March CRISIL MutualFundRanking

Transcription

1 March 2015 CRISIL MutualFundRanking For the quarter ended March 31, 2015

2 CRISIL MutualFundRanking About CRISIL Limited CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations. About CRISIL Research CRISIL Research is India's largest independent integrated research house. We provide insights, opinion and analysis on the Indian economy, industry, capital markets and companies. We also conduct training programs to financial sector professionals on a wide array of technical issues. We are India's most credible provider of economy and industry research. Our industry research covers 86 sectors and is known for its rich insights and perspectives. Our analysis is supported by inputs from our network of more than 5,000 primary sources, including industry experts, industry associations and trade channels. We play a key role in India's fixed income markets. We are the largest provider of valuation of fixed income securities to the mutual fund, insurance and banking industries in the country. We are also the sole provider of debt and hybrid indices to India's mutual fund and life insurance industries. We pioneered independent equity research in India, and are today the country's largest independent equity research house. Our defining trait is the ability to convert information and data into expert judgements and forecasts with complete objectivity. We leverage our deep understanding of the macro-economy and our extensive sector coverage to provide unique insights on micro-macro and cross-sectoral linkages. Our talent pool comprises economists, sector experts, company analysts and information management specialists. CRISIL Privacy CRISIL respects your privacy. We use your contact information, such as your name, address, and id, to fulfil your request and service your account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financial you may find of interest. For further information, or to let us know your preferences with respect to receiving marketing materials, please visit You can view McGraw Hill Financial's Customer Privacy Policy at Last updated: August, Disclaimer CRISIL Research, a division of CRISIL Limited (CRISIL), has taken due care and caution in preparing this Report based on the information obtained by CRISIL from sources which it considers reliable (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. This Report is not a recommendation to invest / disinvest in any company covered in the Report. CRISIL especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this Report. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL s Ratings Division / CRISIL Risk and Infrastructure Solutions Limited (CRIS), which may, in their regular operations, obtain information of a confidential nature. The views expressed in this Report are that of CRISIL Research and not of CRISIL s Ratings Division / CRIS. No part of this Report may be published / reproduced in any form without CRISIL s prior written approval.

3 Balanced funds shine as equities run up, rates decline Balanced funds held sway over Monthly Income Plans (MIP), debt and even large-cap equity peers (Table 1) last fiscal, riding on interest rate cuts and continued firmness in equities. These funds typically invest over 65% of their corpus in equity and the remaining in debt and cash, which allows them to tap run-ups in either category. The CRISIL - AMFI Balance Fund Performance Index gave a return of 37.17% in compared with 20.92% by monthly income plans (CRISIL - AMFI MIP Fund Performance Index) and 12.47% by debt (CRISIL - AMFI Debt Fund Performance Index). Within Balanced category, higher allocation to equity especially in the last one year helped CRISIL fund rank 1 & 2s outperform their peers. Balanced category also outperformed the CRISIL - AMFI Large Cap Fund Performance Index in most time horizons considered. Industry Highlights The domestic mutual fund industry's average assets under management (AUM) recorded the sixth consecutive quarter of growth, rising 7.45% or by Rs bn to Rs trillion (excluding fund of funds) in the three months ended March, as per the data released by the Association of Mutual Funds in India (AMFI). For the fiscal ended March, the industry posted an increase of 31.3%, or Rs 2.84 trillion, in AUM the fastest run-up since AMFI started declaring quarterly average assets in September Growth in the latest quarter was driven primarily by a surge in equity assets, though a slide in fixed maturity plans (FMPs) and gold exchange traded funds (ETFs) capped the gains. Table 1 - Category and benchmark returns (%) for quarter ended March year Absolute 2 years Absolute 3 years Annualised 5 years Annualised CRISIL AMFI Large Cap Fund Performance Index 34.61% 26.85% 19.63% 12.70% CRISIL AMFI Income Fund Performance Index 14.81% 8.85% 9.58% 8.48% CRISIL AMFI Debt Fund Performance Index 12.47% 8.93% 9.41% 8.46% CRISIL AMFI Gilt Fund Performance Index 17.87% 9.43% 9.93% 7.96% CRISIL AMFI Short Term Debt Fund Performance Index 10.84% 9.30% 9.57% 8.64% CRISIL AMFI MIP Fund Performance Index 20.92% 14.35% 12.38% 10.02% CRISIL AMFI Balance Fund Performance Index 37.17% 27.36% 19.70% 14.09% On the debt side, the yield on the 10-year gilt securities fell over 100 basis points last fiscal. A portfolio analysis of CRISIL ranked balanced funds shows funds increased their gilt exposure to 13% on average last fiscal, compared with 8% in FY14, thereby benefitting from interest rate fall. Further, higher allocation to gilt especially in the last one year helped CRISIL fund rank 1 & 2s outperform their peers The latest CRISIL Mutual Fund Ranking covers close to 88% of the average assets under management of open-ended schemes at the end of March Unlike most other ranking models, which are based purely on returns or net asset value (NAV), CRISIL Mutual Fund Ranking uses a combination of NAV and portfolio-based attributes for evaluation. This provides a single-point analysis of mutual funds, taking into consideration key parameters such as risk-adjusted returns, asset concentration, liquidity, asset quality and exposure to sensitive sectors. The rankings also include categories that focus specifically on long-term consistency in performance. The ranks are assigned on a scale of 1 to 5, with CRISIL Fund Rank 1 indicating 'very good performance'. In any peer group, the top 10 percentile of funds are ranked as CRISIL Fund Rank 1 and the next 20 percentile as CRISIL Fund Rank 2. For further details on rankings and methodology, investors can log on to Equity funds provided the thrust to the industry as the category continued to attract investor interest on an uptrend in the underlying asset class. The category's average AUM rose to a record high of Rs 3.82 trillion, up 13.58% or by Rs bn, riding on healthy inflows of Rs 257 bn and mark-to-market (MTM) gains. The domestic equity market, as represented by the CNX Nifty, gained 2.5% in the quarter. Long-duration debt funds and gilt funds grew for the second consecutive quarter. Long-term debt funds' average AUM gained 26.78% or Rs bn to Rs bn, while gilt funds' AUM rose to the highest level ever (since September 2010) at Rs bn, up 73.12% or by Rs bn. Both categories benefitted from progressive inflows amid a reduction in policy rates by the Reserve Bank of India (RBI) and hopes of further cuts. The central bank cut the benchmark repo rate twice during the quarter by 25 basis points each to 7.50%. Short-term and ultra-short term debt funds sustained their uptrend for the fourth consecutive quarter. Short-term debt funds' assets surpassed the Rs 1 trillion mark in the latest quarter to Rs 1.11 trillion, up 15.75% or by Rs bn, while those of ultra short-term debt funds grew 3.51% or by Rs bn to Rs 1.19 trillion. For the quarter ended March 31,

