investment newsletter October 2016

Monthly Equity Roundup – October 2016

S&P BSE Sensex Nifty 50 Index 29500.00 9000.00

28500.00 8750.00 Nifty 50 Nifty

27500.00 8500.00

S&P BSES&P Sensex

16 16 16

16

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-

Oct Oct Oct

Sep

- - -

-

20 30 10 30

October 2016 – Review

Indian equity market climbed during the month following a 25 bps cut in repo rate by the Reserve (RBI), and the Wholesale Price Index (WPI)-based inflation data declining to 3.57% in Sep from 3.74% in Aug. Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.23% and 0.17% to close at 27,930.21 points and 8,625.70 points, respectively. Meanwhile mind and small caps continue to outperform, with S&P BSE Mid-Cap gaining 2.33% and S&P BSE Small-Cap gaining 6.28%. According to data from the National Securities Depository Ltd, foreign portfolio investors remained net seller of domestic stocks worth Rs. 4,306.26 crore in Oct as against net purchase of Rs. 10,443.25 crore recorded in the previous month. Domestic mutual funds remained net buyers in the equity segment to the tune of Rs. 9,128.70 crore in Oct.

The month started on a positive note with the Indian equity market surging on account of the repo rate cut of 25 bps by RBI’s Monetary Policy Committee (MPC) in its first policy Institutional Flows in Equities review. The Committee also hinted at the fact that a normal FII MF 1000 monsoon could propel the growth momentum, in turn pushing agricultural growth and rural demand. Growth of India’s core -250 sector output data by 3.2% in Aug vis-a-vis 3.0% climb in Jul, Crores in Rs.

-1500

16 16 16

16

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and the World Bank saying that India's GDP growth will -

Oct Oct Oct

Oct

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remain strong at 7.6% in 2016 and 7.7% in 2017, also added 1

11 21 31 to the gains. Strong cues from Asian peers also helped the market. PMI data across regions came strong. Minutes of the U.S. Federal Reserve Open Market Committee indicated chances of a rate hike soon if the country’s economy continued to grow stronger. In India, although WPI-based inflation came down 3.57% in Sep from 3.74% in Aug, triggered by a slip in food inflation, the positive impact was offset by an IT major lowering its revenue guidance for FY17. Investors turned positive again after U.S. Presidential election debates and opinion polls suggested Democrats winning the election.

Goods and Services Tax (GST) Council’s three-day meet kept investors on their toes, while certain sectors snapped apprehending that higher GST on certain products would raise product prices and bringing their volume growth down in future. Good show by some banking stocks, better earnings performance by certain corporates, gains in regional equities, and hopes of good earnings results from several businesses, supported the markets. Also, the market looked ahead at the GST rates to be decided in the next GST Council meet. On the other hand though, gains were limited by some industry heavyweights putting up unsatisfactory performance, expiry of October derivatives, and feeble global cues. However, the market reached another low following an industry bellwether’s chairperson stepping down from the role.

On the BSE sectoral front, most of the sectoral indices closed in green. S&P BSE Oil & Gas, up 8.26%, was the top gainer, trailed by S&P BSE PSU (6.34%), S&P BSE Metal (5.67%) and S&P BSE Basic Material (5.5%). Oil sector gained because of improving fundamentals and expectations of better results from gas companies. Metal sector gained because steel manufacturing companies went up following the government’s extension of the minimum import price on 66 steel products by an additional two months to protect the industry against cheap imports. MPC lowering its repo rate in its policy review boosted gains in rate-sensitive sectors. S&P BSE Oil & Gas 8.26% S&P BSE PSU 6.34% S&P BSE METAL 5.67% S&P BSE CD 3.02% S&P BSE Realty 2.91% S&P BSE CG 2.33% S&P BSE HC 1.80% S&P BSE Bankex 1.46% S&P BSE Power Index 0.83% S&P BSE FMCG 0.59% S&P BSE AUTO -0.21%

S&P BSE Teck -1.88% S&P BSE IT -1.92%

Global Economy:

U.S. equity markets witnessed considerable amount of volatility over the month and finally closed in the red. Uncertainty over the U.S. Fed’s stance on the interest rate hike continued to generate mixed reaction among market participants. Concerns over the health of the global economy and the uncertainty regarding impending U.S. Presidential elections further weighed on investor sentiment. In addition, disappointing corporate earnings continued to be a spoilsport. European markets closed in the green after witnessing initial volatility. A series of encouraging economic data supported buying interest. Easing concerns over harsher impact of “Brexit” provided additional support. The end of the political deadlock in Spain also generated positive vibes. However, the upside was limited after the European Central Bank (ECB) defied market expectations by keeping its key interest rates unchanged for the fifth consecutive session and retained its asset purchases program.

Economic Update

Core sector output grew 5% YoY in Sep 2016 Core sector output jumped 5% YoY in Sep 2016, better than 3.2% rise in the previous month and 3.7% increase in the same period a year ago, due to strong growth in the steel and refinery products sectors. Steel and refinery products sectors surged 16.3% and 9.3% YoY, respectively, during the reported period. Electricity sector grew 2.2% YoY, faster than the 0.1% growth in the previous month but much slower than 11.4% growth recorded a year ago. Fiscal Deficit stood at Rs. 4.47 lakh crore for Apr-Sep period of current fiscal Government data showed that India’s fiscal deficit for the period from Apr to Sep stood at Rs. 4.47 lakh crore or 83.9% of the budgeted target for this fiscal compared with 68.1% in the corresponding period of the previous year. The hike in fiscal deficit was on account of elevated public spending and higher salaries outgo. Revenue deficit stood at Rs. 3.25 lakh crore, or 92.1% of the budgeted estimate. RBI lowered repo rate by 25 bps to 6.25% Reserve Bank of India’s Monetary Policy Committee (MPC) lowered repo rate by 25 bps to 6.25% in its fourth monetary policy review meeting. Consequently, the reverse repo rate was adjusted to 5.75%, and the marginal standing facility rate and the bank rate to 6.75%. All the six members of the monetary policy committee voted in favour of the decision IIP slips 0.7% in Aug Government data showed that India’s industrial output fell 0.7% YoY in Aug. Manufacturing output fell 0.3% in Aug while mining production contracted 5.6%. Electricity output expanded 0.1% during the period under review. Capital goods output contracted 22.2% in Aug, while basic goods production grew 3.2%. Intermediate goods’ output rose 3.6% during the same period.

Outlook

The outcome of the U.S. Presidential elections scheduled on Nov 8 is the next big trigger for the equity markets as the recent polls show an increasingly tight race in on the cards that could go either way. The outcome will have a bearing as to what stance the U.S. government adopts on key issues such as foreign policy, trade relations, and immigrants that are expected to have a direct impact on the markets across the globe. Investors, who up till now hoped for a soft "Brexit" and grew worried of a hard one, will also keep a tab as to how the subsequent developments surrounding "Brexit" unfolds after the High Court in London in a landmark decision ruled that the U.K. Parliament have to approve the process of Britain's withdrawal from the European Union. Back home, the government finalised a 4-tier GST tax structure of 5%, 12%, 18%, and 28%, where lower rates will be applicable for essential items and the highest rates for luxury and de-merit goods. However, the focus would now go to the product classification and categorization in these slabs.

Monthly Debt Roundup – October 2016

10-year Benchmark Yield Upbeat economic data 6.98% from the U.S. and concerns of an interest rate hike by the U.S. Fed 6.94% impacted bond yields Expectation of announcement to conduct 6.90% OMO purchases by RBI RBI lowered key policy repo rate by 25 bps

YTM %) (inYTM 6.86%

6.82%

6.78% 30-Sep 4-Oct 8-Oct 12-Oct 16-Oct 20-Oct 24-Oct 28-Oct Source : CCIL

Fixed Income Overview

Particulars Oct-16 Sep-16 Oct-15 Exchange Rate (Rs./$) 66.86 66.66 65.22 WPI Inflation (In %) 3.39 3.57 -3.70 10 Yr Gilt Yield (In %) 6.89 6.96 7.64 5 Yr Gilt Yield (In %) 6.71 6.88 7.68 5 Yr Corporate Bond Yield (In %) 7.36 7.45 8.14 Source: Reuters, Bharti AXA Life Insurance

Bond yields fell for the fourth consecutive month after the Reserve Bank of India (RBI) lowered key policy repo rate by 25 bps, in line with expectations. RBI’s steps towards neutral liquidity in the banking system provided further support. However, increasing chances of rate hike by the U.S. Federal Reserve in its Dec policy review restricted gains in the domestic bond market. As a result, yield on the 10-year benchmark bond (7.59% GS 2026) dropped 7 bps to close at 6.89% from the previous month’s close of 6.96%, after trading in a range of 6.80% to 6.90%. Yield on the new 10-year benchmark bond (6.97% GS 2026) also fell 3 bps to close at 6.79% from the previous month’s close of 6.82%. During the month, bond yields moved in the region of 6.68% to 6.79%.Bond yields fell initially on expectations of monetary easing by RBI. It fell further after India’s newly-formed Monetary Policy Committee (MPC) retained its accommodative stance and lowered key policy repo rate by 25 bps. Increasing hopes that adequate monsoon in the current year will keep food inflation under control coupled with expectation of lower interest rates boosted market sentiment. Yields fell further on better than expected U.S. non-farm payroll employment data for Sep, which eased concerns over a near-term rate hike by the U.S. Federal Reserve. Announcement of Open Market Operations (OMO) and decline of retail inflation to 13-month low in Sep further boosted sentiment.

However, trend reversed after investors preferred to book profits from the recent rally. Also, weak global risk sentiment dampened demand for domestic debt. Concerns of an interest rate hike by the U.S. Federal Reserve in Dec also weighed on investors. Upbeat economic data from the U.S. region led to further increase in bond yields. Investors also remained on the sidelines before the outcome of the U.S. Presidential election, due on Nov. 8.

On the macroeconomic front, MPC lowered repo rate by 25 bps to 6.25% in its first meeting. Consequently, the reverse repo rate was adjusted to 5.75%, and the marginal standing facility rate and the bank rate to 6.75%. All the six members of the MPC voted in favour of the decision.Consumer Price Index (CPI)-based inflation fell to 4.31% in Sep from 5.05% in the preceding month, while the consumer food price index stood at 3.88% in Sep, lower than 5.91% in the previous month. Similarly, Wholesale Price Index (WPI)-based inflation also fell to 3.57% in Sep from 3.74% in Aug. WPI for Jul was also revised to 3.72% from 3.55% earlier. India’s industrial output fell 0.7% YoY in Aug. Manufacturing output fell 0.3% in Aug, while mining production contracted 5.6%.Liquidity remained tight during the month, due to currency leakage amid the ongoing festive season and redemption of Foreign Currency Non-Resident (FCNR’s) deposits. Average net absorption of liquidity by RBI through variable repo rate and reverse repo auctions stood at Rs. 12,564.33 crore in Oct from Rs. 20,985.70 crore in Sep.

Data from RBI showed that banks’ net average borrowing from the central bank through the LAF window stood at Rs. 3,016.06 crore in Oct compared with the previous month’s average lending of Rs. Rs. 2,151.13 crore. Banks’ average borrowings under the Marginal Standing Facility (MSF) window declined to Rs. 510.63 crore compared with the previous month’s average borrowing of Rs. 1,026.05 crore. After taking into account the entire gamut of LAF, MSF, term repo, and reverse repo, the average net absorption of liquidity by RBI stood at Rs. 8,538.83 crore, lower compared with Rs. 22,155.39 crore in Sep. Call rates also fell to 6.22% in Oct from 6.45% in Sep. RBI conducted OMO for an aggregate amount of Rs. 10,000 crore for Government Securities (GS) namely 7.28% GS 2019, 7.16% GS 2023, 8.15% GS 2026, 9.20% GS 2030, 7.40% GS 2035. The cut-off prices stood at Rs. 101.47 (6.65%), Rs. 101.11 (6.95%), Rs. 107.00 (7.16%), Rs. 117.30 (7.21%), and Rs. 102.13 (7.19%), respectively. The auction was fully subscribed.

