PORTFOLIO MANAGEMENT SERVICES

More than Management :

GROWING YOUR WEALTH.. !!

Products Performance

People

Processes

Portfolio Management Services

Opportunities Philosophy

Investment

OR

Fixed Deposits1

Trading on your Own 2

Mutual Funds3

PORTFOLIO MANAGEMENT

SERVICES

Investment Opportunities

– Pros

• Fixed returns

• Capital protection

PMS Vs other investment opportunities

– Cons

• Low returns coupled with

high tax

• No possibility of riding on

markets

Fixed Deposits

• Pros

• Complete control

over investment

PMS Vs.. Other Investment Opportunities

• Cons

• Very high time involvement

• Need for in-depth research

• Chances of not booking losses

• Over exposure to certain stocks /

ideas

• Over leveraging

• Possibility of lack of discipline on

trading

Trading on your own

Pros

• Can start of with a very low initial

investment

• Ideal for small time investors

PMS Vs.. Other Investment Opportunities

Cons

• No personalised portfolio /

investment created

• Not suitable for HNIs

• Inbuilt charges - reduce returns –

lack of transparency

• Cannot liquidate to stop the erosion in

fund value

Mutual Funds

PORTFOLIO MANAGEMENT

SERVICES..!!

Ideal Investment Platform for HNIs??

• Professional Management –

Professional and constant

management

• Hassle Free Operation –

Periodic reporting on the

overall status of the portfolio

and performance.

Why Ideal ?

• Continuous Monitoring

It is important to recognize that

portfolios need to be constantly

monitored and periodic changes

made to optimize the results.

Flexibility

Portfolio Manager has fair amount of flexibility in

terms of holding cash (can go up to 100% also

depending on the market conditions). He can

create a reasonable concentration in the investor

portfolios by investing disproportionate amounts

in favor of compelling opportunities

Why Ideal ?

• Customized Advice

It can be structured to automatically exclude

investments you may own in another account or

investments you would prefer not to own

Why Ideal ?

• Transparency

PMS provides comprehensive communications and

performance reporting. Investors will get regular

statements and updates from the firm. Web-enabled

access will ensure that client is just a click away from all

information relating to his investment.

Why Ideal ?

• Post Sales service

– Dedicated Client Servicing Team to address your queries.

– Detailed portfolio reports are available at timely basis like

• Investment Summary

• Portfolio Holding

• Transaction Statement

• Bank Book

• Realized / Unrealized Gain Loss Details

• Fees Charged Statement (Debit Note)

• Corporate Benefit (Bonus / Dividend / Right issues declared, etc.)

• Fund Manager’s Report.

PRODUCTS

Customised Service as per your

Profile

Sharekhan has two distinct strategies to offer…

PMS

ProPrime

(Fundamental)

ProTech

(Technical)

Portfolio Management Schemes

PEOPLE

MEET the MANAGERS

Over 20 years experience across Equities, Fund management, & PMS

Previous Experience:

2008-2009: Head of PMS at Asit C Mehta Investments Intermediaries Ltd (2008-2009)

2006 – 2008: Head Equity and Fund Manager for Rami Investments

1994-2006: Fund Manager for OCB, Mauritius with over Rs 40 crore of NRI funds managed

SUHAS SAMANT,

Fund Manager for Sharekhan ProPrime

Over 16 years experience in Stock Market Analysis

MMS from Mumbai University

Previous Experience:

Since 2004: Market Strategist with a team of 3 technical analysts monitoring trends across Equity and Commodity markets in India and across the world

2002: Head of the Central Research Team at Sharekhan

2001: Market Analyst at Sharekhan with Buy/Sell recommendations in Trading Products

Research Analyst at Sanwa Finance

ROHIT SHRIVASTAV, Fund Manager for Sharekhan ProTech PMS

• Over 8 years experience in the financial industry which

includes almost 3 years on the fund management side.

• Prior joining Sharekhan in 2007, he was working with Karvy

Stock Broking House as a Derivative Research Analyst.

• He is among the prominent stock market experts whose

opinions are sought after by leading media companies like

CNBC TV 18, CNBC Awaaz, NDTV Profit, Bloomberg UTV. &

ET Now

• His educational qualifications includes, bachelor of computer

application in 2003 from Bhopal University followed by MBA

in Finance from ICFAI – Hyderabad in 2005.

Mr. Abhinay Jain

Pro Tech Diversify Fund Manager

PHILOSOPHY

Our Investment Philosophy at

PMS

Based on

Fundamental Analysis

ProPrime PMS

Difficult for clients!

Judging the impact of the News for sectors & scrip's

ProPrime

PMS

Tracking the Market.

Difficult for clients!

Maintaining the news

flow & apply at proper

time.

ProPrime

PMS

Availability of basic Research .

• Basic fund management rules (Investment Philosophy, Sector Allocation, Scrip Allocation, etc.)

Difficult for clients!ProPrime

PMS

Profile the Customers

• Risk Appetite • Time duration for Investment

How it WorksProPrime

PMS

Balance risk & Descent growth

by..

• Diversifying sectors & number of

scrip's.

• Investment Philosophy is in

place.

• Allocation of maximum

percentage of scrip's.

• Stop loss in place.

• Non Leverage Portfolio.

How it WorksProPrime

PMS

Basic Allocation for Core Portfolio 60%Trading Portfolio 20% & Cash 20%

How it WorksProPrime

PMS

This results in..

• Building a long term Portfolio

• Trading activity gives movement to

the portfolio & covers the cost

How it WorksProPrime

PMS

Balance Risk and Growth

Bullish on the markets - time horizon for the investment -

3-5 yrs

Investment PhilosphyProPrime

PMS

Investing the funds and not

just allocating.

Diversification of the portfolio to reduce

the risk,

SECTORS

We are bullish on

Capital Goods,

Infrastructure, Banking,

Pharma, Ites Power,

Insurance and Retail

We are underweight

on Telecom, Realty

(outside Mumbai)

Media

Investment PhilosophyProPrime

PMS

Rather than timing the

market we buy on DIP

and book profit above

25% - 30% on SEP

(systematic exit plan)

We would like to be in

stocks with less burden

on Balance sheet and

good earning visibility

Personalised portfolio selection

and management by a

dedicated Fund Manager

Our OfferingProPrime

PMS

Our OfferingProPrime

PMS

Reporting:

Online access to Portfolio Holdings.

Our OfferingProPrime

PMS

Quarterly reporting of portfolio

holdings/transactions

Corpus:

Indian Resident - Rs 5 Lakhs

NRI - We recommend Rs.10 Lakhs as an initial Investment to ensure PIS charges pertaining to bank are Rationalised.

Fees:

2.5% per annum AMC charged every quarter @ 0.625%

0.5% brokerage

20% profit sharing after 15% hurdle is crossed-chargeable at the end of the fiscal year.

Our OfferingProPrime

PMS

* Returns are based on the clients who are in the system since Inception

Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those

returns are calculated on the basis of cash flow method at a portfolio Level

Year NAV return % age BSE return % age NSE return % age

Apr10-Feb11 -25.1% 1.7% 1.6%

FY 09-10 93.6% 80.5% 73.8%

FY 08-09 -43.0% -37.9% -36.2%

FY 07-08 15.8% 19.7% 23.9%

FY 06-07 10.8% 15.9% 12.3%

FY 05-06 75.5% 73.7% 67.1%

Since Inception 218% 271% 256%

YoY Fundamental performanceProPrime

PMS

Sharekhan

Outperforms

Benchmark

13 out of 26

Quarters

Sharekhan has

Outperformed

Benchmark

* Returns are based on the clients who are in the system since Inception

Date NAV return % age BSE return % age NSE return % age

Jan'11- Feb11 -26% -13% -13%

Oct'10-Dec'10 -9.1% 2.2% 1.7%

Jul'10-Sep'10 8.9% 13.4% 13.5%

Apr10-Jun'10 1.8% 1.0% 1.2%

Jan'10-Mar'10 2.9% 0.4% 0.9%

Oct'09-Dec'09 2.7% 2.0% 2.3%

Jul'09-Sep'09 11.0% 18.2% 18.5%

Apr'09-Jun'09 65.0% 49.3% 42.0%

Jan'09-Mar'09 -3.8% 0.6% 2.1%

Oct'08-Dec'08 -24.1% -25.0% -24.5%

Jul'08-Sep'08 -0.7% -4.5% -3.0%

Apr'08-Jun'08 -21.3% -14.0% -14.7%

Jan'08-Mar'08 -29.1% -22.9% -22.9%

Oct'07-Dec'07 23.0% 17.3% 22.2%

Jul'07-Sep'07 9.1% 18.0% 16.3%

Apr'07-Jun'07 21.6% 12.1% 13.0%

Jan'07-Mar'07 1.1% -5.2% -3.7%

Oct'06-Dec'06 7.8% 10.7% 10.5%

Jul'06-Sep'06 13.1% 17.4% 14.7%

Apr'06-Jun'06 -10.1% -5.9% -8.1%

Jan'06-Mar'06 20.5% 20.0% 20.0%

Oct'05-Dec'05 7.5% 8.8% 9.0%

Jul'05-Sep'05 29.1% 20.0% 17.1%

Apr'05-Jun'05 5.0% 10.8% 9.1%

Jan'05-Mar'05 4.0% -1.7% -2.2%

Oct'04-Dec'04 20.9% 18.3% 19.2%

QoQ Fundamental ReturnsProPrime

PMS

Long Short strategies based on

Technical Analysis

ProTech PMS

Term ‘investor’……

Redefined

REASON # 1

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

50000

x1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

1991

2003

• Today's investor does not have a holding period of > 3 Months…

• WHY?

SENSEX history of several bull and bear markets

Term ‘investor’……RedefinedProPrime

PMS

Buy and Hold strategy did not work during 90s. Again failed during 2006-2010

Need to play both sides of the market!

Term ‘investor’……RedefinedProPrime

PMS

SENSEX

Warren Buffet = Wealth;

Because = 30% CAGR up to Y2000

Focus on performance and not out performance

Absolute returns at end of year with defined risk appetite

Result = CAGR = Wealth creation.

CAGR = WealthProPrime

PMS

REASON # 1

Trading is a Discipline

Profitable trading requires certain skills

Profitable trading also demands time

Profitable trading requires both - Long & Short

Clients have been unable to do this… Because

1. Knowledge

2. Trading is often leveraged; Leading to

leveraged losses for clients

Protech works on Zero leverage. Professional

Traders. PMS does not permit leverage

Our Observation shows that

LONG SHORT STRATEGIES

ABSOLUTE RETURN STRATEGIES

Using technical analysis for

Timing the market Building products with different risk/reward/volatility

profiles

Risk

Rew

ard

Investors Need

Legally sound – SEBI regulation,

safety for clients funds in his name

Zero leverage allowed under PMS.

Full fund utility – 100% exposure +

Cash in liquid funds

No lock in period, High liquidity,

payout in 3 days

Why ProTech PMS

Transparent Fees structure

Zero AMC fees, Profit objective is

clear – C/f of losses before fees.

Why ProTech PMS

Long term Track

record

All the above offer

edge over MFs

Aim :

Absolute returns irrespective

of direction of markets

How it WorksProTech

PMS

How it WorksProTech

PMS

NiftyThrifty :

Trades long and short depending on the trend

prevalent in the markets

Using a mathematical model with no human

intervention. Model back- tested for 30 years to give

excellent prediction of market direction

While trades in Nifty futures, it is a

non-leveraged product

Absolute

Our Offerings: Nifty Thrifty ProTech

PMS

Nifty futures bought and sold on the basis of an automated trading system generated calls

Excellent track record

on back-testing and

even in live performance

Knowledge of technical analysis and power of derivatives to identify trading opportunity in the market

PhilosphyProTech

PMS

Long Short Strategies

Focus on absolute returns

ProTech PMS

79 81 83 85 87 89 91 93 95 96 97 98 99 00 01 02 03 04 05 06 07 08 010

5000

1000015000

x10000

Rs. 1,000 invested in 1979

would be 6,40,81,524 today –

if profits were reinvested.

The rising green line shows

the rising value of a portfolio

in a straight line during

several bull and bear markets.

This is what we call

Linearity Of Returns.

Nifty Thrifty NAV Movement

Nifty Thrifty

Sensex

Nifty Thrifty vs Sensex Movement

*Tested on historical performance on Sensex [CY] Model has consistently performed over 30 years

Date % Sensex System Date % Sensex System

1979 ------ ------ 1995 -21% 34%

1980 25% 25% 1996 -1% 33%

1981 54% 25% 1997 19% 55%

1982 4% 22% 1998 -16% 62%

1983 7% 26% 1999 64% -1%

1984 7% 8% 2000 -21% 87%

1985 94% 127% 2001 -18% 67%

1986 -1% 42% 2002 4% 14%

1987 -16% 34% 2003 73% 63%

1988 51% 44% 2004 13% 41%

1989 17% 7% 2005 42% 44%

1990 35% 76% 2006 47% 38%

1991 82% 17% 2007 47% 13%

1992 37% 261% 2008 -52% 83%

1993 28% 81% 2009 81% 33%

1994 17% 54% 2010 17% 12%

Historical PerformanceProTech

PMS

* Returns are based on the clients who are in the system since Inception

Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those

returns are calculated on the basis of cash flow method at a portfolio Level

Year on Year returnsProPrime

PMS

Year NAV return % age BSE return % age NSE return % age

Apr'10-Feb'11 8.6% 1.7% 1.6%

FY 09-10 14.7% 80.5% 73.8%

FY 08-09 28.6% -37.9% -36.2%

FY 07-08 9.6% 19.7% 23.9%

FY 06-07 10.8% 15.9% 12.3%

• Out of 20 quarters

of performance, 14

quarters have given

positive returns

•Peak return in a

quarter has been

33% whereas lowest

return has been -

11%

* Returns are based on the clients who are in the system since Inception

Date NAV return % age BSE return % age NSE return % age

Jan'11 - Feb11 4.49% -13% -13%

Oct'10-Dec'10 5.06% 2.19% 1.73%

Jul'10-Sep'10 -1.45% 13.38% 13.50%

Apr10-Jun'10 0.40% 0.99% 1.21%

Jan'10-Mar'10 1.83% 0.36% 0.92%

Oct'09-Dec'09 -6.21% 1.97% 2.30%

Jul'09-Sep'09 -9.92% 18.17% 18.48%

Apr'09-Jun'09 33.28% 49.29% 42.04%

Jan'09-Mar'09 -8.45% 0.63% 2.09%

Oct'08-Dec'08 16.21% -24.98% -24.53%

Jul'08-Sep'08 6.53% -4.47% -2.95%

Apr'08-Jun'08 13.46% -13.95% -14.66%

Jan'08-Mar'08 18.68% -22.88% -22.87%

Oct'07-Dec'07 -11.75% 17.33% 22.25%

Jul'07-Sep'07 9.24% 18.02% 16.28%

Apr'07-Jun'07 -4.18% 12.07% 13.00%

Jan'07-Mar'07 1.83% -5.18% -3.65%

Oct'06-Dec'06 5.47% 10.70% 10.53%

Jul'06-Sep'06 2.87% 17.39% 14.71%

Apr'06-Jun'06 0.28% -5.95% -8.06%

Quarter on Quarter returnsProPrime

PMS

DateNifty Thrifty

NAV

Equivalent

Sensex NAV

Equivalent

Nifty NAV

Nifty Thrifty

NAV

Equivalent

Sensex NAV

Equivalent

Nifty NAV

Nifty Thrifty

NAV

Equivalent

Sensex NAV

Equivalent

Nifty NAV

1st April'06 1,000,000 1,000,000 1,000,000

1st April'07 1,108,002 1,158,878 1,123,143 1,000,000 1,000,000 1,000,000

1st April'08 1,214,758 1,386,923 1,391,456 1,096,350 1,196,781 1,238,895 1,000,000 1,000,000 1,000,000

1st April'09 1,562,091 860,686 887,849 1,409,826 742,689 790,504 1,285,927 620,572 638,072

1st April'10 1,791,219 1,553,886 1,542,696 1,616,621 1,340,853 1,373,553 1,474,548 1,120,383 1,108,692

31st Dec'10 1,862,017 1,818,188 1,802,913 1,680,518 1,568,921 1,605,239 1,532,830 1,310,951 1,295,702

Nifty Thrifty Comparative performance viz-a-viz Sensex/ NiftyRs 10 lakhs invested in 2006-07 Rs 10 lakhs invested in 2007-08 Rs 10 lakhs invested in 2008-09

DateNifty Thrifty

NAV

Equivalent

Sensex NAV

Equivalent

Nifty NAV

Nifty Thrifty

NAV

Equivalent

Sensex NAV

Equivalent

Nifty NAV

1st April'06

1st April'07

1st April'08

1st April'09 1,000,000 1,000,000 1,000,000

1st April'10 1,146,681 1,805,405 1,737,566 1,000,000 1,000,000 1,000,000

31st Dec'10 1,192,003 2,112,488 2,030,653 1,039,525 1,170,091 1,168,677

Nifty Thrifty Tool ProTech

PMS

Investors looking for returns from

short term momentum trading

opportunities in the market.

Investors looking at a higher

return than fixed income securities

or deposits, with regular payouts

from profits every-time NAV

grows more than 3%

Trailing Stops Investment PhilosophyProPrime

PMS

Above average returns but not high risk trades. Risk per trade is 2-3%

1:2 risk reward ratio. Risk managed with the use of trailing stop losses on an intraday basis.

Treasury income from idle cash.

Trailing Stops Investment PhilosophyProPrime

PMS

Will trade on the long and short side of the market

Will trade in liquid stocks and mostly in stock and index futures listed on the F&O market

Exposure will not exceed value of the portfolio i.e. there will be no leverage

Exposure per trade will be max 15% of portfolio

Maximum drawdown not to exceed 20% intra year.

Trailing Stops Investment PhilosophyProTech

PMS

Moderate Risk – High Return product

ProTech – DiversifiedTrading shorter term with long term approach

“To generates absolute Return

consistently through disciplined

trading in a balanced diversified

portfolio with calculative risk.”

AimProTech

Diversified

Linearity of returns: Hedge against volatility.

Protecting capital in non-trending phase.

Key FeaturesProTech

Diversified

Ability to outperformed the benchmark on long-term basis.

Natural hedge to the portfolio as it can generate return in

downward market as well.

Profit payout on regular basis.

Balanced diversified portfolio with

exposure across sectors.

Disciplined trading approach with no human intervention.

Incorporated money management techniques that seek to control losses and protect profits.

