Purpose of this presentation is not to..

Give gyaan on stock markets. Change your investment decisions and

behavior Not to teach Investment wisdom – I myself

don’t have any.

The purpose of this presentation is just to..

Throw some light on WHAT is happening in INDIA and HOW it is affecting the markets….according to me

We mostly invest like that.. When you see life insurance getting confused

with investments – term policy versus endowment..

Investments only in PF and FD Excess money is wasted in bank fixed deposits

and post office schemes The paranoia around real estate as an investment Equity investments branded as Risky SIP in MFs not understanding the nature of the

fund and the scheme Handing over money to a portfolio investor

Who is taking the benefit of the Indian Stock markets..Foreign investors Indian retail investors are absent We have been conditioned to fear the

markets We often make mistakes when…

…without discipline, we tend to invest recklessly by becoming greedy and not studying the fundamentals.

But now things are changingover past 18 months…

Reforms happening in almost every area..

Power Gas pricing Telecom Land reforms Retail Telecom bandwidth allocation Banking interest rates Food ….

We need to understand these reforms and their implications which will shape the GDP of tomorrow

Retail participation is going to grow exponentially..

Reforms…Insurance space

Reforms..medical devices

Some examples of stock movement over last 2-4 months Stock name Percent

ageReason

Atul Auto 91% Financials, Auto segment

Aurobindo 44.67% Strong pharma player

Amara Raja Batteries

22.6% Strong financials

PTC India Finance

47% Zero NPA, good vertical

Havells India 31.15% Good financials

TVS Motors 39% Good products

JK Lakshmi Cement

43.8% Strong brand

Bharat Electronics

48.25% Defense

Bharat Forge 22% Defense

Gati 27% Logistics

Axis Bank 25% Good financials

HPCL 30% Oil pricing benefit

Texmaco Rail 10% Railways

Some examples of cause and effectTrend ( Cause..) Vertical Effect

on..Comp-any stock

Reason for selection

Qty % in portfolio

More and more consumers shopping online

E-Commerce

Gati Strong logistics player

1% - 2%

Increased focus on defense spending

Military equipment

BEL, BEML

Very strong expertise

1% - 2%

Decrease in Interest rates Banking SBI Largest bank

1% - 2%

Decrease in Interest rates Housing Fin

Gruh, repco

Provide loans for small homes

1% - 2%

Decrease in cost of crude Oil HPCL Good co. 1% - 2%

Decrease in cost of crude Tyres Ceat Strong player

1% - 2%

Reduction in petrol prices Auto TVS Leader in 2 wheelers

1% - 2%

New ports, roads, bridges, highways

Cement, Infra,

JK Cement, Shree Cement

Strong presence

1%-2%

Where to Invest Investors choose verticals and not stocks Choice of a vertical depends upon how well it will do in the coming

days….. …as felt by the market.

Some examples:- Bank interest rates – ex Housing Finance Companies- Inflation – ex Auto, Farm-Crude pricing – ex Rubber, Oil companies- Govt. spending and reforms – ex Defense, Power, Gas, Railways, Insurance- Prices of raw materials – ex Rubber - New promising verticals – ex E-Commerce- New Infrastructure projects – ex Cement, Sanitary-ware, Electricals- Uniform GST – Commercial fleet manufacturers- Dollar rate – IT stocks- FDI in Insurance – Max India

Recommended tips for investment

•Invest for long term – 2 to 5 years• Restrict a stock allocation to 1% to 2% of total planned portfolio size•Never buy on hearsay •Use Moneycontrol app for news, analysis, trends and overall understanding•Be patient•Don’t churn portfolio regularly. Make changes if needed once per quarter•Buy on the days when the markets are down•Never buy more than 30% quantity of intended stock at any given time• Don’t venture into F&O and day /weekly trading

A useful tip…Follow the funds to be safe See where top funds are investing Refer www.valueresearchonline.com for very

thorough analysis of stocks and mutual funds If you would like to be a passive investor then go

for mutual funds Top MFs are providing 20% plus returns 5 years

annualized Some MFs have returned 100%+ returns over

last one yearEx : Most top midcap and small cap funds

Stock selectionIs done based on the following parameters:

- Bright prospects of the vertical- Strong reputation in market – no 1, 2 player- Good products and monopoly- Strong governance, leadership and management- Financials – Profitability, revenue growth- Mutual fund holding- Volume of trade / liquidity- Stock movement over last 12 months

To summarize…Why invest in the markets GDP movement Reforms process will be faster Infra improvement FDI Govt. spending

Which sectors/companies I avoid or have limited exposureInfrastructureReal estateAirlinesHigh debt laden PSUs Commodities Pharma – only top 2/3 companiesCompany whose name I have not heard or

business model that I do not understand or am not comfortable about.

Finally Don’t take tips from brokers Good magazine to read – Dalal Street Journal Best app – moneycontrol Good website to read – www.valueresearchonline.com Do not fall in the trap of a fast moving stock whose name you have not

heard Buy quality always Stock value takes time to move. So please be patient. Markets need to fall to rise so do not loose your sleep when they fall. Never cross 1%-2% of your total portfolio investment in one stock. Take as many stocks as you wish. Always buy small qty to start with Don’t sell if you don’t need to sell

Demo on..how to select a stock

Thank You