ALCHEMY ASCENT

In the current investment world it is believed that the key to any successful investment strategy is in finding the “right stock”, the “right theme”, the “right sector” and the “right cycle”. Even the most experienced investors are prone to biases which are inherent in the investing process. This results in inconsistent alpha generation. • However, we believe that building a high performance portfolio involves much more. Stock allocation, its relative

ranking in the portfolio and timing along with risk controls, also play a very important part of the alpha generation process. We believe in strong data based research process, which considers all sources of alpha generation comprehensively, thus helps in creating an unbiased disciplined investment approach – a key to successful and consistent investment outcomes.

• Alchemy ASCENT* endeavors to provide a consistent “high alpha” investment strategy which build portfolios to

deliver consistent outperformance over the long term, using an objective, back tested and data driven approach devoid of any biases.

RESULT ORIENTED

UNBIASED DISCIPLINED CONSISTENT DATA DRIVEN ASCENT PORTFOLIO

*Alchemy Capital Management Pvt Ltd (Alchemy Capital) is registered as a Portfolio manager with SEBI. Alchemy Ascent is the product of Alchemy Capital's Portfolio Management Services. *The investment objectives are indicative and there are no assurances that they will be achieved.

WHAT WHY/HOW KEY VARIABLES

Growth

• Growth which is significantly more than the cost of capital • Consistent & Continuous growth • Growth adjusted for different levels of margins • Negative marking if there is high divergence or deterioration

in growth and/or Return on Capital

• Revenue • Income /Cash Flow • Margins (Net &

EBITDA) • Return on Capital

Valuations • Value calculated as Price to Earning and Price to Cash Flow

(Excluding Financials) • Valuations is adjusted to the quality of firm • Valuation is also adjusted to the growth of the firm

• Earnings Yield • Treasury Yield • Price to Earnings

• Price to Cash Flow

• Return on Capital

• Net Margin

Quality & Risk Management

• Rejection is more important than selection • Strict negative marks for bad balance sheet items, but no

positive marks for the same as it is mandated of an investment candidate

• This also helps us filter out companies which are not managed properly OR which eventually turn out to be CAGR KILLERS

• Return on Capital • Free Cash Flow • Cash Conversion

Cycle • Working Capital

• Debt • Share Capital

Market Cycle • Presence /Absence of rewarding market cycle • Stock which is appreciated by markets increases our winning

ratio • Past behaviour of drawdown and volatility

• Volatility • Performance vis-à-

vis Index

• Periodic Draw-downs

WHAT, WHY & HOW

Preamble

• 5 Year CAGR returns for different Start Dates • “Start Dates” correspond to different portfolio

starting dates for back testing, these dates represent

• Different market cycles or; • Start of each year since 1997

• Selection of Different Market Cycle Dates: • “Near Market Top” :- Corresponds to a

random date between a market top and a 3 month earlier period, so that we get 90%-100% deployed before the crash. This tests the vulnerability of the strategy

• “ Near Market Bottom” :- Corresponds to a random date between a market bottom and a 3 month earlier period. This tests the dynamic deploying capacity of the strategy

• “Multiple” = Ascent Return’s ÷ BSE 200 Return’s where

• * Represents a multiple of 3 as Benchmark is – ve and Ascent is + ve

• # Represents a multiple of 2 where Benchmark Return is – ve and Ascent Return is – ve, but Ascent Return > Benchmark Return

ALCHEMY ASCENT

Start Dates Market Cycles ASCENT^ BSE200 Mutliple 01/01/1997 Start of Year 50.49% 1.09% 46.29 15/06/1997 Near Market Top 38.46% 1.00% 38.58 01/01/1998 Start of Year 45.66% 1.98% 23.02 10/03/1998 Near Market Top 47.23% 0.46% 102.17 01/01/1999 Start of Year 47.17% 19.93% 2.37 19/08/1999 Near Market Top 24.61% 6.95% 3.54 30/12/1999 Near Market Top 19.73% 8.11% 2.43 01/01/2000 Start of Year 19.55% 6.90% 2.83 07/02/2000 Near Market Top 19.77% 4.60% 4.30 01/01/2001 Start of Year 45.14% 22.16% 2.04 01/01/2002 Start of Year 55.35% 37.26% 1.49 11/02/2002 Near Market Top 51.25% 35.59% 1.44 01/01/2003 Start of Year 67.21% 46.48% 1.45 20/12/2003 Near Market Top 17.90% 10.37% 1.73 01/01/2004 Start of Year 15.47% 8.74% 1.77 01/01/2005 Start of Year 29.18% 19.36% 1.51 01/01/2006 Start of Year 42.98% 16.38% 2.62 20/03/2006 Near Market Top 24.22% 10.03% 2.41 01/01/2007 Start of Year 7.48% 2.09% 3.59 01/11/2007 Near Market Top 8.73% -1.09% 3.00 * 01/01/2008 Start of Year 7.49% -1.75% 3.00 * 01/01/2009 Start of Year 28.97% 16.35% 1.77 09/03/2009 Near Market Bottom 31.78% 21.88% 1.45 01/01/2010 Start of Year 22.27% 9.34% 2.38 06/09/2010 Near Market Top 23.86% 6.34% 3.77 01/01/2011 Start of Year 24.14% 5.91% 4.09 01/01/2012 Start of Year 28.05% 13.64% 2.06 01/01/2013 Start of Year 31.67% 13.71% 2.31 16/05/2013 Near Market Top 31.84% 13.40% 2.38 01/01/2014 Start of Year 19.33% 12.94% 1.49

