Gold linked Deposit: 136% leverage                     (Net of taxes)                                   For	  investment	 ...
Gold	  has	  delivered	  27.19%	  annualised	  return	  in	  the	  past	  five	      years	  compared	  to	  just	  2.67%	 ...
Gold	  Investment	  OpFons	                         ✘   The	  most	  tradi?onal	  and	  the	  dominant	  form	  of	  buyin...
What	  if	  you	  could	  buy	  36%	  more	  Gold	  for	  the	                                    same	  amount	  of	  mon...
Sample	  Scenario	  1*	          Gold	  ends	  at	  150%	  of	  its	  iniFal	  price	  at	  the	  end	  of	  5	  years	   ...
Sample	  Scenario	  2*	            Gold	  ends	  at	  80%	  of	  its	  iniFal	  price	  at	  the	  end	  of	  5	  years	  ...
Some	  more	  payoff	  scenarios*	  (1)	  Ini$al	  Investment	  Amount	  =	  Rs.25	  lakhs	                     	       	  ...
Some	  more	  payoff	  scenarios*	  (2)	                                                         Product	  v/s	  Gold	  Ret...
How	  the	  product	  works	           STEP	  1:	  Invest	  at	  IniFal	  Gold	  Price	  (Price	  on	  Trade	  Date)	     ...
How	  is	  the	  investment	  made	                                                                                       ...
Key	  Terms	   §  Tenure	                                  §  5	  years	   §  Principal	  ProtecFon	                  §...
You	  should	  invest	  in	  the	  product	  if…	                You	  believe	  Gold	  prices	  are	  going	  to	  increa...
Benefits	  of	  invesFng	  in	  the	  product	   Opportunity to earn 36% additional return (Net of taxes) on your already e...
Key	  Parameters	  to	  be	  considered…	   §  Principal	  ProtecFon	                 §  Available	  at	  maturity	   §...
Disclaimer	  The	  informaFon	  contained	  herein	  is	  strictly	  confidenFal	  and	  meant	  solely	  for	  the	  selec...
Offshore	  Investment	  SoluFons	  	                                                                     ABOUT	  US	    	  ...
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Gold linked Accelerated Growth Plan - 136% Leverage (Net of taxes)

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Earn 36% more on your current Gold investment Net of taxes.

The investment objective of the Plan is to be an alternative to buying GOLD itself. The Plan lets you benefit from an increase in the price of GOLD while keeping your capital protected in case there is a fall in GOLD Price. The percentage increase in GOLD price is multiplied with a ‘Multiplier’ of 136% to calculate the Final Return net of taxes.

If GOLD increases by say 50% over the term of the deposit then the return on investment would be 1.36x 50% = 68% plus your initial investment of 100% i.e. Final Return = 168% net of taxes
If, at maturity, the Final Price of GOLD is lower than the Initial Price, you will not receive an investment return but your original capital will be repaid.

* Final Return at Maturity = 136% of the percentage increase in Gold Price (Net of Taxes)
* Investment term = 5 Years
* Capital protection = 100%
* Minimum investment = INR 10 Lakhs
* The ‘Multiplier’ can be increased by decreasing capital protection

For investment queries please contact:
invest@augustoffshore.com

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Gold linked Accelerated Growth Plan - 136% Leverage (Net of taxes)

  1. 1. Gold linked Deposit: 136% leverage (Net of taxes) For  investment  queries  contact:   invest@augustoffshore.com   +91-­‐9167199908   www.augustoffshore.com  
  2. 2. Gold  has  delivered  27.19%  annualised  return  in  the  past  five   years  compared  to  just  2.67%  from  the  equiFes  i.e.  Sensex   With  InflaFon  (CPI)  in  India  above  10%  ,  keeping  your  money  in  fixed   deposits  @  9%  means  actually  losing  wealth  over  Fme  •  Historically,  gold  has  been  the  perfect  hedge  for  infla?on.  This  is  based  on  data   right  from  the  year  1800  AD  •  Since  last  10  years,  Gold  has  been  hiHng  new  levels.  The  pace  accelerated  aIer   S&P  downgraded  US  credit  ra?ng  in  August  2011  •  The  downgrades  by  S&P  which  made  investment  in  US  treasury  more  risky,   infla?on  in  India,  general  slowdown  in  economy,  and  the  weakening  dollar  have   made  Gold  prices  soar  •  In  the  current  scenario  when  markets  condi?ons  for  other  investments  especially   equi?es  and  real  estate  are  turbulent  gold  is  a  very  strong  bet.   Gold  as  an  investment  should  be  used  at  Fmes  when  markets  are  falling    and  when  inflaFon  is  very  high  -­‐  which  makes  the  current  condiFons    ideal  for  invesFng  in  Gold   www.augustoffshore.com   1  
  3. 3. Gold  Investment  OpFons   ✘  The  most  tradi?onal  and  the  dominant  form  of  buying  gold  in  India  is  in  fact   not  an  investment  idea     Jewellery   ✘  Heavy  losses  in  the  form  of  wastage  and  making  charges.  This  can  vary  from   a  minimum  of  10%  to  as  high  as  35%  for  special  and  complex  designs   ✘  Bank  Coins  again  not  an  investment  idea  as  the  premium  that  banks  charge   Bank  Coins   for  their  coins  is  anywhere  between  5%  and  10%     ✘  Bank  coins  have  lesser  liquidity  as  they  are  not  bought  back  by  the  banks   ü World  Gold  Council  Coins,  are  coins  issued  by  jewelers  who  are  part  of  the  WGC   World  Gold   network   ✘  They  have  a  premium    of  1%  to  2%  over  the  market  price  and  are  redeemed  at  the  Council  Coins   market  price  when  one  takes  them  for  selling  off   ü  Bullion  Bars,  are  good  modes  for  investment  as  minimal  premium  is  charged   over  market  price     Bullion  bars   ✘  Storage  and  security  becomes  an  issue     ✘  There  is  addi?onal  ouYlow  of  cash  for  the  maintenance  of  lockers   ü Gold  Exchange  Traded  Funds  are  a  good  op?ons  as  they  are  easier  and  safer   mode  to  buy  gold  and  can  be  accessed  electronically   ✘  Asset  management  fee  is  charged  by  the  fund  house,  so  the  return  is  slightly   Gold  ETF   less  than  the  actual  increase  in  the  gold  price   ✘  There  are  addiFonal  costs  involved  at  the  ?me  of  buying  and  selling  in  the   form  of  brokerage  or  commission   www.augustoffshore.com   2  
  4. 4. What  if  you  could  buy  36%  more  Gold  for  the   same  amount  of  money  and  that  too  a_er  tax!!   PresenFng  an  Investment  Strategy  that  gives  you  136%   parFcipaFon  in  the  upside  in  Gold  while  keeping  your   capital  protected  and  the  returns  are  net  of  taxes!!!   If  Gold  price  at  maturity  is   136%  x  Increase  in  Gold  Price   ABOVE  its  ini?al  price                              Ini?al  Price   If  Gold  price  at  maturity  is   100%  of  your  Capital  Returned     SAME  as  its  ini?al  price   If  Gold  price  at  maturity  is   100%  of  your  Capital  Returned     BELOW  its  ini?al  price  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   3  
