21 Buddha Dynamic Multi Manager Balanced Fund

21 Buddha
Connecting the dots…
Dynamic Multi Manager Balanced Fund
(An open-ended Multi Asset fund)
This product is suitable for investors who are seeking :
• Long term capital appreciation
• Exposure in units of Equity mutual funds, Fixed income
mutual funds and a Gold ETF of other asset managers.
• High Risk* (Brown)
*Risk indicators are colour coded as:
• (Blue): Investors understand that the principal will be at low risk.
• (Yellow): Investors understand that the principal will be at medium risk.
• (Brown): Investors understand that the principal will be at high risk.

The World of investing welcomes you!
2
© Saurabh, Shared in investor’s interest
The moment you get in touch with a financial adviser, you are bound to be greeted with
plenty of investment choices depending upon your risk appetite and also a heavy dose of
financial market jargons.

Table of contents
About us1
What is a Multi Manager Balanced strategy?2
The Investment Case for Multi Manager Balanced Fund of Fund3
Benefits of Asset class diversification4
Lessons from history5
Introduction to 21 Buddha Multi Manager Balanced Fund6
Spotlight on the underlying funds7
Dispersion in Returns of the underlying sub-funds8
Impact of Asset allocation on Portfolio performance9
Impact of diversification on Risk reward parameter10
21BDMMF Investment Process11
3
Scheme structure12
The Team13
Our Value Proposition summary14

About Us
4
Firm Profile
Established: 2011
Staff: 03 professionals
Experience: 11 years
Average client relationship: 3 years
At 21 Buddha, we understand the unique
challenges that come with managing
wealth. As a new age Money Management
boutique, we combine our financial research
and risk management expertise to simplify
investment decision making for our clients.
Our client’s situation and goals remain our
principal focus areas while delivering
superior investment performance.
Our core expertise lies in Investment
manager’s due diligence and Portfolio
positioning. Having got many innovative
analytical tools in our arsenal we cater to all
aspects of client’s wealth—from
accumulation and growth through
preservation and distribution.
With our dedicated and proactive approach
we are deeply committed to our client’s
financial interest. Its our endeavour to
delight clients with high quality investment
products in the market.

What is a Multi Manager Balanced Strategy?
5
Multi-Manager investment is an investment strategy that consists of multiple
specialized funds. Each specialized fund may invest across different sectors and
markets, or having managers investing in the same asset class but have different
investment styles.
This theory is founded on the premise that not all investment managers are good
in all markets and that not all managers are successful at all times. Spreading the
investment money across different asset classes or markets allows the investor to
achieve the necessary diversification, reducing risk without sacrificing the return.
Large Cap
Equities
Small &
Midcap
Equities
Intermediate
bonds
Short term
Govt. Bonds
Gold
Multi Manager
Balanced Fund
• Investment in various asset classes managed by specialist Portfolio managers offers
true diversification through efficient risk and reward balance to investors.
Diversification
• Dynamically shuffle asset mix based on market outlook to optimize performance.
Asset Allocation
• The underlying funds are thoroughly researched by Fund research analysts. The
Investment process should be based on blending the skills of best managers in their
respective category to produce alpha from multiple streams.
Manager/Fund research
Highlights of a Dynamic Multi Manager Balanced Strategy

Why select a Multi Manager Balanced Fund?
6
Creating the right Investment package for clients require striking the
right balance between Investment products & client expectations.
Research
& ongoing
monitoring
Risk control
Strategic &
Tactical Asset
allocation
Diversification
benefits
Best of breed
21 Buddha Dynamic Multi Manager Balanced Fund
We believe:
• Asset class diversification is an important
step towards achieving an efficient risk
return trade off (illustrated in the next two slides).
• No single Asset Manager is equally good
in all asset classes.
• Asset allocation must be carefully maneuvered
to ride superior investment performance.
• The best of breed Investment schemes
can be cherry picked using our Proprietory
Portfolio Ranking model.
Multiple
Investment
Managers
Multiple
Asset class
Multi
Manager
Balanced
FoF

Benefits of Asset class diversification
7
Correlation between three major asset classes over 15 years period.
Sensex Govt. Bonds Gold
Sensex 1.00 0.47 -0.09
Govt. Bonds 0.47 1.00 -0.15
Gold -0.09 -0.15 1.00
We see that:
a) A low correlation exists between Equities & Bonds.
b) Negative correlation exists between Equities & Gold and
c) Again a negative correlation exists between Gold & Bonds.
By mixing low or negatively correlated assets, investors can reduce the market
risk factor to a great extent even without losing so much on the return side.
We have often seen that investors spending time in the market with a multi-
asset focus gets a far better long term reward than investors who rely on
timing the market with a single asset.
The idea of not putting all
your eggs in one basket
sounds really sensible in the
investment world context.
Source: Bloomberg

The concept of Sub-Asset class allocation
8
The perfect platform to increase return for same level of risk.
Pooling sub-assets with low correlation can produce better risk-adjusted performance than a
traditional multi asset portfolio.
Risk %
Return%
The Usual Old Portfolio
Proposed Portfolio with
additional holdings
Old Efficient frontier
New Efficient frontier
Large
Cap
Equity
Small &
Midcap
Equity
Interme
diate
Bonds
Treasury
Commo
dities

Lessons from History
9
17.04
40.09
53.98
13.83
21.25
-80.00
-60.00
-40.00
-20.00
0.00
20.00
40.00
60.00
2004-07
(Economic boom)
2008
(US Credit Crisis)
2009-10
(Market Recovery)
2011
(European Sovereign
Credit Crisis)
2012-13
(Macro Policy
Uncertainities)
Sensex CNX Midcap Intermediate Bond Short Term Government Bond GSCI Gold Index (INR denominated)
Performance through various market cycles indicate that there is no clear winner for all seasons.
Source: Morningstar & Bloomberg
 Investors having bias for
best near term performance
tend to fall prey to long term
underperformance.
 Returns from different
asset classes vary
significantly during various
market cycles. Picking the
right asset class before time
requires a great deal of
research efforts. We have
seen that retail investors
often commit mistake by
picking the winning asset
class towards the end of the
rally.
Sticking to a unique asset class could prove to be a wealth destroying proposition
during distressed times.

Presenting our 21 Buddha Dynamic Multi Manager Balanced fund
10
21 Buddha Dynamic Multi Manager Balanced
fund is a hybrid fund of fund scheme which aims to
create a dynamic balanced portfolio structure by
leveraging the strength of various skilled
Investment Managers in the country.

Product Snapshot
11
The fund’s objective lies in producing consistent returns over market cycles with low downside risk.
 It has two plans:
Plan A with Growth option
Plan B with Income option
 Both plans will have exposure to Equities (Large, Mid & Small caps), Bonds (Govt. & Corporate
Debt) and Gold. Plan A will subscribe to Growth plans of the underlying funds whereas Plan B will
subscribe to Income option of the underlying funds. So Plan A will offer dividend reinvestment
option while Plan B will return dividend income to unit holders as and when it is declared.
 We have already indentified the underlying funds through which this FoF would take exposure
to the predefined asset classes. This decision has been based on rigorous due diligence of those
products via our Proprietory Fund Ranking model. However the performance of the underlying
funds along with their peer group will be further tracked on an ongoing basis as part of our
Standard Quality Control process.
 Asset allocation decisions will be taken by our team of in-house analysts. Exposures will be
reviewed on a weekly basis. The Tactical portfolio rebalancing decisions would be primarily
driven by a combination of macroecononomic factors and valuation multiples of the broader
market.
 Due to the nature of its composition, a basket of Indices including S&P BSE Sensex, CNX
Midcap, Crisil Composite Bond Fund Index, Short ICICI Securities Sovereign Bond index and MCX
Gold quote would be used as a benchmark to track its relative performance. The weights of the
constituent indices would be periodically adjusted to reflect portfolio allocation.
21 Buddha Multi
manager Balanced
Fund
Large Cap Equities
21 Buddha Multi Manager Balanced Fund
Large Cap Equities
Small & Midcap Equities
Intermediate Bonds
Short Term Govt. Bonds

The List of Underlying Funds
12
• Category: Domestic Large Cap Equity
• Benchmark: S&P BSE SensexFranklin India Bluechip Fund
• Category: Domestic Small & Mid Cap
• Benchmark: CNX Midcap IndexICICI Prudential Discovery Fund
• Category: Intermediate Bond
• Benchmark: Crisil Composite Bond Fund IndexCanara Robeco Income Fund
• Category: Short term Treasury bills
• Benchmark: Short ICICI Securities Sovereign Bond IndexDSP Blackrock Treasury Bill Fund
• Category: Gold ETF
• Benchmark: Domestic price of GoldGS Gold BeES
The objective is to achieve superior risk adjusted returns by combining top of the order
Investment products with complementary alpha streams, style bias and risk exposure.

