Porinju Veliyath PMS
Porinju Veliyath PMS runs its business on a simple philosophy that is the best way to create wealth in the long term is to ‘Buy something for rupee five, whose value is worth ten rupees’.
Porinju Veliyath PMS Review
Porinju Veliyath PMS was established on 11 December 2002 with the aim of offering an excellent portfolio management service.
The company was established by Mr Porinju Veliyath. The headquarter of the portfolio manager is in Kochi, Kerala.
The company has created one of the best strategy models which are very famous in the PMS market.
The strategy of the company is to invest in those stocks which are profitable and run its business with well-managed professionals. They search the stocks which can be bought at their intrinsic value.
There are many fund managers and research analysts with the company to handle the investment portfolio of the clients.
They work with their full potential and experience just to provide the best return with minimum risk to the investors.
The PMS companies use their internal research and analysis results to pick the best stock for the portfolio. Also, it uses its feedback network and market intelligence for the same.
PMS meaning is it is a portfolio service that diversifies your portfolio and risk as well.
And this is the strength as well as the key driver of the company in superior performance over the years by beating the benchmark index.
The investors of the company are Individuals, HUFs, Companies, FPIs, Firms, NRIs who want to invest their hard-earned money with the Porinju Veliyath.
Now, we are going to discuss the detail of Porinju Veliyath PMS. We will try to cover all important aspects of the company such as types of PMS offered by the company, manager’s detail, PMS Details, investment strategies, commission model, investment plans, charges, customer support, conclusion and finally FAQs.
Porinju Veliyath PMS Types
Porinju Veliyath PMS offers Discretionary PMS to the clients. Any Individual, NRI, LLP, firm can join the company to get the discretionary portfolio management service from them.
Under Discretionary PMS, the whole responsibility related to the performance of the portfolio lies in the hands of the portfolio manager. He/she will decide the security that should be added or removed from the portfolio for better performance.
In this type, a client can only check the performance through the Id and password provided to them to watch their portfolio. The professional experts of the company take care of the portfolio. And the ultimate decision depends on the portfolio manager.
- A dedicated and professional portfolio manager is appointed to take charge of the investment portfolio.
- The Portfolio Manager has the full right to manage the portfolio on behalf of the client.
- Long-term capital growth potential.
- Clients will get regular reports on their investment portfolios.
Porinju Veliyath PMS Manager’s Details
Porinju Veliyath PMS is full of expert professionals whether they are fund managers or research analysts. But, Mr Porinju Veliyath has an important place in the company.
Porinju Veliyath PMS Portfolio manager
Porinju Veliyath has more than 20 years of long experience. He started working in the stock market in the year 1980. Steadily he became an expert in his field of picking a long term profitable stock and fund management.
He became a successful portfolio manager in 1994. He started his career with two leading broking houses in Mumbai.
Mr Porinju Veliyath has completed an MBA.
Porinju Veliyath PMS Strategic Details
Porinju Veliyath PMS creates a portfolio based on large-cap, mid-cap, and small-cap. The portfolio is created according to the investment need and risk-bearing capacity of the individual.
There is no restriction on the market cap while creating a portfolio. The main thing which to take care of is that the portfolio should be according to the investor’s requirement.
The key to the investment objective of Porinju Veliyath PMS is capital protection first, and then to maintain its growth at a healthy rate. Those stocks are selected by the portfolio managers which are expected to give a healthy return over a long period.
The company does not make investment decisions just by the hot trend of the current market. It tries to buy only those stocks whose cost is just half of its value.
In a broad sense, the company invests in those companies which are managed and run by the smart management and the stock is available well below its market price that we can say at its intrinsic price.
The process of investment of Porinju Veliyath PMS starts with the Universe of thousands of stocks available in the equity market. The idea of the selection of stocks comes from various journals, Corporate databases, company screening, and other knowledgeable market sources
The second step of the investment process is criteria screening. Those stocks which match the criteria fixed by the company come under the selection list.
Once the few stocks are selected, Porinju Veliyath PMS determines the intrinsic value of each of the selected stocks. This stage includes a fundamental analysis of stocks as well.
