What the Dalal Street has waited for has finally happened in December 2016.

Transcription

1 Monthly Update Jan 2017 What the Dalal Street has waited for has finally happened in December Federal Open Market Committee (FOMC) has increased the Federal Fund Rate (FFR) by 25 bps to 0.50% % radiating extreme volatility to markets. The volatility has further amplified due to restricted activity by the foreign portfolio investors (FPI) in the month of November & December But, it seems Asia s third largest economy is better placed to avoid any major repercussion due to benign domestic long term outlook. The year 2016 draws to a close and when the numbers of year gone by would be tallied, then one would come to know that year 2016 was another year of mixed economic recovery. It is the decision of GoI regarding demonetization which wrapped the whole year and catapulted India on the trajectory of Digitization. This is a welcome move and is expected to bring transparency in business operations and has the potential to take India s GDPto northward direction.apart from demonetization, Indian economy has observed falling inflation trajectory which prompted to cut policy rates by 50 bps. On agricultural front, better monsoon has refilled the reservoir levels which boosted agricultural output and rural incomes. What could further aggravate the sentiments was the passage of Goods and Service Tax (GST); which aims to simplify the indirect tax regime by removing multiple state/ central taxes and multiple exemptions. The year 2016 is also characterized by some negative developments like high level of NPA in the banking system which is restricting banks in financing greenfield & brownfield projects; as depicted by the credit growth which is hovering near multi year lows. The PE investment in India dropped significantly in 2016 after hitting a peak in 2015 both in terms of volumes and value. The prices of oil which proved boon to us last year, has now become a concern for policymakers as OPEC and non OPEC members decided to cut oil production. Globally, Donald Trump victory over Hilary Clinton has buffeted Indian Markets as investors are concerned about the Trump s trade policies. The current sentiments in Indian markets point s volatility in short term, as corporates are concerned about the upcoming corporate results. Demonetization is a short term pain and the impact of this should flow to economy through many echelons. According to rating agencies, the medium- to long-term gains are likely to outweigh the short-term agony. On a broader level, one can say demonetization will help Indian Economy in long run but in short term; it may cause some panic. It is expected to emit fresh bouts of volatility which may not be fully appreciable to market participants but it is a necessary step which is bound to bring with it a tremendous shake-up wherever black money has played a major role. If executed properly, this move would enhance transparency in system and would keep investors community glued to Indian Economy. Happy Investing! Wish you a very Happy and Prosperous NewYear 2017

2 Anew year often inspires new habits, including financial ones. If you want to put yourself on a path to build wealth throughout the year, then consider these 12 steps, all of which are designed to help you rein in spending and work toward greater financial security. They include both offensive moves, like saving more, as well as defensive ones. 1. Set your goals early and share them. Sharing financial goals with friends and even strangers through social media can help you articulate just what those goals are and also hold you accountable. Indeed, research on goal-setting suggests that making public statements about goals helps people commit to them, whether they be money or health related. As 2016 kicks off, consider sharing your goals on Facebook, Twitter or a social goal-setting site like Linkagoal. 12 Ways to Improve Your Finances in Pay off expensive debt. Jan 2017 If you're still carrying around expensive debt in the form of credit card debt or other loans, then it's time to make a plan to pay it off. In "The Debt Escape Plan," suggests doing just that by setting specific targets for you and getting the support you need in the form of a credit counselor if necessary. 