ALCHEMYASCENT

Inthecurrentinvestmentworlditisbelievedthatthekeytoanysuccessfulinvestmentstrategyisinfindingthe“rightstock”,the“righttheme”,the“rightsector”andthe“rightcycle”.Eventhemostexperiencedinvestorsarepronetobiaseswhichareinherentintheinvestingprocess.Thisresultsininconsistentalphageneration.

• However,webelievethatbuildingahighperformanceportfolioinvolvesmuchmore.Stockallocation,itsrelativerankingintheportfolioandtimingalongwithriskcontrols,alsoplayaveryimportantpartofthealphagenerationprocess.Webelieveinstrongdatabasedresearchprocess,whichconsidersallsourcesofalphagenerationcomprehensively,thushelpsincreatinganunbiaseddisciplinedinvestmentapproach–akeytosuccessfulandconsistentinvestmentoutcomes.

• AlchemyASCENT*endeavorstoprovideaconsistent“highalpha”investmentstrategywhichbuildportfoliostodeliverconsistentoutperformanceoverthelongterm,usinganobjective,backtestedanddatadrivenapproachdevoidofanybiases.

RESULTORIENTED

UNBIASED DISCIPLINED CONSISTENT DATADRIVEN ASCENTPORTFOLIO

*AlchemyCapitalManagementPvtLtd(AlchemyCapital)isregisteredasaPortfoliomanagerwithSEBI.AlchemyAscentistheproductofAlchemyCapital'sPortfolioManagementServices.

*Theinvestmentobjectivesareindicativeandtherearenoassurancesthattheywillbeachieved.

WHAT WHY/HOW KEYVARIABLES

Growth

• Growthwhichissignificantlymorethanthecostofcapital• Consistent&Continuousgrowth• Growthadjustedfordifferentlevelsofmargins• Negativemarkingifthereishighdivergenceordeterioration

ingrowthand/orReturnonCapital

• Revenue• Income/CashFlow• Margins(Net&

EBITDA)• ReturnonCapital

ValuaFons

• ValuecalculatedasPricetoEarningandPricetoCashFlow(ExcludingFinancials)

• Valuationsisadjustedtothequalityoffirm• Valuationisalsoadjustedtothegrowthofthefirm

• EarningsYield• TreasuryYield• PricetoEarnings

• PricetoCashFlow

• ReturnonCapital

• NetMargin

Quality&RiskManagement

• Rejectionismoreimportantthanselection• Strictnegativemarksforbadbalancesheetitems,butno

positivemarksforthesameasitismandatedofaninvestmentcandidate

• ThisalsohelpsusfilteroutcompanieswhicharenotmanagedproperlyORwhicheventuallyturnouttobeCAGRKILLERS

• ReturnonCapital• FreeCashFlow• CashConversion

Cycle• WorkingCapital

• Debt• ShareCapital

MarketCycle

• Presence/Absenceofrewardingmarketcycle• Stockwhichisappreciatedbymarketsincreasesourwinning

ratio• Pastbehaviourofdrawdownandvolatility

• Volatility• Performancevis-à-

visIndex

• PeriodicDraw-downs

WHAT,WHY&HOW

Preamble

ALCHEMYASCENT

STOCKSELECTION•MarketCapitalizationCut-off:INR4,000Crores

•Investiblestockshavetopassastringentsystemofeliminatingvaluedestroyingfactors&aresometimesvetoedbasedonriskandfundamentalforensicanalysis

•Over50Quantifiedfundamentalparametersandtheircombinationsusedforscreeningofinvestibleuniverse

•HighestRankedStocksbasedonpointsfiltered

CAPITALALLOCATION

•Portfolioonanaverageholds25stocks-30stocks

•Weightperstockmayrangefrom3%to6%@cost,exceptionalstocksmaygetanallocationof10%@cost

•Rankingsystemoptimizesstocktobeheldintheportfolioandcreatesallocationforthesame

RISKMANAGEMENTA. ProhibitiveRisk

•QualityFilters•NegativeMarkingforUnfavourablefactorssuchasBalanceSheetratios

B. ParticipativeRisk/ExitStrategy•DailychangeinRank/ScoreofIndividuaLStock(UsingFundamentalData)•Draw-Down/CAGRnonperformer•Multiplerulesbasedonabovescenarios

