Burgundy Investment Perspective Oct Dec 2018

OCTOBER – DECEMBER 2018
MARKET OVERVIEW
Indian equity markets remained volatile in the quarter ended September 2018. Stock
specific action was seen in mid cap and small cap stocks which witnessed a
meaningful correction. The BSE Sensex gained 2.27% during the quarter ended Sep-
18, while the Midcap was down by 4.45% and small cap index saw a fall of 9.99%.
Equity markets are exhibiting a spate of volatility owing to spill over of liquidity issues
in debt markets owing to payment default by an infrastructure conglomerate which was
later downgraded to junk. The situation got aggravated as the debt markets faced
liquidity concerns arising from redemption pressure of an NBFC debt paper. All
attempts are being made by the central bank and the regulator along with the
shareholders of the beleaguered company to prevent it from being contagious.
Overall monsoon has been near normal and the season’s food grain production is
expected to touch a historic high. Good monsoon also means a good water table
which augurs well for rabi crops. Higher MSPs along with record harvest is expected
to drive consumption led demand which will be reflected in corporate earnings for
H2FY19. The quarterly earnings have exhibited recovery in last 4 consecutive
quarters and are expected to continue, all eyes would now be on the rate of growth.
The US China trade tariff war has escalated with both nations imposing higher tariffs
on goods imported from each other’s nation. US imposed tariffs ranging from 10% to
25% on goods worth $250 bn imported from China while China retaliated and
imposed tariff ranging from 10% to 25% on goods worth $110 bn imported from US.
Further escalation of trade between these two warring nations would be seriously
contagious, spreading beyond the two involved parties.
We maintain a positive bias towards India equity. Investors can

consider investing in equities with a 3 to 5 year investment
perspective
Current yield on 10 year G-sec has factored in couple of rate hikes going forward.
The 10-year benchmark made a high of 8.18% in mid-September amid concerns of
inflation, higher crude oil prices, rupee depreciation and twin deficit. Though, yield is
off from its recent peak, is trading at 7.99%, on the backdrop of assurance by the
Government on rupee, coupled with two OMO announcements by RBI that brought
yields down. However, yields remained elevated on higher crude oil prices and
tightened liquidity conditions. Given the dispensation on Liquidity Adjustment Facility
haircut, it makes front end bonds more attractive. At current rate, we don't expect
front end rates to rise significantly further from here. However, we do expect volatility
to continue to play a role in the markets. Meanwhile, election related risks could also
make themselves apparent later in the year, with the fiscal deficit uncertain.
We remain constructive on short term income funds which can be

considered by investors with minimum investment horizon of 12 to 18
months and corporate bond funds with minimum investment horizon of
24 to 36+ months to benefit from accruals and ensuing capital
appreciation in the event of yields heading lower
EQUITY MARKET RECAP
Indian equity markets remained volatile in the quarter ended September 2018. Stock
specific action was witnessed in Mid Cap and Small Cap stocks which were brutally
hammered compared to their Large Cap counterparts. The BSE Sensex gained 2.27%
during the quarter ended September 2018, while the Midcap was down by 4.45% and
small cap index saw significant fall of 9.99%.
On the sectoral front, the top 3 performing sector for the quarter ended September 2018
was IT (+12.28%), Oil & Gas (+8.76%) and Healthcare (+7.30%). The bottom 3 aector
which ended the quarter in negative terrain were Realty (-17.87%), Auto (-9.91%) and
Consumer Discretionary (-8.55%).
Among Sensex stocks for the quarter ended September 2018, Reliance Inds.(+29.32%),
Wipro (+24.02%), Axis Bank (+19.97%), were the top performers, while Yes Bank (-
45.98%), Tata Motors – DVR (-26.59%) & Tata Motors (-17.03%) and Maruti Suzuki (-
16.67%) were laggards.
Among Sensex stocks for H1FY19, TCS (+53.34%), Reliance Inds. (+42.52%), Infosys
(+28.32%), were the top performers while Yes Bank (-39.83%), Tata Motors – DVR (-
36.65%) & Tata Motors (-31.76%) and Hero Motocorp (-17.30%) were laggards.
During the quarter ended September 2018, FIIs were net sellers of equity to the tune of
Rs 8523.77 Cr while DIIs were net buyers to the tune of Rs. 19539.57 Cr & the domestic
MFs bought Rs. 15918.60 Cr. worth of equity.
EQUITY MARKET OUTLOOK
Indian Equity Markets are exhibiting a spate of volatility owing to a spill over of liquidity issues
in debt markets on account of a payment default by an infrastructure conglomerate which
was later downgraded to junk. The situation got aggravated as the debt markets faced
liquidity concerns arising from redemption pressure of an NBFC debt paper. All attempts are
being made by the central bank and the regulator along with the shareholders of the
beleaguered company to prevent it from being contagious. Global trade tariff tensions
between US and China along with currency depreciation of few countries like Turkey,
Argentina (with high external debt and inflating CAD) have also added to the cause. Indian
equity markets have corrected sharply following the risk aversion developed on account of
domestic liquidity concerns and global trade uncertainties.
Overall monsoon has been near to normal and this season’s food grain production is
expected to touch a historic high. Good monsoon also means a good water table which
augurs well for rabi crops. Higher MSPs compared to last year along with record harvest is
expected to drive consumption led demand which will be reflected in the corporate earnings
for H2FY19. The quarterly earnings have exhibited recovery in last 4 consecutive quarters
and are expected to continue. All eyes would now be on the rate of growth.
Strengthening of US economy and rising US interest rates has depreciated INR to

