Portfolio Management Schemes – PL Selection Shines!

The Month of August 2019 was special for the Rs 1.2 Lakh Crore Indian PMS industry- There was a sudden spike in returns towards the end of the month which was in excess of the Nifty return as well as most mutual funds.  Then came September 2019, where almost 98% of the PMS delivered 17% plus – again far in excess of benchmarks and most MF schemes. This brings to fore the value of a PMS fund manager – with a focussed approach around 20-30 stocks, the fund manager can deliver substantial returns in the right market conditions and make up for what she couldnt do earlier!


Around 140,000 Indian investors have invested about Rs 120,000 crore in 200-plus PMS schemes available today. This is almost the same as the corpus of the mid and small cap mutual funds- and shows the evolving maturity of the industry.

PMSS offer a much more focused approach towards investing in stocks versus mutual funds which may at times be just about index performers.Studies globally and even in the Indian context show that an average mutual fund finds it very difficult to outperform broad markets due to their diversification and  indexing approach – unlike a PMS where the more sophisticated fund managers adopt a very focused approach which can lead to outperformance. The last one year bears testimony to that – While quite a few Multicap PMS schemes have delivered upwards of 20% to investors, the average Multicap Mutual Fund delivered just about 11% while the S&P BSE rose 12.5%.

In a PMS, your portfolio can be tailored to suit your financial needs and goals. Plus you own individual securities whereas in mutual funds, clients own units of the fund.

However, unlike a mutual fund where you can even start with a small amount like Rs 1000, the minimum investment amount in a PMS is Rs25 lakh (WIll be increased to Rs 50 lakh shortly).

Whats more , in a PMS, you can share a negative list of securities that you dont  want your fund manager to invest in. The arrangement in PMS is a one-on-one interaction between the portfolio manager and the investor. PMS houses also organise a detailed capital gains statement as well as audited tax statements to their investors at the end of the year which further simplifies the process of investing.

Like a mutual fund, however, investors should take care in investing into PMS schemes which have a clear mandate – Most PMS’ have  their capitalisation bias, sector weightages and stock investing rationale clearly spelt out which allows for easier decision making and allocating capital according to risk appetite.

In terms of nature of investment,


is more concentrated than a mutual fund – which creates the risk as well as the return.

There are typically three components of fees in PMS:

a) An upfront or setup fee paid during initial investment,

b) management fee which is a fixed fee paid for managing the portfolio and

c) performance fees which is paid to manager as a share of profits generated above a minimum benchmark/watermark.

The average range of the fee is similar to mutual funds (which is capped at 2.25% by SEBI).


Portfolio managers

also charge exit load at the time of investment exit.

However, unlike MFs, your PMS fees can be customised. Note also that the tax liability as a PMS investor would remain the same as if you were investing into the capital markets directly.

PL  – Our Approach to PMS

Prabhudas Lilladher offers its investors an “Open Architecture” to select from some of the best PMS schemes available in the country.

While we do have our own inhouse PMS schemes, managed by one of the most well known  and respected fund managers in the country (Ajay Bodke), we also have a research desk which does extensive due diligence and selects from some of the best PMS’ in the country.  This desk analyses the fund manager pedigree, service standards, past performance and present portfolios before recommending these to our investors. We keep the list limited to 6-7 schemes only to ensure our investors get to select from the very best!

The past years performance of all our selected PMS schemes bears testimony to our quality of research – Most of our selected schemes outperformed the indices as well as mutual funds very comfortably!

AMBIT COFEE CAN 6-Mar-17 Manish Jain Largecap Rs 396 Crs 27.80% 23.10%
MOSL NTDOP 11-Dec-07 Manish Sonthalia Multicap Rs 9300 Crs 8.22% 1.39%
MOSL VALUE 24-Mar-03 Shyrey Loonker/Susmit Patodia Largecap Rs 2265 Crs 24.82% 5.57%
ASK INDIA ENTREPRENEUR 25-Jan-10 Sumit Jain Multicap Rs 10,262 Crs 19.40% 9.30%
IIFL MULTICAP Dec 1,2014 Aniruddha Sarkar Multicap 27.27% 12.73%
AXIS BRAND EQUITY Jan 27,2017 Tridip Bhattacharya Multicap Rs 1141 Cr 22.70% 9.80%
ALCHEMY HIGH GROWTH May 8,2008 Amit Nadekar Multicap Rs 2698 Cr 8.50% 1.40%
PL MULTISTRATEGY Aug 19 2013 Ajay Bodke Multicap Rs 102 Crs 18.1% -3.40%
PL EQUIGROW Aug 19 2013 Ajay Bodke Multicap Rs 16.8 Cr 20.80% 0.90%
Source: PMS Bazaar Nov 2019

How to Invest in PMS with PL

Our Investment and Third Party Products Head, Mr Piyush Nagda (Email us at wms@plindia.com) and his team would  be more than pleased to be of assistance to you in deciding whether these schemes make sense to your portfolio after understanding your risk appetite, investment horizon  and current portfolio.

Alternatively, you may contact any of our national network of 700 offices across the nation to gain access to literature on these products or to ask for visitations by PMS teams.

For any other information on our products or services, do please mail us at info@plindia.com or visit us at www.plindia.com.

Read more about PMS schemes at https://www.plindia.com/blog/?s=pms



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