Alchemy PMS

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Alchemy PMS

7.3

Team Background

7.5/10

Returns

7.5/10

Offerings Range

8.0/10

Charges

6.5/10

Customer Support

7.0/10

Pros

  • Wide Range of Investment Products
  • Experienced Portfolio Managers
  • Decent Returns

Cons

  • High Costing

Alchemy PMS is one of the largest Asset and portfolio Management companies in India. The firm is well-known for its consistent superior performance and to deliver the client’s expectation according to their investment objective.

For these reasons, this financial house is seen as one of the best PMS services in India.

Before we delve into how Alchemy PMS provides investment value to its clients, let’s have a quick look at some basics of its portfolio management services.

Alchemy PMS Review

Alchemy PMS, the portfolio and asset management company is running its business through the collective expertise of more than 100 years in the Indian equity market. It is founded by the joint efforts of Lashit Sangavi, Hiren Ved, Rakesh Jhunjhunwala, and Ashwin Kedia in the year 1999. The total funds managed by the firm at the group level is USD 1.03 billion as per the latest numbers.

Alchemy PMS registered as a portfolio manager with SEBI in the year 2000 and commences its portfolio management service in the year 2002.

Alchemy PMS built on its excellence of portfolio management services keeping client satisfaction on its priority. The process of collecting extensive information through its large network, provides continuous information about businesses in the market, Intelligence about stocks, and other potential opportunities arise in the Indian equity market.

A superior research and portfolio manager’s team of Alchemy choose those companies which can perform well irrespective of industry performance. The team has a good understanding of market trends and developments.

In this article, we will throw light on each and every aspect of Alchemy PMS. The article will help the PMS investors to get the details like the commission/fee model, Strategic Details, types of PMS, investment plans, performance/returns, support to customers, Manager’s details, FAQs and many more.


Alchemy PMS Types

Alchemy PMS normally provides both Discretionary and Non-discretionary PMS services to its clients. The clients of the company are allowed to choose any PMS service according to their satisfaction.

In discretionary PMS, clients can get PMS service through the portfolio manager. The portfolio manager handles the investment portfolio of clients according to his/her own knowledge and experience.

However, the clients are informed about the decision making of the manager regarding the portfolio. It means the portfolio manager takes any step with the consultation of the client. They are also provided with the reasoning behind such decisions.

The client gives the responsibility of their portfolio to the fund manager on the basis of their expert knowledge and years of experience and on the expectation of getting a superior result.

On the other hand, in non-discretionary PMS, a client handles his/her portfolio by himself. A Client can take the fund manager’s suggestion to confirm his decision regarding Portfolio.

This type of PMS is opted by fewer clients because they want to get experts suggestion for the funds invested.

So, it totally depends on the investors that which type of PMS suit them.


Alchemy PMS Manager Details

Alchemy PMS has a number of expert fund managers and researchers who help clients to achieve their financial goal and minimize risk related to the portfolio.

Now, we are going to discuss two top fund managers at Alchemy PMS.

Amit Nadekar (Fund manager):

Mr Amit Nadekar joined Alchemy PMS in the year 2005. He has great experience in the field of equity research, taxation and audit, and corporate strategy of more than one and half-decade.

Mr Nadekar started his career as the sell side analyst and tracking the US financial & Banking sector. After that, he moved to Raymond as a member of the Corporate Strategy team.

Amit Nadekar is a Chartered Accountant by profession and also completed an MBA in Finance from Bombay University (Jamnalal Bajaj Institute of Management Studies).

Hiren Ved (Fund manager):

Hiren Ved joined the Alchemy Asset Management business in the year 1999. He has more than 20 years of experience in the Equity market.

Mr Ved works in ‘Bottom-up’ Research and picking approach. He covers a wide range of companies across various sectors.

He has been associated with Alchemy PMS since its inception as a Co-founder and Chief Investment Officer (CIO).

He is a certified cost accountant by profession and also holds an MBA in Finance degree from Jamnalal Bajaj Institute of Management Studies.


Alchemy PMS Strategic details

As we know that most of the PMS companies work on three basic strategies which are common among them. These basic strategies are Large-cap, mid-cap, and small-cap strategies. But, apart from that, the expert team of every PMS house creates some special strategies which make them different from other PMS firms.

And the companies try to put some effective triggers in those strategies so that each strategy can meet an investment goal of the investors.

Alchemy PMS has also created some effective strategies which are:

  • Alchemy High Growth- PMS
  • Alchemy High Growth- Select Stock
  • Alchemy Leaders

Alchemy High Growth-PMS

Investment objective: The objective of investment under this strategy is to generate a superior return by investing in growing Public listed companies.

