1) The Daiwa Equity Fund is an open-ended equity scheme offered by Daiwa Mutual Fund, which is sponsored by the 109-year old Daiwa Asset Management Co. Ltd. 2) The fund seeks to generate long-term growth of capital through a diversified portfolio of predominantly equity and equity-related securities. It aims to invest in companies with good growth prospects available at reasonable valuations. 3) The report recommends buying the Daiwa Equity Fund as its investment objective and returns strategy align with the investor's profile of a 25-year old with a high-risk appetite and 3-5 year investment horizon. The fund offers an opportunity for aggressive equity returns

1. DAIWA EQUITY FUND
Section 1 Group 2
PAAATH
FT 12113 Anuja Dash
FT 12189 Pramod Ravi Shankar
FT 12127 Harendra Singh
FT 12168 Tushar Arora
FT 12104 Abhilash Mohapatra
FT 12102 Abhay Bohra

2. Introduction : DAIWA EQUITY FUND
 An open ended equity scheme
 Offer of Units of Rs. 10/- each for cash during the New Fund Offer
and continuous offer for Units at applicable NAV based prices
 Name of Mutual Fund: Daiwa Mutual Fund
 Name of Asset Management Company: Daiwa Asset
Management (India) Private Limited
 Sponsor : Daiwa Asset Management Co. Ltd. is the sponsor of
Daiwa Mutual Fund
 Name of Trustee Company: Daiwa Trustee Company (India)
Private Limited which holds the property of the Mutual Fund in
trust for the benefit of the unit holders .
Daiwa Equity Fund –Section 1, Group 2 2

3. History of DAIWA as an AMC
 Daiwa Securities Group Inc., the parent company was established
in 1902
 Daiwa Securities Group ‘s three core business segments
◦ Retail Securities
◦ Wholesale Securities
◦ Asset Management
 Daiwa Asset Management Co. Ltd. ("DAM"), the asset
management arm of the Daiwa Securities Group was incorporated
in 1959
 Second-largest mutual fund management company in Japan
 More than 300 Mutual Funds Managed world-wide
 USD 126 billion of assets under management.
 109 years old diversified group with 51 years of experience in
Asset management
Daiwa Equity Fund –Section 1, Group 2 3

4. Scheme Details
 For initial Purchase Rs. 5,000/- and in multiples of Re. 1/-
thereafter
 No Entry Load
 Exit load – 1% of applicable NAV if redeemed within 1 year
of allotment, none after that
 Portfolio turnover of the Scheme is not expected to be very
high
 The benchmark for the Scheme is BSE-200 index due to is
like appropriate composition
 Redemption Options:
 Growth option: No Dividend will be declared.
 Dividend option: Dividend Payout and Dividend Reinvestment
sub options
Daiwa Equity Fund –Section 1, Group 2 4

5. Investment Objectives
 Main Objective: Growth and income
 The Scheme seeks to generate long-term
growth of capital by investing in a diversified
portfolio of predominantly equity and equity-
related securities
 Stocks that have sustainable business
models, and potential for income and capital
appreciation
 Debt would also be used in the fund
portfolio besides a wide range of other
investment options like money market and
derivative instruments
Daiwa Equity Fund –Section 1, Group 2 5

6. Investment Instruments Options
 Equity and equity related securities
 Debt obligations of the Government of India,
state and local governments , government
agencies, statutory bodies, public sector
undertakings, etc
 Money market instruments
 Pass through, Pay through or other Participation
certificates
 Deposits of Scheduled Commercial Banks
 Foreign Securities
 Derivative instruments
 Other mutual funds
Daiwa Equity Fund –Section 1, Group 2 6

7. Equity – Debt Allocation
A mix of Equity and Debt instruments selected
Asset Allocation
Instrument Minimum Maximum Risk Profile
Equity and equity related
securities 65 100 High
Debt and Money market
Instruments 0 35 Low to Medium
Invest in companies with good growth prospects available at
reasonable valuations.
Combination of Growth and Value strategies to manage the
portfolio.
Select companies which have a significant probability of a
healthy appreciation in the medium term
Daiwa Equity Fund –Section 1, Group 2 7

8. Bench Mark Index
 BSE 200 has grown at mean rate of
20.76% and standard deviation of growth
rate is 41.76%, which is very high for the
past 19 years
 So the Returns are very low and volatile,
not worth the risk we are taking
 Even for the past 5 years ie 2006 -2010
mean rate of 30% with standard deviation
of growth rate is 55%
Daiwa Equity Fund –Section 1, Group 2 8

9. Statistics
Growth 1991-2010
Mean 20.76427624
Standard Error 9.581937257
Median 16.06557377
Mode #N/A
Standard Deviation 41.76669619
Sample Variance 1744.45691
Kurtosis -0.346008768
Skewness 0.247390374
Range 150.8921473
Minimum -56.47590361
Maximum 94.41624365
Sum 394.5212485
Count 19
Daiwa Equity Fund –Section 1, Group 2 9

10. Statistics
Growth 2006-2010
Mean 29.66523
Standard Error 24.61734
Median 39.54469
Mode #N/A
Standard Deviation 55.04605
Sample Variance 3030.068
Kurtosis 1.265268
Skewness -1.01648
Range 145.0572
Minimum -56.4759
Maximum 88.58131
Sum 148.3261
Count 5
Daiwa Equity Fund –Section 1, Group 2 10

11. Investor Profile Assumptions
Investor Profile
 25 – year old
 Steady job
 Has adequate insurance cover
 Regular cash flows in terms of Salary
paycheck
 Enough Emergency Cash Reserve
Time Horizon – 3 to 5 years
Return Expectations – Greater than index
returns
 High Risk Appetite
Daiwa Equity Fund –Section 1, Group 2 11

12. Recommendation
 We recommend that given the said
Fund’s investment objective and returns
strategy vis-à-vis the investor profile and
risk appetite , the investor should
BUY !!
Daiwa Equity Fund –Section 1, Group 2 12

13. Reasons for the Recommendation
 Daiwa Group’s 100 year legacy makes it
trustworthy
 Experience and expertise as Asset managers
in the Japanese Market
 Alignment of investor expectations with the
scheme goals
 Aggressive equity exposure presents an
opportunity to earn high returns
 The associated risks are within the young
investor’s risk appetite
Daiwa Equity Fund –Section 1, Group 2 13

14. Daiwa Equity Fund –Section 1, Group 2 14