Advance Strategy Simple Solutions

Dr. Wealth
Specialized & Concerned about the Health of your Wealth

www.narnolia.com

From the desk of CMD

Advance Strategy Simple Solutions

Business is no longer a matter public to any of profits alone. and in the Profits must come through confidence, businessman he gives to public confidence is given proportion to the service which customers
Krishna N Narnolia

May 1, 2012 added another momentous day in the growth history of our organization as we completed 15 years of our existence as a full service advisory and broking firm. As we look back we find this journey of fifteen years to be very satisfactory one in terms of size, variety and, more so, quality. During this whole period, our determined work in the specialized fields of indices development, fund management, portfolio diagnostic, corporate advisory, equity broking and operational excellence helped us to emerge as a leader, and win several national and international accolades. We have always believed that genuine money management process requires an organized & cutting edge knowledge, latest information, conceptual imagination and intelligent discipline. That being so, we launched our in-house research only initiatives Eastwind in New Delhi and National Market Wave Research Institute at Patna to further explore the quantitative, qualitative and technical research models. Nothing speaks better and louder than the quantum and quality of result. The relative out-performance of various model portfolios created based on above data and techniques was impressive enough in absolute and relative term to draw the attention of the leaders of the industry across the world and create a win - win - win business model for the investors, company and its distributors/people. We take particular care in ensuring that the increasing size of our organization should not affect the quality of our service, instead it should help us to add value. Accordingly, we keep restructuring and fine tuning the whole process of servicing at each touch points based on our experience and global best practices. I, on behalf of Narnolia, thank all our investors, associates and all well wishers for their continued trust and contribution during this whole journey of stupendous growth and we all look forward to serving you with greater care, concern, courtesy and commitment. Wish you happy investing.

Views : For The Narnolians

I give great credit to Narnolia ji for his great vision that how he has set up the operations & this is how big companies are formed because he wants to be the best in the country and these companies only flourish as the major companies of the country."

Sandeep Singh
National Sales Head - Franklin Templeton

"Narnolia Securities has played a pioneering role by bringing professional-level investment management and advisory services to a region where this was not available earlier. Its contribution to democratising investments are praiseworthy."

Dhirendra Kumar
CEO - Value Research

Narnolia Securities in a short span has become perhaps, the largest franchisee group of the country. This can be attributed to the professional and customers focused approach of the entire team. This coupled with the man management skills of Mr. Krishna N Narnolia will drive the organization to even greater heights.

Nandagopal
CEO & Country Head - Reliance Life Insurance

"I admire Krishnanands vision, strategy and orgnaization building capabilities. He is always thinking about how to become bigger and better. He has been able to create a very strong organization against all odds. If I want some strong customer insight, he is the person I call upon.

Motilal Oswal
Chairman - Motilal Oswal Sec. Ltd.

Narnolia Securities Ltd. has developed into one of our most successful and most awarded partnerships. In just 8 years Narnolia Securities has been able to grow to an organization with over 275 outlets, servicing over 1,00,000 clients. This is a testament to the leadership of Mr Krishna N Narnolia and the passion of the entire team at Narnolia Securities Ltd."

Raamdeo Agarwal
MD - Motilal Oswal Sec Ltd.

My vision for creating wealth for my investors got a great boost with my association with Narnolia Securities with Goodwill of Brand Narnolia & their world-class products, services & strong value systems, along with charismatic leadership of Krishnaji. He and his team really work as Financial Doctors in finding solutions for financial problems of clients in most efficient way.

Umashankar Choudhary
Strategic Partner & Director - Pasupati Capital

I am really impressed by the company and its people for their sincerity, honesty, dedication and complete transparency. I am a guy who does not get impressed so easily and I am now fully satisfied and the value addition they are giving to my money is quite appreciable and I wish this company grow more and more.

R. P. Ritolia
Client and former CMD - CCL

Investment and Business Opportunities

Advance Strategy Simple Solutions

"Not even a world war can keep the Stock Market from being a bull market when the conditions are bullish, or a bear market when conditions are bearish. All a man needs to know to make money is to appraise conditions"
Lawrence Livingston

Generation and management of money was never so difficult and easy as it is today. The needs were limited, the opportunities were limited, the Darwinian theory of survival of the fittest was not that intense, the return on the age old reliable no brainer ally (Bank deposit, PPF like fixed return schemes) was giving enough return to obviate the need to think beyond it. The emergence of India as a phenomenon in the globalized world backed by favorable relative demographic, economic and geographical conditions brought with it several lifetime opportunities and, unfortunately, many more difficulties also for those who were/are not fit enough. We believe that these trends and habits are not temporary phenomenon and are likely to last beyond geographies and generations backed by these inherent relative strengths. As per the Demographic Model, when a country passes through stage 3 it offers immense potential of business and investment opportunities which is impossible to repeat in one's lifetime.
Stage 1 - expanding Stage 2 - expanding Stage 3 - stationary Stage 4 - contracting

Age 65

15
Males (%) Females (%) High birth rate, rapid fall in each upward age group due to high death rates; short life expectancy. Males (%) Females (%) High birth rate, fall in death rate as more living in middle age; slightly longer life expectancy. Males (%) Females (%) Declining birth rate; low death rate; more people living to old age. Males (%) Females (%) Low birth rate; low death rate; higher dependency ratio; longer life expectancy.

In case of India, stage 3 is believed to have started between 2005- 2010 and should last at least 30 to 40 years. This period with low ratio of dependents will lead to a period marked by higher savings ratio, higher investment ratio and also higher consumption ratio, and the virtuous cycle spins. We call it a THIRD WAVE and are of the view that the benefits of this wave will be shared disproportionately by few who are suitably placed; be it an individual or corporation; be it an active investor or passive; be it a profit organization or not-for-profit organization. The power of knowledge will be realized increasingly beyond the libraries as an important partner of growth. 'Growth for the sake of survival' will be the refined mantra for the businesses and how much of equity' will replace 'whether to have equity' in the financial planning of the passive investors including the corporations, charities etc. We believe, the sooner one adapts and takes the right step in the right direction the better are the chances of one's survival and growth.

Built to Last Foundations

We know what we should do and what we should not. The bedrock of such informed beliefs and decisions is grounded in our core principle of improving financial security of our select customers in a way which is absolutely ethical and relatively superior, than the industry standards, and also in a way that the long term interests of the company is taken care of automatically while believing and doing so.
Advance Strategy Simple Solutions

The key to realizing a dream is to focus not on success but significance and then even the small steps and little victories along your path will take on greater meaning.
Oprah Winfrey

Vision
We will be the most trusted, most knowledgeable, most understanding and most concerned provider of value added and customer centric financial services in our strategically chosen class and also mass market.

Mission
We commit ourselves both in thought and action to raise ourselves in the eyes of our true boss i.e, the investors from being a mere transaction broker to a true family financial doctor and help them to protect and improve their financial health. We further resolve not to sell daru (gambling) in the bottle of dawa (investment) and will dare to tell them the difference between the two even if it results into low revenue in the short term. We shall invest most of our time, energy and resources to reduce gaps at each touch points with our existing investors, and shall see our growth in their growth. Let us believe that quantity follows quality.

Our Core Purpose

Like a Doctor whose primary duty is to save and improve the life of his patient, the primary duty of our company, as an investment and financial advisor, should be to help our customers protect and create wealth. The profit of the organization should be seen as the secondary objective and as the resultant of the primary duty.

Our Business Model

The business model is centered around the vision, mission and core purpose of the organization. It was realized that the interests of the customers (core purpose) could best be served if we have the expertise to create such products and services which can truly serve the interests of the investors and then if we have a distribution channel which can deliver such products and services in the most personalized, localized and efficient way. Accordingly the unique Wealth Creation the Narnolia edge model was developed with various intensive research based products and services which can genuinely claim to be truly world class and truly personalized.

Narnolia : Brief History

Advance Strategy Simple Solutions

I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.
Alan Greenspan

The history of the company dates back to 1993. The brilliant academic track record and a deep understanding of capital market of its founder CMD Mr. Krishna N Narnolia helped him to lay the solid foundation of Narnolia with well defined philosophies and core values.
1997 q The firm was corporatized. Mr. Shailendra Kumar

(B.E., M.Tech, IIT Delhi) joined the company as one of the co-founding director who brought with him his experience of fund management and advisory.
1999 q Strategic decision was taken to spread out. Became

the first company in the area to open self managed branches and franchisee outlets with both NSE & BSE terminals.
2004 q Tied up with Birla Sunlife

as the exclusive

distributor of its life insurance products.

2005

q Strategic tie up with Value Research headed by Dhirendra Kumar for exclusive advisory to the investors of Narnolia. Published jointly monthly magazine Narnolia Mutual.

2006

q Launched Narnolia Premier Club for its premium clients.

2007

q The company was converted in to Public Ltd Co.

q Corporatized the research wing in the name of

Eastwind based on global best practices of research.

2008 q Got

ISO - 9001 : 2000 certification for Quality Management. Got upgraded to ISO - 9001 : 2008 in the year 2010.

q Series of investment and Corporate Benchmarks (e/w index) were launched including the All Share Index which represents 99.5% of market capitalization.

q Launched "Knowledge Capital" to impart basic and advance knowledge & training to investors. q World famous Islamic Index was launched in New-Delhi by Smt. Sheila Dikshit (CM, Delhi), Mohd. Ashraf Fatmi (MOS, Govt. of India), Mr A. M. Ahmadi (Former Chief Justice of India) in the presence of representatives of various Governments and institutions. It got national and international accolades and is still most widely tracked index to identify Shariah Compliant Indian stocks.

Narnolia : Brief History

2009 q The launch of Model Eagle Fund on 1st October
Advance Strategy Simple Solutions

2009.
2010 q Published 'Narnolia Finedge' magazine with digital

fundamental research based Superior Performance Ranking (SPR) on 1641 stocks & 150 Mutual Fund schemes. q Eastwind emerged as pioneer in quantitative equity research which drew interests of the leading names in the financial industry including Merryl Lynch, Blackrock, JP Morgan, Ernst & Young LLP, Goldman Sachs, HSBC Banking & Financial Services, Barclays Capital, First Quadrant, PNC Bank, UTI etc. q 'Wealth Creationthe Narnolia edge' Model was launched with superior return generating products & services. q SAFE services launched to work as Secretary, Advisor, Friend & Expert of client through in-house software 'Spectrum'. q Research Lab founded which prepares the SDR (Screening, Diagnosis and Recommendations) report to find the potential of investor's holding to beat the index in the long run and take full advantage of India growth story. This has revolutionized the whole concept of wealth creation in the country.
2011 q Opening of Central Strategy Desk for premier club

Disneyland will never be completed, as long as there is imagination left in the world
Walt Disney

members.
2012 q Launch of Narnolia India 3T Fund on 27th of March

2012. q Monthly Magazine of Narnolia "Market Twitter" was launched by Mr. Ramesh Damani, with technical & fundamental research updates from our own research lab. q Became the first LLP of India to apply for AIF Hedge Fund category under SEBI (Alternative Investment Fund) Regulations 2012.

Research Lab
Advance Strategy Simple Solutions

When you go to 10 doctors to discuss the treatment for a disease and if all agree on one treatment you opt that; but in investing it can be the most dangerous option
Anonymous

This innovative concept of advisory on a stock or ones portfolio to help our individual and institutional clients to reap maximum benefits of India growth story as it unfolds over a period of time, has drawn interests and accolades from individual and institutional clients, fund managers and industry leaders across the globe. The objective was to advise our clients to pick the criteria based best performing stock/portfolio on an absolute and relative basis from out of the widest possible and available investment universe. The all famous SDR report is prepared by our team of investment experts of this Lab based on such research data analytic wherein we offer to analyze the portfolio of each of our select investors to find the allocation imbalances of the portfolio vis-a-vis the Index and the desired range on the parameters of size, sector, style and value matrix. And based on this comprehensive screening and diagnosis two optional recommendations are given to the investors to restore the balance and, thus, to reap the full benefits of India growth story.

Research Methodologies 4 steps

1. Investment Universe Creation & Classification Data Analytics on widest Indian Market Coverage : 1641 Stocks with 99.5% of the total market capitalization. Grouping of stocks into 4 Cap, 10 Sectors, 44 Industries, 76 Sub-Industries, Style based and Theme based Classification. Stocks Quantitative Parameters : 'Earning Score' and 'Price Score' using detailed financial account data of these companies.

for detailed process please visit

narnolia.com/index.php/research-lab/

2. Approved 'Buy' list preparation Identifying Valuation Multiple for each Industry. Data analytics by placing stocks into four quadrants based on growth and valuation. Analyzing last 10 years valuation & growth history of each Co. Identifying companies with appropriate growth and valuation characteristics to be placed in approved 'buy' list.

3. Focused 'Buy' list preparation Identify valuation trends for stocks of approved 'buy list' in peer relative sense by using valuation mapping techniques. Data Analytics using statistical technique as applied on price data of all stocks to identify stocks exhibiting rising ALPHA. Identifying top 70 stocks for Portfolio recommendations. 4. Portfolio weightage allocation/Risk Management Proprietary Model to determine optimized weightage to various industries. Benchmark weightage is revised based on industry index performance & adaptable sniffing model using fundamental parameters to decipher 'themes in force' in the market. Optimal weightage assignment to avoid risk concentration Portfolio Analytic Report : SDR The all famous SDR (Screening, Diagnosis and Recommendations) report, all across the world, is prepared by our team of investment experts of its Lab at New Delhi based on such research data analytic wherein we offer to analyze the portfolio of each of our select investors to find the allocation imbalances of the portfolio vis-avis the Index and the desired range on the parameters of size, sector, style and value matrix. And based on this comprehensive screening and diagnosis two optional recommendations are given to the investors to restore the balance. The recommended portfolios are then tracked on line with the use of in-house software and rebalanced depending on macro indicators, market conditions, out-performing themes, relative performance of stocks etc. and, thus, to reap the full benefits of India growth story and generate a revenue which is more than his personal style of investing and relevant benchmarks. For sample copy of the report please visit:
narnolia.com/index.php/research-lab/sample-q-pod-sdrreport/
Advance Strategy Simple Solutions

A man with his head in the oven and body in the freezer may have an average body temperature of 98.6 degrees, but he cant be comfortable. A good average return on investment the cant of justify poor importance

businesses and anonymous bull market tips.

Anonymous

Alfaerators Gen
Beta Control

Financial Discipline

Psychological Discipline

Fund Management & Advisory

Advance Strategy Simple Solutions

The

normal

client

has

a risk tolerance of 100 % equity when the markets are up and 0 % equity when the markets are down
Anonymous

Any person claiming/charging fee against fund management or advisory activity has a fiduciary responsibility to its customers to generate superior return at a given risk compared to the no brainer relevant benchmark and the peers. But, data suggest that more than 70% of the fund managers across times and across countries have failed to do so and those who could do it have contributed meaningfully to investors wealth creation. This being the fact, Narnolia has always seen good enough meaning in allocating higher percentage of its resources than the industry average towards this pursuit of generating this risk adjusted out-performance. The research team at New Delhi under the leadership of Mr. Shailendra Kumar, co-founding director and research head, has worked for over 10 years towards this pursuit by exploring all known strategies and tools of superior return on 1641 stocks (99.5% of market cap) with the use of 80 valuation techniques based on the best practices of both quantitative and qualitative research models. The performance of various model portfolios created based on above data and techniques have generated alpha at a desired beta over the back tested period of over 10 years and empirical period of 3 years, which was enough in absolute and relative terms to draw the attention of the leaders of the industry across the world and then to launch our registered portfolio management and advisory services. Wealth Creation Objectives for Investors 1. Beat the relevant index on a sustainable basis over the years without taking extra risks and, thus, to remain amongst the top fund mangers and advisors. 2. Beat the return on bank deposits by atleast 200-300% in all of the equity schemes over a long time horizon. Wealth creation Objectives for Traders 1. Maintain the overall success ratio to the bare minimum of 55%. 2. Keeping the success ratio better than the industry.

Wealth Creation - the Narnolia edge

Advance Strategy Simple Solutions

Narnolia Research Lab East wind

Tie up with Value Partner

Powered Products
Advance Strategy Simple Solutions

Investment Category Narnolia Edge Risk **

Powered Products

Nature of Service

Market Exposure

Investment Objective *

Source of Superior Return

Complete Product Details/ Past Performance

Liquidity (Appx)

Treasury Management

Advisory

Money Market Instruments

INTEREST +
Proprietary value added Products to encash price differentials across markets and segments Inter Market / Segment (including options) inefficiency Beat bank deposit rate of interest by at least 40-50%

Advised liquid funds with high SPR and funds Superior net return over that has papers of short duration and mid to high bank deposits credit quality

Relative performance analysis of paper quality of each scheme

Very low. Depends on Schemes paper type Indiscipline by traders and /or technical faults

P sheet

1-2 days

Arbitrage

PCG

Nil

P sheet

2-5 days

INTEREST ++

Absolute Return Fund

AIF

Long Short : Almost 100% Hedged

Combining the advantage of arbitrage, options and fundamental based multi pair Long short strategy based on world class proprietary models.Multi year fundamental data of 1641 ( 99.5% of MCap) Capital Protection & companies of India feeded into Quant model to annualised return of 0 ascertain divergence in historical relationship. On 24% over a long period. line monitoring of over 7,000 pairs of stock on real time basis coupled with efficient trade execution and tight risk control to avoid Black Swan events Historical Co-relation of Pair of Stocks

Sudden corporate announcement like mergers/ acquisition etc and frauds.

Product note/ P Sheet

2-5 days

Narnolia EAGLE 3T Fund

Long Only

PMS

Proprietary Multi-Cap Quant long only fund that processes 7 years P/L, BS and Cash flow data of Companies resulting in portfolio of low beta, India story based DIVERSIFIED portfolio in terms of size, sectors, theme and value. Active alpha generation through investing in companies with rising relative growth and valuation

Beat S&P CNX 500 handsomely on yearly basis by restricting under performance during bearish & sideways market to 0 -2%

Allocation, Selection, Diversification. Market volatility is used as opportunity through active management

Similar to S&P CNX 500

Product note/ P sheet

2-5 days

Narnolia INDIA 3T Fund

Long Only

INDEX +

Proprietary Multi-Cap Quant Model that processes 7 years P/L, BS and Cash flow data of Companies resulting in portfolio of India story based GROWTH and MIDCAP BIASED stocks. Active alpha generation through investing in companies with rising relative growth and valuation

Beat CNX Mid Cap handsomely on yearly basis by restricting under performance during bearish & sideways market to 0 -2%

Identifying few multibagger idea out of the diversified theme based growth biased portfolio.

Almost in line with CNX Midcap

Product note/ P sheet

2-5 days

Relative Return Fund

AIF

Long Short

A diversified portfolio largely from out of the basket comprising Eagle 3T and India 3T fund with an addition of few other opportunities + Back tested Fundamental based Multi Pair Strategy using hedged leverage upto 30-50%

Beat S&P CNX 500 handsomely on yearly basis over and above long only funds

Allocation, Selection, Diversification, Active management, Hedged leverage

Almost in line with S&P CNX 500

Product note/ P sheet

2-5 days

Eagle Model

Long only

Proprietary Multi-Cap Quant long only MODEL fund that processes 7 years P/L, BS and Cash flow data of Companies resulting in portfolio of low beta, India story based DIVERSIFIED portfolio in terms of size, sectors, theme and value. Active alpha generation through investing in companies with rising relative growth and valuation

Beat S&P CNX 500 handsomely on yearly basis by restricting underperformance during bearish & sideways market to 0 -2%

Allocation, Selection, Diversification. Market volatility is used as opportunity through active management

Almost in line with S&P CNX 500

Product note/ P sheet

T+2 days system of exchange

India 3T Model

Long only

Proprietary Multi-Cap Quant Model that processes 7 years P/L, BS and Cash flow data of Companies resulting in portfolio of lndia story based GROWTH and MIDCAP BIASED stocks. Active alpha generation through investing in companies with

Beat CNX Mid Cap handsomely on yearly basis by restricting underperformance during bearish & sideways market to 0

Identifying few multibagger idea out of the diversified theme based growth biased portfolio.

Almost in line with CNX Midcap

Product note/ P sheet

T+2 days system of exchange

rising relative growth and valuation -2%

Model Mutual Fund 2-5 days

Long only

QUANT+QUALITY (Black litter man mean variance etc). Systematic process - 2 stage 13 level Beat Nifty reasonably on filteration model to arrive at a combined India yearly basis story linked portfolio Allocation, Selection, Diversification, Active management Almost in line with Nifty Product note/ P sheet

Model fund Allocation, Selection, Partial diversification, Active management, Timing, Relative return May have little higher beta in the short term Product note/ P sheet

INDEX +

FTDC Model Fund

Long only

Absence of right Proprietary Multi-Cap Quant Model including benchmark for the stocks recommended from fundamental and concentrated portfolio. technical both desks. Active alpha generation Based on historical through investing in companies with rising relative testing it has beaten growth & valuation. Switch to Gold bees/Liquid Nifty handsomely over a Bees is done on basis of macro indicators period of time

T+2 days system of exchange

Fusion Plus Model Fund

Long biased Long Short

Proprietary Multi-Cap Quant Model including stocks recommended from fundmental and technical both desks. Active alpha generation through investing and active disciplined trading in companies with rising relative growth & valuation. Switch to Gold bees/Liquid Bees is done on basis Superior absolute return vis a vis unorganised of macro indicators. Also suitable to those who trading/passive believes in active trading -- driven by knowledge investmen based disciplined method, suitable to his/her profit goals, risk appetite and time horizon. This process has been developed by the research team based on global best practices back and forward tested with historical data and virtual paper trading in real time. Allocation, Selection, Partial diversification, active management, timing, Relative return Little high beta. Stop loss is followed.

