Kotak PMS is a popular and an old name in the portfolio management services sector. The company is well-known for its renowned portfolio investment strategies and investment philosophy.
Like any other bank-based business arm, Kotak PMS also enjoys the brand equity created by Kotak Bank (so does Kotak Securities).
But before you get enticed by the brand and hand over your hard-earned capital to Kotak PMS, this needs to be understood whether this firm is good enough for your investments?
Or, they might actually come out as hazardous to your funds? Well, let’s have a detailed look at the different aspects of this portfolio management services company before coming to a conclusion.
Kotak PMS Review
Kotak PMS was established in the year 1985 by Mr Uday S. Kotak. The head office of the company is in Mumbai and it is registered under SEBI. Today the company is among the top portfolio management services in India.
The company runs its PMS service by making concentrated investments in high-quality stocks at a reasonable price. The portfolio stocks are purchased at discounts to the intrinsic value.
The company follows a disciplined investment process in which the company believes that the risk associated with the PMS can be minimized by thoroughly analyzing each company of a portfolio.
It has created a team of analysts, portfolio managers, and researchers. They work round the clock to analyze each stock in the portfolio and take the right decision related to the portfolio.
Kotak PMS offers a variety of successful portfolio investment strategies. The strategies are created by giving priority to the client needs, risk appetite, and financial stability.
The investment parameters of Kotak PMS are:
Management quality based on capital allocation and operations management.
Market opportunity of a stock/sector.
Strong earnings growth and Financial of a company.
Cheap stocks or fair valuation.
In this article, you will find all important aspects related to Kotak PMS such as the types of PMS, the commission models offered, other charges, investment plans, manager’s details, customer support, conclusion and Finally Frequently Asked Questions (FAQs).
Name of the company
Founded in the year
Uday S. Kotak
Small and mid-cap strategy Special situations value portfolio Pharma focused strategy
Kotak PMS always gives priority to its clients. The company wants to offer all services to their clients so that they do not feel any necessity to move to another PMS house. So the company offers both types of PMS services.
Discretionary PMS: The service allows the portfolio manager to directly take the portfolio investment decision (Buy or sell) without taking the client’s consent for each trade of the portfolio. The fund manager is free to take the decision independently.
This service is cost-effective as the client need to pay charges to the fund manager for the service he gets from them. It saves investment time as requires very less or no involvement of the client.
Non-Discretionary PMS: Under this service, a fund manager plays the role of a broker only. He/she executes the trades by following the client’s instructions. The funder manager can only suggest the client about the right decision if he wants.
This service is less cost-effective, requires more client involvement, and it wastes a lot of time in taking the right investment decision.
Kotak PMS Fund Managers
The research analysts, the portfolio managers, their PMS experience and their track record are the most important factor which one would like to know. So, here we are going to discuss a brief introduction and experience of the two most experienced portfolio manager and equity research analyst of the Kotak PMS.
Anshul Saigal (Portfolio manager):
Anshul Saigal is the head of Kotak PMS. In his total experience of 14 years, Mr Saigal has spent almost 8 years Kotak PMS.
He has working experience with JP Morgan, Standard Chartered Bank, ICICI Bank. He has experience in analyzing corporate credit and equity analysis also.
He has an interest in expanding his interest in the field of finance. He Continuously tries to enhance his portfolio investment knowledge so that the clients can get benefit from his investment decisions.
Mr Saigal has completed an MBA in Finance and Engineering in the field of Industrial Engineering from SIT.
Rukun Tarachandani (Equity research):
Rukun Tarachandani is responsible for equity research at Kotak PMS. He is also responsible for performance tracking of the existing portfolios and generating new ideas.
Mr Tarachandani holds CFA and an MBA degree in Finance and Engineering in IT from Nirma University.
Kotak PMS Strategies
The portfolio investment strategies offered by a PMS house decides the success (Return) of a portfolio. So, before going to any PMS house, it is very important to get information about the strategies available with a company.
Kotak PMS focus on the investment in those companies which are highly managed and fundamentally strong. The most important is the price of a stock which is purchased at appreciable discounts to their fair value. It means the stock can be unfavourable but will be able to provide a healthy return after a long time.
Kotak PMS offers three types of strategies based on their strict and disciplined investment philosophy. The strategies are provided to full-fill the financial needs and objective of the client’s investment.
The following are the strategies of Kotak PMS:
Small and Mid-cap strategy
Special situations value portfolio
Pharma Focused Strategy
Small and Mid-cap strategy:
Here the stocks are managed with a medium to long term perspective. Under this strategy, special preference is given to those companies with strong fundamentals and future growth potential.
In this approach, approximately 75 % of the portfolio will be invested in small and mid-cap securities with the market capitalization of 200-5000 cr.
The reasons why you should invest in small and mid-cap companies include:
Small and mid-cap companies are the market leaders in their respective sector.
Greater returns on investment, if the investment is done at attractive valuations.
Diversification of risk.
Mid stocks provide a balance of growth and stability.
Under this strategy, those stocks are picked by the fund manager which comes under the category of small and mid-cap stocks.
Here is the key information of the small and Mid-cap strategy:
Portfolio composition: The strategy focuses on the opportunity of investment in small and mid-cap stocks. The strategy has the flexibility of investing approx 25%-30% large-Cap stocks. The portfolio is made up of total 10-20 stocks.
The investment Tenor of the small & mid-cap strategy is open-ended.
The investment return is measured against the benchmark BSE Mid-cap.
Returns history of this strategy:
3 Year: 15%
5 Year: 13%
7 Year: 11%
10 Year: 15%
11 Year Plus: 18%
Special situations value portfolio:
In this strategy, the main criterion is to make money by enchasing special situations in the financial market. The special situations refer to buybacks, mergers, and corporate restructurings. Under this strategy, the portfolio will contain 10-20 stocks which are benchmarked against NIFTY 500.
The minimum investment requirement in the special situations valueportfolio is 25 lakh.
Here the portfolio is a mix of value opportunities and special situations.
The main motive of this strategy is to invest in some golden value opportunity stocks as well as in some Special situations in some stocks and related instruments.
The key information related to the special situations value portfolio strategy is mentioned below:
Portfolio composition: The investment is made in those stocks in which price-related situation arises, the situation of merger & acquisition, and corporate restructuring situation. The portfolio consists of total 10-20 stocks.
Investment approach: Bottom-up investment approach is opted-in this strategy by the fund manager.
The investment tenor of the special situation value portfolio is open-ended.
And the benchmark Index is Nifty 500.
Historical Performance of this strategy:
1 Year: 12.5%
2 Years: 28.9%
3 Years: 21.8%
4 Years: 36%
5 Years: 33.4%
Pharma focused strategy:
Pharma focused strategy main aim is to invest in pharma companies as these companies are sustainable value creators. The stocks under this strategy offer a combination of growth potential & stability.
The steady and strong growth of the Pharma industry in India offers a golden opportunity to the investors in the long term.
So, Kotak PMS created this strategy to grasp the opportunity arises in the pharma industry in the domestic as well as outside the Indian market.
Kotak PMS Performance
The Kotak PMS is among the best performing PMS houses because of its healthy rate of return from the portfolio investment. The company has beaten the performance of 10-years of Mutual fund return.
The portfolio return of Kotak PMS for 3 years period is 15%,
the return is 13% for 5 years,
for 7 years it is 11%,
for 10 years the return is 15%,
and for 11 years plus the return is 18% CAGR.
So, we can see the robust performance of Kotak PMS.
Kotak PMS Investment plans
The investment plan offered by the Kotak PMS is flexible so that a client an choose the investment plan according to their financial stability and need. The investment plans have different ranges of investment amount which starts from the minimum of ₹25L and goes above ₹5 Cr. Here are the names and the range of investment plans:
Bronze- ₹25 L to ₹50L
Silver- ₹50 L to ₹1 CR.
Gold- ₹1 Cr. to ₹5 CR.
Platinum- ₹5 CR & above
Bronze: This plan is created for the investors of low financial capacity as well as low-risk appetite. The range starts from the minimum investment amount prescribed by the SEBI i.e. ₹25 Lakhs and goes up to ₹50 Lakhs. Investors come under low net-worth clients.
Silver: The investment plan ‘Silver’ starts from ₹50L and goes up to ₹1 Cr. This plan suits those investors who can bear relatively higher risk than the bronze plan investor.
Gold: Those investors who want to invest a minimum of ₹1 Cr in the investment portfolio, opt for this plan. They can invest up to ₹5 CR. Under this plan. They get some better investment support in comparison of above both plan investors.
Platinum: This plan is opted by High net-worth clients who are ready to invest above ₹5 CR. They have the risk appetite and financial strength. They can wait for a long time to get a better return from the investment portfolio.
So, we can that Kotak PMS has four different types of investment plans which fit the different category of investors.
Kotak PMS Fees Structure
The commission model of a company is a very important factor which retains the existing client and attracts the new clients to the company. Though almost all PMS houses offer the same commission model to the clients, the percentage of commission differs from company to company.
And, on the basis of the percentage of commission, clients prefer the PMS house.
Here is the commission model offered by the Kotak PMS:
Prepaid commission model
Profit based commission sharing model
Volume-based commission model
Prepaid commission model:
Prepaid commission model, this model is opted by the client if he/she agrees to pay commission to the portfolio manager in advance. This model is dependent on the total investment amount. One is required to pay the higher commission if his investment amount is higher or vice-versa.
The percentage of commission is fixed for the different ranges of the investment amount. Higher the range, less the percentage of commission.
Generally, in this model, less percentage of commission is charged in comparison of the rest two models because of the high risk of return/performance of the portfolio.
Profit-based commission model:
The profit-based commission model is thought to be the best commission models. In this model, there is certainty of performance/return of the portfolio otherwise an investor need not pay commission.
Due to this condition, a portfolio manager puts his full effort with his years of experience for getting a superior return. He knows that he will get his commission only after the realization of profit.
We can say, in this model the rule is no profit, no commission.
Generally, in this model, a higher percentage of commission is charged because of the low-risk model. The percentage of commission decreases with the increase of the total return from the portfolio.
Volume-based commission model:
This model is based on the total volume of the transactions completed by a fund manager. The commission is charged on the value of total transactions. The model is affected by the capital market status as well as the other aspects of investment.
If your portfolio manager is genuine, you will pay the right commission. But, sometimes fund manager increases the transaction volume just to charge more commission from the investor. So, it is also important to get information about the fund manager before accepting him as your fund manager.
Here is the table which is showing the percentage of the commission under each model:
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
Kotak PMS Charges
Like other PMS houses, Kotak PMS also charges various types of fees from the portfolio investors. It includes a management fee, brokerage fee, custodian fee, exit load fee, depository fees etc.
Here are the details of other charges of Kotak PMS, you are required to pay as an investor.
Fixed management fee: It is required to pay 2.5% per annum payable quarterly.
Performance fees: This charge is NIL for the investors.
Brokerage charge: The company charges 0.1% of total Asset value as brokerage charge.
Custodial charge: This charge is levied according to the custodian.
Exit load fee: This fee is charged for the withdrawal of amount before one year of portfolio creation. The fee is charged 3% for the first year, 2% for the second year, and 1% for the third year.
Among the Oldest PMS house: Kotak PMS is one of the oldest PMS houses in the country. It comes in the name of the oldest PMS houses of the country. It has Parentage support from Kotak AMC.
Track record of performance: Kotak PMS has a proven track record of superior performance/return of portfolio investment. Since the creation of strategies, the two strategies, small & mid-cap strategy and Special situation value portfolio have outperformed the benchmark Index by a huge margin.
Strong professional team: Kotak PMS has a strong team of research analysts and fund managers. The company has eight members of the research team.
Best back–office support: It has the best quality of back-office support system for the clients, In-house research team and IT system.
Regular client interaction: The clients can remain in contact with the company on a regular basis. They are provided quarterly performance reporting and market & portfolio outlook of the fund manager. The company offers email support as well as WhatsApp service to investors.
Customers have the advantage of calling the funds manager any time to know the details about their investment.
Kotak PMS Customer Care
Kotak PMS tries to offer all required support to the portfolio investors. These support helps the client to clear all queries and ultimately the company can retain the client for a long time by gaining their trust.
At first, A client gets the basic means from the company to get the answer to their queries that is through Email and call support. The Whatsapp facility is also offered by the company as this application is very famous among the clients.
A relationship manager is also appointed by the company to short out problems/confusions arises between the client and the fund manager.
Apart from this, the company offers direct calling facility to the fund managers. The high net-worth client can call the portfolio manager for 5-7 times in a month while a low net-worth client can call 3-4 times in a month.
The TAT for issue resolving is 7 working days.
Kotak PMS Conclusion
The name of Kotak PMS comes among the name of greatest PMS houses. It is a well-known PMS company in the nation.
The Company offers customized portfolio strategies to investors. The two strategies offered by the company has been outperforming since its inception. The clients also get flexible investment plans and commission models. The other charges of Kotak PMS are also at par with the other PMS houses.
The company runs its business with the help of well-qualified and well-experienced professionals who work round the clock to catch each opportunity arises in the market.
Hence, if you are the one, who is in the search of the best PMS services in India for getting an outstanding return then you are at the right place. You can keep Kotak PMS at the top of your list.
In case you are looking to use reliable and promising portfolio management services that provide consistently high returns, let us assist you in taking the next steps forward:
Kotak PMS FAQs
Here are some of the most frequently asked questions about Kotak PMS:
What is the minimum amount to invest in the PMS?
According to the guideline of SEBI, one can invest in PMS with the minimum amount of Rs.25 Lakhs.
What are the strategies offered by Kotak PMS?
Kotak PMS offers three types of strategies:
Small & mid-cap strategy
Special situation value portfolio
Pharma focused strategy
What is the minimum time Horizon for PMS services?
The company focuses on long term investment. So, it expects that an investor should wait for a minimum of 3 years to get the return from the investment portfolio.
When an investor can withdraw his/her fund?
An investor can withdraw his/her fund at any time, but the exit load fee is levied if the fund is withdrawn within 3 years of portfolio creation.
How an investor can pay initial corpus?
One can pay the initial corpus by cash, stock or by the combination of both.
Furthermore, here are a few related facts to Kotak PMS:
Transfer of existing stocks or a combination of cash and stocks: Yes, the transfer is possible. But, the bank account or demat account for the transfer should be in the name of the investor.
The ideal time horizon for PMS investor: The investors should go for long term investment, to enjoy the benefits.
As for the withdrawal is concerned, the investor can withdraw the money at any point after opening the account. But, in case of the withdrawal within the first 3 years, investors will have to pay exit fees.
Updates on PMS performance: Quarterly updates are given to clients. Investors can also go for web login to view the performance of their account.
More on Kotak Securities
If you wish to learn more about this financial house, here are a few references for you: