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Decoding the Union Budget 2022 and its Impact on Your Investments

What are the hits and misses of the Union Budget 2022-23? What is the impact on asset outlook for equity, debt and gold? Explore answers to these questions from the webinar deck on u2018Decoding the budget and its impact on your investmentsu2019 sharing valuable insights and outlook for the new financial year.<br>www.Quantumamc.com<br><br>

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Decoding the Union Budget 2022 and its Impact on Your Investments

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  1. DecodingtheUnionBudget2022anditsImpactonYourInvestments Speakers: Arvind Chari, CIO, Quantum Advisors NileshShetty,FundManager,Equity ChiragMehta,SeniorFundManager, AlternativeInvestments February4,2022 1

  2. IndianGDPgrowthpeakedin2011andhassincebeena downhill India GDPgrowth (yoy) 20% 15% 10% 5% 0% RealGDP NominalGDP Source: Mospi.nic.in;CMIE,AnnualDatatill March2020

  3. Modishedshisfiscalconservatism Fiscal Deficitasa %of GDP 16.0 14.0 Centre State 12.0 10.0 8.0 6.0 4.0 2.0 - FY06Fy07FY 08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25FY 26 BE QE QE QE (Source:Indiaudget.gov.in)

  4. Governmentprioritizescapitalexpenditure CentralGovtCapex CapexbyPSUs TotalINRTLN 14 12 10 8 6 4 2 0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 (Source:Indiaudget.gov.in)

  5. SpendingonRuralandAgriculturefallsaseconomyrecovers (Source:Indiaudget.gov.in)

  6. Government’sdisinvestment,privatizationplanfalters

  7. Indianeedsanincome,demandandsentimentboost ConsumerSentiments EmploymentLevels 120 140 120 100 100 80 80 60 60 40 40 20 20 0 0 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 Total Salaried Self Employed WageLabourer Urban Rural (Source:CMIEconsumerpyramidsurvey) AllIndia

  8. Indianeedsinvestments;butitalsoneedsaconsumptionsupport PrivateConsumptionExpenditure GVA - Trade, hotels,transport & communication Investmentsasa% ofGDP PrivateCorporateCapex HouseholdCapex 25.0% 23.0% 21.0% 19.0% 17.0% 15.0% 13.0% 11.0% 9.0% 7.0% 5.0% 120 100 80 60 40 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Source:MOSPI,CMIIE,AnnualDatatillMarch2020

  9. IndiaIsAnAttractiveDestinationForLong-termInvestors… ButOnlyShakeHandsWithManagementWhenYouKnowYou’llGet5FingersBack! Source:QuantumAMC ThenumbersintheabovetablearebasedontheassumptionsandestimatesmadebyQAMC.. “An intelligent portfolio”mentioned above refers to a portfolio constructed by an investment manager following an active approach to investing with an appropriate research and investment process in selecting stocks. These growth rates or indicative rates of return may or may not be achieved.Pastperformancedoes not guaranteefuture resultsandfutureperformancemay belowerorhigherthanthedatagivenabove.

  10. Diversifyyourinvestmentswithoureasy12-20-80*Asset AllocationStrategy 12MonthsExpense 20%Gold 80%Equity Pleasenotetheaboveisa suggestedfund allocationand nottobeconsideredas aninvestmentadviceorrecommendation 10

  11. Pre-investmentBlock-EmergencyCorpus(Liquid) 12MonthsExpense 20%Gold80%EquityPlayMoney Pleasenotetheaboveisa suggestedfund allocationand nottobeconsideredas aninvestmentadviceorrecommendation 11

  12. PolicyNormalisation>RateHikes>HigherShort-TermRate> ImprovedOutlookforLiquidFunds QLFPortfolioYield 3monthsTbill 12% 10% 8% 6% 4% 2% 2010201120122013201420152016201720182019202020212022 Source:Bloomberg,Quantum Research,DatauptoJanuary 2022 The abovegraphneedstobe readin conjunctionwithschemeperformanceprovidedonslide no45& 46

  13. OurRecommendation:12monthsEmergencyMoney • QuantumLiquidFund–SafetyFirst • ALWAYSPrioritizeSafetyoverReturns • ZeroPrivateCorporateDebt • InvestsonlyinGovernmentSecurities,TreasuryBillorAAAratedPSUs/PFIs • LowCreditRisk=LowLiquidityRisk • Areasonableportionofportfolioincashorovernightasset

  14. HighFiscalDeficitandnodemandsupportspooksbondmarkets 3YearGsec 10YearGsec 7 6.5 6 5.5 5 4.5 4 Source:Refinitiv,QuantumResearch,Dataasof1February2022

  15. YieldCurveissteepestinadecade;butOilpricesandhighfiscaldeficit complicatesmatter IndiaSovereignYieldCurve 8 7.5 7 6.5 6 5.5 5 4.5 4 3.5 YIELDTOMATURITY(%) 1Y 2Y 3Y 4Y 5Y 6Y 7Y 1-Feb-22 8Y 9Y 10Y11Y12Y13Y14Y15Y19Y24Y30Y 28-Feb-20 3M6M Source:Refinitiv,QuantumResearch, Dataasof1February2022Past performancemayormaynot sustainedin future

  16. EarningBlock(Equity)80% 12MonthsExpense 20%Gold 80%Equity PlayMoney Please notetheaboveisasuggestedfundallocationand notto beconsideredasan investmentadvice orrecommendation 16

  17. 17 CorporateProfitsPoisedforSustainedTakeoff Pastperformancemayormaynotbesustainedinthefuture. Source:CMIE-EconomicOutlook,Dataasof Sep2021

  18. 18 Budget2022-AcceleratedGovernmentSpending • Positives • StrongSurgeinGovernmentCapex(+24%)tokeepeconomicmomentumgoing • CyclicalswillthriveasGDPgrowthrategetsbacktolongtermaverage(think • 2003-2008) • Concerns • CutinAgrispendsmayimpactneartermdemandfromRuralIndia • NomentionofMSMEandRisingInflation

  19. 19 EconomicTailwinds-RealEstateRevival

  20. 20 EconomicTailwinds-HiringinInformationtechnology NetHires forSix LargeITCos 1,45,000 1,25,000 1,05,000 85,000 65,000 45,000 25,000 5,000 -15,000 NetHiresfor Infosys+TCS+Wipro+TechMahindra+Accenture+Cap Gemini Source: CompanyFinancials,DataasofSep2021

  21. 21 ActualEarningsMayContinuetoSurpriseConsensus Pastperformancemayormaynotbesustainedinthefuture. Pastperformancemayormaynotbesustainedinthefuture.Source: BloombergFinance L.P.;asofJanuary31,2022

  22. 22 PortfolioPositionedForAnEconomicRevival Dataasof January2022. Pastperformancemayormaynotbesustainedinthefuture.

  23. 23 PortfolioToWithstandInterestRateVolatility Portfolioason January2022. Source:Quantum AMC,EstimatesForFY22

  24. 24 SpikingPEROverstatesValuationAsPandemicRelatedLockdowns SuppressedEarnings Pastperformancemayormaynotbesustainedinthefuture. Source:BloombergFinanceL.P.,asofJanuary31,2022

  25. 25 QLTEVFPortfolioValuations:AtA34%DiscountToTheIndexOnT12MAnd33%Less ExpensiveOnFY23e Source: Quantum Research,Data as ofJanuary 31, 2022|*QLTEVF cash weight excluded.** S&P BSE-30 Index weight is based on freefloat. Thefigures mentionedin WTD PER, WTD EPS and PEG ratioarecalculatedonthebasisofBloombergconsensusestimatesforcompaniesownedbytheFundaswellasthecompaniesintheS&PBSE30.TheFundamentalCharacteristics,bothforportfolio aswellasthebenchmark,havebeencomputedusingtheAggregationMethodology.

  26. 26 TimeforValueOverGrowth?

  27. 27 GovtcapexpushtobenefitMaterialsandIndustrials -Investmentledeconomicgrowthwilldriveconsumptionovertime • Theoutlayforpubliccapitalexpenditurehasbeensteppedupsharplyby35%fromRs5.50lakhcrorestoRs • 7.50lakhcrores • TheFinanceMinister’sbiginfrapushprojects: • PMGatiShaktiNationalMasterPlan • Highwayexpansionby25,000km • Rs60,000croreonNalseJalscheme • Fiveriverlinkprojectsacrossvariousstates • Rs48,000croreonPMhousingscheme • North-Eastinfrastructuredevelopment • QuantumView:TheincreaseinoutlayforcapitalexpenditureandemphasisonInfrastructure development mayprovidethemuch-neededimpetustoMaterials,Industrials,Metalsandrelatedsectors

  28. 28 QuantumEquityFundofFunds–wellpositionedtobenefitfromcapex andresultingconsumptionfromhigheconomicgrowth Data as of December 2021. Sector related disclaimer - Sectors referred above are not recommendation of Quantum Mutual Fund/AMC. The Fund may or may not have any present or future positions in these Sectors. The aboveinformationofSectorswhich is alreadyavailablein publiclyaccessmedia forinformationandillustrativepurposeonly andnotanendorsement/views/ opinionof QuantumMutual Fund /AMC.Theabove informationshouldnotbeconstructed as researchreportorrecommendationtobuyorsellof anystocksfromanySector.PastPerformancemayormay not besustainedinfuture.

  29. 29 GreenEconomy:Hits

  30. 30 GreenEconomy:Misses • QuantumView: • Thoughtherewasaclearthrustonintention togrowsustainably,ithasmissedonsomeimportantmeasures. • ThiswasouropportunitytosendoutastrongsignaltotheglobalinvestorcommunitythatIndia isreadyto takeabigleapinourclimateefforts.

  31. 31 ESG:Notenoughspending,normuchincentives • QuantumView: • Green/Cleanprojectsarelonggestationprojects • Wearelosingtimetomeetourambitiousclimategoalsby2030. • There willariseaneedtoputregulatorymandatestomeettheclimatecommitments. • CorporateswhoareaheadofthecurvewithrespecttotheirESGpracticeswillbenefit

  32. 32 QuantumIndiaESGFund–wellpositionedtobenefitfromcapex,thrust onsustainabilityandresultingconsumptionfromhigheconomicgrowth Dataasof January2022. Past performancemayormaynot sustainedin future

  33. PortfolioDiversifyingBlock(Gold) 12MonthsExpense 20%Gold80%EquityPlayMoney Please notetheaboveisasuggestedfundallocationand notto beconsideredasan investmentadvice orrecommendation 33

  34. 34 Gold:Hits&Misses • QuantumView: • Whilecryptocurrenciesarebeingcomparedtogold,theylackintrinsicvalue • Correlationtoriskassetsmakesthemineffectiveasaportfoliodiversifier,unlikegold • Theyarepronetoextremevolatilitymakingthemunsuitableforretailinvestors • Goldisaprovenstoreofvalue • Maintain10-15%allocationtogoldgiventhatriskslikeinflationandmarketpullbacksarelurking

  35. Usingmutualfundsforassetallocation 35

  36. Quantum’sSuggestedAssetAllocationStrategy 12MonthsExpense 20%Gold 80%Equity PlayMoney Please notetheaboveisasuggestedfundallocationand notto beconsideredasan investmentadvice orrecommendation 36

  37. Diversifywith12-80-20injustafewclicks Thisisforillustrativepurposeonly. Please notetheaboveisasuggestedfundallocationand notto beconsideredasan investmentadvice orrecommendation 37

  38. Diversifywith12-80-20injustafewclicks Thisisforillustrativepurposeonly. 38

  39. PerformanceofQuantumLongTermEquityValueFund– DirectPlan–GrowthOption TheSchemeisco-managedbyMr.SorbhGuptaandMr.NileshShetty.Mr.SorbhGuptaisthe FundManager effective fromDecember1,2020. Mr.NileshShettyistheFundManagereffectivefromMarch28,2011. Pastperformancemayormaynotbesustainedinthefuture.Dataasof31stJanuary2022.Loadisnottakenintoconsiderationinschemereturnscalculation.DifferentPlansshallhavea differentexpensestructure.ReturnsarenetoftotalexpensesandarecalculatedonthebasisofCompoundedAnnualizedGrowthRate(CAGR).*witheffectfromDecember01,2021Tier1 benchmarkhasbeenupdatedasS&PBSE500TRI.AsTRIdataisnotavailablesinceinceptionofthescheme,benchmarkperformanceiscalculatedusingcompositeCAGRS&PBSE500 index PRI Value from March 13, 2006 to July 31, 2006 and TRI Value since August 1, 2006. **TRI data is not available since inception of the scheme, Tier 2 benchmark performance is calculatedusingcompositeCAGRS&PBSE200indexPRIValuefromMarch13,2006toJuly31, 2006andTRIValuesinceAugust1,2006ForperformanceofotherSchemesManagedby Mr.NileshShettypleaseseeslide47.ForperformanceofotherSchemesManagedbyMr.SorbhGuptapleaseseeslide48.