72/USD; fears of depreciation of EM currencies especially those with large CAD and
high external debt like Turkish Lira, Argentinan Peso and Russian Rouble have
aggravated the situation given the inflating CAD as crude oil price crossed $80/bbl.
Supply constraints following the disruption from Venezuela, Libya and Iran is expected
to keep oil prices at elevated levels. Expectation of a tightening supply in the global oil
market in the coming months can further push crude oil prices higher. The inability to
increase production by OPEC plus nations is a cause of concern given the rising
demand. Any further sharp spike in crude oil prices coupled with depreciated INR would
be a cause of concern for India.
US Fed hiked rate by 25 bps, dropped the word ‘accommodative’ from the policy statement
and signaled another hike in Dec.’18 and 3 more hikes in 2019. Growth and job gains have
been ‘strong’, inflation remains near central bank’s 2% target. Strengthening policy rates at
US Fed is indicative of strong USD; RBI would have to take necessary steps to contain INR
depreciation in wake of strong USD. There is good probability of a change in stance by the
RBI alongwith expectations of a rate hikes in the forthcoming RBI Monetary Policy meet.
Investors can look at accumulating equities with a 3 to 5 year investment

perspective
LARGE CAP EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)
CAGR 1 Year 2 Years 3 Years

Aditya Birla Sun Life Frontline Equity Fund 1.78 8.25 10.20
Axis Bluechip Fund 11.92 14.30 12.25
ICICI Prudential Bluechip Fund 8.11 12.74 12.72
Reliance Large Cap Fund 8.50 12.87 12.07
SBI Bluechip Fund 2.25 6.83 9.72
UTI Mastershare Unit Scheme 8.97 10.03 9.73
Category Average 6.92 10.84 11.12
Nifty 50 11.70 12.70 11.21
Data Source: ICRA MFI Explorer
MULTI CAP EQUITY FUNDS
Aditya Birla Sun Life Equity Fund -1.01 7.87 12.27
Franklin India Equity Fund 4.10 8.30 9.18
Kotak Standard Multicap Fund 4.44 11.36 12.63
SBI Magnum Multi Cap Fund 1.46 9.84 11.68
Nifty 500 6.02 11.06 11.12

LARGE & MID CAP EQUITY FUNDS

Aditya Birla Sun Life Equity Advantage Fund -6.68 5.41 10.32
DSP Equity Opportunities Fund -0.06 8.70 12.27
IDFC Core Equity Fund 2.91 10.80 13.16
L&T Large and Midcap Fund -0.35 10.19 9.31
Category Average -1.05 8.78 11.27

7.84 11.52
S&P BSE 250 Large Mid Cap 11.72
FOCUSED EQUITY FUNDS
Aditya Birla Sun Life Focused Equity Fund 1.14 8.62 9.85
Axis Focused 25 Fund 9.41 16.20 15.47
DSP Focus Fund -2.39 4.49 7.17
Franklin India Focused Equity Fund 2.78 8.47 9.19
Nifty 50 11.70 12.70 11.21

MIDCAP EQUITY FUNDS

Axis Midcap Fund 12.10 13.20 10.13
DSP Midcap Fund -3.83 6.87 12.23
Franklin India Prima Fund -1.56 6.83 11.02
Kotak Emerging Equity Scheme -4.04 6.42 11.00
L&T Midcap Fund -4.28 12.00 13.56
S&P BSE Mid Cap -4.37 5.91 10.99
SMALLCAP EQUITY FUNDS

Franklin India Smaller Companies Fund -6.59 5.10 10.73

HDFC Small Cap Fund 9.80 17.01 17.49
L&T Emerging Businesses Fund -1.73 15.23 18.01
SBI Small Cap Fund 1.42 16.19 17.21
S&P BSE Small Cap -10.47 6.28 9.41

EQUITY LINKED SAVINGS SCHEME (ELSS)
Aditya Birla Sun Life Tax Relief 96 7.00 13.01 13.27

Axis Long Term Equity Fund 8.06 12.48 10.95
DSP Tax Saver Fund -0.79 7.53 11.67
Franklin India Taxshield 4.58 8.25 8.96
Kotak Taxsaver 2.38 8.85 9.87
L&T Tax Advantage Fund 1.02 11.71 12.17
Nifty 500 6.02 11.06 11.12
VALUE EQUITY FUNDS
HDFC Capital Builder Value Fund 7.62 13.03 13.81

Tata Equity P/E Fund -1.13 12.32 15.83
UTI - Value Opportunities Fund 7.83 8.85 8.91
Nifty 500 6.02 11.06 11.12

