48

Employee benefit strategies

and social security systems
differ from one country to
other. Although each country is
dis nct, some of the common
benefits across the globe
include medical and re rement Vijay Chandok, MD & CEO,
ICICI Securi es Ltd.
benefits. Over the years, there
has been a fundamental shi in how employers deliver benefits,
thanks to increasing costs and liabili es. More and more employers
and governments today are heavily shi ing towards defined
contribu on (DC) re rement plans, with a small and s ll declining
propor on of par cipants in defined benefit (DB) plans. A DB plan is
one which guarantees a certain payout at re rement, while
benefits in DC plan depend on amount of money contributed during
the employment and the performance of the underlying
investment op ons.
According to a Towers Watson report, globally the pension fund
plans have been rising yearly. Pension data for 376 Fortune 1000
companies sponsoring U.S. defined benefit plans have an aggregate
of 87% pension funds at the year-end 2019, while it was 86% at the
year-end 2018. As per their analysis, there is an increase in the
pension plan assets of about 1.50 trillion dollars 2019 as against
1.36 trillion dollars 2018.
The greater shi from DB to DC plans suggests that the primary
responsibility to build sufficient corpus for re rement and other
goals lies with the employees. Though employers provide certain
benefits - mandatory as well as voluntary - the task to build strong
financial future lies on our shoulders.
India does have a re rement income system comprises of a
defined- contribu on Employee Provident Fund (EPF), an earnings-
related Employee Pension Scheme (EPS) and voluntary employer-
managed funds such as superannua on. The Na onal Pension
System (NPS) is gradually gaining popularity. Other common
benefits include group life cover, medical cover, employee stock
op on plans, etc. It is important to thoroughly understand these
available benefits, make the most of it, iden fy the gaps if any, and
fill it up for be er management of finances.
For example, EPF is a good tool for re rement planning. However,
one should not rely on it alone. Considering the rising infla on,
especially medical infla on, the corpus generated through debt-
oriented EPF may not always be sufficient to meet post-re rement
needs. It is important to have a balanced mix of growth as well
income-producing investments. Likewise, one should not rely only
on employer-provided life and medical cover. One should take an
addi onal, separate cover to ensure protec on through various life
stages.
This edi on takes you through various employee benefits available
and how to make the adequate use of these. No ma er how strong
your benefits may be, do not just rely on these alone. Do take into
account these benefits into your overall financial planning and work
towards how much more you need to start saving and inves ng
now.
It is never too late to start planning and inves ng for your financial
goals. We encourage you to take the first step towards your journey
of financial freedom.
Our message remains the same - 'Keep inves ng and stay invested
for your life goals.' Through this magazine and our website
www.icicidirect.com we want to make an earnest a empt to
partner with you in se ng and achieving your financial goals. Give
us an opportunity to serve you, walk into any of your
Neighbourhood Financial Superstore and talk to us.

ICICIdirect Money Manager 1 February 2020

Employee benefits form an integral part of the total compensa on
package for salaried individuals. In fact, employees in India give top
priority to salary and employee benefits over career progression,
according to a Randstad (global human resources company) Survey.
It is essen al to understand these benefits and make the adequate use
of it. Most common benefits offered in India are EPF (employee
provident fund), VPF (voluntary provident funds), gratuity, medical
insurance, life cover, ESOPs (employee stock ownership plan), leave
encashment, HRAs (house rent allowance), among others. In our cover
story of this edi on, we take you through these benefits in detail and
explain how to make the most of it. Go on and read about these
benefits as you try to integrate these into your overall financial
planning and reach your goals.
The February edi on of Money Manager also offers comprehensive
review and stock holdings of mutual funds recommended by our
research team. The top two stock picks of the months are also selected
by some of our finest research analysts. Further, if you wish to get
clarity on different aspects of personal finance or any other money
ma er through Ask our Planner, you may write to us at
moneymanager@icicisecuri es.com. So stay updated, start inves ng
and keep reading to stay financially fit.
I would also like to draw your a en on to our recently revamped
sec ons - Prime Numbers - with inclusion of more data points and
indicators - to let you have a comprehensive overview. So read on, stay
updated and involved. Do write in with your feedback and share your
thoughts at moneymanager@icicisecuri es.com.

Your magazine is now also available on www.magzter.com, a

digital newsstand.

Editor & Publisher : Abhishake Mathur, CFA

Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey
Coordinating Editor : Rhea Miranda
Editorial Team : Nithyakumar VP CFPCM, Sachin Jain, Research Team

ICICIdirect Money Manager 2 February 2020

MD Desk........................................................................................................ 1
Editorial......................................................................................................... 2
Contents........................................................................................................ 3
News............................................................................................................. 4
Stock ideas: Abbo India and United Breweries........................................ 5
Flavour of the Month: Employee benefits, know them all
Employee benefits differ from organiza on to organiza on, as the terms and
condi ons of the organiza on will defer based on their company's protocol.
Employees benefit are availed to the employees while they are working as well
at the me of re ring (exi ng from the firm). To understand the
employee benefits in a be er way, con nue to read on….................................. 11
Ask Our Planner
Our financial expert answers your personal finance queries …........................ 20
Mutual Fund Analysis
Which are the top performing mutual funds in current market scenario? Check
these top midcap funds recommended by our research team.…..................... 24
This month on iCommunity
Look out for an extraordinary financial pla orm for traders and investors...... 35
Equity Model Por olio................................................................................ 36
Quiz Time........................................................................................................ 40
Prime Numbers............................................................................................... 41

ICICIdirect Money Manager 3 February 2020

Central Government Employee? NPS to Old Pension Scheme switch possible
now – Check eligibility
There is going to be a one- me op on for the central government employees to get coverage of CCS
Pension Rules 1972, in place of the Na onal Pension System (NPS). This will be applicable for those
employees who were selected before 01.01.2004 but joined a er 01.01.2004. The Department of Pension
& Pensioners' Welfare under the Government of India has issued an Office Memorandum (OM) recently
thus giving an op on to the impacted central government employees to opt for old pension scheme (OPS)
instead of NPS. The one- me op on will only be for those Central Government employees whose selec on
for the appointment was finalised before 01.01.2004 but who joined Government service on or a er
01.01.2004.
Courtesy: Financial Express
Enhanced insurance cover of Rs 5 lakh on bank deposits from 4th February: RBI
Insurance coveron bank depositshas been increased to Rs 5 lakh from Rs 1 lakh effec ve on 4th
February, the Reserve Bank of India (RBI) said in a statement. The cover is provided by the Deposit
Insurance and Credit Guarantee Corpora on (DICGC), a wholly-owned subsidiary of the RBI. This, the
RBI said, has been done with a view to providing a greater measure of protec on to depositors. As the
insurance cover stands increased, the bankswill pay a premium of 12 paise against 10 paise per Rs 100
deposited. Deposit insurance was sta c at Rs 1 lakh since 1993.

Courtesy: Business Standard

UP's claim of unearthing 5 times India's gold reserves refuted by GSI
The euphoria over the claim that around 3,000 tonnes of gold reserves, worth Rs. 12 trillion, have
been discovered in U ar Pradesh's Sonbhadra district could not last even 24 hours, with the
Geological Survey of India (GSI) clarifying on 22nd February there had been no such discovery. The GSI,
headquartered in Kolkata, rebu ed the claims of the U ar Pradesh Directorate of Geology and Mining
(UPDGM), and said “miscommunica on” must have led to the wrong repor ng of facts. M Sridhar,
director general of the GSI, said nobody in the agency gave any such data. He said 52,806 tonnes of
gold ore was found in Sonbhadra district during the explora on work in 1998-2000. From this reserve,
only 160 kg of goldcan be extracted.

Courtesy: Business Standard

SEBI reviews margin framework for cash, derivatives segments

Markets regulator SEBI on 24th February reviewed the margin framework for cash and deriva ves
segments, in order to bring more efficiency in the risk management system. The framework, which has
been prepared in consulta on with the capital markets regulator's Risk Management Review
Commi ee, will come into effect from May 1 this year, the Securi es and Exchange Board of India
(SEBI) said in a circular. "For securi es with intra-day price movement of more than 10 per cent in the
underlying market for three or more days in past one month, the minimum total margins shall be equal
to the maximum intra-day price movement of the security observed in the underlying market in last
one month," SEBI said. This would be con nued ll monthly expiry date of deriva ve contracts that
falls a er comple on of three months from date of levy, it added.

Courtesy: Live Mint

ICICIdirect Money Manager 4 February 2020


Abbott India – Power brands growth, margin expansion to the fore
Company Background
Abbott India (Abbott) is the fastest
growing listed MNC in the Indian
pharma market (IPM). Abbott owns a
portfolio of 120+ brands and a
manufacturing site at Goa. The
company operates mainly in the
Gastro-Intestinal (GI), Vitamins &
Minerals, Neuro, Gynaecological and
Hormones domain (~91% of domestic
r e v e n u e s a s p e r A I O C D M AT
December 2019). Abbott also
distributes Novo Nordisk's insulin
products in India. The company also
has licensing agreement with Bharat
Biotech India Ltd to market vaccines.
Abbott group operates through two
legal entities in India (rank: 2nd,
domestic market share: 6.2%,
consolidated revenues of ` 8722 crore
as per AIOCD December MAT 2019)
namely, Abbott India and Abbott
Healthcare Private Ltd.
Investment Rationale
“Power brands” continue to grow
ahead of industry growth
Abbott has outperformed the industry
on a consistent basis in Women’s
Health, GI, Metabolic, Pain, CNS and
Vaccines. The company’s top 10
brands including (Duphaston-
Gynaecological, Thyronorm – Thyroid,
Udiliv, Vertin, and Duphalac– GI) have
together registered a revenue CAGR of
~18% during December 2015-19
(MAT basis). This has led to their
combined contribution in total
revenues growing from 51% in
December 2015 to ~60% in December
ICICIdirect Money Manager
STOCK IDEAS
2019. Thus, it is evident that revenue
growth has been driven by top brands
(power brands). Apart from this,
continuous new launches and line
extension (more than 100 products
launched in 10 years) in existing and
new segments is also driving growth.
We expect future launches of new
products from its key divisions, along
with brand extensions and access to
innovative molecules from global
parent to drive growth.
Margin improvement with better
return ratios
Abbott is a debt-free company and has
seen its core RoEs improving from 72%
in FY14 to 113% in FY19. EBITDA
margins have recovered from the lows
of 11.8% in FY14 (due to inclusion of
one its top brand (Thyronorm) under
price control) to 19.7% in 9MFY20.
Apart from this the recent tax
amendment has the effect of reducing
the company’s tax rate from 36% in
FY19 to 25.2% from FY20 onwards.
Continued new product launches,
volume led growth in Abbott India’s
top brands and intermittent price hikes
in its portfolio provide comfort on
overall financials. The company has
maintained dividend pay-out of ~35%
in the past four years with cash/share
of ` 793 in FY19.
Valuation & Outlook
The domestic pharma industry
is expected to grow in the range
of 9-11% per annum. Issues
such as NLEM and other
regulatory aspects are mostly
5 February 2020
 STOCK IDEAS

in the price. On the flip side, the on a fairly consistent basis (100
looming threat of Jan Aushadhi products in the last ten years).
and trade generics are some We expect revenues, EBITDA
head winds at this juncture. and PAT to grow at ~13%, 25%
H o w e v e r, w e c o n t i n u e t o and 30% CAGR, respectively, in
believe in Abbott’s strong FY19-22E. We arrive at a target
growth track in power brands price of ` 16880 based on 36x
and capability of new launches FY22 EPS of ` 469.
` Crore FY19 FY20 FY21E FY22E
Revenues 3,679 4,148 4,686 5,304
EBITDA 605 846 1,017 1,194
PAT 450 667 832 996
EPS (`) 211.9 313.9 391.7 468.8