Key FeaturesProTech

Diversified

Rationale for buffer

Will be utilised in case of draw down

Mark-to-market

Basis for stock selection

Liquidity

Sector coverage

Individual risk-returns

Nifty

32%

Stocks

35%

Banknifty

18%

Buffer

15%

* - Distribution may change basis lot size

Portfolio Composition & AllocationProTech

Diversified

0

200

400

600

800

1000

1200

2-Jan

-06

2-Apr-0

6

2-Ju

l-06

2-O

ct-06

2-Jan

-07

2-Apr-0

7

2-Ju

l-07

2-O

ct-07

2-Jan

-08

2-Apr-0

8

2-Ju

l-08

2-O

ct-08

2-Jan

-09

2-Apr-0

9

2-Ju

l-09

2-O

ct-09

2-Jan

-10

2-Apr-1

0

2-Ju

l-10

2-O

ct-10

ProTech Diversified

•System is tested from 1 Jan 2006 to 31 Dec 2010

•Returns are pre-cost

Year

System

Returns

Nifty

Returns

2006 42% 40%

2007 45% 55%

2008 55% -52%

2009 49% 72%

2010 17% 18%

Results of our back testing - AnnualProTech

Diversified

Returns are pre-cost

Quarter Nifty Diversified

31-Mar-06 20% 8%

30-Jun-06 -8% 15%

29-Sep-06 15% 14%

29-Dec-06 11% 7%

30-Mar-07 -4% 2%

29-Jun-07 13% 9%

28-Sep-07 16% 11%

31-Dec-07 22% 10%

Quarter Nifty Diversified

31-Mar-08 -23% 12%

30-Jun-08 -15% 21%

30-Sep-08 -3% 1%

31-Dec-08 -25% 27%

31-Mar-09 2% 10%

30-Jun-09 42% 44%

30-Sep-09 18% 8%

31-Dec-09 2% 1%

Quarter Nifty Diversified

31-Mar-10 1% 7%

30-Jun-10 1% 1%

30-Sep-10 14% 8%

31-Dec-10 2% 1%

Results of our back testing - AnnualProTech

Diversified

Volatility contraction.

Basis Slippage.

No clear trend.

2010 good for Absolute Return Products?ProTech

Diversified

Changes already made:

Replaced RNRL with REC Ltd.

Replaced HDIL with

JP-associate.

Increased stock exposure

from 3% to 3.5%.

Steps taken :ProTech

Diversified

Changes under consideration:

Increasing the stock exposure

further.

Introducing high beta stocks in

place of low beta stocks.

Increasing Bank nifty exposure.

Diversified Vs Nifty

-50%

0%

50%

100%

150%

200%

250%F

-06

J-0

6

O-0

6

F-0

7

J-0

7

O-0

7

F-0

8

J-0

8

O-0

8

F-0

9

J-0

9

O-0

9

F-1

0

J-1

0

O-1

0

Percentage return

Tim

e

NiftyDiversified

ProTech Diversified Vs NiftyProTech

Diversified

Non Toggle system

Not always invested – Will stay out during sideways market to reduce drawdown risk

Constant Risk Exposure

Exposure to investments will be constant even after gains

Helps in protecting the gains

Buffer Reinvesting in case of

draw-downs helps in faster

recovery.

Uniqueness of this productProTech

Diversified

Client will be given 50% of profits

on quarterly basis

Non – leveraged product

* Returns are based on the clients who are in the system since Inception

Disclosure: Returns shown above would be different from the returns

mentioned in Risk Disclosure form as those returns are calculated on the

basis of cash flow method at a portfolio Level

Date NAV return % age BSE return % age NSE return % age

Jan'11 - Feb'11 5.96% -13.10% -13.06%

Oct'10-Dec'10 1.77% 2.19% 1.73%

Jul'10-Sep'10 6.3% 13.4% 13.5%

Apr10-Jun'10 -1.4% 0.1% 0.4%

Since Inception 11.05% 3.59% 4.07%

QoQ ProTech Diversified ReturnsProTech

Diversified

Minimum Investment:

Indian Resident Rs 5 lakhs,

Our OfferingsProTech

PMS

Fees

AMC fees : 0%

Brokerage : 0.05% only

Profit Sharing :20% profit sharing on

booked profits on

quarterly basis

PROCESS

Details of How PMS Works..

TAXATION

Adjusting profits:

Profits are adjusted against the

expenses borne for maintaining

the PMS A/c which is available

in the ledger

Computation of TaxProPrime

PMS

Other charges:

Profit Sharing, Brokerage charges & any other charges are to be treated as expenses borne for the PMS A/c.

Short Term Capital Gains are charged at 33% on realised gains

Other charges: Profit Sharing, Brokerage charges & any other charges are to be treated as expenses borne for the PMS A/c

Computation of TaxProTech

PMS

Free your time & have fun

– Invest in Sharekhan PMS

Thank You