JM Financial PMS is popular for its expertise in the capital market and research capabilities. It makes the company famous to design the customized portfolio management service to the clients.
Let’s find out whether the performance or returns, the pricing and the overall offering makes sense for you or not to avail their portfolio management services.
JM Financial PMS Review
The company JM Financial PMS services Ltd. registered as a portfolio manager with the Securities Exchange Board of India (SEBI) in the year 1998. After the formation of a joint venture between Morgan Stanely and JM Financial Group, the company was incorporated in the name of JM Morgan Stanely Retail Services Pvt. Ltd.
The joint venture was later terminated by both the companies in the year 2007.
The portfolio manager JM Financial Services was established with the aim of share and stockbroking, Retail sales, investment advisory with the primary focus on the investment advisory services.
The company is popular for its research expertise or we can say research is the core competency of the company. With the research capabilities, the expertise in the capital market, as well as the execution, enables the company to provide customized investment strategies to its clients.
The portfolio manager serves a wide range of clients which includes High net-worth clients, retail clients, Corporates, etc.
The company has a team of experts which includes relationship managers who provide exclusive services to the clients, researchers who provide important research reports to corporate and High net-worth individuals.
Also, it has access to a wide variety of investment products like Equities, mutual funds, IPOs, RBI and other Bonds.
JM Financial Services is a trading member of the National stock exchange of India Ltd. (NSE), Bombay stock exchange of India Ltd. (BSE), Central Depository Services India Ltd (CDSL), Metropolitan Stock exchange of India Ltd (MSEI), National Securities Depository Ltd (NSDL), SEBI (Research and investment advisor).
Name of the company
JM Financial PMS
Founded in the year
Mr. Nimesh N. Kampani
Growth and value portfolio strategy Portfolio product-Debt Portfolio product-Life cycle Alpha Strategies
Under JM Financial PMS article, we are going to cover almost all important aspects of the portfolio manager which is important from the point of view of an investor.
We will cover topics like PMS services, strategies, investment plan, commission model, customer support, Conclusion, FAQs, etc.
JM Financial PMS Types
JM Financial PMS offers three types of portfolio management services to their clients.
1. Discretionary PMS:
As far as the discretionary PMS service is concerned, the choice and the timing of investment lies in the hands of the portfolio manager.
Although the clients are allowed to present his/her opinion related to the investment portfolio. But, the final decision is subject to the portfolio manager’s approval.
2. Non-Discretionary PMS:
In Non-discretionary PMS service, the management of the investment portfolio remains in the hand of the client. He can take every decision like the selection of security, the timing of investment, exit from security, etc.
The role of the portfolio manager, in this PMS type, is more or less like a trader only. If a client wants, he/she can take the suggestion of the portfolio manager.
3. Advisory PMS:
Advisory PMS service is specially designed for the High net-worth and corporate clients, having a high value of the equity portfolio.
The expert opinion and research reports offered by the portfolio manager not only helps the client to take the right decision at the right time but also in monitoring the portfolio.
JM Financial PMS Fund Managers
JM Financial PMS has a team of experts who manages the investment portfolio of the client with their depth knowledge and experience. Mr Rakesh Parekh is one of the best portfolio managers at JM Financial PMS.
Let’s discuss a brief introduction of the portfolio manager.
Rakesh Parekh (Head PMS Group), JM Financial:
Mr Rakesh Parekh has over 25 years of experience in the emerging markets of equities as a fund manager and Senior Analyst. Presently, he is serving the company as a head of portfolio management.
Mr Parekh is handling the team of 12 people who are managing the discretionary and advisory services to the High net-worth clients, Family offices and Corporates.
JM Financial PMS Strategies
JM Financial offers many strategies for investors. One can choose a strategy which best suits their requirement and investment objective.
Since the company is offering various types of customized investment strategies, it’s not possible to discuss all. So, we are going to discuss some of the important investment strategies.
