Invesco PMS is an investment management firm in India which provides a world-class portfolio investment solution to the clients so that they can get more out of it. The firm is committed to providing financial care and top investment result for the investors.
The firm can be seen as one of the best PMS services in India due to the kind of strategies it runs and the corresponding returns it has to offer. Let’s learn more!
Invesco PMS Review
Invesco, a leading portfolio management services company was established in the year 2007 in the leadership of Saurabh Nanavati. The registered location of the company is in Mumbai, Maharashtra.
Invesco PMS is one of the renowned service offerings of the company. Actually, Invesco is well known for its PMS services among the portfolio investors.
The highly experienced team of Invesco PMS focuses on the desired result of the investors. The primary goal of the firm is to provide capital appreciation and risk-free return from the investment made by the clients. The fund management team is well-specialized in designing the investment approach that is cost-effective, value-enhancing and wealth growth for the long-term.
The individualized service and a disciplined investment approach make Invesco PMS different from other PMS houses.
The PMS strategies created by the Invesco have been generating superior performance over the years. Those strategies cover all most all types of growing businesses available in the Indian stock market.
The firm offers flexible investment plans and customized strategies which suit the investment objective of the clients. Customer support is also of superior quality that provides all types of investment-related supports to the clients.
Now, we are going to discuss each and every aspect of Invesco PMS in details. In this article, we will discuss the types of PMS, manager’s details, strategies used for PMS, performance, commission models, business plans, benefits, charges, support to customers etc.
Invesco PMS Types
As we know that most of the investment firms offer two PMS types to the clients. One is discretionary PMS and another is Non-discretionary PMS. Invesco also offers both types of PMS for the convenience of clients so that they need to move any other firm for any type of portfolio management service.
As it is well-known that in a discretionary portfolio management service, a client gets the expert hand to their portfolio management. A fund manager takes the whole responsibility of one’s investment portfolio. A client can get updates regarding his portfolio from the relationship manager or directly from the fund manager.
The chances of profit increases under this type of PMS as the portfolio are handled according to expert knowledge and experience.
Non-Discretionary PMS is rarely taken by any client. As in this PMS, a client is fully responsible for his portfolio performance because it is handled by them only. A client can take a fund manager’s suggestion, but the final decision depends on the client only.
The chances of profit from the investment portfolio are lesser than discretionary PMS, but the case is not always the same.
Invesco PMS Fund Managers
Invesco has a strong team of researchers and fund managers who gives their expert opinion and experience in the growth and return of an investment portfolio. The fund manager’s experience, knowledge, and educational background play an important role while selecting a fund manager for the portfolio of a client.
Here is the detail of one of the best fund managers of Invesco.
Mr Taher Badsah (Chief investment officer-Equities):
Mr Taher Badsah serves the clients of Invesco PMS as a chief investment officer of Equities. He handles the equity management functions of the firms. Mr Badsah has 23 years of experience in the field of the equities market of India.
Before joining Invesco PMS, Mr Taher was the head of equities at the famous Motilal Oswal Asset management company. Except this, he worked for companies like ICICI Prudential Asset Management, Kotak Mahindra Asset Advisor, Alliance capital management etc.
Mr Taher has completed a Masters in management studies (MMS) in finance specialization from S.P Jain Institute of management. He has also done B.E in Electronics from Mumbai University.
Invesco PMS Strategies details
Before starting any work, the target is fixed and the whole process of achieving that target is based on some strategies. The story in the field of investment management is also the same. Every portfolio management company creates some strategies which help them to achieve the target of the investment portfolio created.
All most all portfolio management companies try to capture each and every opportunity in the stock market to get the maximum return of their investment. Generally, they work on small-cap, mid-cap, and large-cap strategies.
But, they also use some other strategies to prove themselves different and the best from the other PMS houses available in the market.
Here are the details of portfolio strategies for minimizing the PMS investment risk is used by Invesco:
- Factor investing strategy.
- Smart beta strategy
- Alternative strategy
Factor investing strategy:
The Factor investing strategy is a factor based investment approach. It considers a particular factor rather than focusing on different sectors or investment styles while making an investment decision.
Invesco thinks that the factor of investing is more effective in taking the right investment decision in order to achieve the investment objective/Risk-return.
