Sharekhans top SIP fund picks

Why SIP?
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.
SIP over a longer period can reduce the cost per unit
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 Units Amount Units
invested (Rs) purchased invested (Rs) 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) 24,000 24,000
Average price (Rs) 20 19
Total units purchased 1,200 1,290
Value of investment after 25,200 27,095
12 months (Rs)
*NAV as on the 1st of every month. These are assumed NAVs in a volatile market.
May 12, 2014 Visit us at www.sharekhan.com
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Mutual Funds mutual gains
2 Sharekhan May 12, 2014
Data as on May 06, 2014
(*invested on 2nd day of every month)
We will be showing compounded annualised returns for three years and five years from now on.
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 Present Compounded Present Compounded
value annualised value annualised value annualised
(Rs) return (%) (Rs) return (%) (Rs) return (%)
Large-cap funds
Birla Sun Life Top 100 Fund 30.9 13,796.3 16.5 46,521.4 9.2 82,621.7 6.7
Reliance Top 200 Fund 16.3 13,740.4 16.0 44,605.1 7.6 77,565.3 5.4
UTI Leadership Equity Fund 19.1 13,350.6 12.4 44,287.7 7.4 75,781.8 4.9
UTI Top 100 Fund 35.2 13,174.5 10.7 42,848.7 6.2 74,504.2 4.5
UTI Wealth Builder Fund - Series II 23.8 12,813.9 7.4 39,930.8 3.6 72,511.1 3.9
BSE Sensex 22,508.4 13,212.4 11.1 43,553.8 6.7 74,511.9 4.5
Multi-cap funds
ICICI Prudential Value Discovery Fund 71.9 14,940.3 27.1 50,021.6 11.9 91,658.5 9.0
Mirae Asset India Opportunities Fund - Reg 22.4 13,923.4 17.6 46,627.0 9.3 84,547.6 7.2
Tata Ethical Fund - Plan A 89.9 13,350.8 12.4 45,978.0 8.7 82,993.5 6.8
LIC Nomura Equity Fund 30.8 13,533.9 14.0 43,347.2 6.6 72,720.1 4.0
Templeton India Growth Fund 134.6 13,540.0 14.1 42,663.1 6.0 72,537.5 3.9
BSE 500 8,372.7 13,379.6 12.6 42,697.5 6.0 72,069.0 3.8
Mid-cap funds
UTI Mid Cap Fund 45.9 15,256.5 30.0 50,622.7 12.4 90,042.9 8.6
HDFC Mid-Cap Opportunities Fund 23.7 14,987.8 27.5 49,805.7 11.8 94,090.6 9.6
Religare Invesco Mid N Small Cap Fund 21.9 14,588.5 23.8 49,700.9 11.7 94,073.2 9.6
Reliance Long Term Equity Fund 20.4 15,086.1 28.4 48,146.8 10.5 83,165.1 6.9
HSBC Midcap Equity Fund 23.5 16,037.7 37.3 47,365.3 9.9 74,381.6 4.5
BSE Midcap 7,370.7 14,127.4 19.5 42,043.9 5.5 68,403.7 2.7
Tax saving funds
ICICI Prudential Taxplan 190.7 14,170.9 19.9 47,195.5 9.7 84,638.7 7.3
HSBC Tax Saver Equity Fund 19.3 13,918.2 17.6 46,262.2 9.0 80,533.0 6.2
IDFC Tax Advantage (ELSS) Fund - Reg 26.3 13,505.5 13.8 45,948.6 8.7 81,529.6 6.4
SBI Magnum Tax Gain Scheme 93 78.9 13,849.4 17.0 45,863.7 8.7 79,247.4 5.8
Franklin India Taxshield 279.9 13,686.9 15.5 44,980.8 7.9 81,695.6 6.5
CNX Nifty 6,715.3 13,222.4 11.2 43,172.7 6.4 74,044.9 4.4
Mutual Funds mutual gains
3 Sharekhan May 12, 2014
8.0
7.5
9.2
13.8
7.8
15.6
15.4
14.0
13.8 13.7
14.7
15.0
8.9
11.9
5.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
6 Months 1 Year 3 Years 5 Years Since
Inception
Reliance top 200 Fund Large Cap Category Average BSE 200
Reliance Top 200 Fund
With about six years of experience, the fund has been a decent performer in comparison with both the benchmark index, BSE
200, and the category average. Despite the volatility and uncertainties in the market, the fund performed better than its peers,
giving returns of 14.7% over one year as against that of 11.9% and 13.8% 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 8% compounded annual
growth rate while the BSE Sensex and the category average have grown at 6.7% and 7.8% respectively. In the recent months, the
fund has garnered returns of 13.7% compared with the 8.9% return posted by the benchmark index and the 9.2% returns from the
large-cap funds category average.
The fund currently has about 34 stocks in its portfolio. It has nearly 98.7% of its net assets exposed to equity while the rest is
exposed to other money-market instruments. The top ten stocks form about 53% of the portfolio. The fund has invested nearly
24.5% of its funds in the banking sector followed by software and capital goods sectors with 17.4% and 11.6% allocations
respectively.
Key features
Fund category Large-cap fund category
Launch date August 8, 2007
Minimum investment Rs5,000
Load structure Entry load is nil/If redeemed bet. 0 year
to 1 year exit Load is 1%
Fund manager Ashwani Kumar, Sailesh Raj Bhan
Latest NAV (gr.) Rs16.3
Latest NAV (div.) Rs12.3
Expense ratio (%) Rs2.61( 30-Sep-13 )
AUM Rs745 crore (31-Mar-2014)
Benchmark index S&P BSE 200
Holding by market cap
Particular %
BSE Sensex 49.5
BSE Midcap 14.3
BSE Small cap
BSE 200 94.0
Top 5 holdings 31.3
Top 10 holdings 53.3
Top 10 stock holdings (total no. of scrips: 34)
Company name % of net assets
Larsen & Toubro 7.7
ICICI Bank 7.1
Infosys 6.1
Divis Laboratories 5.3
Tata Consultancy Services 5.0
State Bank of India 4.9
Reliance Industries 4.7
Bharat Forge 4.3
HDFC Bank 4.3
Maruti Suzuki India 3.8
Style box analysis
Fact sheet
The primary investment objective of the scheme is to seek long-
term capital appreciation by investing in equity and equity
related instruments of companies whose market capitalisation
is within the range of the highest and the lowest market
capitalisation of S&P BSE 200 Index.
Top 5 sectors
Scheme analysis
Scheme performance
Large-cap
Mid-cap
Small-cap
Growth blend value
Returns (point to point) < 1 yr: Absolute, >1yr: CAGR
24.5
17.4
11.6
9.1
8.5
0.0 5.0 10.0 15.0 20.0 25.0 30.0
Banks
Sof tware and Consultancy Services
Engineering and Capital Goods
Petroleum, Gas and petrochemical products
Auto & Auto Ancillaries
Mutual Funds mutual gains
4 Sharekhan May 12, 2014
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