Monthly Market Outlook

August 2019

1
Equity Market Outlook
August- 2019

2
Slowdown Visible

3
Lead Indicators Suggest Weak Trends

Two-wheeler sales growth declined by ~12% YoY in June Passenger vehicle sales contracted for the eighth
consecutive month
Two Wheeler Sales (3mma, YoY%) Passenger Vehicle Sales (3mma, YoY%)

Source: CMIE, IIFL Research 4

 Low Tax Collection – Slowest In A Decade

Gross Tax Collection growth in April-June period fell to 1.36% in 2019-20

31.00%
30.56%
28.64%
26.00% 24.99%
22.14%
21.00%
17.53%
16.00% 15.16%

11.00%

6.00% 5.04% 4.16% 3.37%

1.36%
1.00%

-4.00%

-9.00%

-14.00% -11.30%
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Source: Controller General of Accounts, Bloomberg 5

Sectoral Capital Investment Trends For Key Sectors
(Rs Lakh Crore)

Note: Oil-and-gas capex only for public sector (private share in capex is limited); Source: CRISIL Research 6
 Weakening Capex Momentum

Slowdown In New Investment Projects Volume of stalled projects has started edging up

Source: CMIE, IIFL Research 7

 Growth Momentum Slowing Down

Quarterly Real GDP

10.0
9.4
9.1
9.0 8.9
8.7
8.0 8.1
8.0 8.0
8.0 7.7
7.5
(%)

7.1 7.6 7.0

7.0 7.0
7.2 6.6
6.8
US Tariff IL & FS
6.0
6.0 Inflation targeting Demon IBC Wars defaults
5.9 GST
5.3 5.8
5.0

4.0
Jun-14

Jun-15

Jun-16

Jun-17

Jun-18
Sep-14

Sep-15

Dec-15

Sep-16

Sep-17

Sep-18
Dec-14

Dec-16

Dec-17

Dec-18
Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19
Source: Elara Securities 8
 Business Sentiment: Worsening

Business Sentiment Has Worsened

Business Expectation Index: Expectation for Next Quarter

9
Source: CMIE, IIFL Research
Why The Slowdown

10
Source: RBI
-
250.00
500.00

(1,500.00)
(1,250.00)
(1,000.00)
(750.00)
(500.00)
(250.00)
1-Aug-18

15-Aug-18
Total Liquidity in INR bn

29-Aug-18
Tight Liquidity

12-Sep-18

26-Sep-18

10-Oct-18

24-Oct-18

7-Nov-18

21-Nov-18

5-Dec-18

19-Dec-18

2-Jan-19
Liquidity Tightening

16-Jan-19

30-Jan-19

13-Feb-19

27-Feb-19

13-Mar-19

27-Mar-19

10-Apr-19

24-Apr-19

8-May-19
11

22-May-19
 High Real Interest Rates

Real Rates

3.0
2.6 2.6 2.6 2.4
2.5
2.0
2.0
1.5
1.5 1.3
1.0 0.9
0.8
0.5
0.5 0.3
0.0
0.0

-0.5
-0.6
-1.0 -0.8
-1.0
-1.5 -1.3 -1.4
-2.0
BR IN RU ID SA MY SG KO TH TW US CH AU JP HK UK EU
12
Source: Credit Suisse; Real Rates = Repo – Inflation. Data as on 31st July 2019
 NPA Afflicted PSU Banks Required Treatment Under PCA
Guidelines – Restricting Credit Advances
PCA Banks Deposit Market Share And Credit Market Share

16
14.70
14.90 14.64
15
% of deposits % of Advances
14 14.62 14.65 14.14
14.33
13.43 13.46
13
12.53 12.47
12
11.36
11 11.07

10
10.30

9.21 9.43
9

8 7.95
7
6.63
6
2011 2012 2013 2014 2015 2016 2017 2018 2019

13
Source: Kotak Institutional Equities
 Overall Loan Growth Has Slowed Amid Liquidity Stress AT
NBFCs

Overall Loan Growth Has Slowed Amid Liquidity Stress AT NBFCs

Note: NBFI loan growth for fiscal 2019 is based on loan growth rates at 14 large NBFIs. 14
Sources: RBI, Moody’s Investors Service
India’s Trade Deficit With China Needs To Be Controlled

Trade Deficit with China (Bn $)

70

60
58
50
52
40
47
45

30
29
20

10 11

0 0
2001 2008 2012 2015 2016 2017 2018
Source: Elara Securities 15
Key Infrastructure Projects Moving Too Slowly

16
Policies Are Unpredictable

17
 Corporate Profit As A Percentage Of GDP Still Significantly
Below Average
Corporate Profit As A Share of GDP Is Lowest In More Than A Decade

• Cyclically low corporate profits have significant room to recover.

Source: CMIE, IIFL Research. Based on a standalone financials of more than 6500 companies for FY 18, whereas from FY 01 – FY 17 it ranged from 9,000 to 22,800 companies.PAT: Profit After Tax.
18
 Housing: Worsening Affordability

Flat Salaries Have Led To Worsening Affordability

Average Salary Income (Salary Income > Rs. 350,000)

Source: Income Tax Dept, IIFL Research; Note: Average salary of individuals who disclosed salary of more than Rs350,000/annum 19
Darkest Before Dawn

20
 India's Economic Growth Rate Is Still One Of The Highest In
The World Real GDP Growth

Note: For India, 2018 is the fiscal year ended March 2019. For other countries, it is the calendar year. Source: Moody's Investors Service 21
But Some Slowdown Is Intentional To Reboot Indian Economy

 Real Estate Cleanup – RERA

 Banking - IBC- NPA

 Inflation Control – High real interest rates &
Tight Liquidity
 GST & Demonitisation – Improved Tax
Compliance
But excessive focus to reboot has
hit risk taking/animal spirit of
economy

 Tight Fiscal Policy – Future generation don’t

gets impacted – Better Macro Stability

 Subsidy Leakages Plugged

22
 GST Collections In Jul’19 Expanded MoM And YoY

Source: PIB, JM Financial 23

In Trade War, India Is Only Asian Nation Growing Export Share

Trade Trouble Less Connected

India is the only major Asian economy whose share of Indian exporters depend less on China compared to
exports has grown amid the trade war Asian Peers

Source : Bloomberg , IMF 24

 The Current Slowdown May Not Be As Severe As In The Past

Note: All numbers linked to volumes for sectors *AC: Air conditioner **FMCG includes revenues of companies like HUL, Colgate-Palmolive, Marico, Britannia, Dabur and Godrej Consumer25
Products. Numbers in brackets next to name of segment represents average growth rate for that segment between 2007-08 to 2017-18. Source: CRISIL Research
The Way Forward

26
 Normalize Real Interest Rates

Real Interest Rates

5

4.5

3.5

2.5
2.6
2

1.5

0.5

0
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

27
Source: Bloomberg. As on 31st July 2019; Real Rate =Repo - CPI
 Give Additional Growth Capital To Public Sector Banks

PSU Banks Have Received Significant Capital Support In The Past 2 Years

28
Sources: Government of India, banks, Moody's Investors Service
Rainfall Seems To Have Gained Momentum In Jul’19

Source: IMD, Media Sites 29

 Oil Prices – Stable

$ per barrel
Crude Prices
90

85

80

75

70
64.13
65

60

55

50
45
November-18 January-19 March-19 May-19 July-19
Source: Bloomberg 30
Respect For Market Needs To Increase
Policies & Actions which negatively
affect Investor Sentiment
Levy of LTCG despite STT
Multiple Level of Taxation on
corporates
Minimum Public Shareholding
norm
Surcharge on FPIs
Higher Margins despite lower
volatility
Physical settlement of derivatives
from Cash Settlement
Impact
Increases the hurdle rate for investment
Income Tax, Dividend Distribution Tax, Tax on Dividend Income has resulted in capital
flight from India.
Increased supply of paper, especially in companies like MNC, large companies like TCS etc
may mean the capital flows will get absorbed to such entities rather being used in
repairing the economy
higher taxation on FPI operating as trusts, increase their hurdle rate for investment at a
time when more capital is required from them
Margins on Index futures were increased from 6.5% to 9.5% approx. from January 2019
even when the market volatility over this period has been relatively benign.
With liquidity in cash stock market being low and SLB market also relatively nascent,
giving delivery for cash settled stocks can become challenging for participants. This has
made participants cautious in the Futures and Options market
31
In Summary - Ideas For A Turnaround in Business
Environment
• Prioritize Growth over Fiscal Prudence & Inflation

• Access global capital for faster growth

• more than $13 trillion of debt globally, is in negative yield. we are at a most opportune moment to tap that
• Lower rates and adequate credit, Ensure policy predictability
• Cutting Interest rates proactively in large quantum is necessary to support revival of investment
• Provide budgetary allocation of Rs 70,000 cr to PSU banks at earliest
• Finalize Dr Bimal Jalan Committee Report to get additional Growth Capital for PSU Banks
• Launch a TARP equivalent for troubled NBFCs including equity infusion to take majority control and make the
management accountable like the US did

• Launch focused programs for troubled sectors such as Auto & Real Estate

• Make Indian Foreign Trade More Strategic

• We spent $22 billion for import of coal last year, despite having third largest coal reserves in the world - Remove
the constraints from the path of our entrepreneurs to mine coal and other natural resources
• Encourage global manufacturers to set up plants here with the lure of preferential access to domestic market on a
FX neutral basis
• Control Trade Deficit with China 32
Market Performance

33
 Market Snapshot

Dec-07 May-13 July-19 Dec-07 May-13 July-19

Macro Indicators 10-Yrear Govt Bond Yield

Capacity Utilisation (Dec 18) 91.7% 71.6% (Jun-13) 75.9% India 7.8% 7.2% 6.4%
Credit Growth (as on Jun 19) 22.0% 14.4% 12.0 % USA 4.0% 2.1% 2.0%
ROE Nifty 50 (Jun 19) 25.5% 17.1% (Mar-13) 12.4% Japan 1.5% 0.9% -0.2%
Net FII Flows (12M - Rs. Cr - July) 71,952 125,110 36,475 Europe 4.3% 1.5% -0.4%
IIP – May 19 13.5% 1.0% 3.1% China 4.5% 3.4% 3.2%
GDP Growth (Jan - Mar 19) 9.6% 6.4% 5.8%

Dec-07 May-13 July-19 Dec-07 May-13 July-19

Valuations Returns of Nifty 50 (CAGR)

Trailing P/E Nifty 50 27.6 18.0 27.42 Last 1 Yr Return 54.8% 21.6% -2.1%
Trailing P/B Nifty 50 6.4 3.2 3.45 Last 2 Yr Return 47.1% 3.8% 5.0%
Last 3 Yr Return 43.4% 5.6% 8.8%
34
Source: Axis Capital , Bloomberg,
 Performance Across Market Cap -
Midcaps and Smallcaps Still Down for last 12 months

15
10.3
8.8 9.1 8.0
10 7.6 6.9
5 2.5 1.8
0
In percent

(5) (2.1) (3.2)

(5.7)
(10)
(9.8) (10.9)
(15)
(15.7)
(20)

(25)
(26.0)
(30)
Nifty Nifty Midcap NSE Small Cap

1m returns 1y returns 3 yr CAGR 5 yr CAGR 10 yr CAGR

*As on 31 July 2019, Source: Axis Capital, Bloomberg, Past Performance may or may not sustain in the future 35
 Sectoral Indices Performance (%)