` Crore FY19 FY20 FY21E FY22E

PE (x) 69.6 47.0 37.6 31.4
EV/EBITDA (x) 49.0 34.5 28.2 23.5
P/B (x) 15.6 12.8 10.4 8.5
ROE (%) 22.4 27.3 27.7 27.1
RoCE (%) 33.9 35.1 35.8 35.2

Particulars Amount
Market Capitalisation ` 31321 crore
Debt (FY19) ` 0 crore
Cash (FY19) ` 1684 crore
EV ` 29637 crore
52week H/L ` ` 15399 / ` 7138
Equity capital ` 21.3 crore
Face value ` ` 10
Risk & Concerns:
Addition of drugs under NLEM
In India, pharmaceutical prices are subject to regulation. Currently ~24% of the company’s sales are
under NLEM (e.g. Thyronorm, Duphalac). Any further additions to the National List of essential
medicines (NLEM) from the company’s product basket may lead to further price cuts
Government intervention and key policy changes
The government has been actively reviewing prices of pharmaceuticals and margins offered to trade.
Government push towards traded generics and the looming threat of Jan Aushadhi remain key
monitorable going forward
Product Concentration
The top 10 products contributed ~60% of the company's domestic revenues as per AIOCD MAT
December 2019

ICICIdirect Money Manager 6 February 2020

 STOCK IDEAS

ANALYST CERTIFICATION
We /I, Siddhant Khandekar, Inter CA, Mitesh Shah, CFA, Sudarshan Agarwal, PGDM(Finance), Research Analysts, authors and the names subscribed
to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities.
We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this
report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the
report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock
brokering and distribution of financial products. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number –
INH000000990. ICICI Securities Limited SEBI Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is
India's largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance,
general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com
ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in
India. We and our associates might have investment banking and other business relationship with a significant percentage of companies
covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their
relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding
positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in
fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.
Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed
herein.
ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared
by the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates,
rating, target price of the Institutional Research.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and
information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to,
copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI
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or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so.
Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with
applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this
company, or in certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been
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disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat
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required to inform themselves of and to observe such restriction.

ICICIdirect Money Manager 7 February 2020


United Breweries – resilient performance expected
amid sluggish environment
Company Background:
United Breweries (UBL), is the market
leader in the Indian beer market with
~53% market share, is well poised to
benefit from the opportunity arising
from the impending growth in per
capita consumption and an ever
enlarging base of population in the
legal drinking age. The company is
equipped with a strong portfolio of
brands and the largest distribution
network in India. With a leaner
organization structure and operational
control in the hands of global major
Heineken, product launches in
premium segment is seeing a renewed
thrust with the launch of Amstel,
Kingfisher Storm, its craft beer called
Kingfisher Witbier. The strategy would
enable the company to follow a dual
strategy of retaining its market share in
key brands (Kingfisher Strong and
Mild) thereby growing with the overall
beer pie (7-9% growth expected in
medium term) and also, kick start the
premiumisation trend within the
company (currently below 5% of the
sales).
Investment Rationale
Volumes stumble in Q3 but expected
to regain momentum
During 9MFY20, UBL grew its volumes
by 2% against H1 growth at 6%, due to
several factors such as an economic
slowdown, supply chain disruption
due to extra rainfall in few states (in
October) and new excise regime in AP.
However, with stabilization of the
Andhra pipeline and expected price
ICICIdirect Money Manager
STOCK IDEAS
hikes in few other states, the revenue
profile is expected to pick up. We
expect the market share for UBL to
move a little higher to 53% of the beer
industry in FY21E and FY22E. Further,
the management expects single digit
growth in FY20. We expect volumes to
grow at 6% CAGR in FY19-22.
New product launches continue to
perform well
During 9MFY20, in spite of the
downturn in beer volumes, Kingfisher
Ultra Max and Storm (launched last
year) have grown in double digits. UBL
will be introducing these new brands
into the north Indian market in Q4,
providing further thrust to them. Also,
UBL has been gradually introducing its
international brands into the Indian
market. Amstel has grown five-fold in
9MFY20, indicating strong demand for
these aspirational product. During
Q3FY20, UBL has also launched
Kingfisher Ultra Witbier into the fast
growing and premium craft beer
segment in the Karnataka, Goa
markets and will be followed by
launches in the Maharashtra, Delhi and
Haryana.
Raw material inflation expected to
soften; BUY
Hardened input costs impacted
9MFY20. While the management
expects the situation in the glass
industry (lowered supply) to stabilize in
12 months, barley cost is expected to
soften with a better harvest during the
March season. Premiumisation, along
with price hikes in existing portfolio and
8 February 2020
 STOCK IDEAS

a favorable state mix, would further aid
the margin expansion. Being an
underpenetrated segment (per capita
~2 litre consumption) and a youth
centric status of ready to drink social
drink, enables the sector to hold long
term growth potential. We have a BUY
rating on the stock with a target price of
` 1620 (~44x FY22 EPS)

` Crore FY19 FY20 FY21E FY22E

Net Sales 6,475 6,861 7,896 9,087
EBITDA 1,138 1,002 1,366 1,590
PAT 563 522 779 972
EPS (`) 21.3 19.8 29.5 36.8

FY19 FY20 FY21E FY22E

Mcap/Sales (x) 5.4 5.1 4.5 3.9
EV/EBITDA (x) 30.9 35.4 25.8 22.1
P/E (x) 62.4 67.3 45.2 36.2
RONW (%) 17.7 14.5 18.3 19.0
ROCE (%) 26.8 18.3 24.1 23.6

Particular Amount
Market Capitalization (` Crore) ` 35166 crore
Total Debt (FY19) (` Crore) ` 81 crore
Cash (FY19) (` Crore) 46.2
EV (` Crore) 35201.1
52 week H/L 1484/1185
Equity Capital (` Crore) 26.4
Face Value (`) `1

Key risks include: the primary raw materials for

Ü Beer distribution business in India is
subject to strict regulations. The
rules and regulation vary in different
states. Any change in policies by the
respective state governments with
regard to production, distribution or
marketing of Beer can impact the
operational performance of the
company. Also, changes in taxes and
other levies by the state government
can impact the financial performance
of the company
Ü The prices of barley (which is one of
manufacture of beer) and packaging
material have been hardening in
FY20, has impacted the margins of
beer companies. Any further
significant and sustained increase in
their prices can impact the
profitability of the company.
Ü In some of the states, price hikes are
decided by the government. If the
company is not granted price hikes or
the price hike is insufficient to cover
for increased input cost, it can
impact the margins of the company.

ICICIdirect Money Manager 9 February 2020

 STOCK IDEAS

ANALYST CERTIFICATION
I/We, Bharat Chhoda, MBA; Harshal Mehta MTech (Biotech) , Research Analysts, authors and the names subscribed to this report, hereby certify that
all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of
our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that
above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve
months and do not serve as an officer, director or employee of the companies mentioned in the report

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering
and distribution of financial products. ICICI Securities Limited is a Sebi registered Research Analyst with SEBI Registration Number – INH000000990.
ICICI Securities Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India's largest private
sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture
capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com
ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We
and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our
Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining
a financial interest in the securities or derivatives of any companies that the analysts cover.
Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding
positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in
fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.
Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed
herein.
ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by
the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating,
target price of the Institutional Research.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and
information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to,
copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI
Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or
keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated
securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable
regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in
certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made
nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or
considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated
to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers
by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any
investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may
not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and
needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should
independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange
rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past
performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks
associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking
statements are not predictions and may be subject to change without notice.
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mandated by the subject company for any other assignment in the past twelve months.
ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding
twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment
banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.
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Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third
party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any
material conflict of interest at the time of publication of this report.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company
mentioned in the report as of the last day of the month preceding the publication of the research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in
various companies including the subject company/companies mentioned in this report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
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This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state,
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eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform
themselves of and to observe such restriction.

ICICIdirect Money Manager 10 February 2020

 FLAVOUR OF THE MONTH

Employee benefits, know them all

Most employers offer a host of benefits - mandatory as well as voluntary - in order to
retain, motivate, and attract employees. In fact, more than half the companies in
India, surveyed by Towers Watson, ranked improving attraction and retention of
talent as the major focus of their benefit strategies, in the company's 2019 Asia
Pacific Benefit Trends survey. 65% employees stated that their needs are
considered similar to customers' needs and 48% employees feel the benefit
package offered to them are appropriate. Often, the combined value of these
benefits forms a significant portion of your total pay and can be quite valuable.
Hence, it is important to understand the ins and outs of these benefits to take the full
advantage. Whether you have just started a new job or have been working with the
same company for years, you should make sure you are making the most of your
employee benefits. Here's a handy guide. Read on.
Employee Benefits: Types of employee opportunities
Employee benefits is the additional availed:
requirements that is provided by the Ü Mandatory Benefit: legally
employer to the employee for its authorized benefits that have to
service at the organization. These be taken by the employees.
benefits give the employees Compensation
flexibility to work and gain monetary Compensation are the amount paid
benefits. Even if the motive for giving by the employer to the employee in
these benefits is to get maximum case of any injury caused at the
productivity from the employees, the work. It causes the medical
benefits are an advantage to the expenses and the expenses that
employee. Employers not only give could cause due to the task allotted
monetary benefits, but it makes sure at work. There are 2 types of pay in
their employees' health remains compensation – Basic and Variable
intact. Here, an employee can fulfil pay. Basic includes all the retired
his present wants from the salary benefits such as superannuation,
received, avail few allowance to provident fund, gratuity and house
save on cost and also protects its rent allowances that is
future by way of retirement benefits proportionated to the basic salary.
it offers such as gratuity, pension Variable pay is based on the
plans, various insurance policies, performance of the employee as per
etc. Let's look at a few employee its role, the appraisal and
benefits stated below; accomplishment of the goals.

ICICIdirect Money Manager 11 February 2020


As per the Workmen's Compensation
Act, 1923, the workmen's family gets
compensated, if employee gets
disabled or dead. Eligible to railway
servants and also individuals of
Schedule II i.e. persons employed at
factories, mines, plantations,
mechanical propelled vehicles,
construction work and certain other
hazardous occupants.
Basic Salary and dearness
allowance
Basic salary is the set income given to
employees without any addition or
deduction of the overtime, allowances
or bonus. This is the fixed amount by
employer to the employee for its work
performed or its duties which is based
on its designation. The salary scale will
differ from industry to industry.
Dearness allowance is provided by
government in order to set-off the
inflation price. This is calculated twice
a financial year. Employees of central
government calculate dearness
allowance as % of DA = {(Average of
the All-India Consumer Price Index
(Base year -2001 =100) for the last 12
months -115.76)/115.76} x 100. And
employees of central public sector
calculate dearness allowance as % of
DA = {(Average of the All-India
Consumer Price Index (Base year -
2001 =100) for the last 3 months -
126.33)/126.33} x 100.
Provident Fund
In a pension fund, an individual need to
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
set aside a few cash from their
monthly salary into this fund. This fund
could be utilized at the time of
retirement. Employer as well as
employee both contribute 12% of
monthly basic pay towards
employee's provident fund.
The EPFO organization operates 3
schemes:
Employee Provident Fund Scheme,
1952 - Under this scheme, first the
employee has to compulsorily
contribute to the fund. Employees get
wages not exceeding Rs. 6,500. This
scheme enables employees with
retirement benefit, medical care,
education of children, family obligation
and financing of insurance policies. A
death relief fund is set aside for the
family members.
Employees Deposit Linked Insurance
Scheme, 1976 – to provide an
additional social security, central
government is availing Life Insurance
to the family of the deceased member
of the provident fund. The nominee
would receive additional amount equal
to the average balance in the provident
fund account of the deceased during
preceding 12 months.
Employees' Pension Scheme, 1995 –
this scheme is also known as
superannuation that intends to secure
part of income for your retirement. It
could be a defined payment plan or
benefits attributable to employees at
the time of retirement, in case of
12 February 2020

permanent disability or to the family
members in situation to death of the
employee. In this scheme, the
employer contributes 8.33% of its
salary in the employee's pension fund.
The contribution is capped to 8.33% of
Rs. 6,500. Since, September 2014 the
act has increased the contribution to
8.33% of maximum of Rs. 15,000 (or
Rs. 1,250) as compared to the previous
norm this new norm will be calculated
as per average of last 5 years' salary
unlike the average of one year stated in
the old norm. This benefit can be
availed only if the individual completes
10 years of service in the organization
(not necessary continuous service).
HRAs exemption benefits.
House rent allowance is an exemption
availed to salaried employees to
reduce their rent expenditure. Its
eligible to employees living in rented
houses and should not be owning the
residential house. Section 10-13A of
Income Tax Act, 1961 provides HRA
exemption to salaried employees.
Amount would be Minimum of the
below stated;
Ü Actual HRA received,
Ü Rent paid - 10 % of the Salary
(Basic + Allowance), or
Ü 50% of basic salary residing in
metro cities like Kolkata, Chennai,
Mumbai and Delhi and 40% of
basic salary for individuals not
residing at the places mentioned
above.
ICICIdirect Money Manager
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If the rent payment is more than Rs. 1,
00, 000 per year, the employee is
required to submit the landlord's PAN
card and rent receipts for claiming
exemption over HRA.
One can also claim HRA benefit while
living with family. For example, Ms.
Desai's company is providing her the
HRA exemption, but as she's living
with parents it's a residential property.
Thus, she could claim by getting into a
rental agreement with her parents and
pay monthly to her parents while she
avails the tax benefit.
Self-employed individuals who don't
receive HRAs, could claim up to Rs.
60,000 deductions under section
80GG.
Medical:
Medical cost is one of the most
expensive cost and to save on those
cost individuals take a medical
insurance. Organizations now secure
their employees under the medical
policy in case of sickness, diseases or
accident. While employees have
medical plan, they could increase the
sum assured by adding a top up plan
for their policy. The tools of payment
that is reimbursement facility which
refunds the expenses incurred for the
treatment, while there is a cashless
facility too that enables employees to
get treated immediately without any
payment all of this is based on the
terms and conditions mentioned in the
policies. Every year there is a free
13 February 2020

medical health check-up camp set for
the employees at the organization. A
few organizations benefit the
employee's family members by
insuring them in the plan as well.
Organization also have maternity
policies for female employees.
Leave
Due to some unavoidable reason an
employee wishes to be absent at
work, in that situation his/ her leave is
en-cashed. Organization grants
sufficient leaves to the employees to
be fresh and work more productive.
Leaves are computed yearly based on
the company's policy. The different
types of leaves given to employees are
casual leaves, sick leave, planned/
privilege leave, study leave, maternity
leave generally granted to female
employees that duration could be 6 or
more months and paternity leave
which may be granted to male
employees before or at the date of
delivery of their child. Unutilized leaves
get lapsed in the end of the year and
only a few leaves get carryforward for
the next year. Few companies have a
leave encashment facility where the
accumulated leaves are paid off at the
retirement, while working duration or
at the time of leaving the organization.
Bonus
Bonus is an additional monetary
benefit that is added to the income of
the employee on an annual basis
during an occasion, festival, new year
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
or financial year. Some organization
also reward bonus to their employee's
based on their performance in the
organization. Payment of Bonus Act
1965, is applicable to workers and
every other establishment that has
workmen exact and above 20
members in the organization. This act
states to provide minimum of 8.33% of
the wage or salary earned by the
employee during the accounting year
or one hundred rupees whichever is
higher. It is applicable to those salaried
employees whose salary is not less
than Rs. 21,000 per month and
working not less than 30 days in an
accounting year will receive bonus.
Gratuity
Gratuity is a lump sum amount
employees receive at the end of the
service which is based on the years of
service provided as per the Gratuity
Act ,1972. Eligibility of this benefit is
open to factories, old fields,
plantations, mines, ports, railways,
motor transport, undertakings,
companies, shops or any other
establishment. A term of 5 years
needs to be completed in the
organization to avail gratuity service.
In case of the death of the employee,
the gratuity amount is transferred to
the employee's family members. This
5-year condition is excluded for
employees in situation of death or
disabled.
Gratuity value increases with the
salary as well as the tenure of
14 February 2020
 FLAVOUR OF THE MONTH

employment. A few organizations keep which could be single or group

aside a gratuity fund for their gratuity. Gratuity amount is received at
employees as a part of financial the time of retirement or
planning. A few insurance companies superannuation, either resignation,
have schemes related to annuity termination or disability.
Category Tax Exemption
Government Employees Fully exempt
Corporate Employees under Exemption is based on the lower value of the following:
gratuity act 1972
Ü Actual gratuity received
Ü 20 lakhs
Ü No. of completion of years in the organization or part thereof in
excess of 6 months * 15/26 * salary drawn last year.
Corporate Employees not Exemption is based on the lower value of the following:
under gratuity act 1972
Ü Actual gratuity received
Ü 10 lakhs
Ü half of average salary * completed years of service in the
organization
Ü Average salary i.e. average salary of last 10 months preceding
retired month.
Government employees receiving Voluntary Retirement Scheme is
gratuity are fully exempt. Tax is providing the retirement benefits and
exempted up to Rs. 20 lakh from the payment even before reaching the
previous ceiling of 10 Rs. Lakh which actual date of retirement / before
comes under the section 10 (10) of superannuation phase. This is an
the Income Tax Act. As per the CBDT agreement between employer and
(Central Board of Direct Tax) employee stating that employee
Notification no. S.O. 1213 (E), dated agrees to voluntary separate from the
8th March 2019, states that organization with the retirement
employees at their retirement, benefits and payment. From an
resignation, death or disability on or organization perspective it is to
after 29th March 2018 would be downsize or reduce the workers
exempted a limit of Rs. 20 Lakh. whereas from an employee
Ü Voluntary benefits: these perspective it is an opportunity to exit
benefits are optional and no before retirement with attached
compulsion. So if employees benefits.
wish to opt for these benefits VRS differs from company to
they can. company, employees attaining 40
Voluntary Retirement Scheme years or completed 10 years of
(VRS) service in the organization are eligible

ICICIdirect Money Manager 15 February 2020


for a voluntary retirement scheme.
All the employees and executive can
take this option but the director of the
company cannot. Along with an VRS
an employee is ensured of pension
and gratuity. Companies could
modify their VRS scheme based on
rule 2BA of Income tax rules. VRS
allows you to avail maximum of Rs. 5
Lakh under section 10 (10C) of the
income tax but this deduction could
be used only once and cannot be
availed in any subsequent years.
Voluntary retirement schemes
exclude a list of amount such as; 3
month's x Last drawn salary x years
of completed service and Last drawn
salary x balance of months left before
the date of retirement or
superannuation.
Superannuation:
The word superannuation is similar
to the word retirement. Every year
employers contribute towards
superannuation benefits and during
retirement employees receive
pension plan based on the company
policy rules. This benefit is enabled
to an employee at the time of
retirement offered to only a few
employees. Not all companies offer
Superannuation to its employees.
Superannuation are of 2 option
namely defined benefit plan and
defined contribution plan. In a
Defined benefit plan, the benefit is
defined irrespective of the
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
contribution made by the employer.
This benefit is calculated on the
number of years of service, last salary
drawn by the employee and rank
service. In generating this benefit the
risk lies completely over an employer.
In a Defined contribution plan, the
benefits are not defined and are based
on the contributions and market
forces. Most of the employees opt for
this scheme. Maximum amount
contributed by the employer is 15% of
the basic salary, employee have the
freedom to contribute in this plan.
Here, the risk lies with the employee
as he is not known to the amount to be
received at retirement.
At the time of retirement, employee
could withdraw up to 1/3 of the
accumulated benefit and the balance
could be invested in annuity such as
pension funds with insurance.
Taxability on superannuation at
retirement is 1/3rd of the value
becomes tax free while the remaining
2/3rd is taxable to the employee on
immediate withdrawal. Tax could be
avoided on the remaining 2/3rd
amount by investing in annuity
pension plans. But, the returns earned
on that amount gets added to your
income and would be taxed according
to the tax slab. As per the budget 1st
February 2020, employer's
c o n t r i b u t i o n t o N P S, P P F o r
Superannuation fund amount in a year
should not exceed Rs. 7.5 lakhs over
and above would be taxable based on
16 February 2020

the tax slab.
ESOP (Employee stock ownership
plan)
Employee stock ownership plan is
where the company provides its
employees an opportunity to
purchase number of stocks of the
company at a certain price within the
vesting period. Before exercising the
option employees are required to
check the vesting period that states
the employee has to work in the
organization until part or the entire
stock option could be exercised.
That is, ideally the vesting period
could be 4 years, of which if
employee leaves the organization it
losses on the ESOP provided.
Companies directors and promoters
have 10% equity share already so
they get excluded from the ESOP
option. Whereas employees that are
full time and part time director of the
company; current employee of
subsidiary, associate or holding
located anywhere in India or abroad;
or a permanent employee working in
Indian or Foreign office of the
company can avail the ESOP option.
ESOP have tax implication mainly;
While purchasing – during the
allotment time, the taxable amount
will be considered under Income
from Salary. It is calculated as the
difference between fair market value
on the date of exercise and the
exercise price.
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
While selling – the taxable amount is
considered under Income from
Capital gains. If the shares are sold
larger than fair market value on the
exercise date, he is liable to pay the
capital gains.
Healthcare Benefits
Health care are one of the most
expensive and essential benefit
provided to the employees. This
benefit includes the reimbursement of
medical bills/expenses, discounts on
medical expenses, group health
insurance, cashless treatment, etc.
Events and various other wellness
treatment:
Various events and programs are
conducted based on health
measures. The organisations are
more concerned about the health of
the employees and they keep
different drives that keep them
engaged to stay healthy such as
health management, disease
management, fitness training,
achievement awards, yoga and
various forms of exercises. Facilities
like gym and gaming/ sports room is
also availed to the employees.
Miscellaneous Benefits:
Ü Many other such benefits are
provided to the employees such
as;
Ü Providing employees discounts or
coupon for lunch/ food.
Ü Having a flexible time of working
17 February 2020

