Geojit PMS

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Geojit PMS is a well-known portfolio management brand in the market which offers various investment strategies with multiple commission models and investment plans. The company has more than 10 years of experience in the same field.

Geojit PMS Review

Geojit PMS is a Kochi based portfolio management company founded by Mr. C.J George.

 

The portfolio manager is in the field of finance from the last 30 years in which it has more than 10 years of experience in the field of portfolio management service.

It has a strategic presence in the region of the Middle East in the form of partnership and joint ventures.

Also Read: Best PMS Services in India, PMS Review, and PMS Registration

Geojit offers the Discretionary Portfolio management service to its clients. It offers various investment strategies according to the risk-bearing capacity and financial strength of investors.

Also, read Why do I need a Portfolio? and How To Start Portfolio Management Services In India?

The investment team of the company first tries to know the risk appetite and financial health of investor then create an investment strategy for him/her.

Geojit offers investment strategies to the clients according to their risk-bearing capacity and expected time duration of the investment.

They also offer customized strategies.

The investment plan and the commission models are also in choice. The company also gives an attractive return to the investors under the PMS segment since its inception.

Normally, the company operates its portfolio management service with an objective to create medium to long-term capital appreciation (3-4 years of time horizon) through undervalued stocks. 

The team of portfolio managers and research analysts are highly experienced, they give their best towards the performance of investment portfolios.

In this detailed review of Geojit PMS, we will cover all important aspects of the company from the point of view of an investor.

You will find PMS details, types of PMS, investment plans, commission models, manager details, customer support, charges, benefits, Conclusion, and finally FAQs.

So, let’s start our detailed discussion of Geojit PMS!

Geojit PMS Types

Geojit offers two types of Geojit PMS services to its clients. One is discretionary PMS and another is Non-discretionary PMS.
Let’s have a quick look at both PMS types:

  • Discretionary PMS
  • Non-discretionary PMS

Discretionary PMS:

In discretionary PMS service, a client relies fully on the steps or we can say the decision taken by the portfolio manager. Also, the portfolio manager has full right over the investment portfolio of the client. 

It is the responsibility of the portfolio manager to take a decision regarding the scrip which is to be added in the investment portfolio and also in what quantity. He is also responsible for analyzing the portfolio to get higher profit.

Non-Discretionary PMS:

In non-discretionary PMS, a client takes the whole decision related to the investment portfolio. He is responsible for the profit/loss earned from the investment portfolio.

The portfolio manager works just as a trader in this type of PMS service. If a client wants, he/she can ask for the suggestion of the portfolio manager. But, the final decision will be taken by the client only.

Geojit PMS Fund Manager

The portfolio managers and their experience is the strongest pillar of Geojit PMS. Though the company has several experts who work day and night for the profit of the client’s investment portfolio.

Here we are going to discuss one of the best fund managers at Geojit PMS.

Mr Sanjeev Kumar Ranjan (Fund Manager):

Mr Sanjeev Kumar Ranjan is one of the best fund managers at Geojit PMS. He is a chartered accountant by qualification and has more than 22 years of experience in the field of Finance.

Presently Mr Ranjan manages funds approximately 200 Cr. The total number of clients handled by the portfolio manager is around 665. He prefers around 3-4 years of investment tenure to provide the best return to his clients.

The portfolio manager is best known for the return he provides to his clients and the reputation he bears in the market. He has been generating an outstanding return for the clients from many years of his service.


Geojit PMS Strategies

The PMS investment risk strategies offered by a Portfolio management company are created according to the needs and risk-bearing capacity of an investor.

Many companies offer a pre-created strategy while others offer the strategy is created by going through the requirement of a client.

Geojit PMS gives full attention to the investment requirements of its clients. The strategy offered by Geojit strategies is based on long-term, short term, and medium-term return requirement of clients. Thus, they offer three types of strategies.

Following are the PMS strategies offered by Geojit:

  • Advantage portfolio
  • Freedom portfolio
  • Dakshin Portfolio

Let’s try to understand the above types of portfolio:

Advantage Portfolio:

Advantage portfolio is created with the view of taking advantage of the small and mid-cap stocks. These stocks are generally bought with a view to earning higher in the future as these stocks have much chance of growth.

