Product: Advisory PMS

Click to edit Master subtitle style Internal presentation for Key Management Personnel (For Internal circulation Only)

4/14/12

What is Advisory PMS?

First product from Investment Advisory basket

Long term equity investment instrument

Passively managed but actively advised (could be thematic)

Introduces next leg of product innovation

Well suited to meet dual objective of client 4/14/12 profitability/performance and revenue generation

Why Advisory PMS?

Increase the product basket for business development team

Build asset management model of recurring revenue

Provide accessibility to other financial needs of the client

Increasing stickiness of the client in the system

Long term positive brand implications

4/14/12

Product Innovation tree

4/14/12

About Advisory PMS

Product Features Multiple Risk Categories Medium to long term view

Research based Access to FM team Focus on absolute return Flexible Transparent fee structure Audited reports

4/14/12

Comparison with Other products

Broking
Execution Advice Premium Customized Flexible Client Connect Hedging Leverage Transparent Ready tax reports Yes No No Yes Yes Yes Yes Yes Yes No

Broker Advice
Yes Yes No No NA Yes Yes Yes Yes No

MF
No No No No No No No No No Yes

PMS
No No Yes No No No No No Yes Yes

NDPMS
Yes Yes Yes Yes Yes Yes No No Yes Yes

Advisory PMS
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

4/14/12

Stock selection process

Multiple research inputs

Quantitative & Qualitative filtration

Portfolio Inclusion

Discussion-> Consent -> Execution

4/14/12

Customer Experience

Relationship team will be given access to new PMS backend software to enable them to access various reports RMs can also request centralized support team for any reports Clients 4/14/12 will be sent quarterly reports summarizing all trades for the quarter

Risk Profiling

We are offering 3 portfolio options

Low Risk Medium Risk High Risk

Client and Relationship manager will jointly agree on the risk profile
4/14/12

Agreed risk profile should be marked

Fee Structure
AUM 10-25 Lacs 25-50 Lacs Fixed Fee 3% 2.5% Brokerage Rate 0.5% 0.4% Funding Charge Linked to market Linked to market

50 Lacs & above 2% 0.3% Linked to market Fixed fee will be charged upfront Brokerage rate for futures at 0.3%, Rs 70 Flat for options No Variable fees Other statuary charges as applicable

Please note that fee structure is quite competitive as compared to other similar products in the market. We are not offering any variable fee structure which is generally one directional. We are also not charging any exit load which is industry practice. Brokerage rate also comes down along with higher corpus. Most importantly, fee structure is quite transparent unlike MFs that charge asset management fee to 4/14/12 NAV

Comparison between fee structures

Structure I Fixed fee of 2% Structure II Fixed fee of 1% + variable fee of 20% w/o watermarking Structure III Fixed fee of 1% + variable fee of 20% with watermarking 4/14/12

Target Clientele

Investors looking at longer term wealth creation objective Investors looking at participating in investment decision making process Passive investors who would want to monitor their portfolio more closely
4/14/12

We should target

Existing clients in the system not generating enough yield in last 6 months

Prospective clients who fits advisory profiling

Clients met by our sales team in past 18 months not interested in trading

Large relationships difficult to be managed locally

4/14/12

Product Champions

Will be one point contact for all advisory related queries in the region Will be responsible for identifying advisory potential clients from current client base and assisting in conversion of the same Will work as a link between the centralized team and zone for all updates related to advisory services Will assist sales team in identifying right clients for the product and close deals Will be responsible for driving advisory sales for the existing team in different areas/regions
4/14/12

Account opening Process

We will send account opening kits to respective regional heads & products champions. Account opening kit will include following Advisory PMS agreement Trading & Demat account LAS account opening form

All duly filled account opening forms should be sent to Eshwars team in Mumbai Thane Office
4/14/12

Support

FM team will travel to all regions for product training & meet clients Online support conference calls through Webinars and

Local support through Product Champions Regular newsletters from the FM team to share with clients 4/14/12

For any assistance

4/14/12