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The duration of the activity will be for one year, starting September 01, 2011 and ending at August 31, 2012. The transaction cost is fixed at 0.25% for each leg of trade. |
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Each of the fund manager will have a phantom portfolio of Rs 10 lakh in notional value, which can be invested either in stocks or held in cash. |
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The fund manager can hold 100 per cent cash in his portfolio, though it will not earn any return. The fund manager cannot invest more than 10% of the corpus at any time in one stock. However, there is no limitation on the number of stocks a fund manager can hold in the portfolio. |
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The fund manager cannot invest more than 50% of his portfolio value, in mid-caps. However, the fund manager can continue holding on to mid-cap stocks in case the value appreciates over 50% post his investment. |
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The fund manager can invest up to 100% in Large-caps - Which is a fixed list of NSE 100 index components, as of August 31, 2011. Mid-caps or other stocks available for trading will be on basis of two criteria. (1) Free float market-cap has to be in excess of Rs 100 crore. (2) The average traded value in the last two weeks has to be minimum Rs 50 lakh, on a combined basis (BSE+NSE). This will be updated on a weekly basis. |
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The S&P CNX 500 remains as the benchmark index for Smart Portfolios. |
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Trading will not be allowed on the Listing day of a particular security. The security will be made available the next day, only if the free-float m-cap is above Rs 100 crore. |
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The fund manager is only allowed to trade in the cash market and cannot take a short position. |
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The fund manager will carry his phantom trades on smartinvestor.in (business-standard.com). The stock price for transactions will be the NSE price available on the website, which is delayed by at least five minutes. |
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The fund manager will have to hold a stock for seven calendar days before selling. |
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The fund managers shall send at least two / three comments to justify his investment in a particular stock. For the same, will be used in the write up (updates) on site and print. |
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Smartinvestor.in may cancel/ reverse transactions if they violate the spirit of fair play. |
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