Fidelity PMS

Fidelity PMS is one of the oldest and most popular portfolio management brands in the market. Its years of experience helps the client to get an attractive return through various customized investment strategies.

These portfolio management services are generally targeted towards high net worth individuals.

Let’s find out how this may work for you.

Fidelity PMS Review

Fidelity PMS  comes under the name of one of the largest portfolio managers in the world. The company has more than 30 years of experience in its field and provides help to the clients in reaching their goals.

Fidelity offers a wide range of portfolio management services to its clients to meet their financial needs and goals.

The experts of the company always suggest the best strategy to the clients based on their goals, time horizon, and risk tolerance capacity.

Also, read Why do I need a Portfolio?

The company implies several techniques to reduce the tax impact on the account of clients. It looks after the day to day management of a client’s investment portfolio.

Fidelity PMS has a strong team of 100 professionals who work day and night for the profit of clients. 

Fidelity provides the best portfolio management services to its clients. All professionals are specialized in different areas with the focus on profit maximization with research, management, and trading.

The company focuses on deep fundamental and quantitative techniques for the selection of hundreds of stocks to add to the portfolio by analyzing risk and potential return.

The portfolio manager of Fidelity PMS  allows you to invest with them with a minimum investment of ₹50,000 in PMS registration.

The portfolio manager adjusts your investment strategies for lowering the PMS investment risk according to the current market situation which can offer a good return to you.

Fidelity PMS Overview

 

Now, we are going to discuss the details of Fidelity PMS.

We will try to cover all important points related to the PMS services offered by the portfolio manager like the types of PMS, Managers’ detail, strategies, performance, investment plans, commission models, customer support, conclusion, and FAQs.

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Fidelity PMS Types

Fidelity PMS offers three PMS types to their clients. These services are as follows

• Discretionary PMS
• Non-discretionary PMS
• Advisory PMS

1. DISCRETIONARY PMS

In discretionary PMS, a portfolio manager handles the investment portfolio of a client.  The portfolio manager takes his own decision related to the portfolio.

He can add any scrip he thinks is good for a better return out of the portfolio based on the market situation. A client is informed by the company from time to time about the portfolio and its performance.

The experience and the expertise of a portfolio manager come in the form of better performance of the investment portfolio of the client.

2. NON-DISCRETIONARY PMS

In non-discretionary PMS, a client takes the whole responsibility of portfolio management. He takes his own decision based on his knowledge and experience. The portfolio manager just plays the role of a trader.

If required, a client can take the suggestion of the portfolio manager also. But the final decision is always taken by the client.

3. ADVISORY SERVICE

Under this service, the portfolio manager offers only advisory services to clients related to portfolio investment. The service is offered to those clients who want to take personalized portfolio service as per their unique goals and financial situation.

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Fidelity PMS Managers

As a stock market player, you will have the idea of how important a portfolio manager is for the reputation of a portfolio management company.

Fidelity is also a very popular PMS company among other PMS companies and the experts of the company plays a vital role in this.

Here we are going to discuss the best investment manager at Fidelity PMS.

Amit Goel

Mr. Amit Goel has more than 13 years of experience at Fidelity. He has been working as a portfolio manager for the last 5 years.

He also has good experience as an investment analyst and research specialist. He has completed MBA in Finance from Delhi University.

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Fidelity PMS Strategies

Fidelity PMS offers multiple strategies to the clients to help them to achieve their investment goals. It depends on the client which investment approach they choose.

Generally, the portfolio manager suggests a mix of investments to the clients considering their investment goals, time horizon, and their risk tolerance.

If you select an investment approach to maximize your growth potential for a certain level of risk, all PMS strategies or we can say maximum strategies are available for you.

On the other hand, if you select an investment approach to mitigate the volatility of the stock market up to the maximum extent, you will be offered some selected strategy. 

Each strategy offered by the portfolio manager has a different level of risk-return profile.

The higher the capacity of a client to bear the risk, the higher will be the investment return. In other words, the difference between the positive and negative returns increases as risk increases.

INVESTMENT STRATEGY

Normally, a Fidelity Portfolio manager focuses on providing benefits to those investors who want a long-term investment return and are ready to bear a high risk for their investment portfolio.