Sectoral Index 6M % 1Yr % 3Yr % 5Yr % Sectoral Index 6M % 1Yr % 3Yr % 5Yr %

S&P BSE CAPITAL GOODS 1.4 (4.0) 13.4 19.8 NSE Nifty Financial Services Index 10.9 9.0 62.1 100.3
BSE India Power Index 4.5 (0.5) (5.3) (7.8)
NSE Nifty IT Index 0.8 7.1 43.1 51.6
NSE Nifty Realty Index 17.0 (2.0) 29.0 10.5
S&P BSE CONSUMER DURABLES 5.1 6.9 80.1 161.1
NSE Nifty Commodities Index 0.1 (10.2) 11.3 11.6
NSE Nifty Services Sector Index 6.8 4.5 45.9 69.4
S&P BSE India Infrastructure Index (1.5) (11.8) 4.3 2.8
NSE Nifty Bank Index 5.8 4.0 52.4 89.1
S&P BSE India Manufacturing Index (3.2) (12.3) 7.1 24.8
NSE Nifty Private Bank Index 2.7 1.9 48.5 105.5
S&P BSE Basic Materials Index (1.6) (13.7) 15.6 24.5
NSE Nifty Energy Index (1.6) (3.9) 56.4 53.1
S&P BSE Consumer Discretionary Goods & Services
(7.4) Index
(22.6) 5.2 47.2
NSE Nifty FMCG Index (2.5) (6.3) 30.8 54.8
NSE Nifty Metal Index (11.2) (22.4) 6.8 (21.5)

S&P BSE Telecom Index (6.5) (23.3) (31.2) (36.4) S&P BSE Healthcare Index (8.5) (10.6) (22.1) 3.2

NSE Nifty Auto Index (16.6) (37.6) (27.7) (0.8) S&P BSE OIL & GAS (2.8) (11.9) 24.9 23.1

NSE Nifty Media Index (9.9) (30.9) (30.5) (3.3) NSE Nifty Pharma Index (9.5) (13.0) (31.7) (14.5)

Source: Bloomberg, As on 31 July 2019 36

 FII Turned Sellers In July’19

Trends in Monthly FII Flows ( Equity) – USD mn

6,000
5,000 4,768
4,000
2,922
3,000 2,152
2,039 2,057
2,000 1,422
868
1,000
208 332 149
0
(377) (278) (75)
(1,000)
(983)
(2,000) (1,427) (1,314)
(1,931) (1,721)
(3,000)
(4,000)
(3,752)
(5,000)
Jun-18

Jun-19
Aug-18
Feb-18

Sep-18

Feb-19
Oct-18

Jul-19
Apr-18
Mar-18

Jul-18

Dec-18

Mar-19
Jan-18

May-18

Jan-19
Nov-18

Apr-19

May-19
37
Source: Axis Capital, SEBI
Valuations

38
 Sensex In ‘Fair Value’ Range In P/B Terms

12-month Forward Sensex P/B (X)

39
Source: Axis Capital, Bloomberg
 India’s Market Cap to GDP (%)

103
95 A verage of 78% f or the period
88
83 85
81 80 76
71
69
64 66
55

2018
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2019
40
Source: Axis Capital, Bloomberg
 Sensex in ‘Fair Value Plus’ Range In P/E

12-month Forward Sensex P/E (X)

48000
45000
Stretched 20x - 24x

42000
39000 Fair Value Plus 17x - 20x
36000
33000
Fair 13x - 17x
30000
27000
24000 Attractive 10x - 13x
21000
18000 Cheap 8x - 10x
15000
12000
Jun-17

Jun-18

Jun-19
Aug-17
Aug-16
Aug-16

Feb-17

Sep-17

Feb-18

Aug-18
Sep-18

Feb-19
Oct-16

Dec-16

Oct-17

Dec-17

Oct-18

Dec-18
Jan-17

Mar-17

May-17

Jul-17

Jan-18

Mar-18

May-18

Jul-18

Jan-19

Mar-19

May-19

Jul-19
Nov-16

Nov-17

Nov-18
Apr-17

Apr-18

Apr-19
41
Source: Axis Capital
Why Mid Caps & Small Caps
Now?

42
 Nifty At Lifetime High Levels But Mid & Small Caps Continue
To Fall Since January 2018
Return (%) Nifty Index TRI
Index Name (Jan 2018 to July 2019)
8.1 Nifty Midcap 100 TRI
130 Nifty 50 TRI
Nifty Midcap 100 TRI -23.3 Nifty Small Cap 100 TRI
Nifty Smallcap 100 TRI -38.1

110
108
Rebased to 100

90

77
70

62
50
31-Mar-18

31-Mar-19
31-Dec-17

28-Feb-18

30-Jun-18

31-Aug-18

30-Sep-18

31-Dec-18

28-Feb-19

30-Jun-19
31-May-19
31-Jan-18

31-Jul-18

31-Oct-18

31-Jan-19

31-Jul-19
30-Apr-18

31-May-18

30-Nov-18

30-Apr-19
Past performance may or may not be sustained in future.
Source: Capital Line and Internal Analysis 43
Within Nifty 50 Too Only A Few Are Driving It

Nifty-50 (TRI) Top-15 Stock (Re-based) Next-35 Stock (Re-based)

19,500
Top 15 stocks delivered return of 26%
18,000
17,760

16,500
Index delivered 8% return 15,217
15,000

13,500 14,072 Next 35 stocks delivered negative return of 20%

12,000
11,326
10,500
Feb-18

Sep-18

Feb-19
Jun-18

Jun-19
Aug-18

Oct-18

July-19
Dec-17

Mar-18

Jul-18

Dec-18

Mar-19
Nov-18
Jan-18

Apr-18

May-18

Jan-19

Apr-19

May-19
Past performance may or may not be sustained in future.

Source: Motilal Oswal & internal analysis 44

 Extreme Divergence In Large, Mid & Small Companies In Terms
Of Fall
Sharp fall in Mid Caps & Small Caps

Market Cap in Lakh Crores

Companies
(Arranged as per M'cap) 31/01/2018 01/04/2018 17/06/2019 31/07/2019 Change
0 - 25 61 57 70 67 9.9%
26 - 50 20 20 19 19 -7.1%
51 - 100 22 20 19 18 -17.1%
101 - 250 25 24 22 22 -12.3%
251 - 500 14 13 10 10 -29.0%
501 - 1350 8.4 7.3 4.5 4 -47.6%

Past performance may or may not be sustained in future.

Source: Elara Se and Internal Analysis 45
 Small And Mid Cap Still Down From Peaks Despite Recent
Pullback

% of Top Median Correction from 52 Week High by Market Cap

No. of
Drawdown from 52 Week High 1000 Top 10 -8%
Stocks
stocks 10 to 100 -20%
100 to 500 -30%
Less than 10%
74 7% 500 to 1000 -43%
Overall : Top 1000 -20%
Between 10% and 20%
156 16%
Drawdown from 52 Week High
Between 20% and 30%
167 17%
Nifty 50 -8.1%
Between 30% and 50%
378 38% Nifty Midcap 100 -20.7%

More than 50% Nifty Smallcap 100 -28.7%

224 22%

46
Source: Axis Capital, Bloomberg, As on 31 July 2019
Divergence Between NIFTY 50, Nifty Midcap 100 & Nifty
Smallcap 100 Is Also At Historical Extreme

Rolling 1-yr return difference between NIFTY Midcap 100 Rolling 1-yr return difference between NIFTY Smallcap 100 and
and NIFTY 50 NIFTY 50
55% 55%

45% 45%

35%
35%
Average: 3% 25% Average: 1%
25%
15%
15%
5%
5%
-5%
-5% -15% -24%
(12%)
-15% (17%) (16%) (15%) -25%
(18%) -24%
-25%(24%) (21%) -35% -34% -35%

-35% -45%

Aug-06

Aug-07

Aug-08

Aug-09

Aug-10

Aug-11

Aug-12

Aug-13

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18

Aug-19
Aug-06

Aug-07

Aug-08

Aug-09

Aug-10

Aug-11

Aug-12

Aug-13

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18

Aug-19

Past performance may or may not be sustained in future.

Source : Goldman Sachs and internal Analysis 47

 Midcap Stocks Market Cap At 5 Year Low

Nifty Midcap-100 (INR t) 33% correction

from peak
21.9

16.7 17.0 16.7

15.9
14.6

11.0
9.0
8.2
6.5 6.7 6.9

3.6
2.8 2.8

Dec-11

Dec-18
Dec-05

Dec-06

Dec-07

Dec-08

Dec-09

Dec-10

Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-17

July-19
Source: Motilal Oswal and Internal Analysis 48
 Nifty Midcaps Relative Valuations Vs Nifty 50 Has Corrected
Back To 2014 Lows
(7 DMA)
1.60 Midcaps Relative Valuations V/S Nifty
1.50
Nifty Midcap 12m forward PE Relative to Nifty 12m forward PE
1.40

1.30 *2014 lows – Beginning of

the midcap bull market
1.20
Average
1.10

1.00

0.90
Midcap relative valuation v/s Nifty back to 2014 zone when this leg of midcap bull
run had begun
0.80
Jan-14 Jul-14 Feb-15 Sep-15 Mar-16 Oct-16 Apr-17 Nov-17 May-18 Dec-18 Jul-19

49
Source : Elara Securities Ltd
 Nifty Smallcaps Relative Valuations Vs Nifty 50 Has Also
Corrected Back To 2014 Lows...
(7 DMA)
2.50

2.30 Smallcaps Relative Valuations V/S Nifty

2.10

1.90

1.70
Nifty Smallcap 12 month forward PE relative to Nifty 12 month forward PE
1.50

1.30

1.10
Average
0.90

0.70
Smallcap relative valuation v/s Nifty - Back to 2014 & 2016 zone which is a strong support
0.50
Jan-14 Jul-14 Feb-15 Sep-15 Mar-16 Oct-16 Apr-17 Nov-17 May-18 Dec-18 Jul-19

Source : Elara Securities Ltd 50

Improving Liquidity & Reducing Interest Rates Have Helped
Midcaps In The Past
India Banking Liquidity (INR bn) NSE Midcap Index
6,000

5,000

4,000

3,000

2,000

1,000

-1,000
Liquidity hits low in Mar'16 &
-2,000 started improving from there System liquidity has
resulting in a recovery started improving sharply
in the midcap index
-3,000 6,000
Jan/13

Jan/14

Jan/15

Jan/16

Jan/17

Jan/18

Jan/19
Jul/13

Jul/14

Jul/15

Jul/16

Jul/17

Jul/18

Jul/19
Source : Elara Securities Ltd 51
Dawn After Dusk In Mid & Small Cap In The Past

Mid-Cap returns Small-Cap returns

Next 1- Next 3-Year Next 1- Next 3-Year

Years Return Year CAGR Years Return Year CAGR

2001 -30% 24% 55% 2001 N/A N/A N/A

2008 -59% 99% 18% 2008 -71% 107% 17%

2011 -31% 39% 27% 2011 -34% 37% 25%

2018 -18% ? ? 2018 -32% ? ?

Past performance may or may not be sustained in future.

Mid & Small caps poised to take off ?

Source : Capital Line and Internal Analysis 52
 Kotak Balanced Advantage Fund – Asset Allocation
Nifty
KBAF – It’s Automatic
14000 90.0

80.0
12000
70.0
10000
60.0
8000 50.0

6000 40.0

30.0
4000
Nifty 20.0
2000 KBAF Net Equity -Model
10.0
KBAF Net Equity -Actual
0 -
Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

Jan-15

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19
Source: Internal Calculations. As on 31st July 2019. The in-house valuation model starts from 4th Jan 2010 to 30th Aug 2018. From 31st August 2018 till date, actual net equity allocation is shown. Past Performance
is not a guarantee for future return. Mutual fund investments are subject to market risks, read all scheme related documents carefully 53
 Key Recommendations

Key theme Remarks

Dynamic Equity Allocation – Freedom from managing equity debt allocation manually Kotak Balance Advantage Fund (KBAF)
Large Cap – play on buying sectoral leaders that benefit from improving investment Kotak Bluechip Fund
climate (Erstwhile Kotak 50)
Kotak India EQ Contra Fund
Balance of IQ and EQ
(Erstwhile Kotak Classic Equity)
Kotak Standard Multicap Fund
Multicap
Diversified/Multicap – focus on sectors that are likely to (Erstwhile Kotak Select Focus)
benefit the most across market cap Kotak Equity Opportunities Fund
Large and Midcap
(Erstwhile Kotak Opportunities Fund)
Infrastructure revival – “True-to-label” fund – recent thrust of government to revive
Kotak Infrastructure & Economic Reforms Fund
the infrastructure theme
Through SIP in Midcap oriented scheme Kotak Emerging Equities Fund
ELSS – Equity allocation with ability to reduce tax outgo Kotak Tax Saver Fund
Opportunities in smallcap segment Kotak Smallcap Fund
Kotak Equity Hybrid Fund
Balanced – benefit from equity & debt allocation
(Erstwhile Kotak Balanced Fund)
We recommend investors to invest through SIP with a 5 years horizon. 54
Debt Market Outlook
August 2019

