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Fee disclosure Norms wef 1st October '24 - in PMS

Wed, 17 Jul 2024 19:07:02 +0530

PMS ( Portfolio Management Services) - Key changes in fee disclosures

Capital markets regulator Securities and Exchange Board of India (SEBI) has brought in some changes related to commission disclosures, in case of PMS products, which will be applicable from October 1, 2024.

These are some of the key changes :

A. While onboarding a client, a portfolio manager will ensure that the client has understood the fee structure and charges. The new client has to separately sign the annexure on fees and charges and add a note that they have understood the fee details in the following manner:

Handwritten
Typed using a keyboard or written electronically using fingers/pen in case the client is onboarded through digital mode.

As per new SEBI regulations, the portfolio managers has to provide a fee calculation tool to all clients that highlights various fee options with multi-year fee calculations. The fee calculation tool should incorporate the high-watermark principle wherever applicable. The link to access the said tool will be provided in advance to all new clients onboarded on or after October 1, 2024, by the PMS providers

Additional fee disclosures

In partial modification to the master circular, whenever performance fees are charged to the client, the annexure for fees and charges to the portfolio management service-client agreement will also contain the following additional fee disclosure:

One-year and multi-year fee illustrations that cover different scenarios i.e., increase in the portfolio value by a certain percentage, decrease in the portfolio value by a certain percentage and when the portfolio value remains unchanged.
To facilitate ease of understanding of the critical aspects of the portfolio manager-client relationship, the portfolio manager will additionally provide to its client a ‘most important terms and conditions’ document which should be duly acknowledged by the client.

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FAQ

Q. Where can I track the performance of all India PMS providers ?

Answer :

https://www.apmiindia.org/apmi/welcomeiaperformance.htm?action=PMSmenu

Q : What is high-watermark principle ?

Answer : A high-water mark is the minimum level that a fund manager needs to achieve to receive a performance bonus. The high-water mark clause protects investors by avoiding paying the performance fee for the same part of return when an investment fund or account recovers from the previous loss.

Q : Can you show an example of high-watermark principle in practical terms ?

Answer :

Let’s assume an investment fund charges a 2% management fee and a 20% performance fee annually, which are typical industry rates. An investor invested $100,000 into the fund, which generated a return of 10% in Year 1, -3% in Year 2, and 20% in Year 3.

In the first scenario, there is no high-water mark clause for the performance fee. For Year 1, the management fee is $2,000 (2% * $100,000), and the performance fee is also $2,000 [($100,000 * 10% * 20%]. The AUM at the end of Year 1 is $106,000 ($110,000 – $4,000), which gives the investor a net return of 6%.

For Year 2, since the fund experienced a loss, there is no performance fee, but a management fee of $2,120 (2% * $106,000) is still charged, which gives an ending value of the fund worth $100,700 [$106,000 * (1-3%) – $2120].

For Year 3, the value of the fund reaches $120,840 [$100,700 * (1+20%)] before the management fee. After paying a management fee of $2,417 and a performance fee of $4,028 [($120,840 – $100,700) * 20%], the investor’s net return for this year is 13.6% [($120,840 – $100,700 – $2,417 – $4,028) / $100,700].

In the second scenario, let’s assume that the high-water mark limits the performance fee. The management fees are not impacted by this clause, and the performance fees for the first two years remain the same as the first scenario.

The fund reaches a high-water market of $110,000 ($10,000 * 10%) at the end of Year 1, which limits the third-year performance fee to the return above this level, which is $10,840 ($120,840 – $110,000). For Year 3 the performance fee is $2,168 ($10,840 * 20%), and the investor’s net return is 15.4% [($120,840 – $2,417 – $2,168 – $100,700) / $100,700].

Comparing the two scenarios, the high-water mark prevents the investor from paying for the $9,300 return again in Year 3, which was achieved and charged in Year 1 but partially lost in Year 2. The investor, who is protected by a high-water mark, will be able to pay a lower amount of performance fee and earn a higher net return.

Article source : SEBI Regulatory announcement

Article Editorial : Abhinesh Kumar, Business Coach and Mentor, ARM Fintech Consultants (P) Ltd

E mail : admin@armfintech.com | Helpline : 90-1521-1521

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Sun, 14 Jul 2024 05:52:41 +0530

FAQ about ZOHO CRM and our Set Up Services/ Training Services

Q : How do I get Started with Zoho CRM ?

Zoho CRM is one of the application of Zoho One ! You need to subscribe for Zoho One and then start activating the applications you need like- ZOHO CRM for all your clients, Sales, task and deals management; ZOHO DESK for all your E mail management , ZOHO Meetings for all your Online meetings ; ZOHO Bookings for managing your training calendars etc. You can Start ZOHO One subscription with 30 days Trial version and can take our paid services to get it arranged according to your business need - approximate Rs 25000/- for one time set up

Q : What kind of Set Up Services do you provide ?

