Axis PMS

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Axis PMS

7.6

Team Credibility

7.5/10

Returns

8.5/10

Offerings Range

8.0/10

Charges

6.0/10

Customer Support

8.0/10

Pros

  • High Returns
  • Quick Customer Support
  • Wide Offerings Range
  • Multiple Strategies

Cons

  • Very Expensive

Axis PMS is one of the top portfolio management services companies across the country. The company works on the philosophy of growth and protection of the investment portfolio of clients. The aim of the firm is not only customized wealth creation but also making the future of clients bold through these investments.

It works under the brand name ‘Axis Asset Management’. Like Axis Direct, this brand is also a financial initiative by the brand Axis.

Axis PMS Basics

Axis PMS, a SEBI registered company, was established in the year 1996 under the leadership of Chandresh Nigam with its head office in Mumbai, Maharashtra. 

Axis PMS is a highly customized business segment that provides solutions to your financial needs. The expertise of the company aims long term wealth creation. They manage the existing portfolio as well as a newly created portfolio that is customized on the basis of the client’s financial goal and risk appetite.

Axis PMS has a highly experienced team of experts with proven and years of track record in portfolio management and research. They work with their superior knowledge and experience in the management of risk associated with the investment portfolio.

Axis bank offers Capabilities across:

  • PF Solution
  • Domestic equity
  • Fixed income

Following are the key pillars of Axis PMS:

  • Growth biased companies which have sustained growth.
  • Searches for a quality business.
  • To get risk-adjusted returns from the investment portfolio

                             


Axis PMS Types

Now, we are going to discuss details of Axis PMS for those who are interested in Portfolio management services offered by the firm. You will be able to get each important detail of the company in this article like the commission model, investment plans, Managers details, types of PMS, customer support etc.

Axis PMS gives priority to customer satisfaction as well as their convenience also. They give facility of both types of PMS to the clients so that they do not need to move to another PMS house in search of any type of PMS. That is why Axis PMS offers both Discretionary as well as Non-discretionary PMS types.

Discretionary PMS:

Discretionary PMS is a type of PMS offered by the Axis PMS. In this type of PMS, the portfolio manager holds the right to make any required changes in the portfolio of the client. Actually, under this type, the portfolio manager uses their expert knowledge and years of experience for getting a return out of the portfolio.

The clients can access their portfolio to watch the performance as well as related transactions completed by the fund manager.

Non-Discretionary PMS:

Non-Discretionary PMS is a type of PMS in which the client itself handles their investment portfolio. They manage the portfolio by their own experience and knowledge. If they want, they can get the help of the portfolio manager.

The fund manager can give their opinion regarding the portfolio but the final decision remains in the hand of the client.


Axis PMS Manager Details

Axis PMS is one of the best PMS in its field only because of its team of experts who handles the business of the company in a good manner. The company has many experts who are specialized in research and portfolio management.

Here we are going to discuss the details of the one of the top fund manager of Axis PMS.

Trideep Bhattacharya (Senior portfolio manager):

  • Trideep Bhattacharya has more than 20 years of experience in the field of equities and portfolio management in India and other Asian Markets.
  • Before joining Axis PMS, he has worked as a portfolio manager at State Street Global Advisors and also with the UBS Global Asset Management, London.
  • Mr Trideep has gained name and fame as a sell-side analyst and a well-established stock-picker in various investors survey like Asia money and Institutional Investor.
  • As far as his educational background is concerned, he has completed an MBA in finance from S.P Jain Institute of Management & Research. He also holds the degree of B.Tech (Electrical) from IIT Kharagpur. Apart from this, he has been a Charterholder from the USA.

Axis PMS Strategies Details

Axis PMS offers portfolio strategies which suit different clients according to their financial goals and risk-bearing capacity.

Each strategy is different in terms of risk, minimum investment amount, time horizon required for a return etc. So, it is a portfolio manager who decides which strategy is fit for a particular client after a discussion with the client.

However, in the case of non-discretionary PMS, a client can take the decision about the strategy that fits him/her.

Following are the alternate investment products which are made up of three products:

  • Axis Discretionary portfolio management services.
  • Axis structured products.
  • Axis Private Equity & Real Estate Funds.

Axis Discretionary Portfolio Management Services:

Axis discretionary portfolio management services are just like an investment engine. It pushes the investment portfolio through various kinds of strategies to get the return through the opportunities available in the equity market.

It is a kind of professional service to suggest the PMS service from the third party.

Axis Structured products:

Under this product, the investment opportunity is provided to earn a higher return than traditional investments like fixed deposit and other products of the market.

The return of the product is linked to the underlying benchmark like Nifty, a basket of stock or a single stock. It is created in such a way that it can meet the investor’s investment goal, time horizon, and risk appetite.

Axis Private Equity & Real Estate Funds:

Axis Private Equity & Real Estate Funds provides an opportunity for investors to invest in the fast-growing marketplace of private companies.

As these products have low co-relation with traditional investment assets.


Axis PMS Brand Equity portfolio:

Axis brand equity portfolio is an investment strategy in which the focus is on picking those companies which have strong ‘Brand equity’. The aim of this strategy is long term capital appreciation. This investment approach is different as it yields returns and a strong future.

Under Axis Brand equity portfolio, businesses are bought with strong brands and provides:

  • Sustainable Competitive advantages: It means investing in those companies which outperform the competitors.
  • Strong management team: The Management team of the company must be strong enough to bring long term growth for the company.
  • Corporate Governance: The company must maintain the ethical practice and work to serve the interest of all stakeholders of the company.

The investment style of the portfolio in this strategy is Bottom-up, growth biased and for the purpose of ‘Buy and Hold’.

The range of time horizon in this strategy is 3-5 years to get the return. An investor can get a portfolio return only after waiting for a minimum of 3 years. The Higher side of this range gives the possibility of a higher return.

The performance of the portfolio, created in this strategy is measured against the benchmark index S&P BSE 200 Index.

The minimum initial investment amount is ₹25 Lakhs and in multiples of ₹1 Lakhs thereafter. And the minimum additional investment amount is ₹5 Lakhs and in multiple of ₹1 Lakhs thereafter.


Axis PMS Returns or Performance

Axis PMS works entirely according to the financial objectives and risk appetite of investors. Its strategies have a track record of performance over the years and it is one of the main reasons to attract more and more clients to the company.

Let’s give a look at the portfolio management services returns of Axis PMS:

  • The 3 years portfolio performance of the company shows the return of 12%,
  • the return is 10% for 5 years,
  • for 7 years, it is 15%,
  • the return is 22% for 10 years, and
  • for 11 plus years, the return is 23% CAGR.

Hence, we can see the robust performance of this PMS house, that makes it one of the attractive PMS place for investors.


Axis PMS Investment Plans

Investment Plan is made for the convenience of the investors so that they can choose a plan that suits them. These investment plans are based on a certain range of amount.

The range increases with a different name of the plan and the investor pick anyone according to their financial strength, time horizon and risk appetite.

Axis PMS offers four types of investment plans which are:

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

Bronze, Silver, Gold, and Platinum these are four investment plans. All four have a different range of investment amount. The minimum amount starts with ₹25 Lakhs and the maximum goes above ₹5 Cr.

An investor chooses the plan after analyzing their risk-bearing capacity and the most important their financial strength. Also, up to what time a client can wait for the return from their investment portfolio also plays an important role.

Hence, As an investor, you can choose any one of the above investment plans.


Axis PMS Commission/Fee model

Axis PMS has created 3 commission models through a client can make payment to the fund manager for the services they get from them. A client can sit with the fund manager and by the mutual decision they can opt any one.

The commission model is based on three different factors that are prepaid, transaction volume, and the profit generated from the portfolio.

A percentage of all these factors is charged as a commission/fee. The percentage is decided by the investor and the fund manager.

Following are the commission models:

  • Prepaid commission
  • Volume-based commission
  • Profit-sharing based commission

Prepaid commission:

The Prepaid commission allows an investor to pay the commission to the fund manager in advance without taking any PMS service. Just after portfolio creation, a fixed percentage of the total value of the portfolio is charged as a commission.

The percentage is on par with the industry or a bit more or less. It is finally fixed by both parties. The amount of commission will not either increase with the increase of profit or decrease with the decrease or non-performance of the portfolio.

Volume-based commission:

Volume-based based commission model is very different as its base of charging the commission is unique. The commission under this model is charged on the transaction volume. Actually, if the volume of the total transaction increases, it means the value of transactions also increases and vice-versa.

