About Motilal Oswal Securities Limited

Motilal Oswal Securities Ltd.
Comparative analysis of organizations

offering PMS via-a-vis MOSt
ABOUT MOTILAL OSWAL SECURITIES LIMITED
Motilal Oswal Securities Ltd (MOSt) is one of the leading equity research and
investment houses of India, with strength in equity research, analysis & recommendation
and efficient trade execution for serving the customer. It is known for its strong belief in
Value-Investing ideas, which forms the core of its investment philosophy. MOSt provides
end-to-end equity solutions to institutional and individual investors. Consistent delivery of
high quality advice on individual stocks, sector trends and investment strategy has
established Inquire as a competent and reliable research unit amongst leading Indian as well
as International investors. Asia Money Broker's Poll 2002 has rated MOSt as one of the best
Indian broking house, for research, for the second time since 2000.
MOSt has distinguished itself by its close relationship with some of the leading Foreign
and Domestic Institutional Investors like Morgan Stanley, Battery March, EMIC, UTI, LIC,
Alliance, ICICI Prudential, HDFC MF, Birla MF etc.
MOSt Mission
The attitude to look for value, to look beyond the realms of stock market, a different
mindset that is not influenced by the market trends, but banks on the power of intellect.
MOSt Vision
To become a well respected global financial company by assisting investors create
wealth in stock market worldwide.
MOSt Guiding Principles and Core Values
Customer interest is paramount
Ethical and transparent business practices
Respect for professionals, associates and business partners
Research based value investing
Cutting edge technology to ensure world-class customer service
1
Motilal Oswal Securities Ltd. Comparative analysis of organizations
INTRODUCTION TO PMS
The Search Begins

We scour the horizon in search of money-multiplying tools. But after visiting all the usual
suspects – savings accounts, fixed deposits, bonds, government instruments like PPF and NSC
– we still find our money is just about keeping its head above the water (more so in the low-
interest era that is here to stay).
So, we broaden our perspective… we explore real estate, precious metals, plantations and
timeshares. Alluring as these may seem, they carry risks that often far outweigh the rewards.
A few zillion calculations and opinions later we come to the realization that over a period of
time, it is only equity that offers us the best investment option… giving the best returns over a
length of time – and with the least hassles.
But woe is it. Either we don’t have the time that is oh so essential to analyse and invest in the
market; or we simply don’t understand how it all works.
This is the ticket to the most hassle-free way of managing and growing money. PMS. .
Financial planning process
Patience above all else

If there is one place where patience is truly a virtue, it is the stock markets! In fact, patience and
discipline are the two most non-negotiable values for a winning investor. It has been consistently
proven that the wealthiest investors the world over, were the ones who stayed invested over
significant lengths of time.
Investment is a trade-off where the odds become better as the investment period
increases.
Time isn’t just a great healer; it’s also a fantastic multiplier.
2
What is PMS?
PMS is nothing but Portfolio Management Service. Where a complement of experienced
professionals invest your money in equity markets and other instruments, with the solitary focus
of growing your money at an appreciable rate.
Think of it as setting out on a long distance journey. You could drive the car yourself or you
could leave the job to a skilled and experienced chauffeur. That way, negotiating all those
arduous road conditions, tanking up and ensuring the smooth running of the car is transferred to
the one who knows better. You reach your destination with complete peace of mind.
Advantage of investing in PMS vis a vis Mutual Fund?
 The client has control over the asset allocation which is automatic in a Mutual Fund.
The portfolio can be customized to suit the client's risk return profile.
 The client has access to the Potfolio Manager which is not possible in a Mutual Fund.
 The Portfolio Manager has the flexibility to move into cash as and when required
depending on the market view.
The calculations of various charges are more transparent vis-à-vis a Mutual Fund.
3
ENVIRONMENTAL SCANNING
i)INDIA INFOLINE
Corpus – Rs 30 crores
India Infoline was founded in 1995 by a group of professionals with impeccable educational
qualifications and professional credentials. At the helm are directors Nirmal Jain and
R.Venkataraman.
Nirmal is a Chartered Accountant who has ranked 2nd across India. He is also a Cost
Accountant and has to his credit a PGDM from IIM Ahmedabad. Prior to setting up India
Infoline, he pursued a successful career at Hindustan Lever where he was, inter alia, handling
the commodities exports business. Venkat is a B.Tech from I.I.T Kharagpur and also has a
PGDM from IIM Bangalore. He has previously worked with bluechips like ICICI and
Barclays among others.
The India Infoline group addresses the entire gamut of investing needs. In addition to its PMS
and trading related services through 5paisa, it offers investment avenues such as Mutual
Funds, Fixed Deposits, GOI Relief bonds, Post Office savings and Life Insurance, through its
other subsidiary companies. In fact, India Infoline is the leading corporate agent of ICICI
Prudential Life Insurance Company, which is, in turn, India’s No.1 private sector life
insurance company.
India Infoline’s institutional investors include Intel Capital (world’s leading technology
company), CDC (promoted by UK government), ICICI, TDA and Reeshanar.
5paisa is the trade name of India Infoline Securities Pvt. Ltd, a wholly owned subsidiary of
India Infoline Ltd. (India Infoline). With a strong brand equity in online trading, 5paisa holds
membership of both the leading stock exchanges of India, viz. the BSE and the NSE, and is
also a depository participant with NSDL.
5paisa offers stockbroking services online through the Internet, as well as offline through
Investor Points all over India, adhering to very strict standards of compliance. 5paisa does not
take any proprietary positions in any stock. Its internationally acclaimed research is available
on www.indiainfoline.com. The site has emerged as the most popular web site on Indian
business and finance. A publication, no less than Forbes has recommended it in their ‘Best of
the Web’ list under the Asian Investing category.
Investment Philosophy
Investment philosophy is best summarized by the "prudent investor rule,"

"Investing requires the exercise of reasonable care, skill, and caution, and is to be applied to
investments not in isolation but in the context of the portfolio and as a part of an overall
investment strategy, which should incorporate risk and return objectives reasonably suitable".
4
Members of Investment Committee
 Nirmal Jain - CA, IIM Ahmedabad

