Birla Sunlife PMS

Birla Sunlife PMS is a powerful name in the space of portfolio management services coming from the financial house of Aditya Birla Money. It provides customized services to the clients based on in-depth research, innovative strategies, and the highest level of experience.

Also, read Why do I need a Portfolio?

Let’s find out through this detailed review, whether it makes sense for you to use Birla Sunlife PMS for your investments or is it better off to stay away from them?

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Birla Sunlife PMS Review

Birla Sunlife PMS is a division of Birla Sunlife AMC Limited and was established in the year 1994. It is a joint venture between Sunlife Financial Inc. and the Indian famous conglomerate Aditya Birla group.

The division of Aditya Birla Sunlife AMC provides special services to the portfolio investors which are based on:

• In-depth research process by the company.
• Innovative investment Strategies.
• A portfolio management team.

After understanding the personal need of an investor, the portfolio manager selects a strategy and creates a portfolio for the client according to the financial goal, investment outlook, risk appetite, and time horizon.

The right selection of strategy is done by the PMS team that helps the investor to invest in quality management and strong business with a reasonable valuation.

Birla Sunlife actually customizes the portfolio services for High net-worth clients in order to provide them investment portfolio service according to their needs. The PMS team of the company provides a complete solution to the wealth management of the investors.

The investment philosophy of the company is based on the methodical approach to investing and seeks long-term investment results by deep research and analysis.

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Birla Sunlife PMS Types:

In this article, you will find details of Birla Sunlife PMS. It includes details like PMS Details, PMS types offered by the company, commission/fee models, strategies details, manager’s details, customer support, Benefits, etc.

Birla Sunlife PMS provides both discretionary and non-discretionary PMS to its clients (Especially to high net-worth clients). The choice of PMS depends on the mutual decision of both the client and the fund manager.

Discretionary PMS:

Under this PMS, the whole decision related to the investment portfolio of the client remains in the hands of the Portfolio Manager. He has the right to add or remove security from the portfolio.

The client is informed about the status of his/her portfolio on a regular basis. He can only view the performance of the portfolio because it is a portfolio manager who is liable for the performance of the portfolio.

Non-Discretionary PMS:

This PMS Service allows the client to handle the portfolio by themselves. They are allowed to make all decisions related to the portfolio and the portfolio manager plays the role of a trader only.

The portfolio manager can give his/her suggestion related to the portfolio to the client but the ultimate decision remains in the hand of the client.

Also, read PMS investment risk

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Birla Sunlife PMS Strategies

Birla Sunlife mainly works on the Large-cap, Mid-cap, and small-cap strategies. But, there the company has also created some strategies which are customized according to the needs and financial objectives of investors.

Here we are going to discuss the three different PMS strategies created by the company.

• Birla Core Equity Portfolio (Old name was Value portfolio)
• Birla Customized Debt Portfolio.
• Birla Select Sector Portfolio (Old name was India Reforms Portfolio)

Birla Core Equity Portfolio (Value portfolio):

Birla’s Core equity portfolio was earlier known as a value portfolio. It focuses on high-quality stocks which have a record of consistent growth and risk-free, medium to long-term, and definitely a healthy return.

The strategy gives more emphasis on strong research which is required for the selection of stock. The investment portfolio consists of 25-30 stocks.

The investment strategy is ideal for those investors who want to benefit from Indian economic growth.
The minimum investment required in this strategy is the minimum ₹25 Lakhs.

However, the decision of the minimum investment under the strategy depends on the sole discretion of the portfolio manager as it varies from client to client.

The time horizon of investment under this strategy is a minimum of 3 years.

Approach:

The investment approach of this strategy is to assess the company’s growth prospect by analyzing various key ratios of a company’s finances like liquidity, profitability, growth prospect, capital investment requirements, etc. They also go through the economic cycles and their effect on demography and corporate earnings.

Birla customized Debt portfolio:

Birla Customized Debt portfolio focuses on the investment portfolio which is created by fixed income securities. The key drivers which help in decision making are factors like macroeconomic environment, credit spreads, yield curve gradient, and Interest rate movements.

The priority in portfolio creation under this strategy is the liquidity and quality of the portfolio.

This strategy is ideal for those investors who want a customized investment portfolio made up of fixed income securities.

The minimum investment amount requires is ₹25 Lakhs as prescribed by the SEBI. Or it may be higher also depending on the mutual decision of both the client and the portfolio manager.

The total time horizon of this strategy could be between 3 months -3 years.

Investment approach:

The investment approach is fully customized to meet the investment objective of an investor. So, there is a chance of a superior return through the restructuring of the portfolio.

