Rakesh Jhunjhunwala PMS

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Rakesh Jhunjhunwala PMS

7.9

Team Credibility

8.5/10

Returns

8.0/10

Offerings Range

8.0/10

Charges

7.5/10

Customer Support

7.5/10

Pros

  • Huge Brand Equity
  • Multiple Strategies
  • Various Commission Models
  • Good Returns

Cons

  • Customer Support can be Improved

The name of the Rakesh Jhunjhunwala PMS comes under the name of the largest portfolio managers of India. The company is popular for its best service and the portfolio return to the investors.

Rakesh Jhunjhunwala PMS Review

Rakesh Jhunjhunwala PMS came into existence after joint efforts of four legends Mr Ashwin Kedia, Mr Lashit Sanghvi, Mr Hiren Ved, and Mr Rakesh Jhunjunwala in the year 1999.  From the very beginning, the company has been providing reasonable services to the clients and now it became one of the largest portfolio management service providers in the market.

The company got registered with SEBI in the year 2000 and started its PMS service in the year 2002.

The company is giving its expert advice and investment ideas with the portfolio management service to the clients for the last two decades. Currently, the company is managing more than USD 1 Billion of total asset.

The team of experts appointed by the company works hard to meet the expectations of the clients. They remain attentive round the clock to grasp the opportunity arises in the equity market. The team always tries to exceed the return from the investment portfolio which is expected by the client. They are expert in market understanding.

The investment portfolio return is also superior which attracts the new client and maintain a healthy relationship with the existing clients.


Rakesh Jhunjhunwala PMS Types

In this article, we will try to cover the all-important aspect of the portfolio manager which is required from the point of view of an investor. We will cover topics like the types of PMS, managers detail, type of strategies, commission model, investment plan, return/performance, charges, customer support, conclusion and lastly FAQs.

Rakesh Jhunjhunwala PMS offers two types of portfolio management services to the clients. The first one is the discretionary service and the second one is non-discretionary service.

Let’s have a brief discussion of both the services:

Discretionary PMS:

In the discretionary PMS, the portfolio manager of a client holds the whole right to take the decision related to the investment portfolio. He/she can decide whether a security should be added to the portfolio or removed to get a better return.

A client can give his/her suggestion to the portfolio manager, but the ultimate decision will be taken by the portfolio manager only.

Non-Discretionary PMS:

Non-discretionary PMS means the right to take the decision related to the portfolio manager remains in the hands of clients only.

He will be liable for the profit/loss earned from the investment portfolio. He can take suggestion from the portfolio manager also if he/she wants.

In this type of PMS service, a portfolio manager act like a trader only who just trade on behalf of an investor.


Rakesh Jhunjhunwala PMS Fund Managers

The team of experts like the research analysts, portfolio managers, and the fund managers is the pillars of a portfolio management company. Rakesh Jhunjhunwala PMS has a team of portfolio managers who work day and night, observe the capital market closely just to provide a better return to the investors.

Here we are going to discuss one of the main portfolio managers of the company:

Mr Amit Nadekar (Portfolio manager):

Mr Amit Nadekar is one of the best portfolio managers at Rakesh Jhunjhunwala. He holds more than 16 years of experience in diversified field of finance. He has worked in the field of corporate finance, Accounts, Audit, Taxation, and the most important fund management.

Mr Nadekar started his career as a Lead analyst in the US market. He also worked as an entrepreneur in equity research for KPO US/UK client. After that, he moved to the Corporate strategy team in Raymond Ltd.

Mr Amit joined Rakesh Jhunjhunwala PMS in the year 2005.

As far as his educational qualification is concerned, he has completed Chartered Account(CA) and MBA in Finance.


Rakesh Jhunjhunwala PMS Strategies

Rakesh Jhunjhunwala PMS provides three main investment strategies to the clients. The investment strategies are also customized by the company, according to the requirement of the client. The portfolio manager first tries to know the risk-bearing capacity and the return expectation of the client then they create a strategy for them.

Following are the three strategies offered by the company:

  1. High growth- PMS
  2. High Growth- Select Stock PMS
  3. Leadership

1. High growth-PMS:

High growth PMS is the first investment strategy offered by the company. The main objective of this strategy is to invest in public listed high growing companies to get a superior return over the long run.

The strategy adopts the “Top-down” and “Top-up” approach to select the stock for the investment portfolio. The strategy has a record to offer a consistent return to the investors in the past.

The high growth strategy has performed better than the benchmark in 11 out of 13 calendar years from the year 2002.

The investment portfolio under this strategy consists of 20-25 stocks in which the percentage of the large-cap stock is 25%, small-cap stocks are less than 20%, and the balance is for mid-cap.

The mix-up of the percentage of stocks gives the opportunity to grasp the high exposure stock in the market with maintaining fair risk-reward.

The launch date of this investment strategy is 8th May 2002. The minimum initial investment required under this strategy is Rs.50 Lakhs. And the suggested investment time horizon is 3-5 years. The performance/return of the investment strategy is measured against the benchmark S&P BSE 500.

2. High growth-Select stock PMS:

High growth-Select Stock PMS is another investment strategy offered by Rakesh Jhunjhunwala PMS to the clients. The objective of this strategy is to invest in those public listed companies which are of high conviction and can give a good return to the investors over the long run.

The strategy adopts the top-down and bottom-up approach to select the stock to add in the investment portfolio.

The total number of stock which is added in the investment portfolio is 8-12 stocks from different sectors. Single stock exposure to the investment portfolio is capped to 25% maximum at cost.

The launch date of High growth-Select stock PMS is 20th December 2008. The minimum investment required is Rs.3 Crore, suggested time horizon of investment is 3-5 years under this strategy and the benchmark is S&P BSE 500.

3. Leaders of tomorrow strategy:

The last strategy offered by Rakesh Jhunjhunwala PMS is leaders of tomorrow. The strategy aims to invest in private investment in public equity in the Indian listed stocks, listed equities, and IPOs for capital appreciation over the long run.

The investment strategy has the ‘high-risk’. So, those investors who are comfortable to bear the high risk to get higher return can opt this strategy. There is a 2 year lock-in period and thereafter quarterly redemption with 15 days notice is allowed.

The eligible investors for the strategy are Indians, NRIs, Hindu undivided family (HUF), Banks, corporate bodies, Trusts, and partnership.

Multi-cap stocks are added in the investment portfolio under the strategy. The minimum investment amount required is Rs.1 Crore and the suggested time horizon of investment is 3-5 years.


Rakesh Jhunjhunwala PMS Performance

Rakesh Jhunjhunwala PMS has given an outstanding performance over the years. The performance of the company has attracted a good number of investors to the company.

The company has outperformed in total 11 years out of 13 years against the benchmark S&P BSE 500 since its inception in the year 2002.

The high growth strategy performed very well as it has grown the initial investment of Rs.1 CR to Rs. 37.8 Cr as on 30th June 2019. The wealth under this strategy has grown continuously.

Let’s talk about its return:

The CAGR Performance of Rakesh Jhunjhunwala PMS for:

  • the first 3 years is 12%,
  • it increases to 15% in the first 5 years.
  • Again, the performance for the first 7 years is 19% and
  • for the first 9 years, it is 17%.
  • Finally, the return increased to 22% for 11 plus years.

Hence, we can see the company is providing a healthy return to the investors.

For more information, you can check this detailed review on Portfolio Management Services Returns.


Rakesh Jhunjhunwala PMS Investment plan

Rakesh Jhunjhunwala PMS offers four types of investment plans to the clients. Each plan is created with the aim of investment support to the clients so that a client can choose a plan according to his/her financial capacity.

Following are the investment plans:

  • Bronze
  • Silver
  • Gold
  • Platinum

Bronze:

The pan is created for the investors who want to enter in the portfolio management service with a low amount or we can say can bear the low risk. The range of investment amount under this plan is Rs.25,00,000 to Rs.50,00,000.

Silver:
The second investment plan offered by Rakesh Jhunjhunwala PMS is ‘Silver’. This plan best fits those investors who can bear a moderate risk in the PMS service. The amount of investment ranges between Rs.50,00,000 to Rs. 1 Cr.

Gold:

If an investor is ready to bear a bit more risk in the portfolio management service to get a better return and have the capacity to invest above Rs 1 Cr and below Rs. 5 Cr can choose this plan.

Platinum:

The last and highly risky investment plan. Those investors who are ready to take high risk in the investment to get high return can take this plan. The plan requires an investment of Rs. 5 crore & above.


Rakesh Jhunjhunwala PMS Commission model

The commission model provided by the portfolio management companies is just to give an option to the investors to pay commission to the company according to their comfort. Some investors want to pay the commission in advance, while others on a profit basis.

Rakesh Jhunjhunwala PMS gives three best options to the investors to pay the commission which are:

  • Profit based
  • Volume-based
  • Prepaid

Profit based model:

Under the profit-based model, an investor is required to pay a commission on the basis of the total profit earned by the portfolio manager out of the investment portfolio.

A percentage of total profit is fixed on the basis of the total profit slab by the portfolio manager and the investor before starting the service.

This commission model is thought to be the best model of the industry as an investor is required to pay commission only after getting profit. No profit, no commission. So, a portfolio manager puts his/her best to earn profit out of the investment portfolio.

Volume-based model:

The total volume of transactions completed within a year by the portfolio manager for an investment portfolio is the base of the commission percentage in this model.

If the volume will increase, the commission required to pay will also increase.

The genuineness of the portfolio manager plays a vital role in this model because if he/she wants, the volume can be increased too much without any output and an investor will be required to pay a higher commission.

Prepaid commission:

The Prepaid commission is another commission model provided by the company. Under prepaid commission model, an investor is required to pay commission in advance on the basis of the total asset value of the portfolio. A fixed percentage on the basis of the total worth range of portfolio is decided by both the parties.

Here is the table shows the percentage of commission and the range of volume, total worth of portfolio, and the total profit:


Rakesh Jhunjhunwala PMS Charges

Following are the charges which an investor will have to pay to the company to take the portfolio management service.

Management fee: The fee is decided on the basis of the commission model selected by the parties.

Brokerage charge: Brokerage charge is taken by the portfolio manager for the service given by him/her on the basis of total transactions completed. It ranges between 0.008%-0.012%.

Upfront fee: This fee is just like a prepaid fee which is required to pay before taking service of portfolio management by the company. The fee is normally charged between 0.08%-0.18% of total asset value.

Custodian fee: The company charges the custodian fee in the range of 0.25%-0.35% of total asset value.

Depository charge: The range of depository charge is between 0.12%-0.18% of total asset value.

Exit load charge: If an investor wants to withdraw the portfolio amount within a year of portfolio creation, the company takes a charge from them in the range of 0.09%-0.19% of the total withdrawal amount. After one year of portfolio creation, no charge will be taken from the investors.


Rakesh Jhunjhunwala PMS Benefits

The various types of benefits provided by a portfolio management company make them different from their competitors.

Rakesh Jhunjhunwala PMS gives these benefits to their clients:

  • Has the track record of providing superior client service with wealth creation of over one and half decades.
  • The company has a dedicated team of professionals who work round the clock for the benefit of investors.
  • Consistent market philosophy and investment pattern.
  • Many investment strategies to offer to the clients according to their risk-bearing capacity.
  • Good understanding of equity market and trends helps in taking the right decision at the right time.
  • Offers investment plans and commission model according to the convenience of clients.
  • Employees of Rakesh Jhunjhunwala strictly abide code of conduct.
  • The company believes in full transparency while doing business.

For more information, you can check this detailed review on the benefits of the portfolio management services.


Rakesh Jhunjhunwala PMS Customer support

Rakesh Jhunjhunwala PMS provides best customer support to their clients. Some of the supports provided by them are as follows:

Clients are allowed to call the company in case of any query related to their portfolio. They can also Email and Whatsapp their queries. A relationship manager is also there for the clients help from time to time.

In case of any serious or urgent question, one can directly call the portfolio manager also. The number of the call depends on the total net worth of their portfolio.

The maximum days to solve the queries that are the TAT is 12 working days.


Conclusion

Rakesh Jhunjhunwala PMS is famous for its effective investment strategies in the portfolio management market. Its strategies give very attractive return to the investors.

The company offers multi investment plans and commission models to attract more and more clients. The team of experts work day and night for the benefit of clients. The charges of the PMS Service are affordable and the customer support system is also favourable.

Overall, we can say that to add Rakesh Jhunjhunwala PMS in the list of the best PMS Service providers will be a wise decision.


Rakesh Jhunjhunwala PMS FAQs

Here are some of the most frequently asked questions asked about Rakesh Jhunjhunwala PMS:

Which investment strategy of Rakesh Jhunjhunwala PMS offers the best return to the investors?
The High Growth product has given the best return to the investors since its inception.

What are the risks associated with PMS?
PMS investment is not free of risk. It includes various types of risk with the loss of principal amount also.

What is the minimum investment time horizon of PMS?
The minimum investment time horizon of PMS is 3 years to get a return.

 

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