 R Venkataraman - IIT Khargapur, IIM Bangalore
 Anand Tandon - IIT Kanpur, IIM Ahmedabad
 R Venkat Subramanian - CA
Reports
All Portfolio Clients will receive the following reports on a fortnightly basis:
o Model Portfolio Performance Report

o Sector Wise Allocation report
o Performance of Portfolios vis a vis the benchmark indices
o Transaction Statement
o Quarterly Review Report
No.of clients- 160
Schemes
5P Momentum
The main objective of this scheme is to generate capital appreciation through short term to
medium term investments in equities and equity related instruments. The investment choice
will be primarily influenced by technical factors like price and volume indicators, RSI,
MACD, and other studies. Secondary factors will be reasonable levels of market
capitalisation, good liquidity, competitive position in the industry, sectors with good growth
prospects, etc. These investments will seek to achieve optimum returns through investments
across companies and sectors that have the potential to generate adequate returns over medium
term. The Portfolio Manager may invest in Futures and Options to hedge, to generate returns,
to balance the portfolio or otherwise. The scheme is aimed at higher risk taking investors with
a short to medium term perspective.
5P Growth
The main objective of the scheme is to generate capital appreciation through investments in
equities with a long term perspective. The scheme will invest in all equity and equity related
instruments with emphasis on fundamentally sound, well researched blue chip companies
perceived to be undervalued from the point of view of their long term growth prospects. The
focus will be on medium to large capitalisation companies which have a proven track record
of earnings capability, quality management, leadership status in sectors or potential to achieve
such status, etc and that have the potential to deliver growth over the long term. The scheme is
aimed at medium risk taking investors willing to invest in companies over a long-term period.
5
Fee Structure
2%p.a.payable
Rs 5 lacs - Rs
qtr+20% profit 0.5% brokerage
25 lacs
sharing for 5P
Growth,0.25%
1%p.a.payable brokerage for
> Rs 25 lacs qtr+10% profit 5P Momentum
sharing
6
Comparative Performance of 5P-PMS vis-a-vis

the Indices and Top 5 Mutual Funds
100.00%
93.50%
90.00%
80.00%
70.00%
62.80%
60.00%
50.00% 45.71%
45.65%
36.88%
40.00% 36.16% 36.60%
Nifty
Sensex
30.00% Magnum Global
22.70%
21.60% Magnum Contra
20.00% Canexpo
Taurus Starshare
Reliance Growth
Magnum Contra
Magnum Global
5P-Momentum
Taurus Starshare
5P-Growth
10.00%
Reliance Growth
Canexpo
Sensex
5P-Growth
Nifty
0.00%
5P-Momentum
Period of Comparison : 6 months ended April 1, 2005.
Figure 1 : Comparative performance of 5P PMS vis-à-vis the indices & top 5
Mutual funds
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ii)SSKI – SHAREKHAN
Sharekhan, India's leading stockbroker is the retail arm of SSKI, an organization with over
eight decades of stock market experience. India's largest distribution network with more
than 290 share shops in over 120 cities and a strong presence on the Internet through, India's
premier online trading destination, we reach out to customers like no one else. Its research team
has been rated as one of the best in the country. Voted four times as the best Top domestic
Brokerage house by the Asia money Survey, SSKI is consistently ranked amongst the Top
domestic brokerage houses in India.
Mr. Dinshaw Irani who heads Portfolio Management team brings with him over 14 years of
experience in investment research and portfolio management business. Prior to joining Share
khan, he worked as the Vice president - Equity research with Alliance capital based in
Mumbai, India. He earned his graduate degree in accounting from Delhi University with
honors and his MBA in finance from IRMA, a leading Indian Management Institute.
Corpus – Rs.120 crs
No.of clients – more than 100
PMS schemes
1.The Blue Chip Scheme -

Under this scheme we invest in stocks covering the following criteria:
a. Relative Leaders in their industry

b. Strong management track record
c. Consistent performers on sales & profit parameters
d. Fundamentally strong balance sheets
e. Relatively larger market capitalisations
f. Lower relative valuations as compared to the peer group
- Ideal for long term investors with a low risk appetite
2. The Aggressive Scheme

This scheme brings in high-growth stocks fulfilling any of the following:
a. High growth in profitability expected in the future

b. Turnaround expected in the future
c. Expected change in the management leading to changed fortunes
d. Relatively low valuations
e. Mid to small caps
- Ideal for investors looking for above average gains and with a high risk appetite
8
3. The Balanced Scheme

Will invest in:
a. A mix of Blue Chips & growth stocks
b. Ensuring a balanced portfolio with a relatievely median risk profile
c. The mix will depend upon the clients risk profile
- Ideal for investors looking for healthy gains but have a limited risk appetite.
4. The Dividend Yield Scheme

Will invest only in stocks fulfilling all of the following:
a. Yield to be in excess of 4%
b. Should be fundamentally sound
c. Past track record equally important
d. Sound Industry prospects
- Ideal for investors wanting to deploy idle cash for tax-free returns with limited risk.
Fee Structure
2.5%p.a.+20%profit
Rs.25 Lacs-50
sharing if 0.5%brokerage
Lacs
returns>15%
2%p.a.+20%profit
>Rs.50 Lacs sharing if 0.5% brokerage
returns>15%
9
Returns
10
iii)PRUDENTIAL ICICI
Corpus - Rs 800 crore
No. of clients – 800
Investment Team
7 member Investment Committee including 5 Fund Managers

Stability in the Investment Team
Strong and robust investment process and risk management guidelines
Shahzad Madon – Sr Vice President & Business Head - PMS

Heads Portfolio Management Services
An MBA, started his career with ICICI Ltd
At Prudential ICICI AMC, he has worked in varied roles such as Head of Research and
Equities.
Aniket Inamdar – Senior Fund Manager

Joined Prudential ICICI PMS team in September 2003
A mechanical engineer and an MBA from IIM Ahmedabad
Experience in the fund management industry for 8 years
Ashi Anand – Fund Manager

Working with Prudential ICICI PMS since October 2002.
He is an MBA from Xaviers Institute of Management
Manish Mahore - Fund manager (Structured Products)

Has 5 years of industry experience
A Mechanical Engineer and MBA in Finance.
Amit Gupta – Fund Manager (Structured Products)

Worked with Reliance Treasury for approx 2 years
He is an MBA from S P Jain Institute of Management and B Tech (Chemical) from IIT Delhi.
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Schemes
Prudential ICICI PMS: Aggressive Portfolio
Positioning The Equity Portfolio is a diversified portfolio that

endeavours to generate absolute returns.
Investor The Equity Portfolio is suitable for investors with a

Profile medium to high risk appetite and an investment
horizon of above 12 to 18 months.
Investment • While the portfolio would comprise primarily

Philosophy / large cap stocks, the flexibility to invest in mid-
Methodology cap/momentum stocks is retained.
• The portfolio is generally well diversified in
terms of both stock and sectors. However,
aggressive stock or sector positions may be
taken at points in time.
• The portfolio may be actively traded to take
advantage of certain market trends with an
endeavour to enhance returns.
• In case of a continued decline in markets, active
asset allocation (i.e. switching between equity,
fixed income and cash) may be undertaken in an
attempt to preserve the clients capital. Derivative
instruments may also be utilised towards this
end.
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Features Domestic Non-
Clients Resident
Indians
Minimum Portfolio Rs. 50 lacs Rs. 100 lacs

Size
Management fee (% 2.5 % p.a. 3.0% p.a.

p.a. on the average
daily portfolio value,
payable quarterly)
Entry / Exit Load Nil Nil
Lock-in Period Nil Nil
Services • Daily reporting of portfolio statement,

