FEBRUARY 2015 Monthly Meet

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UNDERSTANDING THE INDIA GROWTH
STORY AND REFORMS BETTER

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 We are hearing talks about India Growth Story and
Reforms
 Lets try to understand what some of these reforms are
and what their impact is going to be in the short and
long term

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 UNDERSTANDING GST

 GST or Goods & Services Tax is being hailed as a

major taxation reform
 It is to be implemented from 1 Apr 2016
 It is estimated that GST implementation will add to
1-2% to GDP growth over the years to come

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 UNDERSTANDING GST

 Currently both Central and State Govt charge multitude of

taxes like VAT, Sales tax, entry tax, excise etc
 Each State has adopted its own structure of VAT with
different set of rules and paperwork
 Due to separate rules and taxation structure, India
functions as 28 countries for a business perspective, where
goods sent from one state to other are having
documentation as good as exports and imports
 What will GST Do
 Simplify Procedures, increase compliance, lower rates
 Replacement of various taxes at state and central level
with a common Goods and Services Taxes applicable
across the country

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GST EXPERIENCE OF OTHER COUNTRIES

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UNDERSTANDING GST IMPACT THROUGH
EXAMPLE OF LOGISTICS SECTOR

 Currently Mumbai Delhi NH 8 is one of

the busiest highways in the country
 It passes through 5 states and 20 toll
station booths
 The truck has to stop at all the
checkposts for documentation purpose

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HOW WILL GST IMPACT THIS SCENARIO

 GST would mean lower stoppages for freight operators

 Lower stoppages would mean faster transportation
 Which in turn will lead to lower freight costs
 Efficient Logistics would add to India's export
competitiveness (will help Make in India)
 Rationalisation of Rules, simplification of procedures
and electronic tolls will further add to productivity

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SUMMARY OF SAVINGS FROM GST

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 This is the impact on only one sector
 Faster movement of goods means lower costs
 GST will also reduce the paperwork and scope for
corruption
 GST will act as a huge boost to the manufacturing
sector overall

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 DIGITAL INDIA

 Governement is working on Digitisation of India

 More than Rs. 1 Lac Cr to be spent over the next 5
years for this initiative
 The idea is to have high speed broad band
connectivity at the taluka level across the country

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PM PERSONALLY MEET HEAD OF TECH COs

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 DIRECT BENEFIT TRANSFER

Impact Cut in subsidies Cut in Corruption

More people linked to Banking (Jan Dhan)

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HOUSING FOR ALL

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Source KPMG

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HOUSING REQUIREMENT

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HOUSING REQUIREMENT

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FSI OF INDIAN CITIES FAR LOWER THAN
GLOBAL STANDARDS

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Plan for 24 x 7 power for all by 2019
Hugely important for Make in India

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CHANGING TAXATION RULES AFFECTING BUSINESS

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SPEEDY JUSTICE DELIVERY

 Quick Resolution of Pending cases

 Diktat has been issued to various
govt departments to withdraw trivial
cases slowing down the system
 Govt is party to atleast 50% cases
pending in the courts
 Govt is working on National
Litigation Policy which will
effectively reduce cases filed by govt
in future

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 Govt is creating a conducive environment for busines by
taking host of these initiatives
 All these actions put together will result in a massive shift
in businesses in India
 Not only is the government making it easy to do business,
but with 24 x 7 power, housing for all, Digital India etc
creating an ecosystem in which businesses can flourish at a
faster pace
 Even the govt ministers are clear that India's economy is
poised for a strong growth ahead
 We need to communicate the same effecctively to our
investors

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INDIA WILL BE GROWTH ENGINE OF THE WORLD

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 INDIA - DEMOGRAPHIC DIVIDEND

 We are going to reach peak of our demographic dividend in

the next 20-25 Years
 India will be having a working age population of around 80-
90 Cr by 2040!!

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While other major economies have decreasing working
population and increasing dependant population

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HOW MANY OF YOU HAVE NOT SEEN THE MOVIE ??

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 The biggest ever Hit of Bollywood with around Rs. 650 Cr
Business
 Do you Know how many tickets of PK have been sold
 Around 2.60 Crore
 Meaning Less than 2% of our Population has seen the movie
If this goes up to only 10%, we will see movies doing 2000-
2500 Cr business
 Rather than 100 – 200 Cr business currently

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 PK FIRST BOLLYWOOD FILM TO SEE
RS 100 CRORE E-TICKET BUSINESS

CAN YOU CONNECT IT WITH

DIGITAL INDIA ??
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SO WHY ARE WE LISTENING TO ALL THIS ??

Of course if you want to participate in this

growth, you need to invest in Equity and
benefit from Power of Compounding for
Long Term

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 PERFORMANCE OVER LONG TERM OF
SOME EQUITY INVESTMENT GURUS

Investment Investment CAGR

Guru
Period Duration (Years) Investor S&P 500
Warren Buffett 1965 – 2011 46 20.0% 9.3%
Charles Munger 1962 – 1975 13 19.8% 5.0%
Buffet Partnership 1957 – 1969 12 29.5% 7.4%
Peter Lynch 1977 – 1990 13 29.0% 13.0%
John Templeton 1954 – 1992 38 16.0% 12.0%
Source : Super Investors of Graham & Doddsville, Arthveda

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PERFORMANCE OVER LONG TERM OF SOME EQUITY
INVESTMENT GURUS - ACTUAL RETURNS

Investment Multiples (Growth in

Investment CAGR
Guru Duration times)
Period
(Years) Investor S&P 500 Investor S&P 500
Warren Buffett 1965 – 2011 46 20.0% 9.3% 4389x 60x
Charles Munger 1962 – 1975 13 19.8% 5.0% 11x 2x
Buffet Partnership 1957 – 1969 12 29.5% 7.4% 22x 2x
Peter Lynch 1977 – 1990 13 29.0% 13.0% 27x 5x
John Templeton 1954 – 1992 38 16.0% 12.0% 282x 74x
Source : Super Investors of Graham & Doddsville, Arthveda

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 CLOSER HOME – MF PERFORMANCE

Investment CAGR Multiples (Growth in times)

Investment
Scheme Duration
Period Investor Sensex Investor Sensex FD @10%
(Years)
Reliance Growth Fund 1995 – 2014 19 25.2% 11.2% 76x 8x 6x
HDFC Equity Fund 1995 – 2014 20 21.2% 10.2% 47x 7x 7x
Sundaram Select Micap Fund 2002 – 2014 12 32.0% 19.5% 31x 9x 3x
Birla SL Frontline Equity Fund 2002 – 2014 12 25.0% 19.1% 16x 9x 3x
Kotak Select Focus Fund 2009 – 2014 5 16.2% 10.4% 2x 2x 2x
Source : NJ Internal

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 SOME IMPORTANT
POINTS ON BUSINESS

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IMPORTANT CHANGE IN PARTNER CATEGORY BROKERAGE

 Partner will now get additional trail brokerage as per his

category on all the eligible transactions where trail
brokerage is applicable
 Earlier logic was the partner used to get additional trail only
on the future transactions brought by him post the change
of Category.
 This change is effective from 1 Jan 2015
 Partner earnings will be revised upwards post the change

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 EXAMPLE
 A Partner is classified as Silver on 1 Jan 15
 As per Silver Category he is supposed to get additional 5% trail on his
transactions
 Suppose he had logged a transaction in Sep 2013 on which Yr 2 trail rate was
0.60%
 Old System
 Partner would get trail of 0.63% for transactions logged on or after 1 Jan 15
and would continue to get trail of 0.60% on old trasactions
 New System
 Partner would get trail of 0.63% trail on new and previous transactions too in
the scheme

Important
 The Markup will be applicable on the base rate of the scheme on the date of
transaction processing and not on current rate of the scheme
 Ex – If trail rate of scheme in Sep 13 was 0.50% and in Jan 15 is 0.60%, partner will
get 0.525% for old transactions and 0.63% for new transactions

