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FEBRUARY 2018For private circulation only

1. Key NumbersThe total budget size was R24.42 lakh crores (receipts & expenditure). The fiscal deficit target for FY 2019 is lowered to 3.3% of the GDP from last year's 3.5%.

2. AgricultureThe Agriculture sector is overwhelmed as the biggest sector on the receiving end in this year's budgetary announcements.

Allocation of R14.34 lakh crore for FY 2019 for creating livelihood in rural areas.

Increase in institutional credit for agriculture to R11 Lakh Cr for FY 2019.

Setting of Minimum Support Price (MSP) at 1.5 times the cost of production for kharif crops, the farmers income is expected to grow substantially due to this step.

Allocation of R2,000 Crore for development of Rural Haats and R500 Crore for Operation Green, R2,600 Crore for irrigation, R10,000 Crore for Fisheries and animal husbandry, were among the other measures taken.

3. Ayushman Bharat ProgrammeJaitley announced the World's largest government funded healthcare programme in Budget 2018. Under this scheme, a health cover of R5 Lakh will be provided per family to 10 crore poor and vulnerable families, or around 50 crore people which is 40% of the country's population.

4. InfrastructureThe need for Infrastructure Development, as also highlighted in the Economic Survey, has been realized and provided for in Budget 2018. Jaitley pointed out that India needs to spend R50 Lakh Crore on Infrastructure development in the coming years. A total of R5.97 lakh crore is allocated to Infrastructure sector for FY 2018-19.

Railways: Although, railways did not get enough space in the Budget Speech this year, yet a few major announcements were made for the sector. Mumbaikars can now put their feet up, the city will get another 90 kms of local train tracks; Bengaluru metro project gets R17,000 Cr allocation; and a Railway University is proposed to

be set up in Vadodara.

Roads and Highways: FM applauded the performance of the government in the sector, and said construction of 9,000 kms of highways would be completed in FY 2018-19.

Approval of Bharatmala Pariyojna, for providing connectivity to interior and backward areas and borders of the country to construct about 34,800 km of roads in Phase 1 with a capital outlay of about R5.35 lakh Cr.

R71,000 crore allocated to road transport and highways ministry for FY 2018-19.

Airways: Development of 56 unserved airports and 37 unserved helipads for usage by civilians.

5. Affordable HousingAs a move towards achieving the PM's vision, 'Housing for All by 2022', building of more than one crore houses in rural areas and 37 Lakh houses in urban areas in FY 2018 & FY 2019, was announced. Proposal to establish an affordable housing fund in the National Housing Bank for priority sector lending.

The announcement of Budget 2018 was a highly awaited moment post the structural reforms and being the last budget before the 2019 general elections, and it did roll out a bunch of surprises and shocks. This year's budget was powerpacked with big news for almost all sectors. So, we have penned down the important announcements made this year, which we thought would be of interest to the readers:

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6. Education Along with Agriculture, Infrastructure and Health, Education too occupied a place in the priority list. A sum of R85,010 crore is allocated to Education for the fiscal year 2018-19. The key highlights for Education from the speech are:

Plans to treat school education holistically with integration of school education from pre-school to Class XII

Launch of an integrated BEd programme, for teachers' skill development, under which 13 Lakh teachers will be trained.

Setting up of 24 new medical colleges and hospitals and two new schools of planning & architecture.

7. E-AssessmentAnother welcome step announced in this budget session is rolling out the E-Assessment system pan India. E-Assessment will cut the face to face contact between taxpayers and IT Department and will thus lead to increased efficiency, reduced corruption and transparency in the system. E-assessment will transform the age-old functioning of Income Tax Department, said the FM.

8. Senior CitizensThe Budget has unveiled a number of pleasant surprises for the Elderly.

The exemption of TDS on interest income from Fixed Deposits and Post Office Deposits has been increased from R10,000 to R50,000.

The limit of deduction for health insurance premium and healthcare expenditure u/s 80D has also been increased to R50,000

The deduction limit on medical Expenditure for certain critical illnesses u/s 80DDB increased to R1 Lakh.

Proposal to extend Pradhan Mantri Vaya Vandana Yojana upto 2020, under which Senior Citizens get an assured return of 8% from LIC. The investment limit under the scheme also to be increased to Rs 15 Lakh from the existing R7.5 Lakh.

Standard Deduction of R40,000 applicable to pensioners as well.

9. Salaried Individuals EPF: Government to contribute 12% of wages in EPF for new employees, for the next three years. Further, employee's contribution for women has also been reduced from 12% to 8%, while Employer's Contribution to remain in tact at 12%, for the first three years of employment, this implies higher take home salaries for women.

Standard Deduction: is back and a flat deduction is allowed on the income of salaried individuals for tax computation to the extent of R40,000. However, transport and medical allowance have been removed. It is a flat deduction allowed on the income of salaried individuals for tax computation and will save individuals from the hassles of maintaining & reporting transport and medical bills, if used.

10. Tax RatesIndirect Tax: Since GST was rolled out recently and most indirect taxes now fall under the GST ambit, hence not many changes were announced in this aspect. One major announcement here is the proposal to rise customs duty on a range of products, like motor vehicles, cars, fruit juices, mobile phones, etc. This is done to incentivize domestic value addition and provide a boost to the 'Make in India' programme.

Direct Tax: No announcements on tax slabs or tax rates or any new allowances were made. Although some relief has been provided to the salaried class, in form of standard deduction.

Corporate Tax: The Corporate Tax Rate has been cut from 30% to 25%, but only for companies with a turnover of upto R250 Crore. Companies with a turnover of above R250 Crore will continue to pay Corporate Tax @ 30%. This announcement will be benefiting MSMEs, which account for 99% of the

companies filing tax returns.

11. InvestorsBitcoins: There is bad news for Bitcoin fans as the government does not consider cryptocurrencies legal tender or coin and budget speaks of measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.

Gold: Formulation of a comprehensive Gold Policy was announced but there was not much on the anticipated issue of reduction of import duty on gold.

LTCG Tax on Equity: Coming to the last and one of the most important announcements, which has taken aback all investors, Jaitley reintroduced the Long Term Capital Gains Tax on Equity investments which was abolished in 2004. From April 2018, LTCGs on Equity in excess of R1 Lakh will be taxed @ 10% plus cess. However, LTCG till 31st January 2018 will be grandfathered, meaning no tax for gains on equity until 31st Jan 2018 will be applicable.

Overall, Mr. Jaitley has been generous with the poor & vulnerable sections of the society. Sectors that needed prompt attention like healthcare, education and infrastructure have also been taken care of, but at the same time the budget has not been welcomed by many, especially the middle class population of the country.

Lets' move on: For those not happy with the LTCG tax have to accept the fact and move on. Remember that the tax is only on the gains that you make, 90% gain is still yours and that profits only above R1 lakh are subject to tax. There is no asset class or instrument that can potentially offer double digit returns over long term. Even a bank FD giving you 6-7% is taxed at upto 30%. 10% is a small tax to pay to ensure that you create long term wealth and achieve your financial goals. Lets move on beyond this and back to basics - focus on what our goals are and how much are we saving for the same.

On the first day of the Budget Session, the Economic Survey 2018 was tabled, drafted by the Chief Economic Adviser of the Government, Arvind Subramanian. The Economic Survey sheds light on the state of affairs in the economy and is tabled just before the announcement of the Union Budget. Our economy has undergone huge structural reforms lately, since Demonetization was announced and with the onset of GST, we are currently in the process of adapting to these amendments. The Economic Survey gives a clearer picture of the impressions these reforms have created and how the future looks in light of these reforms.So, we have penned down the key highlights from the Survey for your reading:Growth: The first half of the year 2017-18 was sluggish as compared to the global economy due to the ripples created by Demonetization & further because of procedural ambiguities, multiple filings and higher rates, at the launch of GST. The good news is, the worst is over, the economy picked pace in the second half of the year after GST started sinking in, post the easing out of filings, rates and other procedural formalities; the boost given to the struggling Public sector banks through R 2.11 trillion bank recapitalization; and the uplift of exports as a result of global recovery; have all contributed to the pull. As a result, the GDP growth is expected to expand to 6.75% for the year 2017-18 and to 7.0%-7.5% for fiscal 2019, with India regaining the status of the fastest growing economy of the world. Increase in the number of taxpayers: Secondly, post demonetization and with the introduction of GST, the tax base of our country has widened significantly. From Nov 2016 until Nov 2017, a total of 10.1 million filers were added to the tax base. A 50%

increase is witnessed in the number of unique indirect tax payers, plus about 18 Lakh individual income tax filers have been added since Demonetization. This is good news as we are gradually transitioning into a formal economy. Exporting States: The Survey also pointed out that a state's prosperity is correlated with trade, both n a t i o n a l a n d

international, the correlation is stronger in the latter case. It means that the higher any state trades with other states across India, and exports to other countries, the richer they are. Further, India's export structure is more equitable as compared to other countries. The top 1% of Indian firms account for 38% of exports, while the exports share of the top 1% is 72%, 68%, 67%, and 55% in Brazil, Germany, Mexico, and US, respectively. Economy is driven by Investment: Next, the Survey highlights the importance of Investment. It indicated that the growth in Savings did not bring about economic growth, growth in investments did. To re-ignite growth, raising investment is more important than raising saving; cross-country experience shows that growth slowdowns are preceded by investment slowdowns but not necessarily by savings slowdowns.

Infrastructure Development: The Survey also highlighted the accelerated infrastructure spending over the year, as well as pointed out the gap which is yet to be filled. In FY 2017-18 India received fiscal allocation of R3.96 lakh crore for Infrastructure development. The best part is increased spending on Infrastructure will help create jobs. The Survey said that “The Global Infrastructure Outlook reflects that rising income levels and economic prosperity is likely to further drive

demand for infrastructure investment in India over the

next 25 years”. In this view, India will need around $4.5 trillion for infrastructure development by 2040. The current trend suggests India will be able to meet $3.9 trillion out of the total investment requirement, thus we are likely to face a gap of $526 billion. So, India would be needing private investment, to fill in the

gap & sustain growth. The Survey also suggested the need for an improved Logistics sector, to make our exports competitive. A 10% decrease in indirect logistics cost can increase 5-8 per cent of exports, it said. The Survey mentioned that India's Logistics sector is likely to reach $215 billion by 2020, with the implementation of GST. Climate Change: The Survey has pointed out that Climate Change might reduce agricultural incomes by 15-18% on an average and up to 20-25% in unirrigated areas in the medium term. Meaning, at current levels of farm income, it translates into more than R3,600 per year for the median farm household. The survey also showed the silver lining by highlighting the government's efforts to accord science and technology to farmers, replacing untargeted subsidies by direct income support, and extending irrigation through efficient drip and sprinkler technologies.

KEY TAKEAWAYS FROMTHE ECONOMIC SURVEY 2018

Q. The year 2017 has again been a great one for the equity markets, as it has been doing for quite some time. What is your expectation for year 2018?Answer: The year 2017 has been a rewarding year for equity investors. From the lows of demonetisation and the withdrawal of easy global monetary policies the Indian equity market, year-to-date gained 29%1 and remained one of the best performing emerging markets2. In our view India had done a remarkable job in repairing its macro economy between CY 2014 and H1 2017. We believe that the best of the macroeconomic improvement is behind us and that from CY 2018 to 2020 we may see some deterioration in a few macro variables, though not to the same extent as the taper tantrum period. Lower commodity prices were the prime reason for India’s improved basic balance of payments but the recent run in crude oil prices poses a threat to the improved current account deficit.The private sector as well as the government had shied away from spending for a better part of the last three years. But the government is now finally trying to stimulate the economy through various spending measures such as farm loan waivers, policy push on affordable housing, the Bharatmala project, recapitalization of public sector banks, etc. All of these measures could lead to a higher velocity of money and ultimately could converge into better near term growth. This may show up in corporate profitability and earnings growth albeit at the cost of deteriorating macro variables.Key themes for 2018:• Macro variables may not improve from here, as seen in CY 2014 - H12017 • Pollution clampdown will gather pace in China and India aiding select domestic sectors • Pickup in discretionary consumption led by urbanisation1 Nifty 50 returns as of December 29, 20172 Bloomberg• Doubling of farm income to aid rural consumption • Financialisation to gather pace - domestic flows to stay robust • Earnings may have finally bottomed outConsumer price inflation is likely to average around 5% in financial year (FY) 2019, up from an estimated 3.7% in FY 2018. Our base case remains for a rate hike in the next 6-9 months, possibly in Q1 FY 19. Nevertheless, we are not expecting an aggressive hiking cycle as the RBI has largely held its ground, and refrained from any significant easing as inflation fell. We expect 10 year G-Sec bond yields to slowly inch upwards in the next 6-9 months from 7.75-8.0% on account of rising inflation and interest rates.Earnings may have finally bottomed out but dispersion in earnings will continue, we see headline earnings growth likely to return, given; (a) sequential improvement in earnings (b) the return of inflation; and (c) improved demand from favourable policy and tax changes i.e. consumption push in domestic economy, better global growth & stressed asset resolution.From the perspective of capital markets and investors, since higher inflation is negative for interest rates, fixed income as an asset class is expected to continue its underperformance and at the same time equities should continue to do well because the early stages of inflation tend to be good for corporate earnings. We are currently in this stage where inflation has a positive impact on corporate earnings. For this reason we are bullish on equities.In our view the macro variables - current account deficit, inflation, fiscal deficit and oil price - which behaved well in the last three years are exhibiting mean reversion and micros (read earnings) are likely to do well. In this context we believe the year 2018 could be the year of the ‘U-turns’ for both macro and micros. For 2018 we believe the themes stated above will drive our investment decisionsQ. The Q3 GDP growth stood at 6.3%, much higher than 5.7% in Q2. What is the market expectation going forward & when can we possibly reach the 8% rates again?Answer: The QE Sep 2017 GDP print of 6.3% yoy showcases gradual recovery in the manufacturing and investment, but we would not be lured by these numbers as these are lag indicators. The macroeconomic indicators we track are showing signs of recovery in most areas of consumption while some industries are being led by low base of demonetisation. Cement and steel production, oil consumption and passenger vehicle sales, as well as credit growth witnessed healthy recovery. Manufacturing purchasing managers’ indices indicated expansion in core industries. As the economy recovers from the impact of demonetization and the transitory disruption caused by implementation of GST we expect the recovery in macroeconomic indicators to continue and help attain GDP growth rate of 7% - 7.5% in CY2018.Q. What will be the consequences of merger of the same type of mutual funds under SEBI's mandate for investors? Should they be worried about it at all?Answer: The SEBI categorisation exercise was aimed towards bringing in uniformity in the investment strategies offered and to reduce the number of duplicate funds in each category. As a result investors should be able to clearly identify categories / funds as per their investment needs given that there will be apple to apple comparison between the funds and that coverage by rating agencies on funds will be uniform going forward.Investors may need to keep an eye out for any changes in investment themes and re-evaluate the fund and its fitment in their investment portfolio.Q. Investors are today investing nearly Rs.6,000 crores every month in equity markets via SIPs. Do you feel that investors have finally embraced mutual funds or is there still a long way to go?Answer: We believe that mutual funds have a long way to go, although they have found more favour with investors.We believe the structural and cyclical factors for now favour the rising household savings; the share of financial savings has been increasing within household savings and equities have been occupying a larger share in financial savings.Q. From a retail investor's perspective, what should be his investment strategy at this moment? How should he invest & what segments of the market should he be looking into?Answer: An investor should consider having a well thought out investment philosophy and process should be followed diligently in all phases of the market. Investors are advised to consult a financial planner in order to advise them on wealth creation plans and asset allocation per their risk appetite. We believe that it is one of the key criteria for success. Equity is a long term asset class where an Investor should ideally have an investment horizon of at least 3 to 5 years. While near term valuations are higher than the long term average, we believe earnings growth is likely to accelerate over next 2-3 years period.From that perspective, we believe, Indian equities outlook is positive from the next 2-3 year horizon. One of the disciplined ways to participate in the Indian equities is through SIPs facility available with Mutual Funds.Q. What is your investment strategy at present and how are you investing the new funds being received?Answer: At BNP Paribas Asset Management, we follow the ‘BMV’ investment philosophy which stands for Business, Management and Valuation. We, as a team, have stuck to this philosophy and focused on identifying superior and sustainable earnings growth companies. The framework helps us in bottom-up stock picking and at the same time helps us to weed out weak businesses.In the normal course of business we tend to deploy new funds in a staggered manner. However if the market provides any new opportunity or in the event of a sharp correction we could expedite the deployment. We don't believe in taking cash calls or timing the markets.

Disclaimer: The views expressed above are author’s own views and not necessarily those of the AMC. The views expressed are based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying on them. The information contained in this document is for general purposes only. The document is given in summary form and does not purport to be complete. The document does not have regard to specific investment objectives, financial situation or particular needs of any specific person who may receive this document. The information/ data herein alone is not sufficient and should not be used for the development or implementation of an investment strategy. The statements contained herein are based on our current views and involve known and unknown risks and uncertainties that could cause results, performance or events to differ materially from those expressed or implied in such statements. Past performance may or may not be sustained in future. Neither the AMC, the fund nor any person connected with them, accepts any liability arising from the use of this document. The AMC is not guaranteeing/offering/communicating any guaranteed returns on investments made in the scheme(s). The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY

FUND MANAGER INTERVIEWS

Mr. Karthikraj Lakshmanan - Senior Fund Manager (Equity), BNP Paribas Mutual FundMr. Karthikraj Lakshmanan is at the helm as the Senior Fund Manager – Equities at BNP Paribas Asset Management (BNPP AM), since July 2008. He brings a wealth of experience of over 13 years coupled with insightful knowledge of the financial domain.Mr. Lakshmanan has previously held several leadership positions including Senior Research Analyst in the Portfolio Management Services division of ICICI Prudential AMC assisting the Fund Manager in managing Equity Portfolios. He has also garnered valuable experience working with Goldman Sachs in the Global Investment Research Division and with Wholesale Banking Group of ICICI Bank.A seasoned professional, Mr. Lakshmanan is an astute reader of the market dynamics and brings strong fund management capabilities to the table.Mr. Lakshmanan is a Chartered Accountant and holds a Post Graduate Diploma in Business Management from SPJIMR, Mumbai. He has a CFA Level 3 (CFAI, USA) degree as well.

MF NEWS

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16.8218.1221.2621.5722.0947.9120.6827.0835.8329.5527.9620.6125.5428.3122.4619.1015.2424.4423.8021.8520.5131.8425.4624.6022.7521.8322.2914.7623.9319.9522.4723.8118.7618.3030.8628.2339.0422.1628.0629.3321.5921.6427.3827.4623.4422.5225.2234.4025.6530.8429.7526.0321.7724.7645.6128.3724.1325.7325.5732.9322.4327.0927.0925.5220.8818.7120.0220.6920.6515.2926.5825.5236.1719.5634.0713.0426.3326.8938.1419.4631.6426.0824.8318.9518.2023.3127.7320.5622.7319.9121.0425.9336.5526.5022.0326.6926.1128.2922.1817.71

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SIP RETURN AS ON 31ST JANUARY 2018

Starting - February Month of

Years

Invested Amount :

Schemes (Diversified Equity)

2017

1

1,20,000

2015

3

3,60,000

2013

5

6,00,000

Returns % - CAGR

2011

7

8,40,000

2008

10

12,00,000

2006

12

14,40,000

MFs log r 1 lakh crore inflow in Jan, pushing AUM to r 22.41 lakh crore

Investors have pumped over r 1 lakh crore into mutual funds in January, driving the industry assets base to an all-time high of r 22.41 lakh crore, latest update with Amfi showed. Industry experts attributed the surge in assets under management (AUM) to 'aggressive' investor awareness campaign both at the individual player level as well as at industry level. In addition, investors are moving towards financial asset class for investment instead of buying traditional asset classes such as real estate and gold, which also helped in increasing the penetration of mutual funds. According to Association of Mutual Funds in India (Amfi) data, investors have poured in a net r 1.06 lakh crore in mutual fund schemes last month as compared to a pullout of r 1.75 lakh crore in December. The latest inflow has been mainly driven by contributions from liquid or money market funds, and equity, equity-linked saving schemes. Bajaj Capital CEO Rahul Parikh said going ahead, digital investment platforms are going to be a big driver for the industry.

MF industry adds 14,450 new individual distributors in 2017

The mutual fund industry has added more than 14,450 individual distributors in the calendar year 2017, shows the latest AMFI data. The total number of individual ARN holders was 82,476 in December 2017. Experts say that the growing popularity of mutual funds has attracted many individuals to take up mutual fund distribution as a profession. Sundeep Sikka, CEO, Reliance Mutual Fund, attributed this growth to increasing popularity of mutual funds post demonetisation. After demonetisation, we have seen a shift from physical assets to financial assets. Many new investors are opting for the mutual fund route as a preferred way to invest. These investors need hand-holding by distributors. In addition, many fund houses have been encouraging people to take up mutual fund distribution as a full-time profession through branch offices.

NEWS UPDATE

25.9329.9318.735.36

22.8734.7827.4933.4923.2732.8820.8925.4126.9324.7131.4441.8630.1929.1814.0919.0415.3020.4830.6534.9121.3829.9916.5124.2328.6664.1327.5018.3928.2326.3619.7918.5324.4025.2424.9024.3623.0427.5414.5128.3425.9719.3025.8419.9527.5527.4725.5021.6517.3223.0523.3727.6124.5724.2625.0964.135.36158

29.8530.1227.1319.8720.8439.3822.9622.6521.9627.4719.8930.1324.6524.3220.9737.5830.9221.5316.0329.6225.3627.4423.9333.3528.3116.6624.2620.2026.7830.6821.5723.7225.6339.3816.03

3230.3327.45

27.2222.8516.8111.8923.3624.8125.5825.8617.3718.3616.2620.7721.7417.1521.1032.8720.5819.9113.7723.8316.6416.5419.5621.4015.0916.7516.3720.4419.7037.8521.3224.2523.9218.0121.5716.0617.0825.4413.9116.4919.3323.8011.6022.6813.5215.1521.7613.3418.0017.9217.8014.8414.3214.8818.6416.2515.0817.3919.4737.8511.60158

20.8321.2817.8716.7415.3923.9515.6819.0320.6618.2215.4922.9320.4621.1615.4524.9820.0319.9317.1023.5417.1326.6617.4725.7421.5515.3416.5819.0821.9821.1512.6617.4119.4826.6612.66

3216.9916.98

31.7722.83

---

21.0228.7224.0317.1219.0016.4621.8625.9114.6021.3336.7220.5620.3512.8324.7818.2418.7618.7021.7316.0120.9624.0922.5621.3940.1521.2324.4229.9615.7526.6517.4118.5126.0916.0116.0224.8322.8712.9124.6515.4215.1420.5612.66

-16.4516.0516.1513.7115.2225.5821.3314.3817.2720.6640.1511.67149

22.5123.2121.6817.1717.9721.6615.9718.9821.8418.6718.6520.9119.6820.7417.7923.8821.4520.5719.1022.1917.65

-17.2023.9524.1415.2917.9819.2322.8018.8213.2117.3019.7524.1413.21

3114.1314.58

29.7921.37

---

18.1327.0222.1916.0718.5016.0719.5923.7813.4519.2832.5119.1517.9012.0421.9317.7318.6916.7220.7515.5120.9224.3820.9420.1935.2118.4921.5726.3514.1324.6516.3617.9322.9516.4015.3623.53

-12.0722.9114.9014.2618.33

--

15.5814.2816.0713.5514.4224.6721.0414.1216.1719.3535.218.19143

21.0621.5921.9416.0218.1119.4515.4417.7120.7217.8518.2519.2517.9119.5817.6822.1320.2918.8317.2919.8616.44

-16.1122.2222.6214.5117.4717.6720.9716.62

-16.1418.7222.6214.51

3013.2113.58

-----

16.07-

18.2515.1418.9313.0817.2020.73

-17.23

-16.9215.4511.0519.6016.4116.6313.9121.0714.6819.8221.2917.3317.70

-15.5718.4922.1012.0222.5116.4816.1220.1116.0914.3720.69

-10.7418.61

-13.4216.33

--

13.6613.9815.7313.6513.2922.5521.1414.6514.6517.3127.2010.64116

18.2118.43

-13.8716.59

-15.5414.6818.54

-17.5417.7716.8817.5017.48

-18.96

-15.1218.2214.00

-14.0918.2020.6014.2515.6515.1218.5915.00

-14.2816.6020.6013.87

2511.9912.27

-----

14.31-

15.4614.1617.41

-16.06

--

16.72--

14.0510.8517.7415.01

-12.6918.5113.7617.3918.0814.9816.11

---

20.0011.2420.3115.6414.5118.6414.4513.5218.29

-9.4015.51

-12.2315.38

---

13.7814.81

-12.2319.7719.3614.2013.1015.5022.288.9789

15.9916.37

-12.3014.22

-15.08

---

16.2515.9615.39

-15.84

---

13.41-

12.10-

12.7415.2218.4213.6814.2314.0416.5014.53

-12.7114.7518.4212.10

2011.0211.36

SIP RETURN AS ON 31ST JANUARY 2018


Years

Invested Amount :


2017

1

1,20,000

2015

3

3,60,000

2013

5

6,00,000

Returns % - CAGR

2011

7

8,40,000

2008

10

12,00,000

2006

12

14,40,000

Mirae Asset Emerging Bluechip Fund - GrMirae Asset India Opportunities Fund - GrMotilal Oswal MOSt Focused 25 Fund - GrMotilal Oswal Most Focused Midcap 30 Fund - GrMotilal Oswal MOSt Focused Multicap 35 Fund - GrPrincipal Dividend Yield Fund - GrPrincipal Emerging Bluechip Fund - GrPrincipal Growth Fund GrPrincipal Large Cap Fund - GrReliance Equity Opportunities Fund - GrReliance Focused Large Cap Fund - GrReliance Growth Fund GrReliance Mid & Small Cap Fund - GrReliance Quant Plus Fund - GrReliance Regular Savings Fund Equity Plan - GrReliance Small Cap Fund - GrReliance Top 200 Fund - GrReliance Vision Fund GrSahara Growth Fund GrSahara Midcap Fund - GrSahara Wealth Plus Fund Variable - GrSBI Blue Chip Fund - GrSBI Contra Fund - Regular DivSBI Emerging Businesses Fund - Regular Plan - GrSBI Magnum Equity Fund - DivSBI Magnum Global Fund - DivSBI Magnum MidCap Fund - GrSBI Magnum Multicap Fund - GrSBI Magnum Multiplier Fund - DivSBI Small & Midcap Fund - GrSundaram Equity Multiplier Fund - GrSundaram Rural India Fund - GrSundaram S.M.I.L.E. Fund - GrSundaram Select Focus - GrSundaram Select MidCap - GrTata Dividend Yield Fund - GrTata Equity Opportunities Fund Regular Plan - GrTata Equity P/E Fund GrTata Ethical Fund - GrTata Large Cap Fund - GrTata Mid Cap Growth Fund - GrTata Retirement Savings Fund - Progressive Plan - GrTaurus Bonanza Fund GrTaurus Discovery Fund - GrTaurus Ethical Fund - GrTaurus Starshare GrowthTempleton India Growth Fund GrUnion Equity Fund - GrUnion Small and Midcap Fund - GrUTI Bluechip Flexicap Fund - GrUTI Dividend Yield Fund. - GrUTI Equity Fund - GrUTI India Lifestyle Fund - GrUTI Master Share - DivUTI Mid Cap Fund - GrUTI MNC Fund - GrUTI Opportunities Fund - GrUTI Top 100 Fund - GrAverage Return of Above FundsMaximum ReturnMinimum ReturnUniverseELSS / Tax Savings SchemesAditya Birla Sun Life Tax Plan - DivAditya Birla Sun Life Tax Relief 96 Fund - DivAxis Long Term Equity Fund - GrBaroda Pioneer Elss 96 - DivBNP Paribas Long Term Equity Fund - GrBOI AXA Tax Advantage Fund - Regular - GrowthCanara Robeco Equity Tax Saver Fund - DivDHFL Pramerica Tax Plan - GrDSP BlackRock Tax Saver Fund - GrEdelweiss ELSS Fund - GrFranklin India Taxshield GrHDFC Long Term Advantage Fund - GrHDFC Taxsaver - DivHSBC Tax Saver Equity Fund - GrICICI Prudential Long Term Equity Fund - Regular GrIDFC Tax Advantage (ELSS) Fund - Regular GrInvesco India Tax Plan - GrJM Tax Gain Fund - Growth OptionKotak Tax Saver - GrL&T Tax Advantage Fund - GrLIC MF Tax Plan GrMotilal Oswal Most Focused Long Term Fund - GrPrincipal Personal Tax Saver - GrPrincipal Tax Savings FundReliance Tax Saver Fund - GrSahara Tax Gain Fund GrSBI Magnum Tax Gain Fund - DivSundaram Diversified Equity (Tax Saver) Fund - DivTata India Tax Savings Fund Regular Plan - DivTaurus Tax Shield - GrUnion Tax Saver Scheme - GrUTI Long Term Equity Fund (Tax Saving) - GrAverage Return of Above FundsMaximum ReturnMinimum ReturnUniverseS&P BSE SENSEXNIFTY 50

RBI keeps key policy rate unchanged at 6% on inflationary concerns

The Reserve Bank kept the key policy rate unchanged at 6 per cent for the third consecutive time in view of firming inflation. The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel had last reduced the benchmark lending rate by 0.25 percentage points to 6 per cent last August, bringing it to a 6-year low. In its December review, the MPC had kept the benchmark interest rate unchanged on concerns of a possible price rise but had left the door ajar for a rate cut in future. Retail inflation crossed the RBI's comfort level and rose to 5.21 per cent in December on increase in prices of food items. The retail inflation, based on Consumer Price Index (CPI), was 4.88 per cent in November. In December 2015, it was 3.41 per cent.

FY17 GDP growth unchanged at 7.1% and GVA growth revised to 7.1% from 6.6%

The Central Statistics Office revised the Gross Domestic Product (GDP) growth rate for 2015-16 to 8.2 per cent from the earlier estimates of 8 per cent and kept the 2016-17 growth unchanged at 7.1 per cent. The real GDP or GDP at constant (2011-12) prices for the years 2016-17 and 2015-16 stands at Rs 121.96 lakh crore and Rs 113.86 lakh crore respectively, showing growth of 7.1 per cent during 2016-17 and 8.2 per cent during 2015-16, the CSO said in a statement. In terms of real GVA (gross value added), it said the GVA at constant (2011-12) basic prices grew 7.1 per cent in 2016- 17, as against a growth of 8.1 per cent in 2015-16. According to advance GDP estimates of CSO, the GVA growth on 2011-12 price was estimated at 6.6 per cent for 2016-17.

Eight core sector's growth slows to five-month low of 4% in December 2017

Growth of the eight core sectors slowed to a five-month low of 4% in December 2017 due to negative performance of segments like coal and crude oil, official data showed. The output growth recorded in December is the lowest since July 2017, when these core sectors had witnessed 2.9% expansion. These eight industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, had witnessed a growth

of 5.6% in December 2016. The output of coal and crude oil sectors contracted 0.1% and 2.1% respectively during the month under review.

India reaches 20 GW in installed solar capacity 4 years ahead of target

Cumulative solar installations in India have crossed the target of 20 GW four years ahead of schedule. According to Mercom’s India Solar Project Tracker, the utility-scale cumulative installations for India now stands at 18.4 GW, with rooftop solar accounting for another 1.6 GW. For the first time, solar was the top source of new power capacity additions in India during calendar year 2017, with preliminary figures gathered by Mercom showing that solar installations reached 9.6 GW and accounted for 45 per cent of total capacity additions.

India 6th wealthiest country with total wealth of $8,230 billion: Report

India has been ranked sixth in the list of wealthiest countries with total wealth of $8,230 billion, while the United States topped the chart, says a report. According to a report by New World Wealth, the United States is the wealthiest country in the world as the total wealth held in 2017 amounted to $64,584 billion, followed by China at the second place with $24,803 billion and Japan with $ 19,522 billion at third. Total wealth, refers to the private wealth held by all the individuals living in each country/city. It includes all their assets (property, cash, equities, business interests) less any liabilities. The report, however, excludes government funds from its figures.

India has enormous potential, says World Bank, projects 7.3% growth in 2018

With an ambitious government undertaking comprehensive reforms, India has 'enormous growth potential' compared to other emerging economies, the World Bank said, as it projected country's growth rate to 7.3 per cent in 2018 and 7.5 for the next two years. India, despite initial setbacks from demonetisation and Goods and Services Tax (GST), is estimated to have grown at 6.7 per cent in 2017, according to the 2018 Global Economics Prospect released by the World Bank. In 2017, China grew

at 6.8 per cent, 0.1 per cent more than that of India, while in 2018, its growth rate is projected at 6.4 per cent. And in the next two years, the country's growth rate will drop marginally to 6.3 and 6.2 per cent, respectively.

In a first since 2015, bad bank loans eased 0.4% to Rs 9.46 trn at Sept-end

India's stock of soured bank loans shrank slightly in the quarter to September last year, the first pullback since a drive to clean up record levels of bad debt began in 2015 and signalling that tighter rules and a new bankruptcy code may be starting to show results. Stressed loans, which include non-performing as well as restructured or rolled-over loans, eased 0.4 per cent from three months earlier to 9.46 trillion rupees ($148.3 billion) at the end of September, according to unpublished central bank data reviewed by Reuters.

India's tea exports hit 36-year high, reach at 241 mn kg in 2017

India's tea exports have touched a record high in 36 years at 240.7 million kilograms during calendar 2017, Tea Board data said. The previous record was in 1981 when exports had reached 241.25 million kilograms. As compared to 2016, exports in the following year was 8.20 per cent higher by 18.23 million kilograms, Tea Board said, adding that the value of exports was r47.3166 billion (r 4731.66 crore), which was an increase of 5.90 per cent over the previous year. Exports from north India touched 148.41 million kilograms, while that from south India was 92.27 million kilograms.

Over 67 FDI proposals worth r117 bn approved during Apr-Dec

As many as 67 foreign direct investment proposals worth r117 billion were approved during the first nine months of the ongoing financial year, the Rajya Sabha was informed. In a written reply, Minister of State for Finance P Radhakrishnan said, the government has cleared 67 FDI proposals worth r 117 billion during the period April 1, 2017 to December 31, 2017. An FDI proposal worth r 5.32 billion of Metaffinity Pvt Lt, an investment holding company, got the government's nod.

Aditya Birla Sun Life Advantage Fund GrAditya Birla Sun Life Dividend Yield Plus - GrowthAditya Birla Sun Life Equity Fund - GrAditya Birla Sun Life Frontline Equity Fund - GrAditya Birla Sun Life India GenNext Fund - GrAditya Birla Sun Life India Opportunities Fund - GrAditya Birla Sun Life Midcap Fund - GrAditya Birla Sun Life MNC Fund GrAditya Birla Sun Life Pure Value Fund - GrAditya Birla Sun Life Small and Midcap Fund - GrAditya Birla Sun Life Special Situations Fund - GrAditya Birla Sun Life Top 100 Fund - GrAxis Equity Fund - GrAxis Focused 25 Fund - GrAxis MidCap Fund - GrBaroda Pioneer Growth Fund - Growth PlanBaroda Pioneer Large Cap Fund - GrBaroda Pioneer Mid-cap Fund - GrBNP Paribas Dividend Yield Fund- GrBNP Paribas Equity Fund - GrBNP Paribas Midcap Fund - GrBOI AXA Equity Fund - Regular Plan GrCanara Robeco Emerging Equities Fund - GrCanara Robeco Equity Diversified - GrCanara Robeco F.O.R.C.E. Fund - Regular GrCanara Robeco Large Cap Plus Fund - GrDHFL Pramerica Large Cap Fund - GrDHFL Pramerica Midcap Opportunities Fund - GrDSP BlackRock Equity Fund - Reg. Plan - DivDSP BlackRock Focus 25 Fund - GrDSP BlackRock Micro Cap Fund - GrDSP BlackRock Opportunities Fund - GrDSP BlackRock Small and Mid Cap - Reg GrDSP BlackRock Top 100 Equity Fund GrEdelweiss Equity Opportunities Fund - Regular GrEdelweiss Large Cap Advantage Fund - GrEdelweiss Mid and Small Cap Fund - Regular GrEdelweiss Prudent Advantage Fund Plan A - GrEscorts Growth Plan GFranklin Build India Fund - GrFranklin India Bluechip Fund GrFranklin India Flexi Cap Fund - GrFranklin India High Growth Companies Fund - GrFranklin India Opportunities Fund-GrFranklin India Prima Fund GrFranklin India Prima Plus GrFranklin India Smaller Companies Fund - GrHDFC Capital Builder-GrHDFC Core and Satellite Fund - GrHDFC Equity Fund - DivHDFC Growth Fund GrHDFC Large Cap Fund - GrHDFC Mid Cap Opportunities Fund - GrHDFC Premier Multi-Cap Fund - GrHDFC Small Cap Fund - GrHDFC Top 200 Fund - DivHSBC Dynamic Fund - GrHSBC Equity Fund - GrHSBC India Opportunities Fund - GrHSBC Midcap Equity Fund - GrICICI Prudential Dynamic Plan - GrICICI Prudential Exports and Other Services Fund - GrICICI Prudential Focused Bluechip Equity Fund - GrICICI Prudential MidCap Fund - GrICICI Prudential Multicap Fund - GrICICI Prudential Select Large Cap Fund - Retail GrICICI Prudential Top 100 Fund - GrICICI Prudential Value Discovery Fund GrIDBI Diversified Equity Fund - GrIDBI India Top 100 Equity Fund - GrIDFC Classic Equity Fund - Regular Plan - GrIDFC Equity Fund - Regular Plan - GrIDFC Focused Equity Fund - Regular Plan - GrIDFC Premier Equity Fund - Regular Plan - GrIDFC Sterling Equity Fund - Regular GrIIFL India Growth Fund - GrIndiabulls Blue Chip Fund - GrInvesco India Business Leaders Fund - GrInvesco India Contra Fund - GrInvesco India Dynamic Equity Fund - GrInvesco India Growth Fund - GrInvesco India Mid N Small Cap Fund - GrInvesco India Midcap Fund - GrJM Equity Fund Growth OptionJM Multi Strategy Fund - Growth OptionKotak 50 Equity Scheme - DivKotak Classic Equity Fund - GrKotak Emerging Equity Scheme - GrKotak Midcap - GrKotak Opportunities Fund - GrKotak Select Focus Fund - GrL&T Business Cycles Fund - GrL&T Emerging Businesses Fund - GrL&T Equity Fund - GrL&T India Large Cap Fund - GrL&T India Special Situations Fund - GrL&T India Value Fund - GrL&T Midcap Fund - GrLIC MF Equity Fund GrLIC MF Growth Fund GrMirae Asset Emerging Bluechip Fund - GrMirae Asset India Opportunities Fund - GrMotilal Oswal MOSt Focused 25 Fund - GrMotilal Oswal Most Focused Midcap 30 Fund - Gr

