IndiaNivesh PMS is one of the best Portfolio management services houses that enhances the value of the wealth of the clients by applying various portfolio management strategies. It mainly focuses on the small and micro-cap companies listed in India to make an investment.
This works as one of the differentiators for this investment firm. Let’s understand how it works and whether its business propositions are in line with your investment objectives.
Indianivesh PMS Review
IndiaNivesh started its business with an objective of Capital appreciation and wealth creation of the clients by investing their funds in small and micro-cap companies of India.
The company believes that there a lot of companies in India that started its business on a small-scale and produces high-quality products or services. These businesses are run by young and energetic entrepreneurs and have great growth potential.
The companies have the full potential to generate long term wealth for the investors, but the drawback of these companies is their small size.
The size of the companies becomes an obstacle in research and discovery of future prospects up to some extent. And this where the IndiaNivesh extract opportunities from these businesses for the investors through portfolio management service.
The company selects those companies which are different from the crowd on the basis of various parameters like the business models, supply chain, customers, and the most important one is their financial.
Further down, we will discuss various important information related to IndiaNivesh PMS. We are going to cover types of PMS offered by the company, strategic details, Manager’s details, commission models, investment plans, customer support etc.
IndiaNivesh PMS Types
IndiaNivesh believes customer satisfaction is the key to company success. So, if a customer can get his/her required products or services from the company, the company can think to be successful at its first stage.
IndiaNivesh PMS offers both types of PMS service to their clients so that they do not need to go anywhere else in search of any type of PMS. They offer both Discretionary and Non-discretionary PMS services.
Most of the customer comes to the company in search of Discretionary PMS.
Discretionary PMS, a portfolio manager look after the portfolio of the client. Under discretionary PMS, the portfolio manager handles the whole transactions of the portfolio. However, the portfolio manager keeps informing the clients about the transactions of their portfolio.
The clients get the benefit of a fund manager’s expertise and the years of experience by getting a superior return.
In non-discretionary PMS, all transactions are handled by the portfolio manager only after getting the permission of the client.
Actually, in this type of PMS, Decision Making remains in the hand of the portfolio manager. He decides the required action for the portfolio.
IndiaNivesh PMS Manager’s details
IndiaNivesh PMS has a team of fund managers who works for the clients to achieve their investment goals with an effort to minimize the investment risk. Though the company has a number of portfolio managers, some of them are really excellent in their field.
Here we are going to discuss two to three fund managers of IndiaNivesh PMS.
Sandeep Rajani (Portfolio manager):
Presently, Sandeep Rajani is working with IndiaNivesh PMS as a portfolio manager. He has more than two decades of experience in the Indian Capital market with reputed companies. He has experience in both the buy side and sells side responsibilities.
Prior to IndiaNivesh PMS, he worked with IFCI financial services as the head of research, also worked with Religare securities in their PMS, worked as portfolio a manager at the Oman Investment National Corporation, and has experience as equity research at DBS Securities.
Mr Rajani has completed Master in business Administration (MBA) from IIM Calcutta and also completed engineering from BITS Mesra.
Govind Sabbo (Fund Manager):
Govind Sabbo is one of the best choices at IndiaNivesh PMS. He Holds 6 years of experience in the field of Corporate finance such as Credit rating, Corporate restructuring, Initial public offerings, Due-diligence, Debt-syndication etc.
Before joining IndiaNivesh PMS, he worked as a Business Analyst at Goldman Sachs. Mr Sabbo is a Chartered Account by profession.
IndiaNivesh PMS Strategic Details
Considering the PMS investment risk, different strategies are made to minimize the risk and ensure the returns. IndiaNivesh PMS works on three different types of strategies that is Large Cap strategy, Small-Midcap strategy, and Diversified strategy.
Large-cap strategy: IndiaNivesh invests a large of the investment portfolio in those companies which has a large market capitalization. These companies are already established and have a name and fame in the market.
It does not require many struggles to remain in the market so the return from investment in these companies is mostly constant.
Small-midcap strategy: IndiaNivesh mostly makes investment in small-midcap companies. These companies are still growing and struggling in the market to make their place or to remain in the competition.
So, to make an investment under this type of companies is thought to be best for the long-term.
Diversified Strategy: Under this type of strategy, the mixture of all sizes of companies is considered to make the investment. The benefit of this strategy is stabilization of risk associated with small companies and getting a superior result from the large-cap companies.
The portfolio strategy of the company:
- Makes a concentrated portfolio of 15-20 stocks/companies for the time horizon of 2-3 years.
- Adopts the ‘Bottom-up’ approach to pick the companies for the portfolio by using fundamental analysis. As the fundamental analysis is thought to be the best way to analyze a company through its future prospects.
- The company focuses on those companies which are still undiscovered or can say not known to most of the people. And business models of the company are also steady. But, strong management leads to generate healthy cash flows.
- The performance/return of the portfolio company is continuously monitored to decide the exposure or divestment.
Currently, IndiaNivesh PMS is offering ‘SPROUT’ portfolio to their investors. This strategy mainly focuses on small and micro-cap companies which have strong growth prospect.
IndiaNivesh PMS Performance/Returns
The goal of any investment is getting a superior result. So, every PMS house makes a priority to provide the best return to their clients and superior return then the competitors.
IndiaNivesh offers an attractive rate of return to the clients which help them to make their client base more strong. Here is a quick look at the Indianivesh portfolio management services returns:
- For the investment return of 3 years, the rate of return is 7%, the rate of return for 5 years is 8.5%.
- Again, the rate of return for the time period of 7 years is 12.5% and
- the return is 6% for 10 years.
- For 11 years and more, the rate of return is 7% CAGR.
So, we can see that CAGR of the investment portfolio of IndiaNivesh PMS is attractive enough to retain the clients for the long-term.
Now, we are going to measure the portfolio return (%) against the Benchmark Index (%):
From the above table, we can see that the performance of Sprout PMS of IndiaNivesh is superior to both the benchmark index i.e BSE Smallcap and S&P CNX Nifty as on 31st May 2017. The company is developing in the field of research, day by day and it leads to offer better performance of the investment portfolio to the clients.
Hence, on the basis of this performance, we can say that it will always be beneficial to take PMs service from Indianivesh.
IndiaNivesh PMS Investment plans
IndiaNivesh PMS offers different slabs for a different amount of investment. The minimum investment amount starts with Rs.25 lakhs and goes above Rs. 5 CR. In between these two amounts, the company has made various slabs.
The clients are allowed to choose any plan according to their financial objective and risk-bearing capacity.
The following are the four different types of investment plans with different range of investment amount.
- Bronze (25Lakhs to 50 Lakhs)
- Silver (50Lakhs to 1 Cr)
- Gold (1Cr to 5 Cr)
- Platinum (5 Cr & above)
The one who wants to invest a minimum amount and don’t want to take the higher risk can invest under the ‘Bronze’ investment plan. The range of investment plan is Rs.25L-50L. This Range is the minimum investment range if you want investment in PMS.
The second investment plan is ‘Silver’, the investment amount range is Rs.50L to Rs.1 CR. The name of the third investment plan is ‘Gold’ and the range of investment amount under this plan is Rs.1 CR-5CR. And the last investment plan is ‘Platinum’.
This investment plan is for high profile customers who have the capacity to bear high risk. The investment amount required under this plan is Rs.5 CR and above.
IndiaNivesh PMS Commission
IndiaNivesh PMS facilitates different types of commission models to their clients. These models are based on different attributes like the volume of the total transactions completed for the portfolio, total profit generated, and the prepaid commission is charged on the basis of the total Asset value of the portfolio.
IndiaNivesh offers these three commission models:
- Prepaid commission
- Volume-based commission
- Profit-sharing commission
Prepaid commission model:
Under prepaid commission model, the commission is paid by the clients in advance without actually starting of PMS service. In this type of model, a fund manager charges his fee before offering the service of portfolio management to the clients.
The percentage of commission is charged on the basis of the total asset value of the portfolio. A very low percentage of amount is charged as a commission in this type of model. The higher the amount of investment, the lower will be the percentage of commission.
- If the investment is in the range of Rs.25L to 50L, the percentage of commission will be 1.5% of the investment,
- if the investment is in the range of 50L to 1CR, the percentage of commission will be 1.4% of the investment.
- Again, for the investment range of RS.1 CR to 5CR, the percentage of commission will be 1.2% of the investment.
- And for the investment above Rs.5 CR, 1% commission will be charged.
Volume-based commission model:
The commission is charged on the basis of the total number of transactions completed by the fund manager of the investor. The number of transactions is not the only factor, but the other factors like the market condition and some other factors are also considered.
Normally, a higher percentage of the commission is charged under this commission model.
The percentage of commission is charged on the total number of transactions.
- If the yearly transaction volume is in the range of 25L-50L, the commission charged will be 0.15% of total transaction volume.
- If the transaction value is in the range of 50L to 1 CR, 1.4% commission will be charged.
- For the transaction value of Rs.1 CR to 5 CR, the commission will be in the range of 0.12% of the transaction value.
- And lastly, if the total transaction value goes above Rs.5 CR, 0.10% commission will be charged.
Profit-sharing based commission model:
Profit-sharing based commission model is mostly liked by all the portfolio investors. As in this model, the realization of profit is guaranteed up to a maximum extent because the fund manager put his full effort. The commission is paid only after the realization of profit.
Very low risk is involved in this type of commission model, so the percentage of commission is higher than the rest of the models.
- An investor is required to pay 25% of the commission for the investment in the range of 2.5L to 5L.
- 25% of the commission is required to pay for the investment between 5L-10L.
- The commission is required to pay 22% of the profit for the investment range 10L to 50L.
- And finally, 20% of the profit is charged as the commission.
Summary of percentage of commission:
The commission charged by the portfolio manager for the PMS service is just one kind of charge a client pays, but there are many other charges also which are levied by the IndiaNivesh PMS. These charges include a management fee, depository charges, upfront fees, brokerage charge, exit load fee etc.
IndiaNivesh PMS Charges
The following are the PMS Charges in India:
Management fee: This fee is levied by IndiaNivesh PMS on the basis of the commission model. For Example, the percentage of the management fee for the profit sharing model is different from the volume based and prepaid commission model.
Upfront fee: It is a type of prepaid fee which is required to make for getting PMS service. The range of this fee is between 0.75% to 1.25%.
Depository charges: The depository charges is also known as depository participant charges is between 0.10%-0.18% of the total Asset value.
Brokerage charge: Brokerage charge is taken on the basis of the total number of transactions, the range of this charge is between 0.007%- 0.011% of total asset value.
Custodian Charges: The custodian charge of this PMS house is between 0.17%-0.27%.
Exit Load Fee: It is levied on the total amount withdrawn by the customer in a year after portfolio creation. The amount is charged between 0.7%-1.0% of the total withdrawn amount. Normally, there is no charge levied on the amount withdrawn after one year of portfolio creation.
IndiaNivesh PMS Benefits
Following are the benefits of portfolio management services of joining hands with the company:
- IndiaNivesh makes the portfolio investment of clients by investing in Small and micro-cap companies listed in the Indian capital market. So, good for those investors who want to invest in long term investment.
- Offers flexible investment plans to the clients for their convenience and to choose according to their risk-bearing capacity.
- Focuses on the wealth creation and capital preservation of the portfolio investors.
- The company has a team of experienced and well-qualified portfolio managers who manages the fund of clients with full dedication and knowledge.
- The performance of the company has a track record to beat the benchmark index. So, there is a great possibility of future performance.
- The company provides full support to its client at each and every step of portfolio management.
IndiaNivesh PMS Customer support
Every Company wants to provide full support to its clients so that do not feel any type of problem while dealing with them. It helps the company maintain a strong relationship with the clients and so a long term relationship with them also.
IndiaNivesh offers various types of support to their clients. And the first support is Email and Whatsapp support through which clients can clear their confusions related to the portfolio.
The investors can directly call the company to solve their queries. A relationship manager is also appointed by the company to make the relationship strong between the client and the fund manager.
One can directly call the fund manager also from 1 to 7 times in a month to solve the problem.
The company has a maximum of 10 working days TAT of issue resolving.
IndiaNivesh PMS Conclusion
IndiaNivesh PMS is running its business with the aim of capital preservation and wealth creation. The experienced team of analysts, researchers and fund managers make the investment with the company a smooth and reliable process.
The company has performed well with a superior return to the investors. It offers investment plans which suit each and every category of investors.
So, if you want proper management between the risk and reward associated with the investment portfolio with the help of experts, come and join IndiaNivesh as your portfolio manager.
In case you are looking to use portfolio management services for your funds and need a trustable & promising PMS house, let us assist you in taking the next steps forward:
IndiaNivesh PMS FAQs
Here are some of the most frequently asked questions about IndiaNivesh PMS:
What is the aim of IndiaNivesh PMS?
The aim of IndiaNivesh PMS is capital preservation and wealth creation through different types of strategies.
IndiaNivesh focuses on which type of companies for investment?
The company focuses on small and micro-cap companies for investment purpose.
What is the investment process of IndiaNivesh PMS?
The Investment process of IndiaNivesh includes a quantitative selection of companies, which filters the winners from under-performing companies based on various parameters like financials, competition, stability etc.
If you wish to learn more about this stockbroking firm, here are a few references for you: