FundsIndia receives a second round of Funding

1. T h e m o n t h l y n e w s l e t t e r f r o m F u n d s I n d i a
FundsIndia receives a second round of Funding
Srikanth Meenakshi
Greetings from FundsIndia!
Earlier last week, we made the happy announcement of the successful completion of a second
round of funding in FundsIndia. We sent out an email to all our customers and the news media
carried the details in print and online publications (In case you have not read it, you can find it
here: https://www.fundsindia.com/content/jsp/corporate/latestNews7.jsp)
Many of you have written in congratulating us and wishing us the best. Thank you! For small,
early-stage companies such as FundsIndia, our customers are more than just consumers of our
services – they are well-wishers who take an active interest in seeing us grow and do well. We would not be in the posi-tion
we are in today without the support of such customers. As we said in the email, we are grateful for it and re-dedicate
ourselves to the cause of creating the best online investment platform in the country.
Some of our customers have written in asking about our plans for the money and how we are going to use it to grow the
company. Simply put, we are going to use the money to enhance the experience of investing in meaningful and enriching
ways for our customers. This includes creating better ways to navigate and find funds, smarter systems to provide you
advice, more value-added services, more useful reports, support for more ways to access your portfolio such as mobile,
tablets etc. We are also actively developing ways and means to make the FundsIndia experience as fully digital (and
paperless) as possible. You may have already noticed our efforts with respect to open ECS mandates and ISIP registra-tions.
A sizeable sum of money would also be spent on expanding our customer base such that more investors around
the country experience our unique platform.
In all these efforts that we take, we would really appreciate if you could keep those feedbacks coming in through the
mails and support tickets. Throughout the history of our company, customer feedback has made the single biggest differ-ence
in terms of the development of our platform, and we hope that would continue. Of course, referrals and good word-of-
mouth recommendations are always welcome too! :-)
Volume 4, Issue 8
09—Aug—2012
Inside this issue:
Funds India re-ceives
second
round of Funding
- Sr ikanth
Meenakshi
1
The month ahead
- Equi ty recom-mendat
ions -
B.Kr ishna Kumar
2
Consis tent Per -
formers -
Funds India Re-search
4
Horses for
Courses
—Dhi rendra
Kumar
6
The current month also looks to bring interesting developments in the regulatory front. Around the middle of the month, we are told, there would be a meeting at
SEBI which would come out with directions for the benefit of the mutual fund industry. Suffice to say, we’ll be following the events closely, and report both the
news and our opinions on any outcome.
Happy Investing!
Srikanth Meenakshi
For FundsIndia Team
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

2. Volume 4, Issue 8 Page 2
The month ahead - Equity recommendations
B.Krishna Kumar
July turned out to be an uneventful one for the equity and currency markets. The Nifty was stuck in a narrow trading range in July and so did the In-dian
Rupee in relation to the US Dollar. The rainfall this year has been below normal and this has raised concerns about inflation remaining stubborn
at higher levels.
Foodgrains, oilseed and sugar prices have been firming up and the situation could get worse if the rainfall deficit worsens going forward. International
crude oil futures have recovered off their recent lows and any further rise would escalate the subsidy burden.
The change of guard at the finance ministry is widely expected to bring in some bold measures towards tackling inflation and address the fiscal deficit.
Any progress on this front is likely to cheer the stock markets.
The 10-year bond yield has stabilized around the 8% mark and has staged a sharp recovery in the past few days. This is a sign that the bond market is
not expecting the Reserve Bank of India to cut rates any time soon.
From a technical perspective, the Nifty managed to seek support near the 5,000-mark and has since registered a sharp recovery. The recovery has
pushed the index to a crucial area of resistance at the 5,270-5,300 range.
At the juncture, we remain on the sidelines watching what the Nifty is up to. Rather than second guessing the direction of the next significant move, it
would make sense to let the Nifty do take the lead and an appropriate action can always be taken thereafter.
From the daily chart of the Nifty, it is apparent that the 5,000-5,050 range is a crucial support zone. A break below the lower blue line marked in the
chart would be a sign of weakness and we would expect further weakness thereafter.
As long as the support zone is intact, we would expect prices to seek higher levels. But, before putting the money at risk, it would make sense to watch if
the Nifty has the momentum to get past the resistance level of 5,300. Beyond 5,300, the index could rally to the next major resistance at 5,650.
This month, we recommend two stocks from the mid-cap space that look good to deliver returns of over 10% from a short-term perspective. Investors
may use any price weakness to buy Indian Bank and Crompton Greaves.
From the daily chart of Indian Bank featured below, it is evident that the stock has sought support at the crucial support zone of Rs.167-170 range. The
price action in the past few days suggests that the short-term trend is bullish and a rally to Rs.220 appears likely.
Turning attention to the individual stocks, we cover the outlook for heavyweights from the four-wheeler space. Tata Motors and Maruti-Suzuki are the
candidates we discuss this month. Both stocks have been in a downtrend in the past few months and are traded near their crucial support levels.
After being a star performer, Tata Motors has flipped roles and has seen a sharp cut in the recent weeks. Have a look at the daily chart of the stock fea-tured
below.
Continued on page 3 . . .
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

3. Volume 4, Issue 8 Page 3
Cont inued f rom page 2 . . .
As highlighted in the chart, the stock has managed to stage a minor recovery off the significant support level at the Rs.200-210 zone. In a worst case
scenario, there is a possibility of a slide to the Rs.180-190 range.
Given this scenario, we advise investors to use a SIP-kind of an approach to accumulate shares of Tata Motors, from a medium-term perspective. We
expect returns in excess of 30% for a holding period of 8-12 months. The stop-loss for all long positions may be placed at Rs.150.
From the daily chart of Maruti-Suzuki featured below, it is evident that the stock has sought support at the upsloping red trendline. In a worst-case
scenario, we would expect price to fall to the long-term support at 1,000-1,010 range.
A fall below the red trendline would open up the possibility of a slide to the above mentioned support zone. Similar to Tata Motors, we suggest a SIP
approach in Maruti as well. Use weakness to build exposures in the stock for a target of Rs.1,300, to begin with.
All bets would be off if the stock were to close below the stop-loss level of Rs.890. Those planning to buy Maruti must take cognizance of this stop loss
and exposures must be pared if the stock closes below the stop loss level.
Mr. B.Krishnakumar is the Head of Equity Research at FundsIndia. With extensive experience in tracking the stock market (over 15 years) he has
worked with companies such as ’The Hindu , Business Line’ and ’Dow Jones Newswires. He will be contributing to our monthly newsletter with his
stock market outlook which shall hold good for a month. Mr.B.Krishnakumar can be reached at b.krishnakumar@fundsindia.com
Mr.B.Krishna Kumar also hosts a weekly webinar that discusses the market outlook for the following week. You can register
for the webinar by clicking here: https://www4.gotomeeting.com/register/927617871
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

4. Volume 4, Issue 8 Page 4
Consistent Performers
FundsIndia Research
In this page, we feature mutual fund schemes in popular categories that have stood the test of time and delivered performance consistently. These schemes have consistently
featured in the top quartile of their category in terms of performance over multiple time periods in the past. For equity funds and income funds, we have chosen three, five
and seven year time periods for such ranking. For short term and ultra-short term funds, we have chosen shorter time frames. Please note that in some cases, we have
pruned the list for length - we have removed institutional schemes and those that have very high initial investment amounts (in the debt side) from this list. This list will be
updated every month, although we do not anticipate significant changes on a month-on-month basis. Rankings data for this report has been sourced from Value Research
Online.
