ICICI PMS

More PMS

ICICI PMS

7.4

Team Background

8.5/10

Returns

8.0/10

Offerings Range

7.5/10

Charges

6.0/10

Customer Support

7.0/10

Pros

  • Quality Team
  • Better than Average Returns
  • Reasonable Offerings Range
  • Strong Brand Equity

Cons

  • Expensive
  • Support TAT can be Improved

ICICI PMS is a prominent name in the investments market. The company is well known for its investment philosophy and diversified strategies. The best thing that works in their favour is the trust factor the brand i.e. ICICI Direct brings along with the business values. 

Now, whether you can bank just on the brand name for your funds? Or you need more than that before you let this portfolio management services company help in deciding how your money moves in the market?

Well, this review is just to make sure you have a complete 360-degree idea on the different propositions ICICI PMS has to offer and then correspondingly you can take a call.

ICICI PMS Review

ICICI Prudential Portfolio Management Service (PMS) was established by the parenting of the two largest organizations in the year 1995. The first one is ICICI Bank Ltd, which is among one of the most trusted Banks in addition to being the largest private sector bank.

And another is the Prudential PLC UK, an international financial service provider company, whose significant operations are in Asia, US, and the UK.

ICICI PMS has a track record and is successfully serving a large group of clients over the last 10 years. The key person behind the establishment of this PMS house is Mr Nimesh Sah. The headquarter of the company is in Mumbai, Maharastra.

ICICI PMS is serving more than 7,000 clients who are happy with the service offerings of the company.

The company provides financial services to the investors, that matches their need and financial strength. The investment philosophy of the company is based on ‘Growth at Reasonable price’ which is made up of two different approaches of long term investment:

  • Value approach
  • Growth approach

The company identifies the growth opportunities and buys them at a reasonable price. The company has a well-experienced team of professionals that manages the investment portfolio of clients with their expertise. Also, it provides a superior class client service through various modes.

In this article, we will try to cover all important aspects of the ICICI PMS house such as the types of PMS, manager’s details, strategic details, commission/fee model, investment plans, benefits, customer support, conclusion and finally some of the most frequently asked questions about the firm.


ICICI PMS Types

ICICI PMS provides two types of PMS, one is discretionary and another is non-discretionary. The choice of the portfolio depends on the client.

Discretionary PMS: The client manages his/her investment portfolio with the help of the fund manager. The fund manager takes the required decision related to the portfolio and the client can track the performance through the login ID.

Non-Discretionary PMS: If a client decides to take non-discretionary service, then the client will be fully responsible for the return he/she gets from the portfolio. The client can take the suggestion of the fund manager also. But at the last, he decides according to his analysis.


ICICI PMS Portfolio Managers

The professionals of ICICI PMS are famous for their depth knowledge and experience in the field of finance/PMS. The company has a team of fund managers and research analysts who take care of the investment portfolio of clients according to their financial capability and needs.

Here we are going to discuss the two leading portfolio managers.

Mr Parag N Thakkar (Portfolio manager): Mr Parag N Thakkar works as a portfolio manager at ICICI PMS. Before joining ICICI PMS, Mr Parag worked with the Brics Securities, Quant Capital, and Philips Capital (Old name is Refco Sify Securities). He also worked with HDFC Securities as a sales head.

Mr. Parag manages Large-cap portfolio, value portfolio, Enterprising India portfolio, Enterprising India portfolio-II, Flexi cap Schemes. He has completed graduation in commerce stream.

Mr Devi Prasad Nair (Portfolio manager): Mr Devi Prasad Nair has taken the responsibility of sales and business development of ICICI PMS. He has over 10 years of experience in retail/institutional sales and setting up strategic business units. He worked with Birla Sunlife Mutual fund and HSBC Mutual fund.

He has completed an MBA and Masters in Financial Markets.


ICICI PMS Strategy Details

ICICI PMS provides a wide range of strategies in two main forms. Under these two strategies, there are different types of strategies. Here is the detail.

  1. Core strategy:
    • Flexi Cap portfolio
    • Large Cap portfolio
    • Contra portfolio
    • Value portfolio
  2. Thematic portfolio strategy
    • Infrastructure portfolio
    • Export portfolio

Let’s take a quick look at these strategies:

Core Strategy:

As mentioned above, there are 4 types of portfolio caps, here are the details:

Flexi Cap Portfolio:

The portfolio created under this strategy targets long term capital appreciation and generate return by investing in a diversified market cap.

Those stocks are identified, which have a long-term growth prospect at a reasonable valuation.

The portfolio is made up of large-cap, mid-cap and small-cap stocks with 20-25 stocks. The maximum exposure to security is 10% and the maximum exposure to a sector is 25%. The minimum investment horizon is 3 years. The investment return is measured against the S&P BSE 200.