There are many factors which are taken into consideration while making an investment decision through factor investing strategy.
These factors are:
- Values: Need to examine Book value of a company, Stock’s earning. The higher the ratio of these values, the cheaper the stocks will be.
- Size: Ranks the company according to their size, the smaller companies rank higher.
- Low volatility: Ups and Downs magnitude of a stock’s 12 months trailing price.
- Quality: The companies have a strong balance sheet and a stable earnings growth means strong fundamental ratio.
- Dividend yields: Stocks on the basis of annual dividend yields.
Factors investing strategy has not only the potential to outperform the benchmark but, also has a great capability of risk-adjusted return. Now, the factor investing strategy has been gaining traction and is being preferred by the clients. And in case of many investors, factor investing has given more than expected return.
Smart Beta strategy:
Smart beta strategy generally delivered through Exchange-traded funds (ETFs). Smart beta is about providing exposure to risk factors in different classes of assets. This strategy aims to make risk factors available.
Through this strategy, investors can grasp market exposure, can achieve long-term outperformance when compared to an index. It also helps in portfolio risk reduction in a cost-effective, liquid and transparent manner.
Smart beta ETFs Strategy:
- Can outperform a benchmark index.
- Have the ability to reduce the risk factor by investing in diversified assets.
- Offers lower cost, liquidity and transparency.
Under the alternative strategy, investment is done other than Long-only equities, fixed deposit, and publicly traded equities.
The alternative strategy says to invest in other asset classes, except stocks and debts such as:
- Master limited partnerships (MLP)
- Natural resources
- Real estates
Invest in the illiquid or privately traded asset class, such as:
- Venture capital
- Private equity
- Private credit
The alternative strategy helps in making a diversified portfolio for the clients.
Invesco PMS Performance/Returns
The strategies used by Invesco results in extremely good and healthy performance/return of the investment portfolio. The firm has the capability to beat the performance of 10 years of mutual funds. Interesting, right?
Here are the portfolio management services returns from Invesco:
- The 3-year return of Invesco PMS is 7%,
- for 5 years the return is 8.5%,
- for 7 years, it is 12.5 %,
- again for 10 years, it is 9% and
- for more than 11 years it is 10.5% CAGR.
So, from the point of view of investment, Invesco is one of the reasonable performers in the market.
Invesco PMS Investment plans
Every PMS house available in the market has some investment plans to offer to the clients according to their investment strength. Invesco also offers four different types of investment plans to the one who wants to get associated with it as a portfolio investor.
Each plan has a different range of investment amount which starts from the minimum amount prescribed under SEBI rule and goes more than ₹5 CR.
A client can choose any plan as per their convenience and risk appetite.
Here are the four investment plans offered by Invesco PMS:
- Bronze (₹25L-₹50L)
- Silver (₹50L- ₹1 Cr)
- Gold (₹1Cr-₹5 Cr)
- Platinum (₹5 Cr & above)
Four investment plans are Bronze, starts from ₹25L to ₹50L. The second plan is Silver, it starts from ₹50L and can be lower than 1CR. Those who want to invest more than ₹1 CR, the plan is named Gold, it ranges from ₹1CR to ₹5 CR. And for High net-worth clients, the plan is Platinum which goes above ₹5 CR.
Invesco PMS Commission/fee model
Invesco, just like other PMS companies, offers three different choices of commission/fee payment to the firm. Each model is different from one another in terms of the basis of the percentage of the commission charged to the clients.
The basis is prepaid/advance, the volume of transactions and the profit generated out of the portfolio.
The percentage also differs model to model. The commission model is decided by both the parties that are the client and the fund manager. The commission models are:
- Prepaid commission
- Volume-based commission
- Profit based commission
Now, we are going to discuss each commission model of Invesco:
Prepaid commission model refers to the payment of PMS commission in advance without starting of portfolio work. Under this model, a fund manager gets his commission/fee without portfolio creation as the model reveals.
Both the client and the fund manager agrees on the same model (prepaid commission in this case) and the client is required to make payment to the firm.
A percentage of the commission is decided by them that is charged on the basis of investment money.
A client will have to suffer under this commission model, as the payment is already made by them and if the portfolio does not perform well it will be a loss to a client from both the sides.
