Sundaram PMS

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Sundaram PMS

7.5

Team Credibility

7.5/10

Returns

7.5/10

Offerings Range

7.5/10

Charges

8.0/10

Customer Support

7.0/10

Pros

  • Low Charges
  • Robust Strategies
  • Custom Plans Allowed
  • Strong Long Term Returns

Cons

  • Low Short Term Profits
  • TAT Can be Improved

Sundaram PMS started its business in the year 1996 under the leadership of Harsha Viji. It is one of the divisions of Sundaram Alternate Asset Ltd. (SA), and SA is a wholly owned subsidiary of Sundaram Asset Management Company Limited (SAMC).

SAMC has more than 20 years of experience in the field of Fund management and portfolio management services. It is a wholly owned subsidiary of India’s one of the oldest and leading Non-banking Finance Limited (NBFC), Sundaram Finance Limited. It offers investment service to High net-worth Individuals (HNIs).

Sundaram PMS Review

Sundaram PMS, a name of trust for PMS investors, provide help to them in meeting their long-term financial goals.

The fund management team of the company has the highest level of experience and expertise. They have over 3 decades of experience in handling funds of the investors in equity and real estate space.

The strategies created by the company are based on investor needs and their financial goals with their risk appetite. The strategies are built on sound operating models, superior research, new-age industry practices, and transparency.

The company offers a wide range of customer support service to their investors. It offers flexible investment plans as well as commission model according to the convenience of the clients.

In this article, you can find details related to Sundaram PMS. You can get important things like the types of PMS offered by Sundaram PMS, Strategies details, commission models, manager’s details,  investment plans, charges, customer support, Conclusion, and the last FAQs.

Let’s start our discussion with the types of PMS offered by the company:


Sundaram PMS Types

Sundaram PMS offers both types of PMS service to its clients. One is discretionary and another is non-discretionary. The choice of the style of PMS depends on the clients.

Discretionary PMS:

Under Discretionary PMS, the client is not actively involved in the decision making of PMS. The fund manager plays an important role in portfolio management service. The fund manager takes all the decision related to PMS on his behalf.

It is not important for a fund manager to take the client’s consent for each transaction.
Since the portfolio is handled by an expert, it saves the time of investment.

Non-discretionary PMS:

Under non-discretionary PMS, a fund manager plays the role of a broker only. He takes each step of PMS after getting instruction from the client.

The performance of the investment portfolio is the result of the client’s knowledge and experience because a fund manager is not involved in decision making.

Again, in Non-discretionary PMS, there is a lot of waste of time because the decision taken by the client changes much time due to their non-expertise in PMS.


Sundaram PMS Fund Managers

Mr Madangopal Ramu started his career at Sundaram PMS as a research analyst in the year 2010. He became the head of research of the company in the year 2015. He started portfolio management service at Sundaram in the year 2016.

In his leadership of PMS, the company has seen a rapid increase in Asset management.

Madan has worked for the Sundaram AMC as head of equity research, worked with the ‘Sundaram Infrastructure Advantage Fund’ as a joint fund manager.

Equity multiplier fund has been ranked 4 stars by value research and CRISIL has ranked infrastructure advantage fund by 2 stars.

Madan has completed the CFA and Management.


Sundaram PMS Strategies

Sundaram PMS offers three types of basic strategies which are the small-cap strategy, Mid-cap strategy, and Diversified strategy. All strategies offered by the company is according to the customer’s need and financial goals.

Apart from these three strategies, the following are some of the powerful strategies that are also offered by the Sundaram PMS.

  • Sundaram India Secular Opportunities portfolio (SISOP)
  • Sundaram Mid-cap Strategy

Sundaram India Secular Opportunities Portfolio (SISOP):

Objective: The aim of this strategy is to generate capital or capital appreciation during all market cycles by investing funds in a concentrated set of highly profitable and growth stocks.

Target Investors: Sundaram PMS targets those companies under this strategy which have a competitive advantage and has a reasonable valuation based on the fair value analysis of the PMS house. It targets all Caps companies.

Stock selection approach:

  • Quality of business: Brand image, business popularity, profitability, Capital intensity, Growth, pricing power, etc. are some of the quality of a business which is must see before selection of stock.
  • Management: The quality of management is the second criteria to select a stock. It includes a past track record of the company, Corporate governance, and management bandwidth.
  • Financials: The Financials of a company should be of high quality. The Financials like return on capital, cash flow, Leverage, Capital Allocation.

Key Features:

  • The investment portfolio under the strategy is concentrated to 15 stocks.
  • Stocks are selected across the market cap. The strategy takes multi-cap stocks into consideration in which the strategy is skewed towards large-cap strategy.
  • The portfolio is built with the view of long term orientation. The minimum time horizon of the investment is 3 years.
  • The investment portfolio grows more than 1.5x of nominal Gross domestic product (GDP).
  • The strategy has the potential to generate 20% cash flow across the market cycle.
  • Return on equity is more than 20% OR ROE >20%.

Sundaram Mid-cap Strategy:

Objective: The objective of Sundaram Mid-cap Strategy is capital appreciation through investment in mid-Cap stocks.

Target investors: Those investors who are comfortable with long term investment and short term volatility of stocks and want high return by investing in mid-cap stocks.

Stock selection approach:

  • Quality of management of the company like corporate governance and the past track record of the company.
  • The quality of the business is the second thing which is considered for stock selection. Business quality means the complexity of the business, profitability, pricing power, Brand strength and image in the market, Growth etc.
  • The Financials of the company should also be strong enough. It can be confirmed through the cash flow, Return on capital, Capital allocation, Leverage etc.

Key Features:

  • Invest in companies which have mid-cap market strength.
  • The investment portfolio consists of total stocks between 20-30. The portfolio consists of multi-sector stocks.
  • Stocks with less than 500bn market Cap.
  • ‘EASE’ portfolio (Investment philosophy):
    • Companies with Emerging leaders.
    • High ROEC & Asset light.
    • Scalable companies (Small cap to mid-cap, mid-cap to large-cap transitioning companies).
    • Excellent cash flow from the company operation.
  • Select those companies which are in their early stage of growth (Small & mid-cap) and there is a prospect that the company could grow at the large-cap company in the future.
  • The portfolio captures the stock from Consumer goods, services, Media & Entertainment, and BFSI.

Sundaram PMS Performance

Sundaram PMS offers a great rate of return to its clients. The company offers:

  • 11% rate of return for a period of 3 years.
  • For 5 years, the rate of return is 7%.
  • The performance is 9% for the period of 7 years,
  • it is 13% for the period of 10 years and
  • for 11 plus years, the rate of return is 15% CAGR.

Hence, we can see the robust performance of Sundaram PMS as far as portfolio management services returns are concerned.

Here we can see the performance of both the strategies against the benchmark separately since their inception:

The above table clearly shows the Outperformance of the strategies.


Sundaram PMS Investment plans

Sundaram PMS knows the value of a happy client. The company knows that if a company offers an opportunity to start an investment with a minimum amount to the investors, then they can make their client base strong.

Following its own principle, the company offers four different types of investment plans with a different range of investment amount. One is allowed to choose the plan according to their risk-bearing capacity in the equity market and definitely, the most important one is the availability of fund.

Here are the range and name of the investment plan.

  1. Bronze: ₹25L to ₹50L
  2. Silver: ₹50L to ₹1 CR
  3. Gold: ₹1 CR to ₹5 CR
  4. Platinum: ₹5 CR & above

So, the four investment plans offered by Sundaram PMS is Bronze, Silver, Gold, and Platinum. Each plan has a range of investment amount.

The first plan ‘Bronze’ is created for the low net-worth clients who want to enter with a minimum amount and has a low-risk appetite.

The second and third plan i.e Silver and Gold is for moderate risk appetite investors who can invest a bit more than the Bronze investors.

The investment plan ‘Platinum’ is created for the High net-worth clients who have the capacity to invest Rs.5 CR & above in the portfolio investment.


Sundaram PMS Fees Structure

Sundaram PMS offers a flexible commission model to the clients so that they do not feel any pressure of payment from the company side. The client and the fund manager can decide about the type of commission model before starting PMS service.

A fixed percentage of commission is charged against each investment plan or the total profit generated or the total volume of transactions completed by the fund manager.

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

Let’s explain each model one by one.

Prepaid commission model:

If a client agrees to pay commission to the fund manager in advance before getting PMS service actually, it means the client has opted prepaid commission model.

Under this model, the risk factor is very high as the fund manager gets his commission before starting the PMS service. He/she can be liberal while completing his/her task.

The commission is paid on the basis of the total value of the portfolio. A fixed percentage is paid on that basis. Generally, a very low percentage of commission is paid in this model because of a high risk involved in this model.

Volume-based commission model:

This commission model allows the fund manager to charge his/her commission on the basis of the total value of the transactions completed in the portfolio. The fund manager can increase the number of transactions also just to increase the amount of commission.

But, if the fund manager is genuine he will not do this wrong job just for the shake of commission.

A fixed percentage of the total transaction value is charged for each range of transaction value.

Profit-based commission model:

This is one of the best models offered by Sundaram PMS. The model allows the clients to pay the commission only after realization of profit from the investment portfolio. The rule under this model is, ‘No profit, no commission’.

