2. IntroductiontoBonanzaGroup
IntroductiontoPragmaticWealthManagementPvt.Ltd.
PortfolioManagementServices(PMS)
BonanzaPragmaticShariahFund(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
countrywithmorethan1632outletsspreadacross535cities.
Itprovidesanextensivesmorgasboardofservicesinequity,commodity,
currency derivative, Wealth management, Distribution of third party
productsetcs.
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
valuebasedservices.
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
Awards2010intheBestFinancialAdvisor-Retailcategory.
Pragmatic Wealth Management (PWM), is one of the pioneers in
Shariah Financial Services equipped with strong capital market experts
having technical expertiseas 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
CompliantorIslamicInvestments.
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,
returnexpectationsandrisktolerance.
We have observed that the Indian equity market offers incredible
3. 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).
Nameofthefund,Bonanza-PragmaticShariahFund
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
businessetc.
Imtiaz Merchant
`25lacs
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
willissuetheShariahCertificates.
The stocks invested in equity will be selected from Shariah compliant
companiescomprisingLarge,Midandsmallsizecompanies.Themarket
capitalization of these Shariah complaint companies is well over 55 % of
market capitalization of the NSE and BSE. The fund will be investing in
FundObjective:
FundAdvisors:
MinimumInvestment:
Sectors:
ShariahCertification:
StockSelection:
4. Islamically permissible stocks with minimum market capitalization of
1000crores.
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
theindustrymanufacturingwine,pork,tobaccoanditsrelatedproducts
etc and services sectors like Interest based banks, NBFC, Insurance,
entertainment, cinema, music etc. we all know that everyone of us is
interestedtohavehealthy,cleanandtransparentlifethatiswhyShariah
fundareforyourservices.
Looking into the need to invest in equity markets, Shariah scholars have
imposed certain restriction and stipulated conditions if these are met
thenonecaninvestinequitymarketsthepermissible(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.Stockswillbesolduponhavingitscompletepossession.
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
productscompanies.
a)Interest bearing debt of the companies should not exceed 33 percent
ofitstwelvemonthsaveragemarketcapitalization.
b)Cash plus interest bearing securities of the companies should not
exceed33percentofitstwelvemonthsaveragemarketcapitalization.
c)Trade receivable and other deb tors of the companies should not
exceed33percentofitstwelvemonthsaveragemarketcapitalization.
d)Interest Income plus any impure income of the companies to its company's
totalincomeshouldnotexceed5percent.
The profit thus derived from Shariah PMS in
needs be purified (purged) and given as charity. (We provide this value added
toourclient)
PerformanceBenchMark:
WHATISSHARIAHCOMPLAINTINVESTMENT?
1) Restriction Based on the Type of Securities:
2)Restriction on Business Activity:
3)RestrictionBasedonFinancialratios:
4)Purification of Impure Income:
5. SCOPEFORISLAMICINVESTMENTS
ImtiazMerchant–FundManager
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
worldthatoffersanexcellentinvestmentopportunityonamassivescale.
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
experienceofequitymarkets.
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
ShariahCompliantStockUniverse.
Mr. Merchant's major endeavor is to continue to develop and market the
Islamic investment products that help Shariah Compliant investors who
deservetoinvesttheirsavingsethically,efficientlyandprofitably.
Itisimpossibletoproduceasuperiorperformance,unlessyoudosomething
differentfromthemajority.
6. Plot No. M-2, Cama Industrial Estate, Walbhat Road,
Behind The Hub, Goregaon (E), Mumbai - 63.
Tel: +91-22-67605 500/600
Toll Free: 1800220252, 022-39704040
E-mail: contact@bonanzaonline.com
www.bonanzaonline.com
102, First Floor, Topaz Society, Dr. Nair Road,
Agripada, Mumbai Central (E) Mumbai 400011
Tel.: +91-22-23001290 / 23007290
E-mail: contact@islamitijara.com
www.islamitijara.com