hours
Ü Travelling services such as
shuttle or cab service is provided
for the employees staying far
from the work station. Recent
addition of car pool/ bike pool
travel service is availed to
employees at a cheaper rate.
This initiates lesser pollution as a
set group of employees travelling
to the same destination could
share the cost and fuel utilized
separately.
Ü Education Assistance – Most of
the organization provide
reimbursement facility on the
cleared examinations. While a
few provide funds to complete a
course such as Masters. A few
common certification is done by
the organization quarterly, based
on increasing the knowledge of
their employees. These
programs are benefiting the
employees financially for their
short term goals. Some firms
have scholarship provided to the
employees for completing a
course, while other employees
with higher grade could avail
scholarship for their children as
well as per the company's rules.
Some get funded to study abroad
and rejoin the company on
completing their course, here a
few would get sponsored for stay
and travel too.
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
Ü Incentive Benefit – another
benefit that is given to the
employees who reach their set
targets. Allowance are paid for
extra shifts and night duties.
Ü Electronic accessories – Every
organization provides a SIM card
facility to the employees, with
enough of internet coverage. For a
few the Laptop facility is also
granted as per their experience
and job role.
Ü Post gaining an experience/
achieving a level of position in the
firm, employees can have their
own personal vehicle like car to
travel for work provided by the
organization. For purchasing the
vehicle, a small part payment
needs to be made by the
employee while the remaining is
covered by the company.
Ü In securities, employees get an
upper advantage that is discount
on brokerage for trading. Along
with that charges implied on
Demat account is free for a year
from the date of account opening.
Likewise, there are different
schemes offered especially to
employees of different industry.
Ü At situations when employees
who cannot make it to their
working station could utilize the
work from home facility. This
facility is eligible only to the
employees on a higher position. If
18 February 2020

an employee is sick and is unable
to reach at work, they could
utilize this facility and save their
paid leaves facility.
Ü Some organization get travel
allowances that is they get paid
for their foreign trips.
Reimbursement of this expense
is possible, but only to the extent
of a limit set by the organization.
Basic steps to be added in your
worklist:
Ü A few steps are mentioned below
in order to maximize the
employee benefits. An employee
should ideally implement it every
year.
Ü Check your goals and budget
Ü Review the employee benefits
The views expressed in the article are personal views of the author and
do not necessarily represent the views of ICICI Securities
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
provided by your organization
Ü Pick out the optional benefits not
required
Ü Highlight the essential benefits
required to achieve your goals
Ü Final review (List down the total
value of the benefits availed)
Summing up:
Every organization is concerned for
their employee's good health and
personal development. They are
helping the employees to manage
their cost by providing various
benefits. But, its likely on you as an
employee to utilize the maximum
benefits provided by the employer. As
its your benefits – don't forget to use
them.
19 February 2020

How to utilize my pension amount effectively?
Q. I have a pension plan for
last twelve years, and I am
depositing ` 15,000 per annum
towards life stage pension of ICICI
Prudential life as its premium. By
now I have deposited ` 1,80,000 and
the entire corpus is amounting
`3,25,000 now as on 18 Dec 2019
and policy maturing on 15th Mar ‘20
on attainment of 50 year of age. I
know that since it is a pension plan,
the annuity will be taxable. Now My
company is asking for annuity plan
for pension so kindly advice which is
best annuity plan for me at this age
where as I am a central Govt
employees retirement date 30 Jun
2027 and will be getting pension
appx 30000/- per month on
retirement. My present liabilities are
my son and daughter marriage aged
25 and 22 years respectively. Son is
employed, daughter studies. Or I
should postpone my annuity for next
5 to 7 year by paying premium at
same rate. Kindly advise me for the
same.
-Kanaram Thakan
A. If you do not require the
annuity now, you may postpone your
vesting date (i.e. date from when you
start receiving annuity) by another 7
years; however, you may not be able to
ICICIdirect Money Manager
ASK OUR PLANNER
continue paying premium, as the premium
paying term is over. However, the
accumulated funds, would remain invested
in the fund(s) chosen by you. You would
have to intimate the postponement of
vesting date to your insurance company
atleast one month before the original
vesting date.
Q I was having a ICICI PRU LIFE
STAGE POLICY = Rich Fund. I have paid
the premium of 625000 from
commencement date of 25.7.2008. I
have received the sum of Rs. 1060908 on
29.11.2008 on surrender of policy. Will
this amount be taxable in my hand?
Please guide.
- Vishal Pasad
A. Being a pension policy, the entire
surrender proceeds shall be added to your
income and taxed as per the income slab,
if you have claimed any deduction on the
premiums paid for the policy. However, if
deduction was not claimed for the
premiums paid, then the accumulated
gains (Surrender Value Less Total
Premiums Paid) will be added to your
income and taxed as per the tax slab.
Here, surrender value would refer the
entire fund value, after deducting
surrender charges, if any.
Q. I would like to register myself
for EIP scheme. But before registering
20 February 2020

pl clarify my following queries.
Suppose, If I invest Rs. 2000/- per
month in the form of SIP what would
be your Re-Balancing Charges per
month. Pl inform me your nominal
charges for a SIP of Rs. 2000/- per
month. Secondly, Can I sell ETF or
part of it at any time at my will?
- Vijay Saraf
A. There are no additional
charges for re-balancing transactions.
Also, you do not pay any brokerage for
buy & re-balancing transactions
triggered through the EIP platform.
Other statutory charges like STT,
Stamp Duty, SEBI Turnover charges
etc. will be levied as usual. However, if
you place buy/sell orders in our
recommended ETFs outside the EIP
platform, i.e. through the 'Place Order'
page, you will incur brokerage as per
your brokerage plan.
There are no withdrawal/exit
restrictions or charges. All the ETFs
purchased is visible to you in your
'Demat Allocation' page. You can sell
these as per your wish, after the units
are credited to your demat account.
For the convenience offered by the EIP
platform, we charge an advisory fee of
0.15% per quarter, on the quarterly
average Assets Under Advice (AUA),
which will be debited from your linked
ICICI bank account. AUA is the average
ICICIdirect Money Manager
ASK OUR PLANNER
of your end of day portfolio value for
any quarter. The first debit is made
after the end of the first quarter from
the subscription date. Whether you
invest in EIP through lumpsum or SIP,
the above mentioned structure and
features remain the same.
Q. I am planning to invest in
PPF and I'm an account holder of
ICICI. My one doubt is if I invest 1.5
lacs by 5th of January will the
interest be counted for this financial
year i.e.,2020-2021. or 2019-2020.
As the FY of 2019-2020 ends in
march.
- Rahul Kumar Singh
A. The interest in PPF will be
calculated on the minimum balance in
your PPF account between the 5th and
the last day of every month. Hence, if
you invest a lumpsum on Jan.5th, then
interest for Jan., Feb. & Mar. will be
calculated and credited by the end of
March. Hence, it's better to invest the
lumpsum at the beginning of the
financial year (i.e. before April 5th) to
get the interest benefit for all the
months of the year. Alternatively, if you
are want to invest into it monthly,
make sure you invest (i.e. your PPF
account is credited with the
investment amount) on or before the
5th of every month. The interest thus
calculated will be credited every year
by the end of the financial year.
21 February 2020

Q. I surrendered my ULIP and
got the entire proceeding
transferred to my bank account.
Is the entire amount taxable or only
the gains that is accured is taxable?
-Sivakumar Shanmugasundaram
A. If the policy has a life cover,
then under Section 10(10D), the
surrender proceeds is exempt from
tax, if the sum assured was atleast 5
times of the annual premium (if the
policy was purchased between April 1,
2003 and March 31, 2012) or 10 times
of the annual premium (if the policy
was purchased on or after April 1,
2012), during the entire duration of the
policy. Else, the accumulated gains
(Surrender Value less Total Premiums
Paid) will be added to your income and
taxed as per the tax slab.
If the policy did not have a life cover,
then the entire surrender proceeds
shall be added to your income and
taxed as per the income slab, if you
have claimed any deduction on the
premiums paid for the policy. If
deduction was not claimed for the
premiums paid, then the accumulated
gains (Surrender Value less Total
Premiums Paid) will be added to your
income and taxed as per the tax slab.
Q. How does the tax
calculation work every time you
rebalance?
ICICIdirect Money Manager
ASK OUR PLANNER
-Brundhabhan
A. EIP is a basket of 4 different
Exchange Traded Funds (ETFs) - 1)
Equity - Large Cap, 2) Equity - Mid Cap,
3) Debt (Govt. Securities), 4) Gold.
Taxation will be arising as and when
the ETFs are sold (sell orders placed by
you / sell orders placed during re-
balancing) and calculated at ETF level,
as below as of today:
1. Equity ETFs:
Ÿ Short Term Capital Gain (if holding
period <= 12 months): Tax is
calculated at fixed rate of 15% on
total gains.
Ÿ Long Term Capital Gain (if holding
period > 12 months): Tax is
calculated at 10% on total gains
above Rs. 1 lakh (the limit of Rs. 1
l a k h i s f o r a l l E q u i t y LTC G
throughout any financial year).
2. Non-Equity ETFs (Debt / Gold):
Ÿ Short Term Capital Gain (if holding
period <= 36 months): Tax is
calculated as per the slab rate of
the investor.
Ÿ Long Term Capital Gain (if holding
period > 36 months): Tax is
calculated at 20% of the indexed
gains.
All such capital gains will be part of the
capital gains statement available in
your ICICIdirect.com login.
22 February 2020
 ASK OUR PLANNER

On the tax amount calculated above,
surcharge is applicable for individuals /
HUFs, if income of such individuals /
HUFs exceed Rs. 50 lakhs. Surcharge
rate is 10% if income exceeds Rs. 50
lakhs but does not exceed Rs. 1 crore;
15% if income exceeds Rs. 1 crore.
Health and Education cess @ 4%
would apply on aggregate of tax &
surcharge.

Do you also have similar queries to ask our experts? Write to

us at:moneymanager@icicisecurities.com.
ICICIdirect Money Manager 23 February 2020
 MUTUAL FUND ANALYSIS

Investing in Midcap Funds

After remaining under pressure from the start of July till mid-September
2019, the equity market saw a sharp turnaround after the government's
unexpected corporate tax rate cut announcement. The same, along with
positive global markets helped the Sensex scale back to all-time highs of
above 40000 levels.
While the midcap index participated in the recent market rally, small caps
continued to underperform as investors remained cautious in their
approach. However, we believe the broader markets are likely to perform
better, going forward.
While the Sensex has regained its all-time high levels, midcap and small
caps remained well below their peak levels. Low interest rates, expected
recovery in the second half and continued government measures are
likely to revive sentiments in the broader markets.
Investors who continued their SIP during the recent volatile markets have
benefited the most after markets rebounded. It has been repeatedly
witnessed that investors who simply continue their SIPs without looking
at the market and getting swayed by sharp short-term market corrections
benefit the most.
The government is expected to continue its coordinated fiscal and
monetary response to boost growth and lift sentiments. Some positives
like support for real estate and allied sectors, accelerated Government
spending to release liquidity, lower interest rate, and easy global liquidity
will all help revive India's sluggish growth and keep market sentiments
positive from a medium-to-long-term perspective.

