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ICICI Securities Limited

Fund managers survey

We have done a mutual fund managers survey of 11 major AMCs fund

managers to gauge the overall view for the market in 2011. Based on their

feedback, the compiled views are as follows:

Broader Indian equity market on a

valuation scale

0

9

55

36

0

0

20

40

60

Grossly

Undervalued

Slightly

Undervalued

FairlyValued

Slightly

Overvalued

Grossly

Overvalued

(%)

Medium term (3 months) view

about the broader market

0

18

64

18

0

0

20

40

60

80

Very

bullish

Bullish

Neutral

Bearish

Very

B

earish

(%)

Asset allocation strategy to be

adopted

0

27

64

9

0

0

20

40

60

80

A B C D E

(%)

Year end BSE Sensex target

9

64

27

0 0

0

20

40

60

80

>20000

22000-

24000

18000-

22000

16000-

18000

20%

(%)

Corporate earnings growth expected

for FY12-13

9

27

55

0

0

20

40

60

Lessthan

10%

10-15%

15-20%

>20%

(%)

Preference towards large caps or

midcaps?

82

18

0

20

40

60

80

100

Largecaps

Midcaps

(%)

Will Indian equity markets

underperform other emerging markets in 2011?

18

82

0

20

40

60

80

100

Yes N

o

(%)

Which global equity market are

expected to outperform in 2011?

73

18

9

0

0

20

40

60

80

US

Brazil

China

Eu

ropean

co

untries

(%)

Benchmark 10 year G-Sec yields

range expected in the next 3 months?

27

45

27

0

0

20

40

60

Above

8.2

0%

8-8.2

0%

7.75-8%

Below

7.7

5%

(%)

Most of the fund managers are confident of 15-20% growth

over the next two years

Majority of the fund managers believe large-caps will

outperform in 2011 as midcaps may take time to recover

Majority of them believe India may continue to outperform

among its emerging market peers

Consensus believes that among other global market, US

equity markets are likely to outperform in CY11

Total 70% of fund managers believe Indian benchmark 10

year G-Sec yields will remain below 8.2%

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Over 6 months horizon, which

segment of the debt market is expect to deliver

better returns?

9 9

45

27

0

20

40

60

G-Sec

Fund

Income

Funds

Shortterm

Funds

Ultrashort

termf

unds

(%)

Asset class to outperform in 2011?

18 18 18

9

55

0

20

40

60

Indianequity

Globalequity

IndianDebt

Gold

Agro

commodities

(%)

Sector preference

Pharma IT

BFSI

Metals

FMCG

Auto

Telecom

Capital

Goods

Cement

OilandGas

Media

C

onstruction

Aviation

Most of the fund managers believe short-term and ultra

short-term funds will outperform in the next six months.

However, a majority of them believe that opportunityalso exist in longer duration funds

Opinion seems divided over outperformance among

Indian equity, global equity, Indian debt market and gold

in 2011

Pharma and IT are the most preferred sectors among fund

managers while cement, capital goods, construction,

media and aviation are least preferred. But they expect

further price erosion to be a buying opportunity in the

above mentioned sectors