What are the differences between the various services we are offering?
Will all the services, such as the common package and other MAS services like Insurance, Equity MF, Investools, Stock letters etc. be included in the new service?
- Moneylife weekly online magazine: Not included
- Insurance: Not included.
- Equity MF: No, we prefer recommending stocks.
- Investools: Not included.
- Stockletters: These will remain separate, servicing those who don’t want to come to AP or PMS.
In fact, each of these four services — Assisted Portfolio, Moneylife Advice, Stockletters and PMS — serve four different kinds of investors.
Do I get access to the stock letters as well, as part of the AP service?
No. You will have to subscribe separately. But why would you? You should choose between AP and SL.
Will the current weekly stockletters be discontinued?
No, they will continue for those who would not like to opt for AP or PMS.
If I opt for AP , then there won't be any use in subscribing to stock letters
No. It can be discontinued. In fact, we would expect you not to subscribe to stockletters, to avoid confusion in strategies.
Will the stock investment contain recommendations only from the stock letters or would it be different?
Some stocks will be common. However, it is not relevant whether the stocks will be same or not. While it may seem that knowing the names of companies to invest in, is everything, we have observed that:
- Many subscribers don't invest according to the process we have laid down. They buy 4 stockletters and pick and choose, selectively
- They buy in different weights, not equal weight as advised
- They buy at different times and often at a higher price.
- Many don't sell when a sell recommendation is given.
The end result is that EVERY subscriber has a DIFFERENT RETURN EVEN WHEN THEY HAVE ARE SUPPOSED TO HAVE THE SAME RECOMMENDED STOCKS.
Will the investment in stocks be in a similar direction as in PMS service? Would the returns in both cases be comparable?
Some stocks may be common. Again, common names mean nothing. It is timing and exposure that determines returns. Returns could also be similar. Fees and costs of AP will be lower.
What kind of interactions is allowed?
If you wish you can ask questions about model portfolio construction such as sector exposure, high or low weights of individual stocks, high or low cash positions, market trend etc. You can also clarify any doubts in the process relating to buying/selling processes
What kind of interactions is not allowed?
We will not have interactions about stock ideas you may have, our opinion on third-party information, non-financial matters or financial products that you have not bought and have an interest in.
Will AP cover fixed income?
We will prefer recommending on Stocks. Recommendations on fixed income can be made on an infrequent basis for free.
Can you give us some estimate of growth expected from implementing this plan?
We think we will do better than the best mutual funds. You can see the performance of our PMS here https://advisor.moneylife.in/pms
Will it be a short term, long term investment strategy or will there be any intra-day trading? Will you recommend derivatives?
It will be investments in good quality stocks depending on the price trends. No intraday or derivatives trading.
Can I be involved in the stock selection process so that I can have stocks selected according to certain preferences?
This will not be possible. We will recommend our selections and you have the choice to execute or not to execute them. If you don’t like certain stocks, we will not be able to provide alternate choices. As explained here, we use a formula to select stocks, a formula to time our entry and a formula to time our exit. From time to time, our stock selections can be concentrated in certain sectors, smaller or larger cap sizes. If no stocks fit our criteria, we may remain in cash for a long time. Selection and timing is the value of this service.
Will my portfolio be customised?
This will not be possible. We will recommend our selections and you have the choice to execute or not to execute them. If you don’t like certain stocks, we will not be able to provide alternate choices. As explained here, we use a formula to select stocks, a formula to time our entry and a formula to time our exit. From time to time, our stock selections can be concentrated in certain sectors, smaller or larger cap sizes. If no stocks fit our criteria, we may remain in cash for a long time. Selection and timing is the value of this service.
Does the stock advise vary depending on the value of investment? Lets say if my portfolio is 25Lacs, will the basket of equities suggested be different from, if the value was 50 lacs?
NO
Does the stock advise vary depending on the value of investment? Lets say if my portfolio is 25Lacs, will the basket of equities suggested be different from, if the value was 50 lacs?
NO