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 24 February 2020

 MUTUAL FUND ANALYSIS

Fund name: Kotak Emerging Equity Scheme

Fund Manager’s name: Pankaj Tibrewal

Hold Percentage
Company Name Industry Type Rating Jan-20 Dec-19
Tri-Party Repo (TREPS) Miscellaneous Cash & Equivalent 6.3076 3.6558
Supreme Industries Ltd. Plastic Products Equity 4.1525 3.7178
Coromandel International Ltd. Fertilizers Equity 4.0412 3.7797
PI Industries Ltd. Pesticides & Agrochemicals Equity 3.3770 3.4622
The Ramco Cements Ltd. Cement & Construction Materials Equity 3.3391 3.1218
AU Small Finance Bank Ltd. Bank - Private Equity 3.2557 2.8747
Schaeffler India Ltd. Bearings Equity 2.8903 3.1781
Thermax Ltd. Engineering - Industrial Equipments Equity 2.7572 2.7098
Atul Ltd. Chemicals Equity 2.4279 2.7085
Tata Consumer Products Ltd. Tea/Coffee Equity 2.3739 2.2752
Sheela Foam Ltd. Household & Personal Products Equity 2.3167 2.1791
Solar Industries (India) Ltd. Chemicals Equity 2.2035 1.9980
Kajaria Ceramics Ltd. Ceramics/Marble/Granite/Sanitaryware Equity 2.1051 2.1780
Mahindra & Mahindra Financial Services Ltd. Finance - NBFC Equity 2.0446 1.7947
SRF Ltd. Diversified Equity 1.9469 2.0216
Shree Cement Ltd. Cement & Construction Materials Equity 1.9124 1.9356
Cadila Healthcare Ltd. Pharmaceuticals & Drugs Equity 1.7380 1.6368
Torrent Pharmaceuticals Ltd. Pharmaceuticals & Drugs Equity 1.6746 1.8336
APL Apollo Tubes Ltd. Steel & Iron Products Equity 1.6610 1.8129
Indraprastha Gas Ltd. Industrial Gases & Fuels Equity 1.6292 1.6299
Page Industries Ltd. Textile Equity 1.6095 1.6823
Exide Industries Ltd. Batteries Equity 1.5267 1.4781
Voltas Ltd. Air Conditioners Equity 1.4356 1.4751
RBL Bank Ltd. Bank - Private Equity 1.4354 1.4269
The Federal Bank Ltd. Bank - Private Equity 1.4353 1.4994
Axis Bank Ltd. Bank - Private Equity 1.4124
1.4779Cummins India Ltd. Diesel Engines Equity 1.3745 1.2263
Ratnamani Metals & Tubes Ltd. Castings/Forgings Equity 1.3640 1.3375
Apollo Hospitals Enterprise Ltd. Hospital & Healthcare Services Equity 1.3612 1.3519
Jindal Steel & Power Ltd. Steel/Sponge Iron/Pig Iron Equity 1.2835 1.3992
Shriram City Union Finance Ltd. Finance - NBFC Equity 1.2672 1.5022
Finolex Cables Ltd. Cable Equity 1.2253 1.3086
Oberoi Realty Ltd. Construction - Real Estate Equity 1.2153 1.2806
IndusInd Bank Ltd. Bank - Private Equity 1.2099 1.6595
Max Financial Services Ltd. Finance - Others Equity 1.2096 1.2783
Godrej Agrovet Ltd. Consumer Food Equity 1.2093 1.2763
MRF Ltd. Tyres & Allied Equity 1.1731 1.2770
Motherson Sumi Systems Ltd. Auto Ancillary Equity 1.1704 1.3177
Lux Industries Ltd. Textile Equity 1.1660 1.1576
State Bank Of India Bank - Public Equity 1.1351 1.2470
Bharat Electronics Ltd. Engineering - Industrial Equipments Equity 1.0846 1.1479
City Union Bank Ltd. Bank - Private Equity 1.0651 1.2322
Hindustan Petroleum Corporation Ltd. Refineries Equity 1.0443 1.1566

ICICIdirect Money Manager 25 February 2020

 MUTUAL FUND ANALYSIS

Hold Percentage
Company Name Industry Type Rating Jan-20 Dec-19
Sundaram Finance Ltd. Finance - NBFC Equity 1.0435 1.1853
Larsen & Toubro Ltd. Engineering - Construction Equity 1.0270 0.8819
Hawkins Cookers Ltd. Consumer Durables - Domestic Appliances Equity 1.0132 0.9705
Amara Raja Batteries Ltd. Batteries Equity 0.9878 1.0051
V-Guard Industries Ltd. Electric Equipment Equity 0.9476 1.0030
Persistent Systems Ltd. IT - Software Equity 0.8935 0.9628
Eris Lifesciences Ltd. Pharmaceuticals & Drugs Equity 0.8597 0.9618
SKF India Ltd. Bearings Equity 0.8540 1.0261
Bata India Ltd. Retailing Equity 0.8129 0.9036
Cholamandalam Financial Holdings Ltd. Finance - Investment Equity 0.7701 0.8044
Emami Ltd. Household & Personal Products Equity 0.7346 0.8833
Alkem Laboratories Ltd. Pharmaceuticals & Drugs Equity 0.7135 0.6853
BEML Ltd. Engineering - Industrial Equipments Equity 0.7048 0.7381
Gujarat State Petronet Ltd. Gas Transmission/Marketing Equity 0.6683 0.6615
Future Retail Ltd. Retailing Equity 0.6380 0.7561
Laurus Labs Ltd. Pharmaceuticals & Drugs Equity 0.6265 0.5989
PNC Infratech Ltd. Engineering - Construction Equity 0.6019 0.6648
Balkrishna Industries Ltd. Tyres & Allied Equity 0.5561 0.5888
Kewal Kiran Clothing Ltd. Textile Equity 0.4993 0.5705
ICICI Securities Ltd. Finance - Stock Broking Equity 0.4575 0.4523
Navneet Education Ltd. Printing And Publishing Equity 0.4067 0.4659
Edelweiss Financial Services Ltd. Finance - NBFC Equity 0.3660 0.4793
Kalpataru Power Transmission Ltd. Transmission Towers / Equipments Equity 0.3305 0.3485
Kirloskar Oil Engines Ltd. Engineering - Industrial Equipments Equity 0.2732 0.3084
Ramkrishna Forgings Ltd. Forgings Equity 0.2076 0.2550
HDFC Bank Ltd. Bank - Private Deposits 0.1521 0.1680
WPIL Ltd. Compressors / Pumps Equity 0.0631 0.0747
Net Current Asset Other Cash & Equivalent -0.7770 -0.1039

You can view performance of other schemes being managed by the fund manager
of this scheme on the following link:
http://www.kotak.com/MF_Factsheet/equity.html

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 26 February 2020

 MUTUAL FUND ANALYSIS

Fund name: L&T Midcap Fund

Fund Manager’s name: Soumendra Nath Lahiri / Vihang Naik

Hold Percentage
Company Name Industry Type Rating Jan-20 Dec-19
Tri-Party Repo (TREPS) Miscellaneous Cash & Equivalent 3.8709 3.1536
City Union Bank Ltd. Bank - Private Equity 2.8042 3.0258
Cholamandalam Investment & Finance Co. Ltd. Finance - NBFC Equity 2.7294 2.7152
Manappuram Finance Ltd. Finance - NBFC Equity 2.3408 2.3553
Shree Cement Ltd. Cement & Construction Materials Equity 2.2318 2.1070
The Ramco Cements Ltd. Cement & Construction Materials Equity 2.2181 2.2850
Berger Paints India Ltd. Paints Equity 2.1563 2.1168
Bayer CropScience Ltd. Pesticides & Agrochemicals Equity 2.0913 1.9241
Cummins India Ltd. Diesel Engines Equity 1.9750 1.0606
ICICI Securities Ltd. Finance - Stock Broking Equity 1.9189 1.7694
Supreme Industries Ltd. Plastic Products Equity 1.9158 1.6902
Sundaram Finance Ltd. Finance - NBFC Equity 1.8772 1.9887
Ipca Laboratories Ltd. Pharmaceuticals & Drugs Equity 1.8745 1.8080
Godrej Properties Ltd. Construction - Real Estate Equity 1.8658 1.8206
Jindal Steel & Power Ltd. Steel/Sponge Iron/Pig Iron Equity 1.8657 2.2815
Emami Ltd. Household & Personal Products Equity 1.8565 2.0822
Abbott India Ltd. Pharmaceuticals & Drugs Equity 1.8126 2.2257
Ratnamani Metals & Tubes Ltd. Castings/Forgings Equity 1.8037 1.7149
Aarti Industries Ltd. Chemicals Equity 1.7921 1.6119
Coromandel International Ltd. Fertilizers Equity 1.7483 1.5703
MRF Ltd. Tyres & Allied Equity 1.7061 1.7323
Atul Ltd. Chemicals Equity 1.6637 1.4629
Multi Commodity Exchange Of India Ltd. Finance - Stock Broking Equity 1.6569 1.6560
Voltas Ltd. Air Conditioners Equity 1.6108 1.6317
Thermax Ltd. Engineering - Industrial Equipments Equity 1.6030 1.7310
Oberoi Realty Ltd. Construction - Real Estate Equity 1.5766 1.6356
Kajaria Ceramics Ltd. Ceramics/Marble/Granite/Sanitaryware Equity 1.5315 1.4780
Max Financial Services Ltd. Finance - Others Equity 1.4730 1.6581
The Indian Hotels Company Ltd. Hotel, Resort & Restaurants Equity 1.4542 1.5804
Johnson Controls - Hitachi Air Conditioning India Ltd. Air Conditioners Equity 1.3839 1.1748
AU Small Finance Bank Ltd. Bank - Private Equity 1.3731 0.9029
Page Industries Ltd. Textile Equity 1.3316 1.3596
ACC Ltd. Cement & Construction Materials Equity 1.3089 1.3414
CRISIL Ltd. Ratings Equity 1.2609 1.5067
Amara Raja Batteries Ltd. Batteries Equity 1.2606 1.2696
General Insurance Corporation of India Ltd. Insurance Equity 1.2422 1.1998
EIH Ltd. Hotel, Resort & Restaurants Equity 1.2272 1.3327
Tata Consumer Products Ltd. Tea/Coffee Equity 1.2197 1.0904
Future Lifestyle Fashions Ltd. Retailing Equity 1.2062 1.2502
Syngene International Ltd. Miscellaneous Equity 1.1999 1.3047
AIA Engineering Ltd. Engineering - Industrial Equipments Equity 1.1797 1.1685
Mphasis Ltd. IT - Software Equity 1.1683 1.2359
Castrol India Ltd. Lubricants Equity 1.1616 1.1862
ABB India Ltd. Electric Equipment Equity 1.1410 1.1934