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PARTNER CATEGORY

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 ADDITIONAL RAP CONTEST SCHEMES FOR FEB 15
AMC Date Eligible Schemes Additional RAP
Axis Midc ap Fund
Axis Equity Fund
1 Dec 14 – 31 Mar 15
Axis Axis Inc ome Saver Fund 5,000 RAP for Rs. 10 Lac business mobilised
(Extended)
Axis Foc used 25 Fund
Axis Triple Advantage Fund
BNP Paribas 1 Jan 15 – 31 Mar 15 BNP Long Term Equity Fund (ELSS) 4,000 RAP for every Rs. 5 Lac Business mobilised
DSP Blac kroc k TIGER Fund 4,000 RAP for every Rs. 5 Lac Business mobilised
DSP Blac kroc k 1 Jan 15 – 31 Mar 15
DSP Blac kroc k Tax Saver Fund 2,000 RAP for every Rs. 5 Lac Business mobilised
HDFC Equity Fund
HDFC Infrastruc ture Fund 5,000 RAP for Rs. 10 Lac business mobilised
HDFC Mid Cap Opportunities Fund
HDFC MF 15 Jan 15 – 31 Mar 15 HDFC Capital Builder Fund
HDFC Small & Mid Cap Fund
15,000 RAP for Rs. 15 Lac business mobilised
HDFC Core & Satellite Fund
HDFC T axsaver Fund
Religare Invesc o Contra Fund
Religare Invesc o Growth Fund
Religare Invesc o 1 Jan 15 – 31 Mar 15 15,000 RAP for Rs. 15 Lac business mobilised
Religare Invesc o Midc ap Fund
Religare Invesc o Taxsaver Fund
Sundaram Selec t Midc ap Fund
Sundaram Selec t Mic ro Cap Series 7
Sundaram SMILE Fund
Sundaram Infrastruc ture Advantage Fund
Sundaram 1 Oc t 14 – 31 Mar 15 Sundaram Selec t Small Cap - Series II 15,000 RAP for Rs. 15 Lac business mobilised
Sundaram World Brand Fund Series 3
Sundaram Top 100 - Series IV (RGESS)
Sundaram Long Term T ax Advantage Fund - Series I (10 years)
Sundaram Value Fund Series II
T ata Balanc ed Fund
15 Dec 14 – 28 Feb 15
Tata T ata Ethic al Fund 5,000 RAP for Rs. 10 Lac business mobilised
(Extended)
T ata Tax Saving Fund

Please refer contest T&C for details

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 ADDITIONAL RAP IN SIP

Additional RAP in SIP submitted in

in all Equity MF schemes of HDFC MF
15 Jan 15 - 31 Mar 15

Bonus 60RAP Points

for every Rs. 1,000 SIP

And in multiples Rs. 1,000

till max. Rs. 10,000
over and above the base RAP points
 Only on processed SIP transactions till 31 Mar 15
 Subject to proportionate clawback

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If you think you have missed the rally in the market,
Don't worry it hasn't even started yet!!

AIM HIGHER

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N EW PRO DUCTS IN

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 RELIANCE RETIREMENT FLYER

RELIANCE RETIREMENT FUND

(CONCESSIONAL) FLYER

SPECIFICATIONS:
 Size: Half of A4
 Color: Multi colour
 Language: English-Gujarati,
English-Hindi, English-Marathi
 Partner details in single colour

COST:
R 1000 / 2000 qty

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 15 YEARS OF MF FLYER

SPECIFICATIONS:
 Size: A4
 Paper: 130 GSM
 Color: Multi colour
 Language: English
 Partner details in single colour

COST:
R 1500 / 500 qty Updated till December - 2014

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 NEW UPDATED - BOOKLET

SPECIFICATIONS:
 Size: Half of A4 (16 Pages)
 Paper: 170 gsm glossy
(Envelope: 100 gsm glossy)
 Color: Multi colour
 Language: English
 Multi colour partner details
printed ON STICKER

COST:
R 750 / 25 qty &
R 1250 / 50 qty

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 NEW UPDATED - MARS FLYERS

SPECIFICATIONS:
 Size: Half of A4
 Paper: 80 gsm
 Color: Multi colour
 Language: English
 Partner details in single colour

COST:
R 650 / 500 qty &
R 1000 / 1000 qty

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PBC AV

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ARE YOU READY FOR THE DUBAI TRIP
WITH YOUR FAMILY??

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DUBAI AV

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ARE YOU READY FOR THE SWITZERLAND TRIP
WITH YOUR FAMILY??

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SWITZERLAND AV

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THANKS

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