A Mutual Fund or Portfolio Management Service (PMS) is a LONG ONLY strategy. Which means you can buy first and sell later. However there is no cash flow coming out except for dividend payouts.
A demat account has unqiue features where it can participate in other products from stock exchange that can help us in generating additional cash flow per month.
Demat account owner is a individual who is free of any restrictions
A stock broker is allowed to provide Margin against your holdings.
We implement a combination of derivatives structure to bring reasonable returns with limited volatility. We generate cash Irrespective of markets direction.
Without compromising upon the gains from Mutual fund. Consider this additional cash flow akin to (rental income) per month. While the underlying Mutual Fund is your long term asset.
This cash flow can be your payout or, used for accumulating more equity/MF for long term portfolio growth.
➢You can withdraw capital in single payout click, you have access to your MTM and net worth details Live in mobile app.
➢Before every execution we ask for approval from you as email,call recording .
> This portfolio invests 80% of capital given in Liquid Debt Fund. This liquid debt fund generates 7% p.a.
> Remaining 20% of capital will be kept as a cash for MTM purpose.
> Liquid Debt fund chosen here is Nippon India Liquid Fund (formerly known as Reliance Liquid Fund)
> Think of buying a flat (MF) where you get 7% Rental Income (Returns). We get Loan Against Property (Margin against MF) at 0 cost, take that amount for 6 % (our Alpha).
Netting 7% + 6% = 13% (rental + Alpha)
Assume you fund your demat account with Rs 10 Lacs. Breakdown will be as follows.
> Nippon India Liquid Fund will be purchased worth Rs 8 Lacs. Against this asset, our stock broker will provide us Rs 7 Lac as a margin.
> Remaining Rs 2 Lakh cash will be kept for Mark-To-Mark (MTM) purpose.
> Here, Liquid fund generate approx. 7% p.a. And our derivatives strategy holds a potential generate additional 6-8% per annum with an average , pe rmonth return between 0.5% to 1% – upon Rs 10 lakhs . This is your Alpha with us.
> Max drawdown is 3% to 4% in a month upon Rs 10 Lac.
> Probability of this drawdown occurring is, once in every 18 months. Which means, 17 attempts we win but 1 attempt that we loose would set you back by 4 months worth income.
> This is a fair risk exposure w.r.t the reward you envision.