  5. 5. Sample  Scenario  1*   Gold  ends  at  150%  of  its  iniFal  price  at  the  end  of  5  years   i.e.  a  5-­‐year  return  of  50%   You invest at the Initial Price Say, $1600 Check Final Price of Assume Gold is 50% up Gold at Maturity Say, $2400 At maturity, the products pays 100% capital + 120% of 50% i.e. 168% paid out*For  illustra?on  only.  Not  intended  as     Outperformance  of  36%  expected  outcome  /  only  scenarios  possible   over  Gold  (Net  of  Taxes)  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   4  
  6. 6. Sample  Scenario  2*   Gold  ends  at  80%  of  its  iniFal  price  at  the  end  of  5  years     i.e.  a  loss  of  20%  a_er  5  years   You invest at the Initial Price Say, $1600 Check Final Price of Assume Gold is 20% down Gold at Maturity Say, $1280 At maturity, the products pays 100% capital returned Principal  is  returned  *For  illustra?on  only.  Not  intended  as     even  though  Gold  has  expected  outcome  /  only  scenarios  possible   lost  20%  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   5  
  7. 7. Some  more  payoff  scenarios*  (1)  Ini$al  Investment  Amount  =  Rs.25  lakhs                Upfront  Fee  @  1%  =  Rs.25,000  Ini$al  Gold  Price  (Trade  Date)  =  $1,600   Final  Gold  Price     Gold   Product   Maturity  Amount         at  maturity   Return    Return   (Rs.  Lakhs)   800   -­‐50.0%   0.0%   25.0   1,200   -­‐25.0%   0.0%   25.0   1,600   0.0%   0.0%   25.0   2,000   25.0%   34.0%   33.5   2,400   50.0%   68.0%   42.0   2,800   75.0%   102.0%   50.5   3,200   100.0%   136.0%   59.0   Principal  is  returned   even  though  Gold  has   given  negaFve  returns  *For  illustra?on  only.  Not  intended  as     Outperformance  of  36%  expected  outcome  /  only  scenarios  possible   over  Gold  (Net  of  Taxes)  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   6  
  8. 8. Some  more  payoff  scenarios*  (2)   Product  v/s  Gold  Return   150.0%   Outperformance     Of  36%  over  Gold   125.0%   Net  of  Taxes   100.0%   75.0%   50.0%  Returns   Principal     Protected   25.0%   0.0%   800   1,200   1,600   2,000   2,400   2,800   3,200   -­‐25.0%   Final  Gold  Price   -­‐50.0%   Gold  Return   Product  Return   *For  illustra?on  only.  Not  intended  as     expected  outcome  /  only  scenarios  possible   IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   7  
  9. 9. How  the  product  works   STEP  1:  Invest  at  IniFal  Gold  Price  (Price  on  Trade  Date)   STEP  2:  Observe  Final  Gold  Price  (Price  at  Maturity)   STEP  3:  If  Final  Gold  Price  is  higher  than  the  IniFal  Gold  Price,   receive  100%  Principal  +     136%  of  posiFve  Gold  return  at  maturity  (NET  OF  TAXES)   STEP  4:  If  Final  Gold  Price  is  less  than  the  IniFal  Gold  Price,   receive  100%  Principal  at  maturity  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   8  
  10. 10. How  is  the  investment  made   Total  Product  Return   Return  on  the  Gold     IniFal  Investment     Op?on  received  in  USD   amount  =  100     USD  Amount  invested    offshore  in  Gold  Op?ons   Returns  from  the  bonds  grows   to  100  at  maturity  thus   Amount  invested    in   providing  Principal  Protec?on;     Government  of  India   Received  in  INR  and  paid  to  your   Bonds  in  INR  through   local  savings  account  linked  to   local  Demat  account     your  demat  account     Trade  Date   Maturity   i.e.  Date  of     T  =  5  years   Investment  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   9  
