Is there a STP (Systematic Transfer Plan) available to invest in Marcellus' PMS?

Yes. Marcellus does offer STP the option to invest in its Portfolio Products. Please refer below FAQs for all your questions on STP.

1)  What is STP (Systematic Transfer Plan)? – STP is an automated way of moving (transferring) money from one fund to another. The most common way an STP is done is by transferring money from a debt fund to an equity fund. Using STP, clients can stagger their investment in tranches spread over five months. For e.g., you can invest Rs 50 lacs, of which only Rs 10 lacs is invested in the underlying Marcellus PMS (CCP or KCP), and the remaining Rs 40 lacs is invested in a Marcellus Liquid fund PMS, which is then transferred into the underlying Marcellus PMS in equal tranches of say Rs 10 lacs at a pre-decided frequency, say monthly over the next four months.

2)  Why has Marcellus launched the STP plan? – At Marcellus, we don’t believe in timing the market and hence deploy the money into our strategies as soon as the investor transfers the funds to us. Whilst we continue to maintain that the best way to deploy a lumpsum is in one go, we do recognize the emotional aspect of loss aversion in the short term and have launched the option of a staggered deployment for those clients who prefer so. 

3)  What is the minimum / maximum number of instalments / amount allowed for STP? – Each instalment will be 20% of the total capital amount. So in this way there will be only 5 instalments. 1st tranche of 20% will be deployed immediate month and subsequent will happen in another 4 months. Hence only 20% & 5 equated tranche investment will be made.

4)  How will STP work? – On the day of funding 20% of the total capital will be mapped for deployment into the equity fund. This will be the 1st installment.

The balance amount will be parked in a liquid fund.

The next 4 installments will be deployed around the 20th of the subsequent months.

The redemption from Liquid will be made before the 20th so that the proceeds can be received and deployed by the 20th. However, in case of a delay in receipt of proceeds from the Liquid fund or a non-business day falling on the 20th, the deployment will be done on the subsequent business day.

5)  How to set up STP for a Marcellus CCP or KCP fund? Form Requisites for STP? - 

New Clients:

1. PMS & Demat Booklet along with KYC documents
2. STP Cum Switch Request Form
3. Liquid STP Investment Approach
4. Corresponding Switch Equity Investment Approach (CCP/KCP) etc.
5. In the PMS AOF in Product Section should be mentioned as “Liquid STP’ & Sub-Product as “Switch to KCP/CCP” (Only One Product)

Existing Client Investing in Liquid STP: Important point to note for Existing client –

If the client has signed the PMS agreement Version 3 or the latest versions released after Version 3 and has submitted a Marcellus POA as well then they only need to submit

1. STP Cum Switch Request Form
2. Liquid STP Investment Approach
3. Corresponding Switch Equity Investment Approach (CCP/KCP) etc.
4. This transaction should be considered as an Additional investment in a new strategy by a new Client and ensure KRA compliance.

If the client is on any older version then he needs to sign New Clients Documentation Checklist mentioned above.

( PMS agreement + Marcellus POA + STP form + Liquid fund investment approach + Liquid fund fee schedule)

Processing of Physical Forms:

Both New & Existing processing will be sourced through Onboarding Journey, on receipt of Physical documents at Marcellus premises. Due to the Investment approach involved here, no scanning process is permissible.

6)  Can the client decide the amount of installment on his own? No. only 20% & 5 equated tranche investment is available.

7)    Can the client set up a 10-monthly STP instead of 5? No. only 20% & 5 equated tranche investment is available.

8)      Is there any type of fee or charge involved in STP?- The money is parked in a Liquid fund and there is a fixed fee applicable.

9)      Are there any Operating charges for STP? – Operating charges for STP will consist of Audit fees, Fund accounting charges, and Custody fees. Franking notary charge is not levied. 

10)    How much will the STP cost?  - 

* Above table is for illustration purposes only. Actuals may be different. Also, the table does not take Custody and Fund Accounting into account. 

11) Can a client do top in his existing account using STP mode? - Yes. The client can do a top-up in the existing PMS account using STP mode. The minimum amount of top-up has to be rupees 5 Lakhs cash.  

12) Can a client give a top-up or initial investment as stock to fund his account and do a STP? No. Funding the PMS account via STP mode has to be in cash.

13) If a client has a 50 Lakhs minimum already in CCP PMS account, can he start KCP PMS account with a minimum of 25 lakhs using the STP option? - No. The scheme-wise minimum requirement is of rupees 50 Lakhs. 

14) Will the client have online access to the liquid fund strategy? – Yes. The client will get online access to the Liquid fund strategy.

15)   Will the client have a separate PMS code for the Liquid fund? – Yes. There will be a separate PMS code for the Liquid Fund strategy.

16)   Can existing clients do TOP-ups using STP? – Yes, but ideally, we should promote existing clients to avoid the STP mode because they will unnecessarily pay a fixed fee on the liquid fund, which they can easily avoid by doing monthly remittances of INR 50,000/- or more.

17)   Can the Existing Client Switch to Liquid STP? Switching from the existing Equity Product to Liquid is not permissible.

18)   While a monthly STP is in place, can the client make additional investments on any particular day of the month/year? – Yes. The client can do additional funding while the STP is in place. It will be deployed as per the BAU process as it will be considered as any normal top in a Portfolio. Please note that any STP done during the tenure of 1+4 months will be considered as additional in the same Liquid strategy. For any additional STP made after 1+4 months of tenure, the Client will have to follow the Existing Client Investing in Liquid STP Process.

19)   Can the client redeem in between his STP orders? – Yes. Only Full redemption can be made in Liquid STP, Part redemption is not permissible in Liquid Strategy. A minimum Residual investment of Rs.50 lacs will be applicable here.

20)  Can the client stop the STP in between and transfer the entire balance to equity? - Yes. If the client wants, he can stop STP in between and transfer the balance from the Liquid Fund to the Equity Portfolio. Such requests received by Marcellus by 10:00 AM will be processed on the same day, and received after 10:00 AM will be processed on the next working day. Cash proceeds will be mapped to the equity account on T+4 day. 

21)   Can NRI clients opt in for STP – Yes. NRI clients can opt-in for the STP option. However, please note that the money will be invested in the ETFs.

22)   Can existing clients stop STP in between? Yes. The client, if needed, can choose to stop STP. In this case, the remaining balance of the ETFs will be deployed into equity.

23)   Where will the money be parked – The STP funds will be parked in ICICI PRUDENTIAL SnP BSE LIQUID RATE ETF.

24)   Why is the Last installment tranche more than 20% of the capital invested? 5th Instalment will also include the accumulated dividend received for the ETF units. Hence, the last tranche amount is more than 20% of the capital.