AGGRESSIVE HYBRID FUNDS
Aditya Birla Sun Life Equity Hybrid 95 Fund -1.34 6.19 9.15
Franklin India Equity Hybrid Fund 3.50 6.54 8.11
HDFC Hybrid Equity Fund 2.16 8.52 10.20
ICICI Prudential Equity & Debt Fund 5.69 10.21 12.09
L&T Hybrid Equity Fund 1.13 8.54 8.86
Reliance Equity Hybrid Fund 2.28 9.73 10.42
SBI Equity Hybrid Fund 5.59 8.80 9.56
CRISIL Hybrid 35+65 - Aggressive Index 6.58 10.08 10.83
DYNAMIC ASSET ALLOCATION /

BALANCED ADVANTAGE FUNDS
Axis Dynamic Equity Fund 6.50 -- --

ICICI Prudential Balanced Advantage Fund 4.65 7.93 8.89
IDFC Dynamic Equity Fund 5.38 7.21 6.86
Kotak Balanced Advantage Fund -- -- --
Reliance Balanced Advantage Fund 4.40 9.51 9.66
CRISIL Hybrid 35+65 - Aggressive Index 6.58 10.08 10.83

EQUITY SAVINGS FUNDS

Aditya Birla Sun Life Equity Savings Fund -0.39 4.40 7.22
Axis Equity Saver Fund 7.00 7.92 7.14
DSP Equity Savings Fund 0.78 4.96 --
HDFC Equity Savings Fund 4.12 8.43 10.71
Kotak Equity Savings Fund 6.21 8.19 7.97
Reliance Equity Savings Fund 2.48 7.40 7.27

CRISIL Short Term Debt Hybrid 60+40 6.60 8.92 9.55
Fund Index
MULTI ASSET ALLOCATION FUNDS
Axis Triple Advantage Fund 1.66 4.02 6.47
ICICI Prudential Multi-Asset Fund 6.42 11.77 13.42

THEMATIC FUNDS
Tata Ethical Fund 4.29 6.22 5.14
Nifty 500 Shariah 4.46 12.50 12.52
ARBITRAGE FUNDS
Axis Arbitrage Fund 5.86 6.02 6.04
HDFC Arbitrage Fund 5.29 5.49 5.81
IDFC Arbitrage Fund 6.06 5.95 6.07
Kotak Equity Arbitrage Fund 6.21 6.13 6.29
SBI Arbitrage Opportunities Fund 6.18 5.92 5.98
Nifty 50 Arbitrage Index 4.44 4.60 5.24

DEBT AND MACRO ECONOMIC OUTLOOK
July’18 IIP at 6.6% YoY (6.9% in June), strong manufacturing and

electricity offsetting weak mining
• Strong growth in consumer durables (auto and scientific instruments) and
infra/construction goods (cement and steel) adds to resilient primary goods.
Intermediate and capital goods growth were weak.
Aug’18 CPI inflation falls to 3.69% from 4.17% in July, brought down by
fruits and vegetables
• Core inflation falls to 5.9% from 6.3% prev. month, as HRA from 7th CPC
creates favourable base in August. Services inflation also inched lower at 5.52%
YoY from 5.80% in July.
• WPI inflation falls to 4.53% in Aug. from 5.09% in July, on sustained fall in fruits
and vegetables
Aug’18 trade deficit at USD 17.4 bn, slightly better than multi year high
of July
• Exports up 19.2% YoY, apart from the low GST base, engineering goods,
chemicals and pharmaceuticals inched up.
• Imports rise 25.4%, as electronics and machinery continue to grow. Ex
Petroleum, gold deficit remains elevated.
Q1FY19 CAD widens to USD 15.8 bn (2.4% of GDP) on higher import

volumes and prices
• Capital account weak at USD 5.3 bn on FPI outflows and trade finance
repayments
• RBI draws down reserves by USD 11.3 bn to keep INR stable
Risks from global markets remain intense: Trade Wars, rising crude
and EMFX Sell Off
• Higher oil prices coinciding with depreciating INR (mostly driven by sell off in
EMFX basket)
• US-China trade war intensifying with US imposing tariff on $200 bn worth of
Chinese goods. China retaliates with tariff on $60 bn worth of American goods.
DEBT AND MACRO ECONOMIC OUTLOOK
G-sec yields shot up in first half of Sep on weakness in rupee (trade war escalation,
EMFX sell off). Value buying and assurance by the Government on rupee, coupled
with two OMO announcements by RBI brought the yields down in the second half.
However, yields remained elevated on higher crude oil prices and tightened liquidity
conditions.
Liquidity conditions tightened post advance tax payments in September and are
expected to remain tight as currency in circulation usually picks up in H2 during
festive season.
Selloff in INR, driven mostly by external factors, has increased chances of further
tightening through policy rate and other means of measurements.
Election related risks could also make themselves apparent later in the year, with the
fiscal deficit uncertain (GST collections against ambitious targets and higher crude oil
price risks remain)
The RBI MPC meeting in 1st week of October remains crucial to watch by the market
participants as it shall decide the way forward. One shall watch for the tone, the
stance, any clarity on OMOs, as well as measures to alleviate tight liquidity
conditions.
We remain constructive on short term income funds which can be

considered by investors with minimum investment horizon of 12 to 18
months. Medium duration funds and credit risk funds (erstwhile
‘corporate bond funds’) forming a part of the Axis Select list can be
considered by investors with minimum investment horizon of 24 to
36+ months to benefit from accruals and ensuing capital appreciation
in the event of yields heading lower.
SPECIAL ECONOMIC UPDATE
Q1FY19 GDP growth strongest in 8 quarters at 8.2% YoY; GVA at 8.1%

YoY, driven by strong growth in manufacturing
• Agriculture growth at 5.3%, boosted by solid growth in allied activities (8.1%

YoY)
• Industry growth at 10.8%, driven by favorable base effect in manufacturing.
Mining growth weak at 0.1% YoY despite IIP numbers pointing at improvement
in mining activity.
• Services growth at 7.5%, supported by improvement in ‘Financial Services+’
segment. Construction activity weaker as both cement and steel production
slowed. Public Adm. and Defense witness slower growth on weaker Union Govt.
expenditure (net of interest payment and subsidies – CPI adjusted)
• GDP growth higher than GVA growth, adjusting GVA for growth in indirect taxes
net of subsidies
• Strong private consumption expenditure offsets slowdown in government
consumption expenditure and gross capital formation.
• Fixed capital formation slows down despite the base turning more favorable on
GST in Q1FY18
• Valuables contract on weaker consumption of gold and precious stones
LONG DUARATION FUNDS
ICICI Prudential Long Term Bond Fund -0.11 3.91 6.46
IDFC Bond Fund - Long Term Plan -0.20 3.97 5.56
CRISIL Composite Bond Fund Index 0.52 4.17 6.56
GILT FUNDS
HDFC Gilt Fund -0.10 2.54 6.15
ICICI Prudential Gilt Fund 1.73 4.53 7.46
Reliance Gilt Securities Fund 0.97 4.84 7.30
SBI Magnum Gilt Fund -0.48 4.63 6.67
UTI Gilt Fund 0.68 5.64 7.04
CRISIL 10 Yr Gilt Index -3.03 1.80 4.81

DYNAMIC BOND FUNDS

HDFC Dynamic Debt Fund -0.02 2.72 5.74
ICICI Prudential All Seasons Bond Fund 2.77 6.03 8.04
IDFC Dynamic Bond Fund 0.29 4.34 5.88
UTI Dynamic Bond Fund 1.60 5.58 7.16

*Category as per SEBI circular dated Oct 6, 2017 on Categorization and Rationalization of MF Schemes.
Data Source:
CRISIL ICRA Bond
Composite MFI Explorer
Fund Index 0.52 4.17 6.56
MEDIUM TO LONG DURATION FUNDS

HDFC Income Fund -1.07 1.57 5.06
SBI Magnum Income Fund 1.43 5.27 6.70
UTI Bond Fund 0.54 4.62 6.30
CRISIL Composite Bond Fund Index 0.52 4.17 6.56

MEDIUM DURATION FUNDS
Axis Strategic Bond Fund 4.80 6.61 7.67
ICICI Prudential Medium Term Bond Fund 3.53 5.83 7.07
Reliance Classic Bond Fund 3.21 5.82 7.48
UTI Medium Term Fund 4.16 6.29 7.58
CRISIL Short Term Bond Fund Index 4.24 5.91 7.03
SHORT DURATION FUNDS
Axis Short Term Fund 4.42 5.95 6.91
HDFC Short Term Debt Fund 5.25 6.45 7.28
Reliance Short Term Fund 3.34 5.28 6.62
SBI Short Term Debt Fund 3.98 5.74 6.83
Tata Short Term Bond Fund 1.12 4.10 5.60
UTI Short Term Income Fund 4.43 6.14 7.19

CORPORATE BOND FUNDS
Aditya Birla Sun Life Corporate Bond Fund 4.81 6.37 7.47
Axis Corporate Debt Fund 6.37 -- --
IDFC Corporate Bond Fund 4.19 5.91 --
Reliance Prime Debt Fund 5.58 6.51 7.32
UTI Corporate Bond Fund -- -- --
CRISIL ShortICRA
Term Bond Fund Index 4.24 5.91 7.03
Data Source: MFI Explorer
CREDIT RISK FUNDS
Axis Credit Risk Fund 4.15 6.04 7.04
IDFC Credit Risk Fund 3.23 -- --
UTI Credit Risk Fund 4.41 6.29 7.43

