NFO Period: 20 th October to 3 rd November 2015 The Product is suitable for investors who are seeking* Riskometer Long term wealth creation solution A close ended equity fund that aims to provide capital appreciation by investing in equity and equity related securities with focus on riding business cycles through dynamic allocation between various sectors and stocks *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Why Equ quiti ties es Now ow Indian an Economy y to wi witne ness ss fas astest st gr growt wth h in n Demography is India’s the world as as pe per IMF F unique un ue ad advan antage age estimates mates Case se fo for Investing In esting Historic Hi rically ally Mar arket t Contin inuous ous improvem vement ent correc ectio tion n has as pr provid ided ed a a in Ma Macro Economic mic good investm estmen ent t fac actors rs opportun tunity ity IMF: International Monetary Fund
Global GD Gl GDP Gr Growth-Ind ndia ia Wel ell Placed ed • India a has th the high ghest est growth th rate te globally lly • Ch China na slow owing ing down is favo vourab urable le for or Indi dia Data Source: Morgan Stanley Research and Bloomberg ,GDP: Gross Domestic Product. e: Estimated, US: United States, UK: United Kingdom, EA: Euro Area
Demographics In India’s Favour E India is all set to reap the Demographic Dividend in times to come when compared with rest of the World Data Source: Barclays Research. IN: India, BR: Brazil, CN: China, ID: Indonesia, KR: South Korea, US: United States of America E: estimate
Falling ling Markets ets Are e Bu Buying Opportu tunitie ities S&P BSE S&P BSE Absolute Absolute Date Returns Recovery Time Months Sensex Sensex Levels Returns Levels 11-Apr-00 5542 -53.08% 19-Dec-03 27 5541.35 113.12% 21-Sep-01 2600 14-Jan-04 6194 -27.27% 30-Nov-04 7 6234.29 38.38% 17-May-04 4505 10-May-06 12612 -29.20% 13-Oct-06 4 12736.42 42.63% 14-Jun-06 8929 08-Jan-08 20873 -60.91% 04-Nov-10 20 20893.57 156.04% 09-Mar-09 8160 05-Nov-10 21005 -26.25% 09-Dec-13 24 21326.42 37.67% 16-Dec-11 15491 29-Jan-15 29682 ? ? -13.39% 15-Sep-15 25705 Past performance may or may not be sustained in future. Data Source: MFI Explorer
Macr cro o Eco conom omic ic Fact ctors ors Ha Have e Improved ved Signific ficantl antly Indicato cators rs 201 013 201 015 CPI I inflation flation 9.9% 3.66% WPI I Inflation flation 5.2% -4.95% Fx Reserve erves s (US USD D Bn) 284.64 350 350 CAD D (% of GDP) P) 4.90% 1.20% Fiscal cal Deficit ficit (% of GDP) P) 5.43% 3.80% (BE) E) Oil il Prices ces USD/ D/bbl bbl 102 53.05 RBI pol olicy icy rates tes 7.25% 6.75% 10yr r GOI 7.46% 7.54% Political litical Scenar enario io Uncertain Stable able Source: Bloomberg, CPI Consumer Price Index, WPI: Whole ale Price Index, CAD: Current Account Deficit GDP: Gross Domestic Product, GOI: Government of India, Fx : Foreign Exchange , BE: Budget Expectation.
