INDIA – A Land of Billion Opportunities
A Nation with Rich Heritage
Who is an Non-Resident Indian (NRI)?
NRI is a person, who is either Indian citizen staying
abroad for more than 180 days in a year
or
a foreign citizens who were holding Indian Passports
earlier or their parents/grandparents were Indian.
What is Overseas Citizen of India (OCI)?
OCI card is a unique advantage. With OCI,
I. NRIs do not need Indian visa for visiting India
II. There is no restriction on the period of stay in India.
III. Enjoy multipurpose multiple entries and lifelong permission to
enter in India.
NRIs with foreign passports can enjoy dual citizenship by obtaining OCI Card.
Funds in India
Non Resident Ordinary
(NRO)
Funds (from) OUTSIDE
India
Non Resident External
(NRE)
Categories of Funds for NRI
Guidance for Easy NRI Investment
Pre Investment process is one time process.
Then after one can invest or withdraw at any time
through Telephone, Email or any other means of
communication.
Most of the Functions can be carried online and
reports can be obtained by login.
Repatriation of Investments & Profits
Fund brought from outside India under NRE category invested in Capital Market is fullyrepatriable with profit and can be converted back to any foreign currency at prevailingexchange rates.
Remittance of Assets By NRI
NRE: Investment + benefits in Capital market fully repatriable.
NRO: Investment + benefits up to USD 1 Million is permissible.
For full information, please view link
https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9892
Indian Capital Market
Well Structured
Very well regulated
3 Steps Investment Process
Pre-Investment Process
Investment Process
Post-Investment Process
Steps before Investing
Obtain (PAN) from Income Tax
Open Bank Account (NRO|NRE-PIS) with designated Bank
Open Demat A/c with designated Depository Participant (CONCEPT)
Registry with Member Broker of Stock Exchange (CONCEPT)
Pre-Investment Process
Investment Process
• Development of Alternatives.
• Evaluation of Alternatives.
• Selection of Alternatives.
• Execution of Alternatives.
Executing Investment
Development of Alternatives
Evaluation of Alternatives
Selection of Alternatives
Execution of Alternatives.
Investment Process
Reviewing and Restructuring.
Record keeping and Accounting
Income Tax (IT) Returns
Investment Monitoring
Post Investment Process
Tax Regime In India
Low Taxation
a. Maximum Income tax @ 30%
b. Capital gain tax @ 20%
Benefits of Indexation in capital gain
Benefits of DTAA for most of countries
Taxation on Equity And Equity Mutual Fund
Long Term Capital Gain (LTCG) tax-10%
Short Term Capital Gain Tax (STCG)- 15%
Dividend Tax Free in hands of Investor.
Taxation on Debt And Debt Mutual Fund
Capital Asset held for < 3 Years – 30%
Capital asset held for > 3 Years – 20%
Benefits of indexation for the period asset was owned.
Outlook on Economy and Equity
History of Indian Stock Market
CAGR – 13.79%
Data Source: ACE Equity
History of Indian Stock Market
CAGR – 14.49%
Data Source: ACE Equity
20
Advantage @ India
Strong Demographics
Fastest Growing Economy
Growing Disposable Income
Growing Middle-class consumption
High Saving Rate
Falling Inflation
Investment Cycle Picking Up
Government Reforms
Falling Interest Rate
Increased Regulation
21
India under NAMO 1.0 (2014-2019)
India the Fastest Growing Economy- 6.6% to 7.7%
GST- one nation one tax
Demonetization
Jandhan Yojana - 31 crore bank a/c opened
Bharat Mala Project -To build 35000 km highway across 16 states
Sagar Mala project - Modernizing 12 major and 185 minor ports
Gram Jyothi Yojana - 18,452 villages Electrified
Housing for all by 2022 -1.5 crore houses built
Ayushmaan Bharat – Insurance Cover
Mudra Loan - More than 12 crore beneficiaries
Massive Infrastructure projects likes; Bullet trains, 14 lane Expressways, Freight Corridors etc.
Average Highway construction 27 Km/day - Builds 33,361 km road in 4.5 year
22
Smart City
Make In India
Digital India
Skill India
Adarsh Gram Yojana
Sukanya Samridhi Yojana
Fasal Bima Yojana - Crop insurance scheme
Yoga Day - June 21 as international Yoga day.
