Basant Maheshwari PMS

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Basant Maheshwari PMS

7.3

Team Credibility

8.0/10

Returns

7.0/10

Offerings Range

7.0/10

Charges

7.5/10

Customer Support

7.0/10

Pros

  • Only Custom Portfolios
  • Flexible Commission Model
  • Good Customer Support
  • Reasonable Returns

Cons

  • High Initial Capital

Basant Maheshwari PMS has emerged as one of the best PMS services in India by offering a superior portfolio management service to its clients looking to invest in different financial products. The investment strategy of the company is created after the need analysis of investors.

Basant Maheshwari PMS Review

Basant Maheshwari Wealth Advisors established on 30th July 2015 and registered under SEBI. The company offers Portfolio management service and Advisory service to the clients.

Basant Maheshwari PMS focuses on investing in those companies which have consistent and predictable earnings.

It means those companies which have a record of generating more than average growth of earnings over a long period of time.

The PMS service offered by the company is under the complete need analysis of an investor. The portfolio is created in such a way that it meets the risk appetite and the investment goal of the investor.

The company runs its PMS business on an investment Philosophy created by them. The philosophy is based on a  certain base which helps to select the stock for a portfolio. The basis on which the stock is selected are the consistent earnings, growth, scalable businesses, ROE, management, Dividend payout, Cash flow, and small companies.

The PMS house makes an investment on three strategies which are small-cap, mid-cap, and large-cap strategy.

Basant Maheshwari PMS offers PMS service through the expert professionals associated with the company. These experts are fund managers and research analysts who work hard with their years of experience for the investment portfolio management of clients.

In this PMS article, we will try to throw light on each and every important aspect of Basant Maheshwar PMS. We will cover the points like types of PMS, Manager’s details, commission model, investment plan, charges, benefits, customer support etc.


Basant Maheshwari PMS Types

Basant Maheshwari PMS offers three types of services to the clients.

  • Discretionary Portfolio management service
  • Non-discretionary Portfolio management service
  • Advisory service

Discretionary PMS service:

Under Discretionary portfolio management service, the portfolio manager shall have full discretion to add or remove any type of securities or to take an investment decision on behalf of a client as per the agreement between the two.

The decision taken by the portfolio manager is full and final and cannot be opened in question in any situation. It can be questionable only on the ground of the portfolio manager’s fraud, gross negligence by the portfolio manager, intent etc.

The portfolio of one client may differ from another client in the same scheme depending on the portfolio manager’s sole discretion.

Non-Discretionary PMS:

Under the non-discretionary portfolio management services, the portfolio manager shall have sole discretion to add or remove the security brought in by the client as per agreement.

The responsibility under this service may include reshuffling of securities, safe custody and monitoring of portfolio, managing books, rights, and dividends so that the benefits can be credited to the investor’s portfolio.

Advisory services:

The advisory services include giving advice on the portfolio strategy, sector-wise allocation of the portfolio, investment and divestment of a particular security on the client’s portfolio.

The portfolio manager acts as an advisor of the client. He will not be responsible for any loss if arises from the investment portfolio of the client.


Basant Maheshwari PMS Fund Managers

The professionals of Basant Maheshwari PMS help the investors to achieve their financial objective while minimizing risk.

The most knowledgeable and experienced professional of the company is Mr Basant Maheshwari

Let’s have a quick look at his profile.

Basant Maheshwari (Co-founder & partner):

Basant Maheshwari is Co-founder & partner of the company Basant Maheshwari PMS. He has also done Equity research & Analysis course from ICFA India. He is a commerce graduate and a Cost Accountant.

The founder has also gained experience with TV 18, Pantaloons Retail, Titan Industries, Gruh finance.

Mr Basant found the online portal Equity Desk where investors can discuss queries related to investing.


Basant Maheshwari PMS Strategy details

Investment Objective:

The investment objective of Basant Maheshwari PMS is a capital appreciation by investing in medium to long term perspective equities.

The portfolio manager creates a portfolio which is market capitalization and benchmark agnostic strategy. There is the flexibility of investment across the market cap. (i.e. large-cap, mid-cap, and small-cap) and across the sector/industry.

The company makes the investment of funds in the stock market listed Indian equities. There are some basic criteria of stock selection for the investment portfolio.