After making the final list of stocks, the investment portfolio is created by adding those stocks.
Porinju Veliyath PMS Equity Intelligence Strategy: This strategy is the only strategy offered by the company to date. The strategy suits all kinds of customers as the stocks are picked according to the financial objective of clients.
The equity Intelligence strategy is normally a discretionary portfolio management strategy in which stocks are selected by the portfolio manager and the role of a client remains just as a viewer.
The minimum investment amount under this strategy is ₹50,00,000. This initial investment amount is double the minimum investment amount of most of the PMS companies (The minimum investment amount is ₹25,00,000 as per SEBI guidelines).
A client can withdraw their investment amount at any time, there is no restriction for this.
Porinju Veliyath PMS Returns
The performance of the Porinju Veliyath portfolio management service is measured against the benchmark of BSE 500 and Nifty. The track record of Equity Intelligence strategy is extremely impressive.
Here is the table shows the performance of Porinju Veliyath PMS against the benchmark:
From the above table, we can see that the Portfolio created by the Porinju Veliyath PMS has performed very well over the years.
In the year 2013-14, the return of the portfolio was recorded 75.03% against BSE 500 16.93% and Nifty 17.81%.
Again, in FY 2015-16, the performance of the portfolio was far superior to the BSE 500 and Nifty.
The performance of the portfolio was also excellent in the FY 2016-17, the portfolio gave the return of 46.98% against the benchmark Index BSE 500 and Nifty.
So, there remains no doubt about the equity intelligence portfolio strategy performance of the company. One can earn good portfolio management service returns by investing in the company.
Porinju Veliyath PMS Investment plans
Porinju Veliyath PMS offers four different categories of investment plans. Each plan has a range of investment amounts. The range is fixed by keeping the financial and risk-bearing capacity of investors. One can invest the minimum amount however, the other can invest the higher range of the plan.
So, the investment plans are:
- Bronze (₹50,00,000 min.)
- Silver (₹50 lacs to ₹1 Cr.)
- Gold (₹1 Cr to ₹5 Cr.)
- Platinum (₹5 Cr. & above)
Bronze: This plan is for those investors who want to invest in PMS with the minimum investment amount. They can enter this plan by investing just ₹50,00,00. This plan fits those who don’t want to take much risk.
Silver: The plan ‘Silver’ is for those investors who want to invest money in the range of ₹50 lacs to ₹1 Cr. The holder of this plan has a moderately low risk-bearing capacity and has a low financial capacity also.
Gold: Under this investment plan, the investment range is between ₹1 Cr to ₹5 Cr. The investor who chooses this plan has a moderately high risk-bearing capacity.
Platinum: The plan platinum is the last investment plan offered by the company. The plan fit to high profile investors or institutions who want to invest a big amount in the portfolio investment. So, if you are one who wants to invest somewhere above ₹5 Cr with Porinju Veliyath, you can choose this plan.
Porinju Veliyath PMS Commission model
Porinju Veliyath PMS gives its clients the flexibility of choosing models. All are based on three different factors that are the total value of the portfolio, the total transactions completed by the portfolio manager and the total profit earned from the investment portfolio.
Here is the name of three models of the commission:
- Prepaid commission model
- The volume of transactions based commission model
- The total profit-based commission model
Let’s start the discussion one by one:
Prepaid commission model:
The prepaid commission model allows you to pay the PMS commission to the portfolio manager in advance. The commission is paid without starting of the actual portfolio management service.
The basis of the commission is the total portfolio value. A percentage is fixed during the agreement on that basis commission is charged.
Normally, a bit higher commission is charged in comparison to the volume-based commission model.
Volume-based commission model:
The model is based on the total value of transactions completed within a year by the portfolio manager.
Under this model, the role of the portfolio manager is vital as it depends on him/her how they treat the investment portfolio. Some portfolio manager tries to increase the number of transactions, just to earn a higher commission. However, the case is not always the same.
A certain percentage is charged on the various slabs of the total volume of transactions completed by the portfolio manager.
Profit-based commission model:
The profit-based commission model is the best model for a portfolio investor. As in this model, you are not required to pay the commission before getting profit. If you get profit, you will have to pay a commission. If not, you don’t have to pay a commission.
A portfolio manager knows very well that if he will not be able to generate profit, he will not earn a commission. So, they do their best to provide profit to the investors.
The below-mentioned table shows the slab of investment and percentage of commission within each commission model:
Porinju Veliyath PMS Charges
Porinju Veliyath PMS also charges various types of other fees to offer its client portfolio management service. The charges include management fees, brokerage fees, custodian and depository charges, exit load fees etc. is called PMS Charges.
Following are the charges:
Management fee: The management fee will be charged as follows
Fixed management fee: It will be charged 2% per annum or 0.5% on average NAV on a quarterly basis and
Performance: It will be 10% of return above 10% per annum.
Other charges which include brokerage fees, bank charges, depository fees, custodial charges, Legal and statutory charges and other transaction-related charges will be directly charged from the portfolio management account and would be charged at actual.
Porinju Veliyath PMS Benefits
If you are ready to invest your money through Porinju Veliyath PMS, you will get the following benefits of portfolio management services:
Team of professionals: As an investor of the company, you will be benefited from the team of well-experienced and well-qualified professionals in stock picking according to the requirement of the portfolio.
Active management: The portfolio manager has an active team of management who helps you to provide a superior return out of your investment portfolio.
Risk management: An individual investor cannot manage risk related to the investment portfolio. So, the company is ready to minimize risk with the help of their expert team that will ultimately offer a better return to investors.
Smooth operation: You do not have to worry about any step of your portfolio investment.
The company is SEBI registered and follows every rule and regulation prescribed by them so that clients can get hassle-free service from the company. You need not worry about any stock related news and any compliance issue.
Transparency: There is nothing to hide from the investors related to their portfolio investment. The company sends you emails related to the daily report and important news updates.
All analysis reports are open to you and your customer Relationship Manager is also there on the call to solve your queries.
Superior return: The portfolio manager offers you a superior return which is the ultimate purpose of the portfolio investment.
Flexible plans and commission model: As an investor, you are free to select an investment plan as per your financial strength and risk-bearing capacity. You are also allowed to choose a commission model according to your convenience.
Porinju Veliyath PMS Customer support
Customer support is very important for an investor. They can require to ask anything at any time to the company related to their investment portfolio.
Porinju Veliyath PMS offers the following customer support to the investors.
It provides email as well as SMS support to all its valuable clients. The investors can also call the relationship manager directly to solve their PMS related queries.
A High-Networth client can directly call their portfolio manager also to ask any question related to the portfolio. They can call 3-5 times in a month depending on their net worth. On the other hand, a low net-worth client can call 2-3 times in a month.
The TAT to resolve issues related to PMS is around 8 working days.
Porinju Veliyath PMS Conclusion
Porinju Veliyath is a popular name in the financial market. It offers premier PMS service to its clients. The company offers customized investment strategies based on the requirement of clients.
These strategies have given a superior return to the investors over the years and ultimately helps in building a long-term strong relationship with the company.
Porinju Veliyath PMS offers various models of commission and investment plans. An investor can select any plan and commission model. It depends on their risk-bearing capacity and investment objective. The customer support service is also excellent.
Hence, if you are interested in portfolio investment, you can choose this portfolio manager without any enquiries.
In case you are looking to use portfolio management services for your investments, let us assist you in getting the best of returns at value-for-money charges.
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Porinju Veliyath PMS FAQs
Here are some of the most frequently asked questions about Porinju Veliyath PMS that you must be aware of:
What is the main difference between Mutual funds and portfolio management services?
The Portfolio management service is highly personalized in comparison to Mutual fund investment. Each security is picked according to the investment objective and risk-bearing capacity of a client.
Can an investor withdraw their funds anytime?
As per SEBI guidelines, an investor can withdraw their funds partially or can close their portfolio anytime.
What is the minimum investment amount at Porinju Veliyath PMS?
If anyone wants to start PMS with the company, he/she will have to start with ₹50,00,000.
Is the return/capital guaranteed?
The portfolio investment is subject to market risk, depending on the situation of the equity market. So, there is no guarantee of return.