TIME TO SAVE TAXES & CREATE WEALTH

Transcription

1 Mob.: B2, Mansarover Garden, New Delhi 0 gurleen@hareepatti.com Website: Gurleen Kaur CEO OUR SERVICES RETIREMENT PLANNING CHILD EDUCATION PLANNING INSURANCE PLANNING TAX PLANNING FINANCIAL PLANNING NRI INVESTMENT PLANNING CHARITABLE TRUST INVESTMENT PLANNING INVESTMENT OPTIONS MUTUAL FUNDS LIFE INSURANCE GENERAL INSURANCE TAX SAVING & RBI BONDS For private circulation only FEBRUARY 20 TIME TO SAVE TAXES & CREATE WEALTH It is rush time. Many tax payers are running to find the best way to save taxes. There are many products out there that can help you to save taxes. But more importantly, as investors, we must ask ourselves how many of them can really help create wealth in long term and not just save taxes? After all, who would mind money in not one but two pockets? As you may know, there are many sections in the Income Tax Act that can help you save tax by either spending money for specific purposes or investing money in specific instruments with the taxable income reduced to that extent. Given the plethora of taxsaving investment products available, it is hard to choose given that all the products have their pluses & minuses. Even if we apply the four parameters of expected returns, safety, liquidity and taxability of income, the confusion still persists. In this article, we make our way through this clutter and present to you an ideal approach to tax saving and an ideal choice from the investment options available. THE RIGHT APPROACH The best approach to tax saving will be by changing the question at hand. Think that you are not looking to save taxes but to create long term wealth. Doing so will remove few options and also help focus clearly on our need. The word longterm is essential as we need to create 'real returns' above the inflation levels in order to really add to our wealth and this can only happen over a long period of time. Making decent 'real' returns after taxes is crucial as with negative 'real' returns, (returns less than inflation) net of taxes, you will be loosing your hard earned money's worth. That is what can really happen with 'assured or fixed' returns offered by many options even though they look very safe on the face. If we agree to this approach, we can proceed further to look at the options available to us. INVESTMENT PRODUCTS UNDER SECTION 80C The following is a brief presentation of the taxsaving investment options available u/s 80C. Section 80C PPF NSC Post Office Time Deposit Traditional Insurance Tax Saving Bank FD Sr. Citizen Saving Scheme ELSS Minimum Amount R00 pa R0 R200 Depends on Policy R0 (Depends on Bank) R,000 R00 (SIP) / R,000 (Lumpsum) Maximum Amount R.L pa (Annual Premium max % of Cover) R.L pa RL / Returns 8.0% 8.0% ( yr) 8.80% ( yr) 8.0% Approx.4% (depends on Plan) 8.% Sr Cit 9.2% (Depends on Bank) 9.20% Market Dependent Lockin years, years years Deduction claimed to be taxed if Policy terminated before 2 yrs years years years Taxability Tax Free Maturity proceeds of Life Insurance policy exempt Tax Free As we can see, most of the options have a long lockin period which is really not desired. Further with assured /fixed interest bearing instruments, looking in terms of real returns, post tax is very critical. Take for instance, Tax Saving Bank FD. With 8.% taxable interest rate, the post tax returns is of only 6.0% with 0% tax bracket. Deduct the inflation figures of say % (it has be far more in past few years) and you are getting a negative real return of over %. So aren't we really loosing our money's worth here?

2 EQUITY LINKED SAVINGS SCHEME (ELSS): The Advantages: We are not hesitant in stating our preference for ELSS. The benefits offered by ELSS make it very obvious for anyone to prefer ELSS from among the options available. ELSS offers the potential for best longterm returns which are taxfree as well. Given below is a gist of the advantages offered by ELSS... Unique product with twin benefits of Tax Savings + Wealth Creation Least LockIn period of only years Offers potential for good 'real returns' where upside is market dependent and not capped Trully Tax Free as there is no longterm capital gains and dividends are also taxfree Choice of investing SIP and/or Lumpsum and Redeeming Redemption or Dividend Payout Being a mutual fund scheme, all its' advantages can be enjoyed Wide choice of schemes Portfolio diversification Professional Fund Management Very Low Minimum Investment Amount Operational Ease & Comfort. Transaction can be even done online through the Demat mode. High degree of Transparency Well Regulated The Performance: ELSS has historically outperformed other options in creating wealth for investors. However, given that it is a pure equity product, we suggest that investment period should be ideally extended beyond years as there is no compulsion for redemption after three years and one may choose to continue being invested or switch to any other scheme. Here is a snapshot of the past performance of ELSS... % Annualised Returns As on st Jan 20 Average Returns for ELSS (2 schemes) S&P BSE SENSEX SIP Investment years years Lumpsum Investment years years How much tax you can save? Individual investors can claim upto R.0 lakh of ELSS investment as a deduction from your gross total income in a financial year u/s 80C of the Income Tax Act. This is the new limit which was increased by R0,000 last year. Thus, for an investor falling under the highest tax slab, the total tax savings can be up to R46,0/ if the entire eligible amount of R. lakhs is invested. The following matrix spells out the tax savings for F.Y. 20 for individuals falling under different tax slabs. ELSS Investments made in FY >> % Tax Slab 20% Tax Slab 0% Tax Slab 0,000 0,000 0,000,0,00,40,00 20,600 0,900,40 0,900 46,0 Conclusion: As we say, there is no one size that fits all. ELSS is an obvious choice for tax saving purpose but its' suitability has to be considered as per your risk profile. Time is less and we hope you make the right, informed decision in time before st March. For those who may choose to not see the lights may be left searching for answers. So let us bathe ourselves in light of these priceless words said by the masters. To keep things simple, we are only listing few important ones for our readers. PRICELESS WEALTH CREATION WISDOM FROM THE MASTERS Well to begin with this is just a compilation & commentary on what the 'famous investment gurus' have said on wealth creation. But dig deeper and you will priceless guiding lights that would make your walk easier and less bumpy on the path to getting wealthy. The investor s chief problem even his worst enemy is likely to be himself. Benjamin Graham, Investor, Professor & Author, Guru to Warren Buffet & considered as the father of value investing. Investor behaviour has been a subject of deep study with many authors and finance experts reflecting their opinions on it. As is most commonly seen, investor behaviour often deviates from rational and reason. The individual personality traits matter a lot while decision making, often complicating them.