We provide a total of around six ( 6 ) sessions to provide you complete set up. In our first session we connect with you and explain all the available apps of ZOHO and decide upon the key applications you want to use. Then we start the Set up process in terms of - Modules creation, Work flow creations, E mail Templates creation , Whatsapp Template creation and Whatsapp Integration ( WATI).

Q : How do I get my team trainings ?

During our initial set up process you can involve your team for basic understanding of the ZOHO as a CRM. IN case you enquire more trainings then please let us know about the same, we will discuss the modalities.

Q : Is ZOHO meant for all type of Business? Do you provide set up and trainings for all type of Businesses ?

Yes, ZOHO is meant for all type of business. We provide Set up and training facilities for Mutual Funds and Financial Product distributors only

Q : Does it cover all my Due Diligence (DDQ) requirements as a Mutual Fund Distributor ?

Yes, our ZOHO One Set up covers up all your Due Diligence requirements from Front end to Back end

Q : Can I integrate my existing MF Software like - Finnsys, Investwell, redvision etc into ZOHO ?

Yes, you can integrate your existing Mutual Fund Software into ZOHO by way of API. We charge around Rs 1.5 Lakhs for one time set up and integration of such APIs. However you can easily work in ZOHO without integration also through manual import of datas from your existing MF Software.

Q : What is the approximate subscription charges for ZOHO One ?

Its around Rs 2500 plus taxes on monthly subscription and may be Rs 1800 pm if paid annually. Please check the pricing at : https://www.zoho.com/one/pricing/

Q : How do I know what's the right edition for me?

Enterprise edition is the best for any Mutual Fund Distributor

Q : Are you a ZOHO affiliated Franchise or Distributor ?

No. Nor me nor my company is associated with Zoho in any ways. I am a Mutual Fund Coach and DDQ expert. I just train people in terms of proper set up and provide my handholding in terms of using ZOHO CRM effectively. My service charges are independent and optional . Please take this short survey to check our service charges : https://www.armfintech.in/blogs/post/getting-started-with

Q : How can I leave ZOHO ?

You are not bound by any contracts or commitments. Zoho CRM is a pay-as-you-go service (monthly or yearly), so you can make changes to your plan whenever you need to, and upgrade or downgrade at will.

Q : How can I reach you ?

You can show your intent to get our full services related to ZOHO Set Up, Whatsapp integration and team trainings at : abhinesh.k@icloud.com or simply send a Whatsapp message “ Hi, I am interested in Zoho Set Up’ at : 83187 92030

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Do come, interact and learn all about your MFD business. Join us at 10 am at Hotel Vijay Continental, Kanpur for whole day power packed knowledge sessions

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Create attractive Website on WIX or Zoho Sites

Fri, 23 Jun 2023 22:16:06 +0530

Websites. We’ve all heard of them, visit them and consume their content, but what are they exactly? How do they come into being? The short answer is that they are documents that are being read by web browsers and displayed on your screen, but the long answer is much more complex than that. That’s what we’re here to help answer. Read this special blog by Amanda Weiner from WIX

Special Blog by Amanda Weiner - WIX

While there are many paths you can take to create a website, a popular choice time and again is to utilize a website builder. Whether you are a beginner or a design professional looking to make a website, website builders like WIX offer solutions for your needs. Our complete guide will walk you through the essential steps you need in order to build a website. This article will also help you understand all of the moving parts that go into a website, no matter which route you take.

How to make a website in 7 steps

Choose the website type
Pick a website builder
Create webpages
Design your site ( You can hire Finnsys for the design : @ Rs 30000/- one time)
Choose a domain name
Select web hosting
Promote your website ( You can use Finnsys Digital Marketing tool @Rs 1000/- per month)

Before you Start : Choose the website type

The creation process of your website begins at the conception phase, where you are simply thinking about what kind of website you want. This thought should be driven by your goals for your site and who your target audience is. Do you want to Educate, Motivate or make it a transaction enabled E Commerce website ? Perhaps you want to share financial calculators or MF Research ? Whatever your ultimate goal is, it should be reflected in your choice of website. Only from that point can you truly understand what platform is the best suited for your needs, the specifics of what your website should contain and how long it takes to build your website.

If you have not yet decided on what kind of website best suits you, we suggest taking the time to learn more about the different types of websites available and to peruse these website ideas.You can call us freely at our contact details to get a free counselling on making a MF website. We recommend that you jot down some items that stand out to you as you go through these lists and then return to this guide to get you through the rest of the creation process.

