Bulls Eye StrategyBulls Eye StrategyBulls Eye Strategy

Motilal Oswal Securities LtdMotilal Oswal Securities Ltd

Strategy ObjectiveStrategy ObjectiveStrategy Objective

The Strategy aims to deliver returns in the short to medium term by investing in

fundamentally sound stocks coupled with active profit booking.

Investment PhilosophyInvestment PhilosophyInvestment Philosophy

Stock selection is based on two principles

Positive corporate developments

Results or company data releases or announcements

Corporate restructuring and other corporate events

Relative Valuation/ Mean reversion

Stock price and valuation vs. peers

Investment StrategyInvestment StrategyInvestment Strategy

Investment Style & Timing

Buy stocks ahead of the window when positive corporate developments occur

Buy stocks when valuation gaps open up

Selling when the target is reached or stagnate

Regular Profit Booking

Strategy also follows a policy of profit booking with predefined price targets.

Ability to sit on Cash

In absence of investment opportunities , funds are temporarily parked in in the

safety of liquid mutual funds or exchange traded Liquid fund.

Fund ManagerFund ManagerFund Manager

Mr. Manish Sonthalia

15 Years Experience in Equity Research, Fund

Management & Equity Sales.

Qualifications – FCA, ICWAI, CS, MBA

Vice President – Equity Strategy for Motilal Oswal

Securities Ltd

Strategy FeaturesStrategy FeaturesStrategy Features

Investment Horizon:

Low to Medium Term 1 Year

Benchmark:

BSE 200

For Whom:

Investors with a short term horizon (1 year) combined with a process of active profit booking

Return

Ris

kLow Low to

Medium Medium Medium to High

High

Low

Low

to

Med

ium

Med

ium

Med

ium

to

Hig

hH

igh

Bull’s Eye

Strategy ConstructStrategy ConstructStrategy Construct

Allocations - Market capitalization

Large Caps : 0 to 100%

Mid Caps: 0 to 40%

Small Caps: 0 to 20%

No of Stock: 18 - 20 stocks for a portfolio

Scrip Allocation:

Large Caps: 10% (At Cost)

Mid Caps: 8% (At Cost)

Small Caps: 4% (At Cost)

Sector Allocation Limit:

25% in a sector

Stock Selection ProcessStock Selection ProcessStock Selection Process

Regular company meetings

Identifying triggers that could drive short term price performance

Continuous monitoring of the stock universe to identify valuation gaps as when they occur

Key RiskKey RiskKey Risk

Process of active profit booking could result in high portfolio turnover

The strategy will be fully invested only when it is able to find stocks that meet its selection criteria. During such times that the portfolio holds cash it might under perform the benchmark.

Model Holding Model Holding Model Holding

Top Sector Top Holdings

Please Note: These stocks are a part of the existing Bulls Eye PMS strategy as on 30th September ' 2010. These Stocks may or may not be bought for new clients. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The strategy may or may not have any present or future holdings in these stocks. The companies mentioned above are only for the purpose of explaining the concept and should not be construed as recommendations from MOSL. ^ Based as per the closing market prices on 30th September ' 2010

Sector Allocation % Allocation ^ Scrip Name % Holding ^

Auto & Auto Ancillaries 27.67 State Bank Of India 13.65

Banking & Finance 24.59 Bajaj Auto Ltd. 9.28

Power Generation 7.57 Eicher Motors Ltd. 6.97

Media 7.16 Ceat Ltd 6.72

Oil and Gas 5.68 Central Bank Of India 6.23

Electricals & Electronics 5.01 Hindustan Petroleum Corporation Ltd. 5.68

Havell India 5.01

Performance Track RecordPerformance Track RecordPerformance Track RecordAll Figure in %

Data as on 30th September 2010

% of

ret

urns

Period

Strategy Inception Date: 15/12/2003. Please Note: The above strategy returns are of a Model Client who is a part of exiting Bulls Eye Strategy. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investment. Returns below 1 year are absolute and above 1 year are annualized.

