Investment Advis Ary

8/6/2019 Investment Advis Ary

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ABOUT US

o Multi-services financial company with over 2500 business locations across 450

cities in India catering to over 1 million customers

o Net worth of over Rs.17bn, and significant unutilized capacity to leverage

o Diversified business model across multiple revenue streams like, Retail and

Institutional Equities, Commodities, Life Insurance and Mutual Funds distribution,

Wealth Management, Investment Banking, Consumer Finance and more

o International presence with memberships on the Colombo and Singapore stock

exchanges

o Adjudged the ‘Best Equity Broker of the Year’ at the Bloomberg UTV Financial

Leadership Awards, 2011, ‘Best Broker-India’ by Finance Asia in 2008, and ‘Fastest

growing large broking house’ in 2008 by Dun & Bradstreet



IIFL Business Model

Customer

Segments

Our Service Offerings

Equities

Insurance

Credit & Finance

Wealth Management

Asset Management

Investment Banking



How we differentiate ourselves

•Promoted by 1st generation professional entrepreneurs

•Highly qualified and experienced management teamManagerial Depth

•Net worth approximately Rs. 17bn

•Significant unutilized capacity to leverageWell-capitalized

•Present at over 3000 business locations across 500 cities in India•Global footprint covers Colombo, Dubai, New York & SingaporeDistribution reach

• The top management is driven by pride and reward of ownership

• To think and work like an owner is part of organization’s DNAOwner-mindset

• Uniquely placed with proprietary front, mid and back office software

• Effectively harnessed technology to provide superior customer experienceTechnology edge

• De-risked and diversified business model across multiple revenue streams

• Multiple products across all segments of financial servicesDe-risked



Current Market SituationOpportunities & Threats



CORE STRENGTH

Source: India CSO

Source: Bloomberg

o Growth continues toremain highest amongstthe world

o Domestic consumptionremains intact

o Favourable demographics

will drive productivity &consumption

o Dollar carry trade willsupport flows to India

o Continued focus ondisinvestment



OPPORTUNITIES

Source: Bloomberg

Nifty trailing PE has corrected sharply from 2SD above its

historical average to fair value zone

Nifty Historical Daily ChartIndia’s underperformance vs Global Equities YTD

01As on 3rd may, 2011





OPPORTUNITIES

April will be second consecutive month of FII inflows however,

monthly run rate of inflows is much lower than in 2010

Domestic equity MFs have seen inflows for the 4th

consecutive month in march YTD, CY2011 inflows have

crossed US $1bn

FUND FLOW

03

Source: Bloomberg Source: Bloomberg



THREATS

Even as headline inflation has remained sticky around

9% core inflation has accelerated

Commodity Price Performance (%) as on 3rd may, 2011

Inflation: Higher for Longer

01

Source: BloombergSource: Bloomberg



THREATS

The most worrying part is the continuous decline in FDI

Source: Bloomberg

FDI02 Decline in FDI has been across-the-board

Source: Bloomberg

Decline in FDI (US $Bn)April - January

FY10 FY11

Services 3.9 3.0

Housing & Real Estate 2.6 1.0

Telecom 2.5 1.3

Construction 2.3 1.0

Power 1.3 1.0

Agricultural Services 1.3 0.0

Autos 1.0 1.2

Metals 0.4 1.0

Others 7.6 7.4

Total 22.9 17.1



THREATS

Growth is expected to moderate 1ppt in 2011 in EM’s

as Monetary policy tightens

Pressure on short-term yields will persist, as interest

rates bias remains upwards

Interest Rates: Upward Bias to Remain

03

Source: Bloomberg Source: Bloomberg





Defining the Landscape of Investment Advisory

Direct Broking

Mutual Funds

PMS

NDPMS

INVESTMENT

ADVISORY

o

In a market maturing with aplethora of avenues,Investment Advisory is anexclusive service available tothe more discerning and selectinvestor.

o As an “Advised account” withindividual attention to eachinvestor’s portfolio and a widerange of sophisticatedportfolio strategies, PREMIAInvestment Advisory, would

warrant an allocation in thecore portfolio for any High Networth Individual.



Investors recognize that

there maybe opportunities,

but might not have the

discipline to regularly

capture the same

The time lag betweenrecognition and execution

may be quite significant

which could lead to loss

of opportunity

Investor’s Dilemma

Investors may lack

the conviction to

act decisively and

in a meaningful

manner on any

opportunity

Investors may also not

necessarily have

accessibility to

opportunity



So when should I invest ?

o “ I‟ve found that when the market‟s going down and

you buy wisely, at some point in the future you will

be happy. You wont get there by reading.o „Now is the time to buy‟ .”

o -Peter Lynch



OUR OBJECTIVE

“New opportunities for growth can

emerge just about anywhere. Yet it

takes an Expert Eye to recognize

their true value. Finding the

growth in markets is no different.”

OBJECTIVE

IIFL PREMIA Investment Advisory

would endeavour to achieve

superior returns by investing in

an optimum mix across equities

and aim to deliver abovebenchmark returns by providing

long-term capital growth from an

actively managed portfolio.



OUR STRATEGY

STRATEGY

o Focus on Absolute

Return

o Concentrated Holdings

o Return Enhancement

through Leverage

Rebalancingo Surplus Liquidity

Management

AGGRESSIVE

BALANCED

SAFE

Portfolio Customization



IIFL PCG

Research

Quantitative &

Qualitative analysis

Fund Management

Research

Research Universe

Portfolio Advice

IIFL Institutional

Research

OUR EXPERTISE

RESEARCH

o As a privileged customer of IIFL PReMIA InvestmentAdvisory, you can leverageupon research inputs from

IIFL’s “Forbes acclaimed” worldclass research team

o Professional and In-depth, our3 tranche thematicfundamental research bringsout the brightest stock andsector ideas for your portfolio



OUR EXCLUSIVE SERVICE

IIFL PREMIA INVESTMENT ADVISORY

Customization

ExpertResearch

ClientConnect

o Open Ended scheme with no exit

load or profit sharing

o Medium to long term vision

o Increased flexibility with ability to

hedge and leverage

o Robust back-end systems

o Dedicated team of Relationship

Managers and experienced

Investment Advisors

o Focus on Absolute Returns

o Audited Reports

FlexibilityTransparency

FM Access

FEATURES



PEER COMPARISON

Broking Broker

Advice

MF PMS NDPMS Invest.

AdvisoryPortfolio

Approach

No No Yes Yes Yes Yes

Advice No Yes No No Yes Yes

Premium No No No Yes Yes Yes

Customized Yes No No No Yes Yes

Flexible Yes NA No No Yes Yes

Client

Connect

Yes Yes No No Yes Yes

Hedging Yes Yes No No No Yes

Leverage Yes Yes No No No Yes

Transparent Yes Yes No Yes Yes Yes

Ready tax

reports

No No Yes Yes Yes Yes



Corpus

(Rs Lacs)

Fixed Fee (%) Brokerage (%) Funding Cost (%)

10-25 3% 0.5%Floating rate

linked to mkt

25-50 2.5% 0.4%Floating linked to

mkt

50 and above 2% 0.3%Floating linked to

mkt

1) Fixed fee will be charged upfront

2) Brokerage for Futures will be 0.03%, cash intraday 0.03%, Options –Rs.70

3) For detailed Fee Structure please refer Schedules in Account Opening Form

4) Other statutory charges as applicable

5) Brokerage fee as charged by broker

e will be charged upfront

2) Brokerage for Futures will be 0.03%, cash intraday 0.03%, Options –Rs.70

3) For detailed Fee Structure please refer Schedules in Account Opening Form4) Other statutory charges as applicable



THANK YOU

Investment Advis Ary

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