Select sector portfolio (Old name was India Reforms portfolio):

The aim of the Select sector portfolio (SSP) strategy is to search those companies which high-quality growth companies and has consistent ROI. This strategy helps to compound the investment return and ultimately the long term wealth creation.

The strategy is ideal for those investors who want an investment portfolio of selected sectors/ideas, backed by a high level of research and investment expertise.

One can make a minimum investment of ₹25 Lacs. However, the portfolio manager decides about the minimum investment amount which varies from case to case.

The investment horizon under this strategy is a minimum of 3 years.

Investment approach:

The portfolio under this strategy exhibits those stocks which are at a reasonable price and attractively valued. The stocks are fundamentally strong and operating dynamics. The companies identify the value-adding companies and wait for the prices that meet the company’s return expectation with the margin of safety.

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Birla Sunlife PMS Performance

The performance of Birla Sunlife PMS is outstanding. The company has beaten the 10 years Mutual Funds return also.

• The Performance/return of Birla Sunlife PMS for 3 years is around 11%,
• for 5 years the return is 10%,
• for 7 years the return is 14%,
• it is around 21% for 10 years, and
• for 11 years plus the return of Birla Sunlife PMS is 27% CAGR.

The healthy portfolio management services returns make Birla Sunlife PMS one of the best PMS services in India.

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Birla Sunlife PMS Investment plans

Birla Sunlife PMS has created four different types of investment plans. All plans are created according to the financial strength and risk-bearing capacity of investors. All are in a different range of investment money.
Here are the names and range of investment plans:

1. Bronze: ₹25L to ₹50 L
2. Silver: ₹50L to ₹1 CR.
3. Gold: ₹1 CR to ₹5 CR.
4. Platinum: ₹5 CR & above

Bronze: As the name is, this plan is for those investors who want to invest a minimum amount in the PMS Service and has a low risk-bearing capacity.

Silver: The range of this plan is ₹50L to ₹1 CR. One can make an investment with any amount between these two amounts.

Gold: This fits the investors who have a moderately high risk-bearing capacity and financial strength. They can invest in between ₹1 CR to ₹5 CR.

Platinum: This plan is for high net-worth clients who have the capacity to invest above ₹5 CR.

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Birla Sunlife PMS Fee models

The commission model offered by a PMS house gives a choice to the investors to make payment to the company according to their convenience.

The commission models offered by Birla Sunlife PMS are also flexible like other PMS houses and are based on different factors like advance commission, based on the total number of transactions completed in a year, and the total profit generated by the investment portfolio.

Commission models are:

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

Let’s discuss all models one by one.

Prepaid commission model:

This model is just like making advance payments. As an investor, you are bound to pay the commission to the portfolio manager in advance, if you opt for this commission model. The commission is charged on the basis of the total value of the portfolio before starting the actual PMS Service.

A percentage is decided by the client and the portfolio manager mutually, on which the commission is paid.

Generally, the percentage of the commission under this model is very low in comparison to other commission models because of the high risk associated with the model. There is no guarantee of profit or full effort of the portfolio manager if the commission is paid in advance.

Volume-based commission model:

This is the second type of commission model offered by the Birla Sunlife PMS. In this model, the commission is required to be paid on the basis of the total number of portfolio transactions completed by the portfolio manager within a year. The value of the portfolio decides the commission of the manager.

The biggest drawback of this model is its base because if the portfolio manager is not loyal to their job he/she can increase the number of transactions just to get the higher commission. So, investors should check the track record of a manager also before opting for this model.

Profit-sharing based commission model:

This is one of the best models offered by a PMS house. This commission model provides equal satisfaction to both parties. One who pays and the one who gets both. The base of this commission model is the profit realized from the portfolio. The higher the profit realized, the higher will be the commission.

A portfolio manager also puts his/her whole effort to get the profit as much as possible. He knows that his/her commission depends on the profit of the portfolio.

Generally, a higher percentage of commission is charged in this model because almost there is no risk associated with PMS Service.

The below-mentioned table shows the commission percentage of different models:

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Birla Sunlife PMS Charges

There are many other charges also which as an investor, you are required to pay to the portfolio manager or the company that is called PMS Charges. These charges are levied on almost all the PMS companies. Management fees, brokerage charges, depository charges are some of them.

Here is the list of all charges of Birla Sunlife PMS:

Management fee: The fee is charged by the PMS team of Birla Sunlife PMS for the management of the investor’s portfolio. It is charged on the basis of the type of commission model. Normally, the charge is 2.5% per annum.

Custody Fee: The custody fee is charged in the range of 0.25%-0.45% of the total asset value.

Upfront charge: The upfront fee is just like a pre-paid fee. Birla Sunlife PMS charges the upfront fee in the range of 1.2% to 2.2% of Asset value.

Brokerage charge: The brokerage charge is taken by the fund manager of the company on the total value of transactions. It is in the range of 0.01%-0.06% of total asset value.

Depository charge: Birla Sunlife charges the depository fee between 0.21%-0.32% of the total asset value.

Exit load fee: The fee is charged on the basis of the total withdrawal amount within one year of portfolio creation. The charge is in the range of 1.2%-2.2% of the total value. If the withdrawal is done after one year of portfolio creation, the exit load fee will be totally free.

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Birla Sunlife PMS Benefits

Birla Sunlife provides various types of portfolio management services benefits to the investors in order to provide them with a smooth PMS service.

Following are the benefits:

• Birla Sunlife provides a wide range of investment strategies that suit the different categories of investors according to their investment objective and risk appetite.
• There is also a facility for Top-up of the investment amount to the investors.
• The company also provides versatile investment slabs which are created for the investors of low to medium to high net-worth clients.
• The commission/fee model is also flexible. An Investor can choose any model according to their convenience.
• The investment philosophy of the company is based on the stocks for long term investment plans with the minimization of risk.
• The company has also made a good position in the PMS market in order to provide a superior and excellent return to the clients.
• As an investor, you can enjoy the best support from the company in order to get the solution to your portfolio related queries.

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Birla Sunlife PMS Contact

Birla Sunlife provides customized support to its clients in order to provide them with total satisfaction. The support includes the direct calling facility with Email and Whatsapp support. One can get a solution to their query by any means he/she think convenient for him.

The other support is the appointment of a relationship manager by the company. A client can ask any question to the relationship manager and the relationship manager is liable to solve the queries of a client. This facility also helps to make a strong relationship between the company and the client.

The net-worth client can directly call the fund manager from 4-7 times in a month, while a low net-worth client can call 2-4 times in a month.

The maximum issue-resolving time of the company is 9 working days.

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Birla Sunlife PMS Conclusion

Birla Sunlife PMS has earned a very good name and fame in the financial market in order to offer an excellent result to its existing investors.

It has multiple strategies based on long term investment philosophy. The company provides a facility of multiple investment plans and commission models also. On the other hand, the customer support offered by them is of excellent quality and well-structured.

Hence, all are indicating that the Birla Sunlife PMS is one of the top PMS houses.

In case you wish to use promising and top-returns providing portfolio management services, let us assist you in taking the next steps forward

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Birla Sunlife PMS Fund Managers

The credit of the success of PMS Service of Birla Sunlife goes to the qualified and well-experienced professionals of the company. The portfolio managers and the analysts of the company give the clients the right place to invest their hard-earned money.

Here we are going to discuss the two most talented portfolio managers of the company:

Mr A Balasubramanian (CEO):

Presently, Mr Bala is working as CEO of Birla Sunlife PMS. In his 27 years of experience in Mutual funds various streams, he worked with GIC Mutual Fund also. He has been working with the company since its inception.

Mr Bala is responsible to take care of the overall portfolio management services and Asset management service of the company.

Bhavdeep Bhatt (Head-PMS):

Bhavdeep Bhatt is head of the portfolio management service at Birla Sunlife AMC Limited. Before working at this position, he was head of Business Development (Mutual Fund) of this company.

The earlier experience of Mr Bhatt was with ICICI Prudential Asset management company Ltd where he was working as a product & communication head. He also gained experience with Kotak Mahindra Asset Management Ltd.

He has completed MBA from Bhavnagar University, Gujarat.

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Birla Sunlife PMS FAQs

Some of the most frequently asked questions about Birla Sunlife PMS are as follows:

How is Birla Sunlife’s PMS is different from others?

The following are the benefits that make Birla Sunlife different from others:

• Years of track record.
• Internal and external compliance is very strict.
• More emphasis on proprietary research.
• Outstanding communication with clients.
• Disciplined investment process.

Is there any charge applicable on termination of PMS before one year?

Yes, the charge will be applicable as agreed between the client and the company at the time of the agreement.

How one can know which product is suitable for him/her?

First, the experts of the company will try to understand the risk profile and the investment objective of a client and then they will develop an investment strategy according to the client’s need.

Who will manage the fund of a client?

The company has a team of expert researchers and portfolio managers. They work day and night for the clients hard-earned money.

Is there any lock-in period?

The lock-in period depends on the type of product a client includes in his/her investment portfolio.

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More on Aditya Birla Money

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