7.40

14.47

9.44

14.87

6.08

21.0923.39

18.89

16.46

13.20

16.39 18.16

20.79

12.56

0.00

5.00

10.00

15.00

20.00

25.00

1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception

Bulls Eye Strategy BSE 200

PMS Fixed Fee StructurePMS PMS Fixed Fee StructureFixed Fee Structure

Nature of Fees Fees %

Upfront Fee 1.00%

Fixed Management Fees

Assets Under Management Per Annum

Rs. 10 Lakhs to Rs. 25 Lakhs 2.75%

Rs. 25 Lakhs to Rs. 100 Lakhs 2.50%

Rs. 100 Lakhs & Above 2.25%

Custodian Fees Per Annum

0.25%

Depository Charges As Applicable

Exit Load

Exit between 0 months - 12 Months 2.00%

Exit after 12 Months & Above NIL

Registrar & Transfer Fees NIL

Service Tax, Security Transaction Tax & Other Statutory levies

As Applicable

BrokerageThe Portfolio Manager will have the discretion to appoint any broker/s to

execute the transaction for the Portfolio Management Scheme. Brokerage rate would be as applicable.

PMS Variable Fee StructurePMS Variable Fee StructurePMS Variable Fee Structure

Nature of Fees Fees %

Upfront Fee 1.00%

Fixed Management Fees

Assets Under Management Per Annum

Rs. 10 Lakhs to Rs. 25 Lakhs 1.50%

Rs. 25 Lakhs to Rs. 100 Lakhs 1.00%

Rs. 100 Lakhs & Above 0.75%

Performance based Management Fees 10 % Profit Sharing on Higher Water Marking Basis

For Details please refer to detailed fee schedule

Custodian Fees Per Annum

0.25%

Depository Charges As Applicable

Exit Load

- Exit between 0 months - 12 Months 2.00%

- Exit after 12 Months & Above NIL

Registrar & Transfer Fees NIL

Service Tax, Security Transaction Tax & Other Statutory levies As Applicable

BrokerageThe Portfolio Manager will have the discretion to appoint any broker/s to

execute the transaction for the Portfolio Management Scheme. Brokerage rate would be as applicable.

ServicingServicingServicing

Reporting

Monthly strategy Performance Statement

Transaction & Corporate Action Statement

Annual CA certified statement on your Investments

Servicing

Dedicated Relationship Manager

Web Access for strategy tracking

Risk Disclosure And DisclaimerRisk Disclosure And DisclaimerRisk Disclosure And Disclaimer

Investments in Securities are subject to market and other risks and there is no assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services will be achieved.

Clients under Portfolio Management Services are not being offered any guaranteed/assured returns.

Past performance of the Portfolio Manager does not indicate the future performance of any of the strategies.

The name of the Strategies do not in any manner indicate their prospects or return.

The investments may not be suited to all categories of investors.

The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.

Neither Motilal Oswal Securities Ltd. (MOSL), nor any person connected with it, accepts any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice.

Opinions, if any, expressed are our opinions as of the date of appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so.

The Portfolio Manager is not responsible for any loss or shortfall resulting from the operation of the strategy.

Recipient shall understand that the aforementioned statements cannot disclose all the risks and characteristics. The recipient is requested to take into consideration all the risk factors including their financial condition, suitability to risk return, etc. and take professional advice before investing. As with any investment in securities, the Value of the portfolio under management may go up or down depending on the various factors and forces affecting the capital market. Disclosure Document shall be obtained and read carefully before executing the PMS agreement .

Prospective investors and others are cautioned that any forward - looking statements are not predictions and may be subject to change without notice.

For tax consequences, each investor is advised to consult his / her own professional tax advisor.

This document is not for public distribution and has been furnished solely for information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. No part of this material may be duplicated in any form and/or redistributed without MOSL’s prior written consent.

Distribution Restrictions – This material should not be circulated in countries where restrictions exist on soliciting business from potential clients residing in such countries. Recipients of this material should inform themselves about and observe any such restrictions. Recipients shall be solely liable for any liability incurred by them in this regard and will indemnify MOSL for any liability it may incur in this respect.Registered Office: Motilal Oswal Securities Ltd. Palm Spring Centre, 2nd Floor, New Link Road, Malad (West), Mumbai - 400 064SEBI Certificate of Registration as Portfolio Manager INP 000000670

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