BANKING & PSU DEBT FUNDS
Aditya Birla Sun Life Banking & PSU Debt Fund 4.27 5.81 7.61
Axis Banking & PSU Debt Fund 5.35 6.53 7.06
IDFC Banking & PSU Debt Fund 4.18 5.34 6.23
CONSERVATIVE HYBRID FUNDS
Aditya Birla Sun Life Regular Savings Fund -2.64 4.07 7.86
Axis Regular Saver Fund 3.88 5.31 6.07
Franklin India Debt Hybrid Fund 2.12 4.04 6.23
ICICI Prudential Regular Savings Fund 4.09 7.34 8.65
SBI Debt Hybrid Fund -2.29 3.20 6.03
UTI Regular Savings Fund 3.72 6.72 7.82
CRISIL Hybrid 85+15 - Conservative Index 1.97 5.58 7.60

DISCLAIMER
T h e r e p o r t a n d i n f o r m a t i o n c o n t a i n e d h e r e i n is of c o n f i d e n t i a l n a t u r e a n d m e a n t o n l y f o r t h e s e l e c t e d r e c i p i e n t a n d
s h o u l d n o t b e a l t e r e d i n a n y w a y, t r a n s m i t t e d to, c o p i e d o r d i s t r i b u t e d , i n a n y m a n n e r a n d f o r m , to a n y o t h e r p e r s o n
o r to t h e m e d i a o r r e p r o d u c e d i n a n y f o r m , w i t h o u t p r i o r w r i t t e n a p p r o v a l of A x i s B a n k . T h e m a t e r i a l i n t h i s
d o c u m e n t / r e p o r t is b a s e d o n f a c t s , f i g u r e s a n d i n f o r m a t i o n t h a t a r e o b t a i n e d from publicly available media or other
s o u r c e s b e l i e v e d to b e r e l i a b l e a n d h e n c e c o n s i d e r e d t r u e , c o r r e c t , r e l i a b l e a n d a c c u r a t e b u t A x i s B a n k d o e s n o t
g u a ra n t e e or re p re s e n t (e xp re s s l y or i m p l i e d l y) that t h e s a m e are true, correct, reliable and accurate, not m isleading
o r a s to its g e n u i n e n e s s , f i t n e s s f o r t h e p u r p o s e i n t e n d e d a n d it s h o u l d n o t b e r e l i e d u p o n a s s u c h . T h e o p i n i o n
e x p r e s s e d ( i n c l u d i n g e s t i m a t e s , f a c t s , f i g u r e s a n d f o r e c a s t s ) is g i v e n a s of t h e d a t e of t h i s d o c u m e n t is s u b j e c t t o
c h a n g e w i t h o u t p r o v i d i n g a n y p r i o r n o t i c e of i n t i m a t i o n . A x i s B a n k s h a l l h a v e t h e r i g h t s t o m a k e a n y k i n d of c h a n g e s
a n d a l t e r a t i o n s to t h i s r e p o r t / i n f o r m a t i o n a s m a y b e r e q u i r e d f r o m t i m e t o t i m e . H o w e v e r , A x i s B a n k is u n d e r n o
c o m p u l s i o n to m a i n t a i n o r k e e p t h e d a t a / i n f o r m a t i o n u p d a t e d . T h i s r e p o r t / d o c u m e n t d o e s n o t m e a n a n o f f e r o r
s o l i c i t a t i o n f o r d e a l i n g ( p u r c h a s e o r s a l e ) of a n y f i n a n c i a l i n s t r u m e n t o r a s a n o f f i c i a l c o n f i r m a t i o n of a n y t r a n s a c t i o n .
A x i s B a n k o r a n y of its a f f i l i a t e s / g r o u p c o m p a n i e s s h a l l n o t b e a n s w e r a b l e o r r e s p o n s i b l e i n a n y w a y f o r a n y k i n d of
l o s s o r d a m a g e t h a t m a y a r i s e to a n y p e r s o n d u e to a n y k i n d of e r r o r i n t h e i n f o r m a t i o n c o n t a i n e d i n t h i s d o c u m e n t o r
o t h e r w i s e . T h i s d o c u m e n t is p r o v i d e d f o r a s s i s t a n c e o n l y a n d s h o u l d not be c o n s t r u e d as the sole d o c u m e n t to be
r e l i e d u p o n f o r t a k i n g a n y k i n d of i n v e s t m e n t d e c i s i o n . T h e r e c i p i e n t is h i m s e l f / h e r s e l f f u l l y r e s p o n s i b l e f o r t h e r i s k s of
a n y u s e m a d e of t h i s i n f o r m a t i o n . E a c h r e c i p i e n t of t h i s d o c u m e n t s h o u l d m a k e h i s / h e r o w n r e s e a r c h , a n a l y s i s a n d
i n v e s t i g a t i o n a s h e / s h e d e e m s fit a n d r e l i a b l e to c o m e at a n i n d e p e n d e n t e v a l u a t i o n of a n i n v e s t m e n t i n t h e s e c u r i t i e s
of c om pani es m enti oned in this d o c u m e n t (i nc l udi ng the merits, dem eri ts and risk s i nv ol v ed), and s houl d further tak e
o p i n i o n of o w n c o n s u l t a n t s , a d v i s o r s to d e t e r m i n e t h e a d v a n t a g e s a n d r i s k s of s u c h i n v e s t m e n t . The investment
d i s c u s s e d o r v i e w s e x p r e s s e d h e r e i n m a y n o t s u i t t h e r e q u i r e m e n t s f o r al l i n v e s t o r s . A x i s B a n k a n d its g r o u p
c o m p a n i e s , a f f i l i a t e s , d i r e c t o r s , a n d e m p l o y e e s m a y : (a) f r o m t i m e t o t i m e , h a v e l o n g o r s h o r t p o s i t i o n s i n, a n d d e a l
