PRIVATE WEALTH MANAGEMENT

Structured Products Ideas

May 2016
These products can be exited post 1 year (minimum lock-in period)
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Protected Call (55% Coupon) - Salient Features

This is a Flat Market Coupon product
Principal is protected up to 18.33% fall in Nifty from its Contingent Level
The product can be used as a Portfolio Renovation tool.

92.96% historical probability* of the product yielding maximum returns

97.64% historical probability* of the product yielding better than FD returns

99.97% historical probability* of the product yielding positive returns

This product offers a IRR of ~13.95%#

*Historical probability is calculated considering 1164 Days rolling Nifty returns of last 10 years.
#
IRR is calculated assuming product coupon to be 55%
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Protected Call (55% Coupon) Payoff Scenarios

Key Terms & Specifications Payoff Table Pre Tax IRR * 13.95%
Underlying Nifty
Final Fixing Nifty
Capital Guarantee Principal is not protected at maturity Levels ^ Performance Product Returns
Tenor (days) 1225
Initial Fixing Level Trade Date Nifty Level 9840 20.00% 55.00%
Contingent Level 104% of Initial Fixing Level rounded to the next higher 9020 10.00% 55.00%
multiple of 100 Contingent 8200 0.00% 55.00%
Final Fixing Level June 27, 2019
8036 -2.00% 49.00%
Nifty Performance (NP)(Final Fixing Level/Contingent Level)-1 Initial 7850 -4.27% 42.19%
Contingent Coupon 54% to 55%
Decay Multiple(DM) 3 7708 -6.00% 37.00%
If Final Fixing Level is at or above Contingent Coupon 7544 -8.00% 31.00%
Contingent Level 7380 -10.00% 25.00%
Payoff
If Final Fixing Level is less than Max(-100%,(Contingent 7216 -12.00% 19.00%
Contingent Level Coupon + NP*DM))
7052 -14.00% 13.00%
Payoff Chart 6888 -16.00% 7.00%
6724 -18.00% 1.00%
6642 -19.00% -2.00%
6560 -20.00% -5.00%
6396 -22.00% -11.00%
6232 -24.00% -17.00%
6068 -26.00% -23.00%
*Pre-Tax IRR is calculated assuming coupon to be 55%
^Initial level is assumed as 7850

Notes: Terms and specifications of the product are subject to change.

Debentures are non principal protected, Unlisted and unrated in nature
Fee Structure: Upfront 1% to 3.0% plus service taxes
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Protected Call (55% Coupon) Investment Rationale

Historical 1164 Day Rolling Returns - Back Testing*

Particulars Total
No. of Observations (Total Observations : 3650) 3,650
No of times product has delivered 55% returns 3,393
% of observations product has delivered 55% returns 92.96%
No of times product has delivered positive returns 3,649
% of observations product has delivered positive returns 99.97%
^Source: NSE
*Back testing done with Contingent Levels
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Nifty Accelerator Plus (80% Coupon) Salient Features

The Product offers 80% absolute coupon if final Nifty level rises by 12% from Contingent Level and
16% from its Initial level.
The Product offers an accelerated PR of 792% for every 1% rise in Nifty from its contingent level,
up to 12% rise in Nifty after which the coupon is capped at 80%
The product can be used as a Portfolio Renovation tool.

75.62% historical probability* of the product yielding 80% coupon

This product offers an IRR of ~19.14%#

*Historical probability is calculated considering 1164 days rolling Nifty returns of last 10 years.
#
IRR is calculated assuming product coupon to be 80%
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Nifty Accelerator Plus (80% Coupon) Payoff Scenario

Key Terms & Specifications Payoff Table Pre Tax IRR * 19.14%
Underlying Nifty Nifty
Capital Guarantee Principal is not protected at maturity Final Fixing Product
Performanc
Tenor (days) 1,225 Levels ^ Returns
e
Initial Fixing Level Trade Date Nifty Level
Final Fixing Level June 27, 2019 13120 60.00% 80.00%
Nifty Performance (NP) (Final Level/Contingent Level) 1
Contingent Coupon 10660 30.00% 80.00%
79% to 80%
(CC)
9840 20.00% 80.00%
104% of Initial Fixing Level rounded to the next higher
Contingent Level
multiple of 100 9184 12.00% 80.00%
Participation Rate (PR) 783% to 792%
Decay Multiple (DM) 1.25 9020 10.00% 64.17%
If Final Fixing Level is
above Contingent Level
MIN (CC, (NP*PR) - 15%) 8856 8.00% 48.33%
Payoff
If Final Fixing Level is at or 8692 6.00% 32.50%
MAX(-100%, (NP*DM) - 15%)
below Contingent Level
8610 5.00% 24.58%
8364 2.00% 0.83%
Payoff Chart 8282 1.00% -7.08%
Contingent 8200 0.00% -15.00%
Initial 7850 -4.27% -20.34%
7380 -10.00% -27.50%
6970 -15.00% -33.75%
6560 -20.00% -40.00%
* Pre-Tax IRR is calculated assuming coupon to be 80%
^ Initial Fixing Level is assumed as 7850
#The product return is calculated assuming Contingent Coupon of 80%, Contingent level to
be 104% of initial level (i.e. 8200), Participation Rate of 791.67% and Decay Multiple of
1.25

Notes: Terms and specifications of the product are subject to change. Debentures are not
principal protected, not listed and not rated in nature
Fee Structure: Upfront 1% to 3.0% plus service taxes
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Nifty Accelerator Plus (80% Coupon) Investment Rationale

Historical 1164 Day Rolling Returns - Back Testing*

Particulars Total
No. of Observations (Total Observations : 3650) 3,650
No of times product has delivered 80% returns 2,760
% of observations product has delivered 80% returns 75.62%
No of times product has delivered positive returns 3,330
% of observations product has delivered positive returns 91.23%
^Source: NSE
*Back testing done with Contingent Levels
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Nifty Accelerator (66% Coupon) Salient Features

The Product offers 66% absolute coupon if final Nifty level rises by 12% from Contingent Level
and 16% from its Initial level.
The Product has a Flat Market Coupon of 21%

The Product offers Principal Protection till -10%

The Product offers an accelerated PR of 375% for every 1% rise in Nifty from its contingent level,
up to 12% rise in Nifty after which the coupon is capped at 66%
The product can be used as a Portfolio Renovation tool.
75.62% historical probability* of the product yielding 66% coupon

98.33% historical probability* of the product yielding positive returns

This product offers an IRR of ~16.3%#

*Historical probability is calculated considering 1164 days rolling Nifty returns of last 10 years.
#
IRR is calculated assuming product coupon to be 66%
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Nifty Accelerator (66% Coupon) Payoff Scenario

Key Terms & Specifications Payoff Table Pre Tax IRR * 16.3%
Underlying Nifty Nifty
Capital Guarantee Principal is not protected at maturity Final Fixing Product
Performanc
Tenor (days) 1,225 Levels ^ Returns
e
Initial Fixing Level Trade Date Nifty Level
Final Fixing Level June 27, 2019 13120 60.00% 66.00%
Nifty Performance
(Final Level/Contingent Level) 1 9840 20.00% 66.00%
(NP)
Contingent Coupon 9184 12.00% 66.00%
66%
(CC)
104% of Initial Fixing Level rounded to the next higher 9020 10.00% 58.50%
Contingent Level
multiple of 100
Participation Rate 8856 8.00% 51.00%
375%
(PR)
Decay Multiple (DM) 2.1 8692 6.00% 43.50%
If Final Fixing Level is at 8528 4.00% 36.00%
or above Contingent MIN (CC, (NP*PR) + 21%)
Payoff Level Contingent 8200 0.00% 21.00%
If Final Fixing Level is MAX(-100%, (NP*DM) +
Payoff Chart below Contingent Level 21%) 8036 -2.00% 16.80%
Initial 7850 -4.27% 12.03%
7708 -6.00% 8.40%
7544 -8.00% 4.20%
7380 -10.00% 0.00%
6970 -15.00% -10.50%
6560 -20.00% -21.00%
* Pre-Tax IRR is calculated assuming coupon to be 66%
^ Initial Fixing Level is assumed as 7850

Notes: Terms and specifications of the product are subject to change. Debentures are not
principal protected, not listed and not rated in nature
Fee Structure: Upfront 1% to 3.0% plus service taxes
Issuer - ARGFL PRIVATE WEALTH MANAGEMENT

Nifty Accelerator (66% Coupon) Investment Rationale

Historical 1164 Day Rolling Returns - Back Testing*

Particulars Total
No. of Observations (Total Observations : 3650) 3,650
No of times product has delivered 66% returns 2,760
% of observations product has delivered 66% returns 75.62%
No of times product has delivered positive returns 3,589
% of observations product has delivered positive returns 98.33%
^Source: NSE
* Back testing done with Contingent Level
 PRIVATE WEALTH MANAGEMENT

Risk Factors
Investors should have prior knowledge or experience in equities and products with pay offs linked to variable benchmarks or should take
steps to familiarize themselves with these financial products. They must understand the product and its associated risks before making the
decision to invest so as to be sure that the product suits their investment objective and financial profile. Market Risk The return of the
portfolio is linked to performance of the underlying Equity Index. The fluctuations in the equity market can be significant. The value of the
portfolio, prior to the Redemption and Maturity Date, may be affected by a number of factors, interest rates and time remaining to
maturity. Potential Loss of Interest Income It is possible that the prospective investor may receive zero interest over the Investment period
if the closing price of Nifty as defined in the product is less than the opening price. Credit risk of the Issuer The debentures are unrated.
Liquidity Risk Pre-termination of the portfolio by the investor prior to the Redemption and Maturity Date is possible subject to prevailing
market terms and conditions and approval of the issuer. There is no guarantee of what amount the investor would receive, if the portfolio
were liquidated prior to the Redemption and Maturity Date. Early Termination Risk If the portfolio is terminated prior to the Redemption
and Maturity Date, the value of the portfolio is exposed to prevailing market conditions. As a result, by terminating the portfolio prior to
the Redemption and Maturity Date, the investor may receive an amount much lower than the initial amount invested. Event Risk The
trading on Nifty in futures & options is subject to certain event risks including but not limited to certain events such as Market Disruption,
Settlement Disruption, Insolvency, Delisting, Merger and Nationalization. Calculation Agent may in such case adjust the terms at its sole
discretion to reflect the new market conditions. This may even include redeeming the portfolio prior to the Redemption and Maturity Date.
If there is a stock split, issue of bonus shares or other event which changes the number of issued shares of the underlying in the basket or
the composition of the basket, the calculation agent may adjust the contract terms, at its sole discretion, to reflect the market conditions.
This may even include redeeming the portfolio prior to the Redemption and Maturity Date.
 PRIVATE WEALTH MANAGEMENT

Risk Factors
The Equity Index linked debentures, even if listed, may not be marketable or may not have a market for sale at all;
The returns of the Structured Debentures, primarily linked to the S&P CNX Nifty Index as the Reference Asset and even otherwise, may
be lower than prevalent market interest rates or even be nil or negative depending entirely on the movement in the underlying index
and futures values as also that over the life of the Debentures (including the amount if any, payable on maturity, redemption , sale or
disposition of the Debentures) the Debenture holder may receive no income/return at all or negative income /return on the Debentures,
or less income/return than the Debenture holder may have expected, or obtained by investing elsewhere or in similar investments;
In Equity Index Linked Debentures, in the event of any discretions to be exercised, in relation to method and manner of any of the
computations including due to any disruptions in any of the financial markets or if for any other reason, the calculations cannot be made
as per the method and manner originally stipulated or referred to or implied, such alternative methods or approach shall be used as
deemed fit by the issuer and may include the use of estimates and approximations. All such computations shall be valid and binding on
the Debenture-holder investor, and no liability therefore will attach to the issuer of Equity Index Debentures/ARFSL/ARWAL;
There is a risk of receiving lower than expected or negligible returns or returns lower than the initial investment amount in respect of
such Equity Index Linked Debentures over the life and /or part thereof or upon maturity, of the Debentures;
At any time during the life of such Debentures, the value of the Debentures may be substantially less than its redemption value. Further,
the price of the Debentures may go down in case the credit rating of the Company goes down;
The Debentures and the return and/or maturity proceeds hereon, are not guaranteed or insured in any manner by the Issuer of equity
index linked debentures;
The Issuer of equity index linked debentures or any person acting on behalf of the Issuer of equity index linked debentures, may have
an interest/position as regards the Portfolio Manager and/or may have an existing banking relationship, financial, advisory or other
relationship with them and/or may be in negotiation/discussion with them as to transaction of any kind which maybe in direct conflict
with the issue of such Debentures;
The Issuer of equity index linked debentures or any of its Agents, have the legal right to invest in the units offered herein, and such
investment do not contravene any provision of any law, regulation or contractual restriction or obligation or undertaking binding on or
affecting the investor, and/or its assets;
If Nifty cannot be observed on any observation day due to any reason, the Issuer may use the next available trading day as an
observation day;
 PRIVATE WEALTH MANAGEMENT

