Edelweiss PMS is a popular portfolio management services company in the market and well-known for its portfolio strategies used for getting a good return of the portfolio.
This PMS house is seen as one of the trustable financial brands by prospective investors. But, does the company actually provide reasonable returns? Let’s figure out in this detailed Edelweiss PMS Review, starting with a few basics.
Edelweiss PMS Review
Edelweiss PMS was founded in the year 2009, by the team of Nalin Moniz and Radhika Gupta with the headquarters of the company in Mumbai, Maharastra. The former name of the company was ‘Forefront Capital’. Both the founders were graduated from the Wharton School in Economics (Finance) and Computer Science from the Engineering school.
Before founding the company, both the founders were portfolio managers at with the two famous Asset Management company named Goldman Sachs Asset Management and AQR Capital management. They joined hands to start their new business in the world of PMS when the hedge funds and systematic investment both were just started in India.
Today, Edelweiss PMS provides a wide range of PMS products to the customers.
The investment decisions taken by the company are based on arbitrage, Asset allocation, and the model of security selection developed by the team of Edelweiss PMS. The firm received the first domestic hedge fund license of India in the year 2012, under the category of New SEBI Alternative investment fund.
Edelweiss PMS works on the philosophy that both macro fundamentals and economic institution will deliver the long term return to the investors. The team focuses on absolute return-oriented strategies. It takes comparatively the lower risk than traditional long term strategies risk.
In brief, here are a few details about Edelweiss PMS:
The old name of the firm is ‘Forefront Capital’.
Focuses on the Indian markets for providing portfolio investment services to the clients.
Data-driven investment based on Fundamentals of a company.
It serves institutional investors, major family offices, Corporate treasuries, and High net-worth clients.
Name of the company
Founded in the year
Nalin Moniz, Radhika Gupta
Event Arbitrage PMS Dynamic Value PMS Smart Asset Allocation PMS
As we know that there are two ways through which a client can invest in the portfolio. One by taking their own decision for the portfolio and another is by the help of a fund manager.
So, the two different types of PMS is provided by most of the PMS houses to attract more clients to the company. And Edelweiss also provides two types of PMS that are:
Under this type, the decision related to the investment portfolio of an investor is in the hands of a portfolio manager. He is responsible for the whole activity like the performance/return of the portfolio.
The fund manager gets the right to add or remove any product from the portfolio if he feels that is good for the performance of the portfolio.
Under this type of PMS, the right of decision making related to the investment portfolio lies in the hands of a client instead of a fund manager.
The client can self handle the investment portfolio without any interference of the portfolio manager. And the client will be responsible for the positive or negative result of the investment portfolio.
Edelweiss PMS Manager details
Edelweiss PMS has a team of expert portfolio managers who provides their expert knowledge and years of experience to the portfolio investors.
Here we are going to discuss a brief of the top two fund managers at Edelweiss PMS:
Mr Sahil Shah (Fund manager):
Mr Sahil Shah has a huge experience of 8 years in both sides of businesses (Buy and Sell) as an equity research analyst. Presently, he is working as a fund manager at Edelweiss PMS. Before joining Edelweiss, he was working with Anagram Capital Limited.
Mr Sahil has completed the CFA from ICFAI University.
Edelweiss PMS Strategies Details
Edelweiss PMS has a variety of strategies which is used for getting the best result out of portfolio investment by considering the PMS investment risk. The firm has a long term strategy, Mid-term strategy, and short-term strategy. But like other firms, the company has some specific strategy also which are used to get a better result than the competitors.
Following are the three strategies used by the company:
Edelweiss Event Arbitrage PMS
Edelweiss Dynamic Value PMS
Edelweiss Smart Asset Allocation PMS
Let’s discuss the above three strategies one by one:
Edelweiss Event Arbitrage PMS:
The Edelweiss Event Arbitrage PMS comes under Discretionary PMS. This is a fundamental absolute return strategy. It searches special opportunities/situation in the equity market that arises from time to time.
Its aim is to generate absolute return out of the investment portfolio while catching the special opportunities in the stock markets.
This strategy participates in corporate events through open provides available in the market. Under this strategy, investment is made in 4-8 event trades at any point in time, each of them lasting between 30 days to 6 months of duration. The return/yield ranges 15%- 60%.
The strategy is available for domestic individuals and corporate clients only. The recommended time for the return from this strategy is 18 months.
The strategy searches special opportunities arises in the market.
Investment is made for 4-8 event trades, each lasting 1-6 months.
Expected yield 15%-60%.
The recommended time duration of return is 18 months.
Edelweiss Dynamic Value PMS:
Edelweiss Dynamic Value PMS is a long term equity strategy that focuses mainly on the return from equity. The aim of the strategy is to generate absolute returns from equities. The companies which are the value, quality and safety oriented comes under this strategy. It means selective companies become part of this strategy.
The focus of the strategy is on taking less risk than the benchmark.
The recommended time horizon for this strategy is 2 years for getting a return. This strategy is created for domestic Individuals, NRI Demat Account, and Corporates.
The main focus is the return from the equity.
The value, quality, and safety oriented companies come under this strategy.
The recommended time horizon for return is 24 months.
Clients are Individuals.NRIs, and Corporates
Edelweiss Smart Asset Allocation PMS:
Edelweiss Smart Asset Allocation PMS is a multiple asset class allocation PMS. The strategy is customized in such a way that it beats inflation steadily and provides an absolutely positive return on portfolio investment.
The investment is made in different assets like Gold, Debts, and equities. Macro fundamental plays an important role under this strategy because it is based on valuations, demand & supply, and macro policies.
If the portfolio investment is created under this strategy, then one will have to wait for a minimum of 24 months to get the return or for the performance of the portfolio. The strategy is open for Domestic Individual, NRIs, and Corporate houses.
Multiple Asset allocation PMS like Gold, debts, and equities.
Based on Macro fundamentals.
The minimum time horizon for return is 24 months.
The Strategy is open for individuals, Corporate, NRIs.
Edelweiss PMS Returns
The portfolio management services returns from the Edelweiss PMS attracts more and more investors towards the company to get its outperforming service. The Edelweiss PMS has beaten around 10 years Mutual fund return also. It shows the strong performance of strategies used for getting the return out of the portfolio:
The 3-year performance of Edelweiss PMS is 12%,
it is 8% for 5 years.
Again, the return for 7 years is 13%,
for 10 years, it is 15%, and
the return is 14% for more than 11 years.
Hence, the outstanding performance of Edelweiss portfolio makes it one of the best PMS companies for getting a good return from the portfolio investment.
Edelweiss PMS Investment plans
Edelweiss PMS provides some investment plans for those who want to get portfolio management service from the company. The plans are made in such a way that it suits to every class of investor like those who have a low-risk appetite and for those also who have moderate as well as high risk-bearing capacity also.
The firm has made four different slabs under a different investment plan name. An investor can choose any plan after analyzing their investment objective and risk appetite.
Here are the names and slabs of investment plans.
Silver (50L- 1 Cr)
Gold (1Cr-5 Cr)
Platinum (5 Cr & above)
The plan ‘Bronze’ is for those who have a low-risk appetite, one can invest in the range of 25L to 50 L under this plan. The second investment plan is ‘Silver’, it ranges from 50L to 1 CR so those who have a moderate risk appetite, can choose this plan.
The third one is ‘Gold’, this plan suits to those investors who have moderately high-risk Appetite and the range of investment is 1CR to 5 CR. The last one is for High- risk appetite investors who can invest a minimum of 5 CR.
So, as an investor, you can choose the plan which suits you.
Edelweiss PMS Commission/Fee model
The commission/Fee model of any PMS firm plays an important role. As each and every client gives full attention to the fee structure which will be charged from them for the services they will get.
Edelweiss PMS provides different types of commission model for the convenience of clients. They can choose any model of commission, they think better for them.
Here is the name of the commission model provided by Edelweiss PMS:
Prepaid commission model
Volume-based commission model
Profit-sharing based commission model
Let’s discuss each commission model one by one:
Prepaid commission model:
The name of the model reflects its meaning itself. The Prepaid commission model means commission in advance. If you want to join Edelweiss PMS for making portfolio investment, you have an option of the prepaid commission also to pay the commission.
Under this model, you will be asked to pay a commission to the fund manager without starting a portfolio management service.
