FAQ's

NJ Mars Tabs 12 December 2014

CONCEPT

What is MARS?
MARS stands for Mutual Funds Automated Portfolio Rebalancing System. It is an asset allocation and scheme selection tool that is being offered to NJ Partners and their clients. Depending on the risk appetite and goals of the client, the partner and client can choose from a wide range of portfolios available in MARS. The tool will provide regular reminders to the partner and client for maintaining the asset allocation and change underlying schemes periodically based on research done by NJ team. The client will need to authorise the transactions for the relevant changes to take effect.

What are di erent portfolio strategies o ered under MARS?
MARS off ers the following 2 portfolio categories

Dynamic Asset Allocation Portfolios
Fixed Asset Allocation Portfolios

Under Dynamic Asset Allocation, the following portfolios are being o ered to partners:

Under Fixed Asset Allocation, Portfolios are available from 10% Equity Allocation to 100% Equity Allocation.

ACCOUNT OPENING

What is the minimum amount for opening MARS account ? What is the minimum top up amount?
Minimum amount for opening a MARS A/c is Rs. 1 Lac. The minimum investment for top up is Rs. 10,000.

Does a client need to open a new TADA account for MARS?
No, a client does not need to open a separate TADA account for MARS. He can avail the facility from his existing TADA account only.

Can a client avail the MARS facility without opening a TADA account
No, having a TADA account is compulsory as all the transactions will be routed through the stock exchange platform

MODES OF INVESTING

What are modes for investing into MARS?
The client can invest through cheque, net-banking, debit card, auto debit mandate or by transferring his existing MF portfolio into MARS. Client cannot transfer his stock portfolio into MARS.

Which schemes are restricted for transfer to MARS a/c?
FMPs, closed ended equity funds, ELSS schemes (units under lock-in) and schemes having pledge units will not be transferred to the MARS a/c.

Which schemes will get automatically transferred to MARS account?
All the schemes in your existing portfolio which are also part of MARS portfolio, will automatically get transferred to your MARS.

For e.g. A Client wishes to transfer some of his existing investments to MARS portfolio. He has investments in HDFC Equity Fund, Reliance Growth Fund and Birla Top 100 Fund. Assuming MARS portfolio also has Birla Top 100 Fund, his total holding in Birla Top 100 will automatically get transferred to MARS portfolio. Of the remaining funds, the client may choose to select any, all or none of the funds to be transferred to MARS.

MISCELLANEOUS

Is there any lock-in in MARS?
MARS is an asset allocation and scheme selection tool. All the schemes in MARS are open-ended, hence there is no lock-in for the client. The client can buy / sell any scheme in his MARS portfolios subject to the exit load charged by the scheme.

What is the subscription fees for MARS?
As an introductory off er, the MARS a/c is currently free of cost to the client. However, nominal fees may be introduced later for the client. The only charge to the client is the transaction charge on the exchange platform, which is decided between the partner and the client at the time of TADA a/c opening. These charges are any way applicable to the client with or without MARS. There are no other charges in MARS.

Can a client open multiple TADA a/cs for di erent MARS portfolios?
No, the client cannot open multiple TADA accounts with the same holding pattern.

Can the partner select or change schemes in the MARS portfolio?
The MARS portfolio schemes are short-listed by the NJ research team. The partner cannot change the underlying schemes in the MARS portfolios.

PORTFOLIO SWITCH

Can the client switch from one MARS portfolio to the other ?
Yes, the client can switch from one portfolio to another. However, only one switch can be done in a calendar year.

Will there be any charges on the switch from one portfolio to another?
There are no charges for the portfolio switch currently. Normal transaction charges on exchange platform will apply as per agreement between client and partner.

PORTFOLIO REBALANCING

When will the Portfolio Rebalancing happen ?
The Asset Allocation rebalancing for Dynamic Portfolios will happen on a quarterly basis and for Fixed AA portfolios will happen on a yearly basis in January of every calendar year. The portfolio change will happen every alternate year according to investment series. For e.g. - For all investments made in 2014, the scheme change will happen in Jan 2016 and for investments made in 2015, the scheme rebalancing will happen in Jan 2017.

What are modes available to the client for authorising portfolio rebalancing?

The client can avail of the following modes:

Online authorisation via TADA a/c
Partner can download TIS from the Partner Desk, get client's signature and submit it to nearest NJ PSC.
Call and Transact (will be launched shortly)

How will the client and partner come to know about the schedule of rebalancing or asset allocation change?
The partner and client will be sent an SMS and email on the fi rst day of the rebalancing schedule. The authorisation window will be open for the client for 15 days. During this period, client will get regular reminders till the time he authorises the transactions.

The client has forgotten to authorise the rebalancing transaction during the prescribed time. What should he do now?
In case the client has failed to authorise the rebalancing transactions, he will have to wait for the next rebalancing cycle for the auto change in his portfolio. However, the client always has the option of changing his portfolio himself by selling / purchasing / switching the schemes. None of the underlying schemes in MARS have any lock-in.

Can a partner authorise the transactions on behalf of the client?
No, a partner can not authorise on behalf of the client.

CLOSURE

Client wants to discontinue his MARS account. What does he need to do ?
In case the client wants to discontinue the MARS service, he needs to intimate the partner for the same. The partner can then unmap the client from MARS service through Partner desk. The Client will stop getting any future alerts for rebalancing on his portfolio.

If a client redeems his entire MARS portfolio, does he automatically get unmapped from MARS?
No, the client is not unmapped from the MARS platform. He continues to a part of MARS. If he wishes to invest more money, the minimum investment amount will be Rs. 1 lac.

Can a client do partial redemption in MARS?
Yes, the client can do a partial redemption in MARS. The redemption amount will be proportionately redeem from all the schemes as per their asset allocation.