Risk Factors
Value obtained in case of early redemption will be at the discretion of the Issuer and early redemption may lead to a significant loss
irrespective of Nifty levels. ARFSL / ARWAL or the Issuer will not be responsible for this loss in anyway whatsover;
Risks pertaining to the equity Index Based linked debentures portfolios:
Performance of the Reference Index will have a direct bearing on the performance of the portfolio. In the event the Reference Index
is dissolved or withdrawn by the Index Provider, such as India Index Services and Products Ltd. (IISL) (for NSE Nifty), BSE for BSE
Sensex etc., the Debenture Trustees upon request by the Issuer may modify the terms of issue of Debentures, so as to track a
different and suitable index and appropriate intimation will be sent to the Debentureholders;
Tracking errors are inherent in any equity index linked security and such errors may cause the equity Index Linked Debentures to
generate returns which are not in line with then performance of the Reference Index or one or more securities covered by / included
in the Reference Index. Such variations, referred to as tracking error, are expected to be around 2% per annum, but may vary
substantially due to several factors including but not limited to:
Any delay experienced in the purchase or sale of securities due to liquidity of the market, settlement and realization of sales
proceeds and the registration of any security transfer and any delays in receiving cash and scrip dividends and resulting delays in
reinvesting them; or
The Reference Index reflects the prices of securities at close of business hours;
The Index Provider undertakes a periodic review of the scripts that comprise the Reference Index and may either drop or include new
securities as per his own discretion;
The portfolio will be investing in debentures linked to S&P CNX Nifty Index and these debentures are not sponsored, endorsed, sold or
promoted by IISL. IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event
shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to
purchase or sale or otherwise of such product benchmarked to such index;
 PRIVATE WEALTH MANAGEMENT

Risk Factors
Specific Risk Factors & Disclosures pertinent to Structured Notes like Equity / Index Linked Debentures and Securitized Debt
Instruments:
Presently, secondary market for such securitized papers is not very liquid. There is no assurance that a deep secondary market will
develop for such securities. This could limit the ability of the portfolio to resell them. Even if a secondary market develops and sales
were to take place, these secondary transactions may be at a discount to the initial issue price due to changes in the interest rate
structure;
Securitized transactions are normally backed by pool of receivables and credit enhancement as stipulated by the rating agency,
which differ from issue to issue. The Credit Enhancement stipulated represents a limited loss cover to the Investors. These
Certificates represent an undivided beneficial interest in the underlying receivables and there is no obligation of either the Issuer or
the Seller or the originator, or the parent or any affiliate of the Seller, Issuer and Originator. No financial recourse is available to the
Certificate Holders against the Investor's Representative. Delinquencies and credit losses may cause depletion of the amount
available under the Credit Enhancement and thereby the Investor Payouts may get affected if the amount available in the Credit
Enhancement facility is not enough to cover the shortfall. On persistent default of an Obligor to repay his obligation, the Seller may
repossess and sell the underlying Asset. However many factors may affect, delay or prevent the repossession of such Asset or the
length of time required to realize the sale proceeds on such sales. In addition, the price at which such Asset maybe sold maybe
lower than the amount due from that Obligor;
 PRIVATE WEALTH MANAGEMENT

Risk Factors
The Structured Notes like the Index linked, Non Convertible Debentures, in which a portion of the funds of the portfolio are proposed to
be invested in, are high risk, high return instruments as they may be highly leveraged. A small movement in returns generated by the
underlying index could have a large impact on their value and may also result in a loss;
The issuer of Equity index linked debentures or any of its Agents, from time to time may have long or short positions in Nifty indices,
futures and options (hereinafter referred to as Reference Assets) (and other similar assets), they may act as an underwriter or distributor
of similar instruments, the returns on which or performance of which, may be at variance with or asymmetrical to those on the
Debentures, and they may engage in other public and private financial transactions (including the purchase of privately placed investments
or securities or other assets). The forgoing activities of the Issuer of Index linked Debentures or any of its Agents and related markets
(such as the foreign exchange market) may affect the value of the Debentures. In particular, the value of the Debentures could be adversely
impacted by a movement in the Reference Assets, or activities in related markets, including by any acts or inactions of the Issuer of Index
linked Debentures or any of its Agents.
 PRIVATE WEALTH MANAGEMENT

THANK YOU

Disclaimer:- The information herein was obtained from various sources; we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes an
offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities ("related investments"). ARFSL/ARWAL and its
affiliates may trade for their own accounts as market maker / jobber and/or arbitrageur in any securities of this issuer(s) or in related investments, and may be on the opposite side of public
orders. ARFSL/ARWAL, its affiliates, directors, officers, and employees may have a long or short position in any securities of this issuer(s) or in related investments. ARFSL/ARWAL or its
affiliates may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any entity mentioned in this report. This research
report is prepared for private circulation. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this
report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should
understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or
value may rise or fall. Past performance is not necessarily a guide to future performance. Foreign currency rates of exchange may adversely affect the value, price or income of any security or
related investment mentioned in this report.