I opted for yearly option for combo offer of PWT (PowerYourTrade) just to make sure I am not judging their service on a very small time frame.

My Account Status

On 26th Jan 2012, my account status is as follows.

I am a member of PWT for last 90 days now and it is quite a long time for me share my review about their service. So let me share some of the key facts about the service.

The Sales Page

When you are not a paid member in PWT you are mainly driven into being a member by the following recommendations.

You see multibaggers that have gained few hundred percentages over a period of few years. Not only that if you see previous multibaggers here, you see everything green. On Jan 26th 2012 I see it as follows.

Click On Image to View Complete Screenshot

Reality of Multibaggers

Reality of Multibaggers as on 26th January 2012 when logged in is…

Click on Image to View Complete Screenshot

The obvious question that you may have – Is the first screenshot wrong? No it is not wrong. You may have not noticed one thing that makes first image correct, which is the date of recommendations by experts. If you note the recommendation date you will see that those gains are for stocks recommend in June 2011 and beyond and nothing after that. It means very few Multibaggers have done anything substantial in the current market scenario.

Many can argue that that having dates means they have the accurate information but that is also not the case all the time.

The Hidden Truth

On April 19th 2011 SP Tulsian initiated a buy call on FAG Bearings, which is up by 30% now. The reality is on April 29th 2011 SP Tulsian initiated a sell call on the same stock and so even if you purchased the stock on his call you would have sold it anyway and it means the recommendation is not at all a reality where you make 30% but as guest you only see that a recommendation is up by 30%. See the screenshot below for sell call for the same stock after 10 days on 29th April 2011.

This actually reveals the secret to gains of 2000% as well. They recommended the stock at some point and that stock is now up by 2000% but that does not mean they have not initiated any sell call in between and you can actually make 2000% in reality. There may be buy and sell call but they only show the calls they have taken some time back that has gained few hundred percentage.

2009 Multibaggers

You can view 10 pages of Multibaggers stocks recommended over time and as of today I see the following calls in Multibagger calls from 2009.

Click on Image to View Complete Screenshot

Very few have performed from 2009 till date.

Final Thoughts about PowerYourTrade

You can subscribe to PowerYourTrade tips if you understand that every multibagger stock suggestion is not a multibagger and they are just any other stock suggestion. Apart from that Hem Securities Multibagger calls are more reliable and works far better than any other calls. This is my personal experience based on some tracking that I did for last 3 months.

Update: I don’t share any stock tips and so please do not email me for any stock ideas. I am a personal blogger who let you understand how to trade and invest in market but don’t prefer sharing what stocks you should be trading in market.

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1. Sharekhan PMS Review – My Experiment with 500,000 Rupees

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Buy now from Flipkart or Amazon

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1. Locker Charge Issue

I have three accounts in HDFC Bank Moulali Branch. Personal savings account, joint account with my wife which is mainly used as my wife’s bank account and personal current account.

Apart from the bank accounts I also have a locker in the same branch. The charge for small locker is 1500 Rs per year for normal customers and 750 per year for classic customers i.e. 50% discount for classic customers. I am a classic customer for more than a year now but in April 2011 I was charged locker rent for normal customer.

As of now just make a note that I am charged 10% as service tax and 0.3% as education cess as well on 1500 Rs.

As expected I called up my personal banker (yes classic customers have a personal banker) and within 2 weeks 750 was refunded back.

You may be wondering what the issue is. The issue is the service tax and education cess that should have been refunded as well without saying i.e. Rs 75 and Rs 2.25. I asked my personal banker when this will be reversed and they always say it will be reversed soon. After following up for last 5 months with 3 of my personal banker in Moulali branch I could not get Rs 75 refunded.

2. The Power to Branch Manager

In October 2010 I did a telegraphic transfer of 5000 USD or 2.23 lacs. The cost as convinced to me by branch manager was 1000 Rs but as I was a classic customer at that time I was told that I would get the same discount of 50% and so will only be charged 500 Rs but as expected I was charged Rs 1000 and after following up with the branch manager for 4-5 months the response that I finally got was. It cannot be done. If I would have been THE BRANCH MANAGER I would have deposited 500 bucks into my customers account before saying such words because you are not a sales guy but a branch manager.

I could not generate the statement online for the transactions older than 6 months and so here is the screenshot from the pdf statement that they send.

So each time my personal banker introduces me to the new HDFC Bank products I simply say a big NO with reference to the above incidence. I am still having my account and the locker with HDFC Bank and is planning to get locker closed as soon as I could but still being a bit lazy.

Share your experiences with HDFC Bank in comments below.

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Note that it is about your PMS experience’s and it need not be a horror story. If you have something positive, let us know.

For uploading documents and screenshots, use fileserve. Remember to edit any identification/ids you do not want to make public. Once uploaded leave a comment here with your experiences as well as links to files and documents. I will transfer those files to my own server and append them to post. You can also leave your website URL or your Twitter Account URL in comments for me to link to them.

Shailendra Mehta

Share your PMS story now and let others benefit from the shared wisdom.

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Let us first see why I was convinced.

1. PMS Fund manager can completely liquidate but mutual funds can’t

When I talked with the PMS sales people they told me one clear advantage of PMS over mutual fund is, if market tumbles then PMS can liquidate your complete equity exposure but when it comes to mutual funds they have to remain invested in equity for minimum possible levels depending on the fund type. An example equity based funds have to have an equity exposure of close to 80% no matter how much danger they foresee in the equity market.

2. PMS have the leverage for higher margins

I am not talking about the few times leverage margin available when trading in futures market but what I am talking about is the debt instrument allocation part.

Image Source: Sharekhan PMS Quarterly Report @ Sharekhan PMS Review

You can see that 400,000 i.e. 80% of 500,000 were invested in a debt fund i.e. Birla Sun Life Savings Fund and rest 100,000 was left for equity trading. This way corpus can actually trade for 5 lakhs of rupees yet exposing only 1 lakh to equity. I looked at this as an advantage to mutual funds where mutual funds do not have the leverage of investing in some other debt funds 80% of money and still work with 100% of the investment amount.

Apart from that I also believed that this actually means an advantage of capital protection. If market collapse by a shocking 10% in a day then also the maximum I can loose is one lakh theoretically (i.e. all my margin money) and fifty thousand practically i.e. 10% of 5 lakh. Such thoughts actually made me to continue the PMS service after the initial issues with the sales team.

3. PMS are for big boys

Aren’t we all fascinated to try a PMS? PMS has an entry barrier of few lakhs and so not many individuals and retail investors are able to go for it. It is mainly for HNI’s or High net worth individuals who have in spare few lakhs of Rupees. This makes many retail investors (including me) think that if I can make an investment portfolio of few lakhs I can go for PMS.

Now the question comes why in reality PMS does not perform as expected?

Note: Now we are talking about PMS’s in general and not Sharekhan.

1. Lack of Good Fund Manager’s

In general the mutual fund manager’s of good fund houses are more skilled and follow a standard allocation patterns than the PMS fund manager’s. If you are inclined towards PMS you should always know who will be managing your fund and try to get more information about his/her experience in the market and see how long the fund manager has been there with the brokerage house.

Apart from that I have read in many forums and blogs that at times PMS are not managed by humans and is done by auto trading software’s but I cannot confirm about this information for sure.

2. Aim to generate more brokerage

Like any other trading account, the highest priority for any PMS is mainly to generate more brokerage income and not return on the PMS where as for mutual funds highest priority is performance.

3. Lack of proper regulation

Lack’s of detailed regulation to judge a PMS service or performance. If some sales person tells us some performance numbers we cannot challenge those numbers to the extent we prefer nor can we can ask for a proof because answer will always be – our research & numbers are confidential.