7. Know how to start over if you need to. If you've had a rough 2015 and 2016 is about rebuilding, then you might want to focus on prioritizing savings and re-establishing your credit, especially if it has been destroyed by previous troubles, like filing for bankruptcy. Financial experts suggest going slow, making on-time monthly payments, to eventually reach a higher credit score. 8. Max out your retirement savings. Special Review 2. Get more out of your workplace benefits. If you're lucky enough to have a job with benefits, then it pays to make sure you're getting as much out of them as possible. Aside from salary, take a close look at available retirement accounts (making sure to pick up any matching benefits), flexible spending accounts, financial literacy programs and wellness support, which can include free counseling. Health insurance and disability insurance can also help protect your finances in the long term. 3. Use tools to help you save more. Mobile Apps can make it easier to protect bank accounts from fraud and save more money, and it can be used to make payment digitally. Some of the best entrants in the field include SBI Buddy, Paytm, Mobikwik, Oxygen etc. an app that collects your loyalty cards digitally, so you can save more even by making payments through them. Other useful financial tools include bank bazaar, my smart price, price dekho, compare raja etc. which help you quickly compare prices when shopping online or in stores browser add-on that lets you know if there is a lower price elsewhere online. Mint offers a free budgeting tool to help you track your spending, andyou Need a Budget is another good option. 4. Become more financially literate. Financial literacy is a key factor when it comes to adults building wealth over time. If people understand basic concepts when it comes to saving, investing and compound interest, then they are more likely to sit on a significant nest egg as they get older. That's why making an effort to educate yourself, whether through workplace education programs or online tutorials, can pay off. 5. Prepare your money to age well. As you get older and prepare to retire, it's important to make sure your money will last. That means ensuring your investments are in a portfolio that's aggressive enough to outpace inflation and reviewing your budget for any big leaks. You can also ask your bank what retirement services they offered for older adults. If you didn't meet your retirement savings goals in 2016, then you'll want to be sure to do so in You have access your individual PF account through work, then you can set it up to automatically deduct a certain percentage from your paycheck. Otherwise, you can also invest through banks for retirement savings. 9. Manage household finances better. Money can get more complicated as your family grows. Using an app like my budget, Money lover, home budget etc. can make it easier to share expenditure information with your spouse. Emergency savings calculator is also useful to see if you have enough savings on hand to get you through a difficult period. 10.Check up on your insurance policies. Life insurance is not particularly fun to take out, but it is an essential part of safeguarding your (and your family's) financial security, especially if you are the primary breadwinner. Reviewing your policies once a year to make sure they are in good standing and you have enough coverage is a good idea. You can also check if you have options to take out supplemental coverage through your workplace. 11. Rebalance your investments regularly. If you invest too conservatively, then your money might not keep up with inflation. Meanwhile, if you are overly aggressive, swings in the market could lead to a loss of assets at an inconvenient time, like shortly before retirement. Review your portfolio at least once a year to make sure you have the right mix for you; a financial advisor can also help. 12.Improve your credit score. Giving your credit score a boost can help you land a better interest rate on your mortgage or a new car loan. To improve it, you can start by paying off debt, requesting a credit line increase and always making on-time payments. Late payments and a high debt-to-credit line ratio can hurt your score. 2