4 CRISIL MutualFundRanking Chart 1 Mutual Fund Net Flows and AUM Trend Table 2 Category-wise average AUM (Rs bn) 12.5 Net flows (Rs trillion) Industry AUM (Rs trillion) 1.7 Mutual fund category Jan-Mar 2015 Oct-Dec 2014 Absolute % Change Change (bn) AUM Rs trillion Net flows Rs trillion Equity* Liquid/money market Ultra short term Short term debt Long term debt Gilt Fixed maturity plans (FMPs) Infrastructure debt fund Other debt-oriented funds Gold ETFs Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Others Total Source Association of Mutual Funds in India (AMFI) Liquid funds posted a marginal rise in average AUM after a slide the previous quarter. The category's AUM rose by Rs bn to Rs 2.73 trillion in the latest quarter. Changes announced in the previous budget (July 2014) including an increase in long-term capital gains tax on debtoriented mutual funds to 20% from 10% and a change in the definition of 'long term' for debt mutual funds to 36 months from 12 months continued to weigh on the assets of FMPs. The category's AUM fell for the third consecutive quarter in March shedding 5.24% or Rs bn to close at Rs 1.50 trillion. Gold ETFs continued their downtrend, marking the sixth consecutive quarter of fall as investors shied away from the category due to subdued performance. The category's AUM fell 2.53% or by Rs 1.81 bn to Rs bn due to persistent outflows and MTM losses. Gold prices, as represented by the CRISIL Gold Index, fell 3.18%. Average AUM of direct plans rose 7.68% or by Rs bn to Rs 3.96 trillion at the end of March. The share of direct plans, however, remained stable at 33% of the industry's AUM (excluding fund of funds) compared with the previous quarter. Of the 43 fund houses (including IDFs) that declared their average AUM, 35 logged growth. The share of the top five rose to 56% from 55% the previous quarter, while the share of the top 10 was unchanged at 79%. HDFC Mutual Fund topped the table in average AUM, posting a growth of 7.4% or up by Rs bn to Rs 1.62 trillion. ICICI Prudential Mutual Fund maintained the second position at Rs 1.49 trillion, up 8.6% or by Rs bn, though it was the top performer in terms of absolute rise in assets. Reliance Mutual Fund ranked third at Rs 1.37 trillion as its average assets rose 8.8% or by Rs bn. As per data from Securities and Exchange Board of India (SEBI), mutual funds bought equities worth Rs 91 bn during Source - CRISIL Mutual Fund Database * Includes equity-oriented funds, balanced funds and ETFs the three months ended March 2015 compared with Rs 147 bn of buying in the previous quarter. On the debt front, mutual funds net bought Rs 1.74 trillion in the quarter ended March compared with Rs 1.33 trillion in the previous quarter. Major regulations and developments in the quarter SEBI relaxed norms for domestic funds managing offshore money by dropping the '20-25 rule', which required a minimum of 20 investors and a cap of 25% on an investment by an individual, for funds from low-risk foreign investors. Further, it allowed mutual fund houses and alternative investment funds to set up shop at the International Financial Services Centre (IFSC). SEBI allowed MFs belonging to the same group as merchant bankers of an IPO to play the role of an anchor investor. The regulator cancelled the portfolio management licence held by Sahara Asset Management Company, saying the firm does not comply with its "fit and proper" norms. AMFI sent a proposal to all fund houses to cap upfront commission at 1% with effect from April 1, The AMFI committee on operations and compliance has asked mutual funds to withdraw the dividend reinvestment sub-option under ELSS products to avoid confusion among investors. AMFI also launched MF Utility - an online platform that will allow investment in multiple mutual fund schemes via submission of a single transaction form. The Central Board of Direct Taxes says the rollover of mutual fund FMPs beyond 36 months will not attract capital gains. Yes Bank said it will enter the mutual fund business soon through either the organic or inorganic route. Nippon Life hiked its stake in Reliance Capital Asset Management to 35% by acquiring an additional 9% stake for Rs 6.57 bn. Peerless General Finance & Investment Company infused Rs 0.24 bn in its mutual fund arm, Peerless Funds Management Company, in compliance with SEBI's minimum networth requirement. IDFC MF permits trading through stock exchange mechanism in all open-ended schemes.. 2