Offered transaction details, performance summary etc.
over a password protected website.
• Transaction details provided before all advance
tax payment dates.
• Annual audited portfolio statement and
transaction details.
13
Prudential ICICI PMS: Dividend Yield Portfolio
Positioning The Dividend Yield portfolio endeavours to achieve growth

in the clients portfolio through a combination of dividend
income and capital appreciation
Suitability The Dividend Yield Portfolio is suitable for investors with a

medium risk appetite with an investment horizon of above 18
to 24 months.
Investment • The Dividend Yield Portfolio will invest primarily in

Philosophy / companies that are quoting at an attractive dividend yield.
Methodology • Companies quoting at a high dividend yield are generally
attractively valued on other parameters such as price /
earnings, price/book, price/cash flow and have strong
fundamentals. This provides the potential for capital
appreciation as the market begins to realise the
attractiveness of these companies.
• The abovementioned rerating (if any) tends to happen in a
non-linear fashion. The performance of the Dividend
Yield portfolio may thus not move in line with the overall
markets, and could significantly under or outperform the
markets at various points in time.
• A decline in the share price for high dividend yield stocks
increases the yield, making investments even more
attractive. This tends to limit the downside on such
stocks.
• Both quantitative and qualitative parameters will be
considered in the investment decision. These include the
dividend track record, sustainability of dividend payouts,
management quality, industry fundamentals, liquidity etc.
• The portfolio will comprise both large and mid cap
companies with the endeavour to strike a balance between
liquidity and the potential for higher returns.
• Investments will be made with a long-term perspective.
Churning is thus expected to be low.
• In case of a continued decline in markets, active asset
allocation (i.e. switching between equity, fixed income
and cash) may be undertaken in an attempt to preserve the
clients capital. Derivative instruments may also be
utilised towards this end.
14
Features Domestic Clients Non-Resident

Indians
Minimum
Portfolio Size Rs. 50 lacs Rs. 100 lacs
Management fee 2.5 % p.a. 3.0% p.a.
(% p.a. on the
average daily
portfolio value,
payable
quarterly
Entry / Exit Nil Nil

Load
15
Services • Daily reporting of portfolio statement, transaction details,

Offered performance summary etc. over a password protected
website.
• Transaction details provided before all advance tax
payment dates.
• Annual audited portfolio statement and transaction
details.
Prudential ICICI PMS: Deep Value Portfolio
Positioning The objective of the portfolio is to generate capital gains over the
long term, by investing in a diversified portfolio of undervalued
stocks.
16
Suitability The Deep Value Portfolio is suitable for investors with a medium to
high-risk appetite and an investment horizon of above 18 to 24
months.
Investment • The aim is to invest in companies that are significantly

Philosophy/ undervalued. Various parameters may be used to judge the
Methodology degree of undervaluation of the stocks including, but not limited
to, price/earnings (p/e), price/book (p/book), dividend yield
(DY), price/cash flow, replacement cost, valuations relative to
history/sector/markets, etc.
• Due attention will be paid to qualitative parameters such as
management quality, industry prospects, liquidity etc.
• Companies that are significantly undervalued have the potential
of being rerated as the markets begin to realise the extent of their
undervaluation. However, any such rerating tends to happen in a
non-linear fashion. The performance of the Deep Value Portfolio
may thus not move in line with the overall markets, and could
significantly under or outperform the markets at various points
in time.
• The portfolio may have a significantly higher weightage in mid
cap stocks.
• In case of a continued decline in markets, active asset allocation
(i.e. switching between equity, fixed income and cash) may be
undertaken in an attempt to preserve the clients capital.
Derivative instruments may also be utilised towards this end.
17
Features
Domestic Clients Non-Resident
Indians
Minimum Portfolio Size Rs. 50 lacs Rs. 100 lacs
Management fee (% p.a. 2.5 % p.a. 3.0% p.a.

on the average daily
portfolio value, payable
quarterly)
Entry / Exit Load Nil Nil
Services • Daily reporting of portfolio statement, transaction details,

Offered performance summary etc. over a password protected website.
• Transaction details provided before all advance tax payment
dates.
• Annual audited portfolio statement and transaction details.
18
PMS Quarterly Performance Analysis as on 16-May-05

TimeFrame PMS Deep S&P CNX Nifty Relative
Value Performance
Absolute returns since 228.1% 76.7% 151.3%
inception
CAGR since inception 91.5% 36.5% 55.0%
For the year 2003
Q3, 2003 (17 July - 30 Sep 32.1% 21.5% 10.6%
2003)
Q4 ,2003 60.7% 34.3% 26.5%
YTD 2003 performance 112.3% 63.2% 49.1%
For the year 2004
Q1, 2004 -17.8% -5.7% -12.1%
Q2, 2004 3.9% -15.0% 19.0%
Q3, 2004 28.4% 15.9% 12.4%
Q4, 2004 34.0% 19.2% 14.8%
YTD 2004 performance 46.9% 10.7% 36.2%
For the year 2005
Q1, 2005 5.2% -2.2% 7.3%
Q2, 2005 6.1% -1.1% 7.2%
YTD 2005 performance 11.6% -3.3% 14.8%
19
TimeFrame PMS Dividend S&P CNX Relative
Yield Nifty Performance
Absolute returns since inception 278.4% 88.9% 189.5%
For the year 2003
Q1, 2003 (20 Feb - 31 Mar 2003) -2.6% -8.2% 5.6%
Q2 , 2003 47.9% 15.9% 32.0%
Q3, 2003 33.1% 23.4% 9.7%
Q4, 2003 47.5% 34.3% 13.2%
YTD 2003 performance 183.0% 76.4% 106.6%
For the year 2004
Q1, 2004 -7.6% -5.7% -1.9%
Q2, 2004 -4.7% -15.0% 10.4%
Q3, 2004 19.1% 15.9% 3.2%
Q4, 2004 25.3% 19.2% 6.1%
YTD 2004 performance 31.5% 10.7% 20.8%
For the year 2005
Q1, 2005 -3.6% -2.2% -1.5%
Q2, 2005 5.5% -1.1% 6.7%
YTD 2005 performance 1.7% -3.3% 5.0%
20
TimeFrame PMS Aggressive S&P CNX Relative
Nifty Performance
Absolute returns since 389.1% 62.0% 327.0%
inception
For the year 2000
Q4, 2000 (22 Dec - 31 Dec 1.7% 1.7% -0.1%
2000)
YTD 2000 performance 1.7% 1.7% -0.1%
For the year 2001
Q1, 2001 -0.2% -9.1% 9.0%
Q2, 2001 5.8% -3.5% 9.3%
Q3, 2001 -11.1% -17.5% 6.4%
Q4, 2001 22.0% 15.9% 6.1%
YTD 2001 performance 14.5% -16.2% 30.7%
For the year 2002
Q1, 2002 23.6% 6.7% 16.9%
Q2, 2002 4.2% -6.4% 10.6%
Q3, 2002 -14.1% -9.7% -4.4%
Q4, 2002 19.6% 14.5% 5.1%
YTD 2002 performance 32.3% 3.3% 29.1%
For the year 2003
Q1, 2003 -4.6% -10.5% 6.0%
Q2 , 2003 30.3% 15.9% 14.3%
Q3, 2003 30.8% 23.4% 7.3%
Q4, 2003 46.1% 34.3% 11.8%
YTD 2003 performance 137.4% 71.9% 65.5%
For the year 2004
Q1, 2004 -3.7% -5.7% 2.1%
Q2, 2004 -10.9% -15.0% 4.1%
Q3, 2004 19.9% 15.9% 4.0%
Q4, 2004 24.7% 19.2% 5.5%
YTD 2004 performance 28.3% 10.7% 17.7%
For the year 2005
Q1, 2005 1.6% -2.2% 3.8%
Q2, 2005 2.5% -1.1% 3.7%
YTD 2005 performance 4.2% -3.3% 7.5%
21
MODEL PORTFOLIO FOR DIVIDEND YIELD 1-May-05

PORTFOLIO AS ON
SECTOR STOCKS MARKET STOCK SECTOR
RATE WEIGHT WEIGHT
AUTO 5.26%
1 ASHOK LEYLAND 23 3.08%
1 HERO HONDA MOTORS LTD 504 2.18%
CAPITAL GOODS 14.82%
1 HINDUSTAN CONSTRUCTION 581 4.50%
COMPANY LIMITED
1 BLUE STAR LTD 282 4.15%
1 ALFA LAVAL LIMITED 693 3.66%
1 THERMAX LIMITED 634 2.51%
CHEMICAL 5.20%
1 ICI INDIA LIMITED 225 2.92%
1 GUJARAT NARMADA VALLEY 72 2.28%
FERTILIZERSCOMPANY
FINANCE 13.80%
1 INDIAN OVERSEAS BANK 71 4.89%
1 UNION BANK OF INDIA 97 4.76%
1 VIJAYA BANK 57 4.15%
FMCG 4.89%
1 GLAXOSMITHKLINE 340 3.05%
CONSUMER HEALTHCARE LTD.
1 GODREJ CONSUMER PRODUCT 279 1.84%
LTD.
OIL & GAS 12.81%
1 OIL AND NATURAL GAS 811 3.90%
CORPORATION LIMITED
1 CHENNAI PETROLEUM 220 3.77%
CORPORATION LTD
1 HINDUSTAN PETROLEUM 303 2.01%
LIMITED
1 BONGAIGAON REFINERY AND 93 1.59%
PETROCHEMICALS LTD
1 KOCHI REFINERIES LIMITED 154 1.54%
OTHERS 18.38%
1 ADOR WELDING LIMITED 137 4.34%
1 SALORA INTERNATIONAL 123 3.39%
1 HEG LTD 126 3.08%
1 BALAJI TELEFILMS LIMITED 100 2.88%
1 POLYPLEX CORPORATION 165 2.77%
LIMITED
1 FINOLEX CABLES LIMITED 215 1.92%
22
SHIPPING 7.43%
1 VARUN SHIPPING COMPANY 39 3.98%
LIMITED
1 G. E SHIPPING 162 3.45%
TECHNOLOGY 8.56%
1 HCL INFOSYSTEMS LIMITED 755 5.49%
1 HCL TECHNOLOGIES LTD 335 3.07%
28 TOTAL EQUITY POSITION 91.15%
CASH POSITION 8.85%
MODEL PORTFOLIO FOR DEEP VALUE

PORTFOLIO AS ON 1-May-05
RATE WEIGHT WEIGHT
AUTO 4.96%
1 CEAT LTD 93 2.88%
1 BHARAT GEARS LIMITED 65 2.08%
1 TEXMACO 314 5.16%
COMPANY LIMITED
1 GREAVES LTD 130 3.44%
1 TORRENT CABLES LIMITED 116 1.90%
CEMENT 12.86%
1 BIRLA CORPORATION LTD 167 3.68%
1 KESORAM INDUSTRIES 119 3.38%
LIMITED
1 INDIA CEMENTS LIMITED 68 3.16%
1 JAIPRAKASH ASSOCIATES 181 2.64%
CHEMICAL 3.83%
1 GUJARAT ALKALIES AND 138 2.27%
CHEMICALS
1 GUJARAT NARMADA VALLEY 72 1.44%
FERTILIZERSCOMPANY
1 INDO GULF FERTILIZERS 114 0.12%
LIMITED
FINANCE 2.77%
1 STATE BANK OF INDIA 585 2.77%
METAL 6.80%
1 UTTAM GALVA STEEL LTD 50 2.35%
1 TATA SPONGE IRON LTD 184 2.23%
1 GUJARAT MINERAL 316 2.22%
DEVELOPMENT
CORPORATION LIMITED
OIL & GAS 2.82%
23
1 CHENNAI PETROLEUM 220 2.82%
CORPORATION LTD
OTHERS 30.49%
1 SINTEX INDUSTRIES LIMITED 500 4.31%
1 NATIONAL RAYON 48 4.16%
1 SALORA INTERNATIONAL 123 3.60%
1 MAN INDUSTRIES INDIA 140 3.39%
LIMITED
1 UPPER GANGES SUGAR 194 3.13%
1 SIEL SUGARS LIMITED 70 3.00%
1 ORIENT PAPER AND 131 2.90%
INDUSTRIES LTD
LIMITED
1 SURYALAKSHMI COTTON 162 2.33%
MILLS LTD
1 RAJVIR INDUSTRIES LTD 162 1.17%
PHARMA 1.09%
1 IPCA LABORATORIES LIMITED 321 1.09%
SHIPPING 3.72%
LIMITED
TECHNOLOGY 1.87%
1 MASTEK LTD 337 1.87%
CASH POSITION 14.81%
24
MODEL PORTFOLIO FOR AGGRESSIVE PORTFOLIO 1-May-05
AS ON
RATE WEIGHT WEIGHT
AUTO 4.63%
1 MAHINDRA AND MAHINDRA 443 2.42%
LIMITED
1 CEAT LTD 93 2.21%
1 BHARAT HEAVY ELECTRICALS 792 4.12%
LIMITED
1 VOLTAS LIMITED 243 3.28%
1 SIEMENS LTD 1,831 3.02%
COMPANY LIMITED
1 TEXMACO 314 2.71%
1 GREAVES LTD 130 1.94%
CEMENT 10.76%
1 ULTRATECH CEMCO LIMITED 334 3.03%
1 GRASIM INDUSTRIES LIMITED 1,163 2.26%
1 INDIA CEMENTS LIMITED 68 2.11%
1 JAIPRAKASH ASSOCIATES 181 1.75%
1 BIRLA CORPORATION LTD 167 1.61%
CHEMICAL 5.35%
1 RELIANCE INDUSTRIES 528 3.53%
LIMITED
1 GUJARAT ALKALIES AND 138 1.82%
CHEMICALS
FINANCE 10.53%
1 STATE BANK OF INDIA 585 5.58%
1 HDFC LIMITED 731 2.72%
1 VIJAYA BANK 57 1.82%
1 INDIAN OVERSEAS BANK 71 0.41%
FMCG 3.60%
1 I T C LIMITED 1,438 3.60%
METAL 4.09%
1 TATA IRON AND STEEL 341 2.83%
COMPANY LIMITED
1 HINDUSTAN ZINC LTD 155 1.26%
OIL & GAS 5.57%
1 OIL AND NATURAL GAS 811 3.47%
CORPORATION LIMITED
1 KOCHI REFINERIES LIMITED 154 2.10%
25
OTHERS 12.99%
1 RADICO KHAITAN LIMITED 316 2.84%
1 NDTV 170 2.29%
1 BALRAMPUR CHINI MILLS LTD 57 2.28%
1 WELSPUN INDIA LIMITED 116 1.93%
1 BALLARPUR INDUSTRIES 103 1.89%
LIMITED
LIMITED
PHARMA 3.48%
1 DISHMAN 676 1.96%
1 IPCA LABORATORIES LIMITED 321 1.52%
SHIPPING 1.70%
LIMITED
TECHNOLOGY 7.95%
1 IFLEX SOLUTIONS LIMITED 604 3.16%
1 INFOSYS TECHNOLOGIES 1,887 2.87%
LIMITED
1 MASTEK LTD 337 1.92%
CASH POSITION 11.48%
26
iv)KOTAK SECURITIES
Corpus – Rs. 2000 crores
No. of clients – 675
Kotak Infinity Klassic
 Conservative Discretionary Portfolio Management Service

 The investment decisions, market timing and logistics management are all handled by KS.
 Broad Based Participation in Equity Markets by Creating a Well Diversified & Balanced
Equity Portfolio.
 Company weightage - Maximum of 20 - 30 stocks in the ratio of 7:3 in
Frontline and mid cap stocks.
 Fund Manager:Nikunj Doshi
Kotak Select Portfolio
 Aggressive Discretionary Portfolio Management Service

 Investments are made in the chosen stocks by the Fund management team at KS
 Company weightage - Maximum of 10 - 12 stocks, more of mid cap stocks.
 Fund Manager: Nikunj Doshi
Principal Guard Portfolio
 The objective of the scheme is to endeavour to preserve the investment and also
generate reasonable investment returns.
 It invests 60% of your money in fixed income instrument & the balance 40% is
invested in buying Nifty Options.
 The investments in options will be actively managed buy the Fund Management
Team with an attempt to take advantage of the volatility in the markets to earn
higher return
 Fund Manager:Sanjay Tantia
Dividend Yield Portfolio
 The objective of the scheme is to generate returns through a combination of

dividend income and capital appreciation through a optimally diversified
portfolio.
 Target stocks offering high dividend yield
 Focus on companies that have received huge cash inflow due to either asset sale
or hiving off businesses
 Fund Manager:Shashank Khade
27
Kotak Assist
 Non - Discretionery portfolio Management Service (i.e. discretion is with the

investor & not with the fund manager)
 Kotakstreet Assist Integrates your Trading, Demat and Bank Accounts for
convenience and Ease
 Unique Investment Service in - Equity; Derivatives ; Mutual Fund ; IPO's ;
Insurance ; Bonds
 Flexibility of allocating any amount of funds to an instrument depending on
changing market situations
 Fund Manager:Nikunj Doshi
28
v)IL&FS INVESTSMART
Total Corpus : Rs 80 cr
No of clients : 555
About IL & FS Investsmart Ltd.
 Promoted by IL&FS, one of India’s most innovative institutions.

 Equity stake and support by E*Trade and Soft Bank.
 Pan-India presence across 16 states through over 30 branches and 90 franchisees.
 Strong retail brand franchise.
The Investment Management Team

The average experience of the team members five years plus
Head – IAS & PMS
Manager Investment
PMS Analyst Mutual Fund Chief
(4) Analyst Dealer
MIS Database
Jr, Analyst MF F&O Technical
+ Dealer Analyst
Database
Investment Philosophy
1.Generate absolute positive investor returns irrespective of market conditions.

2.Buy businesses growing faster than market rates but trading below intrinsic worth.
3.Focus on key investment principles such as high average RoCE, modest dividend payouts.
4.Invest in sustainable long term under-researched/emerging investment opportunities ahead
of the market.
29
5.Use Cash as an effective money management tool.
Investment Methodology
 Adopt Model Portfolios to guide investments across products.

 Adopt a bottom-up approach to stock picking.
 Portfolio composition of between 20-30 stocks to provide sharper sector focus while
providing adequate diversification.
 Use balance sheet analysis, macro-analysis, sector research. Regular interactions with
corporate managements and monitor performances on quarterly basis.
 Combine domestic market focus with a global perspective.
IIL PMS Products
•High Risk : Dynamically managed product to capture medium term upsides from cyclical
factors, mis-pricing opportunities in the market.
•Medium Risk : Combines growth/value styles of investing in long term growth opportunities
across sectors and market caps.
•Low Risk : Endeavors to minimize risk and yet offer stable and modest returns, through
judicious mix of defensive stocks usually large cap, with modest dividend yields and growth
prospects.
•Tenure
– No lock-in period
– Tenure to be stipulated in advance (min. 1 year)
– Recommended period of investment (1 - 3 years)
•Minimum Portfolio Size
– ICP : Cash or stock option.
– Cash or Existing securities of Rs. 5 lakhs
•Management Fee :
ICP – 2 % p.a. of the total portfolio value.
Performance linked fee.
–10% p.a. of the returns on the portfolio
–20% p.a. of the returns on the portfolio
(On special products as per client needs)
•Brokerage
Upto 1% per transaction
•Other Expenses
Depository and Custodian
R&T and other charges
30
IIL-PMS : Other operating features
•Agreement between the client and IIL

•POA for operating bank account, DP account and effecting investment transactions.
•Separate bank account to be opened with the UTI Bank.
•Separate DP account with IL&FS DP.
•All costs, expenses and charges incurred in managing the portfolio to be charged to a/c on
actual basis.
•Portfolio manager will send monthly Performance Review Report to keep clients updated on
the portfolio
•There is also be a facility for real-time monitoring the portfolio through our website
IIL-PMS : NRI Clients

• Management Fees - 2% p.a. of the total portfolio value
• Minimum corpus - Rs. 10 lakhs
• Trading in only cash segment
• TDS will be deducted in all cases while crediting sale proceed
PMS Scheme Performance As on 30 April 2005
Absolute Returns (%)
Particulars 3 Mth 6 Mth 1 Yr
Very High Risk 1.49% 18.06% 27.08%

High Risk 11.78% 11.93% 31.67%
Moderate Risk 0.55% 16.35% 18.12%

Low Risk -2.18% 18.17% 13.33%
Very Low Risk -3.27% 14.95% 10.07%
Indices 3 Mth 6 Mth 1 Yr

