Nine Rivers Capital PMS
Nine Rivers Capital PMS is top-ranking Asset management and Corporate advisory group. The firm makes itself different from other Portfolio management service firms as it exclusively focuses on the small-cap stocks and medium-cap public equity.
Nine River Capital PMS Review
Nine Rivers Capital is a Mumbai based company established under the leadership of Sandeep Daga in the year 2008. It is one of the largest Asset management company in the country. The firm offers superior quality and convenient portfolio management service to its clients.
The investment strategy of the firm rests on the fundamental analysis of the stocks which reflects the possibility of investment in that stock is a right or wrong decision.
It has a long list of portfolio managers who are experts in their field so they can easily take the right decision in favour of the portfolio created.
Nine Rivers Capital uses two different and effective strategies for getting a good return from the portfolio. Both strategies are for different types of investment i.e for small-cap and medium-cap.
Nine River Capital emerged as one of the best choices for the portfolio management service of HNIs and family offices for the management of their small-cap and mid-cap portfolio. After getting too much popularity in its service, the company will very soon expand its business outside the country.
After going through the basic of Nine River Capital PMS, we will try to cover almost all important aspects of the firm like its strategies, performance, fund manager’s details, types of PMS, commission model, charges, customer support etc.
So, let us start the first step of our discussion that is types of PMS offered by Nine River Capital.
Nine River Capital PMS Types
In the case of types of PMS, Nine River Capital is not different from other PMS firms in the industry. It also offers two types of PMS. Here are the PMS types:
- Discretionary PMS
- Non-Discretionary PMS
As we know that under discretionary PMS, the portfolio management and all important decisions related to the portfolio of the client lies with the fund manager only. He is responsible for making investment decisions related to the fund.
This type of PMS is most popular as a client gives his/her fund in an expert hand who can handle investment fund with his expertise and knowledge which is not possible by a normal investor. Hence, an opportunity for the best possible return increases.
Under this type of PMS, a client is responsible for the performance of his/her portfolio as the decision making lies in the hand of the client itself. A fund manager gives his expert suggestion, but the final decision related to the portfolio management is in the hand of the client only.
In this type of PMS, the chances of non-performance of the portfolio possible. It is seen that a client does not hold a good experience in this field in most of the cases.
Nine Rivers Capital PMS Manager Details
Sandeep Daga (Founder, MD &CIO):
Sandeep Daga is the founder of the firm Nine Rivers Capital PMS. In his leadership, the company has achieved a new direction in the field of Asset Management as its CIO. He has more than 24 years of experience in both public and private equity investing.
Before establishing Nine Rivers, Sandeep was a partner at Frontline Ventures. He started his career from ICICI Ventures as B2B head.
Sandeep completed Engineering in Electronics from Amravati University and MBA in finance from NMIMS.
Vivek Ganguly (Vice President):
Vivek has more than 22 years of experience in investment management. Prior to joining Nine Rivers, he was a fund manager at Quantum Asset management.
He has completed MBA in Finance from Calcutta University and has a Bachelors in Arts degree from Nagpur University.
Gautam Gupta (Vice President):
Gautam Gupta has more than 15 years of experience in the financial markets specially on M&A and Private equity. He was a senior member of the corporate advisory team before moving to the present position in the year 2018.
Gautam has completed MBA and B.com from Mumbai University.
Nine Rivers Capital PMS Strategies Details
Just like other PMS firms, Nine Rivers Capital PMS also focus on three common strategies which are Large-cap strategy, Diversified strategy, and Small-Mid cap strategy.
But, the firm works under a disciplined 360-degree approach for the investment which makes the company more inventive in the investment thinking every time.
Nine Rivers Capital focus only on those businesses which have continuous growth by good management teams and from the valuation point of view are available from discount to intrinsic value.
The firms generally look for the following things in the investee companies.
- Should be a dominant player in the industry.
- Continuous growth.
- Strong balance sheet.
- Has the potential to generate high ROCE/ROE
- Under analyst (Sell-side) coverage.
Now, we are going to discuss two different PMS strategies used by the Nine Rivers Capital PMS:
Aurum small-cap opportunities:
Aurum small-cap opportunities (ASCO) is a unique investment strategy as well as the product structure. In this strategy, 12-15 small-cap stocks (Market cap < ₹2500 Crore) are selected which are most favourable for the investment purpose. The time frame for the investment is 3-5 years for each stock.
The significant participation of fund managers in Aurum small-cap opportunities strategy provides a good return to the clients and maintain a healthy relationship with them. The profit booked under this strategy in various client portfolio till date has been in the nature of long term capital gain.
The performance of ASCO is measured/benchmarked against the performance of the BSE Small-cap.
Aurum Growth opportunities:
This is the second core strategy of Nine River Capital PMS. Aurum Growth opportunities (AGO) is created with the view of mid-cap investment. In this plan, there remain 10-12 mid-cap stocks (Market cap < ₹13,000 Crore) of high growth quality in the portfolio. The time frame of this portfolio is at least 3 years.
The performance of AGO is measured against the BSE Mid-cap index.
The overlapping of some of the stocks in both the strategies may possible as some of the larger companies in ASCO strategy may also be bought in AGO strategy.
Nine Rivers Capital PMS Returns/Performance
Both strategies and investment approach of Nine Rivers Capital plays a vital role in the performance of the portfolio of the clients. The performance is impressive and attracts clients towards the firms for the long term.
Here is the performance report of the Nine Rivers Capital PMS in CAGR which starts from 3 years and goes up to 11 years.
The portfolio management services returns of Nine Rivers Capital PMS:
- for 3 years is 8%,
- it increases to 10% for 5 years,
- for 7 years the return is 8.5%,
- it is 6.5% for 10 years and
- for 11 years return is 12% CAGR.
So, we can see that an attractive return makes Nine River Capital PMS an attractive company for portfolio management service.
Nine Rivers Capital PMS Investment plans
Nine Rivers Capital PMS has divided its investment services into four categories. The basis of division is the amount of investment. The firm has made four different plans with different ranges of the investment amount. It starts from the minimum investment amount as per SEBI guidelines and goes up to ₹5 CR & above.
The four types of investment plans are:
- Bronze- ₹25 L – ₹50 L
- Silver- ₹50L – ₹1 CR.
- Gold- ₹1 CR – ₹5 CR.
- Platinum- ₹5 CR. & above
The Four investment plans are Bronze, Silver, Gold, and Platinum. The first plan is Bronze, starts from ₹25 Lakhs to ₹50 Lakhs. This plan suit to those investors who want to enter in the PMS investment with a low amount.
The second one is Silver, the range of investment amount under this plan is ₹50 Lakhs – ₹1 CR. The third one is Gold, it’s range is ₹1 CR – ₹5 CR and it suits to those investors who can afford a high amount portfolio and has a relatively higher risk-bearing capacity.
The last one is best for high profile clients who have a high risk-bearing capacity and can invest more than ₹5 CR & above.
Nine Rivers Capital PMS Commission model
Nine Rivers Capital PMS charges commission/fee from the clients under three different models for the portfolio service offered to them. All models have some advantages as well as disadvantages from the point of view of clients.
They choose any one model as per their convenience and benefit. Types of commission model:
- Prepaid commission
- Volume-based commission
- Profit-sharing commission
Clients are free to choose any model according to their wish.
The Prepaid commission is a bit risky commission for the clients and favourable model for the fund managers. This is because, under this model, the PMS commission is charged in advance by the fund manager. A Client pays commission before seeing the performance of his/her portfolio.
Means fee is being charged before providing portfolio management service or before starting of a service.
Under this model, a certain percentage of the amount of investment is charged as a pre-paid commission. Higher the investment, the higher the fee and vice-versa.
This model can be unfavourable for the client if the performance of the portfolio will be not good and if it performs well then a client will be benefitted.
Under this model, the commission is charged on the basis of the value of the number of transactions completed for a portfolio. Higher the volume of transaction, higher the commission.
In this model, the loyalty of a fund manager and market situation plays an important role. If a fund manager is not loyal in his profession, he can increase the volume of transactions by doing many meaningless transactions without thinking much about the portfolio.
In the same way, if the market situation is unfavourable then also the number of transactions can increase.
Profit-sharing based commission:
The Profit sharing commission model is the favourite commission model for all most all the clients. As in this model, a fund manager is under pressure for the positive performance of the portfolio because he will get his commission only after realization of the profit.
Here the rule is no profit, no fee/commission.
A certain percentage of the profit is charged as a commission. Most of the PMS house recommend this model to the clients. In this model, a client gets a high-profit percentage and low commission charges.
Let’s have a look at the percentage of the commission charged under these three models:
Nine Rivers Capital PMS Charges
Except for Commission/fee, there are various types of other charges also which Nine Rivers Capital charges from the clients. Such charges are management fee, brokerage fee, upfront charge, Exit load fee, Custodian fee, and depository fee.
Management fee: It is charged according to the commission model selected by the clients and the PMS house.
Brokerage fee: The range of brokerage fee is 0.006%-0.016% upon the total transaction value. Generally, this fee is charged by the Asset management team.
Upfront fee: This is a type of prepaid fee, which is charged by most of the PMS houses and Nine Rivers Capital also charges the same. Normally, the range of upfront fee is between 0.85%-0.145%.
Depository charges: It is charged in the range of 0.08%-0.15% of the total Asset value.
Custodian charge: Generally, it is charged between 0.15%-0.25% of the total asset value by all the PMS houses.
Exit load charge: This is a charge levied on the exit from the PMS. If a client exit within 12 months of PMS creation, the commission will be charged between 0.75%-1.15% and if an exit is after 12 months then there will be no charge.
Nine Rivers Capital PMS Benefits
There are many benefits of Portfolio Management Services with Nine Rivers Capital, here are some of them:
- Bach office login support is provided by the Nine Rivers Capital PMS to the clients. This facility, clients are allowed to log in to get the entire details and reports of their portfolio management service at any time.
- Nine Rivers Capital provides the facility of flexible investment plans and commission model. A client can choose any model according to their convenience.
- The PMS house has years of experience in the PMS field. Its team members are experts in their field so the clients can get expert opinion and service in portfolio management.
- The investment strategies used by the firm ARE based on a 360-degree approach. It means before making investment-related decision all aspects of a stock is checked properly so that there remains no chance of mistake.
- All aspects of an investee company are well analyzed by the experts of Nine Rivers Capital PMS
Nine Rivers Capital PMS Customer support
Nine Rivers Capital PMS provides various customer support to the clients so that they can get solution of their every problem related to the portfolio management service.
The very first support which you will get as a client of Nine Rivers Capital PMS is through call and Email support. One can call the email the firm directly for any query if they have.
Apart from this, a relationship manager is also provided who helps the client to solve any type of problem-related to the investment and solving queries also.
WhatsApp support is also available. As the WhatsApp is very convenient to use so it became a very popular medium of communication. One can get a solution through this facility also.
A client can directly call to the fund manager also in case he/she want to answer any question related to the portfolio. One can call the fund manager 5-8 times in a month. The TAT for resolving a problem is 15 working days.
Nine Rivers Capital PMS Conclusion
Nine Rivers Capital PMS is on the top of the list of portfolio management service providers. It’s unique and effective investment strategies has given an excellent result to all of its clients.
The firm offers flexible investment plans keeping the financial capacity of every client in mind. The fee/commission models are also according to the convenience and preference of the clients. One can choose any commission model which they think fits him/her.
Other charges are also at par with the rest of the PMS house in the Industry. And it offers excellent customer support to the clients.
Overall, we can say that if you are the one who is searching for a good PMS house, you can keep NINE Rivers Capital PMS on the top of your list.
In case you are looking to use PMS for your investments, let us assist you in taking the next steps forward. Just fill in some basic details in the form below:
Nine Rivers Capital PMS FAQs
Here are the most frequently asked questions about Nine Rivers Capital PMS among the client base:
What is Nine Rivers Capital PMS?
Ans: Nine Rivers Capital PMS is one of the top portfolio investment service providers in India.
What Are the unique strategies used by Nine Rivers Capital PMS?
Ans: There are two types of unique strategies used by the firm which are Aurum small-cap opportunities and Aurum Growth opportunities.
Is there any Lock-in period in Portfolio management service?
Ans: No, There is no Lock-in period in PMS. But, the firm charges an Exit load fee in the range of 0.75%-1.15% up on the total withdrawal value before one year of completion.
Is there any guarantee of return?
Ans: As per Portfolio Management Services Regulations SEBI in India, there is no guarantee of return. However, the firm tries to outperform the benchmark indices.
How one can introduce initial corpus to his/her account?
Ans: Initial corpus can be introduced through NEFT/DD/RTGS/Cheque. Funds can come only through a bank account in the name of the investor.