Aditya Birla PMS is also known as Aditya Birla Sun Life PMS. The firm is a well-known and top-class portfolio management services house in India. It provides customized investment solutions to the investors associated with it.
In this detailed review, we will have a look at some of the details in terms of background, pricing, strategies, performance and other related information.
Aditya Birla PMS Review
Aditya Birla PMS was established in the year 1994 under the leadership of Ajay Shrinivasan. The registered office of this public limited company is in Mumbai, Maharastra. It is registered under the Securities Exchange Board of India (SEBI).
The portfolio management service of Aditya Birla PMS is customized according to the need and risk appetite of clients. A team of expert research analysts and portfolio managers helps the clients to achieve their financial goals by providing them with superior returns from their investment portfolio.
Aditya Birla PMS provides both discretionary and non-discretionary PMS service to its large base of High net-worth clients and corporate houses. The stock selection is done on the basis of the investment philosophy of the company in which they always pick those stocks only which has a high growth opportunity with both economic and competitive advantage.
The investment portfolio of Aditya Birla PMS is built on in-depth research, innovative products and services and the expertise of fund managers and with their years of experience:
Name of the company
Aditya Birla PMS
Founded in the year
Select sector portfolio India Special opportunities portfolio Core equity portfolio Customized Debt Portfolio
In this article of Aditya Birla PMS, we are going to discuss almost all important aspects of the company which is required to check before making the investment decision. Now we are going to discuss the types of PMS, Strategies details, investment plans, commission models, charges, customer support and finally FAQs.
Aditya Birla PMS Types
As mentioned above, Aditya Birla provides two types of PMS services to their clients. One is discretionary PMS and another is Non-discretionary PMS just like the services offered by most of the PMS houses available in the market.
Discretionary PMS, the portfolio manager handles the portfolio of clients on his own responsibility. He is responsible for the whole activity related to the portfolio. Clients can only access and check the performance of the portfolio.
But, the addition and removal of stock from the portfolio are decided by the fund manager only. The client gets the benefit of expert opinion and experience for the investment portfolio.
Under Non-discretionary PMS, the investment portfolio of the client is handled by the client itself. He decides what to add or what to remove, which stock is beneficial for the good performance of the portfolio. This implies that the whole activity related to the portfolio becomes the responsibility of the client.
The investor can get the expert opinion of the portfolio manager for making the final decision.
Aditya Birla PMS Manager Details
Aditya Birla PMS has a team of expert in the field of portfolio management and research. They help the clients to achieve their investment goal according to their risk appetite.
They are well-experienced in their field and have a vast knowledge and a strong educational background.
Mr Bala is the CEO of Aditya Birla Sunlife AMC Limited since 1994. He has 26 years of experience as a portfolio manager in both equity and fixed income. Before working as a portfolio manager, he worked as chief investment officer from 2006-2009.
Mr Bala is one of the best portfolio managers who played a vital role in the growth of the Indian Mutual Fund industry.
He is currently the Board of directors of the National Institute of Securities Market (NISM). He is also a member of the committee of the Corporate Bond market Development of SEBI. He also an active member of AMFI. He also worked on the position of chairman of AMFI from the year 2016-2018.
Mr Bala has completed MBA and BSc in Mathematics.
Aditya Birla PMS Strategic Details
Aditya Birla PMS uses various types of strategies to catch almost all the opportunity which arises in the market to full-fill the financial goal of the client according to their risk appetite. The company work on the long-term, mid-term, and short-term investment goals.
Here we are going to discuss the four most important strategies of Aditya Birla PMS:
Select sector portfolio
India Special opportunities portfolio
Core equity portfolio
Customized Debt Portfolio
Select Sector Portfolio:
Select Sector Portfolio (SSP) provides investment in those sectors that has high-quality growth and generates consistent ROI while the business comes under the value investing philosophy of Aditya Birla PMS. The strategy helps the investors in generating wealth over the long term along with the risk minimization and compounding investment return.
This strategy is ideal for you if you want an investment portfolio with the selected ideas of experts and researchers. The minimum investment amount under this strategy is ₹25 Lakhs or may change according to the of the portfolio manager. The minimum investment horizon is 3 years.
The investment approach of the strategy is identifying those stocks that grow at a reasonable price with the focus on quality. The attractive valuation stocks are identified for investment with strong fundamentals.
The company waits to buy stocks at the price that meets their investment return expectation and the requirement of the margin of safety.
India Special Opportunities portfolio:
India Special Opportunities Portfolio is a Multi-cap investment portfolio in diversified sectors. Under this strategy, the portfolio manager tries to identify those stocks which are fundamentally strong, but the inefficiencies in the market lead to mispricing of those stocks.
The strategy is ideal for those clients who want capital appreciation through the portfolio investment in those stocks which get benefit from micro & macro factors. The minimum investment amount is ₹25 Lakh or may change also depending on the portfolio manager’s decision. The time horizon, in this case as well, is a minimum of 3 years.
The investment approach under this strategy is to focus on the stocks which primarily get benefit from the below-mentioned factors:
Micro (Eg. New product launch of the company, market share gain) and macro factors i.e change in the business cycle.
Change in management
Secular growth names
Core Equity Portfolio:
The strategy focuses on alpha creation through investment in quality growth businesses having a good profile of return. The stocks under this strategy are selected on the basis of strong research and then invest in the range of 25-30 stocks for medium to long term.
The strategy is ideal for those investors who seek the return from the long term growth story of the Indian economy.
The minimum investment amount under this strategy is ₹25 Lakhs or it depends on the portfolio manager. The amount may differ from case to case of each individual client also. The investment horizon is a minimum of 3 years.
The investment approach includes assessment of future growth prospect, profitability, future earnings potential, capital investment requirement etc.
In this strategy, there is a thorough study of the effect of the long term economic cycle upon corporate earnings and spending pattern based on demography and the outcome helps in deciding the reason for the intrinsic value generation.
Customized Debt Portfolio:
The investment objective of the customized Debt portfolio is one or more than one of the following:
Maximization of returns
The strategy provides a standard portfolio, but if any client wants customization according to their need, the company can customize the portfolio under this strategy as well.
One can make an investment with the minimum amount of ₹25 L. The portfolio is created by the credit selection, Government securities and mix bonds, long-term and short-term Securities etc. The strategy allows the maturity horizon according to investors.
The portfolio manager can use one or more strategies to achieve the above-stated investment objective.
Aditya Birla PMS Returns or Performance
The performance/returns from the investment portfolio of Aditya Birla is attractive enough to make the client base of the company strong. And the firm is strong enough to beat the performance of around 10 years Mutual fund investments.
Here are a few numbers to give you an idea:
The 3 years return of Aditya Birla PMS is around 11%,
the return is 10% for 5 years,
for 7 years it is 14%,
for 10 years the return is 21%, and f
or more than 11 years the return is around 27%.
Hence, we can see a healthy performance is reflected by the investment portfolio of Aditya Birla PMS.
Aditya Birla PMS Investment plans
Aditya Birla PMS provides attractive investment plans to the investors so that they can feel convenience and comfort after coming to the company for portfolio investment.
The firm provides four types of investment plans with different range of investment amount. The client can choose an investment plan according to his/her financial strength and risk-bearing capacity.
Let’s discuss the four types of investment plans offered by the company.
Silver (₹50L- ₹1 Cr)
Gold (₹1Cr-₹5 Cr)
Platinum (₹5 Cr & above)
Investment plan ‘Bronze’ is the cheapest investment plan for the investors of low-risk appetite and weaker financial strength. One can invest between ₹25L-₹50L.
The second investment plan is ‘Silver’, the range of investment under this plan is ₹50L-₹1 CR. The third investment plan ‘Gold’ ranges from ₹1CR to ₹5 CR.
‘Platinum’ investment plan is for high profile investors who can bear high risk in the investment market. The range of investment under this plan is above ₹5 CR.
Aditya Birla PMS Commission or Fee model
Aditya Birla PMS provides three different types of commission models to the investors. They can choose the model with the help of fund manager of their portfolio. If both agree with the same model of commission, they proceed to the investment portfolio creation.
So, it is necessary for the clients to know that what are the commission models available with the company or the options through which they can pay commission for the services they get from the company.
Following are the types of commission model:
Profit-sharing based commission
Paying commission under this model means a client agrees to pay the commission to the portfolio manager in advance without getting investment portfolio service. The commission is paid on the basis of the total value of the portfolio created. A percentage is fixed between both the parties on which commission is paid.
This commission model not preferred by many clients as they are required to make the payment without getting any profit or service from the portfolio manager.
This is the second type of commission model. A client is required to pay the commission on the basis of the total transactions completed in a year for the portfolio. The higher the value of the total number of transactions, the higher will be the commission.
A fund manager can increase the number of transactions without making profitable transactions also just for getting a higher commission. So, a genuine portfolio manager plays an important role in this commission model.
The model is the most favourable commission model for the clients. In this model, a client need not worry about the authenticity of the portfolio manager because both the parties know very well that the commission is payable/receivable only after realization of profit.
Hence, a portfolio manager puts his/her full effort to get a return from the portfolio or we can say we will try his best for the best performance of the portfolio as much as he can.
A percentage is decided by both the parties to charge the commission.
The below-mentioned table shows the percentage of the commission under each model:
Prepaid commission (Yearly)
Prepaid commission (Yearly)
Volume-based commission (Yearly)
Profit sharing based (Yearly)
Profit sharing based (Yearly)
Commission in % of investment
Transaction volume range
Commission in % of volume
Commission in % of profit
₹25 L- 50L
₹25 L- 50L
₹5CR & above
₹5CR & above
₹50L & above
Aditya Birla PMS Charges
The commission is not the only charge which a client is required to pay to the portfolio manager/firm, except this, there are other charges also which a client needs to pay.
Following are the other charges:
Management fee: This is mainly charged on the basis of the commission model opted by the investor.
Upfront charge: A type of prepaid charge levied on the total asset value of the portfolio. It ranges from 1.2% to 2.2%.
Brokerage charge: The normal range of this charge is between 0.01%-0.06%. The Charge is levied on the total transaction value.
Custodian charge: It is charged between 0.25%-0.45% of the total asset value.
Depository charge: The range of Aditya Birla PMS depository charge is between 0.21%-0.32% of total asset value.
Exit Load Charge: It is charged on the basis of withdrawal amount and timing. If the withdrawal is made within one year of portfolio creation, then the client will be charged in the range of 1.2% to 2.2% of the total withdrawal amount.
On the other hand, there is no charge levied on the amount withdrawn after one year of portfolio creation.
Aditya Birla PMS Benefits
Following are the benefits of becoming an investment portfolio the client of Aditya Birla PMS:
Aditya Birla PMS has many strategies which are used by the company to provide a superior return to the clients according to their risk appetite.
The investment plans and commission models are flexible which helps the client to choose according to their convenience.
A track record of good performance of the investment portfolio so the future chances of good return increases.
A team of experts who provides their expert knowledge and years of experience to the client’s portfolio.
All required customer support is provided to the clients so that they can clear their queries.
Reasonable charges make it affordable for all categories of clients.
Aditya Birla PMS Customer support
Aditya Birla provides all required customer support to their clients so that can feel convenience while dealing with the company.
The company provides SMS and Email facility to the clients. Also, the client has access to the back office through which they can view their portfolio as well as details related to the portfolio also.
The most important facility is the direct calling facility to the clients so that they can easily get the answer to any query related to their investment portfolio. A relationship manager is also appointed by the company.
The investor can directly call the fund manager. Allowed to call 2 to 5 times in a month.
The issue-resolving Turnaround time (TAT) is 9 working days.
Aditya Birla PMS Conclusion
A client need not search the name of this PMS house as this company is well known among the investors for its superior performance. It has a wide range of portfolio strategies which are used according to the investment goals of clients.
The customer support system is well-structured and very useful to the clients. They can get answers to their portfolio related confusion just by dialling a number to the company or directly to the fund manager.
Overall, if you are the one who is searching a top PMS houses then Aditya Birla PMS can be one of the options in the list of top PMS houses.
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Aditya Birla PMS FAQs
Here are some of the frequently asked questions asked about Aditya Birla PMS:
What is PMS?
PMS is a division of Aditya Birla Sun Life Ltd. It is created for High net-worth clients to provide them with a customized investment solution.
Is there any guarantee of investment return?
Though, the company has a track record of performance. But, there is no certainty of return as it totally based on market risks.
Who manages the fund of the investors?
The skilled portfolio managers, backed with a strong research team manages the investment funds of investors.
What is the risk associated with PMS investment?
All PMS investment involves a certain level of risks, including erosion of the capital invested.
What is the ideal time horizon for equity investment?
The ideal time horizon for equity investment is 3 years.