3 Demonetization Jan 2017 Special Review Demonetization: Demonetization is considered as an act of stripping a currency unit of its status as legal tender. It creates a situation where lack of currencies jams consumption, investment production, employment etc. Effect of Demonetization on various economic variables Effect on cash economy: Removal of INR 500/1000 notes and replacement of same with new INR 500 & INR 2000 Rupee notes is expected to remove black money from economy as they will be blocked, halt the circulation of large volumes of counterfeit currency and curb the funding for anti-social elements like Terrorism, smuggling etc. Effect on Money Supply: With older 500 and 1000 rupees notes being scrapped, and until the new 500 and 2000 rupees notes get widely circulated in market, money supply was reduced on short run. Lower money supply will have a deflationary effect. Effect on demand: The overall demand was affected. The demand in following areas was impacted particularly Consumer Goods RealEstateand Property Gold & Luxury Goods Automobiles Effect on Prices: Price level is expected to be lowered due to moderation from demand side. The demand driven fall in prices may be stated in following manner : Real Estate & Property: Prices in this sector are expected to fall, especially for sale of properties where major part of transactions are cash based. Effect on GDP Sudden decline in money supply and simultaneous increase in bank deposits has adversely affected consumption demand in economy in short term GDP formation could be impacted by this measure, with reduction in consumption demand. Effect on Banks As directed by Government, INR 500 & INR 1000 notes were ceased to be legal tender were deposited or exchanged in banks. This has lead to more amount being deposited in savings & current account of commercial banks, which in turn has led to enhancing of liquidity position of banks, which will be utilized further for lending purposes. Effect on Online transactions and alternative modes of payment With cash transactions facing a reduction, alternative forms of payment will surge in demand. Digital transactions systems, E wallets and apps, online transactions using E banking, usage of plastic money (Debit & Credit cards) have seen a substantial increase in demand. This has led to strengthening of such systems and infrastructure required. Effect on Bond Market Rise in deposits have created more demand for government bonds and other high rated bonds in lieu of muted credit activity, leading to lowering of bond yields especially in shorter end of the curve. Consumer Goods: Inflation is likely to remain sticky in the near term as consumer may switch some other mode of payment like Paytm / Net Banking thereby cushioning the impact of muted demand on prices. Type of Impact Sector Impact The move towards a cashless economy will boost savings in financial assets. Positive Banks With any sharp infusion of deposits and relatively limited avenues to lend, the credit deposit ratio for banks would become unfavorable, and thus impact margins. In case of a spike in capital adequacy, it would be positive for margins. While in the event of a higher rise in deposits, the immediate avenue to deploy would be G-Sec. Energy and Utilities Jewellery Reforms and an increase in public expenditure should benefit this segment. The bulk of business here is done in cash. Declaration of PAN had become mandatory for purchases above Rs. 2 lacs. Companies and dealers are indicating that volumes may get impacted as real estate demand (which is 55-60% of overall demand), may get affected. But infrastructure demand, backed by government spending which has Negative Cement & Building Materials been driving growth, is unlikely to be impacted. Building material stocks would come under pressure due to a sudden slowdown. Automobiles Agri-Chemicals Renovation work, which drives this sector, would get impacted as most of the demand is serviced though cash. Dealer sales in certain projects too would take a hit. Demand is likely to dip for a couple of months. Used vehicles sales may also collapse in short term while fourwheelers, commercial vehicles and tractors sales may not see major impact. Cash crunch has affected the purchases ofagri- fertilizers and chemicals. Neutral Consumer discretionary Healthcare Technology Demand for discretionary items have been hit as buyers focus on essentials Some companies stand to gain as exports are expected to improve Structural headwinds notwithstanding, the rupee fall could boost margins 3

4 Jan 2017 Fixed Income Update Equities Update Key Indices 30-Dec 30-Nov Chg. Key Indices 30-Dec 30-Nov %Chg. I Yr Ret Crisil 10 Yr G-Sec Index BSE Sensex % 1.65% Crisil 1 Yr T-Bill Index S&P CNX Nifty % 2.70% Forex / Call / Economic Indicators Other Indices 30-Dec 30-Nov %Chg. I Yr Ret 30-Dec 30-Nov BSE IT Index % -7.95% Rupee/$ BSE Healthcare % % Call Rate BSE FMCG Index % 3.29% Total Forex (INR.bn) BSE PSU Index % 12.00% Inflation % BSE Bankex % 5.39% Institutional Activity ( Dec 01- Dec 31 ) (Rs cr) Debt Purchase Sales Net Inv Equity Purchase Sales Net Inv FIIs 23, , FIIs 88, , Mutual Funds 109, , Mutual Funds 25, , Fund Performance Simple Annualized Fund Performance Absolute CA* Debt: Liquid 1M 3M 6M Equity : Large & Flexi Cap 3M 1Y 3Y Birla Sun Life Floating Rate Fund - STP - Reg - Growth Birla Sun Life Frontline Equity Fund - Reg - Growth ICICI Prudential Liquid - Reg - Growth Birla Sun Life Pure Value Fund - Growth Kotak Floater - ST - Reg - Growth ICICI Prudential Focused Bluechip Equity - Ret - Growth Reliance Liquid Fund - TP - Growth L&T India Value Fund - Reg - Growth UTI-Liquid Cash Plan - Reg - Growth SBI Bluechip Fund - Growth Debt: Ultra Short Term 1M 3M 6M Equity : Mid & Small Cap 3M 1Y 3Y Franklin India Low Duration Fund - Growth Canara Robeco Emerging Equities - Growth Franklin India Ultra Short Bond Fund - Super IP - Growth DSP BlackRock Micro Cap Fund - Reg - Growth HDFC Cash Mgmt Fund - Treasury Advantage - Ret Franklin India Prima Fund - Growth ICICI Prudential Flexible Income Plan - Reg - Growth Sundaram Select Midcap - Reg - Growth Reliance Medium Term Fund - Growth UTI Mid Cap Fund - Growth Debt: Short Term 1M 3M 6M Equity: Tax Planning 3M 1Y 3Y Birla Sun Life Short Term Opportunities Reg - Growth Axis Long Term Equity Fund - Growth Birla Sun Life Treasury Optimizer Plan - Reg - Growth DSP BlackRock Tax Saver Fund - Growth HDFC HIF - S T P - Growth ICICI Prudential LT Equity Fund (Tax Saving) Growth Kotak Flexi Debt Scheme - Reg - Growth L&T Tax Advantage Fund - Reg - Growth UTI Short Term Income Fund - IP - Growth Reliance Tax Saver (ELSS) Fund - Growth Debt: Income/ Dynamic 1M 3M 6M Equity: Thematic 1M 3M 6M Birla Sun Life Income Plus - Reg - Growth Birla Sun Life India GenNext Fund - Growth HDFC Income Fund - Growth Birla Sun Life MNC Fund - Growth ICICI Prudential LTP - Growth Franklin Build India Fund - Growth SBI Dynamic Bond Fund - Growth ICICI Prudential B & F Services Fund - Retail - Growth UTI Dynamic Bond Fund - Reg - Growth UTI Transportation and Logistics Fund - Growth Simple Annualized Debt: Accrual Funds 1M 3M 6M Hybrid: Equity-oriented 1M 3M 6M DSP BlackRock Income Opportunities Reg - Growth Birla Sun Life Balanced 95 - Growth HDFC Corporate Debt Opportunities Reg - Growth HDFC Prudence Fund - Growth Kotak Medium Term Fund - Reg - Growth ICICI Prudential Balanced - Growth Reliance Corporate Bond Fund - Growth Tata Balanced Fund - Reg - Growth SBI Corporate Bond Fund - Growth UTI Balanced Fund - Growth Debt: Gilt 1M 3M 6M Hybrid: Debt-oriented 1M 3M 6M DSP BlackRock Government Securities - Growth Birla Sun Life MIP II - Wealth 25 - Reg - Growth HDFC Gilt Fund - L T P - Growth Franklin India MIP - Growth ICICI Prudential Long Term Gilt Fund - Growth HDFC MIP - LTP - Growth Kotak Gilt - Investment Regular Plan - Growth ICICI Prudential MIP 25 - Growth SBI Magnum Gilt LTP - Growth SBI Magnum MIP - Growth Portfolio Nov 30, 2016 & Return Dec 31, *CA : Compound Annualized