Yield Curve 7.25% 7.15%

7.05%

6.95%

6.85%

6.75%

6.65%

6.55% YTM 6.45% 1 2 3 4 5 6 7 9 10 15

Period Source: Reuters

Corporate Bond:

Yield on gilt securities (annualized) fell across maturities in the range of 1 bps to 17 bps, with the exception of 11-year and 14 to 30 years’ maturities, where yields increased by up to 4 bps. Highest fall was seen on 1- and 2-year papers, while highest increase was on 19-year paper. Corporate bond yields also dropped across the curve in the range of 1 bps to 17 bps. The maximum drop was witnessed on 1-year paper and the minimum on 15-year paper. Difference in spread between AAA corporate bond and gilt expanded on 2 to 9 years’ maturities in the range of 5 to 11 bps. Spread on 1- and 10-year papers remained unchanged, while contracted on 15-year paper by 4 bps.

Global

On the global front, European Central Bank in its monetary policy review kept interest rates unchanged for the fifth consecutive session. The refinance rate remained unchanged at a record low of 0%. The deposit rate was maintained at - 0.40% and the marginal lending facility rate at 0.25%. According to the minutes of the Sep Federal Open Market Committee meeting, doubt has emerged over the timing of the interest rate hike by the U.S. Federal Reserve due to different views of the voting members. However, Fed seems unlikely to raise interest rates until Dec, as the Presidential election in Nov might pose some economic uncertainties.

Outlook

Liquidity condition will remain in focus during the month and investors will look forward to RBI’s pace in conducting open market operations. Supply of central government securities is likely to be lower in H2FY17 compared with H1FY17, whereas the supply of state government securities is likely to be higher considering the trend witnessed in the last couple of years. Trading of new 10-year benchmark bond (6.97% GS 2026) will also be closely monitored by investors. The upcoming U.S. Presidential elections and the events preceding it will also remain in sharp focus. Moving forward, the impact of implementing 7th Pay Commission’s suggestions, transit to GST, and crude oil prices on the headline inflation will be critical. Grow Money Fund ULIF00221/08/2006EGROWMONEY130

Fund Performance Asset ClassFund Performance % To Fund Fund Benchmark Cash 5% 3 Months 2.31 0.76 6 Months 15.80 11.83 1 year 12.89 8.93 Since Inception 11.74 10.40 Benchmark: Nifty 100 *Inception Date- 24 Aug 2006, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 38507.33 95%

Sector Allocation % To Fund Equity portfolio % To Fund MARUTI UDYOG LTD 5.51 Others 29.91 HDFC BANK LTD 5.14 HDFC LTD 4.44 Commercial Vehicles 2.69 TECHNOLOGIES LTD 3.65 ITC LTD 3.35 Cigarettes 3.35 LTD 3.03 LARSEN & TOUBRO LTD 3.00 Engineering- 3.90 LTD 2.70 Designing-… INDUSIND BANK LTD 2.44 LTD 2.42 Computers - Software 5.32 ICICI BANK LTD 2.41 ULTRA TECH CEMENT LTD 2.18 Cement 5.42 LTD 2.09 M&M LTD 2.03 Housing Finance 5.55 SUN PHARMACEUTICALS INDUSTRIES 2.02 LTD 1.90 PHARMACEUTICALS 5.78 LTD 1.81 CORP LTD 1.77 Refineries/Marketing 6.12 1.73 POWER GRID CORPORATION OF INDIA LTD 1.46 Passenger/Utility 10.57 HERO HONDA MOTORS LTD 1.43 Vehicles LTD 1.36 Others 36.67 Banks 15.93 Cash And Current Assets 5.46 Grand Total 100.00 0 10 20 30 40 Growth Opportunities Pension Fund ULIF00814/12/2008EGRWTHOPRP130

Fund Performance Asset Class Fund Performance % To Fund

Fund Benchmark Cash 3% 3 Months 3.57 2.24 6 Months 16.64 13.74 1 year 13.26 11.01 Since Inception 18.38 16.60 Benchmark: Nifty 500 *Inception Date- 10 Dec 2008, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 651.41 97% Sector Allocation % To Fund Equity portfolio % To Fund

MARUTI UDYOG LTD 6.58 Others 35.26 HDFC BANK LTD 3.99 Lpg/Cng/Png/Lng HDFC LTD 3.63 2.53 INFOSYS TECHNOLOGIES LTD 3.15 Supplier TATA MOTORS LTD 3.00 Paints 2.95 INDUSIND BANK LTD 2.65 ULTRA TECH CEMENT LTD 2.59 Engineering- 3.12 KOTAK MAHINDRA BANK LTD 2.45 Designing-… RELIANCE INDUSTRIES LTD 2.36 Computers - 4.35 LARSEN & TOUBRO LTD 2.30 Software INDIAN OIL CORP LTD 1.96 YES BANK LTD 1.93 Housing Finance 4.70 ITC LTD 1.88 PETRONET LNG LTD 1.80 Pharmaceuticals 4.83 SUN PHARMACEUTICALS INDUSTRIES 1.79 HERO HONDA MOTORS LTD 1.67 Cement 6.69 WHIRLPOOL OF INDIA LIMITED 1.63 EICHER MOTORS LTD 1.59 Refineries/Marketi 6.75 SHREE CEMENT LTD 1.54 ng VEDANTA LIMITED 1.51 Passenger/Utility 10.73 POWER GRID CORPORATION OF INDIA LTD 1.46 Vehicles ICICI BANK LTD 1.36 Others 43.72 Banks 14.64 Cash And Current Assets 3.45 Grand Total 100.00 0 10 20 30 40 Grow Money Pension Fund ULIF00526/12/2007EGROWMONYP130

Fund Performance Asset Class Fund Performance % To Fund

Fund Benchmark Cash 5% 3 Months 2.65 0.76 6 Months 16.57 11.83 1 year 13.38 8.93 Since Inception 6.26 4.34 Benchmark: Nifty 100 *Inception Date- 03 Jan 2008, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 5608.12 95%

Sector Allocation % To Fund Equity portfolio % To Fund MARUTI UDYOG LTD 5.59 Others 31.27 HDFC BANK LTD 4.77 HDFC LTD 4.54 Commercial Vehicles 2.60 INFOSYS TECHNOLOGIES LTD 3.53 ITC LTD 3.19 Cigarettes 3.19 TATA MOTORS LTD 3.02 RELIANCE INDUSTRIES LTD 2.95 Engineering-Designing- 3.79 LARSEN & TOUBRO LTD 2.83 Construction VEDANTA LIMITED 2.50 ICICI BANK LTD 2.47 Computers - Software 5.19 EICHER MOTORS LTD 2.31 ULTRA TECH CEMENT LTD 2.19 Cement 5.27 INDUSIND BANK LTD 2.16 ASIAN PAINTS LTD 2.06 Housing Finance 5.51 SUN PHARMACEUTICALS INDUSTRIES 1.98 M&M LTD 1.97 PHARMACEUTICALS 5.84 YES BANK LTD 1.93 KOTAK MAHINDRA BANK LTD 1.88 Refineries/Marketing 6.50 HINDUSTAN PETROLEUM CORP LTD 1.84 POWER GRID CORPORATION OF INDIA LTD 1.62 Passenger/Utility 10.59 PETRONET LNG LTD 1.44 Vehicles AUROBINDO PHARMA LTD 1.40 Others 37.18 Banks 15.61 Cash And Current Assets 4.64 Grand Total 100.00 0 10 20 30 40 Grow Money Pension Plus Fund ULIF01501/01/2010EGRMONYPLP130

Fund Performance Asset ClassFund Performance % To fund

Fund Benchmark Cash 5% 3 Months 2.57 0.76 6 Months 16.16 11.83 1 year 13.37 8.93 Since Inception 10.98 9.03 Benchmark: Nifty 100 *Inception Date- 22 Dec 2009, <1yr ABS & >=1yr CAGR

Assets Under Management (in Rs. Lakhs) Equity 2920.69 95%

Sector Allocation % To Fund Equity portfolio % To Fund

MARUTI UDYOG LTD 5.45 Others 30.14 HDFC BANK LTD 4.98 HDFC LTD 4.53 Commercial Vehicles 2.73 INFOSYS TECHNOLOGIES LTD 3.67 ITC LTD 3.41 Cigarettes 3.41 TATA MOTORS LTD 3.21 LARSEN & TOUBRO LTD 2.95 Engineering-Designing- 3.77 RELIANCE INDUSTRIES LTD 2.80 Construction ICICI BANK LTD 2.76 INDUSIND BANK LTD 2.51 Computers - Software 5.20 EICHER MOTORS LTD 2.44 SUN PHARMACEUTICALS INDUSTRIES 2.36 Housing Finance 5.55 VEDANTA LIMITED 2.26 ULTRA TECH CEMENT LTD 2.18 Cement 5.59 ASIAN PAINTS LTD 2.10 M&M LTD 2.10 PHARMACEUTICALS 5.85 HINDUSTAN PETROLEUM CORP LTD 1.81 YES BANK LTD 1.64 Refineries/Marketing 6.34 POWER GRID CORPORATION OF INDIA LTD 1.63 KOTAK MAHINDRA BANK LTD 1.62 Passenger/Utility 10.77 HERO HONDA MOTORS LTD 1.50 Vehicles LTD 1.45 Others 35.86 Banks 15.88 Cash And Current Assets 4.77 Grand Total 100.00 0 10 20 30 40 Growth Opportunities Fund ULIF00708/12/2008EGROWTHOPR130

Fund Performance Asset ClassFund Performance % To fund

Fund Benchmark Cash 2% 3 Months 3.44 2.24 6 Months 17.40 13.74 1 year 12.66 11.01 Since Inception 18.91 16.69 Benchmark: Nifty 500 *Inception Date- 10 Dec 2008, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 4742.46 98%

Sector Allocation % To Fund Equity portfolio % To Fund

MARUTI UDYOG LTD 4.97 Others 36.32 HDFC BANK LTD 4.72 Lpg/Cng/Png/Lng HDFC LTD 3.84 2.58 Supplier INFOSYS TECHNOLOGIES LTD 3.24 TATA MOTORS LTD 2.78 Engineering-Designing- 3.13 ULTRA TECH CEMENT LTD 2.59 Construction RELIANCE INDUSTRIES LTD 2.48 Paints 3.14 INDUSIND BANK LTD 2.44 KOTAK MAHINDRA BANK LTD 2.39 LARSEN & TOUBRO LTD 2.32 Housing Finance 4.63 HERO HONDA MOTORS LTD 2.06 YES BANK LTD 1.95 Computers - Software 4.87 ITC LTD 1.88 SUN PHARMACEUTICALS INDUSTRIES 1.87 Pharmaceuticals 5.49 PETRONET LNG LTD 1.83 EICHER MOTORS LTD 1.66 Refineries/Marketing 6.30 SHREE CEMENT LTD 1.59 AUROBINDO PHARMA LTD 1.57 Cement 6.86 VEDANTA LIMITED 1.57 POWER GRID CORPORATION OF INDIA LTD 1.46 Passenger/Utility 9.11 ASIAN PAINTS LTD 1.46 Vehicles HINDUSTAN PETROLEUM CORP LTD 1.45 Others 45.42 Banks 15.11 Cash And Current Assets 2.46 Grand Total 100.00 0 10 20 30 40 Growth Opportunities Plus Fund ULIF01614/12/2009EGRWTHOPPL130

Fund Performance Asset ClassFund Performance % To fund Fund Benchmark Cash 4% 3 Months 3.72 2.24 6 Months 17.60 13.74 1 year 12.92 11.01 Since Inception 11.68 8.42 Benchmark: Nifty 500 *Inception Date- 29 Dec 2009, <1yr ABS & >=1yr CAGR