The higher the volume of transactions, the higher will be the amount of commission. So, one can imagine how important the role of a fund manager is?

A genuine fund manager will try his best to get more profit with minimum transactions. On the other hand, a fund manager who just wants to increase his commission will try to do more transactions without any meaning or profit creation.

A fixed percentage of the total volume of transactions is charged as a commission.

Profit-based commission model:

This commission model is all time favourite models of all most all the clients. In this model, a client is sure about the effort put by the portfolio manager. A client, as well as the fund manager, knows well that the commission will be paid only after profit generation out of the portfolio.

A portfolio manager tries to generate more and more profit to get a higher commission.

The percentage of the commission is based on the profit generated.

Now, the table below shows the percentage of commission that will be charged by the Axis PMS in each model of commission:


Axis PMS Charges

Following are the other charges which a client is required to pay to the company for the portfolio management services. These charges are brokerage charge, upfront charge, depository charges, management fee, exit load fee etc.

Management fee: This fee is charged according to the commission model opted by the clients.

Upfront charges: Axis PMS charges an upfront fee in the range of 1.2%-1.8% of total asset value. It is like a prepaid fee.

Brokerage charge: It is charged by the portfolio manager for the transactions completed by them. It is charged between 0.02%-0.05% of the total transaction value.

Depository charge: The fee of depository charge normally ranges from 0.16%-0.21% of total asset value.

Exit Load charges: This is the charge which is taken by the company on the amount withdrawn by the client within one year of portfolio creation.

The charge is in the range of 1.5% to 2.5% of the withdrawal amount. If the withdrawal is done after one year then mostly it is free, but depending on the case it can be charged 0.8% of the withdrawal amount also.


Axis PMS Benefits

Following are the Portfolio management services benefits from Axis PMS:

  • Axis PMS has a well-qualified and experienced investment team who provides professional management to the funds of clients. They also ensure the long term investment with proper risk management.
  • A Regular portfolio monitoring facility is provided to the clients. Also, the firm monitors the portfolio of clients in order to provide maximum return to them.
  • Axis PMS provides a hassle-free experience of service to the clients. They provide superior customer support to them so that they can solve their queries.
  • Regular portfolio report and updates are provided to the investors. They also allow clients to easily monitor and track the performance of the portfolio.
  • A customized investment portfolio is offered.
  • Flexible investment plans and various types of strategies are available to the company for the convenience of clients.

Axis PMS Customer Support

As a customer of Axis PMS, you will get various types of support from the company.

The company provides Email and SMS facility to the customers. The clients can solve their portfolio related problems just by a call only. A relationship manager is appointed to manage the relationship between clients and portfolio managers.

The high net-worth client can directly call the fund manager up to 10 times in a month to ask any question related to their investment portfolio. While the low net-worth client can call up to 5 times in a month.

The best thing is, the issue resolving turnaround time (TAT) of Axis PMS is 7 working days only.


Axis PMS Conclusion

After going through the above discussion, it is clear that Axis PMS is the best PMS house among the rest of the PMS house available in the market. It has a wide range of strategies that are created to full-fill the different financial goals of the clients.

The experts of the company are able to manage the risk associated with the portfolio in a very well manner. The customer support system of the company is also well structured.

Hence, if you are the one who is searching for a top-class PMS house, you must add Axis PMS in the list of the best PMS houses.

In case you are looking for a trustable and promising portfolio management service for your funds, let us assist you in taking the next steps forward:

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Axis PMS FAQs

Let’s discuss some of the most frequently asked questions about Axis PMS:

What is the difference between discretionary and non-discretionary portfolio manager?

Discretionary portfolio manager individually manages the portfolio of each client according to the financial objective of the client.

Non-discretionary portfolio manager manages the portfolio in accordance with the direction of the client.

Is there any need for a contract between the investor and the portfolio manager?

Yes, a contract is required. The contract clearly defines the mutual liabilities, rights, and obligations related to the investment portfolio.

Is it necessary to open a Demat account for PMS services?

Yes, a Demat account is mandatory for PMS services in the name of the investor.

Can a portfolio manager promise a guaranteed return?

No, he/she can not promise a guaranteed return to the investor.

Can a client use his/her existing Demat account for PMS?

No, a client is required to open a new Demat account.

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