IDFC PMS

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IDFC PMS

7.6

Team Background

7.5/10

Returns

7.5/10

Offerings Range

8.0/10

Charges

8.0/10

Customer Support

7.0/10

Pros

  • Good Returns
  • Multiple Strategies
  • Old Name in the Industry
  • Reasonable Fees

Cons

  • Customer Support can be Improved

IDFC PMS is a portfolio management branch of IDFC Asset management company Ltd. It is one of the largest Mutual fund companies in India in terms of AMU and offers Portfolio management services to its high-net-worth clients.

IDFC PMS Review

The company was established in the year 2000 and the registered office of the company is in Mumbai. It was established under the leadership of Mrs Anita Ramachandran and Mr Sunil Kakar. Both leaders have played an important role in establishing and running the company successfully.

IDFC PMS provides a valuable service to its customers through AI Techniques across India which is a fine combination of both man and machine.

The company is using AI technique for fund management, the whole process of fund management is done by the AI like stock selection, risk management and portfolio optimization.

The unique AI technique of the IDFC PMS is backed by its expert fund managers and research analysts who give their final decision related to the portfolio of a client (Depending on the type of PMS).

IDFC PMS invest in both types of asset- Stocks and debts. Now, it depends on the portfolio manager and the client that where they want to go for the best Portfolio selection.

The company has a team of experts who collectively decides about the addition and removal of securities from a portfolio.

 

In this article, you will get various types of information related to IDFC PMS. We will try to cover all important aspects such as types of PMS offered, strategies, commission/fees, other charges of IDFC, customer service, FAQs etc.

So, let’s start our discussion with the types of PMS offered by IDFC.


IDFC PMS Types

Like other PMS houses of the industry, IDFC also offers two types of Portfolio management service to the clients. Both types of PMS are very common which is offered by most of the companies.
Here is the name of two types of IDFC PMS.

  • Discretionary PMS
  • Non-Discretionary PMS

Discretionary PMS:

In This type of PMS, the fund manager gets the right to make any changes in the portfolio of the client. He can add or remove any asset from the portfolio for getting a better profit or if he feels any improvement in the future.

The client can track his/her portfolio at any time but the ultimate decision related to the portfolio is taken by the fund manager.

Non-Discretionary:

The portfolio of a client under non-discretionary PMS is solely managed by the client itself. The fund manager can only suggest a profitable asset or if he feels any type of change in the portfolio is required. A fund manager manages the portfolio of the client on the basis of the direction given by the client.


IDFC PMS Fund Managers

Anoop Bhaskar: Fund manager

Anoop Bhaskar, based in India is a fund manager at IDFC. He joined IDFC in the year 2016 as a fund manager. Mr Bhaskar started his career at Sundaram Asset Management. After that, he joined UTI AMC in the year 2007 as an equity head. He has more than 15 years of experience in the field of finance management.

Anoop Bhaskar has completed MBA and has 3 years of investment tenure. He uses a variety of techniques in his work to get the best possible result. He uses the relative valuation investment strategy for selecting the right stock.

Vikash Dugar: Associate director

Vikash Dugar joined IDFC in the year 2014. He has 12 years of experience in the field of portfolio management and exit, private equity, Audit and Taxation.

Gordon D’ Souza: Associate Director

Gordon joined IDFC in the year 2007. He has more than 8 years of experience in private equity fund.

Anugrah Agrawal: Senior Associate

Joined IDFC in the year 2016. He has more than 9 years of experience in the field of management consulting services and investment banking.

Anahita Medhora: Associate Director

Anahita joined IDFC in the year 2007. She has more than 10 years of experience in portfolio management and exit, Private equity investing and risk management.


IDFC PMS Strategies

IDFC  works on three different types of strategies to get the best result out of portfolio management. Following are the types of strategies available with IDFC.

  • Large-cap strategy
  • Diversified strategy
  • Small-mid cap strategy

Large-cap strategy:

Under the large-cap strategy, IDFC chooses those companies or sectors which are reputed, trustworthy and has the potential for growth.  They find those companies which can grow at a fast pace in the future and give a good return to their shareholders.

