Your Gateway to be a part of Indian EquityYour Gateway to be a part of Indian Equity

Why should an NRI invest in India ?Why should an NRI invest in India ?

India, Then and NowIndia, Then and Now

What makes India a Great Investment What makes India a Great Investment Destination ?Destination ?

Increasing Urbanisation and Metro CultureIncreasing Urbanisation and Metro Culture

1999 2010

Subscribers (mn) 1.1 584

Tariff ($ per min) 0.19 0.01

Positive ExperiencePositive Experience

Telecom SectorTelecom Sector

Source : TRAISource : TRAI

Estimated Investments in Infrastructure 2005-10Estimated Investments in Infrastructure 2005-10

Source: SSKISource: SSKI

Area Total (Rs.in crs)Power 2,97,300 Roads 2,46,600 Ports 25,000 National Maritime Dev. Program 33,500 Railways 74,900 Pipelines 40,000 Airports 22,800 SEZ 11,600 Irrigation & water supply 46,100 Bus Terminals 900 Urban Infrastructure 63,000 Total 8,61,700

Strong Infrastructure SpendingStrong Infrastructure Spending

Strong Democratic Economy with sustained Strong Democratic Economy with sustained High Growth :High Growth :

One of the fastest growing economies of the World.One of the fastest growing economies of the World.The growth momentum is still continued when the Rest of World faces The growth momentum is still continued when the Rest of World faces recessionrecession

71

64

44

33

31

17

10

0

-3

314World

India

Africa*

China

South East Asia

Latin America

Western Asia

USA

Europe

Japan

Addition to working age population by 2010

In Millions

* Note: Africa includes a group of 56 countries. * Note: Africa includes a group of 56 countries. Source: UN, Morgan Stanley Research.Source: UN, Morgan Stanley Research.

India to contribute around 25% in Adding Working India to contribute around 25% in Adding Working population to the worldpopulation to the world

Demographic EdgeDemographic Edge

WHAT ARE THE INVESTMENT WHAT ARE THE INVESTMENT OPTIONS AVAILABLE ?OPTIONS AVAILABLE ?

 NRE FD  NRO FD  FCNR FD  Mutual Funds

3% to4% 3% to 4% 15% to 20%

Repatriable Tax free

8% Less TDS 33% Effective Interest 6 %

Non – Repatriable TDS applicable

Repatriable Tax Free Currency fluctuation

risk avoided

Repatriable Long term Capital Gain –

Tax Free

Investment options available incase of NRIInvestment options available incase of NRI

Why an NRI should invest in Indian Equities ?Why an NRI should invest in Indian Equities ?

      3 Yrs.      5 Yrs.      7 Yrs.      10 Yrs.

DJIA (USA) -10.26 -1.04 1.36 -0.61

BSE Sensex (India) 5.5 19.79 25.57 14.26

FTSE 100 (UK) -8.16 -0.28 3.43 -2.21

NIKKIE (Japan) -19.77 -4.36 -0.18 -5.71

Shanghai Composite (China) -14.63 18.74 7.03 1.97

 International Indices

Compelling reasons to invest in Indian EquitiesCompelling reasons to invest in Indian Equities

As on 16 July, 2010. Above returns are in CAGR.As on 16 July, 2010. Above returns are in CAGR.

Year Sensex Investment Rs.

1979 100 1 Lac

2010 17955 1.80 Crore

Past PerformancePast Performance

In past 31 years, BSE sensex has given approx. 18.03% ReturnsIn past 31 years, BSE sensex has given approx. 18.03% Returns

This is in spite of …This is in spite of …• Two warsTwo wars• At least three major financial scandalsAt least three major financial scandals• Assassination of 2 prime ministersAssassination of 2 prime ministers

• At least 3 recessionary periods At least 3 recessionary periods including the current Global including the current Global RecessionRecession

• 10 different governments10 different governments• An unfair share of natural An unfair share of natural

disastersdisasters

Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in future. Please read the offer document carefully before investing. Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in future. Please read the offer document carefully before investing.

*As on 16 July 2010*As on 16 July 2010

But People are scared to Invest in Equity?But People are scared to Invest in Equity?Or Why do I loose money on India ?Or Why do I loose money on India ?

Returns in Equities are function of Earnings Returns in Equities are function of Earnings or Valuations are a Slave of Earningsor Valuations are a Slave of Earnings

Eco. GrowthEco. Growth DemandDemand Co. ProfitsCo. Profits ReturnsReturns

Jan-91 Jan-92 Jan-93 Feb-94 Feb-95 Feb-96 Mar-97 Mar-98 Mar-99 Mar-00 Apr-01 Apr-02 Apr-03 Apr-04 May-05 May-06 May-07 May-08 Jun-09 Jun-10

Sensex Vs Sensex Earning

Months

Jun-91 1,269.91 60.21

Jun-10 17,700.90 839.30

14.86% 14.86%

Co-relation coefficient 0.97

Sensex Value

Sensex Earnings

•Long Term Equity Long Term Equity ReturnReturns is a function of the s is a function of the profitability growthprofitability growth of the of the companies which in turn is related to the companies which in turn is related to the economic growtheconomic growth

03/9

8

03/9

9

03/0

0

03/0

1

03/0

2

03/0

3

03/0

4

03/0

5

03/0

6

03/0

7

03/0

8

03/0

9

0

2 0 0

4 0 0

6 0 0

8 0 0

1 0 0 0

1 2 0 0

1 4 0 0

R e l i a n c e I n d u s t r i e s L t d .

P r o f i tS t o c k P r i c e

Price Earning Movement of Reliance Industries LtdPrice Earning Movement of Reliance Industries Ltd..

WHY SHOULD AN NRI INVEST IN WHY SHOULD AN NRI INVEST IN INDIAN MUTUAL FUNDS ?INDIAN MUTUAL FUNDS ?

Portfolio DiversificationPortfolio Diversification

Reduction of Risk Reduction of Risk

Access to InformationAccess to Information

Convenience & FlexibilityConvenience & Flexibility

LiquidityLiquidity

Professional Management Professional Management

Reduction of Transaction Costs Reduction of Transaction Costs

MF AdvantagesMF Advantages

Mutual Funds in India follow a 3 tier structureSponsor – Promotes/initiates the Mutual FundTrust – Created by Sponsor. Guardian of the money invested by unit holders. AMC – Business face of the Mutual Fund. Launches

Schemes, manages the funds of investor.

The money invested goes into the trust.The AMC is NOT the owner of the money invested by unitholders.The AMC CANNOT run away with the money invested.

MF Structure in IndiaMF Structure in India

• Outstanding Performance

• Established Fund Houses like Reliance, HDFC, ICICI, Birla, SBI, Sundaram

• Strongly regulated by SEBI

• Easy operation and low documentation

• Zero taxation on investments made for a period of one year and above in Equity Funds

Invest now in Indian Mutual FundsInvest now in Indian Mutual Funds

DETAILS TENURE

5 yrs 7 yrs 10 yrs 12 yrs

No. of schemes 70 45 25 15

Average Returns 22.18% 32.01% 22.53% 22.54%

Sensex returns 19.79% 25.57% 14.26% 14.67%

27,22,705 69,86,309 76,28,240 1,14,63,956

12,46,182 13,60,862 15,52,969 16,95,881

13,61,425 15,40,250 18,53,478 20,96,935

Value of Rs. 1 mn. invested (avg returns of Mutual Funds)

Value of Rs. 1 mn. invested In NRE FD at fixed return of

4.50%**

Value of Rs. 1 mn. invested in NRO FD at post tax return of 6.365%*

CAGR Returns as on July 16, 2010CAGR Returns as on July 16, 2010

*/**NRE/NRO Bank FD return may vary from time to time & may be different with different bank.*/**NRE/NRO Bank FD return may vary from time to time & may be different with different bank.

Amount invested – Rs. 1 mnAmount invested – Rs. 1 mn

Indian Mutual Funds Performance – A snapshotIndian Mutual Funds Performance – A snapshot

Even a difference of 5% can impact your returns significantly over Long term Even a difference of 5% can impact your returns significantly over Long term

4,045,558 6,191,7364,045,558 6,191,736

Source : Capitalmarket Software ; Data since Jan 1988Source : Capitalmarket Software ; Data since Jan 1988

Auto Market Timing through SIPAuto Market Timing through SIP

SIP Performance of Mutual Fund SchemesSIP Performance of Mutual Fund Schemes

Value of Monthly SIP of Rs. 50000

Scheme Name Value % CAGR Value % CAGR

5,337,693 23.24 11,420,357 28.13

4,882,678 19.56 10,497,942 25.74

Kotak 30 - Div 4,388,648 15.20 9,040,983 21.52

Reliance Growth Fund - Gr 5,184,087 22.03 11,824,645 29.12

5,359,595 23.41 12,046,635 29.65

5 Years Amount Invested Rs. 30,00,000

7 Years Amount Invested Rs. 42,00,000

DSP BlackRock Equity Fund - Div

ICICI Prudential Dynamic Plan - Gr

Sundaram BNP Paribas Select MidCap - Gr

Returns as on 31- Aug-10Returns as on 31- Aug-10

SIP for Different Amount/ Different tenure @ 15 % Returns

Years / Amount 15000 p.m 25000 p.m 50000 p.m

5 yrs. 13,10,135 21,83,558 43,67,116

10 yrs. 39,45,297 65,75,495 1,31,50,989

12 yrs. 56,35,438 93,92,397 1,87,84,794

Assuming Sip starts at beginning of every monthAssuming Sip starts at beginning of every monthThe above figures in Rs.The above figures in Rs.Helps investors to decide an investment amount to achieve multiple goals.Helps investors to decide an investment amount to achieve multiple goals.

Value of your SIP Investment @ 15% ReturnsValue of your SIP Investment @ 15% Returns

• Equity Returns assumed at 15 %Equity Returns assumed at 15 %• FD Returns assumed at 8%FD Returns assumed at 8%

Do You know what you MISS by not Do You know what you MISS by not investing in Equity?investing in Equity?

