Frequently Asked Questions

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by investment managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in the scheme information document

Anybody with an investible surplus of as little as a few hundred rupees can invest in mutual funds. The investors buy units of a fund that best suits their investment objectives and future needs. A Mutual Fund invests the pool of money collected from the investors in a range of securities comprising equities, debt, money market instruments etc. after charging for the AMC fees. The income earned and the capital appreciation realised by the scheme, are shared by the investors in same proportion as the number of units owned by them

Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds mentioned above. All the mutual funds must get registered with SEBI.

For a retail investor who does not have the time and expertise to analyze and invest in stocks and bonds, mutual funds offer a viable investment alternative.

 

This is because:

1. Mutual Funds provide the benefit of cheap access to expensive stocks

2. Mutual funds diversify the risk of the investor by investing in a basket of assets

3. A team of professional fund managers manages them with in-depth research inputs from     investment analysts.

4. Being institutions with good bargaining power in markets, mutual funds have access to crucial corporate information which individual investors cannot access.

There are several benefits from investing in a Mutual Fund.

 

A. Small investments: Mutual funds help you to reap the benefit of returns by a portfolio spread across a wide spectrum of companies with small investments. Such a spread would not have been possible without their assistance. Professional Fund Management: Professionals having considerable expertise, experience and resources manage the pool of money collected by a mutual fund. They analyze markets and the economy to select good investment opportunities.

 

B. Spreading Risk: An investor with a limited amount of fund might be able to invest in only one or two stocks / bonds, thus increasing his or her risk. However, a mutual fund will spread its risk by investing in a number of sound stocks or bonds, across sectors, so the risk is diversified, along with taking advantage of the position it holds. Also in cases of liquidity crisis where stocks are sold at a distress, mutual funds have the advantage of the redemption option at the NAVs (Net Asset Values).

 

C. Transparency and easy access to information: Mutual Funds regularly provide investors with information on the value of their investments. Mutual Funds also provide complete portfolio disclosure of the investments made by various schemes and also the proportion invested in each asset type and clearly layout their investment strategy to the investor.

 

D. Liquidity: Closed ended funds have their units listed at the stock exchange, thus they can be bought and sold at their market value. Over and above this the units can be directly redeemed to the Mutual Fund as and when they announce the repurchase.Open ended funds, the units are available for subscriptions redemption on all business days on an ongoing basis.

 

E. Choice: The large amount of Mutual Funds offer the investor a wide variety to choose from. An investor can pick up a MF scheme depending upon his risk / return profile.

 

F. Regulations: All the mutual funds are registered with SEBI and they function within the provisions of strict regulation designed to protect the interests of the investor

An investor can reduce his total risk by holding a portfolio of assets instead of only one asset. This is because by holding all your money in just one asset, the entire fortunes of your portfolio depend on this one asset. By creating a portfolio of a variety of assets, this risk is substantially reduced.

No. Mutual fund investments are not totally risk free. In fact, investing in mutual funds contains the same risk as investing in the markets, the only difference being that due to professional management of funds the controllable risks are substantially reduced.

A very important risk involved in mutual fund investments is the market risk. When the market is in doldrums, most of the equity funds will also experience a downturn. However, the company specific risks are largely eliminated due to professional fund management.

On the basis of Objective

 

A. Equity Funds/ Growth Funds

Funds that invest in equity shares are called equity funds. They carry the principal objective of capital appreciation of the investment over the medium to long-term. The returns in such funds are volatile since they are directly linked to the stock markets. They are best suited for investors who are seeking capital appreciation. There are different types of equity funds such as Diversified funds, Sector specific funds and Index based funds.

 

B. Diversified funds

These funds invest in companies spread across sectors. These funds are generally meant for risk-taking investors who are not bullish about any particular sector.

 

C. Sector funds

These funds invest primarily in equity shares of companies in a particular business sector or industry. These funds are targeted at investors who are extremely bullish about a particular sector.

 

D. Index funds

These funds-invest in the same pattern as popular market indices like CNX Nifty Index and BSE Index. The value of the index fund varies in proportion to the benchmark index.

 

E. Tax Saving Funds

These funds offer tax benefits to investors under the Income Tax Act.Opportunities provided under this scheme are in the form of tax rebates u/s 88, saving in Capital Gains u/s 54EA and 54EB and deductions u/s 80C. They are best suited for investors seeking tax concessions.

 

F. Debt / Income Funds

These Funds invest predominantly in high-rated fixed-income-bearing instruments like bonds, debentures, government securities, commercial paper and other money market instruments. They are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. They provide regular income and safety to the investor.

 

G. Liquid Funds / Money Market Funds

These funds invest in highly liquid money market instruments. The period of investment could be as short as a day. They provide easy liquidity. They have emerged as an alternative for savings and short-term fixed deposit accounts with comparatively higher returns. These funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods.

 

H. Gilt Funds

These funds invest in Central and State Government securities. Since they are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for the medium to long-term investors who are averse to risk.

 

I. Balanced Funds

These funds invest both in equity shares and fixed-income-bearing instruments(debt) in prescribed proportion. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. They are ideal for medium- to long-term investors willing to take moderate risks.

In an open-ended mutual fund there are no limits on the total size of the corpus. Investors are permitted to enter and exit the open-ended mutual fund at any point of time at a price that is linked to the net asset value (NAV). In case of closed-ended funds, the total size of the corpus is limited by the size of the initial offer.

NAV is the net asset value of the fund. In simpler words it reflects whatthe unit held by an investor is worth at current market prices.

Investors need to be clear that mutual funds are essentially medium to long term investments. Hence, short-term abnormal profits will not be sustainable in the long run. But in the medium to long run the mutual funds tend to outperform most other avenues of investments at the same time avoiding the risk of direct investment accompanied with professional fund management.

Mutual Funds give returns in two ways - Capital Appreciation or Dividend Distribution.

 

A. Capital Appreciation : An increase in the value of the units of the fund is known as capital appreciation. As the value of individual securities in the fund increases, the fund`s unit price increases. An investor can book a profit by selling the units at prices higher than the price at which he bought the units.

 

B. Dividend Distribution: The profit earned by the fund is distributed among unit holders in the form of dividends. Dividend distribution again is of two types. It can either be re-invested in the fund or can be on paid to the investor.

The NAVs are published in financial newspapers and also available on the AMFI website on a daily basis.

The charge collected by a Mutual Fund from an investor for selling the units or investing in it.

When a charge is collected at the time of entering into the scheme it is called an Entry load. The entry load percentage is added to the NAV at the time of allotment of units. However SEBI has now prohibited charging entry load on mutual fund schemes. An Exit load is a charge that is collected at the time of redeeming or for transfer between schemes (switch). The exit load percentage is deducted from the NAV at the time of redemption or transfer between schemes.

Some schemes do not charge any load and are called "No Load Schemes".

An exit load is a levy that an investor pays at the point of exit. This is levied to dissuade investors from exiting the fund. Assume that the current NAV of the fund is Rs.12.00 and that the exit load is Rs.0.50. Now if you sell 800 units then you stand to receive 800X11.5= Rs. 9200.

Yes. One can redeem part units also.

Though Close-Ended Mutual Funds are listed on the exchange they have a limited number of shares and trade at substantial premiums or more often at discounts to the actual NAV of the scheme. Also, they lack the transparency, as one does not know the constitution and value of the underlying portfolio on a daily basis.

In ETFs, the numbers of units issued are not limited and can be created/ redeemed throughout the day. ETFs rely on market makers and arbitrageurs to maintain liquidity so as to keep the price in line with the actual NAV.

Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. They enable investors to gain broad exposure to entire stock markets in different Countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.

An ETF is a basket of stocks that reflects the composition of an Index, like Nifty or BSE Sensex. The ETFs trading value is based on the net asset value of the underlying stocks that it represents. Think of it as a Mutual Fund that you can buy and sell in real-time at a price that change throughout the day.

ETFs are modern day Mutual funds which have several advantages over traditional funds. The key advantages of investing in ETFs are the following:

Low cost: Both traditional funds and ETFs charge fund management charges and operating expenses to the Scheme. However, due to the very nature of ETFs, both the expenses are streamlined and much lower as compared to open ended mutual funds charges. ETFs protect the interest of the long term investor from the inflows and outflows of short-term investors.

Portfolio Diversification: ETFs provide exposure to the market through a basket of securities which results in portfolio diversification and better risk management. They provide wide variety of sector, style, industry and country specific funds thereby giving a wide choice of diversification to the investor.

Convenience of Investing: ETFs provides you the convenience of trading during market hours and makes it very convenient to buy and sell at any point of time between 9 am and 3.30 pm (current trading hours). Unlike traditional mutual funds, one need not wait till the closing of market hours to know the price at which the trade is executed. Thus, Investors invests in real-time prices as opposed to end of day prices. If you have brokerage account, all you have to do is either go online and place order or call your broker and place an order. It is as simple as buying any share/stock of a Company.. The procedure is same if you want to redeem your investments partially or fully.

Arbitrage Opportunities: Since ETFs are easy to buy and sell, it also helps an investor to manage his portfolio actively and reduce risk. For example if the investor’s exposure is high on banking stocks and he wants to have a hedge, he can technically short Banking sector ETF or other similar sector ETFs to actively create a portfolio using underlying ETFs.

Transparency: ETFs are as transparent as clear glass. The indicative NAVs are available real time to an investor and so is the basket of securities that consists the portfolio. This will help investor to understand what he is investing into and at what price, thereby making the investment decision an informed one.

Market risk: Like any other market related investment product, ETFs also carry the market risk. Though you cannot mitigate the risk you can always reduce it by investing across markets and sectors.

Trading cost: There is a trading cost to be incurred every time you buy or sell ETFs. The rates will depend on the overall volume that you do across securities with your brokerage firm.

BID – ASK price spread: There is a spread between the bid price (highest price a buyer is willing to pay for a share) and ask price (lowest price a seller is willing to accept for a unit). The amount of spread varies from one ETF to another. The same is neutralized by higher liquidity.

Tracking Error: Index ETFs tracks the underlying index. The returns generated by ETFs can marginally be more or less than the index it tracks. This is due to the fact that the ETFs will maintain some cash in the portfolio unlike the index.

1. Asset Allocation: Asset allocation managing could be difficult for individual investors given the costs and assets required to achieve proper levels of diversification. ETFs provide investors with exposure to broad segments of the equity markets. They cover a range of style and size spectrums, enabling investors to build customized investment portfolios consistent with their financial needs, risk tolerance, and investment horizon. Both institutional and individual investors use ETFs to conveniently, efficiently, and cost effectively allocate their assets.

2. Cash Equitisation: Investors typically seek exposure to equity markets, but often need time to make investment decisions. ETFs provide”Parking Place" for cash that is designated for equity investment. Because ETFs are liquid, investors can participate in the market while deciding where to invest the funds for the longer-term, thus avoiding potential opportunity costs. Historically, investors have relied heavily on derivatives to achieve temporary exposure. However, derivatives are not always a practical solution. The large denomination of most derivative contracts can preclude investors, both Institutional and Individual, from using them to gain market exposure. In this case and in those where derivative use may be restricted, ETFs are a practical alternative.

3.Hedging Risks: ETFs are an excellent hedging vehicle because they can be borrowed and sold short. The smaller denominations in which ETFs trade relative to most derivative contracts provides a more accurate risk exposure match, particularly for small investment portfolios.

4.Arbitrage (Cash Vs Futures) and Covered Option Strategies: ETFs can be used to arbitrage between Cash and Futures Market, as it is very easy to trade. ETFs can also be used for cover Option strategies on the Index.

An ETF is bought and sold much like a share during the trading hours in the stock exchange. Based on the purchases of new units and redemption of existing units, there is continuous creation of new units thus resulting in change of number of outstanding units Since ETFs can issue and redeem units on an ongoing basis, it keeps the market price of ETFs in line with the NAV of the Scheme.

Besides the fund management team, one of the important entities is the Authorized Participant (AP). They are normally referred to as market makers. An agreement is signed between the fund house and several independent APs.

The process flow of creation of shares as they move from the fund company through the AP, to the exchanges and ultimately, to the investors.

When new ETF units are created, the APs either buy or borrow the appropriate basket of shares and exchange them with the Fund for those newly created ETF units. The individual securities and cash basket turned in by the AP must be equal to the NAV published holdings from the previous close. After an ETF creation unit is issued to the AP by the custodial bank, the AP can hold the unit in a company account, trade it to another AP, or break it up into individual ETF units. Individual ETF units trade on the exchanges.

The reverse process occurs when redemption takes place. The AP buys ETF shares in the open market to form the correct quantity for creation of a unit. It then transfers the shares to the fund company who in turn receives securities and a cash portion to the exact NAV of the creation unit.

Equity is a part of a company, also known as stock or share. When you buy shares of a company, you basically own a part of that company. 

A commodity market facilitates trading in various commodities. It may be a spot or a derivatives market. In spot market, commodities are bought and sold for immediate delivery, whereas in derivatives market, various financial instruments based on commodities are traded. These financial instruments such as ''futures'' are traded in exchanges.

A commodity futures contract is an agreement between two parties to buy or sell the commodity at a future date at today`s future price. Futures contracts differ from forward contracts in the sense that they are standardized and exchange traded. In other words, the parties to the contracts do not decide the terms of futures contracts; but they merely accept terms standardized by the Exchange.

Exchange Traded Funds (ETFs) are open ended mutual fund schemes, which are traded on stock exchanges like a share and seek investment returns that correspond to the performance of a particular index like Nifty 50 or Nifty Free Float Midcap 100 Index.

It combines the benefit of mutual fund scheme with convenience of trading like a share.

Exchange Traded Funds (ETFs) are open ended mutual fund schemes, which are traded on stock exchanges like a share and seek investment returns that correspond to the performance of a particular index like Nifty 50 Index.

Exchange Traded Funds (ETFs) are open ended mutual fund schemes, which are traded on stock exchanges like a share and seek investment returns that correspond to the performance of a particular index like Nifty 50, Nifty Midcap 100 or NASDAQ-100 Index. It combines the benefit of a mutual fund scheme with convenience of trading like a share.

The Motilal Oswal 5 Year G-Sec ETF seeks investment return that closely corresponds (before fees and expenses) to total returns of the security as represented by the ‘Nifty 5 Yr. Benchmark G-Sec Index’, subject to tracking error.

Motilal Oswal 5 Year G-sec is an Exchange Traded Fund (ETF), and is passively managed.

Motilal Oswal MOSt Shares NASDAQ-100 ETF, (MOSt Shares NASDAQ 100) is an open ended Index Exchange Traded Fund that seeks investment return that corresponds (before fees and expenses) generally to the performance of the NASDAQ-100 Index, subject to tracking error. The Scheme will invest in the securities, which are constituents of NASDAQ–100 Index in the same proportion as in the Index.

Motilal Oswal MOSt Shares M50 ETF (MOSt Shares M50) is an open ended fundamentally weighted ETF that seeks investment return that corresponds (before fees and expenses) to the performance of Nifty 50, subject to tracking error. It combines the benefit of mutual fund scheme with convenience of trading like a share.

Motilal Oswal MOSt Shares Midcap 100 Exchange Traded Fund (MOSt Shares Midcap 100) is an open ended index Exchange Traded Fund that seeks investment return that corresponds (before fees and expenses) to the performance of Nifty Free Float Midcap 100 Index, subject to tracking error.

The Scheme will invest in the securities which are constituents of Nifty Free Float Midcap  100 Index in the same proportion as in the Index.

Nifty Free Float Midcap 100 Index is formulated by India Index Services & Products Limited (IISL), a joint venture between NSE and CRISIL Ltd. It comprises 100 Free Float Midcap stocks with their weightage in index being determined based on their free float market capitalisation.

The primary objective of the Nifty Free Float Midcap 100 Index is to capture the movement and be a benchmark of the Midcap segment of the market.

Funds will be invested in underlying security of the Nifty 5yr Benchmark G-sec Index. The Nifty 5yr Benchmark G-sec Index is a single bond index tracking the most liquid 5 year benchmark security issued by the Government of India. As on 31st October 2020, the underlying constituent was 5.22% GS 2025 (IN0020200112). For detailed methodology - click here; for historical Index values - click here.

The NASDAQ-100 is an index of 100 of the largest (by market capitalization) non-financial companies listed on the NASDAQ. It is a modified capitalization-weighted index. The companies’ weights in the index are based on their market capitalizations, with certain rules capping the influence of the largest components. It does not contain financial companies, and also includes companies incorporated outside the United States.

The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. It is the largest electronic screen-based equity securities trading market in the United States and second largest by market capitalization in the world. The NASDAQ has more trading volume than any other electronic stock exchange in the world. When the NASDAQ stock exchange began trading on February 8, 1971, it was the world’s first electronic stock market (Source: NASDAQ Website).

The ETF is labelled as ‘Moderately Low Risk’ according to ‘Riskometer’. The ETF invests in government securities (G-Sec) which are backed by Government of India, hence virtually carry ‘No default’ risk.

MOSt Shares Midcap 100 is listed on the capital market segment of NSE and will trade like any other share. Investors can buy &sell the units of the Scheme at the prevailing price on NSE. The price on NSE though a function of demand & supply is expected to be around the NAV ofthe scheme. The indicative intra-day real time NAV of MOSt Shares Midcap 100will be displayed on AMC’s website (www.mostshares.com). End of the day NAV of MOSt Shares Midcap 100 will also bepublished daily at the end of day before 9 p.m.on AMFI website i.e. www.amfiindia.com

MOSt Shares M50 is listed on the capital market segment of NSE and will trade like any other share. Investors can buy & sell the units of the Scheme at the prevailing price on NSE,which though a function of demand & supply, will be around the NAV of underlying MOSt Shares M50 portfolio. The indicative intra day real time NAV of MOSt Shares M50 will be displayed on AMC’s website.

The units of the Scheme would be in round lots of 1 unit on the exchange andInvestors can buy/sell units of the Scheme in creation unit size i.e. 50,000units and in multiples thereof.

The units of the Scheme can be bought/sold in round lot of 1 unit on the exchange, and Investors can buy/sell units of the Schemein creation unit size i.e. 250,000 units and in multiples thereof.

Bond prices are sensitive to changes in interest rate. Typically active fund managers tend to alter the duration of the fund based on their interest rate outlook, whereas in case of Constant Maturity structure the overall duration at fund level is maintained in the pre-set range.

MOSt Shares NASDAQ 100 is listed on the capital market segment of NSE and BSE and will trade like any share. Investors can buy & sell the units of the Scheme at the prevailing price on NSE and BSE, which though a function of demand & supply, will be around the NAV of underlying MOSt Shares NASDAQ 100 portfolio. The indicative intra-day real time NAV of MOSt Shares NASDAQ 100 will be displayed on AMC’s website (www.mostshares.com). End of the day NAV of MOSt Shares NASDAQ 100 will also be published daily at the end of day before 9 p.m. on AMFI website i.e. www.amfiindia.com

Typically the debt fund and especially G-Sec fund has lower risk in term of their price volatility over medium to long term. However yet there are few risks which need to be noted as below.

 

Credit Risk: The fund has practically NIL credit risk since it invests in Government Securities which is backed by Government of India.

 

Price Risk: The price of debt instruments including G-Sec is sensitive to changes in market interest rate, an increase in interest rate may cause bond prices to fall. The ETF is expected to have lower risk as compared to long duration G-Sec whereas higher risk as compared to short duration G-Sec.

 

Reinvestment Risk: Coupons received will be reinvested in the underlying index basis prevailing yield.

 

Liquidity Risk: The underlying index, includes security which is the most liquid G-Sec in the given duration bucket. Hence fund has low liquidity risk, given historical trend. This above list is indicative and not exhaustive, please read the offer document before investing or contact your financial advisor.

Like any other debt mutual fund schemes, there are no assured returns.

Investing in the ETF is easy. You may reach out to your financial advisor or log-in to www.motilaloswalmf.com. You can also call us at +91 8108 622 222.

During NFO: Rs 500/- and in multiples of Re 1/- thereafter

 

On-going basis:

 

On Exchange: Investors can purchase/redeem units of ETF on Stocks Exchanges like equity share; the units can be bought/sold in round lots of 1unit and in multiples thereafter. We have appointed market makers to provide ongoing liquidity to buyers/sellers on exchange.

 

Directly with AMC: In addition units of ETF can be purchased/redeemed directly with the Mutual Fund for the creation unit size of 20,000 units (approx. amount of basket is INR 950,000/-1 )

Total Expense Ratio for the ETF is 0.22% (i.e. 22 basis points)

There is NIL entry/exit load

There are no restriction either on purchase/withdrawals. The ETF has NO lock-in period.

The coupon received on the underlying security will be reinvested in the underlying index constituent.

The coupon received on the underlying security will be reinvested in the underlying index constituent.

Any resident individual (including NRIs) and non-individual can invest, please refer to the offer document and consult your financial advisor before investing2. As it is an ETF, transaction will be settled compulsorily in dematerialized form and investor is required to have a Demat and trading account.

We have appointed a ‘Market Maker’ in order provide sufficient liquidity to buyers and sellers on the Stock Exchanges. The market maker also has an additional responsibility to maintain spread between buy and sell price as low as possible.

The units of Motilal Oswal 5 Year G- Sec ETF will be settled as per the normal settlement cycle (T+2), like any other equity share.

If the investment is held for more than 3 years it qualifies for Long Term Capital Gains Tax @ 20%, along with option to avail indexation benefit. Any investment horizon lower than 3 year, would attract the Short Term Capital Gain Tax and taxed as per the applicable tax bracket.

The daily portfolio holding is disclosed at www.mostshares.com under Creation Unit. This helps investors know in which security the fund is investing. In addition, the NAV is calculated for all business days and is published on www.mostshares.com, www.motilaloswalmf.com and www.amfiindia.com before 11.00 p.m. on every business day.

Units of the ETF will be settled compulsorily in dematerialized form. The investor must have Demat account in order to invest in this ETF. During NFO, the investor must disclose the DP’s name, DP ID Number and Demat account number. All applications without relevant details of investor’s depository account are liable to be rejected.

No. As this is an ETF, STP/SIP & SWP are not allowed.

Portfolio Management Service is a tailor made professional service offered to cater the investments objective of different investor classes. The Investment solutions provided by PMS cater to a niche segment of clients. The clients can be Individuals or Institutions entities with high net worth. In simple words, a portfolio management service provides professional management of your investments to create wealth.

There are many benefits of availing Portfolio Management Services. Some of them are:
1.Professional Management : PMS provides professional management of portfolios with the objective of  delivering consistent long-term performance while controlling risk.

2.Constant Portfolio Tracking : We understand the dynamics of equity as an asset class, so we track your investments continuously to maximize the returns.

3.Risk Control : Well defined investment philosophy & strategy acts as a guiding principle in defining the investment universe. We have very robust portfolio management software that enables the entire construction, monitoring and the risk management processes.

4.Convenience : Our Portfolio Management Service relieves you from all the administrative hassles of your investments. We provide periodic reports on the performance and other aspects of your investments.

5.Transparency : You will get account statements and performance reports on a monthly basis. That’s not all; web access will enable you to track all information relating to your investment on daily basis.A password protected web login will enable you to access details of your investment on click of a button. The following portfolio reports are accessible online:
     5.1 Performance Statements
     5.2  Portfolio Holding Reports
     5.3Transactions Statements
     5.4 Capital Gain/Loss Statements
Along with it we also send half yearly reports and yearly Audited reports for convenient Tax Filing.

6.Dedicated Relationship Manager : Your Relationship manager will help you carefully understand your financial goals and advise you the right product mix. The relationship managers ensure that you receive periodic updates and account performance reports.

7.Personalized Approach : In PMS, you gain direct personalized access to the professional money managers who actively manage your portfolio. This interaction may come in various different ways including in-person meetings, conference calls, written commentary, etc with the fund management team.

We provide each client an audited tax statement of his portfolio annually. This can be used for calculating your tax liability and hence forth filing returns. However, we advice all our clients to consult their tax consultant before filing of their tax returns.

As a part of our service offering and in an endeavor to provide complete transparency of the dealings in the clients PMS account, the following reports are emailed to the clients to their registered email id/ mailed to the correspondence address, which will enable the clients to track their portfolios. The reports are sent on a monthly basis before the 10thof the next month.

 

1. Account Performance Statement

2.Holding Statement

3. Transaction Statement

4.Capital Movement Statement

5.Corporate Action Statement

6.Debit Note

7.Client Information

8.Taxable Gain/Loss statement

9.Clients are provided with a login id and password which will enable 24*7access to the details of the              investments on click of a button.

10.Audited reports certified by a CA will be sent to all clients annually after March-year end audit is completed.  

Motilal Oswal Asset Management Company Ltd provides discretionary Portfolio Management Services wherein the portfolio manager manages your portfolio without having to bother you with the day to day decisions. The portfolio manager takes all the investment decisions on your behalf.

 

However, we do a comprehensive reporting to maintain complete transparency in managing your portfolio. You will receive regular updates and a detailed report on your portfolio, allowing you to track its activity and performance.

We offer discretionary as well as non-discretionary portfolio management services. In our discretionary portfolio management service, the discretion to invest primarily lies with the portfolio manager. However at the time of giving us the portfolio you can give us list of securities,sectors, etc. which you do not/cannot invest in your portfolio due to reasons like conflict of interests, religious beliefs etc. and we will take care of your need.

In our PMS, we understand that you have given us your hard earned money and therefore we ensure that we answer every query. You can anytime request for an appointment/call and we will arrange a meeting/call with the fund management/Investment advisory team for discussion about portfolio spread and returns or any other query you may have regarding your portfolio.

Yes, you can withdraw your profit anytime you want, provided your portfolio‘s value does not fall below the prescribed limit of Rs. 25 Lacs, as per SEBI regulations.

You can give minimum Rs.50,000 as a Top Up (additional investment) in any of your strategy accounts.

Your PMS account will activate only after you deposit a minimum of Rs. 50 lacs in the account (combination of cash and stocks). To put in money, you can use one of the following ways:

 

1.Cheques:

                will be in the name of Motilal Oswal Asset Management Company Ltd.–PMS for all strategies. The strategy names will not be required to be mentioned on the cheques

 

2.Bank Transfer:

                If you have banking facilities you can transfer funds in Indian Rupees to your PMS account by online   transfer (RTGS/NEFT) or wire transfer.

You can use your current securities / shares to make investment in PMS Account, but these will have to be liquidated and the sale amount should be minimum Rs. 25,00, 000.

The Portfolio Management Services is open for all Indian nationals, resident or otherwise.NRIs will have to open a PIS Account as required under RBI guideline sin order to invest in the PMS scheme.

Yes, you can open a PMS account with a combination of cash and stocks. The initial portfolio of securities/ shares will be re-aligned as per the model portfolio

You can open a PMS account with us, if you are:

 

   1. An Individual

   2. A Hindu Undivided Families

   3. An Association of Persons

   4. A Limited Companies

   5. An NRI, overseas company, firm, society or an overseas trust (subject to RBI approval)

You can open a PMS account by emailing or calling us at our exclusive PMS desk. Once we receive your request one of our executives will get in touch with you shortly. You can call us on: 1800-200-6626 or email us at: pmsquery@motilaloswal.com.

 

You can visit our Website: www.motilaloswal.com/Asset-Management

1. Amongst India’s one of the leading PMS Service Providers, with Assets under Management of approx Rs. 2700 Crores as on 31st December 2014.

 

2. Value Strategy is the single biggest discretionary PMS strategy in the country withal of over Rs. 1225 crores as on 31st December 2014clearly showing client’s trust in our product’s performance &services.

 

3. Our Flagship “Value Strategy” has consistently outperformed the benchmark across market cycles over a 11 year period.

 

4. Motilal Oswal PMS has one of the largest active customer base of 4500+ on PMS Platforms on 31st December 2014 clearing showing strong trust developed with customers.

 

5. 1crore invested in Value PMS in March 2003 is worth Rs. 17.86 crores as on 31stDecember 2014 v/s. just 8.19 Crores if it would have been invested in CNX Nifty Index.

 

6. Motilal Oswal Portfolio Management Services has active clients in 138 different cities right from Agra to Vijayawada; a testimony of strong acceptance of our PMS across the length & breadth of the country.

 

Data as on 31st December 2014

Investments in Securities are subject to market and other risks and there is no assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services (PMS) will be achieved. Investors in the PMS Product are not being offered any guaranteed/assured returns. Past performance of the portfolio manager does not indicate the future performance for any of the strategies.

‘IDCW’ is abbreviation of ‘Income Distribution cum Capital Withdrawal’. 

As per the SEBI Circular no. SEBI/HO/IMD/DF3/CIR/P/2020/194 dated October 05, 2020, whenever distributable surplus is distributed under Dividend Plan, the AMCs are required to clearly segregate and disclose (i) income distribution (appreciation in NAV) and (ii) capital distribution (Equalisation Reserve) in the Consolidated Account Statement (CAS) provided to the investors.

SEBI has also stipulated that all the existing and proposed Schemes of Mutual Funds shall name / rename the Dividend option(s) in the following manner:

Option / Plan (existing)	New nomenclature
Dividend Payout	Payout of Income Distribution cum capital withdrawal option
Dividend Re-investment	Reinvestment of Income Distribution cum capital withdrawal option
Dividend Transfer Plan	Transfer of Income Distribution cum capital withdrawal plan

 

What is the purpose of the above regulatory directive?

The regulatory intent of the regulatory directive is to clearly communicate to the investors that, under Dividend Option of a Mutual Fund Scheme, certain portion of the capital (Equalization Reserve) can be distributed as dividend. Accordingly, SEBI circular requires Mutual Funds to rename Dividend option(s) as per the above table.