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As on 31st May 2016

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Objective & Investment Philosophy

The key objective is to deliver consistent return over

Objective the long term, from a portfolio of companies selected
on basis of well defined objectives and good corporate
track record.

Business Model
1) Strong Business Model
2) ROE > 20% (Most Cases) Approach
1) Long Term Approach
Consistency 2) Low Churn Low Expense
1) Sales / EBIDTA / PAT growth (3-5 years)
2) Stable or improving margins (3-5 years) Diversification
1) Sectorally well diversified max 20 stocks
Focus on 2) 50:50 Large cap and Midcap companies
1) Asset Light Models
2) Domestic Play Exposure
1) Single Stock exposure < 10%
Visibility 2) Single Sector exposure < 30%
1) Earnings outlook over next 3 years
2) Predictable business model

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Why the focus on MIDCAPs

Difference between NIFTY MIDCAP 100 P/E and NIFTY 50 P/E

6

-2 As expected
Midcap P/E
-4 has improved
Since
-6 inception of
portfolio
-8
Aug-05

Aug-07

Aug-08

Aug-09

Aug-11

Aug-12

Aug-14
Aug-03

Aug-04

Aug-06

Aug-10

Aug-13

Aug-15
Feb-04

Feb-05

Feb-07

Feb-09

Feb-11

Feb-14

Feb-16
Feb-03

Feb-06

Feb-08

Feb-10

Feb-12

Feb-13

Feb-15
Nov-05

Nov-06

Nov-09

Nov-11

Nov-12

Nov-13

Nov-15
Nov-03

Nov-04

Nov-07

Nov-08

Nov-10

Nov-14
May-03

May-04

May-05

May-07

May-08

May-10

May-12

May-14
May-06

May-09

May-11

May-13

May-15

May-16
The above graph represents the P/e difference between the CNXMCAP P/E &
NIFTY P/e over the last 12 years. The MidCaps had a great rally when the diff.
in P/e reached 6 from Minus 7.7. After Jan08 crash, this difference has largely
remained in the negative territory. We 3had utilized this as an opportunity over
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PMS Performance & Allocation
"Portfolio Plus" Returns as on 31st May 2016 Sectors % Allocation
Annualised Inception 18th Auto 5.3%
1 Month 3 Month 1 Year 3 Years Oct 11 Agrichem 6.4%
Capital Goods 17.6%
PMS 5.5% 22.1% -1.1% 15.4% 16.6% Consumer Durables 8.5%
Finance 25.9%
NIFTY MIDCAP 100 0.7% 15.0% 0.8% 19.3% 14.7%
FMCG 4.7%
NIFTY 50 4.0% 16.8% -3.2% 10.9% 11.0% Logistics 8.7%
Pharma 10.4%
Note : Performance since inception is net of all expenses of the initial client.
Textiles 12.2%
Note: Two companies demerged from currently listed Max Financial Services Ltd in Cash & Debt 0.3%
January 2016 have come in the demat. Valuation have been adjusted for the same in Total 100.0%
month of May 2016.

Calendar Year Wise Performance

120%
100% PMS Portfolio Plus NIFTY 50 NIFTY MIDCAP 100
80%
60%
40%
20%
0%
-20%
2012 2013 2014 2015 Since Inception
Note: Performance is net of all expensesFor
of Private
the initial client
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Low Churn Enhance Client Profitability
Trade Statistics Since Inception (18th Oct 2011 to 31st May 2016) (4 and Half Year Plus)
BEST Top 10 Stocks Booked Analysis
Company Days Held % Return Booked Total Nos of stocks booked 52
SE 513 125.1% Average Return 23%
YB 1116 118.1% Average Holding Period (days) 352
BJ 495 110.3%
LL 552 91.5% Nos of stocks booked in Profit 36 Overall
MF 408 88.2% Average Profit Booked 40% Winning Ratio
PL
BC
482
421
87.3%
72.1%
Average Days Held on Profit booked 401
70%
BY 573 71.7% Nos of stocks booked in Loss 16 of the stocks are positive
DV 419 55.4% Average Loss Booked -17% both Booked and Open
BI2 324 49.7% Average Days Held on Loss booked 243

Bottom 5 Stocks Booked Portfolio Turnover %

Unique Ideas
Company Days Held % Return Booked Turnover Ratio (Avg Last 3 years) 73.5%
CO 591 -36.0%
JC
TB
306
207
-35.5%
-32.5%
Yearly Cost (Excluding statutory Charges)
AMC Fees p.a.
%
2.0%
61
Stock ideas invested into
BF 123 -28.2% Brokerage cost (Avg last 3 years) 0.4%
both Booked and Open
KV 390 -27.2% Total 2.4%

BEST 5 Stocks Currently Holding Total Absolute Returns Since inception

Company Days Held % Gain PMS Portfolio Plus (Net of all expenses) 103.2%
HI 1379 227.2% NIFTY MIDCAP 100 Returns 88.6%
LH 1653 121.7% NIFTY 50 Returns 62.0%
LA 1008 92.6% * Stock re-invested at lower level
AL 662 48.9% Note: Above is the list of stocks which are completely
UL 197 36.0% booked in profit/ loss.
Note: Two companies demerged from currently listed Max Financial Services Ltd in January 2016 have
come in the demat. Valuation have been adjusted for the
For Private same in
Circulation month of May 2016.
Only
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Product Features

Minimum investment Rs. 25 lakhs.

Portfolio: 15-20 STOCKS, diversified across sectors.

Balance between large caps and mid sized companies.

Themes offered Domestic plays & Asset Light companies.

Most of the companies have adequate analyst coverage.
Most of the stocks will be part of core portfolio.

Type of instruments Equity & Equity Related Instruments, Fixed Income

Instruments, Cash & Cash Equivalent

Benchmark NIFTY MIDCAP 100.

Fee Structure A fixed AMC of 2% p.a. will be charged.

Upfront for the 1st year and from 2nd year this will be debited each quarter pro- rata on the
portfolio value.

Profit Sharing 15% profit sharing above a hurdle rate of 15% p.a. (Post expenses & Pre tax)

Brokerage 0.25% (Equity Delivery)

Other Charges Taxes & Statutory charges as applicable, IL&FS Custodial Charges

Exit Load 0.5% for the 1st year.

Fund Manager Rajesh Samtani

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Benefits & Support

Benefits
Dedicated Web Login for client to monitor portfolio.
A relationship manager to cater to investment needs
Constant monitoring of the portfolio
Audited statement at year end for tax filing purpose.

Support
Back office customer service desk to address client queries.

Product Support Back Office Support

Name : Mayur Shah Name : Archana Bhor

Tel : 022 4001 3942 Tel : 022 4001 3878
E-MAIL : pmsoperations@rathi.com
Email ID : mayurpshah@rathi.com

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 Specific Disclaimer

All Investment are subject to Market Risk.

Please read the risk factors before investing in the same.
Past Performance is not necessarily indicative of likely future performance

Registration Details

PMS registered under : Anand Rathi Advisors Ltd.

PMS Registration Number : INP00000282.
Custodian : IL&FS Securities Services Ltd.

OFFICIAL ADDRESS : 4 th Floor , Silver Metropolis, Jaicoach Compound Opposite Bimbisar Nagar,
Goregaon(East), Mumbai - 400 063. India
BOARD LINES : +91 22 4001 3700

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Disclaimer:-This report has been issued by Anand Rathi Advisors Limited (ARAL), which is regulated by SEBI. 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"). ARAL 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. ARAL, its affiliates, directors, officers, and employees may have a long or short position in any securities of
this issuer(s) or in related investments. ARAL 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.

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