Investment Philosophy:

  • Companies with consistent and predictable revenue earnings. The focus of the strategy is to select the next big trend.
  • Those companies which have scalable business means there must be growth in term of both value and volume of the products and services of the company.
  • Try to pick a growing stock which comes under the category of a winning stock.
  • Return on Equity (ROE) is also an important factor while selecting a stock for the portfolio. High ROE is a good indicator of self-sustaining capacity and efficiency of a business.
  • The role of the management of the company plays an important role. As they do their best to provide a good return to the investors.
  • The focus of the strategy is to pick small capitalization companies. These companies have a high growth prospect as well as potential to expand its business in the future.
  • The company with free cash flow is also a yardstick on which investment can be done. Once the free cash flow of a company slows down, it becomes an urgency for the stockholder to come out from that stock.
  • The dividend payout of a company is also an indicator of the healthy growth of the company. Because no one company can pay their cash for showing the fake profit.

The portfolio manager always gives their best to generate a superior return (which is definitely a risk-adjusted) by the stock selection which is based on the fundamental research analysis, their valuation, and their businesses. 

The first minimum investment amount which is required to be invested under the investment strategy of the company is Rs. 1,00,00,000 (Rupees one crore only). This amount is not fixed, it can be changed also based on the sole discretion of the portfolio manager.

The return/performance of the investment strategy is measured against the benchmark index NSE NIFTY 50 and BSE SENSEX.


Basant Maheshwari PMS Performance

Basant Maheshwari PMS started its operation in the year 2016 w.e.f 17-02-2016. The table given below shows the performance of the investment strategy or PMS managed by the portfolio manager of the company:

The weighted average method is used to calculate the performance of the portfolio manager.

The above table shows the performance of the portfolio manager with the benchmark index NSE NIFTY 50 and BSE SENSEX.

Looking at the portfolio management services returns of Basant Maheshwari PMS, We can see the portfolio has performed well 5.13% against both the benchmark index just in 1 month 3 days. Again, for the period of 12 months in the FY 2016-17, it has beaten both the benchmark index by giving a superior performance by 31.60 %.

The performance of the portfolio was 20.36% for the FY 2017-18 and it was 11.04% for FY 2018-19.

Hence, the company is a well-performer on the basis of return/performance of the investment portfolio based on its strategy.


Basant Maheshwari PMS Investment plans

The investment plans offered by the company are created with the view of the convenience of investors. Each and every level of investor can invest in PMS easily through the investment plan of the company.

The PMS house offers four different types of investment plans.

  • Bronze: ₹25L to ₹50L
  • Silver: ₹50L to ₹1 Cr.
  • Gold: ₹1 Cr to ₹5 Cr.
  • Platinum: ₹5 Cr. & above

Bronze: This investment plan is created for the low-level investors, who have a low financial capacity or want to invest a minimum amount and a low-risk appetite. The plans allow the investor to invest between ₹25L to ₹50 L.

Silver: The plan allows the investors to invest between ₹50L to ₹1 Cr. If an investor can take a little more risk and have a fund available to invest more than 50L, can opt this investment plan.

Gold: The third investment plan offered by the company is Gold. The range of investment requires is between ₹1 Cr to ₹5 Cr. One who has moderately high-risk bearing capacity can invest under this plan.

Platinum: This plan suit high profile investors who can invest above ₹5 Cr.and have a high risk-bearing capacity.


Basant Maheshwari PMS Commission model

Basant Maheshwari PMS offers flexible commission models to their investors for the sake of their convenience and long-lasting association with the company.

The PMS house offers three different models of commission which are based on different bases i.e. the volume of transaction, the total value of a portfolio, and the profit-sharing. One can choose any model which they feel profitable to them.

The following are the three commission model offered by the company.

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

Prepaid model of commission:

The prepaid commission model allows the portfolio manager to charge the commission before offering actual Portfolio management service to the investor. The total fund invested by a client to the PMS is taken as the base of the commission that is required to pay to the portfolio manager.

A slab of the total value of the portfolio is created by the company on which different percentage of commission is charged by the client.

The risk associated in this model is relatively higher than other commission models.

Volume-based commission model:

Under this commission model, the commission is charged on the basis of the total value of transactions completed by the portfolio manager for the investment portfolio within a year.

