Cholamandalamm

AIF: privately pooled investment vehicle that collects Funds from HNI and expert investors, whether Indian or foreign. for
investment in venture capital, private equity, hedge funds, and other types of investments.
They differ from traditional investment options such as fixed deposits, equity, mutual funds, stocks,
AIFs are regulated by the Securities and Exchange Board of India (SEBI), but the level of regulation varies depending on the type
of AIF
HNIs (High net worth individuals) and institutions invest in the AIFs as the investment amount is substantially higher.
Generally, high-net-worth people and organizations engage in AIF since, unlike Mutual Funds, they need a large initial
investment.
Most AIFs have a minimum lock-in of three years

Types of Alternative Investment Fund (AIF)

SME FUND: invest in start-ups, small and medium-sized firms (SMEs), and new businesses with strong growth
potential and is socially and economically viable.government also encourages with the plan of investment because of
its potential for high growth and job generation.

Venture Capital Fund (VCF): invest in high-growth start-ups that are experiencing cash constraints in the early
stages of their business and require capital to develop or expand their operations. Because it is difficult for new firms
and entrepreneurs to get funds through the financial markets,

Infrastructure Fund (IF): invests in public assets like road and rail infrastructure, airports , among other things.
Investors that are positive about future infrastructure growth can participate in the fund since the infrastructure
industry has high entry barriers and little competition.

Investors who want capital growth and dividend income on their investment invest in this fund.

Angel Fund: invest in early-stage firms. Investors receive dividends when new enterprises become profitable

Social Venture Fund: invests in firms which desire to have a positive impact on society. These businesses are focused
on producing money while also addressing environmental and social challenges.
Private Equity (PE) Fund:PE funds invest in private firms that aren’t publicly traded

Benefits of Investing in AIFs

Uncorrelated with Stock Market: diversify their portfolios and hedge against volatility.if the stock market falls
sharply, they will have a hedge of protection, and their whole investment portfolio will be unaffected
Tax Benefits: potentially offer significant tax advantages
Look at the Direct Ownership
Passive Investments
Diversification, low volatility, high return as compared to investment in traditional investment
Potential for higher returns:** AIFs can offer the potential for higher returns than traditional investments,
such as mutual funds and stocks. This is because AIFs can invest in illiquid assets that are not available to
other investors.

Benefits of AIF
Customizable: can be customized depemding on investment goal

Raising Resources Flexibility:AIF may raise funds from any investor, whether Indian, foreign, or non-resident Indian
(NRI)

Have a Large Corpus

Because AIFs act like mutual funds, they pool capital to create a larger corpus.
The collected capital might be used to meet certain investment goals
Category I and Category II investments have been given a pass-through status. This means any income (Other than
business income) earned by the AIF is tax-exempted. These gains will be taxable in the hands of investors.

Category III has not been given a pass-through status. This means that the income earned will be taxable in the
hands of the fund

Category 1: These funds invest in high-growth potential ventures. have a high minimum investment amount. have a
high minimum investment amount.
These funds are invested in small businesses, start-ups, social ventures, early-stage ventures, angel funds, etc., with
superior growth potential.

Infrastructure funds focus on companies involved in building airports, railroads, etc.

Venture Capital Funds (VCF) invest in promising entrepreneurial businesses.
Angel funds invest in new-age startups, with each investor contributing a minimum of Rs 25 lakh.
Social venture funds invest in businesses involved in philanthropic activities, aiming to bring positive societal change.

Category 2: Funds without leverage, used for operational needs or non-category 1 and 3 purposes. lower minimum
investment amount than Category I AIFs. Real estate funds, private equity funds
Debt funds invest in debt securities of unlisted companies with good governance and growth potential.
Funds of funds invest in other alternative investment funds.
Private equity funds invest in unlisted businesses struggling to raise capital through traditional means.

Category 3: Funds engaged in complex trading techniques.Investment in listed equity . aimed at retail investors and
have the lowest minimum investment amount.
Hedge funds are typically included in this category.

MInimum Investment: minimum investment of Rs1 crore or Rs25 lakh (in the case of AIF employees, directors, and
fund managers).
HNI: NETWOTH 2 Cr, salary 1 Cr per annum

AIF : funds raised are are not used to make loans.

Are AIF risky: more volatile than traditional assets, like equities, bonds and reciprocal funds. Most of them are
relatively not liquid and therefore hard to sell fast. Most are complicated and frequently involve risks that are larger
than typical investments.Illiquidity, High risk(because the performance of the fund is dependent on the
investment decisions of the fund manager), High fees(managing the fund and providing professional
investment advice.)

