Best PMS In India

More about PMS

Portfolio management services follow the principle of minimum risk and maximum return. Those companies which are the best PMS in India run their business on the same principle. What about your investments?

Let us understand the meaning of PMS first and go through PMS Details.

PMS helps in wealth management by diversifying the risk. The main focus of the portfolio management service (PMS) is to help their client in managing a profitable portfolio and give them exclusive personal inputs for the same.

You might also be confused as to why you need a portfolio. That’s because you certainly would not want to take risks beyond your risk appetite.

So, if you meet the eligibility criteria like minimum investment in PMS, you can build a diversified portfolio with the help of a fund/ portfolio manager.

Are you taking a risk by believing in a PMS service that might not be good enough or provide low portfolio management services returns? Or are you still thinking about which PMS service to go ahead with?

Also, PMS is regulated by SEBI. Read about Portfolio Management Services Regulations SEBI here. It is very important to understand the concept of PMS India. Further, you must understand the PMS features.

Well, these questions are important as it’s your hard-earned capital at the end of the day that you are going to invest.

Before knowing How To Start Portfolio Management Services In India?, you must know the best PMS in India.

Before we answer all those confusions, let’s start our discussion by finding the answer to how important is Portfolio Management? And why you should be using these services in the first place.

Portfolio Management Services In India

There are various reasons which make the Portfolio management service important for the market players. The importance of PMS is very important in selecting the best PMS in India.

Here we are going to discuss some of the reasons for its importance.

  • Portfolio management service is the best method to select the right “Investment Strategy” for your funds. The strategy is created after going through various factors like the client’s age, fund availability, risk-bearing capacity, income, etc.
  • It works on need analysis of an individual customer. So, ‘Customization’ of the investment portfolio is possible. The investment portfolio is created/customized as when you require money, what is your return expectation, and what time horizon you select for the investment.
  • The service takes into account the changes which are made in ‘Tax Law’ of the investment portfolio.
  • Your fund remains in safe and expert hands for the investment. So, you need not leave your other important works to concentrate and regularly follow the capital market.

Now, moving ahead, we will try to understand the factors on which the best PMS services are ranked or in other words how this ranking has been made.


Best PMS in India – How are the Rankings done?

Choosing the best PMS service provider is actually a challenge for investors. There is no fixed parameter on which it can be said for sure that the company is the best PMS service provider.

However, there are some basic criteria on which this ranking has been made.

  1. Track Record/Performance

Checking the track record of companies on the basis of performance, customer support, strategies, commission/fee, etc are some factors that make the reputation of PMS companies. A company with good credibility certainly performs better than competitors.

  1. Investment strategies

The success of investment strategies as well as an excellent customized investment strategy also makes a company different from the competitors. A well-designed strategy which is created after need analysis of clients provides an excellent return and ultimately makes the company better than competitors.

  1. Commission model

A flexible commission model makes the customer delight and attracts more and more customers towards the company. So, the commission model is also a basis on which the ranking of a PMS company is made.

  1. Portfolio manager Background

The success of a PMS house depends on the portfolio manager up to the maximum extent. The experience and the educational background of the professionals decide the return/performance of the portfolio and ultimately the ranking of a PMS house also.

  1. Initial fee

Some PMS houses charge a higher initial fee to the portfolio management company while the others charge a low. So, definitely, customers will attract towards the company which charges a low initial fee.

  1. Customer support

A team of dedicated staff who are appointed by the company exclusively for the customer support and also various means of communication provided by the company, keep the ranking of a PMS house at the top.

  1. Portfolio disclosure

As all PMS companies are required to disclose their investment portfolio twice in a month but, some companies disclose it on a quarterly basis and customers get attracted to these companies.

After getting familiar to PMS House, know about how does a PMS house function?

Lastly, a factor that influences the final decision of every investor is PMS Charges.


Best Portfolio Management Services

As you are well aware of the factors involved in selecting the best PMS in India, here is a quick look at them.

These best PMS services in India 2020 have been listed along with the corresponding data and the reasoning on these being part of the list:

Porinju Veliyath PMS

Porinju Veliyath PMS was incorporated in the year 2002 since then it has grown as one of the best PMS in India. The company has various classes of clientele from India and abroad.

The value of PMS it manages starts from a few lakhs to millions.

Mr Porinju Veliyath is the founder & CEO of the company. His name comes under one of the best fund managers in India.

The simple investment philosophy of the company is to ‘buy something for a rupee, which is worth two rupees’.

The minimum amount required to make the investment in Porinju Veliyath is ₹50,00,000.

The company offers the investment strategy ‘Equity Intelligence strategy’. The best thing about this strategy is that the investor can withdraw money whenever they want.

One has the capacity to invest the minimum amount of criteria to join this strategy.

The performance/return of the strategy is outstanding. The PMS service has returned 47% in FY17, which is better than the benchmark index NIFTY (18.56%) and BSE 500 (24.03%).

The management fee of the company will be charged as follows:

  • Fixed management fee: 2% per annum and 0.5% quarterly on the basis of average NAV.
  • Performance Fee: 10% of returns above 10% per annum.

