CWM - PMS
An Capital Protected open ended scheme investing in maximum 25 stocks investing in large cap, mid cap and small cap companies
MANAGING WEALTH,
ONE STEP AT A TIME.
About the Fund
Focuses on up to 10 best ideas with high conviction while remaining diversified
Nurtues companies over their business cycle without being affected by short term market volality
Pure bottom up, best - ideas approach with high active allocation relative to the benchmark
Active high conviction investing strategy
Risk management embedded in the investment process
Concentrated focus on sustainable businesses
01. Features
Short-term Investments backed by
sophisticated hedging strategies
Quant-based strategies
Investments in Arbor are made taking into account market data and other quantitative aspects.
Market Neutral
Markets can move up or down but our strategies are designed for profitability, irrespective of direction. We Focus on companies that has the capability to sail through their business cycles without being affected by short term market volatility.
Income Generating
Generate periodic income thanks to the short-term and adaptive nature of the strategies, Equity as an asset class holds potential to beat fd returns and generate short term wealth.
Target Goals
Short term goals such as house rent, maintannece & wealth creation or any other long term growth that needs wealth creation plan.
02. How it works
Sophisticated investors do this all the time. Now it's your turn
You don't always have to invest cash on regular basis, in fact, most HNIs don't. CWM will first collect your investments and forward to stock exchange. For every asset that you put up, you receive margin after a 'haircut'. For example, if you Invest funds worth 10 lakhs, the exchange might give you a margin of 8 lakhs for Investment, the difference of two lakhs is kept by the exchange to protect itself from market downsides. This is referred to as a 'haircut'. We use the margin gained from your investment to execute very conservative strategies. These strategies consistently generate returns between 1.5* to 2.5 %* every month.
Regular Income
We aims to mitigate risk first and then generate returns.
Low risk
Earn a monthly income, choose to redeem it for your expenses or get it transferred to your bank account as tax free dividend
Current market cap split
Top 10 stocks
Bajaj Finance Limited
Bajaj Finserv Limited
Relliance Industries limited
Kotak Mahindra Bank Limited
HDFC Bank Limited
Tata Consultancy Services Limited
Avenue Supermart Limited
Housing Development Finance Corporation Limited
Asians Paints limited
Badhan Bank Limited
03. Strategies
A strategy for every market Our strategies are adaptive to most market conditions.
Vega Crush
Markets oscillate between high and low volatility phases, which are measured by Vega. Selling options for a higher premium in a high Vega environment helps you capture profits as markets stablise, irrespective of its direction.
Volatility Dispersion
A dispersion trade benefits from a substantial difference in the volatility of an index and one of it's major components. This is a type of correlation trading as such trades are usually profitable in a time when the individual stocks are not strongly correlated.
Calendar Spreads
These are options trades that are spread simultaneously between two different months; entering a long and short position on the same underlying asset but at different expiries. Calendar spreads carry lower margins.
Delta Neutral
Delta neutral strategies are options strategies that are designed to create positions that aren't likely to be affected by small movements in the price of a security. This is achieved by ensuring that the overall Delta value of a position is as close to zero as possible.
Theta Decay
Also known as time decay, this option writing strategies benefit from falling option prices as we head towards the expiry of a contract.
Equity Hedged Options
These option strategies are used to benefit from a falling market but the upside risk is hedged by going long on equities and short on options.
04. Things you need to know
Here are some more details CWM - PMS is sophisticated.
Here's what you need to know.
What is the minimum investment and what are the instruments used?
The minimum investment is 2 lakhs and we invest majorly in index options, Blue Chip Stock futures and equities.
What is the Time horizon of investment ?
Their is time horizon of 1 year , Customer can redeem incase of medical emergency and the Redemption proceeds will be credited to the bank account within 15 working days from the date of redemption request
Are equities held for a long time in Cwm -Arbor?
No, equity trades in Arbor are designed to benefit from short-term trends in stocks. Some of the strategies used involve a mix of both equities and futures. In order to boost returns, equities held in your account are collateralized and the margin released by the stock exchange is used for arbor investments
Is CWM - PMS risky?
Futures and options have an inherent risk because of the leverage built into derivatives. However, Arbor also help you control your risk using different types of hedging techniques.
How are CWM - PMS Returns taxed?
Derivative income is considered as income from non-speculative business and taxed under the head 'Income from Business'. Generally derivatives are taxed as per your tax slab. Gains from short term equity trades are taxed at 15%. But there's more to it.Because we bare the taxes & provide you tax free returns