Dear Policyholder,

Equity markets in August 2017 traded with a slight negative bias as global markets turned risk averse on the back of heightened US-North Korea tensions, which is a near term risk to the global markets. However, our belief is that the geo-political event has low probability of significant escalation and should be short-lived, providing good investment opportunities in case of correction. On the domestic front, de-escalation with China was a positive and welcome move bringing down India specific risk.

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