^The back tested past performance is for illustration purpose only and is not an indicator /assurance of future performance. ^Returns are shown as gross of all fees and expenses.

5 YEAR CAGR RETURNS FOR DIFFERENT START DATES

BACK TESTED PERFORMANCE

5 YEAR ROLLING CAGR

1997-2001 1998-

2002 1999-2003 2000-

2004 2001-2005 2002-

2006 2003-2007 2004-

2008 2005-2009 2006-

2010 2007-2011 2008-

2012 2009-2013 2010-

2014 2011-2015 2012-

2016 2013-2017 2014-

2018 ASCENT* 51% 47% 65% 21% 44% 60% 69% 16% 30% 22% 7% 6% 28% 24% 23% 26% 30% 23%

BSE200 1% 2% 20% 8% 22% 37% 47% 9% 20% 16% 2% -2% 16% 10% 6% 14% 14% 13% Alpha 49% 45% 46% 13% 22% 23% 22% 7% 11% 6% 5% 7% 11% 14% 17% 13% 16% 11%

*The back tested past performance is for illustration purpose only and is not an indicator /assurance of future performance. | *Returns are shown as gross of all fees and expenses.

5 years rolling returns for Portfolio started 01- January 1997 till 31-December 2018.

ALCHEMY ASCENT

Fund Manager

Fund Manager - Vikas Kumar With over 19 years of equity market experience, Mr. Vikas Kumar has expansive experience that includes equity analysis, private client fund management and strategy building on a sell-side institutional desk. He specializes in creating data-based quantitative algorithms & mathematically objective implementation strategies. His unique research paper on investment methodology, A Quantitative System for Reflexive Financial Markets, earned him a U.S. copyright. He pursued a BA in Math from Delhi University, qualified for Indian Institute of Technology Joint Entrance Examination (IIT-JEE), was a state-level National Talent Search Examination (NTSE) merit scholar and one of the national CBSE toppers. Prior to Alchemy, he worked with Dalal & Broacha Stock Broking and collaborated at Reliance Capital. He was also nominated as one of the best Quant Analysts in Asia by Institutional Investor magazine in 2009.

OBJECTIVE METHOD INVESTING*

1 Unbiased approach towards each stock 2

Greed/Fear/Hope are mitigated by having objective method for investment

3 Focus on Discipline & Data to generate CAGR

4 Back Tested for more than 21 years across many market cycles

5 Ability to scan over 2000 stocks daily to find a winner 6

Endeavor to generate returns outperforming the relevant Index over 3-5 Year

7 Churn ratio of ~ 0.67 8 Average cash level is ~ 10% 9 Focused unbiased active portfolio management

*The investment objectives are indicative and there are no assurances that they will be achieved.

STOCK SELECTION

• Market Capitalization Cut-off: INR 4,000 Crores

• Investible stocks have to pass a stringent

system of eliminating value destroying factors & are sometimes vetoed based on risk and fundamental forensic analysis

• Over 50 Quantified fundamental

parameters and their combinations used for screening of investible universe

• Highest Ranked Stocks based on points

filtered

CAPITAL ALLOCATION

• Portfolio on an average holds 25 stocks-30 stocks

• Weight per stock may range from

3% to 6% @cost , exceptional stocks may get an allocation of 10% @cost

• Ranking system optimizes stock to

be held in the portfolio and creates allocation for the same

RISK MANAGEMENT

A. Prohibitive Risk • Quality Filters • Negative Marking for Unfavourable factors

such as Balance Sheet ratios B. Participative Risk / Exit Strategy

• Daily change in Rank / Score of IndividuaL Stock (Using Fundamental Data)

• Draw-Down / CAGR non performer • Multiple rules based on above scenarios

C. Operational risk minimized using automation of

processes

INVESTMENT PROCESS

*The investment objectives and allocation are indicative and there are no assurances that they will be achieved.

Portfolio Holdings (as on 31st Jan 2020)

Company Weight (%) Aavas Financiers 9.5% Bajaj Finance 7.4% Ratnamani Metals & Tubes 6.2% Rites 4.4% Metropolis Healthcare 4.4% Larsen & Toubro Infotech 4.1% Indiamart Intermesh 3.9% Gujarat State Petronet 3.5% Manappuram Finance 3.3% Indraprastha Gas 3.1%

Fund Performance

Fund Performance

Period 1 Month 3 Months Since Inception Fund Returns* (%) 4.0 6.0 10.0 % Benchmark S&P BSE 200 -0.7 1.2 11.6 *Data as on 31/01/2020 Inception Date: 3rd Sept 2019 The above performance figures are aggregate of all clients; the investor’s actual portfolio may differ. Past Performance is no assurance for future returns. Returns presented are net of fees and expenses.

ALCHEMY ASCENT

GENERAL RISK FACTORS • All investment products attract various kinds of risks. Please read the relevant Disclosure Document/ Client Agreement carefully before

investing. GENERAL DISCLAIMERS • The information and opinions contained in this report/ presentation have been obtained from sources believed to be reliable, but no

representation or warranty, express or implied, is made that such information is accurate or complete. • Information and opinions contained in the report/ presentation are disseminated for the information of authorized recipients only, and

are not to be relied upon as advisory or authoritative or taken in substitution for the exercise of due diligence and judgement by any recipient.

• The information and opinions are not, and should not be construed as, an offer or solicitation to buy or sell any securities or make any investments.

• Nothing contained herein, including past performance, shall constitute any representation or warranty as to future performance. • The client is solely responsible for consulting his/her/its own independent advisors as to the legal, tax, accounting and related matters

concerning investments and nothing in this document or in any communication shall constitutes such advice. • The client is expected to understand the risk factors associated with investment & act on the information solely on his/her/its own risk.

As a condition for providing this information, the client agrees that Alchemy Capital Management Pvt. Ltd., its Group or affiliates makes no representation and shall have no liability in any way arising to them or any other entity for any loss or damage, direct or indirect, arising from the use of this information.

• This document and its contents are proprietary information of Alchemy Capital Management Pvt. Ltd and may not be reproduced or otherwise disseminated in whole or in part without the written consent.

Alchemy Capital Management Pvt. Ltd |B-4, Amerchand Mansion|16 Madame Cama Road| Mumbai 400 001.|URL: www.alchemycapital.com CIN-U67120MH1999PTC119811|Email ID: contactus@alchemycapital.com

Fund Key Terms#

Product Name ALCHEMY ASCENT Portfolio Manager Alchemy Capital Management Pvt Ltd, a SEBI Registered Portfolio Manager Ideal Investment Horizon 3 to 5 yrs Initial Investment Amount Minimum Rs 50 Lacs Underlying Asset Class Listed Equities

Inflows / Corpus Funds through Cheque, RTGS or NEFT Note : Stock Transfer will not be accepted

Additional Inflows An existing client of Alchemy Ascent, wanting to give additional Inflow into the same product, will have to give a minimum Rs 25 lac and a separate Portfolio will be created for each additional Inflow

Redemption Window Daily Redemption* subject to Exit Fees Benchmark BSE 200 Risk Profile High Risk Fund Manager Mr. Vikas Kumar

Eligible Investors

Resident Indians, NRI ,HNI, Hindu undivided Family (HUF), Banks, Bodies Corporate, Partnership Firm & Trusts (excl. investors who have restrictions in purchasing stocks, such as clients who want Sharia compliant portfolio, Jain Portfolio and Consulting clients, where we have to go back and check with their compliance before investing in stocks etc.)

Fee Plan Option 1 : Fixed Fee Plan

Fixed Fees 2.5% per annum on Net Asset Value, charged quarterly

Fee Plan Option 2 : Fixed Plus Variable Fee Plan

Fixed Fees 1.5% per annum on Net Asset Value (before charging performance fee) and charged quarterly Hurdle Rate 10 % p.a.

Performance Fees 15% of returns charged annually on the effective date (i.e. account activation date), with the hurdle of 10% and High Watermark applies

#These are not the complete terms; Please read the Disclosure Document/ Client Agreement for complete details. *Partial withdrawals will only be permitted subject to the residual value of the Portfolio not falling below statutory requirement as on the date of the withdrawal.

DISCLAIMERS