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April 20, 2012

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 Fund ranking procedure >> DSP Black Rock Top 100 Equity Fund

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Mutual Funds

Mutual Gains

Top rated equity mutual funds

Data as on April 17, 2012

Scheme Name

Stars rating

NAV (Rs)

6 mths

Returns (%) 1 yr 3 yrs

5yrs

Since inception

Large-cap funds
ICICI Prudential Focused Bluechip Equity Fund - Ret Franklin India Bluechip UTI Wealth Builder Fund - Series II DSP BlackRock Top 100 Equity Fund Birla Sun Life Top 100 Fund Indices BSE Sensex 16.2 210.7 21.0 100.6 22.2 17,357.9 3.6 3.7 5.8 8.1 5.9 2.0 -4.7 -4.2 4.8 -1.3 -5.1 -10.4 24.8 22.8 21.7 21.0 20.4 16.3 -10.6 -11.7 7.3 5.0 13.1 25.2 24.9 28.8 13.1

Mid-cap funds
SBI Magnum Sector Funds Umbrella - Emerg Buss Fund HDFC Mid-Cap Opportunities Fund Religare Mid Cap Fund UTI Mid Cap Fund DSP BlackRock Small and Midcap Fund Indices BSE MID CAP 6,435.2 4.0 -10.6 22.8 2.7 46.9 16.7 14.7 31.2 11.7 7.4 9.1 4.3 2.5 2.9 13.3 6.5 2.4 -3.1 -2.7 41.7 35.9 34.7 30.2 29.5 9.9 --8.5 -22.6 11.2 7.9 16.6 3.3

Multi-cap funds
ICICI Prudential Discovery Fund Reliance Equity Opportunities Fund SBI Magnum Global Fund 94 Tata Dividend Yield Fund UTI Opportunities Fund Indices BSE 500 6,789.0 3.6 -9.7 18.9 5.6 49.2 37.1 58.3 34.3 28.6 12.0 8.4 4.7 7.4 6.8 -0.7 2.5 3.9 0.6 3.2 36.0 34.7 33.9 30.4 26.3 14.1 12.0 6.5 14.6 15.7 23.1 20.4 13.4 18.1 16.9

Tax saving funds

Canara Robeco Equity Taxsaver Reliance Tax Saver (ELSS) Fund Franklin India Taxshield Reliance Equity Linked Saving Fund - Series I BNP Paribas Tax Advantage Plan Indices CNX500 25.9 21.9 212.3 14.9 14.5 4,232.1 5.6 12.1 4.2 12.4 5.1 3.6 -1.3 2.1 -0.7 0.3 3.7 -9.5 27.8 26.3 24.9 24.2 21.2 17.4 -9.8 11.3 -3.0 5.2 34.6 12.7 26.4 10.3 6.1

Thematic funds
Fidelity India Special Situations Fund Birla Sun Life India GenNext Fund UTI India Lifestyle Fund Sundaram Rural India Fund DSP BlackRock Natural Resources & New Energy Fund - Ret Indices S&P Nifty 5,289.7 3.3 -9.1 16.0 5.8 18.2 25.6 12.3 14.8 13.0 6.8 7.0 5.0 2.4 -7.6 -3.7 4.1 3.9 -4.1 -12.3 25.9 25.5 23.5 23.1 18.6 7.8 10.0 -6.0 -10.7 15.0 4.5 6.8 6.8

Balanced funds
HDFC Prudence Fund HDFC Balanced Fund Tata Balanced Fund Canara Robeco Balance ICICI Prudential Balanced Indices Crisil Balanced Fund Index
Note: Returns < 1 year - absolute, > 1 year - CAGR (compounded annualised growth rate)

217.0 59.1 86.3 63.0 49.1

5.8 6.5 7.3 5.6 7.4 3.4

0.3 4.6 3.4 1.9 4.4 -3.8

28.1 27.4 23.4 21.0 20.2 12.6

13.8 14.1 11.2 11.4 7.3 7.1

20.1 16.5 16.1 10.3 13.6

Sharekhan

April 20, 2012

Mutual Funds

Mutual Gains

DSP Black Rock Top 100 Equity Fund

Data as on April 17, 2012

Fact sheet The fund seeks to generate capital appreciation from a portfolio that is largely made of equity and equity related securities of the 100 largest corporates, by market capitalisation, listed in India.

Key features Fund category Launch date Minimum investment Load structure Fund manager Latest NAV (gr.) Latest NAV (div.)
Large cap fund March 10, 2003 Rs5,000 Entry load is nil / if redeemed between 0 year to 1 year, exit load is 1% Apoorva Shah 100.6 20.2 1.8500 (Feb 2012) Rs3248.40 crore BSE 100

Scheme performance
35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 6 Months -1.3 1 Year -5.9 -9.2 3 Years 5 years Since Inception 8.1 4.4 3.6 21.0 18.2 17.7 11.7 6.7 6.0 11.2 DSP Black Rock Top 100 Equity Fund Large cap funds Category Average BSE 100 28.8 21.6

Expense ratio AUM (Mar 2012) Benchmark Index

Holding by market cap Particular BSE Sensex BSE Midcap BSE Small cap BSE 100 Top 5 holdings

% 56.4 0.0 0.0 84.1 30.5 51.9

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

Style box analysis

Large Cap

Top 10 holdings

Top 10 stock holdings (total no. of scrips: 35)

Mid Cap

Company name
Small Cap
Growth Blend Value

% of net assets 7.3 6.6 6.2 5.5 4.9 4.6 4.4 4.2 4.2 4.0

Reliance Industries Wipro

Top 5 sectors
Consumer Non Durables Auto Softw are Petroleum Banks 0% 5% 10% 15% 6% 11% 12% 12% 19% 20%

ICICI Bank Kotak Mahindra Bank Bharat Petroleum Corporation Larsen & Toubro Tata Consultancy Services Housing Development Finance Corporation Hindustan Unilever State Bank of India

Scheme analysis
DSP Black Rock Top 100 Equity Fund has consistently shown a superior performance since its inception in March 2003, giving nearly 29% (compounded annual growth rate [CAGR]) returns to the investors outperforming both the category peers and the benchmark index, BSE 100, which managed to post 11.2% and 21.6% returns respectively. Given the current turbulent market conditions where the category average has lost about 6% over the past one year and the benchmark index has declined by about 9%, the fund has shown a phenomenal ability to contain its losses to just 1.3% during the same period. Further, over a three-year period, the fund has given exceptional returns of 21% (CAGR) as against 18.2% and 17.7% by the category average and the benchmark index respectively. The portfolio is actively managed and well diversified with over 35 scrips wherein the top ten stocks form 52% of the portfolio. The fund has invested 53% of its funds in the banking sector followed by non-banking financial institutions and housing finance companies with 11% and 3% allocation respectively.
Sharekhan 3 April 20, 2012

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 oneyear, two-year and three-year returns, the Sharpe ratio and the Information ratio. 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. 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 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.

Sharekhan mutual fund ranking scale 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

Every individual has a different investment requirement, which depends on his financial goals and risk-taking capacities. We at Sharekhan first understand the individuals investment objectives and risk-taking capacity, and then recommend a suitable portfolio. So, we suggest that you get in touch with our Mutual Fund Advisor before investing in the best funds.

Disclaimer: 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.

Disclaimer
This document has been prepared by Sharekhan Ltd.(SHAREKHAN) This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use is prohibited. Kindly note that this document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Though disseminated to all the customers simultaneously, 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 from publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on 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. We do not represent that information contained herein is accurate or complete and it should not be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone betaken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it 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 its 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 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. SHAREKHAN & affiliates may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell or may be materially interested in any of the securities mentioned or related securities. 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. Any comments or statements made herein are those of the analyst and do not necessarily reflect those of SHAREKHAN.

Sharekhan

April 20, 2012