ECONOMIC OVERVIEW

.The Indian economy in 2014-15 has emerged as one of the largest economies with a promising economic
outlook on the back of controlled inflation, rise in domestic demand, increase in investments, decline in oil
prices and reforms among others.
The outlook for India is for economic strengthening through higher infrastructure spending, increased fiscal
devolution to states, and continued reform to financial and monetary policy.

A positive outlook throughout

India | Credit Rating

Country

S&P

Review

Moody's Review

Fitch

Review

India

BBB-

Stable

Baa3

BBB-

stable

Positive

TE
47 stable

Government Bond rates will remain stable keeping in mind positive outlook. Interest rates are expected to remain
unchanged unless changes by US FED.

KEY INDICATORS
Fiscal Indicators of General Government (% of GDP)

20.0

2014-15 RE

2015-16 BE

Fiscal Deficit

6.9

6.5

Revenue Deficit

2.9

2.4

Capital Expenditure

4.6

5.1

10.0
0.0
-10.0
WPI
Rural wage growth

CPI

Inflation is coming down, improving consumer spending leader to

better returns.
4.0

RE= Revised Estimates;

BE= Budget Estimates;

15.0
10.0

2.0
0.0

5.0

-2.0

0.0

-4.0
-6.0

-5.0

-8.0

Q1:11 Q2:11 Q3:11 Q4:11 Q1:12 Q2:12 Q3:12 Q4:12 Q1:13 Q2:13 Q3:13 Q4:13 Q1:14 Q2:14 Q3:14 Q4:14

Quarterly IIP Growth Rate

Core WPI
Current Account Balance/GDP

Manufacturing Value Added

INVESTMENT OPPORTUNITIES

Main sector
indices
Main
geographic
al indices
Bonds

Futures

Energy Rising GDP, increased infrastructure spending, rising

demand
FMCG Rising rural demand coupled with uptick in urban
discretionary spending
Banking Controlled inflation has led to higher scope for lowering
interest rates. Also capital infusion by Govt. in PSBs

World Market Index Highly diversified

Emerging Market Index Current century belongs to Asia.
EMs have been fastest growing economies

2 Year Indian Govt. Bond Provides relatively higher liquidity

10 Year Indian Govt. Bond Indias improved sovereign rating
coupled with overall positive sentiments are favourable factors

Currency Federal Reserve rate hike is a big factor which may

lead to further depreciation of INR
Gold Current levels of gold prices provide great opportunity for
substantial gains

PORTFOLIO ALLOCATION AND ESTIMATED

RETURNS
Security

Actual
Investment

Actual
Weightage

Expected
Returns

Energy Index

8500000

0.20

4.32%

Portfolio Return

Currency Futures
Contracts

8500000

0.20

3.80%

Gold Futures Contracts

6376000

0.15

2.69%

FMCG Index

4250000

0.10

1.22%

World Market Index

2125000

0.05

0.58%

10 Yr Indian Govt. Bond

8500000

0.20

2.01%

Standard Deviation
Sharpe Ratio
Beta
Treynor Ratio
Omega Ratio
Downside Risk
Average Excess Return
Sortino Ratio

Emerging Market Index

2125000

0.05

0.39%

Banking Index

1062000

0.02

0.19%

Sharpe Ratio could be further

2 Yr Indian Govt. Bond

1062000

0.02

0.11%

maximized with different

Expected Return (Pre-tax) = 15.3%

Overall Potential Downside risk = 3.04%
Portfolio Risk
= 6.01%
Overall Upside Potential
= 18.72%

Parameter

Value
15.32
%
6.01%
1.218
1.045
0.070
5.502
3.40%
7.32%
2.151

allocations, but our portfolio is

highly diversified keeping in
mind your requirements and
has a upside potential of
18.72%

KVY MUTUAL FUND

Fund House Headed by Mr Karan D who has over 12 experience of

managing various funds.
Total of 221
The House is divided into
employees
Equity investment house ( Headed by Mr Swami)
Fixed income investment house (Headed by Mr Pogaru)
To be a profitable and admired
business
To be the preferred AMC for
distributors and customers
To deliver great customer
experience through product
innovation and high service
standards
To consistently deliver long
term investment performance

Key
Goals

To be known for ethics,

professionalism and efficiency
To be among the leading asset
management companies in
India

13 Equity and Hybrid

Funds
12 Fixed income funds

Assets of approx Rs19,937 crores*

Nearly 800,000 investors across retail and high net-worth

segments based in 200 towns and cities
Healthy mix of assets across equity, fixed income and
hybrid schemes ; With a major focus on equities (25%
of total assets)
Consistent growth in assets: 84% (post FIL acquisition)
Comprehensive product range across equity and debt
High quality, scalable retail and institutional asset
management business. Capability to manage institutional
mandates

Vision Statement
Creating prosperity for our investors, partners and stakeholders by delivering consistent long term
investment performance, by being a value provider of investment solutions and quality service

INVESTMENT PHILOSOPHY OF FUND

Fundamental research is the foundation of our investment

process (equity / credit)
Focus on delivering long term consistent performance
Following a disciplined approach to investing and risk
management
Team based approach with individual accountability

Investment Rationale of fund

offered

Generate long term capital

appreciation with secondary
objective of income generation

Our Fund offering

(Hybrid):
Energy Index
FMCG Index
Banking Index
Currency Futures
Contract
Gold Futures Contract
World Market Index
Emerging Market Index
10 yr Indian Govt. bond
2 yr Indian Govt. Bond

A highly
A thorough
diversified
Mix of :
fund with
Equity Security
minimalistic
Commodity
Forex
downside risk
Fixed Income
and high
returns.
Other important points kept in mind while designing the portfolio:
Vinod to be married after 5 years and so Vinod wants to save INR
2,00,000 pa for his marriage expenses
Vinod wants to retire at the age of 65 and be able to live comfortably
We want our portfolio to be diversified and so at any point no security
should have a value of more than 25% of the portfolio
No short positions are in the portfolio.
FMCG and Pharma both have not been included in the portfolio
More than 20% of amount invested in bonds.

Equity
In-house research
and broad-based
coverage results in
more opportunities
and helps mitigate
risk
Identifying
sustainable and
scalable
businesses with
good
management,
track record and
strong execution
capability
While the macro
environment plays
a role, bottom-up
stock selection is
central to portfolio
construction
Picking good
quality companies
that have the
potential to grow
over time

Fixed
Income
Focus on three
critical aspects of
portfolio
construction
Liquidity
Duration
management
Credit Selection
Uses Rigorous
research to deliver
relative value (Top
down +bottom up)

Diversification key
for a prudent risk
profile

OUR OFFERINGS
we reach out to our clients through a range of interactive platforms
We are constantly changing with times: we strive to excel in innovative media to interact
with our clients while continuing to maintain dominance in the traditional media like
Technolog telephone and internet (website and portals).
y
KVY recently launched the mobile app "KVY Pro", designed specifically to offer the users an
products
interactive platform to track all the information they need, in one go.

Acclaimed
Customer
Service

Expert
Analysis

Technology

In order to offer simplicity and convenience to our users, KVY recently tied up with
Ease of Rossul Design, the leading Canadian firm having expertise in user oriented
access on communication and GUI design.
computer Our software and mobile app are designed to offer maximum ease of access to the
s and
users.
mobiles

Expert
advice

KVY is known for extending best-in-category expert advice to its clients

dedicated team working 24x7 to cater to the issues, queries and calls for guidance raised
by clients.
Comprising of highly talented individuals with qualified backgrounds, this team has always
given KVY an edge over its peers.

Apart from offering a range of predefined mutual fund bouquets, KVY also offers tailormade, customized fund packages to its esteemed clients
Customiz customized packages that would consider client side demands such as risk profiling, returns
ed
expectations, liquidity situation and period of engagement.
products
KVY recognizes operational needs of its clients.
The firm has a dedicated team of well trained and multilingual executives that would cater
Industry to operational demands of our clients.
acclaimed
From executing the order to providing primary information regarding any query, our
customer
executives are always up to assist you any time of the day.
service

PAST TESTIMONIAL AND MILESTONES

Total AUM

Total AUM for

KVY currently
stands at nearly
Rs 19937 crore
The number
truly reflects the
amount of trust
exerted by our
esteemed
clients.
The assets
under
management
are highly
diversified
(growth/value,
long term
growth vs short
term liquidity) in
order to offer a
spectrum of
options to our
clients.

Major clients

High Net-Worth
Individuals
(NHIs) form a
considerable
chunk of our
clientele
Around 400
NHIs trust us
with their
investments,
and we have
always
reciprocated
with giving
them
exceptional
returns.
These Customer
Relationship
executives
provide all the
assistance and
guidance
needed to the
major clients.
We also have a
dedicated online
portal that
caters
exclusively to
the major

Average annual
returns
While the
industry
average for
growth funds
hovered around
11-12 per cent,
KVY Growth
Fund has
outperformed all
its peers by
giving
exceptional
returns at 14.7
per cent.
Moreover, the
trends suggest
that our funds
have shown the
least volatility at
times of
uncertainty and
unpredictability.
Right from the
moment of their
inception, KVY
funds are known
to give
outstanding
returns to the
investors.

Constantly
outperformed
all major stock
indices
Compared to
their benchmark
indices, KVY
funds across the
categories have
largely
outperformed
right from the
moment of their
inception
KVY FMCG Fund
and KVY IT Fund
are examples of
our sector
specific funds
that have
always
outperformed
their
benchmarks.
Beating the
benchmark has
always been our
identity across
the industry,
and it indeed is
the biggest
source of
confidence that
our clients show
in us.

Appendix

Portfolio Analysis