Product note/ P sheet

T+2 days system of exchange

ET

E/W Thematic calls for purple club members generated on the basis of undisclosed news and results which can bring price spurt Absolute return

Short term Market inefficiency created by result and news

All equity related risks

Company report

T+2 days system of exchange

Value Call/ EC

A potentially great business available at a price lower than its fair value from out of approved buy list portfolio Absolute return

Short term opportunities created by market cycles where sometimes, prices move much below underlying value of a stock.

All equity related risks

Company report

T+2 days system of exchange

KN Calls

Visible price spurt & multi baggers within the India growth stocks

Absolute return

All equity related risks

Company report

ADVISORY +

Advisory Calls

Stock Specific

Short term opportunities created by market cycles where sometimes, prices move much below underlying value of a stock which has potential to grow multiple times..

T+2 days system of exchange

Switch/SPR Calls

To encash the short term gaps between ES & PS of companies within the same sub Industry

Relative return

Co-relation of 17 fundamental parameters of each stock within the sub industry

Sudden corporate announcement like mergers/ acquisition etc and frauds.

Company report

T+2 days system of exchange

Option Strategy

Proprietary Option Pricing model and computer driven system to spot over valued and undervalued Options. Buying and selling Option with offsetting position in futures to keep beta at Zero

Absolute return

Implied Volatility Structure and its mean reverting tendencies

All equity related hedged risks

P sheet

T+2 days system of exchange

* Objective set for the fund manage and should not be assumed as being a guarantee by the house

** For complete risk refer our disclaimer

Wealth Management Services

Advance Strategy Simple Solutions

Wealth is defined as the difference between what one owns and what one owes. It can be in the form of personal property, monetary savings and capital wealth.

The real question to ask is not is it a good solution?; instead, it should be is this solution appropriate for our customers?
Anonymous

Objective
To help the investors to know, understand and prioritize their total needs in different phases of life and then to use all of its scarce resource in a way that it leads to financial independence and mental peace.

Investment Methodology
What differentiates our Wealth Management service from others is its approach which is both holistic and individual customer centric with value addition at each stage : 1. First, we help the investors to identify various needs that he might be or should be having for his dependent children and dependent retired seniors. We, then, help them to identify his and spouses various hidden needs, intermediate needs and their own retirement needs. As the resources are limited and the cost of each need is inflationary in nature we help the investors to quantify and prioritize such needs and then help them to plan for various needs depending on his personal constraints, viz, time horizon, risk appetite and financial resources. 2. Secondly, we educate each client to understand the needs and the earning power of his resources on the risk return parameters. 3. Thirdly, We estimate conservative returns of each of the 11 avenues over a period consistent with needs time horizon. And then the standard deviation, covariance and correlation are calculated. 4. Fourth, all these estimates are fed into the in-house computer optimizer and after lots of analysis of various combinations best suitable portfolio is arrived at. 5. Fifthly, the investment policy is finalized accordingly with a comprehensive road map in terms of where to invest, how much (strategic and tactical allocation) to invest in different avenues and how to measure performance in future against the benchmarks. For this purpose 'Eastwind' has developed 65 different indices to make the comparison meaningful.

6. Sixthly, diversify the portfolio in each avenue to generate superior return with the support of the world-class inhouse wealth creation model. 7. Seventhly, the performance of each manager/scheme is tracked:luck v/s strategy relative to index, their benchmark, other peer group managers. In case of consistent underp-erformance, particularly due to compromise in philosophy, process and people the manager is fired. 8. Last, we conduct regular client reviews, rebalance and modify allocated funds as per changes in client needs, opportunities, fund size and natural imbalance due to differential growth. Wealth Management Products : There are two ways to take benefit of wealth management services: a. My goal / goals : Those who want to take benefit of the whole exercise of the world class wealth management services of India for one or more of their definite need/needs can avail this facility. This option is suitable to those who either dont have the constraints of resources vis-a-vis their needs or to those who want to take time before moving to the comprehensive one. My penny : This is the most comprehensive wealth management policy wherein the wealth manager becomes a family financial doctor of the investor for all of his needs and aspirations as against their constraints.

Advance Strategy Simple Solutions

The recommendation to buy equities is not for higher return alone but because they are one of investors safest assets
Evenskey

b.

Objectives & constraints

Monitoring Investing Objective

Portfolio construction and revision Asset Simulation Model Investment Policy

Money manager Selection, implement and execution

Attainment Investment Objective

Capital Market Expectation

Monitoring Money Managers

Wealth Management Services : Process

Index Management
Advance Strategy Simple Solutions

If you can keep your head when all about you are losing theirs, yours is the earth and every things thats in it"
Rudyard kipling

Narnolia is, perhaps, the largest non exchange Indices development company in the country, being tracked by fund managers, AMCs, financial intermediaries, Individual and Institutional investors, market regulators, academic and research institutions and government agencies across the globe, leading to business relations with various entities which initiated with the Unit Trust of India.

