Strictly Private and Confidential

Investment Strategy – November’15

Key Highlights

2

Contents

Our View

Investment recommendations

Annexure I – Market Charts

Annexure II – Product Details

Key Highlights

Favorable macros, Sluggish micros and Global excess liquidity

4

Macro environment in India remain favorable:

Commodity prices have significantly corrected with crude leading at below $50 per barrel Fiscal deficit has narrowed to 68.1% in April-September 2015, vs 82.6% last year Inflation is on easing path with CPI inflation at 4.4% remaining well below Jan 2016 target of 6% Industrial production has been picking up with latest reading expanding 6.4% YoY in August

While micros still remain challenging: Top line growth remains muted for corporate since past few quarters Investment cycle has not picked up especially from private sector Nominal Bank credit growth remain weak around 10% YoY Consumer discretionary spending (non durables) has contracted for second consecutive month, first since 2009

Globally reserve banks are easing liquidity to fight slowing global growth: Chinese central bank have reduced interest rates to 4.35%, sixth cut in a year European Central Bank signalled it would expand its €1.1 tn quantitative easing programme in December Japan maintained its current pace of $ 660 billion asset purchase program

We maintain our bullish view on equities for long term and expect interest rates to come down further by 75-100 bps in next 18-24 month. However, markets will remain range bound in the medium term with yields to remain between 7.50 to 7.60% for next 3-6 month.

Our View

Strategy

6 6

Equity:

We recommend investors to remain invested in equities. Markets will give opportunities for increasing allocation.

Managed products like forefront AIFs and PMS to bring discipline and long term orientation

Asset allocation product to have balanced approach in portfolio allocation

Invest in principal protected structured products to tide through volatility with higher participation

Buy quality large cap names

Key triggers to look forward to – Pick up in corporate earnings, uptick in domestic consumption and passing of rate cuts by banks

Debt: We recommend investors to increase duration in the portfolio.

Duration to capitalize on southward moving interest rates

• Gilt Funds

• Sovereign and Corporate bonds

• Perpetual bonds

Accrual through

• Tax Free bonds/Preference shares

• Liquidity Management - Arbitrage / Enhanced Arbitrage Funds

• Selective high yield NCDs (with no underlying commodity or metals sector exposure)

Key triggers to look forward to – US fed rate decision surprise, global growth environment, domestic inflation numbers

Investment Recommendations

Private and Confidential

Investment Recommendation

Asset Class Period Investment Options

Equity Long Term

Direct Equity: Top Picks - Multi cap focus, top down stock selection product with focus on

fundamentals and alpha generation

AIF: Forefront Equity AIF Large cap focused, with downside protection through dynamic

absolute return strategy

Structured Products: SP Ideas Participate through principal protected, high participation ideas

to gain from recent market correction

PMS: Accura PMS Managed stock portfolio with bottom up approach & focus on alpha

generation

Asset allocation to allocate capital considering risk and return profile based on model portfolio

recommendation

Large Cap : Birla SL Frontline Equity Fund, Franklin India Prima Plus

Mid Cap Funds: HDFC Mid Cap Opportunities, Franklin India Prima

Sector Funds: Reliance Banking Fund, Franklin Build India Fund

Fixed Income

Short Term

Liquid Funds: Reliance Liquidity & DWS Cash Opportunities Fund

Arbitrage Funds: Edelweiss Arbitrage & ICICI Pru Equity Arbitrage

PMS: Forefront Enhanced Arbitrage PMS for Treasuries to part 3 month+ liquid

Long Term

Duration: ICICI Pru Long Term Gilt Fund, IDFC Gsec Invest, Reliance Gilt Securities Fund

Perpetual Bonds, Preference Shares

Accrual: Edelweiss fixed return structures, Other high yielding corporate bonds/NCDs (in

corporate with no underlying commodity or metals sector exposure)

Short Term – Up to 1 year. Long Term - over 1 year

8

Private and Confidential

Model Portfolio Allocation

AGGRESSIVE

EQUITY 70%

Large Cap 20%

Mid Cap 30%

Structured Product 10%

Thematic 10%

FIXED INCOME 20%

Accrual 0%

Duration 20%

Forefront Asset Allocation 5%

Cash 5%

BALANCED

EQUITY 50%

Large Cap 15%

Mid Cap 15%

Structured Product 10%

Thematic 10%

FIXED INCOME 40%

Accrual 10%

Duration 30%

Forefront Asset Allocation 5%

Cash 5%

CONSERVATIVE

EQUITY 10%

Large Cap 3.5%

Mid Cap 3.5%

Structured Product 3%

FIXED INCOME 90%

Accrual 40%

Duration 50%

*Returns are absolute & are for the period 24th Sep 2015 to 26th Oct 2015. ITD – Inception to Date – 11th Aug 2011 – calculated on CAGR basis. Benchmark: Aggressive – 75% NIFTY & 25% Crisil Composite Index; Balanced - 50% NIFTY & 50% Crisil Composite Index; Conservative - 100% Crisil Composite Index

AGGRESSIVE BALANCED CONSERVATIVE

Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark

Returns* ITD Returns* ITD Returns* ITD Returns* ITD Returns* ITD Returns* ITD

EQUITY 3.3% 30.2% 5.0% 11.1% 2.9% 26.7% 5.0% 11.1% 2.8% 41.9% 5.0% 11.1%

FIXED INCOME 1.5% 9.7% 1.6% 8.9% 1.4% 7.5% 1.6% 8.9% 1.3% 9.3% 1.6% 8.9%

OVERALL 2.6% 21.9% 4.1% 10.5% 2.1% 15.6% 3.3% 10.0% 1.4% 10.2% 1.6% 8.9%

9

Appendix I – Market Charts

0

10

20

30

40

50

Oct

-06

Oct

-07

Oct

-08

Oct

-09

Oct

-10

Oct

-11

Oct

-12

Oct

-13

Oct

-14

Oct

-15

Cyclicals Average Defensives Average

7

12

17

22

27

32 O

ct-9

9

Oct

-00

Oct

-01

Oct

-02

Oct

-03

Oct

-04

Oct

-05

Oct

-06

Oct

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Oct

-08

Oct

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Oct

-10

Oct

-11

Oct

-12

Oct

-13

Oct

-14

Oct

-15

P/E Average

Equity

NIFTY P/E lower than earlier peaks, premium to long term average

Cyclical have started catching up with defensive valuations FII inflows in Equity

Current VIX Index

11

Average = 18.62

Current = 22.39

Defensives Average, 36.89

Cyclicals Average, 37.01

0

10

20

30

40

50

60

Oct

-10

Ap

r-11

Oct

-11

Ap

r-12

Oct

-12

Ap

r-13

Oct

-13

Ap

r-14

Oct

-14

Ap

r-15

Oct

-15

India VIX Average

Current = 16.54

Average = 21.93

2.9

1.1

2.5

0.0

0.4

3.7

1.2

2.8

1.8 1.9 1.1 1.3

0.1

2.4

1.0

2.9

1.4 1.7 1.2

-0.1

-1.0

0.9

-2.6

-0.9

1.0

-3

-2

-1

0

1

2

3

4

Oct

' 13

De

c'13

Feb

' 14

Ap

r' 1

4

Jun

e'1

4

Au

g'1

4

Oct

'14

De

c'14

Feb

'15

Ap

r'15

Jun

'15

Au

g'1

5

Oct

'15

US

D b

n

Equity FII flows $mn

Debt

FII inflows in debt

Credit Spreads narrowing Yields remained stable across the curve

Inflation continues downward spiral

12

-5.0 -3.0 -1.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0

Se

p-1

2

De

c-12

Mar

-13

Jun

-13

Se

p-1

3

De

c-13

Mar

-14

Jun

-14

Se

p-1

4

De

c-14

Mar

-15

Jun

-15

Se

p-1

5

CPI WPI

Sep-15, 4.4%

Sep-15, -4.5%

-100 -50

0 50

100 150 200

Oct

-13

De

c-13

Feb

-14

Ap

r-14

Jun

-14

Au

g-1

4

Oct

-14

De

c-14

Feb

-15

Ap

r-15

Jun

-15

Au

g-1

5

Oct

-15

Spread Average

Current = 47 Average= 48

6.60 6.80 7.00 7.20 7.40 7.60 7.80 8.00

1

2.5 4

5.5 7

8.5

10

11.5

13

14.5

16

17.5

19

20.5

22

23.5

25

26.5

28

29.5

24-Sep-15 27-Oct-15

-2.1

-0.8

0.9 2.0

2.5 1.6

-1.8

3.4 2.7

3.8 2.8

1.7 2.8

1.8 0.7

3.7

2.2 1.0 0.5

-1.3

0.3

-0.1 -0.1

0.0

2.7

-3 -2 -1 0 1 2 3 4 5

Oct

' 13

De

c'13

Feb

' 14

Ap

r' 1

4

Jun

e'1

4

Au

g'1

4

Oct

'14

De

c'14

Feb

'15

Ap

r'15

Jun

'15

Au

g'1

5

Oct

'16

Debt FII flows $mn

Appendix II – Product Details

Edelweiss Top Picks

14 14

S.No Stock Name CMP (INR)