Here is a quick summary:


Motilal Oswal PMS

The name of Motilal Oswal PMS comes under the name of the largest PMS houses in the country and is certainly a deserving part of this list on the Best PMS in India.

The company was established by Mr Motilal Oswal and Mr Ramdeo Agarwal in the year 1987.

The asset management company offers an excellent return to the investors by investing in small-cap and mid-cap companies.

The PMS house offers three types of strategies which are Value strategy, Next trillion-dollar strategy, and the India opportunities portfolio strategy.

The total number of stocks in the portfolio is in the range of 20-26 stocks. These strategies best suit the clients who can’t wait for the medium to long term to get the return.

The minimum investment in PMS amount for these strategies is ₹50,00,000. A client can add additional ₹50,00,000 as a top-up in any of the strategies.

The performance/return of the company in the last 5 years is approx. 32% and for the last one year the return is 19%.

An NRI can also invest in Motilal Oswal PMS.

The management fee of the company will be charged according to the strategies model.

Here is a quick summary:


Invesco PMS

Mr Saurabh Nanavati is the founder of Invesco PMS. He started the company in the year 2007. The company is well-known to offer superior performance over the years. Invesco PMS is among the best PMS in India.

 It offers three types of strategies:

  • Factor Investing strategy: A particular factor is considered while investing rather than a sector/industry.
  • Smart Beta Strategy: Generally delivered through Exchange-traded funds (ETFs).
  • Alternative strategy: Investment is done other than long-term equities and Fixed deposits. Like Commodities, Natural resources, Infrastructure, real-estate etc.

Now as per the PMS SEBI rules, the minimum investment changed from ₹25 lakh to ₹50 lakh.

All three strategies perform very well and provide a healthy return to investors. The performance of the company in the last 5 years is 8.5%, while the return is 9% for 10 years CAGR.

The management fee of the company will be charged according to the investment strategy model opted by both the parties.

Here is a quick summary:


Ask PMS

Ask PMS is one of the best PMS in India. The company runs its business on the philosophy of capital appreciation with capital protection as well.

The strong professional team of the company takes care of risk minimization with a healthy return.

Ask PMS offers various strategies which are created according to the financial/investment objective of clients and their risk-bearing capacity.

The strategies offered by the company are:

  • Ask Growth strategy
  • Ask Life strategy
  • Ask Indian Entrepreneur portfolio strategy
  • Ask Strategic portfolio strategy
  • Ask India Select portfolio strategy

The minimum investment required to make an investment under these strategies is ₹50,00,000.

The company offers an attractive return to investors. The return for the last 5 years is 17% and for the last 10 years is 17%.

The management fee of the company will be charged as follows:

  • Fixed management fee: 2.5% of portfolio value per annum 
  • Performance Fee: There is a fixed fee of 1.5% of returns +20% gain above 10% of the profit. 

Here is a quick summary:


Alchemy PMS

Alchemy PMS is well known to deliver the best return as per the client’s expectation and investment objective. The team of fund managers and research analysts of the company has an excellent understanding of the market.

It is one of the top PMS in India as they are able to choose those stocks which can perform well irrespective of their sector performance.

The PMS strategies offered by the company are:

  • Alchemy High Growth PMS: Consists of 20-25 stocks in the portfolio, time horizon- 3 to 5 years, minimum investment-₹50,00,000.
  • Alchemy High Growth- Select stock PMS: The portfolio consists of 8-12 stocks, the time horizon of investment is 3-5 years, and the minimum amount required under the strategy is ₹3 Crores.
  • Alchemy Leaders- PMS: The focus of the strategy on Large cap.companies. The minimum investment amount is ₹50,00,000 and the time horizon is 3-5 years.

The performance of the company is good enough for investors. It gives the return of 16% for 5 years and 17% for 10 years CAGR.

The management fee charged by the PMS house is according to the commission model but generally, it remains in the range of 2%-2.5%.

Here is a quick summary:


Reliance PMS

Reliance PMS is the name of trust for the portfolio management investors and is easily one of the Best PMS in India. The company is grooming day by day the leadership of Anil Ambani, who takes care of Reliance Securities as well, another financial house in the stock market space.

The portfolio of investors is managed by a team of experts.

The company has a track record of offering superior performance/return to the investors.

Reliance PMS offers three strategies:v

Absolute Freedom strategy: The portfolio includes 2/3rd large-cap and 1/3rd quality mid-cap stocks. The time horizon is 3-5 years. The portfolio is created through a total 20-25 stocks.

High Conviction strategy: A multi-cap portfolio with the stocks in the range of 20-25 and the time horizon is 3-5 years. The portfolio includes Large-cap: 30%-60% Mid-cap: 30%-50%, and Small-cap: 20%-50%.

Emerging India strategy: Includes high growth potential stocks only. The time horizon is a minimum of 3years. The 5 years return offered by the company is approx 11% and for 11 years the return is 19%. It shows an excellent performance of the company.

The fee charged by the company is as per the commission model opted by both the parties.

Here is a quick summary:


Kotak PMS

Today the name of Kotak PMS comes under the name of the largest and the best PMS in India. All this is because of the huge brand equity created by its parent company i.e. Kotak Bank.

The company provides stock market services through Kotak Securities and it believes that the risk associated with the portfolio can be minimized by going through deep research and analysis of each portfolio stock.

The portfolio stocks are purchased from discount to the intrinsic value.

Kotak PMS offers some successful strategies to the clients which are:

  • Small and mid-cap strategy: Flexible towards investment in large-cap stocks in the range of  25%-30%. The total number of stocks in the range of 10-30.
  • Special situations value portfolio: The Value of a stock arises from some special situation like merger & acquisition. It consists of 10-30 stocks.
  • Pharma focused strategy: Only pharma companies are selected to add in the portfolio.

The company has a track record of offering a superior and healthy return to the investors. It has provided a 13% return for 5 years and 15% return for 10 years.

The fee charged by the company are as follows:

  • Fixed Management fee: 2.5% per annum payable quarterly.
  • Brokerage charge: 0.1%
  • Exit load fee: 3% for 1st year, 2% for 2nd year, 1% for the 3rd year.

Here is a quick summary:


ICICI PMS

The PMS house is well-known through its parent company ICICI BANK Ltd. which is the largest private sector bank of India.

The financial house also has ICICI Direct as one of its subsidiaries providing services in stock market investments space.

The company, easily making the list of Best PMS in India, serves a wide range of customers over a decade and makes an investment through value and growth approach.

The professional team of the company is very efficient in making the investment through need analysis and risk-bearing capacity of a client.

The company provides four different strategies which suit the different category of clients:

  • Large Cap Portfolio: Investment in large-cap stocks, total 20-25 stocks with the time horizon of 3 years & above.
  • Flexi Cap portfolio: It consists of multi-cap stocks with total 20-25 stocks. The minimum time horizon required 3 years.
  • Value portfolio: A diversified equity portfolio that is fair to undervalue.
  • Contra portfolio:  Stocks expected to perform well in long-term and can be bought at intrinsic value. The portfolio consists of 25-30 stocks with the time horizon of 4 years & above.

ICICI PMS helps the clients to achieve their investment goal by offering them return according to their expectation.

The return of the portfolio of the company for 5 years is 14% and for 10 years it is 18% CAGR.

The charges of the company are also very low as compared to its peers.

  • Fixed management fee: 1%-3%
  • Exit load fee: 2%-2.55%

Minimum investment required ₹50,00,000.

Here is a quick summary:


Birla Sunlife PMS

Birla Sunlife is among the best PMS service in India. The company started its journey in 1994 under Aditya Birla Money.  The company chooses those stocks which have high growth prospects and showing high yield in the future.

The team of professionals is expert in the selection of the right stock for the investment portfolio of the client based on their investment goal, the time horizon for investment and risk-bearing capacity.

The strategies of the company are:

Core equity portfolio: Total number of stocks are 25-30, minimum investment – ₹50Lacs, the time horizon-minimum 50L.

Customized debt portfolio: Minimum investment is ₹50 Lacs, the time horizon is between 3 months-3 years.

Select sector portfolio: A minimum investment of ₹50 Lacs and the time horizon is a minimum of 3 years.

The performance/return of the portfolio in 5 years is 10% and in 10 years, it is 21%.

The company charges a management fee of around 2.5% per annum. And the exit load fee is in the range of 1.2%-2.2% of total withdrawal.

Here is a quick summary:


Angel Broking PMS

If we talk about the Best PMS in India, we cannot forget Angel Broking PMS. The PMS House established in 1997 by Mr.Dinesh Thakkar, is famous for its outstanding return offering to the investors.

We have seen that through Angel Broking and the kinds of heights that financial houses have reached.

The company tries to full-fill the investment expectation of an investor by minimizing the risk associated with the portfolio. So, the following strategies are created by the company:

  • Angel Evergreen Large-cap portfolio: Large market-cap stocks are selected for the time horizon of 18-24 months. Both risk and return are moderate.
  • Angel Lotus portfolio: Stocks that are fundamentally strong and a mixture of both value and growth for 18-24 months.

A strong return is offered to investors. The return of the portfolio for 5 years is 9% and for 10 years it is 12%.

An investor is required to pay charges to avail the service of the company:

  • Management fee: 2% per annum
  • Brokerage fee: 0.5% each transaction.

Here is a quick summary:

Below is a compiled table of the best PMS in India:

 


Conclusion

So, we have discussed the top 10 PMS services in India. If you want really a good portfolio management service with affordable or low charges and attractive investment strategies, you can choose any of the above.

These are considered to be the best PMS in India and their portfolio management services returns have proven them over and over again. Also, from the above list, you must have noticed that there are a lot of PMS types.

We hope this list of the best PMS in India 2020 has helped you in finalizing the right PMS Company.

In case you wish to get started with promising and high-performance portfolio management services, let us assist you in taking things forward for you.

Just fill in some basic details in the form below:

PMS Form

 

Here is a quick summary:

 

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