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  Large caps in a structural bull market? Think again.
Large caps usually outperform in bear markets while midcaps deliver better returns in structural bull markets. Canara Robeco believes we are in a structural bull market now.

High P/E stocks will no longer lead the market
After 7 strong years of alpha generation, Tata Balanced Fund had a muted CY16, as it sought to reposition its portfolio in light of a change in market leadership. Pradeep believes market leadership has changed from high P/E stocks to GARP – growth at a reasonable price.

  Two features make this a good choice for conservative equity investors
The Tata Equity P/E Fund follows a value investing approach, with a mandate to invest at least 70% of its portfolio in stocks with P/Es that are lower than market averages. Added to this are a couple of dividend payout trigger options that are designed to pay out gains regularly to investors who like seeing regular returns coming in from their equity investments. A conservative investment approach coupled with the trigger options make this fund a good option for conservative equity investors.

This fund specializes in turnaround picks
Invesco India Contra Fund is quite different from most diversified equity funds in that it focuses its attention on picking turnaround stories as a key component of its contrarian stance towards stock selection. An economy that’s emerging out of a prolonged slow growth phase should offer rich pickings for such a strategy, and Amit takes us through how he is steering this unique fund to make the most of such opportunities going forward.

  Strong contender in balanced funds category
Think of I Pru and hybrids, and the mind immediately recalls BAF – the flagship volatility buster that’s become an iconic brand in the industry. Beyond BAF, there’s another winner in the I Pru suite of hybrids – its conventional Balanced Fund, which has been notching up credible performances Y-o-Y

Truly a valuable addition in your clients’ equity portfolios
L&T India Value Fund’s performance has been on a roll in recent years – strong YoY alpha, last two calendar years of top decile performance and continued strong performance YTD CY16 as well: this fund has surely been a valuable addition to investors’ equity portfolios.

  Red signal has been flashed – first time in 6 years
High standard deviation from a dynamically computed historical average market PE is a statistically sound warning of impending mean reversion. The Tata Red Line Strategy uses this metric to decide when to substantially cut equity allocations. In the past, a 1.5 SD level was hit in 2000 just before the crash, in end 2007 before the 2008 meltdown and then in end 2010, before the 2011 bear market. For the first time since 2010, a red signal has been flashed by the Tata Red Line Strategy in September 2016, when the 1.5 SD level was again breached.

Inflation beater for conservative investors
For conservative investors, Naren believes the I Pru Equity Income Fund should form part of their core portfolios, given its moderate equity exposure coupled with tax efficiency. There is always an opportunity to go up the risk curve seamlessly by switching into pure equity funds when one believes valuations are compelling.

  Strong new competitor in the ELSS category
Motilal Oswal’s ELSS product – the MOSt Focused Long Term Fund, has muscled its way into advisor reckoning on the back of strong alpha generation and a top decile performance in its first year of existence.

Initial investment: Rs. 10 lakhs. Dividend reinvested: Rs. 6.98 crores
UTI Mastershare has paid out dividends in every year of its 30 year track record. While that in itself is a laudable achievement, what’s even more impressive is the sheer magnitude of long term wealth creation. If an investor had invested Rs. 10 lakhs in UTI Mastershare at its inception, his reinvested dividends over the years would have aggregated to Rs. 6.98 crores today!

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