3 The personality is subject to influences, ego and emotions like impatience, fear, greed and hope. These factors often cloud the facts for decisions which end up being judgemental and biased resulting into wrong decisions. This famous statement by Graham rightly highlights this point. The right approach would be to keep emotions out of the equation and make decisions purely on facts and logic. It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." George Soros, Investor, Business Magnet, Philanthropist & Author, he is the chairman of Soros Fund Management, one of the richest persons and widely followed for his views on investing and economics. There is another way at looking at this. As smart investors, we should look to allocate most money to the best ideas or assets that have potential to deliver the highest. At the same time, we should also ensure that our mistakes are not so costly that they harm our wealth noticeably. It is also a pointer to how most of us view and manage our portfolio which are often heavily skewed in favour of fixed income /debt products /physical assets, etc. even though our risk profile may permit a far more balanced asset allocation. Most of us have a small exposure to equities when we consider our total portfolio but still are most worried about it on a daily basis. Given this mindset, in the context of the quote, we must question ourselves: what are the costs and profits of what we are doing with our overall portfolio? We should stop worrying beyond reason, for a small portion of our wealth in say equities and instead look at the big picture. Let us focus on diluting those debt products for short term needs and lets give adequate time to equities to give compounded returns in long term. The sooner we reflect upon George's wisdom in our lives, the better will it be for our own wealth creation goal. You only have to do a very few things right in your life so long as you don t do too many things wrong. Warren Buffet, Investor, Business Magnet & Philanthropist, widely regarded as the most successful investor, Warren is one of the richest persons globally. Warren has the skill of telling the most important things in the most simple way. This quote and many others similar, shows Warren's belief that that wealth creation was not a forte for the intelligent but for the disciplined. Anyone of us can be wealthy in our lives and it can be done provided we do few important things in our lives and not do the wrong things. This is clearly in reference to how investors approach their wealth /portfolio management wherein we try to time the markets not realising that it is staying invested for long term that really helps create wealth. If we add all the costs of all the wrong decisions, market timings, etc. done in past by us, put together, they would most likely amount to lots of lost wealth. The important principles of starting early, investing regularly and right asset class ('equities') ought to be highlighted here. These are the right things that we all should aim for. We need not be scientists or finance experts or even literate to follow these principles to be truly wealthy. Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell. Warren Buffet You won't mind us quoting Warren here again. It is probably one of the greatest mysteries wherein on one hand almost all investors idolise Warren but on the other hand, most of us do not truly follow his wisdom and advice. One of the most often quoted advice /wisdom from Warren is about how we can really create wealth in long term. It is about buying into good businesses and holding them for a very long term without worrying about what happens tomorrow. The above quote clearly reflects how most of us are often worried about short term movements while the true need of the hour is to keep invested for the long term and being passive. Investors have to believe that, if they are investing for long term for say + years, short term movements do not really matter. Stop trying to predict the direction of the stock market, the economy or elections he says while attributing patience and long term holdings as among the most important factors behind his success. In brief.. Keeping in mind the spirit of this article, we have only given only four essential quotes. The idea was to keep the focus on the essential part and not flirt with other less important things. The wisdom from the above quotes focusses on the key essentials managing investor behaviour, looking at the bigger picture, doing the right things and then having patience to let investments deliver. Out together, these ideas take form as the basic principles, a guiding light on path to becoming rich. And there is really nothing more that we should add to it.