Use of Indices
The EW series of indices are being created to meet the markets need for: Sophisticated measure of the performance of the entire capital market. An improved measure of risk-reward ratio, and better tools with which to make asset allocation and investment decision. Effective one-stop market portfolio diversification. Using portfolios in asset management. A basis for mutual funds, ETFs, options, derivative products etc.

What we do
The company has developed these Indices for both Mutual Funds and Direct Equity - in line with the global best practices being followed by names like Standard & Poor, FTSE, Russell, Dow Jones etc. Herein huge amount of data is collected, updated and then the same is organized, processed and updated every day, using rule-based methods to formulate the index. This statistical selection removes the subjectivity and represents more accurately the history, mix and behavior of the capital markets. These Indices for Mutual Funds include all asset classes viz Liquid Fund, Income Fund, Arbitrage Fund, Equity Fund and Gold Fund, and for Direct Equity the company has developed '69 Indices' including the world famous and widely tracked All Shares Index and Indo Islamic Index which is a Shariah compliant representation of the Indian Capital Market. It was launched by Smt Shiela Dixit (CM : Delhi). This Initiative was an applied action of International Conference on Indo Arab Relations graced by the Honble Prime Minister of India, Vice President, Finance Minister, a host of Central ministers, Ambassadors, leading industrialists, economists, bankers and academicians from across the world. For detailed processes, data and updated Indices please visit
narnolia.com/index.php/index-management

Strategic Alliance
Narnolia was amongst the very first few to have recognized, believed and widely propagated the India growth story. The country is passing through unprecedented phase of growth which comes once in 200 300 years of life cycle of a nation. It would mean different things to different people and will influence different people in different sectors and in the same sector or even in the same industry very differently. Thankfully, broking industry is likely to be one of the major beneficiaries of this unprecedented growth, but as always there wont be any single best path to success and no exclusive approach to seizing opportunities. Those suitably placed will grow multifold at the cost of others who will fail to adapt. Few of the projections based on our research work on Contextual Intelligence can be of relevance : by 2022 SENSEX can grow 6.5 times, broking industry can grow over 5 times, top 10 broking firms can have 68.2% market share, trading income to decline to 1/8th, advisory income to grow 8 times What is in store for you? How can you be a beneficiary of this unprecedented growth and threat cycle? 15 years of intensive research and experience of the company and the broking industry across times and across nations have helped us to evolve best product mix in the country and 5 different ways to survive and grow depending on specific circumstances of each company (For details please visit narnolia.com/index.
php/strategic-alliance/5-ways-of-survival-and-growth/ ).
Advance Strategy Simple Solutions

'Shared interests give rise to partnership, shared minds make it grow, but it is the shared values that make it sustainable'
K Narnolia

Different combinations are worked out based on the 78 steps, 35 processes and suitable capabilities which can help our strategic partners to ride and enjoy this journey of growth.

Who can be Benefitted

Common interests give rise to partnerships, common minds make it grow and it is the common values and beliefs that make it sustainable. Those in the following businesses and those who share our values and approach can join hands with us to create synergy : Broking Firms Banks Depository Participants NBFCs AMCs Insurance Companies Arbitrageurs, Big Sub Brokers, Trusts etc.

Advice Based Broking

Advance Strategy Simple Solutions

Types of Account e Only Advisory e Next Margin trading*

Services provided

Premier* *

Need Analysis

Done proactively before account opening and in every 6 months. Can be modified in between

Both (web/exe) Offline Both

NSE, BSE (Combined Ledger)

Derivatives

Platform

Offline

Both

A/C Opening

Depository value account : Hidden Benefits - Free calls/sms against stocks, SDR Report, DP value, exposure available, SPR, recommended switch, spot payment. NO Hidden Costs - No interest on DP debit, No advance money, No penalty on instruction failure, No extra charge on additional holding statement, No account modification charge, No extra cost on re issuance of delivery instruction (DI) book.

3 days 3 days

3 days

15 days

1-2 days

A/C Opening *** : Online Tracker

Intraday

Non dedicated 3 Chat/voce calls

RM 2

RM 2

RM 2

Financial strategist 1

Bnst

Trading Calls (Mechanical & Wave Research)

Very short term

Short term

Derivative

Advisory Calls

Investment

ET/EC/Value Call

Fundamental Calls

Switch/SPR Calls

Option Strategy

KN Call (Qualitative+Q)

Fusion Calls

FTDC

L S Active

Dedicated Service Provider

Sequence of delivery to offset impact cost

Trade Execution

Mode of Delivery

Chat/sms/voice Chat/sms/ calls/ phone voice calls/ with explana- phone with extion planation Time Lag

Chat/sms/ voice calls/ phone with explanation

Chat/sms/voice calls/ phone with explanation

Interactive Query (News, Technical, Fundamentals)

sms Automated

sms Logical exceptions

sms Logical exceptions

sms Logical exceptions Purple club

Separate infrastructure space, Phones etc.

Emergency Trading

sms Logical exceptions

Opening Limit and Balance

Subsequent Limits

Inter Segment, Inter Market Fund Settlement

Long + Rota-

Personalization

Long & Rotational Settlement Time (calendar days) except during

and localization tional

RMS & Banking

extraordinary times

RMS selling reminder on previous day evening

Same day Same day same day same day Same day

Within 3 days Within 3 days Within 3 days

Within 2 days

DI / Cheque bouncing reminders

Payments (NEFT / RTGS / Direct)

Spot Payment *

Within 3 days

One Point Personalized Contact for all types of queries, complaints, suggestions, requests etc related to all departments

Mode of Communication

Customer Support

chat, sms, call (tolfree), mail, in person

chat, sms, call (tolfree), mail, in person

chat, sms, call (tolfree), mail, in person

chat, sms, call (tolfree), mail, in person

chat, sms, call (tolfree), mail, in person

Feed forward

(Hard copy) (Hard copy) (Hard copy) (Hard copy) (Hard copy)

Upbhokta Santusti Survey (every 6 months)

Aapke Dwar Tak (collection & distribution of all documents)

Daily : Market diary containing top stories, chart, economic calendar, result calendar, top news. E/W index return, derivative sty, FTDC, LS Active

Weekly : EW Advisory Package Containing Digital Rating & SPR (Share, MF : Eq, Debt, Liq.), Model Portfolios (Eagle, India 3T & MF), Equity trend indicator

Research Reports

Monthly : Narnolia Market Twitter : Sector & Industry Updates, Company Reports, Technical Trend with chart, Research Tweets, Quarterly results (expected & actual) Important Event, Economic Calendar

Quarterly : Finedge, Results updates with impact rank, India Strategy

Yearly : wealth creation report

As and when : IPO, Sector/Company Report/Derivative Strategy Report, New Product Info

Personalized web page for individual & family to provide you at a glance report related to anything and everything of your holdings in various asset classes

Portfolio tracker: Current mkt price,in house/others technical, fundamental, SPR research & recommendation, recommended switch, holding pattern,news, M2M & total loss/pft, Limit order execution etc

Spectrum (SAFE Services)

Portfolio Screening Diagnosis and Recommendation Report : After initial screening of the existing portfolio, diagnosis is done to find disparity against benchmarks in terms of size, sector, style on Quant. Based on that recommendation is given to rebalance it.

as applicable

as applicable

as applicable

as applicable

Free a/c opening

All informations related to past performance of model portfolio,index,world market, macro&micro events

Back office operations: Free online access to back office to know - Dp holding, Debit stock summary, Ledger details, Pay in shortage, Contact notes, KYC details etc.

Convenient access to us for all secretarial or advisory work

Tax liability and advisory (short term,long term,business etc) on total holdings lying with any house

Tariff

Linked to value addition in terms of manufacturing, personalization & localization

* Done through separate company, ** Please contact NPC team on 093320 53192 for details, *** The forms should be complete as per guidelines.

Disclaimer : All of the service details etc are given based on some assumptions and are subject to this an other disclaimers in various electronic and physical documents of narnolia, group companies and its

main brokers etc. All or any of these services etc may be withdrawn or modified at any point of time with or without prior intimation. The customers shall have no claim against any of these commitments except

against those which are mandatory as per the bye- laws of the concerned authorities.

Distribution
Advance Strategy Simple Solutions

'It is not the strongest of the species that survive, nor the most intelligent, but one most responsive to change'
Charls Darwim

Primary Market : Initial Public Offer (IPO) by non listed companies or follow on offer by presently listed companies present good opportunities for making high returns on investment in a very short period of time. However, contrary to common belief investment through new issues does not always give high return or guarantee capital protection. We provide you the list of all forthcoming new issues & indepth analysis of all such issues. Online bidding collection centres at multiple locations and a detailed news, views, follow up, recent listings etc are provided to our investors free of cost. We have a dedicated servicing team to help you to relieve you of all possible hassles of investing in new issues. Insurance : As per several estimates it is observed that Indians are grossly under insured due to lower per capita income, low level of understanding of this hidden goal and also due to the havoc created by the insurance agents. We, at NARNOLIA, realize the importance of insurance as one of the most important need of an individual which will soon be bought willingly by the investors as a part of the asset allocation exercise; instead of being sold to. We entered into some exclusive tie ups with the leading life and non life insurance companies of the country. The policies are sold strictly as per the needs of the investors keeping in mind the total cost-benefits of insurance to the clients. Mutual Funds : Mutual fund schemes are preferably sold as a part of Model Portfolio (MMP). But, all those who want to buy schemes beyond the recommended portfolio can do so through our distribution channel. We can assist our investors here to create wealth because of : a. Our tie up with almost all the AMCs operating in the country. b. The exclusive tie up with Indias premier Mutual Fund advisor-Value Research, headed by Mr. Dhirendra Kumar with whom a monthly magazine Narnolia Mutual (a part of Narnolia Wealth) is jointly published. c. The globally acclaimed in-house research team of Eastwind, a Narnolia research Initiative, which allocates SPR ratings to various mutual fund schemes based on the future superior return rather than the historical performance. The model portfolio suggested by Eastwind has been able to generate superior return than the benchmark on a consistent basis

