Top Portfolio Management Services in India

Top 8 Portfolio Management Services in India

A portfolio management service (PMS) is a type of investment service that allows investors to entrust their money to a professional manager who will invest it on their behalf. PMS providers typically have a team of experienced investment professionals. These professionals use their expertise to select and manage a portfolio that could constitute stocks, bonds, and other assets. The Securities and Exchange Board of India (SEBI) licenses and regulates PMS providers in India. The minimum investment amount to become a PMS investor is INR 50,00,000. The fee structure can be a fixed percentage, a fee based on returns generated, or a combination of both.

Here are a few of the best portfolio management services in India:

Wealth Managers (India) Private Limited

Wealth Managers established the PMS business with a vision to implement diligently researched customized investment strategies which help investors meet their long-term financial goals in a risk appropriate manner. The company offers a bouquet of distinctly different portfolio options. A few of their strategies include: 

• Focused Leadership Portfolio for those who wish to own a Concentrated portfolio of Current and Emerging leaders with proven track record

• Optimiser Strategy which is a unique rule-based portfolio of Equity shares selected based on Momentum factor for those who wish to have style diversification in their portfolio.

• Select Direct Portfolio which is a discretionary portfolio of Direct Plans of Mutual Funds curated with a fundamentally driven process honed over many market cycles for those who wish to measure advisors alpha and then pay a fee.

The PMS offerings by wealth managers can be structured either as Non-Discretionary or Discretionary portfolio with a flexibility of fee structure in form fixed or variable plus fixed or only variable to suit customer requirements. You can get additional details by reaching them here!

Capital Mind Portfolio Management Services

Capital Mind takes a disciplined and data-driven approach to investing. It is tailored to investors’ needs and adapts to changing market conditions. The investment strategies cover the entire spectrum, from passive to semi-passive to active equity strategies. Capital Mind’s portfolio strategies include momentum, long-term multi cap, market index, low volatility, and strategic debt. Capital Mind charges a fixed fee on the investor’s account value. This fee is calculated based on daily AUM and charged at the end of each quarter.

Banyan Tree Portfolio Management Services

Banyan Tree Advisors focus on preserving capital, beating the risk-free rate of return and beating the equity index rate of return. The company achieves its objectives by investing for the long term in high-quality companies at prices that are at a reasonable discount to their intrinsic value. High-quality companies are the ones with a track record of weathering difficult economic conditions. This limits the company-specific risk. Next, buying stocks when they are at a discount to the underlying business value so that we always have a margin of safety. This reduces the price risk across investments.

360 One Wealth (erstwhile IIFL Wealth)

IIFL Wealth, now known as 360 ONE Wealth, leverages a product-centric approach and expertise across asset classes and products. The company’s pillars are Rigorous Research (research expertise span across macroeconomics, sectoral research and industry-specific equity research across Indian, emerging and global markets.), Pioneering Products (a pioneer in product innovations) and Preferential Access (first-mover advantage to unique, value-added investment products ahead of the market). IIFL One’s portfolio management approach focuses on professional advice, scientific deployment process and institutional grade review. 

Motilal Oswal Portfolio Management Services

Motilal Oswal offers a range of products and services, such as broking, asset management, wealth management, investment banking and private equity. MotilalOswal offers various PMS strategies across equity and debt segments such as Next Trillion Dollar Opportunity (NTDO), Value Strategy, Business Opportunities Strategy, IOP v2.0 Strategy etc. The PMS philosophy is based on its QGLP framework, which stands for Quality, Growth, Longevity and Price. Motilal Oswal’s PMS aim to invest in quality businesses with sustainable growth potential at reasonable valuations.

ASK Investment Managers

ASK Investment Managers is one of the oldest PMS providers in India. With over 20 years of experience in managing wealth for HNIs and UHNIs. PMS strategies include India Select, Emerging Opportunities Portfolio (EOP), India Entrepreneur Portfolio (IEP), India Realty Portfolio (IRP) etc. ASK Investment Managers’ PMS philosophy is based on the following key investment attributes size opportunity, quality of business, earnings growth and value. It aim to invest in consistent compounders with a high return on capital employed and strong earnings growth.

Alchemy Capital Management (ACM)

Alchemy Capital Management is a boutique investment management firm co-founded by Hiren Ved, Lashit Sanghvi, Late Rakesh Jhunjhunwala and Ashwin Kedia in 1999. The company’s PMS strategies include High Growth Portfolio (HGP), Ascent, Leaders Portfolio (LP), Value Plus Portfolio (VPP) etc. Its philosophy is based on Bottom-Up stock selection whereby companies can perform and realize their full potential irrespective of industry conditions. The PMS aim to invest in high-growth companies with strong competitive advantages and reasonable valuations.

Kotak Mahindra Asset Management

Kotak Mahindra Asset Management is one of the leading asset management companies in India. It has over 25 years of experience in managing mutual funds and PMS. The PMS strategies include Small and Midcap, Pharma and Healthcare Portfolio, Fincare, and Focused Investment Approach. The PMS philosophy is based on management quality, growing market opportunity, return on invested capital, strong financials and earnings growth, and fair valuations. It aims to invest in companies with sustainable business models that can scale up with high return on capital employed and trustworthy management.

ICICI Prudential Asset Management

ICICI Prudential Asset Management is one of the largest asset management companies in India. It has over 28 years of experience in managing mutual funds and PMS. The PMS strategies include Core Strategies, Contra Strategy, Flexicap Strategy, Largecap Strategy, Value Strategy, Thematic Strategies, PIPE Strategy, and Wellness Strategy. ICICI Prudential Asset Management’s PMS philosophy is based on the Business, Management and Valuation framework. The company aims to identify resilient companies with the potential for long-term growth and competent management at reasonable valuations.

Things to Consider Before Choosing a PMS

The following are the factors to consider before choosing the Best PMS provider in India:

Investment Philosophy and Approach

Understanding the investment philosophy and approach of the PMS provider is vital. Evaluate their investment style, risk management practices, and the suitability of their strategies for your investment goals. Determine whether they follow an active or passive investment approach and whether they focus on specific sectors, themes, or market segments. Ensure that their philosophy aligns with your own investment preferences and risk tolerance levels.

Expertise and Team

The expertise and experience of the portfolio management team are critical factors to consider. Assess the qualifications, certifications, and experience of the fund managers responsible for managing your portfolio. A strong and knowledgeable team with a proven track record enhances the likelihood of achieving your investment objectives. Look for a diversified team with expertise in various asset classes. This enables them to adapt to market dynamics and seize investment opportunities across different sectors.

Track Record and Performance

Assessing the track record and performance history of a PMS provider is crucial. Review their historical performance across different market cycles and compare it to relevant benchmarks. Look for consistency in delivering returns and examine the risk-adjusted performance. This analysis will give you insights into the provider’s ability to generate favorable investment outcomes over time.

Transparency and Reporting

Transparency and regular reporting are elements of a trustworthy PMS provider. Evaluate the provider’s reporting practices and the level of transparency they offer. A reliable PMS provider should provide comprehensive reports on portfolio performance, asset allocation, transactions, and any changes made to the portfolio. Access to real-time information and periodic updates enables you to monitor the progress of your investments effectively.

Fees and Charges

Compare the fee structure and charges levied by different PMS providers. It is important to understand the fee components, such as management fees, performance-based fees, and other charges, to assess the cost-effectiveness of the service. Consider the impact of fees on your investment returns and evaluate whether the fees are justified based on the provider’s performance, expertise, and value-added services.

Client Servicing and Communication

The quality of client servicing and communication is an important consideration. Evaluate the provider’s responsiveness, accessibility, and availability for queries or concerns. A reliable PMS provider should have a dedicated relationship manager or client servicing team to address your needs promptly. Clear communication channels and regular updates on portfolio performance help you stay informed and make better decisions.

Risk Management Practices

Evaluate the risk management practices employed by the PMS provider. Understand their approach to risk assessment, diversification, and mitigation strategies. Robust risk management frameworks ensure that your portfolio is protected against adverse market conditions and potential downside risks. Discuss risk management practices with the provider and assess their ability to manage risk effectively while aiming for attractive returns.

Regulatory Compliance

Ensure that the PMS provider complies with all regulatory requirements. It should operates within the framework set by the Securities and Exchange Board of India (SEBI). Verify their registration and licenses with SEBI as a PMS provider. Compliance with regulations provides an additional layer of assurance regarding the provider’s credibility and adherence to industry standards.

Why Choose a PMS Provider?

There are many reasons why investors might choose to use a PMS. Some of the most common reasons why you should invest in best portfolio management services:

• Lack of time: Many investors simply don’t have the time to research and manage their own investments. A PMS can provide a convenient way to get professional investment management.
• Lack of expertise: If you manage your own investments, you may not have the expertise to do it. A PMS can provide access to experienced investment professionals who can help you make better investment decisions.
• Diversification: A PMS can help you diversify your portfolio, which can reduce your investment risks.

Choosing a PMS provider is an important decision. By considering all of the factors mentioned above, you will be able to choose a better portfolio manager.