5 Jan 2017 This Month in Debt : This Month in Equity : 10 Yr GOI Yield Nifty G-Sec Yield: Sovereign bond yields maintains its upward stance throughout the month & hovered in a wide range of % %. It hardened on account of several domestic and geopolitical events like FII sell off to name a few. G-Sec yield inched significantly eroding trader gains and had kept sentiments muted. The effect of that can be validated from recent rise in AUM of Gilt Funds which rose at a tepid rate of 9.97%. The short end segment of G-Sec Yield has hardened by 30 bps, longer end segment (5>Years<10) hardened by 27 bps. While the ultra-long end segment hardened by 37 bps. G-SecAuctions is still getting overwhelming response with bids coming ~ 3-4 times of the auction amountacrossallmaturitiesofg-secpaperswith largerresponsewitnessedinshortendsegment as against longer end segment. G-Sec auctions yields hardened as compared to the last month across all maturities. On the similar lines, SDLauction cut-off s yields hardened. Within 10Year category, the average cost of borrowings increased by 2 bps MoM basis with yields consolidated between 6.82% to 7.29%. Corporate bond yields (AAA): Dec'2016 saw corporate bond spreads hardened across all maturities. In consonance with sovereign bond yields, corporate bond yields have hardened. WithinAAAcategory, shorterendsegmentobservedahardeningof35bps asagainstahardening of 40 bps observed in the longer end segment. Cumulatively, 688 Issuers amounting INR 3,21, Crores were raised by corporates during the periodapril'16-dec'16. Liquidity: Daily Net LAF borrowings continues to remain in surplus region with banks operating on reverse repo operation in Dec'16 again. The banking system has witnessed an exponential surge in deposits. It seems RBI is unlikely to conduct further OMO in the near term considering the excessive liquidity in the banking system. Moreover, RBI would keep a close watch on the excessive liquidity and remained committed to conducting liquidity operations in pursuit of objective of revised framework put in place inapril to restore liquidity to a position of neutrality. Credit growth are hovering near multi year lows while deposit growth has grown exponentially on the back of recent GoI decision to demonetize INR 500 / INR Credit grew by 1.20% while deposit grew by 13.60% in Dec'16. Non-Food Credit witnessed a decline of 75% and Food Credit observed repayment in this fiscal year only as against a marginal deployment witnessed in this last fiscal year. On the other hand, time & demand deposits had witnessed an exponential growth in this fiscal year by 87.01% and 451% respectively in this fiscal. Inflation - Retail inflation slowed sharply to 3.63% in Nov' 16 and has remained in the target zone of RBI i.e. 4% + 2%. Prices of food and beverages having a weightage of 45.86% contributed 32.34% to overall inflation in Nov'16 as against a contribution of 51.48% given in the same period a year ago. With OPEC decision to cut oil production; crude prices are likely to remain high in the coming months. The withdrawal of Specified Banking Notes (SBN) could result in temporary reduction in inflation numbers. Govt. borrowings: Net State Govt. borrowings stood at INR bn (i.e % up on y-o-y basis). On other hand, Central borrowings stood at INR bn (2.06% down on y-o-y basis). Government fiscal and revenue deficit's target 79.30% and 92.60% respectively of its total Budget Estimates (BE). As compared to previous financial year, Tax Revenue has remained buoyant. Cumulatively, it increased by 23.60% till October On a similar note, Non Tax revenue increased but at a marginal pace of 3.73%. Outlook The current market environment is characterized by extreme volatility on account of global developments. The volatility is getting amplified due to FII trading activity; who are continuously paring positons in debt market. Sentiments amongst market participants has turned cautious as FederalOpenMarketCommittee (FOMC) 1.40% bytheendof2017and2.90% in Moreover, favourable macro-economic indicators of US economy should kept investors keep investors at bay from Emerging Market Economies (EME). Domestically, considering current liquidity conditions in mind; it is unlikely on the part of RBI to come out with any Open Market Operation (OMO). We believe that RBI is likely to cut policy rate in 3-9 months in the wake of multiple reasons like ; low inflation readings, lower GDP numbers in short to medium term because of demonetization drive, lower CurrentAccount Deficit (CAD) and improved fiscal numbers. All this factor cumulatively should drive down the interest rate regime. We don't see any negative factor (domestic) affecting debt markets in near term. Credit growth is expected to stay near multi year because of tepid demand by corporates. The only risk remain from the global markets and consequent re-balancingin terms of growth, investmentsand geo-politics. There is likelihood that we might witness extreme volatility owing to sell-off by foreign investors. In the light of current environment, we recommend investors to initiate call in Short Term Debt Funds or can take tactical call in Gilt Funds. 