4 SIP RETURN AS ON ST JANUARY 20 MF NEWS Starting February Month of Axis Equity Fund Gr Axis MidCap Fund Gr Baroda Pioneer Growth Fund Growth Plan Birla Sun Life Advantage Fund Gr Birla Sun Life Dividend Yield Plus Growth Birla Sun Life Equity Fund Gr Birla Sun Life Frontline Equity Fund Gr Birla Sun Life India Opportunities Fund Gr Birla Sun Life Long Term Advantage Fund Gr Birla Sun Life Midcap Fund Gr Birla Sun Life MNC Fund Gr Birla Sun Life Pure Value Fund Gr Birla Sun Life Small and Midcap Fund Gr Birla Sun Life Special Situations Fund Gr Birla Sun Life Top 0 Fund Gr BNP Paribas Dividend Yield Fund Gr BNP Paribas Equity Fund Gr BNP Paribas Midcap Fund Gr BOI AXA Equity Fund Regular Plan Gr Canara Robeco Emerging Equities Fund Gr Canara Robeco Equity Diversified Gr Canara Robeco F.O.R.C.E. Fund Regular Gr Canara Robeco Large Cap Plus Fund Gr DSP BlackRock Equity Fund Reg. Plan Div DSP BlackRock Focus 2 Fund Gr DSP BlackRock Micro Cap Fund Gr DSP BlackRock Opportunities Fund Gr DSP BlackRock Small and Mid Cap Reg Gr DSP BlackRock Top 0 Equity Fund Gr DWS Alpha Equity Fund Gr DWS Investment Opportunity Fund Gr Edelweiss Diversified Growth Equity Top 0 Fund Gr Franklin India Bluechip Fund Gr Franklin India Flexi Cap Fund Gr Franklin India High Growth Companies Fund Gr Franklin India Opportunities FundGr Franklin India Prima Fund Gr Franklin India Prima Plus Gr Franklin India Smaller Companies Fund Gr HDFC Capital BuilderGr HDFC Core and Satellite Fund Gr HDFC Equity Fund Div HDFC Growth Fund Gr HDFC Large Cap Fund Gr HDFC Mid Cap Opportunities Fund Gr HDFC Premier MultiCap Fund Gr HDFC Small and Mid Cap Fund Gr HDFC Top 200 Fund Div HSBC Equity Fund Gr HSBC India Opportunities Fund Gr ICICI Prudential Dynamic PlanCum ICICI Prudential Exports and Other Services Fund Gr ICICI Prudential Focused Bluechip Equity Fund Gr ICICI Prudential MidCap Fund Gr ICICI Prudential Target Returns Fund Retail Gr ICICI Prudential Top 0 Fund Gr ICICI Prudential Top 200 Fund Gr ICICI Prudential Value Discovery Fund Gr IDFC Classic Equity Fund Regular Plan Gr IDFC Equity Fund Regular Plan Gr IDFC Imperial Equity Fund Regular Plan Gr IDFC Premier Equity Fund Regular Plan Gr IDFC Sterling Equity Fund Regular Gr JP Morgan India Equity Fund Gr JP Morgan India Mid and Small Cap Fund Gr Kotak 0 Equity Scheme Div Kotak Classic Equity Fund Gr Kotak Emerging Equity Scheme Gr Kotak Midcap Gr Kotak Opportunities Fund Gr Kotak Select Focus Fund Gr L&T Equity Fund Gr L&T India Large Cap Fund Gr L&T India Special Situations Fund Gr L&T India Value Fund Gr L&T Midcap Fund Cum Mirae Asset Emerging Bluechip Fund Gr Mirae Asset India Opportunities Fund Gr PineBridge India Equity Fund Standard Gr Pramerica Large Cap Equity Fund Gr Principal Dividend Yield Fund Gr Principal Emerging Bluechip Fund Gr Principal Growth Fund Gr Principal Large Cap Fund Gr Quantum Long Term Equity Fund Gr Reliance Equity Opportunities Fund Gr Reliance Focused Large Cap Fund Gr Reliance Growth Fund Gr Reliance Mid & Small Cap Fund Gr Reliance Quant Plus Fund Gr Reliance Regular Savings Fund Equity Plan Gr Returns % CAGR Mutual fund exposure to IT stocks drops to R4,000 crore in December Mutual fund managers slashed their exposure in software stocks to nearly R 4,000 crore in December, after raising it for six consecutive months. According to data available with market regulator Sebi, the funds' investment in software or IT stocks stood at R,90 crore as on December,, accounting for.20 per cent of their total equity assets under management (AUM) of R. lakh crore. In comparison, the MF industry's exposure to software sector had reached an alltime high of R4,64 crore in November this year. Market participants attributed the current decline to profitbooking. However, MF managers raised their exposure in bank stocks to a record high of nearly R,000 crore in December, which is the highest among all the sectors. Among others, MFs have an exposure of R2,4 crore in pharma, auto (R20,99 crore) and finance (R9,89 crore). MF equity folio count surges by over lakh in AprilDecember Equity mutual funds witnessed an addition of over lakh investor accounts or folios in the first nine months of the current fiscal () in view of sharp rally in the stock market. Folios are numbers designated to individual investor accounts, though one investor can have multiple folios. According to SEBI data on investor accounts with 4 fund houses, the number of equity folios rose to,0,92,99 as of last monthend from 2,9,80,922 for the entire last fiscal ended March,, registering a gain of,,069 folios till December, the nine month period of the current fiscal. Industry experts said that a strong rally in the equity market and the consequent rise in investors' interest led to a sharp increase in retail folios. Moreover, mutual funds industry reported net inflows of over R0,000 crore in equity funds in the AprilDecember period of the current fiscal (), which helped the industry grow its folio count. AMFI asks AMCs to withdraw dividend reinvestment option in ELSS To avoid confusion in the minds of investors, AMFI has asked AMCs to discontinue dividend reinvestment option in ELSS schemes at the earliest. Since dividends are reinvested in the scheme, the units get lockedin for three years. After examining the issue, the AMFI committee on Operations and Compliance recommended that dividend reinvestment should be discontinued to avoid any confusion in the minds of investors. Soon, all ELSSs will come with two options growth and dividend payout. In future, dividends will be credited to the bank account of the investors. Consequently, the SIPs that were registered under the reinvestment option will be processed under the dividend payout option.

