
19.8
11.2
11.6
10.7
16.7
19.9
4.3
7.3
5.6
8,127.0
-3.1
15.9
18.1
9.5
14.5
93.3
87.8
104.9
103.9
18.5
7.3
5.5
3.1
2.6
5.7
35.0
35.0
33.4
33.4
28.9
26.3
23.1
23.1
18.3
16.1
14.0
14.2
17.1
11.3
12.0
16.9
15.1
17.4
15.8
11.3
--
1.3
16.9
15.7
9.6
13.3
Large-cap funds
SBI Bluechip Fund
Birla Sun Life Frontline Equity Fund - Reg
Reliance Top 200 Fund
UTI Top 100 Fund
Kotak 50 - Reg
Indices
BSE Sensex
Mid-cap funds
SBI Small & Midcap Fund
Mirae Asset Emerging Bluechip Fund
UTI Mid Cap Fund
Principal Emerging Bluechip Fund
Franklin India Prima Fund
Indices
BSE MID-CAP
Multi-cap funds
Franklin India High Growth Companies Fund
Birla Sun Life Pure Value Fund
ICICI Prudential Value Discovery Fund
SBI Magnum Global Fund 94
Franklin India Flexi Cap Fund
Indices
BSE 500
Tax-saving funds
Axis Long Term Equity Fund
IDFC Tax Advantage (ELSS) Fund - Reg
Reliance Tax Saver (ELSS) Fund
BNP Paribas Long Term Equity Fund
Franklin India Taxshield
Indices
CNX500
Thematic funds
ICICI Prudential Exports and Other Services Fund
Franklin Build India Fund
Religare Invesco Infrastructure Fund
Birla Sun Life Special Situations Fund
Kotak Infrastructure & Economic Reform Fund - Reg
Indices
S&P Nifty (CNX Nifty)
Balanced funds
SBI Magnum Balanced Fund
Franklin India Balanced Fund
HDFC Balanced Fund
DSP BlackRock Balanced Fund
Edelweiss Absolute Return Fund
Indices
Crisil Balanced Fund Index
Note: Returns < 1 year - absolute, > 1 year - CAGR (compounded annual growth rate)
Sharekhan
May 19, 2015
Mutual Funds
Mutual Gains
Franklin Build India Fund

Fact sheet
Key features
Franklin Build India Fund is an open-end equity fund which

seeks to achieve capital appreciation through investments in
companies engaged either directly or indirectly in
infrastructure-related activities.
Fund category
Thematic fund category
Launch date
September 04, 2009
Minimum investment Rs5,000

Load structure
Latest NAV (gr.)
Entry load is nil/ if redeemed bet. 0 year

to 2 year, exit load is 1%
Anand Radhakrishnan, Roshi Jain,
Neeraj Gaurh
Rs29.0
Latest NAV (div.)
Rs21.7
Fund manager
Schemes performance
80.0
Franklin Build India Fund - Grow th

CNX Nifty
66.7
70.0
Thematic funds Category Average
Expense ratio (%)
2.8 (April 25, 2015)
AUM
Rs361 crore (March 31, 2015)
Benchmark index
CNX 500 Index
60.0
50.0
40.0
37.7
32.8
30.0
15.9
20.0
10.0
Holding by market cap

20.2 18.1
19.8
9.2 9.5
8.7
Particular
19.9
9.5
14.5
0.3
0.0
-10.0
6 Months
-3.1
1 Year
3 Years
5 Years
Large-cap
28.4
Top 10 holdings
46.3
Company name
Axis Bank
6.09
Maruti Suzuki India
5.89
6.6
9.4
Auto & Auto Ancillaries
12.1
Banks
25.2
5.0
Top 5 holdings
Small-cap
6.2
0.0
4.3
76.7
Top 10 stock holdings (total no. of scrips: 36)
Top 5 sectors
Telecom Services
15.8
Mid-cap
Growth blend value
Industrial Products
44.7
CNX Mid-cap
CNX 500
Style box analysis
Construction materials
CNX Nifty
CNX Small-cap
Since Inception
Returns < 1 yr: Absolute, >1yr: CAGR
10.0
15.0
20.0
25.0
% of net assets
HDFC Bank
5.58
State Bank of India
5.48
Idea Cellular
5.33
ICICI Bank
4.11
Bharti Airtel
4.09
TVS Motor Company
3.59
Whirlpool of India
3.16
Sanofi India
3.00
30.0
Scheme analysis
With more than five years of experience, the fund has been an outstanding performer in comparison with both the benchmark
index, CNX Nifty and the category average. Despite the volatility and uncertainties in the market, the fund performed better
than its peers, giving returns of 66.7% over one year as against that of 15.9% and 32.8% given by the benchmark index and the
category average respectively in the same period. Over the longer time horizon of three years, the fund has grown at 37.7%
compounded annual growth rate while the CNX 500 and the category average have grown at 19.4% and 20.2% respectively. In the
recent months the fund has garnered returns of 8.7% compared with the -3.1% return posted by the benchmark index and the
0.3% return from the thematic funds category average.
The fund currently has about 36 stocks in its portfolio. It has nearly 90.51% of its net assets exposed to equity while the rest is
exposed to the other money-market instruments. The top ten stocks form about 46.3% of the portfolio. The fund has invested
nearly 25.2% of its funds in the banking sector followed by the auto and telecommunications sectors with 12.1% and 9.4%
allocations respectively.
Sharekhan
May 19, 2015
Mutual Funds
Mutual Gains
Fund ranking procedure

