GEMGAZE

February 2018

All the GEMs from the 2017 GEMGAZE have performed reasonably well through thick and thin and figure prominently in the 2018 GEMGAZE too. 

FT India Life Stage Fund of Funds Gem

Franklin Templeton AMC offers five plans based on life stages that will suit your age profile – FT India Life Stage FoF 20s, FT India Life Stage FoF 30s, FT India Life Stage FoF 40s, FT India Life Stage FoF 50s Plus, and FT India Life Stage FoF 50s Floating Rate. The first four plans were launched in November 2003 and the last plan was launched in July 2004. All these are plans of a single fund that has assets of around Rs 72 crore. The AUM of each plan is Rs 14 crore, Rs 7 crore, Rs 14 crore, Rs7  crore, and Rs 30 crore respectively. The top three sectors in the portfolio are finance, energy, and automobile. The allocation to equity tapers from 80% in the first plan to a measly 20% in the last plan. The one-year returns of the plans are 15.27%, 12.08%, 9.94%, 9.09%, and 8.42% respectively, while the expense ratio for the plans is 1.17%, 1.81%, 2.03%, 2.05%, and 0.79% respectively. The benchmark indices are S&P BSE Sensex (65) CRISIL Composite Bond (20) Nifty (15), S&P BSE Sensex (45) CRISIL Composite Bond (45) Nifty (10), CRISIL Composite Bond (65) S&P BSE Sensex (25) Nifty (10), CRISIL Composite Bond (80) S&P BSE Sensex (20) and CRISIL Liquid (80) S&P BSE Sensex (20) respectively. The fund managers are Anand Radhakrishnan, Pallab Roy and Sachin-Padwal Desai since January 2013.

ICICI Prudential Advisor Series – Dynamic Accrual Plan Gem

ICICI Prudential Advisor Series – Dynamic Accrual Plan was launched in December 2003 as ICICI Prudential Advisor–Very Cautious as part of a five-plan Fund of Funds series: ICICI Prudential Advisor–Very Aggressive, ICICI Prudential Advisor–Aggressive (ICICI Prudential Advisor Series – Long Term Savings Plan w.e.f. December 6, 2013), ICICI Prudential Advisor–Moderate, ICICI Prudential Advisor–Cautious, and ICICI Prudential Advisor–Very Cautious (ICICI Prudential Advisor Series – Dynamic Accrual Plan w.e.f. June 17, 2015). The AUM of the Dynamic Accrual Plan is Rs 288 crores. The scheme aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through investments made primarily in the schemes of Prudential ICICI Mutual Fund having asset allocation to money market and debt securities. The top two holdings are ICICI Prudential Savings Fund and ICICI Prudential Short-term Fund. The one-year return of the plan is 6.9% as against the category average of 5.34%. The expense ratio of the fund is 0.94%. The fund is benchmarked against the CRISIL Composite Bond (70) and CRISIL Liquid (30). The fund has been managed by Mr. Manish Banthia since June 2017.

Birla Sunlife Active Debt Multi-manager FoF Scheme Gem

Birla Sunlife Active Debt Multi-manager FoF Scheme, which sports an AUM of Rs.74 crores, is an open-ended fund of funds launched in December 2006. The scheme seeks to generate returns from a portfolio of pure debt-oriented funds accessed through the diverse investment styles of underlying schemes selected in accordance with the Birla Sunlife AMC process. The top five holdings are Aditya Birla Sunlife Medium Term Fund, SBI Dynamic Bond Fund, Franklin India Short-term Income Retail Plan, IDFC Dynamic Bond Fund and Aditya Birla Sunlife Dynamic Bond Fund. The one-year return of the fund is 3.42% as against the category average of 5.34%. The expense ratio of the fund is 1.11%. The fund is benchmarked against CRISIL Composite Bond Index. The fund has been managed by Mr. Shravan Kumar Sreenivasula since December 2014.

 

FT India Dynamic PE Ratio Fund of Funds Gem

Launched in October 2003, the AUM of Franklin India Dynamic PE Ratio Fund of Funds is an impressive Rs 869 crore. This is a fund of fund scheme which invests in funds from within the Franklin Templeton basket of funds. Through this structure it provides exposure to both equity and debt asset classes. The equity component is invested in Franklin India Bluechip Fund or Franklin India Prima Plus. The debt component is invested in Franklin India Short Term Income Fund or Franklin India Income Opportunities Fund. The Franklin India Dynamic PE Ratio Fund of Funds has a unique in-built “buy-sell” discipline based on market valuations. This gives less room for subjectivity or any error of judgment. The fund has a predefined monthly rebalancing mechanism based on the “PE” level of Nifty 50. It reduces equity exposure and increases debt exposure when PE levels are high and vice versa. This fund is suitable for those who are not only keen to take advantage of the growth opportunities in equities but also prefer to reduce the impact of market volatility. The scheme aims to provide long-term capital appreciation with relatively lower volatility through a dynamically balanced portfolio of equity and income funds. The equity funds allocation will be determined based on the month-end average PE Ratio of NSE Nifty. This predominantly large cap fund has an allocation to equity of 33.55%, with finance, automobile and energy being the top three sectors at present. The one-year return of the fund is 10.79% as against the category average of 11.24%. The expense ratio is at 1.89%. The fund is benchmarked against the CRISIL Balanced Fund – Aggressive Index. The fund has been managed by Mr. Anand Radhakrishnan since Feb 2011.