Large Cap Funds
Fund Name
3-Y Re-turn
(%) 3-Y Rank
5-Y Return
(%) 5-Y Rank
7-Y Re-turn
(%) 7-Y Rank Average VRO Rating
Franklin India Bluechip 9.15 4/63 6.75 3/43 16.21 2/37 6.24% YYYYY
SBI Magnum Equity 8.03 7/63 5.59 6/43 16.21 3/37 11.06% YYYY
HDFC Index Sensex Plus 7.45 12/63 5.63 4/43 14.91 4/37 13.05% YYYY
ICICI Prudential Top 100 8.83 5/63 5.33 7/43 14.59 6/37 13.48% YYYY
Large & Mid Cap
Fund Name
3-Y Re-turn
(%) 3-Y Rank
5-Y Return
(%) 5-Y Rank
7-Y Re-turn
(%) 7-Y Rank Average VRO Rating
UTI Dividend Yield 11.13 8/63 10.93 2/46 16.83 5/30 11.24% YYYYY
ICICI Prudential Dynamic 11.62 5/63 7.33 9/46 17.71 2/30 11.39% YYYY
Canara Robeco Equity Diversi- 11.62 4/63 9.11 4/46 16.09 8/30 13.90% YYYY
HDFC Growth 10.28 10/63 7.12 10/46 17.19 3/30 15.87% YYYY
Mid & Small Cap
Fund Name
3-Y Re-turn
(%) 3-Y Rank
5-Y Return
(%) 5-Y Rank
7-Y Re-turn
(%) 7-Y Rank Average VRO Rating
Reliance Equity Opportunities 19.12 4/51 9.46 7/41 18.08 1/23 9.75% YYYY
ICICI Prudential Discovery 16.45 8/51 11.52 3/41 16.67 3/23 12.02% YYYYY
Multi Cap
Fund Name
3-Y Re-turn
(%) 3-Y Rank
5-Y Return
(%) 5-Y Rank
7-Y Re-turn
(%) 7-Y Rank Average VRO Rating
HDFC Equity 10.78 3/34 8.15 4/30 17.77 1/20 9.05% YYYYY
Hybrid: Equity-oriented
Fund Name
3-Y Re-turn
(%) 3-Y Rank
5-Y Return
(%) 5-Y Rank
7-Y Re-turn
(%) 7-Y Rank Average VRO Rating
HDFC Balanced 15.23 2/25 11.61 1/25 14.97 4/23 9.80% YYYYY
HDFC Prudence 13.49 3/25 10.31 4/25 17.15 1/23 10.78% YYYY
Canara Robeco Balance 11.26 6/25 9.12 5/25 16.31 2/23 17.57% YYYY
Tata Balanced 11.84 4/25 8.83 6/25 15.48 3/23 17.68% YYYY
Tax Planning
Fund Name
3-Y Re-turn
(%) 3-Y Rank
5-Y Return
(%) 5-Y Rank
7-Y Re-turn
(%) 7-Y Rank Average VRO Rating
Canara Robeco Equity Tax Saver 12.1 3/35 10.65 1/28 18.65 1/19 5.80% YYYYY
Franklin India Taxshield 11.59 4/35 7.62 5/28 14.88 4/19 16.78% YYYY
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

5. Page Volume 4, Issue 8 5
Continued from page 4. . .
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.
MIP
Fund Name
6-M
Return
(%)
6-M
Rank
1-Y Re-turn
(%)
1-Y
Rank
3-Y Re-turn
(%)
3-Y
Rank Average VRO Rating
DSPBR MIP 5.3100 4/63 10.29 1/61 7.44 12/49 10.83% YYYY
HDFC Multiple Yield Plan 2005 4.6100 15/63 7.7 14/61 10.39 2/49 16.95% YYYYY
Debt Short Term
Fund Name
3-M
Return
(%)
3-M
Rank
6-M
Return
(%)
6-M
Rank
1-Y Re-turn
(%)
1-Y
Rank Average VRO Rating
DWS Short Maturity Premium Plus 2.62 4/34 5.1300 3/33 10.14 3/31 10.20% Unrated
Debt Ultra Short Term
Fund Name
3-M
Return
(%)
3-M
Rank
6-M
Return
(%)
6-M
Rank
1-Y Re-turn
(%)
1-Y
Rank Average VRO Rating
Birla Sun Life Short Term Opportuni-ties
Ret 3.59 2/180 5.8400 2/178 10.75 5/176 1.69% YY
HDFC Floating Rate Income LT 2.8 8/180 5.8100 3/178 10.96 3/176 2.61% Y
IDFC Ultra Short Term 2.8 7/180 5.3700 13/178 10.42 16/176 6.76% YYY
Peerless Short Term 2.63 17/180 5.3400 15/178 10.59 7/176 7.28% YYYYY
Tata Fixed Income Portfolio Scheme 2.83 6/180 5.4600 5/178 10.15 41/176 9.81% Y
Taurus Short Term Income 2.59 25/180 5.2300 26/178 10.41 17/176 12.72% YYYYY
Tata Fixed Income Portfolio Scheme 2.62 21/180 5.4300 9/178 10.15 40/176 13.15% Y
JM Money Manager Super 2.58 30/180 5.2000 29/178 10.43 15/176 13.83% YYYYY
Templeton India Low Duration 2.54 45/180 5.2300 25/178 10.26 28/176 18.32% YYYYY
Birla Sun Life Floating Rate LT Ret 2.57 31/180 5.1900 33/178 10.17 37/176 18.93% YYYY
Debt Income
Fund Name
3-M
Return
(%)
3-M
Rank
6-M
Return
(%)
6-M
Rank
1-Y Re-turn
(%)
1-Y
Rank Average VRO Rating
Kotak Bond Deposit 3.72 2/97 5.82 3/91 12.69 2/89 2.54% YYY
Kotak Bond Regular 3.72 3/97 5.82 4/91 12.68 3/89 3.62% YYY
SBI Magnum Income 3.67 4/97 5.43 6/91 11.56 6/89 5.82% YYY
Birla Sun Life Medium Term Retail 3.51 6/97 6.05 2/91 11.18 10/89 6.54% YYYYY
IDFC Dynamic Bond Plan B 2.88 14/97 5.06 11/91 11.77 5/89 10.71% YYY
Templeton India Income Builder 2.78 20/97 5.49 5/91 11 13/89 13.57% YYYY

