March 31, 2016

BNP Paribas Flexi Debt Fund

(An Open-Ended Income Scheme)

FLEXIBILITY THAT AIMS TO GIVE YOU

A HEALTHY INVESTMENT GROWTH.

OUTLOOK
This product is suitable for investors RISKOMETER
Policy decision
who are seeking*: Moderate Mo
ely de Repo rate cut by 25 bps to 6.5%.
1. Regular income in long term rat Hig ratel
ode w CRR unchanged at 4.0%.
2. Investment in debt and money M L o h y
Liquidity measures
market Instruments.
Reduce MSF rate by 75 bps to 7% and increase reverse repo rate by 25 bps to 6%. Hence, MSF-
High
Low

reverse repo corridor reduced to 100 bps from earlier 200 bps. Repo rate-reverse repo spread
reduced to 50 bps from 100 bps.
Minimum daily CRR maintenance reduced to 90% of the requirement from 95%.
*Investors should consult their financial LOW HIGH Progressively lower average system liquidity deficit closer to neutral from around 1% of NDTL
advisers if in doubt about whether the product Investors understand that their principal
is suitable for them. The RBI left its growth and inflation projections unchanged. It expects GVA growth to rise to 7.6% in FY17 (from
will be at moderate risk 7.3% in FY16) with balanced risks and projects CPI inflation to trend towards the 5% target by March 2017.
In its forward guidance, the RBI stated that the stance of monetary policy will remain accommodative. The
Reserve Bank will continue to watch macroeconomic and financial developments in the months ahead
PRODUCT DETAILS with a view to respond with further policy action as space opens up. The measures taken by the Reserve
bank of India are expected to aid in policy transmission with lower lending rates.
Fund Manager : Mr. Puneet Pal - (Total Experience: 14 years)
The central bank intends to meet the requirements of durable liquidity needs of the banking system and
Inception : September 23, 2004
use its short term instruments to keep the system closer to the operational rate. The durable liquidity will be
Plan : BNP Paribas Flexi Debt Fund,
BNP Paribas Flexi Debt Fund - Direct Plan provided by RBI by either buying foreign assets which largely will be through intervention in the foreign
Option : Growth and Dividend exchange market when we receive accelerated foreign portfolio flows or by buying domestic assets which
would be by way of Open market operations of purchasing government securities from market.
Exit Load : 0.75% if redeemed or switched-out within 6 months from the
date of allotment/switch-in, Nil if redeemed or switched-out The falling market expectations of US Fed tightening this year and some signs of a stabilisation in Chinas
after 6 months from the date of allotment/ switched-in. No entry/ economic growth supports continued portfolio flows into India. This along with Central banks aim to move
exit load will be charged on Dividend Re-investment units. average system liquidity deficit from 1% to neutral should result in open market purchases by RBI.
Benchmark Index : CRISIL Composite Bond Fund Index Going forward , we maintain our call of further 25 bps rate cut by RBI in calendar year 2016 and expect the
10 year sovereign bond to trade around 7.10-7.25 by the end of the calendar year.

SCHEME HIGHLIGHTS
14%
CPI
The scheme seeks to generate alpha over the benchmark and the strategy is to capitalize on duration 12%
opportunities as they appear.
10%
BNP Paribas Flexi Debt Fund, is dynamically managed debt scheme, which will take active calls on
duration, movement along the yield curve as well as the shift in the yield curve. 8%
The duration of the scheme will tend to be longer if the fund manager feels that the interest rates are 4.83%
falling or moving down and vice versa. When the view on interest rates is neutral, the fund manager 6%
prefers to hold a short duration portfolio, as the flexibility to realign is higher.
The fund has the flexibility to invest in corporate bond, money market instruments and government 4%
securities.
2%
Robust risk management framework, controls, policies & procedures helps the scheme maintain
quality portfolio. 0%
Suitable for investors with a investment horizon of 12 months and wish to take advantage of a dynamic
Jul-12
Sep-12

Jul-13
Sep-13

Jul-14
Sep-14

Jul-15
Sep-15
Mar-12
May-12

Nov-12
Jan-13
Mar-13
May-13

Nov-13
Jan-14
Mar-14
May-14

Nov-14
Jan-15
Mar-15
May-15

Nov-15
Jan-16
Mar-16

debt market.
CPI
Further, the portfolio of the scheme shall be subject to changes within the provisions of the Scheme Information
Document (SID). Please refer to SID for detailed asset allocation, investment strategy, risk factors etc. Source: Bloomberg
 March 31, 2016

CURRENT PORTFOLIO POSITION (as on March 31, 2016)

From credit profile perspective, 35.04% of the portfolio is allocated to AAA/equivalent securities and 0.26% allocation to AA/equivalent securities. The allocation to G-sec is 58.53%.
The current portfolio has 4.15% allocation to Corporate Debt, 58.53% allocation to Government Securities and 31.73% allocation to Money Market instruments.
The average maturity of the portfolio stands at 5.35 years and modified duration is at 3.69 years. The YTM of the portfolio stands at 7.85% as on March 31, 2016.

COMPOSITION BY ASSETS CREDIT QUALITY PROFILE

G - Sec/T- Bill 58.53% G - Sec/T- Bill 58.53%

Money Market AAA & Equivalent 35.04%

Instruments 31.73%
Net Receivables / 2.86%
(Payables)
Corporate Debt 4.15%
Mutual Fund Units 2.73%
Net Receivables / 2.86%
(Payables) CBLO/Reverse Repo 0.59%
Mutual Fund Units 2.73% AA & Equivalent 0.26%

-10.00% 10.00% 30.00% 50.00% 70.00% 90.00% -10.00% 10.00% 30.00% 50.00% 70.00% 90.00%

As on March 31, 2016 As on March 31, 2016

The material contained herein has been obtained from publicly available information, internally developed data and other sources believed to be reliable, but BNP Paribas Asset Management India Private Limited
(BNPPAMIPL) makes no representation that it is accurate or complete.BNPPAMIPL has no obligation to tell the recipient when opinions or information given herein change. It has been prepared without regard to the
individual financial circumstances and objectives of persons who receive it. This information is meant for general reading purpose only and is not meant to serve as a professional guide for the readers. Except for the
historical information contained herein, statements in this publication, which contain words or phrases such as 'will', 'would', etc., and similar expressions or variations of such expressions may constitute 'forward-looking
statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements.
BNPPAMIPL undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. The words like believe/belief are independent perception of the Fund Manager and do
not construe as opinion or advise. This information is not intended to be an offer to see or a solicitation for the purchase or sale of any financial product or instrument. The information should not be construed as an
investment advice and investors are requested to consult their investment advisor and arrive at an informed decision before making any investments. The Trustee, AMC, Mutual Fund, their directors, officers or their
employees shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages arising out of the information contained in this document.

BNP PARIBAS ASSET MANAGEMENT INDIA PVT. LTD.

Regd. Off.: BNP Paribas House, 1 North Avenue, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 - India
E-mail: customer.care@bnpparibasmf.in Corporate Identity Number (CIN) : U65991MH2003PTC142972

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.