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 at Way2Wealth is Rs. 25 lakhs. We have recently introduced our new fund i.e. Way2Wealth Dynamic fund (Wealth Spiral) with a minimum ticket size of Rs. 15 lakhs.
 

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
 

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