Small and mid-cap companies try their best to perform well to get a position in the market. So, the chances of the growth of the stock price increases.

Normally, the investment is made in those small and mid-cap stocks which have a soundtrack record, growth potential, quality management, and the most important the company must be fundamentally strong.

Freedom Portfolio:

The second investment strategy offered by the company is ‘Freedom portfolio’. In this strategy, the company invests across the companies which are fundamentally strong whether that company has small-cap, mid-cap, or large-cap.

The companies should have a bright future and expected to grow in the future. A fundamentally strong stock always gives a good return to its investors to Freedom portfolio.

Those companies are selected to add in the portfolio of freedom strategy which is undervalued but has high growth potential and at a reasonable valuation.

Dakshin Portfolio:

This investment strategy is a newly launched strategy. It was launched on 15th March 2019.

The investment portfolio under the ‘Dakshin portfolio’ strategy includes 25 high-quality companies which have headquarter in the South Indian States.

The portfolio is the equally weighted portfolio and it includes stocks whose market capitalization is less than INR 50,000 Cr.

The performance of the investment portfolio created under this strategy is measured against custom based Index-MSCI South India 25 high-quality Index created under MSCI for Geojit PMS.

Geojit PMS Returns

The return offered by a portfolio manager is the main thing that attracts clients to the portfolio management company.

If we talk about the performance of Geojit PMS then we can see the Dakshin portfolio strategy is launched recently so we can’t talk about its performance.

Here we are going to look at the three years performance of the remaining two strategies which are Freedom portfolio and advantage portfolio.

On the basis of the past three-year performance of the strategies, it is a bit difficult to predict the future performance of the portfolio manager.

The below-mentioned table shows the performance of the portfolio manager in the last three years:

From the above table, it is clear that the company has not given a consistent return to the clients. However, the above data is only for the past three years of two strategies only.

The third strategy Dakshin strategy launched this year (15th March 2019), so no performance data available.

The past performance of the portfolio manager does not indicate and guarantee the future performance of the scheme.

Geojit PMS Investment plans

Geojit PMS offers four types of investment plans to their clients. Each plan is created with the view of the client’s financial capacity of investment in portfolio management.

Each plan has a different range of investment amount and categorized under different names.

Following are the four types of investment plans offered by the company:

  • Bronze
  • Silver
  • Gold
  • Platinum

Bronze: The cheapest investment plan offered by Geojit PMS is ‘Bronze’. Those who want to take the minimum risk in the portfolio management market and has a low financial capacity can take this plan.

The starting amount comes under this plan. The range of investment is Rs.25,00,000 to Rs.50,00,000.

Silver: If you are an investor who can invest above Rs.50,00,000 but below Rs.1 cr, then this investment best fits you. The range within which one can invest under the ‘Silver’ plan is Rs.50L to 1 cr.

The investors of this category are generally ready to take a bit higher risk than the investor of the first plan.

Gold: The range of investment amount of ‘Gold’ is in the range of 1Cr to 5Cr. Normally, the client who is ready to take the Gold investment plan has moderately high risk-bearing capacity. They invest more to earn high profit from PMS.

Platinum: This investment plan suit high profile clients.

Those investors who can invest above Rs.5 Cr can choose this investment plan. These investors are ready to bear the high risk associated with the portfolio management and hence they also earn higher profit.

Geojit PMS Commission model

The stockbroker Geojit offers the commission model to its clients so that they can pay a PMS commission to the company according to their convenience.

These commission models are based on different factors like the total value of the portfolio, total transaction value, and the total profit earned from the investment portfolio.

Following are the types of commission model offered by the company:

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

Let’s have a quick look at the above types of commission model.

Prepaid commission model:

In this commission model, the commission is paid in advance. The portfolio manager demands the commission without giving the actual portfolio management service. A percentage of commission is fixed between both the parties on the basis of total portfolio value.

The benefit of the commission is that a client is not required to pay more commission after earning a higher profit or increasing total transaction volume. It is fixed.

Volume-based commission model:

The commission model is based on the total volume of transactions generated.

The percentage of commission is taken on the basis of total transaction value within a year by the portfolio manager. The commission amount increases or decreases on the basis of the total volume.

In this model, the chances of fraudulent may increase as the portfolio manager can increase the transaction volume without any requirement just to increase his/her commission.

The percentage of the commission is decided before the starting of the PMS service between both the parties.

Profit-based commission model:

The third and the last commission model offered by the company is ‘Profit-based commission model’. The commission is charged on the basis of the total profit earned by a portfolio manager on the client’s investment portfolio.

The higher the profit, the higher the commission and vice-versa.

This commission model is one of the best commission models in the portfolio management industry. The portfolio manager also puts his/her best effort in earning profit from the investment portfolio as he knows if he fails in providing profit to the client, he will not get the commission.

Now, here you can see a table which explains the percentage of commission in each commission model:

Geojit takes some other charges also from their portfolio investors. These charges include the management fee, brokerage charge, exit fee, custodian charge etc.


Geojit PMS Charges

PMS Charges are charged by the firm from clients for providing their PMS administrative services. Let’s start the discussion on each charge of the company:

Management fee: The management fee is charged as per the commission model opted by the client.

Upfront fee: The upfront fee is just like a prepaid fee. It is charged between 0.55%-0.75%.

Brokerage Charge: This charge is taken by the company for the transactions completed in favor of a client. It is charged in the range of 0.007%-0.017%.

Depository charge: The range of depository charge is between 0.15%-0.25% of total Asset value.

Exit load fee: This fee is charged when you take off your money from the investment portfolio. If that money is charged within 12 months,  the charge will be 0.85%-1.15% of withdrawal value. If the withdrawal of the amount is after the 12 months, there will not be any charge.

Geojit PMS Benefits:

It is true that a company’s offer/benefit to the customers help to attract more and more clients to the company.

Every PMS company wants to give something extra and different to the client from its competitors to survive for a long time.

  • Geojit offers multi investment strategies that work according to the risk appetite and financial capacity of the clients. The strategies are modified after a discussion of the portfolio investment purpose of a client.
  • The commission model offered by the company is of three types. A client can choose the best model which they think fits them according to convenience and benefits.
  • The clients are allowed to get the updated reports of their investment portfolio that help them to get each and every important information related to his/her investment portfolio.
  • Offers the facility to directly call the portfolio manager to know the answer to any serious question related to the investment portfolio.

Geojit PMS Customer support

Customer support is the backbone of any company as it helps the client to get the answer to their queries.

Here, we are going to talk about the customer support facility of the company.

The basic customer support facility of Geojit PMS is available via Chat and SMS. If a customer has any query he can simply chat or SMS the company regarding his/her problem. You can get connected to the customer care executive through the Whatsapp also, as the company gives you the facility of Whatsapp application.

A relationship manager is also there to solve your queries anytime. One can hire the same also to whom they want from the company.

The investor can directly call the portfolio manager also in case of any big query. The client is allowed to call from 8-10 times in a month and this is the maximum limit given by Geojit.

The company is supposed to solve any type of PMS related query of a client within 19 working days.


Conclusion

From the above discussion, we can conclude that Geojit has flexible investment plans, affordable commission models, and attractive investment returns.

Other charges are on par with the industry. The company also supports its clients by offering superior class customer care support.

Overall, we can say that it will be a wise decision if you add Geojit in the list of Portfolio management service provider company list.

Geojit PMS FAQs

Here are some of the frequently asked questions about Geojit PMS you must be aware of:

What are the strategies offered by Geojit PMS?

Geojit PMS offers three types of PMS:

    • Geojit Advantage portfolio
    • Geojit Freedom portfolio
    • Geojit Dakshin portfolio

Is there any guarantee of return?

There is no guarantee of return in the portfolio management service. The return on the investment portfolio depends on the market situation.

What is the maximum number of days in which the query of a client must be solved by Geojit?

The maximum days is 19 working days within which a query of the client will be solved.

In case you are looking to start portfolio management services with a promising fund management company, let us assist you in taking the next steps ahead:

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More on Geojit

If you wish to know more about this investment house, here are a few references for you:

 

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