Post on 27-Nov-2015
description
Xumit Capital
Investment Management firm
Presented by:
Sumit Singh,Founder & Managing Director,Mob: (+91) 997 199 6276,Email: sumit.singh@xumitcapital.com
Website: www.xumitcapital.in
Presentation on
Discretionary Portfolio Management services
Table of Content
ж Why Investment? Methodology
Modes of Investment Why DPM is better
Stock market dreams! Our Investment Philosophy
Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Compensation Structure
Why investment?
• To beat inflation…and protect the purchasing
power of rupee
• To allocate idle money…and make your rupee
work for you
• To get extraordinary returns (& get rich!!)…
Table of Content
Why Investment? Methodology
ж Modes of Investment Why DPM is better
Stock market dreams! Our Investment Philosophy
Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Compensation Structure
Vehicle Risk/Return ↑
Private Equity Extremely High
Common Stocks – Trading Very High
Common Stocks – Investing Very High
Hedge Funds High
Mutual Funds Moderate
Corporate Bonds Low
Government Bonds/FDs Very Low
Savings Account Risk-free
Balanced blend of
Risk-Reward Ratio
Table of Content
Why Investment? Methodology
Modes of Investment Why DPM is better
ж Stock market dreams! Our Investment Philosophy
Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Compensation Structure
The wealth-creation story of Infosys Technologies Ltd.
35% annualized return in last 20 years!!
“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years”
- Warren Buffett
“The main purpose of the stock market is to make fools of as many men as possible”
- Bernard Baruch
-47% annualized return in last 6 years!!
The wealth-destruction story ofEducomp Solutions
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-30%
-20%
-10%
0%
10%
20%
30%
Sensex Inflation (WPI)
(Y-o
-Y %
ch
an
ge
)
In 2 out of 3 months, Sensex yielded NEGATIVE Inflation-adjusted return
The absolute return of Sensex has been -9.7% whereas Inflation increased by 15.9% in absolute terms
During last two-and-half years…
“Inflation is the crabgrass in your savings”
Table of Content
Why Investment? Methodology
Modes of Investment Why DPM is better
Stock market dreams! Our Investment Philosophy
ж Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Compensation Structure
Poor performance of Mutual Funds
In last 5 years… • Total number of 165 equity-based mutual funds yielded on average return
of 7.1% on annualized basis, which has hardly beaten the inflation. • Only 2 out of 3 equity-based mutual funds managed to outperform the
Sensex returns, with average return of 9.5% on annualized basis.• Around 5% of the total funds have actually been wealth-destructor, with
negative absolute return.
• Focus on Relative returns (compared to index) and not absolute returns. Still charges management fees and loads.
• Highly regulated industry and too many restrictions curb investment freedom and styles
Table of Content
Why Investment? Methodology
Modes of Investment Why DPM is better
Stock market dreams! Our Investment Philosophy
Mutual Fund dreams! Products Offered
ж Discretionary Portfolio Management Compensation Structure
Table of Content
Why Investment? Ж Methodology
Modes of Investment Why DPM is better
Stock market dreams! Our Investment Philosophy
Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Compensation Structure
Methodology #1
→ Discounted Cash Flow Valuation of the equity based on Free Cash Flow to Equity (FCFE) method done on Proprietary Valuation Models→ Accumulation and distribution based on relative position of price to Intrinsic Value Line
Methodology #2
→ Trailing and Forward Price-Earning Band as a tool to evaluate relative undervaluation and overvaluation of the market
Medium & Short-term Trading
• Trend-following systems• Mean reversion systems
Mechanical Systems
• Judgmental calls• Event-driven tradingDiscretionary
• Risk-free returns from market discrepanciesArbitrage
Table of Content
Why Investment? Methodology
Modes of Investment Ж Why DPM is better
Stock market dreams! Our Investment Philosophy
Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Compensation Structure
Mutual Fund Hedge Fund
Investment Philosophy Long-term investing
Long-term investing Positional trading Swing trading Day trading
Investment Style Fundamental Analysis
Fundamental Analysis Technical Analysis News-based
Financial Markets Equity Markets Debt Markets
Equity Markets Debt Markets Commodity Markets Currency Markets
Financial Instruments Cash Cash Futures Options Arbitrage
Directional Bias Long-only Long Short Neutral Volatility-based
Table of Content
Why Investment? Methodology
Modes of Investment Why DPM is better
Stock market dreams! Ж Investment Philosophy
Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Compensation Structure
• To reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions
• Ability to deliver non-market correlated returns• Objective consistency of returns and capital
preservation rather than magnitude of returns• Value-driven investment in CNX 100 stocks• Risk Management due diligence with emphasis on Net
Exposure and Gross Exposure• Non-naked directional bets with Options hedging• Prudent position-sizing and money management
Investment Philosophy
• Clarity of Investment philosophy• Risk management infrastructure• Identifiable source of alpha• Quality of firm’s investment team• Portfolio transparency• Quality of reporting and communications
Our Strength
Table of Content
Why Investment? Methodology
Modes of Investment Why DPM is better
Stock market dreams! Investment Philosophy
Mutual Fund dreams! Ж Products Offered
Discretionary Portfolio Management Compensation Structure
Products Offered
Product Name Features Risk/Return
XC Alpha Seeker Series A
Discretionary Investment
Portfolio
Low Risk – Low Return
XC Alpha Seeker Series B
Non-Discretionary Investment
Portfolio
XC InvesTraderSeries A
Discretionary Investment
Portfolio
Discretionary Trading Portfolio
Moderate Risk – Moderate Return
XC InvesTraderSeries B
Non-Discretionary Investment
Portfolio
Discretionary Trading Portfolio
XC Finwiz Rider Discretionary Trading Portfolio
High Risk – High Return
Table of Content
Why Investment? Methodology
Modes of Investment Why DPM is better
Stock market dreams! Investment Philosophy
Mutual Fund dreams! Products Offered
Discretionary Portfolio Management Ж Compensation Structure
Compensation Structure
Management Fee2% per annum of the asset value
charged at the beginning of quarter
Performance Fee20% of the profit generated above 15% in the year
charged at the end of quarterOther charges:
I. Demat account opening chargesII. Audit chargesIII. Transaction brokerage