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)?
Yes
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.
