PRESENTATION BY RELIGARE

ASSOCHAM, April 2008

S M A R T

• SYNCHRONIZED

• MEASURABLE

• ADAPTABLE

• RISK DIVERSIFICATION

• TIME BOUND

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ASSET ALLOCATION STRATEGIC INTENT

• CAPITAL PRESERVATION

• DYNAMIC & PRUDENT ASSET MIX

• CUSTOMIZED SOLUTIONS FOR VARIED INVESTORS

• WIDEST RANGE OF ASSET CLASS TO SUIT CLIENTS INVESTMENT GOALS

• BACKED BY ROBUST RESEARCH TEAM & PROCESS

Our Asset Allocation Strategic Tools

Equity

Arts Initiative Commodity

Institutional
Mutual Fund
Broking
REL

Investment
Insurance
Banking

Wealth Structured
Management Product

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 Wealth Management – Demographical Classification
Demographic shifts imply a rapid and significant growth in the demand for wealth
management services in India

What is feeding the boom?

Urbanisation - growing middle class and larger
disposable income with the young
A large proportion of the younger population are
expected to come out of universities over the next 10 –
20 years
The BPO boom and cultural changes

What does it mean for the financial services

industry?

Large number of investors requiring investment advice

Investors will demand sophisticated products and
diversification
More wealth management players. Most existing
financial institutions are already, or are in the process of
offering wealth management services. There have also
been a number of new entrants
The number of wealth managers is expected to grow
Source “India Economics” Rohini Malkani Citigroup

Indian Household - Classification Based on Income

Distribution of households across urban and

rural regions reveals that the income growth
is much faster in the urban centres.

Majority of the growth in “seekers”

(households earning INR0.2-0.5m) is
expected to come in the urban centres.

The “deprived” in urban centres, are

expected to fall significantly by 2015.

Shift of “aspirers” to “seekers” is the most

prominent aspect of the urbanization trend.

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 Indian Infrastructure – A Growth Story

Drivers of growth

“We need an investment of about US$300bn in the next seven to eight years to
realize our ambition to provide our country with an infrastructure which is equal to
the economic and social challenges that we face” Manmohan Singh, Indian PM

Investment to GDP is set to touch 40% over the next 5 years.

Indian Infrastructure - Huge Opportunity

(In Rs.billions)
ENERGY 2,120.00
AIRPORTS 400.00
RAILWAYS 3,000.00

PORTS 500.00

HIGHWAYS 2,200.00 URBAN INFRASTRUCTURE

1,974.00

POWER GENERATION
4,100.00

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 Real Estate Mutual Funds & Real Estate Investment Trusts
(REIT) Global Perspective

REMF, are allowed to invest only in securities of realty companies.

Real Estate investment trusts (REITS) are a type of real estate mutual funds.

They are Allowed to invest directly in property, mostly commercial buildings.

They are Listed on stock exchange globally

They get a share of the rentals by offering high Dividends: 85 to 90%.

REITS are well suited for those looking for regular Inflation adjusted income.

VCF

Risk Return Profile - REIT Vs REMF

Real Estate Fund REIT

Investment Horizon 1-3 years 5-7 years

Volatility High Medium to high

Returns High Medium to high

Investment Horizon in the REIT is higher as compared to Real Estate Funds.

Beta of Real Estate fund is above one when co-related to the Index.

REIT has Negligible coefficient of correlation with the Market Index.

Returns in the Real estate fund can be very high over a short to medium term

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REIT – Indian MF Industry Perspective: Quantum Leap

Low MF Market Percentage Penetration Vs other nations (5-10 times more.)

Means to increase participation

Possible through products where people feel a level of safety.

Indian mindset is geared towards real estate as a safe option.

Large growth of Retail & Institutional participation in AMC

REIT MF might give a quantum leap to the MF industry.

REMF benefit For Investors

Robust growth in Real Estate Sector providing good investment opportunity.

Barriers are high prices and transactions costs.

Real Estate Mutual Fund - easier/beneficial for average investor

Diversification advantage

Liquidity & Transparency

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Future for Indian Real Estate

Expected investment of US$ 16 billion in next 5-6 years

Creation of vibrant secondary market & price finding mechanism

REMF as alternate/ cheaper source of capital to the industry.

Growth from US$12 bn(2005) to US$ 90* billion by 2015.

*As forecasted by Merrill Lynch

Possible challenges for Real Estate MF

Lack of organized valuation system for real estate property.

Market volatility & risk associated in short term horizon

Robust Asset Allocation Module

Regulatory guidelines :

o Liquidity (Minimum Lock-in – Ensure Stable Returns)

o Special Tax incentive to promote REMF culture.

o Overseas Investments and Tax Treatment

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About Us

Religare is one of the leading integrated financial services institutions of India,

backed by a blue chip promoter pedigree and a proven track record. Our
businesses are broadly clubbed across 3 key verticals, the retail, institutional and
the wealth spectrum, catering to a diverse and wide base of clients spread across
the length and breadth of the country. Structurally, all business are operated
through various subsidiaries held through the holding company Religare
Enterprises Limited.

The company offers a diverse bouquet of services and through it’s consolidated
network reach, Religare is present in more than 1300 locations across more than
400 cities and towns.

As part of its recent initiatives the group has also started expanding globally.
Religare has also successfully partnered with Aegon, one of the global leaders to
launch Life Insurance, Mutual Fund and Pension products in India and with
Macquarie Bank, for a wealth management joint venture.

The vision is to build Religare as a globally trusted brand in the financial services
domain and present it as the ‘Investment Gateway of India’. All employees of the
group ceaselessly strive to provide financial care, driven by the core values of
diligence and transparency.

Thank You