5 Table 3 Movement of Key Equity Market Indices Index Source-National Stock Exchange ( NSE) Sectoral Indices sorted on 3-month returns Quarter ended Mar-15 (% change) Equity market overview Year ended Mar-15 (% change) CNX Nifty CNX CNX Pharma CNX IT Sector CNX Infrastructure CNX Smallcap CNX Realty CNX Auto CNX Midcap CNX FMCG CNX Commodities CNX Bank CNX Energy CNX Metal The Indian equity market represented by the CNX Nifty advanced 2.5% in the quarter ended March mainly due to upbeat domestic and global developments. One of the key positives was the RBI's unexpected decision to cut the repo rate twice, by 25 bps each in January and March, to 7.50%. Investors also cheered the passing of the Insurance Bill, which raised foreign direct investment (FDI) in the sector to 49% from 26%, and the Mines and Mineral Development and Regulation Bill in the Rajya Sabha. Key economic events (Union budget and Economic Survey) and positive GDP growth estimate (due to change in methodology for calculating domestic growth) also contribute to the gains. Sentiments were boosted further after the International Monetary Fund (IMF) in its January World Economic Outlook said India will grow at 6.5% in 2016, overtaking China's projected growth rate of 6.3%. More gains were seen after the US Federal Reserve (Fed) depicted a dovish stance in its meetings on the timing of its future rate hike and on hopes of further stimulus by China's policy makers to boost the economy. Strong inflows of Rs 359 bn by FIIs during the quarter compared with Rs 143 bn in the December quarter brought in more cheer to the market. Further gains were, however, checked, especially in the last month of the quarter, as the release of upbeat US jobs data sparked worries about the earlier-than-expected interest rate Chart 2 Mutual Fund Daily Investments & Nifty Movement CNX Nifty Dec-14 2-Jan-15 6-Jan-15 8-Jan Jan Jan Jan Jan Jan Jan Jan-15 2-Feb-15 4-Feb-15 6-Feb Feb Feb Feb Feb Feb Feb Feb-15 2-Mar-15 4-Mar-15 9-Mar Mar Mar Mar Mar Mar Mar Mar Mar-15 FII Daily Net Equity Investments MF Daily Net Equity Investments Nifty Source- SEBI, NSE hike by the Fed. Markets also fell on reports of the Saudi Arabialed air strikes on Yemen which resulted in a surge in oil prices. Investors' mood dampened further due to political and debt deal uncertainty in Greece and Switzerland's unexpected decision to abandon its currency cap. On the domestic front, heavy profit booking on concerns about future interest rate cuts amid higherthan-expected Consumer Price Index (CPI)-based inflation numbers in February pulled down the indices. Discouraging quarterly earnings from some of the index heavyweights weighed on the benchmarks further. The NSE sectoral indices posted mixed performance in the quarter. CNX Pharma Index (up 17.31%) was the topmost gainer, as investors preferred to take defensive bets. CNX IT index surged nearly 8% on defensive buying and strong earnings and upbeat guidance from Cognizant Technology Solutions. CNX Infrastructure followed with nearly 7% gains after the Union budget provided a greater push to the infrastructure sector through increased spending and other reforms. CNX Metal index was the biggest loser down 12.65%, due to a sell-off in metal shares, after China - the world's largest consumer and importer of metals - set a lower growth target of about 7% for CNX Energy lost 4.4% due to profit booking in the oil and gas stocks FII/ MF Daily Net Equity Investments Rs. billion MARKET OVERVIEW For the quarter ended March 31,

6 31-Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar-15 CRISIL MutualFundRanking Debt market overview Interbank call money rates fluctuated broadly in the range of 7-9% in the quarter. Call rates were on the higher side earlier as liquidity conditions were put under stress due to outflows pertaining to the Centre's divestment of Coal India and demand for funds to make payments towards indirect taxes and gilt state development bonds' auctions. Rates were pressurised further as banks regularly borrowed to meet mandatory reserve requirements and as they borrowed to Chart 3 Movement of Overnight MIBOR 10.50% 9.50% 8.50% 7.50% 6.50% 5.50% participants pulled down the prices further. Gilts were also put under pressure owing to the rupee's sporadic weakness against the US dollar and owing to escalating violence in Yemen. Sentiment also turned bit sour after the RBI Governor Mr Raghuram Rajan said that the central bank may hike interest rates if future economic data surprises on the negative side. Gilts were affected further on reports that the government will be completing its Rs 500 bn switch and buyback operations in the Chart 4 10-Year Benchmark Gilt Yield 9.30% 9.00% 8.70% 8.40% 8.10% 7.80% 7.50% Source - NSE meet fund outflows on account of fiscal year-end loan disbursements. However, the RBI's periodic fund infusions in the form of repo auctions pulled down the call rates. The rates fell further as inflows from government spending ensured that there was ample liquidity in the banking system. Meanwhile, to help banks manage their fund flows, the RBI announced that it will conduct reverse repo and marginal standing facility (MSF) operations on all Saturdays with effect from February 21, in addition to the daily operations five days a week. Indian government bond prices (gilts) ended the quarter in positive territory with the yield on the 10-year benchmark paper 8.40% 2024 falling to 7.74% on March 31, 2015, compared with 7.86% on December 31, Sentiments were primarily boosted by the RBI's interest rate cuts outside its bi-monthly policy cycle in January and March, leading to expectations of further rate cuts in the coming months; the RBI surprised the markets by slashing the benchmark repo rate twice by 25 bps each time to 7.50%. Bond prices also gained due to a lowerthan-expected rise in January consumer inflation numbers and the rupee's sharp rise against the US dollar following the European Central Bank's (ECB) decision to stimulate the Eurozone economy through bond purchases. Prices received further support after the finance minister said that the Centre's divestment mop-up in FY2015 was the highest in the last 10 years. Intermittent decline in benchmark US Treasury yields and a plunge in global crude oil prices amid oversupply concerns also buoyed gilts. Moreover, investors reacted positively to the release of the government's borrowing calendar for the first half of the next fiscal year. According to the borrowing calendar, the Centre will borrow Rs 3.60 trillion in the first half of FY16, which would be 66.7% of the full-year target announced in the annual budget last month. Gains were, however, capped as the Centre revised the fiscal deficit target to 3.9% for Profit sales by some Source - CRISIL Fixed Income Database current financial year. Fears that Greece may exit the Eurozone also pulled down the prices. Meanwhile, in the Union Budget for FY16, Finance Minister Arun Jaitley proposed gross market borrowings at Rs 6.0 trillion and net market borrowings at Rs 4.56 trillion. The budget also proposed to establish a 'Public Debt Management Agency' for government borrowing which is expected to facilitate better planning and management of domestic and foreign market borrowings for the Centre. Among major developments, the government plans to take away the RBI's regulatory powers over government bonds, but leave the central bank in charge of other money market instruments. Finance Secretary Rajiv Mehrishi said that the government will, for the first time, use a 40-year bond to borrow up to Rs 100 bn in FY2016. The central bank decided to indicate, from April 6, the government's surplus cash balance to help market participants assess systemic liquidity better. The RBI clarified that foreign portfolio investors (FPIs) will not be allowed to make any further investments in debt instruments having minimum initial and residual maturity of three years with an optionality clause exercisable within three years. The RBI and SEBI allowed reinvestment of coupons of government bonds in a bid to attract more long-term foreign investment to the Indian bond market. The central bank allowed banks and other market participants to re-issue government securities with the objective of developing the term repo market. It also doubled the minimum subscription per investor in non-convertible debentures issued by non-banking finance companies to Rs 20,000. SEBI approved a new set of norms for listing and trading of municipal bonds on stock exchanges. SEBI notified that a call and put on a public issue of debt securities cannot be exercised before the expiry of 24 months from the date of issue of such securities. 4