Here is the list of investment strategies:
Growth and value portfolio strategy
Portfolio product-Life cycle
1. Growth and value portfolio strategy:
The old name of ‘Growth and Value’ portfolio strategy was ‘Core’. The main objective of this strategy is medium to long term capital growth by investing in equities and equities related investment products.
Those companies are selected which is attractively valued for the long term growth prospect.
Some of the factors which are considered to the attractive valuation of the company are:
Companies which have scale-up potential.
Companies that appear to have an undervalued asset.
Quality of management.
Should be a market leader in the segment they are dealing with consistent growth.
Those companies which go through a temporary crisis but, the base of the company is robust to give an outstanding performance in the future.
Required changes in management, changes in business, restructuring, etc.
These are other factors also which are considered by the portfolio manager while applying this management strategy.
2. Portfolio product-Debt
The main objective of portfolio product II- Debt is to generate a positive return with low risk of loss for the period of medium to long term.
The money invested under this strategy is in the money market instrument, debt instrument, and Debt- oriented Mutual Funds.
So, the funds deployed by the clients are in Government securities, debt-oriented funds, RBI Relief bonds, Certificate of Deposits, Commercial papers, money market instruments, Secured and unsecured bonds and deposits, the return on such investments may be variable and/or fixed.
The clients are allowed to suggest the portfolio manager about the customization of the investment portfolio but, in any case, the final decision will be taken by the portfolio manager.
3. Portfolio product III- Life cycle
Under portfolio product III- Life cycle strategy, the investment is made in the different classes of an asset like equity, debt, money market instrument, and other class of asset with the growth in the wealth of the client over their life cycle.
An ‘Asset allocation Plan’ is set by the portfolio manager in the presence of the client through which an investment portfolio is created by the portfolio manager after knowing the investment objective, risk appetite and return expectation of the client.
The clients are also allowed to give informal guidance to the portfolio manager to customize the investment portfolio, but it is the portfolio manager who can take the final investment/portfolio creation decision.
4. Portfolio product IV- Alpha Strategies
The main objective of the Alpha strategy is to generate medium to long-term capital appreciation. Alpha strategies Have The following plans:
High-risk plan: Invest in securities like equity, mutual funds, warrants, convertible debentures, etc where the corporate announcements play an important role. The downside of this plan is high.
Low-Risk plan: Investment is made in the equities, warrants, debentures, and mutual funds. The merger & acquisition, takeover, de-listing, buybacks, etc are important to create the investment portfolio. The downside of this plan is limited.
JM Financial PMS Returns
The return/performance offered by the JM Financial PMS is attractive. The company offers an attractive return to the investors so that they can continue with the company to get its investment objective.
From the above table, we can see the performance of the portfolio manager is satisfactory. However, the above record is just for three financial years in which the company has performed extremely well.
JM Financial PMS Investment plans
JM Financial offers four types of investment plans which include Bronze, Silver, Gold, and Platinum. Each plan has a range of investment amount which starts from the minimum investment amount as per SEBI guidelines to above Rs. 5 Crore.
Let’s start a brief discussion of each plan:
Bronze: The investment plan ‘Bronze’ is the cheapest plan offered by the portfolio manager. It starts with just Rs.25 lacs and goes up to 50 lacs. Those who want to invest their money in the PMS can choose this investment plan.
Silver: The second investment plan offered by the portfolio manager is ‘Silver’. The range of investment under this plan is between Rs.50 Lacs to Rs.1 CR. The plan fit for you if you are a moderate risk-bearer and cannot invest more than Rs.1 Cr in the portfolio management service.
Gold: The plan requires an investment between Rs.1 cr to Rs.5 cr. Those investors who can bear the moderately high-risk and can invest up to Rs.5 Cr can opt the investment plan ‘Gold’.
Platinum: This is the last investment plan. If you are able to invest above Rs. 5 Cr, you can choose this plan. The plan is mostly opted by institutional investors.
JM Financial PMS Commission model
Just like other PMS houses, JM Financial PMS also offers three commission models to their clients. They offer each model according to the convenience of different clients.
Each client has a different mindset and they want to pay a commission according to their comfort and in which they are satisfied that they are paying less.
So, here are the types of commission model offered by the company.
Prepaid commission model
Volume-based commission model
Profit-based commission model
Here is a quick explanation:
1. Prepaid commission model:
The model allows the clients to pay the commission to the portfolio managers in advance. A fixed percentage is decided by the client and the portfolio manager and the percentage is charged on the basis of total portfolio value.
Under this model, a client is not liable to pay a higher commission if the profit realized by the investment portfolio is higher. The commission is fixed or paid in advance so it is much relaxing for the clients.
And at the same time, the portfolio manager also does not bear a loss because a loss in the portfolio does not mean loss of commission for them.
2. Volume-based commission model:
The commission under this model is charged on the basis of total volume generated by the portfolio manager for the investment portfolio in one year. All the transaction volume is recorded as a base to charge commission by the client.
A percentage of transaction volume is pre-decide by both the parties.
There is a probability that a misleading total transaction volume might be shown by the portfolio manager just to charge a higher commission. But the case is only a probability.
A client should check the track record of a portfolio manager before appointing him/her for the investment portfolio.
3. Profit-based commission model:
The Profit-based commission model is one of the favourite commission models of the clients. In this model, there is surety of profit from the investment portfolio up to some extent as the portfolio managers are allowed to charge commission only after the realization of profit.
If there will be no profit from the investment portfolio, no commission will be charged by the portfolio manager. A percentage of total profit is paid to the portfolio manager as a commission.
Higher the profit, less the percentage of commission and vice-versa.
The below-mentioned table shows the percentage of commission charged by the company:
Prepaid commission (Yearly)
Prepaid commission (Yearly)
Volume-based commission (Yearly)
Profit sharing based (Yearly)
Profit sharing based (Yearly)
Commission in % of investment
Transaction volume range
Commission in % of volume
Commission in % of profit
₹25 L- 50L
₹25 L- 50L
₹5CR & above
₹5CR & above
₹50L & above
JM Financial PMS Charges
There are various types of other charges which are charged by the company like management fee, brokerage charge, custody fee, exit load fee, etc.
Following are the other cost charged by the company from the PMS investor.
Portfolio management fee: The fee is charged for the portfolio management service offered by the company. A fixed percentage or a percentage of the quantum portfolio value is charged or the combination of both in some cases.
Upfront fee: This fee is charged as a prepaid fee on the basis of the funds introduced by the clients. The portfolio manager recovers this fee from the portfolio of the client. Normally charged between 0.09%-1.20% of Asset value.
Exit charge: Early withdrawal fee is charged by the company from the clients. If the withdrawal is made before a year of portfolio creation, the company levy a charge to the client. Range of charge is 0.95%-1.45% of asset value.
Depository/Custodian fees: The company charges a fee for the custody of investment portfolio, Demat account, Dematerialisation, Rematerialization, etc. It is charged between 0.21%-0.45% of asset value.
The company offers the flexibility of the commission model and investment plan which gives huge satisfaction to the investors.
They offer various types of customized investment strategies which are created after knowing the investment objective and risk-appetite of clients.
Proper customer service is given to the portfolio investors so that they do not feel any problem related to their investment portfolio.
The massive experience of the management team as well as the portfolio managers in their field helps a lot to the management and take the right step at the right time related to the investment portfolio.
An investor with a low financial capability can also invest in PMS through JM Financial PMS.
JM Financial PMS Customer support
JM Financial provides good customer support to its clients. They offer support like the chat and call facility to their clients so that they can ask anything to the company related to their portfolio.
The facility like relationship manager and Whatsapp facility are also available which gives a better experience to the clients.
In case of any serious query, a client can directly call to their portfolio manager also. The number of the call depends on the total value of the investment portfolio.
JM Financial is one of the best PMS brands offers a lot of facility in support of its clients. They offer various investment plans and strategies to the clients which suit their need and investment objective as well.
The customer support service is also appreciable and at the same time, they charge a reasonable commission and other fees.
So, if you are looking for a good portfolio management company then JM Financial should be at the top of your PMS search list.