Reason on investment in AIF: HNIs wishing to diversify their investment portfolio might consider AIFs, which provide
a high return potential while also carrying a high level of risk. AIFs invest in securities other than stocks, bonds,
mutual funds, and other traditional investments, allowing investors to diversify their portfolios and have access to
higher-yielding assets.

How do I choose an AIF?

When choosing an AIF, it is important to consider your investment goals, risk tolerance, and time horizon.
You should also compare the fees charged by different funds.
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Chola Securities is a 100% subsidiary of Cholamandalam Investment and Finance Company Limited (A Murugappa Group
Company).Chola Securities is a leading broking & distribution company that has been offering investment solutions to individual
clients and equity advisory services to institutional investors for nearly 29 years. We are a proud member of both Bombay Stock
Exchange Limited and National Stock Exchange of India Limited. Since our establishment in the year 1994, we have been
committed to providing high-quality investment services that are designed to meet the unique needs of our clients. Our team of
experienced professionals is dedicated to delivering personalized investment solutions that align with our clients' long-term
financial goals.

FIXED INCOME : for stable return, FD & bonds

Few popular Fixed Deposits distributed by Chola Securities: HDFC Deposits, Bajaj Finance Ltd, LIC HFL

Investor risk profiling is the process of assessing an investor's tolerance for risk and their investment suitability. It involves
gathering information about the investor's financial situation, investment objectives(Investors have different goals for their
investments, such as retirement planning, wealth creation, or income generation. Understanding these objectives), risk
tolerance, and investment experience(Investors with more experience may be more comfortable with complex investment
products and higher levels of risk.).

Data points used for Client profiling:

Financial situation: income, assets, liabilities, net worth

Investment objectives: retirement planning, wealth creation, income generation, etc.
Risk tolerance: comfort level with potential losses (conservative, moderate, aggressive)
Investment experience: past experiences and knowledge of investment products
Demographic information: age, occupation, family situation (optional)

INSURANCE: Life and Property of an individual are surrounded by the risk of death, disability or destruction. Insurance protects
you, your family, your business and your investments against financial loss and it is a prudent way to transfer such risks to an
insurance company. And having an adequate insurance cover is the first step in financial planning.
Cholamandalam Securities is a corporate agent of leading insurers in the country to cater to all your insurance needs.

Five Key Financial Ratios for Stock Analysis

price-to-earnings, PEG, price-to-sales, price-to-book, and debt-to-equity

price-to-earnings: stock has a P/E ratio of 20, it means investors are willing to pay up to 20 times its EPS to
own it.
But is that too much or too little? Expensive or cheap?
For example, if a company with a P/E ratio of 35 has a higher rate of growth than a company with a P/E
ratio of 10, then shares of the company with the higher ratio might actually be considered cheaper than
shares of the company trading at the lower ratio.

PEG, ratio: A company's P/E may seem "cheap," but if the company doesn't grow, what's the point of
holding on to a stock with a low P/E
The PEG is derived by dividing the P/E ratio by projected EPS growth. For example, a stock with a P/E of 18
and a percentage growth rate of 15% would carry a PEG of 1.2. So, how should you read this number?
Typically, stocks with a PEG ratio of less than 1 are considered undervalued.#

price-to-book: A P/B ratio of 1 indicates the company's shares are trading in line with its book value. A P/B
higher than 1 suggests the company is trading at a premium to book value, and lower than 1 indicates a
stock that may be undervalued relative to the company's assets. To get the P/B ratio, divide the stock price
by the book value per share. A company with 100 million outstanding shares, assets of $800 million, and
debt liabilities of $125 million would carry a book value of $675 million, or $6.75 per share. If that stock
traded at $5, the resulting P/B ratio of .74 would suggest that the stock may be undervalued.
P/B<1 Undervalued
P/B>1 overvalued

PMS
Portfolio Management Services (PMS), service offered by the Portfolio Manager, is an investment portfolio in stocks, fixed income, debt, cash,
structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet
specific investment objectives. When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the
fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio
managers may oversee hundreds of portfolios, your account may be unique.

Discretionary:
Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager.

Non Discretionary
Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions
rest solely with the Investor. However the execution of trade is done by the portfolio manager.

Advisory
Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the execution of the investment
decisions rest solely with the Investor. Note: In India majority of Portfolio Managers offer Discretionary Services.

EQUITY: Equity is simply the value of an investor's stake in a company, AMT of money invested or owned by the owner of the company.

The Indian equity market operates from 9.15 AM - 3.30 PM; currency derivatives from 9.00 AM - 5.00 PM and commodity derivatives from
9.00 AM - 11.30 / 11.55 PM
In India, there are commodity exchanges including The National Commodity & Derivatives Exchange Limited (NCDEX), The Multi
Commodity Exchange of India Limited (MCX) and The Indian Commodity Exchange Limited (ICEX)