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P N VIJAY P N VIJAY FINANCIAL FINANCIAL SERVICESSERVICES

MUTUAL FUND ADVISORY

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CONTENTS

– About PNVF– Mutual Fund: An Introduction– Mutual Fund Advisory Services– Service Features

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ABOUT US

Promoted in May 1990, PN Vijay Financial Services (P) Ltd (PNVF) is a SEBI-Authorized Portfolio Manager.

P N Vijay, the promoter of PNVF is a well known Investment Analyst with an experience of over 30 years in the financial sector.

Started career at SBI, moved on to ANZ Grindlays, and served as VP and Country Head, Merchant Banking at Citibank.

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QUESTIONS BEFORE INVESTING

EQUITY DEBT

WHICH SECTORS,WHICH COMPANIES,HOW MANY COMPANIES TO HOLD,HOW MUCH TO INVEST IN EACH COMPANY

HOW TO TRACK AND TACKLE INTEREST RATE RISK AND CREDIT RISK

Client need time, expertise and information to answer these questions. But most of the times we are short of all these resources. He need someone who is professional and possess all the resources. And the answer is……

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MUTUAL FUNDS: ONE STOP SHOPPE

The “THREE R’s” of mutual funds make them preferred investment avenue over direct investment in stock markets and fixed income investments.

MUTAL FUNDRETURNS RISK

REBATE

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MUTUAL FUNDS: ONE STOP SHOPPE

Wide range of products to choose from including

Liquid funds

Debt funds

Equity funds

Monthly Income Plan (MIPs)

Fixed maturity Plans (FMPs)

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MUTUAL FUNDS:ONE STOP SHOPPE . . .

EQUITY SCHEMES DIRECT EQUITY

Diversification

Adequate diversification to mitigate risk and reap benefits from all sectors

Don’t know: How to diversify and how much to diversify

Real Time Information

Close to market and can timely action

Lack of information: most important factor in investment

Resources Uses databases and software designed specially for managing investments

Either no or little resource

Time Managed by professionals

Individuals do not have time to keep a track of their investments.

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MUTUAL FUNDS:ONE STOP SHOPPE . . .

DEBT SCHEMES G-SEC and CORPORATE BONDS

Interest Rate Risk and Market Risk

Manages things like maturity, duration etc. to keep risk at lowest level.

Subject to risks which can erode capital

Liquidity Entry and Exit is simple.

Only G-Secs and AAA rated corporate bonds have high liquidity.

Quality of Investment

Invest primarily either in G-Sec or AAA rated companies.

Investors usually don’t have access to quality paper and end up investing in low grade bonds.

Lot Size Investor can start investments with as little as Rs. 5000.

G-Sec has a minimum lot size of Rs. 5 crores.

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MUTUAL FUNDS:ONE STOP SHOPPE. . .

FIXED MATURITY PLANS(FMP)

FIXED DEPOSITS, PUBLIC DEPOSITS

Interest Rate Risk and Market Risk

Actual return is almost as same as indicated at time of investment as returns are insulated against interest rate changes.

Interest rate changes affect the actual returns earned at end of term

Penalty on pre-maturity

A nominal exit load is deducted on withdrawing funds before maturity

Penalty is charged on the basis of time left to maturity.

Tax Burden Investor can enjoy “Double Indexation Benefit” to reduce their tax burden substantially.

FDs and PDs are subject to TDS at rate depending on investors. Thus, effective returns turns out to be very low because of TDS.

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IN BRIEF…..

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Investment options

Direct Equity

Govt. Securities

Corporate Debt

Bank Deposits

Mutual Funds

SimplicityRisk FreeLiquidityReturnType

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BUT THERE ARE NO FREE LUNCHES…..

Investment and risk go hand in hand and so is with Mutual FundsEquity Funds - uncertainty in the stock market - competence of fund managers

Debt Funds -movements in interest rates -inflation and the state of the

economy

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THE SOLUTION FROM

PNVF now offers a product that will manage and monitor your mutual fund portfolio

Minimizing risk and MAXIMISNG RETURNS

P N V F

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Why PNVF……

quality

flexibility expertise

trust

Investing is very rewarding…

But you need a partner who understands the intricacies of the market.

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WHY US

We are a specialized research driven company with Corporate Office in New Delhi and a network of three branches at Noida,Greater Kailash II and Gurgaon.

Qualified professionals well versed in latest techniques of investment analysis.

Latest communication and automation systems with access to real time data.

Close links with Corporates and leading market players.

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How It Works-Initial Stage

Client define his investment goals

We design a mutual fund portfolio based on his investment objectives.

We will implement the agreed upon strategy to optimize his portfolio returns.

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How It Works-Continuous basis

Continuous monitoring of the performance and progress of portfolio.

Regular monthly reporting. Refine strategy if required and

portfolio rebalancing.

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INVESTMENT TOOLS

We use latest tools and techniques to evaluate and select mutual fund schemes.

Various schemes are compared on two parameters Returns and Risk.

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RETURNSVarious schemes are grouped in

different categories and their performance is seen across various time periods i.e 1month ,3 mth 6 mth, 1 yr ,2 yr and 3 yr.

RISKMeasures such as Standard Deviation,

Beta, Sharpe ratio, Downside Risk ratio are used for ascertaining the risk associated with the schemes.

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Taxation- Equity Schemes

Dividend income is tax free in the hands of investor.

Short term capital gains is taxed at 10% .

Long term capital gains attract no tax.

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Taxation- Other Than Equity Schemes

The dividend is fully tax exempt in the

hands of investor. Dividend distribution tax at the rate of

14.02% is deducted by Mutual Fund Houses.

Long term capital gains are taxed at the rate of 20% with indexation and at 10% without indexation.

Short term capital gains to a unit holder is taxed at the normal rate applicable to the unitholder.

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We realize your money matters to you. It does for us too. We are committed to do our utmost so that you get the best out of it.

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THANK YOU