Ujala Yojana - Distributed over 30 crore LED bulbs
Insolvency and Bankruptcy Code 2016 passed
Swachh Bharath Mission - This made entire world to look at India !
Improved relations with World Countries and uplifted the image of India at global level.
India under NAMO 1.0 (2014-2019)
23
India under NAMO 2.0 (Again)
Re-election of NDA with clear majority
Narendra Modi – A visionary leader
Pace of reforms will be faster under the strong
government
Good diplomatic relations maintained by Mr.
Modi is boosting FDI
“Targeting $5 Tn GDP mark by 2024”
Indian Economy Prospects
Overall Demand Growth
The Economy will continue to show strong growth on account of high level of internal consumption and exports.
GDP
There were hiccups in the short run due to introduction of structural reforms but the growth rate of the Indian economy is expected to stay in 7% and thereabouts
Positive Road Ahead
Digitization, Globalization, Favorable demographics, Structural reforms and Rising income should continue to bolster growth of the Indian economy
Government Schemes & Regulatory Measures
Government schemes such as “Housing for all by 2020”, “Digital India”, “Make in India”, “Bankruptcy Code” etc. should continue to provide impetus to the growth of Indian economy
India Version 2.0 (Under NAMO Again)
Strong Government
Modi government registered a win with a clear majority which showed faith of the Indian public in the government. Also, majority government can take bold steps for long term growth.
Reforms
India saw reforms like “Goods & Services Tax” and “Demonetization” from 2014 – 19 which can be considered as major surgeries which broke the backbone of black money
Target to become a $5Tn economy by 2024
Government has targeted to become a $5 Tn economy by 2024. This looks quite achievable looking at the strong position of the economy and the leadership strength
Business made easy
According to IMF India ranks 77th in the ease of doing business index. India jumped by a massive 65 places in last 4 years
Data Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=184513
Strong Fundamentals
GDP Growth Rate
India is now growing faster than other emerging markets and this trend is expected continue going forward
Low Corporate Debt
Corporate Debt as a % of GDP now stands at 56.1% which is much lesser than other emerging economies
FOREX Reserve
As of June 14 2019, FOREX reserve of India is at $422 Bn. This is strong 38.8% growth in last 5 years
Data Source: Motilal Oswal, RBI, https://urlzs.com/voNxV
More Positives
3 consecutive rate cuts – Repo rate now stands at 5.75%
Make in India
‘Make in India’ initiative was launched on September 25, 2014 by the Government of India with the aim to promote
manufacturing in India. The program includes major new initiatives designed to facilitate investment, foster innovation, protect
intellectual property, and build best-in-class manufacturing infrastructure. Make in India aims at 25 economy driving sectors
including Biotechnology for GDP growth of the country.
E – Way Bill
Introduction of Goods and Services Tax (GST) across India with effect from 1st of July 2017 is a very significant step in the field
of indirect tax reforms in India. For quick and easy movement of goods across India without any hindrance, all the check posts
across the country are abolished. The GST system provides a provision of e-Way Bill, a document to be carried by the person in
charge of conveyance, generated electronically from the common portal. To implement the e-Way Bill system, ICT based
solution is required. Hence, as approved by the Goods and Services Tax (GST) Council, a web based solution has been
designed and developed by National Informatics Centre and it is being rolled out for the use of taxpayers and transporters
Goods and Service Tax
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax (GST) is an Indirect Tax
which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March
2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-
stage, destination-based tax that is levied on every value addition. In simple words, ) is an indirect tax levied on the supply of
goods and services. This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for
the entire country.
NCLT – Bankruptcy Code
The Insolvency and Bankruptcy Code was passed on 11th May 2016. It was done to consolidate all the existing laws related to
insolvency in India and to simplify the process of insolvency resolution. Nearly 60,000 bankruptcy cases are pending in
India’s courts. As per the World Bank data, it takes an average 4.3 years to wind up a company in India. It is easier to start
a business than to exit it. The new Insolvency and Bankruptcy Code seeks to cut it to 1 year. Also, the recovery of the debt
under is just 25.7 cents on the dollar in India. The new code seeks to help banks and other creditors from recovering their
loans from the bankrupt companies in a timely and efficient way.
Source: http://economyria.com/insolvency-bankruptcy-code-explained/
Real Estate Regulation Act
The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-
buyers as well as help boost investments in the real estate industry. The Act establishes Real Estate Regulatory Authority
(RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute
redressal.
Budget Updates(2019-2020)
Budget Updates (1/4)
Government in the budget announced on 5th July 2019 came up with a number of significant plans and reforms. This should provide strong impetus to growth in areas
like
Banks &
NBFCs’
Roadways
Public Sector
Units
Automobile (E
– Vehicles)
RailwaysAffordable
Housing
Startup
Investing
Budget Updates (2/4)Highest Disinvestment Plan
• Government of India has come up with the biggest disinvestment plan ever.
• As per the budget announcement, government is planning to carry out disinvestment worth Rs.1,05,000 cr in the year
• This will open up many new opportunities to invest in some of the very good PSUs’ which were 100% under government’s control so far.
Strong Impetus to PSBs’ and Domestic Credit Growth
• Government in the budget announced that Public Sector Banks will be provided Rs.70,000 cr credit boost
• Another good news is that there are recoveries worth Rs.4 lakh cr made and also, credit growth in the country this year was 13.8%
Huge Infra Spending
• India as we all know is expected to see a huge amount of government spending going forward. Government clarified its stand further when the budget announcement included a plan to spend Rs.100 lakh cr on infrastructure in the next 5 years.
Tax Relief to 99%+ Companies
• Indian corporates generating sales up to Rs.250 cr fell under the tax regime of 25%. Under the recent budget, this threshold has been pushed higher to Rs.400 cr.
• As per the announcement, this relief will cover 99%+ corporates operating in India.
Budget Updates (3/4)
Custom & Excise duty hikes
Tobacco
Excise duty to
increase on
tobacco and
tobacco
products
Gold
Custom duty on
gold to go up to
12.5% from 10%
Fuel
Increase in
excise duty of
INR 1/liter on
Petrol & Diesel
Public Shareholding
Public Shareholding in listed companies will go up from 25% to 35% which means the Promoter holding will
have to come down to 65% from 75% previously
Budget Updates (4/4)
Updates for NRI Investors
NRIs with Indian passports will get Aadhaar cards after arrival without mandatory wait of 180 days.
Budget proposes to allow FPIs to subscribe to listed debt papers of ReITs and InvITs & also allow FPIs, FIIs to invest in debt papers of NBFCs.
To merge NRI portfolio route with FPI route to increase more NRI portfolio flows into India.
FPI – Streamline KYC to make it more investor friendly
Proposition to raise FPI limits in companies
Why Should NRI Invest in India?
Good Returns
Excellent Prospects
Rupee Appreciation
Low Tax
Financial Market
Equity
Mutual Fund
Structured Products*
Debt
Non Financial Market
Real Estate
Precious Metal
Art
Other
Options of Investment in India
*Other options include
Alternative Investment Fund (AIF)
REIT
Private Equity
Startup Funding, etc.
NRI Deposits In India
Any interest earned on the deposit in
an NRE account is exempt under section 10(4)(ii)
for an individual who is a 'person resident outside
India' as per the Foreign Exchange Management
Act,1999, (Fema) or who is a person permitted by
the Reserve Bank of India to maintain the
aforesaid account.
Source: Axis Bank
Source: Axis Bank
Mutual Fund Investment and NRI
NRI can also invest in Equity and
Debt Mutual Fund using their NRE
or NRO account.
Different categories of Mutual
Fund to cater your different
Investment needs.
What is Portfolio Management Service
Portfolio Management Service (PMS) is a sophisticated
investment vehicle that offers customized investment
strategies to capitalize on opportunities in the market.
WHY PMS?
PMS is a customized wealth management service that suits with
the specific objective of High Net Worth Investor (HNI). All the
aspects of making and monitoring investment right from evaluation
of options, stock picking, order execution, settlement and
performance monitoring & reporting are taken care of.
