ABOUT US

o Multi-services financial company with over 2500 business locations across 450 cities in India catering to over 1 million customers o Net worth of over Rs.17bn, and significant unutilized capacity to leverage o Diversified business model across multiple revenue streams like, Retail and Institutional Equities, Commodities, Life Insurance and Mutual Funds distribution, Wealth Management, Investment Banking, Consumer Finance and more o International presence with memberships on the Colombo and Singapore stock exchanges o Adjudged the Best Equity Broker of the Year at the Bloomberg UTV Financial Leadership Awards, 2011, Best Broker-India by Finance Asia in 2008, and Fastest growing large broking house in 2008 by Dun & Bradstreet

IIFL Business Model

Our Service Offerings Equities Insurance Customer Segments Credit & Finance Wealth Management

Asset Management
Investment Banking

How we differentiate ourselves

Managerial Depth Well-capitalized Distribution reach
Promoted by 1st generation professional entrepreneurs Highly qualified and experienced management team Net worth approximately Rs. 17bn Significant unutilized capacity to leverage Present at over 3000 business locations across 500 cities in India Global footprint covers Colombo, Dubai, New York & Singapore

Owner-mindset Technology edge De-risked

The top management is driven by pride and reward of ownership To think and work like an owner is part of organizations DNA

Uniquely placed with proprietary front, mid and back office software Effectively harnessed technology to provide superior customer experience

De-risked and diversified business model across multiple revenue streams Multiple products across all segments of financial services

Current Market Situation

Opportunities & Threats

CORE STRENGTH
o Growth continues to remain highest amongst the world o Domestic consumption remains intact o Favourable demographics will drive productivity & consumption o Dollar carry trade will support flows to India o Continued focus on disinvestment

Source: India CSO

Source: Bloomberg

OPPORTUNITIES

01

Indias underperformance vs Global Equities YTD

Nifty Historical Daily Chart

As on 3rd may, 2011

Nifty trailing PE has corrected sharply from 2SD above its historical average to fair value zone

Source: Bloomberg

OPPORTUNITIES

02

GLOBAL GDP GROWTH

Global GDP will be 10% above its 2007 levels in 2011, and developed markets GDP will cross the 2008 peak in 2011, as per IMF estimates

Demand for key commodities was 2-6% above 2008 peak in 2010
Demand (in mn tonnes) Steel Aluminium Copper Crude Oil (mn barrels)
Source: IMF

2006

2007

2008

2009

2010

Change

from 2008 1219 34 17 85.3 1317 38 18 86.6 1342 40 18 86.1 1251 37 17 85.0 1370 41 19 87.9 2.1% 2.5% 5.6% 2.1%

Source: IMF

OPPORTUNITIES

03

FUND FLOW
Domestic equity MFs have seen inflows for the 4th consecutive month in march YTD, CY2011 inflows have crossed US $1bn

April will be second consecutive month of FII inflows however, monthly run rate of inflows is much lower than in 2010

Source: Bloomberg

Source: Bloomberg

THREATS

01

Inflation: Higher for Longer

Commodity Price Performance (%)
as on 3rd may, 2011

Even as headline inflation has remained sticky around 9% core inflation has accelerated

Source: Bloomberg

Source: Bloomberg

THREATS

02

FDI
Decline in FDI has been across-the-board April - January
FY10
Services Housing & Real Estate Telecom Construction Power Agricultural Services Autos Metals Others Total 3.9 2.6 2.5 2.3 1.3 1.3 1.0 0.4 7.6 22.9

The most worrying part is the continuous decline in FDI

Decline in FDI (US $Bn)

FY11
3.0 1.0 1.3 1.0 1.0 0.0 1.2 1.0 7.4 17.1

Source: Bloomberg

Source: Bloomberg

THREATS

03

Interest Rates: Upward Bias to Remain

Pressure on short-term yields will persist, as interest rates bias remains upwards

Growth is expected to moderate 1ppt in 2011 in EMs as Monetary policy tightens

Source: Bloomberg

Source: Bloomberg

Defining the Landscape of Investment Advisory

o In a market maturing with a plethora of avenues, Investment Advisory is an exclusive service available to the more discerning and select investor. o As an Advised account with individual attention to each investors portfolio and a wide range of sophisticated portfolio strategies, PREMIA Investment Advisory, would warrant an allocation in the core portfolio for any High Net worth Individual.

Direct Broking

Mutual Funds

PMS

NDPMS INVESTMENT ADVISORY

Investors Dilemma
Investors recognize that there maybe opportunities, but might not have the discipline to regularly capture the same The time lag between recognition and execution may be quite significant which could lead to loss of opportunity

Investors may lack

Investors may also not necessarily have accessibility to opportunity

the conviction to act decisively and in a meaningful manner on any opportunity

So when should I invest ?

o Ive found that when the markets going down and
you buy wisely, at some point in the future you will be happy. You wont get there by reading. o Now is the time to buy .

o -Peter Lynch

OUR OBJECTIVE
New opportunities for growth can emerge just about anywhere. Yet it takes an Expert Eye to recognize their true value. Finding the growth in markets is no different.

OBJECTIVE
IIFL PREMIA Investment Advisory would endeavour to achieve superior returns by investing in an optimum mix across equities and aim to deliver above benchmark returns by providing long-term capital growth from an actively managed portfolio.

OUR STRATEGY
STRATEGY o Focus on Absolute Return o Concentrated Holdings o Return Enhancement through Leverage Rebalancing o Surplus Liquidity Management

Portfolio Customization

AGGRESSIVE

BALANCED

SAFE

OUR EXPERTISE
RESEARCH

Research Universe

IIFL PCG Research

Fund Management Research

IIFL Institutional Research

o As a privileged customer of IIFL PReMIA Investment Advisory, you can leverage upon research inputs from IIFLs Forbes acclaimed world class research team o Professional and In-depth, our 3 tranche thematic fundamental research brings out the brightest stock and sector ideas for your portfolio

Quantitative & Qualitative analysis

Portfolio Advice

OUR EXCLUSIVE SERVICE

FEATURES
o Open Ended scheme with no exit load or profit sharing o Medium to long term vision o Increased flexibility with ability to hedge and leverage o Robust back-end systems o Dedicated team of Relationship Managers and experienced Investment Advisors o Focus on Absolute Returns o Audited Reports

Expert Research Client Connect FM Access

Transparency
Customization

Flexibility

IIFL PREMIA INVESTMENT ADVISORY

PEER COMPARISON
Broking
Portfolio Approach Advice Premium Customized Flexible Client Connect Hedging Leverage Transparent Ready tax reports No No No Yes Yes Yes Yes Yes Yes No

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

MF
Yes No No No No No No No No Yes

PMS
Yes No Yes No No No No No Yes Yes

NDPMS
Yes Yes Yes Yes Yes Yes No No Yes Yes

Invest. Advisory
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Corpus (Rs Lacs) 10-25 25-50 50 and above

Fixed Fee (%)

Brokerage (%)

Funding Cost (%) Floating rate linked to mkt Floating linked to mkt Floating linked to mkt

3% 2.5% 2%

0.5% 0.4% 0.3%

1) Fixed fee will be charged upfront 2) Brokerage for Futures will be 0.03%, cash intraday 0.03%, Options Rs.70 3) For detailed Fee Structure please refer Schedules in Account Opening Form 4) Other statutory charges as applicable 5) Brokerage fee as charged by broker e will be charged upfront 2) Brokerage for Futures will be 0.03%, cash intraday 0.03%, Options Rs.70 3) For detailed Fee Structure please refer Schedules in Account Opening Form 4) Other statutory charges as applicable

THANK YOU