Introduction
Our Portfolio Management Services is an exclusive offering from Way2Wealth that
specializes in providing risk managed investment solutions to discerning High Net
Worth Individuals, Non Resident Indians (NRIs), Overseas Corporate Bodies (OCBs)
and Indian Corporates.
Our primary goal is to outperform market averages consistently, thereby creating
long-term wealth, and at the same time, carefully manage risk as per the set objectives
of our clients. With a legacy that dates back to 1984, we have developed a strong
reputation for navigating our investors through the ups and downs of the market.
Our Portfolio Management Advantage
Managing one's investment portfolio has today become a very complex task that requires
constant monitoring and active management. Financial markets these days are characterized
by increased volatility and strong links to various domestic and global factors.
Our portfolio management team which is in constant touch with ever changing economic
and market conditions, coupled with substantial market knowledge, is in a better
position to handle these complex and dynamic situations.
Our Discretionary Portfolio Management Service gives investors the benefit of unbiased
investment advice designed to achieve their financial objectives. We bring discipline
into investment management and eliminate emotion that an individual investor generally
succumbs to.
We professionally manage your portfolio with the objective of delivering consistent
long-term performance while controlling risk. Our highly qualified research analysts
provide investment ideas and real time information to support our portfolio management
team. Our "Investment Review Committee," establishes appropriate investment strategies
and discusses efficient changes to your portfolio based on market conditions.
In addition to managing your portfolio, we also undertake all operational activities
such as custody, accounting and reporting, thus making it completely hassle free
from your perspective.
Convenient and Professoinal Management
Our investment process flow is simple and easy starting with a detailed discussion
and an in-depth understanding of your financial health, your investment objectives
and your appetite for risk. Based on these discussions, we will design a portfolio
that best suits your personal objectives.
Constant interaction between you and the portfolio manager ensures that any changes
that might affect your financial situation be reflected in your portfolio.
Our Investment Philosophy
- While buying equity, we are buying a part of a business. The underlying asset is
an earnings-yielding asset and grows gradually over a period of time; hence we buy
equity with a long-term view.
- Bottom up approach to stock picking.
- Focus on Growth + Value – The focus is on buying the assets cheap without compromising
on growth potential.
- Most importantly, there is a Time and a Price for everything. Equity valuations
should be fair, reflecting value and growth. Margin of safety is also important.
- Anytime, anywhere access
- Instant execution
- Investment ideas and technical calls
- Reduced paperwork
- Highest levels of security
- Superior customer service
Advantages of the PMS
Professional Management
The service offers professional management of your equity investments with an aim
to deliver consistent return with an eye on risk management.
Risk Control
Well-defined investment philosophy & strategy acts as a guiding principle in defining
the investment universe. We use state-of-the-art technology that enables the entire
construction, monitoring and the risk management processes.
Convenience
Our Portfolio Management Service relieves you from all the administrative hassles
of your investments. We provide periodic reports on the performance and other aspects
of your investments.
Constant Portfolio Tracking
We understand the dynamics of equity as an asset class, so we track your investments
continuously to maximize the returns.
Transparency - the key
We constantly endeavour to keep our investors updated with the latest information
by providing them reports on a daily, monthly and quarterly basis. With the latest
technology and via a password protected website you will have access to all information
relating to your investment on daily basis just at the click of a button. The following
portfolio reports are accessible online:
- Daily holding and performance report of your portfolio
- Detailed statements of all transactions in your account
- Research reports on the stocks covered by our analysts
- Detailed sector wise allocation of your portfolio
You will also be periodically provided with a tax status report of your portfolio
for advance tax purposes and a comprehensive tax statement at year-end to facilitate
your IT returns filing.
Our Portfolio Management Service gives you all the customisation without the hassles
involved in managing equity or mutual fund investments directly. Our team takes
care of all the administrative aspects of managing your portfolio.
Why PMS over mutual funds?
- Mutual Funds as an investment vehicle are structured to reduce risks as far as possible,
as they cater to thousands of investors.
- In a mutual fund, the needs that are disparate among clients get clubbed into one
scheme; while in PMS we offer customized solutions based on each client’s specific
needs.
- As a discerning investor, who understands the risk-reward ratio, you want
-Portfolio designed for your individual needs & objectives
-Portfolio comprising of select ideas
-Ability to take focused plays both in sectors and stocks
-Efficient allocation of assets viz. Equity, Debt and Cash as per market condition
-Flexibility to make swift changes in your portfolios
- Superior customer service
Schemes Offered
We offer strategies across the risk - reward spectrum
Wealth Weaver
Wealth Weaver is a strategy that takes relatively lower risk by investing majority
of your funds in large and liquid stocks with a Medium to Long Term perspective
Wealth Optimiser
Wealth Optimiser is an aggressive strategy that takes relatively higher risk by
investing majority of your funds in mid cap stocks which can be potential multi-baggers
with a long trem horizon.
Wealth Escalator
Wealth Escalator is a super aggressive strategy that takes higher risk and aims
at investing almost 100% of your portfolio in mid caps plus it would take concentrated
bets in limited stocks with a long trem perspective.
Wealth Spiral
Wealth Spiral is a unique proposition, combining the art of Fundamental analysis,
Technical analysis and Sectoral momentum, to trade in quality stocks just-in-time.
Account Opening
We invite you to become a part of our Portfolio Management family and enjoy the
benefits of having your portfolio professionally managed by our team. To know more
about Way2Wealth and our Portfolio Management Services just write us at
alokranjan@way2wealth.com and we will get back to you at the earliest opportunity.
Who can Sign up?
- Individuals
- Partnership Firms
- Hindu Undivided Families - HUFs
- Association of Persons
- Limited Companies
- NRIs, Overseas Corporate Bodies (OCBs), Firms, Societies, trusts, etc. (subject
to RBI approval)
Get your sleeping portfolio back to life
If you have an existing investment portfolio that is inactive, you can also avail
of our Portfolio Management Service. We offer the service of taking over your existing
portfolio and realigning it to best suit your risk profile.
Account Opening Process
The account opening process is quiet simple and our relationship manager would assist
you in completing the entire process smoothly. We would be opening a Way2Wealth
PMS and HDFC demat & bank account. Address proof, Identity proof and a Pan card
copy would be required. A Permanent Account Number (PAN) has to be provided for
investment in the PMS scheme.
Disclosure Document for PMS - Kindly click
to download disclosure document.
Fee Structure
We offer a competitive fee structure. The fee charged can be a combination of a
moderate Management Fee and a variable Performance Fee or just a fixed Management
Fee
FAQ's
- What is the difference between a discretionary and a non-discretionary Portfolio
Management Services?
The discretionary portfolio manager independently manages the funds of each client
in accordance with the needs of the client. The onus of taking investment decisions
in this case lies with the Portfolio Manager and not with the client.
On the other hand, the non-discretionary portfolio manager only provides advisory
services to the client where the client retains the decision-making powers in the
portfolio.
We offer Discretionary Portfolio Management Services.
- How can I introduce my initial corpus?
Initial corpus can be brought into the Portfolio Management Service by way of either
Cash and or securities/shares. The initial portfolio of securities/shares will be
re-aligned as per the model. We sell shares as required to get the holdings re-aligned
to our model portfolio.
- What is the minimum ticket size?
Minimum ticket size for PMS for all portfolios is Rs. 25 lakhs. As mentioned above,
Initial corpus can be brought into the Portfolio Management Service by way of either
Cash and/or securities/shares.
- Do you guarantee the initial corpus and any 'return' thereon?
As per regulations governing Portfolio Management Services in India, returns cannot
be guaranteed. We shall endeavor to out-perform the benchmark indices like sensex
& Nifty but there can be no guarantee or certainty of the same. We believe, over
long term, equities performance will track corporate performance. Historical trends
indicate that well managed equity portfolios in Indian markets can easily yield
up to 15-18% per annum returns. However the future returns may be very different
for market risk as well as risk with any portfolio manager's judgment.
- Is there a maximum limit for investing in the Portfolio Management Service?
There is no upper limit on the amount you can invest in the Portfolio Management
Service.
- What is the time horizon?
In most of our schemes the ideal time horizon for an equity portfolio is at least
12-18 months.
- Does the Portfolio Management Service have any lock-in period?
The Portfolio Management Service has no lock-in period. You can exit at any point
of time. However, the ideal time frame is 12-18 months as equities outperform most
other asset classes only in the long run.
- What is your investment philosophy?
We invest as per objectives of a particular scheme. We typically pay more attention
to a company's fundamentals, valuations and future growth potential. Our portfolio's
do not mimic indices and are more governed by the bottom-up approach.
- At what frequency, can I see my NAV, positions and transactions?
You can check your portfolio on a daily basis by logging on to our website
http://www.way2wealth.com. In addition, you get monthly statements of transactions,
holdings etc. You can also access these reports online.
- Is the payment upfront?
Yes the payment has to be made upfront. Of course, one can introduce any additional
amount later on.
- Will the Contract Notes be available in physical form or online?
No contract notes will be available. Detailed statement of accounts would be emailed
at the end of the month. Physical copy will be sent quarterly.
- Are there different forms for different funds?
Yes, a fresh form needs to be filled for different funds.
- Is there any pre-decided percentage of amount by which we will be compulsorily
invested at any given time?
No. The fund manager will invest according to the market conditions. We can sit
on 100% cash also some time.
- Can I specify investments that I want or don't want to hold?
Since we offer only Discretionary Portfolio management Services, the discretion
to invest primarily lies with the Portfolio Manager. Any securities/shares handed
over as initial portfolio will be aligned to the model.
- In whose name investment will be made?
Under PMS all investments will be made in the name of the client.
- What is the paperwork and documentation needed to open a PMS account?
The account opening process is simple and our relationship manager would assist
you in the same. We would be opening a Way2Wealth PMS and HDFC demat & bank account.
Address proof, Identity proof and a Pan card copy would be required. A Permanent
Account Number (PAN) has to be provided for investment in the PMS scheme.
- Do I need to have Permanent Account Number?
A Permanent Account Number (PAN) has to be provided for investment in the PMS scheme.
- Can you give scrip's instead of funds then how will the scrip's be valued?
The stock valuations will be taken when it is transferred in the clients HDFC Demat
Account. The value of investment might fluctuate due to transaction incurred to
re-align the portfolio with the scheme.
- What is the Fee Structure for PMS?
We offer a competitive fee structure. The fee charged can be a combination of a
moderate Management Fee and a variable Performance Fee or just a fixed Management
Fee.
High Water Marking
Performance based management fees are charged only where there is incremental profits
(High Watermarking) and not on all profits
High Watermarking would be adjusted for infusion and withdrawal of funds.
- Can I withdraw my profit any time?
You can withdraw your profit as & when you want, provided you maintain the minimum
ticket size.
- What if I terminate from the PMS before one year?
You can terminate from PMS at any time; charges as agreed would be applicable.
- How regularly can I get updates on my portfolio?
The Account Statement as well as the Statement of Holding of your equity portfolio
will be couriered to you on a quarterly basis. You will be able to view the same
online. The statements will have complete details of portfolio transactions and
a comprehensive performance review which will be uploaded on the website. You can
view the same on our website on a daily basis.
- How safe are my securities under the Portfolio Management Service?
Way2Wealth PMS is a depository participant with HDFC. This ensures complete safety
in operations. Stock ownership always rests with the client.
- Where will you invest my money?
Way2Wealth PMS is a depository participant with HDFC. This ensures complete safety
in operations. Stock ownership always rests with the client.
- Do you indulge in day trading under PMS?
No, we do not indulge in any day trading activity. Our Portfolio management Schemes
are designed from a long-term perspective and we will invest in accordance with
the objectives of each Scheme. It is advisable to keep any equity portfolio invested
over a longer term because in the long run, equities outperform other asset classes.
- Do you invest in IPO’s?
If the Portfolio Manager finds that an IPO presents a good investment opportunity
then he may invest in the same.
- Do you invest in Derivatives (Futures/Options)?
Derivative transaction, if done, will only be for hedging purposes (as allowed by
SEBI). No speculative position is allowed.
- Do you invest in debt instruments? What proportion?
Part of the portfolio might be invested in debt or liquid fund depending on the
strategy chalked out by the Fund Manager.
- What are the tax implications of investments in PMS?
Under the Portfolio Management Scheme, each transaction scheme will be considered
as an independent trade and capital gains will be applied on each depending upon
whether the relevant stock was held long-term or short-term. Presently 15% tax is
chargeable for Short Term Capital gains and no tax is chargeable on Long Term Capital
Gains. The STT charges will also apply.
- How will I know my tax status?
We expect all clients to consult their tax consultant before investing into any
form of securities. At Way2Wealth securities, we give each client an audited tax
statement of his portfolio annually. The same can be used when you file your returns.
- Can a NRI avail of the Portfolio Management Service?
The Portfolio management Schemes is open for all Indian nationals, resident or otherwise.
NRIs will have to open a PIS Account in order to invest in the PMS scheme, which
facility we will provide to all NRIs.
- What is PIS?
In order to invest in the Secondary Markets in India, NRIs need to obtain RBI permission.
In order to do so, a Bank account with a designated bank has to be opened under
Portfolio Investment Scheme (PIS) and all the transactions related to the investment
in secondary markets need to be routed through this account.
- What would the Portfolio Manager do in case of falling markets?
To begin with we will assess the situation on two parameters Whether the fall is
a mere correction or Signal of reversal of trend Based on our assessment of the
fall, we will accordingly decide on the necessary course of action. In the first
instance, depending on the anticipated extent of the correction, we may increase
the percentage of cash in the portfolio. Since our focus is always to invest in
those companies which are available at an attractive valuation, we believe that
in the long term, any stock will always seek its fair valuation which is unaffected
by corrections in the market. If however, we see signs of a trend reversal; our
focus may change to increasing the cash component and restrict investments to defensive
sectors, which have low beta relative to the markets.
- What are the advantages of investing in PMS vis a vis Mutual Fund?
You have greater control over the asset allocation in case of PMS. The portfolio
can be customized to suit your risk-return profile. The Portfolio manager has relatively
greater flexibility to move in and out of cash as and when required depending on
the market view. Typically, charges are lower and more transparent in PMS vis-à-vis
a Mutual Fund. Holdings not impacted by entry/exit of big investors.
- Do you charge any entry or exit load akin to a Mutual Fund?
We do not charge any entry or exit load. Our charges are transparent and are described
elsewhere in this document