Top 5 Performing Equity Diversified Funds in Long Term Performance

Scheme	Corpus	Nav	3Y	5Y	€10Y
SBI - M Sector Fund Umbrella Contra (G)	3380.87	54.15	15.42	26.46	27.47
Reliance - Vision Fund (G)	3796.79	247.13	13.36	21.79	25.10
Reliance - Growth Fund (G)	6866.39	427.63	18.07	27.95	24.79
HDFC - Equity Fund (G)	5478.29	229.70	17.76	26.53	23.12
HDFC - Top 200 Fund - (G)	6130.38	178.39	20.29	26.45	22.03

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Mutual Fund Weekly Update 2 Mar'2010

Recommended Debt Products

Debt Market Scenario

The steepness of yield curve at shorter end of Maturity presents a good opportunity to lock in debt products positioned to take advantage of current high yield scenario. This trend is generally visible during the last quarter of financial year when short term interest rates tightens. We would recommend investment in the following products, which aims to benefit from high accrual.

AAA Corporate Yield Curve

Source: Bloomberg

ICICI Prudential Medium Term Plan - Investment Time Horizon - 6 Months

- One Year P1+ CP rates are at 6.70% with spread of over 100 bps over 3 Months P1+ CP
- Gives good carry opportunity for investment time horizon of 6 Months 
- Portfolio will primarily consist of high quality papers maturing between 9 to 12 Months
- Potential mark to market gains if rates fall.
- The subscription may be closed at a later date, to protect interest of existing investors 

ICICI Prudential Long Term Plan - Investment Time Horizon - 1.5 Years

- Three year AAA rated bond are at 8% with spread of 130 bps
- Market appears have priced in the potential rate hikes
- Portfolio will primarily consist high quality debt papers (PSU & Others) with maturity ranging 
 from 2.5 to 3 years.
- The portfolio aims to take ride down the yield curve for potential capital gains.
- One year down the line two year rates have to be at about 8.50% to equal one year return
- Long Term Plan can offer potentially better return with limited risk for investors with a time horizon  of 18 months.

Attached please find detailed note on each of the above product for your kind reference. 

For any queries or feedback, please write to us at investorspleaselisten@in.com or get in touch with your Relationship Manager @ 0-9818269396

HDFC TAX SAVER Dividend @ 60% on 4Mar

HDFC MF declares dividend in the schemeHDFC TAX SAVER  :

 

 

 

Dividend @ 60%(Rs 6 per unit)

Record Date :March 4 ,2010

India Economics

·         The growth in non food credit picked up marginally to 15.7% during the fortnight ended February 12, 2010. The growth in deposit mobilization also remained lower at 16.7%.

·         The CD ratio also inched up to 71.0% during the week ending February 12, 2010. The incremental CD ratio also increased to 66.0% during the week ending February 12, 2010.

·         The call rates continue to hover around the lower end of the LAF corridor. The spread between call money and reverse repo rates was 2bps as on February 25, 2010.

·         Short end of the yield curve move up by 25-28ps over last month in line with of tightening of monetary policy. The 10 year bond yields stood at a 7.8% as on February 23, 2010 while 1 year bond yield stood at 5.30%

·         The government announced net government borrowing of Rs3.5tn and estimated the fiscal deficit at 5.5% for FY11, in the Budget.

·         Events to watch – India foreign trade data & industrial production, Japan GDP and industrial production

 

Budget 2010-11 : Post Budget Analysis

Budget 2010-11 Highlights

q   The fiscal deficit of 5.5% for FY11 is better than our expectation of 5.7%. The roadmap to reduce it further to 4.8% and 4.1% in FY12 and FY13 is welcome

q   Govt borrowings capped at Rs3.5 tn; +ve

q   Indirect tax: Rollback of 2% is as per market expectation

q   No change in service tax is a positive surprise

q   Reduction in surcharge from 10% to 7.5% +ve, but MAT increase from 15% to 18% marginally  -ve

q   Overall, we believe that the budget was positive for the economy/market and there was no major negative surprise

q   However, after the initial euphoria, market will start following the fundamentals of the economy, corporate earnings and the global events

However, the real debate is:

q   Whether the fiscal deficit will slip beyond 5.5%?

q   Whether the revenues targets are overstated and the expenses are understated?

q   Why there was no commitment in the FM's speech to curb the inflation?

Launch of Franklin Templeton Fixed Tenure Fund (FTFTF) - Series XII - Plan C

Given our recent success in Fixed Tenure Fund NFOs, we are launching Franklin Templeton Fixed Tenure Fund (FTFTF) - Series XII – Plan C (5 year plan).   

The product with its hybrid structure is ideal for investors with a moderate risk profile and for those who are looking for an investment horizon of 5 years. The FTFTF series has delivered a good performance as can be seen from the track record of some of the earlier funds that have been in existence for more than 3 years  –

As of January 29, 2010	Last 1 Year	Last 3 years **	Since inception **
FTFTF - Series I	21.86%	9.08%	12.19%
Benchmark*	22.85%	8.22%	10.35%
FTFTF - Series II	29.10%	10.56%	11.89%
Benchmark*	22.85%	8.22%	9.45%
FTFTF - Series IV	23.30%	8.04%	8.99%
Benchmark*	22.85%	8.22%	8.78%
FTFTF - Series VI	24.59%	7.75%	9.43%
Benchmark*	22.85%	8.22%	9.25%

Past performance may or may not be sustained in future. *25% S&P CNX 500 + 65% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index; ** Compounded and annualised returns based on Growth Plan NAVs as on January 29, 2010: FTFTF – Series I: Rs.17.1820, FTFTF – Series II: Rs.16.3080, FTFTF - Series IV: Rs.14.0069, FTFTF - Series VI: Rs.13.6478. Inception date: FTFTF – Series I: 18.5.2005, FTFTF – Series II: 23.9.2005, FTFTF - Series IV - 3.3.2006, FTFTF Series VI – 18.8.2006.

Given below are the key details :

NFO Date :                                              : February 19, 2010 – March 31, 2010

Duration of the fund                                  : 5 years

Allotment Date                                       : April 23, 2010

Choices/Minimum investment                 : Growth and Dividend Payout options / Rs.10,000

To Invest Call: 0-9818269396