Assets Under Management (in Rs. Lakhs) Equity 21601.37 96% Sector Allocation % To Fund Equity portfolio % To Fund MARUTI UDYOG LTD 5.30 Others 36.98 HDFC BANK LTD 4.47 HDFC LTD 3.32 Nbfc 2.56 INFOSYS TECHNOLOGIES LTD 3.20 TATA MOTORS LTD 2.90 Paints 3.05 INDUSIND BANK LTD 2.55 ULTRA TECH CEMENT LTD 2.44 Engineering-Designing- 3.16 RELIANCE INDUSTRIES LTD 2.39 Construction LARSEN & TOUBRO LTD 2.33 Housing Finance 4.22 KOTAK MAHINDRA BANK LTD 2.09 YES BANK LTD 2.05 WHIRLPOOL OF INDIA LIMITED 1.88 Computers - Software 4.62 HERO HONDA MOTORS LTD 1.86 ITC LTD 1.85 Pharmaceuticals 5.28 PETRONET LNG LTD 1.82 SUN PHARMACEUTICALS INDUSTRIES 1.74 Refineries/Marketing 5.53 EICHER MOTORS LTD 1.64 SHREE CEMENT LTD 1.63 Cement 6.42 AUROBINDO PHARMA LTD 1.62 VEDANTA LIMITED 1.57 Passenger/Utility 9.73 M&M LTD 1.53 Vehicles ICICI BANK LTD 1.42 Others 44.73 Banks 14.81 Cash And Current Assets 3.64 Grand Total 100.00 0 10 20 30 40 Grow Money Plus Fund ULIF01214/12/2009EGROMONYPL130

Fund Performance Asset ClassFund Performance % To Fund

Fund Benchmark Cash 5% 3 Months 2.78 0.76 6 Months 16.62 11.83 1 year 13.49 8.93 Since Inception 11.10 8.67 Benchmark: Nifty 100 *Inception Date- 14 Dec 2009, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 14132.12 95%

Sector Allocation % To Fund Equity portfolio % To Fund MARUTI UDYOG LTD 5.73 Others 31.34 HDFC BANK LTD 4.53 HDFC LTD 4.34 Paints 2.73 INFOSYS TECHNOLOGIES LTD 3.51 ITC LTD 3.09 Cigarettes 3.09 TATA MOTORS LTD 3.03 LARSEN & TOUBRO LTD 2.81 Engineering-Designing- 3.69 RELIANCE INDUSTRIES LTD 2.78 Construction ICICI BANK LTD 2.61 INDUSIND BANK LTD 2.54 Cement 5.03 EICHER MOTORS LTD 2.32 VEDANTA LIMITED 2.22 Computers - Software 5.09 ASIAN PAINTS LTD 2.06 SUN PHARMACEUTICALS INDUSTRIES 1.99 Housing Finance 5.58 M&M LTD 1.92 ULTRA TECH CEMENT LTD 1.89 PHARMACEUTICALS 5.80 YES BANK LTD 1.82 KOTAK MAHINDRA BANK LTD 1.80 Refineries/Marketing 6.29 HINDUSTAN PETROLEUM CORP LTD 1.77 POWER GRID CORPORATION OF INDIA LTD 1.73 Passenger/Utility 10.68 HERO HONDA MOTORS LTD 1.47 Vehicles AUROBINDO PHARMA LTD 1.43 Others 37.62 Banks 15.69 Cash And Current Assets 4.98 Grand Total 100.00 0 10 20 30 40 Growth Opportunities Pension Plus Fund ULIF01801/01/2010EGRWTHOPLP130

Fund Performance Asset ClassFund Performance % To Fund

Fund Benchmark Cash 3 Months 3.45 2.24 2% 6 Months 17.24 13.74 1 year 12.85 11.01 Since Inception 12.58 8.63 Benchmark: Nifty 500 *Inception Date- 25 Jan 2010, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 4454.09 98%

Sector Allocation % To Fund Equity portfolio % To Fund

HDFC BANK LTD 5.48 Others 36.11 MARUTI UDYOG LTD 5.33 HDFC LTD 3.42 Home Appliances 2.67 INFOSYS TECHNOLOGIES LTD 3.26 INDUSIND BANK LTD Engineering-Designing- 2.92 3.17 ULTRA TECH CEMENT LTD 2.89 Construction TATA MOTORS LTD 2.88 Paints 3.60 RELIANCE INDUSTRIES LTD 2.47 LARSEN & TOUBRO LTD 2.35 KOTAK MAHINDRA BANK LTD 2.26 Housing Finance 3.61 WHIRLPOOL OF INDIA LIMITED 2.04 SUN PHARMACEUTICALS INDUSTRIES 2.03 Computers - Software 4.82 YES BANK LTD 1.99 ITC LTD 1.88 Refineries/Marketing 4.98 PETRONET LNG LTD 1.84 ASIAN PAINTS LTD 1.73 PHARMACEUTICALS 5.63 SHREE CEMENT LTD 1.67 EICHER MOTORS LTD 1.67 Cement 7.04 VEDANTA LIMITED 1.62 POWER GRID CORPORATION OF INDIA LTD 1.62 Passenger/Utility 9.73 M&M LTD 1.52 Vehicles HERO HONDA MOTORS LTD 1.49 Others 43.30 Banks 16.29 Cash And Current Assets 2.35 Grand Total 100.00 0 10 20 30 40 Build India Pension Fund ULIF01704/01/2010EBUILDINDP130

Fund Performance Asset ClassFund Performance % To fund

Fund Benchmark Cash 3% 3 Months 3.27 0.76 6 Months 16.72 11.83 1 year 13.24 8.93 Since Inception 9.02 8.21 Benchmark: Nifty 100 *Inception Date- 18 Jan 2010, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 1481.61 97%