To give you an idea of a few options, here are some of the most popular types of websites and how you can go about creating them:

Mf Research tools are used to sell Mf Schemes online. You can achieve this through the API of advisorkhoj or morningstar etc
Blogs are sites where you can consistently share information on a specific topic. Learn how to start a blog.
Online Portfolios Login takes the customer to your database and presents various reports.

“Just as us humans, every website has its own needs. Try to define what those are and what goals you’d like to achieve in order to create a successful website that is truly original.”

- Adi Huri, Product Marketing Lead for the Wix Brand

What is WIX editor ?

Best for: anyone looking to create their own site. Can be a beginner or experienced.

The Wix Editor, as it sounds, is a platform that you can use to create and edit your own sites. It employs innovative drag and drop technology which enables you to easily add or change elements on your site and has a plethora of built-in design options. The true benefit of the Editor is that it provides a number of different routes to help you create a professional website and gives you the flexibility to adjust your site as you see fit.

Learn the ins and outs of building a website with the Wix Editor with this online course. You can hire us( Finnsys) for first time designing of your WIX website for a starting price of Rs 30000/-

a. Templates

Best for: templates are truly for anyone and everyone looking to get online.

Website templates are a great choice for anyone looking to create their own site. Wix’s templates are made by professional designers, with over 900 options for your picking. You can be sure that whatever niche your website falls into, there will be a template waiting for you. We suggest exploring these website templates by category to find the one that best suits your needs or design preferences. You can also delve into these Wix websites for inspiration and to give you an idea of what a template looks like in action.

No matter which template you choose, the Wix Editor provides you with the freedom to add and remove site elements with ease so that you can adapt the look and feel of your site. Whenever you choose a template with Wix, you will automatically be taken into the Wix Editor which allows you to customize as you see fit.

b. Create a website from scratch

Best for: those who feel comfortable with design and don’t fear the white canvas.

For those looking to build a website from scratch, the Wix Editor is a great option. You can select a totally blank canvas, or a template that has minimal layout built-in without any additional design, leaving the rest up to you. You can even turn your website into an app. This gives you complete freedom to imagine your site in any way that you desire and add any elements that you wish.

Once you pick a blank template, you will be taken directly into the Wix Editor to drag and drop the components that you want. This enables you to play around with layout, colors, buttons, functionalities and much more.

c, Hire a professional like Finnsys

Best for: those looking for an extra professional look, without much time of their own.

A great route to take if you are looking for an outstanding website is to hire a professional. You can hire a web professional at the start of your journey to help you with website development, or you can bring someone in after you’ve started the building process to help with more specific tasks.

If you’re looking for someone to assist with the entirety of your website, we suggest starting with a web designer. Web designers create websites for a living and can ensure that your site has the look, feel and functionality you want. While hiring a designer will cost you more money than creating a site alone, they can help guarantee that your site gets a professional touch.

There are also other aspects that go into a great website which a freelancer can help you with. These might include designing a specific element on your site, assisting with site content creation and helping with your SEO.

Finnsys is a registered WIX partner available for creating your website on WIX. Note that Finnsys is Wix verified , ensuring our quality.

Call us free for more discussion about your website : See some of our templates which u can create on WIX

Get Started with your own Mobile App - Android & IOS

Fri, 23 Jun 2023 22:02:15 +0530

Creating App is high on the agenda for the fintech industry. Everyone’s thinking about how their business can make use of fintech: digital banking, personal finance, investment apps, blockchain etc... It’s a quickly growing space and companies that don’t embrace technology are going to get left behind. Are you ready to embrace fintech?

What does API stand for?

Creating a mobile app for MF distribution with a focus on portfolio reporting, fund selection, and ease of investments through secured APIs is a great initiative. To enhance customer engagement, here are some smart tricks you can consider while developing your app:

1. User-Friendly Interface: Design a clean and intuitive user interface that is easy to navigate. Make sure the app is visually appealing and provides a seamless user experience.

2. Personalized Notifications: Implement personalized alerts and notifications to keep users informed about important updates regarding their investments, such as NAV changes, dividend announcements, and portfolio rebalancing suggestions.

3. Portfolio Valuation and Performance Tracking: Offer comprehensive portfolio valuation tools and performance tracking features. Provide visual representations of investment growth, asset allocation, and historical returns to help users understand their portfolio's performance.

4. Goal-Based Investing: Incorporate goal-based investment features that allow users to set and track their financial goals. Provide recommendations on suitable funds based on their objectives and risk appetite.

5. Fund Research and Selection: Offer detailed information on mutual funds, including their historical performance, expense ratios, fund manager details, and investment strategies. Provide intuitive search and filtering options to help users find the right funds.

6. Investment Calculators: Include interactive calculators that help users estimate the potential returns, risk, and tax implications of their investments. This can assist them in making informed decisions.

7. Investment Reminders and SIP Tracking: Enable users to set investment reminders and track their systematic investment plans (SIPs) to ensure timely contributions and disciplined investing.

8. News and Market Updates: Integrate relevant financial news, market updates, and expert insights to keep users informed about the latest trends and developments in the mutual fund industry.

9. Secure and Seamless Transactions: Implement robust security measures and seamless integration with payment gateways to ensure safe and hassle-free investment transactions. Emphasize the security protocols in place to instill trust in users.

10. Customer Support and Feedback: Provide easy access to customer support channels within the app. Encourage users to provide feedback, suggestions, or report issues, and promptly address their queries or concerns.

Remember to comply with regulations and avoid presenting your app as a Registered Investment Advisor (RIA) or Direct Plan Advisor. Emphasize the value-added services your app provides, such as portfolio reviews, rebalancing suggestions, and portfolio valuations, rather than focusing on self-help processes that may involve fees or brokerage.

Some important 3rd Party APIs to be used in your MF App

Most of the MF distribution application need following APIs to make it useful and customer friendly :

NSE NMFII API : For enabling Online transaction in your application
BSE Star MF API : For enabling Online transaction in your application
MFU Utility API : For enabling Online transaction in your application
CAMS E KYC API : For creating Online KYC for new On boardings
Advisor Khoj/ Morning Star etc : For presenting scheme wide data and charts
PaySprint/ Bill Avenue etc : For enabling PAN card creation, Online payments and other Bill Payments
Policy Anchor/ Policy Bazaar etc : For presenting Insurance Quotes and comparison along with Online buying
Finnsys 360 API : For presenting complete customer data through RTA feed

How to get these APIs ?

We realised that around 500 features make up about 80% of all software . Our team of experts manage the entire process so you can be sure your software works exactly as you envision. Optimise internal workflows, simplify payment systems, and much more. Predictive fraud prevention Prevent damage to both your company and customers. State of the art algorithms detect and automatically block unwanted activity.

Comprehensive logs : When launching any fintech applications you need to store detailed user information. We make it easy to track user actions, device data, and geolocation.

Powerful data analytics : Our AI can dive into your user data to identify trends you can use to generate greater revenue. Our data visualisation tools make it easy to see exactly what users are doing.

Easy integration : All the services you expect are just a few clicks away. Our no-code solution lets you easily and securely work with other payment and service providers.

Guaranteed price upfront : It can seem a long, expensive road from your idea to completed software. Not with us. Your price never goes up – if it’s done quicker, you pay less

Can we get Counselling for our App ?

We provide our senior resource for Rs 25000/- one time , for a complete counselling session on the app building. Such session consist of 4 classes and it will help you in creating a sketch of your project. This session does not put you into any obligation to get the mobile application build through us.

Drop a message in our contact section, we will get back to you for more details. Follow us on your favourite Social Media

Build a Great App by using external API

Sun, 07 May 2023 01:40:44 +0530

APIs are mechanisms that enable two software components to communicate with each other using a set of definitions and protocols. For example, the weather bureau’s software system contains daily weather data. The weather app on your phone “talks” to this system via APIs and shows you daily weather updates on your phone.

What does API stand for?

API stands for Application Programming Interface. In the context of APIs, the word Application refers to any software with a distinct function. Interface can be thought of as a contract of service between two applications. This contract defines how the two communicate with each other using requests and responses. Their API documentation contains information on how developers are to structure those requests and responses.

Some important 3rd Party APIs for a Financial Services App

Most of the MF distribution application need following APIs to make it useful and customer friendly :

NSE NMFII API : For enabling Online transaction in your application
BSE Star MF API : For enabling Online transaction in your application
MFU Utility API : For enabling Online transaction in your application
CAMS E KYC API : For creating Online KYC for new On boardings
Advisor Khoj/ Morning Star etc : For presenting scheme wide data and charts
PaySprint/ Bill Avenue etc : For enabling PAN card creation, Online payments and other Bill Payments
Policy Anchor/ Policy Bazaar etc : For presenting Insurance Quotes and comparison along with Online buying
Finnsys 360 API : For presenting complete customer data through RTA feed

How to get these APIs ?

All these APIs are available at free or reasonable annual charges, from the respective entities. We provide full support in getting these APIs in case the app development is done by us. APIs are classified both according to their architecture and scope of use. We have already explored the main types of API architectures so let’s take a look at the scope of use.

Private APIs

These are internal to an enterprise and only used for connecting systems and data within the business.

Public APIs

These are open to the public and may be used by anyone. There may or not be some authorization and cost associated with these types of APIs.

Partner APIs

These are only accessible by authorized external developers to aid business-to-business partnerships.

Composite APIs

These combine two or more different APIs to address complex system requirements or behaviours.

Can we get Counselling for our App ?

Drop a message in our contact section, we will get back to you for more details. Follow us on your favourite Social Media