If the market situation is favourable, a fund manager tries to add more profitable assets to the portfolio to get more profit. As much as the volume of the transaction increases for a portfolio, the commission of the fund manager also increases. It means higher the volume of transactions completed, higher will be the commission.
The percentage of commission based on the volume of transactions is pre-decided by the fund manager and the clients.
The authenticity of a fund manager is very important in this model of commission. As a fund manager can increase the volume of the transaction also without necessary transactions, just for increasing the volume of the transactions.
Profit-sharing based commission:
Profit-sharing based commission model is a favourable model of commission for the clients. Clients are assured that the fund manager will put his/her hundred per cent for making the profit out of a portfolio. And a fund manager also works genuinely as he knows he will get his commission only after the performance of the portfolio.
So, most of the clients want to go through this commission model because the genuine effort of the fund manager is guaranteed at least.
Now, the main thing remains in these models is the percentages of the commission which will be charged by a fund manager.
The table below will show the percentage that a client needs to pay to the fund manager:
Invesco PMS Charges
The following are the PMS charges which you will have to pay to the firm except for commission/fee of the fund manager. Charges like the management fee, brokerage charge, custodian charge, depository charge, upfront fee etc are levied on a client.
Management fee: This is the charge taken by the management in order to pay the service to the client. The percentage of the charge depends on the commission model chosen.
Upfront fee: This is a type of prepaid fee, given to the firm before taking a Portfolio management service. The range of the charge is 0.75%-1.25% of the total value of the Asset.
Brokerage charge: It is levied on the total transaction value. The range is 0.07%-0.11%.
Depository charge: The range of this charge is 0.10%-0.18% of total asset value.
Custodian charge: This is charged as a guardian fee by the PMS house. The range is 0.17%-0.27%.
Exit load fee: It is levied on the withdrawal amount which is done before one year of portfolio creation. The range of the charge is 0.7%-1.0%. Withdrawal after one year is charge free.
Invesco PMS Benefits
Here are some of the Benefits of Portfolio Management Services of Invesco PMS:
- Multiple portfolio strategies are available to the firm. They are applied according to the investment objective and risk bearing capacity of an investor.
- Invesco offers a flexible investment plan and commission model for the convenience of investors.
- A Well-experienced and highly knowledgeable research and portfolio management team of Invesco helps in providing risk-free returns to the investors.
- Invesco PMS provides Top-up facility to all its clients for their convenience.
Invesco PMS Customer Support
Invesco provides various types of customer support to its clients so that they can get the service of the firm without any obstacle.
Here is some important support to the clients:
Email and SMS support is provided to the clients for solving their any type of query related to their portfolio investment.
It also provides support through a relationship manager. A Client can call the relationship manager for their queries. Clients are also allowed to call the fund manager directly in case they want to talk to them on the matter of Portfolio management. One can call a fund manager 2 to 5 times in a month only.
The TAT for issue resolving is 11 working days.
Invesco PMS Conclusion
Invesco PMS is a well-known PMS house in the country. It is well-known for the outstanding performance of its portfolios over the years. Clients get attracted to the company for its expertise in its field of providing a risk-free return.
Invesco uses very effective strategies for the portfolio creation which are created by keeping the risk appetite and investment objective of a client in the mind. The investment plans are flexible and charges levied on PMS are also up to the industry standard.
It also provides all types of support to its clients in order to solve their problems which arise for the portfolio. Clients have the facility to directly call the fund manager with a limited number of times in a month.
Overall, we can say, Invesco gives you many reasons to get the portfolio management service from them.
If you are looking to use PMS for your funds, let us assist you in taking the next steps forward.
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Invesco PMS FAQs
Here are some of the most frequently asked questions about Invesco PMS:
What is the meaning of Portfolio Management Service (PMS)
Portfolio management service is a customized portfolio investment management. Either it is advised to the client or take the responsibility of portfolio management of a client.
PMS is ideal for whom?
PMS is ideal for High Net-worth clients (HNIs) and also for those investors who are primarily concerned for their investment growth and capital preservation.
What is the guarantee of PMS return?
No, as per SEBI there is no guarantee of PMS return.
Who manages PMS?
PMS is managed by a team of fund managers with a number of research analysts who properly manage the client’s portfolio for getting the return as per their investment objective.
What is the portfolio management service?
The fee of PMS includes Management fee with performance management fee.