o Demography Assessment
o Age & Qualification
o Health profile / Hereditary risks
o Insurance policies for self and dependents
o Dependent details – associated capital expenditure [weddings /
education / etc.] and likely period of capital expenditure
o Existing debts [if any]
o Average monthly commitments & duration
o Existing work details
o How secured is your work / business [against competition]?
o Is the income sufficient to meet routine life style commitments?
o Detailed understanding of existing business
o Fluctuations in revenues
o Level of competition
o Scope of growth
o Capital inflow requirement for next 2 to 3 years
o Likelihood of savings to be generated
o Existing Investment details
o Debts, equities, FD, bullion, annual insurance commitments
o Existing Asset details
o Residence, office, rental yielding properties, others
o Size of Portfolio account
o Plus, planned additional commitment quarter on quarter
o Type of Portfolio account
o Discretionary – PMS manager will take decisions on your behalf
o Non – Discretionary – PMS manager will offer suggestions but you
o Allocation amongst asset classes
o Debt & money market, Equity & equity related, others
o Investment horizon. Can be different for different entities / asset
o Allocations in equity instruments
o Market capitalization – Low, Medium & High
o Risk aspects – Low, Medium, High
o Exposure limits – Entity, Industry, Business house
o Defining allocations on basis of your risk appetite
o Industry risks – Competition, cyclical & regulatory
o Performance risks – Sales growth, profit growth, RONW, OPM
o Management risks – Transparency, holding, promoter pledging's
o Leverage risks - Debt – Equity, Interest coverage
o Valuations – PE multiple, beta, past consistency in performances
o Initial Tasks
o Creation of customized universe of stocks and debt instruments for
you. Investments will never be done outside your universe and
within maximum or minimum parameters laid.
o Follow – up Tasks
o on continuous basis – monitor market and stocks within universe.
Take decisions to buy, hold or sell.
o quarterly – review your universe and add or remove entities
accordingly. Furnish your performance and outlook report.