7 CRISIL Mutual Fund categories Equity Funds 1. Large Cap-oriented Equity Funds 2. Diversified Equity Funds 3. Small and Mid-cap Equity Funds 4. Thematic - Infrastructure Funds 5. Consistent Performers - Equity Funds 6. Equity Linked Savings Scheme (ELSS) 7. Index Funds Hybrid Funds 8. Balanced Funds 9. Consistent Performers - Balanced Funds 10. Monthly Income Plan - Aggressive Debt Funds 11. Long Term Gilt Funds 12. Long Term Income Funds 13. Consistent Performers - Debt Funds 14. Short Term Income Funds 15. Credit Opportunities Funds 16. Ultra Short-term Debt Funds 17. Liquid Funds Performance period for rankings: Three years for equity funds (including index funds), long term income funds, gilt funds and hybrid funds; one year for liquid, ultra short-term debt, short term income and credit opportunities funds; five years ranking history in CRISIL Mutual Fund Ranking for consistent performers. CRISIL Mutual Fund Ranking category definitions Rankings category Interpretation CRISIL Fund Rank 1 CRISIL Fund Rank 2 CRISIL Fund Rank 3 CRISIL Fund Rank 4 CRISIL Fund Rank 5 Very good performance* Good performance Average performance Below average performance Relatively weak performance *If the top 10 percentile figure is not an integer, the same is rounded off to the nearest integer. The same approach is adopted for CRISIL Fund Rank 2 (11th to 30th percentile), CRISIL Fund Rank 5 (last 91st to 100th percentile) and CRISIL Fund Rank 4 (71st to 90th percentile) clusters. The residual schemes in the universe are placed in the CRISIL Fund Rank 3 cluster. For the quarter ended March 31,

8 CRISIL MutualFundRanking Large Cap oriented Equity funds (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean Industry Company Large Cap-oriented Equity funds Mar- 15 Return Volatility Concentration Concentration Liquidity Weightages 50% 25% 10% 5% 10% Franklin India Opportunities Fund SBI Blue Chip Fund Tata Equity Opportunities Fund Birla Sun Life Top 100 Fund Kotak Opportunities L&T India Large Cap Fund UTI Equity Fund UTI Mastershare Unit Scheme UTI Top 100 Fund Birla Sun Life Frontline Equity Fund BOI AXA Equity Fund Franklin India Bluechip Fund ICICI Prudential Focused Bluechip Equity Fund ICICI Prudential Select Large Cap Fund IDFC Equity Fund JPMorgan India Equity Fund Kotak Principal Large Cap Fund Reliance Focused Large Cap Fund SBI Magnum Equity Fund Tata Pure Equity Fund UTI India Lifestyle Fund UTI Opportunities Fund ICICI Prudential Top 100 Fund LIC Nomura MF Equity Fund Sundaram Growth Fund Sundaram Select Focus UTI Dividend Yield Fund UTI Leadership Equity Fund DSP BlackRock Top 100 Equity Fund HDFC Top 200 Fund HSBC Equity Fund

9 Diversified Equity funds (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean Industry Company Diversified Equity funds Mar - 15 Return Volatility Concentration Concentration lliquidity Weightages 50.0% 25.0% 10.0% 5.0% 10.0% Franklin India High Growth Companies Fund ICICI Prudential Exports and Other Services Fund ICICI Prudential Value Discovery Fund Tata Ethical Fund UTI MNC Fund Birla Sun Life India GenNext Fund Birla Sun Life Long Term Advantage Fund BNP Paribas Equity Fund Franklin India Flexi Cap Fund Franklin India Prima Plus Kotak Select Focus Fund Mirae Asset India Opportunities Fund Reliance Equity Opportunities Fund SBI Magnum MultiCap Fund SBI Magnum Multiplier Fund EQUITY FUNDS Birla Sun Life Advantage Fund Birla Sun Life Equity Fund DSP BlackRock Focus 25 Fund DSP BlackRock Opportunities Fund DWS Investment Opportunity Fund HDFC Capital Builder Fund HDFC Small and Mid Cap Fund HSBC India Opportunities Fund ICICI Prudential Dynamic Plan ICICI Prudential Top 200 Fund L&T Equity Fund L&T India Special Situations Fund Principal Growth Fund Quantum Long-Term Equity Fund Reliance Top 200 Fund SBI Contra Fund Tata Dividend Yield Fund Tata Equity PE Fund Taurus Starshare Axis Equity Fund Birla Sun Life Dividend Yield Plus Canara Robeco Equity Diversified DSP BlackRock Equity Fund HDFC Equity Fund HDFC Premier MultiCap Fund Continued For the quarter ended March 31,