This strategy requires a long period to wait for the return. It searches those securities which are reasonably priced.
The main motive of this strategy is capital appreciation. And it suits to those clients whose target is capital appreciation over getting short term profit.

Diversified Strategy:

Under Diversified strategy, the aim is to invest in those stocks which give a return in the long period by making reservations in the stocks despite the positive or negative movement of the Index.

The Portfolio is diversified among different sectors to minimize the risk.

Small mid-cap strategy:

Under the small mid-cap strategy, those stocks are selected which are in the starting to the middle phase of their business. The chances of value appreciation of those stocks are moderately higher and if it happens, a portfolio can grow positively. The normal duration of return under this strategy is 3-5 years.

The risk factor is moderately high in this strategy as the selected companies stock may see failure or the very slow pace of growth also.

IDFC neo Equity portfolio strategy:

IDFC neo is a newly introduced strategy by IDFC for the portfolio management service. This unique portfolio management service is powered by artificial intelligence and analysis of big data.

Through this unique strategy, data will be analyzed by multiple traditional and non-traditional sources which publically available to identify the stock opportunities.

This artificial intelligence strategy helps the fund manager’s to get the best stock by combining their own understanding with a scientific and data-driven process of investment.

This strategy has proved very helpful to the Indian investors who want to invest their funds in PMS. This advanced technology covers the entire investment process like research and analysis, risk management and portfolio optimization.

The NEO strategy of IDFC PMS is benchmarked against the S&P BSE 200 Index and the

Hence, above all strategies are used by IDFC for the PMS, according to the need of clients and the situation of the market.


IDFC PMS Performance

IDFC PMS is among a good performance portfolio management company. Every client search for a good performing PMS company where their fund can be managed well for a good return. IDFC is a perfect portfolio management company to full-fill the expectation of investors.

 

Let us explain the portfolio management services returns provided by this PMS house, based on your investment horizon:

Here are the details for reference:

  • If a client invests for 3 years with IDFC PMS, the expected return will be 9% of the asset value.
  • If the investment will be for 5 years, then the expected return will be 11.5%
  • For 7 years the return will be 8.5%.
  • For a period of 10 years, the return will be 10% and
  • For 11 years and more, the return will be 12%.

So, we can see that IDFC PMS is giving a good return to the clients.


IDFC PMS Investment plans

IDFC provides four different types of investment plans to get associated with them. All plans have a different range of investment amount. It is made for the convenience of clients as one can select any plan according to their financial strength.

Here is the list of Investment plans.

  • Bronze (25L-50L)
  • Silver (50L- 1 Cr)
  • Gold (1Cr-5 Cr)
  • Platinum (5 Cr & above)

So, we can see there are four categories named Bronze, Silver, Gold and Platinum. The Bronze has the lowest range of investment which can be easily afforded by anyone while Platinum has the highest range of investment for those clients who are financially strong.


IDFC PMS: Commission/Fee model

Generally, all portfolio management companies work under some standard commission model through which they charge their fees/commission from the clients. IDFC has three different types of commission model and a client and fund manager can mutually decide the method of fees to be paid to the portfolio manager or the company.

Three types of commission model are:

  • Prepaid commission
  • Volume-based
  • Profit-sharing based

Prepaid commission model:

This model of commission is very simple in the calculation and it does not require to wait for the performance of the portfolio. As the name of the model depicts, in this model the fee or commission of a fund manager is paid in advance.

A certain percentage is charged to the amount of investment made by the client. Whether the portfolio will perform well or not, the fund manager will get his/her commission that too in advance.

The percentage of commission will be charged on a yearly basis.

Volume-based commission/fee model:

Under this model, the volume of investment will be checked to pay the commission/fee of the fund manager. The weight of the transactions volume reflects the effort given by the portfolio manager for the positive result of the client’s portfolio in a year.

If the volume of the investment is high, the commission charged will also be high and if it will be low, then the fee of the fund manager will also be low. So, the main point to keep in mind here is, you will be charged for the more transactions handled by the fund manager in spite of profit or loss of your portfolio.

In this model, nothing to take from your profit or loss, you will be charged on the basis of the volume of transactions completed for your portfolio.

This model can be very risky for a client as he/she will be charged for the volume of transaction, not for the profit generated by the fund manager.

Profit-sharing based commission/fee model:

Profit sharing based commission model is all time favourite model for all the clients. Under this model, a client is required to pay fees for the profit he/she earned through the fund manager. Higher the profit, lower will be the percentage of commission and no profit no commission/fee.

The best thing in this model is, you are supposed to pay only after you earn profit not on the basis of the volume of the transactions or without any base like the prepaid commission.

The percentage of profit sharing is much higher than the rest of the models because clients are required to pay only after profit generation but the risk associated under this model is very low. So we can say that the profit sharing model is fully in favour of clients.

The table given below shows the range of investment/volume/profit and the percentage of commission required to pay to the fund manager.

 


IDFC PMS Charges

A client is required to pay different types of charges to the company. It includes brokerage fee, management fee, exit load fee, custodian, depository fee etc.

  • Management fee– It is charged as per the commission model.
  • Brokerage fee– It is in the range of 0.08%-0.012%.
  • Upfront charge: 0.8%-1.8% of asset value.
  • Custodian charge: IDFC charges custodian charge in between 0.25%-0.35%.
  • Depository charges: 0.12%- 0.18% of Asset value.
  • Exit load charge: The exit load fee is in the range of 0.8%-1.8% of the withdrawal amount withdrawn within one year of portfolio creation.

The Exit load fee is not fixed, it can be as minimum as 0.3% of the withdrawal amount or can be free also depending on the case of a client.


IDFC PMS Benefits

Each and every client want to know the unique benefits of portfolio management services which IDFC provides to its customers. There are a lot of PMS houses available in the market, so it’s very necessary for a PMS house to make themselves different from their competitors in many aspects.

It will help them to attract more and more clients to the company.

Following are the benefits which a client will get if he/she associates with IDFC PMS:

  • IDFC PMS provides IDFC NEO with an artificial intelligence strategy for portfolio management service to the clients. It is one of the latest strategy started in recent years that works with the knowledge of a fund manager to get the best result.
  • Offers three different types of commission model to the clients with an affordable percentage of the fee.
  • Other charges of the company are also in line and even lower than other PMS houses.
  • Clients can generate and check all their reports and other documents related to their portfolio through the online web access facility provided by the company.
  • There is the facility of Email and SMS to check the transactions of the client’s account.
  • Experienced fund managers and other executives of IDFC PMS provide world-class portfolio management service to their clients.

IDFC PMS Customer support

Customer support is one of the important factors which help in making a strong client base of a company.
As a customer of IDFC PMS you will get the following support:

  • One can directly call the portfolio manager in case of any query. You can call 4-9 times in a month to get a solution to your problem.
  • There is Whatsapp as well as Email facility to resolve any problem through chatting.
  • A relationship manager is also appointed for any type of problem solution related to your portfolio.
  • The issue resolving team has TAT of 15 working days

IDFC PMS Conclusion

IDFC PMS is a popular name in the field of finance. One can easily recognize the company just by its name only.
It offers various types of schemes from time to time to attract more clients. The fund manager and other team members of the company have good experience and expertise in their field. So, one can get PMS service as per their expectation.

IDFC has recently launched AI strategy which is far better than other strategies used by most of the PMS companies.

Overall, we can say IDFC PMS is a good place for an investment of your fund under portfolio management service.


IDFC PMS FAQs

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

What is IDFC Neo equity portfolio?

Ans: IDFC Neo equity portfolio is an artificial intelligence based portfolio management strategy which is used by the AI and knowledge of the fund manager. It is one of the best and latest strategies used by the company.

When was IDFC PMS established?

Ans: IDFC PMS was established in the year 2000 and it is a PMS branch of IDFC group.

What are the types of IDFC PMS commission models?

Ans: There are three types of commission model: Prepaid model, volume-based model, Profit sharing model.

What are the different strategies of IDFC PMS?

Ans: Small-mid cap strategy, Diversified investment strategies, and Large-cap strategy.

How to get account statement of IDFC PMS?

Ans: One can get the account statement of IDFC PMS by downloading online or by calling on a toll-free number 1-800-2666688.

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