55
 10 Year Gilt - Sharp Rally In Bond Market

7.00
Bond Market cheered Union
6.90 6.88
Budget - Fiscal deficit target
was stated at 3.3% of the
6.80
GDP, against 3.4% mentioned
6.70 in the interim budget

6.60 Media news reports suggest

PMO not comfortable with US Fed rate
6.50 sovereign bond proposal cut by 25bps
6.40
No rethink on sovereign
6.30 6.35
bond issue: FM
6.20
13-Jul-19
10-Jul-19
11-Jul-19
12-Jul-19

14-Jul-19
15-Jul-19
16-Jul-19
17-Jul-19
18-Jul-19
19-Jul-19
20-Jul-19
21-Jul-19
22-Jul-19
23-Jul-19
24-Jul-19
25-Jul-19
26-Jul-19
27-Jul-19
28-Jul-19
29-Jul-19
30-Jul-19
31-Jul-19
1-Jul-19
2-Jul-19
3-Jul-19
4-Jul-19
5-Jul-19
6-Jul-19
7-Jul-19
8-Jul-19
9-Jul-19

2-Aug-19
1-Aug-19
56
Source: Bloomberg,
 Inflation Inches Up, However Core & Headline Converges
Further
12.0%

10.0% CPI Core CPI

8.0%

6.0%
4.09%
4.0%

2.0% 3.20%
0.0%
Jun-13

Jun-14

Jun-15

Jun-16

Jun-17

Jun-18

Jun-19
Aug-13

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18
Oct-18
Feb-13

Oct-13

Feb-14

Oct-14

Feb-15

Oct-15

Feb-16

Oct-16

Feb-17

Oct-17

Feb-18

Feb-19
Dec-13

Dec-14

Apr-15

Dec-15

Dec-16

Dec-17

Dec-18
Apr-13

Apr-14

Apr-16

Apr-17

Apr-18

Apr-19
• The CPI inflation rose to 3.20% in June 2019, compared with 3.05% in May 2019
• The core CPI inflation eased to 4.09% in June 2019, compared with 4.37% in May 2019
• CPI food inflation rose to 2.37% in June 2019, compared with 2.03% in May 2019
• The urban inflation eased to 4.3% in June 2019 from 4.5% in May 2019
• The rural inflation rose to 2.2% in June 2019 from 1.87% in May 2019
57
Source:
Source: MOSPI, ICRA
Bloomberg
 Current Account Deficit Appears To Be In A Comfort Zone

Trend in Current Account Deficit & Trade Deficit (% of GDP)

58
Source: CEIC, Morgan Stanley Research
 Fiscal Situation – Govt Walks the Tight Rope

Consolidated Fiscal Deficit of Center & States, March Fiscal Year-ends, 2000-20E (%)

59
Source: Ministry of Finance, Kotak Institutional Equities estimates
 Global Bond Yields Have Fallen Significantly As Dovish Wave
Grips Global Policy Rates
UK 10 Year Gilt (%) US 10 Year Gilt (%)
1.90
1.70 3.10
2.90
1.50
2.70
1.30
2.50
1.10 2.30
0.90 2.10 1.85
0.70 1.90
0.50 0.55 1.70

Nov-18
Nov-18

Jul-19
Apr-19
Jan-19
Jul-18
Jul-18

Sep-18
Sep-18

Jan-19

Feb-19

Apr-19
Mar-19
Aug-18

Dec-18

May-19
Oct-18

Jun-19
Jun-19
Jan-19
Nov-18

Apr-19
Jul-18

Aug-18

Sep-18

Feb-19

Mar-19

Jul-19
Jun-18

Oct-18

Dec-18

May-19

Jun-19
Japan 10 Year Gilt (%) Germany 10 Year Gilt (%)
0.15 0.55
0.10 0.35
0.05
0.15
0.00
-0.05 -0.05
-0.10 -0.25
-0.15
-0.16 -0.45
-0.20 -0.45

Dec-18

Jul-19
Jan-19
Jul-18

Nov-18

Apr-19
Sep-18

Feb-19

Mar-19
Aug-18

Jun-19
May-19
Oct-18
May-19
Nov-18
Sep-18

Feb-19
Jul-18

Jan-19

Apr-19

Jul-19
Mar-19
Aug-18

Dec-18
Oct-18

Jun-19

60
Source: Bloomberg. Data as on 2nd Aug 2019
Slow Growth overtakes Inflation, RBI May Seek More Rate Cuts
Policy Rates Likely To Get Cut By 50-75bps in FY20

Trend in CPI & Repo Rate

56
61
Source: CLSA, MOSPI, RBI
 FII Debt Flows- FIIs Have Started Adding Duration

3,000
Trend In Monthly FII Flows (Debt) – USD mn

2,213

1,470
1,500 1,199 1,102
889
665 828
559 537

(421) (367)
(846)
(1,500) (1,123) (1,158)
(1,285)
(1,546) (1,461)
(1,785)

(3,000) (2,629)

Dec-18
Jan-18

Jun-18

Jan-19

Jun-19
Feb-18

Aug-18

Sep-18

Feb-19
Oct-18
Mar-18

Jul-18

Mar-19

Jul-19
Nov-18
Apr-18

May-18

Apr-19

May-19
Source: Axis Capital, SEBI 62
 India Plans To Raise As Much As $10 Billion From Overseas
Sovereign Bond Issue

