ELSS. Tax savings plus equity investment. MF Update. ICICI Securities Ltd Retail Mutual Fund Research. January 5, 2016

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1 MF Update January 5, 216 Tax savings plus equity investment ELSS Equity linked savings schemes (ELSS) are equity diversified schemes that are eligible for tax benefits under Section 8C of the Income Tax Act. In the Union Budget 214, the investment limit for individuals to invest in financial instruments under the section 8 C was enhanced to 1.5 lakh from the earlier 1 lakh. We believe the enhanced limit i.e. the additional 5, can be invested in ELSS as it is the only tax saving instrument that invests purely in equities (an asset class that can potentially earn higher return). The lock-in period of three years is also lowest among other investment options available under Section 8C of the Income Tax Act. Advantages of ELSS Investment in ELSS is eligible for tax benefits under section 8C. Maximum tax saved can be up to 4,25 ELSS invests in equity stocks, which leads to capital appreciation over the long term Capital gains at the end of the lock-in period are completely tax free The lock-in period of three years curtails panic selling in case of interim volatility in equity markets. Hence, investments reap the benefit of long term investing in equities Highly professional and experienced fund managers handle the equity exposure of one s overall portfolio allocation Systematic mode of investment (regular monthly investment) available Equity market outlook Recommended funds Axis Long Term Equity, Franklin India Tax shield, ICICI Prudential Long term Equity (Tax Saving) (Refer attached fact sheet for fund performance) Formation of a reform oriented single party majority government at the Centre turned around broader growth perceptions. The initial measures taken by the government seem to have created the perception that doing business in India is now easier and the investment environment has improved. From tax policy, environment approvals, labour laws to land acquisition issues, the new government is slowly putting in place the building blocks to ensure India regains the confidence of investors. With the change in perception, foreign flows into equity markets gained traction pulling domestic equity market to new highs. Macroeconomic variables have also started improving. The revised GDP number indicates growth at a faster rate. Inflation is structurally following a downward trajectory. The Reserve Bank of India has already cut the benchmark rates by 125 bps in the current calendar year 215. Therefore, we believe interest rates are bound to be lower providing a further fillip to growth alongside moderating inflation and, consequently, improved margins. We believe the positive momentum will further gain traction as earnings growth starts showing a further improvement. For a three-year period, the Indian equities markets are expected to outperform other asset classes. Therefore, ELSS funds provide an excellent investment opportunity apart from tax benefits. ICICI Securities Ltd Retail

2 Axis Long Term Equity Fund Fund Objective The investment objective of the scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities. Key Information NAV as on January 4, 216 ( ) 3.4 Inception Date December 29, 29 Fund Manager Jinesh Gopani Minimum Investment ( ) Lumpsum 5 SIP -- Expense Ratio () 1.95 Exit Load Nil Benchmark S&P BSE 2 Last declared Quarterly AAUM( cr) 6497 Return Performance vs. Benchmark Month 1 Year 3 Year 5 Year Fund Benchmark Calendar Year-wise Performance Last Three Years Performance NAV as on Dec 31 ( ) Return () Axis Long Term Equity Fund Benchmark () Benchmark Net Assets ( Cr) Top 1 Holdings Asset Type SIP Performance (Value if invested 5 per month (in')) HDFC Bank Ltd Kotak Mahindra Bank Ltd Tata Consultancy Services Ltd Housing Development Finance Corporation i Sun Pharmaceutical Industries Ltd. 4.6 Tech Mahindra Ltd Pidilite Industries Ltd Maruti Suzuki India Ltd. 3.9 TTK Prestige Ltd Yr 3Yrs 5Yrs 1Yrs Motherson Sumi Systems Ltd. 3.2 Total Investment Fund Value Benchmark Value Top 1 Sectors Bank - Private IT - Software Pharmaceuticals & Drugs Finance - Housing Auto Ancillary Consumer Durables - Domestic Appliances Finance - NBFC Chemicals Automobiles - Passenger Cars Diesel Engines Asset Type Whats In Whats out Risk Parameters Portfolio Attributes Standard Deviation () 15.4 Total Stocks 36. Beta.86 Top 1 Holdings () 5.1 Sharpe ratio -.1 Fund P/E Ratio 38.5 R Squared.8 Benchmark P/E Ratio -- Alpha () Fund P/BV Ratio 8.3 Market Capitalisation () Asset Allocation Large 66.4 Equity 98. Mid 27.9 Debt. Small 3.7 Cash 2. Data as on January 4,216 ;Portfolio details as on Nov-215

3 Performance of all the schemes managed by the fund manager Axis LT Equity Fund(G) S&P BSE Dividend History Date Dividend () Jan Jan Aug Sep Value of investment of 1 invested since inception Particulars Axis Long Term Equity Fund 3692 Benchmark 1696 Additional Benchmark Product Label This product is suitable for investors seeking*: Capital appreciation and generating income over long term Investment in a diversified portfoilio predominantly consisting of equity and equity related securities. Data as on January 4,216 ;Portfolio details as on Nov-215