10 CRISIL MutualFundRanking Diversified Equity funds (Contd.) (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean Industry Company Diversified Equity funds Mar - 15 Return Volatility Concentration Concentration lliquidity Weightages 50.0% 25.0% 10.0% 5.0% 10.0% Reliance Growth Fund Reliance Regular Savings Fund - Equity Reliance Vision Fund Templeton India Growth Fund HDFC Core and Satellite Fund HDFC Growth Fund HDFC Large Cap Fund Religare Invesco PSU Equity Fund SBI PSU Fund

11 Small and Mid-cap Equity funds (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean Industry Company Small and Mid-cap Equity funds Mar - 15 Return Volatility Concentration Concentration lliquidity Weightages 50.0% 25.0% 10.0% 5.0% 10.0% Canara Robeco Emerging Equities Principal Emerging Bluechip Fund Tata Mid Cap Growth Fund Birla Sun Life MNC Fund DSP BlackRock Micro Cap Fund Franklin India Smaller Companies Fund JPMorgan India Mid and Small Cap Fund Mirae Asset Emerging Bluechip Fund UTI Mid Cap Fund Franklin India Prima Fund HDFC Mid-Cap Opportunities Fund HSBC Midcap Equity Fund ICICI Prudential MidCap Fund Kotak Emerging Equity Reliance Mid & Small Cap Fund Reliance Small Cap Fund Religare Invesco Mid N Small Cap Fund SBI Magnum Global Fund SBI Magnum Midcap Fund Sundaram S M I L E Fund Axis Midcap Fund Birla Sun Life Midcap Fund Birla Sun Life Pure Value Fund IDFC Premier Equity Fund Kotak Midcap Sundaram Select Midcap DSP BlackRock Small and Midcap Fund IDFC Sterling Equity Fund SBI Emerging Businesses Fund For the quarter ended March 31,

12 CRISIL MutualFundRanking Thematic - Infrastructure funds (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean Industry Company Thematic - Infrastructure funds Mar - 15 Return Volatility Concentration Concentration lliquidity Weightages 50.0% 25.0% 10.0% 5.0% 10.0% Canara Robeco Infrastructure Franklin Build India Fund Birla Sun Life India Reforms Fund Kotak Infrastructure and Economic Reform Fund L&T Infrastructure Fund Birla Sun Life Infrastructure Fund DSP BlackRock India T.I.G.E.R. Fund HDFC Infrastructure Fund HSBC Progressive Themes Fund JM Basic Fund Sundaram Infrastructure Advantage Fund Tata Infrastructure Fund ICICI Prudential Infrastructure Fund SBI Infrastructure Fund UTI Infrastructure Fund IDFC Infrastructure Fund Reliance Diversified Power Sector Fund

13 Consistent Performers - Equity funds (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean CRISIL Rank Consistent Performers - Equity funds Mar- 15 Return Volatility Performance Weightages 35.0% 15.0% 50.0% Birla Sun Life India GenNext Fund Birla Sun Life MNC Fund Birla Sun Life Top 100 Fund Franklin India High Growth Companies Fund ICICI Prudential Exports and Other Services Fund Mirae Asset India Opportunities Fund Reliance Equity Opportunities Fund Tata Ethical Fund UTI Equity Fund UTI MNC Fund Birla Sun Life Frontline Equity Fund Birla Sun Life Infrastructure Fund BNP Paribas Equity Fund DSP BlackRock Micro Cap Fund Franklin India Prima Plus HDFC Mid-Cap Opportunities Fund ICICI Prudential Dynamic Plan ICICI Prudential Focused Bluechip Equity Fund ICICI Prudential Value Discovery Fund IDFC Premier Equity Fund JPMorgan India Mid and Small Cap Fund L&T Equity Fund L&T India Special Situations Fund Quantum Long-Term Equity Fund SBI Blue Chip Fund SBI Emerging Businesses Fund SBI Magnum Global Fund UTI Mid Cap Fund UTI Opportunities Fund Birla Sun Life Dividend Yield Plus Birla Sun Life Equity Fund Canara Robeco Equity Diversified DSP BlackRock India T.I.G.E.R. Fund DSP BlackRock Opportunities Fund DSP BlackRock Small and Midcap Fund Franklin India Bluechip Fund Franklin India Flexi Cap Fund Franklin India Opportunities Fund Franklin India Prima Fund HDFC Capital Builder Fund HDFC Equity Fund HDFC Small and Mid Cap Fund HDFC Top 200 Fund HSBC India Opportunities Fund ICICI Prudential Infrastructure Fund ICICI Prudential Top 100 Fund ICICI Prudential Top 200 Fund JPMorgan India Equity Fund Kotak Midcap Continued For the quarter ended March 31,

14 CRISIL MutualFundRanking Consistent Performers - Equity funds (Contd.) (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean CRISIL Rank Consistent Performers - Equity funds Mar - 15 Return Volatility Performance Weightages 35.0% 15.0% 50.0% Kotak Opportunities L&T India Large Cap Fund Principal Growth Fund Principal Large Cap Fund Reliance Mid & Small Cap Fund Reliance Top 200 Fund SBI Magnum Equity Fund SBI Magnum Midcap Fund SBI Magnum Multiplier Fund Sundaram Select Midcap Tata Dividend Yield Fund Tata Equity Opportunities Fund Tata Equity PE Fund Taurus Starshare UTI Dividend Yield Fund UTI Mastershare Unit Scheme UTI Top 100 Fund Birla Sun Life Advantage Fund Birla Sun Life Midcap Fund DSP BlackRock Equity Fund DSP BlackRock Top 100 Equity Fund HDFC Core and Satellite Fund HDFC Growth Fund HDFC Large Cap Fund HDFC Premier MultiCap Fund ICICI Prudential MidCap Fund JM Basic Fund Kotak Reliance Growth Fund Reliance Regular Savings Fund - Equity Reliance Vision Fund SBI Magnum MultiCap Fund Sundaram S M I L E Fund Tata Infrastructure Fund Tata Pure Equity Fund UTI Leadership Equity Fund HSBC Equity Fund Reliance Diversified Power Sector Fund Reliance Focused Large Cap Fund SBI Contra Fund SBI Infrastructure Fund Sundaram Growth Fund Sundaram Infrastructure Advantage Fund Sundaram Select Focus Templeton India Growth Fund UTI Infrastructure Fund

