Your Gateway to be a part of Indian Equity

Why should an NRI invest in India ?

India, Then and Now
What makes India a Great Investment
Destination ?

Increasing Urbanisation and Metro Culture

 Positive Experience

Telecom Sector

1999 2010

Subscribers (mn) 1.1 584

Tariff ($ per min) 0.19 0.01

Source : TRAI
 Strong Infrastructure Spending
Estimated Investments in Infrastructure 2005-10
Area Total (Rs.in crs)
Power 2,97,300
Roads 2,46,600
Ports 25,000
National Maritime Dev. Program 33,500
Railways 74,900
Pipelines 40,000
Airports 22,800
SEZ 11,600
Irrigation & water supply 46,100
Bus Terminals 900
Urban Infrastructure 63,000
TotalSource: SSKI 8,61,700
Strong Democratic Economy with sustained
High Growth :

One of the fastest growing economies of the World.

The growth momentum is still continued when the Rest of World faces
recession
 Demographic Edge
India to contribute around 25% in Adding Working
population to the world

Addition to working age population by 2010

W orld 314

India 71

Africa* 64

China 44

South East Asia 33

Latin America 31

W estern Asia 17

USA 10

Europe 0

Japan -3 In Millions

* Note: Africa includes a group of 56 countries.

Source: UN, Morgan Stanley Research.
WHAT ARE THE INVESTMENT
OPTIONS AVAILABLE ?
 Investment options available incase of NRI

 NRE FD  NRO FD  FCNR FD  Mutual Funds

8% Less TDS 33%

3% to4% 3% to 4% 15% to 20%
Effective Interest 6 %

Repatriable Tax Free Repatriable Long

Non – Repatriable
Repatriable Tax free Currency fluctuation term Capital Gain –
TDS applicable
risk avoided Tax Free
Why an NRI should invest in Indian Equities ?
Compelling reasons to invest in Indian Equities

 International 
      3 Yrs.      5 Yrs.      7 Yrs.      10 Yrs.
Indices

DJIA (USA) -10.26 -1.04 1.36 -0.61

BSE Sensex (India) 5.5 19.79 25.57 14.26

FTSE 100 (UK) -8.16 -0.28 3.43 -2.21

NIKKIE (Japan) -19.77 -4.36 -0.18 -5.71

Shanghai Composite (China) -14.63 18.74 7.03 1.97

As on 16 July, 2010. Above returns are in CAGR.

 Past Performance

Year Sensex Investment Rs.

1979 100 1 Lac

2010 17955 1.80 Crore

In past 31 years, BSE sensex has given approx. 18.03% Returns

*As on 16 July 2010

• At least 3 recessionary periods

This is in spite of … including the current Global
• Two wars Recession
• At least three major financial scandals • 10 different governments
• Assassination of 2 prime ministers • An unfair share of natural
disasters
Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in future. Please read the offer document carefully before investing.
But People are scared to Invest in Equity?
Or Why do I loose money on India ?
•Long Term Equity Returns is a function of the profitability growth of the
companies which in turn is related to the economic growth

Eco. Growth Demand Co. Profits Returns

Returns in Equities are function of Earnings

or Valuations are a Slave of Earnings

Sensex Vs Sensex Earning

Sensex Sensex
Months
Value Earnings
Jun-91 1,269.91 60.21
Jun-10 17,700.90 839.30
14.86% 14.86%
Co-relation coefficient 0.97

Jan-91 Jan-92 Jan-93 Feb-94 Feb-95 Feb-96 Mar-97 Mar-98 Mar-99 Mar-00 Apr-01 Apr-02 Apr-03 Apr-04 May-05 May-06 May-07 May-08 Jun-09 Jun-10
Price Earning Movement of Reliance Industries Ltd.
R e lia n c e I n d u s t r ie s L t d .
1 4 0 0

1 2 0 0

1 0 0 0 P r o f i t
S t o c k P r i c e
8 0 0

6 0 0

4 0 0

2 0 0

0
03/99

03/01

03/02

03/03

03/05

03/06

03/08

03/09
03/98

03/00

03/04

03/07
WHY SHOULD AN NRI INVEST IN
INDIAN MUTUAL FUNDS ?
 MF Advantages

Portfolio Diversification

Professional Management

Reduction of Risk

Reduction of Transaction Costs

Convenience & Flexibility

Liquidity

Access to Information
 MF Structure in India

Mutual Funds in India follow a 3 tier structure

Sponsor – Promotes/initiates the Mutual Fund
Trust – Created by Sponsor. Guardian of the money
invested by unit holders.
AMC – Business face of the Mutual Fund. Launches
Schemes, manages the funds of investor.

The money invested goes into the trust.

The AMC is NOT the owner of the money invested by unit
holders.
The AMC CANNOT run away with the money invested.
 Invest now in Indian Mutual Funds

• Outstanding Performance

• Established Fund Houses like Reliance,

HDFC, ICICI, Birla, SBI, Sundaram

• Strongly regulated by SEBI

• Easy operation and low documentation

• Zero taxation on investments made for a

period of one year and above in Equity
Funds
Indian Mutual Funds Performance – A snapshot
Amount invested – Rs. 1 mn
DETAILS TENURE
5 yrs 7 yrs 10 yrs 12 yrs

No. of schemes 70 45 25 15

Average Returns 22.18% 32.01% 22.53% 22.54%

Sensex returns 19.79% 25.57% 14.26% 14.67%

Value of Rs. 1 mn. invested

27,22,705 69,86,309 76,28,240 1,14,63,956
(avg returns of Mutual Funds)
Value of Rs. 1 mn. invested In
NRE FD at fixed return of 12,46,182 13,60,862 15,52,969 16,95,881
4.50%**
Value of Rs. 1 mn. invested in NRO FD
13,61,425 15,40,250 18,53,478 20,96,935
at post tax return of 6.365%*

CAGR Returns as on July 16, 2010

*/**NRE/NRO Bank FD return may vary from time to time & may be different with different bank.
 4,045,558 6,191,736

Even a difference of 5% can impact your returns significantly over Long term
 Auto Market Timing through SIP

Source : Capitalmarket Software ; Data since Jan 1988

 SIP Performance of Mutual Fund Schemes

Value of Monthly SIP of Rs. 50000

5 Years 7 Years
Amount Invested Rs. 30,00,000 Amount Invested Rs. 42,00,000

Scheme Name Value % CAGR Value % CAGR

DSP BlackRock Equity Fund -

5,337,693 23.24 11,420,357 28.13
Div
ICICI Prudential Dynamic Plan
4,882,678 19.56 10,497,942 25.74
- Gr

Kotak 30 - Div 4,388,648 15.20 9,040,983 21.52

Reliance Growth Fund - Gr 5,184,087 22.03 11,824,645 29.12

Sundaram BNP Paribas Select

5,359,595 23.41 12,046,635 29.65
MidCap - Gr

Returns as on 31- Aug-10

Value of your SIP Investment @ 15% Returns

SIP for Different Amount/ Different tenure @ 15 % Returns

Years / Amount 15000 p.m 25000 p.m 50000 p.m

5 yrs. 13,10,135 21,83,558 43,67,116

10 yrs. 39,45,297 65,75,495 1,31,50,989

12 yrs. 56,35,438 93,92,397 1,87,84,794

Assuming Sip starts at beginning of every month

The above figures in Rs.
Helps investors to decide an investment amount to achieve multiple goals.
 Do You know what you MISS by not
investing in Equity?

• Equity Returns assumed at 15 %
• FD Returns assumed at 8%
 Fabulous 1 Bedroom Apartment 
at Burj Khalifa 
(Approx 900 Sq. Ft. at 3200 AED per Sq. Ft.)

OR

6 Cars of 2010 BMW 7 
Series
(Average price of Rs. 6300000 per car) 

OR

15 Vacations at Hawai or similar 
destination for 2 
(Average cost per vacation Rs. 25 lacs for 2)

The above is based on investments of Rs. 50000 pm for 20

yrs
The above example/figure is as per the current market price.
01.08.2010
WHAT IS THE TAX TREATMENT
FOR AN NRI ?
Taxation Equity Debt

Short Term Capital Gains 15% As per Slab

10%
Long Term Capital Gains Nil (20% with indexation)

Dividend Income Tax free Tax free

28.325%
Dividend Distribution Tax Nil Liquid Schemes
14.1625%
Debt schemes other than Liquid
TDS

Short Term Capital Gains 15% 30%

Long Term Capital Gains Nil 20%

Financial Year 2009-2010

How an NRI can track his investments
&
Know the Valuation of his investments
Made in India ?
What documents are required
For NRIs for investment in
Indian Mutual Funds ?
 Documentation Required

• PAN Card

• NRE Bank Account

• Know Your Customer ( KYC)

Advisors will Assist you in Processing the above documents

Can NRI from any part of world
Invest in
Any MF scheme in India ?
 Restriction on NRI Investments

In General there are no restriction for

investments on NRIs
Only NRI from few countries do have Restriction
in Investing in Certain Mutual Fund Schemes.
For ex – U.S. NRI’s cannot invest in schemes of
Franklin AMC, Fidelity AMC in India
Advisors can guide you on this.
Do you have Other Investment option available
for NRI ?
 Multiple Offerings under one roof

•Other then India domicile Mutual Funds

•Indian Real Estate

•PMS (Portfolio Management Services)

 Indian Real Estate
•A Unique Indian Real Estate online Platform available to
clients
•Clients can buy properties in more than 160+ projects spread
across more than 25+ cities in the country
•Quality Projects of Leading developers like Unitech, Ansals,
Hiranandani, DLF, Jaypee, Gera, Palacio, Acme, DLF group,
IndiaBulls etc available
•Projects available in Mumbai, Surat, Chennai, Kolkata, Delhi,
Bangalore, Hyderabad, Chandigarh, Pune, Ahmedabad, Goa and
other metro cities in the country
•Due diligence for all the projects done by the team of experts
from NJ Realty
•Clients can plan their Real Estate investments with ease and
can be rest assured about the Legal aspects of the Projects
 Recommendation
●
Fair Value Market, albeit at higher end
●
Think Long Term
●
Do Systematic Investment
●
Balance between Large Cap and Mid Cap
●
Prefer Infrastructure Theme over Broad Market
●
If Economy grows, Corporate Profitability will grow
●
If Profits grow, Stock prices will follow
 Summing up...
•A window to Investments in India
•All Indian Investment product available under one roof
• Mutual Fund
• PMS
• Real Estate
•One stop shop for all investment related queries
•Online transaction features available
•Online access to your valuation report
•Consolidation of you portfolio
•Managed by qualified Investment Advisor
•Operational Support provided
THANK YOU