India's Foreign Currency Sovereign Debt is Low

50
45.9 46
45
41
40
Sovereign Foreign Currency Debt % Total
37.1 Likely Near-Term Benefits from Raising
35 Foreign Currency Sovereign Debt with
30
24  Ease the pressure in supply of bonds
25 23
leading to lower interest rates
20

15
 Reduce the crowding out effect –
11.4 increase availability of funds for the
10
5.1 private sector
5 2.2 3.3
0.4
0
China

Malaysia

India

Brazil

South Africa

Mexico

Russia

Philippines

Indonesia

Saudi Arabia

Qatar
63
Source: Moodys, Bloomberg, Treasury, Central Banks, Morgan Stanley Research
Focus On Better Monetary
Transmission

64
 Declining Repo Rates Yet To Reflect in the Lending Market
Rates

Steady Deposit Rates, Despite Fall in Repo Rates Yield on Advances Has Increased In Recent Months
Weighted Average Term Deposit Rates for SCBs, PSU Banks, Yield on advances for SBI vs WALR for SCBs, PSU & Private
Private Banks & Foreign Banks Sector Banks

65
Source: RBI, Kotak Institutional Equities
 Liquidity In Surplus
Total Liquidity in INR bn

2,000.00
System Borrowing 1551.02
1,500.00

1,000.00

500.00

(500.00)

(1,000.00)

(1,500.00)

(2,000.00)
Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19

• The RBI is committed towards maintaining the liquidity around the neutral zone. However now we are in huge surplus and that is
likely to stay in the near future.
• Durable Liquidity Surplus is ~Rs. 90,000Cr
Source: RBI; Data as on 1st August 2019 66
 10%
12%
14%
16%

0%
2%
4%
6%
8%
Jun-17

Source: CLSA, IIFL

Jul-17

Aug-17

Sep-17

Oct-17

Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18
Credit Growth (% YOY)

Jun-18

Jul-18

Aug-18

Sep-18
Sluggish Credit Offtake Needs More Policy Support

Oct-18
Deposit Growth (% YOY)

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19
67

Jul-19
10%
12%
Major Credit Stress Behind Us

68
 Credit Stress In The System Weighing Down Corporate
Balance Sheet Strength – Ratio May Improve Going Ahead

Credit Ratio of Rating Upgrades to Downgrades (CRISIL)

Source: Crisil Research, Company Data, Morgan Stanley India Banks Research Team, Morgan Stanley Research. For more details on sector wise impaired loan ratio, please refer to RBI's
Financial Stability Report. ^ For all banks as per RBI. 69
Policy Reforms To Act As Catalyst To NBFC Lending
Govt. Looking To Resolve NBFC Crisis And Provide Liquidity To Them

Key Budget Remarks on NBFC Impact Result

To provide a one time six month partial credit

guarantee to public sector banks for first loss of
With this measure the liquidity available to NBFC
up to ten percent on high-rated pooled assets of Positive
is likely to increase
financially sound NBFCs, amounting to total of Rs
1 lakh crore.

The requirement of creating a Debenture This may enable NBFCs to raise debentures
Redemption Reserve (DRR), currently applicable Positive through pubic issues without requirement of
for public issues, will be done away with. maintaining DRR

Following announcement in Central Budget of Central Govt. partial credit guarantee to public sector bank for pools of
NBFCs, the Reserve Bank of India announced that it will provide required liquidity to banks against their excess G-sec
holdings.

Additional Liquidity of ~Rs. 1,34,000crs available to banks for incremental credit to NBFC/HFCs since RBI has decided to
frontload the Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR)
Source: Union Budget FY20 Documents 70
 Debt Outlook

• The head line and core inflation are converging and core is moving towards 4%. This may bring much desired comfort to the RBI.
• Correction in Brent crude oil to ~US$60-62 per barrel may further provide comfort to RBI .
• The latest comments from the RBI governor suggest that central bank is focusing on growth which indicates low interest rate environment
going ahead
• Liquidity is in huge surplus mode but market is yet to price this new phase. Positive liquidity is a more important tool than repo rate cut.
Thus OMO and FX swap shall take back stage.
• As expected the Fed has started the easing cycle with 25 bp rate cut. However on the face of it, cycle appears to be shallow which is against
the expectation of the market.
• We expect at least 50-75 bps cut in the policy rates in FY 20. Market may still be in denial mode which gives a window of opportunity for
the long term investors
• Bimal Jalan committee report will be the key event to watch. If the report indeed suggests a large number to be transferred from RBI
Excess reserves to the Government, then this will be a positive for the markets. However different scenarios of transfer of excess reserves
will have different impact across the curve, depending on how it will be used. As a caveat: the report getting delayed and any bad news
may be negative for near term.
• In a nut shell key driver for returns will be corporate spread compression. It will start with AAA/PSU followed by NBFC/HFC like Bajaj/HDFC
and then it may percolate to lower grade NBFC and other corporate bonds.
• We believe that the investment opportunity in short duration bond funds, banking and PSU funds, credit funds and dynamically managed
duration funds is still present. Investors may look to invest in the funds depending on the scale of risk appetite and the investment71horizon.
Investment Opportunity

72
 Widening Of Credit Spreads Provides Investment
Opportunity
10 Year Corporate Bond Yield Spread Over 10 Year Gilt

Despite liquidity surplus the spread continues to widen which means the market is yet to believe liquidity is here to stay.
Therefore wide spreads is providing an investment opportunity
73
Source: RBI, Bloomberg, Morgan Stanley Research
 Duration/Dynamic Management – Kotak Dynamic Bond Fund

K-Dynamic Bond Fund 10 Year Gilt

Modified Duration (Years) Duration/Dynamic Management – Kotak Dynamic Bond Fund
5 8.2
8
4.5
7.8
10 Year Gilt
7.6
4
7.4
3.5 7.2
7
3
6.8
6.6
2.5 K-Dynamic Bond Fund Modified
Duration (Years) (LHS) 6.4
2 6.2
Dec-17

Dec-18
Jan-18

Jun-18

Jan-19

Jun-19
Aug-17

Sep-17

Feb-18

Aug-18

Sep-18

Feb-19
Oct-18
Oct-17
Jul-17

Mar-18

Jul-18

Mar-19

Jul-19
Nov-17

Nov-18
Apr-18

May-18

Apr-19

May-19
Kotak Dynamic Bond fund makes an active decision on duration and high quality credit allocation depending on
the risk return trade off
74
Source: Internal. Past performance may or may not be sustained in the future
Kotak Dynamic Bond Fund Has Outperformed Over Long-Term

10
3-Year Daily Rolling Return since Jan’18
9

Kotak Dynamic Bond Fund - Reg - Growth

5
NIFTY Composite Debt Index**

4
Jan-18

Jan-18

Feb-18

Mar-18

Mar-18

Apr-18

May-18

May-18

Jun-18

Jul-18

Jul-18

Aug-18

Sep-18

Oct-18

Oct-18

Nov-18

Dec-18

Dec-18

Jan-19

Feb-19

Feb-19

Mar-19

Apr-19

Apr-19

May-19

Jun-19

Jul-19

Jul-19
 Credit funds carry credit risk and duration/ dynamic funds carry interest rate risk
 Hence our advice to IFA/ distributors is that they allocate clients money in both dynamic and accrual funds
from a 3 year perspective
Source: ICRA. Past Performance is not a guarantee for future return. Mutual fund investments are subject to market risks, read all scheme related documents carefully. 75
YTM At Elevated Levels Despite Better Rating Profile Now

50 Kotak Credit Risk Fund 11

High Quality Asset As Percentage of Portfolio (LHS)

45 43.89
High Quality (LHS) YTM (RHS)
10.5
40
9.32
35 10

30

YTM
9.5
25

20 9

15
8.5
10

5 8
Mar-18

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19

Jul-19
Source: Internal Research; High Quality – Sov, AAA,AA & Cash 76
Story in Accruals

Case for Investment in Credit Funds

 Pricing of credit papers is attractive due to higher yield to maturity (YTM) over AAA
 The recent credit crisis has been a good learning for us. We have internally decided to reduce concentration risk
across all our schemes.
 Various steps taken / announcement made by GoI / RBI may help to ease out the liquidity conditions
 Leverage at promoter level is reducing with various promoter group has sold stake in the companies to pare debt
(Zee, Emami, Bajaj Corp.)
 With the widening of spreads, we believe that it is right time to invest in credit funds with three years perspective

 Accrual funds like Kotak Credit Risk Fund / Kotak Medium Term provide retail investors the potential to obtain
high yields in the present condition.

77
Some Myths & Behavioral Anomalies That Hurt Accrual Fund
Investors

Myths Truths

Credit Funds Are Risky Even Deposits are Risky. Credit Funds only better utilize the
credit spectrum for gains while taking steps to mitigate risk

LAS are Risky LAS reduces risk and infact provides an early liquidity window
before a credit event. Even in cases such as Satyam, LAS helped
reduce and recover the loss

Payment Delay is Default It means a cash-flow issue. Payment is still an obligation of the
borrower, which usually gets settled sooner or later

Reduce exposure to Credit Fund at times Loss from Exit load and STCG is usually higher than risk of default.
of market upheaval Increasing time horizon helps in recovering loss

• Credit Fund is investible due to the Portfolio and the Strategy they Build.
• Much Like using Sehwag for Test and Dravid for IPL. Both will play and perform but the style they add is different 78
Portfolio Rating Allocation Across Kotak MF Debt

100

90
88.45

80

70

60

50

40

30

20

10 4.5 4.79
2.21
0
Sov, AAA, A1+, Rev Repo AA+ AA AA- & Below

Source: Internal Research; As on 31st July 2019 79

Key Recommendations

Segment Scheme Rationale

Accrual Kotak Credit Risk Fund (Erstwhile Kotak Income Opportunities Fund) / Investment for higher
Play Kotak Medium Term Fund accrual

Investment for asset

Asset Allocation Kotak Debt Hybrid
allocation

Kotak Savings Fund (Erstwhile Kotak Treasury Advantage Fund) / Kotak Low
Parking of surplus
Duration Fund /
cash
Short Term Parking of Kotak Corporate Bond Fund
Funds
Kotak Equity Arbitrage Fund Higher post tax return

Kotak Bond Investment for longer

(Erstwhile Kotak Mahindra Bond Unit Scheme 99) maturities
Duration Play
Investment for shorter
Kotak Bond Short Term
maturities
80
81
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ANNEXURES

86
Key Variables & Their Impact On Equities

Short - Medium –
Key Variables Remarks
term term
Economy GST to aid formalization of economy and longer term growth

Strong medium term earning growth trajectory, as previous cycle of NPA

Corporate Earnings ends and capacity utilization improves.

India stands out among global asset classes with prospects of strong
FII Flow long term growth

DII Flow Long runaway of growth in financialization of savings

Higher disinvestment target and repair of leveraged balance sheet to

Supply of paper create supply in markets

Policy/Reform Initiative Now that elections are over, expect improved reform momentum

Signify Growth 87
Key Variables & Their Impact On Interest Rates
Short Term Medium Term
Key Variables Remarks –( Denotes fall in Interest Rates
(3-6mo) (6mo-2yrs)
Inflation expected to remain benign over near & medium term. Thus, impact on interest rates is
Inflation
likely to be positive.
Rupee expected to remain range bound in the near term. It may gradually tend towards a relatively
Rupee low depreciation - that will affect the interest rates positively.

Credit growth has slowed down significantly we expect RBI to cut rates to spur credit demand as
Credit Demand economy is weak and may need monetary stimulus before demand picks up.

Govt. indicated that they will tap overseas markets by issuance of sovereign dollar bonds in 2 nd half
Government Borrowing of the year (upto 10 bn dollars). This was taken as a positive and 10 yr yield came off sharply.
However there is some uncertainty around this which is causing the volatilty.

RBI Policy RBI is expected to cut rates and be dovish and thus will remain positive for short term rates .