15 Equity Linked Savings Scheme (ELSS) (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Mean Industry Company Equity Linked Savings Scheme (ELSS) Mar- 15 Return Volatility Concentration Concentration lliquidity Weightages 50.0% 30.0% 10.0% 5.0% 5.0% Axis Long Term Equity Fund Religare Invesco Tax Plan Birla Sun Life Tax Relief BNP Paribas Long Term Equity Fund Franklin India Taxshield Fund Reliance Tax Saver Fund Birla Sun Life Tax Plan DSP BlackRock Tax Saver Fund HSBC Tax Saver Equity Fund ICICI Prudential Tax Plan IDFC Tax Advantage Fund Kotak Tax Saver Scheme Principal Tax Saving Fund SBI Magnum Tax Gain Scheme Tata Tax Saving Fund UTI Equity Tax Saving Plan Canara Robeco Equity Tax Saver L&T Tax Advantage Fund Principal Personal Tax Saver Sundaram Taxsaver HDFC Long Term Advantage Fund HDFC Tax Saver Fund For the quarter ended March 31,

16 CRISIL MutualFundRanking Index funds (Cluster ranks are arranged alphabetically) CRISIL Fund Rank Index funds Mar - 15 Goldman Sachs Nifty Exchange Traded Scheme (GS Nifty BeES) 1 Kotak Nifty ETF 1 HDFC Index Fund - Nifty Plan 2 Reliance Index Fund - Nifty Plan 2 UTI Nifty Index Fund 2 Franklin India Index Fund - NSE Nifty Plan 3 HDFC Index Fund - Sensex Plan 3 ICICI Prudential Index Fund - Nifty Plan 3 IDFC Nifty Fund 3 Principal Index Fund 3 Birla Sun Life Index Fund 4 IDBI Nifty Index Fund 4 SBI Nifty Index Fund 4 LIC Nomura MF Index Fund - Nifty Plan 5 LIC NOMURA MF Index Fund - Sensex Plan 5 14

17 Balanced funds (Cluster ranks are arranged alphabetically) CRISIL Superior Industry Debt Fund Rank Return Concentration/ Exposure to Company Asset Debt Equity Balanced funds Mar - 15 Score Sensitive Sector* Concentration Quality Liquidity Liquidity Weightages 75.0% 10.0% 5.0% 5.0%*(100-K) 5.0%*(100-K) 10.0%*K Tata Balanced Fund Franklin India Balanced Fund HDFC Balanced Fund SBI Magnum Balanced Fund Birla Sun Life 95 Fund DSP BlackRock Balanced Fund HDFC Prudence Fund ICICI Prudential Balanced Fund Reliance Regular Savings Fund - Balanced ICICI Prudential Balanced Advantage Fund JM Balanced Fund UTI Balanced Fund Kotak Balance *Industry concentration for equity and Exposure to Sensitive Sector for debt portion of the portfolio K = Equity Component in Hybrid Funds Consistent Performers - Balanced funds (Cluster ranks are arranged alphabetically) CRISIL Superior CRISIL Fund Rank Return Fund Rank Consistent Performers - Balanced funds Mar - 15 Score Performance Weightages 50.0% 50.0% Tata Balanced Fund HDFC Balanced Fund ICICI Prudential Balanced Fund Birla Sun Life 95 Fund Franklin India Balanced Fund HDFC Prudence Fund ICICI Prudential Balanced Advantage Fund Reliance Regular Savings Fund - Balanced SBI Magnum Balanced Fund HYBRID FUNDS DSP BlackRock Balanced Fund Kotak Balance UTI Balanced Fund For the quarter ended March 31,

18 CRISIL MutualFundRanking Monthly Income Plan - Aggressive (Cluster ranks are arranged alphabetically) CRISIL Superior Industry Debt Fund Rank Return Concentration / Exposure to Company Asset Debt Equity Modified Monthly Income Plan - Aggressive Mar - 15 Score Sensitive Sector* Concentration Quality Liquidity Liquidity Duration Weightages 60.0% 5.0% 5.0% 17.5% 7.5%*(100-K) 7.5%*K 5.0% Birla Sun Life MIP II - Wealth 25 Plan ICICI Prudential MIP Reliance Monthly Income Plan Tata MIP Plus Fund UTI MIS Advantage Plan BNP Paribas Monthly Income Plan Canara Robeco Monthly Income Plan Franklin India Monthly Income Plan HDFC Monthly Income Plan - LTP HSBC MIP - Savings IDFC Monthly Income Plan Kotak Monthly Income Plan DSP BlackRock MIP Fund HDFC Monthly Income Plan - STP L&T Monthly Income Plan LIC Nomura MF Monthly Income Plan Peerless Income Plus Fund *Industry concentration for equity and Exposure to Sensitive Sector for debt portion of the portfolio K = Equity Component in Hybrid Funds 16

19 Long Term Gilt funds (Cluster ranks are arranged alphabetically) CRISIL Superior Fund Rank Return Modified Long Term Gilt funds Mar- 15 Score Duration Liquidity Weightages 75.0% 10.0% 15.0% L&T Gilt SBI Magnum Gilt Fund - Long Term Birla Sun Life Gilt Plus - PF Plan HDFC Gilt Fund - Long Term Plan IDFC G Sec Fund - PF Plan Reliance Gilt Securities Fund Birla Sun Life Govt Securities - Long Term Plan Franklin India G-Sec Fund - Composite Plan Franklin India G-Sec Fund - Long Term Plan ICICI Prudential Gilt - Investment - PF Option IDFC G Sec Fund - Investment Plan Tata Gilt Securities Fund UTI Gilt Advantage Fund - Long Term Plan Canara Robeco Gilt PGS DWS Gilt Fund ICICI Prudential Long Term Gilt Fund Tata Gilt Mid Term Fund DSP BlackRock Govt Sec Fund Kotak Gilt - Investment For the quarter ended March 31, 2015 DEBT FUNDS 17