Commodities and Currencies

Of late commodities and currencies are emerging fast as meaningful options of investment along with other asset classes and are likely to have a deeper root with the participation of wider segments of market participants like investors, hedgers, arbitrageurs, traders, manufacturers, planters, importers, exporters etc. It is expected that volumes in commodities and currencies will surpass the volumes in equity. Both on-line and off-line trading facilities along with specialized in-house research advisory based on technical and fundamental analysis are made available to support various participants in a suitable to their needs.
Advance Strategy Simple Solutions

true

professional

is

one who adheres to ethical standards and is accepted by others as possessing relevant knowledge and skills derived from research, education and training, and who is prepared to apply it in the interest of others
Dictionary

Narnolia Knowledge Center

Scientia potentia est i.e. knowledge is power was said originally by Sir Francis Bacon in 1597 but its relevance was never realized more than today when knowledge is considered both as the product and the crucial factor/enabler in the development of both society and, increasingly, of the economic conditions of the individual, organization and the nation. This change was brought about or facilitated by the emerging interlocking forces of globalization and the emerging dominance of service sector led economies enabled by the revolutions in technology, media and telecommunication. Over the last few years the importance of knowledge is being realized to arrive at the investment decisions as the inflation adjusted return on the age old no brainers ally i.e. bank/ post office deposit is hardly enough in the context of the rising aspirations of TV dominated nuclear family, easy consumption & investment finance , convergence of entertainment, retailing and tourism. In view of this we, at Narnolia, decided to create an independent department to impart knowledge and training to the investors, traders and also to the company employees. It includes the basic and the advance course on Indian financial system, macro economic indicators, India story, technical & fundamental analysis, wealth management, working of various financial markets comprising money market, bond market, stock market, commodity market and the forex market etc.

Recognitions and Awards

Advance Strategy Simple Solutions

Nominated

by CNBC as the 'Best Investment Advisor for

the East' for 2008.

Each reward is nothing but a residual result of relentlessly asking the question 'how can we improve ourselves to do better tomorrow than we did today'.
James Collins

Recognized by Franklin Templeton as the 'Best Distribution House in the East in terms of no. of Applications. Later a case study was conducted on Narnolia at its US headquarters.

Won the Best Franchisee Network of the Country Award

for 2004, 2006, 2007 & 2008 by MOSt.

Honored

with G D BIRLA award for the contribution to the

state of Jharkhand.

Recognized for having leading market share in several IPOs

including one by Punjab National Bank for a market share of 84% in Jharkhand.

Honored

with Business Leadership Award for Industrial

Development by Indian Economic Development & Research Association (IEDRA) at New Delhi.

Honored with Hall of Fame award at Singapore

the country by MOSL.

and again

with prestigious Champion of the Champions Trophy of

Awarded by Reliance life as the Best Channel Distributor of

the country for several quarters of 2007-08.

Got

national and international recognition/appreciation by for the launch and

various dignitaries and world media

maintenance of Shariah compliant EW Islamic Index.

The

quantitative equity research of Eastwind is widely

recognized and tracked even by the leading names in the financial industry including Merryl Lynch, Blackrock, JP Morgan, Ernst & Young LLP, Goldman Sachs, HSBC Banking & Financial Services, Barclays Capital, First Quadrant, PNC Bank, UTI etc.

Thematic
interest.

studies and co-research studies with Economic

Times on several topics drew huge public/institutional

Annualized return of 23.69% on our unique "Quantrade

Strategy" where risk is almost 'Zero', even during bearish market drew wide interests and recognition by industry leaders locally and globally.

Launching of Islamic Index by Smt. Sheila Dikshit in New Delhi

Nominated by CNBC Best Investment Advisor, 2008

Launching of Narnolia Market Twitter in Ranchi by Mr. Ramesh Damani

Launching of Narnolia Mutual in Ranchi by Mr. Dhirendra Kumar, CEO Value Research

Best Distribution House award by Franklin Templeton who also conducted case study on Narnolia in USA

Best Franchisee award for 4 consecutive years in the presence of Mr. Samir Arora

Hall of Fame award by MOSt in a function held at Singapore

Felicitating Sri. B.K. Birla in Ranchi

Business leadership award by IEDRA

Disclaimer : This report/message is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Narnolia Securities Ltd. (Hereinafter referred as NSL) is not soliciting any action based upon it. This report/message is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any from. The report/message is based upon publicly available information, findings of our research wing East wind & information that we consider reliable, but we do not represent that it is accurate or complete and we do not provide any express or implied warranty of any kind, and also these are subject to change without notice. The recipients of this report should rely on their own investigations, should use their own judgment for taking any investment decisions keeping in mind that past performance is not necessarily a guide to future performance & that the the value of any investment or income are subject to market and other risks. Further it will be safe to assume that NSL and /or its Group or associate Companies, their Directors, affiliates and/or employees may have interests/ positions, financial or otherwise, individually or otherwise in the recommended/mentioned securities/mutual funds/ model funds and other investment products which may be added or disposed including & other mentioned in this report/message. NSL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any action taken based on the above information or inadvertent error in the information contained in this report/message.

Advance Strategy Simple Solutions

SEBI Registered Portfolio Manager

(Regn. No. : INP 000004011)

Narnolia Capital Advisors (P) Ltd.

Strategic Partner/Franchisee/RO/BO Narnolia Research Center 805-806| Ansal Bhawan | 16 K.G. Marg | Connaught Place New Delhi - 110 001 | Ph : 011-23705992 | Fax : 011-23312729 Central Strategy Desk - Kolkata 124 | 1st Floor | 7/1 Lords Sinha Road | Kolkata - 71 Ph : 033-22821500 | M : 093320 53192 | E-mail : research@narnolia.com

www.narnolia.com