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
ж 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 inflation…and protect the purchasing power
of rupee • To allocate idle money…and make your rupee work for you • To get extraordinary returns (& get rich!!)…

Table of Content Why Investment? Methodology ж Modes of Investment Why DPM is better Stock market dreams! Our Investment Philosophy Products Offered Compensation Structure Mutual Fund dreams! Discretionary Portfolio Management .

Risk α 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 ж Stock market dreams! Our Investment Philosophy Products Offered Compensation Structure Mutual Fund dreams! Discretionary Portfolio Management .

I buy on the assumption that they could close the market the next day and not reopen it for five years” . 35% annualized return in last 20 years!! “I never attempt to make money on the stock market.The wealth-creation story of Infosys Technologies Ltd.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 .

Sensex yielded NEGATIVE Inflation-adjusted return  The absolute return of Sensex has been -9.9% in absolute terms .“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.7% whereas Inflation increased by 15.

Table of Content Why Investment? Methodology Modes of Investment Why DPM is better Stock market dreams! Our Investment Philosophy Products Offered Compensation Structure ж Mutual Fund dreams! Discretionary Portfolio Management .

5% on annualized basis. • Only 2 out of 3 equity-based mutual funds managed to outperform the Sensex returns. • Highly regulated industry and too many restrictions curb investment freedom and styles . with negative absolute return.1% on annualized basis. • Around 5% of the total funds have actually been wealth-destructor. • Focus on Relative returns (compared to index) and not absolute returns.Poor performance of Mutual Funds In last 5 years… • Total number of 165 equity-based mutual funds yielded on average return of 7. which has hardly beaten the inflation. Still charges management fees and loads. with average return of 9.

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! ж Discretionary Portfolio Management Compensation Structure .

Long-term Investing + = Medium-term & Short-term Trading Discretionary Portfolio Management .

Table of Content Why Investment? Ж Methodology Modes of Investment Why DPM is better Stock market dreams! Our Investment Philosophy Products Offered Compensation Structure Mutual Fund dreams! Discretionary Portfolio Management .

Construction & Analysis Based on Risk Profile Active Management Portfolio Periodic Evaluation Readjustment Addition & Omission .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.

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 Ж 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! Ж 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 firm’s 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 Ж 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 Ж Compensation Structure Mutual Fund dreams! Discretionary Portfolio Management .

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

Thank You! .