ICICIdirect Money Manager 27 February 2020

 MUTUAL FUND ANALYSIS

Hold Percentage
Company Name Industry Type Rating Jan-20 Dec-19
Mahanagar Gas Ltd. Gas Transmission/Marketing Equity 1.1388 1.1025
Affle (India) Ltd. Telecommunication - Equipment Equity 1.1238 1.1476
Engineers India Ltd. Engineering Equity 1.0909 1.2589
Sundram Fasteners Ltd. Trading Equity 1.0750 1.1181
Godfrey Phillips India Ltd. Cigarettes/Tobacco Equity 1.0496 1.1737
Divis Laboratories Ltd. Pharmaceuticals & Drugs Equity 1.0381 1.0468
Pfizer Ltd. Pharmaceuticals & Drugs Equity 1.0184 1.1066
Exide Industries Ltd. Batteries Equity 0.9730 0.9817
3M India Ltd. Diversified Equity 0.9708 0.9599
The Federal Bank Ltd. Bank - Private Equity 0.9639 0.9898
Blue Dart Express Ltd. Courier Services Equity 0.8747 0.5619
Deepak Nitrite Ltd. Chemicals Equity 0.7779 0.8070
Gujarat Pipavav Port Ltd. Port Equity 0.7672 0.8301
Bosch Ltd. Auto Ancillary Equity 0.7429 0.8774
Torrent Pharmaceuticals Ltd. Pharmaceuticals & Drugs Equity 0.7161 0.7313
Trent Ltd. Retailing Equity 0.7071 0.6729
Bharat Electronics Ltd. Engineering - Industrial Equipments Equity 0.6836 0.8047
Canara Bank Bank - Public Equity 0.6170 0.7188
Vinati Organics Ltd. Chemicals Equity 0.5991 0.5701
Birlasoft Ltd. IT - Software Equity 0.5965 0.5669
Aegis Logistics Ltd. Logistics Equity 0.5918 0.5910
National Aluminium Company Ltd. Aluminium & Aluminium Products Equity 0.5514 0.6033
Welspun India Ltd. Textile Equity 0.5320 0.6327
Vodafone Idea Ltd. Telecommunication - Service Provider Equity 0.4880 0.8210
HG Infra Engineering Ltd. Engineering - Construction Equity 0.4871 0.5037
RBL Bank Ltd. Bank - Private Equity 0.4802 0.5549
Timken India Ltd. Bearings Equity 0.4720 0.4678
Future Retail Ltd. Retailing Equity 0.4424 0.4890
Balrampur Chini Mills Ltd. Sugar Equity 0.4402 0.5181
Techno Electric & Engineering Company Ltd. Engineering - Construction Equity 0.3847 0.3866
Ashoka Buildcon Ltd. Engineering - Construction Equity 0.3786 0.3619
ISGEC Heavy Engineering Ltd. Engineering - Industrial Equipments Equity 0.3451 0.3450
Triveni Turbine Ltd. Engineering - Industrial Equipments Equity 0.3008 0.3079
Eris Lifesciences Ltd. Pharmaceuticals & Drugs Equity 0.2653 0.2989
KPR Mill Ltd. Textile Equity 0.2595 0.2677
ABB Power Products & Systems India Ltd. Unspecified Equity 0.1863 0.1987
Indian Bank Bank - Public Equity 0.1499 0.1560
Dollar Industries Ltd. Textile Equity 0.1454 0.1479
Poddar Housing and Development Ltd. Construction - Real Estate Equity 0.0611 0.0651
Arti Surfactants Ltd. Unspecified Equity 0.0368 0.0392
Cash & Cash Equivalent Cash and Cash Equivalents Cash & Equi valent -0.2129
Varroc Engineering Ltd. Auto Ancillary Equity 0.1713
Net Current Asset Other Cash & Equivalent -0.3441

You can view performance of other schemes being managed by the fund manager of this
scheme on the following link: https://www.ltfs.com/content/dam/lnt-financial-services/lnt-mutual-
fund/downloads/factsheets/2019-20/L&T%20Factsheet%20November%202019.pdf

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 28 February 2020
 MUTUAL FUND ANALYSIS

Fund name: Nippon India Small Cap Fund

Fund Manager’s name: Samir Rachh
Hold Percentage
Company Name Industry Type Rating Jan-20 Dec-19
Tri-Party Repo (TREPS) Miscellaneous Cash & Equivalent 4.2795 4.3631
Deepak Nitrite Ltd. Chemicals Equity 3.1639 3.2719
CreditAccess Grameen Ltd. Finance - NBFC Equity 3.0151 3.0586
Orient Electric Ltd. Household & Personal Products Equity 2.6600 2.1122
Tube Investments of India Ltd. Cycles Equity 2.4349 2.4378
Navin Fluorine International Ltd. Chemicals Equity 2.1954 2.0537
Birla Corporation Ltd. Diversified Equity 2.1595 1.7589
Affle (India) Ltd. Telecommunication - Equipment Equity 2.1337 2.3651
Tata Consumer Products Ltd. Tea/Coffee Equity 1.9881 1.8456
HDFC Bank Ltd. Bank - Private Equity 1.9599 2.1617
Zydus Wellness Ltd. Consumer Food Equity 1.9321 2.0135
Fine Organic Industries Ltd. Chemicals Equity 1.8497 1.6355
VIP Industries Ltd. Household & Personal Products Equity 1.6617 1.6452
Radico Khaitan Ltd. Breweries & Distilleries Equity 1.4850 1.0295
Rallis India Ltd. Pesticides & Agrochemicals Equity 1.4338 1.0792
Security And Intelligence Services India Ltd. Miscellaneous Equity 1.4311 1.4841
FDC Ltd. Pharmaceuticals & Drugs Equity 1.4098 1.3911
Cyient Ltd. IT - Software Equity 1.3697 1.2171
Dixon Technologies (India) Ltd. Consumer Durables - Electronics Equity 1.3596 1.3127
Balrampur Chini Mills Ltd. Sugar Equity 1.3492 1.5830
Axis Bank Ltd. Bank - Private Equity 1.2881 1.4162
Kalpataru Power Transmission Ltd. Transmission Towers / Equipments Equity 1.2257 1.2016
Multi Commodity Exchange Of India Ltd. Finance - Stock Broking Equity 1.2246 1.2202
Jyothy Labs Ltd. Household & Personal Products Equity 1.2193 1.2154
Elantas Beck India Ltd. Chemicals Equity 1.2106 1.0902
Thermax Ltd. Engineering - Industrial Equipments Equity 1.1979 1.2895
State Bank Of India Bank - Public Equity 1.1946 1.3311
Raymond Ltd. Textile - Weaving Equity 1.1883 1.1174
Carborundum Universal Ltd. Abrasives Equity 1.1471 1.1709
Cochin Shipyard Ltd. Ship Building Equity 1.1445 1.2934
KPIT Technologies Ltd. IT - Software Equity 1.1250 1.1050
Astrazeneca Pharma India Ltd. Pharmaceuticals & Drugs Equity 1.1136 1.1593
Atul Ltd. Chemicals Equity 1.1012 0.9652
West Coast Paper Mills Ltd. Paper & Paper Products Equity 1.0792 1.0955
Polyplex Corporation Ltd. Plastic Products Equity 1.0684 1.0704
Honda Siel Power Products Ltd. Electric Equipment Equity 1.0516 1.1243
HG Infra Engineering Ltd. Engineering - Construction Equity 1.0491 1.0814
Vindhya Telelinks Ltd. Engineering - Construction Equity 1.0081 1.1654
The Indian Hotels Company Ltd. Hotel, Resort & Restaurants Equity 0.9565 1.0363
Mahindra Logistics Ltd. Logistics Equity 0.9495 0.9585
Steel Authority Of India Ltd. Steel & Iron Products Equity 0.9378 0.9199
Bajaj Electricals Ltd. Consumer Durables - Domestic Appliances Equity 0.9241 0.9420
Tata Steel Long Products Ltd. Steel/Sponge Iron/Pig Iron Equity 0.8405 0.8672
Indian Railway Catering & Tourism Corpn. Ltd. Travel Services Equity 0.8365 0.6859

ICICIdirect Money Manager 29 February 2020

 MUTUAL FUND ANALYSIS

Hold Percentage
Company Name Industry Type Rating Jan-20 Dec-19
ICRA Ltd. Ratings Equity 0.8202 0.9000
GAIL (India) Ltd. Industrial Gases & Fuels Equity 0.8106 0.8662
KEC International Ltd. Engineering - Construction Equity 0.8106 0.7694
NIIT Ltd. IT - Education Equity 0.8002 0.8123
Sheela Foam Ltd. Household & Personal Products Equity 0.7874 0.7187
Hindustan Aeronautics Ltd. Airlines Equity 0.7845 0.6151
Voltamp Transformers Ltd. Electric Equipment Equity 0.7767 0.7801
Apex Frozen Foods Ltd. Aquaculture Equity 0.7622 0.8051
ISGEC Heavy Engineering Ltd. Engineering - Industrial Equipments Equity 0.7564 0.7159
Ashoka Buildcon Ltd. Engineering - Construction Equity 0.7541 0.7157
Intellect Design Arena Ltd. IT - Software Equity 0.7324 0.6289
LG Balakrishnan & Brothers Ltd. Auto Ancillary Equity 0.7039 0.6486
Timken India Ltd. Bearings Equity 0.6860 0.6777
Bajaj Consumer Care Ltd. Household & Personal Products Equity 0.6789 0.7603
The Federal Bank Ltd. Bank - Private Equity 0.6707 0.6866
Kirloskar Pneumatic Company Ltd. Compressors / Pumps Equity 0.6577 0.6467
Garden Reach Shipbuilders & Engineers Ltd. Ship Building Equity 0.6529 0.6498
Ion Exchange (India) Ltd. Engineering - Industrial Equipments Equity 0.6343 0.5672
Kirloskar Brothers Ltd. Engineering - Industrial Equipments Equity 0.6260 0.6568
Honeywell Automation India Ltd. Consumer Durables - Electronics Equity 0.6179 0.6408
INEOS Styrolution India Ltd. Chemicals Equity 0.6128 0.5871
Karur Vysya Bank Ltd. Bank - Private Equity 0.5898 0.7880
Galaxy Surfactants Ltd. Household & Personal Products Equity 0.5787 0.6620
Central Depository Services (India) Ltd. Finance - NBFC Equity 0.5752 0.5133
Apar Industries Ltd. Electric Equipment Equity 0.5635 0.6004
Somany Home Innovation Ltd. Consumer Durables - Domestic Appliances Equity 0.5633 0.5369
Cholamandalam Financial Holdings Ltd. Finance - Investment Equity 0.5624
Chambal Fertilisers & Chemicals Ltd. Fertilizers Equity 0.5503 0.1894
Indoco Remedies Ltd. Pharmaceuticals & Drugs Equity 0.5485 0.5044
JTEKT India Ltd. Auto Ancillary Equity 0.5364 0.6030
Lemon Tree Hotels Ltd. Hotel, Resort & Restaurants Equity 0.5288 0.6366
Magma Fincorp Ltd. Finance - NBFC Equity 0.5248 0.5181
PSP Projects Ltd. Construction - Real Estate Equity 0.5214 0.5505
Tejas Networks Ltd. IT - Hardware Equity 0.4987 0.5717
Orient Cement Ltd. Cement & Construction Materials Equity 0.4855 0.4631
KPR Mill Ltd. Textile Equity 0.4795 0.4930
Sundaram Finance Holdings Ltd. Finance - Investment Equity 0.4548 0.5322
Sterlite Technologies Ltd. Cable Equity 0.4489 0.4532
RBL Bank Ltd. Bank - Private Equity 0.4329 0.4987
Future Supply Chain Solutions Ltd. Logistics Equity 0.4116 0.4546
Tata Coffee Ltd. Tea/Coffee Equity 0.4099 0.4092
Srikalahasthi Pipes Ltd. Castings/Forgings Equity 0.4046 0.3889
Genus Power Infrastructures Ltd. Engineering - Industrial Equipments Equity 0.3869 0.3675
Automotive Axles Ltd. Auto Ancillary Equity 0.3760 0.3957
EIH Ltd. Hotel, Resort & Restaurants Equity 0.3710 0.4016
Siyaram Silk Mills Ltd. Textile - Weaving Equity 0.3464 0.3771
Entertainment Network (India) Ltd. TV Broadcasting & Software Production Equity 0.3359 0.3570
Advanced Enzyme Technologies Ltd. Pharmaceuticals & Drugs Equity 0.3124 0.3233