We have identified the best equity-oriented schemes
available in the market today based on the following five
parameters: the past performance as indicated by the
one-year, two-year and three-year returns, the Sharpe
ratio and the Information ratio.
performance) based on each of the five parameters vis-avis the maximum value among them.
For our final selection of schemes, we have generated a
total score for each scheme giving 60% weightage each to
the relative performance as indicated by the one-year,
two-year and three-year returns; 20% weightage to the
relative performance as indicated by the Sharpe ratio;
and the remaining 20% to the relative performance as
indicated by the Information ratio of the scheme.
The Sharpe ratio indicates risk-adjusted returns, ie the

returns earned in excess of the risk-free rate for each
unit of the risk taken. The Sharpe ratio is also indicative
of the consistency of the returns as it takes into account
the volatility in the returns as measured by the standard
deviation.
The Information ratio is one of the most important tools
in active fund management. It is the ratio of active return
(the return over the index return) to active risk annualised.
A higher Information ratio indicates a better fund manager.
Sharekhan mutual fund ranking scale
We have selected the schemes based upon their ranking

using the above five parameters and then calculated the
maximum value of each of the five parameters. Thereafter,
we have calculated the percentage under-performance
or over-performance of each scheme (relative
Stars
Description
For top 10 percentile of the eligible schemes
Next 22.5 percentile of the eligible schemes
Next 35 percentile of the eligible schemes
Next 22.5 percentile of the eligible schemes
Bottom 10 percentile of the eligible schemes
Disclaimer
Nothing in this report constitutes investment advice or tax advice in any form and these products may or may not be suitable for you. Investors should make independent judgment taking into account specific investment objectives,
financial situations and needs before taking any investment decision. Mutual fund investments are subject to market risk. Please read the offer document carefully before investing. Past performance may or may not be sustained in the
future.
This document has been prepared by Sharekhan Ltd. (SHAREKHAN) and is intended for use only by the person or entity to which it is addressed to. This document may contain confidential and/or privileged material and is not for any type
of circulation and any review, retransmission, or any other use is strictly prohibited. This document is subject to changes without prior notice. This document does not constitute an offer to sell or solicitation for the purchase or sale of
any financial instrument or as an official confirmation of any transaction. Though disseminated to all customers who are due to receive the same, not all customers may receive this report at the same time. SHAREKHAN will not treat
recipients as customers by virtue of their receiving this report.
The information contained herein is obtained from publicly available data or other sources believed to be reliable and SHAREKHAN has not independently verified the accuracy and completeness of the said data and hence it should not
be relied upon as such. While we would endeavour to update the information herein on a reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees (SHAREKHAN and affiliates) are under
no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. Sharekhan provides non-advisory/order execution services
for Mutual Funds. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Mutual fund investments are subject to market risk. Please read the offer
document carefully before investing. Also, Recipients of this report should also be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The user assumes the entire
risk of any use made of this information. Each recipient of this document should make such investigations as he deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do
not undertake to advise you as to any change of our views. Affiliates of SHAREKHAN may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
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 SHAREKHAN and affiliates to any registration or licencing 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. Either SHAREKHAN or its affiliates or its directors or employees/
representatives/clients or their relatives may have position(s), make market, act as principal or engage in transactions of purchase or sell of securities, from time to time or may be materially interested in any of the securities or related
securities referred to in this report and they may have used the information set forth herein before publication. SHAREKHAN may from time to time solicit from, or perform investment banking, or other services for, any company
mentioned herein. Without limiting any of the foregoing, in no event shall SHAREKHAN, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any
kind. The analyst certifies that all of the views expressed in this document accurately reflect his or her personal views about the subject company or companies and its or their securities and do not necessarily reflect those of SHAREKHAN.
Further, no part of the analysts compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this document.
Compliance Officer: Ms. Namita Amod Godbole; Tel: 022-6115000; e-mail: compliance@sharekhan.com Contact: myaccount@sharekhan.com
Sharekhan
May 19, 2015
Visit us at www.sharekhan.com
May 19, 2015
Sharekhans top SIP fund picks

Why SIP?
SIP over a longer period can reduce the cost per unit
Disciplined investing
Being disciplined is a key to investing success. Through
a systematic investment plan (SIP) you can choose to
invest fixed amounts in a mutual fund scheme which
could be as low as Rs500 at regular intervals (like every
month) for a chosen period of time (say for a year).
The amount you invest every month or every quarter
will be used to purchase units of a SIP of a mutual
fund scheme. Small amounts set aside every month
towards well performing SIP mutual fund schemes can
make an investor achieve his financial goals in future.
Invest in instruments that beat Inflation
Equity investing can help you combat rising inflation
that diminishes the value of your savings.
Example (see table below): An investment of Rs24,000