5 SIP RETURN AS ON ST JANUARY 20 NEWS UPDATE Starting February Month of Reliance Small Cap Fund Gr Reliance Top 200 Fund Gr Reliance Vision Fund Gr Religare Invesco Contra Fund Gr Religare Invesco Equity Fund Gr Religare Invesco Growth Fund Gr Religare Invesco Midcap Fund Gr Sahara Growth Fund Gr Sahara Midcap Fund Gr Sahara Wealth Plus Fund Variable Gr SBI Contra Fund Regular Div SBI Emerging Businesses Fund Regular Plan Gr SBI Magnum Blue Chip Fund Gr SBI Magnum Equity Fund Div SBI Magnum Global Fund Div SBI Magnum MidCap Fund Gr SBI Magnum Multicap Fund Gr SBI Magnum Multiplier Plus 9 Div SBI Small & Midcap Fund Gr Sundaram Equity Multiplier Fund Gr Sundaram Growth Fund Gr Sundaram Rural India Fund Gr Sundaram S.M.I.L.E. Fund Gr Sundaram Select Focus Gr Sundaram Select MidCap Gr Tata Dividend Yield Fund Gr Tata Equity Opportunities Fund Gr Tata Equity P/E Fund Gr Tata Ethical Fund Gr Tata Mid Cap Growth Fund Gr Tata Pure Equity Fund Gr Taurus Bonanza Fund Gr Taurus Starshare Growth Templeton India Growth Fund Gr UTI Dividend Yield Fund. Gr UTI Equity Fund Div UTI Leadership Equity Fund Gr UTI Master Share Div UTI Mid Cap Fund Gr UTI MNC Fund Gr UTI Opportunities Fund Gr UTI Top 0 Fund Gr Average Returns Maximum Returns Minimum Returns Starting February Month of Schemes (ELSS) Axis Long Term Equity Fund Gr Birla Sun Life Tax Plan Div Birla Sun Life Tax Relief 96 Fund Div Birla Sun Life Tax Savings Fund Gr BNP Paribas Long Term Equity Fund Gr BOI AXA Tax Advantage Fund Regular Growth Canara Robeco Equity Tax Saver Fund Div DSP BlackRock Tax Saver Fund Gr DWS Tax Saving Fund Gr Franklin India Taxshield Gr HDFC Long Term Advantage Fund Gr HDFC Taxsaver Div ICICI Prudential Tax Plan Regular Gr IDFC Tax Advantage (ELSS) Fund Regular Gr Kotak Tax Saver Gr L&T Tax Advantage Fund Gr LIC Nomura Tax Plan Gr Principal Personal Tax Saver Principal Tax Savings Fund Quantum Tax Saving Fund Gr Plan Reliance Tax Saver Fund Gr Religare Invesco Tax Plan Gr Sahara Tax Gain Fund Gr SBI Magnum Tax Gain Fund Div Sundaram Tax Saver Div Tata Tax Saving Fund Plan A Div Taurus Tax Shield Gr UTI Equity Tax Saving Plan Div Average Returns Maximum Returns Minimum Returns S&P BSE SENSEX CNX NIFTY Returns % CAGR Returns % CAGR SIP RETURN AS ON ST JANUARY Govt revises 204 GDP growth to 6.9% India revised up its economic growth to 6.9 percent from 4. percent in the fiscal year to March after the government changed the formula to measure the economy, a move that will make it easier for the government to meet fiscal deficit goals. The new measurement of gross domestic product (GDP) includes underrepresented and informal economic sectors as well as items such as smart phones and LED television sets. The government also revised its GDP for 20/ to. percent from 4. percent earlier. New Delhi revises the method of calculating national accounts and other macro data every five years, bringing in a newer base year and adjusting for changes in the economy. It will now use 20/ as the new base year, instead of 2004/0. Indian economy to be a $4 trillion economy in years Stating its great time to invest in India, Minister of State for Finance Jayant Sinha said the Indian economy has potential to become a $4 trillion economy in the next years. Sinha, who was Managing Director of Omidyar Network India Advisors, said the rupee has strong tailwinds with firm capital inflows and its great time for investing in the country. He also assured foreign investors that tax issues will be addressed appropriately in the next budget and India was committed to welcoming foreign investment. Sinha, who was Managing Director of Omidyar Network India Advisors, said the rupee has strong tailwinds with firm capital inflows and its great time for investing in the country. The Minister further said the government wants to develop Mumbai as a major international finance centre. Fiscal deficit exceeds budget estimate in just 9 months The Centre will have to keep its revenues above expenditure in the last quarter of the current financial year to rein in its fiscal deficit at 4. per cent of Gross Domestic Product (GDP) as the deficit has crossed the Budget Estimates (BE) in the first nine months itself. The fiscal deficit remained high despite softening oil prices which enabled the government to raise excise duty twice (till December) and reduce subsidies of the oil marketing companies as revenues from other streams taxes, disinvestment and spectrum were not forthcoming. The official data showed the deficit stood at R.2 lakh crore during AprilDecember of, surpassing a fullyear s BE of R. lakhcrore by 0.2 per cent. India's FDI increased by 26% in : UN Notwithstanding the decline in global foreign direct investment inflows, India's FDI increased by 26 percent in to nearly $ billion with maximum growth in the services sector, a UN report has said. China toppled the US in as the world's largest recipient of FDI a position that the US had been holding almost consistently since the 980's, though with a modest increase of percent, said the latest 'Global Investment Trade Monitor' report released by United Nations Conference on Trade and Development (UNCTAD). The propping up of FDI in China is mainly due to an increase in FDI in the service sector, even as FDI in manufacturing sector particularly from Japan and in industries sensitive to rising labour costs fell.

6 SIP VALUE AS ON ST JANUARY 20 NEWS UPDATE Starting February Month of Axis Equity Fund Gr Axis MidCap Fund Gr Baroda Pioneer Growth Fund Growth Plan Birla Sun Life Advantage Fund Gr Birla Sun Life Dividend Yield Plus Growth Birla Sun Life Equity Fund Gr Birla Sun Life Frontline Equity Fund Gr Birla Sun Life India Opportunities Fund Gr Birla Sun Life Long Term Advantage Fund Gr Birla Sun Life Midcap Fund Gr Birla Sun Life MNC Fund Gr Birla Sun Life Pure Value Fund Gr Birla Sun Life Small and Midcap Fund Gr Birla Sun Life Special Situations Fund Gr Birla Sun Life Top 0 Fund Gr BNP Paribas Dividend Yield Fund Gr BNP Paribas Equity Fund Gr BNP Paribas Midcap Fund Gr BOI AXA Equity Fund Regular Plan Gr Canara Robeco Emerging Equities Fund Gr Canara Robeco Equity Diversified Gr Canara Robeco F.O.R.C.E. Fund Regular Gr Canara Robeco Large Cap Plus Fund Gr DSP BlackRock Equity Fund Reg. Plan Div DSP BlackRock Focus 2 Fund Gr DSP BlackRock Micro Cap Fund Gr DSP BlackRock Opportunities Fund Gr DSP BlackRock Small and Mid Cap Reg Gr DSP BlackRock Top 0 Equity Fund Gr DWS Alpha Equity Fund Gr DWS Investment Opportunity Fund Gr Edelweiss Diversified Growth Equity Top 0 Fund Gr Franklin India Bluechip Fund Gr Franklin India Flexi Cap Fund Gr Franklin India High Growth Companies Fund Gr Franklin India Opportunities FundGr Franklin India Prima Fund Gr Franklin India Prima Plus Gr Franklin India Smaller Companies Fund Gr HDFC Capital BuilderGr HDFC Core and Satellite Fund Gr HDFC Equity Fund Div HDFC Growth Fund Gr HDFC Large Cap Fund Gr HDFC Mid Cap Opportunities Fund Gr HDFC Premier MultiCap Fund Gr HDFC Small and Mid Cap Fund Gr HDFC Top 200 Fund Div HSBC Equity Fund Gr HSBC India Opportunities Fund Gr ICICI Prudential Dynamic PlanCum ICICI Prudential Exports and Other Services Fund Gr ICICI Prudential Focused Bluechip Equity Fund Gr ICICI Prudential MidCap Fund Gr ICICI Prudential Target Returns Fund Retail Gr ICICI Prudential Top 0 Fund Gr ICICI Prudential Top 200 Fund Gr ICICI Prudential Value Discovery Fund Gr IDFC Classic Equity Fund Regular Plan Gr IDFC Equity Fund Regular Plan Gr IDFC Imperial Equity Fund Regular Plan Gr IDFC Premier Equity Fund Regular Plan Gr IDFC Sterling Equity Fund Regular Gr JP Morgan India Equity Fund Gr JP Morgan India Mid and Small Cap Fund Gr Kotak 0 Equity Scheme Div Kotak Classic Equity Fund Gr Kotak Emerging Equity Scheme Gr Kotak Midcap Gr Kotak Opportunities Fund Gr Kotak Select Focus Fund Gr L&T Equity Fund Gr L&T India Large Cap Fund Gr L&T India Special Situations Fund Gr L&T India Value Fund Gr L&T Midcap Fund Cum Mirae Asset Emerging Bluechip Fund Gr Mirae Asset India Opportunities Fund Gr PineBridge India Equity Fund Standard Gr Pramerica Large Cap Equity Fund Gr Principal Dividend Yield Fund Gr Principal Emerging Bluechip Fund Gr Principal Growth Fund Gr Principal Large Cap Fund Gr Quantum Long Term Equity Fund Gr Reliance Equity Opportunities Fund Gr Reliance Focused Large Cap Fund Gr Reliance Growth Fund Gr Reliance Mid & Small Cap Fund Gr Reliance Quant Plus Fund Gr Reliance Regular Savings Fund Equity Plan Gr 46,2 6,6 0,469 9,862 2,8,668 0, 2,4,9 6,88,9 60,86 9,46 8,82 0,662 4,689,66 64, 46,6,999 4, 60,6 4,, 6,8,2 0, 62,889 4,86 0,8 4,2 49,29 4,6 6,24 0,292 60,22 6,8 8,20 68,04,4 4,24 48,449 44,94 9,8 6,60 49,8 48,4 46,0 42,449 4,09 42,488,8 4,9 6,48 46,208 4, 49,89 6,80 4,404 4,2 4,82 6,08 9,249,88 69,689 49,8 46,48 2, 6,62 6,84 9,999,86, 4,492 62,62 66,602 66,40 2,98 6,2 42,800 44,066 66,49 49,4 4,08 9,06 6, 4,9,42 6,649 4,894 4, Investment Value e 8,2 64,229,02 64,80 6,648 6,60 8,6 64,040 6,292 6,46 0,90,48 66,80 64,62 90,48 88,8 94, ,82 4,49 46,2 4,06 9,48 28,6 82,246 6,94 4,90 0,20 6,69,82 62,949 4,89,80 2,926 6,22 0,899 6,28 0,0 6,2,60 94,9 49,80 8,0 24,848 00,246 66,88 62,49,4 8,9,69 606,8,82 68,098 60,226 20,86,8 49,628 8,022 69,4,49 4,,46 62,4 60,088 64,288 4,62 4,96 44,9 