Q. What is the difference between the three?
MAS Advice is information and holistic advice on not only all kinds of investments (bonds, fixed deposits, mutual funds) but also on insurance and taxes. This helps you to stay safe and smart and plan your finances.
MAS Stocks and MAS Wealth are concerned mainly with stock investment. Investments in stocks can help enhance your returns and it is advisable to earmark a part of your portfolio to good quality stocks.
Q. What is the difference between PMS and other services of MAS?
Q. Would the stocks be different than those in MAS of Panther, Lion and Antelope?
Q. Who is PMS meant for?
PMS may be useful for individuals or institutions/ entities looking for personalised investment solutions, long-term wealth creation and wise handling of the wealth already created.
Q. Who is eligible for investing in PMS?
Individuals (residents and non-resident Indians) and non-individuals such as Hindu Undivided Families (HUF), partnerships firms, sole proprietorship firms and companies can invest. An NRI can invest in a PMS through an NRE or an NRO account.
Q. Is there a minimum investment amount?
Yes. SEBI has mandated Rs50 lakhs should be the minimum investment in a PMS under one name. You can invest money through RTGS / NEFT / Cheque / DD from a bank account that is in your name and mapped with us.
Q. Can I transfer my existing holdings?
We would prefer a cash contribution. However, you can also turn over an existing portfolio of stocks for management. However, please note we would not accept shares which are recommended in our advisory service or stockletters, as this may involve a conflict of interest, between the two services. The strategies and stocks in these two services are separate. Whenever we sell some or all of the shares that have come in as your contribution, there will be capital gains and normal transaction charges. These shares have to come from a demat account under your name. You have to let us know the date of acquisition and the cost of acquisition, to help report your returns correctly.
Q. Can I add fresh funds occasionally?
Yes, you can transfer new funds from your bank account.
Q. How much should I invest?
That depends on your specific financial condition and age. In general you should not invest any money that you are dependent on, such as your retirement corpus.
Q. Can I bring in additional funds later? What is the Minimum top up amount?
Yes, you can. There is no minimum amount for top up
Q. Can I partly withdraw my money from my PMS account?
Yes, you can withdraw, provided the portfolio value does not fall below the minimum limit of 50 lakhs. You have to give a request for the same in writing. However, charges as agreed will be applicable.
Q. What is the current AUM and number of clients?
Please see https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doPmr=yes (monthly reports are available from December 2019 onwards)
Q. What is the market cap orientation of the two schemes?
MAS Prime is more oriented to large-caps. MAS Growth is more oriented to small and mid caps
Q. Do you open a bank account for each client or do you operate on a pool account basis?
For Resident clients, we operate on a pool account basis. For Non Resident Clients, we need to open a NRI PIS Bank account.
Q. Can the PMS and Demat accounts be opened in joint names (of me and my wife)?
Q. What is the maximum number of stocks that could be in the portfolio?
It could be 20-22, but on an average, it would be around 15.
Q. Is the portfolio customized and exclusive for each client or constructed on the basis of a model portfolio?
The portfolio is based on the time when the client comes in. For instance, if older stocks have run up a lot, we may not buy those for new clients.
Q. What is the investment philosophy that you follow for stock selection?
Our investment philosophy, showcasing our approach to stock picking is shared on our PMS website https://advisor.moneylife.in/pms/ under >> Downloads >> Philosophy Here is the url https://advisor.moneylife.in/media/pdf/pms/MAS%20PMS.pdf
Q. How often do you reshuffle portfolio?
If a stock is doing well, we don't touch it. However, we think most sectors and stocks run in cycles and we are on the lookout to play those cycles.
Q. Do you have an evaluated list of stocks you follow or do you keep things open?
We have a shortlist of high-quality stocks. This usually excludes commodity stocks, public sector companies and companies with poor financial ratios.
Q. Do you keep cash holdings in liquid funds, till invested?
Yes, but returns from liquid funds are so poor that only during a prolonged bear market, it makes sense NOT to buy stocks. Usually, we have noticed we always find some goods stocks to buy.
Q. Are any sell/ buy calls explained to customers?
No. Since we run a discretionary portfolio, clients leave the job of buying and selling to us. They can withdraw their money anytime too. We would like our performance to speak.
Q. How often do we get to speak with fund manager?
There is no hard and fast rule. We have found investors are focused on getting returns. Interestingly, no one called to speak during the crash. It worked out well for both sides. Since we run a discretionary portfolio, clients leave the job of buying and selling to us. They can withdraw anytime too. We would like our performance to speak.
Q. When was the last time your investment process failed?
PMS was launched only in Dec 19 but we have been recommending stocks since 2012. Our process has evolved since then. It failed in 2018, when we didn’t exit from some stocks. We have corrected that flaw with a dynamically adjusted exit level. This has worked well too.
Q. Are your returns back tested?
As mentioned, we have been running live portfolios with continuous tweaks. It has worked well over 8 years.
Q. What do you think about current market, are they efficient?
Markets are never efficient.
Q. How do you determine what asset class are good and bad value propositions?
We stay focused on individual stocks, which give the best returns. Comparison of asset classes makes no sense to us because usually market indices are used as a proxy.
Q. Are you offering any Direct /Fixed fee Plan.
Direct plan as is understood here, is a plan that eliminates distributors and allows investors to invest directly. We have only direct plans as of now.
Fixed fee plan is one where PMS fees are fixed and there is no profit-sharing. We don't have fixed fee plans now but we can consider it.
Q. Is it possible to share your current portfolio to get a sense of the stocks you invest in?
No, we cannot disclose the portfolio right now.
Q. Will online access be provided?
Yes, you can login to the PMS Client dashboard https://pms.moneylife.in/portfolio.html, with your registered email id and password to access the same.
Q. Do you have a fixed fee option (without performance fee)?
No, we don't
Q. Is there any flexibility or special offer on the fee structure?
No, there isn't
Q. Is there a lock-in period?
No, PMS has no lock-in period.
Q. Is there an exit load?
There is no exit load