in a mutual fund resulted in a value of Rs25,200 after
12 months; whereas a SIP mutual fund investment of
Rs2,000 per month grew to Rs27,095 after the same
period.
Fewer efforts to opt for SIP
The procedure to invest through SIP is easy. All you
need to do is give post-dated cheques or opt for an
auto debit of a specific amount towards SIP from your
bank account. SIP plans are completely flexible. One
can even start a SIP just by placing an order by logging
into Sharekhans online mutual fund page. One can
invest for a minimum of six months or for a long tenure.
Also, there is an option of choosing the investment
interval which could be monthly or quarterly.
Illustrative example
Price per unit
One-time investment
SIP
Month
(Rs)
Amount
invested (Rs)
Units
purchased
Amount
invested (Rs)
Units
purchased
Jan-10
20
24,000
1,200
2,000
100.0
Feb-10
18
--
2,000
111.1
Mar-10
14
--
2,000
142.9
Apr-10
22
--
2,000
90.9
May-10
26
--
2,000
76.9
Jun-10
20
--
2,000
100.0
Jul-10
18
--
2,000
111.1
Aug-10
17
--
2,000
117.7
Sep-10
15
--
2,000
133.3
Oct-10
18
--
2,000
111.1
Nov-10
20
--
2,000
100.0
Dec-10
21
--
2,000
95.2
Total investment (Rs)

Average price (Rs)
Total units purchased
Value of investment after
12 months (Rs)
24,000
24,000
20
19
1,200
1,290
25,200
27,095
*NAV as on the 1st of every month. These are assumed NAVs in a volatile market.
For Private Circulation only

REGISTRATION DETAILS Regd Add: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway
Station, Kanjurmarg (East), Mumbai 400042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos. BSE - INB/INF011073351 ; BSE- CD ;
NSE- INB/INF231073330; CD-INE231073330 ; MCX Stock Exchange - INB/INF261073333 ; CD-INE261073330 ; DP - NSDL-IN-DP-NSDL-233-2003 ; CDSL-IN-DP
-CDSL-271-2004 ; PMS-INP000000662 ; Mutual Fund-ARN 20669 ; Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080 ; (MCX/TCM/
CORP/0425) ; NCDEX-00132 ; (NCDEX/TCM/CORP/0142) ; NCDEX SPOT-NCDEXSPOT/116/CO/11/20626 ; For any complaints email at igc@sharekhan.com;
Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and Dos & Donts by MCX & NCDEX and the T & C on
www.sharekhan.com before investing.
Mutual Funds
mutual gains
Data as on May 12, 2015
SIP investment (monthly Rs1,000)*
1 year
3 years
5 years
Total amount invested (Rs)
12,000
36,000
60,000
Funds would have grown to
NAV
Present Compounded
value
annualised
(Rs)
return (%)
Present Compounded
value
annualised
(Rs)
return (%)
Present Compounded
value
annualised
(Rs)
return (%)
Large-cap funds
SBI Bluechip Fund
27.2
12,824.1
7.5
52,674.6
13.9
99,395.1
10.8
Reliance Top 200 Fund
23.0
12,453.1
4.1
52,091.5
13.5
96,686.3
10.2
157.1
12,420.0
3.8
50,833.4
12.6
95,485.7
9.9
47.7
12,546.7
5.0
49,457.9
11.5
90,531.3
8.7
165.5
12,536.5
4.9
49,139.8
11.3
89,124.6
8.4
26,877.5 11,863.7
-1.20
45,248.2
8.06
81,274.8
6.32
Birla Sun Life Frontline Equity Fund - Reg

UTI Top 100 Fund
Kotak 50 - Reg
BSE Sensex
Multi-cap funds
28.7
13,268.9
11.6
61,735.5
20.3 118,043.7
14.8
SBI Magnum Global Fund 94
130.4
13,416.3
13.0
60,549.9
19.5 116,798.5
14.5
ICICI Prudential Value Discovery Fund
110.5
12,863.2
7.9
60,451.4
19.5 116,772.7
14.5
Franklin India Prima Plus
425.7
13,000.0
9.1
54,644.4
15.4 102,171.4
11.4
60.1
12,853.4
7.8
54,632.3
15.4 100,738.9
11.1
10,598.7 12,140.8
1.25
47,257.3
9.67
83,738.9
6.97
Franklin India Flexi Cap Fund

BSE 500
Mid-cap funds
SBI Small & Midcap Fund
29.6
14,211.0
20.3
70,679.1
26.0 134,356.7
17.8
UTI Mid Cap Fund
75.6
13,079.5
9.9
65,606.3
22.9 124,283.4
16.0
Tata Mid Cap Growth Fund - Plan A
97.8
13,354.8
12.4
63,343.9
21.4 118,855.3
14.9
65.7
13,209.7
11.1
62,045.0
20.5 117,873.8
14.7
638.6
13,194.5
10.9
61,608.9
20.2 118,916.5
14.9
10,274.1 12,486.1
4.30
51,722.8
Principal Emerging Bluechip Fund

Franklin India Prima Fund
BSE Midcap
13.08
88,600.6
8.19
Tax saving funds

Axis Long Term Equity Fund
29.8
13,187.7
10.9
60,459.2
19.5 119,132.8
15.0
Reliance Tax Saver (ELSS) Fund
45.3
12,586.5
5.2
60,482.9
19.2 113,984.2
13.8
IDFC Tax Advantage (ELSS) Fund - Reg
39.1
13,315.7
12.0
55,925.0
16.3 105,229.1
12.1
407.0
12,908.4
8.3
54,215.7
15.1 101,926.6
11.4
28.3
12,771.1
6.8
54,358.7
15.0 103,538.2
11.7
8,127.0 11,945.0
-0.49
45,523.1
8.29
6.45
Franklin India Taxshield

BNP Paribas Long Term Equity Fund
CNX Nifty
(*invested on 2nd day of every month)
We will be showing compounded annualised returns for three years and five years from now on.
Sharekhan
May 19, 2015
81,767.7
Mutual Funds
mutual gains

Key features
Fact sheet
Franklin India High Growth Companies Fund is an open-end
diversified equity fund that seeks to achieve capital appreciation
through investments in Indian companies and sectors with high
growth rates or potential.
Fund category
Multi-cap fund category
Launch date
July 26, 2007
Minimum investment Rs5,000
Schemes performance
Load structure
Entry load is nil/if redeemed bet. 0

year to 2 year, exit load is 1%
Fund manager
R Janakiraman, Roshi Jain,

Neeraj Gaurh
Latest NAV (gr.)
Rs29.5
Latest NAV (div.)
Rs24.5
Expense ratio (%)
2.3 (April 25, 2015)
AUM
Rs1,894 crore (March 31, 2015)
Benchmark index
CNX 500 Index
Holding by market cap

Particular
CNX Nifty
49.7
CNX Mid-cap
14.6
CNX Small-cap
Returns (point to point) < 1 yr: Absolute, >1yr: CAGR
Style box analysis

Large-cap
3.2
CNX 500
76.9
Top 5 holdings
27.8
Top 10 holdings
45.4
Top 10 stock holdings (total no. of scrips: 37)
Mid-cap
Company name
Small-cap
HDFC Bank
Growth blend value
Top 5 sectors
% of net assets
5.9
Axis Bank
5.8
Maruti Suzuki India
5.7
State Bank of India
5.4
Idea Cellular
5.0
ICICI Bank
4.3
Tata Consultancy Services
3.4
TVS Motor Company
3.4
Tata Motors - DVR - A - ORDY
3.3
Bharti Airtel
3.3
Scheme analysis
With more than seven years of experience, the fund has been an outstanding performer in comparison with both the benchmark
index, CNX 500 and the category average. Despite the volatility and uncertainties in the market, the fund performed better than
its peers, giving returns of 58.7% over one year as against that of 22.1% and 30.6% given by the benchmark index and the category
average respectively in the same period. Over the longer time horizon of three years, the fund has grown at 35.2% compounded
annual growth rate while the BSE 500 Index and the category average have grown at 18.9% and 23% respectively. In the recent
months, the fund has garnered returns of 7.6% compared with -1.3% and 0.7% returns posted by the benchmark index and the
multi-cap funds category average.
The fund currently has about 37 stocks in its portfolio. It has nearly 90% of its net assets exposed to equity while the rest is
exposed to the other money-market instruments. The top ten stocks form about 45.4% of the portfolio. The fund has invested
nearly 24.5% of its funds in the banking sector followed by the auto and software services sectors with 13.5% and 10.4% allocations
respectively.
Sharekhan
May 19, 2015
Mutual Funds
mutual gains
Disclaimer
future.
Sharekhan
May 19, 2015
Visit us at www.sharekhan.com
May 22, 2015
Debt Mutual Fund Picks

Data as on April 30, 2015
Macro data round up
Data from the Ministry of Finance showed that the fiscal deficit
at the end of 2014-15 stood at Rs.5,01,880 crore, which is 98%
of the projected figure in the revised estimate of 2014-15. Fiscal
deficit, as a percentage of GDP, is 4.0% for 2014-15, against the
revised estimate of 4.1%.
Government data showed that trade deficit narrowed to $10.99
billion in April due to a 42.65% fall in oil imports on a yearly
basis. The country's merchandise exports contracted by 13.96%
in April for the fifth straight month. Imports fell 7.48% from a
year earlier to $33.05 billion last month, while exports stood at
$22.05 billion.
The Reserve Bank of India at its first Bi-monthly Monetary Policy
review for 2015-16, kept the policy repo rate under the Liquidity
Adjustment Facility (LAF) unchanged at 7.5% as it sought more
clarity on inflation. Consequently, the reverse repo rate under
the LAF remained unchanged at 6.5% and the Marginal Standing
Facility rate and the Bank Rate remained at 8.5%.
Key rates
Closing
value
Weekly
Mthly
Yearly
Inflation*
-2.65
-2.65
-2.33
5.55
91 Days T-Bill
7.94
7.75
7.80
8.82
364 Days T- Bill
7.90
7.89
7.70
8.89
10 Year G-Sec Yield
7.86
7.76
7.74
8.83
MIBOR
7.52
7.70
0.00
8.70
6 Months LIBOR (USD)
0.41
0.41
0.40
0.32
Call Money Rate
7.70
7.72
11.21
8.77
Repo Rate^
7.50
7.50
7.50
8.00
Reverse Repo^
6.50
6.50
6.50
7.00
CRR
4.00
4.00
4.00
4.00
SLR
21.50
21.50
21.50
23.00
8.50
8.50
8.50
9.00
Bank Rate
*Wholesale Inflation rate for March, 2015

^Repo rate and Reverse repo rate as on April 7, 2015
Consumer inflation-based index rose by 4.87% on a yearly basis in April, lower than 5.25% in the previous month as food prices turned
cheaper. Food inflation rose 5.11%, slower than a 6.14% rise in March. Fuel and light prices increased 5.6% in April against 5.07% in the
previous month.
On the global front, the People's Bank of China lowered both benchmark lending and deposit rates by 25 bps each to 5.1% and 2.25%,
respectively. Earlier the Central Bank lowered the reserve requirement ratio for all banks by 100 basis points to 18.5%, with effect from
April 20. Non-farm payroll employment in the USA increased by 223,000 jobs in April compared to 85,000 jobs generated in March. The
USA. Federal Reserve kept its benchmark interest rate unchanged after economic growth in the first quarter of 2015 slowed down. The
Bank of England left its interest rate unchanged and suggested that its key interest rate will be raised by the middle of 2016.
Bond / Debt market round up
Bond yields rose after the Reserve Bank of India left its key policy rates unchanged. Rise in international oil prices and weakness in the
rupee also hit the bond markets. Bond yields moved up further on concerns over rise in inflation, sub-normal monsoon and uncertainty
over the USA Federal Reserves stance on interest rate hike. Fall in the rupee and rise in global crude oil prices also hit the bond
market. During the month, Brent crude oil prices rose nearly 20% and the rupee weakened around 1.5% against the dollar, which
increased inflationary concerns. However, further losses were restricted after Moody's Investors Service raised Indias rating outlook
from stable to positive.
The yield on the 10-year benchmark bond rose by 12bps as it closed at 7.86% against the previous months close of 7.74%, after moving
in the range of 7.72% to 7.86%.
Bond / Debt Outlook: Investors will track key consumer inflation numbers, which may provide some indication as to when the Central Bank
may further ease key policy rates. The movement of the rupee against the dollar, global crude oil prices, stance adopted by the Foreign
Portfolio Investors and developments in the euro (especially Greeces debt situation) and the USA region will also remain in focus. Steps
taken by the Government in bringing fiscal consolidation and implementing its budgetary proposals will be tracked closely. The Central
Bank will conduct the auction of Government dated securities for an aggregate amount of Rs.64,000 crore. The Central Bank will conduct
the auction of 91-days, 182-days and 364-days Government of India Treasury Bills for an aggregate amount of Rs.56,000 crore.
Model portfolio Asset classes

Investor Profile
Fixed Income
Ultra Short Term
Short Term
Floating Rate Funds
Long Term
Gilt
Liquid Funds/Cash
Conservative
Moderately Conservative
Moderately Aggressive
70-75%
15-20%
10-15%
10-15%
5-10%
10-15%
20-25%
75-80%
10-15%
10-15%
5-10%
10-15%
20-25%
15-20%
80-85%
5-10%
5-10%
5-10%
15-20%
25-35%
10-15%
Sharekhan
May 22, 2015
Mutual Gains
Investment strategy
The Reserve Bank of India (RBI) maintained status quo and kept its key policy repo rates unchanged at its first bi-monthly monetary policy
review for FY15-16. The RBI said that further monetary easing will depend on factors like commercial banks reducing their lending rates
and the movement of consumer inflation going forward. Due to absence of any major trigger in the near term, yields are likely to remain
in a broad range in the near term. Thus, investors can continue to hold a portfolio similar to Moderately Aggressive fund as fall in yields will
improve returns.
10YrBenchmark BondYield
YieldCurve
8.02%
7.82%
Yield(%)
Yield(%)
7.88%
7.76%
7.93%
7.84%
7.70%
7.75%
6Apr
14Apr
22Apr
30Apr
Source:CCIL
Source:CCIL
4
5
6
Tenureinyrs
10
15
Research Process
The model portfolio has been determined on the basis of the risk-return trade-off offered by various asset classes. As the risk appetite of
the investor increases, the return expectation also increases. The portfolio volatility as measured by the standard deviation of the
inherent asset classes has been used as a surrogate of risk. Allocation has been ascertained keeping in mind the trade-off between higher
volatility in returns and the safety of capital. Therefore, while gilt funds are the most secure, the relatively higher volatility in returns may
not be suitable for a conservative investor; at the same time a moderately conservative investor will be able to absorb the gyrations in
returns. The model portfolio has been expressed in ranges to offer flexibility in creating actual portfolios.
Sharekhans top debt fund picks

Monthly Income Plan
Funds that offer a marginal flavor of equity (upto 15% or more) especially for portfolios that are otherwise debt oriented. They
predominantly invest in debt and money market instruments.
Scheme Name
Returns (%)
(Simple Annualized)
AAUM **
(Rs Crs)
1Mth
3 Mths
6Mths
Exp*
Ratio
(%)
Avg.
Mat
(Days)
1 Yr
Credit Quality (% Allocation)

AAA/P+
AA/AA+
Below
AA
Cash &
Call
BSL MIP II - Wealth 25
684.8
-11.5
-2.6
15.5
24.4
0.4
--
55.5
2.2
0.9
41.4
UTI - MIS - Adv Fund
501.2
-9.7
-0.1
12.0
19.0
1.8
2053
49.2
24.5
--
26.3
1171.1
-7.8
-0.3
13.7
21.5
2.0
3088
66.5
7.7
--
25.8
186.5
2.3
-1.1
6.3
14.6
1.8
179
61.5
15.5
--
23.0
2541.0
-1.9
-1.2
14.9
21.3
2.2
4869
55.4
21.1
0.9
22.6
-2.0
0.2
10.6
15.1
IPru MIP 25
HDFC MYF Plan 2005
Reliance MIP - Growth
Crisil MIP Blended
Income Funds
Funds that invest in income bearing instruments with any maturity and across the yield curve to generate regular income, such as
corporate bonds, gilts, treasury bills, certificates of deposit and commercial papers etc.
Scheme Name
Returns (%)
(Simple Annualised)
AAUM **
(Rs Crs)
1Mth
3 Mths
Exp*
Ratio
(%)
6Mths
Avg.
Mat
(Days)
1 Yr

AAA/P+
AA/AA+
Below
AA
Cash &
Call
Axis Banking Debt Fund
683.2
8.8
8.8
8.6
9.1
0.4
298
98.4
--
--
1.6
BNP Paribas Flexi Debt
291.8
-0.4
2.4
14.3
13.6
1.9
2705
64.1
--
--
35.9
5.6
Franklin India IBA
1654.6
6.0
6.2
11.3
12.8
1.9
1748
20.5
49.4
24.6
UTI Dynamic Bond Fund
621.8
1.6
2.0
11.7
13.1
1.1
3150
89.8
6.0
--
4.2
DSP BLR Strategic Bond
3237.1
1.0
2.2
13.5
14.0
1.1
3770
84.4
4.7
--
11.0
5.3
5.5
12.3
13.7
Crisil Composite Bond
Sharekhan
May 22, 2015
Mutual Gains
Short Term Debt Funds

Funds invest in short-term debt instruments of high quality and low risk, that mature in about next 15 to 18 months and generally
best suited to investors with 1 to 2 years of investment horizon.
Scheme Name
BSL Dynamic Bond Fund

BSL Treasury Optimizer
HDFC HIF - Dynamic
DSP BLR Income Opp- IP
BSL ST Fund - DAP
Returns (%)
(Simple Annualised)
AAUM **
(Rs Crs)
11471.0
3616.7
1816.6
1746.1
6215.6
Crisil ST Debt Index
Exp*
Ratio
(%)
1Mth
3 Mths
6Mths
6.0
7.3
0.3
9.7
8.6
5.9
6.8
0.5
8.6
7.6
14.9
10.8
14.2
10.9
9.8
14.5
11.9
15.4
11.4
10.6
8.8
8.1
9.6
10.2
Avg.
Mat
(Days)
1 Yr
1.3
0.6
1.5
1.2
0.3
--5939
1314
--

AAA/P+
AA/AA+
Below
AA
74.3
83.9
94.3
39.1
78.0
23.0
12.6
2.6
19.2
14.1
---38.3
--
Cash &
Call
2.7
3.5
3.1
3.4
7.9
Ultra Short Term Funds

Funds that invest exclusively in debt instruments with very short maturity period, usually one year or less.
Scheme Name
Religare Invesco Cr. Opp

IDFC MM Invest Plan
IDFC MM Treasury Plan
BSL Savings Fund
UTI FRF- STP - Growth
Returns (%)
(Simple Annualised)
AAUM **
(Rs Crs)
2188.2
1075.1
1297.8
11002.7
2938.6
Crisil Liquid Fund Index
1Mth
3 Mths
9.4
9.8
8.5
9.8
9.1
8.8
Exp*
Ratio
(%)
6Mths
1 Yr
9.2
9.3
7.9
8.9
8.6
9.1
8.8
7.9
9.0
8.6
9.3
9.2
8.4
9.5
8.8
8.5
8.5
8.9
0.7
0.5
0.9
0.4
0.7
Avg.
Mat
(Days)
32
1037
183
-730

AAA/P+
AA/AA+
Below
AA
97.2
78.0
61.3
64.6
62.3
0.7
17.9
36.4
21.9
17.5
----2.6
Cash &
Call
2.2
4.1
2.3
13.6
17.6
Floating Rate Funds

Funds that predominantly invests in debt securities with a floating rate of interest. And these debt securities peg their coupon or
interest rate payable to market driven rate such as Mibor.
Scheme Name
SBI Savings Fund

IPru Corporate Bond Fund
Franklin India Savings Plus
Can Robeco Savings Plus
HDFC F R I F - LTF
Returns (%)
(Simple Annualised)
AAUM **
(Rs Crs)
826.1
3312.7
375.7
203.6
1603.2
Exp*
Ratio
(%)
1Mth
3 Mths
6Mths
9.1
7.2
8.0
9.0
6.5
8.0
6.4
7.7
8.1
7.2
8.3
10.5
8.4
8.4
8.0
8.7
11.8
8.9
8.9
8.9
8.8
8.5
8.5
8.9
Avg.
Mat
(Days)
1 Yr
1.3
1.2
0.9
0.6
0.2
245
1369
412
299
1102

AAA/P+
AA/AA+
90.8
27.4
98.5
83.3
89.6
7.5
61.9
-13.0
--
Below
AA
------
Cash &
Call
1.7
10.8
1.5
3.7
10.4
Liquid Fund
Funds investing only in short-term money market and debt instruments that mature in up to 91 days such as treasury bills, commercial
paper and certificates of deposit.
Scheme Name
Returns (%)
(Simple Annualised)
AAUM **
(Rs Crs)
1Mth
3 Mths
Exp*
Ratio
(%)
6Mths
Avg.
Mat
(Days)
1 Yr

AAA/P+
AA/AA+
Below
AA
Cash &
Call
IPru Money Market Fund
5828.7
8.8
8.7
8.7
8.9
0.2
45
101.1
--
--
-1.1
SBI Magnum Insta Cash
1352.2
8.8
8.7
8.6
8.9
0.1
33
94.6
--
--
5.4
HDFC Liquid Fund
19153.7
9.0
8.7
8.7
9.0
0.1
35
98.0
--
--
2.0
SBI Premier Liquid Fund
21985.6
8.8
8.6
8.6
8.9
0.1
37
86.6
--
--
13.4
5166.2
9.1
8.8
8.8
9.0
0.3
42
77.6
--
--
22.4
8.8
8.5
8.5
8.9
JM High Liquidity
Sharekhan
May 22, 2015
Mutual Gains
Gilt Funds
Funds which invest only in government securities of different maturities with virtually no default risk.
Scheme Name
Reliance G Sec Fund

SBI Magnum Gilt LTP
Birla Sun Life G Sec Fund
UTI Gilt Advantage Fund
Tata Gilt Mid Term Fund
Returns (%)
(Simple Annualised)
AAUM **
(Rs Crs)
842.9
842.9
753.3
378.9
134.3
NSE GSec Composite
Exp*
Ratio
(%)
1Mth
3 Mths
6Mths
-0.9
0.8
-1.4
1.0
2.8
-0.2
1.2
-0.5
-1.0
3.2
16.4
19.3
16.3
17.7
14.4
17.3
19.9
16.9
19.3
15.3
2.5
3.2
10.8
11.2
Avg.
Mat
(Days)
1 Yr

AAA/P+
1.7
0.9
1.4
1.2
1.1
6585
6753
-7209
3477
97.0
89.3
96.0
95.1
95.8
AA/AA+
Below
AA
------
------
Cash &
Call
3.0
10.7
4.0
4.9
4.2
*Exp Expense ratio (latest available date)

** AAUM (Rs crs) Figure represents March 2015 quarter average AUM
Methodology
We have identified the best debt-oriented schemes available in the market today based on the following 5 parameters: Avg. rolling returns
for one and two years, Sharpe ratio, Fama (net selectivity), Credit quality and Average Maturity. Credit quality-10%, Avg.Maturity-10%,
Avg.rolling returns for 1 and 2 years 20% each, Sharpe-20% and FAMA (net selectivity)-20%.
Tax rates
Tax on distributed income (payable by the scheme) rates
Scheme Type
Individual
Equity Oriented Schemes
Domestic Companies
NRI
Nil
Nil
Nil
Money market and Liquid schemes
28.84%
25% + 12% Surcharge** + 3% Cess
34.608%
30% + 12% Surcharge** +3% Cess
28.84%
Debt schemes (other than

infrastructure debt fund)
28.84%
34.608%
28.84%
Infrastructure Debt Fund
28.84%
34.608%
5.768%
Tax Implications on Dividend received by Unit holders

Scheme Type
Individual/ HUF
Domestic Company
NRI
Equity Oriented schemes
Nil
Nil
Nil
Debt oriented schemes
Nil
Nil
Nil
Capital Gains
Long Term Capital Gains (Units Held for more than 12 months)
Scheme Type
Equity oriented schemes
Individual/ HUF$
Domestic Company @
NRI$/#
Nil
Nil
Nil
Other than equity oriented

schemes (Listed)
20% with indexation
20% with indexation
20% with indexation
Other than equity oriented

schemes (Unlisted)
20% with indexation
20% with indexation
10% without indexation
Sharekhan
May 22, 2015
Mutual Gains
Short Term Capital Gains (Units Held for 12 months or less)
Scheme Type
Individual/ HUF$
Domestic Company @
NRI$/#
15%
15%
15%
Other than equity oriented schemes
30%^
30%
30%^
Tax Deduced at Source (Applicable only to NRI Investors)

Scheme Type
Short term capital gains
Long term capital gains
15%
Nil
Other than equity oriented schemes (Listed)
30%
20%##
Other than equity oriented schemes (Unlisted)
30%
10%
* Securities transaction tax (STT) will be deducted on equity funds at the time of redemption/ switch to the other schemes/ sale of units.
** Effective from June 1, 2013.
$ - Surcharge at the rate of 10% is proposed to be levied in case of individual/ HUF unit holders where their income exceeds Rs 1 crore.
@ - Surcharge at the rate of @ 5% is proposed to be levied for domestic corporate unit holders where the income exceeds Rs 1 crore but less than Rs. 10 crore and at the rate of
10% where income exceeds Rs. 10 crore.
# - Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only.
## - After providing for indexation ^ Assuming the investor falls into highest tax bracket.
Category Write-up
Indian equity markets extended losses during the month as concerns over Minimum Alternate Tax (MAT) triggered foreign fund outflows.
Weak monsoon forecast, delay in passage of Land Acquisition Bill and widening of trade deficit to a four-month high in March also weighed
on investor sentiments. Uncertainty over Greeces debt situation and cautious stance by the U.S. Federal Reserve put further pressure on
the bourses. As a result, the returns (one-year period and one-month rolling returns) from MIP category slowed down to 14.55%.
Bond yields rose as the Central Bank stated that further monetary easing will depend on factors like commercial banks reducing their
lending rates and the movement of consumer inflation going forward. Rise in international oil prices and weakness in the Indian rupee
further hit bond markets. Bond yields also rose on concerns over sub-normal monsoon and caution ahead of the U.S Federal Reserves
monetary policy meeting.
Returns from debt categories (one-year period and one-month rolling returns) slowed down barring Ultra Short-term funds. Major impact
due to rise in yields was witnessed among medium to long-term maturity categories like Gilt Long Term and Debt Income, which grew at
14.27% and 11.09%, respectively. Returns from Gilt Short Term and Debt Short Term also slowed down to 9.31% and 9.61%, respectively. The
least impact was seen on Liquid and Debt FRF categories, whose returns stood at 8.43% and 8.84%, respectively. On the contrary, returns
from Ultra Short Term stood at 8.53%, the only debt category that showed improvement in returns.
Risk Reward Graph
16.0
Monthly
Income Plan
14.0
Gilt LT
Std.Dev.
12.0
10.0
8.0
Income Fund
6.0
Gilt ST
4.0
Short Term Fund

Debt FRF
2.0
Ultra ST
Liquid
0.0
8.0
10.0
12.0
AverageReturns
Sharekhan
May 22, 2015
14.0
16.0
Mutual Gains
Methodology
The bubble diagram gives you a snapshot of how the mutual funds have performed on the risk return parameter in the past. We have used
bubble analysis method to measure their performance on two parameters i.e. Average rolling returns and Standard deviation. For all
funds, we have considered one month rolling and periodic frequency for the period of one year, as on April 30, 2015.
Forthcoming NFOs
Fund House
Scheme Name
Open Date
Close Date
Structure
Nature
ICICI Mutual Fund
ICICI Prudential Fixed Maturity Plan Series 77 - 1127 Days Plan E
18-May-15
21-May-15
Close Ended
Fixed Maturity Plan
UTI Mutual Fund
UTI Fixed Term Income Fund Series

XXII III (1099 days)
06-May-15
20-May-15
Close Ended
Fixed Maturity Plan
Reliance Mutual Fund
Reliance Fixed Horizon Fund XXVIII - Series 18 (Tenure - 1115 Days)
07-May-15
21-May-15
Close Ended
Fixed Maturity Plan
Reliance Fixed Horizon Fund XXVIII - Series 19 (Tenure - 1124 Days)
07-May-15
21-May-15
Close Ended
Fixed Maturity Plan
Reliance Fixed Horizon Fund - XXVIII

- Series 19 (1124 D) - Direct Plan (G)
07-May-15
21-May-15
Close Ended
Fixed Maturity Plan
Reliance Fixed Horizon Fund XXVIII - Series 18 (1115 D) (G)
07-May-15
21-May-15
Close Ended
Fixed Maturity Plan
Disclaimer
future.
Sharekhan
May 22, 2015

Sharekhan Top Mutual Fund Picks May 2015

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May 19, 2015

Sharekhans top equity mutual fund picks

>> Franklin Build India Fund

Fund ranking procedure

For Private Circulation only

Top rated equity mutual funds

Annually compounded returns (%)

May 19, 2015

Franklin Build India Fund

Franklin Build India Fund is an open-end equity fund which

Thematic fund category

September 04, 2009

Minimum investment Rs5,000

Latest NAV (gr.)

Entry load is nil/ if redeemed bet. 0 year

Latest NAV (div.)

Franklin Build India Fund - Grow th

Thematic funds Category Average

Expense ratio (%)

2.8 (April 25, 2015)

Rs361 crore (March 31, 2015)

CNX 500 Index

Holding by market cap

Maruti Suzuki India

Auto & Auto Ancillaries

Top 10 stock holdings (total no. of scrips: 36)

Growth blend value

Style box analysis

Returns < 1 yr: Absolute, >1yr: CAGR

State Bank of India

TVS Motor Company

May 19, 2015

Fund ranking procedure

The Sharpe ratio indicates risk-adjusted returns, ie the

Sharekhan mutual fund ranking scale

We have selected the schemes based upon their ranking

For top 10 percentile of the eligible schemes

Next 22.5 percentile of the eligible schemes

Next 35 percentile of the eligible schemes

Next 22.5 percentile of the eligible schemes

Bottom 10 percentile of the eligible schemes

May 19, 2015

May 19, 2015

Sharekhans top SIP fund picks

Example (see table below): An investment of Rs24,000

Total investment (Rs)

For Private Circulation only

SIP investment (monthly Rs1,000)*

Total amount invested (Rs)

Funds would have grown to

Reliance Top 200 Fund

Birla Sun Life Frontline Equity Fund - Reg

SBI Magnum Global Fund 94

ICICI Prudential Value Discovery Fund

Franklin India Prima Plus

Franklin India Flexi Cap Fund

UTI Mid Cap Fund

Tata Mid Cap Growth Fund - Plan A

Principal Emerging Bluechip Fund

Tax saving funds

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund - Reg

Franklin India Taxshield