Market is back with a Bang ! Invest in right product & sit tight till your investment tenure Earn up to 12% p.a. by Investing in Inventory Finance Opportunity

1. Trending MF Schemes
Investment Gyan
Inspiring Investment Story
A monthly Newsletter to manage your personal finance
INVESTMENT KNOWLEDGE CENTER
Month ending July 2022
GST collection, at 1.49
Lakhs Crore in July 22
The July revenue figure is 28% higher than
the revenues in the same month last year of
₹1.16 Lakhs crore
What's inside ? M S Mani, partner at Deloitte India, said to ET, “The new normal
of Rs 1.4 lakh crore seen during the past few months,
accompanied by the fact that all major states have shown a
growth in excess of 15 per cent over the last year, indicates that
economic activities have stabilised and the many of the leakages
have been plugged."
Mani further added in his article, that the uptick in GST
collections over the past few months seen across major states
would provide some comfort to states that have just come out
of the guaranteed compensation period and are concerned
about their revenue mobilisation abilities. “For business, there is
expected to be an enhanced focus on audits and assessments
as the GST authorities at both the Central and State level work
on improving GST collections further."
As quoted in our past issues - India is sitting in the sweet spot !
.....read more !
www.navkarfinancial.com
01

2. 02
Market is back with a Bang !
Invest in right
product & sit
tight till your
investment
tenure
Mr. Sandip Shah
Managing Director
Navkar Financial
Sensex, Nifty log highest July-month return in
23 years; is the bull run back ??
As we have always said in our
communications that Equity is great wealth
building product if you can manage your fear
& greed ! It simply menas , buy right and sit
tight
As many as 20 Equity Funds delivered over
10 per cent return to investors in July.
Despite Dollar became strong and overall
panic gripped our Globally, our market did
extremely well.
As bulls made a smart comeback on Dalal
Street, the benchmark equity indices BSE
Sensex and NSE Nifty managed to register
their highest return for July month in 23
years. The 30-share index Sensex climbed
8.58 per cent, or 4,551.31 points to 57,570.25
on July 29 from 53,018.94 on June 30, 2022.
Likewise, the 50-share index NSE Nifty gained
8.73 per cent to 17,158.25 during the month.
Prior this, both of these indices posted their
biggest July month gain of around 10 per cent
in 1999.
We maintain our stand to stay invested in
Equity funds. There are some good
opportunities in Banking and consumption
theme, which should be grabbed according
to your Risk appetite. Still, Asset Allocation is
the right strategy.....and remember -
SIP Zaroori Hai !
Read more about some of the great
investment ideas and more, in this
newsletter. Stay Fit and Stay Happy.
Best Wishes
www.navkarfinancial.com

3. 03
SIP is the most
powerful
investment
tool
Rupee Cost averaging is an important tool of
mutual funds that help investors to get
maximum value for their invested money in
volatile scenario. It is an auto mode-
investment which help to sort the dilemma of
whether to keep investing when markets play
their games. Investors generally tend to
speculate on the right time to invest. But it is a
known fact that no one can predict where the
market is going to move-upwards or
downwards. Rupee-cost averaging has been
the answer to such a scenario.Hence it is the
best investment method to control or manage
your investment emotions of Fear & Greed.
With SIP, an investor invests a specific amount
at regular intervals irrespective of the
investment’s share (unit) price. By investing
regularly, the investor takes advantage of
market dips without worrying about when
they’ll happen. Their money buys more units
when the price is low and fewer when the price
is high, which can mean a lower average cost
per unit over a period of time.
Chapter 1 :
Investment
Gyan
Unit price is rising scenario :
Rs.1000 is invested in a mutual fund on the first of each month. The investor in this
example would methodically acquire 244.53 units at an average cost of Rs.24.54 each
www.navkarfinancial.com

