Mutual Funds

Sharekhans top SIP fund picks

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August 11, 2016

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.

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

in a mutual fund resulted in a value of Rs25,200 after
12 months; whereas an 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 an 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.

Invest

in instruments that beat inflation

Equity investing can help you combat rising inflation

that diminishes the value of your savings.

Illustrative example
Month

Price per unit

(Rs)

One-time investment

SIP

Amount
invested (Rs)

Units
purchased

Amount
invested (Rs)

Units
purchased

1,200

Jan-10

20

24,000

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

--

Total investment (Rs)

2,000
24,000

Average price (Rs)

Total units purchased
Value of investment after
12 months (Rs)

95.2
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.

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Sharekhan

August 11, 2016

Mutual Funds

Sharekhans top SIP fund picks

Data as on August 01, 2016

SIP investment (monthly Rs1,000)*

1 year

3 years

5 years

Total amount invested (Rs)

12,000

36,000

60,000

NAV

Present
value
(Rs)

Compounded
annualised
return (%)

Present
value
(Rs)

Compounded
annualised
return (%)

Present
value
(Rs)

Compounded
annualised
return (%)

32

13,478

13.5

48,381

10.7

1,01,091

11.2

Birla Sun Life Frontline Equity Fund

179

13,480

13.5

46,158

8.9

95,345

9.9

Kotak 50

186

13,178

10.7

45,314

8.2

89,601

8.5

Reliance Top 200 Fund

25

12,982

8.9

44,756

7.8

91,603

9.0

ICICI Prudential Select Large Cap Fund

25

13,707

15.6

44,458

7.5

88,497

8.2

28,003

12,946

8.6

40,417

4.0

77,935

5.5

DSP BlackRock Micro Cap Fund

49

13,869

17.1

61,417

20.1

1,39,356

18.7

Franklin India Smaller Companies Fund

46

13,842

16.8

56,074

16.4

1,32,591

17.5

UTI Mid Cap Fund

88

13,386

12.6

53,380

14.5

1,21,436

15.4

HDFC Mid-Cap Opportunities Fund

43

13,696

15.5

52,433

13.8

1,15,083

14.2

IDFC Premier Equity Fund

78

13,226

11.2

48,472

10.7

1,03,033

11.6

12,709

13,842

16.8

50,741

12.5

99,874

10.9

Birla Sun Life Pure Value Fund

45

13,802

16.5

53,868

14.8

1,19,854

15.1

L&T India Value Fund

28

13,475

13.5

52,521

13.8

1,14,666

14.1

SBI Magnum Multi Cap Fund

38

13,620

14.8

50,521

12.3

1,04,890

12.0

124

13,200

10.9

49,485

11.5

1,09,632

13.0

26

13,560

14.2

48,728

10.9

1,01,914

11.4

11,591

13,243

11.3

43,332

6.6

83,972

7.1

Axis Long Term Equity Fund

33

13,191

10.9

49,223

11.3

1,09,524

13.0

Birla Sun Life Tax Relief 96

24

13,204

11.0

48,693

10.9

1,02,879

11.6

Kotak Taxsaver

33

13,343

12.3

47,203

9.7

92,467

9.2

296

13,284

11.7

46,426

9.1

97,609

10.4

31

12,985

9.0

46,210

8.9

96,910

10.2

8,637

13,097

10.0

41,417

4.9

79,708

5.9

Funds would have grown to

Large-cap funds
SBI Bluechip Fund

BSE Sensex
Mid-cap funds

BSE Midcap
Multi-cap funds

ICICI Prudential Value Discovery Fund

Kotak Select Focus Fund
BSE 500
Tax-saving funds

ICICI Prudential Long Term Equity Fund

(Tax Saving)
BNP Paribas Long Term Equity Fund
Nifty 50
(*invested on 1st day of every month)

We will be showing compounded annualised returns for three years and five years from now on.

Sharekhan

August 11, 2016

Mutual Funds

Sharekhans top SIP fund picks

IDFC Premier Equity Fund

Objective

Key features

The investment objective of the scheme is to generate longterm capital appreciation from an actively managed portfolio of
predominantly equity and equity related instruments. The scheme
portfolio would acquire, inter alia, small and medium sized
businesses with good long-term potential, which are available
at cheap valuations. Such securities would be identified through
disciplined fundamental research, keeping in view the mediumterm to long-term trends in the business environment.

Fund category
Launch date
Minimum investment
Load structure

Fund manager
Latest NAV (gr)
Latest NAV (div)
Expense ratio (%)
AUM
Benchmark Index

Schemes performance
IDFC Premier Equity Fund

Mid Cap Category Average

37.4

40.0
35.0

30.3

30.0
25.0
20.0
15.0

S&P BSE 500

Mid-cap
September 28, 2005
Rs10,000
If redeemed bet. 0 days to 365 days
exit load is 1%
Anoop Bhaskar, Punam Sharma
Rs78.4
Rs33.1
2
Rs6,042.4 cr
BSE 500

14.4

17.2

18.6

15.7

10.0

2.6

5.0

Holdings by market cap

6.3

18.7

20.9 20.0

20.2

15.0

Particulars

10.2
3.2

0.0
6 Months

1 Year

3 Years

5 Years

Since
Inception

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

13.7

Nifty Free Float Midcap 100

23.8

Nifty Free Float Small cap 100

11.1

BSE Sensex

Style box analysis

Nifty 50

Top 5 holdings

18.5

Top 10 holdings

34.4

Large-cap

Top 10 stock holdings (total no. of scrips: 51)

Mid-cap
Small-cap

Company name

Growth blend value

Top 5 sectors
Financial Services

16.0

Services

15.4

Consumer Goods

14.7

% of net assets

Bharat Financial Inclusion

3.92

Vardhman Textiles

3.89

Maruti Suzuki India

3.83

Blue Dart Express

3.53

Va Tech Wabag

3.31

Voltas

3.27

Fag Bearings India

3.23

Automobile

8.0

Asian Paints

3.22

Textiles

7.9

Ashok Leyland

3.15

Gujarat State Petronet

3.10

10

15

20

Scheme analysis
With more than ten years of experience, the fund has been a good performer in comparison with the benchmark index, S&P
BSE 500. Despite the volatility and uncertainties in the market, the fund has performed better than its benchmark index, giving
returns of 30.3% over the last three years as against 18.6% return given by the benchmark index. Over the longer term horizon of
five years, the fund has grown at 18.7% compounded annual growth rate (CAGR) while the S&P BSE 500 Index and the category
average have grown at 10.2% and 20.2%, respectively.
The fund currently has about 51 stocks in its portfolio. It has nearly 89% of its net assets exposed to equity while the rest is
exposed to other money-market instruments. The top ten stocks form about 34% of the portfolio. The fund has invested nearly
16% of its funds in the Financial Services sector followed by Services and Consumer Goods with 15% and 14.7% allocations,
respectively.

Sharekhan

August 11, 2016

Mutual Funds

Sharekhans top SIP fund picks

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in the future.
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Sharekhan

August 11, 2016