Over to you

Share your Investment story in comments below. We can ALL benefit from shared wisdom

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The process started when I called up the ShareKhan customer care numbers and left the message that I am interested in doing a portfolio management service with ShareKhan and soon the sales team gave me a call. I verified that this call is directly from the ShareKhan team by asking some details about my account in Sharekhan and I was certain that I am talking directly with the Sharekhan in-house people and not to any sub-broker. You will soon realize why I mentioned this here.

I will share with you all my numbers and account statement as I think I should be as transparent as possible.

To start with Sharekhan offers 2 PMS products -

1. Fundamental PMS – Brokerage of 0.5% with 20% profit sharing after 15% profit hurdle is crossed and a 2.5% per annum AMC charges.
2. Technical PMS – Brokerage of 0.05% and flat 20% profit sharing.

Now looking at the fees I was certain that by no means I will opt for fundamental PMS. If I opt for fundamental PMS I need to pay AMC of 2.5% but will save 20% on the 15% profit. So doing the maths 15% profit on 5 lakh is 75,000. Now assume that if I make a profit of 15% then for technical PMS 20% of 75,000 is what they will charge me i.e. 15,000 and for fundamental PMS I will pay 14,375 (roughly as charges are deducted quarterly) AMC charges no matter what I gain. Market was at 5400 Nifty and I was not sure if the correction was on the cards and so I opted for a technical PMS where they assured me that charges are only on profit sharing and for losses they charge nothing and you loose just the small brokerage amount.

Apart from the fees fundamental PMS has high brokerage because it mainly deals in delivery based whereas technical PMS is more of a trading PMS. As I had the feeling of market correction I thought of trading PMS will be a better option than an investment based PMS.

So there was no doubt in my mind that I will opt for technical PMS and on July 21st 2010 my account started and as expected I started to see major issues and things told by sales people were all wrong.

Issue 1. Wrong Information

The sales person who visited my house (and including the customer care people who gave me a call from Mumbai after my interest in PMS) told me that I will be given a username and password to see my portfolio online. After everything is done I got a welcome email with only userid and no password. After calling every possible number I could I realized that this facility is not available for technical PMS account type and is only available for fundamental PMS.

I confirmed the same with the person who visited my house for account opening procedures and she confirmed that in training she was told that customers are given username and password for all PMS type. The more experienced guy explained to me everything on why username and password cannot be given for trading PMS and though I could not agree much to it I was left with no choice.

The only service they could provide me was to change my technical PMS to fundamental PMS if I insisted on having a login details but I was more than certain that I will never opt for fundamental PMS and so finally I settled without login details. Can you imaging I could not check what is happening to my money.

Issue No 2. No one knows the product in detail

The sales people who visited my house told me that I will be able to give my inputs as to which sector and stocks I am more inclined to but then as expected nothing like that happened and when I asked the answer was same again – this facility is not available for technical PMS and is only available for fundamental PMS.

The sales people even told me that I will be able to meet the fund manager in a month’s time and I never expected that to happen but this made me to believe that my inputs may be taken. The only concern I had here is I wanted to avoid investing in companies dealing in alcohol and tobacco but I could not control that by any means.

Issue No 3. Lock-in Period

My account started on July 21st and in few days I had all sorts of issues and wanted to close my account the next day but I was told that this is not possible and you have to be with us for next 6 months (read: forced to be with us) as there is a lock-in period. I had idea about the lock-in period before hand but I think having an exit load is better option than a lock-in period. I was ready to pay anything at that time to close on my account but I just could not.

Issue No 4. No Clarity with Charges and Deductions

Sharekhan PMS web page clearly tells that ShareKhan books profit on quarterly basis but sales person I talked with emphasized that Sharekhan charges 20% whenever I withdraw my profit. When I told about the statement they have online is not matching with what they telling I got variety of answers. One was that this is new product (actually not true because technical PMS sub products are new but not technical PMS as a whole is new) and other was that it is after every 3 months from the inception of your fund you will be charged but the actual fact is they charge you fiscal quarterly i.e March, June, September & December

One more thing which I think I should mention is that you can only withdraw in multiples of 50% of 25k profit but they charge every quarter on total profit.

Issue No 5. Double Demat Account

With the kind of issues I had with my PMS account I found that for fundamental PMS you have to have a second demat account and you cannot use your existing trading account linked demat account.

Issue No 6. Performance of PMS

The 5 issues I mentioned above could have been easily digested by me provided I got good returns, but to my surprise I could do better than what they could do for me.

Let us take some actual numbers and deal in some maths.

The above screenshot is from the official Sharekhan PMS report and you can also look at the complete report here.

I invested 5 lakh Rupees on 21st July 2010 and the on 30th September 2010 it is 525,646. So I got an absolute return of 5.13%.

Now let us compare the same with Nifty and Sensex returns.

Aren’t the numbers speaking for themselves? A 50% less return than the index but yet let us see what I could have got if I invested in my preferred (or diversified) mutual funds.

*Nav are taken from Historical Date from AMFIIndia for growth option

All of my preferred funds outperforms the PMS numbers by a big big margin and guess what; they charge you 20% of your profit for this crappy services and performance.

Drop a comment if you have any queries or questions and don’t forget to share your views and feedback.

I hope this will help lot of fellow investors and blog readers.

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Update 19th October 2010 : This Product is out of stock as of now. Will update once available.

On 2nd September 2010 I suggested TTK Prestige with potential upside of 20%.

On 29th September 2010 the stock proved me right.

The stock then went onto new highs as well but as this was my new experiment with a new kind of trading strategy. I could not resist myself to book profit at levels I thought was enough for me but I knew the price target of much higher levels is definitely on the cards.

I normally do not prefer to discuss and suggest stocks but I prefer to share my secrets of finding such stocks and I will do the same today. I will tell you my secret to finding multi bagger stock like TTK Prestige for yourself. This will not only help you educate yourself in your quest to make money in stock market but will also help you understand the stock market in a much better way.

Over the past few weeks, I’ve been testing an exciting new method of finding multi bagger stocks and it doesn’t matter which part of the world you belong to, you can apply the sure-shot strategy and can make money from the Indian stock market. At least I am able to do it very easily and you know that I am not an expert finance person.

http://bit.ly/FindMultiBaggerStock

Interesting part is you do not need to be doing chart reading or technical analysis in the entire trade process.

http://bit.ly/FindMultiBaggerStock

As a special bonus to my reader’s you get 50% off if you enter UWP50OFF.

What you are waiting for? Understand the secrets of successful traders and start making money in the Indian Stock Market Now

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Cheers.

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Yes you heard it right. One of India’s largest bank is having such an issue. You may be wondering how?

Call ICICIBank customer care number in your city. To log-in as somebody else you need only 2 things.

1. User’s Account Number
2. Primary User’s Date Of Birth

If you issue a cheque or even do an online fund transfer, the other person knows your account number and so all he need to do is go to your online profile to find your date of birth. My FaceBook profile has my date of birth and I even checked with Orkut and they have it online too.

Now if I issue a cheque to you I risk my complete ICICIBank account. Do you think this is tolerable?

ICICIBank online facilities has always pretended to be much more secure with password grids and what not but this type of lapse is by no means tolerable.

Are you still using an ICICIBank account? If your answer is yes it is the time to think now.

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2. Online Broker
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1. Religare
2. AnandRathi
3. Reliance Money
4. Indiabulls
5. HDFC Securities
6. Motilal Oswal
7. ICICIDirect

and today I will share my views and experiences with ShareKhan.

Positives

• Brokerage – If you have an account with some other broking house they will offer you better brokerage rate. Brokerage depends on your ability to negotiate.
• Very sound Online platform as well as the Windows application “Trade Tiger”. You can do everything using the online system or Trade Tiger application.
• Integrates well with your existing bank account and you do not need any extra bank account to maintain.
• Mutual Funds / IPO all can be done online without any hassle.
• Mutual Fund Fees is NIL. Yes you heard it right. There is no fees to transact in mutual funds online with ShareKhan.
• If you have a portfolio of over 500k you can get a Relationship Manager which is as good as Motilal Oswal’s Offline account facilities.

