WELCOME TO VENTURE CAPITAL PRESENTATION

COLLECTIVE INVESTMENT SCHEMESWHAT IS VENTURE CAPITAL...???

Money provided by investors to startup firms and small businesses with perceived long-term growth potential. Features Of Venture CapitalLong-time horizonLack of liquidityHigh riskHigh-techEquity participation and capital gainsParticipation in managementAdvantages Of Venture CapitalThey can provide large sum of equity financeAble to bring wealth and expertise to your companyEasier to secure future funding from other sourcesThe business is not obligated to repay the money

Disadvantages Of Venture CapitalLengthy and complex process (needs detailed business plan, financial projections and etc.)In the deal negotiation stage, you will have to pay for legal and accounting feesInvestors become part owners of your business - founder loss of autonomy or controlStages & Risk of financingFinancial StagePeriod (Funds locked in years)Risk PerceptionActivity to be financedSeed Money7-10ExtremeFor supporting a concept or idea or R&D for product developmentStart Up5-9Very HighInitializing operations or developing prototypesFirst Stage3-7HighStart commercials production and marketingFinancial StagePeriod (Funds locked in years)Risk PerceptionActivity to be financedSecond Stage

3-5Sufficiently highExpand market and growing working capital needThird Stage1-3MediumMarket expansion, acquisition & product development for profit making company Fourth Stage1-3Low Facilitating public issueDeal originationScreeningDue diligence (Evaluation)Deal structuringPost investment activityExit planVC Investment Process

Venture Capital Funding In IndiaVenture Capital Funds In IndiaVCFs in India can be categorized into following five groups:

Those promoted by the Central Government controlled development finance institutions. For example: - ICICI Venture Funds Ltd. - IFCI Venture Capital Funds Ltd (IVCF) - SIDBI Venture Capital Ltd (SVCL)

2) Those promoted by State Government controlled development finance institutions.For example: - Punjab InfoTech Venture Fund - Gujarat Venture Finance Ltd (GVFL) - Kerala Venture Capital Fund Pvt Ltd.

3) Those promoted by public banks.For example: - Canbank Venture Capital Fund - SBI Capital Market Ltd4)Those promoted by private sector companies.For example: - IL&FS Trust Company Ltd - Infinity Venture India Fund

5)Those established as an overseas venture capital fund.For example:- Walden International Investment Group - HSBC Private Equity management Mauritius LtdReasons For Growth Of Venture Capital High Technology Human Resource Capital Scientific & Technical Research Government Initiative SEBI Initiative

Venture Capital Industry Wise SegmentationExchange Traded FundETFs are mutual funds that trade like a stockExchange Traded Fund (ETF)SimplicityTransparencyRisk controlDiversificationOpen-End FundStock:On ExchangeTrading flexibilityTrading strategies+MUTUAL FUNDSTOCKEXCHANGE TRADED FUNDA Brief History Of ETFETFs were launched post the 1987 crash to overcome the lack of liquidity and intense program trading in the market The first ETF traded on a U.S. exchange was StateStreets SPDR (SPY), which was introduced in 1993. SPY tracks the S&P 500 Index and is currently the most heavily-traded security in the world.Due to popularity of indexing in the 1990s, ETFs soon became popular amongst individual investors and financial advisors as a transparent and liquid method of indexing which was also better than index mutual fundsAs the availability of ETFs grew for different asset classes, investment styles and geographic sectors, it made possible for investors to construct a well diversified portfolio at a very low costKey Benefits Of ETFThe challenging market conditions in 2008-09 caused a significant shift in investors risk appetite and in their desire for liquidity. ETFs met their need for greater transparency regarding cost, holdings, price, liquidity, product structure, and risk and return.Diversified Exposure To MarketBuy And Hold InvestingActive TradingAlternative To Futures*Cost AdvantageBroad Market AccessEasy to Implement any Inv. StrategyCore/Satellite InvestingHedgingFactors Driving ETF Growth123456Large variety of indices of Equity, Fixed income, Commodity and other covered by ETFsFacilitation of investor education & trading by large broking housesSpecial market campaigns by many on-line brokers in an effort to win new accounts and cross-sell other productsMajor fund platforms embracing ETFsRegulatory changes in the US, Europe and many emerging markets that allow funds to make larger allocations to ETFsDevelopment and growth of investment styles that employ products like ETFs that deliver low cost beta* Average Quarterly AUM Source www.amfiindia.comIndian ETF MarketETFs In INDIAGold ETFLiquid ETFIndex ETF NiftyJunior NiftyBank NiftyPSU Banks International Index ETFHang SengS&P CNX 500

Structure of an ETFRedemptionPRIMARY MARKETSECONDARY MARKETAuthorized Participants & Large InvestorsETF IssuerBuyerExchangeSellerBuy & SellMarket MakingArbitrageCreationCashETF UnitsCashETF UnitsNIFTY ETFBlue chip stocksWell diversifiedHighly liquidRepresents Indian business economyWhy NIFTY?Direct investment in benchmark indexLower CostMore TransparencyMore FlexibilitySmall ticket sizeWhy NIFTY ETF?Nifty ETF is the simple and safe way to access equity marketsNIFTY ETF: A COMPARISONNarrowBroadBroadHighLowLowLowHighLowHighLowLowMarket RatesNAV at EODMarket RatesYesNoYesNoMay BeYesYesNoYesSTOCKSNIFTY MUTUAL FUNDNIFTY ETFEXPOSUREVOLATILITYEXPENSECAPITAL REQPRICEARBITRAGEMARKET RETURNSINTRADAY TRADING24GOLD ETFWhat makes it attractive?Gold ETFUnit of Dematerialized GoldLists and trades on a stock exchangeEvery ETF unit is backed by physical goldEfficientNo wastage, impurities & extra chargesTax EfficientTax efficient way to hold goldConvenientCan be purchased in small lots, typically 1 gramTransparentTransparent real time pricesSIMPLESAFETRUSTEDGOLD ETF: KEY BENEFITS1234567Your ETFs are backed by high quality physical goldYour gold is safely stored in highly secure vaultsLots of 1000 gm equivalents can be converted into physical goldYou can sell yours ETFs on the exchange like a shareNo costs other than brokerage are payable in buying or selling on exchangeNo wealth tax unlike physical purchase, also LTCG benefit available after one year You can track your investment value in real time

Pure

Safe

Easy

FastTHANK YOUChart16.947.7311.54.3227.954.8211.4312.923.369.03

Percentage

Sheet1IndustryPercentageIT & ITES6.94Energy7.73Manufacturing11.5Media & Ent.4.32BFSI27.95Shipping & logistics4.82Eng. & Const.11.43Telecom12.92Health care3.36Others9.03