( b u y a n d / o r s el l t h e s e c u r i t i e s ) t h e r e o f , of c o m p a n y ( i e s ) m e n t i o n e d h e r e i n o r ( b ) b e e n g a g e d i n a n y o t h e r t r a n s a c t i o n
involving such securities and earn c o m m i s s i o n / b r o k e r a g e or other compensati on or act as advisor or
l e n d e r / b o r r o w e r to s u c h c o m p a n y ( i e s ) o r h a v e o t h e r p o t e n t i a l c o n f l i c t of i n t e r e s t w i t h r e s p e c t t o a n y r e c o m m e n d a t i o n
and related information and opinions. The applicable Statutory Rules and Regulations m a y not allow the distribution
of t h i s d o c u m e n t i n c e r t a i n j u r i s d i c t i o n s , a n d p e r s o n s w h o a r e i n p o s s e s s i o n of t h i s d o c u m e n t , s h o u l d i n f o r m
themselves about and f o l l o w , a n y s u c h r e s t r i c t i o n s . T h i s r e p o r t is n o t m e a n t , d i r e c t e d o r i n t e n d e d f o r d i s t r i b u t i o n t o,
o r u s e by, a n y p e r s o n o r e n t i t y w h o is a c i t i z e n o r r e s i d e n t of o r l o c a t e d i n a n y l oc al i t y, s t a t e , c o u n t r y o r o t h e r
j u r i s d i c t i o n , w h e r e s u c h d i s t r i b u t i o n , p u b l i c a t i o n , a v a i l a b i l i t y o r u s e w o u l d n o t b e i n c o n f o r m a t i o n t o t h e l aw, r e g u l a t i o n
or wh i c h wo u l d r e q u i r e Axis B a n k a n d affiliates/ g r o u p c o m p a n i e s to o b t a i n a n y registration or licensing
r e q u i r e m e n t s w i t h i n s u c h j u r i s d i c t i o n . N e i t h e r A x i s B a n k n o r a n y of its a f f i l i a t e s , g r o u p c o m p a n i e s , d i r e c t o r s ,
e m p l o y e e s , a g e n t s o r r e p r e s e n t a t i v e s s h a l l b e h e l d r e s p o n s i b l e , l i a b l e f o r a n y k i n d of c o n s e q u e n t i a l d a m a g e s
wh e t h e r direct, indirect, special or c o n s e q u e n t i a l i n c l u d i n g but not lim ited to lost r e v e n u e , lost profits, n o t i o n a l losses
that m a y arise from or in c onnec ti on with the use of the i nform ati on. P ros pec ti v e investors and others are c auti oned
a n d s h o u l d be alert that a n y f o r wa r d - l o o k i n g s t a t e m e n t s are not p r e d i c t i o n s a n d m a y be subject to c h a n g e wi t h o u t
p r o v i d i n g a n y notice. Past p e r f o r m a n c e s h o u l d not be c o n s i d e r e d as a r e f e r e n c e to future p e r f o r m a n c e . T h e
d i s c l o s u r e s of i n t e r e s t s t a t e m e n t s if a n y i n c l u d e d i n t h i s d o c u m e n t a r e p r o v i d e d o n l y t o e n h a n c e t h e t r a n s p a r e n c y a n d
should n o t b e c o n s t r u e d a s c o n f i r m a t i o n of t h e v i e w s e x p r e s s e d i n t h e r e p o r t . T h e v i e w s e x p r e s s e d i n t h i s r e p o r t
r e f l e c t t h e p e r s o n a l v i e w s of t h e a u t h o r of t h e r e p o r t a n d d o n o t r e f l e c t t h e v i e w s of A x i s B a n k o r a n y o f its a s s o c i a t e
a n d g r o u p c o m p a n i e s a b o u t t h e s u b j e c t c o m p a n y o r c o m p a n i e s a n d its o r t h e i r s e c u r i t i e s .
T h i s d o c u m e n t is p u b l i s h e d b y A x i s B a n k L i m i t e d (“Axis B a n k ” ) a n d is d i s t r i b u t e d i n S i n g a p o r e b y t h e S i n g a p o r e
b r a n c h of A x i s B a n k . T h i s d o c u m e n t d o e s n o t p r o v i d e i n d i v i d u a l l y t a i l o r e d i n v e s t m e n t a d v i c e . T h e c ontents in this
d o c u m e n t hav e been prepare d and are i ntended for general circulation. T he c ontents in this d o c u m e n t do not tak e
i n t o a c c o u n t t h e s p e c i f i c i n v e s t m e n t o b j e c t i v e s , f i n a n c i a l s i t u a t i o n , o r p a r t i c u l a r n e e d s of a n y p a r t i c u l a r p e r s o n . T h e
s e c u r i t i e s a n d / o r i n s t r u m e n t s d i s c u s s e d i n t h i s d o c u m e n t m a y n o t b e s u i t a b l e f o r al l i n v e s t o r s .
DISCLAIMER
Axis B a n k r e c o m m e n d s that yo u i n d e p e n d e n t l y e v a l u a t e p a r t i c u l a r i n v e s t m e n t s a n d strategies a n d e n c o u r a g e s yo u to
s e e k a d v i c e f r o m a f i n a n c i a l a d v i s e r r e g a r d i n g t h e s u i t a b i l i t y of s u c h s e c u r i t i e s a n d / o r instruments, tak ing into account
yo u r specific i n v e s t m e n t objectives, financial situation a n d p a r t i c u l a r n e e d s , b e f o r e m a k i n g a c o m m i t m e n t to p u r c h a s e