690,92 69,88 8, ,42 80,86 6,49 92,6 664,89 692,8 2,0 604,8 628,9 04,60 24,40 0,92 9,46 4,94 28,00 66,8 6,0 9, 694,4 4, 8,898,04,26 94,49,,4 999,62,088,42,06,9,49,24,09,80,8,92,62,404,289,80,2,988,06,6,084,04,06,92,098,86,0,8 92,,9, ,86,08,099,024,486,49,99,00,4,0,80 9,20 980,886 9,424,0,40 94,902,099,80,294,2,00,4,0,28,,84,420,0,00,029 90,9,06,9 92,940 8,82,29,49 9,,0,46 996, ,64,089,42,04,44,29,266,02,409,26,40 99,2,0,29,0,0,22,846 89,90 98,68 880,49,6,09,8,08,00,960,20,60 96,82 99,26,28,646,0,,040,426,8,9,06,2 998,89,086,26,202,9,2,6,,86,2,9 926,08,2,8,00,8 982,904 9,04,, ,242,0,9,2,4 94,202,020,29,489,88,60,2,,480,,280,92,060,89,94,84,0,882,0 2,6,26,924,009,64,4,9,86,80,62,46,8 2,226,26 2,2,400,6,29,,60 2,2,,69,66 2,,,60,6,0,68,448,98,604,80,89,6 2,94,896,6,4 2,28,466,86,926 2,48,2,84,222,,89,824,992,46,4,96,80 2,,88,98,8,00,84,94,42,,40,2,98 2,,02 2,084,9,66,,69,6 2,4,64,89,0,49,,9,496 2,0,84,66,06 2,24,92,4,40,600,69 2,02,84,948,04,68,420,,2,69,80,840,404 2,,60,86,20,26,209,669,2,64,086,0,64 2,40,86,46,86,0, 2,062,82,04,284 2,62,900 2,822,4,4,02,020,4,40,962 2,826,0,26,640 4,48,60 2,90,,062,,9,020 2,888, 2,926,8 2,680,840 2,62,949 2,8,8 2,4,992,64,86,9,,9,8 2,64,66,0,980 2,842,209 2,206,28,208,29 2,89,6 2,844,8,98,4,29, 2,898,9 2,8,946 4,28,0 2,696,200,0,9,49,6 2,44, 2,2,244,9,94 4,64,4,8,,99,26 4,2,92 6,22,0,0,60 6,2,42,289,9 4,6,028,90,89,2,0 4,4,229 6,,62 6,44,26,92,99 6,48,06,,46,462,29 6,060,892 4,4,40 6,04,9 4,964,404,048,02 4,8,8 4,0,969 6,6,90 India Inc strikes deals worth $0 bn in Total number of merger and acquisition deals of Indian companies in rose to, the highest ever in a decade, and the momentum is set to pick up this year as well, says a report. The value of the merger & acquisition (M&A), private equity deals stood at over USD 0 billion in as against USD 8 billion through 94 transactions in 20. M&A contributed close to USD 8 billion from deals and PEs contributed USD billion from 604 deals, the report by, tax and advisory firm Grant Thornton said. Domestic and inbound deals have been the highlight in as global players bet on the revival of India growth story or consolidating their holdings in Indian subsidiaries. Sugar output revised upwards by 2% to 26 MT for Sugar production estimate has been revised upwards by 2 per cent to around 26 million tonnes in this marketing year ending September a development which the industry said would put pressure on prices if surplus sweetener is not exported. The exmill price of sugar has already declined by about Rs per kg since October when the crushing started. The price is ruling at its lowest in the last three years, according to Indian Sugar Mills Association (ISMA). India is the world's second largest producer of sugar after Brazil. India is also biggest consumer in the world. Assocham, ICAI set up virtual centre for MSMEs' development Industry body Assocham and the Institute of Cost Accountants of India (ICAI) have jointly set up the country's first 'Virtual Centre for Development of MSMEs'. The Centre will cater as a facilitator to MSMEs by addressing their issues, connecting them to global research and development (R&D) centres, strengthening industryacademia partnership, skill upgradation and conducting product /industry specific seminars and workshops. The Centre aims to reach out to about 0 million MSMEs, educate at least 0,000 MSME units about exports, assist about 20 million budding entrepreneurs, train at least million nonskilled/semiskilled people across India and assist at least 00 MSMEs to produce innovative products. Government to infuse funds into projects stalled due to cost overruns The roads ministry has proposed to infuse funds in projects stuck due to cost overruns. In a cabinet note, the ministry has proposed to allow developers to borrow additional funds from the National Highway Authority of India (NHAI) required to complete stalled projects at a rate lower than that offered by banks. This is aimed to help projects where developers are unable to get additional loans required to meet the increased cost of construction because of delays either in getting statutory clearances or achieving financial closure. CII urges government to roll out Goods and Services Tax The Confederation of Indian Industry (CII) urged the government to speedily implement the Goods and Services Tax (GST) Bill tabled in the Lok Sabha, allowing industry participation in the discussions on the proposed indirect tax regime. CII hopes that GST would be implemented at the earliest keeping in mind

7 SIP VALUE AS ON ST JANUARY 20 NEWS UPDATE Starting February Month of Reliance Small Cap Fund Gr Reliance Top 200 Fund Gr Reliance Vision Fund Gr Religare Invesco Contra Fund Gr Religare Invesco Equity Fund Gr Religare Invesco Growth Fund Gr Religare Invesco Midcap Fund Gr Sahara Growth Fund Gr Sahara Midcap Fund Gr Sahara Wealth Plus Fund Variable Gr SBI Contra Fund Regular Div SBI Emerging Businesses Fund Regular Plan Gr SBI Magnum Blue Chip Fund Gr SBI Magnum Equity Fund Div SBI Magnum Global Fund Div SBI Magnum MidCap Fund Gr SBI Magnum Multicap Fund Gr SBI Magnum Multiplier Plus 9 Div SBI Small & Midcap Fund Gr Sundaram Equity Multiplier Fund Gr Sundaram Growth Fund Gr Sundaram Rural India Fund Gr Sundaram S.M.I.L.E. Fund Gr Sundaram Select Focus Gr Sundaram Select MidCap Gr Tata Dividend Yield Fund Gr Tata Equity Opportunities Fund Gr Tata Equity P/E Fund Gr Tata Ethical Fund Gr Tata Mid Cap Growth Fund Gr Tata Pure Equity Fund Gr Taurus Bonanza Fund Gr Taurus Starshare Growth Templeton India Growth Fund Gr UTI Dividend Yield Fund. Gr UTI Equity Fund Div UTI Leadership Equity Fund Gr UTI Master Share Div UTI Mid Cap Fund Gr UTI MNC Fund Gr UTI Opportunities Fund Gr UTI Top 0 Fund Gr Average Amount Maximum Amount Minimum Amount Starting February Month of Schemes (ELSS) Axis Long Term Equity Fund Gr Birla Sun Life Tax Plan Div Birla Sun Life Tax Relief 96 Fund Div Birla Sun Life Tax Savings Fund Gr BNP Paribas Long Term Equity Fund Gr BOI AXA Tax Advantage Fund Regular Growth Canara Robeco Equity Tax Saver Fund Div DSP BlackRock Tax Saver Fund Gr DWS Tax Saving Fund Gr Franklin India Taxshield Gr HDFC Long Term Advantage Fund Gr HDFC Taxsaver Div ICICI Prudential Tax Plan Regular Gr IDFC Tax Advantage (ELSS) Fund Regular Gr Kotak Tax Saver Gr L&T Tax Advantage Fund Gr LIC Nomura Tax Plan Gr Principal Personal Tax Saver Principal Tax Savings Fund Quantum Tax Saving Fund Gr Plan Reliance Tax Saver Fund Gr Religare Invesco Tax Plan Gr Sahara Tax Gain Fund Gr SBI Magnum Tax Gain Fund Div Sundaram Tax Saver Div Tata Tax Saving Fund Plan A Div Taurus Tax Shield Gr UTI Equity Tax Saving Plan Div Average Amount Maximum Amount Minimum Amount S&P BSE SENSEX CNX NIFTY 2,66, 6,24 9,60 4,8,8 6,29,99 4,86 48,89 4,082,8 2,6 0,8 64, 60, 6,2 4,29 8,86,496 42,60 0,62 80,88 4,662 66,606 48,6,499 9,2 49,29 0,480 46,02 46,69 4,66 48,9 44, 0,98 46,422 0,8 6,0 68,2 49,099,09 4,69 8,86,99 6,0 6,96 6,026,22 8,6 49,4,8 2,66 49,862 8,8 42,9 49, 0,9 4, 62,406 49,909 6,29 4, 49,4 40,0 6,662,48 40,,0,2 4,6 44,6 48,009 2,948 6,662 40,0 40,66 42, Investment Value e 89, ,40 96,222 66,4 8,42,66 68,284 09,622 9,90 84,9 8,24 9,98 84,682, 66,64 0,9 99,69 60,00 9,82 8,228 09,022 6,46 49,006 20,922 69,4 46,904 8,86 626,962 8,026 04,92,20 2, 4,0 0,69,9 4,08 44,96,008 4,2 6,,82,62 60,90 9,82 00,246 6, 628, 66,9,24 6,2 6,82 64,80 9, 66,98 6,2 6, 8, 602,680 60,6 8,9 60,662 8,964 6,8 96,29 2,288 02,2 609,49 44,26 92,84,2 8,09 22,4 42,84 8,9 02,2 22,4,464,9,08,940,024,0,2,868 9,,0,84,268,269 89,0,0,426,08,2 92,6,4,0,064,62 994,664,240,,29,86,02,666,0,,44, ,984 8,26 984,6,29,6 896,86,229,69 989,680,046,6,,622,09,922,2,2 96,6 89,00 964,944 98,94 9,060,06,86 968,96 98,02,,08,262,60,026,60 99,260,09,82,44,294 8,82 SIP VALUE AS ON ST JANUARY 20,29,4,0,,,2 999,488,4,2 986,86,02,66,0,2 98,0,,24,00,44,09,29,098,806,09,80,02,,00,6,02,8 9,2,08, 98,8,294,264,8,896 9,94,068,826 98,99,0,42 9,886 94,46,04,90,294,264 9, ,8 9,88,2,,6,,904,80,9,9,689,6 2,28,408,409,06,,9,48,24,4,64 2,,4,4,886,64,2 2,8,40 2,8,49,6,8,48,44,0,8,2,062,84,09 2,2,,8,29 2,69,64,46,20,0,89,8,82,8,482 2,,26,8,98,8,08,2,4,90,86,2,,0,2,20,94,,46 2,,920 2,298,42,82,946,602,,80,4 2,6,26,2, Investment Value e 2006,808,8,804,40,69,96,8,080,90,4,9,40,04,84,94,69,,02,92,02,99,80,622,848,,292,,92,4,,60,906 2,29,9,9,2,62,9,20,66,4,99,,8,04,469,0,4,2,62 2,29,9,04,469,48,090,442, 2,80,69 2,4,9,09,4 2,0,49,,966 2,944,866,94,890,0,9 2,2,264 2,420,2,94,2,08,9 2,860,04,6,,042,4,44, 2,8,6 2,4,04 2,662,494 2,84,2,02,900 2,6,9 2,99,840 4,48,60 2,4,04 2,9,6,00,202 2,496,4,,998,9,49 2,89,80,08,24,246,40 2,8,9 2,,89 2,60,08,260,09 2,96,26 2,68,8 2,4,2 2,60,9 2,80,84 2,80,68,9,49 2,8,9 2,42,96 2,444,2,094,886 4,420,686,40,2,088,,6,496 6,2,80,8,64 4,2,902 8,29,8,08,9,2,28,24,886,06,09 4,948,0 4,9,,44,698 8,29,8,24,886,66,8 4,96,098,840,92,94,600,24,99 6,2,69 6,282,,429,906 4,2, 4,44,60,494,66 6,,,0, 4,26,92,88,0,2,4 6,,,429,906,966,,90,2 that it should subsume all taxes, be applicable to all products and services, and involve a reasonable Revenue Neutral Rate (RNR), the chamber said in a statement. The chamber further said the government should avoid raising excise duties in the upcoming union budget for the success of the Make in India programme. Telecom subscriber base reaches alltime high at 9 crore India's telecom subscriber base reached an alltime high of 9 crore at the end of December, as per the latest report by regulator Trai. The number of telephone subscribers in India increased from crore at the end of November, to 9.09 crore at the end of December,, the Telecom Regulatory Authority of India said in the report. This surpasses the previous record of 96. crore reached in June 20. Teledensity in the country, which means connection per 0, reached.8. The mobile or wireless subscriber base in country is already at alltime highs after it crossed 9.crore mark at the end of October. The previous record was set again in June 20 when mobile subscriber base in the country reached 9.4 crore. India's air passenger traffic up 8% in Air passenger traffic in India saw an eight per cent growth last year compared to 20, the highest after China and Russia, even as global traffic rose by.9 per cent, according to data released by International Air Transport Association (IATA). The passenger carrying capacity in India rose by. per cent in with a 6. per cent load factor or capacity utilisation. According to IATA, the global industry outperformed the year average growth rate of.6 per cent. Air passenger traffic in China rose by per cent, helping to drive global air travel performance upward while travel demand in Russia grew by 9.8 per cent during this period. Besides, the Asia Pacific carriers recorded an increase of.8 per cent in traffic, which was the largest increase among the three biggest regions compared to 20, IATA said. Indian accounting standards notification in a month: MCA The government is planning to come out with a notification for implementation of the proposed Indian Accounting Standards (IndAS) in a month's time, a top government official has said. The notification for IndAS is going to happen in a month, Ministry of Corporate Affairs Joint Secretary A S Bhatia said on the sidelines of a seminar on corporate governance organised by the CII and the Institute of Cost Accountants. IndAS adoption will bring India at par with more than countries where International Financial Reporting Standards are mandatorily followed. The government's commitment to adopt IndAS will further strengthen India's ability to attract foreign capital and access global capital markets. 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.