The above is based on investments of Rs. 50000 pm for 20 yrsThe above example/figure is as per the current market price.01.08.2010

Fabulous 1 Bedroom Apartment Fabulous 1 Bedroom Apartment at Burj Khalifa at Burj Khalifa (Approx 900 Sq. Ft. at 3200 AED per Sq. Ft.)

6 Cars of 2010 BMW 7 6 Cars of 2010 BMW 7 SeriesSeries(Average price of Rs. 6300000 per car) 

15 Vacations at Hawai or similar 15 Vacations at Hawai or similar destination for 2 destination for 2 ((Average cost per vacation Rs. 25 lacs for 2)

OROR

OROR

WHAT IS THE TAX TREATMENT WHAT IS THE TAX TREATMENT FOR AN NRI ?FOR AN NRI ?

20%20%NilNilLong Term Capital GainsLong Term Capital Gains

30%30%15%15%Short Term Capital GainsShort Term Capital Gains

TDSTDS

14.1625%14.1625% Debt schemes other than LiquidDebt schemes other than Liquid

28.325% 28.325% Liquid SchemesLiquid SchemesNilNilDividend Distribution TaxDividend Distribution Tax

Tax freeTax freeTax freeTax freeDividend IncomeDividend Income

10%10% (20% with indexation)(20% with indexation)

((

NilNilLong Term Capital GainsLong Term Capital Gains

As per SlabAs per Slab15%15%ShortShort Term Capital GainsTerm Capital Gains

DebtDebtEquityEquityTaxationTaxation

Financial Year 2009-2010Financial Year 2009-2010

How an NRI can track his investmentsHow an NRI can track his investments&&

Know the Valuation of his investmentsKnow the Valuation of his investmentsMade in India ?Made in India ?

What documents are required What documents are required For NRIs for investment in For NRIs for investment in

Indian Mutual Funds ?Indian Mutual Funds ?

• PAN Card

• NRE Bank Account

• Know Your Customer ( KYC)

Advisors will Assist you in Processing the above documentsAdvisors will Assist you in Processing the above documents

Documentation RequiredDocumentation Required

Can NRI from any part of worldCan NRI from any part of worldInvest inInvest in

Any MF scheme in India ?Any MF scheme in India ?

In General there are no restriction for In General there are no restriction for investments on NRIs investments on NRIs

Only NRI from few countries do have Restriction Only NRI from few countries do have Restriction in Investing in Certain Mutual Fund Schemes.in Investing in Certain Mutual Fund Schemes.

For ex – U.S. NRI’s cannot invest in schemes of For ex – U.S. NRI’s cannot invest in schemes of Franklin AMC, Fidelity AMC in IndiaFranklin AMC, Fidelity AMC in India

Advisors can guide you on this. Advisors can guide you on this.

Restriction on NRI InvestmentsRestriction on NRI Investments

Do you have Other Investment option availableDo you have Other Investment option available for NRI ?for NRI ?

•Other then India domicile Mutual FundsOther then India domicile Mutual Funds

•Indian Real EstateIndian Real Estate

•PMS (Portfolio Management Services)PMS (Portfolio Management Services)

Multiple Offerings under one roofMultiple Offerings under one roof

•A Unique Indian Real Estate online Platform available to A Unique Indian Real Estate online Platform available to clients clients •Clients can buy properties in more than 160+ projects spread Clients can buy properties in more than 160+ projects spread across more than 25+ cities in the countryacross more than 25+ cities in the country•Quality Projects of Leading developers like Unitech, Ansals, Quality Projects of Leading developers like Unitech, Ansals, Hiranandani, DLF, Jaypee, Gera, Palacio, Acme, DLF group, Hiranandani, DLF, Jaypee, Gera, Palacio, Acme, DLF group, IndiaBulls etc availableIndiaBulls etc available•Projects available in Mumbai, Surat, Chennai, Kolkata, Delhi, Projects available in Mumbai, Surat, Chennai, Kolkata, Delhi, Bangalore, Hyderabad, Chandigarh, Pune, Ahmedabad, Goa and Bangalore, Hyderabad, Chandigarh, Pune, Ahmedabad, Goa and other metro cities in the countryother metro cities in the country•Due diligence for all the projects done by the team of experts Due diligence for all the projects done by the team of experts from NJ Realtyfrom NJ Realty•Clients can plan their Real Estate investments with ease and Clients can plan their Real Estate investments with ease and can be rest assured about the Legal aspects of the Projectscan be rest assured about the Legal aspects of the Projects

Indian Real EstateIndian Real Estate

● Fair Value Market, albeit at higher end

● Think Long Term

● Do Systematic Investment

● Balance between Large Cap and Mid Cap

● Prefer Infrastructure Theme over Broad Market

● If Economy grows, Corporate Profitability will grow

● If Profits grow, Stock prices will follow

RecommendationRecommendation

•A window to Investments in India•All Indian Investment product available under one roof• Mutual Fund• PMS• Real Estate•One stop shop for all investment related queries•Online transaction features available•Online access to your valuation report•Consolidation of you portfolio•Managed by qualified Investment Advisor•Operational Support provided

Summing up...Summing up...

THANK YOUTHANK YOU