Investment is done as per the objective of the plan under overall
guidance of the investment committee. Fund Manager has the
ultimate control over all the investment decisions
• It should be huge.External Opportunity
• Moat/Competitive advantage
• Growth & Scalability
• Robust Financial track record
Business
• Integrity & competence
• Passion
• Young/First generation entrepreneurs
Management
• Growth at reasonable priceValuation
General Stock Selection Approach
How Managers Allocate Funds
Portfolio of
around 25 Scrips
Maximum
Weightage of 35%
in single sector
and 10% in individual scrips
Diversify across 8-10 sectors
Average holding
of a scrip is 4-5 years.
Large-Cap Portfolio
STRATEGY
Large-cap oriented Fund
Minimum 60% goes towards top 100 companies as per market cap
Leaders or captains of their industry
Benchmark- BSE200
This fund typically is less volatile and suited more for first time investors. Size of opportunity, Efficient Business Model,
Ethical and Competent Managers running it and available at reasonable valuations.
Mid-Cap Portfolio
STRATEGY
Mid-cap oriented Fund
Minimum 60% goes towards next 250 companies as per market cap.
Leaders or captains of their industry
Benchmark- BSE200
These constitute of stocks from sunrise industry or can come up from our bottom-up approach of stock selection. They
may be small in size but are good at market share, profit share, return ratios having dynamic managers running them at
reasonable valuations. We follow complete bottom up approach while selecting midcaps.
Special Portfolio (Jain)
STRATEGY
Multicap Fund
Invest in Large-Cap, Mid-Cap and Small-Cap.
Avoiding liquor, Tobacco, Agro-Chemical and Pharma Sectors
Benchmark- BSE200
Alternate Investment Fund (AIF) and NRI
Alternative Investment Fund or AIF means any fund established or incorporated in India
which is,
a privately pooled investment vehicle which collects funds from sophisticated
investors, whether Indian or foreign, and
for investing it in accordance with a defined investment theme for the benefit of its
investors.
NRIs are permitted to invest in AIF.
INVESTWELL AdvisoryA Consultative Approach
An Investment Expert who helps individuals to manage their Investment by providing advice on
What Is Investment Advisory?
Investment Planning
• Retirement Planning
• Long Term Investment Planning for Wealth Creation
• Fixed Outflow Planning
• Other Criterion Based
Asset Allocation of : Equity, Debt, Mutual Funds, etc.
Reviewing, Restructuring and Monitoring portfolio.
Your investment may not be proper.
Scattered, Unattended Investment.
Lack of Time and Attentions.
You have additional fund for investment but do not know where to invest.
Benefits of Expert Knowledge.
New Innovative / Structured products being introduced (e.gREIT, AIF)
Why Investment Advisory?
Risk ProfileCurrent Investment
PreferencesFuture needs03
02
04
Study
01
Key parameters of Investment Advisory Process
13
2 4
Preview of Current Investment
Suggestion
Analysis By Expert
Regular Advice and Monitoring
Investment Advisory Process
Our Advisory export will meet client personally, to understand client's
Step : 1 Preview of Current Investment
Current Investment
Status
Objectives/Goals
Risk Appetite Time HorizonPresent Asset
Allocation
Analysis, suitability of Current Investment
Consideration of Assets Allocation
Evaluating alternatives
Selection of suitable Products
Preparing Recommendations
Step : 2 Analyzing
This will be performed by expert team who is well-versed in Investment Planning.
Discussing Report
Making necessary Changes if Required
Suggesting course of Actions
Give Final advice
Step : 3 Advice & Recommendation
Submit Report on Recommendation
Giving Detailed Recommendations
Explaining rationale of Recommendations
Client decides whatever is suitable. Our advice is not binding.
Quarterly / Half Yearly Review.
Taking stock of macro economic changes and Geo-Political Environment
Tracking scripts/schemes of investment
Discussion with clients on changing priorities
Give Investment Ideas and Research Report from time to time
Give List of Recommendation of Mutual Fund Schemes, Stock, Bond.
Step : 4 Review, Restructuring & Monitoring:
TAILOR made INVESTMENT ADVISORY SERVICE for Ultra High Net-worth Individuals
confirming to their specific needs are also available.
Come, invest and prosper
through us
If you are bullish on India,
take a plunge