130,176130,945132,782132,963133,271147,861132,445136,158141,139137,575136,664132,406135,267136,866133,482131,519129,244134,635134,261133,131132,345138,879135,220134,724133,651133,115133,385128,954134,336132,015133,489134,268131,320131,047138,324136,818142,946133,308136,688137,450132,978133,006136,327136,376134,054133,519135,086140,334135,333138,310137,690135,553133,081134,816146,596136,898134,454135,379135,288139,499133,469136,161136,162135,256132,563131,292132,056132,450132,425129,270135,871135,257141,331131,789140,146127,934135,723136,046142,438131,733138,769135,581134,858131,428130,988133,978136,529132,375133,638131,997132,654135,495141,548135,824133,230135,931135,601136,855133,323130,704135,494137,790131,304123,296

478,499455,653489,728464,680483,733494,581487,681453,480541,961540,509495,249463,816457,708494,948452,338454,972437,752455,428479,516450,189478,927480,685512,294463,538482,941455,853454,184444,626476,896454,566509,900494,933493,850447,265474,532463,578515,892444,071475,795498,843453,898451,987478,727470,826487,612460,195502,407504,287482,181492,717489,706460,803496,499469,054556,557482,881455,634475,614479,363517,954474,893457,258478,475489,966465,534446,424470,885445,761441,146439,500493,453467,277513,850450,869529,204455,196474,796461,962513,119455,400487,583482,773479,044430,405483,477456,511477,526494,309494,978477,380481,395486,354583,741471,182449,419487,946508,731533,793434,874436,421530,231499,876459,898428,944

1,054,175906,144

1,054,441941,052

1,031,2221,083,1051,105,2351,060,7051,279,8941,252,6431,075,118945,313886,512991,311984,164904,164858,751802,316998,280911,365

1,089,329935,269

1,264,892899,381

1,003,849877,817902,786

-974,132938,713

1,343,3711,035,8131,138,083862,984950,993913,024

1,208,589872,744

1,034,3121,166,149895,474944,551

1,065,856988,581

1,123,325974,263

1,220,3281,047,278981,769988,801961,085850,677

1,144,589934,210

1,174,995946,384855,730912,860993,712

1,232,251942,334

1,009,105949,727

1,135,716966,136865,868927,190985,729

-880,723969,147873,130972,488967,967

1,118,987-

912,031920,755

1,118,368891,522995,278

1,087,0081,084,823838,352

1,003,186912,165928,783

1,180,5971,129,751994,842

1,027,018--

956,421889,301

1,005,1541,173,6251,274,484820,112851,264

1,299,8961,052,219

--

1,781,6711,437,4151,791,6261,584,2771,801,3731,882,5071,870,8051,899,1312,270,5032,149,7641,785,0281,592,3031,472,348

--

1,436,5101,294,7101,122,0531,676,1311,531,9231,978,5561,497,8772,281,7881,454,4291,676,7571,415,2911,467,908

-1,569,5651,511,5102,417,2861,720,7831,941,1021,368,8421,542,5101,506,0922,166,9621,367,7841,695,3782,097,0991,440,4581,581,9751,893,0771,627,2402,028,9411,644,3082,295,9031,749,4371,540,8151,608,6991,517,5831,341,9782,030,6001,454,1661,969,2141,525,4541,310,1081,436,0781,644,3452,052,8321,556,6621,892,2691,568,3531,960,6201,611,8791,403,1451,533,5941,735,391

--

1,559,2641,384,1691,507,7431,669,6181,877,115

--

1,500,5131,874,0831,473,4671,649,3631,942,4541,909,7881,327,5221,625,7671,478,3781,518,9562,055,7591,926,5091,650,5981,749,008

--

1,559,0801,433,5981,688,5462,070,9072,235,2711,291,2051,361,4082,407,9631,791,277

--

3,079,8482,686,4423,127,4892,887,8853,486,0223,380,7703,433,4644,060,322

-4,016,0842,988,2582,873,507

---

2,379,117--

3,167,8952,680,9723,826,622

-4,677,2472,680,846

--

2,439,142-

2,797,703-

5,054,3913,064,7443,824,2982,377,8622,697,370

-4,138,876

-2,819,516

-2,581,7042,896,1653,545,1372,760,0813,961,3233,014,6324,548,3963,251,9522,723,9873,000,3312,676,3232,225,8834,212,9502,536,483

-2,758,5862,079,7162,352,7862,833,3003,364,2552,855,5983,524,463

-3,514,3472,858,560

-2,726,3653,624,773

--

2,568,2312,324,5582,491,5993,356,576

----

3,436,6742,588,2982,915,765

-3,820,0362,089,673

-2,521,4292,633,8523,718,7823,584,9452,890,529

---

2,830,9992,587,0683,107,492

-4,205,5252,108,2642,289,768

----

3,937,5823,715,8314,127,0843,999,6904,749,7474,181,1344,656,3405,599,864

---

3,795,834---

3,195,557--

4,251,7523,475,347

--

6,096,7553,663,615

--

3,230,334-

3,869,375--

4,071,933-

3,260,893----

3,588,058-

3,482,1133,861,687

-3,522,4065,147,5594,111,6225,894,8794,392,2153,539,8344,117,4633,663,2042,784,028

-3,308,165

-3,827,084

-3,082,5853,654,0094,138,8523,893,8174,557,834

-4,423,7303,725,923

-3,614,2814,988,038

--

3,296,456--

5,041,136---------

2,524,677-

3,343,7453,454,049

-4,568,4403,883,641

---

3,843,926---

5,570,2532,669,7362,870,339

----


Years

Invested Amount :


2017

1

1,20,000

2015

3

3,60,000

2013

5

6,00,000

Investment Value e

2011

7

8,40,000

2008

10

12,00,000

2006

12

14,40,000

SIP VALUE AS ON 31ST JANUARY 2018 NEWS UPDATERBI keeps key policy rate unchanged at 6% on inflationary concerns




















