1. Rational Investments & Research
Curious Mind for Inspiring Results
Rational Investments & Research is an Investment Advisory & Research Company established to service
for investment solutions. We offer financial advice and equity research services for investment
opportunities at Indian & Global Stock Market. At Rational Investment & Research, we are committed to
provide exceptional service to our clients, by continuous innovation, professional excellence and
exceptional integrity & honesty in our work.
With our core competency in equity and portfolio research, we reaffirm our commitment to provide
information about safe investment opportunity in stock market across the world and Rational approach of
Investment into various optional available in Financial Market across the world in world of equity market.
We work on simple money management concept “Value Investment” and long-term approach where
primary concern is “Margin of Safety”.
Our Principles, we're guided by a set of long-standing principles, which is laid down by Investment Guru’s
Benjamin Graham and followed Warren Buffet- “Long Term Value Investment”. We want to enter into
professional agreement where there is long value for both the parties.
Core Principles We want to conduct and do business, which is Rational, Ethical and motivated by Long
Term Appreciation of benefits to our Customer and Us.
We Say No and Products we don’t Sell Our long-term-buy-and-hold investment philosophy isn't for
everyone. We don't take unnecessary risks, and we don't have any hot tips everyday. We strongly believe
in investment principle of “Margin Of Safety”. We do not offer any of the following services:
 Intra Day Trading Tips
 Short Term Investment Option or Advice
 Speculative Financial Instrument- Derivatives and Commodities
 Unit Linked Insurance Plan

2. Rational Investments & Research
Curious Mind for Inspiring Results
Our GOAL We aspire to become an Independent Investment Advisor. We are motivated to add value in our
investor portfolio by advising rational investment approach.
We've believed in building relationships through face-to-face interaction, and adhering to a strategy of
recommending quality investments that have proven themselves over time. We understand that this
approach might be considered unfashionable. But if it means helping our clients achieve their goals,
whether for retirement, education, or just financial security, it's an approach we plan to stick to.
We are committed to work for longterm value generation for our client, therefore please take time to read
Our Investment Philosophy and Approach towards Investments. We want to ensure that you know about
our style and approach before we commence on any investment relationship, for us like investment
relationships is also commitment.
Our Investment Philosophy
While investing in any company’s stock the following three factors are evaluated by us:
• The economics of the business that company operates
• The honesty and competence of management of the company
• The price that one has to pay for the stock
• The level of taxation and inflation which would determine the purchasing power of returns
The equity holders have the last claim on the revenue that is generated by the company. The company
should have sustainable competitive advantages which contribute in increasing shareholders claim.
An honest and competent management would exploit the growth options and would also return capital to
shareholders when it is in their best interest. Only a competent management can exploit the potential
benefits of an opportunity. An honest management would be one that would channel the rewards from
the business to shareholders rather than engaging siphoning it off for itself or towards some ego enhancing
expansion. The management while investing shareholders money must ask whether every rupee invested
generates at least a rupee worth of value for shareholders.
The price one has to pay to buy is another key factor. The value of the stock is the present value that you
assign to all the future payment which the holder of the stock would get. Less one has to pay for the stock
more could be one’s potential profit from the stock. Even a company stock whose business has good
economics and is endowed with honest and competent management has a certain value. Only if the stock
is available below this value we will buy it for you or otherwise we will wait.
The shares should be sold only for two reasons. One, in case there are companies which provide better
value for money. Two, in case the share price has become higher than the value. No other reason is valid.

3. Rational Investments & Research
Curious Mind for Inspiring Results
Just because share price has appreciated a lot is not a rational reason to sell a stock. If the appreciation of
stock is because of higher operating profits which can continue to increase in future it should be retained.
There is nothing inherently risky in buying stocks it is only when we give in to our fears and our greed
while buying shares the risks manifest themselves. The first key to being successful in stock investment is
being rational. Buy only if you have done the proper analysis. Otherwise stay away.
The second key is being independent. In short run the stock market is a voting machine where any fool can
vote but in long run it is a weighing machine that has to respond to financial results of companies. So, buy
stocks of companies which can increase their stock earnings on a sustainable basis for a long time. Buy
them at a reasonable price and hold them till you have one of the two reasons to sell.
At this moment you should understand a basic and a rational presentation of Market. Benjamin Graham
introduced the concept of Mr. Market. We find this idea very useful while making stock market
transactions.
Mr. Market
According to this concept stock market transactions are between you and a person called Mr. Market.
Everyday Mr. Market comes with a buy price and a sell price of all the stocks that are listed. Mr. Market is a
strange kind of person. Though businesses that are listed have stable economic characteristics the prices
that Mr. Market gives for them are anything but stable.
On some days Mr. Market can see nothing but good fortunes ahead. He increases his buy and sell prices so
that nobody can buy from him and deny him the imminent gains. On other days Mr. Market can see
nothing but dark clouds ahead. So he decreases his buy and sell prices because he fears that you will dump
your holdings on him. Mr. Market also does not mind being ignored. If the quotations that he gives to you
are not interesting, he will come back tomorrow with a new one. The transactions that are done with Mr.
Market are strictly by your choice. Under such scenario, the more mood swings he has, the better it is for
you. One should note that Mr. Market is there to serve you rather than guide you. It is his buy sell
quotation rather than his wisdom that you will find useful. If someday he shows up in a foolish mood you
are free to take advantage of him or ignore him. However it would be disastrous in case he influences you.
If you cannot value shares better than Mr. Market and independently of him than you should not be
dealing with him.
The success of in purchase of stocks should be judged by the operating results of respective businesses.
Price movement of stocks should not be a criteira for success. The market can ignore operating results for
a while but would eventually confirm it. The speed at which the market recognizes the business’s
operating success is not important as long as the intrinsic value of the company continues to increase at

4. Rational Investments & Research
Curious Mind for Inspiring Results
a satisfactory rate. In fact the delayed recognition could be an advantage as it gives us the chance to
accumulate shares at an attractive price.
Investment in Stocks
To invest means to commit it is not depended upon Market movement or Fashion
The basis of investment has to be logic and analysis. For an asset the logic for investment should be the
analysis which says that the income that one would derive from asset would be greater than the payment
for the asset. For assets which have defined income stream the analysis part seem simple. The only
complication is that one is not sure about the kind of inflation that would happen. For small time periods
reasonable estimate about inflation can be made. So it is quite easy to analyse whether one should buy a
two year bond or not.
For stocks the analysis is rather complicated. We are not sure about how much dividends we will receive
from a share. We are even less sure about how much the final price would be at which it would be sold.
How do we analyse the stocks for investment? This problem can be overcome if we make conservative
estimate of the earnings of the companies. If with the conservative estimate the analysis yields that one
can earn more than one is paying for the stock then we could invest in it.
What if even the conservative estimate proves to be too high? Since, the company whose shares we have
bought may face the worst economic conditions the earnings estimates may prove optimistic. To make up
for this lack of clairvoyance one must include a “Margin of Safety”. This concept first proposed by
Benjamin Graham is the bedrock upon which any successful investment strategy is built. Margin of safety
means suppose you estimate that the net cash flow from the stock that you are buying is Rs 100 then you
should buy it for more than say Rs 80 to Rs 50. The higher limit of your buy price would depend upon how
sure you are about estimates. If you feel quite sure about your conservative estimates then may be you
can pay up to Rs 80, however if you are not that sure your buying price should be closer to Rs 50. These
limits are for illustration purpose. The Margin of Safety would be an informed estimate based on
understanding of risks.
Now that we have an understanding about investment in stocks we will list few cases which cannot be the
basis of investments in stocks:
(a) Buying a stock just because it has gone up in last few days with the hope that uptrend will be
maintained
(b) Buying a stock because you have been tipped by someone else that it has a great prospect

5. Rational Investments & Research
Curious Mind for Inspiring Results
(c) Buying a stock which has fallen much below its higher level thinking that it will regain it higher level
in future
(d) Buying a stock just because everybody else is buying it
(e) Buying stocks just because it is being offered in an IPO
Conceptual Agreement for Financial Consulting & Management Fees Rational Investments & Research
The whole objective of the Fund Management philosophy under Rational Investments & Research is based
on the philosophy that Financial Advisor or Management Company should earn only after making return
on investment for the client. The focus and incentives should be aligned to ensure that the philosophy is
protected and substantial wealth is created for our clients.
The success of in purchase of stocks/mutual funds/insurance or any financial product should be judged by
the operating results of respective businesses and return of investment in long term. Price or NAV
movement of stocks or mutual funds should not be a criterion for success. The market can ignore
operating results for a while but would eventually confirm it. The speed at which the market recognizes the
business’s operating success is not important as long as the intrinsic value of the company or investments
continues to increase at a satisfactory rate. In fact the delayed recognition could be an advantage as it
gives us the chance to accumulate shares at an attractive price.
With this above-mentioned objective, we will venture into investment consulting business. Though, in
principle we will evaluate our work every 6 months but our relationship or investment horizon for the fund
should be for long term; at least 3 years to be more precise.
Investment Process

6. Rational Investments & Research
Curious Mind for Inspiring Results
Fee Structure
At Rational Investments & Research, we offer one of the most innovative fee structures in the industry.
Most financial advisors charge for investment advisory services on either a commission or fee basis - at
Rational Investments & Research, we have a better solution.
Advisory Product on Existing Portfolio
Particulars Classic Preferred Elite Privilege
Advisory Fee 25,500 45,500 75,550 109,548
Stocks Under Scanner 2 5 9 Unlimited
Future Advice on Stocks Under Scanner NA 1 2 5
Peer Comparison NA NA Yes Yes
Capital Allocation in Existing Portfolio NA NA Yes Yes
Recommendations on Additional Purchase NA NA NA Yes
Discussion from Stock Manager/Advisor NA NA
Yes
Email
Only
Yes
(Email/Call &
Meeting)*
Newsletter on Market Yes Yes Yes Yes
Newsletter on Your Stocks in Your Portfolio NA NA Yes Yes
Validity of Advisory Service One Time Quarter Quarter Half Yearly
Advisory Product New Portfolio

7. Rational Investments & Research
Curious Mind for Inspiring Results
Particulars Classic Preferred Elite Privilege
Advisory Fee 2.5% of FUM 2% of FUM 1.75% of FUM
1.5% of
FUM
Fund Under Management
Less than
10,00,000
Between 10,00,000
to 20,00,000
Between 20,00,000
to 50,00,000
Above
50,00,000
Investor Risk Assessment NA Yes Yes Yes
Capital Allocation within
Advised Stocks
NA Yes Yes Yes
Peer Comparison Report on
Advised Portfolio
NA NA Yes Yes
Newsletter on Your Stocks in
Your Portfolio
NA NA Yes Yes
Discussion from Stock
Manager/Advisor
Yes
Email Only
Yes
Email Only
Yes
(Email/Call &
Meeting)*
Yes
(Email/Cal
l &
Meeting)*
Newsletter on Market Yes Yes Yes Yes
Validity of Advisory Service Annual Annual Annual Annual