The Delta Portfolio is designed for those investors who seek long-term capital appreciation from their asset allocation to equities and debt. The portfolio will invest in mutual funds across sectors, market capitalization categories and investment themes.
Investment Objective
The investment objective of the Strategy is to generate long term capital appreciation of wealth through a portfolio of debt and equity related mutual funds which are rebalanced regularly and the allocation between debt and equity is done on the basis of the risk profile of the investor (conservative, moderate or aggressive).
Delta – Conservative will have a conservative allocation towards debt and equity.
Delta – Moderate will have a moderate allocation towards debt and equity.
Delta – Aggressive will have an aggressive allocation towards debt and equity.
Investment Horizon and Risk Return Profile
Delta Aggressive portfolio is recommended for investors seeking to hold a diversified equity portfolio with moderate risk appetite expecting a moderate return over medium term horizon.
Delta Moderate and conservative portfolios are recommended for investors seeking to hold a diversified equity and debt portfolio with moderate risk appetite expecting a moderate return over medium term horizon.
Asset Allocation
The amount of Portfolio invested in Equity related Mutual Fund will be between 0% - 100% of the Portfolio. The balance of Portfolio will be invested in debt related Mutual Funds. The idle cash will be invested in Liquid funds or Liquid bees.
Note: The amount of Portfolio invested in Equity related Mutual Fund has been changed from 30% - 100% of the Portfolio to 0 to 100 with effect from February 1, 2013. The said change in asset allocation shall be applicable prospectively only for new clients subscribing to the Strategy. Asset allocation of existing clients of the Strategy shall remain unchanged.
Securities
Investments will be made in Mutual Funds and Exchange Traded Funds (ETF). The Portfolio will also use derivative instruments – Futures and Options – for hedging and rebalancing of the portfolio.
Derivative Instruments shall, however, not be used in case of NRI investors.
Investment in Mutual Funds will be valued on the day end’s NAV. 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.
Fees and Expenses
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.
The Fixed fees for the Delta 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 Portfolio Manager shall charge audit fees, custodial/ AMC charges and other charges/costs, attributable to the Portfolio Management Services at 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.
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.
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.
Below are the fee options available to an investor:
DELTA Conservative:
Option 1: Fixed Management Fee upto 3.00% p.a.
The Fixed fee for the Delta Conservative 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).
Following charges shall be payable by client upon withdrawal from the strategy under Option 1:
Withdrawal when made Charges payable by Client
In case of withdrawal before 12 months of date from which client account is activated
a) Fixed Management Fee up to 3% p.a. and b) Exit fees up to 3%
In case of withdrawal after 12 months but before completion of 24 months of date from which client account is activated
a) Fixed Management Fee up to 3% p.a. and b) Exit fees up to 2%
In case of withdrawal after 24 months but before completion of 36 months of date from which client account is activated
a) Fixed Management Fee upto 3% p.a. and b) Exit fees up to 1%
After completing 36 months of date from which client account is activated
The client will be charged fixed management fee up to 3% p.a. till the day client exits the strategy.
Option 2: Fixed Management Fee NIL & Performance fees upto 25% on all gains
PERFORMANCE FEE: The Performance fee in this Delta Conservative 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 is being charged on completion of 12 months (anniversary basis) and not financial year basis.
Following charges shall be payable by client upon withdrawal from the Delta Conservative Portfolio under Option 2:
Withdrawal when made Charges payable by Client In case of withdrawal before
12 months of date from which client account is activated
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 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% 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% Water Mark Principle based on the NAV of the day of exit from the strategy.
Option 3: Fixed Management Fee up to 3% p.a. & Performance fees up to 25%
FIXED MANAGEMENT FEE: The Fixed fee for the Delta Conservative 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).
PERFORMANCE FEE: 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 is being charged on completion of 12 months (anniversary basis) and not financial year basis.
The Portfolio Manager shall charge audit fees, custodial/ AMC charges and other charges/costs, attributable to the Portfolio Management Services at actual.
.Following charges shall be payable by client upon withdrawal from the Delta Conservative Portfolio under Option 3:
Withdrawal when made Charges payable by Client In case of withdrawal before
12 months of date from which client account is activated
a) Fixed management fee payable up to 3.00% p.a and
b) 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
c) Exit fees up to 3%
In case of withdrawal after 12 months but before completion of 24 months of date from which client account is activated
a) Fixed management fee payable up to 3.00% p.a. and
b) 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
c) Exit fees up to 2%
In case of withdrawal after 24 months but before completion of 36 months of date from which client account is activated
a) Fixed management fee payable up to 3.00% p.a. and b) 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
c) Exit fees up to 1% will be charged.
After completing 36 months of date from which client account is activated
a) Fixed Management fee upto 3% p.a. and
b) 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.
DELTA Moderate:
Fees and Expenses
PLACEMENT FEE: 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.
FIXED MANAGEMENT FEE: The Fixed fees for the Delta Moderate 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).
PERFORMANCE FEE: 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.
Clients have the following fee options: