pms energetic plan

8/9/2019 PMS Energetic Plan

1/15

KARVY STOCK BROKING LTDFebruary 10

KARVY

PORTFOLIO MANAGEMENTSERVICES


2/15

Sebi Reg No:INP00000151222February 10

Why Portfolio Management?Why Portfolio Management?

PMS gives client access to an institutional processPMS gives client access to an institutional processof money managementof money management

Wealth creation based on disciplined investmentWealth creation based on disciplined investment

process forms the crux of PMSprocess forms the crux of PMS

Effective diversification helps reduce portfolioEffective diversification helps reduce portfoliovolatility and enhances riskvolatility and enhances risk--adjusted returnsadjusted returnsover long termover long term

PMS gives investor direct ownership of thePMS gives investor direct ownership of theindividual securities in the portfolioindividual securities in the portfolio


3/15


Minimum Investment: Rs 5 LacsMinimum Investment: Rs 5 Lacs

Additional investment: multiples of Rs 50,000Additional investment: multiples of Rs 50,000

Acceptable in : Shares or ChequeAcceptable in : Shares or Cheque

Surplus to be invested in Liquid FundsSurplus to be invested in Liquid Funds

Key FeaturesKey Features


4/15


StrategyStrategy 40:60 ratio large cap : mid cap40:60 ratio large cap : mid cap

No of stocks to be invested in: 15No of stocks to be invested in: 15

Short to mediumShort to medium--term investingterm investing

Adequate diversification mitigating risksAdequate diversification mitigating risks

Maintain reasonable liquidity for unanticipatedMaintain reasonable liquidity for unanticipated

investment opportunitiesinvestment opportunities

Investment Horizon: 12 MonthsInvestment Horizon: 12 Months

Energetic PlanEnergetic Plan


5/15


Management Fees 2.5% p.a

Hurdle Rate 20% p.a.Profit sharing 20% of return above the hurdle rate

Brokerage charges 0.5% for all transactions at actual

Fees StructureFees Structure


6/15


Withdrawal earlier than 12 months, chargeWithdrawal earlier than 12 months, chargeof 2.5% levied on the funds or securitiesof 2.5% levied on the funds or securitieswithdrawn on full year basis + hurdle ratewithdrawn on full year basis + hurdle rate

on Pro rata basison Pro rata basis

Other account opening, handling, incidentalOther account opening, handling, incidentalcharges/fees/duties/ taxes & custodialcharges/fees/duties/ taxes & custodial

charges will be borne by the clientcharges will be borne by the client

Other ChargesOther Charges


7/15


OPENING NAV 500,000

CLOSING NAV 700,000

PROFIT AMOUNT 200,000

HURDLE RATE % (on opening NAV) 20%HURDLE AMOUNT 100,000

PROFIT BEYOND HURDLE RATE 100,000

KARVY'S PROFIT SHARING % 20%

KARVY'S SHARE OF PROFITS 20,000

Profit Sharing: IllustrationProfit Sharing: Illustration


8/15


Investors will receive:Investors will receive:

Quarterly account performance statementQuarterly account performance statement

Monthly Bank StatementMonthly Bank Statement

Audited Financial Statement at the endAudited Financial Statement at the end

of each yearof each year

Client UpdateClient Update


9/15


Sebi registered portfolio managerSebi registered portfolio manager

Fund manager ably supported by theFund manager ably supported by theresearch dept consisting of 20 + researchresearch dept consisting of 20 + research

analystsanalysts

Karvy Research rated in Asia MoneyKarvy Research rated in Asia Money

Investment Committee acts as a facilitatorInvestment Committee acts as a facilitatorfor the investment related decision processfor the investment related decision process

About UsAbout Us


10/15


Five member committeeFive member committee

Ambareesh Baliga : Vice PresidentAmbareesh Baliga : Vice President EquitiesEquities

Gopichand: Vice PresidentGopichand: Vice President -- Karvy Stock Broking LtdKarvy Stock Broking Ltd

Hemindra Hazari: HeadHemindra Hazari: Head--ResearchResearch

Subramaniam: HeadSubramaniam: Head--Institutional SalesInstitutional Sales

Ashish Kapoor: PMSAshish Kapoor: PMS

Investment CommitteeInvestment Committee


11/15


Investment PhilosophyInvestment Philosophy

Investment philosophy guided by two doctrines:Investment philosophy guided by two doctrines: Capital PreservationCapital Preservation Optimising GainsOptimising Gains

Achieved by Stringent Research ProcessAchieved by Stringent Research Process

Stock Selection Process: Focus onStock Selection Process: Focus on -- BusinessBusiness ManagementManagement ValuationValuation

Diversified across sectors and stocks with no more thanDiversified across sectors and stocks with no more than

20% in any one sector and20% in any one sector and 10% in any one stock10% in any one stock

Maximum number of stocks held will be 15Maximum number of stocks held will be 15


12/15


3.Portfolio CreationFocus on: Portfolio ObjectivesStock SelectionSectoral CompositionDiversification

2.Stock SelectionBusiness QualityManagementValuations

1.Sector SelectionGovernment PoliciesEconomic / Industry DataCapex Trends

5. Risk ManagementAdherence to diversification

/exposure normsCash levelsKeeping off low volume stocks

4. Portfolio Balancing

Strategic shift-Large Vs Mid capFluctuating Cash levels

Investment FoundationInvestment Foundation


13/15


7.Portfolio action7.Portfolio action

6.Weekly review by Investment Committee6.Weekly review by Investment Committee

1.Sector Identification1.Sector Identification2.Population screening2.Population screening

3.Management3.Management InteractionInteraction

4.Feedback to investment committee4.Feedback to investment committee

5.Determination of entry & exit points5.Determination of entry & exit points

Steps to Stock SelectionSteps to Stock Selection


14/15


Risk factors :Risk factors :

Equities as an asset class carry a higher risk in comparison to debt. Whilerisk cannot be totally eliminated, it can be mitigated through a well-designed investment strategy. The Karvy Stock Broking Ltd Portfolios seekto mitigate risk and deliver superior returns through research-basedinvesting. However, this objective may not be fully achieved due to variousreasons such as unfavourable market movements, misjudgment by portfoliomanager, adverse political or economic developments etc.

Disclaimer :Disclaimer :

Any information contained in this material shall not be deemed toconstitute an advice, an offer to sell/purchase or as an invitation orsolicitation to do for security of any entity and further Karvy StockBroking Ltd and its employees/directors shall not be liable for any loss,damage, liability whatsoever for any direct or indirect loss arising from theuse of this information. Recipients of this information should exercise due

care and caution and read the offer document (if necessary obtaining theadvice of finance/other professionals) prior to taking any decision on thebasis of this information.

Important InformationImportant Information


15/15


For more informationFor more information

Call: 022Call: 022--2289500022895000Email:Email: [email protected]@karvy.com

Visit us at:Visit us at: www.karvy.comwww.karvy.com

pms energetic plan

Documents