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Advice For The Wise - August'2011
 

Advice For The Wise - August'2011

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The turm oil in financial markets across the globe caused by the rating downgrade of US Government debt by S&P will continue to haunt the Indian markets also for quite sometime to come.

The turm oil in financial markets across the globe caused by the rating downgrade of US Government debt by S&P will continue to haunt the Indian markets also for quite sometime to come.

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    Advice For The Wise - August'2011 Advice For The Wise - August'2011 Presentation Transcript

    • ADVICE for the WISE Newsletter –August’11 1
    • ContentsIndex Page No.Economic Update 4Equity Outlook 8Debt Outlook 12Forex 14Commodities 15Real Estate 16 2
    • From the Desk of the CIO… Dear Investor, The turmoil in financial markets across the globe caused by the Unnoticed through the global activity has been the subtle but rating downgrade of US Government debt by S&P will continue to definitive improvement in the determination of the present haunt the Indian markets also for quite some time to come. While government to revitalize the reforms process. While the there have been several heated exchanges between S&P and US worries on fiscal deficit and current account deficit still treasury over the accuracy of credit analysis done by S&P, we remain, the recessionary worries in the rest of the world may believe that the ratings downgrade is in line with politico- bring about a welcome relief in commodities prices globally economic realities in the US – especially a dysfunctional polity and hence a downward pressure on inflation in India as well. which has led to the recently witnessed brinkmanship regarding This will auger well for the debt markets directly as RBI may raising the US debt ceiling. On the other hand, we certainly do not then pause the interest rate hikes after maybe another 25 bps view this development as a sharp increase in the likelihood of increase. Also for the equity markets this may come as a good default by the US government. news – indirectly through an expectation of future reduction in interest costs and directly through reduction in commodity- During the next few weeks we will watch the real effect of the linked input costs. Hence we maintain out positive medium ratings downgrade percolate into the debt markets globally – term outlook for Indian equities. We have also become primarily through the actions of US treasury debt investors. On the neutral on long term debt owing to the above. real economy the impact will be felt through the subdued consumption and investment sentiment definitely in the US and We have suggested specific strategies based on Nifty and Gold potentially in the rest of the world as well. The financial markets’ to play on the US debt crisis and specific single stocks in retail participants on the other hand will essentially be trying to second guess these effects and also each other in terms of the reaction to and mining sector along with Nifty short to play on the hoped-for reforms in the monsoon session in the parliament. this development. That points in two broad directions. Flight to These are opportunistic bets on special situations which we safety and dumping of risky assets. Both of these may translate hope will help build our clients wealth through these into the global investors reducing their exposures to emerging turbulent times. markets significantly – at least in the near future. Hence our outlook on Indian equity markets is very cautious in the near term.“Advisory services are provided through Karvy Stock Broking Ltd. (PMS) having SEBI Registration No: INP000001512. Investments are subject to market risks. Please read the disclaimer on slide no.21” 3
    • Economic Update - Snapshot of Key Markets 130 As on 31st Change over Change over 125 Sensex Nifty S&P 500 Nikkei 225 120 July 2011 last month last year 115 110 105 BSE Sensex 18197 (3.4%) 1.8% 100 95 90 Equity S&P Nifty 5482 (2.9%) 2.1% 85 80 markets S&P 500 (2.1%) 17.3% 1292 Nikkei 225 9833 0.2% 3.1% 8.80 8.30 10 yr Gsec 7.80 7.30 6.80 10-yr G-Sec Yield 8.45% 13 bps 65 bpsDebt Markets Call Markets 7.65% (10 bps) 275 bps Fixed Deposit* 9.25% 100 bps 325 bps 24000 23000 22000 21000 20000 19000 18000 RICI Index 4034 2.3% 26.7% 17000 Gold 16000 Commodity 15000 Gold (`/10gm) 23211 5.8% 30.6% markets Crude Oil ($/bbl) 116 3.8% 53.5% 48.00 47.00 46.00 `/$ 45.00 44.00 Forex Rupee/Dollar 44.15 1.3% 5.2% 43.00 42.00 30-Aug-10 31-Dec-10 31-Oct-10 30-Nov-10 30-Jul-10 31-May-11 31-Jul-11 30-Sep-10 28-Feb-11 31-Mar-11 31-Jan-11 30-Jun-11 30-Apr-11 markets Yen/Dollar 77.82 4.1% 11.1%* Indicates SBI one-year FD 4