Sector Allocation % To Fund Equity portfolio % To Fund HDFC BANK LTD 5.97 Others 32.00 HDFC LTD 5.63 MARUTI UDYOG LTD 4.99 Motor Cycles/Scooters 2.80 INFOSYS TECHNOLOGIES LTD 4.02 TATA MOTORS LTD 3.64 Engineering-Designing- 3.25 RELIANCE INDUSTRIES LTD 2.97 Construction ITC LTD 2.75 Lpg/Cng/Png/Lng 3.37 ICICI BANK LTD 2.63 Supplier LARSEN & TOUBRO LTD 2.42 M&M LTD 2.35 Cement 4.50 HERO HONDA MOTORS LTD 2.33 KOTAK MAHINDRA BANK LTD 2.29 PHARMACEUTICALS 5.81 SUN PHARMACEUTICALS INDUSTRIES 2.18 ULTRA TECH CEMENT LTD 2.11 Refineries/Marketing 6.21 PETRONET LNG LTD 1.95 TCS LTD 1.73 Housing Finance 6.23 EICHER MOTORS LTD 1.72 VEDANTA LIMITED 1.61 Computers - Software 6.31 AUROBINDO PHARMA LTD 1.49 LTD 1.43 Passenger/Utility 10.98 ZEE ENTERTAINMENT ENTERPRISES LTD 1.38 Vehicles HINDUSTAN PETROLEUM CORP LTD 1.37 Others 38.01 Banks 15.48 Cash And Current Assets 3.03 Grand Total 100.00 0 10 20 30 40 Build India Fund ULIF01909/02/2010EBUILDINDA130

Fund Performance Asset ClassFund Performance % To Fund Fund Benchmark Cash 3 Months 3.02 0.76 4% 6 Months 16.33 11.83 1 year 13.38 8.93 Since Inception 10.42 9.79 Benchmark: Nifty 100 *Inception Date- 15 Feb 2010, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Equity 3464.55 96%

Sector Allocation % To Fund Equity portfolio % To Fund HDFC BANK LTD 5.78 Others 31.63 MARUTI UDYOG LTD 4.89 Lpg/Cng/Png/Lng INFOSYS TECHNOLOGIES LTD 4.65 2.68 Supplier HDFC LTD 4.09 TATA MOTORS LTD 3.65 Cigarettes 2.91 RELIANCE INDUSTRIES LTD 3.23 ITC LTD 2.91 Engineering-Designing- 3.02 INDUSIND BANK LTD 2.45 Construction LARSEN & TOUBRO LTD 2.43 ICICI BANK LTD 2.26 Housing Finance 4.73 KOTAK MAHINDRA BANK LTD 2.20 ULTRA TECH CEMENT LTD 2.17 Cement 4.75 SUN PHARMACEUTICALS INDUSTRIES 2.06 M&M LTD 2.03 PHARMACEUTICALS 5.73 TCS LTD 1.92 YES BANK LTD 1.69 Refineries/Marketing 6.90 HERO HONDA MOTORS LTD 1.58 POWER GRID CORPORATION OF INDIA LTD 1.57 Computers - Software 7.19 VEDANTA LIMITED 1.47 GAIL INDIA LTD 1.41 Passenger/Utility 10.57 ZEE ENTERTAINMENT ENTERPRISES LTD 1.39 Vehicles HINDUSTAN PETROLEUM CORP LTD 1.35 Others 39.29 Banks 16.35 Cash And Current Assets 3.53 Grand Total 100.00 0 10 20 30 40 Save and Grow Money Fund ULIF00121/08/2006BSAVENGROW130

AssetFund Class Performance ( % To Fund) Fund Performance Cash Fund Benchmark 3% 2.70 3 Months 2.15 Equity 6 Months 10.40 9.29 36% 1 year 11.14 10.42 Debt Since Inception 9.77 8.98 61% Benchmark: Nifty 100=45%, Crisil Composite Bond Fund Index=55% *Inception Date- 21 Aug 2006, <1yr ABS & >=1yr CAGR Sector Allocation % To Fund Assets Under Management (in Rs. Lakhs) 6700.67 Others 5.33 Commercial Vehicles 1.04 Equity portfolio % To Fund Engineering-… 1.19 MARUTI UDYOG LTD 2.64 Cigarettes 1.25 INDUSIND BANK LTD 2.34 Housing Finance 1.32 KOTAK MAHINDRA BANK LTD 2.18 Computers - Software 1.81 RELIANCE INDUSTRIES LTD 1.98 Pharmaceuticals 2.32 HDFC BANK LTD 1.55 Cement 2.41 YES BANK LTD 1.54 Refineries/Marketing 3.63 SHREE CEMENT LTD 1.45 Passenger/Utility … 4.30 ICICI BANK LTD 1.34 Banks 10.92 STATE BANK OF INDIA LTD 1.26 0 5 10 15 ITC LTD 1.25 Debt Ratings Profile Others 18.01 Grand Total 35.53 AAA & Eq Debt portfolio % To Fund Sovereign 43% 51% 7.61% GOI 2030 6.98 9.57% LIC HOUSING PI 07/09/2017 5.48 7.50% POWER FIN CORP PI 16/08/2021 4.21 AA & Below 7.16% GOI 2023 4.09 6% 9.55% HINDALCO DB 27/06/2022 4.05 Debt Maturity Profile (%To Fund) 8.17% GOI 2044 3.82 8.85% BAJAJFINLTD DB 21/07/2026 3.75 60 46.18 10.25% RGTIL PI 22/08/2021 3.66 40 9.60% EXIM DB 07/02/2024 3.65 20 5.48 9.69 Others 21.65 0 Cash And Current Assets 3.13 0-1 Yrs 3-5 Yrs >5 Yrs Grand Total 64.47 Save and Grow Money Pension Fund ULIF00426/12/2007BSNGROWPEN130

Fund Performance AssetFund Class Performance ( % To Fund)

Fund Benchmark Cash 3% 3 Months 2.59 2.15 6 Months 10.93 9.29 Equity Debt 1 year 10.92 10.42 44% 53% Since Inception 8.67 6.35 Benchmark: Nifty 100=45%, Crisil Composite Bond Fund Index=55% *Inception Date- 03 Jan 2008, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Sector Allocation % To Fund 998.91 Others 6.05 Equity portfolio % To Fund Copper & Copper … 1.13 Engineering-… 1.38 MARUTI UDYOG LTD 3.49 Cigarettes 1.66 INDUSIND BANK LTD 2.95 Computers - Software KOTAK MAHINDRA BANK LTD 2.78 1.84 RELIANCE INDUSTRIES LTD 2.53 Housing Finance 1.85 HDFC BANK LTD 2.20 Pharmaceuticals 2.70 SHREE CEMENT LTD 1.91 Cement 3.12 ICICI BANK LTD 1.66 Refineries/Marketing 4.88 ITC LTD 1.66 Passenger/Utility … 5.63 HDFC LTD 1.64 Banks 14.02 STATE BANK OF INDIA LTD 1.60 0 5 10 15 Others 21.81 Debt Ratings Profile Grand Total 44.24

