Reliance PMS is a well-known and trustworthy name in the world of portfolio management services (PMS). The huge brand name equity of the firm reflects the quality of the services provided by them.
It has gained a lot of popularity among portfolio investors by its robust performance track record, especially in recent years.
Now, let’s have a quick look at what exactly it has to offer to you.
Reliance PMS Review
The Portfolio management services were incorporated by Reliance in 1993 under the leadership of Mr Anil Ambani. This Mumbai based company is a profitable stockbroker registered under SEBI with the name of Reliance Money.
The company 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 minds. 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 the fundamental analysis of stocks.
The company aims to create wealth for the investors over the 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 money PMS provides discretionary PMS service and non-discretionary PMS service.
In this detailed article, we are going to discuss every important aspect of the company which is important to a portfolio investor.
We will discuss a lot of things like types of PMS provided, Manager’s details, strategy details, and many more.
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.
2. 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 Fund Manager Name
The team of fund managers and research analysts of Reliance PMS plays a vital role in the success and superior performance of the company.
Reliance 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 wealth management PMS:
Varun Goel (Fund Manager)
Mr. Varun Goel is working as a fund manager at Reliance. He has 12 years of experience as a fund manager in the Indian equity market.
Varun Goel aims to provide investors risk-free investment returns. 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 wealth PMS. He has 17 years of experience as a fund manager. He has completed CFA.
Reliance PMS Strategies
Reliance PMS uses various types of PMS strategies which are used to provide medium to long term returns to the portfolio investors. These strategies use the base of fundamental research for picking up the stock to invest in.
All strategies are used according to the investment objective and risk appetite of the investors. Considering PMS Investment risk, the strategy adopted is different in terms of the minimum duration required for return, risk appetite, and financial objective.
The following are the three strategies that make Reliance PMS different from other PMS companies and provide a good performance of the portfolio.
- Reliance on Absolute Freedom Strategy
- Reliance High Conviction Strategy
- Reliance Emerging India Strategy
Let’s discuss all strategies one by one.
1. Reliance on 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.
2. Investment Objective
The objective of the Absolute Freedom Strategy in Reliance PMS is to generate a relatively higher return over 3-5 years. It includes larger stocks and some quality mid-cap stocks.
- The investment portfolio includes around 2 or 3 large-cap stocks that provide stability to the portfolio up to a maximum extent.
- 1/3rd of the investment portfolio includes quality mid-cap stocks that 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 returns 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 stocks for long term investment through large-cap, mid-cap, and small-cap stocks. The inception date of this strategy by Reliance PMS is March 2014.
The objective of this strategy is to generate an outsize return from the portfolio, with a time horizon of 3-5 years, and a mixture of top 20-25 stocks.
- 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 percentages 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 the stocks of the HOLD and BUY category.
- The minimum time horizon for return is 3-5 years under this strategy.
- Benchmark is NIFTY and NIFTY 500.
3. 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 their operational fields.
The inception date of this strategy by Reliance PMS is March 2017.
The investment objective of this strategy is to invest in the long term by picking stocks of extremely high growth capacity and has the potential to become a leader in all operational fields.
- The portfolio involves high growth potential stocks only and can 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
The portfolio management services returns of Reliance PMS are outstanding which helps the company to attract more clients to the company.
All three strategies have performed well since their inception in comparison to the Benchmark index and additional benchmark index.
This PMS company is capable of beating the return of 10+ years of mutual funds also.
The Reliance PMS performance is as follows:
- 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 companies.
Reliance PMS Investment Plans
Reliance PMS provides different types of investment plans for investors according to their financial needs and risk appetite. The plan has a different range of investment money required for investment that suits the different levels 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 ₹50 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, which ranges from ₹25L – ₹50L. It suits the new player of the investor and has a low-risk appetite. The second plan is Silver, it suits those who have a moderately low risk-bearing capacity, and 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, which fits those investors who have a high risk-bearing capacity and can invest somewhere above ₹5 CR.
Reliance PMS Fees
This service provider provides three types of commission models 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 Reliance PMS.
- Prepaid Commission Model
- Volume-based Commission Model
- Profit-sharing Based Commission Model
1. Prepaid Commission Model
Under the 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 any trade.
In the 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.
2. Volume-based Commission Model
The commission under the volume-based model is based on 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.
3. 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. The higher the profit generated, the higher will be the commission charged.
This is one of the best and favourite commission models for 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 extended by Reliance PMS:
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. which is known as PMS Charges in India.
- Management fee: This is the fee that is charged according to the commission model opted by the decision of both parties.
- Upfront fee: It is just like a prepaid fee, which is charged by the PMS companies in India. 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 the total asset value.
- Exit load charge: It is charged on the withdrawal amount if done before 12 months of portfolio creation. 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 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 confirms the clients up to some extent for a good return from their portfolio.
- All required customer support is provided by the firm.
- Flexible investment plans and commission models are provided by the company to the clients.
- The top-up facility is 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 provides a superior class customer support facility to the portfolio investors. The customers are allowed to call the company directly in case any query related to the portfolio arises.
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 a month and low investment value clients can call the fund manager from 1-3 times a month.
The Reliance PMS Turn Around Time (TAT) for issue resolving is 11 working days.
The Reliance customer care number is – 022 25816000 | 022 62436000 and the customer support email is – firstname.lastname@example.org.
Reliance PMS is a well-known name in the portfolio management services industry. It has many strategies that have given the best results to the portfolio investors.
The firm also has flexible investment plans and commission models which give many options to the clients to choose anyone 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 problems related to their portfolio.
All these traits and features add to making Reliance PMS one of the best PMS services in India.
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
2. What are the types of PMS provided?
Reliance PMS provides both discretionary and Non-discretionary PMS.
3. Can a client withdraw his/her fund at any time?
Yes, a client can withdraw his/her fund as well as capital at any time.
4. Can an investor add new funds to his portfolio regularly?
Yes, a client can add funds regularly.
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