There is hardly any negatives that I am experiencing and this is one of the main reason to move all my equity based investment and trading into ShareKhan.

If you have more to share please do share them in comments. Your views not only help me with my decision to move everything to ShareKhan but also help other fellow readers.

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Positives

• Brokerage is lowest and this is not based on negotiation but is always on the lower side for them. If you compare any other broker they lower the brokerages if you opt for digital contract notes but Motilal offers lower brokerages even for paper contract notes and if you opt for email contract notes only they may lower the brokerage further.
• Very good phone trading facility with adviser keeping tracks of your stock and advices you but to avail the off line trading facility minimum amount you should invest is 1 lac.
• Good recommendation and being an investor I always like the investing research more than trading ones and some of them I do share in the blog here as well.

Negatives

• They offer two type of accounts. Offline and Online but you cannot have both. I have an offline account but if I want to do anything using my PC it is not possible.
• As I have an an offline account I have no option to purchase mutual funds online.
• Very bad backoffice interface and it just does not work many times. Backoffice login does not work on latest browsers and you need to have WinXP and IE6 to see your backoffice ledgers .
• I have an account with them for quite some time now and the issue is their phone number just keeps on changing all the time. Each few months I have some new numbers to fetch before I can execute a trade.

All in all a good service to do some handsome trading but I am also planning to close this account for lack of good backoffice interface.

If you have some experience with Online account at Motilal Oswal or if you would like to add more to offline account review please share in comments below.

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Apart from that my friend always used to complain about the trading margins that it does not allow me buying in margin.

If you have better experience with HDFC Securities (good or bad) share them in comments below.

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…. is writing a complain against 2 people

1. XXXX
2. XXXX

The complain is about the MCX trading where I have bought copper at Rs XXXX for XXXX Contract but due to crash in the prize of copper they did not inform me and did not remain in contact. I was informed at around 8 PM in the night and the above mentioned people did not wish to come to my house to collect the check and they told me to deliver the check at their place.

I also gave a proposal that I can tell you the check no and you can collect the check early morning but they refused to do so and told me to scan and send the check but I dont have the scan facility at my home.

Please take this email as an official complain from me and if no strict action is taken I may even go for a consumer court complain.

If they actually dont collect the check I may incur a loss of 19,000 (as of now).

I also asked them to give me some number of higher authorities where I can make a request and I asked the same on the Logger phone ( XXXX ) at around XXXX and they just refused to give me any numbers as such or even did not bother to help me out in the crunch situation.

Thanks
Shabbir

Just avoid them if you can.

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Positive

• Brokerage – Very innovative and Flexible brokerage plans available. You can make your brokerage as NIL provided you pay 500 per year for trading of 5 lacs or Rs 500 per 2 month for trading of 1 crore. This option was available to me at least and they keep getting new brokerage plans.
• They have an averagely good online system with lot of additional security.
• You can find Reliance Money Office very nearby as they have lot of them and they are really helpful in getting things done for you.

Negative

• They have a very bad phone trading facility and it once took me around 15 minutes to get a trade done using phone but if you have good relationship with some Reliance Money office people things may be different.
• Online system has one major problem which is it just logout in few minutes and you have to constantly do something to remain logged in.
• They used to offer very few mutual funds online.

It has been quite a while now when I have made my account zero balance with Reliance Money but yet I get lot of SMSes and phone calls asking me to reconsider and re-open the account.

If you have more to share about Reliance Money please do so in comments below.

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3. AnandRathi Review

Positives

• Brokerage – If you have an account with some other broking house they will offer you better brokerage rate.

Negatives

• Very bad service and bad phone trading facility.
• Being a webmaster myself I found the website very hard to handle.
• Again as the web interface is very bad it becomes harder to find things and one of them being Mutual Fund.

As of now I have withdrawn all my money and holdings from my account and it should ideally be closed by now.

If you have more to share about AnandRathi please do so in comments below.

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