The service offered by the company best suits high net-worth clients.

Like most investment firms, the company also provides customized investment strategies after going through various questions and discussions with a client. Based on the answers given by a client, the company comes to the conclusion that which strategy is best for the client.

1. LARGE-CAP INVESTMENT STRATEGY

Under this investment strategy, the company invests the money of clients in large-cap stocks.

As the risk associated with large-cap stocks is less than small-cap and mid-cap stocks. These stocks are well-established in the market and the chances of failure are almost Nil. So, based on the investment time horizon and financial capacity of a client, a large-cap strategy has opted.

2. MID-CAP STRATEGY

Under this strategy, investment is made in those stocks which are mid-cap. These companies are in the middle of their business life cycle and cross the very early stage i.e. the stage that is very risky for a business and there is a possibility of failure.

So, based on the time horizon and investment goal of a client, the portfolio manager suggests they invest in mid-cap stocks also.

3. SMALL-CAP STRATEGY

This strategy is best for those clients who are ready to take higher risks for the higher return in the portfolio management service. To invest in this strategy a client must have patience as well as an appetite to bear the risk.

A small-cap company is mostly a new entrant in the market and they still wait to get success.

The possibility of success and failure is high. But, the chances of growth are very high as they are just an entrant and their business plan can offer them higher success in the long run so the investors can also earn higher.

So, we can say that Fidelity PMS has almost all types of strategies that suit the different categories of clients. The portfolio manager just modifies its strategies based on the requirement of investors.

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Fidelity PMS Returns

The performance of the Fidelity portfolio management service is excellent.

However, here we are going to discuss the return from a single portfolio strategy of the company as it is not possible to discuss all strategies performances because of various and customized strategies offered by the company.

The fund’s name is ‘Fidelity India Fund’. This fund is managed by the portfolio manager ‘Amit Goel’.

Here we can see the return from the Fidelity PMS since its inception. 

• The fund performed for the first is 13.83% against the benchmark 12.36%. The Fidelity PMS return percentage is 1.47%.
• The performance of the fund for the 3rd year on the annual basis is 11.97% and the return against the benchmark is 0.86%.
• The return of Fidelity PMS for the 5th year is 3.05%.
• It is 3.19% for the 7th year and 3.46% for 10 years.
• If we look for the performance of the Fidelity PMS  since its inception, it is 1.44%.

This is just an example of the performance of the company. Based on past performance, it will be wrong to predict the future performance of the fund. However, Fidelity PMS  is not a bad performer yet.

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Fidelity PMS Investment Plans

Every portfolio management company creates some investment plans for the convenience of its clients. The Fidelity PMS  investment plans have different ranges of investment amounts under different categories of investment.

The following are the names and ranges of investment plans offered by the company:

• Bronze
• Silver
• Gold
• Platinum

1. Bronze

This is the first Fidelity PMS investment plan which has a minimum investment amount range. The plan best fits those investors who don’t want to take too much risk in the portfolio management service and so want to invest a minimum amount.

2. Silver

The range of investment under the Fidelity PMS investment plan ‘Silver’ is higher than the first plan. The investors who want to invest more than the minimum required investment amount of PMS can opt for this plan. The investors hold a moderately high risk-bearing capacity.

3. Gold

The third investment plan offered by Fidelity  PMS is ‘Gold’. The investors under this plan are neither the low profile nor the high net worth clients. They are generally ready to invest above $1,00,000 for getting a good return.

4. Platinum

This is the last plan offered by the company. The plan best fits the high net-worth clients who are ready to take a higher risk to get a good return. They are ready to invest for a long period as they are normally not in urgent need of funds.

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Fidelity PMS Commission Model

Fidelity PMS offers three basic commission models through which a client can pay commission/fee to the portfolio manager. These models are:

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

1. PREPAID COMMISSION MODEL

If a client wants to pay a commission for the service he/she got from the company under a prepaid commission model, he will be asked to pay a commission before starting the portfolio management service. The percentage of PMS commission is based on the total worth of the investment portfolio.

Before starting the portfolio service, it is decided by both the parties at what percentage the commission will be paid.

The percentage of commission decreases with the increase in the total asset value of the portfolio.