C. Operationalriskminimizedusingautomationofprocesses

INVESTMENTPROCESS

Start Dates Market Cycles ASCENT^ BSE200 Mutliple

01/01/1997 Start of Year 50.49% 1.09% 46.29

15/06/1997 Near Market Top 38.46% 1.00% 38.58

01/01/1998 Start of Year 45.66% 1.98% 23.02

10/03/1998 Near Market Top 47.23% 0.46% 102.17

01/01/1999 Start of Year 47.17% 19.93% 2.37

19/08/1999 Near Market Top 24.61% 6.95% 3.54

30/12/1999 Near Market Top 19.73% 8.11% 2.43

01/01/2000 Start of Year 19.55% 6.90% 2.83

07/02/2000 Near Market Top 19.77% 4.60% 4.30

01/01/2001 Start of Year 45.14% 22.16% 2.04

01/01/2002 Start of Year 55.35% 37.26% 1.49

11/02/2002 Near Market Top 51.25% 35.59% 1.44

01/01/2003 Start of Year 67.21% 46.48% 1.45

20/12/2003 Near Market Top 17.90% 10.37% 1.73

01/01/2004 Start of Year 15.47% 8.74% 1.77

01/01/2005 Start of Year 29.18% 19.36% 1.51

01/01/2006 Start of Year 42.98% 16.38% 2.62

20/03/2006 Near Market Top 24.22% 10.03% 2.41

01/01/2007 Start of Year 7.48% 2.09% 3.59

01/11/2007 Near Market Top 8.73% -1.09% 3.00 *

01/01/2008 Start of Year 7.49% -1.75% 3.00 *

01/01/2009 Start of Year 28.97% 16.35% 1.77

09/03/2009 Near Market Bottom 31.78% 21.88% 1.45

01/01/2010 Start of Year 22.27% 9.34% 2.38

06/09/2010 Near Market Top 23.86% 6.34% 3.77

01/01/2011 Start of Year 24.14% 5.91% 4.09

01/01/2012 Start of Year 28.05% 13.64% 2.06

01/01/2013 Start of Year 31.67% 13.71% 2.31

16/05/2013 Near Market Top 31.84% 13.40% 2.38

01/01/2014 Start of Year 19.33% 12.94% 1.49

• 5YearCAGRreturnsfordifferentStartDates• “StartDates”correspondtodifferentportfolio

startingdatesforbacktesting,thesedatesrepresent• Differentmarketcyclesor;• Startofeachyearsince1997

• SelectionofDifferentMarketCycleDates:• “NearMarketTop”:-Correspondstoa

randomdatebetweenamarkettopanda3monthearlierperiod,sothatweget90%-100%deployedbeforethecrash.Thisteststhevulnerabilityofthestrategy

• “NearMarketBottom”:-Correspondstoarandomdatebetweenamarketbottomanda3monthearlierperiod.Thisteststhedynamicdeployingcapacityofthestrategy

• “Multiple”=AscentReturn’s÷BSE200Return’swhere

• *Representsamultipleof3asBenchmarkis–veandAscentis+ve

• #Representsamultipleof2whereBenchmarkReturnis–veandAscentReturnis–ve,butAscentReturn>BenchmarkReturn

^Thebacktestedpastperformanceisforillustrationpurposeonlyandisnotanindicator/assuranceoffutureperformance.^Returnsareshownasgrossofallfeesandexpenses.

5YEARCAGRRETURNSFORDIFFERENTSTARTDATES

*Theinvestmentobjectivesandallocationareindicativeandtherearenoassurancesthattheywillbeachieved.

ALCHEMYASCENT

5YEARROLLINGCAGR

1997-2001

1998-2002

1999-2003

2000-2004

2001-2005

2002-2006

2003-2007

2004-2008

2005-2009

2006-2010

2007-2011

2008-2012

2009-2013

2010-2014

2011-2015

2012-2016

2013-2017

2014-2018

ASCENT* 51% 47% 65% 21% 44% 60% 69% 16% 30% 22% 7% 6% 28% 24% 23% 26% 30% 23%

BSE200 1% 2% 20% 8% 22% 37% 47% 9% 20% 16% 2% -2% 16% 10% 6% 14% 14% 13%

Alpha 49% 45% 46% 13% 22% 23% 22% 7% 11% 6% 5% 7% 11% 14% 17% 13% 16% 11%

*Thebacktestedpastperformanceisforillustrationpurposeonlyandisnotanindicator/assuranceoffutureperformance.|*Returnsareshownasgrossofallfeesandexpenses.

FundManagerFundManager-VikasKumarWithover19yearsofequitymarketexperience,Mr.VikasKumarhasexpansiveexperiencethatincludesequityanalysis,privateclientfundmanagementandstrategybuildingonasell-sideinsvtuvonaldesk.Hespecializes in creavng data-based quanvtavve algorithms & mathemavcally objecvve implementavonstrategies. His unique research paper on investmentmethodology, A Quanvtavve System for ReflexiveFinancialMarkets,earnedhimaU.S.copyright.HepursuedaBAinMathfromDelhiUniversity,qualifiedfor Indian Insvtute of Technology Joint Entrance Examinavon (IIT-JEE),was a state-levelNavonal TalentSearch Examinavon (NTSE) merit scholar and one of the navonal CBSE toppers. Prior to Alchemy, heworkedwithDalal&BroachaStockBrokingandcollaboratedatRelianceCapital.HewasalsonominatedasoneofthebestQuantAnalystsinAsiabyInsvtuvonalInvestormagazinein2009.

OBJECTIVEMETHODINVESTING*

1 Unbiasedapproachtowardseachstock 2 Greed/Fear/Hopearemitigated

byhavingobjectivemethodforinvestment

3 FocusonDiscipline&DatatogenerateCAGR

4 BackTestedformorethan21yearsacrossmanymarketcycles

5 Abilitytoscanover2000stocksdailytofindawinner 6 Endeavortogeneratereturns

outperformingtherelevantIndexover3-5Year

7 Churnratioof~0.67 8 Averagecashlevelis~10% 9 Focusedunbiasedactiveportfoliomanagement

BACKTESTEDPERFORMANCE5yearsrollingreturnsforPortfoliostarted01-January1997till31-December2018.

*Theinvestmentobjectivesareindicativeandtherearenoassurancesthattheywillbeachieved.

ALCHEMYASCENT

GENERALRISKFACTORS• Allinvestmentproductsa|ractvariouskindsofrisks.PleasereadtherelevantDisclosureDocument/ClientAgreementcarefullybefore

invesvng.

GENERALDISCLAIMERS• Theinformavonandopinionscontainedinthisreport/presentavonhavebeenobtainedfromsourcesbelievedtobereliable,butnorepresentavonorwarranty,expressorimplied,ismadethatsuchinformavonisaccurateorcomplete.

• Informavonandopinionscontainedinthereport/presentavonaredisseminatedfortheinformavonofauthorizedrecipientsonly,andarenottoberelieduponasadvisoryorauthoritavveortakeninsubsvtuvonfortheexerciseofduediligenceandjudgementbyanyrecipient.

• Theinformavonandopinionsarenot,andshouldnotbeconstruedas,anofferorsolicitavontobuyorsellanysecurivesormakeanyinvestments.

• Nothingcontainedherein,includingpastperformance,shallconsvtuteanyrepresentavonorwarrantyastofutureperformance.• Theclientissolelyresponsibleforconsulvnghis/her/itsownindependentadvisorsastothelegal,tax,accounvngandrelatedma|ersconcerninginvestmentsandnothinginthisdocumentorinanycommunicavonshallconsvtutessuchadvice.

• Theclientisexpectedtounderstandtheriskfactorsassociatedwithinvestment&actontheinformavonsolelyonhis/her/itsownrisk.Asacondivonforprovidingthisinformavon,theclientagreesthatAlchemyCapitalManagementPvt.Ltd.,itsGrouporaffiliatesmakesnorepresentavonandshallhavenoliabilityinanywayarisingtothemoranyotherenvtyforanylossordamage,directorindirect,arisingfromtheuseofthisinformavon.

• ThisdocumentanditscontentsareproprietaryinformavonofAlchemyCapitalManagementPvt.Ltdandmaynotbereproducedorotherwisedisseminatedinwholeorinpartwithoutthewri|enconsent.

AlchemyCapitalManagementPvt.Ltd|B-4,AmerchandMansion|16MadameCamaRoad|Mumbai400001.|URL:www.alchemycapital.comCIN-U67120MH1999PTC119811|Email ID: contactus@alchemycapital.com

FundKeyTerms#ProductName ALCHEMYASCENT

Por�olioManager AlchemyCapitalManagementPvtLtd,aSEBIRegisteredPor�olioManagerIdealInvestmentHorizon 3to5yrsInivalInvestmentAmount MinimumRs25Lacs

UnderlyingAssetClass ListedEquives

Inflows/Corpus FundsthroughCheque,RTGSorNEFTNote:StockTransferwillnotbeaccepted

AddivonalInflowsAnexisvngclientofAlchemyAscent,wanvngtogiveaddivonalInflowintothesameproduct,willhavetogiveaminimumRs25lacandaseparatePor�oliowillbecreatedforeachaddivonalInflow

SubscripvonWindow Onceeverycalendarmonth,onthe1stworkingdayofthemonthNote:Preacvvavonoftheaccount,thecashwilllieuninvested.

RedempvonWindow DailyRedempvon*subjecttoExitFees

Benchmark BSE200

RiskProfile HighRisk

FundManager Mr.VikasKumar

EligibleInvestors

ResidentIndians,NRI,HNI,HinduundividedFamily(HUF),Banks,BodiesCorporate,PartnershipFirm&Trusts(excl.investorswhohaverestricvonsinpurchasingstocks,suchasclientswhowantShariacompliantpor�olio,JainPor�olioandConsulvngclients,wherewehavetogobackandcheckwiththeircompliancebeforeinvesvnginstocksetc.)

FeePlanOpvon1:FixedFeePlan

UpfrontFee Upto2.25%oftheTotalInvestmentAmounti.e.bothinival&addivonalinvestment

FixedFees 2.5%perannumonNetAssetValue,chargedquarterly

FeePlanOpvon2:FixedPlusVariableFeePlan

UpfrontFee Upto2.25%oftheTotalInvestmentAmounti.e.bothinival&addivonalinvestment

FixedFees 1.5%perannumonNetAssetValue(beforechargingperformancefee)andchargedquarterly

HurdleRate 10%p.a.

PerformanceFees 15%ofreturnschargedannuallyontheeffecvvedate(i.e.accountacvvavondate),withthehurdleof10%andHighWatermarkapplies

#Thesearenotthecompleteterms;PleasereadtheDisclosureDocument/ClientAgreementforcompletedetails.*Parvalwithdrawalswillonlybepermi|edsubjecttotheresidualvalueofthePor�olionotfallingbelowstatutoryrequirementasonthedateofthewithdrawal.

DISCLAIMERS