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Equity opportunity


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Equity opportunity

  1. 1. OpportunityA Bull market take birth from the depth of thebear trends.Greatest OPPOTUNITY arises out of the timesof worst crisis
  2. 2. Opportunity : GDP > Market CAP
  3. 3. Macro VariablesFalling Crude & GoldPricesReduction in CADCurrent Account DeficitCAD =Export - ImportAppreciating RupeeReduction in Crude/ Gold Import bill=falling Dollar * falling Crude/Gold pricesReduction in Fiscal DeficitFalling InflationReduction inInterest RateImprovement in GDPGoodforDurationbasedDebtProductsPositive for Equity
  4. 4. Phases of Economy
  5. 5. 2004 Vs 2013What has Happened Post SEP, 2004 ?
  6. 6. ???Dont wait until the dust get settledAs when the path will get clear the sensex willhave already moved ahead
  7. 7. 15 Years of Wealth Creation ThroughMutual Funds
  8. 8. Performance Snapshot of Lumpsum InvestmentDiversified equityFunds haveclearlyOutperformedSENSEXDiversified Equity Funds with track record of 15 years have delivered 22% CAGRAgainst SENSEX return of close to 12%. Lumpsum investment of Rs.1 lakh would haveGrown to Rs.25 lakhs in 15 years period. (Money multiplying by 25 times).No of schemes covered: 21
  9. 9. Performance of Schemes With 15 Year HistoryAvg Return of all equity funds With 15 yrs history is close to 22% (Tax Free).Even worstperforming fund has given 9% tax free return.Better than Bank F.D.A s of 31 -Dec -1 2 L um ps um R eturn C A G R V a lue of R s . 1 L a cS c hem e N a m e 1 0 Y rs 1 5 Y rs 10 Y rs 15 Y rsBirla S un Life Advantage Fund - Gr 20.93 19.60 6,68,868 14,65,439Birla S un Life Tax R elief 96 Fund - Div 21.69 27.34 7,12,113 37,53,813DS P BlackR ock E quity Fund - R eg. Plan - Div 29.27 21.85 13,03,099 19,38,130Franklin India Bluechip Fund - Div 26.06 33.35 10,13,382 74,97,134Franklin India Prima Fund Gr 27.49 27.10 11,34,387 36,49,079Franklin India Prima Plus - Div 26.68 26.26 10,64,340 33,03,595HDFC E quity Fund - Div 29.09 28.69 12,85,068 43,97,157HDFC Taxsaver - Div 29.11 31.87 12,87,060 63,41,472HDFC Top 200 Fund - Div 29.34 22.78 13,10,173 21,72,273JME quity Fund Growth Option 17.11 8.93 4,85,221 3,60,755Morgan S tanley Growth Fund - Gr 18.24 14.99 5,34,127 8,12,645Principal Personal Tax S aver 20.23 23.44 6,31,144 23,54,175R eliance Growth Fund Gr 32.16 27.46 16,25,550 38,07,226R eliance Vision Fund Gr 25.92 23.00 10,02,183 22,31,396S BI Magnum Multiplier Plus 93 - Div 27.67 17.49 11,50,505 11,22,053S BI Magnum Tax Gain Fund - Div 30.50 22.61 14,32,535 21,27,592S undaram Growth Fund Gr 22.61 16.51 7,67,819 9,89,573Tata E thical Fund - Gr 25.34 16.00 9,56,967 9,26,552Tata Tax S aving Fund - Div 23.33 22.04 8,14,118 19,83,960Templeton India Growth Fund Gr 25.38 18.62 9,60,025 12,95,295UTI Top 100 Fund - Div 19.76 11.03 6,06,901 4,80,402Avg R eturn 25.14 21.95 987884.99 2524272.42BS E S E NS E X 19.1 11.75 574392 530286
  10. 10. Becoming Crorepati Through SIPSIP Amt assumed at Rs.10000p.m.Avg Return of SIP in Last 10 Years : 17.36% CAGRAvg Return of SIP in Last 15 Years : 20.51% CAGRValue of Rs.10000 SIP in 10 Years : Rs.30.46 lakhsValue of Rs.10000 SIP in 15 Years : Rs.1.07 cr
  11. 11. SIP PerformanceA s o f 3 1 -D e c -1 2 S I P R e tu rn S I P V a lu eS cheme Name 1 0 Y rs 1 5 Y rs 1 0 Y rs 1 5 Y r sB irla S un L ife Advantage F und - G r 13.23 15.79 23,92,329 66,02,218B irla S un L ife T ax R elief 96 F und - D iv 14.59 21.11 25,72,980 1,05,39,858D S P B lackR ock E quity F und - R eg. P lan - D iv 21.50 22.12 37,33,902 1,15,26,279F ranklin India B luechip F und - D iv 18.89 23.21 32,42,803 1,26,96,379F ranklin India P rima F und G r 18.35 24.74 31,49,689 1,45,44,210F ranklin India P rima P lus - D iv 19.75 23.16 33,96,925 1,26,40,161HD F C E quity F und - D iv 21.42 25.97 37,17,784 1,62,24,070HD F C T axs aver - D iv 20.42 27.52 35,22,141 1,86,20,010HD F C T op 200 F und - D iv 21.41 23.50 37,15,774 1,30,27,460J M E quity F und G rowth O ption 8.72 10.84 18,82,852 43,11,789Morgan S tanley G rowth F und - G r 12.55 13.94 23,07,022 56,22,840P rincipal P ers onal T ax S aver 14.22 18.99 25,22,467 87,40,161R eliance G rowth F und G r 22.87 27.81 40,21,114 1,91,05,968R eliance Vis ion F und G r 16.65 23.71 28,74,028 1,32,72,638S B I Magnum Multiplier P lus 93 - D iv 20.15 19.55 34,71,127 91,82,510S B I Magnum T ax G ain F und - D iv 21.54 22.06 37,41,987 1,14,65,139S undaram G rowth F und G r 14.74 16.84 25,93,756 72,36,301T ata E thic al F und - G r 17.85 17.99 30,65,909 80,04,062T ata T ax S aving F und - D iv 15.20 17.28 26,58,563 75,20,599T empleton India G rowth F und G r 17.97 20.56 30,85,806 1,00,39,314UT I T op 100 F und - D iv 12.63 14.01 23,16,890 56,56,959Average R eturn 17.36 20.51 3046945 10789473B S E S E NS E X 13.93 13.99 2483599 5647188
  12. 12. The Journey Will Continue........