In this model, the authenticity of a portfolio manager is very important as it totally depends on him if he wants to increase the volume of total transactions completed. The portfolio manager knows very well that the high volume of the transaction will lead to more commission to him.

So, this is the biggest drawback of this commission model.

A slab of the total volume of transactions and the percentage of commission is created by the company at which the commission is charged.

Profit-sharing commission model:

The profit-sharing commission model is the best model in the industry. In this model, a client always remains in benefit as he/she is responsible to pay commission only after profit realization out of the portfolio.

The portfolio manager always tries to make more and more profit by their expertise because he knows that the higher profit will lead to a higher share of the commission.

The risk associated under this model is very low because a client pays commission only after getting profit. So, the percentage of commission is higher in comparison to the rest of the commission models.

Now, here are the details of slabs and the percentage of commission:


Basant Maheshwari PMS Charges

Basant Maheshwari also charges some costs and expenses to the clients who avail portfolio management services from the company. However, the exact amount and basis of the charge will be informed to the client at the time of the agreement.

Following are the charges which are client will have to pay for availing PMS service from the company.

Management fee: The management fee is charged in order to provide portfolio management service to the client. This charge may be fixed or a percentage of the fund managed by the portfolio manager. In the case of a fixed charge, it shall not increase more than 2% per annum.

The other charges which are required to pay to the company are Custodian/Depository fee, Registrar and transfer agent fee, Brokerage and transaction cost, Securities Lending and Borrowing charges, Certification and professional charges, and incidental expenses.

The percentage/amount of all the above charges will be mentioned at the time of agreement with the mutual agreement between both the parties.


Basant Maheshwari PMS Benefits

Following are the benefits of portfolio management services of Basant Maheshwari PMS:

  • The company does not work through a ready PMS model, it creates a portfolio after going through the need analysis of an investor.
  • It offers affordable and flexible commission model as well as the investment plan which suits each category of investors.
  • The company works through the help of an expert team of portfolio managers and research analysts who are very efficient in their field.
  • Superior customer support is provided to the clients. So that the client can get the answer of their queries through different modes like a direct call to the portfolio manager, Email or Whatsapp, etc.
  • Regular earning growth and future prospect of a company’s earnings are the base on which stock is selected to add in the investment portfolio to provide a healthy return to the investors.
  • A track record of the performance of the strategy used by the company since its inception.

Basant Maheshwar PMS Customer support

Basant Maheshwari PMS offers various types of customer support to their clients in order to give them full satisfaction while dealing with the company.

A client is allowed to call the company directly to get the solution of their portfolio related problems. And for this reason, a relationship manager is appointed by the company.

One can also Email their queries to the company, and the solution will be provided to the client in the same way.

The best part is that the client can directly call the portfolio manager for 5-8 times in a month in order to get an answer to their questions.

The company is liable to solve any problem of the client within 7-10 working days.


Conclusion

Basant Maheshwari PMS is not a very old company but, it has performed very well by following its superior investment strategy. It makes investment portfolio after going through a deep analysis of a client’s need and risk appetite. The strategy used by the company is mostly for long-term investment purpose.

The investment plans and commission model are flexible enough for each category of investors. On the other hand, the charges are very minimal and may differ a bit from client to client based on some criteria.

Hence, if you are the one who is searching a genuine and a well-performing PMS house, don’t hesitate to associate with Basant Maheshwari PMS.

In case you are interested in using top portfolio management services with high returns, let us assist you in taking the next steps forward.

Just fill in some basic details to get started:

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Basant Maheshwari PMS FAQs

Here are some of the top frequently asked questions about Basant Maheshwari PMS you must be aware of:

What is the investment objective of Basant Maheshwari PMS?

The investment objective is capital appreciation through investment in the medium to long-term cap equities.

Is there any contract required between the portfolio manager of Basant Maheshwar PMS and its clients?

Yes, a written agreement requires between both the parties before a portfolio manager enters the portfolio management service to the client.

What is the investment philosophy of the company?

Predictable and consistent earnings of a company are the basic investment philosophy of Basant Maheshwari PMS.

What is the tax liability of a portfolio investor?

The tax liability of an investment portfolio investor is the same as the direct capital market investor.

Is there risk expected in PMS?

Yes, there is risk associated with the portfolio management service, sometimes erosion of the principal amount invested also.

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