GEMGAZE

February 2020

The consistent performance of all four funds in the February 2019 GEMGAZE is reflected in all the funds holding on to their esteemed position of GEM in the February 2020 GEMGAZE.

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 66 crore. The AUM of each plan is Rs 12 crore, Rs 6 crore, Rs 13 crore, Rs 6 crore, and Rs 29 crore respectively. The top three sectors in the portfolio are finance, energy, and construction/technology. The allocation to equity tapers from 76% in the first plan to 52.5% in the next plan to 33.3% in the 40s plan to a measly 19.4% in the penultimate plan and 19.1% in the last plan. The three-year returns of the plans are 6.09%, 6.26%, 6.3%, 5.95%, and 6.94% respectively, while the expense ratio for the plans is 1.39%, 1.27%, 1.41%, 1.45%, and 0.8% respectively. The benchmark indices are S&P BSE Sensex TRI (65) CRISIL Composite Bond (20) Nifty 500 TRI (15), S&P BSE Sensex TRI (45) CRISIL Composite Bond (45) Nifty 500 TRI (10), CRISIL Composite Bond (65) S&P BSE Sensex TRI (25) Nifty 500 TRI (10), CRISIL Composite Bond (80) S&P BSE Sensex (20) and CRISIL Liquid (80) S&P BSE Sensex TRI (20) respectively. The fund manager is Paul S. Parampreet since March 2018.

ICICI Prudential Advisor Series – Debt Management Fund (erstwhile 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). ICICI Prudential Advisor Series – Dynamic Accrual Plan has been renamed as ICICI Prudential Advisor Series – Debt Management Fund w.e.f May 28, 2018. The AUM of the Debt Management Plan is Rs 200 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 Floating Interest Fund and ICICI Prudential Short-term Fund. The one-year return of the plan is 9.25% as against the category average of 9.3%. The expense ratio of the fund is 0.75%. The fund is benchmarked against the CRISIL Composite Bond Index. 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.11 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 two holdings are IDFC Banking Debt Fund and Aditya Birla Sunlife Credit Risk Fund. The one-year return of the fund is 9.46% as against the category average of 8.9%. The expense ratio of the fund is 0.82%. The fund is benchmarked against CRISIL Composite Bond Index. The fund has been managed by Mr. Pranay Sinha since August 2018.

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 1065 crore. This is a fund of funds 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. The debt component is invested in Templeton India Income 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 46.3%, with finance, technology and construction being the top three sectors at present. The one-year return of the fund is 5.04% as against the category average of 8.45%. The expense ratio is at 1.26%. The fund is benchmarked against the CRISIL Hybrid 35+65 Aggressive Index. The fund has been managed by Mr. Paul S. Parampreet since May 2019.