Pooling of funds: In PMS, there is no pooling of investor funds. A separate Demat account needs to be created for every independent PMS investor. Whereas in the case of AIF, pooling of funds is a necessity
Minimum Investment Amount: A minimum investment of Rs. 50 lakh is required for PMS. In the case of AIFs, an investor must invest at least Rs. 1 crore
Minimum Corpus: PMS requires no corpus amount. For AIFs, corpus needs to be a minimum of Rs. 20 crore. For angel funds, the requirement is lower, at Rs. 10 crore
Lock-in-period: PMS investors have the choice to withdraw funds at any point in time. Close-ended units in AIFs have a lock-in period to which they must adhere
Categories: PMS are of two types; discretionary and non-discretionary based on the authority of the fund manager. On the other hand, AIFs are grouped into three – Category I, II, and III, depending on where the funds are invested
Tenure: In PMS, there is no defined tenure for the securities. Instead, the agreement term between a fund manager and an investor is binding. In AIF, the tenure of the securities for Category I and II is a minimum of three years. This tenure can be further extended by
another two years. The extension is subject to the approval of two-thirds of the investors by value of investment in the AIF. In case of no majority to extend, the AIF gets liquidated within one year following expiration. The expiration date is considered one year from the start date or a year from the extended time. There is no minimum tenure for Category III funds
Segregation of Funds: Every client’s funds have to be segregated into separate Demat accounts in PMS. No segregation is required in AIFs
Number of investors: There is no cap specified on the number of investors for PMS. A fund manager can have any number of clients. The maximum number of investors to any AIF scheme cannot exceed 1,000
Types of funds: PMS is categorized as Discretionary and Non-Discretionary Funds based on the rights of the fund manager. AIFs are classified into Categories I, II, and III based on the end-use of funds pooled
Manager Contribution: While PMS has no specific requirements on Manager contribution, AIFs require managers to have continued interest. In the case of Category I and II of AIFs, managers should hold at least 2.5% of the corpus, or, Rs. 5 crores, whichever is lower. For Category III AIFs, a manager should hold at least 5% of the corpus, or, Rs. 10 crores, whichever is lower.
Who is the investment manager?user2020-12-09T06:19:56+05:30
The big plus of quant funds is that you don’t have to worry about the manager quitting, making is takes or going off the rails on the fund mandate. But elimination of human bias doesn’t automatically guarantee that the fund will be a top performer. Quant funds use models that are tested based on historical data and the past is not always a good indicator of the future. Benchmark beating returns or higher returns than active funds are not a given.
What are the advantages of investing in Quant Fund?user2020-12-09T06:19:07+05:30
The most important advantage of using a pre-programmed model to select stocks is that it eliminates the human bias and subjectivity that often trip human investors. Using a model also allows consistency in strategy across market conditions. Often, in bearish or volatile markets, active fund managers are forced or tempted to cut positions in certain stocks or shift their investment styles.
What are Quant strategies?user2020-12-09T06:17:47+05:30
Quantitative investment strategies have evolved from back-office black boxes to mainstream investment tools. They are designed to utilize the best minds in the business and the fastest computers to both exploit inefficiencies and use leverage to make market bets. They can be very successful if the models have included all the right inputs and are nimble enough to predict abnormal market events. On the flip side, while quant funds are rigorously back-tested until they work, their weakness is that they rely on historical data for their success. While quant-style investing has its place in the market, it’s important to be aware of its shortcomings and risks.
Automation is taking over many highly paid jobs around the world and money management may be no exception. One illustration of this phenomenon is quant funds. A quant fund is one in which the investment decision or the stock selection is done according to predetermined rules based on a statistical or mathematical model. Unlike active funds where a fund manager chooses his investments and the timing of entry and exit, quant funds rely on an automated program to make these decisions. But a quant fund manager may not be entirely hands off like an index fund manager. He often designs and monitors the model that throws up the portfolio choices.
Can I book my profits partially any time?user2020-12-09T06:16:09+05:30
Moonbeam advisory is an AMFI registered public market products distributors. Moonbeam’s ARN (AMFI registration number) allows us to market public market products to our clientele for any public market product manufacturer based out of India.
How can I add further investments to my account?user2020-12-09T06:14:47+05:30
At the time of starting the investment 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.
Do I have to keep a track on investments and take part in investment decision making process?user2020-12-09T06:07:55+05:30
Our partners 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.
How can I monitor the performance of my portfolio?user2020-12-09T06:06:28+05:30
As a part of our service offering and in an endeavor to provide complete transparency of the dealings in the clients trading account, the performance 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.
Is premature withdrawal of funds/securities by an investor allowed?user2020-12-09T05:50:57+05:30
The funds or securities can be withdrawn or taken back by the client before the maturity of the contract. However, the terms of the premature withdrawal would be as per the agreement between the client and the portfolio manager. Any exit load charges are dependent on the contract entered with any public market product manufacturer.
Can I invest in a combination of cash and stocks?user2020-12-09T05:50:06+05:30
Apart from cash, the client can also hand over an existing portfolio of stocks, bonds or mutual funds to a Portfolio Manager and the Portfolio Manager may at his own sole discretion sell the said existing securities in favor of fresh investments to match the strategy portfolio.
What is the Tax treatment?user2020-12-09T05:47:59+05:30
The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his/ her tax liabilities.
Moonbeam curates quant strategies to invest in. It’s a services provider (Sell side and Buy Side transaction advisory, M&A, Corporate Finance) and a distributor of Equity, Arbitrage and PMS products. We assist ultra rich to start investing in regulated quant-based investment products. We offer our expertise across three lines of businesses i.e. Asset Management, Proprietary Trading, and Execution Services.