Debt portfolio % To Fund Sovereign AAA & Eq 36% 48% 9.55% HINDALCO 27/06/2022 8.36 7.50% POWER FIN CORP 16/08/2021 7.06 10.25% RGTIL 22/08/2021 5.58 9.57% LIC HOUSING 07/09/2017 4.08 AA & Below 8.6% GOI 2028 3.57 16% 9.60% EXIM 07/02/2024 3.34 Debt Maturity Profile (% To Fund) 7.60% AXISBANK 20/10/2023 3.01 7.35% GOI 2024 2.88 40 33.64 7.59% GOI 2029 2.62 20 14.97 Others 12.18 4.08 Cash And Current Assets 3.08 0 Grand Total 55.76 0-1 Yrs 3-5 Yrs >5 Yrs True Wealth Fund ULIF02104/10/2010BTRUEWLTHG130

Fund Performance AssetFund Class Performance ( % To Fund) Fund Benchmark Equity Cash 10% 4% 3 Months 3.37 -- Debt 86% 6 Months 10.44 -- 1 year 10.81 -- Since Inception 1.67 --

*Inception Date- 11 Oct 2010, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Sector Allocation % To Fund 13411.14 Others 0.15 Equity portfolio % To Fund Consumer Food 0.20 Diversified 0.31 JK LAKSHMI CEMENT LTD 1.82 Lpg/Cng/Png/Lng … MARUTI UDYOG LTD 1.53 0.35 STATE BANK OF INDIA LTD 1.35 Tv Broadcasting & … 0.39 HDFC LTD 0.93 Nbfc 0.44 KOTAK MAHINDRA BANK LTD 0.92 Motor … 0.45 HERO HONDA MOTORS LTD 0.45 Housing Finance 0.93 CHOLAMANDALAM INVESTMENT AND FINANCE0.44 COMPANY LTDPassenger/Utility … 1.53 ZEE ENTERTAINMENT ENTERPRISES LTD 0.39 Cement 2.15 PETRONET LNG LTD 0.35 Banks 2.60 SHREE CEMENT LTD 0.34 0 2 4 6 8 10 Others 1.00 Debt Ratings Profile Grand Total 9.51 Debt portfolio % To Fund Sovereign 100% 8.79% MAH SDL SG 2021 24.02 8.12% GOI 2020 21.75 8.15% GOI 2022 7.89 8.79% GOI 2021 5.95 8.91% MAH SDL SG 2022 4.02 8.94% GUJ SDL SG 2022 4.00 Debt Maturity Profile (% To Fund) 8.35% GOI 2022 3.98 8.60% MAH SDL SG 2021 3.96 60 53.09 8.19% GOI 2020 3.89 40 33.31 Others 6.95 20 Cash And Current Assets 4.09 0 Grand Total 90.49 3-5 Yrs >5 Yrs Steady Money Fund ULIF00321/08/2006DSTDYMOENY130

Fund Performance AssetFund Class Performance ( % To Fund) Fund Benchmark Cash 3% 3 Months 3.06 3.28 6 Months 7.24 7.22 1 year 11.19 11.64 Since Inception 8.60 7.83 Benchmark: Crisil Composite Bond Fund Index *Inception Date- 05 Sep 2006, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Debt 4637.70 97%

Debt Ratings Profile Debt portfolio % To Fund AAA & Eq 7.61% GOI 2030 11.70 Sovereign 36% 56% 7.16% GOI 2023 7.62 9.55% HINDALCO 27/06/2022 6.53 7.60% AXISBANK 20/10/2023 6.49 8.17% GOI 2044 6.00 AA 7.59% GOI 2029 5.88 & Eq 8% 9.60% EXIM 07/02/2024 5.75 8.85% BAJAJFINLTD 21/07/2026 5.65 7.68% GOI 2023 5.17 8.6% GOI 2028 4.45 Debt Maturity Profile (% To Fund) 8.60% LIC HOUSING 20/06/2018 4.40 9.81% POWER FIN CORP 07/10/2018 3.61 90 7.8% GOI 2021 3.48 77.67 80 8.15% GOI 2026 3.42 10.25% RGTIL 22/08/2021 3.13 70 7.50% POWER FIN CORP 16/08/2021 2.82 60 8.08% GOI 2022 2.73 50 7.35% GOI 2024 2.43 40 H FINANCIAL SERVICES LTD 2.37 10.40% RPT LTD 18/07/2021 0.97 30 12.00% INDIAINFOLINEFINSER 30/09/2018 0.93 20 8.93 10.45 8.2% GOI 2025 0.74 10 Others 0.78 Cash And Current Assets 2.94 0 1-3 Yrs 3-5 Yrs >5 Yrs Grand Total 100.00 Build n Protect Series 1 Fund ULIF00919/05/2009BBUILDNPS1130

Fund Performance AssetFund Class Performance ( % To Fund)

Fund Benchmark Cash 3% 3 Months 3.14 2.56 6 Months 7.34 6.66 1 year 11.16 7.53 Since Inception 6.46 5.33 Benchmark: 10 Years G-Sec* *Inception Date- 19 May 2009, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Debt 428.35 97% Debt Ratings Profile Debt portfolio % To Fund

6.35% GOI 2024 63.61 Sovereign 8.2% GOI 2024 23.49 100% 8.2% GOI 2024 6.15 8% GOI 2026 4.17 Cash And Current Assets 2.57 Grand Total 100.00

Debt Maturity Profile (%To Fund)

120

97.43 100

80

60

40

20

0 0-1 Yrs >5 Yrs Safe Money Fund ULIF01007/07/2009LSAFEMONEY130

Fund Performance AssetFund Class Performance ( % To Fund) Fund Benchmark Cash 3 Months 1.59 1.67 20% 6 Months 3.27 3.63 Debt 1 year 6.72 7.59 80% Since Inception 7.11 7.62 Benchmark: Crisil Liquid Fund Index *Inception Date- 08 Jul 2009, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) 1979.41 Debt Ratings Profile Debt portfolio % To Fund AAA & Eq 11% 182 D TB 01/12/2016 20.09 Sovereign 48% HDFC LTD CP 09/06/2017 8.66 P1+ & Eq L&T FINANCE CP 02/06/2017 8.19 41% KOTAK MAHINDRA PRIME CP 30/06/2017 7.67 364 D TB 25/05/2017 7.30 L&T INFRA FINANCE LTD CP 23/06/2017 5.27 7.75% SBM FD 05/01/2017 5.00 7.90% HDFC Bk FD 17/11/2016 5.00 BAJAJFINLTD CP 19/05/2017 4.84 182 D TB 23/02/2017 4.08 Debt Maturity Profile (% To Fund) 7.75% IDBI BANK FD 20/01/2017 3.54 Cash And Current Assets 20.37 90 Grand Total 100.00 79.63 80 70 60 50 40 30 20 10 0 0-1 Yrs 1-3 Yrs Safe Money Pension Fund ULIF01107/12/2009LSAFEMONYP130

Fund Performance AssetFund Class Performance ( % To Fund)

Fund Benchmark Cash 3 Months 1.64 1.67 4% 6 Months 3.29 3.63 1 year 6.76 7.59 Since Inception 7.06 7.62 Benchmark: Crisil Liquid Fund Index *Inception Date- 08 Jul 2009, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Debt 96% 292.11

Debt Ratings Profile Debt portfolio % To Fund AAA & Eq 364 D TB 25/05/2017 32.97 9% 182 D TB 01/12/2016 25.52 P1+ L&T FINANCE CP 02/06/2017 9.79 & Eq 26% KOTAK MAHINDRA PRIME CP 30/06/2017 8.12 7.75% IDBI BANK FD 20/01/2017 6.85 Sovereign BAJAJFINLTD CP 19/05/2017 6.55 65% HDFC LTD CP 09/06/2017 6.52 Cash And Current Assets 3.68 Grand Total 100.00 Debt Maturity Profile (% To Fund)

120

100 96.32

80

60

40

20

0 0-1 Yrs 1-3 Yrs Steady Money Pension Fund ULIF00626/12/2007DSTDYMONYP130

Fund Performance AssetFund Class Performance ( % To Fund)

Fund Benchmark Cash 3% 3 Months 2.99 3.28 6 Months 7.09 7.22 1 year 11.04 11.64 Since Inception 8.40 8.00 Benchmark: Crisil Composite Bond Fund Index *Inception Date- 03 Jan 2008, <1yr ABS & >=1yr CAGR Assets Under Management (in Rs. Lakhs) Debt 874.78 97% Debt Ratings Profile Debt portfolio % To Fund

8.3% GOI 2040 8.32 Sovereign AAA & Eq 12.00% INDIAINFOLINEFINSER 30/09/2018 7.37 59% 30% 7.16% GOI 2023 7.31 8.6% GOI 2028 6.88 10.25% RGTIL 22/08/2021 6.37 9.60% HFINANCE 22/03/2023 6.29 AA & Below 11% 7.59% GOI 2029 5.98 7.60% AXISBANK 20/10/2023 5.74 7.8% GOI 2021 5.36 10.40% RPT LTD 18/07/2021 5.12 Debt Maturity Profile (% To Fund) 8.08% GOI 2022 4.83 80 8.83% GOI 2023 4.41 69.71 8.15% GOI 2026 3.86 70 9.55% HINDALCO 27/06/2022 3.58 60 7.35% GOI 2024 3.17 7.61% GOI 2030 3.01 50 8.2% GOI 2025 2.45 40 7.50% POWER FIN CORP 16/08/2021 2.30 30 8.17% GOI 2044 1.27 19.48 9.60% EXIM 07/02/2024 1.27 20 8.85% BAJAJFINLTD 21/07/2026 1.20 10 7.37 9.50% SBI 04/11/2025 0.33 0 Others 0.12 1-3 Yrs 3-5 Yrs >5 Yrs Cash And Current Assets 3.43 Grand Total 100.00

Disclaimers: 1.This Investment Newsletter is for information purpose only and should not be construed as financial advice, offer, recommendation or solicitation to enter into any transaction. While all reasonable care has been ensured in preparing this newsletter, Bharti AXA Life Insurance Company limited or any other person connected with it, accepts no responsibility or liability for errors of facts or accuracy or opinions expressed and Policyholder should use his/her own discretion and judgment while investing in financial markets. 2. The information contained herein is as on 31st October 2016. 3. Past performance of the funds, as shown above, is not indicative of future performance or returns. 4. Grow Money Fund, Save n Grow Money Fund, Steady Money Fund, Growth Opportunities Fund, Grow Money Pension Fund, Save n Grow Money Pension Fund, Steady Money Pension Fund, Growth Opportunities Pension Fund, Build n Protect Fund Series 1, Safe Money Fund, Safe Money Pension Fund, Grow Money Plus, Grow Money Pension Plus, Growth Opportunities Plus, Growth Opportunities Pension Plus Fund, Build India Pension, Build India Fund and True Wealth Fund are only the names of the funds and do not indicate its expected future returns or performance. 5. ABS=Absolute Return, CAGR=Compounded Annual Growth Rate 6. Sector allocations as shown in the newsletter are only for presentation purpose and do not necessarily indicate industry exposure.

Bharti AXA Life Insurance Company Limited. (IRDA Regn.No. 130),Regd. Address: 6th Floor, Unit- 601 & 602, Raheja Titanium, Off Western Express Highway, Goregaon (East), Mumbai- 400 063. Toll free: 1800 102 4444 SMS SERVICE to 56677 (We will be in touch within 24 hours to address your query), Email: [email protected], www.bharti-axalife.com Compliance No.: Comp-Nov-2016-2839 CIN – U66010MH2005PLC157108