  13. 13. Dont Invest in Equity“As it happens, retail investors are helping markets more by staying out than by investing in equities. So from apurely selfish point of view, we (current equity market participants) do not mind if you stay away from equities.Keep your money in low interest bearing savings accounts and this will help banks raise cheap funds.Then, while you earn taxable 9% per year in fixed deposits and 4% in savings accounts, we will continue to buyHDFC Bank, IndusInd Bank, Yes Bank and the like, which are up 3.5 times, 11 times and 5.9 timesrespectively since December 2008. Also, remember to pay all your EMI installments on time so that retail loansmade by private banks do not get into trouble and we can continue do well owing their stocks.Indian retail investors are more or less completely out of equities and would rather buy gold instead. So keepbuying gold so that we can do better than you by owning stocks in Titan Industries and other jewellerycompanies. You should not care that at all that while the gold you bought is up 2.8 times in four years, the stockof Titan Industries, which sell gold to you is up 6.9 times during the same period. If Rakesh Jhunjhunwala hadbought physical gold instead of shares in Titan when he did, he would not be a billionaire today.In fact, go ahead and buy real estate, taking mortgages from HDFC and LIC Housing Finance. How else wewould have made 2.8 times and 5.7 times in these stocks in five years? And when you do buy these apartmentand houses, do insist on using the best construction material- cement, sanitary ware and so on. It is onlybecause you do not buy equities and spend on real things that we could make 192% on ACC and 4.5 times onHindustan Sanitaryware since 2008. A house is not done until it’s painted, so remember to keep a budget fordecorative paints from Asian Paints (stock is up 4.8 times in four years)Why should you invest in equities when you can buy insurance products? This world is interesting precisely becausewe think differently from each other- while you are happy buying insurance, we are happy owning shares in companiesthat sell you insurance. Thanks to you, shares in Bajaj Finserve are up 6 times in value and shares in Max India areup 2 times in the past four years.
  14. 14. Follow your heart and we will follow you. If you like going to malls and spending time there, please do someshopping as well- some of us own shares in Phoenix Mills which is up 2.7 times since 2008. In fact, it may betimes for you to upgrade your car. Why buy equities when you can spend the same money on a new car ormotorcycle? Let us do the more boring job of continuing to own stocks in Maruti and Bajaj Auto which are up 2.9and 10.8 times respectively since 2008. Why not add your name to the waiting list for an Enfield this year while weown shares in its manufacturers, Eicher Motors which is up 12 times since 2008?Life isn’t just about making and investing money; it’s important to enjoy life’s little pleasures. So go and watch amovie at the multiplex and munch some popcorn while you’re there. Meanwhile, we’ll buy shares in PVR (up 3times in 4 years).You’d rather spend time in front of the telly? We’ll still love you- shares in Zee Telefilms and Sun are up 3 and 3.5times because of loyal viewers such as you. Call for Pizza delivery at home. Jubliant Foodworks, which ownsDomino’s, is up 5.4 times since its IPO in 2010.When you’re in mood to be sinfully self-indulgent, don’t make any resolutions to give up smoking or drinking. Youmay not want to invest in equities but spare a thought for investors in these stocks. Your actions so far havehelped these investors make 3.8 times in ITC, 10.3 times in United Breweries and 2.2 times in United Spirits in 4years but they still look for your continued patronage of these businesses.We wish you a very happy and healthy 2013. If, God forbid, you have to visit a hospital, remember that as stakeholders in Apollo Hospitals (stock up 3.8 times) we will be thanking you from the bottom of our collective hearts.And if you do fall sick in 2013, take comfort in the fact that you are helping investors in stock of companies such asDr.Reddy’s (stock up 4 times) and Cipla (stock up 2.3 times).We invite you over to our side in 2013 but still love you for choosing instead to be loyal customers of thebusinesses we own. Now it’s up to you to decide who you would rather be – part owners of Indiancompanies or just their loyal customers.”
  15. 15. Axis Triple AdvantagePositve Avg Return in 17 out of 18
  16. 16. Debt Mutual Fund Vs Fixed Deposit