Highlights from the Seminar: *How GST & Demonetization affect your Asset Classes like Real Estate, Equity, Debt, & Gold. *Investment approach in current geopolitical scenario

1. The Changing face of
India

2. Changing Face – After DEMO & GST
• Financialization of Indian
Economy
• Formalisation of Indian
Economy
• Government spending

3. Financialization of Indian Economy
• On November 8, 2016, Indians had more
money in currency notes than in equity
markets and DMAT accounts
• After DMO, banks had more funds to
finance or give credit
• Main Stream from Cash Economy

4. Cash is NOT King
• You start paying for your daily need from cash to
digital money
• Vendors, Transport & Logistic, Drivers all who are
in this chain get money in bank
• Companies are now focusing to expand their reach
in rural areas

5. IMPACT
ANALYSIS
• ₹ 21.45 lakh Crore
AUM of Indian
Mutual Fund
Industry
• 10 lakh Crore (May 2014) – 20
lakh Crore (May 2017)
Industry AUM
• 1.66 Crores Investors;
• SIP - ₹ 5,516 Crore
SIP Book
• Top 5 (M,D,K,C,B) – 71.53%
• Top 15 -84.09 %
AUM
Contribution
Nov. & Dec. 16 FII sell and Domestic purchase

6. Formalisation of Indian
Economy
• Unorganised Sectors to Organised Sectors
• Sectors - textiles, garments, chemicals, building materials,
where unorganised sectors are large and they give unfair
competition to organised sector
• Impact - Company pay minimum wages, bother about
pollution and environment, pay your tax properly

7. Impact Analysis
• GST is not a TAX REFORM it’s a BUSINESS REFORM
• Changing face – From Trading Hub to Manufacturing Hub
• Price will come down in future when systems get smooth and flawless
• More competitive with global world

8. Government
Spending
• Private Investment is on back foot
• Record of Govt. spending on following sectors:
- Roadways
- Railways
- Defence
- Renewable Energy
- Urban Infrastructure
• Better order book for companies who are into
this business
• More employment and jobs

9. Challenges
• Revenue Slippages during implementation
phase of New Tax (GST)
• Higher Govt Spending
• Bank’s NPA
• Urgency of job creation

10. How it Impacts your Wealth?
• Equity Market
• Debt Market
• Real Estate
• Gold

11. EQUITY – Positive Signs
• Highest Govt. Spending
• Huge Domestic Inflows
• Rural Wages growth

12. Focus
themes and
Key Sectors

13. Global
market –
Positive in
last one year
As on 29 September 2017, Source – Bloomberg. Performance data is in local currency

14. EQUITY
• US - North Korea tension
• Govt. front end Capex – Deficit has
already reached 96% (Apr – Aug) of
full year budget estimate
• FII Selling intensity was highest on
monthly basis after Jan. 2008
• Delay in Earning Growth

15. EQUITY
• Lumpsum – Large Cap & Multi Cap
• Period – 4 years or more
• SIP – Still the best bet

16. DEBT Market
• Recapitalisation of 2.11 Lakh Crore-
• 1.35 Lakh Crore by issuing Recapitalisation Bonds,
• 76,000 Crore from Budgetary Allocation.
• Negative for short Term as Supply increase
• No immediate impact on fiscal deficit.
• More funds to provide credit and accelerate growth in system.
• Effect on earning growth

17. Real Estate

18. Gold
• When the dollar falls, gold typically rises.
• Investors are keen to use the commodity
as a diversifier in their portfolios and
reduce risk as equity markets trade at
elevated levels.
• Can be in your portfolio up to 10% - 15%.

19. Thank You.
Manish P. Hingar
Chief Belief officer
FORM is temporary but CLASS is permanent.
@finhospital