ICICIdirect Money Manager 30 February 2020

 MUTUAL FUND ANALYSIS

Hold Percentage
Company Name Industry Type Rating Jan-20 Dec-19
TD Power Systems Ltd. Electric Equipment Equity 0.3075 0.3305
Navkar Corporation Ltd. Logistics Equity 0.3053 0.3050
VST Tillers Tractors Ltd. Automobiles-Tractors Equity 0.2993
Orient Paper & Industries Ltd. Paper & Paper Products Equity 0.2877 0.3205
Texmaco Rail & Engineering Ltd. Railways Wagons Equity 0.2832 0.2631
Ajanta Pharma Ltd. Pharmaceuticals & Drugs Equity 0.2739
Dhampur Sugar Mills Ltd. Sugar Equity 0.2644 0.3190
Gujarat Alkalies & Chemicals Ltd. Chemicals Equity 0.2492 0.2789
Sadbhav Engineering Ltd. Engineering - Construction Equity 0.2206 0.1949
Seya Industries Ltd. Chemicals Equity 0.2163 0.2458
Cash & Cash Equivalent Cash and Cash Equivalents Cash & Equivalent 0.2115 0.2236
Asahi India Glass Ltd. Glass Equity 0.2105 0.1848
Sterling and Wilson Solar Ltd. Engineering - Construction Equity 0.2052 0.2405
Sandhar Technologies Ltd. Auto Ancillary Equity 0.2037 0.1934
Shree Pushkar Chemicals & Fertilisers Ltd. Dyes & Pigments Equity 0.1891 0.1978
Pokarna Ltd. Ceramics/Marble/Granite/Sanitaryware Equity 0.1796 0.1771
Ramco Systems Ltd. IT - Software Equity 0.1775 0.1764
Rites Ltd. Engineering Equity 0.1714 0.1699
KCP Ltd. Cement & Construction Materials Equity 0.1705 0.1675
Arvind Fashions Ltd. Retailing Equity 0.1558 0.1661
Indian Terrain Fashions Ltd. Textile Equity 0.1447 0.1330
Camlin Fine Sciences Ltd. Chemicals Equity 0.1289 0.1079
Arvind Ltd. Textile Equity 0.1182 0.1179
HSIL Ltd. Ceramics/Marble/Granite/Sanitaryware Equity 0.0412 0.0761
Net Current Asset Other Cash & Equivalent -0.3031 -0.5260
JK Cement Ltd. Cement & Construction Materials Equity 0.8233
Akzo Nobel India Ltd. Paints Equity 0.7480
IDFC Bank Ltd. (21-Jan-20) Bank - Private A1+ 0.5849

You can view performance of other schemes being managed by the fund manager
of this scheme on the following link:
https://www.nipponindiamf.com/InvestorServices/FactsheetsDocuments/Fundamen
tals-December-2019.pdf

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 31 February 2020

 MUTUAL FUND ANALYSIS

Performance of other schemes managed by these fund managers:

1. Kotak Emerging Equity Scheme
Performance of other schemes managed by the fund manager - Pankaj Tibrewal
Fund Name 1 Year 3 Years 5 Years
Top 3 Performing Schemes
Kotak Small Cap Fund(G) 22.22 6.42 8.93
Nifty Smallcap 100 - TRI 3.93 -1.70 2.56
Kotak Emerging Equity Fund(G) 22.21 9.20 10.99
Nifty Midcap 100 - TRI 8.52 3.92 7.59
Kotak Equity Hybrid Fund(D) 17.20 6.73 7.09
NIFTY 50 Hybrid Composite Debt 65:35 Index -- -- --

Note : The schemes may or may not have been managed by the same Fund Manager since its inception
Note : The concerned Fund Manager manages 2 other schemes of the concerned Mutual Fund

ICICIdirect Money Manager 32 February 2020

 MUTUAL FUND ANALYSIS

2. L&T Midcap Fund

Performance of other schemes managed by the
fund manager - Vihang Naik
Fund Name 1 Year 3 Years 5 Years
Top 3 Performing Schemes
L&T Emerging Opp Fund-II-Reg(D) 21.91 -- --
S&P BSE Small-Cap - TRI 8.53 3.10 6.07
L&T Emerging Opp Fund-I-Reg(D) 18.91 -- --
S&P BSE Small-Cap - TRI 8.53 3.10 6.07
L&T Business Cycle Fund-Reg(G) 18.51 5.57 5.64
S&P BSE 200 - TRI 11.00 10.15 7.99
Bottom 3 Performing Schemes
L&T Infrastructure Fund-Reg(G) 6.27 4.37 6.96
NIFTY INFRA - TRI 10.99 3.58 1.26
L&T Equity Savings Fund-Reg(G) 5.10 4.59 4.83
NIFTY 50 Equity Savings Index -- -- –
L&T Emerging Businesses Fund-Reg(G) 0.49 5.03 9.93
S&P BSE Small-Cap - TRI 8.53 3.10 6.07

Note : The schemes may or may not have been managed by the same Fund Manager since its inception
Note : The concerned Fund Manager manages 14 other schemes of the concerned Mutual Fund

Performance of other schemes managed by the fund manager - Venugopal Manghat

Fund Name 1 Year 3 Years 5 Years
Top 3 Performing Schemes
L&T Emerging Opp Fund-II-Reg(D) 21.91 -- --
S&P BSE Small-Cap - TRI 8.53 3.10 6.07
L&T Emerging Opp Fund-I-Reg(D) 18.91 -- --
S&P BSE Small-Cap - TRI 8.53 3.10 6.07
L&T Business Cycle Fund-Reg(G) 18.51 5.57 5.64
S&P BSE 200 - TRI 11.00 10.15 7.99
Bottom 3 Performing Schemes
L&T Arbitrage Opp Fund-Reg(G) 6.15 6.06 6.32
Nifty 50 Arbitrage Index 6.70 -- --
L&T Equity Savings Fund-Reg(G) 5.10 4.59 4.83
NIFTY 50 Equity Savings Index -- -- –
L&T Emerging Businesses Fund-Reg(G) 0.49 5.03 9.93
S&P BSE Small-Cap - TRI 8.53 3.10 6.07

Note : The schemes may or may not have been managed by the same Fund Manager since its inception
Note : The concerned Fund Manager manages 15 other schemes of the concerned Mutual Fund

ICICIdirect Money Manager 33 February 2020

 MUTUAL FUND ANALYSIS

3. Nippon India Small Cap Fund

Performance of other schemes managed by the fund manager - Samir Rachh
Fund Name 1 Year 3 Years 5 Years
Top 3 Performing Schemes
Nippon India Small Cap Fund(G) 12.73 8.48 10.91
S&P BSE Small-Cap - TRI 8.53 3.10 6.07
Nippon India Capital Builder Fund-IV-D(G) 7.76 -- --
S&P BSE 200 9.74 8.79 6.60
Nippon India Capital Builder Fund-IV-C(G) 5.99 -- --
S&P BSE 200 9.74 8.79 6.60

Note : The schemes may or may not have been managed by the same Fund Manager since its inception
Note : The concerned Fund Manager manages 3 other schemes of the concerned Mutual Fund

Performance of other schemes managed by the fund manager - Kinjal Desai

Fund Name 1 Year 3 Years 5 Years
Top 3 Performing Schemes
Nippon India US Equity Opp Fund(G) 23.44 19.08 --
S&P BSE SENSEX - TRI 13.76 13.12 8.23
Nippon India Nivesh Lakshya Fund(G) 18.20 -- --
Crisil Long Term Debt Index -- -- –
Nippon India Gilt Securities Fund(G) 15.27 9.28 9.25
CRISIL Dynamic Gilt Index -- -- –
Bottom 3 Performing Schemes
Nippon India Credit Risk Fund-Segregated Portfolio 1-(G) -- -- --
NIFTY Credit Risk Bond Index -- -- –
Nippon India Strategic Debt Fund-Segregated Portfolio 1-(G) -- -- --
Crisil AA- Medium Term Bond Index -- -- –
Nippon India Hybrid Bond Fund-Segregated Portfolio 1-(G) -- -- --
CRISIL Hybrid 85+15 - Conservative Index 13.48 8.77 8.77

Note : The schemes may or may not have been managed by the same Fund Manager since its inception
Note : The concerned Fund Manager manages 46 other schemes of the concerned Mutual Fund

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre,
H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No: 022 - 2288 2460, 022 - 2288 2470. AMFI
Regn. No.: ARN-0845. Please note that Mutual Fund Investments are subject to market risks, read the
scheme related documents carefully before investing for full understanding and detail. Investors can view
regulatory disclosures in reports issued for respective funds which can be accessed on
www.icicidirect.com.

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 34 February 2020
 This Month on iCommunity

ICICIdirect Community (iCommunity)

Do you hedge every market position? The derivative contract allows traders the
opportunity to leverage and hedge their positions. Margin is an important component
while trading in the derivative markets as its purpose arises to restrict ones losses
especially when the market moves in the opposite direction. Many such elements are
highlighted in this interview by Mr. Amit Gupta, VP and Head-Derivatives Research,
ICICI Securities that will lay the foundation for you while trading in derivative markets.
At the most extreme price movements, one of the derivative instrument comes in use,
want to know which one? Visit the link below
https://community.icicidirect.com/derivatives-allows-traders-to-get-leverage-and-
also-hedge-their-positions-
Or follow the bellow path to visit iCommunity
Path: Log in to your ICICIdirect account > Customer Service > iCommunity

Q & A Forum – Trending question of the month

Seek answers to your queries regarding investments, personal finance, and much
more…
Ü Can I choose any date for my SIP, some time I see
Ü only fix dates options like 1st or 7th of every month? Please clarify.
Ü When is the next window for buying Gold Bonds?
Ü How to convert future plus position to futures?
Ü What does recent macro data suggest about our economy?

What is iCommunity? iCommunity is ICICIdirect's interactive platform where one can answer and get
answered as well. With extensive range of forums, events & discussions iCommunity serves as an
opportunity to learn more about financial world.

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 35 February 2020
 EQUITY MODEL PORTFOLIO

Our indicative large-cap equity model portfolio is delivering an

impressive return (inclusive of dividends) of 164.1% till date (as on
January 31st, 2020) since its inception (June 21st, 2011) vis-à-vis the
benchmark index (S&P BSE Sensex) return of 126.7% during the same
period, an outperformance of 37.4. This validates our thesis of selecting
companies with sound business fundamentals that forms the core
theme of our portfolio. We have revised stocks in our midcap portfolio.
It continues to outperform, delivering 276.7% (inclusive of dividends)
till date (as on January 31st, 2020) vis-à-vis the benchmark index (CNX
Midcap) return of 134.4%, an outperformance of 142.3. Our consistent
outperformance demonstrates our superior stock picking ability as
markets aligned to our view of favourable risk reward, good franchisee
vs. reward-at-any-risk businesses.
We have always suggested the SIP mode of investment and still find a
lot of merit in it as the preferred mode of deployment given the market
conditions and volatility associated since the inception of the portfolio.
We highlight that the SIP return of our portfolio has consistently
outperformed the indices.
Following the same pace and opportunities in the market, our latest
portfolio (large caps) remains overweight on BFSI sector – HDFC Bank
(10%), HDFC Limited (9%), Axis Bank (6%) Bajaj Finance (6%) and SBI
(6%). Large cap portfolio remains unchanged while we made fresh
changes to our midcap portfolio. Reliance Nippon Life Asset
Management and Mahanagar Gas are the latest addition to the mid-cap
portfolio, both given 6% weightage. Please note that Somany Ceramics
and Arvind Fashions have been removed from the mid-cap and
diversified model portfolio. The weightage for State Bank of India and
Divis Laboratories have been revised. Affirming our view on
consumption demand, Dabur (5%) and Marico (4%) continue to be part
of our large cap portfolio.
We remain positive on auto, IT and pharma. We remain overweight to
neutral on pure play defensives (IT, FMCG) as secular earnings coupled
with sector rotation could lead to consolidation in near term valuations
and offer stock specific opportunities.
We continue to remain underweight on metals and oil & gas with our
only pick being Gail Ltd., which has a better risk reward opportunity.
Among individual names, we recommend TCS in the IT space, HDFC
and HDFC Bank in the BFSI space and ITC in consumer space.