4. Averaging reduces the risk factor associated with lumpsum investing. For example we all
are familiar with the scenario where investors who invested their money at one go
when market was at its peak in the year 2007-2008 what their plight was when market
crashed drastically in the year 2008. With RCA, investors get a buying opportunity when
the NAV falls as he will be able to accumulate more units of the mutual fund scheme.
RCA frees investors from the onus of monitoring stock positions on a daily basis which
would be the scenario in case of lumpsum investment or VCA.
It serves as a cushion against the downward trend of the market.
Investor no longer needs to look at dates, markets or anything.
Investor no longer needs to monitor external factors like economy condition, interest rates,
inflation etc.
It is a disciplined approach towards investing regularly in mutual funds.
Advantages of Systematic Investment Plan (SIP)
04
Unit price falling scenario:
Rs.1000 is invested in a mutual fund on the first of each month. The investor in this
scenario would have bought 204.87 units at an average cost per unit of Rs.24.91.
SIP should be used for all your Financial Goals : like - Kids education, Retirement Planning,
Vacation Planning etc
You need to discuss with our expert counselor to find the most suitable SIP matching your Risk profile.
We are available for such discussion anytime during the working hours ( Monday to Saturday).
#SIPZAROORIHAI
www.navkarfinancial.com

5. 05
Chapter 2 : Market Indicators
For month ending July 2022
www.navkarfinancial.com

6. 06 www.navkarfinancial.com

7. 07
Note : This is not a single scheme Fund Performance. This is an Avg. performance of all the funds in same
category across the MF Industry. However, performance may be different for different scheme under same
category. Please check with your advisor for the TOP performing funds in above category for the last one year.
Source - Morning Star as on 31st July 2022
www.navkarfinancial.com

8. 08
The Schemes and their result shown on the table above are the real values. However, this article is not an endorsement or advice for
investing in these schemes, directly or indirectly. This story is for inspiration and is not real. This is in no ways a recommendation for any
scheme also there is no guarantee that similar performance will be repeated in future also. Investor should choose the SIP schemes after
evaluating their risk suitability or investment targets. Mutual Fund investments are subject to market risks read all scheme related
documents carefully
Chapter 3 :
Inspiring
Investment Story
This is the true story of Mr. Aiyyar who became debt free within 8
years for a big liability of 75 Lakhs towards his Home Loan :
Around 8 years back in 2014, Mr Aiyyar bought his own house and took a Loan of Rs 75 Lakhs with an EMI of
Rs 74500 at the age of 40. At the time of taking loan, his net monthly Income was Rs. 1.5 lakhs. The total
loan tenure was 15 years.
While talking about his investments, he mentioned that his monthly household expenses is Rs 45000/-;
after adding his EMI of Rs 74500/- his total monthly expenses was Rs 1,19,500/= . He wanted to invest
Rs20000/- per month to achieve some of his welath Goals.
However we presented him a target to achieve Financial Freedom in terms of complete pay off to his
liability as soon as possible.
Hence we suggested him to start a Good EMI , known as SIP ( Systematic Investment Plan)
Mr. Aiyyar choose to select Equity Mutual Fund for higher Risk Reward proposition. And see the result ! His
Risk paid due reward (see the table below) for the latest value of his monthly SIPs started in 2014 :
After 8 years of Home loan, EMI been paid he had an outstanding Loan Amount of Rs. 37 Lakhs, which
was cleared in 8 years instead of 15 years just by saving 20000 per month thru SIP Investment. After
clearing the Home Loan this month he has allocated the EMI amount towards SIP. Consequently, he
increased his SIP to Rs.1 Lakh per month, now. That's called good EMI
When we see our client becoming debt free and they feel very confident of their life
ahead.. It makes us more Happy and confident. It boost our confidence to 10X.
of Mr. Aiyyar
www.navkarfinancial.com

