Investment Advisory Services
1. How can one benefit from MarketStar?
We are investment services company. We offer a wide range of financial services, including Insurance products, Financial Advisory services, and Regulatory Compliance services. In addition, we offer India Investment Advisory Service to investors worldwide, to gain from the strong economic growth of India (8-10% GDP growth rate projected over next 5 years till 2015) through our ground-level presence in Indian capital markets and our first-hand experience of running business in India.
2. Can the Investment Advisory Service benefit any investor worldwide?
Yes, we believe our Investment Advisory Service can benefit any investor worldwide who wants to invest in India — both retail and institutional investors, who may already have their stock brokers in place and they just need quality inputs for their India investment portfolio.
3. What is the minimum amount needed to operate a portfolio like yours? We believe each of our portfolios can be operated well with any amount greater than Rs 100,000 (Rs 1 lakh), which is a very nominal amount for most investors. There is no higher limit on the portfolio size, i.e, one could also run a Rs 100 million (Rs 10 crore) portfolio with the same constituents. If you wants to run an even bigger portfolio size, then we can advise you on a portfolio with higher weight for constituents with higher trading volumes, which can allow you to enter/exit positions without damaging the opportunity.
MarketStar Shareholders/Investors
1. How do you manage business risks and market risk?
Risk is primarily managed by diversification of investments. This includes holding adequate Put options in case our portfolio is loaded with stocks, and pro-actively converting investments into cash when markets are likely to move downwards. While the Indian economy is robust and will continue to grow, the Indian capital markets react to the global capital markets on broad market sentiments, and therefore we take stock of the global situation regularly. A part of the portfolio is used for agri-commodity trading in India, which further reduces capital market risk.
2. What kind of returns can be expected from equity investment in MarketStar?
MarketStar offers equity investment in the form of shares in the company, and hence, the company’s financial performance is subject to a wide range of market risks. No specific return can be guaranteed in any equity investment, including ours. That said, our goal is to do better than the NIFTY Index on annual basis.
3. How does the share price work?
We will publish one share price per month (on the 1st of every month) and that share price will apply for the whole month. This is to ensure that our shareholders are not subject to wide fluctuations like in the stock market. Based on feedback from many current and potential shareholders, it will make investment decisions easier with a fixed share price of share per month, and a significant portion of our net profit from business will be shared with shareholders through dividends.
4. Is there a limit on how much one can invest through Market Star?
For individual investors, the investment range is Rs 1 Lakh to Rs 25 Lakh, as of March 2010. For institutional investors, the investment range is Rs 1 Crore to Rs 10 Crore, as of March 2010. We will revise these amounts as we go forward. We will take new investors based on a clear understanding of their investment needs and time frames. We believe MarketStar will offer an attractive investment option for foreign investors in the future once we are ready to take non-Indian citizens/organizations as shareholders.
5. Is there a shareholder agreement?
Yes, we have shareholder agreement, which needs the investor’s signature. This agreement will be mailed to the investor’s address and needs to be returned within 3 months of investment, otherwise the investment amount will be returned without interest. Please contact us for: MarketStar Shareholder Agreement
6. Can investors add nominees for their shareholding?
Yes, it is possible. Please contact us for the Nomination Form.