  40. PerformanceofQuantumLongTermEquityValueFund– RegularPlan–GrowthOption The Schemeisco-managedbyMr.SorbhGuptaandMr.NileshShetty.Mr.SorbhGuptaistheFundManagereffectivefromDecember1,2020. Mr.NileshShettyistheFundManagereffectivefromMarch28,2011. Past performance may or may not be sustained in the future. Data as of 31st January 2022. Load is not taken into consideration in scheme returns calculation. Different Plans shall have a different expense structure. Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). *with effect from December 01, 2021 Tier 1 benchmarkhasbeenupdatedasS&PBSE500TRI.AsTRIdataisnotavailablesinceinceptionofthescheme,benchmarkperformanceiscalculatedusingcompositeCAGRS&PBSE500index PRIValuefromMarch13, 2006toJuly31,2006andTRIValuesinceAugust1,2006.**TRIdataisnotavailable sinceinceptionofthescheme,Tier2benchmarkperformanceiscalculatedusing composite CAGR S&P BSE 200 index PRI Value from March 13, 2006 to July 31, 2006 and TRI Value since August 1, 2006. For performance of other Schemes Managed by Mr. Nilesh Shetty pleaseseeslide47.ForperformanceofotherSchemesManagedbyMr.SorbhGuptapleaseseeslide48.

  41. PerformanceofQuantumIndiaESGEquityFund-DirectPlan TheSchemeismanagedbyMr.ChiragMehtaandMs.SnehaJoshi.Mr.ChiragMehtaistheFundManagereffectivefromJuly12,2019.Ms.SnehaJoshiistheAssociateFund ManagereffectivefromJuly12,2019 Pastperformance may ormaynotbesustainedin thefuture.Dataasof31stJanuary2022.Loadisnottakenintoconsideration inschemereturnscalculation.Different Plansshallhavea differentexpensestructure.Returnsarenetoftotal expensesandcalculated on thebasisofCompoundedAnnualizedGrowthRate(CAGR).ForperformanceofotherSchemesManagedby Mr.ChiragMehtapleaseseeslidenumber50,51and52.Mr.ChiragMehtamanages5schemesofQuantumMutualFund.

  42. PerformanceofQuantumIndiaESGEquityFund-RegularPlan TheSchemeismanagedbyMr.ChiragMehtaandMs.SnehaJoshi.Mr.ChiragMehtaistheFundManagereffectivefromJuly12,2019.Ms.SnehaJoshiistheAssociateFund ManagereffectivefromJuly12,2019 Pastperformancemayormaynotbesustained in thefuture.Dataasof31stJanuary2022.Loadisnottakenintoconsiderationinschemereturnscalculation.DifferentPlansshallhavea differentexpensestructure.Returnsarenetoftotal expensesandcalculated on thebasisofCompoundedAnnualizedGrowthRate(CAGR).ForperformanceofotherSchemesManagedby Mr.ChiragMehtapleaseseeslide50,51and52.Mr.ChiragMehtamanages5schemesofQuantumMutualFund.

  43. PerformanceofQuantumEquityFundofFunds DirectPlan–GrowthOption TheSchemeismanagedbyMr.ChiragMehtaeffectivefromNovember1,2013. Pastperformancemayormaynotbesustainedinthefuture.Dataasof31stJanuary2022.Loadisnottakenintoconsiderationinschemereturnscalculation.Dataasof31stDecember 2021.DifferentPlansshallhavedifferentexpensestructure.ReturnsarenetofTotalExpensesandcalculatedonthebasisofCompoundedAnnualizedGrowthRate(CAGR). ForperformanceofotherSchemesManagedbyMr.ChiragMehtapleaseseeslidenumber50,51&52.

  44. PerformanceofQuantumEquityFundofFunds RegularPlan–GrowthOption TheSchemeismanagedbyMr.ChiragMehtaeffectivefromNovember1,2013. Pastperformancemayormaynotbesustainedinthefuture.Dataasof31stJanuary2022.Loadisnottakenintoconsiderationinschemereturnscalculation. DifferentPlansshallhavedifferent expensestructure.ReturnsarenetofTotalExpensesandcalculatedonthebasisofCompoundedAnnualizedGrowthRate(CAGR).For performanceofotherSchemesManagedbyMr.ChiragMehtapleaseseeslidenumber50,51&52.

  45. PerformanceofQuantumLiquidFund–DirectPlan–GrowthOption Mr.PankajPathakistheFundManagereffectivefromMarch01,2017 Pastperformance mayormay notbesustainedinthefuture.Dataasof31stJanuary2022.DifferentPlansshallhaveadifferentexpensestructure.Dataasof31stDecember2021 *SimpleAnnualized.**Returnsfor1yearandabove periodarecalculatedonthebasisofCompoundedAnnualizedGrowthRate(CAGR).Returnsarenetoftotal expenses.PankajPathakalso managesQuantumDynamicBondFund.Pleasereferslideno.49toreviewperformanceofQuantumDynamicBondFund.

  46. PerformanceofQuantumLiquidFund–RegularPlan–GrowthOption Mr.PankajPathakistheFundManagereffectivefromMarch01,2017 Pastperformance mayormay notbesustainedinthefuture.Dataasof31stJanuary2022.DifferentPlansshallhaveadifferentexpensestructure.Dataasof31stDecember2021 *SimpleAnnualized.**Returnsfor1yearandabove periodarecalculatedonthebasisofCompoundedAnnualizedGrowthRate(CAGR).Returnsarenetoftotal expenses.PankajPathakalso managesQuantumDynamicBondFund.Pleasereferslideno.49toreviewperformanceofQuantumDynamicBondFund.

  47. OtherSchemesmanagedbyNileshShetty QuantumMultiAssetFundofFunds Mr.NileshShettyCo-managingalongwithMr.ChiragMehtaeffectivefromJuly11,2012. Dataasof31stJanuary2022.Pastperformancemay ormaynotbesustainedinthefuture.LoadisnottakenintoconsiderationinSchemeReturnCalculation.#CRISILCompositeBondFund Index(20%)+S&PBSETotalReturnIndex(40%)+CRISILLiquidIndex(25%)+DomesticPriceofGold(15%) Itisacustomizedindexanditisrebalanced daily. Returnsarenetof totalexpenses andarecalculatedonthebasisofCompoundedAnnualizedGrowthRate(CAGR).DifferentPlansshallhave differentexpensestructure.Mr.ChiragMehtamanages5schemesoftheQuantum MutualFund.Mr.NileshShettymanages2schemesoftheQuantumMutualFund.

  48. OtherSchemesmanagedbySorbhGupta QuantumTaxSavingFund Mr.SorbhGuptaistheFundManagereffectivefromOctober1,2016. Dataasof31stJanuary2022.Pastperformancemayormaynotbesustainedinthefuture#S&PBSE500TRI,##S&PBSE200 TRI.Returnsarenet oftotalexpensesandarecalculatedonthe basisof CompoundedAnnualized GrowthRate (CAGR).DifferentPlansshallhave different expensestructure.Mr. SorbhGupta manages2schemeof the QuantumMutualFund

  49. OtherSchemesmanagedbyPankajPathak QuantumDynamicBondFund Mr.PankajPathakistheFundManagereffectivefromMarch01,2017. Dataasof31stJanuary2022.Pastperformance mayormaynotbesustainedinthefuture.#CRISILCompositeBondFundIndex.Returnsare netoftotalexpensesandarecalculated onthe basisofCompoundedAnnualizedGrowthRate(CAGR)DifferentPlansshallhavedifferentexpensestructure.Mr.PankajPathakmanages2schemesoftheQuantumMutualFund

  50. OtherSchemesmanagedbyMr.ChiragMehta QuantumGoldFund Mr.ChiragMehtaismanagingtheschemeeffectivefromMay1,2009.Ms.GhazalJainisco-managingtheschemeeffectivefromJune2,2020 Dataasof31stJanuary2022.Pastperformance mayormaynotbesustainedinthefuture.#DomesticPriceofGold.Returnsare netof totalexpensesandarecalculatedon thebasisof CompoundedAnnualizedGrowthRate(CAGR).Mr.ChiragMehtamanages5SchemesandMs.GhazalJainmanages2SchemesoftheQuantumMutualFundTheSchemebeingExchange TradedFundhasoneplantoinvestthroughstockexchangeandhavingasingleexpensestructure QuantumGoldSavingsFund Mr.ChiragMehtaismanagingtheschemeeffectivefromMay19,2011.Ms.GhazalJainisco-managingtheschemeeffectivefromJune2,2020 Dataasof31stJanuary2022.Pastperformancemayormaynotbesustainedinthefuture.#DomesticPriceofGold.Returnsarenetoftotalexpensesandarecalculatedonthe basisofCompoundedAnnualizedGrowthRate(CAGR).DifferentPlansshallhavedifferentexpensestructure.Mr.ChiragMehtamanages5SchemesandMs.GhazalJainmanages2 SchemesoftheQuantumMutualFund

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