The commission will be decided in advance on the basis of the value of your portfolio you want to invest. A pre-decided percentage of your investment value will be required to pay to the fund manager as a commission/fee.
Volume-based commission model:
Under this model, an investor is required to pay the PMS commission on the basis of the volume of transactions completed for his/her portfolio in a year. The total worth of the transaction volume decided the commission required to pay to the fund manager.
The higher the value of the total number of transactions completed, the higher will be the commission of the fund manager. So, the authenticity of the fund manager plays an important role in this model.
Only a genuine fund manager will try to get the return from the portfolio with the minimum number of transaction because he knows that his commission can be increased with the increase in the volume of transaction.
A particular percentage of the volume of the transactions is decided by both the parties to charge as a commission.
Profit based commission model:
Profit based commission model is one of the best models in the PMS industry. Under this model, the commission is paid on the basis of profit generated by the fund manager out of the investment portfolio. The higher profit means the higher commission.
So, without any doubt, this is the best model because the fund manager puts his/her full effort for getting a positive return from the portfolio. Here the question of fund manager’s authenticity does not arise because he will do his best for this.
A fixed percentage of profit is shared with the fund manager as the commission/fee.
Here is the table to show the range and percentage of commission that will be charged:
Management fee: Management fee is based on the type of commission model opted by the client and the fund manager.
Brokerage charge: It is charged by the portfolio manager for the service provided to the client on the basis of all transactions.
Upfront charges: This charge is just like pre-paid charge imposed by the team of Edelweiss. The range is between 1.1%-2.1% of total asset value.
Depository charges: This charge is levied between 0.14%-0.24% of total asset value.
Custodian charge: It is charged for the custody of your investment portfolio by the firm. It is range is between 0.35%-0.45%.
Exit load charges: This is charged on the basis of withdrawal amount and timing of withdrawal also. If the amount is withdrawn before one year of portfolio creation, the amount will be charged between 1.3%-2% of the value of total withdrawal.
Generally, no charge is levied on the amount withdrawn after one year of portfolio creation.
The firm provides multi-strategy for the investment portfolio that suits you according to your investment goal and risk appetite.
Flexible investment plans and commission/fee models. It helps the client to get an investment plan and commission model according to their convenience.
The team of expert analysts and portfolio managers provides superior portfolio service to the clients.
Facility to access the details of the investment portfolio and reports.
Edelweiss provides the top-up facility to all its clients which give them full satisfaction.
Clients get Email and SMS facility to get the updates of their investment portfolio and other relate updates too.
Track record of continuous superior performance/return of the investment portfolio.
Edelweiss PMS Customer Support
Edelweiss PMS gives all kinds of required customer support to the clients. It provides direct call facility to the clients. They also provide Email facility to the clients.
Edelweiss PMS also allows all of its clients to call the relationship manager to solve their queries related to their portfolio. Clients with high net worth can directly call the fund manager for 2-5 times in a month.
And low net-worth clients can call the fund manager for 2-3 times in a month.
The Turnaround time for issue resolving is the maximum of 7 business days.
So, we can see the clients get many customer support from Edelweiss PMS.
Edelweiss PMS Conclusion
Edelweiss PMS is one of the well-known PMS houses that provides various types of portfolio related services to the clients. The firm has effective investment strategies which work according to the investment need and risk appetite of investors.
The company provides flexible investment plans and commission models to the clients so that they can choose any plan according to their satisfaction.
It has a good research team and a well-experienced team of fund managers who do their best for the best performance of the client’s investment portfolio.
So, if you are in the search of a good PMS company, undoubtedly you can add edelweiss PMS in your search list.
In case you are looking to use PMS for your funds, let us assist you in making the best of the choices. Just fill in some basic details and we will get it started for you:
Edelweiss PMS FAQs
Can a client add a lump-sum amount in his/her invested portfolio?
Yes, a client can add a lump-sum amount either on a monthly basis or can make a one-time investment.
Can a client close his portfolio account at any time?
Yes, it can be closed at any time. One can close it either by closing the portfolio account or can stop investing in the portfolio with a click of a button only.
How do a client can withdraw the invested amount?
It is a button click work. Once the invested amount is withdrawn, it will be available in the client’s bank account on the 3rd business day.