6. Volume 4, Issue 8 Page 6
Horses for Courses
Dhirendra Kumar
Before you look for the ‘best fund’, the first thing you need to figure out is the ‘type’ of fund you should invest
in…
When investors want to know which fund to invest in, they tend to ask the obvious question,
“Which fund should I invest in?” As an answer, they are looking for the name of the one fund that
is ‘the best one’, according to some nebulous definition of best that they have in their minds. But actually, it’s the wrong
question, or at least, that’s the wrong question to start with. If you start with that question and expect an answer in those
terms then there’s practically no chance of getting the right answer.
Actually, the right question is “What type of fund should I invest in”? Choosing the right fund is not a bottom-up activity
but a top-down one. The reason becomes self-evident when you pause for a moment and think about the original ques-tion,
“What fund should I invest in”? The most important word in that sentence is not ‘fund’ but ‘I’. There are many,
many funds that are good enough to invest in. The point is who is investing?
Depending on your circumstances, your financial goals, the time-horizon of your investments, different types of funds
will be suitable. Only after the type of fund is defined does the question of which specific fund come up. There’s an old
joke that if there is a race between five horses and five humans, then there’s very little point in trying to figure out which
human is the fastest. The choice of fund category is a little bit like that.
For example, suppose you have just sold some real estate and have a large sum of money that you don’t need for about a
year. Having decided to park the money in a mutual fund for the period you ask someone which is the best fund around
without defining your actual need. You are suggested a good mid-cap equity fund which has a five-star rating from Value
Research, into which you promptly invest the entire sum. A year down the line, the stock markets remain shaky and your
treasure shrinks by perhaps 10 or 20 per cent. Did you choose a bad fund? No, the fund you chose was fine. It’s just that
the type of fund chosen was utterly unsuitable for the purpose. For a predictable time horizon of one year, a Fixed Matur-ity
Plan (FMP) would have provided a reasonable return with negligible risk.
Conversely, suppose you are putting aside a certain sum of money from your monthly income for long-term savings,
which you may not need at least for a decade or more. In such a case, choosing anything but an equity fund is pointless.
The period is long enough for the volatility of the equity markets to be damped out. Since you will be investing gradually
in a monthly SIP, you will be able to earn returns that are actually better than the overall gains of the equity markets.
However, for such a purpose, a fixed income fund would be most unsuitable. In a high inflation environment like India,
fixed income rarely beats inflation and your money effectively becomes less over the years. Any equity fund, even a bad
one, would be better than keeping the money in a fixed-income fund or a bank deposit. This is literally true. Over the past
ten years, even the worst diversified equity funds like LIC Nomura Equity and JM Equity have given returns of 14 to 15
per cent per annum, which is far higher than any fixed income avenue could generate.
Syndicated from Value Research Online—Article can be viewed online here—http://www.valueresearchonline.com/story/
h2_storyView.asp?str=20609
Wealth India Financial Services Pvt. Ltd.,
H.M Center, Second Floor,
29, Nungambakkam High Road,
Nungambakkam,
Chennai - 600 034.
Phone: 044-4344 3100
E-mail: contact@fundsindia.com
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.