As expected the Fed has started the easing cycle with 25 bp rate cut however on the face of it, cycle
Global Event Risk appears to be shallow which is against the expectation of the market. Over and above this, the
impact of trade wars on the crude and the volatility in crude will keep adding to market volatility.
Spreads are already wide. With liquidity in positive mode we expect that gradually liquidity will start
chasing yields. This will have a positive impact on interest rates. Should there be a bigger cut in
Corporate bond Spread
rates, we may see contraction of spreads sooner than later. It may start with AAA/PSU and gradually
will percolate to sub AAA and credits markets over 9-12mths.
Govt has decided to issue dollar bonds. The zero-to-negative sovereign yields in the developed
Debt FII flow economies, stable political and macro environment will lead to global debt flow in India. Starting
from sovereign to corporate bonds, it will have a positive impact on rates.
Liquidity has turned positive and banking system is expected to remain in surplus zone in the near
Liquidity 88
term. It is therefore likely to have a positive impact on Interest rates
Disclaimers & Disclosures

89
 Disclaimers & Risk Factors

The information contained in this (document) is extracted from different public sources. All reasonable care has been taken to ensure that the information contained herein
is not misleading or untrue at the time of publication. This is for the information of the person to whom it is provided without any liability whatsoever on the part of Kotak
Mahindra Asset Management Co Ltd or any associated companies or any employee thereof.We are not soliciting any action based on this material and is for general
information only. Investors should consult their financial advisors if in doubt about whether the product is suitable for them before investing

These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. The
distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are
required to inform themselves about, and to observe, any such restrictions

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

90
Performance As on 31st July 2019

Kotak Dynamic Bond Fund

Kotak Dynamic Bond NIFTY Composite Kotak Dynamic Bond NIFTY Composite
May 26, 2008 Fund - Growth Debt Index ALPHA CRISIL 1 Year TBill Fund - Growth Debt Index CRISIL 1 Year TBill
Since Inception 8.74% 8.47% 0.28% 6.57% 25,543 24,827 20,369
Last 1 Year 13.49% 12.84% 0.65% 8.24% 11,349 11,284 10,824
Last 3 Years 8.89% 7.73% 1.17% 6.77% 12,918 12,507 12,178
Last 5 Years 9.43% 9.08% 0.35% 7.31% 15,697 15,447 14,231
Scheme Inception date is 26/05/2008. Mr. Deepak Agrawal has been managing the fund since 25/11/2012.
Different plans have different expense structure. The performance details provided herein are of regular plan
^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns >= 1 year: CAGR
(Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFI
Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark

Kotak Credit Risk Fund

CRISIL Composite AA CRISIL Composite AA
Kotak Credit Risk Short Term Bond Kotak Credit Risk Short Term Bond
May 11, 2010 Fund - Growth Index ALPHA CRISIL 1 Year TBill Fund - Growth Index CRISIL 1 Year TBill
Since Inception 8.33% 8.95% -0.62% 6.85% 20,922 22,061 18,431
Last 1 Year 7.83% 8.78% -0.96% 8.24% 10,783 10,878 10,824
Last 3 Years 7.37% 8.24% -0.87% 6.77% 12,382 12,687 12,178
Last 5 Years 8.38% 8.92% -0.53% 7.31% 14,959 15,330 14,231
Scheme Inception date is 11/05/2010. Mr. Deepak Agrawal has been managing the fund since 12/04/2010.
Different plans have different expense structure. The performance details provided herein are of regular plan
^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns >= 1 year: CAGR (Compounded Annualised Growth
Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional
Benchmark.
91
 Funds Managed By Mr. Deepak Agrawal – As on 31st July 2019

Mr. Deepak Agrawal manages 12 & All FMPs funds of Kotak Mahindra Mutual Fund.
1 YEAR 3 YEARS 5 YEARS Since Inception
Benchmark Benchmark Benchmark Benchmark
Scheme Names
Scheme Returns Scheme Returns Scheme Returns Scheme Returns
Returns(%)^ (%)^* Returns(%)^ (%)^* Returns(%)^ (%)^* Returns(%)^ (%)^*
Kotak Banking and PSU Debt Fund -
11.00 10.55 8.10 8.22 8.45 9.08 7.47 NA
Growth
Top 3
Kotak Bond Short Term Plan - Growth 9.50 9.32 7.24 7.51 8.01 8.20 7.71 7.90
Kotak Corporate Bond Fund - Growth 9.32 9.55 8.05 7.70 9.24 9.04 8.21 9.40
Kotak Low Duration Fund - Growth 7.89 8.39 7.59 7.46 8.37 8.00 7.73 8.52
Bottom 3 Kotak Liquid - Growth 7.29 7.31 7.02 6.93 7.56 7.44 7.43 7.45
Kotak Medium Term Fund - Growth 5.75 10.54 6.53 7.42 8.12 8.63 8.41 8.86

Kotak Banking and PSU Debt Fund - Growth, *Name of the Benchmark - CRISIL Banking and PSU Debt Index, Scheme Inception date is 29/12/1998. Mr. Deepak Agrawal has been managing the
fund since 01/08/2008.
Kotak Bond Short Term Plan - Growth, *Name of the Benchmark - NIFTY Short Duration Debt Index, Scheme Inception date is 02/05/2002. Mr. Deepak Agrawal has been managing the fund
since 11/07/2007.
Kotak Corporate Bond Fund - Growth, *Name of the Benchmark - CRISIL Corporate Bond Composite Index, Scheme Inception date is 21/09/2007. Mr. Deepak Agrawal has been managing the
fund since 01/02/2015.
Kotak Low Duration Fund - Growth, *Name of the Benchmark - NIFTY Low Duration Debt Index, Scheme Inception date is 06/03/2008. Mr. Deepak Agrawal has been managing the fund since
01/02/2015.
Kotak Liquid - Regular Plan - Growth, *Name of the Benchmark - NIFTY Liquid Index, Scheme Inception date is 04/11/2003. Mr. Deepak Agrawal has been managing the fund since 01/05/2007.
Kotak Medium Term Fund - Regular Plan - Growth, *Name of the Benchmark - NIFTY Medium Duration Debt Index, Scheme Inception date is 21/03/2014. Mr. Deepak Agrawal has been
managing the fund since 22/06/2015.

92
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*Investors should
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 Product Labeling

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