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Alchemy Leaders
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Alchemy High Growth
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Alchemy Discovery
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Alchemy Active
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Alchemy Long Short
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1. What is Portfolio Management Services (PMS)?
PMS is a proposition, wherein, the portfolio manager constructs and manages a portfolio comprising of stocks or bonds that would be customized to the client’s investment goals and risk preferences.
2. What does Alchemy PMS offer?
At Alchemy Capital Management, we specialize in understanding and managing equity as an asset class. The promoters of the company individually have more than 15 years of experience in the Indian financial markets.
Alchemy offers discretionary PMS services wherein the portfolio manager constructs and manages the investments of the client on a day-to-day basis.
3. How different is a PMS from a mutual fund?
Customization: In a mutual fund all the investors have a common portfolio, i.e., irrespective of whether an investor invests Rs. 5000 or Rs. 5 Crs, both have the same portfolio. However in a PMS, fund manager’s services are made available to investors on a one-on-one basis and a client can have a portfolio tailor-made based on his/her risk-profile.
Flexibility: Under PMS, the portfolio manager would buy the stocks only if they are in the buying range. Besides, he also has the flexibility to move in and out of cash based on the overall market view.
Personalized Service: Under PMS, the fund manager constructs the portfolio after understanding the investment objectives of the client and also interacts with him/her on a regular basis.
4. How can a client introduce the initial corpus?
Initial corpus can be brought into the Portfolio Management Service by way of Cash and/ or securities/ shares. The initial portfolio of securities/ shares will be re-aligned.
5. What should be the Minimum Size of Portfolio?
Alchemy Leaders, Alchemy High Growth & Alchemy Active: Minimum investment should be of Rs. 50 lacs (either cash or stocks or combination)
Alchemy Discovery: Minimum investment should be of Rs. 1 crore (either cash or stocks or combination)
Alchemy Long Short: Minimum investment should be of Rs. 1 Crores (cash)
6. Can I specify investments that I want or don’t want to hold?
Since Alchemy offers 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 portfolio. We can do initial customization, wherein based on client request we can specifically avoid certain stocks/sectors.
7. Does the Portfolio Management Service have any lock-in period?
There are different lock-in periods for following products.
Alchemy Discovery - 3 years
Alchemy Long-short - 3 months
8. What reports will a client receive from Alchemy?
In case of the products Marigold and Daffodil, send the portfolio statement to all the clients by e-mail. Portfolio statements for Orchid are sent out to clients on a quarterly basis. Physical contract notes will be sent to clients every 6 months.
9. What are the charges for the PMS services?
PMS Charges are product specific.
Alchemy Leaders: 2% of AUM + 15% of out-performance over Nifty
Alchemy Long Short: 1.5% of AUM per annum charged on a quarterly basis + Profit Sharing of 20% over hurdle of 2% per quarter
Alchemy High Growth: There are 2 options available:
• Fixed Fee Structure: 2.5% of AUM p.a. charged quarterly
• Profit Sharing Structure: 1.5% of AUM p.a. + 15% of outperformance over 10%*
(*hurdle-rate compounded over 2 Yrs. Profit share charged at the end of 2 Yrs)
Alchemy Discovery: 1% of the AUM per annum + 25% of outperformance over 12% p.a. compounded for 3 years (charged at the end of 3 years)
The above fees do not include charges towards brokerage, dematerialization of shares and bank charges if any.
10. What is the account opening process?
Registration: In order to enroll for the Alchemy PMS a client would need to execute the following documents:
• PMS Client Registration Form
• PMS Agreement
• Power of Attorney for operating the bank account
• Power of Attorney for operating the depository account
Account Activation: The client can make investments in the form of cash or transferring existing securities from his portfolio. At Alchemy, each client’s account is managed individually. Therefore a separate bank and depository account is maintained for all our clients. The documentation process takes approx. 7 working days*.
11. Does a client need to have a Permanent Account Number?
Having a Permanent Account Number (PAN) is mandatory for investment in the PMS.
12. 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 trade depending upon whether the relevant stock was held long term or short term. Presently 10% tax (plus surcharge and cess) is chargeable for Short Term Capital Gain and no tax is chargeable on Long Term Capital Gains. In addition the relevant STT charges will also apply. (Please refer to your tax consultant for any kind of tax advice)
* Conditions apply.
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How does this work?
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How does this work?
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Client executes a portfolio management services agreement with Alchemy to open three accounts in the client’s own name:
- Broking account (for trade execution)
- Bank account (for payment and receipt of monies)
- Demat account (for receiving and delivering stocks on purchases and sales settlement).
Alchemy will advise clients on the entities where these accounts have to be opened.
Client has the option either to fund his bank account with the initial corpus or transfer securities to the new demat account. Care has to be taken to ensure that the initial investment is made ONLY from client’s existing bank funds and/or investments.
Alchemy will provide a weekly report of client portfolio on a marked to market basis. Alchemy will provide a detailed listing of all transactions, bank / demat account reports on a monthly basis through this website.
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Risk Factors
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Risk Factors
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Information about the significant risks associated with investing in our PMS
a) Over the long term, equities have outperformed other asset classes, however returns can be volatile. Equity performance will generally be based on, amongst other things, the underlying strength of the cash flows, balance sheets and management of the company. Alchemy aims to reduce these risks through disciplined research and analysis of those companies in which the Fund invests.
b) Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the equity investments
c) The value of the Portfolio, may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or any other appropriate authority policies and other political and economic developments which may have an adverse bearing on individual securities, a specific sector or all sectors
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