Xumit Capital

Xumit Capital

Investment Management firm

Presented by:

Sumit Singh,Founder & Managing Director,Mob: (+91) 997 199 6276,Email: [email protected]

Website: www.xumitcapital.in

Presentation on

Discretionary Portfolio Management services

mailto:[email protected]

http://www.xumitcapital.in/

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




Risk α Return

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



ж Stock market dreams! Our Investment Philosophy



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

1 2 3 4 5 6 7 8 9 10

11

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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




ж Mutual Fund dreams! Products Offered


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

Disillusion or Confusion???

Table of Content





ж Discretionary Portfolio Management Compensation Structure

Long-term Investing

Medium-term & Short-term

Trading

Discretionary Portfolio Management

+=

Table of Content

Why Investment? Ж Methodology





Long-term Investing

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


Modes of Investment Ж Why DPM is better




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



Stock market dreams! Ж Investment Philosophy



• 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



Stock market dreams! Investment Philosophy

Mutual Fund dreams! Ж Products Offered


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



Stock market dreams! Investment Philosophy


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

Thank You!

Xumit Capital

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