a n y s e c u r i t i e s a n d / o r i n s t r u m e n t s . T h i s is b e c a u s e t h e a p p r o p r i a t e n e s s of a p a r t i c u l a r s e c u r i t y, i n s t r u m e n t , i n v e s t m e n t
o r s t r a t e g y wi l l d e p e n d o n y o u r i n d i v i d u a l c i r c u m s t a n c e s a n d i n v e s t m e n t o b j e c t i v e s , f i n a n c i a l s i t u a t i o n a n d p a r t i c u l a r
n e e d s . T h e s e c u r i t i e s , i n v e s t m e n t s , i n s t r u m e n t s o r s t r a t e g i e s d i s c u s s e d i n t h i s d o c u m e n t m a y n o t b e s u i t a b l e f o r al l
i n v e s t o r s , a n d c e r t a i n i n v e s t o r s m a y n o t b e e l i g i b l e t o p u r c h a s e o r p a r t i c i p a t e i n s o m e o r al l of t h e m .
T h i s d o c u m e n t is n o t a n o f f e r to b u y o r s el l o r t h e s o l i c i t a t i o n of a n o f f e r t o b u y o r s el l a n y s e c u r i t y a n d / o r i n s t r u m e n t o r
to p a r t i c i p a t e i n a n y p a r t i c u l a r t r a d i n g s t r a t e g y. A x i s B a n k , its a s s o c i a t e s , o f f i c e r s a n d / o r e m p l o ye e s m a y h a v e
i n t e r e s t s i n a n y p r o d u c t s r e f e r r e d to i n t h i s d o c u m e n t b y a c t i n g i n v a r i o u s r o l e s i n c l u d i n g a s d i s t r i b u t o r , h o l d e r of
p r i n c i p a l p o s i t i o n s , a d v i s e r o r l e n d e r . A x i s B a n k , its a s s o c i a t e s , o f f i c e r s a n d / o r e m p l o ye e s m a y re c e i v e fees,
b r o k e r a g e o r c o m m i s s i o n s f o r a c t i n g i n t h o s e c a p a c i t i e s . In a d d i t i o n , A x i s B a n k , its a s s o c i a t e s , o f f i c e r s a n d / o r
e m p l o y e e s m a y b u y o r s el l p r o d u c t s a s p r i n c i p a l o r a g e n t a n d m a y effect trans ac ti ons whi c h are not c ons i s tent with
the i nform ati on set out in this d o c u m e n t .
A x i s B a n k a n d its a f f i l i a t e s d o b u s i n e s s t h a t r e l a t e s t o c o m p a n i e s a n d / o r i n s t r u m e n t s c o v e r e d i n t h i s d o c u m e n t ,
including m ark et m ak ing and specialized trading, risk arbitrage and other proprietary trading, fund management,
c o m m e r c i a l b a n k i n g , e x t e n s i o n of c r e d i t , i n v e s t m e n t s e r v i c e s a n d i n v e s t m e n t b a n k i n g . A x i s B a n k s e l l s t o a n d b u y s f r o m
c u s t o m e r s t h e s e c u r i t i e s a n d / o r i n s t r u m e n t s of c o m p a n i e s c o v e r e d i n t h i s d o c u m e n t a s p r i n c i p a l o r agent.
A x i s B a n k m a k e s e v e r y e f f o r t to u s e r e l i a b l e a n d c o m p r e h e n s i v e i n f o r m a t i o n , b u t m a k e s n o r e p r e s e n t a t i o n t h a t it is
a c c u r a t e o r c o m p l e t e . A x i s B a n k h a s n o o b l i g a t i o n to i n f o r m y o u w h e n o p i n i o n s o r i n f o r m a t i o n in this d o c u m e n t
c h a n g e . F a c t s a n d v i e w s p r e s e n t e d i n t h i s d o c u m e n t h a v e n o t b e e n r e v i e w e d by, a n d m a y n o t r e f l e c t i n f o r m a t i o n
k n o w n to, p r o f e s s i o n a l s i n o t h e r A x i s B a n k b u s i n e s s a r e a s , i n c l u d i n g i n v e s t m e n t b a n k i n g p e rs o n n e l . Axis B a n k
a c c e p t s n o l i a b i l i t y w h a t s o e v e r f o r a n y l o s s o r d a m a g e of a n y k i n d a r i s i n g o u t of t h e u s e of t h e c o n t e n t s i n t h i s
d o c u m e n t . A x i s B a n k ’ s c o m m e n t s a r e a n e x p r e s s i o n of o p i n i o n . W h il e Axis B a n k b e l i e v e s the s t a t e m e n t s to be true,
t h e y a l w a y s d e p e n d o n t h e r e l i a b i l i t y of A x i s B a n k ’ s o w n c r e d i b l e s o u r c e s .
Disclaim er for D I F C b r a n c h :
A x i s B a n k , D I F C b r a n c h is d u l y l i c e n s e d a n d r e g u l a t e d i n t h e D u b a i I n t e r n a t i o n a l F i n a n c i a l C e n t r e b y t h e D u b a i
F i n a n c i a l S e r v i c e s A u t h o r i t y ( “ D F S A ” ) . T h i s d o c u m e n t is i n t e n d e d f o r u s e o n l y b y P r o f e s s i o n a l C l i e n t s ( a s d e f i n e d b y
R u l e 2 . 3 . 2 s e t o u t i n t h e C o n d u c t of B u s i n e s s M o d u l e of t h e D F S A R u l e b o o k ) w h o s a t i s f y t h e r e g u l a t o r y c r i t e r i a s e t o u t
in the DFSA’s rules, and s houl d not be relied upon, ac ted upon or d i s t r i b u t e d to a n y o t h e r p e r s o n ( s ) o t h e r t h a n the
intended recipient.

