Portfolio Management Services

    - I am confused what stocks should I buy ??


Portfolio management services are meant for individuals who wish to have a personalized management of their finances. A team of expert professionals conduct extensive and research and an in-depth analysis on markets to provide a customized solution to the investors. The investment solutions provided by PMS cater to a niche segment of clients. The clients can be individuals or institutional entities with high net worth.

PMS have evolved to become one of the top investment vehicles in India in the last decade. Several domestic and foreign players are present in this space which continues to grow rapidly. As per Securities Board of India the assets under management of discretionary portfolio management service have doubled in the last one year to Rs 40,000 crore.

PMS is a tailor-made professional service offered to cater to the investments objective of different investor classes. Simply put, a portfolio management service provides professional management of to create wealth for investors. The PMS service providers offer various strategies ranging from large cap, small & mid cap, flexi cap etc to suit the specific needs of the investors.

 

Once the investor has chosen the investment strategy based on his risk-return profile, strategy features and other details, PMS investor and the portfolio manager enter into an agreement. The agreement list down the roles and responsibilities of the portfolio manager and is legally binding for both the parties.

The portfolio manager than creates the portfolio of stocks (or fixed income instruments/debentures) for the investor. The minimum investment amount is Rs 25 lakhs as per new guidelines issued by SEBI which can be paid in either cheque or bank transfer or stocks worth this amount. The portfolio of stocks bought for the investor are then housed in a demat account opened in the name of investor only.

While there is a limit on exposure to individual stocks in a mutual fund, a PMS portfolio can make a far more aggressive allocation to any particular stock if he so decides. For example, it is possible to construct a portfolio of 10-15 stocks on a PMS platform, but not under the mutual fund platform.

Today, most PMS service providers use technology to provide a very transparent view of the existing client portfolio by providing a web page with login details for every client. This way the client can access and review his portfolio 24x7.

A prudent portfolio manager will identify good long-term investment ideas for the investor. Also, a professional portfolio manager will be able to take dispassionate calls about each stock in the portfolio and enter and exit stocks at the right time, which most investors find difficult to do on their own.

Thus PMS provides a hassle-free, transparent and customised platform for investor participation in equity markets. For those investors who are actively tracking the markets and like to understand how their money is being managed, PMS offers a great platform.

 

Religare All Star Portfolio

Investment Philosophy

Religare All Star Portfolio aims to provide investors benefits of an institutionalized approach to equity portfolio management by investing across investment styles in portfolios managed by best of class portfolio managers.

Key aspects of our institutionalized approach are:

Stringent portfolio manager selection process

Extensive due-diligence to determine the best of class managers.

 

Managers selected must have:

a. An identifiable edge and performance track record across market cycles

b .A robust and distinctive investment process, and

c .Adherence to global best practices in risk management

 

Dynamic allocations

a. Investment allocation across styles reviewed periodically (biannually unless warranted earlier due to market conditions)

b. Basis prevailing macroeconomic environment, detailed suitability assessment of underlying styles done and allocations recalibrated if required

 

Periodic manager reviews

  1. A comprehensive reviewed on every year to ensure chosen managers continue to meet our stringent selection criteria.

 

Strategy Allocation

Scheme Name

Allocation

Strategy

Motilal Oswal NTDOP

33.33%

Mid & small-cap, value style portfolio with a focus on identifying emerging stocks/sectors which are a part of the Next Trillion Dollar GDP growth opportunity.

ASK Growth Portfolio

33.33%

Multi cap strategy with Growth style of investing with equal focus on the following business attributes:

-Size of company, Quality of Business, Earnings growth.

RPMA Multicap

33.34%

Value Multi cap strategy with blend style of investing. Growth at Reasonable Price (GARP) strategy used to identify portfolio stocks. 15% of the portfolio may be invested in a satellite strategy which looks at benefitting from special situations like corporate actions, recovery situations or out of flavour stocks which may provide significant returns over time.

 

Motilal Oswal NTDOP PMS

The Portfolio works on the Investment philosophy – “BUY RIGHT. SIT TIGHT”

 

How do I buy right

·         Quality : Quality of business and management

·         Growth : Growth in earnings and sustained RoE (Return on Equity)

·         Longevity : Longevity of the competitive advantage /economic moat of the business

·         Price : Buying a good business for a fair price rather than buying a fair business for a good price.

 

How to I sit tight

·         Buy and Hold: We are strictly buy and hold investors and believe that picking the right business needs skill and holding onto these business to enable our investors to benefit from the entire growth cycle, needs even more skill.

·         Focus: Our portfolios are high conviction portfolios with 15 to 25 stocks being our ideal number. We believe in adequate diversification but over-diversification results in diluting returns for our investors and adding market risk.

 

Next Trillion Dollar Opportunities PMS

The strategy aims to deliver superior returns by investing in focused themes which are part of the Next Trillion Dollar GDP growth opportunity. It aims to predominantly invest in Small & Mid Cap stocks with a focus on Identifying Emerging Stocks/Sectors.

 

Key Product Features :

Name

NTDOP Strategy

Minimum Initial Investment Amount – Lump sum

Rs. 25 lakhs

Exit Load

1st Year – 2%

Fee Structure (Lump sum)

Setup fee – 1% of the Investment Amount

Annual Management Fee – 2.5% per annum

Benchmark

CNX MIDCAP

Date of Inception

11th Dec. 2007

Fund Manager

Manish Sonthalia – Head Equity PMS

 

Top 5 Holdings*

Sr. No.

Name of Instrument

% to Net Assets

1

Eicher Motors Ltd.

15.17%

2

Page Industries Ltd.

13.63%

3

Bajaj Finance Ltd.

8.93%

4

Bosch Ltd.

8.49%

5

Hindustan Petroleum Corporation Ltd.

7.34%

 

Top 3 Sectors*

Sector / Rating

% to Net Assets

Banking & Finance

25.99%

Auto & Auto Ancillaries

23.66%

FMCG

23.33%

*latest holdings & sector allocation may differ


 

 

 

 

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