C A P S T E M

Frequently Asked Questions

We are here to clarify the common questions that you might have around our service and the industry as a whole!

SEBI mandates no return promises and hence we cannot guarantee a return. What we do is have a hurdle rate. Hurdle rate is the return the funds would have made in a risk-free investment or the opportunity cost. It stands at 6% for us. If we make a return more than 6%, we will charge a performance fee.

We predominantly charge fees in 2 ways. One is management fees which is a % of the AUM and other is performance fees, which is % of profits made.

It will all depends on the investment plan we arrive at for you as well as what Risk Profile you are categorized in. But to put things in perspective, we might look at between a range of 5% - 30%

Even though your Risk Profile might be RP1 to RP4, we will mostly start with RP1 trades for everyone and based on account surplus, we will start moving up the risk ladder. Also, once a drawdown happens, we will lower the risk and recover the loss before moving up again.

Each trade is designed to have a Risk Reward of >1.5 and a maximum possible loss of 5-10K initially which is 1-2% of your capital or margin. Higher risk trades are taken once sufficient surplus/profit is built.

SEBI mandates no return promises and hence we cannot guarantee a return. What we do is have a hurdle rate. Hurdle rate is the return the funds would have made in a risk-free investment or the opportunity cost. It stands at 6% for us. If we make a return more than 6%, we will charge a performance fee.
We predominantly charge fees in 2 ways. One is management fees which is a % of the AUM and other is performance fees, which is % of profits made.
It will all depends on the investment plan we arrive at for you as well as what Risk Profile you are categorized in. But to put things in perspective, we might look at a range between 5% – 30%
Even though your Risk Profile might be RP1 to RP4, we will mostly start with RP1 trades for everyone and based on account surplus, we will start moving up the risk ladder. Also, once a drawdown happens, we will lower the risk and recover the loss before moving up again.
Each trade is designed to have a Risk Reward of >1.5 and a maximum possible loss of 5-10K initially which is 1-2% of your capital or margin. Higher risk trades are taken once sufficient surplus/profit is built.

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