FLO organized an interactive session on Where Should I Invest… Real Estate, Stock Market, Jewellery, Art.. on September 30, 2013 at New Delhi. The session was organized with the objective to provide a better understanding on the subject from a panel of experts comprising - Ms. Gagan Singh, CEO Business, Jones Lang Lasalle – Real Estate;Ms. Neena Prasad, Singapore Stock Exchange – Stock Market;Mr. Subhash Bhola, Bholasons Jewellers, - Gold, Diamonds, Jewellery and Ms. Roshini Vadehra, Vadehra Art Gallery. In this presentation, Ms Neena Prasad talks about the importance of asset allocation and portfolio management. In her presentation, she highlighted on the various process flows in asset allocation and recommended allocation in percentage in Equity, Fixed Income & Alternate Investments such as Real Estate, Private Equity and Commodity. She suggested that investments would be research oriented and macro indicators of economy should be always kept in mind. She also advised that there should be no emotional attachment with the investments so that wise decisions can be taken in crucial times.

1. Where to Invest
Neena Prasad
Singapore Exchange
30th September 2013
SGX The Asian Gateway

2. SGX The Asian GatewaySGX The Asian Gateway
•When it comes to investing, risk and reward are inextricably entwined
•Asset Allocation is equal parts science (quantitative analysis of risk and
return) and art (driven by experience of risk, return and market cycles)
•Market dynamics are researched and debated from different angles
•Macroeconomics
•Fundamentals of the economy
– domestic and global
•Dynamics of different asset classes
with geo-political and other market
trends
•Upcoming events that are
expected to impact investments and
markets
•Data available on volatility, inflation,
forex flows, growth numbers, etc
Benefits of Asset
Allocation
Diversification resulting
in risk reduction
Eliminate unintended
asset class exposure
Increase investment
efficiency
Helps you to sell high &
buy low, by maintaining
asset-wise exposure.
Disciplined investing -
with pre-defined book
profit and cut loss levels
Periodic reviews
Asset Allocation – Why It Matters
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Combination
of Portfolios
Capital market
Line
Standard Deviation (Risk)
ExpectedReturn
Efficient
Frontier
Most Efficient
Portfolio
The Science of Asset Allocation

3. SGX The Asian GatewaySGX The Asian Gateway
Model Portfolios
Research
Equity
Real Estate
Commodity Fixed Income
Alternative InvestmentsCash
Strategic Asset
Allocation
Tactical Asset
Allocation
Your Investment Objectives
Your Portfolio
Risk Management
Process Flow - Asset Allocation
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4. SGX The Asian GatewaySGX The Asian Gateway
Model Portfolios – Recommended Allocation in %
Asset Class
Strategic Tactical Strategic Tactical Strategic Tactical
Equity 20 19 40 39 65 61
India Equity 16 16 33 33 55 55
Global Equity 4 3 7 6 10 6
Fixed Income 70 77 45 56 15 33
Short Term (incl cash) 30 32 20 24 10 22
Medium Term 20 35 15 27 2 10
Long Term 20 10 10 5 3 1
Alternate Investment 10 4 15 5 20 6
Real Estate 5 0 7 0 8 0
Private Equity 0 0 0 3 4 5
Commodity 5 4 8 2 8 1
Total 100 100 100 100 100 100
Conservative Moderate Aggressive
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5. SGX The Asian GatewaySGX The Asian Gateway
L, M, H refers to low, mid and high respectively. All returns are annualized, pre-tax.
Product Exp Ret Inv Horizon
Liquid / Liquid Plus L M H 8% - 9.5% 1 Days +
Short Term Plans L M H 8% - 12% 3 - 6 Months
Gilt Funds L M H 8% - 12% 12 Months +
LT Bond Funds L M H Upto 10% 12 Months +
FMPs / CP / CD L M H 8.5% - 9.25% Variable
Arbitrage Funds / Structures L M H 6% - 12% 18 Months +
Risk
Product Matrix – Fixed Income
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6. SGX The Asian GatewaySGX The Asian Gateway
FD
T Bills
Corporate
Deposit
CP / CD / ICD
Short Term
Plans (MF)
Structured
Notes,
PTC, High
Yielding
Corporate
Bonds
Income Funds
Gilt Funds
PSU Bonds
State Govt
Bonds
Tax Free PSU
Bonds
Corporate
Bonds
Risk Spectrum Matrix – Fixed Income
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7. SGX The Asian GatewaySGX The Asian Gateway
All fixed income investments involve some form of risk that must be borne by the investor. Below is a general overview of
the main areas of risk that should be considered before investing in any fixed income security.
Interest Rate Risk
The risk that the market value of securities might rise or fall, primarily due to changes in prevailing interest rates. All fixed
income securities are susceptible to fluctuations in interest rates; if interest rates rise, bond prices will fall and vice versa.
Credit Risk
The risk that the issuer might be unable to pay interest and/or principal on a timely basis. Widely recognized rating
agencies, such as Moody's, Standard & Poor’s, CRISIL, Fitch offer their assessment of an issuer’s creditworthiness.
Government securities are considered the “safest” investment as they are backed by the “full faith and credit” of the Indian
Government. On the other end of the scale, pass through certificates, high yield corporate bonds are considered have the
greatest credit risk.
Reinvestment Risk
The risk that the income stream from the investment may be reinvested at a lower interest rate. This risk is especially
evident during periods of falling interest rates where coupon payments are reinvested at a lower rate than the current
instrument.
By holding a diversified portfolio, the above risks may be managed and minimized.
While a secondary market exists for most fixed income securities, they may not be liquid for smaller lots and if sold prior to
maturity, the price received may be more or less than the amount of the original investment.
Risk Considerations While Investing in Fixed Income
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8. SGX The Asian GatewaySGX The Asian Gateway
Investing in Overseas Market - Singapore
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Business
Trusts
Exchange
Traded
Products
REITs
CatalistMainboard
Funds GDRs
Equities
(IPO)
Structured
Warrants
Equities
(IPO/Sec)
Debt Securities
Perpetual Bonds
Fixed and Floating
Rate Bonds
Convertible &
Exchangeable Bonds
Covered Bonds
Commercial Papers Hybrid Capital
Securities Structured Products
Asset Backed
Securities
Loan Participation
Notes

9. SGX The Asian GatewaySGX The Asian Gateway
This presentation is being made available to certain authorized recipients for their general information only.
While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided in this presentation, they will not be liable for any loss or damage of
any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such
information. Neither SGX nor any of its affiliates shall be liable for the content of information provided by or quoted from third parties. Examples provided are for illustrative purposes only. The
information in this presentation is subject to change without notice.
Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility
and liability arising in connection with any unauthorised recirculation, transmission or distribution of this presentation or any part thereof.
© SGX Ltd, November 2010
www.sgx.com
Thank You
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Singapore Exchange • London • Tokyo • Beijing
2 Shenton Way, #19-00 SGX Centre 1, Singapore 068804
Main: (65) 6236 8888 Fax: (65) 6535 6994
For more information, please contact:
Head of Listings , India Neena Prasad neena.prasaad@sgx.com +(91) 981 150 4600

10. SGX The Asian Gateway
Investing in Overseas Markets - Singapore
Debt
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