2. WHAT ? WHY ?
PMS- a different investment philosophy for HNIs
Portfolio management services are meant for who
want a Personalized & Professional management of
finances of high net worth individuals or institutions
by a team of expert professionals who conduct
extensive research on markets to provide a
customized solution to achieve special investment
objectives.
Professional Management of Stacks !!
4. YOU HAVE MUTUAL FUNDS…….BUT !!
PMS Mutual Funds
Customisable as per need/requirement of
customer i.e. Customer specific product.
Generic product i.e. has to be invested in
as already present.
Higher returns at “X” risk exposure and in
“N” horizon
Average to high returns at “X” risk
exposure and in “N” horizon
Say of investor No say of investor, all investments at
discretion of fund manager
Min. lump sum mandate of Rs. 25 Lakhs Options like- Lump Sum, SIP, STP, SWP
available
Un- regulated Regulated by SEBI
Costly in terms of service charges and
returns sharing along with ambiguous cost
levy.
Cost efficient
Taxable returns Tax rebate as well exemption, like- ELSS,
LTCG on Equity MF
5. PMS > MFS
-40
-20
0
20
40
60
80
100
120
140
160
180 ICICI Prudential
MPSL- VID
Sundaram
Birla Sunlife Equity
Fund
DSP Blackrock Top
100 Equity Fund
Franklin India Prima
Fund
HDFC Top 200 Fund
IDFC Premier Equity
Fund
ICICI Value Discovery
Kotak Emerging Equity
Reliance Equity
Opportunities Fund
SBI Magnum Bluechip
Fund
7. PHILOSOPHY
What we look for in a our potential investee company
I. Potential to generate superior ROCE over period of time.
II. Increasing Addressable business size.
III. Above average management qualities and bandwidth.
Why Mid Market or Large Cap Turnaround companies
This set of companies offer us time risk rather price risk. Mid
market and large cap turnaround/contrarian companies offer
potential re-rating of earnings and discounting over period of
time. Investment Philosophy
Our Portfolio Holding Period Horizon is between 3-5 years.
Turn around companies are those companies where a sharp,
positive reversal in the performance of the company is
expected.
8. MIND GAME
On the ground team of local investment professionals
I. Ability to screen companies which have the good corporate
governance standards.
II. Thorough understanding of Indian government’s economic
and regulatory policies..
A concentrated portfolio with distinctive holdings
I. Invest with conviction in best ideas ( max ~20 holdings).
II. In-depth fundamental research increases the probability of
success.
Long-term Value oriented investment horizon (three to five
years)
I. Capitalize Capitalize on short-term volatility volatility to
capture capture long-term returns returns.
II. Long-term approach allows us to take a strategic view of the
business.
9. HIGHLIGHT REEL
Equity, Debt and
Cash- 0 to 100%
Holdings- 18 to 25
Maximum
allocation to single
stock- 10-15%
Benchmark Indices-
Nifty 50, BSE
Midcap, BSE Large
Cap etc
Optimum
Asset
Allocation
10. MARKET PLAYERS
Edlewiss Midcap Marvels
ICICI Prudential Value
MSPL- VID Portfolio
Motilal Oswal Flexi Cap Strategy
Sundaram Select Midcap
11. Portfolio Equity
Concentration
(%age)
No. of holdings
Edelwiss Midcap
Marvels
99 6
ICICI Prudential value 94.5 21
MPSL- VID 96 18
Motilal Oswal Flexi
Cap Strategy
98.6 17-20
Sundaram Select
Midcap
97.2 59
17. WHAT’S THE BOTTOM LINE ?
Parameter MPSL-VID BSE Midcap
PER Weighted (x) 14.89 24.4
P/BV Weighted (x) 2.89 2.29
Dividend Yield (%) 1.87 1.42
EV/EBIDTA (x) 8.53 -
Earning Metric MPSL- VID
Revenue growth 12.79
PAT Growth 45.62
Return on Equity 21.79
18. THERE’S NOTHING LIKE FREE LUNCH…YEAH
?
Specifications Details
Minimum Investment 25 Lakhs
Upfront Fees 2% p.a. on AUM
Performance Fees ->Up to 10%- NIL
->Above 10%- Incremental 20%
i.e. if return is 15%, then 20% will
be charged on 5%
Min. suggested horizon 3 Yrs
Exit Charges 2% - <18 months
1.5% - 18-24 months
0.5% - 24- 36 months
Redemption T + 5 Days
19. Disclaimer: The purpose of the presentation is to provide essential information about
the/portfolio management services, as a part of my internship under MBA Programme with
master Trust Ltd, aimed to assist and enable the prospects in making informed decisions for
engaging a Portfolio Manager. The presentation is for informational purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy the securities or other
investments mentioned in it. I do not represent that any information, including any third party
information, is accurate or complete and it should not be relied upon without proper investigation
on the part of the investor/s. Investments in securities/equity related instruments are subject to
market risk. These risks could be security specific or market specific and arising from company,
industry, political, economic (both domestic and global), etc, factors. Past performance of
chosen portfolio ( at random) does not indicate the future performance of any current or future
strategy or portfolio and actual returns of the portfolio may differ significantly from that depicted
herein due to various factors including but not limited to impact costs, expense charged, timing
of entry/exit, timing of additional flows/redemptions, individual client mandates, specific portfolio
construction characteristics etc. There is no assurance or guarantee that the objectives of any
strategy or portfolio advised will be achieved. I do not assure/give guarantee for any return on
the investment in strategies/securities given by the Investor or under any portfolios to be offered
under any Discretionary or Non-discretionary services. Portfolio value of investment in the
portfolio can go up/down depending on factors & forces affecting securities markets. I am not
liable or responsible for any loss or shortfall arising from operations and affected by the market
condition. Securities investment is subject to market risks and there is no representation,
assurance or guarantee that objective of any of the portfolio under the Portfolio Management
Service (PMS) will be achieved. The necessary information about the Portfolio Manager required
by an investor before investing is disclosed in the Disclosure Document. The investor should
carefully read all disclosure documents before investing and shall not make me liable for any
risks/losses pertaining to any product/portfolio time to time.
20. CONTACT INFO:
Name: Aayush Jain
Mentor: Mr. Anil Kumar Garg
AVP, Business Development
Master Trust Ltd.
Ludhiana, 141001
Mobile: +91- 9855059750
Email : aayushjain530@gmail.com