Basant Maheshwari PMS

Learning a variety of information about PMS (portfolio management services) is a must before you avail of these services. Thus, understanding various aspects of PMS companies is necessary. Basant Maheshwari PMS is one of the best PMS services in India.

It is because it offers a superior portfolio management service to its clients who are looking to invest in different financial products. The investment strategy of the company is created based on the need analysis of investors.

So, let’s dive in!

Basant Maheshwari PMS Review

Basant Maheshwari Wealth Advisors was established on 30th July 2015 and registered under SEBI. The company offers portfolio management services and Advisory services to clients.

Basant Maheshwari PMS focuses on investing in those companies which have consistent and predictable earnings. It means those companies which have a record of generating more than average growth of earnings over a long period of time.

How To Start Portfolio Management Services In India?– The PMS service offered by the company is under the complete need analysis of an investor. The portfolio is created in such a way that it meets the risk appetite and the investment goal of the investor.

The company runs its PMS business on an investment philosophy created by them which is based on a certain base that helps to select the Basant Maheshwari PMS stocks.

The stock is selected based on the consistent earnings, growth, scalable businesses, ROE, management, Dividend payout, Cash flow, and small companies.

The PMS firm makes an investment in three strategies which are small-cap, mid-cap, and large-cap strategies. Basically, the meaning of PMS is simple. It helps you to earn money and reduce the risk by diversifying the portfolio.

Basant Maheshwari PMS offers PMS service through the expert professionals associated with the company. These experts are fund managers and research analysts who work hard with their years of experience in the investment portfolio management of clients.

In this PMS article, we will try to throw light on each and every important aspect of Basant Maheshwari PMS. We will cover the points like PMS Details, types of PMS, Manager’s details, commission model, investment plan, charges, benefits, customer support, etc.

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Basant Maheshwari PMS Types

Basant Maheshwari PMS offers three types of services to clients.

• Discretionary Portfolio Management Service
• Non-Discretionary Portfolio Management Service
• Advisory Service

1. Discretionary PMS

Under Discretionary portfolio management service, the portfolio manager shall have full discretion to add or remove any investment of securities or to make an investment decision on behalf of a client as per the agreement between the two.

The decision taken by the portfolio manager is full and final and cannot be opened in question under any circumstances. It is questionable only on the ground of fraud, gross, intent, negligence, etc. by the portfolio manager.

The responsibility under this service may include reshuffling of securities, safe custody and monitoring of portfolio, managing books, rights, and dividends so that the benefits can be credited to the investor’s portfolio.

The portfolio of one client may differ from another client in the same scheme depending on the portfolio manager’s sole discretion.

   2. Non-Discretionary PMS

Under the non-discretionary portfolio management services, the portfolio manager shall have no discretion to add or remove the security brought in by the client as per the agreement.

The responsibility under this PMS type is to research the market data and suggest the best options to the clients. The acceptance or rejection of these investments is at the client’s discretion.

The fund manager has no authority whatsoever to decide on behalf of the client.

   3. Advisory services

The advisory services include giving advice on the portfolio strategy, sector-wise allocation of the portfolio, investment and divestment of a particular security on the client’s portfolio.

The portfolio manager acts as an advisor to the client. He will not be responsible for any loss if it arises from the investment portfolio of the client.

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Basant Maheshwari PMS Fund Managers

The professionals of Basant Maheshwari PMS help the investors to achieve their financial objectives while minimizing risk.

The most knowledgeable and experienced professional of the company is Mr Basant Maheshwari. Let’s have a quick look at his profile.

Basant Maheshwari (Co-founder & Partner)

Basant Maheshwari is the Co-founder & partner of the company Basant Maheshwari PMS. He has also done Equity research & Analysis course from ICFAI. He is a commerce graduate and a Cost Accountant.

Basant Maheshwari Portfolio is very popular among Indian investors. The founder has also gained experience with TV 18, Pantaloons Retail, Titan Industries, Gruh Finance. 

Mr Basant found the online portal Equity Desk where investors can discuss queries related to investing. This portal is popularly known as the Basant Maheshwari PMS website.

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Basant Maheshwari PMS Strategy Details

Investment Objective

The investment objective of the Basant Maheshwari PMS portfolio is a capital appreciation by investing in medium to long term perspective equities.

The portfolio manager creates a portfolio that is the market capitalization and benchmark agnostic strategy. There is the flexibility of investment across the market cap. (i.e. large-cap, mid-cap, and small-cap) and across the sector/industry.

The company makes the investment of funds in the stock market listed Indian equities. There are some basic criteria of stock selection for the investment portfolio.

Investment Philosophy

• Companies with consistent and predictable revenue earnings. The focus of the strategy is to select the next big trend.
• Those companies which have scalable business means there must be growth in terms of both value and volume of the products and services of the company.
• Try to pick a growth stock that comes under the category of a winning stock.
• Return on Equity (ROE) is also an important factor while selecting a stock for the portfolio. High ROE is a good indicator of the self-sustaining capacity and efficiency of a business.
• The role of management of the company plays an important role. As they do their best to provide a good return to the investors.
• The focus of the strategy is to pick small capitalization companies. These companies have a high growth prospect as well as the potential to expand their business in the future.
• A company with free cash flow is also a yardstick on which investment can be done. Once the free cash flow of a company slows down, it becomes urgent for the stockholder to come out from that stock.
• The dividend payout of a company is also an indicator of the healthy growth of the company as no one company can pay their cash for showing a fake profit.

The portfolio manager always gives their best to generate a superior return (which is definitely risk-adjusted) by the stock selection which is based on the fundamental research analysis, their valuation, and their businesses.

The Basant Maheshwari pms minimum investment amount which is required to be invested under the investment strategy of the company is Rs. 1,00,00,000 (Rupees One Crore only). This amount is not fixed, it can be changed also based on the sole discretion of the portfolio manager.

The return/performance of the investment strategy is measured against the benchmark indices –  NSE NIFTY 50 and BSE SENSEX.

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Basant Maheshwari PMS Returns

Basant Maheshwari PMS started its operation in the year 2016 w.e.f 17-02-2016. The table given below shows the performance of the investment strategy or PMS managed by the portfolio manager of the company:

 

The above table shows the performance of the portfolio manager with the benchmark index NSE NIFTY 50 and BSE SENSEX. The weighted average method is used to calculate the performance of the portfolio manager. 

Looking at the portfolio management services returns of Basant Maheshwari PMS, we observe that the portfolio has performed well 5.13% against both the benchmark index in 1 month.

Again, for the period of 12 months in the FY 2016-17, it has beaten both the benchmark index by giving a superior performance of 31.60%. The performance of the portfolio was 20.36% for FY 2017-18 and it was 11.04% for FY 2018-19.

Hence, the company is a well-performer based on the portfolio management services performance of the investment portfolio based on its strategy.

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Basant Maheshwari PMS Investment Plans

The investment plans offered by the company are created with the view of the convenience of investors. Each and every level of investor can invest in PMS easily through the investment plan of the company.

The PMS house offers four different types of investment plans.

• Bronze: ₹25L to ₹50L
• Silver: ₹50L to ₹1 Cr.
• Gold: ₹1 Cr to ₹5 Cr.
• Platinum: ₹5 Cr. & above

Bronze: This investment plan is created for low-level investors, who have a low financial capacity or want to invest a minimum amount and a low-risk appetite. The plans allow the investor to invest between ₹25L to ₹50 L.

Silver: The plan allows the investors to invest between ₹50L to ₹1 Cr. If an investor can take a little more risk and have a fund available to invest more than 50L, can opt for this investment plan.

Gold: The third investment plan offered by the company is Gold. The range of investment required is between ₹1 Cr to ₹5 Cr. One who has moderately high-risk bearing capacity can invest under this plan.

Platinum: This plan suits high profile investors who can invest above ₹5 Cr. and have a high risk-bearing capacity.

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Basant Maheshwari PMS Commission Model

Basant Maheshwari PMS offers flexible commission models to their investors for the sake of their convenience and long-lasting association with the company.

The PMS Companies offer three different models of commission which are based on different bases i.e. the volume of transaction, the total value of a portfolio, and the profit-sharing.

One can choose any model in which they feel profitable.

The following are the three PMS commission models offered by the company.

• Prepaid Commission Model
• Volume-based Commission Model
• Profit-sharing Based Commission Model

1. Prepaid Commission Model

The prepaid commission model allows the portfolio manager to charge the commission before offering actual Portfolio management services to the investor.

The total fund invested by a client to the PMS is taken as the base of the commission that is required to pay to the portfolio manager.

A slab of the total value of the Basant Maheshwari wealth advisors portfolio is created by the company on which a different percentage of commission is charged by the client.

The risk associated with this model is relatively higher than other commission models. 

2. Volume-based Commission Model

Under this commission model, the PMS commission is charged on the basis of the total value of transactions completed by the portfolio manager for the investment portfolio within a year.

In this model, the authenticity of a portfolio manager is very important as it totally depends on him if he wants to increase the volume of total transactions completed. The portfolio manager knows very well that the high volume of the transaction will lead to more commission to him.

So, this is the biggest drawback of this commission model.

A slab of the total volume of transactions and the percentage of commission is created by the company at which the commission is charged.

3. Profit-sharing Commission Model

The profit-sharing commission model is the best model in the industry. In this model, a client always remains in benefit as he/she is responsible to pay commission only after profit realization out of the portfolio.

The portfolio manager always tries to make more and more profit by their expertise because he knows that the higher profit will lead to a higher share of the commission.

The risk associated with this model is very low because a client pays commission only after getting profit. So, the percentage of commission is higher in comparison to the rest of the commission models.

So, here are the details of slabs and the percentage of commission:

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Basant Maheshwari PMS Fees

PMS charges are some costs and expenses to the clients who avail portfolio management services from the company. However, the exact amount and basis of the charge will be informed to the client at the time of the agreement.

Following are the charges that the client will have to pay for availing of PMS service from the company.

Management fee: The management fee is charged in order to provide portfolio management service to the client. This charge may be fixed or a percentage of the fund managed by the portfolio manager. In the case of a fixed charge, it shall not increase more than 2% per annum.

The other charges which are required to pay to the company are Custodian/Depository fee, Registrar and transfer agent fee, Brokerage and transaction cost, Securities Lending and Borrowing charges, Certification and professional charges, and incidental expenses.

The percentage/amount of all the above charges will be mentioned at the time of agreement with the mutual agreement between both parties.

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Basant Maheshwari PMS Benefits

Following are the benefits of portfolio management services of Basant Maheshwari PMS:

• The company does not work through a ready PMS model, it creates a portfolio after going through the need analysis of an investor.
• It offers an affordable and flexible commission model as well as an investment plan which suits each category of investors.
• The company works through the help of an expert team of portfolio managers and research analysts who are very efficient in their field.
• Superior customer support is provided to the clients. So that the client can get the answer to their queries through different modes like a direct call to the portfolio manager, Email or Whatsapp, etc.
• Regular earning growth and the future prospect of a company’s earnings are the basis on which stock is selected to add to the investment portfolio to provide a healthy return to the investors.
• A track record of the performance of the strategy used by the company since its inception.

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Basant Maheshwari PMS Customer Support

Basant Maheshwari PMS offers various types of customer support to their clients in order to give them full satisfaction while dealing with the company.

A client is allowed to call the company directly to get the solution to their portfolio related problems. And for this reason, a relationship manager is appointed by the company.

One can also Email their queries to the company, and the solution will be provided to the client in the same way.

The best part is that the client can directly call the portfolio manager 5-8 times in a month in order to get an answer to their questions.

The company is liable to solve any problem of the client within 7-10 working days.

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Conclusion

Basant Maheshwari PMS is not a very old company but it has performed very well by following its superior investment strategy. It makes investment portfolios after going through a deep analysis of a client’s need and risk appetite.

The strategy used by the company is mostly for long-term investment purposes. The investment plans and commission model are flexible enough for each category of investors.

On the other hand, the charges are very minimal and may differ a bit from client to client based on some criteria. Hence, if you are the one who is searching for a genuine and well-performing PMS house, don’t hesitate to associate with Basant Maheshwari PMS.

In case you are interested in using top portfolio management services with high returns, let us assist you in taking the next steps forward.

Just fill in some basic details to get started:

 

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Basant Maheshwari PMS FAQs

Here are some of the top frequently asked questions about Basant Maheshwari PMS you must be aware of.

1. What is the investment objective of Basant Maheshwari PMS?

The investment objective is capital appreciation through investment in the medium to long-term cap equities.

      2. Is there any contract required between the portfolio manager of Basant Maheshwari PMS and its clients?

Yes, a written agreement requires between both parties before a portfolio manager enters the portfolio management service to the client.

      3. What is the investment philosophy of the company?

Predictable and consistent earnings of a company are the basic investment philosophy of Basant Maheshwari PMS.

      4. What is the tax liability of a portfolio investor?

The tax liability of an investment portfolio investor is the same as the a direct capital market investor.

      5. Is there risk expected in PMS?

Yes, there is risk associated with the portfolio management service, sometimes erosion of the principal amount invested also.

 

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