Xumit Capital

Investment Management firm

Presentation on

Discretionary Portfolio Management services

Presented by:
Sumit Singh, Founder & Managing Director, Mob: (+91) 997 199 6276, Email: sumit.singh@xumitcapital.com

Website: www.xumitcapital.in

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Our Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Why investment?
To beat inflationand protect the purchasing power
of rupee To allocate idle moneyand make your rupee work for you To get extraordinary returns (& get rich!!)

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Our Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Risk Return

Vehicle

Risk/Return

Private Equity
Common Stocks Trading Common Stocks Investing Hedge Funds Mutual Funds Corporate Bonds Government Bonds/FDs

Extremely High
Very High Very High High Moderate Low Very Low
Balanced blend of Risk-Reward Ratio

Savings Account

Risk-free

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Our Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

The wealth-creation story of Infosys Technologies Ltd.

35% annualized return in last 20 years!!

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years - Warren Buffett

The wealth-destruction story of Educomp Solutions

-47% annualized return in last 6 years!!

The main purpose of the stock market is to make fools of as many men as possible
- Bernard Baruch

Inflation is the crabgrass in your savings

30%

During last two-and-half years

20%

(Y-o-Y % change)

10% 0% Jan -10% -20% -30% Feb Mar Apr May Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2011

2012

2013

Sensex

Inflation (WPI)

In 2 out of 3 months, Sensex yielded NEGATIVE Inflation-adjusted return

The absolute return of Sensex has been -9.7% whereas Inflation increased by 15.9% in absolute terms

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Our Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Poor performance of Mutual Funds

In last 5 years Total number of 165 equity-based mutual funds yielded on average return of 7.1% on annualized basis, which has hardly beaten the inflation. Only 2 out of 3 equity-based mutual funds managed to outperform the Sensex returns, with average return of 9.5% on annualized basis. Around 5% of the total funds have actually been wealth-destructor, with negative absolute return.

Focus on Relative returns (compared to index) and not absolute returns. Still charges management fees and loads. Highly regulated industry and too many restrictions curb investment freedom and styles

Disillusion or Confusion???

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Our Investment Philosophy Products Offered

Mutual Fund dreams!

Discretionary Portfolio Management Compensation Structure

Long-term Investing

+ =

Medium-term & Short-term Trading

Discretionary Portfolio Management

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Our Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Long-term Investing
Sector Analysis

Cyclical & Non-cyclical

Stock Screening

Strong & Weak

CNX 100

Based on Value & Growth investing

Stock Analysis

Intrinsic Valuation

P/E Band & Relative Valuation

Portfolio Selection, Construction & Analysis

Based on Risk Profile

Active Management

Portfolio Periodic Evaluation

Readjustment

Addition & Omission

Methodology #1

Discounted Cash Flow Valuation of the equity based on Free Cash Flow to Equity (FCFE) method done on Proprietary Valuation Models Accumulation and distribution based on relative position of price to Intrinsic Value Line

Methodology #2

Trailing and Forward Price-Earning Band as a tool to evaluate relative undervaluation and overvaluation of the market

Medium & Short-term Trading

Mechanical Systems Discretionary

Trend-following systems Mean reversion systems

Judgmental calls Event-driven trading

Arbitrage

Risk-free returns from market discrepancies

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Our Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Mutual Fund Investment Philosophy Long-term investing

Hedge Fund Long-term investing Positional trading Swing trading Day trading Fundamental Analysis Technical Analysis News-based Equity Markets Debt Markets Commodity Markets Currency Markets Cash Futures Options Arbitrage Long Short Neutral Volatility-based

Investment Style

Fundamental Analysis Equity Markets Debt Markets

Financial Markets

Financial Instruments

Cash

Directional Bias

Long-only

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Investment Philosophy

To reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions Ability to deliver non-market correlated returns Objective consistency of returns and capital preservation rather than magnitude of returns Value-driven investment in CNX 100 stocks Risk Management due diligence with emphasis on Net Exposure and Gross Exposure Non-naked directional bets with Options hedging Prudent position-sizing and money management

Our Strength

Clarity of Investment philosophy Risk management infrastructure Identifiable source of alpha Quality of firms investment team Portfolio transparency Quality of reporting and communications

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Products Offered
Product Name XC Alpha Seeker Series A XC Alpha Seeker Series B XC InvesTrader Series A XC InvesTrader Series B XC Finwiz Rider Features Discretionary Investment Portfolio Non-Discretionary Investment Portfolio Discretionary Investment Portfolio Non-Discretionary Investment Portfolio Discretionary Trading Portfolio Discretionary Trading Portfolio Discretionary Trading Portfolio High Risk High Return Moderate Risk Moderate Return Risk/Return Low Risk Low Return

Table of Content
Why Investment? Methodology

Modes of Investment

Why DPM is better

Stock market dreams!

Investment Philosophy Products Offered Compensation Structure

Mutual Fund dreams!

Discretionary Portfolio Management

Compensation Structure
Management Fee 2% per annum of the asset value

charged at the beginning of quarter

Performance Fee 20% of the profit generated above 15% in the year
Other charges:

charged at the end of quarter

I. Demat account opening charges II. Audit charges III. Transaction brokerage

Thank You!