PMS is usually offered as an investment solution to high net worth investors. With greater flexibility and higher customisation, PMS aims to generate alpha over the relevant index. While mutual funds pool assets from several investors, under PMS each account is managed separately and can be customized to suit a client’s investment mandate. The current SEBI defined minimum portfolio is Rs50 lakhs per client.
‘Discretionary Portfolio Manager’ manages funds of each client at his own discretion but in accordance with the needs of the client but
‘Non-Discretionary Portfolio Manager’ manages the funds of each client in accordance with the directions of the client.
‘Advisory Portfolio Manager’ advises the client on investments as agreed upon on the objective and scope in the client agreement.
‘Catch-up’ provision allows the portfolio manager, once the hurdle return is reached, to receive all distributions until he has received performance fee on the total annualized return. We at FCI follow a No catch-up policy, where the performance fee is applicable only on the returns generated in excess of the hurdle rate and not on the total returns.
‘High Water Mark’ is the highest value that NAV has ever reached. If the Investor is losing money, then the manager has to get it above its high-water mark before receiving a performance fee.
‘Hurdle Rate’ also called the minimum acceptable rate of return, is the lowest rate of return that the portfolio must earn before any performance fees is paid to the portfolio manager.
‘TWRR’ is a measure of the compound rate of growth in a portfolio after eliminating the distorting effects on growth rates created by inflows and outflows of money. The time-weighted return breaks up the return on an investment portfolio into separate intervals based on whether money was added or withdrawn from the portfolio.
TWRR=[(1+HP1)×(1+HP2)×⋯×(1+HPn)]−1
where:
TWRR= Time-weighted rate of return
n= Number of sub-periods
HP = End Value – Initial Value+Cash Flow
Initial Value+Cash Flow
HPn= Return for sub-period n
‘XIRR’, stands for Extended Internal Rate of Return, is a method used to calculate returns on investments where there are multiple transactions happening at different times. Compared to TWRR, XIRR gives more weightage to money. So those transactions that are larger in value, their performance will matter more than those transactions that are smaller in value.
Please refer to our Investor Charter
Kindly reach out to us at CS@fractalcapital.in or call us at +91-22-6264 0870
Yes. NRIs have to open a Portfolio Investment Scheme (PIS) Account as required under the RBI guidelines. However, each NRI can have only one such account.
Yes. However, the portfolio shall be reconstructed in line with the strategy chosen with Fractal Capital Investments LLP.
For details on various fee options and other charges please refer to the disclosure document and the client agreement. There is also an exit load if the account is closed within a specified time. Disclosuredocument.pdf and Clientagreement.pdf
The regulation requires that a separate demat account be opened for Portfolio Management Services (PMS). Portfolio Manager takes Power of Attorney (PoA) on this account so that they can operate account on investor’s behalf. A separate bank account is not required.
Fractal Capital Investments will provide each client with a unique login. The same can be used to access the portfolio and associated reports. Click here
For redemption you can send an email with redemption details from the client’s registered email id with FCI. Once we receive the instructions, we will process the redemption within 2 working days and remit the proceeds to your bank account registered with us. The regulatory requirement that post redemption, the portfolio value should be at least Rs 50 lakhs, post the redemption which is line with SEBI requirement.
To add funds (into the same account you transferred funds at account opening), you can mail us the cheque / proof of transfer / bank statement at cs@fractalcapital.in, and we shall confirm the receipt of funds by end of the day.
Email us at CS@fractalcapital.in and someone will assist you with the formalities.