Portfolio Management Services | NRI investments/investors

NRIs today have a lot of options in India to park their surpluses and create wealth over longer term. NRIs should keeping few things in mind before investing – the objective of investments

Best PMS Service Provider 2019

When it comes to choosing an asset class or an investment category which can do best in the long term, it is “Equity”. Within equity, Portfolio Management Schemes are the perfect choice for sophisticated investors to make long-term lump-sum allocations as it brings professional management with largely “buy and hold” strategy.

 

Wealth creation is a Marathon and not a Sprint. Holding on with conviction to stay invested in good investments creates wealth over a long period of time.

Here is the list of Top 5 Wealth Creators in the Portfolio Management Service industry which have delivered more than 2.5x return in the last 5 years –

 

  • MotilalOswal Next Trillion-Dollar Opportunities (NTDOP)

 

Below are some of the facts about this strategy:

 

Portfolio Type – “Multi-Cap Portfolio of Best Companies from Sectors that stand to contribute most to the Next Trillion GDP Growth”

 

Fund Manager Name – Mr. Manish Sonthalia

Investment Strategy – Investment philosophy is centred on BUY RIGHT: SIT TIGHT principle.

Buy Right is represented by – (QLGP)
“Q” denotes the quality of the business and management
“G” denotes growth in earnings and sustained RoE
“L” denotes longevity of the competitive advantage or economic moat of the business
“P” denotes our approach of buying a good business for a fair price rather than buying a fair business for a good price

Sit Tight
Buy and Hold: Strictly buy and hold and believe that picking the right business needs skill and holding onto these businesses to enable investors to benefit from the entire growth cycle needs even more skill.
Focus: High conviction portfolios with 25 to 30 stocks being our ideal number. We believe in adequate diversification but over-diversification results in diluting returns and add market risk.

 

NTDOP Portfolio Management Service of MotilalOswal invests in companies which are likely to earn 20-25 % on its net worth going forward. MotilalOswal PMS invests with margin of safety and purchases a piece of great business at a fraction of its true value. MotilalNTDOP stands for Next Trillion Dollar GDP growth. So, the focus is on buying companies that will benefit out of the Next Trillion Dollar GDP growth. MotilalOswal identifies potential long-term wealth creators by focusing on individual companies and their management. It strongly believes that “Money is made by investing for the long term”. It follows a Focused portfolio strategy and the portfolio consists of up to 25 stocks. In his words of Mr. Manish Sonthalia, Head of PMS, at MotilalOswal Asset Management during latest Webinar organised by PMS AIF WORLD on 13th Sep, 2019, Motilal Next Trillion Dollar Opportunities Portfolio (MotilalNTDOP) is a stable portfolio of unleveraged businesses. Mr. Manish Sonthalia, mentioned, “Our philosophy is to play on operating leverage”. Portfolio comprises of good businesses. We have held most companies for many years and have seen ups and downs in the past as well. These companies have delivered in long term. We continue to hold as there is a conviction. Businesses do not travel in a straight line; one has to take a long-term view. Buying decent businesses and holding on to them for long term is what we believe in. It’s more about longevity of growth; the terminal value of business and not 1 or 2 years of growth. Expected earnings growth of companies in MotilalNTDOP PMS can be seen in the vicinity of 18-20%.

 

 

2) Kotak Special Situations Value

 

Below are some of the facts about this strategy:

 

Portfolio Type – Portfolio is a Mix of Value Opportunities and Special Situations

 

Fund Manager Name – AnshulSaigal

Investment Philosophy/Strategy:-

 

Corporate Special Situations 
Investment operations whose results are dependent on happening or not-happening of one or more corporate events rather than market events/moves

 

  1. Price related –Securities bought at a discount to (expected) price guarantees by a buyer in the form of de-listings, buy-backs, open offers, etc.
  2. Merger-related – Shares can be created at a discount to current market price
  3. Corporate restructurings-Value unlocking due to corporate restructuring, assets sales, demergers, business triggers, etc.