Sensex -6.07% 7.90% 8.86%
Nifty -7.64% 5.83% 5.94%
31
vi)BIRLA SUN LIFE
Corpus – Rs.1700 Cr
No. Of clients - 100
Birla Sun Life has tied up the back end with Deutche Bank for the custody, settlement of
trades and portfolio accounting in a comprehensive service package.
Schemes
1.Value plus Growth Portfolio

Investor Profile : Designed & created for investors seeking moderate to high returns with
lower volatility and risk.
Minimum size : Rs.50 lacs per individual account
Objective : Moderate to high capital appreciation and reasonable income in the form of
dividends from a common standard portfolio across all clients
Desired Tenor : A minimum of one to three years
Approach : Invest in those stocks which are grossly undervalued yet offer high potential in
terms of forward earning growth i.e.stocks that offer a combination of value+growth.
Key benefits : 1.Strategically designed and diversified
2.Access to value+growth investment style
2.Growth or Emerging Opportunities Portfolio

Investor Profile : Designed and created for investors seeking higher returns with moderate
volatility and risk.
Objective : Higher level of capital appreciation from a common standard portfolio across all
clients
Desired Tenor : A minimum of two to three years
Approach : Invest in stocks of those companies which can compete globally and can deliver
goods and services comparable to the best in the world;which look at international market for
growth and derive appropriate revenues.
Key benefits : 1.Invest in growth oriented companies
2.Reasonably higher growth in portfolio valuations
32
3.Value or High Dividend Yield Portfolio

Investor Profile : Designed and created for investors seeking moderate returns with low
volatility and risk.
Objective : Moderate to high income from dividend and reasonable capital appreciation from
a common standard portfolio across all clients.
Desired Tenor : A minimum of one to three years
Approach : Invest in stocks of those companies which are inexpensive relative to the overall
market,peers and historical standards and possess high quality managements, accelerating
earning growth and healthy balance sheets.
Key benefits : 1.Invests in attractive dividend yield companies
2.Higher revenue stream in the form of dividends
4.Customised Portfolio
Investor profile : Designed and created for investors seeking tailor made portfolio to meet
specific investment preference.
Objective : Seeks a level of capital appreciation with or without income by way of dividends
in sync with the individual client risk profile.
Desired Tenor : A minimum between one and three years
Approach : Investments would be guided by the investor risk profile in terms of expectation
of returns, investment horizon, preferences or concerns over certain sectors or stocks and
overall appetite for market risks and therefore, could be a combination of any of the portfolio
options 1,2 and 3 or as agreed with the investor.
Key benefits : 1.Flexibility to tailor your portfolio to meet your specific investment
preference.
2.Total customization.
3.Higher level of portfolio reviews.
Indicative Current fees structure chargeable to the client account
33
Particulars Fee Description Charged on

Fixed Management fees 1.25 % p.a. Daily average of Quarterly
portfolio account value.
Return linked variable fee 20 % on returns above Year-end valuations.

15%. As on 31st
March
Fund Accounting Fee 10 basis points subject to Fixed Quarterly
minimum of Rs. 3500 per
month.
Custody and Transaction charges:
The custody charges (linked to the portfolio value), transaction settlement cost (linked to the
volume of trades) will be on actual and debited to the client account on a monthly/quarterly
basis. Appropriate statements will be provided as supporting to the clients. These charges and
costs are over and above BSLAMC’s fixed fees.
Brokerage for Buy/Sell Trades:
The current brokerage rate is around 0.15 % - 0.25% for the trade value of every `buy’ and
`sell’ transaction. Such costs either get added to (in case of `buy’) or reduced from (in case of
`sale’) trade value.
34
vii)GEOJIT
Corpus : Rs.20 Cr.
No.of clients: 125
Mr. Ajay Sheth who heads the research wing at Mumbai and is a Chartered accountant, who is
there in the capital market for the last 20 years manages fund. He gives advice to others like
Mutual Funds and one FII
Geojit Financial Services Ltd. has extensive experience in capital market operations having
been in the broking business for two decades and is a SEBI registered Portfolio Manager with
authorisation to manage an investor's funds for better returns.
Scheme - Equities
Minimum investment is Rs.10 lakhs
There are two structures for the PMS fee –
1.Flat fee of 3% per annum charged in 4 equal instalments ie;0.75% every quarter, on the
average value of investments at the beginning and ending NAV of the quarter eg; if the amount
invested is Rs.10 lakhs and the NAV at the end of the first quarter is Rs.12 lakhs, a fee of
0.75% is charged on Rs.11 lakhs ie; Rs. 8250/- on that quarter.
2.Flat fee of 1% per annum charged in 4 equal instalments ie; 0.25% every quarter, on the
average value of investment at the beginning and ending NAV of the quarter and on
completion of one year the return on investment is more than 12% of the investment, 20% of
the gains over and above 12% is charged as performance fee. For example, if a client invests
Rs. 10 lakhs and after completion of one year his investment value is Rs.12 lakhs, then the
charges will be 1% flat fee charged quarterly and the performance fee will be 20% of Rs.80,000
(which is the gain over and above 12% of the investment of Rs.10 lakhs ie; Rs.1,20,000/-)
which is Rs.16,000/-.
35
There is no entry load or exit load.
Weighted average Return
2001 - 2002 - Plus 42.60%
2002 - 2003 - Plus 22.4%
2003 - 2004 - Plus 79.62%
2004 - 2005 - Plus 56.38%
36
viii)FORTIS
Corpus : Rs.55 Cr.
No. of clients : 110
Schemes
A. Tortoise
Launch date : 7th Sept'04
Returns since inception : 50%
Tortoise scheme aims to provide a balance between growth, safety and returns. The fund aims
to invest in mix of debt and equity the proportion of which will depend upon market conditions
of respective segments as well as the availability of individual investments opportunities.
Particulars Fees / Charges Mode of Payment

2% per annum of the average
Management Fees Payable quarterly
daily value of Portfolio
0.25% of Market Price of the
Brokerage Securities purchased/sold in Payable with trade done
Secondary Market.
B. Panther
37
Panther scheme is aimed at high return with certain level of risk appetite. The fund aims to invest
in equity with diversification. The objective of the scheme is to achieve high return by way of
aggressive position depending upon market conditions and will not shy away from taking
exposure with relative caution in mid cap and less traded stocks at times.

0.75% per annum of Investment Amount. 50% payable at the
time of investment
and balance at the
Management Fees
time of redemption or
(Fixed)
at the expiry of 12
months which ever is
earlier.
Return on Portfolio Profit Sharing
Management Fees Up to 12% Return - Nil
(Profit sharing) Payable at the time of
Fr 12% - 18% - 10% of Total Profit
profit realization
Above 24% - 20% of Total Profit
0.25% of Market Price of the Securities Payable with trade
Brokerage
purchased/sold in Secondary Market done
Option I

Secondary Market
OR Option II
38
C. Hawk Eye
The fund is aimed at introducing discipline within the overall fund management approach. The
scrip for investing will be selected on the basis of existing fundamental and growth prospects.
However to take care of two most important emotional factors of stock market ‘greed and fear’
the fund will follow a book profit / cut loss strategy. The fund will book profit in any stock after
a set target is reached and the same will be followed if the price of the stock goes below and
breaches a particular level from the purchase price.
Option I

Secondary Market
OR
Option II
39

0.75% per annum of Investment Amount. 50% payable at the
time of investment
and balance at the
Management Fees
time of redemption or
(Fixed)
at the expiry of 12
months which ever is
earlier.
Return on Portfolio Profit Sharing
Management Fees Up to 12% Return - Nil
(Profit sharing) Payable at the time of
profit realization
Above 24% - 20% of Total Profit
0.25% of Market Price of the Securities Payable with trade
Brokerage
purchased/sold in Secondary Market done
ix)JM MORGAN STANLEY
Corpus : Rs.20 Cr.
No.of clients : 20
Schemes :
1.Core Portfolio
Investment philosophy : Diversified equity portfolio with investment largely in large cap
stocks and small portion is invested in mid caps
Investment horizon : Long term
40
2.Voyager
Investment philosophy : Diversified equity portfolio with investment largely in Mid cap
stocks.
Investment horizon : Short to medium term
Common fees for both schemes :
1.Fixed 2%p.a.
OR
2.1.25%p.a. + 20% profit sharing if returns>10%
x)ASK RAYMOND JAMES
Management Structure
Bharat shah,
CEO & CIO
Investment team Strategic A/c team Head, Marketing

(10 Invt Analyst) (3 people) (15 people in
mumbai for Mktg)
41
Servicing team Delhi Bangalore Kolkatta

(4 people) (3 people in Mktg) (2 people in Mktg) (Yet to start)
Dubai
Repo office
Total AUM
Rs 1100 Crores (Inclusive of off-shore fund)
Products
1.The Eagle Portfolio
Objective:
- The Eagle Portfolio aims to deliver exceptional long-term returns. The
core of the concept is an uncompromising value-based stance on misappraised investment
opportunities. The approach is expected to do two things: deliver superior returns and
ensure a high margin of safety.
Investment strategy: 10 : 10
- The whole amount would be invested in 10 stocks with ratio or 1/10 of the portfolio i.e.
10%
Investment horizon & Returns:

- 3 years and returns are decent, so that the portfolio doubles in 3 years.
Corpus / AUM: Rs 110 Crores
Ticket size: Rs 3 crores (thru direct channel) and Rs 1 crore (thru alternate channel i.e.
Stan chart)
2.Growth Portfolio
Objective:
42
The Growth Portfolio seeks to buy growth at value prices. The focus is on companies that
offer favorable long-term prospects.
Investment strategy: The whole amount would be invested in 15 stocks
Investment horizon & Returns: Long term and returns would be around 15 – 20% p.a.
Ticket size: Rs 1 crore (thru direct channel) and Rs 50 lacs (thru alternate channel i.e. Stan
chart)
Fees: 2.5% Fix or 1.5% fix and 15% profit sharing
3.The Lighthouse Infrastructure Portfolio
Objective
- The Lighthouse Infrastructure Portfolio (LIP) aims to be a proxy to India's economic
growth by participating in infrastructure and infrastructure-related businesses.
Investment strategy: The whole amount is invested in companies involved in

infrastructure
chart)
4.The Kingfisher Portfolio
Objective:
- The Portfolio aims to deliver superior returns by investing in companies with a proven
track record. It follows an active process driven method of profit booking.
Investment strategy: The whole amount would be invested in 15 stocks
Investment horizon: Short to medium term
Performance: Not doing well as compare to other schemes
43
chart)
5.Dividend Yield Portfolio

Objective:
- The objective of the Portfolio is to invest in fundamentally strong companies run by

honest and capable managements but only at a price representing an attractive valuation.
Attractive valuation would mean the price at which the downside is minimal, the yield is
higher than 4% and there is a scope for capital gains.
Investment strategy: The whole amount would be invested in 10 - 15 stocks
Investment horizon: long term
Corpus / AUM (Dividend yield & King fisher): Rs 55 Crores
chart)
PMS OF MOTILAL OSWAL SECURITIES LTD.
Schemes –
i) Value PMS
Fund manager: - Mr.Raamdeo Agrawal
Minimum portfolio size: - Rs.50 lacs cash/approved stocks per individual or group
Fee structure: - 1%p.a. fixed fees + 10% profit sharing
OR
2.5%p.a.fixed fees
Objective: - i) Long term investments
44
ii) Capital preservation
iii)Maximum post tax returns
Performance :-
Feb’03 – Feb’05 Weighted Return %
Portfolio 228.13
Sensex 105.94
Nifty 101.15
Jan’04 – Feb’05
Portfolio 61.32
Sensex 20.03
Nifty 18.80
ii)Bull’s Eye
Fund Manager :- Mr.Sagar Tanna
Minimum portfolio size :- Rs.25 lacs cash/approved stocks per individual or group
Fee structure: - 1%p.a. fixed fees + 10% profit sharing
OR
2.5%p.a.fixed fees
Objective :- i) Medium term investments
Performance :-
1st Sept’04 – 16th Mar’05
Portfolio 41.80
Sensex 29.48
COMPARATIVE ANALYSIS
INDIA INFOLINE :
1. Returns given by the schemes are excellent i.e.5P Growth has given 62.8% returns & 5P
Momentum has given 93.5% returns for 6 months ended 1st April’05.
2. Minimum amount to be invested is less i.e.Rs.5lacs which attracts small investors.
3. Option is given to investors to make their customized portfolio.
4. Company is listed on BSE as well as NSE also its financial results are very good which
increases investor confidence.
45
5. Option is given to investors as to whether they want to remain invested for medium term
or long term. Accordingly they can select the scheme.5P Momentum is for medium term,5P
Growth is for long term.
6.In addition to comprehensive reports i.e.each transaction, charges levied, performance of
the PMS plan vis a vis benchmark indices, its website ‘indiainfoline.com’ which has been
honoured as ‘must read for investors’ by Forbes magazine provides in-depth information
about the market as well as companies.
SHAREKHAN:
1.Sharekhan provides 4 schemes i.e. Blue Chip Scheme, Aggressive scheme, Balanced
scheme, Dividend Yield scheme. Investor can choose any of the above depending on his/her
risk taking ability.
2.Strong presence in over 120 cities.
3.Churning has been very low i.e.0.7 times. This helps generate wealth over a period of time.
4.Voted four times as the best Top domestic Brokerage house by the Asiamoney Survey,
SSKI is consistently ranked amongst the Top domestic brokerage houses in India.
5.Returns given by their schemes since 13th May’04 are as follows –
Blue Chip scheme - 50%
Aggressive scheme - 55%
Balanced scheme - 66.16%
PRU ICICI :
1. Option of 3 schemes i.e.Aggressive portfolio, Dividend yield portfolio & Deep value
portfolio. Investors can choose any of the above depending on their risk appetite.
2. Flexibility to use derivative instruments in all the schemes.
3. Each scheme has more than 20 stocks from all sectors thereby reducing risk.
4. Strong brand name of ICICI imbibed on the minds of investors by ICICI Bank by
aggressive advertising.
5. Returns given by their schemes are as follows-
Dividend Yield (since 20th Feb’03) – 278.4%
Aggressive (since 22nd Dec’00) – 389.1%
Deep Value (since 17th July’03) – 228.1%
KOTAK :
1. Minimum amount is Rs.10 lacs for all schemes, which is attractive for medium net worth
investors.
2. Strong brand name supported by repetitive advertising through various channels.
3. Various schemes like Kotak Infinity Klassic, Kotak Select Portfolio, Principal Guard
Portfolio, Dividend Yield Portfolio, Kotak Assist .
4. Principal Guard Portfolio invests 60% money in fixed income instrument & balance 40%
is invested in buying Nifty Options.
5. Option is given to investors to make their customized portfolio.
46
IL & FS INVESTSMART:
1. Low tick size i.e. Rs.10 lacs.

2. Various schemes to suit investors risk profile.
3. Presence across 16 states through over 30 branches & 90 franchisees
4. Strong retail brand franchise.
BIRLA SUN LIFE:
1. Variety of schemes including Customised Portfolio

2. Aditya Birla Group - One of the largest & most respected industrial groups in India.
3. No conflict of interest – neither into broking nor investment banking.
4. Value + Growth Portfolio has given 201.81% returns since 26th June’02.
5. Back end fully outsourced to Deutche Bank
GEOJIT:
1. Low tick size i.e.Rs.10 lacs.

2. Equity scheme has given 53% annualized returns for the financial year ended 31-3-2005.
3. Over 200 offices across the country.
FORTIS:
1. Variety of schemes i.e. Tortoise, Panther, & Hawk Eye suitable for investors with differing
risk taking abilities.
2. Use of derivatives in all schemes.
47
Kotak
No.of schemes 6
5
Pru ICICI
4
3 Birla Sunlife
2
1 ASK Raymond
0 James
Motilal Oswal
Organisations
Figure 2: No.of schemes offered by organisations
6000000
5000000
Amount in Rs.
4000000 Pru ICICI

Kotak
3000000
India Infoline
2000000 Motilal Oswal
1000000
0
1
Organisations
Figure 3 – Minimum investment in PMS schmes
RECOMMENDATIONS :
48
1. Minimum amount should be reduced to Rs.10 lacs which is investible amount for small
investors.
2. MOSt is well known in corporate sector but there is little awareness at the customer level.
Even a layman knows Kotak but is unaware of Motilal Oswal. Aggressive advertising should
be done to reach out to small investors.
3. MOSt should start ‘Customised scheme’. Many organizations are offering this scheme. This
scheme will attract rather choosy clients.
4. There should be least investment in turnaround companies.
5. There should be at least one stock in each scheme giving dividend yield more than 4%.
6. 90% of portfolio should consist of dividend paying companies as dividend paying capability
indicates consistent cash flow as well as honesty & investor friendliness of management.
7. No stock should be chosen at a 52 week high level except the stocks which give more than
8% dividend yield. In the present scenario there are some stocks which give more than 8%
dividend yield.
Bongaigaon Refinery gives more than 12% dividend yield at present price of 95-96(Dividend
declared by company for FY 2004-05: Rs.12 per share)
Aarti industries gives more than 9% dividend yield at present price of 106-107(Dividend
declared by company for FY 2004-05: Rs.10.10 per share).
8. Health care sector and gas companies should be given preference while choosing stocks for
Value PMS as demand for these sectors will increase in future.
Health care sector – Apollo Hospitals Enterprise Ltd.
Gas – Gail(I), Indraprastha Gas, Gujarat gas company.
Appendix
49
Questionnaire used for collecting information-
1.What are the schemes offered?

2.What is the fee structure?
3.What is the year of launch of each scheme?
4.How much returns did each scheme give?
5.Who are the fund managers?
6.How much is the corpus?
7.How many clients do you have?
50

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Motilal Oswal Securities Ltd.

Comparative analysis of organizations

ABOUT MOTILAL OSWAL SECURITIES LIMITED

The Search Begins

Financial planning process

Patience above all else

Advantage of investing in PMS vis a vis Mutual Fund?

Investment philosophy is best summarized by the "prudent investor rule,"

Members of Investment Committee

 Nirmal Jain - CA, IIM Ahmedabad

o Model Portfolio Performance Report

No.of clients- 160

Comparative Performance of 5P-PMS vis-a-vis

Figure 1 : Comparative performance of 5P PMS vis-à-vis the indices & top 5

Corpus – Rs.120 crs

No.of clients – more than 100

1.The Blue Chip Scheme -

a. Relative Leaders in their industry

- Ideal for long term investors with a low risk appetite

2. The Aggressive Scheme

a. High growth in profitability expected in the future

3. The Balanced Scheme

4. The Dividend Yield Scheme

Corpus - Rs 800 crore

No. of clients – 800

7 member Investment Committee including 5 Fund Managers

Shahzad Madon – Sr Vice President & Business Head - PMS

Aniket Inamdar – Senior Fund Manager

Ashi Anand – Fund Manager

Manish Mahore - Fund manager (Structured Products)

Amit Gupta – Fund Manager (Structured Products)

Prudential ICICI PMS: Aggressive Portfolio

Positioning The Equity Portfolio is a diversified portfolio that

Investor The Equity Portfolio is suitable for investors with a

Investment • While the portfolio would comprise primarily

Minimum Portfolio Rs. 50 lacs Rs. 100 lacs

Management fee (% 2.5 % p.a. 3.0% p.a.

Entry / Exit Load Nil Nil

Lock-in Period Nil Nil

Services • Daily reporting of portfolio statement,

Prudential ICICI PMS: Dividend Yield Portfolio

Positioning The Dividend Yield portfolio endeavours to achieve growth

Suitability The Dividend Yield Portfolio is suitable for investors with a

Investment • The Dividend Yield Portfolio will invest primarily in

Features Domestic Clients Non-Resident

Entry / Exit Nil Nil

Lock-in Period Nil Nil

Services • Daily reporting of portfolio statement, transaction details,

Prudential ICICI PMS: Deep Value Portfolio

Investment • The aim is to invest in companies that are significantly

Minimum Portfolio Size Rs. 50 lacs Rs. 100 lacs

Management fee (% p.a. 2.5 % p.a. 3.0% p.a.

Entry / Exit Load Nil Nil

Lock-in Period Nil Nil

Services • Daily reporting of portfolio statement, transaction details,

PMS Quarterly Performance Analysis as on 16-May-05

MODEL PORTFOLIO FOR DIVIDEND YIELD 1-May-05

MODEL PORTFOLIO FOR DEEP VALUE

Corpus – Rs. 2000 crores

No. of clients – 675

Kotak Infinity Klassic

 Conservative Discretionary Portfolio Management Service