Spotlight on the Underlying funds Category: Large Cap Equities
13
Franklin India Bluechip Fund
4790.32
3625.76
1000
1500
2000
2500
3000
3500
4000
4500
5000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Cumulative Performance over the Years
Fund Benchmark
Winning Period Losing Period
13 24 50
Large
4 6 3
Mid
0 0 0
Small
Value Blend Growth
Based on last ten calendar yearsHoldings Style
One of the best performing large-cap schemes in the country
 The relative performance looks quite impressive on all time scales.
 The Fund Manager has a strong quality bias in the bluechip universe.
His dislike for leveraged balance sheet is well known and he factors-in
non-financial parameters of the target stocks in his research model. Also
he is never afraid to take high conviction contrarian calls as against the
broader market.
 The Fund has a great blend of Cyclical, Sensitive & Defensive sectors.
 It has delivered strong performance on the risk-adjusted front.
 The Fund Manager doesn’t make any tactical allocation of cash and
follows an unhedged policy.
 The fund’s expense ratio is lower than that its many Large Cap peers.
 It boasts of one of the longest survival history in the Indian asset
management space.
 It enjoys outstanding ratings from Morningstar, Valueresearch & Lipper.
Parameters 1 Year 3 Years 5 Years 10 Years
Alpha -4.54 0.46 3.38 3.29
Beta 1.11 0.87 0.85 0.91
Information Ratio -1.12 0.32 0.40 0.49
Sharpe Ratio -0.34 -0.41 0.53 0.35
Volatility 15.37 16.42 20.02 23.34
Source: Lipper  AUM (INR billion): 429
 Structure: Open ended
 Annual Management fee: 1.25%
 TER: 1.82%
 Fund Manager: Anand Radhakrishnan,
Anand Vasudevan
 Inception Date: 01/12/1993
Source: MorningstarNB: All the given data has been taken till 31-Dec-2013.
This product is suitable for investors who are
seeking long term capital appreciation with
reasonable risk appetite in the short run.

Contd.. Category: Small & Midcap Equities
14
ICICI Prudential Discovery Fund
6879.45
3379.38
1000
2000
3000
4000
5000
6000
7000
8000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fund Benchmark
4 16 6
Large
17 15 9
Mid
15 10 7
Small
Value Blend Growth Winning Period Losing Period
Holdings Style Based on last nine calendar years
 AUM (INR billion): 28.8
 TER: 1.92%
 Fund Manager: Mrinal Singh
NB: All the given data has been taken till 31-Dec-2013. Source: Morningstar
One of the best performing Small & Midcap schemes in the
country
 The Fund Manager follows a bottom-up investment approach. He
combines absolute and relative valuation metrics in his investment
screening process. Also he lays a strong focus on qualitative parameters
of the investible universe.
 The Fund has adopted diversification religiously since inception.
 It has impressed investors with solid absolute and relative performance
on all time scales. In 2008, though it produced negative returns but it
contained further damages to investors by taking tactical exposure into
non-equity instruments..
 It has built up a great track record on risk & return parameter as well.
 The Fund Manager has always capitalized on recovery rallies. Its
captured well in its stellar performance in 2009 & 2012 Calendar years.
 The fund’s expense ratio is lower than that other SMC peers.
Parameters 1 Year 3 Years 5 Years
Alpha 9.96 6.52 11.56
Beta 0.77 0.77 0.83
Information Ratio 1.89 1.19 1.19
Sharpe Ratio -0.07 -0.16 0.79
Volatility 16.50 18.27 24.15
Source: Lipper
This product is suitable for investors who are
seeking long term capital appreciation with
reasonable appetite for short term volatility.