20 CRISIL MutualFundRanking Long Term Income funds (Cluster ranks are arranged alphabetically) CRISIL Superior Fund Rank Return Modified Company Exposure to Asset Long Term Income funds Mar - 15 Score Duration Concentration Sensitive Sector Liquidity Quality Weightages 60.0% 5.0% 5.0% 5.0% 7.5% 17.5% HDFC High Interest Fund - Dynamic Plan IDFC Dynamic Bond Fund IDFC Super Saver Income Fund - Investment Plan Birla Sun Life Income Plus BNP Paribas Flexi Debt Fund HDFC Income Fund ICICI Prudential Income Plan Reliance Dynamic Bond Fund Axis Dynamic Bond Fund DSP BlackRock Strategic Bond Fund HSBC Flexi Debt Fund ICICI Prudential Income Opportunities Fund Kotak Bond Pramerica Dynamic Bond Fund Reliance Income Fund Tata Income Fund UTI Bond Fund UTI-Dynamic Bond Fund DSP BlackRock Bond Fund JPMorgan India Active Bond Fund Religare Invesco Active Income Fund SBI Dynamic Bond Fund Sundaram Flexible Fund - Flexible Income Plan L&T Triple Ace Bond Fund SBI Magnum Income Fund Sundaram Bond Saver

21 Consistent Performers - Debt funds (Cluster ranks are arranged alphabetically) CRISIL Superior CRISIL Fund Rank Return Fund Rank Consistent Performers - Debt funds Mar - 15 Score Performance Weightages 50.0% 50.0% IDFC Dynamic Bond Fund UTI Bond Fund HDFC High Interest Fund - Dynamic Plan HSBC Flexi Debt Fund IDFC Super Saver Income Fund - Investment Plan Birla Sun Life Income Plus BNP Paribas Flexi Debt Fund HDFC Income Fund Kotak Bond SBI Magnum Income Fund Reliance Income Fund Religare Invesco Active Income Fund Tata Income Fund DSP BlackRock Bond Fund ICICI Prudential Income Plan For the quarter ended March 31,

22 CRISIL MutualFundRanking Credit Opportunities Funds (Cluster ranks are arranged alphabetically) CRISIL Exposure to Fund Rank Mean Company Sensitive Asset Modified Credit Opportunities Funds Mar - 15 Return Volatility Concentration Sector Quality Duration Liquidity Weightages 50% 10.0% 5.0% 5.0% 10% 5.0% 15.0% Birla Sun Life Short Term Opportunities Fund Franklin India Income Builder Account Franklin India Short Term Income Plan HDFC Short Term Plan ICICI Prudential Corporate Bond Fund Franklin India Corporate Bond Opportunities Fund Franklin India Income Opportunities Fund HDFC Corporate Debt Opportunities Fund L&T Income Opportunities Fund UTI Income Opportunities Fund Birla Sun Life Medium Term Plan ICICI Prudential Regular Savings Fund Reliance Regular Savings Fund - Debt DSP BlackRock Income Opportunities Fund Kotak Income Opportunities Fund

23 Short Term Income funds (Cluster ranks are arranged alphabetically) CRISIL Exposure to Fund Rank Mean Company Sensitive Asset Modified Short Term Income funds Mar - 15 Return Volatility Concentration Sector Quality Duration Liquidity Weightages 50.0% 10.0% 5.0% 5.0% 10.0% 5.0% 15.0% Birla Sun Life Treasury Optimizer Plan DWS Banking & PSU Debt Fund L&T Short Term Opportunities Fund Birla Sun Life Short Term Fund DWS Premier Bond Fund HDFC Medium Term Opportunities Fund IDFC Super Saver Income Fund - Medium Term IDFC Super Saver Income Fund - Short Term JPMorgan India Banking and PSU Debt Fund Axis Short Term Fund BNP Paribas Medium Term Income Fund DSP BlackRock Banking & PSU Debt Fund HDFC Short Term Opportunities Fund HSBC Income Fund - Short Term Plan ICICI Prudential Banking & PSU Debt Fund Reliance Short Term Fund SBI Short Term Debt Fund Tata Short Term Bond Fund UTI Short Term Income Fund DWS Short Maturity Fund HDFC High Interest Fund - Short Term Plan ICICI Prudential Short Term Plan JPMorgan India Short Term Income Fund Kotak Bond Short Term Plan Sundaram Select Debt ST Asset Plan DSP BlackRock Short Term Fund Kotak Medium Term Fund Religare Invesco Short Term Fund For the quarter ended March 31,

24 CRISIL MutualFundRanking Ultra Short-term Debt funds (Cluster ranks are arranged alphabetically) CRISIL Exposure to Fund Rank Mean Company Sensitive Asset Modified Ultra Short-term Debt funds Mar - 15 Return Volatility Concentration Sector Quality Duration Liquidity Weightages 50.0% 10.0% 5.0% 5.0% 10.0% 5.0% 15.0% JM Money Manager Fund - Super Plus Plan Kotak Banking and PSU Debt Fund Religare Invesco Credit Opportunities Fund Sundaram Flexible Fund - Short Term Plan Axis Banking Debt Fund Birla Sun Life Floating Rate Fund - Long Term BNP Paribas Money Plus Fund DWS Treasury Fund - Investment Plan IDFC Banking Debt Fund L&T Ultra Short Term Fund SBI Ultra Short Term Debt Fund Tata Floater Fund UTI Treasury Advantage Fund Birla Sun Life Savings Fund DSP BlackRock Money Manager Fund DWS Ultra Short Term Fund HDFC Floating Rate Income Fund - Short Term Plan ICICI Prudential Flexible Income Plan ICICI Prudential Ultra Short Term Plan IDFC Money Manager Fund - Investment Plan IDFC Money Manager Fund - Treasury Plan IDFC Ultra Short Term Fund Indiabulls Ultra Short Term Fund JPMorgan India Treasury Fund Kotak Treasury Advantage Fund Reliance Medium Term Fund Reliance Money Manager Fund SBI Treasury Advantage Fund Sundaram Ultra Short Term Fund UTI Floating Rate Fund - STP Axis Treasury Advantage Fund Birla Sun Life Cash Manager Franklin India Low Duration Fund HDFC Cash Management Fund - Treasury Advantage Plan ICICI Prudential Savings Fund IDBI Ultra Short Term Fund Principal Debt Opportunities Fund Religare Invesco Ultra Short Term Fund Tata Treasury Manager Fund - Plan A Baroda Pioneer Treasury Advantage Fund DWS Cash Opportunities Fund Franklin India Ultra Short Bond Fund LIC NOMURA MF Savings Plus Fund

25 Liquid funds (Cluster ranks are arranged alphabetically) CRISIL Exposure to Fund Rank Mean Company Sensitive Asset Liquid funds Mar - 15 Return Volatility Concentration Sector Quality Liquidity Weightages 50.0% 10.0% 5.0% 5.0% 10.0% 20.0% DSP BlackRock Liquidity Fund ICICI Prudential Money Market Fund Indiabulls Liquid Fund JPMorgan India Liquid Fund Axis Liquid Fund Canara Robeco Liquid DWS Insta Cash Plus Fund HDFC Liquid Fund ICICI Prudential Liquid Plan JM High Liquidity Fund Sundaram Money Fund Birla Sun Life Cash Plus HDFC Cash Management Fund - Savings Plan IDBI Liquid Fund IDFC Cash Fund Kotak Liquid L&T Liquid Fund LIC Nomura MF Liquid Fund Reliance Liquid Fund - Treasury Plan Reliance Liquidity Fund SBI Premier Liquid Fund Tata Liquid Fund Tata Money Market Fund Union KBC Liquid Fund UTI Liquid Cash Plan Baroda Pioneer Liquid Fund Birla Sun Life Floating Rate Fund - Short Term BOI AXA Liquid Fund HSBC Cash Fund Kotak Floater - Short Term Taurus Liquid Fund UTI Money Market Fund Franklin India Treasury Management Account Principal Cash Management Fund Reliance Liquid Fund - Cash Plan Religare Invesco Liquid Fund For the quarter ended March 31,

26 CRISIL MutualFundRanking Annexure I - CRISIL Mutual Fund Ranking methodology CRISIL Mutual Fund Ranking is the relative ranking of mutual fund schemes within a peer group. The basic criteria for inclusion in the ranking universe are three-year NAV history (one-year for liquid, ultra short-term debt, short term income, credit oriented funds; and five years for consistent performers) and assets under management in excess of category cut-off limits and complete portfolio disclosure. Only open ended 1 schemes are considered. Ranking is based on the following parameters: Category-wise average AUM cut-off: Schemes falling under 98 percentile of the category AUM are shortlisted - Quarterly average AUM is considered - Schemes meeting inception criteria are eligible schemes Superior Return Score (SRS) SRS is the relative measure of the schemes' returns and risk (volatility) compared with their peer group. It is computed for long term income, balanced, monthly income plan (aggressive) and long term gilt categories. The three-year period of evaluation is divided into four overlapping periods the latest 36, 27, 18 and 9 months. Each period has a progressive weight starting from the longest period: 32.5%, 27.5%, 22.5% and 17.5% respectively. In case of consistent performers (for balanced and debt categories), SRS is calculated for five years; each one-year period is weighted progressively with the most recent period having the highest weightage. Mean Return and Volatility Mean return and volatility are considered as separate parameters in case of equity funds (large cap, small & mid-cap, equity diversified, equity linked savings schemes or ELSS and thematic infrastructure) and consistent performers - equity as well as short term debt categories (liquid, ultra short-term debt and short term income and credit opportunities funds). SRS is used for the rest of the categories. Mean return is the average of daily returns based on the scheme's NAV for the period under analysis and volatility is the standard deviation of these returns. While the period for analysis is three years for equity funds, it is one year for liquid, ultra short-term debt, credit opportunities and short term income funds. The period of analysis is broken into four periods (latest 36, 27, 18 and 9 months for equity categories and latest 12, 9, 6 and 3 months for short term categories). Each period is assigned a progressive weight starting from the longest period as follows: 32.5%, 27.5%, 22.5% and 17.5% respectively. In case of consistent performers - equity, mean return and volatility are calculated for five years; each one-year period is weighted progressively with the most recent period having the highest weight. Portfolio Concentration Analysis Concentration measures the risk arising out of improper diversification. For equity securities, diversity score is used as the parameter to measure industry and company concentration. In case of debt schemes, the company concentration is analysed at an individual issuer specific limit of 10%. Exposure to Sensitive Sector In case of debt schemes, the industry concentration is analysed for any exposure to sensitive sectors which are arrived based on Industry Risk Score (IRS) for various sectors. CRISIL's assessment of IRS quantifies the credit risk associated with an industry on a uniform scale to ensure comparability across industries. The score captures the influence of various industry variables on the debt repayment ability of companies in a particular sector over a 3-4 year time horizon. Liquidity Analysis It measures the ease with which a portfolio can be liquidated. The lower the score, the better it is. In case of equities, it measures the number of days to liquidate the portfolio. Liquidity is calculated by taking the average portfolio liquidity score of the past three months. Equity liquidity is computed as follows: Liquidity score of each stock = No. of shares held / Daily average trading volume of past six months Portfolio liquidity score = Weighted average liquidity score of the above Gilt liquidity is measured by analysing the number of days it will take to liquidate the portfolio based on turnover (volume) and number of securities in the portfolio, the number of days security has been traded and the number of trades over the latest threemonth period for that security. Corporate debt liquidity is computed by classifying each security into three categories - liquid, semi liquid and illiquid - and then evaluating a scheme's exposure to each category. 1 Only regular plans are considered for ranking 24