Five Element Financial Investment Strategy
Five Element Financial Investment Strategy
by S Bhattacharya, PhD
At ASK FINTECH, we utilize a proprietary 5-Element Framework (Pancha Bhoota) to design portfolios.
We balance:
Earth (Stability/Real Estate), Sky (Protection/Gold), Air (Growth/Equities), Fire (Speculation/High-Yield), Water (Liquidity/Cash Flow)
Here is a formal draft of the Investment Accounting & Advisory Agreement.
This document incorporate proprietary 5-Element Framework definitions and your specific 2% / 11% fee structure.
DRAFT OF LEGAL CONTRACT
DOCUMENT TYPE: INVESTMENT ACCOUNTING & STRATEGY MANDATE
VERSION: 1.0 (ASK FINTECH)
INVESTMENT ACCOUNTING & STRATEGY AGREEMENT
THIS AGREEMENT is made on this _____ day of __________, 2025,
BETWEEN:
1. ASK FINTECH, a firm represented by its CEO, S. Bhattacharya, PhD (hereinafter referred to as the "Investment Accountant" & "Advisor").
AND
2. [CLIENT NAME] (hereinafter referred to as the "Client").
(Collectively referred to as the "Parties").
1. SCOPE OF SERVICES: THE 5-ELEMENT FRAMEWORK
1.1 Proprietary Methodology: The Client engages the Investment Accountant to design, monitor, and balance an investment portfolio based on the Advisor’s proprietary "Pancha Bhoota" (5-Element) Framework.
1.2 Asset Class Definitions: The Parties agree to the following strict definitions for asset allocation:
* (a) Earth (Stability): Strictly defined as Land, Independent Real Estate, or Buildings where the Client holds land rights. Apartments and flats are excluded from this category as they represent "air rights" and depreciating concrete.
* (b) Sky (Insurance): Physical Gold, Silver, Platinum, or Palladium. Digital holdings are permitted only if backed by a vault (e.g., Augmont) with guaranteed physical withdrawal rights.
* (c) Air (Growth): Intangible assets including Equities, ETFs, Cryptocurrencies (Bitcoin/Ethereum), and stocks of Established Startups.
* (d) Fire (Speculation): High-yield/High-risk assets including Venture Capital, Luxury Collectibles (Watches/Art), and Speculative Crypto assets.
* (e) Water (Liquidity): Yield-generating debt instruments including FDs, Government Bonds, and Corporate Debentures. This category shall not include volatile equities.
1.3 Client Profile Mandate: Based on the "Investor Elemental Profile Assessment," the Client is classified as a [FORTRESS / BUILDER / MAVERICK], which dictates the target allocation percentages.
2. CUSTODY & AUTHORITY
2.1 Non-Custodial Role: The Investment Accountant shall act in an advisory and accounting capacity. The Advisor does not hold physical custody of the Client's funds or assets. All assets remain in accounts titled in the Client’s name.
2.2 Execution Authority: The Client grants the Advisor limited power of attorney to execute trades and rebalance the portfolio to maintain the agreed-upon 5-Element ratios (e.g., selling "Air" to buy "Water" during market volatility).
3. COMPENSATION & FEES
In consideration for the Investment Accounting and Strategy services, the Client agrees to the following Fee Structure:
3.1 Annual Investment Accounting Fee (Base Fee):
The Client shall pay a fixed annual fee of 2.00% of the total Assets Under Management (AUM).
* Calculation: This fee is calculated based on the market value of the Portfolio on the anniversary date of this Agreement.
* Purpose: This covers the strategic management of the "Earth" and "Water" foundations and ongoing portfolio accounting.
3.2 Alpha Performance Fee (Incentive Fee):
In addition to the Base Fee, the Advisor is entitled to a Performance Fee based on the "High Water Mark" principle.
* Hurdle Rate: 12.00% Return on Investment (ROI) per annum.
* Performance Fee Rate: 11.00% of the Net Profits in excess of the Hurdle Rate.
* Calculation: (Total ROI % - 12%) × 11% = Performance Fee %.
* Example: If the Portfolio achieves a 22% ROI, the Performance Fee applies only to the 10% excess return.
3.3 Payment Terms: Fees shall be invoiced annually. The Client authorizes the deduction of fees from the "Water" (Liquidity) allocation where possible.
4. RISK DISCLOSURE & RED LINES
4.1 The "Fire" Cap: The Advisor shall not allocate more than [5% / 10% / 15%] (based on Profile) of the portfolio to "Fire" assets. The Client acknowledges that "Fire" assets carry a risk of total loss.
4.2 The "Water" Floor: The Advisor shall maintain a minimum "Water" allocation of [10% - 25%] to ensure liquidity. The Client acknowledges that reducing "Water" below this threshold violates the strategy and risks liquidity crises.
4.3 Market Volatility: The Client acknowledges that "Air" assets (Crypto/Stocks) are volatile. The Advisor utilizes "Earth" and "Sky" assets to hedge this risk, but cannot guarantee protection against all market losses.
5. TERMINATION
5.1 Either Party may terminate this Agreement with 30 days' written notice.
5.2 Upon termination, any accrued Base Fees and pro-rated Performance Fees (if the portfolio is above the Hurdle Rate at the time of termination) shall become immediately due.
IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.
SIGNED BY:
S. Bhattacharya, PhD
CEO, ASK FINTECH
Investment Accountant
[CLIENT NAME]
Client