Mkt Cap (INR Crs)

P/E (X) EV/EBITDA (X) ROE (%)

(INR) (INR Crs) FY16E FY17E FY16E FY17E FY16E FY17E

1 Bajaj Finance Ltd. 5,162 27,933 22.2 17.2 NM NM 20.0 18.7

2 Coal India Ltd. 322 2,08,566 11.8 9.6 6.8 5.3 41.0 45.9

3 ICICI Bank Ltd. 272 1,57,510 12.2 10.6 NM NM 15.0 15.4

4 Infosys Ltd. 1,145 2,64,884 19.9 16.4 12.1 10.0 23.1 26.0

5 Larsen & Toubro Ltd 1,471 1,38,925 25.3 18.0 6.5 5.7 11.5 14.5

6 Tata Motors Ltd 391 1,26,615 7.9 6.7 3.9 3.3 23.7 21.5

7 Repco Home Finance Ltd. 700 4,386 27.0 21.4 NM NM 18.1 19.3

8 Solar Industries India Ltd 3,456 6,328 31.8 23.1 19.3 14.1 25.1 27.4

9 SRF Ltd. 1,359 7,796 15.4 11.6 9.5 8.0 17.0 19.0

10 Strides Arcolabs Ltd 1,299 7,759 32.0 21.2 20.1 14.0 13.8 13.2

11 Sun Pharma Industries Ltd. 879 2,16,958 36.8 23.7 19.3 15.6 21.3 25.6

Prices updated as on 29th October 2015 NM- Not meaningful Note: We have exited Motherson Sumi Ltd. WEF 24th September 2015, we currently have 8.3% cash in the portfolio

Edelweiss Top Picks: Performance

15 15

Edelweiss Top Picks NAV: At INR 310 vs Nifty NAV of INR 156

Edelweiss Top Picks have delivered a CAGR return of 35% since inception as against Nifty CAGR return of 13%, translating into an outperformance of 22% (p.a)

On an annualized basis (last 12 months), Top Picks have delivered a return of 27% per annum as against Nifty return of -1.3%.

80

130

180

230

280

330

380 Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-

12

Aug-1

2

Sep-1

2

Oct-

12

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Jul-

13

Aug-1

3

Sep-1

3

Oct-

13

Nov-1

3

Dec-1

3

Jan-1

4

Feb-1

4

Mar-

14

Apr-

14

May-1

4

Jun-1

4

Jul-

14

Aug-1

4

Sep-1

4

Oct-

14

Nov-1

4

Dec-1

4

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-1

5

Jun-1

5

Jul-

15

Aug-1

5

Sep-1

5

Oct-

15

Daily Portfolio NAV Daily Benchmark NAV (NIFTY)

Edelweiss Mid-Cap Marvels

16

S. No. Stock Name CMP Mkt Cap P/E EV/EBITDA ROE (%)

(INR) (INR Crs.) FY16E FY17E FY16E FY17E FY16E FY17E

1. Cholamandalam Finance 629 9,619 19.0 15.9 NM NM 15.7 16.4

2 NIIT Ltd. 96 1,588 24.5 16.4 22.3 15.6 0.9% 8.4%

3. Indo Count Industries Ltd 939 3,752 13.3 9.9 8.1 6.0 49.6 42.8

4. Natco Pharma 2,567 8,942 61.7 53.1 35.4 31 14.70% 14.90%

5. Pokarna Ltd. 1,175 745 15.2 12.4 8.1 7.3 58.2 43.3

6. Ratnamani Metals & Tubes

636 3,004 13.8 11.2 6.9 5.7 20.8 21.5

Note: We have exited Suprajit Engineering Ltd. WEF 14th August 2015, we currently have 14.3% cash in the portfolio

Note: Market CAP (Mkt CAP) and Current Market Price (CMP) were last recorded on 29th October, 2015

Edelweiss Midcap Marvels: Performance

17 17

Edelweiss Midcap Marvels NAV: At INR 210 vs CNX Midcap Index NAV of INR 125

Edelweiss Midcap Marvels have delivered a CAGR return of 69% since inception (4 June 2014) as against CNX Midcap Index CAGR return of 17%, translating into an outperformance of 52%

90

110

130

150

170

190

210

230

250

Jun

-14

Jun

-14

Jul-14

Jul-14

Jul-14

Au

g-14

Au

g-14

Se

p-14

Se

p-14

Oct-14

Oct-14

No

v-14

No

v-14

De

c-14

De

c-14

De

c-14

Jan-15

Jan-15

Feb

-15

Feb

-15

Mar-15

Mar-15

Ap

r-15

Ap

r-15

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May-15

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-15

Jun

-15

Jun

-15

Jul-15

Jul-15

Au

g-15

Au

g-15

Se

p-15

Se

p-15

Oct-15

Daily Portfolio NAV Daily Benchmark NAV

UNIQUE CORE-SATELLITE APPROACH TO EQUITY INVESTING

Forefront Alternative Equity Scheme – Approach

18

Forefront Alternative Equity Scheme – Performance

Portfolio Update as on 30th September, 2015

Forefront Alternative Equity Scheme – Category III AIF – Performance (Net Of Fees)

Fund Name Forefront AIF

Nifty BSL Frontline ICICI Pru Focused Bluechip

Franklin India Bluechip

HDFC Top 200

1 year Return (as on 30th Sep 15)

22.9% -0.2% 9.1% 5.3% 10.3% 0.0%

Major Holdings

Name Weight(%) Name Weight(%)

INFY 6.43% HINDUNILVR 4.93%

HDFCBANK 5.94% HCLTECH 4.91%

BAJAJ-AUTO 5.39% TORNTPHARM 4.61%

SUNPHARMA 5.12% DRREDDY 4.52%

COALINDIA 4.99% CASTROLIND 4.45%

*Above performance is net of fees only.

19

14%

11%

9%

8%

8%

7%

6%

5%

4%

4%

4%

2%

0% 5% 10% 15%

Pharmaceuticals

Software

Consumer Staples

Auto & Comp

NBFCs

Others

Private Banks

Energy

Energy Products

Textiles

Chemicals

Engineering

20

Structured Product: Enhanced FMP

Specifications

Underlying CNX Nifty Index

Capital Guarantee

Principal is protected at maturity

Participation Tenor

24 months

Maturity 27 months

Entry Level Trade date

Exit Level Average of last 3 months

Fixed Coupon 19% (8% IRR)

Max Coupon 24% (10% IRR)

Binary Level 100% of Initial Level

Payoff

If Final Level > Binary Level = Max Coupon

If Final Level <= Binary Level = Fixed Coupon

Scenarios

• FMP replacer : Beats the returns provided by debt options available in the market like tax free bonds , FDs & FMPs.

• High Probability : The product is observed only at the end and hence the chance of making the full return is very high.

• Low Risk : Fixed Coupon (8% IRR) is delivered irrespective of any market movements.

• Binary Coupon If Nifty is above the Binary level in the end then the investor gets the Max Coupon.

Initial level

Final level

Nifty Performance

Product Return

Annualised Return

8200 0 -100% 19% 8%

8200 6560 -20% 19% 8%

8200 7380 -10% 19% 8%

8200 8200 0% 19% 8%

8200 8201 0.01% 24% 10%

8200 9840 20% 24% 10%

8200 11480 40% 24% 10%

8200 13120 60% 24% 10%

8200 14760 80% 24% 10%

8200 16400 100% 24% 10%

Valid only for the month of Nov 2015. Minimum Investment : 1 Cr

21

Structured Product: Golden Cushion

Specifications

Underlying CNX Nifty Index

Capital Guarantee Principal is protected at maturity

Participation Tenor 36 months

Maturity 42 months

Entry Level Average of first 4months

Exit Level Average of last 4 months

Participation 120%

Coupon 65% Absolute (15.4% IRR)

Decay Range 130%-100% of Initial Level

Payoff If Final Level >130% of Initial Level, 65%, Else Max ( 0 , PR*Min (30% ,Nifty Performance))

Scenarios

Initial level

Final level

Nifty Performance

Product Return

Annualised Return

8200 0 -100% Principal Protection

at maturity 8200 6560 -50%

8200 8200 -20%

8200 8364 0% 0% 0%

8200 8528 1% 1.20% 0.34%

8200 8609 10% 12.00% 3.29%

8200 8610 29.99% 36.00% 9.18%

8200 9020 30% 65.00% 15.38%

8200 9840 50% 65.00% 15.38%

8200 12300 80% 65.00% 15.38%

8200 16400 100% 65.00% 15.38%

•High Coupon : Gives a Coupon of 65% on 30% Nifty upside move. Below 30%, it provided enhanced participation of 1.2 times the Nifty performance.

•Downside Protection : Capital is completely protected in case Nifty falls in the next 3 years. Product maximizes upside and removes the downside risk.

•Outperformance Range : Product returns outperform Nifty returns up till approx 30% upside move in Nifty. Above 30%, client get attractive returns of 65% even if Nifty is up even by 0.01% above 30% .

•Max Returns : Client makes a return of 15.4% IRR if Nifty is 30% above the entry level in the end

Valid only for the month of Nov 2015. Minimum Investment : 1 Cr

22

Structured Product: Fixed Coupon Ideas

Suggested Client Profiles

Conservative

Risk Return Profile

High

Medium

Low

Return

Risk Low Medium High

•Alternatives like FMP's have lock - in, where in Edelweiss NCD can provide liquidity after 3 months • Yields at the time of early exit is dependent on the current lending rate of Edelweiss

• Please Note: Pre Tax Annualized Yield, does not include any cost’s involved.

Issuer Asset Type

Listed - Exchange

Rating

ECLF/EFIL NCD BSE – WDM PP-MLD

AA by CARE

Tenor Contingent Product

Annualized Yield

15 Months 9.00% p.a.

24 Months 9.25% p.a.

40 Months 9.50% p.a.

Edelweiss NCD are secured with 100% cover hypothecated with an independent trustee:

Charge is created on immovable property

Hypothecation / floating charge on current assets/ receivables

Independent Trustee for the issuance program – SBICAP Trustee Company

Issuance Security Structure

Scenario Payoff

If Final Nifty > 25 % of Initial level (Assuming entry level of 7700, Final Nifty > 1925)

Contingent Product

Annualized Yield If Final Nifty <= 25 % of Initial level (Assuming entry level of 7700, Final Nifty < =1925)

0.00%

Accura PMS: Portfolio Philosophy

Growth

Value

“BIG Data” Analysis…

• Rigorous Quarterly Analysis to uncover the strongest businesses with the deepest moat around them

• Extensive Spatial-Temporal Analysis

• Millions of data points compared

…with strong focus on Fundamentals...

• Huge emphasis on Quality of Core Earnings

• Superior FCF, RoA and RoNW

• Consistency of Top-line and Bottom-line Growth

• Strength of Balance Sheet

• Solvency and Liquidity Analysis

…resulting in superior Risk-adjusted returns

• Unique blending algorithm of growth & value parameters while controlling the risk parameters

• Blending lends stability to the portfolio of businesses identified

• Portfolio dominated by Low Beta and low volatility stocks thereby maximizing risk-adjusted returns

• Equal weight portfolio ensures there is never big exposure to any single business or sector

23

3 Months 6 Months 1 Year 2 Years 3 Years

6% 5% 24% 190% 190%

BSE Smallcap 0% -2% 0% 95% 52%

Absolute Returns

3 Months 6 Months 1 Year 2 Years 3 Years

0% -1% 16% 80% 99%

BSE 100 -5% -6% 1% 41% 42%

1 Year 2 Years 3 Years SI

24% 70% 43% 37%

BSE Smallcap 0% 40% 15% 12%

Annualized Returns

1 Year 2 Years 3 Years SI

16% 34% 26% 19%

BSE 100 1% 19% 12% 12%

Accura PMS Performance – Undisputed Leaders

Performance Data as on 30th September , 2015 Inception Date: 10th Oct 2011 – Pico Power; 19th Sep 2011 – Alpha 10

ACCURA CAPITAL – PMS – Performance (Net Of Fees)

Note: Effective April 2015, Bombay Stock Exchange has cancelled S&P BSE SMALL CAP index and replaced it with a new S&P BSE SmallCap Index. The returns presented are for BSE SMALL CAP Index that existed until March 2015 and new S&P BSE SmallCap index is being used for benchmarking purposes from April 2015 onwards.

24

Forefront Asset Allocation PMS

Key Terms

Forefront Asset Allocation PMS Scheme Axis Bank Limited Custodian

SEBI Portfolio Management Services

(Discretionary) Regulation

Forefront Capital Management Private Limited, Group Company of Edelweiss

Financial Services Ltd

Investment Manager

Recommended tenure of 3 years Investment

Tenure

At Client Level Taxation

OBJECTIVE AND STRATEGY

A disciplined and emotion free process to make asset allocation decisions

Superior absolute returns with low risk – better risk adjusted performance

A complete solution with oversight, monitoring and efficient implementation

25

Forefront Asset Allocation PMS

Conservative Moderate Aggressive

Beating fixed income and preserving capital

Limited exposure to risky assets – equities and gold

Primarily from fixed income asset allocation

Beating inflation with low capital drawdowns

Moderate exposure to risky assets, diversification via gold / international equities

Primarily from allocations between risky and non risky assets

Equity beating performance with lower than equity drawdowns

High static exposure to risky assets

Primarily from allocations between equity assets

Option

Objective Exposure Source of Alpha

Static Allocations

Large Cap 10% 30% 40%

Mid Cap 5% 20% 20%

International Equity 5% 10% 10%

Gold 5% 5% 5%

Income 15% 10% 2.5%

Accrual 40% 10% 5%

Liquid 20% 5% 2.5%

Alternatives * 0% 10% 15%

*** Allocation to alternatives only above Rs. 5 crore. Allocations will be scaled accordingly.

26

Forefront Asset Allocation PMS

Performance – Net of Fees and Taxes (Jan-2011 to Present) Backtested Returns for Aggressive and Conservative, Realized Returns for Moderate

Conservative Moderate Aggressive NIFTY Gold CRISIL Bond

CAGR (Return) 10.12% 11.52% 13.97% 5.77% 3.69% 8.70%

Standard Deviation 3.50% 5.95% 7.98% 17.08% 18.82% 3.26%

Sharpe Ratio 2.89 1.94 1.75 0.34 0.20 2.67

Cumulative Performance (As of 30th September, 2015)

Year Wise Performance*

27

-30%

-20%

-10%

0%

10%

20%

30%

40%

2011 2012 2013 2014 2015

Conservative Moderate Aggressive NIFTY CRISIL Bond Gold

***Returns stated are provisional unaudited returns as of 30th September 2015 ( Calendar Year Returns). Official returns and NAVs of the fund are issued as of month end. Past performance is not indicative of future performance. Forefront Alternative Equity Scheme Returns are net of management fees and expenses and gross of performance fees and taxes

Forefront Enhanced Arbitrage PMS

28

Forefront Enhanced Arbitrage PMS

Scheme focuses on generating positive absolute returns by combining Cash Futures Arbitrage PMS & Event Arbitrage PMS.

As on 30th September, 2015 1M Since Inception

Forefront Enhanced Arbitrage PMS 0.5% 14.0%

Crisil Liquid 0.7% 6.1%

Inception Date: 9th January 2015

Structure Discretionary Portfolio Management Services

Opportunities Arbitrage Opportunities in trading Cash & Derivatives

Return Fixed Income + 3% of net of fees

Risk Profile Consistent returns with fixed income plus profile

Tenure A minimum holding of 3 months

29

Perpetual Bonds & Preference Shares

30

Perpetual Bonds - Snapshot

**Charitable Trust and Provident Fund / Pension Fund / Retirement Funds can also invest in Bank Perpetual bonds AA and above

Preference Shares- Snapshot

Issuer Rating Coupon Selling Yield Interest Payment Maturity

L&T Preference Shares AA+ CRISIL 8.15% 7.70% 15-Apr Annual 06-May-22

IL&FS Limited AAA CARE 8.10% 7.80% 30-June Annual 29-June-22

TATA Capital Preference Shares AA+ CRISIL 8.33% 7.70% Annual 30-Jun-19 (Call)

ZEE Preference Shares AA CARE 6.00% 9.45% 15-Apr Annual 05-Mar-22

Issuer Rating Coupon Selling Yield Interest Payment Maturity

11.00% Bank of India Perp AA+ Brickworks 11.00% 9.50% 8-Aug Annual 8-Aug-24 (Call)

10.75% IDBI Bank Perp AA- CRISIL 10.75% 10.40% 17-Oct Annual 17-Oct-24 (Call)

9.55% Canara Bank Perp AA ICRA 9.55% 9.40% 5-Mar Annual 5-Mar-25 (Call)

Tax Free Issuances

31

Issuer ™™National Housing Authority of India (NHAI) (Public Issue) (Upcoming)

Issue size Rs. 6,000 crores with an option to retain oversubscription upto Rs. 6,000 crores aggregating to total of upto Rs. 12,000 crores

Issue opens (tentative) 1st week of November 2015

Allotment First Come First Serve Basis

Rating AAA (CARE, ICRA , CRISIL)

Tenor 10 Years / 15 Years / 20 Years

Expected Yield 6.90% / 7.00% / 7.05% for 10 Years / 15 Years / 20 Years respectively

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Disclaimer

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