Wealth First Portfolio Managers Ltd

DEAR SHAREHOLDERS,

It is with great pleasure that I present to you our Annual Report, a testament to our commitment to wealth creation through astute and responsible business practices. In a year that was volatile owing to increasing human conflict and cascading consequences, we reported our best performance ever.

Oour customers and the resultant^{UR superior value creation for} business progress exempli_es the inherent value of our investment philosophy, policies and practices. It also showcases the efforts put in by our entire team, who have gone above and beyond to elevate customer satisfaction into customer delight.

FY24 WILL GO DOWN IN HISTORY AS A YEAR OF RESILIENCE.

The global economy, weighed by unprecedented inflation and subsequently restrained by progressively increased interest rates only to be further derailed by heightened human conflict, was expected to decelerate. Braving these challenges, economic progress in 2023 exhibited heartening resilience, which has surprised leading economists. India continued its stellar progress amid immense turbulence, surprising many experts. India's impressive economic progress at 8% plus continues to position it as the fastest-growing major economy for the third consecutive year.

Interestingly, the Indian capital markets were among the best-performing emerging markets in FY24 despite heightened geo-political risks, rising interest rates and volatile commodity prices. The exemplary performance is testimony to India's resilience to global geopolitical and economic shocks and reflects the strength of the domestic investor base.

The positive investment climate helped us register a 127% growth in our topline, accompanied by a more than fix growth at the bottomline. We continued to add customers and increase our team size to manage our growth aspirations.

This performance, I believe, is only the tip of the iceberg, as there will be explosive growth in investors going forward owing to economic resurgence. Investors will emerge from all societal strata, cultures, ages and regions.

INDIA'S NARRATIVE PAINTS A VERY PROMISING HORIZON.

India's success story of harmonising economic growth and a vibrant society is unparalleled. Hence, my belief in India's growth story has never been higher. With the incumbent Government making a comeback in the recently concluded General Elections, the progressive policies and schemes will continue with increased aggression. Investment activities are also anticipated to strengthen further, supported by robust government capital expenditure and healthy balance sheets in the corporate and banking sectors, fostering a favourable environment for private capital expenditure revival.

Experts indicate that India's economy will reach US$5 trillion in the next three years and US$7 trillion by 2030, driven by reforms and resilience. India's growth going forward will dwarf what she has achieved this far. Hence, from an economic perspective, we are at the tip of an inverted iceberg. Our nation's demographic dividend is expected to drive consumption and accelerate the growth of a tax-paying society at a record pace, triggering a multiyear boom; by 2030, it is on \course to witness a 4x growth in consumer spending, providing invaluable support to economic growth.

INDIA'S INVESTOR BASE WILL EXPAND CONSIDERABLY.

In India, household savings and physical assets have improved. They are investing in financial instruments, which have done well in the last four years. Retail investors have increased their investment in stock markets through systematic investment plans and mutual fund plans.

The registered investor base at NSE has nearly tripled from March 2020 to March 2024 to 9.2 crore as of 31 March 2024, potentially translating into 20% of the Indian households now channelling their household savings into financial markets. This number will multiply going forward.

Case in point: As India's GDP marches towards the US$7 trillion mark, some path-breaking things will likely transpire. India will remain one of the youngest nations on the planet and be home to over one billion internet users. The new Indian consumer will be richer. Reputed financial institutions have projected that India's per capita income will grow around 70% by 2030 and is expected to reach US$4,000 from current levels of US$2,450. And India will move from being an economy led by the bottom of the pyramid to one led by the middle class. Nearly 80% of households in 2030 will be middle-income, up from about 50% today. These estimates suggest a massive jump in India's investing community.

WHAT IS IN IT FOR US?

A much-improved economic landscape, improved corporate and personal earnings, increasing awareness towards investing for a safer tomorrow, ease of investment avenues, and digital solutions are increasing the domestic appetite for investing. Case in point: in FY24, when Foreign investors pulled out billions from the Indian stock market, the impact, unlike in earlier years, was marginal owing to robust support from domestic buyers.

With higher individual earnings, this trend is only expected to gain momentum. Experts suggest that India's market cap,currently the fifth largest globally (US$4.5 trillion), will likely hit US$10 trillion by 2030.This estimate has been reinforced by the recent election's outcome, which instils confidence in both domestic and global investors, encouraging long-term investments in the Indian equity markets, given the anticipated continuity of policies and reforms. The participation of India's youth in the investment space is likely to grow explosively owing to their consciousness of the need to invest and their technology prowess. They will need a mind to guide them and a hand to hold them through the ups and downs to maximise their return on investments. This is where I see the opportunity for Wealth First over the coming years. We will need to reach out to the youth who have the aspiration and awareness but are on edge for the want of a trustworthy partner.

WE ARE AT A VERY EXCITING STAGE IN OUR JOURNEY.

Our consistency in following our systems and processes has been the hallmark behind our success in the face of diverse and difficult upheavals. Even as opportunities abound, we will remain steadfast in following our time-tested investment formula for creating value for our existing and new clients.

We reafirm and assure all our valued stakeholders that we will remain fully committed to serving your interests. In doing so, we will scale our business through progressive growth on all parameters. We humbly reiterate that at Wealth First, we will continue to deliver on all our stated commitments, goals, and objectives while progressing in our strategic focus areas.