It makes pressure on the fund manager to put his full effort into the portfolio of the client and realize the best possible profit.

A percentage of commission is charged on the basis of the total profit amount. The company has made a range of profit and a fixed percentage of commission on that basis.

Now, the below-mentioned table will show the range and percentage of commission:


Sundaram PMS Charges

Sundaram PMS charges various types of fees from the investors in order to offer them the best class of PMS Service. These charges are management fees, brokerage charge, Upfront charge, depository charge, exit load fee etc.

Management fee: This fee is charged in lieu of management of your investment portfolio. The percentage of the charge depends on the type of commission model opted by an investor.

Upfront charge: This charge is very similar to the prepaid fee charged by the company. Generally, it is charged in the range of 0.9%-1.5% of total asset value.

Brokerage charge: The portfolio manager charges a brokerage fee from the investor for the number of transactions completed by him for the portfolio. The range of charge is 0.009%-0.019% of the value of the total transaction.

Custodian charges: This is charged in between 0.2%-0.3% of the Asset value by the Sundaram PMS.

Depository Charges: The depository charge of Sundaram PMS is between 0.10%-0.15% of the Asset value.

Exit Load Fee: The charge is taken if the client wants to withdraw fund within one year of portfolio creation. It is charged on the basis of the total withdrawn amount. The fee is 0.9%-1.5% of the withdrawn amount.

On the other hand, if a client withdraws the amount after one year of portfolio creation, it may be chargeable. If it will be chargeable, the charge will be 0.4% of the total withdrawal amount. But, it can be free also. It differs from case to case.


Sundaram PMS Customer Care

The customer support provided by a PMS house makes it easy for the clients to associate with them for a long time.

Sundaram PMS offers world-class support to its clients. The kind of support provided by the company is:

  • In order to solve queries, the company provides full support of Email and Whatsapp to their clients.
  • A relationship manager is also appointed by the company to make the relationship strong between the fund manager and the client.
  • Direct call facility is provided to them to call their fund manager. A high net-worth client can call their fund manager from 5 to 7 times in a month.
  • The TAT of Sundaram PMS for issue resolving is 10 working days.

Sundaram PMS Benefits

Following are the benefits of Portfolio management services from Sundaram PMS:

  • The robust performance of the strategies offered by the company since inception. Booth the unique strategies created by Sundaram PMS outperformed the Benchmark. So, one can easily trust the company in order to get a superior return out of the investment portfolio.
  • Sundaram PMS has a group of experts who work day and night for the benefit of clients. They track the performance of the investment portfolio as well as the capital market to make any change if required.
  • The PMS house allows its customers to choose an investment plan and the commission model according to their choice, convenience, and risk appetite.
  • As an Investor of Sundaram PMS, one can enjoy the best customer support from the company. They will get support like Email and direct call to the company.

Sundaram PMS Conclusion

From the above discussion, it is clear that the company offers customized strategies that fit the investment needs of the clients. These strategies have a track record of outperforming their benchmark since inception. The investment plans are also planned according to the financial capacity and risk bearing capacity of investors.

The PMS house has a team of well-experienced and well-qualified research analysts and portfolio managers who works genuinely for the investment objective of clients. The clients can get any type of support related to the investment portfolio to the company.

So, leave your worries of searching a best PMS house and let manage your hard earned money to the team of Sundaram PMS.

In case you are looking to use a promising and reliable portfolio management service for your hard-earned capital, let us assist you in taking the next steps forward:

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Sundaram PMS FAQs

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

Who is one of the best Portfolio managers at Sundaram PMS?

Madangopal Ramu is one of the best Portfolio managers at Sundaram PMS.

What are the strategies used by Sundaram PMS?

Sundaram PMS works on large-cap, diversified, and small-mid cap strategies. Apart from this the two effective strategies created by the company are:

  • Sundaram India Secular Opportunities (SISOP)
  • Sundaram Mid-cap strategy

What is the two benchmark index for the strategies of Sundaram PMS?

The benchmark index is:

  • Sundaram India Secular Opportunities (SISOP) – NSE 500 Index
  • Sundaram Mid-cap strategy- Nifty MidCap Index

Is there any limit on the number of stocks in the investment portfolio?

Yes, the portfolio created under different strategies of the company takes a different number of stocks into consideration. For example:

  • The total number of stocks in SISOP is concentrated to 15 stocks.
  • The total number of stocks under Sundaram Midcap strategy is 20-30 stocks.

What return an investor can expect from the investment portfolio?

Actually, it is very difficult to say about the return from the investment portfolio. There are too many variables available in the capital market which forces the return to change at any point of the investment period.

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