ICICIdirect Money Manager 36 February 2020

 EQUITY MODEL PORTFOLIO

Name of the company Model Portfolio

Largecap Midcap Diversified
(%) (%) (%)
Largecap Stocks
Mahindra & Mahindra (M&M) 4.0 2.8
HDFC Bank 10.0 7.0
Axis Bank 6.0 4.2
HDFC Limited 9.0 6.3
Bajaj Finance 6.0 4.2
State Bank of India 8.0 5.6
Larsen & Toubro 6.0 4.2
UltraTech Cement 4.0 2.8
Dabur India 5.0 3.5
Marico 4.0 2.8
ITC 6.0 4.2
Nestle India 4.0 2.8
Tata Consultancy Services 6.0 4.2
Tech Mahindra Limited 6.0 4.2
Hindustan Zinc 6.0 4.2
GAIL Ltd. 5.0 3.5
Divis Laboratories 5.0 3.5
Total 100.0
Largecap share in diversified 70.0

ICICIdirect Money Manager 37 February 2020

 EQUITY MODEL PORTFOLIO

Bharat Forge 6.0 1.8

Bajaj Finserve 8.0 2.4
Indian Bank 6.0 1.8
AIA Engineering 6.0 1.8
Kalpataru Power transmission 6.0 1.8
Ramco Cement 6.0 1.8
Kansai Nerolac 6.0 1.8
Pidilite Industries 6.0 1.8
Tata Chemicals 6.0 1.8
Bata India 6.0 1.8
Brigade Enterprises 6.0 1.8
Reliance Nippon Life Asset Management 6.0 1.8
Firstsource Solutions 6.0 1.8
Container Corporation of India 6.0 1.8
Syngene International 8.0 2.4
Mahanagar Gas Ltd 6.0 1.8
Total 100.0
Midcap share in diversified 30

TOTAL 100.0

ICICIdirect Money Manager 38 February 2020

 EQUITY MODEL PORTFOLIO

Performance so far since inception*

300
276.70

195.90
200
164.10
134.40
%

126.70 123.20

100

0
Large Cap Midcap Diversified

Portfolio Benchmark

*Returns (in %) as on January 31st, 2020

Large-cap Portfolio Benchmark: BSE Sensex; Mid-cap Portfolio Benchmark: CNX
Midcap; Diversified Portfolio Benchmark: Combination of BSE Sensex and CNX
Midcap

Value of Rs 1,00,000 invested via SIP at end of every month

18000000
10,500,000

10,500,000

10,500,000

16000000
24,356,116

14000000
12000000
17,24,3437
16,206,992
16,209,062

10000000
14,956,132
14,730270
|

8000000
6000000
4000000
2000000
0
Largecap Midcap Divesified

Investment Value of Investment in Portfolio Value if invested in Benchmark

Start date of SIP: June 30, 2011; *Value as on January 31st, 2020

ICICIdirect Money Manager 39 February 2020

 QUIZ TIME

1. Self-employed individuals who don't receive HRAs, could claim up to

________ deductions under section 80GG.
2. Few companies enable employees leaves encashment facility? True
or False.
3. An individual can utilize _______ benefit even before reaching the
actual date of retirement or before superannuation phase.
4. How many years of service is required to avail gratuity benefit?
5. One can avail deduction of Rs. 5 lakh under section 10(10C) of VRS
multiple times? True or False.
6. In a superannuation, _______ plan has fixed contribution made by the
employer.
7. Interest earned on the remaining 2/3rd amount in annuity is tax free?
True or False.
8. ESOP option is not prevailed to Companies directors and promoters.
True or False.
Note: You may send in your answers at: moneymanager@icicisecurities.com. The
answers will be published in our next edition. The names of the earliest all correct
entries will be published too. So jog your grey cells and be quick to send in your entries.
Correct answers for the January 2020 Wordsearch are:

Y C N E G R E M E M
C H I L D P L A N S
H O I M U T D R O A
I E M L R F P R I V
O C U P G D L I T I
I N T G O L A A A N
T A U O L U N G C G
A R A D D I N E U S
L U L E M E R D D S
F S F T A C U D E I
N N U Z X E C I R P
I I N F L A T I O N
M U D N U F L A U T

Congratulations to our winner for providing correct answers!

Amey Avinash Ratnaparkhi
Piyush Saxena

ICICIdirect Money Manager 40 February 2020

 PRIME NUMBERS

Equity Markets
Domestic Equity Indices
31-Jan-20 31-Dec-19 Change (%)
CNX Nifty 11962.0 12168.0 -1.7%
CNX Midcap 18010.2 17102.0 5.3%
S&P BSE Sensex 40723.5 41254.0 -1.3%
S&P BSE 100 12083.0 12236.2 -1.3%
S&P BSE 200 5041.2 5078.4 -0.7%
S&P BSE 500 15649.8 15667.4 -0.1%

Global Equity Indices

31-Jan-20 31-Dec-19 Change(%)
Dow Jones 28,256.0 28,538.4 -1.0%
S&P 500 3,225.5 3,230.8 -0.2%
Nasdaq 9,150.9 8,972.6 2.0%
FTSE 7,286.0 7,542.4 -3.4%
DAX 12,982.0 13,249.0 -2.0%
CAC 40 5,806.3 5,978.1 -2.9%
Nikkei 23,205.2 23,656.6 -1.9%
Hang Seng 26,312.6 28,189.8 -6.7%
Shanghai Composite 2,976.5 3,050.1 -2.4%
Taiwan Weighted 11,495.1 11,997.1 -4.2%
Straits Times 3,153.7 3,222.8 -2.1%

Sectoral Indices
31-Jan-20 31-Dec-19 Change (%)
S&P BSE Auto 18,161.2 18,485.0 -1.8%
S&P BSE Bankex 35,289.4 36,671.5 -3.8%
S&P BSE FMCG 17,462.1 16,943.9 3.1%
S&P BSE Healthcare 13,957.0 13,429.1 3.9%
S&P BSE Metals 9,494.1 10,428.2 -9.0%
S&P BSE Oil & Gas 13,923.7 14,744.8 -5.6%
S&P BSE Power 1,899.3 1,926.3 -1.4%
S&P BSE Realty 2,526.2 2,280.5 10.8%
S&P BSE Teck 7,911.8 7,717.6 2.5%

ICICIdirect Money Manager 41 February 2020

 PRIME NUMBERS

Volatility Index (VIX)

31-Jan-20 31-Dec-19
VIX 17.37 11.66

Debt Markets
Government Securities Yield (in %) Jan-20 Dec-19 Change (bps)
10 year 6.60 6.55 5
5 year 6.59 6.47 12
3 year 6.21 6.24 -3
1 year 5.66 5.48 18
Note : Data not available on Bloomberg for 1 year G-sec yield as of October 31

Corporate Bond Yields (in %) Jan-20 Dec-19 Change (bps)

AAA 10 year 8.02 7.83 19
AAA 5 year 7.24 7.26 -1
AAA 3 year 6.97 7.08 -11
AAA 1 year 6.22 6.15 8
AA 10 year 8.47 8.28 19
AA 5 year 7.79 7.80 -1
AA 3 year 7.51 7.62 -11
AA 1 year 6.90 6.85 5

Commercial Paper (in %) Jan-20 Dec-19 Change (bps)

12 Months 0
6 Months 0
3 Months 0
1 Month 0
Note : Data not available on Bloomberg for 3,6 and 12 month CP post 1/15/19
and for 1 month CP post 3/27/18

T-Bills Yields (in %) Jan-20 Dec-19 Change (bps)

91D TB 0
182D TB 0
364D TB 0
Note : Data not available on Bloomberg for 3,6 and 12 month Tbill post 3/28/18

ICICIdirect Money Manager 42 February 2020

 PRIME NUMBERS

10-year benchmark yields (%) across countries

Countries 31-Jan-20 31-Dec-19 Change in bps
US 1.507 1.918 (41)
UK 0.524 0.822 (30)
Japan (0.066) (0.011) (6)
Spain 0.232 0.463 (23)
Germany (0.434) (0.185) (25)
France (0.177) 0.115 (29)
Italy 0.935 1.412 (48)
Brazil 6.710 6.787 (8)
China 3.003 3.144 (14)
India 6.601 6.555 5

MF Investment Jan-20 Dec-19 FY19

Equity -2688 1805 87667
Debt 32690 45492 389356

FII Investment Jan-20 Dec-19 FY19

Equity 9719 6117 9722
Debt -11214 -5350 -39425

Macro-economic Indicators
Consumer price index (CPI)
Items Weights(%) Nov-19 Dec-19 Jan-20
Food&bev. 45.86 8.66 12.16 11.79
Pan,tob& intox. 2.38 3.26 3.37 3.62
Cloth & Foot 6.53 1.30 1.50 1.91
Housing 10.07 4.49 4.30 4.20
Fuel & light 6.84 -1.93 0.70 3.66
Misc. 28.31 3.67 4.09 4.75
CPI 100 5.54 7.35 7.59

Wholesale price index (WPI)

Month
Weights Nov-19 Dec-19 Jan-20
WPI 100.0 0.6 2.6 3.1
Primary Articles 22.6 7.7 11.5 -1.1
Fuel & Power 13.2 -7.3 -1.5 3.4
Manufactured Goods 64.2 -0.1 -0.3 0.3
*WPI numbers are based on new series with 2011-12 as the base year'

ICICIdirect Money Manager 43 February 2020

 PRIME NUMBERS

Index of industrial production (IIP) Sector-wise growth rate (%)

Categories 30-Nov-19 31-Oct-19 30-Sep-19 Weight(%)
Mining 13.1 15.2 -6.1 14.4
Manufacturing -0.5 3.5 -1.6 77.6
Electricity -4.0 -8.1 -4.2 8.0
Overall 0.7 3.5 -2.4 100.0
*IIP numbers are based on new series with 2011-12 as the base year'
Currencies and Commodities
Currencies
31-Jan-20 30-Dec-19 Change (%) Status
USDINR 71.4 71.4 0.0% Appreciated
EURINR 78.7 80.1 -1.7% Appreciated
GBPINR 93.6 94.2 -0.6% Appreciated
AUDINR 47.8 50.0 -4.6% Appreciated
CHFINR 73.6 73.8 -0.3% Appreciated
JPYINR 0.7 0.7 0.4% Depreciated
CNYINR 10.3 10.3 0.7% Depreciated

Commodities
31-Jan-20 30-Dec-19 Change (%)
Crude ($/barrel) 58.2 66.0 -11.9%
Gold ($/ounce) 1,589.2 1,517.3 4.7%

Mutual Funds: Category Average Returns

Equity Funds Returns (in %)
Multicap Midcap Large Cap Small cap ELSS
6 months 11.28 16.60 9.05 16.32 11.97
1 year 11.61 14.18 12.33 10.26 11.69
3 year 9.81 8.77 10.65 5.90 9.75
5 year 7.29 7.95 6.90 7.54 7.60
Returns as on January 31, 2020

Debt Funds Returns (in %)

Liquid Debt ST Ultra ST Debt LT
6 months 5.22 5.67 6.19 1.69
1 year 6.07 4.56 6.53 13.01
3 year 6.54 5.33 6.25 7.32
Returns as on January 31, 2020

ICICIdirect Money Manager 44 February 2020

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