As India is one of the fastest growing economies in the world and there are a lot of entrepreneurial skills here and so the chances of long term investment with a great return arises. Alchemy High Growth-PMS is created with the motive to grasp these opportunities.

The strategy adopts ‘Top-Down’ and ‘Bottom-up’ approach to pick the stock for the investment portfolio to get a superior return.

The portfolio consists of 20-25 stocks; a minimum 25% stock is from large-caps, Small-caps stocks are less than 20% and the remaining are for mid-cap stocks. It makes the portfolio flexible enough to grasp the opportunities arises in the market.

Alchemy High Growth is equity diversified, Multi-cap growth fund. It was launched on 20th May 2002. The performance of the strategy is measured against the S &P BSE 500 Index. The suggested time horizon under this strategy is 3-5 years. The minimum investment required is ₹50 Lakhs.

Alchemy High Growth- Select stock (PMS):

Investment Objective: The investment objective of the strategy is to generate a return over the long term by investing in public listed companies.

The stocks are selected on the basis of ‘Bottom-up’ and ‘Top-down’ Approach. The portfolio comprises stocks in the range of 8-12 stocks. The single stock of a particular sector is 25% of the total portfolio.

The strategy was launched on 20th Dec. 2008. It is a Multi-cap Growth fund. The minimum investment required under this strategy is ₹3 Crores. The time horizon of investment is 3-5 years, it means one will have to wait for a minimum of 3 years to get the return.

The benchmark Index is the S&P BSE 500.

Alchemy Leaders:

Investment objective: The aim of the strategy is to invest in long term reward companies that exceed the market capitalization of ₹5,000 crores across different sectors.

The focus of the strategy to invest in Large-cap and Large-mid cap companies. The companies which have proven track record of well-established business and management/Leaders. The focus of the strategy is on ‘Bottom-up’ and ‘Top-down’ approach to select stocks for the portfolio.

This is a Large-Cap growth, equity diversified strategy. It was launched on 21st Dec. 2006. The minimum investment amount under this strategy is ₹50 Lakhs with the time horizon of 3-5 years.

The benchmark Index of the strategy is  Nifty 50.


Alchemy PMS Performance/Returns

Alchemy PMS has performed very well over the years. It’s Alchemy High Growth Strategy (PMS) Outperformed against the Benchmark S&P BSE 500 in total 11 years out of 13 years of its inception since 2002.

The strategy has performed very well for the investors as it consistently created wealth for them. Initially, the investment amount was ₹1 Crore in the year 2002. The same fund has increased to ₹36.5 Crore as on 31st Dec. 2018.

Now, the CAGR performance of the Alchemy PMS house:

  • for the first 3 years is 12%,
  • the return increased to 16% for 5 years.
  • Again, the return is 19% for the 7 years,
  • for 10 years it is 17%.
  • The return for 11 plus years is 22%.

Thus, we can see the company is reflecting an impressive and quite healthy performance as far as its portfolio management services returns are concerned.


Alchemy PMS Investment plans

Alchemy PMS provides some investment plans for the one who want to make an investment according to their affordability and risk-bearing capacity. There are various ranges of investment plans starting from the minimum amount of investment to above ₹5 Cr.

Each investor chooses a plan according to their comfort level.

Here are the names and investment range of each plan.

  • Bronze (₹25L-₹50L)
  • Silver (₹50L- ₹1 Cr)
  • Gold (₹1Cr-₹5 Cr)
  • Platinum (₹5 Cr & above)

The investment plans provided by the company are Bronze, Silver, Gold, and Platinum. The investment range under the ‘Bronze’ plan is ₹25L-50L. This plan is best for those investors who have a low-risk appetite and low financial ability.

The second plan is ‘Silver’ and the range is ₹50L- ₹1CR. Again, the investment range for the third investment plan ‘Gold’ is ₹1CR-₹5CR. And the final investment plan is for the High risk-appetite investors who can invest above ₹5 CR.


Alchemy PMS Fees/Commission Model

The commission models provided by Alchemy PMS are flexible so that the investors can choose any model according to their convenience.

The models provided by the company are based on three things which are profit generated by the portfolio, the volume generated for the portfolio and the commission which is based on the total asset value of the portfolio.

Hence, the company has created these three models:

  1. Prepaid commission
  2. Volume-based commission
  3. Profit-sharing based commission

Now, we are going to discuss all the above commission models.

Prepaid Commission: Paying in advance before getting the service is one of the ways of making payment in most of the fields. Here also prepaid commission is an option to make Payment to the fund manager.

Actually, in this model, an investor gets ready to pay the commission in advance, without getting portfolio management service from the portfolio manager. A percentage is fixed at the very initial stage of discussion between the fund manager and the investor.

Both agree to the prepaid model and accordingly, the investor pays the commission as a percentage of the total asset value of the portfolio.

The portfolio manager does not have to take anything from the profit/loss of the portfolio as he/she is already paid.

Volume-based commission model: The second commission model provided by the Alchemy PMS is volume-based commission model. The volume generated while making various transactions for the portfolio is the base to pay commission in this model.

A fund manager always does some transaction to get a better return from the portfolio. So the total volume of transactions generated within a year decides the commission of the fund manager.

The commission of the fund manager is the fixed percentage of the total volume of the transactions generated.

The thing which is most important is the authenticity of the portfolio manager because an unauthentic portfolio manager can increase the volume of transactions by a number of ways to get a higher commission.

Profit-sharing based commission model:

This commission model is considered as the best of the PMS industry. In this model both the parties (The fund manager and the investor) get full satisfaction.

Under this model, the commission is to be paid on the basis of the total profit generated out of the portfolio. A fixed percentage of the total profit is charged as the commission. So, to get the commission, a fund manager puts his/her full effort to generate profit. On the other hand, a client also satisfied that he is paying a commission for the profit he gets by the effort of the fund manager.

The table shows the percentage of commission on the various ranges of transaction volume, profit and the total value of Asset:


Alchemy PMS Charges

There are various types of other charges also which is required to pay when an investor goes to the company to get PMS service.

Management fee: The management fee is decided on the basis of the commission model opted, the fund manager, risk, investment amount etc.

Upfront Charge: It is just like a prepaid fee, charged by the PMS house. The charge is normally in the range of 0.8%-1.8% of the total Asset value.

Brokerage charges: This charge is levied by the PMS house on the basis of the total number of transactions completed for the portfolio. The range of this charge is 0.008%-0.012%.

Depository charges: It is between 0.12%-0.18% of total Asset value.

Custodian charges: It is a charge which is charged for keeping the portfolio of the investor under the custody of the company. It is charged between 0.25%-0.35% of total Asset value.

Exit Load Charges: This is charged on the basis of the total amount withdrawn by the investor within one year of portfolio creation. Normally, it is charged in the range of 0.8%-1.8% of the amount withdrawn. After one year of portfolio creation, no charge is levied on the amount withdrawn.


Alchemy PMS Benefits

Following are the portfolio management services benefits of Alchemy PMS:

  • A Dedicated team of expert professionals who works round the clock to make sure you get all the benefits which you should get as an investor.
  • Maintaining a track record over the years to provide the best client service keeping their investment goal as a priority.
  • The company provides the service which is based on transparency, Knowledge and process.
  • Provides flexible investment plans with different commission model to the investors.
  • They follow the investment pattern and Philosophy of the company on a consistent basis.
  • The company has a strong understanding of stock selection where they can pick those stocks also which performs well irrespective of bad industry condition.
  • The team of the company has a good understanding of market trends and can easily move in the market direction.
  • Outstanding and consistent performance of Alchemy High Growth PMS strategy.

Alchemy PMS Customer Support

Alchemy PMS gives priority to their clients. It provides all required support so that the clients do not feel inconvenience while dealing with the Alchemy PMS.

As a client of Alchemy PMS, one can directly call the company to get the answers to their questions. The company has also provided Email and Whatsapp facility for the convenience of the clients.

A relationship manager is also appointed by the company to make the relationship strong between the fund manager and investors. The client can directly call the fund manager from 3 to 7 times in a month.
The TAT is 12 working days to resolve issues.


Alchemy PMS Conclusion

Alchemy PMS has become one of the largest portfolio management service providers in the country. Its effective strategies attract more and more clients to the company to get a superior return.

The company provides flexible investment plans as well as commission/fee models so that clients can choose according to their convenience. The customer support system is well-structured with a lot of benefits.

Hence, if you are looking to get a reliable PMS house with a superior return, you can choose the company without any hesitation.

In case you are looking to use a promising portfolio management service with high returns, let us assist you in taking the next steps forward:

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Alchemy PMS FAQs

Here are some of the most frequently asked questions about Alchemy PMS:

Which is the best performing strategies of Alchemy PMS?

Alchemy High Growth Product is one of the best performing strategies of Alchemy PMS.

What kind of risk Associated with PMS?

All PMS includes a certain kind of risk including loss of principal amount also.

Who can be an ideal investor of PMS?

Those who want a personalized investment solution and want to invest in equity, structured products and fixed income. Also, they have the desire for the long term wealth creation.

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