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

Yes. Marcellus does offer STP 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 by transferring money from a debt fund to an equity fund. Using STP, clients can stagger their investment in tranches spread over 5 months. For eg, 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 4 months.

2) Why have Marcellus launched 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 recognise 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 instalment.

The balance amount will be parked in liquid fund.

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

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

PMS & Demat Booklet along with KYC documents
STP Cum Switch Request Form
Liquid STP Investment Approach
Corresponding Switch Equity Investment Approach (CCP/KCP) etc.
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 client has signed PMS agreement Version 3 or latest versions released after Version 3 and has submitted a Marcellus POA as well then they only need to submit

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

If 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 Investment approach involved here no scan process is permissible.

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

7) Can client set up a 10 months 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 fixed fee applicable. ( 2% p.a – Regular client, 1.5% p.a Direct client )

9) Are there any Operating charges for STP ? – Operating charges for STP will consist Audit Fee & Fund Accountig charge only. Custody fee and Franking notary charge is not levied.

10) How much will be the STP cost ? -

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

11) Can a client do top in his existing account using STP mode ? - Yes. Client can do top up in existing PMS account using STP mode. The minimum amount of top up has to be rupees 25 Lakhs cash.

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

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

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

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

16) Can existing client do TOP ups using STP? – Yes but ideally we should promote existing clients to avoid the STP mode because they will unnecessarily end up paying fixed fee on the liquid fund. Which they an easily avoid by doing monthly remittance of 5 lakhs by themselves.

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

18) While a monthly STP is in place , can the client do additional investments on any particular day of the month/year. – Yes. Client can do additional funding while the STP is in place. It will be deployed as per 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 same Liquid strategy . Any additional STP made after 1+4 months of tenure, 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. Minimum Residual investment of Rs.50 lacs will be applicable here.

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

21) Can NRI client opt in for STP – Yes. NRI clients can opt in for STP option. However please note the money will be parked in their NR Bank account and not in Liquid fund.

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 Liquid fund will be deployed into equity.

23) Where will the money be parked – The STP funds will be parked in HDFC Overnight Fund - Growth Option - Direct Plan .

24) Why the Last tranche of instalment is more than 20% of the capital invested? 5th Instalment will also include the accumulated returns generated in the Liquid Portfolio. Hence the last tranche amount is more than 20% of capital.