PortfolioMgmtServ Project 1

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
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 lowinterest 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 dont have the time that is oh so essential to analyse and invest in the market; or we simply dont 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 isnt just a great healer; its also a fantastic multiplier.
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--vis a Mutual Fund.
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, Indias No.1 private sector life insurance company. India Infolines institutional investors include Intel Capital (worlds 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
Motilal Oswal Securities Ltd. Members of Investment Committee Reports
Nirmal Jain - CA, IIM Ahmedabad R Venkataraman - IIT Khargapur, IIM Bangalore Anand Tandon - IIT Kanpur, IIM Ahmedabad R Venkat Subramanian - CA
All Portfolio Clients will receive the following reports on a fortnightly basis:
o o o o o
Model Portfolio Performance Report Sector Wise Allocation report Performance of Portfolios vis a vis the benchmark indices Transaction Statement 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.
Motilal Oswal Securities Ltd. Fee Structure Rs 5 lacs - Rs 25 lacs 2%p.a.payable qtr+20% profit sharing 1%p.a.payable qtr+10% profit sharing
> Rs 25 lacs
0.5% brokerage for 5P Growth,0.25% brokerage for 5P Momentum
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% 36.16% 36.60%
40.00%
30.00% 22.70% 21.60%
Taurus Starshare
Reliance Growth
20.00%
0.00%
Sensex
Period of Comparison : 6 months ended April 1, 2005.
Figure 1 : Comparative performance of 5P PMS vis--vis the indices & top 5 Mutual funds
Canexpo
10.00% Nifty
Nifty Sensex Magnum Global Magnum Contra Canexpo Taurus Starshare Reliance Growth 5P-Growth 5P-Momentum
Magnum Contra
Magnum Global
5P-Momentum
5P-Growth
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
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 sharing if 0.5%brokerage returns>15% 2%p.a.+20%profit sharing if 0.5% brokerage returns>15%
Rs.25 Lacs-50 Lacs
>Rs.50 Lacs
Returns
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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 Investor Profile The Equity Portfolio is a diversified portfolio that endeavours to generate absolute returns. The Equity Portfolio is suitable for investors with a medium to high risk appetite and an investment horizon of above 12 to 18 months. While the portfolio would comprise primarily large cap stocks, the flexibility to invest in midcap/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.
Investment Philosophy / Methodology
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Motilal Oswal Securities Ltd. Features
Comparative analysis of organizations offering PMS via-a-vis MOSt Domestic Clients NonResident Indians Rs. 100 lacs 3.0% p.a.
Minimum Size
Portfolio Rs. 50 lacs
Management fee (% 2.5 % p.a. p.a. on the average daily portfolio value, payable quarterly) Entry / Exit Load Lock-in Period Services Offered
Nil Nil
Nil Nil
Daily reporting of portfolio statement, 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.
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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 The Dividend Yield Portfolio is suitable for investors with a medium risk appetite with an investment horizon of above 18 to 24 months. The Dividend Yield Portfolio will invest primarily in companies that are quoting at an attractive dividend yield. 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.
Suitability
Investment Philosophy / Methodology
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Motilal Oswal Securities Ltd. Features Minimum Portfolio Size Management fee (% p.a. on the average daily portfolio value, payable quarterly Entry Load / Exit Nil Nil Domestic Clients
Comparative analysis of organizations offering PMS via-a-vis MOSt Non-Resident Indians Rs. 100 lacs 3.0% p.a.
Rs. 50 lacs 2.5 % p.a.
Nil Nil
Lock-in Period
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Services Offered
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. 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.
Suitability
Investment
The aim is to invest in companies that are significantly 16
Motilal Oswal Securities Ltd. Philosophy/ Methodology
undervalued. Various parameters may be used to judge the 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. Domestic Clients Non-Resident Indians Rs. 100 lacs
Features
Minimum Portfolio Size
Rs. 50 lacs
Management fee (% p.a. 2.5 % p.a. on the average daily portfolio value, payable quarterly) Entry / Exit Load Lock-in Period Services Offered

3.0% p.a.
Nil Nil
Nil Nil
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PMS Quarterly Performance Analysis as on TimeFrame PMS Deep Value Absolute returns since 228.1% inception CAGR since inception 91.5% For the year 2003 Q3, 2003 (17 July - 30 Sep 32.1% 2003) Q4 ,2003 60.7% YTD 2003 performance 112.3% For the year 2004 Q1, 2004 -17.8% Q2, 2004 3.9% Q3, 2004 28.4% Q4, 2004 34.0% YTD 2004 performance 46.9% For the year 2005 Q1, 2005 5.2% Q2, 2005 6.1% YTD 2005 performance 11.6%
16-May-05 S&P CNX Nifty Relative Performance 76.7% 151.3% 36.5% 21.5% 34.3% 63.2% -5.7% -15.0% 15.9% 19.2% 10.7% -2.2% -1.1% -3.3% 55.0% 10.6% 26.5% 49.1% -12.1% 19.0% 12.4% 14.8% 36.2% 7.3% 7.2% 14.8%
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PMS Quarterly Performance Analysis as on 16-May-05 TimeFrame PMS Dividend S&P CNX Relative Yield Nifty Performance Absolute returns since inception 278.4% 88.9% 189.5% CAGR since inception 81.6% 33.0% 48.6% 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%
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PMS Quarterly Performance Analysis as on TimeFrame PMS Aggressive Absolute returns since inception CAGR since inception For the year 2000 Q4, 2000 (22 Dec - 31 Dec 2000) YTD 2000 performance For the year 2001 Q1, 2001 Q2, 2001 Q3, 2001 Q4, 2001 YTD 2001 performance For the year 2002 Q1, 2002 Q2, 2002 Q3, 2002 Q4, 2002 YTD 2002 performance For the year 2003 Q1, 2003 Q2 , 2003 389.1% 43.6% 1.7% 1.7% -0.2% 5.8% -11.1% 22.0% 14.5% 23.6% 4.2% -14.1% 19.6% 32.3% -4.6% 30.3%
16-May-05 S&P CNX Nifty 62.0% 11.6% 1.7% 1.7% -9.1% -3.5% -17.5% 15.9% -16.2% 6.7% -6.4% -9.7% 14.5% 3.3% -10.5% 15.9%
Relative Performance 327.0% 32.0% -0.1% -0.1% 9.0% 9.3% 6.4% 6.1% 30.7% 16.9% 10.6% -4.4% 5.1% 29.1% 6.0% 14.3% 20
Motilal Oswal Securities Ltd. Q3, 2003 Q4, 2003 YTD 2003 performance For the year 2004 Q1, 2004 Q2, 2004 Q3, 2004 Q4, 2004 YTD 2004 performance For the year 2005 Q1, 2005 Q2, 2005 YTD 2005 performance 30.8% 46.1% 137.4% -3.7% -10.9% 19.9% 24.7% 28.3% 1.6% 2.5% 4.2%
Comparative analysis of organizations offering PMS via-a-vis MOSt 23.4% 34.3% 71.9% -5.7% -15.0% 15.9% 19.2% 10.7% -2.2% -1.1% -3.3% 7.3% 11.8% 65.5% 2.1% 4.1% 4.0% 5.5% 17.7% 3.8% 3.7% 7.5%
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MODEL PORTFOLIO FOR DIVIDEND YIELD PORTFOLIO AS ON SECTOR STOCKS AUTO 1 ASHOK LEYLAND 1 HERO HONDA MOTORS LTD CAPITAL GOODS 1 HINDUSTAN CONSTRUCTION COMPANY LIMITED 1 BLUE STAR LTD 1 ALFA LAVAL LIMITED 1 THERMAX LIMITED CHEMICAL 1 ICI INDIA LIMITED 1 GUJARAT NARMADA VALLEY FERTILIZERSCOMPANY FINANCE 1 INDIAN OVERSEAS BANK 1 UNION BANK OF INDIA 1 VIJAYA BANK FMCG 1 GLAXOSMITHKLINE CONSUMER HEALTHCARE LTD. 1 GODREJ CONSUMER PRODUCT LTD. OIL & GAS 1 OIL AND NATURAL GAS CORPORATION LIMITED 1 CHENNAI PETROLEUM CORPORATION LTD 1 HINDUSTAN PETROLEUM LIMITED 1 BONGAIGAON REFINERY AND PETROCHEMICALS LTD 1 KOCHI REFINERIES LIMITED OTHERS 1 ADOR WELDING LIMITED 1 SALORA INTERNATIONAL 1 HEG LTD 1 BALAJI TELEFILMS LIMITED 1 POLYPLEX CORPORATION LIMITED 1 FINOLEX CABLES LIMITED
1-May-05 MARKET STOCK RATE WEIGHT 23 504 581 282 693 634 225 72 3.08% 2.18% 14.82% 4.50% 4.15% 3.66% 2.51% 5.20% 2.92% 2.28% 13.80% 71 97 57 340 279 4.89% 4.76% 4.15% 4.89% 3.05% 1.84% 12.81% 811 220 303 93 154 137 123 126 100 165 215 3.90% 3.77% 2.01% 1.59% 1.54% 18.38% 4.34% 3.39% 3.08% 2.88% 2.77% 1.92% 22 SECTOR WEIGHT 5.26%
Motilal Oswal Securities Ltd. SHIPPING 1 1 TECHNOLOGY 1 1 28
Comparative analysis of organizations offering PMS via-a-vis MOSt 7.43% 39 162 755 335 3.98% 3.45% 8.56% 5.49% 3.07% 91.15% 8.85%
VARUN SHIPPING COMPANY LIMITED G. E SHIPPING HCL INFOSYSTEMS LIMITED HCL TECHNOLOGIES LTD TOTAL EQUITY POSITION CASH POSITION
MODEL PORTFOLIO FOR DEEP VALUE PORTFOLIO AS ON 1-May-05 SECTOR STOCKS AUTO 1 1 CAPITAL GOODS 1 1 1 1 CEMENT 1 1 1 1 CHEMICAL 1 1 1 FINANCE 1 METAL 1 1 1 OIL & GAS 1
CEAT LTD BHARAT GEARS LIMITED TEXMACO HINDUSTAN CONSTRUCTION COMPANY LIMITED GREAVES LTD TORRENT CABLES LIMITED BIRLA CORPORATION LTD KESORAM INDUSTRIES LIMITED INDIA CEMENTS LIMITED JAIPRAKASH ASSOCIATES GUJARAT ALKALIES AND CHEMICALS GUJARAT NARMADA VALLEY FERTILIZERSCOMPANY INDO GULF FERTILIZERS LIMITED STATE BANK OF INDIA UTTAM GALVA STEEL LTD TATA SPONGE IRON LTD GUJARAT MINERAL DEVELOPMENT CORPORATION LIMITED CHENNAI PETROLEUM CORPORATION LTD
MARKET STOCK SECTOR RATE WEIGHT WEIGHT 4.96% 93 2.88% 65 2.08% 13.98% 314 5.16% 581 3.48% 130 116 167 119 68 181 138 72 114 3.44% 1.90% 12.86% 3.68% 3.38% 3.16% 2.64% 3.83% 2.27% 1.44% 0.12% 2.77% 585 50 184 316 2.77% 6.80% 2.35% 2.23% 2.22% 2.82% 23
220
2.82%
OTHERS 1 1 1 1 1 1 1 1 1 1 PHARMA 1 SHIPPING 1 TECHNOLOGY 1 31
30.49% SINTEX INDUSTRIES LIMITED NATIONAL RAYON SALORA INTERNATIONAL MAN INDUSTRIES INDIA LIMITED UPPER GANGES SUGAR SIEL SUGARS LIMITED ORIENT PAPER AND INDUSTRIES LTD POLYPLEX CORPORATION LIMITED SURYALAKSHMI COTTON MILLS LTD RAJVIR INDUSTRIES LTD 500 48 123 140 194 70 131 165 162 162 4.31% 4.16% 3.60% 3.39% 3.13% 3.00% 2.90% 2.50% 2.33% 1.17% 1.09% IPCA LABORATORIES LIMITED VARUN SHIPPING COMPANY LIMITED MASTEK LTD TOTAL EQUITY POSITION CASH POSITION 321 39 1.09% 3.72% 3.72% 1.87% 337 1.87% 85.19% 14.81%
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Comparative analysis of organizations offering PMS via-a-vis MOSt MODEL PORTFOLIO FOR AGGRESSIVE PORTFOLIO 1-May-05 AS ON SECTOR STOCKS MARKET STOCK SECTOR RATE WEIGHT WEIGHT AUTO 4.63% 1 MAHINDRA AND MAHINDRA 443 2.42% LIMITED 1 CEAT LTD 93 2.21% CAPITAL GOODS 17.87% 1 BHARAT HEAVY ELECTRICALS 792 4.12% LIMITED 1 VOLTAS LIMITED 243 3.28% 1 SIEMENS LTD 1,831 3.02% 1 HINDUSTAN CONSTRUCTION 581 2.80% 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%
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Motilal Oswal Securities Ltd. OTHERS 1 1 1 1 1 1 PHARMA 1 1 SHIPPING 1 TECHNOLOGY 1 1 1 36
Comparative analysis of organizations offering PMS via-a-vis MOSt 12.99% RADICO KHAITAN LIMITED 316 2.84% NDTV 170 2.29% BALRAMPUR CHINI MILLS LTD 57 2.28% WELSPUN INDIA LIMITED 116 1.93% BALLARPUR INDUSTRIES 103 1.89% LIMITED POLYPLEX CORPORATION 165 1.76% LIMITED 3.48% 676 321 39 1.96% 1.52% 1.70% 1.70% 7.95%
DISHMAN IPCA LABORATORIES LIMITED VARUN SHIPPING COMPANY LIMITED IFLEX SOLUTIONS LIMITED INFOSYS TECHNOLOGIES LIMITED MASTEK LTD TOTAL EQUITY POSITION CASH POSITION
604 1,887 337
3.16% 2.87% 1.92% 88.52% 11.48%
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Motilal Oswal Securities Ltd. 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
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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
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v)IL&FS INVESTSMART Total Corpus No of clients : Rs 80 cr : 555
About IL & FS Investsmart Ltd. Promoted by IL&FS, one of Indias 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 PMS
Investment Analyst (4)
Mutual Fund Analyst
Chief Dealer
Jr, Analyst + Database
MIS
Database MF
F&O Dealer
Technical Analyst
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
Motilal Oswal Securities Ltd. 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 Very High Risk High Risk Moderate Risk Low Risk Very Low Risk 3 Mth 1.49% 11.78% 0.55% -2.18% -3.27% 6 Mth 18.06% 11.93% 16.35% 18.17% 14.95% 1 Yr 27.08% 31.67% 18.12% 13.33% 10.07%
Indices Sensex Nifty
3 Mth -6.07% -7.64%
6 Mth 7.90% 5.83%
1 Yr 8.86% 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. Minimum size : Rs.50 lacs per individual account 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. Minimum size : Rs.50 lacs per individual account 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. Minimum size : Rs.250 lacs per individual account 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
Comparative analysis of organizations offering PMS via-a-vis MOSt Fee 1.25 % p.a. Description Daily average of portfolio account value. Year-end valuations. Fixed As on 31st March Quarterly Charged on Quarterly
Particulars Fixed Management fees
Return linked variable fee Fund Accounting Fee
20 % on returns above 15%. 10 basis points subject to 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 BSLAMCs 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
Motilal Oswal Securities Ltd. 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 Management Fees Brokerage
Fees / Charges 2% per annum of the average daily value of Portfolio 0.25% of Market Price of the Securities purchased/sold in Secondary Market.
Mode of Payment Payable quarterly Payable with trade done
B. Panther Launch date : 7th Sept'04 Returns since inception : 50% 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.
Particulars
Fees / Charges 0.75% per annum of Investment Amount.
Mode of Payment 50% payable at the time of investment and balance at the time of redemption or at the expiry of 12 months which ever is earlier.
Management Fees (Fixed)
Management Fees (Profit sharing)
Return on Portfolio Profit Sharing Up to 12% Return Nil Fr 12% - 18% 10% of Total Profit Fr 18% - 24% 15% of Total Profit Above 24% 20% of Total Profit 0.25% of Market Price of the Securities purchased/sold in Secondary Market
Payable at the time of profit realization
Brokerage Option I Particulars Management Fees Brokerage
Payable with trade done
Fees / Charges 2% per annum of the average daily value of Portfolio 0.25% of Market Price of the Securities purchased/sold in Secondary Market
Mode of Payment Payable quarterly Payable with trade done
OR Option II
38
C. Hawk Eye Launch date : 7th Sept'04 Returns since inception : 36% 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 Particulars Management Fees Brokerage Fees / Charges 2% per annum of the average daily value of Portfolio 0.25% of Market Price of the Securities purchased/sold in Secondary Market Mode of Payment Payable quarterly Payable with trade done
OR Option II
39
Comparative analysis of organizations offering PMS via-a-vis MOSt Fees / Charges 0.75% per annum of Investment Amount. Mode of Payment 50% payable at the time of investment and balance at the time of redemption or at the expiry of 12 months which ever is earlier.
Particulars
Management Fees (Fixed)
Management Fees (Profit sharing)
Return on Portfolio Profit Sharing Up to 12% Return Nil Fr 12% - 18% 10% of Total Profit Fr 18% - 24% 15% of Total Profit Above 24% 20% of Total Profit 0.25% of Market Price of the Securities purchased/sold in Secondary Market
Payable at the time of profit realization
Brokerage
Payable with trade 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 (10 Invt Analyst)
Strategic A/c team (3 people)
Head, Marketing (15 people in mumbai for Mktg) 41
Servicing team (4 people)
Delhi (3 people in Mktg)
Bangalore (2 people in Mktg)
Kolkatta (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 Stan chart) 2.Growth Portfolio Objective: i.e.
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. Corpus / AUM: Rs 880 Crores 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 Corpus / AUM: Rs 55 Crores 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
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
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 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 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
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 ii) Capital preservation 44
Motilal Oswal Securities Ltd. iii)Maximum post tax returns Performance :Feb03 Feb05 Weighted Return % Portfolio 228.13 Sensex 105.94 Nifty 101.15 Jan04 Feb05 Portfolio Sensex Nifty 61.32 20.03 18.80
ii)Bulls 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 Sept04 16th Mar05 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 April05. 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 May04 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 followsDividend Yield (since 20th Feb03) 278.4% Aggressive (since 22nd Dec00) 389.1% Deep Value (since 17th July03) 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 June02. 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 Pru ICICI Birla Sunlife ASK Raymond James
6 No.of schemes 5 4 3 2 1 0 Organisations
Motilal Oswal
Figure 2: No.of schemes offered by organisations
6000000 5000000 Amount in Rs. 4000000 3000000 2000000 1000000 0 1 Organisations Pru ICICI Kotak India Infoline Motilal Oswal
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
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Motilal Oswal Securities Ltd. Questionnaire used for collecting information1.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?
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Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd. Members of Investment Committee Reports

