FAQs FORMING PARTS OF TERMS AND CONDITIONS
1) How do I go about investing in your PMS?
» You would have to open a trading and Demat account with our designated broker – India Infoline Securities Pvt. Ltd, namely www.5paisa.com in the Delhi CP Main Branch. If you already have a 5paisa trading account, than that account need to be transferred to Delhi CP Main Branch.
» You would give us the authority to buy/sell securities on your behalf. Depending upon your risk profile we will develop a customized portfolio for you.
» You will receive the Contract Notes for the transactions on a day-to-day basis in your mail.
» We will settle our accounts between us on Security to Security transaction basis. For e.g. If there are 10 scrips in your portfolio and if one scrip is sold during the course of the PMS, than on that sold scrip, we will settle our accounts between us. We would not wait for expiry of the entire tenure of PMS for the settlement of Accounts. For e.g.: Suppose if on 1st June 2006, the client has invested Rs.10,000/- in KRBL LTD and if that scrip is sold on 19th Jan 2007, than we will settle this transaction profit and loss in a week’s time without waiting for the expiry of the entire tenure of the PMS.
2) What kind of returns can I expect?
Hira Stocks Portfolio Management offers various schemes to suit individual investment objectives. As per regulations governing Portfolio Management Services in India, neither capital nor returns can be guaranteed. We shall endeavor to outperform the benchmark indices like Nifty but there can be no guarantee or certainty of the same. We believe, over long term, equities' performance will track corporate performance. We expect India's GDP to grow at 7-8% p.a. in real terms; or 12-13% p.a. in nominal terms. Therefore historical trends indicate that well managed portfolios in Indian equities can yield up to 20-25% p.a. returns. However the future returns may be very different for market risk as well as risk with any portfolio manager's judgment.
3) How regularly can I get updates on my portfolio?
The Account Statement as well as the Statement of Holding of your equity portfolio can be viewed online in your 5 paisa account.
4) Risk Factors?
Equity Investments are subject to market risks and there is no assurance or guarantee that the objective of the portfolio management service will be achieved. As with any investment in securities, the Net Asset Value of the managed portfolios can go up or down depending on the factors and forces affecting capital markets. Past performance of the portfolios does not indicate the future performance.
5) What is the time horizon and is there a lock-in period?
The client cannot withdraw his money from the PMS Scheme as our schemes are in a lock-in period and the ideal time horizon for an equity portfolio is at least 18-24 months. Lock-in period of 18-24 months would mean for just one scrip transaction only. Suppose if on 1st June 2006, the client has invested Rs.10,000/- in KRBL LTD and if that scrip is sold on 19th Jan 2007, than the amount invested in this Scrip KRBL LTD, along with profit/loss can be withdrawn by Client. The Client is at liberty to invest further the same amount in PMS.
6) What if I terminate from the PMS before one year?
If the services of PMS are terminated before the lock-in period than Hira Stocks would not bear the loss in the Portfolio but if there is a profit in the portfolio than Hira Stocks reserves the rights to share the profits as per the terms agreed upon.
