PORTFOLIO

MANAGEMENT SERVICES
WHAT IS A PMS
Portfolio management service (PMS) is a type of
professional service offered by portfolio managers to
their client to help them in managing their money in
less time.

Portfolio managers manage the stocks, bonds, and

mutual funds of clients considering their personal
investment goals and risk preferences.
WHY DO WE NEED A PMS
Portfolio management process is a complex process with
various steps to be followed.

To invest in profitable avenues, you require having access to

every- minute-information in the investment market, It takes lot
of technical analysis to make an efficient and high-
return portfolio.

Lack of time is one of the most important decisions

in management of portfolio is the asset mix decision.
BENEFITS OF PMS
 Asset Allocation: Asset allocation plan offered by Portfolio management
service PMS helps in allocating savings of a client in terms of stocks, bonds
or equity funds. The plan is tailor made and is designed after the detailed
analysis of client's investment goals, saving pattern, and risk taking capacity.

 Timing: portfolio managers preserve client's money on time. This

means, portfolio manager provides their expert advice on when his client
should invest his money in equities or bonds and when he should take his
money out of a particular saving plan.

 Flexibility: portfolio managers plan saving of his client according to their

need and preferences. It is his client's duty to provide him a level of flexibility
so that he can manage the investment with full efficiency and effectiveness.
SERVICES PROVIDED THROUGH PMS
 portfolio managers works as a personal relationship manager through whom the client
can interact with the fund manager at any time depending on his own preference.

 To discuss any concerns regarding money or saving, the client can interact with his
appointed portfolio manager on monthly basis.

 The client can discuss on any major changes he want in his asset allocation
and investment strategies.

 Portfolio management service (PMS) handles all type of administrative work like

opening a new bank account or dealing with any financial settlement or depository
transaction.

 Portfolio management service (PMS) also help in managing tax of his client based on
the detailed statement of the transactions found on his portfolio.
PMS CRITERIA OF VARIOUS FIRMS
ProPrime (Fundamental) ProTech (Technical)
 Minimum Investment-5 Lakhs  Minimum Investment-5 Lakhs

 Lock In:6 months  Lock In:6 months

 Charges: 2.5% p.a,  Charges:

 Amc fees charged every quarter  0% Amc fees

 Brokerage:0.5%  Brokerage:0.05%

 20% profit sharing after 15%  20% profit sharing on booked

hurdle crossed end of every fiscal. profits on a quarterly basis.
Scheme 1
 Minimum Investment :
Indian:5 Lakhs
NRI :25 Lakhs
 Flat fee 3% p.a ,(0.75% per quarter)
 For eg;
If the amount invested is 5lacs and
the Nav at the end of the first quarter
is 6lacs a fee of 0.75% is charged on
5.5 lacs i.e Rs 4125 for that quarter.
Scheme2
 Minimum Investment :
Indian:5 Lakhs
NRI :25 Lakhs
 Flat fee 1% p.a ,(0.25% per quarter)
 At the completion of the year,if the
ROI is more than 12% of investment
20% of the gains over and above 12%
is charged as performance fee.
RETURNS
Features
Atleast 65% of the portfolio constituted by NIFTY/MNC (Multi-National Company) stocks.

Exposure in any one sector would not exceed 25%Bluechip stocks constitute the core
portfolio lending stability to investments.

Few midcaps are selectively added to impart a flavor of growth to the portfolio.A diversified
portfolio comprising of fundamentally strong large cap and mid cap stocks.

Stock-picking based on a combination of top-down and bottom-up approachesActive

portfolio management ensures periodic profit booking while infusion of fresh ideas keeps the
portfolio current with the macro-economic conditions.

Ideal for investors seeking to build a portfolio of large bluechips driving the India growth
story.
Risk Factors 
 Investments in securities are subject to market risks, which include a price fluctuation risk.

The performance in the equity schemes may be adversely affected by the performance of
individual companies, changes in the marketplace and industry-specific and macro-
economic factors.

The debt investments and other fixed-income securities may be subject to interest rate risk,
liquidity risk, credit risk and re-investment risk.

Technology stocks and some of the investments in the niche sectors run the risk of
volatility, high valuation, and obsolescence and low liquidity.

The portfolio manager is not responsible or liable for any loss resulting from the operations
of the scheme. The performance of the schemes may be affected by changes in government
policies, general levels of interest rates, and risks associated with trading volumes, liquidity
and settlement systems in equity and debt markets. 
Large cap focus portfolio
 The portfolio will seek to achieve returns through broad participation in large
cap companies

 The portfolio will primarily invest in scrips which are mis-priced, but have a
very high growth potential over a period of time

 These large cap companies have defensive businesses and can withstand macro
level risks

 These large cap companies are dominant players in their respective sectors.

 Large Caps are dominant players in their respective sectors, and hence have the
strength and the ability to maintain margins in a tough operating environment.
Advantages with large caps
Concentrated and Compact portfolio

The portfolio shall adopt the active management style

to identify mis-priced assets and use various stock
selection strategies to outperform

Portfolio to focus on large caps with stable and visible

growth potential
Why Large Caps
Large caps have a high growth rate in adverse
environment as:

They can sustain hardening interest rates

They have adequately capitalized balance sheets
They have underleveraged capital structure
They have higher capital productivity
They can manage lower cost of financing
They have large size of cash flows
Comparison of large and mid caps
THANK YOU