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BONANZA PRAGMATICSHARIAH

(BPS-Fund) FUND

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Portfolio Management Services (PMS)

ETHICS

SHARIAH

`TRANSPARENCY

GROWTH

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Introduction to Bonanza Group

Introduction to Pragmatic Wealth Management Pvt. Ltd.

Portfolio Management Services (PMS)

Bonanza Pragmatic Shariah Fund (BPS-Fund)

Bonanza a leading Financial Services and Broking House working diligently since 1994 can be described in a single word as a "Financial Powerhouse" with acknowledged industry leadership in execution and clearing services on Exchange Trade Derivatives and cash market products. Bonanza has spread its trustworthy tentacles all over the country with more than 1632 outlets spread across 535 cities.

It provides an extensive smorgasboard of services in equity, commodity, currency derivative, Wealth management, Distribution of third party products etcs.

Keeping in par with the modern tech-savvy world, Bonanza makes an integrated and innovative use of technology; it also enable its clients to invest online as well as offline. Strategic tie-ups with latest technology partners has earned Bonanza membership of various principal stock and Commodity Exchanges making Bonanza stand apart from its competitors and a preferred services provider in the industry for valuebased services.

Bonanza's Journey through the years has been very eventful in nature. We have not only been ranked as the 4th largest broking firm in India* but also have been nominated 3r by UTI MF and CNBC TV 18 Financial Awards 2010 in the Best Financial Advisor-Retail category.

Pragmatic Wealth Management (PWM), is one of the pioneers in Shariah Financial Services equipped with strong capital market experts having technical expertise as well. It is headed by Dr. M.Y. Khan as a Non-Executive Chairman along with governing board with Mr. Imtiaz Merchant as a Managing Director. PWM specializes in Shariah wealth Management Advisory & Research with clear focus on Shariah Compliant or Islamic Investments.

Bonanza Portfolio Limited is registered with SEBI as a provider of Portfolio Management Services and our team of portfolio managers design portfolio to suit every client’s needs. We suggest appropriate products to the clients based on factors like their investment spheres, return expectations and risk tolerance.

We have observed that the Indian equity market offers incredible

avenue for Shariah compliant investments. At present, it offers the best alternative, perhaps the only alternative to the Indian Muslim investors (Rabbul - Mal) who would like to invest their savings in Shariah manner rather than depositing their savings in the bank. The Indian equity market, with its enormous potential for growth, can compete favorably with global portfolio managers and attract high net worth individual investors. In view of this, we decided to launch a Shariah Fund as “Bonanza-Pragmatic Shariah Fund” (BPS – Fund) as a joint initiative of Bonanza Portfolio Ltd (BPL) and Pragmatic Wealth Management P. Ltd. (PWM).

Name of the fund, Bonanza- Pragmatic Shariah Fund The objective of the strategy is to secure long term gains from the investments in the combination of large and mid size companies which are Shariah compliant. It excludes investments in the industries like Banking, Liquor, Tobacco, Entertainment, NBFCs and Securities trading business etc.

Imtiaz Merchant

` 25 lacs

Shariah PMS will invest in the following sectors: Automobiles, Consumer Goods & Services, Construction & Reality, Capital Goods & Industrials, Healthcare, Information Technology, Metal & Mines, Oil & Gas, Power & Utility.

Shariah Certificate to The PMS Fund will be issued by a Shariah Board “Islamic Investment & Finance Board (IIFB)” based on the report submitted by Pragmatic Wealth Management P. Ltd. IIFB comprises reputed and learned Islamic scholars. The Shariah Board will also conduct a periodic review of all the portfolios of individual clients and will issue the Shariah Certificates.

The stocks invested in equity will be selected from Shariah compliant companies comprising Large, Mid and small size companies. The market capitalization of these Shariah complaint companies is well over 55 % of market capitalization of the NSE and BSE. The fund will be investing in

Fund Objective:

Fund Advisors:

Minimum Investment:

Sectors:

Shariah Certification:

Stock Selection:

Islamically permissible stocks with minimum market capitalization of 1000 crores.

