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More than Management : GROWING YOUR WEALTH.. !!

PORTFOLIO MANAGEMENT SERVICES

Portfolio Management Services


Investment Opportunities Philosophy People

Products

Performance

Processes

Investment Opportunities

Fixed Deposits

OR
2
Trading on your Own

PORTFOLIO MANAGEMENT SERVICES

Mutual Funds

PMS Vs other investment opportunities


Fixed Deposits
Pros Fixed returns Capital protection

Cons Low returns coupled with high tax No possibility of riding on markets

PMS Vs..

Other Investment Opportunities

Trading on your own


Pros Complete control over investment

Cons

Very high time involvement Need for in-depth research Chances of not booking losses Over exposure to certain stocks / ideas Over leveraging Possibility of lack of discipline on trading

PMS Vs..
Mutual Funds

Other Investment Opportunities

Pros Can start of with a very low initial investment Ideal for small time investors

Cons No personalised portfolio / investment created Not suitable for HNIs Inbuilt charges - reduce returns lack of transparency Cannot liquidate to stop the erosion in fund value

Ideal Investment Platform for HNIs??

PORTFOLIO MANAGEMENT SERVICES..!!

Why Ideal ?

Professional Management Professional and constant management

Hassle Free Operation Periodic reporting on the overall status of the portfolio and performance.

Why Ideal ?
Continuous Monitoring It is important to recognize that portfolios need to be constantly monitored and periodic changes made to optimize the results.

Flexibility Portfolio Manager has fair amount of flexibility in terms of holding cash (can go up to 100% also depending on the market conditions). He can create a reasonable concentration in the investor portfolios by investing disproportionate amounts in favor of compelling opportunities

Why Ideal ?

Transparency
PMS provides comprehensive communications and performance reporting. Investors will get regular statements and updates from the firm. Web-enabled access will ensure that client is just a click away from all information relating to his investment.

Customized Advice
It can be structured to automatically exclude investments you may own in another account or investments you would prefer not to own

Why Ideal ?
Post Sales service
Dedicated Client Servicing Team to address your queries. Detailed portfolio reports are available at timely basis like
Investment Summary Portfolio Holding Transaction Statement Bank Book Realized / Unrealized Gain Loss Details Fees Charged Statement (Debit Note) Corporate Benefit (Bonus / Dividend / Right issues declared, etc.) Fund Managers Report.

PRODUCTS

Customised Service as per your Profile

Portfolio Management Schemes

Sharekhan has two distinct strategies to offer


PMS

ProPrime (Fundamental)

ProTech (Technical)

PEOPLE

MEET the MANAGERS

SUHAS SAMANT, Fund Manager for Sharekhan ProPrime

Over 20 years experience across Equities, Fund management, & PMS Previous Experience: 2008-2009: Head of PMS at Asit C Mehta Investments Intermediaries Ltd (2008-2009) 2006 2008: Head Equity and Fund Manager for Rami Investments 1994-2006: Fund Manager for OCB, Mauritius with over Rs 40 crore of NRI funds managed

ROHIT SHRIVASTAV, Fund Manager for Sharekhan ProTech PMS

Over 16 years experience in Stock Market Analysis MMS from Mumbai University Previous Experience: Since 2004: Market Strategist with a team of 3 technical analysts monitoring trends across Equity and Commodity markets in India and across the world

2002: Head of the Central Research Team at Sharekhan


2001: Market Analyst at Sharekhan with Buy/Sell recommendations in Trading Products

Research Analyst at Sanwa Finance

Mr. Abhinay Jain Pro Tech Diversify Fund Manager

Over 8 years experience in the financial industry which includes almost 3 years on the fund management side. Prior joining Sharekhan in 2007, he was working with Karvy Stock Broking House as a Derivative Research Analyst. He is among the prominent stock market experts whose opinions are sought after by leading media companies like CNBC TV 18, CNBC Awaaz, NDTV Profit, Bloomberg UTV. & ET Now His educational qualifications includes, bachelor of computer application in 2003 from Bhopal University followed by MBA in Finance from ICFAI Hyderabad in 2005.

PHILOSOPHY

Our Investment Philosophy at


PMS

ProPrime PMS

Based on Fundamental Analysis

ProPrime PMS

Difficult for clients!

Tracking the Market.

Judging the impact of the News for sectors & scrip's

ProPrime PMS

Difficult for clients!

Maintaining the news flow & apply at proper time.

ProPrime PMS

Difficult for clients!

Availability of basic Research . Basic fund management rules (Investment Philosophy, Sector Allocation, Scrip Allocation, etc.)

ProPrime PMS

How it Works

Profile the Customers Risk Appetite Time duration for Investment

ProPrime PMS

How it Works

Balance risk & Descent growth by.. Diversifying sectors & number of scrip's. Investment Philosophy is in place. Allocation of maximum percentage of scrip's. Stop loss in place. Non Leverage Portfolio.

ProPrime PMS

How it Works

Basic Allocation for Core Portfolio 60% Trading Portfolio 20% & Cash 20%

ProPrime PMS

How it Works

This results in..

Building a long term Portfolio Trading activity gives movement to the portfolio & covers the cost

ProPrime PMS

Investment Philosphy

Balance Risk and Growth Bullish on the markets - time horizon for the investment 3-5 yrs

Investing the funds and not just allocating.


Diversification of the portfolio to reduce the risk,

SECTORS

ProPrime PMS
We are bullish on Capital Goods, Infrastructure, Banking, Pharma, Ites Power, Insurance and Retail
We are underweight on Telecom, Realty (outside Mumbai) Media

Investment Philosophy

Rather than timing the market we buy on DIP and book profit above 25% - 30% on SEP (systematic exit plan) We would like to be in stocks with less burden on Balance sheet and good earning visibility

ProPrime PMS

Our Offering

Personalised portfolio selection and management by a dedicated Fund Manager

ProPrime PMS
Reporting:

Our Offering

Online access to Portfolio Holdings.

ProPrime PMS

Our Offering

Quarterly reporting of portfolio holdings/transactions

ProPrime PMS
Corpus: Indian Resident - Rs 5 Lakhs

Our Offering

NRI - We recommend Rs.10 Lakhs as an initial Investment to ensure PIS charges pertaining to bank are Rationalised. Fees: 2.5% per annum AMC charged every quarter @ 0.625% 0.5% brokerage 20% profit sharing after 15% hurdle is crossed-chargeable at the end of the fiscal year.

ProPrime PMS

YoY Fundamental performance

Year NAV return % age BSE return % age NSE return % age Apr10-Feb11 -25.1% 1.7% 1.6% FY 09-10 93.6% 80.5% 73.8% FY 08-09 -43.0% -37.9% -36.2% FY 07-08 15.8% 19.7% 23.9% FY 06-07 10.8% 15.9% 12.3% FY 05-06 75.5% 73.7% 67.1% Since Inception 218% 271% 256%

* Returns are based on the clients who are in the system since Inception

Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those returns are calculated on the basis of cash flow method at a portfolio Level

ProPrime PMS

QoQ Fundamental Returns

Date NAV return % age BSE return % age NSE return % age Jan'11- Feb11 -26% -13% -13% -9.1% 2.2% 1.7% Oct'10-Dec'10 Jul'10-Sep'10 8.9% 13.4% 13.5% Apr10-Jun'10 1.8% 1.0% 1.2% Jan'10-Mar'10 2.9% 0.4% 0.9% Oct'09-Dec'09 2.7% 2.0% 2.3% Jul'09-Sep'09 11.0% 18.2% 18.5% Apr'09-Jun'09 65.0% 49.3% 42.0% Jan'09-Mar'09 -3.8% 0.6% 2.1% Oct'08-Dec'08 -24.1% -25.0% -24.5% Jul'08-Sep'08 -0.7% -4.5% -3.0% Apr'08-Jun'08 -21.3% -14.0% -14.7% Jan'08-Mar'08 -29.1% -22.9% -22.9% Oct'07-Dec'07 23.0% 17.3% 22.2% Jul'07-Sep'07 9.1% 18.0% 16.3% Apr'07-Jun'07 21.6% 12.1% 13.0% Jan'07-Mar'07 1.1% -5.2% -3.7% Oct'06-Dec'06 7.8% 10.7% 10.5% Jul'06-Sep'06 13.1% 17.4% 14.7% Apr'06-Jun'06 -10.1% -5.9% -8.1% Jan'06-Mar'06 20.5% 20.0% 20.0% Oct'05-Dec'05 7.5% 8.8% 9.0% Jul'05-Sep'05 29.1% 20.0% 17.1% Apr'05-Jun'05 5.0% 10.8% 9.1% Jan'05-Mar'05 4.0% -1.7% -2.2% Oct'04-Dec'04 20.9% 18.3% 19.2%

Sharekhan Outperforms Benchmark

13 out of 26 Quarters Sharekhan has Outperformed Benchmark

* Returns are based on the clients who are in the system since Inception

ProTech PMS

Long Short strategies based on Technical Analysis

REASON # 1

Term investor Redefined

ProPrime PMS

Term investorRedefined

Today's investor does not have a holding period of > 3 Months WHY?

SENSEX history of several bull and bear markets


6500 6000 5500 5000 4500 4000 3500 3000

2500

2003

2000

1500

1991
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

50000
x 1000

2003

ProPrime PMS

Term investorRedefined

Buy and Hold strategy did not work during 90s. Again failed during 2006-2010 Need to play both sides of the market!

SENSEX

ProPrime PMS

CAGR = Wealth

Warren Buffet = Wealth; Because = 30% CAGR up to Y2000 Focus on performance and not out performance Absolute returns at end of year with defined risk appetite Result = CAGR = Wealth creation.

REASON # 1

Trading is a Discipline

Our Observation shows that


Profitable trading requires certain skills

Profitable trading also demands time


Profitable trading requires both - Long & Short

Clients have been unable to do this Because 1. Knowledge 2. Trading is often leveraged; Leading to leveraged losses for clients Protech works on Zero leverage. Professional Traders. PMS does not permit leverage

Investors Need
LONG SHORT STRATEGIES

ABSOLUTE RETURN STRATEGIES


Using technical analysis for Timing the market Building products with different risk/reward/volatility profiles

Reward Risk

Why ProTech PMS

Legally sound SEBI regulation, safety for clients funds in his name Zero leverage allowed under PMS. Full fund utility 100% exposure + Cash in liquid funds No lock in period, High liquidity, payout in 3 days

Why ProTech PMS


Transparent Fees structure

Zero AMC fees, Profit objective is clear C/f of losses before fees.

Long term Track record All the above offer edge over MFs

ProTech PMS
Aim :

How it Works

Absolute returns irrespective of direction of markets

ProTech PMS
NiftyThrifty :

How it Works

Trades long and short depending on the trend prevalent in the markets Using a mathematical model with no human intervention. Model back- tested for 30 years to give excellent prediction of market direction While trades in Nifty futures, it is a non-leveraged product Absolute

ProTech Our Offerings: Nifty Thrifty PMS


Nifty futures bought and sold on the basis of an automated trading system generated calls

Excellent track record

on back-testing and
even in live performance

ProTech PMS

Philosphy

Knowledge of technical analysis and power of derivatives to identify trading opportunity in the market

Long Short Strategies


Focus on absolute returns

ProTech PMS

Rs. 1,000 invested in 1979 would be 6,40,81,524 today if profits were reinvested.

15000 10000 5000

The rising green line shows the rising value of a portfolio in a straight line during several bull and bear markets.
This is what we call Linearity Of Returns.
x10000

79

81

83

85

87

89

91

93

95 96 97 98 99 00 01 02 03 04 05 06 07 08 010

Nifty Thrifty NAV Movement

Nifty Thrifty vs Sensex Movement

Nifty Thrifty Sensex

ProTech PMS
Date % Sensex 1979 -----1980 25% 1981 54% 1982 4% 1983 7% 1984 7% 1985 94% 1986 -1% 1987 -16% 1988 51% 1989 17% 1990 35% 1991 82% 1992 37% 1993 28% 1994 17% System -----25% 25% 22% 26% 8% 127% 42% 34% 44% 7% 76% 17% 261% 81% 54%

Historical Performance
Date % Sensex System 1995 -21% 34% 1996 -1% 33% 1997 19% 55% 1998 -16% 62% 1999 64% -1% 2000 -21% 87% 2001 -18% 67% 2002 4% 14% 2003 73% 63% 2004 13% 41% 2005 42% 44% 2006 47% 38% 2007 47% 13% 2008 -52% 83% 2009 81% 33% 2010 17% 12%

*Tested on historical performance on Sensex [CY] Model has consistently performed over 30 years

ProPrime PMS
Year Apr'10-Feb'11 FY 09-10 FY 08-09 FY 07-08 FY 06-07

Year on Year returns

NAV return % age BSE return % age NSE return % age 8.6% 1.7% 1.6% 14.7% 80.5% 73.8% 28.6% -37.9% -36.2% 9.6% 19.7% 23.9% 10.8% 15.9% 12.3%

* Returns are based on the clients who are in the system since Inception

Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those returns are calculated on the basis of cash flow method at a portfolio Level

ProPrime PMS

Quarter on Quarter returns

Date NAV return % age BSE return % age NSE return % age Jan'11 - Feb11 4.49% -13% -13% Oct'10-Dec'10 5.06% 2.19% 1.73% Jul'10-Sep'10 -1.45% 13.38% 13.50% Apr10-Jun'10 0.40% 0.99% 1.21% Jan'10-Mar'10 1.83% 0.36% 0.92% Oct'09-Dec'09 -6.21% 1.97% 2.30% Jul'09-Sep'09 -9.92% 18.17% 18.48% Apr'09-Jun'09 33.28% 49.29% 42.04% Jan'09-Mar'09 -8.45% 0.63% 2.09% Oct'08-Dec'08 16.21% -24.98% -24.53% Jul'08-Sep'08 6.53% -4.47% -2.95% Apr'08-Jun'08 13.46% -13.95% -14.66% Jan'08-Mar'08 18.68% -22.88% -22.87% Oct'07-Dec'07 -11.75% 17.33% 22.25% Jul'07-Sep'07 9.24% 18.02% 16.28% Apr'07-Jun'07 -4.18% 12.07% 13.00% Jan'07-Mar'07 1.83% -5.18% -3.65% Oct'06-Dec'06 5.47% 10.70% 10.53% Jul'06-Sep'06 2.87% 17.39% 14.71% Apr'06-Jun'06 0.28% -5.95% -8.06%

Out of 20 quarters of performance, 14 quarters have given positive returns


Peak return in a quarter has been 33% whereas lowest return has been 11%

* Returns are based on the clients who are in the system since Inception

ProTech PMS
Rs 10 lakhs invested in 2006-07
Date 1st April'06 1st April'07 1st April'08 1st April'09 1st April'10 31st Dec'10 Nifty Thrifty Equivalent NAV Sensex NAV Equivalent Nifty NAV

Nifty Thrifty Tool

Nifty Thrifty Comparative performance viz-a-viz Sensex/ Nifty


Rs 10 lakhs invested in 2007-08
Nifty Thrifty Equivalent Equivalent NAV Sensex NAV Nifty NAV

Rs 10 lakhs invested in 2008-09


Nifty Thrifty Equivalent NAV Sensex NAV Equivalent Nifty NAV

1,000,000 1,108,002 1,214,758 1,562,091 1,791,219 1,862,017

1,000,000 1,158,878 1,386,923 860,686 1,553,886 1,818,188

1,000,000 1,123,143 1,391,456 887,849 1,542,696 1,802,913

1,000,000 1,096,350 1,409,826 1,616,621 1,680,518

1,000,000 1,196,781 742,689 1,340,853 1,568,921

1,000,000 1,238,895 790,504 1,373,553 1,605,239

1,000,000 1,285,927 1,474,548 1,532,830

1,000,000 620,572 1,120,383 1,310,951

1,000,000 638,072 1,108,692 1,295,702

Date 1st April'06 1st April'07 1st April'08 1st April'09 1st April'10 31st Dec'10

Nifty Thrifty Equivalent NAV Sensex NAV

Equivalent Nifty NAV

Nifty Thrifty NAV

Equivalent Sensex NAV

Equivalent Nifty NAV

1,000,000 1,146,681 1,192,003

1,000,000 1,805,405 2,112,488

1,000,000 1,737,566 2,030,653

1,000,000 1,039,525

1,000,000 1,170,091

1,000,000 1,168,677

ProPrime PMS

Trailing Stops Investment Philosophy

Investors looking for returns from short term momentum trading opportunities in the market.

Investors looking at a higher return than fixed income securities or deposits, with regular payouts from profits every-time NAV grows more than 3%

ProPrime PMS

Trailing Stops Investment Philosophy

Above average returns but not high risk trades. Risk per trade is 2-3%

1:2 risk reward ratio. Risk managed with the use of trailing stop losses on an intraday basis.

Treasury income from idle cash.

ProTech PMS

Trailing Stops Investment Philosophy

Will trade on the long and short side of the market Will trade in liquid stocks and mostly in stock and index futures listed on the F&O market Exposure will not exceed value of the portfolio i.e. there will be no leverage

Exposure per trade will be max 15% of portfolio


Maximum drawdown not to exceed 20% intra year.

ProTech Diversified
Trading shorter term with long term approach

Moderate Risk High Return product

ProTech Diversified

Aim

To generates absolute Return consistently through disciplined trading in a balanced diversified portfolio with calculative risk.

ProTech Diversified

Key Features

Linearity of returns: Hedge against volatility. Protecting capital in non-trending phase.

Ability to outperformed the benchmark on long-term basis. Natural hedge to the portfolio as it can generate return in downward market as well.

ProTech Diversified

Key Features

Profit payout on regular basis.


Balanced diversified portfolio with exposure across sectors. Disciplined trading approach with no human intervention. Incorporated money management techniques that seek to control losses and protect profits.

ProTech Diversified

Portfolio Composition & Allocation

Nifty 32%

Rationale for buffer Will be utilised in case draw down Mark-to-market Basis for stock selection Liquidity Sector coverage Individual risk-returns of
Buffer 15% Stocks 35%

Banknifty 18%

* - Distribution may change basis lot size

2-Oct-10 2-Jul-10 2-Apr-10 2-Jan-10 2-Oct-09 2-Jul-09 2-Apr-09 2-Jan-09 2-Oct-08 2-Jul-08 2-Apr-08 2-Jan-08 2-Oct-07 2-Jul-07 2-Apr-07 2-Jan-07 2-Oct-06 2-Jul-06 2-Apr-06 2-Jan-06
1200 1000 800 600 400 200 0

ProTech Diversified

ProTech Diversified

Results of our back testing - Annual

Year

System Returns

Nifty Returns

2006
2007 2008 2009 2010

42%
45% 55% 49% 17%

40%
55% -52% 72% 18%

System is tested from 1 Jan 2006 to 31 Dec 2010 Returns are pre-cost

ProTech Diversified
Quarter 31-Mar-06 30-Jun-06 29-Sep-06 29-Dec-06 30-Mar-07 29-Jun-07 28-Sep-07 31-Dec-07 Nifty 20% -8% 15% 11% -4% 13% 16% 22%

Results of our back testing - Annual

Diversified 8% 15% 14% 7% 2% 9% 11% 10%

Quarter 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09

Nifty -23% -15% -3% -25% 2% 42% 18% 2%

Diversified 12% 21% 1% 27% 10% 44% 8% 1%

Quarter 31-Mar-10 30-Jun-10 30-Sep-10 31-Dec-10

Nifty 1% 1% 14% 2%

Diversified 7% 1% 8% 1%

Returns are pre-cost

ProTech Diversified

2010 good for Absolute Return Products?

Volatility contraction. Basis Slippage. No clear trend.

ProTech Diversified

Steps taken :

Changes already made: Replaced RNRL with REC Ltd. Replaced HDIL with JP-associate. Increased stock exposure from 3% to 3.5%.

Changes under consideration: Increasing the stock exposure further. Introducing high beta stocks in place of low beta stocks. Increasing Bank nifty exposure.

ProTech ProTech Diversified Vs Nifty Diversified


Diversified Vs Nifty
250% 200% 150%

Time

100% 50% 0%

F-06

F-07

F-08

F-09

O-06

O-07

O-08

O-09

F-10

-50%

Nifty Diversified

Percentage return

O-10

J-06

J-07

J-08

J-09

J-10

ProTech Uniqueness of this product Diversified


Non Toggle system Not always invested Will stay out during sideways market to reduce drawdown risk Constant Risk Exposure Exposure to investments will be constant even after gains Helps in protecting the gains

Buffer Reinvesting in case of draw-downs helps in faster recovery. Client will be given 50% of profits on quarterly basis Non leveraged product

ProTech Diversified
Date Jan'11 - Feb'11 Oct'10-Dec'10 Jul'10-Sep'10 Apr10-Jun'10 Since Inception

QoQ ProTech Diversified Returns

NAV return % age BSE return % age NSE return % age 5.96% -13.10% -13.06% 1.77% 2.19% 1.73% 6.3% 13.4% 13.5% -1.4% 0.1% 0.4% 11.05% 3.59% 4.07%

* Returns are based on the clients who are in the system since Inception

Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those returns are calculated on the basis of cash flow method at a portfolio Level

ProTech PMS

Our Offerings

Minimum Investment: Indian Resident Rs 5 lakhs,

Fees AMC fees : 0% Brokerage : 0.05% only Profit Sharing :20% profit sharing on booked profits on quarterly basis

PROCESS
Details of How PMS Works..

TAXATION

ProPrime PMS
Adjusting profits:

Computation of Tax

Profits are adjusted against the expenses borne for maintaining the PMS A/c which is available in the ledger

Other charges: Profit Sharing, Brokerage charges & any other charges are to be treated as expenses borne for the PMS A/c.

ProTech PMS

Computation of Tax

Short Term Capital Gains are charged at 33% on realised gains


Other charges: Profit Sharing, Brokerage charges & any other charges are to be treated as expenses borne for the PMS A/c

Free your time & have fun Invest

in Sharekhan PMS

Thank You

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