9. Earn up to 12% p.a. by Investing in Inventory
Finance Opportunity
Platform’s in-house Business Development (“BD”) and Credit teams put in an incredible amount of effort to
identify ‘best-in-class ‘partners (“Purchasers”) and list an opportunity.
The BD team identifies Purchasers through multiple channels and initiatives, which include proprietary
relationships, investment bankers/brokers, referrals, etc.
Referrals from existing Purchasers and venture capital (“VC”) investors constitute more than 60% of the total
opportunities evaluated.
At a preliminary stage, Platform’s BD and Credit teams take a holistic view of the following initial filtering criteria:
Sourcing of Investments :
Know How
Due Diligence and Approval Process :
Profitability or Cash Availability Rate for at least 6 months :
The counterpart should either be profitable or have cash and cash equivalents that can cover at least the next 6
months of operations, taking the monthly cash burn and fixed repayments into consideration (for e.g., appropriate
debt service coverage ratio, lower debt/equity ratio, etc.)
Investor Backing :
The Purchaser should be backed by a well-regarded VC firm or an institutional investor
In-house Analysis/Review of Financial and Legal Health :
Zero tolerance policy for any irregularities in the financial reporting or legal diligence
Inventory Utility and Quality :
Ensure that the inventory to be financed is well-received in the market with proven robust demand
Inventory Conversion Cycle :
To ensure timely recovery of dues, the conversion cycle of inventory to cash or days of inventory should not
exceed the deal tenure.
A. Together, the BD and Credit teams undertake a detailed due diligence exercise, which evaluates three
key aspects for any Purchaser and the underlying asset transaction:
(i) assessing the Purchaser’s corporate profile;
(ii) analysis/review of the Purchaser’s financial and legal health; and
(iii) inventory quality review
Conduct a detailed assessment and due diligence of Purchaser’s track record, founders/promoters, management team
(CXOs), investors, and an in-house analysis of legal & financial health
Perform a detailed credit check, which includes (but not limited to) identification of any red flags in financials, key contracts,
existing lender documents, pending litigation, history of defaults, regulatory concerns, etc.
Ensure that the inventory to be sold on deferred consideration basis is ‘mission critical’, ‘revenue generating’ or ‘core-to-
business’ for the Purchaser.
Continue on next page...
09
Chapter 4 :
Inventory Financing
www.navkarfinancial.com

10. Undertake reference checks with the Purchaser’s key investors or shareholders, industry peers & competitors,
original equipment manufacturers (“OEM”), and key customers
Negotiate the consideration payment tenure, commercial terms, and additional security measures or a credit
enhancement package (which usually entails a combination of security deposit, escrow mechanism, post-dated
cheques, promoter guarantee, hypothetical etc.)
Undertake physical verification of the inventory and the Purchaser’s office (on a case-to-case basis)
10 www.navkarfinancial.com
B. Once the due diligence process is complete, the opportunities are presented to an Approval
Committee for a final go-ahead.
C. On an average, out of the 100 opportunities sourced and evaluated by the BD and Credit teams, only
20 are approved by Approval Committee and listed on the platform.
Investments in opportunities involving
sale of assets on deferred consideration
basis are structured through a special
purpose vehicle (“SPV”) (set up as a
limited liability partnership (“LLP”) firms),
which holds the title to the identified
inventory and enters into a sale and
purchase agreement
For each opportunity, a separate LLP is
set up, in which the investors contribute
their funds and become a limited partner
in this LLP or a salaried partner of the LLP
The LLP enters into a sale and purchase
agreement for the underlying inventory
with the Purchaser, where the Partner
agrees to pay the purchase consideration
for the assets within the agreed term
Designated partners of the LLP assume
responsibility for reporting and
compliance of the LLP and the cost
associated with such activities is covered
in the fee charged by Platform.
1.
2.
3.
4.
Minimum investment of INR 10,000/-
Plus
Tenure ranging from 1-6 months
Up to 12% pre-tax yield
The Purchaser is contracted to pay
the consideration against the identified
inventory purchased at the end of the
tenure.
1.
2.
3.
4.
A). Offers two options to its investors -
invest as a:
i) Post-tax investor: returns earned by the
investors (as LLP partners) are not taxable
in the hands of the ii) Investors, as taxes
are levied at the LLP level.
ii) Pre-tax investor: returns earned by the
investors (as LLP partners) are taxable at
the applicable tax slab rate in accordance
with their tax bracket.
Investment Structure : Minimum Investment,
Liquidity/Exit, and Returns
Tax Implication for Resident
Investors

11. Call us : +91-90990-10402
www.navkarfinancial.com | sandipshah@navkarfinancial.com
We provide complete support to you in terms of fulfilling all your
investment objectives or financial plans, by way of motivation -
correct calculations and more !
Just call at 9099010402 and Fix a formal discussion session with us
we are here to help you.
Disclaimer : Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. The NAVs of the
schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the
interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual
Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of
distributable surplus.
Note : We are an AMFI registered Mutual Fund Distributors. We work closely with our customers to help them achieve their Financial
dreams by way of savings motivation, correct estimations and quick investment execution. We help you select the SIP according to your
risk profile and investment tenure.
D-35, Shivanand Appartment, Near HP Petrol Pump, K.K. Nagar, Ghatlodia,
Ahemdabad
11 www.navkarfinancial.com