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Products
Performance
Processes
Investment Opportunities
Fixed Deposits
OR
2
Trading on your Own
Mutual Funds
Cons Low returns coupled with high tax No possibility of riding on markets
PMS Vs..
Cons
Very high time involvement Need for in-depth research Chances of not booking losses Over exposure to certain stocks / ideas Over leveraging Possibility of lack of discipline on trading
PMS Vs..
Mutual Funds
Pros Can start of with a very low initial investment Ideal for small time investors
Cons No personalised portfolio / investment created Not suitable for HNIs Inbuilt charges - reduce returns lack of transparency Cannot liquidate to stop the erosion in fund value
Why Ideal ?
Hassle Free Operation Periodic reporting on the overall status of the portfolio and performance.
Why Ideal ?
Continuous Monitoring It is important to recognize that portfolios need to be constantly monitored and periodic changes made to optimize the results.
Flexibility Portfolio Manager has fair amount of flexibility in terms of holding cash (can go up to 100% also depending on the market conditions). He can create a reasonable concentration in the investor portfolios by investing disproportionate amounts in favor of compelling opportunities
Why Ideal ?
Transparency
PMS provides comprehensive communications and performance reporting. Investors will get regular statements and updates from the firm. Web-enabled access will ensure that client is just a click away from all information relating to his investment.
Customized Advice
It can be structured to automatically exclude investments you may own in another account or investments you would prefer not to own
Why Ideal ?
Post Sales service
Dedicated Client Servicing Team to address your queries. Detailed portfolio reports are available at timely basis like
Investment Summary Portfolio Holding Transaction Statement Bank Book Realized / Unrealized Gain Loss Details Fees Charged Statement (Debit Note) Corporate Benefit (Bonus / Dividend / Right issues declared, etc.) Fund Managers Report.
PRODUCTS
ProPrime (Fundamental)
ProTech (Technical)
PEOPLE
Over 20 years experience across Equities, Fund management, & PMS Previous Experience: 2008-2009: Head of PMS at Asit C Mehta Investments Intermediaries Ltd (2008-2009) 2006 2008: Head Equity and Fund Manager for Rami Investments 1994-2006: Fund Manager for OCB, Mauritius with over Rs 40 crore of NRI funds managed
Over 16 years experience in Stock Market Analysis MMS from Mumbai University Previous Experience: Since 2004: Market Strategist with a team of 3 technical analysts monitoring trends across Equity and Commodity markets in India and across the world
Over 8 years experience in the financial industry which includes almost 3 years on the fund management side. Prior joining Sharekhan in 2007, he was working with Karvy Stock Broking House as a Derivative Research Analyst. He is among the prominent stock market experts whose opinions are sought after by leading media companies like CNBC TV 18, CNBC Awaaz, NDTV Profit, Bloomberg UTV. & ET Now His educational qualifications includes, bachelor of computer application in 2003 from Bhopal University followed by MBA in Finance from ICFAI Hyderabad in 2005.
PHILOSOPHY
ProPrime PMS
ProPrime PMS
ProPrime PMS
ProPrime PMS
Availability of basic Research . Basic fund management rules (Investment Philosophy, Sector Allocation, Scrip Allocation, etc.)
ProPrime PMS
How it Works
ProPrime PMS
How it Works
Balance risk & Descent growth by.. Diversifying sectors & number of scrip's. Investment Philosophy is in place. Allocation of maximum percentage of scrip's. Stop loss in place. Non Leverage Portfolio.
ProPrime PMS
How it Works
Basic Allocation for Core Portfolio 60% Trading Portfolio 20% & Cash 20%
ProPrime PMS
How it Works
Building a long term Portfolio Trading activity gives movement to the portfolio & covers the cost
ProPrime PMS
Investment Philosphy
Balance Risk and Growth Bullish on the markets - time horizon for the investment 3-5 yrs
SECTORS
ProPrime PMS
We are bullish on Capital Goods, Infrastructure, Banking, Pharma, Ites Power, Insurance and Retail
We are underweight on Telecom, Realty (outside Mumbai) Media
Investment Philosophy
Rather than timing the market we buy on DIP and book profit above 25% - 30% on SEP (systematic exit plan) We would like to be in stocks with less burden on Balance sheet and good earning visibility
ProPrime PMS
Our Offering
ProPrime PMS
Reporting:
Our Offering
ProPrime PMS
Our Offering
ProPrime PMS
Corpus: Indian Resident - Rs 5 Lakhs
Our Offering
NRI - We recommend Rs.10 Lakhs as an initial Investment to ensure PIS charges pertaining to bank are Rationalised. Fees: 2.5% per annum AMC charged every quarter @ 0.625% 0.5% brokerage 20% profit sharing after 15% hurdle is crossed-chargeable at the end of the fiscal year.
ProPrime PMS
Year NAV return % age BSE return % age NSE return % age Apr10-Feb11 -25.1% 1.7% 1.6% FY 09-10 93.6% 80.5% 73.8% FY 08-09 -43.0% -37.9% -36.2% FY 07-08 15.8% 19.7% 23.9% FY 06-07 10.8% 15.9% 12.3% FY 05-06 75.5% 73.7% 67.1% Since Inception 218% 271% 256%
* Returns are based on the clients who are in the system since Inception
Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those returns are calculated on the basis of cash flow method at a portfolio Level
ProPrime PMS
Date NAV return % age BSE return % age NSE return % age Jan'11- Feb11 -26% -13% -13% -9.1% 2.2% 1.7% Oct'10-Dec'10 Jul'10-Sep'10 8.9% 13.4% 13.5% Apr10-Jun'10 1.8% 1.0% 1.2% Jan'10-Mar'10 2.9% 0.4% 0.9% Oct'09-Dec'09 2.7% 2.0% 2.3% Jul'09-Sep'09 11.0% 18.2% 18.5% Apr'09-Jun'09 65.0% 49.3% 42.0% Jan'09-Mar'09 -3.8% 0.6% 2.1% Oct'08-Dec'08 -24.1% -25.0% -24.5% Jul'08-Sep'08 -0.7% -4.5% -3.0% Apr'08-Jun'08 -21.3% -14.0% -14.7% Jan'08-Mar'08 -29.1% -22.9% -22.9% Oct'07-Dec'07 23.0% 17.3% 22.2% Jul'07-Sep'07 9.1% 18.0% 16.3% Apr'07-Jun'07 21.6% 12.1% 13.0% Jan'07-Mar'07 1.1% -5.2% -3.7% Oct'06-Dec'06 7.8% 10.7% 10.5% Jul'06-Sep'06 13.1% 17.4% 14.7% Apr'06-Jun'06 -10.1% -5.9% -8.1% Jan'06-Mar'06 20.5% 20.0% 20.0% Oct'05-Dec'05 7.5% 8.8% 9.0% Jul'05-Sep'05 29.1% 20.0% 17.1% Apr'05-Jun'05 5.0% 10.8% 9.1% Jan'05-Mar'05 4.0% -1.7% -2.2% Oct'04-Dec'04 20.9% 18.3% 19.2%
* Returns are based on the clients who are in the system since Inception
ProTech PMS
REASON # 1
ProPrime PMS
Term investorRedefined
Today's investor does not have a holding period of > 3 Months WHY?
2500
2003
2000
1500
1991
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
50000
x 1000
2003
ProPrime PMS
Term investorRedefined
Buy and Hold strategy did not work during 90s. Again failed during 2006-2010 Need to play both sides of the market!
SENSEX
ProPrime PMS
CAGR = Wealth
Warren Buffet = Wealth; Because = 30% CAGR up to Y2000 Focus on performance and not out performance Absolute returns at end of year with defined risk appetite Result = CAGR = Wealth creation.
REASON # 1
Trading is a Discipline
Clients have been unable to do this Because 1. Knowledge 2. Trading is often leveraged; Leading to leveraged losses for clients Protech works on Zero leverage. Professional Traders. PMS does not permit leverage
Investors Need
LONG SHORT STRATEGIES
Reward Risk
Legally sound SEBI regulation, safety for clients funds in his name Zero leverage allowed under PMS. Full fund utility 100% exposure + Cash in liquid funds No lock in period, High liquidity, payout in 3 days
Zero AMC fees, Profit objective is clear C/f of losses before fees.
Long term Track record All the above offer edge over MFs
ProTech PMS
Aim :
How it Works
ProTech PMS
NiftyThrifty :
How it Works
Trades long and short depending on the trend prevalent in the markets Using a mathematical model with no human intervention. Model back- tested for 30 years to give excellent prediction of market direction While trades in Nifty futures, it is a non-leveraged product Absolute
on back-testing and
even in live performance
ProTech PMS
Philosphy
Knowledge of technical analysis and power of derivatives to identify trading opportunity in the market
ProTech PMS
Rs. 1,000 invested in 1979 would be 6,40,81,524 today if profits were reinvested.
The rising green line shows the rising value of a portfolio in a straight line during several bull and bear markets.
This is what we call Linearity Of Returns.
x10000
79
81
83
85
87
89
91
93
95 96 97 98 99 00 01 02 03 04 05 06 07 08 010
ProTech PMS
Date % Sensex 1979 -----1980 25% 1981 54% 1982 4% 1983 7% 1984 7% 1985 94% 1986 -1% 1987 -16% 1988 51% 1989 17% 1990 35% 1991 82% 1992 37% 1993 28% 1994 17% System -----25% 25% 22% 26% 8% 127% 42% 34% 44% 7% 76% 17% 261% 81% 54%
Historical Performance
Date % Sensex System 1995 -21% 34% 1996 -1% 33% 1997 19% 55% 1998 -16% 62% 1999 64% -1% 2000 -21% 87% 2001 -18% 67% 2002 4% 14% 2003 73% 63% 2004 13% 41% 2005 42% 44% 2006 47% 38% 2007 47% 13% 2008 -52% 83% 2009 81% 33% 2010 17% 12%
*Tested on historical performance on Sensex [CY] Model has consistently performed over 30 years
ProPrime PMS
Year Apr'10-Feb'11 FY 09-10 FY 08-09 FY 07-08 FY 06-07
NAV return % age BSE return % age NSE return % age 8.6% 1.7% 1.6% 14.7% 80.5% 73.8% 28.6% -37.9% -36.2% 9.6% 19.7% 23.9% 10.8% 15.9% 12.3%
* Returns are based on the clients who are in the system since Inception
Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those returns are calculated on the basis of cash flow method at a portfolio Level
ProPrime PMS
Date NAV return % age BSE return % age NSE return % age Jan'11 - Feb11 4.49% -13% -13% Oct'10-Dec'10 5.06% 2.19% 1.73% Jul'10-Sep'10 -1.45% 13.38% 13.50% Apr10-Jun'10 0.40% 0.99% 1.21% Jan'10-Mar'10 1.83% 0.36% 0.92% Oct'09-Dec'09 -6.21% 1.97% 2.30% Jul'09-Sep'09 -9.92% 18.17% 18.48% Apr'09-Jun'09 33.28% 49.29% 42.04% Jan'09-Mar'09 -8.45% 0.63% 2.09% Oct'08-Dec'08 16.21% -24.98% -24.53% Jul'08-Sep'08 6.53% -4.47% -2.95% Apr'08-Jun'08 13.46% -13.95% -14.66% Jan'08-Mar'08 18.68% -22.88% -22.87% Oct'07-Dec'07 -11.75% 17.33% 22.25% Jul'07-Sep'07 9.24% 18.02% 16.28% Apr'07-Jun'07 -4.18% 12.07% 13.00% Jan'07-Mar'07 1.83% -5.18% -3.65% Oct'06-Dec'06 5.47% 10.70% 10.53% Jul'06-Sep'06 2.87% 17.39% 14.71% Apr'06-Jun'06 0.28% -5.95% -8.06%
* Returns are based on the clients who are in the system since Inception
ProTech PMS
Rs 10 lakhs invested in 2006-07
Date 1st April'06 1st April'07 1st April'08 1st April'09 1st April'10 31st Dec'10 Nifty Thrifty Equivalent NAV Sensex NAV Equivalent Nifty NAV
Date 1st April'06 1st April'07 1st April'08 1st April'09 1st April'10 31st Dec'10
1,000,000 1,039,525
1,000,000 1,170,091
1,000,000 1,168,677
ProPrime PMS
Investors looking for returns from short term momentum trading opportunities in the market.
Investors looking at a higher return than fixed income securities or deposits, with regular payouts from profits every-time NAV grows more than 3%
ProPrime PMS
Above average returns but not high risk trades. Risk per trade is 2-3%
1:2 risk reward ratio. Risk managed with the use of trailing stop losses on an intraday basis.
ProTech PMS
Will trade on the long and short side of the market Will trade in liquid stocks and mostly in stock and index futures listed on the F&O market Exposure will not exceed value of the portfolio i.e. there will be no leverage
ProTech Diversified
Trading shorter term with long term approach
ProTech Diversified
Aim
To generates absolute Return consistently through disciplined trading in a balanced diversified portfolio with calculative risk.
ProTech Diversified
Key Features
Ability to outperformed the benchmark on long-term basis. Natural hedge to the portfolio as it can generate return in downward market as well.
ProTech Diversified
Key Features
ProTech Diversified
Nifty 32%
Rationale for buffer Will be utilised in case draw down Mark-to-market Basis for stock selection Liquidity Sector coverage Individual risk-returns of
Buffer 15% Stocks 35%
Banknifty 18%
2-Oct-10 2-Jul-10 2-Apr-10 2-Jan-10 2-Oct-09 2-Jul-09 2-Apr-09 2-Jan-09 2-Oct-08 2-Jul-08 2-Apr-08 2-Jan-08 2-Oct-07 2-Jul-07 2-Apr-07 2-Jan-07 2-Oct-06 2-Jul-06 2-Apr-06 2-Jan-06
1200 1000 800 600 400 200 0
ProTech Diversified
ProTech Diversified
Year
System Returns
Nifty Returns
2006
2007 2008 2009 2010
42%
45% 55% 49% 17%
40%
55% -52% 72% 18%
System is tested from 1 Jan 2006 to 31 Dec 2010 Returns are pre-cost
ProTech Diversified
Quarter 31-Mar-06 30-Jun-06 29-Sep-06 29-Dec-06 30-Mar-07 29-Jun-07 28-Sep-07 31-Dec-07 Nifty 20% -8% 15% 11% -4% 13% 16% 22%
Nifty 1% 1% 14% 2%
Diversified 7% 1% 8% 1%
ProTech Diversified
ProTech Diversified
Steps taken :
Changes already made: Replaced RNRL with REC Ltd. Replaced HDIL with JP-associate. Increased stock exposure from 3% to 3.5%.
Changes under consideration: Increasing the stock exposure further. Introducing high beta stocks in place of low beta stocks. Increasing Bank nifty exposure.
Time
100% 50% 0%
F-06
F-07
F-08
F-09
O-06
O-07
O-08
O-09
F-10
-50%
Nifty Diversified
Percentage return
O-10
J-06
J-07
J-08
J-09
J-10
Buffer Reinvesting in case of draw-downs helps in faster recovery. Client will be given 50% of profits on quarterly basis Non leveraged product
ProTech Diversified
Date Jan'11 - Feb'11 Oct'10-Dec'10 Jul'10-Sep'10 Apr10-Jun'10 Since Inception
NAV return % age BSE return % age NSE return % age 5.96% -13.10% -13.06% 1.77% 2.19% 1.73% 6.3% 13.4% 13.5% -1.4% 0.1% 0.4% 11.05% 3.59% 4.07%
* Returns are based on the clients who are in the system since Inception
Disclosure: Returns shown above would be different from the returns mentioned in Risk Disclosure form as those returns are calculated on the basis of cash flow method at a portfolio Level
ProTech PMS
Our Offerings
Fees AMC fees : 0% Brokerage : 0.05% only Profit Sharing :20% profit sharing on booked profits on quarterly basis
PROCESS
Details of How PMS Works..
TAXATION
ProPrime PMS
Adjusting profits:
Computation of Tax
Profits are adjusted against the expenses borne for maintaining the PMS A/c which is available in the ledger
Other charges: Profit Sharing, Brokerage charges & any other charges are to be treated as expenses borne for the PMS A/c.
ProTech PMS
Computation of Tax
in Sharekhan PMS
Thank You