  11. 11. Key  Terms   §  Tenure   §  5  years   §  Principal  ProtecFon   §  100%  at  maturity   §  AA-­‐  INR  Bonds  issued  by  Religare  /  Muthoot  /  Shriram  Finance     §  Instrument                                            +     Equity  Shares  in  an  offshore  registered  company     §  IniFal  Gold  Price   §  Gold  closing  price  on  Trade  Date   §  Final  Gold  Price   §  Gold  closing  price  on  Maturity  Date   §  If  Final  Gold  Price  is  ABOVE  Ini:al  Gold  Price,   100%  Principal  +  120%  of  upside  in  Gold  is  paid  at  maturity   i.e.  100%  +  136%  x  (Increase  in  Gold  Price)   §  Return  CalculaFon                                                                                Ini?al  Gold  Price     §  If  Final  Gold  Price  is  BELOW  Ini:al  Gold  Price,     100%  Principal  is  paid  at  maturity   §  Min  Investment  Amount   §  Rs.10  lakhs  and  addi?onal  amounts  in  mul?ples  of  Rs.1  lakh   §  Max  Investment  Amount   §  Rs.3.5  crore  per  individual  per  financial  year   §  Taxes  Payable   §  Returns  menFoned  are  post  tax;  No  more  taxes  are  to  be  paid   §  Upfront  Fee   §  1%  of  the  investment  amount;  to  be  paid  over  and  above  the     investment  amount  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   10  
  12. 12. You  should  invest  in  the  product  if…   You  believe  Gold  prices  are  going  to  increase  in  the     medium  to  long  term   You  have  already  invested  in  physical  Gold  or  Gold  ETFs  and   would  like  to  increase  your  returns  while  geqng  an  addiFonal   benefit  of  capital  protecFon   You  are  looking  to  diversify  your  porYolio  and  want  to  get   exposure  to  Gold  but  do  not  want  to  risk  your  capital  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   11  
  13. 13. Benefits  of  invesFng  in  the  product   Opportunity to earn 36% additional return (Net of taxes) on your already existing Gold investments i.e. Outperformance on 36% over Gold (Net of taxes) Principal protection at maturity i.e. no risk on the downside even if there is a fall in Gold prices No risk of theft or storage/locker costs even in case of very high investment amount Hence,  earn  136%  of  the  upside  in  Gold  (Net  of  taxes)  without   any  risk  in  case  of  a  fall  in  Gold  price  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   12  
  14. 14. Key  Parameters  to  be  considered…   §  Principal  ProtecFon   §  Available  at  maturity   §  Investment  Horizon   §  5  years   §  Regular  Income   §  The  returns  are  paid  on  maturity,  so  there  will  be  no  regular,     intermediate  payments   §  Liquidity   §  Liquidity  op?ons  may  be  limited  and  may  not  be  easily     available   §  The  bonds  are  subject  to  the  credit  risk  of  the  issuer.  In  case  of   §  Credit  Risk   Government  of  India  bonds  no  credit  risk  exists  as  the  bonds     are  free  from  risk  of  default   Investor can select the Bond to buy and select the product return accordingly Underlying  Bonds   Net  ParFcipaFon  Post  Tax   G-­‐Secs   85%   AAA  bonds   100%   Shriram  Finance  (AA/AA-­‐)     130%   Muthoot  Finance  (AA-­‐/AA-­‐)   133%   Religare  (AA-­‐/AA-­‐)   136%  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   13  
  15. 15. Disclaimer  The  informaFon  contained  herein  is  strictly  confidenFal  and  meant  solely  for  the  selected  recipient  and  may  not  be  altered  in  any  way,  transmised  to,  copied  or  distributed,  in  part  or  in  whole,  to  any  other  person  or  to  the  media  or  reproduced  in  any  form,  without  prior  wrisen  consent  of  August  Offshore  Wealth.  The  contents  of  this  presentaFon  are  solely  for  informaFonal  purpose  and  may  not  be  used  or  considered  as  an  offer  document  or  solicitaFon  of  offer  to  buy  or  sell  or  subscribe  for  the  products  or  other  financial  instruments.  Nothing  in  this  presentaFon  consFtutes  investment,  legal,  accounFng  and  tax  advice  or  a  representaFon  that  any  investment  or  strategy  is  suitable  or  appropriate  to  your  specific  circumstances.  While  due  care  has  been  taken  in  preparing  this  document,  August  Offshore  Wealth  and  affiliates  accept  no  liabiliFes  for  any  loss  or  damage  of  any  kind  arising  out  of  any  inaccurate,  delayed  or  incomplete  informaFon  nor  for  any  acFons  taken  in  reliance  thereon.  This  presentaFon  is  not  directed  or  intended  for  distribuFon  to,  or  use  by,  any  person  or  enFty  who  is  a  ciFzen  or  resident  of  or  located  in  any  locality,  state,  country  or  other  jurisdicFon,  where  such  distribuFon,  publicaFon,  availability  or  use  would  be  contrary  to  law,  regulaFon  or  which  would  subject  August  Offshore  Wealth  and  affiliates  to  any  registraFon  or  licensing  requirement  within  such  jurisdicFon.  The  informaFon  provided  herein  is  not  an  offer  or  solicitaFon  for  any  applicaFon  or  subscripFon  for  securiFes/deposits  or  any  other  products  or  services  described  herein  and  is  not  directed  at  any  person  and  not  intended  for  to  be  acted  upon  by  any  jurisdicFon  where  this  would  (by  reason  of  that  persons  naFonality,  residence  or  otherwise)  be  contrary  to  law  or  other  legal  requirements.  The  informaFon  contained  in  this  document  is  not  intended  to  nor  should  it  be  construed  to  represent  that  August  Offshore  Wealth  provides  any  products  or  services  in  any  jurisdicFon  where  it  is  not  licensed  or  registered  or  authorised  to  do  so.  The  informaFon  provided  is  not  intended  to  be  used  by  investors  as  the  sole  basis  for  investment  decisions,  who  must  make  their  own  investment  decisions,  based  on  their  own  investment  objecFves,  financial  posiFons  and  needs  of  specific  investor.  The  informaFon  provided  may  not  be  taken  in  subsFtuFon  for  the  exercise  of  independent  judgment  by  any  investor.  The  investor  should  independently  evaluate  the  investment  risks  and  make  independent  judgment  with  regard  suitability,  profitability,  and  fitness  of  any  product  or  service  offered  herein  above.  The  products  described  in  this  document  may  not  be  protected  against  sovereign  risk  including  risks  arising  from  any  changes  in  applicable  Indian  or  other  relevant  laws,  represent  speculaFve  investments  and  may  involve  a  high  degree  of  risk.  Investors  capital  may  not  be  guaranteed  in  any  respect  and  they  could  lose  all  or  substanFal  porFon  of  their  investment.  Please  familiarize  yourself  with  all  the  terms  and  condiFons  pertaining  to  the  specific  products  and  services  prior  to  availing  of  it.  August  Offshore  Wealth  is  not  acFng  as  your  advisor  or  in  a  fiduciary  capacity  in  respect  of  the  products  and  services  referred  to  in  this  document,  and  accepts  no  liability  nor  responsibility  whatsoever  with  respect  to  the  use  of  the  informaFon  provided  hereinabove.  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   14  
  16. 16. Offshore  Investment  SoluFons     ABOUT  US     August   Wealth   is   a   Global   Offshore   Investment   Solutions   provider   to   HNI   and   Ultra   HNI   clients.   The   only   one   of   its   kind   in   India,   we   provide   a   range   of   opportunities   to   invest   offshore   so   that   you   can   capitalise   on   the   global   economic   scenario   rather   than   being   restricted   to   Indian   investments.   Our   products   combine   the   best   of   both   worlds   by   utilising   the   high   interest   rates   in   India   with   the   depth   of   the   options/derivates   markets   overseas   in   London,  New  York,  Singapore  and  Hong  Kong.     August   Wealth,   as   a   leading   Hinancial   product   developer,   has   set   itself   the   goal   of   offering   Hirst-­‐class  products  tailored  precisely  to  its  clients  risk  proHiles  and  investment  objectives.   Alongside   standardized   investment   solutions   which   are   commonly   traded   on   the   stock   exchange,  we  can,  literally,  create  a  personal  product  for  you  –  tailored  speciHically  to  your   individual  needs  and  risk  proHile.         For  investment  queries  contact:     invest@augustoffshore.com     +91-­‐9167199908  IndicaFve  terms  only.  Actual  terms  may  differ  and  will  be  decided  when  final  investment  is  made   www.augustoffshore.com   15  

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