4 Franklin India Taxshield Fund Objective To provide medium to long term growth of capital along with income tax rebate. Key Information NAV as on January 4, 216 ( ) Inception Date April 1, 1999 Fund Manager Anand Radhakrishnan Minimum Investment ( ) Lumpsum 5 SIP 5 Expense Ratio () 2.4 Exit Load Nil Benchmark Last declared Quarterly AAUM( cr) 1853 Return Performance vs. Benchmark Month 1 Year 3 Year 5 Year Fund Benchmark Calendar Year-wise Performance Last Three Years Performance NAV as on Dec 31 ( ) Return () Franklin India Taxshield Benchmark () Benchmark Net Assets ( Cr) Top 1 Holdings Asset Type SIP Performance (Value if invested 5 per month (in')) HDFC Bank Ltd. Call Money Cash & Cash Equivalents Infosys Ltd. ICICI Bank Ltd. i IndusInd Bank Ltd. 3.9 Bharti Airtel Ltd Yes Bank Ltd. 2.9 Kotak Mahindra Bank Ltd. 2.6 Dr. Reddys Laboratories Ltd Yr 3Yrs 5Yrs 1Yrs Tata Motors Ltd. 2.5 Total Investment Fund Value Benchmark Value Top 1 Sectors Bank - Private IT - Software Pharmaceuticals & Drugs Telecommunication - Service Provider Automobiles-Trucks/Lcv Refineries Cement & Construction Materials Diesel Engines Automobile Two & Three Wheelers Batteries Asset Type Whats In 8.8 Jubilant FoodWorks Ltd Whats out Risk Parameters Portfolio Attributes Standard Deviation () Total Stocks 63. Beta.86 Top 1 Holdings () 39.1 Sharpe ratio -.1 Fund P/E Ratio 26.1 R Squared.9 Benchmark P/E Ratio -- Alpha () 9.78 Fund P/BV Ratio 5.1 Market Capitalisation () Asset Allocation Large 71.3 Equity 94.9 Mid 18.7 Debt. Small 4.9 Cash 5.1 Data as on January 4,216 ;Portfolio details as on Nov-215

5 Performance of all the schemes managed by the fund manager Franklin India Life Stage FOFs-5(G) Crisil Composite Bond Fund Index Franklin India Life Stage FOFs-5s +FR(G) Crisil Liquid Fund Index Franklin India Life Stage FOFs-4(G) Franklin India MIP(G) Crisil MIP Blended Index Franklin India Pension Plan(G) Franklin India Dynamic PE Ratio FOFs(G) Crisil Balanced Fund Index Franklin India Life Stage FOFs-3(G) Franklin India Balanced Fund(G) Crisil Balanced Fund Index Franklin India Prima Plus Fund(G) Franklin India Taxshield(G) Franklin Infotech Fund(G) S&P BSE IT Franklin India Life Stage FOFs-2(G) Franklin Build India Fund(G) Franklin India Bluechip Fund(G) S&P BSE SENSEX Franklin India Multi-Asset Solution Fund(G) Ci Crisil ilbalanced dfund dindex Franklin India Taxshield Benchmark Additional Benchmark Product Label Dividend History Date Dividend () Feb Jan Jan Feb Jan Jan Value of investment of 1 invested since inception Particulars This product is suitable for investors seeking*: Long term capital appreciation An ELSS fund offering tax benefits under section 8C of the Income tax act. Data as on January 4,216 ;Portfolio details as on Nov-215

6 ICICI Prudential Long Term Equity Fund (Tax Saving) Fund Objective The Scheme seeks to generate long-term capital appreciation through investments made primarily in equity and equity related securities of companies. Accordingly, the NAV of the Scheme is linked to performance of such companies. However, there can be no assurance that the investment objective of the Scheme will be realized. Key Information NAV as on January 4, 216 ( ) Inception Date August 19, 1999 Fund Manager George Heber Joseph Minimum Investment ( ) Lumpsum 5 SIP 5 Expense Ratio () 1.75 Exit Load Nil Benchmark Last declared Quarterly AAUM( cr) 284 Return Performance vs. Benchmark Month 1 Year 3 Year 5 Year Fund Benchmark Calendar Year-wise Performance Last Three Years Performance NAV as on Dec 31 ( ) Return () ICICI Prudential Long Term E Benchmark () Benchmark Net Assets ( Cr) Top 1 Holdings Asset Type SIP Performance (Value if invested 5 per month (in')) HCL Technologies Ltd. Cipla Ltd HDFC Bank Ltd. Thomas Cook (India) Ltd. i Power Grid Corporation Of India Ltd. 4.6 Kotak Mahindra Bank Ltd Bajaj Finserv Ltd. 4.5 Tata Motors Ltd. 4. CBLO Cash & Cash Equivalents 3.4 1Yr 3Yrs 5Yrs 1Yrs Lupin Ltd. 3.3 Total Investment Fund Value Benchmark Value Top 1 Sectors Pharmaceuticals & Drugs Bank - Private IT - Software Travel Services Finance - NBFC Power Generation/Distribution Finance - Investment Automobiles-Trucks/Lcv Mining & Minerals Auto Ancillary Asset Type Whats In Whats out 3.7 Divis Laboratories Ltd Risk Parameters Portfolio Attributes Standard Deviation () Total Stocks 37. Beta.89 Top 1 Holdings () 51. Sharpe ratio -.1 Fund P/E Ratio 32.1 R Squared.89 Benchmark P/E Ratio -- Alpha () 6.4 Fund P/BV Ratio 4.9 Market Capitalisation () Asset Allocation Large 59. Equity 92.1 Mid 2.8 Debt. Small 12.2 Cash 7.9 Data as on January 4,216 ;Portfolio details as on Nov-215

7 Performance of all the schemes managed by the fund manager ICICI Pru LT Equity Fund (Tax Saving)-Reg(G ICICI Pru Child Care Plan-Gift Plan Crisil Balanced Fund Index Dividend History Date Dividend () Feb Nov Feb Feb Feb Feb Value of investment of 1 invested since inception Particulars ICICI Prudential Tax Plan Benchmark 6961 Additional Benchmark 591 Fund name Product Label This product is suitable for investors seeking*: Long term wealth creation solution An equity linked savings scheme that aims to generate long term capital appreciation by primarily investing in equity and related securities. Data as on January 4,216 ;Portfolio details as on Nov-215

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