The following are illustrative, but not exhaustive, investment options or products available for client availing Non-Discretionary Portfolio Management Services.
1. Equity Portfolio:
Equity Portfolio (Non discretionary) are designed for those investors who seek long-term capital appreciation from their asset allocation to equities. The portfolio manager will invest in stocks across sectors, market capitalization categories and investment themes, in consultation with and as per directions or consent of the client.
Minimum investment amount: Rs. 25 lakhs 2. Non
Convertible Debentures:
The Non Convertible Debentures are debentures which do not get converted into equity and normally attract a fixed rate of return. The Non-convertible Debentures may be listed or unlisted.
Investments will be made in the Non Convertible Debentures in consultation with and as per directions or the consent of the client.
Minimum investment amount is Rs. 25 Lakhs.
3. Non
Non convertible Debentures are normally issued with a fixed rate of Interest.
The Non Convertible Debentures as part of Structured Products are designed as equity linked structures, debentures, derivative instruments, swaps, swaptions, a basket of securities, options, indices, commodities linked structures, debt issuances and/or foreign currencies, Secured Premium Notes, money market instruments, etc. for those investors who want returns linked to an underlying asset with a predefined level of capital protection.
These products may be principal or non principal protected.
Investments may be made both in rated and unrated debentures to cater to specific Client requirement.
Investments in such products will be made in consultation with and as per directions or consent of the client.
Minimum investment amount is Rs. 25 Lakhs.
4. Structured product
The Structured products are designed for those investors who want returns linked to price movement of any Equity index, basket of stocks, commodities, precious metals, etc., with a predefined level of capital protection.
Structured Products may be principal or non principal protected or may not have any protection at all. Investments will be made in the structured products in consultation with and as per directions or the consent of the client.
Minimum investment amount is Rs. 25 Lakhs.
The list of products provided here is not exhaustive and the Portfolio Manager may devise and recommend other products as per specific needs of the client.
Asset Allocation
The Portfolio will be invested in Equities, Mutual Funds, Exchange Traded Funds, Non Convertible Debentures, Bonds, Debt Instruments, Derivatives, Money market Instruments and Structured products in consultations with and as per directions or consent of the client. The cash in the portfolio will be invested in Liquid Funds or Liquid Bees.
Valuation of Assets
Investment in equities will be valued on the closing price of that equity at NSE. In case of investments in any stocks listed on BSE only, the same will be valued based on the closing price of that equity in BSE. Investment in NCDs, bonds and other debt Instruments will be valued at closing price, if listed, or as per valuation provided by the issuer. Investment in “Futures and Options”, used for hedging, shall be valued at actual cash margins paid against F&O contracts, summed with Mark to Market profit / loss computed on the basis of closing price of such contracts.
Structured Products will be valued at the valuation provided by the issuer of the structured products from time to time.
Fees and Expenses
In case of Non-discretionary Portfolio Management Services, the Fees payable by the Client would not exceed 3% of the invested amount
The Client will also have to bear brokerage not exceeding 2.5% and other incidental charges/fees/duties and taxes including Securities Transaction Tax at actual.
The Portfolio Manager will charge audit fees, custodial/ AMC charges and other charges/costs, attributable to the Portfolio Management Services at actual.
Other Features
Liability of a client shall not exceed client’s investment with the portfolio manager.
For all portfolios and options provided, the Portfolio Manager shall charge audit fees, custodial/ AMC charges and other charges/costs, attributable to the Portfolio Management Services at actual.
Any charges payable for outsourced professional services like accounting, taxation, auditing, and any legal services, notarizations, etc., incurred on behalf of the Client by the Portfolio Manager, will be charged from the client on actual.
The Client may withdraw whole or part of the Funds or securities from the Portfolio Account by giving advance notice and the Portfolio Manager will endeavor to liquidate the securities held in the Strategy and return the funds or securities of the Strategy, as the case may be, to the Client within reasonable time. The Client will not withdraw funds given earlier than 12 months and in the event of a withdrawal earlier than 12 months; the complete annual fund management fee as per rates agreed with the client will be levied on the funds or securities withdrawn, on a full year basis.
The investments are normally for a tenor which varies from 12 Months to 60 Months
The Portfolio Manager will provide periodical reports as required under the Regulations at the communication address provided by the client at time of account opening. In case Portfolio Manager is unable to provide the periodic reports in physical copy, the same shall be provided to clients via email at the email id registered by clients at time of account opening.
The Portfolio Account will be audited by the Independent Chartered Accountant every year and copy of the Certificate issued by the Chartered Accountant will be given to the Client.
Non - Discretionary Portfolio Management Services Omega Portfolio
The Omega Portfolio is designed for those investors who seek long-term capital appreciation from their asset allocation to equities, debt, gold and other asset classes which are available through either exchange traded products or through mutual funds.
Investment Objective
The investment objective of the Strategy is to generate long term capital appreciation of wealth through a portfolio of debt, equity, gold ETFs and other asset classes which are available through either exchange traded products or through mutual funds and the allocation amongst the asset classes is done on the basis of the risk profile of the investor in consultation with and as per directions or consent of the client.
Asset Allocation
Assets will be allocated amongst following asset classes in consultation with and as per directions or consent of the client.
The amount of Portfolio invested in Equity will be between 0% - 100% of the Portfolio.
The amount of Portfolio invested in Debt will be between 0% - 100% of the Portfolio.
The amount of Portfolio invested in Gold ETFs will be between 0% - 100% of the Portfolio.
The amount of Portfolio invested in other asset classes which are available through either exchange traded products or through mutual funds will be between 0% - 100% of the Portfolio.
Investment can be made in other asset classes as per choice, consent or directions of the client.
Securities
Investments will be made in Stocks, Mutual Funds, Exchange Traded Funds (ETF), Non-Convertible Debentures, and Bonds. The Portfolio will also use derivative instruments – Futures and Options – for hedging and rebalancing of the portfolio and other investment options as per choice, consent or direction of the client. Derivative Instruments shall, however, not be used in case of NRI investors.
Investment in equities will be valued on the closing price of that equity at NSE. In case of investments in any stocks listed on BSE only, the same will be valued based on the closing price of that equity at BSE. Investment in Mutual Funds and ETFs will be valued on the day end’s NAV. NAV Investment in NCDs, bonds and other debt Instruments will be valued at closing price, if listed, or as per valuation provided by the issuer. Investment in “Futures and Options”, used for hedging, shall be valued at actual cash margins paid against F&O contracts, summed with Mark to Market profit / loss computed on the basis of closing price of such contracts. Derivative Instruments shall, however, not be used in case of NRI investors.
Other Features
Minimum investment amount is Rs. 25 lakhs
The Client may withdraw whole or part of the Funds or securities from the Portfolio Account by giving advance notice and the Portfolio Manager will endeavor to liquidate the securities held in the Strategy and return the funds or securities of the Strategy, as the case may be, to the Client within reasonable time. For existing clients, the performance fee will be computed on a High Watermark Principle over the life of the Investment at the end of every financial year on financial year basis.
From 1st August, 2012, for new clients the performance fees will be charged on completion of 12 months (anniversary basis) and not financial year basis.
The Portfolio Manager will provide periodical reports as required under the Regulations at the communication address provided by the client at time of account opening. In case Portfolio Manager is unable to provide the periodic reports in physical copy, the same shall be provided to clients via email at the email id registered by clients at time of account opening.
The Portfolio Account will be audited by the Independent Chartered Accountant every year and copy of the Certificate issued by the Chartered Accountant will be given to the Client.
A placement fee not exceeding 3.00% on the investment will be charged over and above the Fixed Management Fee and Performance fee as defined below.
Option 1: Fixed Management Fee upto 3.00% p.a.
The Fixed fee for the Omega Portfolio (without profit sharing) charged by the Portfolio Manager will not exceed 3.00% p.a. charged upto 0.75% at the end of every quarter on the daily average Net Asset Value of the Portfolio (inclusive of all securities and cash/bank balance).
However, in case of withdrawal before 12 months of a) Fixed Management Fee up to 3% p.a. and b) Exit fees up to 3% will be charged. In case of withdrawal after 12 months but before completion of 24 months of a) Fixed Management Fee up to 3% p.a. and b) Exit fees up to 2% will be charged. In case of withdrawal after 24 months but before completion of 36 months, the a) Fixed Management Fee upto 3% p.a. and b) Exit fees up to 1% will be charged. After completing 36 months, the client will be charged fixed management fee up to 3% p.a. till the day he exits.
Option 2: Fixed Management Fee NIL & Performance fees upto 25% on all gains
The Performance fee in this option will not exceed 25% of incremental gains beyond annualized hurdle rate not exceeding 0% on the basis of High Water Mark Principle over the life of the investment. For existing clients, the performance fee will be computed on a High Watermark Principle over the life of the Investment at the end of every financial year on financial year basis.
From 1st August, 2012, for new clients the performance fees will be charged on completion of 12 months (anniversary basis) and not financial year basis.
However, in case of withdrawal before 12 months a) Performance fee up to 25% of incremental gains beyond annualized hurdle rate not exceeding 0% will be charged (Performance fee payable will be calculated on the NAV on the day of exit) and b) Exit fees up to 3% will be charged. In case of withdrawal after 12 months but before completion of 24 months a) Performance fee up to 25% of incremental gains beyond annualized hurdle rate not exceeding 0% on the basis of High Water Mark Principle will be charged (Performance fee payable will be calculated on the NAV on the day of exit) and b) Exit fees up to 2% will be charged. In case of withdrawal after 24 months but before completion of 36 months a) Performance fee up to 25% of incremental gains beyond annualized hurdle rate not exceeding 0% on the basis of High Water Mark Principle will be charged (Performance fee payable will be calculated on the NAV on the day of exit) and b) Exit fees up to 1%
will be charged. When exiting, after completing a period of 36 months, the client will be charged Performance Fee up to 25% of incremental gains beyond annualized hurdle rate not exceeding 0% on the basis of High Water Mark Principle based on the NAV of the day of exit.
Option 3: Fixed Management Fee up to 3% p.a. & Performance fees up to 25%
The Fixed fee for the Omega Portfolio (with profit sharing) will not exceed 3.00% p.a. which is upto 0.75% at the end of every quarter on the daily average Net Asset Value of the Portfolio (inclusive of all securities and cash/bank balance). The Performance fee in this option will not exceed 25% of incremental gains beyond annualized hurdle rate not exceeding 12% on the basis of High Water Mark Principle over the life of the investment. For existing clients, the performance fee will be computed on a High Watermark Principle over the life of the Investment at the end of every financial year on financial year basis. From 1st August, 2012, for new clients the performance fees will be charged on completion of 12 months (anniversary basis) and not financial year basis.
However, in case of withdrawal before 12 months a) Fixed management fee payable up to 3.00% p.a and Performance fee payable up to 25% of incremental gains beyond annualized hurdle rate not exceeding 12% will be charged (Performance fee payable will be calculated on the NAV on the day of exit) and b) Exit fees up to 3% will be charged. In case of withdrawal after 12 months but before completion of 24 months a) Fixed management fee payable up to 3.00% p.a. and Performance fee payable up to 25% of incremental gains beyond annualized hurdle rate not exceeding 12% on the basis of High Water Mark Principle will be charged (Performance fee payable will be calculated on the NAV on the day of exit) and b) Exit fees up to 2% will be charged. In case of withdrawal after 24 months but before completion of 36 months a) Fixed management fee payable up to 3.00% p.a. and Performance fee payable up to 25% of incremental gains beyond annualized hurdle rate not exceeding 12% on the basis of High Water Mark Principle will be charged (Performance fee payable will be calculated on the NAV on the day of exit) and b) Exit fees up to 1% will be charged. When exiting, after completing a period of 36 months, the client will be charged Fixed Management fee upto 3% p.a. and Performance Fee up to 25% of incremental gains beyond annualized hurdle rate not exceeding 12% on the basis of High Water Mark Principle based on the NAV of the day of exit.
Liability of a client shall not exceed client’s investment with the portfolio manager.
For all portfolios and options provided, the Portfolio Manager shall charge audit fees, custodial/ AMC charges and other charges/costs, attributable to the Portfolio Management Services at actual.
Any charges payable for outsourced professional services like accounting, taxation, auditing, and any legal services, notarizations, etc., incurred on behalf of the Client by the Portfolio Manager, will be charged from the client on actual.
The Client will also have to bear brokerage charges not exceeding @2.50% of the transaction value and other incidental charges/fees/duties and taxes including Securities Transaction Tax at actual.
Optima Portfolio
The Optima Portfolio is designed for those investors who seek capital appreciation from their asset allocation to Equities, debt and gold.
Investment Objective
The investment objective of the Strategy is to generate capital appreciation of wealth through a portfolio of Debt, Equity and Gold securities which is rebalanced regularly and the allocation between Debt, Equity and Gold ETFs is done on the basis of the risk profile of the investor in consultation with and as per directions or consent of the client.
Asset Allocation
Assets will be allocated amongst following asset classes in consultation with and as per directions or consent of the client.
The amount of Portfolio invested in Equity will be between 0% - 100% of the Portfolio.
The amount of Portfolio invested in Debt will be between 0% - 100% of the Portfolio.
The amount of Portfolio invested in Gold ETFs will be between 0% - 100% of the Portfolio.
Investment can be made in other asset classes as per choice, consent or directions of the client.
Securities
Investments will be made in Stocks, Mutual Funds, Exchange Traded Funds (ETF), Non-Convertible Debentures, and Bonds and other investment options as per choice, consent or direction of the client.
Investment in equities will be valued on the closing price of that equity at NSE. In case of investments in any stocks listed on BSE only, the same will be valued based on the closing price of that equity at BSE. Investment in Mutual Funds and ETFs will be valued on the day end’s NAV Investment in NCDs, bonds and other debt Instruments will be valued at closing price, if listed, or as per valuation provided by the issuer.
Fees and Expenses
A placement fee not exceeding 2% on the investment will be charged over and above the Fixed Management Fee and Performance fee as defined below.
The Fixed fees for the non discretionary Portfolio charged by the Portfolio Manager will be charged at the end of every quarter on the daily average Net Asset Value of the Portfolio (inclusive of all securities and cash/bank balance). For existing clients, the performance fee will be computed on a High Watermark Principle over the life of the Investment at the end of every financial year on financial year basis. From 1st August, 2012, for new clients, the performance fees will be charged on completion of 12 months (anniversary basis) and not financial year basis. The investor has the following fee options: