Reliance PMS

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Reliance PMS

7.6

Team Credibility

8.0/10

Returns

8.0/10

Offerings Range

7.5/10

Charges

7.0/10

Customer Support

7.5/10

Pros

  • Reasonable Returns
  • Wide Range of Investment Products
  • Decent Research Team

Cons

  • Relatively Higher charges

Reliance PMS a well-known and trustworthy name in the world of portfolio management services (PMS). The huge brand name equity of the firm self reflects the quality of the services provided by them. It has gained a lot of popularity among the portfolio investors by its robust performance track record especially in recent years.

Reliance PMS Review

Reliance PMS was established in the year 1993 under the leadership of Anil Ambani. This Mumbai based company is a profitable stockbroker registered under SEBI with the name of Reliance Securities.

The company is known for its portfolio management services. It has an in-house team of well-experienced and knowledgeable research analysts and fund managers who do their best to bring returns to the associated client’s portfolios.

They work by keeping the investment objective and risk appetite of investors in their mind. And the professional fund managers monitor the investment funds of clients to achieve their financial goals.

Reliance PMS follows the bottom-up stock picking investment philosophy based on fundamental analysis of stocks. The aim of the company is to create wealth for the investors over a medium to long term by participating in the Indian growth story. The focus of the portfolio is to select those companies which have high growth emerging businesses or are the leader in their operational field.

Reliance PMS provides discretionary PMS service, advisory services, CMPFO services, and EPFO (more on this later).

In this detailed article, we are going to discuss each and every important aspect of the company which is important from the point of view of a portfolio investor. We will discuss the types of PMS provided, Manager’s details, strategy details, investment plans, commission/fee model, customer support and finally some FAQs.


Reliance PMS Types

Reliance PMS provides both types of PMS services to the clients i.e. Discretionary & Non-discretionary PMS. Both are provided by the company for the satisfaction and convenience of the clients.

Discretionary PMS:

The portfolio manager takes care of the investment portfolio in this PMS type. The fund manager gets the right to add or remove any product from the portfolio for the better performance of the investment portfolio.

In this portfolio service, a client gets the benefit from the fund manager’s knowledge and experience and the chances of good performance of the portfolio increases.

Non-discretionary PMS:

Under non-discretionary PMS, a client gets the advisory service from the portfolio manager related to the investment portfolio. However, the whole responsibility related to the portfolio lies with the client only.

He/she will have the onus as far as the performance or return is concerned. The positive or negative performance of the portfolio will be the result of decision making by the client only.


Reliance PMS Managers’ Details

The team of fund managers and research analysts of Reliance PMS plays a vital role in the success and superior performance of the company. The firm has a team of well-experienced and knowledgeable members who work hard to provide a risk-free return to the investors.

Here are the details of the top two fund managers of Reliance PMS:

Varun Goel (Fund Manager):

Mr Varun Goel is working as a fund manager at Reliance PMS. He has 12 years of experience as a fund manager in the Indian equity market.

The aim of Varun Goel is to provide the investors risk-free investment return. He has a track record in identifying those stocks which have provided multiple returns.

Shahzad Madan (Fund Manager):

Presently, Mr Shahzad Madan is working as a fund manager at Reliance PMS. He has 17 years of experience as a fund manager. He has completed CFA.


Reliance PMS Strategies Details

Reliance PMS uses various types of strategies which are used to provide medium to long term return to the portfolio investors. The strategies use the fundamental research base for picking up the stock to make the investment.

All strategies are used according to the investment objective and risk appetite of the investors. Each strategy is different in terms of the minimum duration required for return, risk appetite, and financial objective.

Following are the three strategies which make Reliance PMS different from other PMS companies and provide a good performance of the portfolio.

  • Reliance Absolute Freedom Strategy
  • Reliance Conviction strategy
  • Reliance merging India

Let’s discuss all strategies one by one:

Reliance Absolute Freedom Strategy:

Under this strategy, the investment portfolio is created by adding large-cap stocks and quality mid-cap stocks also. The portfolio created under this strategy is mainly large-cap stocks. The inception date of this strategy is 24 September 2004.

The portfolio created under this strategy contains 20-22 stocks.

Investment Objective:

The objective of the Absolute Freedom Strategy is to generate a relatively higher return over a period of 3-5 years. It includes larger stocks and some quality mid-cap stocks.

Investment strategy:

  • The investment portfolio includes around 2 or 3 large-cap stocks which provide stability to the portfolio up to a maximum extent.
  • 1/3rd of investment portfolio includes quality mid-cap stocks which provide upside potential to the portfolio.
  • Bottom-up stock picking quality based on the special framework made for this purpose. It helps in identifying those stocks which give outstanding return to investors.
  • Investment under the strategy is made with the view of ‘Hold’ and ‘Buy’.
  • The total number of stocks in the portfolio under this strategy is in the range of 20-25.
  • Benchmark is NIFTY and BSE 200.

Reliance High Conviction Strategy:

Reliance High Conviction Strategy, the investment portfolio is created with a view of outstanding return from the long term investment through large-cap, mid-cap, and small-cap stocks. The inception date of this strategy is March 2014.

Investment Objective:

The objective of this strategy is to generate an outsize return from the portfolio, with the time horizon of 3-5 years, and the mixture of top 20-25 stocks.

Investment strategy:

  • It is suitable for those investors who come with a view of long term wealth creation.
  • It is a multi-cap portfolio that contains a different range of percentage for the large, mid, and small-cap stocks based on the return potential of each.
  • The portfolio under this strategy contains large-cap stocks which are 30%-60%, Mid-cap stocks-30%-50%, and small-cap stocks 20%-50%.
  • The investment portfolio maximizes with the stocks of HOLD and BUY category.
  • The minimum time horizon for return is 3-5 years under this strategy.
  • Benchmark is NIFTY and NIFTY 500.

Reliance Emerging India strategy:

Under reliance emerging India strategy, the focus is on those stocks which grow with the growth story of India. The portfolio involves those companies which have great potential for growth in all of its operational fields.

The inception date of this strategy is March 2017.

Investment Objective:

The investment objective of this strategy is to make the investment for the long term by picking stocks of extremely high growth capacity and has the potential to become a leader in its all operational fields.

Investment strategy:

  • The portfolio involves high growth potential stocks only, have the capacity to grow with the growth of the Indian story.
  • The minimum investment Horizon is 3 years.
  • Suitable for those investors who seek wealth creation through high growth potential companies.
  • Investment is made from small-cap, mid-cap, and large-cap stocks.
  • The investment themes include discretionary spending, Domestic manufacturing, new economy, and Infrastructure revival.
  • Benchmark is NIFTY and CNX MIDCAP.

Reliance PMS Returns or Performance

The portfolio management services returns of Reliance PMS is outstanding which helps the company to attract more clients to the company. All the three strategies have performed well since its inception in comparison of the Benchmark index and additional benchmark index.

Reliance PMS is capable to beat the return of 10+ years mutual fund also.

The return/performance of Reliance PMS:

  • for 3 years is 8%,
  • approximately 11% for 5 years,
  • 14% return for 7 years of investment,
  • 17% for 7 years, and
  • for more than 11 years, the return is 19%.

Hence, we can see the robust performance of Reliance PMS that makes it one of the leading performing PMS company.


Reliance PMS Investment plans

Reliance PMS provides different types of investment plans for investors according to their financial need and risk appetite. The plan has a different range of investment money required for investment that suits to the different level of investors.

The investment plan is for the low-risk appetite investors as well as for the high-risk appetite investors also. The minimum investment amount starts with ₹25 Lakhs and goes above ₹5 CR.

Here are the names and ranges of investment plans provided by Reliance PMS:

  • Bronze (₹25L-₹50L)
  • Silver (₹50L- ₹1 Cr)
  • Gold (₹1Cr-₹5 Cr)
  • Platinum (₹5 Cr & above)

The first plan is Bronze, ranges from ₹25L – ₹50L. It suits to the new player of investor and has a low-risk appetite. The second plan is Silver, it suits those who have a moderately low risk-bearing capacity, can invest in the range of ₹50L-₹1CR.

The third investment plan is Gold, It fits those investors who have a moderately high-risk bearing capacity, the investment range is ₹1CR – ₹5CR. And the last one is Platinum, it fits those investors who have a high risk-bearing capacity and can invest somewhere above ₹5 CR.


Reliance PMS Commission/Fee model

Reliance PMS provides three types of commission model to its clients for their convenience of payment of a commission. The clients are free to choose the commission model according to their choice and convenience.

Here are three different kinds of commission models provided by the company.

  • Prepaid commission model
  • Volume-based commission model
  • Profit-sharing based commission model

Prepaid Commission model:

Under prepaid commission model, the commission is paid in advance to the fund manager without starting the portfolio management service. A client will be charged a fixed percentage of the total value of the portfolio as a commission/fee.

In this model, the performance of the portfolio investment doesn’t play any role because the commission is made in advance without even starting of any trade.

In prepaid commission model, if the return to the portfolio is superior then it will be favourable for the client because he will not have to pay according to the profit generated.

Volume-based commission model:

The commission under the volume-based model is charged on the basis of the value of total transactions completed for the portfolio. The higher the value of total transactions completed, the higher will be the commission.

If the fund manager of your portfolio is genuine, then there is no problem. But, if the fund manager is not authentic then he will try his best to increase the volume of transactions for the portfolio so that he can charge a higher amount of commission from the client.

A fixed percentage of the commission is decided by both the parties to charge as the commission.

Profit-based commission model:

Under this model, a client is charged a fixed percentage of the profit generated out of his portfolio as a commission of the fund manager. Higher the profit generated, the higher will be the commission charged.

This is one of the best and a favourite commission model for the investors. As in this model, the full effort of a fund manager is confirmed because the commission of a fund manager depends on the profit generated and is well known to them.

Here is the table which shows the percentage to be charged in each of the commission models:


Reliance PMS Charges

A client is required to pay a few other charges also except the commission of the fund manager. These charges are management fee, brokerage charge, depository charge, custodian charge, exit load fee etc.

Management fee: This is the fee which is charged according to the commission model opted by the decision of both the parties.

Upfront fee: It is just like a prepaid fee, which is charged by the PMS houses. The charge is in the range of 1.5%-2.5% of the total asset value.

Brokerage charge: It is charged by the portfolio manager of Reliance PMS on the total value of transactions completed for the portfolio. The range of the charge is between 0.01%-0.05%.

Depository charge: This charge is levied on the total investment amount. The normal range of this charge is between 0.13%-0.17%.

Custodian charge: This charge is levied by the team of Reliance PMS on the portfolio investors. It is charged between 0.35%-0.45% of total asset value.

Exit load charge: It is charged on the withdrawal amount if done before 12 months of portfolio created. It is charged between 1.3%-1.8% of the total withdrawal amount. There is no charge levied if the withdrawal is made after 12 months of portfolio creation.


Reliance PMS Benefits

A client of the Reliance PMS will get the following portfolio management services benefits among the various other benefits provided by the company.

  • Multi-strategy provided by the company which suits the clients according to their investment objective and risk-bearing capacity.
  • A track record of robust performance provides confirmation to the clients up to some extent for a good return from their portfolio.
  • All required customer support provided by the firm.
  • Flexible investment plans and commission models provided by the company to the clients.
  • The top-up facility provided to the clients for their convenience.
  • A well-experienced team of research analysts and fund managers to provide their experienced hands to the investment portfolio.

Reliance PMS Customer support

Reliance PMS provides a superior class customer support facility to the portfolio investors. Like, the customers are allowed to call the company directly in case of any query arises related to the portfolio. The clients can also get solutions to their portfolio related problems through Email and Whatsapp.

Customers of the company also get relationship manager support. The high net worth clients can directly call the fund manager also in case of any query.

The client can call the fund manager from 1-5 times in a month and low investment value clients can call the fund manager from 1-3 times in a month.

The Reliance PMS Turnaround time (TAT) for issue resolving is 11 working days.


Reliance PMS Conclusion

Reliance PMS is a well-known name in the portfolio management services industry. It has a number of strategies that have given the best results to the portfolio investors.

The firm also has flexible investment plans and the commission models which give many options to the clients to choose any one according to their convenience. The expert team of the company works according to the client’s investment objective and risk appetite.

The company also gives the facility of full customer support to the clients so that they do not face any problem related to their portfolio.

Hence, undoubtedly Reliance PMS is one of the best PMS services in India.

In case you are looking to use Portfolio management services for your funds and investments, let us assist you in taking the next steps forward:

PMS Form

Reliance PMS FAQs

Here are some of the most frequently asked questions asked about Reliance PMS you must be aware of:

What are the strategies provided by Reliance PMS?

The Following strategies are provided by Reliance PMS:

  • Absolute Freedom strategy
  • High conviction strategy
  • Emerging India strategy

What are the types of PMS provided?

Reliance PMS provides both discretionary and Non-discretionary PMS.

Can a client withdraw his/her fund any time?

Yes, a client can withdraw his/her fund as well as capital at any time.

Can an investor add new funds in his portfolio on a regular basis?

Yes, a client can add funds on a regular basis.

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