Comparative analysis of organizations offering PMS via-a-vis MOSt

Comparative analysis of organizations offering PMS via-a-vis MOSt

0.5% brokerage for 5P Growth,0.25% brokerage for 5P Momentum

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

70.00% 62.80% 60.00%

45.71% 45.65% 36.88% 36.16% 36.60%

30.00% 22.70% 21.60%

Period of Comparison : 6 months ended April 1, 2005.

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Rs.25 Lacs-50 Lacs

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Investment Philosophy / Methodology

Motilal Oswal Securities Ltd. Features

Portfolio Rs. 50 lacs

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Investment Philosophy / Methodology

Rs. 50 lacs 2.5 % p.a.

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

The aim is to invest in companies that are significantly 16

Motilal Oswal Securities Ltd. Philosophy/ Methodology

Comparative analysis of organizations offering PMS via-a-vis MOSt

Minimum Portfolio Size

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd. SHIPPING 1 1 TECHNOLOGY 1 1 28

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

OTHERS 1 1 1 1 1 1 1 1 1 1 PHARMA 1 SHIPPING 1 TECHNOLOGY 1 31

Motilal Oswal Securities Ltd.

Motilal Oswal Securities Ltd. OTHERS 1 1 1 1 1 1 PHARMA 1 1 SHIPPING 1 TECHNOLOGY 1 1 1 36

604 1,887 337

3.16% 2.87% 1.92% 88.52% 11.48%

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt

Motilal Oswal Securities Ltd.

Comparative analysis of organizations offering PMS via-a-vis MOSt