Equities provide some of the best capital appreciation opportunities. In Equity MAS we follow the trend.
Here are few frequently asked questions about the services:
1. What products do we trade?
We trade in NSE 500 companies. With time, we will also look to trade into top BSE companies which have potential. Our motive is not investment. We are only here to trade price appreciation. Every stock is just a piece of paper with price. We buy what is going up and our interest with company lies only until that point. During such time, if the company is giving us dividends or bonus then that is added benefit. We are here for trend following.
2. How much capital is required for availing services?
Capital of 10 Lakh plus is required. Risk is mitigated through diversification and we have to take every trade that comes on system. For that capital is required. Under capitalization is not right in any trading.
3. How can one avail the services?
Contact me on 70180-13195 via call and we can discuss how to proceed. But do read the complete introduction given here to resolve common doubt.
4. Do you have to give me your hard-earned money?
No. We open your account with desired broker wherein we can punch orders through dealer terminals. We cannot operate individual accounts from different brokers. In no case do we have access to your money. With your authorization, we take trades in your account that we deem best in the current market scenario.
6. What is the risk on Capital?
Our portfolio stoploss is 20% i.e. 2,00,000/-.
On a capital of Rs. 10,00,000, we take a per trade risk of Rs. 2000/- i.e. 0.2% of the capital. Quantity is decided based on the Stoploss based on price charts. Per trade it requires capital of Rs. 30,000 - Rs. 50,000/-. For us to lose 20% of capital, it will take 100 wrong trades to hit stoploss. Probability of it is very less as money is diversified. We work on Good Till Date orders for Buy and Trailing Stoploss.
7. What can we expect as ROI at the end of year?
We cannot predict. All we know is Entry Price, Stoploss and Trailing Stoploss for our positions. Target is never known as we keep trade open till it is good on charts. It is purely trend following. Our profit locking to breakeven for any entry starts when stock has moved twice the stoploss price i.e. Risk:Reward of 1:2. After that we just trail the Stoploss. So probabilities are in our favour. Only time can tell what type of returns it can give. Our stock selection is as such that stocks either start to move on our entry or they hit stoploss. So that time is not wasted in non performing equities.
8. How can one enlist for Managed Account Services?
We have 2 and 20 rule for Equities MAS.
1. 2% of AUM is charged as yearly service and management fees.
2. Performance based fees - 20% of profits, if yearly return on capital is more than 15%.
So, please register for our services, pay up 2% AUM fees, open the account with desired broker and we are good to start.
10. What if we make a loss?
There will be losses. Our edge is in diversification and probabilities. If portfolio Stoploss of 20% is hit, we will stop.
11. After reading all the FAQ questions, Who should not opt-in for my service?
Profit/Loss is part of market. There can be series of losses and series of profits. If you are excited by profits and panicked by losses then you should not opt for services. You have to let the system work without emotions.
This capital should not be means of your bread and butter as it is for capital appreciation through equities.
12. Is there any minimum lock-in period of advisory service?
Yes. 1 Year.
This is not a get rich quick scheme. It takes time for results to fructify.
13. Anything else you should know?
Yes. Services I provide are totally dependent on the broker. I do the utmost due diligence when selecting a broker. There are always chances or period when the services of a broker are good or bad. While we do try to sort the issue with the broker but in case the problems faced (if faced) are unsolvable then clients may have to shift account with a new broker. While my try is always to work in a stable environment, some problems if they arise, sometimes are beyond our control. In that case, the client has to be willing to shift funds to another account with a good broker.
For any more queries, contact me.
To be continued...