Q. The year 2017 has again been a great one for the equity markets, as it has been doing for quite some time. What is your expectation for year 2018?Answer: The year 2017 has been a rewarding year for equity investors. From the lows of demonetisation and the withdrawal of easy global monetary policies the Indian equity market, year-to-date gained 29%1 and remained one of the best performing emerging markets2. In our view India had done a remarkable job in repairing its macro economy between CY 2014 and H1 2017. We believe that the best of the macroeconomic improvement is behind us and that from CY 2018 to 2020 we may see some deterioration in a few macro variables, though not to the same extent as the taper tantrum period. Lower commodity prices were the prime reason for India’s improved basic balance of payments but the recent run in crude oil prices poses a threat to the improved current account deficit.The private sector as well as the government had shied away from spending for a better part of the last three years. But the government is now finally trying to stimulate the economy through various spending measures such as farm loan waivers, policy push on affordable housing, the Bharatmala project, recapitalization of public sector banks, etc. All of these measures could lead to a higher velocity of money and ultimately could converge into better near term growth. This may show up in corporate profitability and earnings growth albeit at the cost of deteriorating macro variables.Key themes for 2018:• Macro variables may not improve from here, as seen in CY 2014 - H12017 • Pollution clampdown will gather pace in China and India aiding select domestic sectors • Pickup in discretionary consumption led by urbanisation1 Nifty 50 returns as of December 29, 20172 Bloomberg• Doubling of farm income to aid rural consumption • Financialisation to gather pace - domestic flows to stay robust • Earnings may have finally bottomed outConsumer price inflation is likely to average around 5% in financial year (FY) 2019, up from an estimated 3.7% in FY 2018. Our base case remains for a rate hike in the next 6-9 months, possibly in Q1 FY 19. Nevertheless, we are not expecting an aggressive hiking cycle as the RBI has largely held its ground, and refrained from any significant easing as inflation fell. We expect 10 year G-Sec bond yields to slowly inch upwards in the next 6-9 months from 7.75-8.0% on account of rising inflation and interest rates.Earnings may have finally bottomed out but dispersion in earnings will continue, we see headline earnings growth likely to return, given; (a) sequential improvement in earnings (b) the return of inflation; and (c) improved demand from favourable policy and tax changes i.e. consumption push in domestic economy, better global growth & stressed asset resolution.From the perspective of capital markets and investors, since higher inflation is negative for interest rates, fixed income as an asset class is expected to continue its underperformance and at the same time equities should continue to do well because the early stages of inflation tend to be good for corporate earnings. We are currently in this stage where inflation has a positive impact on corporate earnings. For this reason we are bullish on equities.In our view the macro variables - current account deficit, inflation, fiscal deficit and oil price - which behaved well in the last three years are exhibiting mean reversion and micros (read earnings) are likely to do well. In this context we believe the year 2018 could be the year of the ‘U-turns’ for both macro and micros. For 2018 we believe the themes stated above will drive our investment decisionsQ. The Q3 GDP growth stood at 6.3%, much higher than 5.7% in Q2. What is the market expectation going forward & when can we possibly reach the 8% rates again?Answer: The QE Sep 2017 GDP print of 6.3% yoy showcases gradual recovery in the manufacturing and investment, but we would not be lured by these numbers as these are lag indicators. The macroeconomic indicators we track are showing signs of recovery in most areas of consumption while some industries are being led by low base of demonetisation. Cement and steel production, oil consumption and passenger vehicle sales, as well as credit growth witnessed healthy recovery. Manufacturing purchasing managers’ indices indicated expansion in core industries. As the economy recovers from the impact of demonetization and the transitory disruption caused by implementation of GST we expect the recovery in macroeconomic indicators to continue and help attain GDP growth rate of 7% - 7.5% in CY2018.Q. What will be the consequences of merger of the same type of mutual funds under SEBI's mandate for investors? Should they be worried about it at all?Answer: The SEBI categorisation exercise was aimed towards bringing in uniformity in the investment strategies offered and to reduce the number of duplicate funds in each category. As a result investors should be able to clearly identify categories / funds as per their investment needs given that there will be apple to apple comparison between the funds and that coverage by rating agencies on funds will be uniform going forward.Investors may need to keep an eye out for any changes in investment themes and re-evaluate the fund and its fitment in their investment portfolio.Q. Investors are today investing nearly Rs.6,000 crores every month in equity markets via SIPs. Do you feel that investors have finally embraced mutual funds or is there still a long way to go?Answer: We believe that mutual funds have a long way to go, although they have found more favour with investors.We believe the structural and cyclical factors for now favour the rising household savings; the share of financial savings has been increasing within household savings and equities have been occupying a larger share in financial savings.Q. From a retail investor's perspective, what should be his investment strategy at this moment? How should he invest & what segments of the market should he be looking into?Answer: An investor should consider having a well thought out investment philosophy and process should be followed diligently in all phases of the market. Investors are advised to consult a financial planner in order to advise them on wealth creation plans and asset allocation per their risk appetite. We believe that it is one of the key criteria for success. Equity is a long term asset class where an Investor should ideally have an investment horizon of at least 3 to 5 years. While near term valuations are higher than the long term average, we believe earnings growth is likely to accelerate over next 2-3 years period.From that perspective, we believe, Indian equities outlook is positive from the next 2-3 year horizon. One of the disciplined ways to participate in the Indian equities is through SIPs facility available with Mutual Funds.Q. What is your investment strategy at present and how are you investing the new funds being received?Answer: At BNP Paribas Asset Management, we follow the ‘BMV’ investment philosophy which stands for Business, Management and Valuation. We, as a team, have stuck to this philosophy and focused on identifying superior and sustainable earnings growth companies. The framework helps us in bottom-up stock picking and at the same time helps us to weed out weak businesses.In the normal course of business we tend to deploy new funds in a staggered manner. However if the market provides any new opportunity or in the event of a sharp correction we could expedite the deployment. We don't believe in taking cash calls or timing the markets.

SIP VALUE AS ON 31ST JANUARY 2018


Years

Invested Amount :


2017

1

1,20,000

2015

3

3,60,000

2013

5

6,00,000

Investment Value e

2011

7

8,40,000

2008

10

12,00,000

2006

12

14,40,000

NEWS UPDATE

Motilal Oswal MOSt Focused Multicap 35 Fund - GrPrincipal Dividend Yield Fund - GrPrincipal Emerging Bluechip Fund - GrPrincipal Growth Fund GrPrincipal Large Cap Fund - GrReliance Equity Opportunities Fund - GrReliance Focused Large Cap Fund - GrReliance Growth Fund GrReliance Mid & Small Cap Fund - GrReliance Quant Plus Fund - GrReliance Regular Savings Fund Equity Plan - GrReliance Small Cap Fund - GrReliance Top 200 Fund - GrReliance Vision Fund GrSahara Growth Fund GrSahara Midcap Fund - GrSahara Wealth Plus Fund Variable - GrSBI Blue Chip Fund - GrSBI Contra Fund - Regular DivSBI Emerging Businesses Fund - Regular Plan - GrSBI Magnum Equity Fund - DivSBI Magnum Global Fund - DivSBI Magnum MidCap Fund - GrSBI Magnum Multicap Fund - GrSBI Magnum Multiplier Fund - DivSBI Small & Midcap Fund - GrSundaram Equity Multiplier Fund - GrSundaram Rural India Fund - GrSundaram S.M.I.L.E. Fund - GrSundaram Select Focus - GrSundaram Select MidCap - GrTata Dividend Yield Fund - GrTata Equity Opportunities Fund Regular Plan - GrTata Equity P/E Fund GrTata Ethical Fund - GrTata Large Cap Fund - GrTata Mid Cap Growth Fund - GrTata Retirement Savings Fund - Progressive Plan - GrTaurus Bonanza Fund GrTaurus Discovery Fund - GrTaurus Ethical Fund - GrTaurus Starshare GrowthTempleton India Growth Fund GrUnion Equity Fund - GrUnion Small and Midcap Fund - GrUTI Bluechip Flexicap Fund - GrUTI Dividend Yield Fund. - GrUTI Equity Fund - GrUTI India Lifestyle Fund - GrUTI Master Share - DivUTI Mid Cap Fund - GrUTI MNC Fund - GrUTI Opportunities Fund - GrUTI Top 100 Fund - GrAverage Value of Above FundsMaximum ValueMinimum ValueUniverseELSS / Tax Savings SchemesAditya Birla Sun Life Tax Plan - DivAditya Birla Sun Life Tax Relief 96 Fund - DivAxis Long Term Equity Fund - GrBaroda Pioneer Elss 96 - DivBNP Paribas Long Term Equity Fund - GrBOI AXA Tax Advantage Fund - Regular - GrowthCanara Robeco Equity Tax Saver Fund - DivDHFL Pramerica Tax Plan - GrDSP BlackRock Tax Saver Fund - GrEdelweiss ELSS Fund - GrFranklin India Taxshield GrHDFC Long Term Advantage Fund - GrHDFC Taxsaver - DivHSBC Tax Saver Equity Fund - GrICICI Prudential Long Term Equity Fund - Regular GrIDFC Tax Advantage (ELSS) Fund - Regular GrInvesco India Tax Plan - GrJM Tax Gain Fund - Growth OptionKotak Tax Saver - GrL&T Tax Advantage Fund - GrLIC MF Tax Plan GrMotilal Oswal Most Focused Long Term Fund - GrPrincipal Personal Tax Saver - GrPrincipal Tax Savings FundReliance Tax Saver Fund - GrSahara Tax Gain Fund GrSBI Magnum Tax Gain Fund - DivSundaram Diversified Equity (Tax Saver) Fund - DivTata India Tax Savings Fund Regular Plan - DivTaurus Tax Shield - GrUnion Tax Saver Scheme - GrUTI Long Term Equity Fund (Tax Saving) - GrAverage Value of Above FundsMaximum ValueMinimum ValueUniverseS&P BSE SENSEXNIFTY 50

133,724140,545136,394139,818133,957139,473132,565135,193136,071134,787138,651144,517137,938137,363128,557131,486129,275132,325138,201140,622132,853137,828129,992134,508137,063156,633136,399131,100136,820135,741131,924131,185134,612135,095134,901134,584133,819136,422128,807136,881135,518131,637135,442132,020136,429136,379135,246133,014130,473133,828134,011136,463134,705134,526134,978156,633123,296

158

137,744137,898136,186131,972132,537143,133133,773133,591133,190136,381131,983137,908134,753134,563132,612142,126138,356132,944129,711137,616135,165136,363134,338139,740136,865130,080134,527132,163135,981138,220132,967134,217135,300143,133129,711

32138,017136,369

503,370513,352518,685520,646463,496469,975456,404485,866492,377462,074488,067571,171484,606480,151440,605506,545458,795458,145477,860490,103448,916459,541457,106483,682478,737608,966489,572509,452507,220467,668491,239455,079461,641517,716441,486457,880476,328506,335427,179498,728439,061449,326492,523437,911467,612467,100466,275447,326444,048447,572471,785456,339448,841463,668477,800608,966427,179

158

486,233489,289466,733459,454450,820507,405452,698474,322485,100469,031451,436500,450483,770488,472451,242514,526480,924480,271461,781504,617462,001526,213464,195519,762491,112450,515458,445474,663494,009488,416433,708463,804477,669526,213433,708

32461,097461,009

-1,007,3221,210,1621,082,766916,867959,599902,230

1,028,0051,132,295862,278

1,014,8591,457,719996,251991,365825,517

1,102,264942,011953,852952,670

1,024,699892,264

1,006,0711,084,2861,045,2321,016,5001,576,7521,012,4081,092,9561,245,929886,639

1,152,188923,239948,251

1,137,057892,261892,649

1,103,6141,053,141827,288

1,098,882879,609873,570996,288822,222

-901,912893,168895,498843,564875,302

1,123,4441,014,850857,645920,030

1,005,5941,576,752802,316

149

1,044,1061,061,7351,023,572917,797935,880

1,022,996891,527959,032

1,027,424951,810951,352

1,004,796975,341

1,000,684931,890

1,078,9561,017,958996,500961,800

1,036,059928,642

-918,581

1,080,7381,085,494876,910936,154964,862

1,051,455955,442833,312920,796978,826

1,085,494833,312

31852,312861,794

-1,597,1642,185,2341,843,6621,484,4611,618,0361,484,4581,681,6051,950,0191,352,6961,663,2432,646,8731,656,0391,583,9531,286,5581,826,5501,574,5721,629,0711,519,2941,752,3381,455,1261,762,6441,991,6441,763,9341,717,9652,906,2111,617,7921,803,7822,134,2981,385,6672,010,2851,500,0901,585,8451,893,8571,501,9251,447,8211,932,643

-1,288,0361,890,7721,424,2661,392,2901,608,261

--

1,459,1011,393,2341,484,6731,357,3181,399,9032,012,2761,770,2381,385,3161,489,9181,689,7552,906,2111,122,053

143

1,771,2911,805,2161,827,2221,481,7671,595,9891,673,1681,451,4641,573,3651,750,6071,581,2251,603,7321,661,4511,584,5601,681,4611,571,8771,839,8221,724,2011,636,8751,550,3401,697,9421,504,410

-1,486,4311,845,9101,871,7621,404,4581,560,0921,571,3521,766,1401,513,748

-1,488,4771,635,8791,871,7621,404,458

301,341,4421,358,788

-2,776,679

-3,122,3682,642,5583,238,8172,366,8372,951,3233,567,962

-2,955,959

-2,906,1772,686,5732,124,8883,356,8552,828,0622,862,2882,473,5993,634,1112,578,5203,396,5923,677,0972,971,2303,030,955

-2,703,7803,162,1203,840,4932,237,4453,927,9822,838,7232,784,0643,449,5932,779,8322,536,3293,560,849

-2,090,8653,182,879

-2,410,7472,815,303

--

2,441,6572,483,3322,726,5712,440,0202,394,2113,935,0553,646,9532,573,3792,573,9113,024,4005,054,3912,079,716

116

3,115,0093,152,432

-2,468,3362,856,287

-2,698,7352,577,6713,170,382

-3,004,7243,041,7472,899,9432,998,8362,994,843

-3,243,300

-2,639,9603,116,7802,486,093

-2,498,5733,112,7283,542,0442,519,4822,714,9242,639,2313,180,0192,621,858

-2,523,0682,872,6803,542,0442,468,336

252,233,3972,266,870

-3,579,386

-3,862,0083,544,3224,397,141

-4,019,395

--

4,199,267--

3,517,2232,851,9264,496,1873,748,189

-3,217,5474,733,8433,452,5154,391,5094,599,1493,740,5534,032,189

---

5,232,0032,925,7025,341,7633,910,1183,627,9554,775,2653,613,5383,398,1174,665,864

-2,594,3953,876,341

-3,121,3853,841,462

---

3,456,6433,698,599

-3,119,7725,151,7925,012,6473,552,7283,305,4613,942,3416,096,7552,524,677

89

4,002,4214,104,358

-3,135,5433,558,485

-3,767,507

---

4,069,9083,992,5123,844,717

-3,960,724

---

3,371,764-

3,093,635-

3,227,0453,802,7224,707,3163,432,6583,561,4593,516,1064,139,5333,632,202

-3,221,4913,707,1054,707,3163,093,635

202,883,9982,947,658

RBI keeps key policy rate unchanged at 6% on inflationary concerns




















DISCLAIMER: We have taken due care and caution in compilation of this booklet. The information has been obtained formvarious reliable sources. However it does not guarantee the accuracy, adequacy or completeness of any information and are not responsible for any errors or omissions of the results obtained from the use of such information. Investors shold seek proper financial advise regarding the appropriateness of investing in any of the schemes stated, discussed or recommended in this newsletter and should realise that thestatements regarding future prospects may or may not realise. Mutual fund investments are subject to market risks. Please read the offer document carefully before investing. Past performance is for indicative purpose only and is not necessarily a guide to the future performance.

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