Contd.. Category: Intermediate Bonds
15
Canara Robeco Income Fund
2273.14
1702.10
1000
1200
1400
1600
1800
2000
2200
2400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Cumulative Performance Over the Years
Fund Benchmark
Winning Period Losing Period
High
CreditQuality
Medium
Low
High Medium Low
Interest Rate Sensitivity
Fixed Income Style Based on last ten calendar years
 TER: 1.90%
 Fund Manager: Akhil Mittal
Characteristics
Effective Maturity 6.50
Yield to Maturity 8.63
Yield to Worst 8.64
Modified Duration 4.67
OAD 4.68
Period Sharpe
Ratio
Volatility
1 Year -0.92 4.38
3 Years -0.68 2.59
5 Years -0.32 3.08
10 Years 0.25 3.91
Source: Bloomberg & Lipper
One of the best performing Intermediate-Term bond funds in the
country
 The Fund has a dynamic asset allocation policy. It invests in debt &
money market instruments of various maturity and issuers of different risk
profile.
 The Portfolio manager lays strong focus on macroeconomic drivers and
take active bets on Yield curve movements.
 Based on the interest rate view, duration of the portfolio is decided
along with the asset allocation pattern between govt. & corporate bonds.
 On most time scales it has beaten the Crisil Composite bond fund
index. Its risk adjusted performance looks reasonably well and it scores
high on peer group performance ranking.
In 2008, it surprised investors with huge gains of 29.95% by increasing
exposure to cash. Though some advisors had criticized the Fund house of
violating the stated investment mandate.
75.34
19.58
5.08
Govt. Debt
Corporate Debt
Cash
This product is suitable for investors who seek
capital appreciation with limited downside risk.

Contd.. Category: Short term Treasury Bills
16
DSP Blackrock Treasury Bill Fund
1751.74
1658.21
1000
1100
1200
1300
1400
1500
1600
1700
1800
2003 2005 2007 2009 2011 2013
Cumlative Performance Over the Years
Fund Benchmark
High
CreditQuality
Medium
Low
High Medium Low
Interest Rate Sensitivity Winning Period Losing Period
Fixed Income Style Based on last ten calendar years
 TER: 0.6%
 Fund Manager: Dhawal Dalal
One of the most efficient Short term Government bond fund in
the country
 It is an open ended Money market scheme which generates income
through investment in a basket of Treasury bills and other Sovereign
bonds with a residual maturity of not more than one year.
 The Investible universe of Short term Indian Treasuries is small and the
mandate doesn’t call for taking too many active decisions by the Fund
Manager. It has consistently given low but positive relative return over
the risk free rate. This is quite evident in its Sharpe ratio on various time
scales.
 Due to the nature of its holdings, the fund has always been less volatile
on the charts.
 The fund’s expense ratio is lower than that its peers.
Characteristics
Effective Maturity 0.49
Yield to Maturity 8.16
Yield to Worst 8.16
Modified Duration 0.46
OAD 0.47
Period Sharpe
Ratio
Volatility
1 Year 0.41 1.27
3 Years 0.46 0.83
5 Years 0.25 0.97
10 Years 0.05 0.87
Source: Bloomberg & Lipper
94.06
5.94
Govt. Debt
Cash
This product is suitable for investors who seek
low risk income over short term horizon.

Contd.. Category: Gold
17
Goldman Sachs Gold ETF
 Category: Gold ETF listed on NSE
 TER: 1%
 Pricing per unit:
Approximately 1 gram of gold
 Fund Manager: Vishal Jain
Source: Morningstar
The oldest and the biggest Gold ETF as per AUM in the country.
This product is suitable for investors who believe
in asset class diversification and want to
safeguard a part of their portfolio during
uncertain times.
•To provide returns that, before expenses, closely track the
returns provided by domestic price of gold through physical
gold.
Investment Objective:
•Due to its scale and efficient cost structure it has the lowest
expense ratio amongst the Gold ETF peers.
Expense
•As a passively managed mandate, its performance should
closely follow the benchmark. Its tracking error is as low as
0.23% on annualized basis.
Tracking error
0.49
99.51
0 50 100 150
Cash
Gold
1000
1500
2000
2500
3000
3500
4000
Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Aug-13 Dec-14
GBeES Benchmark
Source: gsam.in
Why invest in a Gold ETF?
 Portfolio Diversification: It has low or negative correlation with
traditional asset classes.
 Inflation hedge: Gold’s purchasing power has not seen erosion
across market cycles. In fact its price has seen steady increase over the
years.
 Demand: In a country like India where people have an emotional
connect with Gold jewelries, the demand & supply equation will always
be tilted in Gold’s favour.
 The ETF convenience: It has reduced many hassles in the way
investors take exposure into Gold. The ticket size of minimum investment
has been reduced considerably. Now the gold buyers don’t need to worry
about its safekeeping. Some ETF providers also give investors the choice
to receive physical gold bars while redeeming units.

Dispersion in Sub Fund’s Returns
18© Saurabh, Shared in investor’s interest
Funds 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Franklin India Bluechip 24.60 41.22 45.52 47.41 -48.14 84.49 22.96 -18.25 26.79 4.08
ICICI Prudential Discovery NA 63.74 28.69 39.65 -54.56 134.32 27.71 -23.73 46.01 8.31
Canara Robeco Income 2.28 9.81 4.60 6.46 29.95 6.84 4.98 7.76 9.93 5.26
DSP Blackrock Treasury Bill NA NA NA 0.70 -0.43 0.27 0.40 0.34 0.44 0.53
GS Gold BeES NA NA NA NA 24.46 24.94 21.69 29.87 11.22 -6.39
>50% dispersion between various assets
 Clients may have the best performing funds in their portfolio.
However taking standalone exposure into these products can
erode principals during testing times.
 Holding a wrong asset during adverse market movements can
prove to be an expensive mistake momentarily.
 We all know that Equities outperform all other conventional
asset classes in the long run. But imagine the plight of an investor
who has been holding Equities since long time thru’ some large
cap Equity funds and he had a big liability lined up for 2008. In
that case, he has no other choice but to book heavy losses in his
Equity portfolio.
 A multi-asset portfolio can cut these losses
significantly. Further a multi-asset portfolio with
dynamic asset allocation strategy can be even
more rewarding.
Note:
a) The 2004 return for ICICI Pru Discovery is not available for 2004 since it was launched in the same year.
a) For DSP BR Treasury Bill Fund, the returns are not available prior to 2007.
a) GS Gold BeES ETF was launched in 2007, so the returns till 2007 are missing.
Source: Bloomberg

Sub Asset Class Allocation & its Impact on Performance
Our Model Asset allocation
Sub Asset class 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Large Cap 40% 35% 40% 40% 30% 35% 35% 30% 35% 35%
Small & Midcap 25% 30% 25% 25% 25% 35% 35% 25% 35% 30%
Intermediate Bond 15% 10% 15% 15% 20% 15% 15% 20% 15% 20%
Short Term Treasury 5% 5% 10% 5% 5% 5% 5% 5% 5% 5%
Gold 15% 20% 10% 15% 20% 10% 10% 20% 10% 10%
Performance Results
21BDMMB FOF 22.86% 43.35% 25.95% 33.67% -17.22% 80.12% 20.67% -3.87% 28.11% 4.36%
6856.602212
4790.317167
6879.445372
2273.141343
1022.845255
5176.215824
1000
2000
3000
4000
5000
6000
7000
8000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Cumulative Performance
21BDMMB Large Cap Small & Midcap Intermediate Bond Short Term Treasury Gold
The Asset allocation decision factors-in our internal team’s view on the yield potential of sub-asset classes at
various stages. The annual weights used in the above chart have been averaged. In actual practice, the asset
allocation decisions are reviewed on a weekly basis.
*Red reflects decrease in weight while Green indicates rise in allocation.
Source: Bloomberg

Performance Comparison
Source: Bloomberg
4.36
8.73
22.81
21.23
4.08
2.56
19.60
16.96
8.31
6.45
29.27
21.27
5.26
7.63
6.94
8.56
0.53 0.44 0.40 0.23
-6.39
10.58
15.50
17.87
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
1 Year 3 Years (Ann) 5 Years (Ann) 10 Years (Ann)
21BDMMB Large Cap Small & Midcap Intermediate Bond Short Term Treasury Gold
The above chart reflects that the Multi Manager Dynamic allocation is definitely not a low return strategy. It
has delivered high returns with low downside risk.
Note: These figures have been compiled for illustration purpose only and shouldn’t be construed as future performance of 21
Buddha Dynamic Multi Manger Balanced fund.

Sub Asset Diversification Impact on Risk & Return Scale
Source: Bloomberg
-5
0
5
10
15
20
25
0 10 20 30 40 50 60
Return(%)
Risk (%)
Based on last ten years data
21BDMMF Large Cap Small & Midcap Intermediate Bond Short Term Treasury Gold
10 Years
5 Years
Sub Asset class Return Risk Return/Risk
Large Cap 16.96 37.05 0.46
Small & Midcap 21.27 50.58 0.42
Intermediate Bond 8.56 7.80 1.10
Short Term Treasury 0.23 0.34 0.66
Gold 17.87 14.94 1.20
21BDMMF 21.23 26.90 0.79
Sub Asset class Return Risk Return/Risk
Large Cap 19.60 38.24 0.51
Small & Midcap 29.27 59.45 0.49
Intermediate Bond 6.94 2.02 3.44
Short Term Treasury 0.40 0.10 4.01
Gold 15.50 14.39 1.08
21BDMMF 22.81 32.87 0.69
The Asset class diversification improves risk return efficiency. Our FOF has
beaten Equities on Risk adjusted basis on all time scales.

The FOF Investment Process
Broad Universe
of India
domiciled Mutual
funds
Screening of
funds using our
Proprietory
Portfolio
appraisal
process
Strategic asset
allocation with
well defined
bands
Dynamic asset allocation
using cues from
macroeconomic indicators
and broader market
valuation multiples.
Portfolio
oversight on
ongoing basis
Dynamic Asset allocation
Govt.
Debt &
Inflation
Earnings
Yield of
Sensex
stocks
Bond
Yield

The FOF Scheme Structure
23
Options: Regular Growth (Class A) & Income option (Class B)
Outperformance Target: 1.50% per annum on Gross of Fees basis
Minimum Redemption amount: INR 1000 (plus in multiples of INR1)
Entry Load: Not Applicable
Exit Load: 1% if redeemed/switched before 1 year from the date of allotment, after 1 year: Nil
Asset allocation: Equities should range between 40%-65%,
Debt & Money market exposure should lie between 15% to 30%
Gold: 10%-20%
All assets invested in Indian Domestic market and no currency hedging shall be permitted.
Benchmark: Blend of the following indices reflecting the dynamic weights of actual portfolio assets:
a) S&P BSE Sensex b) CNX Midcap c) Crisil Composite Bond Fund Index
d) Short ICICI Securities Sovereign Bond Index and e) MCX Gold Quote
Minimum Investment: In lump sum INR 5000 (plus in multiples of INR 1), SIP: INR 1000

Biographies
24
India Multi Asset Team
Kalyan Dawson, CIPM
Head of Equity Manager Research
Responsibilities:
Kalyan Dawson is responsible for Equity
Manager Research and Portfolio Analytics. He
also plays an active role in framing Asset
allocation decisions.
Experience:
Kalyan is one of the co-founders of 21 Buddha.
He carries more than 15 years experience in
the Buy-side and has served several well
known Asset Management firms in
Performance Measurement & Risk domain.
Responsibilities:
Patrick Pandey is responsible for Fixed Income
& Commodities research and tactical asset
allocation.
Experience:
Patrick joined 21 Buddha in 2011. He carries
more than 20 years experience and has served
as a Bond Fund Manager in his various stints
with few well known Global Asset Management
firms. He holds FRM certification and he is also
a member of Global Association of Risk
professionals.
Patrick Pandey, FRM
Head of Fixed Income & Commodities

Our Value Proposition Summary
25
Why Us & the 21BDMMF?
 Dedicated Investment boutique firm: Unlike many financial supermarket giants we are in no other
business except Investment management. Our client’s financial well being is our principal objective. We
believe in Performance driven values.
 Manager selection: Our proprietory product screening methodology is one of the first in the Indian
market. Our rigorous manager appraisal process combines the elements from Performance Measurement,
Investment Analytics & Risk domain. The outcome has been designed to distinguish skill versus luck for
the asset managers.
Our model discounts other subjective factors like scale of the firm, track record of other products and
brand worthiness of Star Fund managers.
 Objective recommendation: We have no affiliation with any financial services firm and we have no
cross selling agenda. Our only source of income is the management fee that we earn from our own
products.
 Experienced team: We have a small but a very capable team who are well known experts in their
domain.
 Robust Investment Process: Our manager selection and asset allocation mechanism churns out
best of the breed underlying funds with near optimal weights to generate superior risk adjusted returns
for our investors. Investors should have 21BDMMF as an alpha generating tool in their core portfolio.

Annexure 1: Our Due Diligence Toolkit
26
• Ex-Post Measures:
Sharpe, Jensen’s Alpha,
Beta, Information ratio,
Volatility
• Ex-Ante Measures:
VaR, Liquidity
management
• Style bias
• Holdings analysis
• Diversification check
• Absolute Performance
• Relative vis-à-vis
benchmark and peer
group
• Outperformance target
• Performance Attribution:
decomposing drivers of
alpha
• Parent history
• Product history
• AUM growth
History Performance
Risk
management
Style
Analysis

Annexure 2: Why Indian market?
27
0
5
10
15
20
25
30
35
40
03 04 05 06 07 08 09 10 11 12
Domestic Savings Rate Unemployment Rate
Despite the fiscal slippage and the recent political turmoil we are long on the Indian economy.
0
2
4
6
8
10
12
14
03 04 05 06 07 08 09 10 11 12
GDP Growth Fiscal Deficit (% of GDP) CAD (% of GDP) Inflation (CPI)
India’s high domestic savings and low unemployment rate is commendable.
India’s GDP growth has fallen in the last couple of years and the government’s fiscal indiscipline too has invited
unwanted attention from the rating watchdogs. But the levers of economic growth are still intact. India has a
large pool of working age population (>50%). Its Service sector enterprises are already thriving in the global
environment. It also boasts of a well developed Capital market structure. If GOI shows some solid intent to deliver
on key reforms measure, the GDP growth can still go north of 7% without much efforts.
Source: Planning Commission
Note: All these are FY ending numbers.

Annexure 3: Market Data
Source: RBI & Bloomberg
-30
-20
-10
0
10
20
30
40
50
0
5000
10000
15000
20000
25000
04 05 06 07 08 09 10 11 12 13
Sensex PE Ratio Annual EPS Growth
Equities
0
20
40
60
80
100
120
140
160
180
200
09 10 11 12 13
Barclays Indian Government Bond Index
Indian Government - Index Value
-100000
-50000
0
50000
100000
150000
200000
04 05 06 07 08 09 10 11 12 13
Equity Debt
FII Net Investment (in INR Crore)
Source: SEBI
0
50
100
150
200
250
300
350
04 05 06 07 08 09 10 11 12 13
FX Position
FX Reserve (USD Billion) USD/INR Spot Rate
Bond markets have given steady gains. Though Equities have been
remained volatile post 2008 but the quality of corporate earnings have
improved in the last of couple of years. Many sector leaders have been
able to expand margins in their recovery course. We have seen that
the inflation numbers have eased in the last quarter. Now a rate cut by
RBI coupled by the formation of a stable govt. at the centre in the next
six months can put markets on a new high.
FIIs have shown tremendous faith in the Indian
markets. Though this hot money inflow has strong
correlation to US Fed’s QE decisions. With tapering
finally in place, we expect this money to flow back to
a certain extent in the near term.
India had a temporary currency crisis in the middle of 2013. It was eventually
controlled by RBI’s intervention in the FX market. However with FX reserves
worth 292 billion USD, the concerns of a fresh BOP crisis are unfounded.

Disclaimer
29
This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources
believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure
of every material fact and terms and conditions and features of 21 Buddha Dynamic Multi Manager Balanced fund (21BDMMF).
The information/data herein alone is not sufficient and shouldn’t be used for the development or implementation of an
investment strategy. It should not be construed as a standalone investment recommendation to any party. All opinions, figures,
charts/graphs and data included in this presentation are as of 31st December, 2013 and are subject to change without notice.
While utmost care has been exercised while preparing this document, 21 Buddha Asset Management Company Limited does not
warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use
of this information. The statements contained herein may include some forward-looking statements that are based on our
current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully
responsible / liable for any decision taken on the basis of this presentation. No part of this document may be duplicated in
whole or in part in any form and/or redistributed without prior written consent of the 21 Buddha Mutual Fund/ 21 Buddha
Asset Management Company Limited. Readers should before investing in the Scheme make their own investigation and seek
appropriate professional advice.
Mutual Fund investments are subject to market risk, read all scheme related documents carefully.
01-Feb-2014, © 21 Buddha 2014 (Saurabh Kumar|  kaashyap.saurabh@gmail.com|+91-8374109195)
Registered Office: Somewhere in Bangalore

21 Buddha Dynamic Multi Manager Balanced Fund

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