Fee Calculator
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Fee Calculator.
How management fees, performance fees and expenses shape portfolio returns — illustrated over one year, exactly as prescribed by SEBI.
Hybrid — a management fee plus a share of returns above the hurdle rate.
Net Portfolio Value
—
at year end, after all fees and expenses
Net Return
—
on capital contributed
Total Fees & Charges
—
including performance fee
Calculation Statement
All figures in Indian Rupees (₹)| Row | Particulars | Method | Value |
|---|---|---|---|
| Portfolio value | |||
| i | Capital Contributed / Assets under Management | i = a | ₹0.00 |
| ii | Gain / (Loss) on Investment based on the Scenario | ii = i x g | ₹0.00 |
| iii | Gross Value of the Portfolio at the end of the year | iii = i + ii | ₹0.00 |
| iv | Average Assets Under Management | iv = (i + iii) / 2 | ₹0.00 |
| Expenses and management fee | |||
| v | Other Expenses | v = iv x c | ₹0.00 |
| vi | Brokerage and Transaction cost | vi = iv x f | ₹0.00 |
| vii | Management Fees | vii = (iv + v + vi) x b | ₹0.00 |
| viii | Total Charges Before Performance Fee | viii = v + vi + vii | ₹0.00 |
| ix | Gross Value of the Portfolio before Performance fee | ix = iii + viii | ₹0.00 |
| Performance fee | |||
| x | High Water Mark Value (HWM) (Capital contributed for 1st year and second year onwards as defined in the PMS agreement) | — | ₹0.00 |
| xi | Hurdle Rate of return or as defined in the PMS agreement | xi = i x e | ₹0.00 |
| xii | Gross Value of the Portfolio before Performance fee is greater than High Water Mark Value + Hurdle rate of return | xii = ix > (x + xi) | ₹0.00 |
| xiii | Portfolio return subject to Performance Fee | xiii = ix – x – xi | ₹0.00 |
| xiv | Performance Fee | xiv = xiii x d | ₹0.00 |
| Outcome | |||
| xv | Net value of the Portfolio at the end of the year after all fees and expenses | xv = ix + xiv | ₹0.00 |
| xvi | % Portfolio Return | xvi = ((xv – i) / i) % | ₹0.00 |
| High water mark carried forward | |||
| xvii | High Water Mark to be carried forward for next year. When performance fee is charged from the portfolio itself. | xvii = Max (x, xv) | ₹0.00 |
| xviii | High Water Mark to be carried forward for next year. When performance fee is paid separately by the investor to the PM. | xviii = Max (ix, x) | ₹0.00 |
“Next Year” carries the year-end value forward as next year’s opening capital, so you can see fees compound across years.
Assumptions & Disclosures
- Management Fee is assumed to be charged annually in the illustration. However, it can be charged at any frequency (Daily, Monthly, Quarterly, Semi-annually, Annually) as defined in the PMS agreement and permitted under SEBI regulations.
- Management Fee can be based on Average portfolio value or closing portfolio value, or other methods as defined in the PMS agreement.
- Returns are assumed to be generated linearly throughout the year.
- Other Expenses include Account Opening charges, stamp duty, Audit Fee, Bank charges, Fund Accounting charges, Custody Fee, demat charges, or other miscellaneous expenses.
- Brokerage and transaction costs are illustrated based on Average AUM but are charged on actual trades.
- All Fees and charges are subject to GST.
- High Water Mark for the 1st Year is the Capital invested. For subsequent years, it is the year-end closing value after all charges and fees, unless otherwise defined in the PMS agreement.
- Hurdle Rate is calculated based on the Higher of (HWM or previous year closing capital), but may differ as per the PMS agreement.
- Hurdle Rate is prorated if the performance fee period is less than 1 year or if there are inflows/outflows from the portfolio.
- This illustration shows High Water Mark carry forward scenarios for fair treatment of the investor.
- This is a generic illustration; each portfolio manager may modify it as per their PMS agreement terms and conditions.
- Portfolio Managers should also refer to the illustrations in Annexure 4A of the Master Circular for Portfolio Managers dated June 07, 2024.
Illustration as prescribed by SEBI · Calculations powered by WealthSpectrum