The Shariah PMS will benchmark against Sensex, Nifty, S&P Shariah index.

Shariah Laws aim to set ethical standard to promote welfare and protection of investors there for Shariah has prohibited investment in the industry manufacturing wine, pork, tobacco and its related products etc and services sectors like Interest based banks, NBFC, Insurance, entertainment, cinema, music etc. we all know that everyone of us is interested to have healthy, clean and transparent life that is why Shariah fund are for your services.

Looking into the need to invest in equity markets, Shariah scholars have imposed certain restriction and stipulated conditions if these are met then one can invest in equity markets the permissible (Halal) way

Investment is done in Shariah compliant stocks. Securities trading in derivatives and intraday trading in stocks are strictly not permitted. Short selling is completely prohibited. Stocks will be sold upon having its complete possession.

Investment shall not be done in stocks of the companies whose business activity is prohibited like the Conventional interest based banks, NBFC, Insurance companies, securities trading companies, Entertainment includes film production companies, cinema, Cable TV, music etc. Alcoholic beverages like wine and liquor, tobacco and its related products, Pork and non- Halal food products companies.

a)Interest bearing debt of the companies should not exceed 33 percent of its twelve months average market capitalization.b)Cash plus interest bearing securities of the companies should not exceed 33 percent of its twelve months average market capitalization.c)Trade receivable and other deb tors of the companies should not exceed 33 percent of its twelve months average market capitalization.d)Interest Income plus any impure income of the companies to its company's total income should not exceed 5 percent.

The profit thus derived from Shariah PMS in needs be purified (purged) and given as charity. (We provide this value added to our client )

Performance Bench Mark:

WHAT IS SHARIAH COMPLAINT INVESTMENT?

1) Restriction Based on the Type of Securities:

2)Restriction on Business Activity:

3)Restriction Based on Financial ratios:

4)Purification of Impure Income:

SCOPE FOR ISLAMIC INVESTMENTS

Imtiaz Merchant – Fund Manager

With sound economic base and with hundreds of companies complying with Shariah norms, India offers a huge opportunity for Islamic equity investment. If performance as a parameter is considered, it is observed that Shariah complaint investment being low in debt and having sound fundamental principles tend to perform better, hence large non- muslim investors should take the benefit of this socially responsible and above par performing Islamic investments, moreover India, being world's largest democracy, young population, high quality entrepreneurs, vigilant & vibrant regulators gives a clear advantage. India is not only one of the fastest growing economies in the world that offers an excellent investment opportunity on a massive scale.

Mr. Imtiaz Merchant, is a Commerce Graduate from Mumbai University, and holds a PG diploma in Marketing Management.He is the Fund Manager for Bonanza –Pragmatic Shariah Fund. He has significant expertise in Fundamental as well as Technical analysis with more than 12 years of experience of equity markets.He is well-versed with the Islamic Finance Market and the Shariah Compliance norms for investments. He has put in

years of extensive effort into understanding the principles of Islamic Finance and has been in constant discussions with and Islamic Finance scholars and experts. He has successfully created Islamic index namely Islami Tijara Equity index (ITE index). In all he has constructed 14 Shariah indices and they are backtracked since 2006. Having in-depth knowledge on the subject of Shariah Investment he has a privilege to create Shariah Compliant Stock Universe.

Mr. Merchant's major endeavor is to continue to develop and market the Islamic investment products that help Shariah Compliant investors who deserve to invest their savings ethically, efficiently and profitably.

It is impossible to produce a superior performance, unless you do something different from the majority.

Plot No. M-2, Cama Industrial Estate, Walbhat Road, Behind The Hub, Goregaon (E), Mumbai - 63.

Tel: +91-22-67605 500/600Toll Free: 1800220252, 022-39704040 E-mail: [email protected]

www.bonanzaonline.com

102, First Floor, Topaz Society, Dr. Nair Road, Agripada, Mumbai Central (E) Mumbai 400011

Tel.: +91-22-23001290 / 23007290E-mail: [email protected]

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