India - Strong g case se for investin esting India ian eco conomy y is expected cted to see sustain ined ed leve vels ls of high gh gr growth h owing g to Increase ease in Increase crease in Benefits nefits from m spending ding by Urban ban fall l in interest terest Gove vernm rnment. ent. consumption. nsumption. rate te
Opp ppor ortu tunities nities with thin in Manuf ufac acturing turing Secto tor IIP witnessed the growth of 6.4 % in Aug’15, the fastest pace in nearly 3- years indicating positive sentiment for Manufacturing sector . GOI : Government of India
Key Secto tor r th that t cou ould ld be benefit fit from om Increa rease se in Governme ernment nt spending ing Roads Railways Ports
Road Sec ector-Key ey Be Benef eficiar iciary y from Incr In creas ease e in Go Gover ernment nment Spe pendi ding ng Huge Opportunity in Roadways Sector Building a vast Road Network across the country is one of the Top Priorities of the Government Source: Edelweiss Research, NHAI: National Highway Authority of India E- Estimated
Railway ways-Key ey Be Benef eficiary iary from In Incr creas ease e in Go Gover ernment nment Spe pendi ding ng FY2010-14 FY2015-19 E 1,930 1,993 2,000 1,270 1,020 1,000 1,000 801 Rs(Bn.) 650 390 390 381 353 177 144 132 125 50 43 9 0 0 decongestion expansion Safety IT / research Passenger High Speed Rail redevelopment / National Projects Others amenities Rolling Stock Network (NE& Kashmir) logistic parks Network & Elevated corridor Station Railways to see all round increase in expenditure under Make in India Initiative. Source: Indian Railways, E: Estimated, NE : North East
Ports s Sec ector-Key ey Be Benef efici iciary ary from m In Incr creas ease e in Go Gover ernment nment Spe pendi ding ng Conta tain iner r Port t Capacity: ity: India a Laggin ging Behind ind Building Robust Port Capacity Will Be Critical To Reduce Logistics Cost And A Key Focus by Central Government. Source: JM Financial, TEU: Twenty Foot Equivalent Units CHN: China, USA: United States of America, KOR: South Korea, MYS: Malaysia, JPN: Japan, DEU: Germany, IND: India, IDN: Indonesia, GBR: Great Britain, BRA: Brazil, ZAF: South Africa, RUS Russia.
Opp ppor ortu tunitie ities: s: Rev eviv ival al In In In Indi dia Capex ex Cycle Improvemen provement t In Pro rojec jects ts Unde nder r Implementation plementation CMIE: Center for Monitoring Indian Economy.
Opp ppor ortu tunitie ities: s: Rev eviv ival al In In In Indi dia Capex ex Cycle Increme crement ntal l Gr Growt owth h in New Investme vestment nt Projec jects ts CMIE: Center for Monitoring Indian Economy
Opportu tunitie ities: s: Urban n Consu sumpti mption on Urb rban an Consump onsumption tion hol olding ing up better etter than n Rura ral l Consum nsumption tion Urban Consumption Rural Consumption MMA: Monthly moving average. CEIC: Census Economic Information Center.
Opportu tunitie ities: s: Urban n Consu sumpti mption on Electricals & • With Government focus on Housing for all and Developing Smart Cities the demands Laminates for electrical and laminate products is expected to pick-up. Quick Service • With consumption preference of young India shifting towards fast foods & fine Restaurants dining, demand for QSR’s is expected to (QSR) further pick-up. • With government initiatives towards Sanitary Ware & building Smart cities and Urban Tiles Consumption picking up, companies associated in such businesses likely to benefit • Proposed abolition of state taxes and octroi with the Implementation of Goods and Logistics Services Tax (GST)to benefit the Organized Logistic players
Opportunities – Fall in interest rates Benchmark Yield Repo rates have come down by 125 bps this calendar year. With the fall in interest rates, G-sec yields have come down and are expected to correct further. This bodes well to enhance growth as demand is expected to pick up along with increase in investments by Public & Private Sectors. Source: RBI
Opp ppor ortu tunitie ities: s: Ho Housi sing Finance ce and d NBFC’s. Lower cost of funds with falling Interest rates Rationalisation of Risk -weights by RBI has resulted in competitive lending rates as compared to banks Competitive edge over banks as lower lending rates could help keep market share Intact Volumes set to grow with correction In property prices NBFC’s: Non Banking Financial Companies
Opp ppor ortu tunitie ities s With Rev evival val in Bu Busi sines ess s Cycle. e. Constr tructio tion n Electr tric ical al Consum umer r Watch h Company any Cement nt Compan any Company any Product uct Compan any • One of the leading • One of Largest • One of the Low • An established lighting companies watch makers with Cost cement player in Road and producer of the world national and Highway International Construction with • Presence in more • Manufacturing Presence. more than 20 years than 30 countries Capacity of 8.4 of experience. across the globe. • Wide Product Mix, million MT with presence in • One of the leading • Has more than 15 • Massive Mass, Mid, company in Manufacturing expansions in Premium & Luxury providing Facilities across the pipeline in East Market with focus Engineering, globe. India. The on differentiation. Procurement & company is Construction (EPC) • Has expanded in expected to reap services. international the benefits of territories with • Pan India execution capacity utilization presence in more capabilities. and improvement than 30 countries. in operational efficiency The Chart is to indicate opportunities in current scenario . Data is available in public domain. There is no certainty of making investment in any of the Companies in the referred sector. Investment will be dependent on prevailing market conditions and opportunities available for investment ,MT: Metric Ton
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