Large Cap Portfolio:

The investment philosophy is to invest in diversified equity which can give long term return to investors mainly through large Cap stocks, and the portfolio managers are confident of a good return.

Under this strategy, investment is made in those Indian companies which have the potential for growth. The companies which are considered for the portfolio should have a track record of earnings growth and should be reasonably priced. Risk is minimized through diversification of the portfolio.

The portfolio is focused on 20-25 stocks with 10% maximum exposure to security. The investment horizon for this strategy is 3 years & above and the benchmark index S&P BSE 100.

Value Portfolio:

The aim of this strategy is to invest in the diversified equity portfolio in those stocks which have high potential but are at a discount to their fair value or are undervalued.

The return is measured against the benchmark index S&P BSE Mid-cap.

Contra portfolio:

The aim of contra portfolio is to invest in those stocks/sectors which are under-performing, expected to perform well in the long term and are available at intrinsic valuation.

The companies can be easily identified as they face a temporary headwind.

The total number of stocks in the portfolio is 25-30. The investment time horizon is 4 years & above and the return is measured against the benchmark index S&P BSE 200.

Thematic portfolio:

Then in the themantic portfolio, there are a couple of strategic ways to carry forward your investments:

Infrastructure portfolio:

The portfolio targets investment in those stocks which is related to the core infrastructure sector. For the safe side, the portfolio may invest in money market instruments and debt.

Export portfolio:

The aim of the portfolio is to get the return and capital appreciation by investing in all those stocks which have the export theme such as Textiles, Engineering, Electronics, Pharmaceuticals etc.


ICICI PMS Returns/performance

The clients of ICICI PMS is not only free to choose a strategy according to his/her investment goal and convenience, but these portfolio management services returns are pretty decent too.

The PMS strategy provides a return of:

  • 15% in 3 years.
  • The return is hiked to 14% in 5 years.
  • It again hikes to 13% in 7 years,
  • then it jumps to 18% in 10 years.
  • And for more than 11 years, it jumps to 24% CAGR.

Hence, we can see the excellent return offered by the ICICI PMS to its customers.


ICICI PMS Investment Plans

ICICI PMS has made it convenient for its customers to join the PMS house through a variety of investment plans. These investment plans have different ranges of investment amount which starts with the minimum investment of Rs.25 Lakhs. The investment plans have different names and ranges which are as follows:

  1. Bronze: ₹25 L to ₹50L
  2. Silver: ₹50L to ₹1 CR.
  3. Gold: ₹1 CR to ₹5 CR.
  4. Platinum: ₹5 CR & above.

All the above investment plans suit to the customers of different risk-bearing capacity and the investment goals. Like the ‘Bronze’ plan suit to those investors who have low risk-bearing capacity and can invest the minimum amount in PMS.

On the other hand, ‘Platinum’ plan suit to those investors who can invest above ₹5 CR and have a high risk-bearing appetite.


ICICI PMS Commission/Fee models

If you are thinking to get a portfolio management service from a firm, then the commission charged by the company for the services offered will be the main thing which you would like to know.

ICICI PMS charges a commission from the clients through different models created by them. These models are created for the convenience and satisfaction of clients.

However, ICICI PMS provides three types of commission models:

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

Let’s start our discussion with the first commission model:

Prepaid commission model:

The Prepaid commission model is opted by those clients who are ready to pay the commission before getting portfolio service. Under this model, the commission is paid in advance without knowing the portfolio return.

However, the commission charged under the model is lower than the rest of the commission models because of pre-payment of commission and risk-taking.

A percentage of the commission is charged against each range of investment amount.

Volume-based commission model:

The volume-based commission model takes into the account, the total value of transactions completed within a year. If the volume generated is higher, the commission will also be higher and vice-versa.

It is very important that the fund manager would be genuine who will do only required transactions for the investment portfolio. Because an unauthentic fund manager can easily increase the volume of transactions without requirement. They do so to increase the amount of commission charged by the clients.

Profit-sharing based commission model:

This commission model allows the client to pay the commission only after realization of profit from the investment portfolio. This model is the most favoured commission model for the clients as they do not bear any risk of loss of commission.

In the rest of the two commission model, there remains risk up to some extent. So, the percentage of the commission charged by the fund manager is relatively higher. The higher the amount of investment, the lower will be the percentage of commission.

Now, in the below-mentioned table, you will find the percentage of commission and the range of investment amount under each commission model.


ICICI PMS charges

If you go to take PMS service from ICICI, you will have to pay some other charges also with the commission/fee of the fund manager. These charges are management fee, brokerage charge, upfront charge, custodian charge, depository charge, and exit load charge.

Management fee: Every PMS house charges the fund management fee from the clients. It varies from 1% to 3%, depending upon the PMS house and the types of commission model opted by the client and the fund manager.

Brokerage charge: The fund manager charges the brokerage fee from the clients from 0.15%-0.35% of total asset value.

Upfront charge: This charge is most likely to the prepaid fee. It is charged between 1.4%-2.0% of the asset value.

Custodian charge: ICICI PMS charges custodian charge somewhere between 0.4%-0.5% of total asset value.

Depository charge: Including all above charges, ICICI PMS also charges depository fee which is between 0.18%-0.22% of asset value.

Exit load fee: The exit load fee depends on the duration and the range of the withdrawn amount. If the amount is withdrawn before one year of portfolio creation, ICICI PMS will charge 1.50%-2.55% of the withdrawal value. On the other hand, if the amount is withdrawn after one year of portfolio creation, no fee will be charged.


ICICI PMS Benefits

There are a lot of benefits which are provided by ICICI PMS house to its valuable investors. All PMS houses make themselves different from their competitors by taking the investment decision on the basis of unique investment philosophy, customer support, highly-experienced management team, etc.

Here are the details of Portfolio management services benefits from the house of ICICI PMS:

Disciplined investment process and investment philosophy: The PMS house follows a disciplined approach of investment philosophy and process which helps them to take the right investment decision. It runs its business by following the principle of identifying growth opportunities at a reasonable price.

A team of highly talented and experienced professionals: The company has a highly experienced and highly qualified team of investment portfolio managers and analysts. They take investment decision according to the investment goal and risk-appetite of clients.

Extensive research facility: ICICI PMS has an extensive in-house research team who is expert in researching those companies which are more profitable and suits best to the required strategy.

Comprehensive understanding of the Indian corporate sector: The company is in the market for a long time. It has a comprehensive understanding of the Indian businesses and industries. So, it becomes easy for the company to take the right investment decision within a time period. The company is well experienced that which sector will move in which direction in which situation.

Track record of managing PMS: The company has a track record in managing the investment portfolio of investors. So, new investors can easily trust the company.

Transparency to investors: ICICI PMS provides periodical information to the PMS investors to maintain and ensure transparency.


ICICI PMS Customer support

The customer support offered by the PMS house to its clients, if reasonable,  makes the client base of the company stronger. Also, it is one of the important things which a client looks for before joining a company for PMS service.
Here are some of the customer support provided by ICICI PMS:

The client of ICICI PMS can call the company directly to solve their queries. They are also provided E-mail and Whatsapp support 24*7.

A relationship manager is also available for you to make the relationship strong between you and your manager. He helps to solve the queries if arises to any party.

High net-worth clients are allowed to call the fund manager to ask any question related to PMS from 3-5 times in a month, while the low net- worth clients can call between 1-3 times in a month.

The TAT for the issue resolving is 8 working days.


ICICI PMS Conclusion

ICICI PMS is a well-known name in the financial market. The company provides a wide range of investment strategies to the clients which suit the need risk appetite of clients. The investment portfolio is handled by the world-class PMS team of the company.

ICICI PMS provides flexible investment plans and commission model so that the client can choose any plan according to their satisfaction. The customer support system provided by the company is highly structured.

Overall, we can say that ICICI PMS is one of the best PMS services in India for you.

In case you wish to use portfolio management services for your funds, let us assist you with one of the most promising and trustable services in this domain.

Just fill in some basic details in the form below to get started:

PMS Form

ICICI PMS FAQs

Here are some of the most frequently asked questions about ICICI PMS:

Who are eligible to invest in PMS?

The following persons are eligible to invest in PMS:

  • Hindu undivided family (HUF)
  • Individuals (Residents and non-residents)
  • A public/private corporate body
  • Registered trusts
  • Partnership firms
  • Any other eligible body

What are the benefits of PMS?

  • A client gets personalized attention.
  • Buy/sell decision is taken by the fund manager on behalf of clients, but with the consultation of clients.
  • Regular update on performance, investment strategy, and market outlook.
  • Customized solution

For more, check the ‘ICICI PMS Benefits’ section above.

What a client needs to pay for PMS?

A client pays a fixed percentage of commission which is based on different ranges of investment amount or volume of total transactions or total profit generated from the PMS. Except this, brokerage charge, custodian charge, management fee, exit load fee, depository charge are levied on PMS.

Is there any risk associated with PMS?

Yes, all PMS associates a certain amount of risk. The risk includes possible erosion of principal amount also.

Is there any agreement requires between the fund manager and the client?

Yes, before starting the PMS service, an agreement is required to be signed between both the parties.

If you wish to learn more about ICICI Direct and its various offerings, here are a few references for you:

 

Also Read:

 

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