5 Returns : Dec 16 Nifty Dow Hang Seng Kospi Nasdaq Nikkei Sensex TTM 5.05% 15.24% 3.15% 5.61% 9.78% 3.60% 1.78% Dec' % 2.97% -3.83% 2.16% 2.51% 3.24% 0.25% Dec 2016 ended in positive with Nifty and Sensex up by 0.08% and 0.25% respectively. Amongst sectoral indices, Auto (1.45%), Consumer Durables (0.11%), Energy (2.04%) and Oil & Gas (2.27%) ended in positive while PSU (1.45%), Power (-0.49%), Realty (0.35%) ended in negative. Amongst domestic macros, Industrial output shrinks by 1.87% in Oct 16 after registering a tepid growth in previous month. The third quarter of FY16 17 started on a negative note; with industrial production registering a negative growth of 1.87% as against 9.87% recorded in the same period a year ago. On average basis, industrial production grew by 0.33% in FY16 17 as against a growth of 4.85% registered in the same period a year ago reflecting weak investment activity.the core sector recorded a growth of 6.60% in Oct 16 led by robust growth witnessed in refinery and steel. The momentum of growth of eight industries constituting 38% of industrial production was the fastest. Amongst advanced indicators, Nikkei Manufacturing PMI India 52.3 down from 22 month high of The latest manufacturing reading highlights consecutive monthly marginal improvement in manufacturing conditions. Production in manufacturing companies witnessed softening in volume growth with consumer goods reporting sharpest decline. Meanwhile outstanding business rose with rate of backlog was modest and weak. On a similar note, performance of India services providers weakened in Nov 16 on account of cash shortage. Nikkei India Services Business Activity moved into negative territory and New business inflows at services providers firms declined. The fall in new work was the first in 17 months and steepest in over three years. Service providers recorded higher levels of outstanding business in Nov 16 due to delay payments from clients. IIP numbers are continuously exhibiting sluggish growth and we expect industrial production growth to remain muted in the near term because of cash crunch. Reduction in growth numbers look imminent. Mining activities in some states has reduced by ~75% as number of vehicles which collect mining material from river bed have come down by ~90%. Sales of two wheelers and other consumer discretionary items have witnessed contraction. Foreign Institutional Investors remained net sellers in equities during December 2016 and withdrew funds to the tune of INR bn amidst uncertainty over US further rate hike and buoyant macro-economic indicators. During the period (April-Dec'16), foreign institutional investors have poured INR bn vs bn being poured in by Domestic Institutional Investors (DIIs). The current sentiments in equity markets has kept investors wary due to geopolitical events. Trade Deficit: India trade deficit for the period Apr-Nov US $ million which is 25.28% lower than the deficit of US $ million during the same period a year ago. With trade data, exports grew by 3.92% in rupee terms. Imports during Nov 16 US $ million which is 12.96% higher in rupee terms as against the same period a year ago. Within imports, oil and non-oil imports grew by 5.89% and 11.70% in Nov 16 respectively. Outlook The terminal month of 2016 started on a cautious note with benchmark indices (Nifty & Sensex) dipping to 7908 (26 Dec-2016) in the wake of continued selling by Foreign Portfolio Investors (FPI). Rupee also came under pressure. Further to this, closing of Calender year 2016 and long holidays of Christmas and New Year Day restricted trading activities in capital markets. The Nifty tumbled down 11.66% from its peak (8952 Sep 16) on the back of several domestic and global developments but is still trading at a higher premium as compared to other emerging markets economies (EME) and risk reward ratio does not seem favourable considering growth estimates in mind. Weak industrial production numbers, delay in GST, rising crude prices and US President blunt talk over visas dampened sentiments. Earning growth for the remaining quarters is likely to come under pressure in the wake of demonetization. However, the extent of pressure cannot be quantified properly. Share prices of those businesses should witness more correction in which contribution of fixed cost to total cost is high as volume growth would take a hit. Initial Jobless Claims, Non Payrolls, Global & Domestic Interest Rates, Crude Oil Prices and Corporate Earnings should further shape the trajectory of Nifty in near term.

6 Equity : Diversified Fund Jan 2017 Mutual Fund Performance Update Auto Energy Fin. IT Pharma Services Others Corpus Absolute Compound Annualized Services (Cr.) 3M 6M 1Y 3Y Axis Equity Fund Axis Focused 25 Fund Birla Sun Life Advantage Fund Birla Sun Life Equity Fund BNP Paribas Equity Fund Canara Robeco Equity Diversified DSP BlackRock Equity Fund DSP BlackRock Focus 25 Fund Franklin India Flexi Cap Fund Franklin India High Growth Companies Franklin India Prima Plus HDFC Capital Builder Fund HDFC Equity Fund HDFC Top HSBC India Opportunities Fund ICICI Prudential Multicap Fund ICICI Prudential Top 100 Fund Invesco India Growth Fund Kotak Select Focus Fund L&T Equity Fund Mirae Asset India Opportunities Fund Motilal Oswal MOSt Focused 25 Fund Principal Growth Fund R*Shares Gold BeES Reliance Equity Opportunities Fund Reliance Growth Reliance RSF - Equity Reliance Vision SBI Magnum Equity Fund SBI Magnum Global Fund SBI Magnum Multi Cap Fund SBI Magnum Multiplier Fund Tata Equity Opportunities Fund Tata Ethical Fund UTI Equity Fund UTI Mastershare UTI Opportunities Fund Equity : Mid & Small Cap Fund Axis Midcap Fund BNP Paribas Mid Cap Fund Canara Robeco Emerging Equities DSP BlackRock Micro Cap Fund Franklin India Prima Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential MidCap Fund IDFC Premier Equity Fund Edelweiss Mid and Small Cap Fund Mirae Asset Emerging Bluechip Fund Principal Emerging Bluechip Fund Reliance Mid & Small Cap Fund Reliance Small Cap Fund SBI Magnum Midcap Fund Sundaram Select Midcap UTI Mid Cap Fund Portfolio Nov 30, 2016 & Return Dec 31,

7 Equity : Tax Saving Funds Jan 2017 Mutual Fund Performance Update Auto Energy Fin IT Pharma Services Others Corpus Absolute Compound Annualized Services (Cr.) 3M 6M 1Y 3Y Compound Annualized Axis Long Term Equity Fund Birla Sun Life Tax Plan Birla Sun Life Tax Relief BNP Paribas Long Term Equity Fund Canara Robeco Equity Taxsaver DSP BlackRock Tax Saver Fund Franklin India Taxshield HDFC Long Term Advantage Fund HDFC Taxsaver ICICI Prudential LT Equity (Tax Saving) IDBI Equity Advantage Fund - Reg Invesco India Tax Plan L&T Tax Advantage Fund Reliance Tax Saver (ELSS) Fund SBI Magnum Tax Gain Scheme Equity : Large Cap Funds Birla Sun Life Frontline Equity Fund Birla Sun Life Top 100 Fund DSP BlackRock Top 100 Equity Fund Franklin India Bluechip ICICI Prudential Focused Bluechip Equity ICICI Prudential Select Large Cap IDBI India Top 100 Equity Fund Reliance Focused Large Cap Fund Reliance Top 200 Fund SBI Bluechip Fund Tata Large Cap Fund UTI Mastershare Fund Equity : Index Funds Birla Sun Life Index Fund Franklin India Index Fund - NSE Nifty Plan HDFC Index Fund - Nifty Plan HDFC Index Fund - Sensex Plan HDFC Index Fund - Sensex Plus Plan ICICI Prudential Index Fund ICICI Prudential Nifty Junior Index Fund IDBI Nifty Index Fund IDBI Nifty Junior Index Fund IDFC Nifty Fund - Reg Reliance Index Fund - Nifty Plan SBI Nifty Index Fund UTI Nifty Fund Equity : Dividend Yield Funds Birla Sun Life Dividend Yield Plus BNP Paribas Dividend Yield Fund Principal Dividend Yield Fund Tata Dividend Yield Fund - Reg UTI Dividend Yield Fund Portfolio Nov 30, 2016 & Return Dec 31,

8 Equity : Balanced Funds Jan 2017 Mutual Fund Performance Update Auto Energy Fin IT Pharma Services Others Corpus Absolute Compound Annualized Services (Cr.) 3M 6M 1Y 3Y Birla Sun Life Balanced Canara Robeco Balance DSP BlackRock Balanced Fund HDFC Balanced Fund HDFC Prudence Fund ICICI Prudential Balanced ICICI Prudential Balanced Advantage Reliance RSF - Balanced SBI Magnum Balanced Fund Tata Balanced Fund - Reg UTI Balanced Fund Equity : ETF Funds ICICI Prudential Nifty 100 iwin ETF ICICI Prudential Sensex iwin ETF Kotak Nifty ETF MOSt Shares M MOSt Shares NASDAQ R*Shares Bank BeES R*Shares Consumption ETF R*Shares CNX 100 ETF R*Shares Hang Seng BeES R*Shares Nifty BeES R*Shares NV20 ETF SBI ETF Sensex Equity : Arbitrage Funds Birla Sun Life Enhanced Arbitrage DHFL Pramerica Equity Income Fund HDFC Arbitrage Fund - Ret ICICI Prudential Equity - Arbitrage IDFC Arbitrage Fund - Reg IDFC Arbitrage Plus Fund - Reg Invesco India Arbitrage Fund JM Arbitrage Advantage Fund - Reg Kotak Equity Arbitrage Fund - Reg Reliance Arbitrage Advantage SBI Arbitrage Opportunities UTI Spread Fund - Growth Equity : Thematic Funds Birla Sun Life India GenNext Birla Sun Life MNC Fund Franklin Build India Fund ICICI Pru Exports & other Services Fund L&T India Special Situations Fund Reliance Pharma Fund SBI Pharma Fund UTI MNC Fund UTI Transportation & Logistics Fund Portfolio Nov 30, 2016 & Return Dec 31, 2016 *CA : Compound Annualized 8

9 Jan 2017 Mutual Fund Performance Update AAA & AA & AA+ Sov. A & A+ Others Cash Equity Corpus Avg. Exp. Simple Annualized CA* A1 Plus & A1 & A- (Cr.) Maturity 1M 3M 6M 1Y Debt : MIP Funds Axis Income Saver Fund Birla Sun Life MIP II - Savings Birla Sun Life MIP II - Wealth Birla Sun Life Monthly Income BNP Paribas MIP Canara Robeco Monthly Income Plan DSP BlackRock MIP Fund Franklin India MIP HDFC MIP - LTP HDFC MIP - STP HDFC Multiple Yield Fund - Plan HSBC MIP - Growth ICICI Prudential MIP - Cumulative ICICI Prudential MIP IDFC Monthly Income Plan Kotak Monthly Income Plan Reliance MIP SBI Magnum MIP UTI - MIS - Advantage Fund - Growth UTI Monthly Income Scheme AAA & A1 AA & Sov. A & A+ Others Cash Corpus Avg. Exp. Simple Annualized CA* Plus AA+ &A1 &A- (Cr.) Maturity 7D 1M 3M 6M 1Y Debt: Short-term Funds Birla Sun Life Medium Term Birla Sun Life Short Term Fund Birla Sun Life Treasury Optimizer Plan DSP BlackRock Income Opp. Fund Franklin India STIP HDFC HIF - S T P HDFC Short Term Opportunities Fund HDFC Short Term Plan ICICI Pru Banking & PSU Debt Fund ICICI Pru STP IDFC SSIF - MTP IDFC SSIF - Short Term Reliance Medium Term Fund Reliance Short Term Fund SBI Short Term Debt Fund Tata Short Term Bond Fund Taurus Short Term Income Fund UTI Short Term Income Fund - Ret Debt: Income Funds Birla Sun Life Income Plus DHFL Pramerica B&P Debt Fund DHFL Pramerica MT Income Fund DSP BlackRock Strategic Bond Fund HDFC Corporate Debt Opportunities ICICI Prudential Income Opportunities ICICI Prudential LTP IDFC D B F (Re-Launched) IDFC SSIF - Invt Plan Reliance Corporate Bond Fund Portfolio Nov 30, 2016 & Return Dec 31, 2016 *CA : Compound Annualized 9

10 Jan 2017 Mutual Fund Performance Update AAA & AA & AA+ Sov. A & A+ Others Cash Corpus Modified Exp. SimpleAnnualized CA* A1 Plus & A1 & A- (Cr.) Duration 7D 1M 3M 6M 1Y Return % Debt: Ultra Short-term Funds Axis Treasury Advantage Fund - Growth Baroda Pioneer Treasury Advantage A Birla Sun Life Cash Manager Birla Sun Life Floating Rate LTP Birla Sun Life Savings Fund DHFL Pramerica Low Duration Fund DHFL Pramerica Ultra Short-Term Fund DSP BlackRock Money Manager Edelweiss Treasury Fund Franklin India Low Duration Fund Franklin India Ultra Short Bond Retail HDFC Cash Mgmt - Treasury Advantage HDFC F R I F - STF - Growth ICICI Prudential FIP Reg - Growth ICICI Prudential Savings Fund - Growth ICICI Prudential Ultra ST Plan IDFC Money Manager - Invt Plan IDFC Money Manager - Treasury Plan IDFC Ultra Short Term Fund Religare Invesco Credit Opportunities Fund Religare Invesco Ultra Short Term Fund JM Floater Long Term Fund JM Money Manager Fund - Super Plus Plan Kotak Treasury Advantage Fund L&T Ultra Short Term Fund LIC Nomura MF Savings Plus Fund Principal low Duration Fund Reliance Money Manager Fund SBI Ultra Short Term Debt Fund - Growth Sundaram Ultra Short Term Tata Floater Fund Taurus Ultra Short Term Bond Fund - Ret UTI Floating Rate Fund - STP UTI Treasury Advantage Fund Debt: Liquid Funds Axis Liquid Fund Birla Sun Life Cash Plus DHFL Pramerica Insta Cash Plus DSP BlackRock Liquidity Fund Franklin India TMA HDFC Cash Mgmt Fund - Savings Plan HDFC Liquid Fund ICICI Prudential Liquid ICICI Prudential Money Market IDFC Cash Fund Invesco India Liquid Fund Kotak Floater - ST L&T Liquid Fund LIC MF Liquid Fund Reliance Liquid Fund - TP SBI Premier Liquid Fund UTI-Liquid Cash Plan Portfolio Nov 30, 2016 & Return Dec 31, 2016 *CA : Compound Annualized 10