Burgundy Investment Perspective Oct Dec 2018

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Burgundy Investment Perspective Oct Dec 2018

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OCTOBER – DECEMBER 2018

We maintain a positive bias towards India equity. Investors can

We remain constructive on short term income funds which can be

Strengthening of US economy and rising US interest rates has depreciated INR to

Investors can look at accumulating equities with a 3 to 5 year investment

PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)

CAGR 1 Year 2 Years 3 Years

Axis Bluechip Fund 11.92 14.30 12.25

ICICI Prudential Bluechip Fund 8.11 12.74 12.72

Reliance Large Cap Fund 8.50 12.87 12.07

SBI Bluechip Fund 2.25 6.83 9.72

UTI Mastershare Unit Scheme 8.97 10.03 9.73

Category Average 6.92 10.84 11.12

Nifty 50 11.70 12.70 11.21

Data Source: ICRA MFI Explorer

MULTI CAP EQUITY FUNDS

PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)

CAGR 1 Year 2 Years 3 Years

Aditya Birla Sun Life Equity Fund -1.01 7.87 12.27

Franklin India Equity Fund 4.10 8.30 9.18

Kotak Standard Multicap Fund 4.44 11.36 12.63

SBI Magnum Multi Cap Fund 1.46 9.84 11.68

Category Average 2.25 9.34 11.44

Nifty 500 6.02 11.06 11.12

Data Source: ICRA MFI Explorer

PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)

CAGR 1 Year 2 Years 3 Years

DSP Equity Opportunities Fund -0.06 8.70 12.27

IDFC Core Equity Fund 2.91 10.80 13.16

L&T Large and Midcap Fund -0.35 10.19 9.31

Category Average -1.05 8.78 11.27

Data Source: ICRA MFI Explorer

FOCUSED EQUITY FUNDS

PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)

CAGR 1 Year 2 Years 3 Years

Axis Focused 25 Fund 9.41 16.20 15.47

DSP Focus Fund -2.39 4.49 7.17

Franklin India Focused Equity Fund 2.78 8.47 9.19

Category Average 2.74 9.45 10.42

Nifty 50 11.70 12.70 11.21

Data Source: ICRA MFI Explorer

PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)

CAGR 1 Year 2 Years 3 Years

Category Average -0.32 9.06 11.59

S&P BSE Mid Cap -4.37 5.91 10.99

Data Source: ICRA MFI Explorer

SMALLCAP EQUITY FUNDS

CAGR 1 Year 2 Years 3 Years

Franklin India Smaller Companies Fund -6.59 5.10 10.73

Category Average 0.73 13.38 15.86

S&P BSE Small Cap -10.47 6.28 9.41

Data Source: ICRA MFI Explorer

PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)

CAGR 1 Year 2 Years 3 Years

Aditya Birla Sun Life Tax Relief 96 7.00 13.01 13.27

Category Average 3.71 10.31 11.15

Nifty 500 6.02 11.06 11.12

Data Source: ICRA MFI Explorer

VALUE EQUITY FUNDS

PAST PERFORMANCE (CAGR % RETURNS AS ON 28th SEPTEMBER, 2018)

CAGR 1 Year 2 Years 3 Years

HDFC Capital Builder Value Fund 7.62 13.03 13.81

Category Average 4.77 11.40 12.85