2. VOLUME-BASED COMMISSION MODEL

The second method of commission model is ‘Volume-based’. In this model, the commission is charged on the basis of the total volume of the transaction completed by the company for a client within a financial year. On the basis of that volume, a certain percentage of commission is charged.

Here, the genuineness of a portfolio manager is very important because if he/she wants can increase the volume of the portfolio transactions without doing any profitable trade.

So, the higher the volume of transactions will, the higher the commission will be.

3. PROFIT-BASED COMMISSION MODEL

This commission model is one of the favourite models of investors.

As in this model, the certainty of earning of profit is fixed up to a maximum extent because the portfolio managers are not allowed to charge any commission without profit.

One of the best things about this model is that a portfolio manager puts his/her full effort for realizing the profit as they know well that no profit means no commission.

Generally, the percentage of the commission charged in this model is higher than the rest two commission models because of its certainty of profit realization.

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Fidelity PMS Charges

Like most portfolio management companies, PMS Charges in India vary from broker to broker. Fidelity PMS also charges different fees against the portfolio management service offered by them.

The following are the charges:

Gross advisory fee: This fee is charged for the advice given by the portfolio manager to the client for portfolio management. The range of charge is between 0.50%-1.50% based on the value of assets a client invests.

Exit load fee: This fee is charged on the amount withdrawn by the client before the completion of one year of portfolio creation. The range of exit load fees is 1.2%-1.7% of the total withdrawal amount.

If the amount will be withdrawn after one year, there will be no charge on the same.

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Fidelity PMS Benefits

As a client of the Fidelity portfolio manager, you will get the following PMS benefits. Here in this section, we are going to 

• Personalization: You will get a personalized investment management solution. The Fidelity PMS offers multiple investment strategies that are personalized around an investor’s investment preference.
• Investment strategies: The Fidelity PMS has a team of investment experts who manages the account of investors through a disciplined investment process that is ultimately supported by a team of researchers.
• Tax-sensitive investment management: The portfolio manager offers a personalized approach to help the investors improve after-tax returns.
• Monitor & Rebalance: Daily monitoring and rebalancing of the investment portfolio help an investor to achieve their goal.
• Ongoing support: Various types of support are provided by the company to the investor like exclusive communication facility, strategic review, and Access to an advisor.
• Flexible investment plan and commission model: The portfolio manager of Fidelity PMS offers a flexible investment plan to the customers of all categories and the commission model is also flexible that any client can pay commission as per their convenience.

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Fidelity PMS Customer Support

The customer support offered by Fidelity PMS  portfolio manager is very helpful for investors.

The company provides an investment advisor to each investor so that they can easily solve their investment-related queries. Apart from this, an investor can also ask any question related to their portfolio through Email and SMS.

One can directly call the portfolio manager also in case he/she is not satisfied with the answer of SMS and Email. The number of the call depends on the total asset value of the portfolio.

Fidelity client services are pretty good and the TAT to solve any problem of investors is approximately 7-10 working days.

In case you are looking to start portfolio management services and need one of the best PMS services in India as a promising solution, you can get started by providing some basic details below:

 

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Conclusion

From the above discussion, we can conclude that Fidelity PMS is one of the best portfolio managers and a good option for portfolio investors. It focuses on personalized investment strategies and customer support.

The one important aspect of the company is that it emphasizes on tax-sensitive investment management.

The investment plan and the commission models are created by keeping the requirement and convenience of investors in view.

Overall, the company looks good to keep it in the list of the best portfolio managers, if you are the one who is looking for personalized portfolio management service.

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Fidelity PMS FAQs

Here are some of the frequently asked questions about Fidelity PMS:

1. The service offered by Fidelity PMS is best for whom?

The PMS service offered by the portfolio manager is best for those investors who want a personalized Portfolio management service with the view of long-term.

2. What kind of investment is made by the Fidelity PMS?

The investment is made in the diversified mix of Mutual funds, ETPs depending on the investor’s preference.

3. Can an investor change the investment strategy?

Yes, if an investor thinks that his/her financial goals or situations have changed can approach the company at any time.

4. What is the minimum investment amount with Fidelity PMS?

If you wish to open a portfolio management account with the company, you need to invest a minimum of $50,000.

Willing to open a Demat Account? Please refer to the below form: