Frequently Asked Questions

01. Who can invest?
  • You could opt for portfolio management service with Rs 25 Lakhs or more which is a SEBI stipulated minimum. Those who have already invested in equities or other instruments worth Rs 25 Lakhs or more can also avail our service by transferring those assets into the portfolio management system.
  • Resident Indian Individuals, Non-Resident Indian Individuals, Person of Indian Origin’s Indian Institutions and Corporate, Partnership firms, Sole-proprietorship firms, Hindu Undivided Family’s, Trust’s, Qualified Foreign individuals, foreign institutions and Foreign Portfolio Investors can avail our service.
  • The investments of NRI’s would be managed through the Portfolio Investment Scheme with or without repatriation, as stipulated by Reserve Bank of India guidelines and also in accordance with SEBI regulations from time to time.
02. What is the name to be written on the corpus cheque?

Investors need to issue the cheque for investments in the name of “Moat Financial Services Pvt Ltd – PMS” This is a designated bank account for managing portfolio investments.

03. Can we accept stocks from third party account to client’s portfolio?

No. There is ownership and taxation that needs to be taken care of. We cannot accept it.

04. Can we accept fund from client’s bank account having third party included?

Yes, we can accept the fund provided the first holder of the PMS account must be one of the joint holders of the bank account from which payment is made.

05. PMS Fees

Fixed Management fee of 2% per annum, charged quarterly on the average NAV, plus Performance fee of 20% on annualized returns over and above the hurdle rate of 10%.

The fixed fees would be charged on a quarterly basis on the average of Total Value of your portfolio which is computed as average of starting value and closing value of your portfolio for that particular quarter. The performance fee would be charged only on the day, your portfolio investments with us reach one-year time period and for the subsequent years the performance of the portfolio would be charged only on a High-Watermark principle. No performance fee would be charged if your portfolio value does not exceed the mentioned hurdle rate. Fees would also be charged at the time of substantial withdrawal or termination. Fees would also be charged on any day at the discretion of the portfolio manager. However, in this case the fees would be charged only on a pro-rata basis. Other statutory and incidental expenses would be charged extra.

06. How is PMS different from a Mutual Fund?
PMS Mutual Fund
Customization Portfolio can be tailored suit specific investor’s needs. Portfolio fixed to address fund’s stated investment objectives.
Ownership Securities are bought in the Investor’s name. Securities are bought in the portfolio in Fund’s name and Fund units are issued to investors.
Min Investment SEBI stipulated minimum of Rs. 25 lakhs As prescribed by the fund.
Services Personalised services to meet customer requirements. Fund’s stated services to cater the clients.
07. Process to open a PMS Account

We would provide you all the necessary documents for account opening that includes the portfolio management agreement, documents for opening up a Custodial and DP account to keep your share assets, Necessary Power of Attorney or Letter of Authority that enables us to manage investments on your behalf and other documents if needed or stipulated by the authorities or regulators from time to time.

Kindly affix your photographs on the document, sign on the indicated areas, attach self-attested copies of relevant supporting documents like your Pan Card, Address proof, Bank Account proof and pass it back to us.

For Non – resident Indians, we need to have additional set of documents for accounts other than the above mentioned like the dedicated Bank account opening application for the PIS account and the supporting Savings account and that’s where your cash assets would reside, Trading account opening form to manage NRI investments separately in accordance with the guidelines of the regulator, necessary FERMA-FEMA forms as it is overseas investment. Kindly attach self-attested copies of your PAN Card, copies of all pages of passport, PIO card, work permit or Ikkama, copy of overseas residence address proof along with your overseas business card. Kindly affix your photographs on the document, sign on the indicated areas, attach self-attested copies of relevant supporting documents and sent it back to us.

In case of any clarifications please free to keep in touch with us.

08. Our Partners

When you enter into a Portfolio Management Service agreement with us, you would have a separate identity in accordance with the SEBI portfolio management rules and regulations. All your assets would be clearly demarcated in your own name with a reputed custodial service that ensures superior safety and transparency. All dividends and other proceeds would be directly credited to your personal or dedicated bank account. This premium operation ensures absolute transparency and safety with regards to your assets.

Bankers – Kotak Mahindra Bank

Custodian – ORBIS Financial Corporation Ltd.

Broking partner – Celebrus, CSBL

Auditors – Balan & Co.

09. PMS Reporting

You may not want to get into the day-to-day hassles of running and managing your investments. However, you would always be keen to know the performance of your investments. Our report not only gives you a simple and clear picture of your investments but also investment performance measured against appropriate benchmarks.

You would also receive informative research reports and newsletters generated by our research desk that explains in detail the rationale behind every investment decision.

10. Dividends

Dividends are very much underestimated in equity investments. However, we are a huge fan of dividends since it is absolutely tax free in India. Moreover, the dividend yield of the company that we have invested on your behalf may sometimes act as a support for its stocks prices during untoward negative market events. Moreover, dividends give your investments, an income cash flow while your capital appreciation in stocks acts as your long-term balance sheet. And hence we prefer businesses or stocks that dole out dividends to its investors. In that way dividend forms an integral part of your portfolio, its return and performance.

The resident Indians would receive your dividends in your personal Bank account notified with us during the time of your account opening and you may wish to use that income cash flow at your peril. However, for Non –resident accounts the dividends would be received in the dedicated Bank account opened on your behalf. You may use it or plough it back to your investments.

11. No Lock-in period

There is no lock-in period for your portfolio management investments with us. Though we request everyone to have a long-term investment perspective to enjoy the benefits of long term compounding and dividends generated from your investments in businesses, you are free to withdraw your funds any time you wish. It’s your money and we provide you ample liquidity at the earliest.

You also do have the privilege to withdraw profits as you please. However, at the time of partial withdrawal of profits, keep in mind that the total value of the portfolio should not go below the minimum stipulated amount set by the regulator. You also do have the facility to top-up your investments with us and that can be of any denominations.

12. Tax Aspects

We would automatically compile a comprehensive year-end summary for your portfolio that include a full record of your transaction and holdings, together with a list of all income and capital gains received during the year audited by a reputed Chartered Accountant Firm.

13. Confidentiality

(a) E-mail message may contain confidential, proprietary or legally privileged information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system.

(b) E-mail transmissions cannot be guaranteed to be secured or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this message, which arise as a result of e-mail transmission.

(c) Any views contained in this message may be those of the individual sender and no binding nature of this message shall be implied or assumed unless the sender does so expressly with the due authority of MOAT Financial Services Pvt Ltd.

(d) Before opening attachments, if any, to this message please scan them for viruses.

14. Disclaimer

All opinions contained herein constitute our personal views. The contents of this website are based on information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon such. Many forward-looking statements have been included in this section. We shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in the website. This message is provided for informational purposes and should not be construed as a solicitation or offer to buy or sell any securities or related financial instruments and is intended only for the PMS clients of Moat Financial Services Pvt Ltd. Many figures shown is intended for illustration purposes only. Moat Financial Services Pvt Ltd or Directors of Moat Financial Services Pvt Ltd may have interests/positions, financial or otherwise in the company securities mentioned in this report. Stock market Investing may result in losses as well as profits. Stock Investing is not suitable for many members of the public and only risk capital should be applied. Kindly read the Portfolio Management risk disclosure documents prior to investing. You should carefully consider your financial situation and consult your financial advisors as to the suitability to your situation prior to making any investment or entering into any transactions.

Any information about the company(ies) and/sector(s), if any, covered in the report are intended only to the dedicated recipients – Portfolio Management Clients only.

Except for the PMS clients, this research report does not constitute an offer, invitation or inducement for the general public to invest in securities or other investments mentioned in the report and Moat is not soliciting any action based upon it. Recipients who are not clients of Moat PMS should seek advice of their independent financial advisor prior to taking any investment decision based on this report or for any necessary explanation of its contents

This report is not for public distribution and has been furnished to the reader solely for the general information on the stocks in the portfolio or portfolio management service and should not be reproduced or redistributed to any other person or entity in any form.

The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur. Moat does not provide tax advice to its clients, and all clients are strongly advised to consult with their tax advisers regarding any investment.

Our research professionals are paid solely based on the profitability of Moat and their performance, integrity, sincerity and experience.

Moat generally prohibits its employees, analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the Portfolio Manager and its analysts cover. Additionally, Moat generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover.

The material is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Opinions expressed are our current opinions as of the date appearing on this material only. We endeavour to update on a reasonable basis the information discussed in this material, but regulatory, compliance, or other reasons may prevent us from doing so. We and our directors, and employees, including persons involved in the preparation or issuance of this material, may from time to time have “long” or “short” positions in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein.

Our employees may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additionally, other important information regarding our relationships with the company or companies that are the subject of this material is provided herein.

Reports based on technical and derivative analysis centre on studying charts company’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may or may not match with a report on a company’s fundamental analysis. In addition, Moat has different business segments / Divisions with independent research separated by Chinese walls catering to different set of customers/ clients having various objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.

Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt Moat or any of its employees from, any and all responsibility/liability arising from such misuse and agrees not to hold Moat or any of its affiliates or employees responsible for any such misuse and further agrees to hold Moat or any of its employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is based on publicly available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent Moat’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the document. While we would endeavour to update the information herein on reasonable basis, Moat and/or its employees are under no obligation to update the information. Also, there may be regulatory, compliance, or other reasons that may prevent Moat and/or its employees from doing so. Moat or any of its employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Moat or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.

Moat and its employees have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

Moat and/or its employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this report.

There is no material disciplinary action that been taken by any regulatory authority impacting equity research analysis activities.

15. Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of Moat research receive compensation based upon various factors, including quality of research, investor client feedback, competitive factors and firm revenues.

Read full disclosure here