Emkay PMS is the largest Portfolio Management Services provider in the stock market. It moves forward with a disciplined and fundamental analysis based approach in stock and sector selection. The firm monitors every single stock by the minutes to get the best possible result from the portfolio created.
Emkay PMS Review
Emkay PMS is a Mumbai based private company, established in the year 1995. The firm came in existence in the leadership of Mr Krishna Kumar Karwa and Mr Prakash Kacholia.
Emkay PMS is registered under SEBI and it has a team of many portfolio management experts like fund managers, Wealth managers, research advisors and many associates having a combined experience of more than 25 years.
The client base of Emkay PMS includes High Networth Individuals (HNI) and non-resident Indians who have a long term horizon of 1 to 3+ years, Foreign institutional investors (FIIs), Large corporate houses, family-owned business, etc.
Emkay PMS expertise spread in the Indian equities market from Large-cap funds to Blue-chip companies and well performing mid-cap funds to emerging small-cap funds.
The goal of the fund management team of Emkay PMS is to get maximum return from the portfolio created by them for the clients. The investment process is backed by the expert research team of the firm who track every movement of the stock market at every minute. The firm tries to avoid the high risk associated with the portfolio by staying away from over-diversification.
The good managing art between the risk and reward makes Emkay PMS a top priority in getting portfolio management services.
Emkay PMS Types
In this article, which is about Emkay PMS, we will try to clear each and every aspect which is important from the point of view of a client for the investment purpose. We will cover the types OOF PMS offered by the firm, PMS Strategies, commission model, other charges, performance, investment plans, benefits and many more.
Emkay investment offers two different types of PMS to the clients. One is Discretionary PMS and another is Non-discretionary PMS.
Let’s discuss both types of PMS in brief.
Discretionary PMS: Under this type of PMS, the whole right to handle the portfolio of a client is in the hands of a fund manager. The fund manager can solely make the decision about the portfolio.
He/she can add and/or remove any asset which they think necessary for the performance of the portfolio.
Non-discretionary PMS: Under non-discretionary PMS, instead of giving the right of making decisions related to the portfolio to a fund manager, it remains with the client only. A client can make the decision related to his/her portfolio without any intervention of the firm.
The fund manager can suggest the client regarding the right decision, but the final decision will be taken by the client only.
Though both are the types of PMS, a client prefers discretionary PMS as in this type portfolio is under the eyes of an expert or a fund manager round the clock.
Emkay PMS Manager details
The success of Emkay investment lies in the portfolio management team who is under strong leadership. The team of Emkay includes fund managers, wealth advisors, research associates and equity analysts who give their final judgment regarding a portfolio with their deep understanding of the financial market.
Here is the detail of PMS managers:
Sachin Shah (Fund manager):
Sachin Shah, the fund manager at Emkay PMS has more than 18 years of experience in the equity market. He has expertise in advisory and private wealth management. He has specialized in the field of company research and market strategy also. He also worked as a discretionary portfolio manager in some of the leading broking houses.
He has completed CFA and B.COM.
Krishna Kumar Karwa (Managing director):
Krishna Kumar Karwa, a chartered accountant is a managing director at Emkay PMS. He Has more than 25 years of experience in the equity market. He has expertise in the field of advisory & fund management and research.
Emkay PMS Strategies details
Emkay PMS works under different strategies which are based on personal and financial goals of the clients, the risk appetite of a client and the investment volume.
The four key PMS Strategies which Emkay PMS offers are:
- Emkay Capital Builder
- Emkay Platinum
- Emkay pearls
- Emkay Crystal
Emkay Capital Builder:
Under the Emkay Capital Builder strategy, the firm offers total 25-30 mid-cap stocks which are registered to the S&P CNX 500 Index. This enables complete flexibility in your investment portfolio in stock market caps.
With this strategy, an investor can invest in multi-cap portfolio starts from small to mid to large cap stocks.
Emkay Platinum strategy is a premium offering to the portfolio management clients. Under this strategy, the portfolio consists only of blue-chip funds. Normally, It covers 10-15 stocks which are listed on S&P CNX NIFTY.
The large-cap to mid-cap stocks ratio is in the range of 30% to 70% and 40% to 60%.
Emkay Pearl, it is a strategy under which small-cap funds are combined to the mid-cap funds having high growth potential. This strategy helps in giving a good return to the investors with its unique features. It covers almost 20 to 25 stocks which are listed on the BSE mid-cap index.
Emkay Pearl is created with the help of small-cap funds which combines with the mid-cap funds in the ratio of 30-70 and 40-60.
Emkay Crystal, it is one of the finest strategies as it brings the large cap in the same portfolio as the small-cap and the mid-cap funds. It covers 15-20 stocks which are listed on the BSE 500. The portfolio under this strategy is safer in comparison of others as it is backed with a strong large-cap.
The ratio under this strategy in the portfolio from the large to mid to small funds is 50-20-30.
Here is a quick summary of strategies:
Emkay PMS Returns/Performance
The portfolio management services returns/performance of Emkay PMS is relatively impressive. The performance of the firms has the capability to beat the return of the 10-year mutual fund.
Emkay PMS returns:
- for 3 years is 10% and
- for 5 years 11.5%.
- Again, it’s the performance for 7 years is 12.5%.
- The return is 10% for 10 years and
- for 11 plus years it is 13% CAGR.
The attractive performance of the firm has made it one of the best portfolio management service providers in the country.
Emkay PMS Investment plans
Emkay investment also offers four types of investment plans to its customers like other PMS companies in the industry.
- Bronze (25L-50L)
- Silver (50L- 1 Cr)
- Gold (1Cr-5 Cr)
- Platinum (5 Cr & above)
The first investment plan is Bronze, for those investors who want to invest, the minimum investment in PMS amount and are not ready to take high risk for getting the return. Under this investment plan, the range of investment is between 25L-50L.
The second investment plan Silver which ranges from 50L-1 CR, The third one is Gold, the investment amount ranges from 1CR-5CR and the last one is Platinum which ranges from 5CR & above.
The range of investment is according to the financial strength of each client and at the same time their bearing capacity. A client can choose any plan according to their convenience.
Emkay PMS Commission model
Emkay PMS offers three types of commission model to the clients. Different models of the commission are formed by the company for the easiness, convenience and their satisfaction in giving commission to the fund manager.
Here is the list of three types of commission model:
- Profit based
Prepaid commission model:
The prepaid commission model refers to the payment of PMS commission to the fund manager in advance. Under this model, performance/return from a portfolio doesn’t decide the commission of the fund manager instead they are paid before starting of portfolio creation.
Generally, clients are not interested in this model, just because the possibilities of performance and effort put by a fund manager reduces because they are rewarded in advance. Another disadvantage is the loss of commission money in case of failure of a portfolio.
On the other hand, its advantage is that a client will not have to pay any extra money as the fee or commission if his/her portfolio performs well.
Volume-based commission model:
Under the volume-based commission model, the value of the transaction volume of a particular portfolio in a year decides the amount of the commission/fee required to pay to the fund manager.
In this model, the genuineness of a fund manager is very important as he/she can increase the volume of transactions without any profitable transaction or making transactions by going in the opposite direction of the stock market.
A certain percentage of commission on the range of transaction volume is fixed.
Profit sharing based commission model:
Profit sharing based commission model is one of the best models. Most of the client likes this model as they are required to pay commission only after getting profit from the investment portfolio created.
Under this model, a fund manager puts his/her full effort in booking profit. They know that only after realization of profit from the portfolio of the client will make a commission for him. So, there is no chance of any carelessness from the fund manager’s side. And the client remains assured about getting a genuine service from the fund manager’s side.
A certain percentage of profit is paid to the fund manager as a commission/fee.
