Evolution of Products

2 | Mirae Asset Financial Group Overview | Mirae Asset Financial Group

June 2017
New Emerging Asset Class - ETF

3 | Mirae Asset Financial Group Overview | Mirae Asset Financial Group

June 2017
 Mirae Asset Financial Group
4 | Corporate Overview
FEE War will intensify

$1 bn in one month

$100 bn

5 | Mirae Asset Financial Group Overview | Mirae Asset Financial Group

June 2017
CASHBACK ETF

Source : CBNC – 24 Mar

2019
Mirae Asset Financial Group
6 | Corporate Overview
Net Investable Assets of HNWI : $55 trillion

Annual Growth Rate : 4.7% till 2021

$ trillion
80
70
14.2 69.6
60
50 55.4 Absolute Growth
40
30
20
10
0
Y2016 Y2021
Source : EY wealth management outlook — 2018

7 | Mirae Asset Financial Group Overview | Mirae Asset Financial Group

June 2017
UHNI Wealth

At a Glance
The number of
UHNWIs in
India is set to
rise by 39% to
2,697 by 2023

Source: GlobalData WealthInsight

KnightFrank- The Wealth Report

Mirae Asset Financial Group

8 | Corporate Overview
Emergence of New Business Models

Diversified Traditional
Independent
Product Wealth
Wealth Advisors
Specialist Managers

Boutique Holistic Wealth

Family Offices
Finance Houses Managers

9 | Mirae Asset Financial Group Overview | Mirae Asset Financial Group

June 2017
Business models (BM), their positioning and amount of assets under management (
AuM)

Source : EY wealth management outlook — 2018

10 | Mirae Asset Financial Group Overview Mirae Asset Financial Group
| June 2017
Seeking Returns : Blend Style
Advisers continue to favor a blend of active and passive management style

Source : 2018 Trends in Investing Survey

Financial Planning Association (FPA) | Journal of Financial Planning | FPA Research and Practice Institute™

Mirae Asset Financial Group

11 | Corporate Overview
 Relationship Connect

100% 2.7 3.8

9.4 8.9
90% 19.7
80% 37.1
70% 48.2
43.3 49.6
60% 42.7
50%
40%
30% 60.2
48 47.3
20% 41.4 37.5
10%
0%
Profile Develop Execute Manage Report
Wealth Manager Led Hybrid Automated / Self Service

Source : Capgemini Financial services Analysis, 2017; Capgemini Global HNW Insights Survey 2017
12 | Mirae Asset Financial Group Overview Mirae Asset Financial Group
| June 2017
Asset Allocation works : Average Holding Years for
Investors
(1997-2016)
5 4.6

4 3.5
3.06
3

0
Equity Fixed Income Asset Allocation

Source: DALBAR’s 23rd Annual Quantitative Analysis of Investor Behavior, 31st Dec 2016.

Mirae Asset Financial Group

13 | Document name | DD/MM/YYYY
Event Risks
Event Risks - India
Election Proposed in
S.No Elections Term Completing on No. of Seats
month

1
LOK SABHA 03.06.2019 Apr-May 2019 543+2

Assembly Elections:
Election Proposed in
S.No State Term Completing on No. of Seats
month

1 SIKKIM 27.05.2019 Apr-May 2019 32

2
ARUNACHAL PRADESH 01.06.2019 Apr-May 2019 60

3 ODISHA
11.06.2019 May-Jun 2019 147

4 ANDHRA PRADESH 18.06.2019 May-Jun 2019 175

5 HARYANA 02-11-2019 Sep-Oct 2019 90

6 MAHARASHTRA 09-11-2019 Sep-Oct 2019 288

7 JHARKHAND 05.01.2020 Nov-Dec 2019 81

8 NCT DELHI 22.02.2020 Jan-Feb 2020 70

9 JAMMU & KASHMIR* 16.03.2021 Jan-Feb 2021 87

Mirae Asset Financial Group

Do “Event Risks” Remain A “Risk” In The Long Term?
39,000 Union
Govt plans to infuse
F19
Sensex Performance with Key Events USD 32bn into PSU
budget
36,000 banks

33,000 Satyam Fed hikes rate for

1st time in 9 years
30,000 NDA Win predicted
Lehman by survey
27,000 Bankrupcy

24,000 QE
Eurozone Discontinuatio GST
rolled out
21,000
QE3
Brexit
PM
18,000 Asian Vajpayee
Barings financial resigns Stock
15,000 Bank crisis market UPA I wins
scandal
PM Gowda
12,000
resigns UTI
LTCM crisis Multiple
9,000 crises Corruption
UPA Win for Demonetizatio
2nd Term n & Donald
6,000 NDA wins Trump Wins

3,000 Terrorists
QE1 attack QE2
PM VajpayeePM Gujral Kargil Terrorists attack in Mumbai QE taper
- resigns resigns War the US worry
1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017
* Sensex Performance trend and key events, Source: Morgan Stanley

Mirae Asset Financial Group

Believe in Long Term
GDP to Market Cap Journey:
Capturing the next USD 2.5 trillion opportunity
India
5
5.0 Structural growth drivers:
7 yrs • Favorable Demographics will support
>2x
2.6
2.3
consumption growth
• Infrastructure & Reforms will improve
productivity
FY18 FY25E FY18 FY25E
GDP (USD t) Mcap (USD t)

Japan China US 5.3

4.9 5.1
8
1. yrs
3x 4
7 yrs 3.6 3.6
yrs
2.9 2x 2.8
2.5 2.7
2.3 9x

1.4

0.4

1987 1994 1980

1987 1989
1994 2005 2009 2005 2009 1980 1988 1980 1988
GDP (USD t) Mcap (USD t) GDP (USD t) Mcap (USD t) GDP (USD t) Mcap (USD t)
*Assumed Market Cap to GDP at 100%
Source: World Bank

Mirae Asset Financial Group

India A Huge Growth Opportunity

India GDP on a secular growth path

India GDP (in USD trillion) 5

6 yrs 5.0
yrs
8
yrs
56 yrs since 3
Independence

1
0.5
0
2025 E
1950 2001 2006 2014 2020E 2024E

• 1st trillion took 56 years, 2nd – 8 years

• India’s structural and cyclical factors seem to be falling in place, should lead to acceleration in growth
• Composition of Growth is changing in favour of service sector

Source for above graphs: RBI, MOSPI, Bloomberg

Mirae Asset Financial Group

India set to become the 5th largest economy by 2020
Country-wise ranking by GDP in USD

Rank 1980 1990 2000 2010 2017 2020E

1 USA USA USA USA USA USA

2 Japan Japan Japan China China China

3 Germany Germany Germany Japan Japan Japan

4 France France UK Germany Germany Germany

5 UK Italy France France UK India

6 Italy UK China UK India France

7 Canada Canada Italy Brazil France UK

8 Brazil Spain Canada Italy Brazil Brazil

9 Spain Russia Mexico India Italy Italy

10 Mexico Brazil Brazil Canada Canada Canada

11 Netherlands China Spain Russia Russia S. Korea

12 China India S. Korea Spain S. Korea Russia

13 India Netherlands India Australia Australia Australia

Source: IMF, Bloomberg

Mirae Asset Financial Group

Upcoming Investment Opportunities
Big Upcoming Opportunity : Retiree’s

Mirae Asset Financial Group

Mirae Asset Financial Group
Market Outlook
Time spent in markets is more important than timing the
markets
16% (Rs. 360,956)

14%
15.3%
12%
(Rs. 124,764)
10%
(Rs. 62,051)
8% 10.7%

6% (Rs. 34,193)

4% 7.7%
(Rs. 19,695)
2% 5.1%
2.8%
0%
All days invested Missed 10 days Missed 20 days Missed 30 days Missed 40 days

• Timing the market is very difficult

• It can be clearly seen, that as the holding period increases, return profile improves
Source: Bloomberg, Daily returns from Jan 1990 to Sep 2018 for investment of Rs. 10,000/-.

26 Mirae Asset Financial Group