The document provides an overview of recent developments in financial markets and recommendations for portfolio checks. It summarizes that the RBI opened a forex swap window for oil companies to reduce rupee volatility. GDP growth was lower than expected, which may lead the RBI to reduce interest rates. The Sensex rose slightly last week. It recommends checking portfolios for asset allocation, risks, goals, and performance of holdings. Proper diversification across asset classes and market caps is important to reduce risk.

1. From
Research Desk
VALUE PLUS - The Family Office
KNOWLEDGE PLUS
For Wealth Plus
31st August - 2013

2. News Impact
• RBI opens Forex swap window for OMCs
to curb rupee volatility
• Demand pressure will reduce in spot
market.
• Lower demand will lead to low volatility.
• Lower volatility will support RBI to reduce
interest rate.
• GDP growth disappoints at 4.4% in Q1
FY14, lowest in four years
• Indicates GDP is in contraction.
• Currency may depreciates further.
• RBI may start to reduce interest rate.
Last week at the Financial Markets!!!
• SENSEX rose by 100.28 points (0.54%) and closed to 18619.72 at
end of the week.
• (FIIs) remained net sellers in equity and debt segment with net
outflow of Rs. 4254.00 crore and Rs. 3677.40 crore respectively.
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3. Last week at the Financial Markets!!!
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Price Performance of Different AssetPrice Performance of Different Asset Class

4. Next Week in the Financial Markets...
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• HSBC India Manufacturing PMI for August 2013 will be released on
September 2 , 2013.
• HSBC India Service PMI data will be released on September 4, 2013.
• Auto and Cement companies will announce their monthly sales
figures.

5. Is Your Portfolio In Good Health?
Hot Topic of the Week
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6. Introduction
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7. Portfolio Check Up – Why???
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8. Portfolio Check Up – What???
Portfolio
Life/Non-
Life
Insurance
Needs
Risk Profile
Income
Levels
Change in
Goals
InflationAge
Family
Responsibilities
Asset
Allocation
Performance of
schemes/stocks
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9. Asset Allocation
 An investment strategy that aims to balance risk and reward by apportioning a
portfolio's assets considering various factors like:
o Asset class
o Goals Based
o Country/Economic diversification
o Risk Profile
o Age
 Thus the major objective of ‘Asset Allocation’ is diversification of risk to
maximize the returns.
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10.  Investments should be allocated under various asset classes.
 The allocation should ideally among such assets whose
performance are not co-related to each other.
 If such allocation is not done, then the underperformance in
the asset class that you are invested in can massively bring
down your overall portfolio returns.
Asset class
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11. Case Study-Asset Class
Mr. A Mr. B
Stocks
30%
Mutual
Funds
30%
Debt
15%
Currency
5%
Commodity
10%
Real
Estate
10%
Asset Allocation
Stocks
30%
Mutual
Funds
30%
Debt
15%
Currency
5%
Commodity
10%
Real
Estate
10%
Asset Allocation
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12. Mr. A Mr. B
Midcap
100%
Stocks/Mutual Funds
If midcaps underperformed, Mr. A’s portfolio will be affected by 60%. Whereas
Mr. B’s portfolio will be affected by only 20% even though having same level of
exposure in stocks/mutual funds.
Large
Cap
60%
Mid
Cap
20%
Small
Cap
20%
Stocks/Mutual Funds
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13. Knowledge Plus for Wealth +
Research Desk
VALUE PLUS - The Family Office
Office: (0265 -2324600,6629800)
Email: info@valueplusinv.com
Website: www.valueplusinv.com