    • Economy Update - Global • The Conference Board Consumer Confidence Index, which had declined in June to revised 57.6, improved slightly in July to 59.5 because the short term outlook US on jobs & income eased amid a mix of optimistic and bad economic news in US. • The m-o-m unemployment rate declined to 9.1 per cent in July 11. • Euro-zone PMI fell to 51.1 in July from 53.8 in June 11. The slowing was due to near stagnation of inflows of new business & output growth. Europe • Unemployment rate in the Euro zone remained unchanged in June‘11 at 9.9%. • The Japan Manufacturing Purchasing Managers Index (PMI) increased to 52.1 in July from 50.7 in June, mainly due to renewed new order growth & easing supply Japan side pressures. • Japan’s unemployment rate fell to 4.6% in June ’11 from 4.5% in May ’11 • The HSBC China Manufacturing Purchasing Managers Index is down at 49.3 in July from 50.1 in June as total new order growth eased to near-stagnation amid Emerging reports of lacklustre global demand.economies • The retail sales was up by 17.9 percent year-on-year basis in July. 5
    • Economy Outlook - Domestic IIP monthly data16.0%14.0% • The GDP growth rate for Q4 FY11 came in at 7.8% the12.0% lowest in the year while the Q1 estimates for Q1 and Q310.0% were revised upwards to 9.3 (from 8.9) and 8.3 (from an 8.0% earlier 8.2) respectively. The economic growth for the year, 6.0% 4.0% is 8.5% for 2010-’11 backed by improved farm output and 2.0% growth in the services sector. 0.0% Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11Mar 11 Apr 11 May 11 • The slowdown in the rate of growth in the last quarter was due to poor performance of the manufacturing sector • Industrial output as measured by the Index of Industrial which grew at 5.5% v/s the 15.2% growth last year. A Production (IIP) decreased to a nine month low of 5.6% slowdown was also seen in the mining, trade and hotels in May from a downward revised number of 5.8% (y-o-y) while services, including banking and insurance witnessed in April. This data was according to the new base year growth in the last quarter. (2004/05), new components and weightings. • The next year growth target is 8% which we believe is • During the month, while manufacturing registered 5.6% achievable. growth, mining grew at 1.4%, reflecting a delay in environmental clearances and transportation bottlenecks. The electricity sector grew at a robust 10.3%. Capital goods grew at 5.9% while Consumer goods were up 5.4%. Of the 22 industry groups in the 10.0 GDP growth manufacturing sector, 14 witnessed a positive growth. 9.0 8.0 • The IIP figures have been very volatile in the last year. 7.0 We believe that monthly indicators and IIP in isolation 6.0 may not a very efficient way of indicating long term 5.0 growth. We expect the growth to eventually moderate 4.0 out though high input costs may also be a dampener for FY10 (Q1) FY10(Q2) FY10(Q3) FY10(Q4) FY11(Q1) FY11(Q2) FY11(Q3) FY11(Q4) manufacturing. 6
    • Economic Outlook - Domestic Growth in credit & deposits of SCBs • Inflation as measured by WPI increased to30.0% Bank Credit Aggregate Deposits 9.44% in June from 9.06% (y-o-y) for the month of May 11. The number for April was revised25.0% upwards to 9.74% from an earlier estimate of20.0% 8.66%. The increase was driven by higher fuel15.0% costs and manufactured goods prices which increased to 12.85 (v/s 12.32% in May) and10.0% 7.43% (v/s 7.27 in May) respectively.5.0% Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 • We do expect WPI inflation numbers to • Bank credit growth rose to 21.9 percent in June* moderate out eventually due to the monetary from 21.8 percent in the month of May while tightening stance by RBI, but below normal Deposits grew by 20.4 percent compared to 16.6 monsoons and increasing fuel prices may be a percent in May 2011. cause of worry. 11.0% • Even though the interest rates have been increased Wholesale Price Index drastically over the last one year, we have seen a 10.0% high credit demand. Banks have also increased their 9.0% deposit rates and the current rate hike of 50 bps may 8.0% push the deposits rate even higher but with the 7.0% increased cost of borrowing, we may see some moderation in the credit offtake in the coming 6.0% Jun-10 Oct-10 Jan-11 Mar-11 Jun-11 May-11 Jul-10 Aug-10 Sep-10 Feb-11 Apr-11 Nov-10 Dec-10 months. If the macro factors like inflation persist, we may see further hike in the interest rates in the year.* End of period figures 7
    • Equity OutlookStock markets across the world saw a big correction due to the downgrade of US debt rating by S&P. S&P expressed concern about thelong term sustainability of US debt and the political wrangling during the debt limit enhancement negotiations ahead of next year’spresidential election. This downgrade might increase borrowing costs for the businesses further slowing down macroeconomic activity.Growth continues to weaken in US with Q2 GDP number coming in at 1.3%, 70bps below consensus expectations. The deficit reductionprogram will make any significant fiscal stimulus measure almost impossible. Monetary policy might play a more prominent role in thenear term.European central bank officials have indicated that they will continue to buy sovereign bonds of Peripheral Eurozone countries whichcould help stabilize the debt markets. The fiscal situation of PIIGS countries continues to be fragile and it would require constant supportfrom the European central bank in the short to medium term.In July, RBI surprised by a more than expected hike of 50 bps in repo rate and expressed concern about inflation remaining stubbornlyabove expectations. RBI has increased the interest rates by 1.25% in last three months. We believe that there could be downside risks togrowth if infrastructure and manufacturing activity slows down further. We would look at a GDP growth forecast of 7.5-8% for FY12 witha downward bias if the capex story does not revive in the second half.Back home, the government finally seems to be taking some steps to revive the reform agenda. Increase in administered fuel prices,clearing of Cairn-Vedanta &Reliance-BP deals and drafting of land acquisition bill are steps in that direction. Q1FY12 results so far havebeen mostly inline with expectations. As expected, Private sector banks have led the earnings and we maintain our positive view on thesame. The S&P downgrade and concerns on global growth might lead to interest rates peaking out earlier than expected. If the correction incrude continues, it would also help in peaking out of inflationary expectations. Markets are trading at a very reasonable valuation of 13times FY12 earnings. However, in the immediate short term, Indian markets have also been impacted by the global volatility and wewould advise a cautious stance. 8
    • Sector Outlook Sector Stance Remarks We believe in a large sized opportunity presented by Pharma sector in India. India’s strength in generics is difficult to replicate due to quality and quantity of available skilled manpower. With the developedHealthcare Overweight world keen to cut healthcare costs, and a vast pipeline of drugs going off-patent, Indian pharma players are at the cusp of rapid growth. We would bet on the opportunity in Generics and CRAMS space We prefer “discretionary consumption” beneficiaries such as Cigarettes and branded garments, as theFMCG Overweight growth in this segment will be disproportionately higher vis-à-vis the increase in disposable incomes. Financial sector is undeniably the lubricant for economic growth. Whether the growth comes from consumption or investments, credit growth is inevitable. Being a well regulated sector, BFSI in India hasBFSI Neutral good asset quality and capital adequacy ratios. Despite the increasing in interest rates, we believe banks will be able to pass on higher cost of funds to clients as demand remains strong Demand outlook remains robust with strong earnings growth despite raw material price hikes andAutomobiles Neutral raging competition. We are more bullish on commercial vehicle and agricultural vehicles segment due to lesser competition and higher pricing power. The USD 1 trillion Infra opportunity is hard to ignore. We believe Power sector to be a better play over other sub sectors such as ports, roads and telecom infrastructure, because of favorable economicsE&C Neutral under PPP model. Within power, we like the engineering companies over utilities, T&D and other infrastructure owners because of their superior profitability and better competitive dynamics. 9
    • Sector Outlook Sector Stance Remarks IT space might come under pressure due to continued concerns about growth in developed partsIT/ITES Underweight of the world. While US and European customers of Indian IT companies are in good health, Order inflows might slow down in near term. Commodity prices are coming under pressure due to concerns about growth in developed partsMetals Underweight of the world. Hence a cautious stance is recommended The regulatory cap on RoE does not allow a vast value creation opportunity in the infrastructureEnergy Underweight owning companies. We would stay away from oil PSUs, due to issues of cross subsidization distorting the underlying economics of oil exploration and refinery businesses. The regulatory hurdles, competitive pressures and leverage prevent any return to high profitabilityTelecom Underweight levels in the short to medium term. The huge capex incurred in the rollout of 3G services will put further stress on the already stretched balance sheets. Remain cautious on Sector’s prospects. Cement demand will certainly grow over the next three years. But the issue is on the supply side.Cement Underweight We do see an oversupply situation for the next 3-4 quarters. We like the growth prospects of power sector but believe that value will be created byPower Utilities Underweight engineering services providers. Merchant power rates have been sliding downwards and coal prices have been on the way up putting pressure on return ratios. 10
    • Mutual Funds in Focus 1. Reliance Pharma Fund - With spells of volatility in the current markets, Pharma seems a safer bet for the medium term. The fund manager has displayed good stock selection skills consistently outperforming the benchmark, following active management style with a bias towards midcap stocks. 2. Reliance Banking Fund - We remain bullish on the banking sector in the long term and Reliance Banking has been one of the top picks in the sector. Focused mainly on large cap banking stocks, this fund has been a consistent performer with superior management. 3. Reliance MIP – This fund invests in a combination of debt and equity with the maximum exposure to equity capped at 30%. In the current volatility, we recommend this fund to add stability to the portfolio owing to higher debt exposure. The fund management has been superior both in the debt and equity part. Date of 1 year return 3 year return Since Inception AUM (Cr.) InceptionSector / ThematicReliance Banking 7.4% 30.2% 32.7% 1770 28/05/2003Reliance Pharma 13.2% 37.5% 28.2% 583 8/6/2004MIPReliance MIP 5.5% 15.2% 15.2% 7,565 13/01/2004 11
    • Debt Outlook 8.8 Yield curve 8.7 8.6 • After the unexpected 50bps hike, the 8.5 benchmark 10 yr G-sec yield increased from 8.4 8.33% in June’11 to 8.45% in July ‘11.(%) 8.3 8.2 • With no respite from the high inflation in spite 8.3 0.0 0.9 1.9 2.8 3.7 4.6 5.5 6.5 7.4 9.2 10.1 11.1 12.0 12.9 13.8 14.7 15.7 16.6 17.5 18.4 19.4 of monetary tightening, we expect another 25 - 50 bps hike in the year. • With inflationary pressure being high and a 50 bps increase in the policy rate, the shorter term yields rallied in the month, though due to partial factoring in of the hike and relatively increased 8.60 10-yr G-sec yield 8.40 liquidity, the increase was not very significant. 8.20 Corporate bond yields which had rallied 8.00 significantly on good investment demand prior to 7.80 7.60 the policy, hardened across the curve tracking 7.40 the 50 bps hike announced in the Repo rate. 7.20 7.00 • We expect yields across the yield curve to remain 6.80 at elevated levels. High inflation, monetary tightening and rising credit growth will keep the yields at the longer end range bound. 12
    • Debt Strategy Category Outlook Details We recommend investment into short term bond funds with a 6-12 month investment horizon as we expect them toShort Tenure deliver superior returns due to high YTM. We have seen the Debt short term yields harden due to reduced liquidity and consecutive rate hikes prompted by inflationary pressures. Till these factors do not stabilize, we see Short term bond funds and FMPs as an interesting investment option. Some AA and select A rated securities are very attractive at the current yields. A similar trend can be seen in the Fixed Credit Deposits also. Tight liquidity in the system has also contributed to widening of the spreads making entry at current levels attractive. With tight liquidity and inflationary pressure being high, we expect more rate hikes in the current year. But, if the crude Long Tenure prices do come down significantly bringing down the inflation, we may see an early peaking of interest rates making long term Debt debt an attractive investment option. But, this would be more evident in the coming few days. We hence change our stance from negative to neutral. 13
    • ForexRupee movement vis-à-vis other currencies (M-o-M) Trade balance and export-import data 80 0 60 Export Import Trade Balance (mn $) 3.0% -5000 40 -10000 20 2.0% 0 -15000 -20 -20000 1.0% 0.0% USD GBP EURO YEN-1.0% • Exports for the month of May increased by 46.45% (y-o-y) while imports increased by 42.46% over last year. The-2.0% trade deficit decreased to USD 7.7 bn.-3.0% 140000 Capital Account Balance-4.0% 90000 40000• The Rupee appreciated against USD & Euro and depreciated against the British pound and Yen. -10000 FY 10 (Q1) FY 10 (Q2) FY 10 (Q3) FY 10 (Q4) FY 11 (Q1) FY 11 (Q2) FY 11 (Q3) FY 11 (Q4)• Concerns over renewed sovereign debt crisis & Greek rescue package Debt crisis in the Eurozone dragged the Euro down • Capital account balance was positive throughout FY11 and while a potential default in U.S. dragged down the Dollar. stands at `273133 Cr. for the fiscal while it was 37,298 Cr. for Q4.• Sterling appreciated against Euro due to renewed worries • We expect the capital account balance to remain positive about euro zone debt and the risks of contagion to countries as higher interest rates would make investment in the like Spain and Italy Indian markets attractive hence drawing investments into the market. 14
    • Commodities 24000 The recent downgrade by US credit rating to AA+ by S&P has 23000 Gold triggered a bout of selling across all major asset classes barring 22000 21000 precious metals. Gold Futures in the COMEX has climbed to a 20000 record $1700 an ounce following investors rush to the safer 19000Precious 18000 haven. As commodities are likely to correct following global 17000 Metals fund liquidation, any dips in gold prices should be bought. 16000 15000 Coupled with the domino effect on global stock markets mayhem, gold is entering into a seasonally strong fourth quarter and gold can only go up. We continue to maintain our year-end target of $1780 an ounce. 130.0 Crude The recent bout of global uncertainty have pressurized crude 120.0 oil amid concern of double dip recession in the US and global 110.0 economy slipping into red. We expect crude oil prices have 100.0Oil & Gas topped out in the interim and can only move down from here 90.0 on. Although, the middle east will be hit by the falling dollar 80.0 70.0 income and might try to limit their production in order to 60.0 support prices, we believe any such temporary uptick shall not Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul be sustained. This is obviously a positive news for the 10 10 10 10 10 10 11 11 11 11 11 11 11 emerging markets. Expect crude oil to remain under pressure. 15
    • Real Estate Outlook - IAsset Classes Tier-1* Tier-II** Sales are under pressure as usual, Q2 & Q3 of 2011 The demand is keeping the Tier II cities afloat, the would clear clouds on possible correction in this infrastructure development in these cities have sector. Lot of developers launching new projects made the residential development spread across the since the existing ones have hit roadblocks due to city limits. On an average price is still affordable. Key high prices. The loading on actual usable area has development developer are seeing demand of 3BHK seen a sharp rise in Mumbai, Bangalore & Pune, and luxury development but are only doing well if from an average 20% to 35%, this is another way to the project size is limited to 100-150 units. The Residential hedge the realty prices. Investors seem to be trend seems to be favorable since there is lot of interested in under development, pre-launched demand comes from smaller cities closer to these projects which clearly give them appreciation Tier-II & III cities without any possible speculation. RBI credit rate increase with tightening of construction finance to developer is only increasing pressure on developers. Still in the shadows of over-supply and cautious Commercial segment not that significant, but unlike expansion approach by corporate, this segment Tier-I the price differentiation is double favoring has gone through correction. Rates per sqft have commercial since most of them are in CBD areas. seen almost 30% down-trend and will be stagnantCommercial/IT for the coming 2-3 quarters. Surely, the segment is at the down-tip of the cycle, and is the best opportunity for companies looking for long term holding of real estate office space. 16
    • Real Estate Outlook - II Asset Classes Tier-1* Tier-II** The FDI allowance is given lot of impetus to this Retail is slow in these markets; unorganized markets sector, its been now almost 3 years since retail has are still a hot choice. Most high-street locations are seen a major transformation on all its business expensive to own thus have a high lease rental and aspects and have been built to suit Indian way for have witnesses heavy churn. Investment would consumerism. Low cost, high reach, heavy variety, always have capital protected due to dearth of less innovation, existence with competition, available space. Retail maximizing bottom line than top-line approach have been making the retailers smarter. Revenue share model with a built in MG is how the deals are done Most interesting times, traded now more as Still available cheaper, plotted development is a hit commodity, very fastly getting absorbed, locked. since the trend of standalone homes are prevalent. Non-real estate sector see immense opportunity Land since it can be used as tangible and most credible pledge against business*Tier I markets include Mumbai, Delhi & NCR, Bangalore, Pune, Chennai, Hyderabad and Kolkatta**Tier II markets includes all state capitals other than the Tier I marketsThe outlook is updated on a quarterly basis 17
    • Javdekars (Pune) NCD’s at 18%-Series IVOverview Attractiveness• An unlisted secured NCD issue with a fixed coupon of 18% per • The cash flow schedule is very attractive driven by interest annum. NCD is a debt instrument used to raise short-term inflows and principal repayment starting early. A good loans from HNIs. The funds raised through this issue will be proportion of the total return is realized over the tenure of the utilized by the developer for aggregating the land for an product through regular monthly payouts starting from the upcoming residential project in Tathawade in Pune. second month itself. This considerably reduces the risk to total returns for investors.Product Features • The debentures are secured with a security cover of at least• Issue Size – `5Cr two times the outstanding debenture amount. Both the• Tenure – 24 months extendable by 6 months principal and the interest are securitized and hence the default• Denominations: ` 10,00,000, `15,00,000 and ` 25,00,000 risk is negligible.• Fee Structure – • The IRR for this structure stands at 19.5%. This can give a considerable boost to the overall returns of one’s fixed income Investment < 25L Investment > 25L portfolio. 2.5% Upfront (1.5% Setup, 2.0% Upfront (1.0% Setup, • This product is a good bet on the high interest rates prevalent 0.5% p.a. Management fee) 0.5% p.a. Management fee) in India now. The investors can lock in high yields which are• Guaranteed Coupon – 18% p.a. not likely to increase much further.• Frequency of Interest – Monthly• Principal repayment – 4 equal quarterly installments 18
    • BSLI FORESIGHTBSLI Foresight is a first of its kind Type II unit linked insurance plan that provides an option to enhance the investment returns byapplying the concept of “Best Day Possible” – for both the investments as well as locking of gains.•Foresight is 5 pay 10 year unit linked plan offering 10 different funds under self managed plan .•Exclusive Foresight fund is offered under guaranteed option. It is 2nd generation fund of the Platinum fund series.•The investor in foresight fund would benefit from the steep fall in the market and not merely by capital protection of Rs 10 NAV.•It also offers the highest Net Invested Premium value achieved during the first 7 policy years.•On death of life assured Fund Value and the Sum Assured is paid to dependants.•Lower costs and good fund management: The lower costs associated with the product backed up by strong fund managementmake this an ideal investment option when compared with its peers.•Fund Performance: A snapshot of the fund performances of funds having a similar mandate are as follows: FUND PERFORMANCE AS ON 31st MARCH 2011 2 Since Category Fund name 1 year 3 years years Inception Foresight ** Platinum Plus I 12.2% 32.3% 5.6% 7.0% Platinum Plus II 13.7% 39.2% ** 24.3% Highest NAV Platinum Plus III 12.3% ** ** 16.2% Platinum Plus IV 14.6% ** ** 12.1% Platinum Premier 12.1% ** ** 14.7% 19