Now, the most important thing about these three commission model is the percentage which will be charged as a commission. Here is the detail of the percentages:
Emkay PMS Charges
There are various types of PMS charges also which are levied on the portfolio management service. Charges are brokerage charges, management fees, custodian charges, depository charges, exit load fees, etc.
Here is the range of percentage which is required to pay by a PMS client.
- Management fee- This fee is taken on the basis of the type of commission model selected by the client and Emkay PMS.
- Brokerage charge- It is in the range of 0.007% to 0.011%.
- Upfront fees: It is just like a type of prepaid fees which is levied by the PMS house. It is between 0.75%-1.25%.
- Custodian fee– The range of Custodian charge is between 0.17%-0.27% of total Asset value.
- Depository charges– The range of Depository charge is between 0.10%-0.18% of the total value of the asset.
- Exit load charge: This is the charge which is levied on the withdrawal of funds before a year. If a client withdraws the amount within a year the charge will be in the range of 0.7% to 1.0%. And if the amount is withdrawn after a year then no charge will be taken by the firm.
The percentage of the charge depends on the amount as well as the time of withdrawal.
Emkay PMS Benefits
Following are the benefits of Portfolio Management Services from Emkay PMS.
- Excellent technology used by Emkay PMS helps to evaluate the stocks from a different perspective and considering different factors.
- Emkay PMS is an innovator of the stock evaluation module called E-QualRisk. It compares qualitative and quantitative aspects for calculating risk-adjusted returns.
- The facility of Built-in filters that removes the low-quality stocks from the portfolio universe of Emkay PMS.
- Emkay investment has a team of well-experienced professionals who are experts in their field and can easily provide good portfolio management service to the clients.
- The firm provides the flexible commission model and types of investment plans for the convenience of the clients so that they can select any one according to their wish.
- A client can log in the back office online. It helps them to access all important documents and reports of their portfolio.
Emkay PMS Customer support
As a client of Emkay PMS, you will get various types of support from the firm as it is the record of the company that it provides all possible support to its existing customers.
Emkay investment provides direct call facility to its clients so that they can call for any query related to their portfolio.
They also get Email and chat facility for the convenience and betterment. If a client can not make a call because of any reason, he/she can email or chat with the company.
A relationship manager is also assigned to a client so that they get easily get the solution of their problem related to the portfolio. A client can call the fund manager from 5 to 8 times in a month depending on the portfolio value number of calls are decided.
And the TAT for resolving issues related to the portfolio is 15 working days.
Emkay PMS Conclusion
As a client of Emkay PMS, you will get the best PMS solution in the nation. Its wide range of PMS strategies provides a high-quality PMS solution to all its clients.
Emkay PMS offers various types of useful strategies, commission models and investment plans for its valuable customers so that they do not face any type of problem while handling their PMS.
High-quality customer support and affordable fees add a big plus point to the firm to be selected as their PMS service provider.
Hence, if you are interested in getting PMS service from a reputed PMS house which full-fills your all wish related to the portfolio, then you can choose Emkay PMS as your service provider.
Emkay PMS FAQs
Here are some of the most frequently asked questions about Emkay PMS:
What is Emkay PMS?
Ans: Emkay PMS is a portfolio management services branch of Emkay global which provides world-class PMS service to its clients.
Which strategies are used by Emkay PMS?
Ans: Four types of investment strategies are used by the firm for different reasons. The strategies are Emkay Capital Builder, Emkay pearl, Emkay Platinum and Emkay Crystal.
Who is the fund manager at Emkay PMS?
Ans: Mr Sachin Shah who is a CFA and a commerce graduate, is the fund manager at Emkay PMS.
Is there any charge levied on fund withdrawal?
Ans: The charge is levied on fund withdrawal only if the client withdraws money before the completion of one year of portfolio creation.
Can new fund be added to the portfolio at any time?
Ans: Yes it can be.