    • Why Karvy Private Wealth? Open Architecture – Widest array of products We are an open-architecture firm at two levels – asset class level and product level : • Offering COMPREHENSIVE choice of investing across all asset classes • Offering EXTENSIVE choice of multiple products from different product providers under each asset class Intensive Research We closely track the historical performance across asset classes, sub-asset classes and product providers to identify, evaluate and recommend investment products (KPW’s or third-party). We have our own proprietary methodology for evaluating products; for product providers, we also note the investment style and risk management philosophy. Our comprehensive analysis determines truly exceptional performers to be added to your portfolio Honest, unbiased adviseGroup-wide, we have no Mutual Fund or Insurance products of our own unlike most of the financial services groups (banks orbroking houses), who are doing wealth management. Neither do we have exclusive tie-up with any single insurance company likeall banks do. The KPW 3-S Service promise: When you become a Client of KPW, besides getting intelligent & practicable Investment Advice, you get the benefit of “The KPW 3- S Service Promise” : • Smooth and Hassle Free – Attention, Service & Convenience • Sharp and proactive – Portfolio monitoring and tracking • Smart –Incisive insights on markets and Investment products Pedigreed Senior Management Team A talented team of leaders with global and Indian experience, having a unique blend of backgrounds of wealth management, private equity, strategy consulting and building businesses powers Karvy Private Wealth and its operations. 20
    • DisclaimerThe information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The information containedherein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completenessthereof. This material is for personal information and we are not responsible for any loss incurred based upon it.The investments discussed or recommended here may not be suitable for all investors. Investors must make their own investment decisionsbased on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While actingupon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associatedcompanies of Karvy accepts any liability arising from the use of this information and views mentioned here.The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-mentioned companies fromtime to time. Every employee of Karvy and its associated companies are required to disclose their individual stock holdings and details of trades,if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling ofshares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. Allemployees are further restricted to place orders only through Karvy Stock Broking Ltd.The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors are advised to consulttheir respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws oncethe new Direct Tax Code is in force – this could change the applicability and incidence of tax on investmentsKarvy Private Wealth (A division of Karvy Stock Broking Limited): Operates from within India and is subject to Indian regulations.Mumbai office Address: 702, Hallmark Business plaza, Sant Dnyaneshwar Marg, Bandra (East), off Bandra Kurla Complex, Mumbai 400 051(Registered office Address: Karvy Stock Broking Limited, “KARVY HOUSE”, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad 500 034)SEBI registration No’s:”NSE(CM):INB230770138, NSE(F&O): INF230770138, BSE: INB010770130, BSE(F&O): INF010770131,NCDEX(00236,NSE(CDS):INE230770138, NSDL – SEBI Registration No: IN-DP-NSDL-247-2005, CSDL-SEBI Registration No:IN-DP-CSDL-305-2005, PMS RegistrationNo.: INP000001512” 21
    • Contact Us Bangalore 080-26606126 Chennai 044-45925923 Delhi 011-43533941 Goa 0832-2731822 Gurgaon 0124-4780222 Hyderabad 040-44507282 Kolkata 033-40515100 Mumbai 022-33055000 Noida 0120-4255337 Pune 020-30116238 Email: wealth@karvy.com SMS: ‘HNI’ to 56767 Website: www.karvywealth.comCorporate Office : 702, Hallmark Business Plaza, Off Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 22