Motilal Oswal PMS

Motilal Oswal PMS service is one of the best and definitely one of the most prominent Portfolio Management services in the country.

It creates a portfolio of the client according to their risk appetite and investment objective. The portfolio is created by using financial instruments like stocks, debt, and mutual funds.

Let’s understand more about it in this detailed review.

Motilal Oswal PMS Review

Motilal Oswal is among the largest broking houses in India. The company was established in the year 1987 by Mr Ramdeo Agrawal and Mr Motilal Oswal. The headquarter of the company is in bMumbai, Maharastra.

The portfolio management services of Motilal Oswal PMS are famous among the investors for its performance. The expert professionals of Motilal Oswal PMS create a portfolio for the investors to invest.

The portfolio is customized according to the investment objective and risk bearing capacity of an investor.

The Portfolio is not made up of any particular financial instrument, but it is made up of stocks, debt and mutual funds also.

The objective of the investment portfolio creation is to maximize the return while minimizing the risk. And for this, the company has its own and dedicated professional teams of technical analysis, small-cap, and mid-cap.

The wide range of professionals that the company has, looks after the portfolio of each client.

The PMS services of Motilal Oswal are famous among the High Networth investors (HNI). These investors get benefits like strong risk management, regular reviews etc.

 

In this article, we will try to cover all important aspects of Motilal Oswal PMS like the types of PMS, Strategies, Benefits, commission model, customer support, investment plans, performance/return etc.

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Motilal Oswal PMS Types 

Motilal Oswal offers both types of PMS service to its clients i.e Discretionary PMS and Non-discretionary PMS. But, most of the customers go to the company for taking Discretionary PMS service.

Discretionary PMS:

The Discretionary PMS service offered by the firm is very attractive.  It provides a lot of facilities for clients. And the most important one is you will get professional management service for your investment portfolio.

There is absolutely no need for you to worry about your portfolio.

The assigned fund manager will keep watching your portfolio every while. And the performance of your portfolio totally lies in the hand of the fund manager.      

The fund manager can add or remove any asset from your portfolio for giving you better return out of that. It means it is not your headache to go through the investment process of your fund for a better return.

Non-discretionary PMS:

Under non-discretionary PMS, a client takes the whole responsibility of his/her investment portfolio. The fund manager can only suggest the better step for the investment step of a client but, the final decision remains in the hands of a client only.

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Motilal Oswal PMS Manager Details

Here are details on the top managers that handle the portfolios of HNI clients primarily:

Mr Shrey Loonker (Senior vice president):

Mr Loonker has completed Chartered Accountancy from ICAI Mumbai in the year 2005. He has also done CFA from CFA Institute, USA in the year 2009. He has more than 13 years of experience in the field of finance.

Before joining Motilal Oswal PMS, he was associated with Reliance Nippon Life Asset Management as a Fund manager, worked with Reliance banking for 11 years and with Ernst & Young Pvt.Ltd. India for 2 years.

Mr Akash Singhania (Senior vice-president):

Mr Akash Singhania has more than 11 years of experience in the field of fund management and has an overall 13 years of experience in the field of finance. Presently, he is a fund manager at Motilal Oswal Midcap 30 fund.

Prior to this, he was Deputy CIO equities at  DHFL Pramerica AMC, Deutsche AMC-DWS mutual fund head and worked as senior Analyst-PMS at ICICI Prudential AMC.

He also worked on a senior position at PWC, KPMG, Ernst & Young.

Mr Singhania has completed Post Graduate in Management (PGDBM) from IIM, Lucknow, Company Secretary- ICSI 2001 and Charter accountancy in Auditing and Accounting ICAI-2001.

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Motilal Oswal PMS Strategy

The PMS offers various strategies for the investment portfolio of clients which suits them according to their investment objective and requirements. 

Here we are going to discuss the main strategies one by one.

• Value Strategy
• Next Trillion Dollar Opportunity
• India Opportunities Portfolio Strategy

Value Strategy:

The aim of the value strategy is to invest in long-term through Large-cap companies which will give the portfolio consistent and stable growth.

This strategy is for those investors who can wait for the long term for getting better growth.

Under this strategy, investment is done in good growing companies, which are managed under great business managers who work hard for better wealth creation.

The style of this strategy is much different from most of the strategies used by the PMS houses in the market. Under this strategy, undervalued stocks are bought and overvalued stocks are sold, irrespective of index movement.

Presently, there are 22 stocks in the value strategy portfolio. This strategy outperforms for continuous 14 years against the index.

Next Trillion Dollar Opportunity:

Next Trillion Dollar Opportunity is the second best strategy used by the Motilal Oswal PMS. Under this strategy, the investment portfolio comprises of multi-cap stocks.

The theme behind this strategy is to invest in ‘Next Trillion-Dollar GDP growth opportunity ’. It means the aim is to invest in growing businesses and sectors which has a bright future and opportunity for better growth.

The theme of strategy evolves around those sectors which benefit from GDP growth are the consumption sector, Banking & financial sector, and infrastructure & related services in the Indian economy.

Presently, there are 26 stocks in the Next Trillion-Dollar Opportunity.

India Opportunities portfolio strategy:

India Opportunities Portfolio strategy is the third most effective strategy used by Motilal Oswal Portfolio Strategy. This strategy aims to capitalize on the growth by investing in those companies which are expected to grow with the growth of the Indian economy.

The strategy is a multi-cap strategy which means it has exposure across the market i.e. the large-cap, mid-cap, and small-cap. It helps in taking advantage of different market trends.

Presently, there are 20 stocks in the India opportunities portfolio strategy. It is high risk and high return strategy.

So, the above three strategies are used by the Motilal Oswal PMS for giving an expected and even more than expected return to the portfolio investors.

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Motilal Oswal PMS Performance/Returns

The investment portfolio performance of Motilal Oswal PMS is extremely good. All strategies have given a market beaten return to the investors. The firm has also beaten the 10 years mutual fund returns.

If we talk about the portfolio management services returns of Motilal Oswal PMS, then we can see that:

• The returns for 3 years is around 13%,
• it is around 12% for 5 years,
• for 7 years it is 17%,
• it is 20% for 10 years and
• for more than 11 years, the return is approx 25% CAGR.

Hence, we can see that the return of Motilal Oswal is attractive enough to attract customers towards the company.

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Motilal Oswal PMS Investment plans

Motilal Oswal offers four types of investment plans for its customers. The customers are allowed to choose any plan according to their financial comfort.

It starts from the minimum investment in PMS amount as prescribed by the SEBI under the Bronze category and goes higher in a range of higher investment amount.

Here is the detail of investment plans:

• Bronze (₹25L – ₹50L)
• Silver (₹50L – ₹1 Cr)
• Gold (₹1Cr – ₹5 Cr)
• Platinum (₹5 Cr & above)

Above four are a different type of investment plans which is made for the different category of customers.

• The first one is Bronze which starts from ₹25L and goes up to ₹50L. This plan is for those investors, who don’t want to take high risk in portfolio investment.
• The second investment plan is Silver, under this plan range of investment money is ₹50L – ₹1 CR.
• The third investment plan is Gold, ranges from ₹1CR – ₹5CR.
• And the last investment plan offered by Motilal Oswal PMS is Platinum, this investment plan is made for high profile investors who want to invest a high amount in portfolio investment.

If you are an investor who can invest more than ₹5 CR in your portfolio for getting better a return and have a high risk bearing appetite then this plan is for you.

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Motilal Oswal PMS Commission/fee model

Just like other PMS houses, Motilal Oswal also charges some percentage of the commission for the portfolio service rendered by them for the clients. The percentage of the PMS commission depends on different models of the commission which a client and fund manager choose to make payment of a commission.

There are various types of factors that decides the model of commission and the important one is client and PMS house both. They mutually decide the model of commission according to the convenience of both the parties.

Here is the name of three different commission model:

• Prepaid commission/fee model
• Volume-based commission/fee model.
• Profit sharing based commission/fee model

Prepaid commission/fee model

Let’s start our discussion with prepaid commission model. Under this model, the commission/fee is pre-paid.

It means as a client you are required to pay the commission of a fund manager in advance, without starting your portfolio management service.

This model favours the fund manager up to a maximum extent but not too much favourable of the client’s side. As if the commission is paid in advance fund manager can give less effort to your portfolio because he/she is already paid.

If your portfolio does not perform then also the fund manager will not suffer. It is only a client who will suffer from both the sides, loss of a portfolio as well as the loss of the commission/fee as well.

Volume-based commission/fee model:

The Volume-based commission model is another type of model through which payment can be made to a fund manager. Under this model, a fund manager is paid on the basis of the volume of transactions completed in favour of the portfolio of a client.

But, the most important thing in this model is the authenticity of your fund manager. Because it all depends or we can say in the hand of a fund manager that how the volume of the transaction is generated.

If the fund manager is genuine, he/she will work for the performance of your portfolio only and the transactions generated by them will be correct.

But, if he is not genuine, he will increase the volume of transactions by doing unnecessary transactions for making more commission.

However, market fluctuation also plays a vital role in this model.

Profit-sharing based commission/fee model:

The profit sharing based commission model is one of the best commission models for the clients. In this model, they are required to pay commission only after getting profit from their investment portfolio.

Actually, the rule in this model is no profit, no commission. Very big relief for the clients, who are charged in many cases by PMS houses without getting any profit.

And the fund manager also put their hundred per cent in profit realization as they know that they will be paid only after getting profit from the client’s investment portfolio.

No doubt, clients want to go through this model but, if a fund manager is an expert in his/her profession then he/she will also have no objection.

Hence, we have seen all three commission models offered by Motilal Oswal PMS.

Here is the percentage of the commission which will be charged on the basis of volume/commission or prepaid.

 

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Motilal Oswal PMS Charges

Here is the list of PMS charges which are charged by Motilal Oswal PMS besides the commission.

• Management fee: The management fee is charged by the firms, according to the commission model opted by the client and the fund manager.
• Upfront fee: It is a type of fee which is required to be paid before starting your portfolio services. The range of fee is 1%-2% based on Asset value.
• Motilal Oswal Brokerage charge: This is charged by the fund manager on the basis of the total number of transactions done by them. The range of charge is 0.01%-0.05%. For more information, you can check these Motilal Oswal Brokerage Plans.
• Depository charge: It is charged between 0.15%-0.20% of asset value.
• Custodian fee: This is charged by the PMS house for the custody of your portfolio. The range of charge is between 0.3%-0.4%.
• Exit load fee: It is charged on the exit/withdrawal of the amount from the portfolio. If a client decides to exit within a year of the portfolio creation, he/she will be charged 1.%-2.0% of the withdrawal amount. If it happens after one year, then it can be 0.05% of the withdrawal amount.

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Motilal Oswal PMS Login

PMS companies provide investors with a portal for them to be able to keep an eye on the investments made by the fund manager. Walking on similar lines, Motilal Oswal provides a set of credentials for login.

Motilal Oswal PMS Login can be accessed on the official website of Motilal Oswal Asset Management Company (AMC).

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Motilal Oswal PMS Benefits

A client has many benefits of Portfolio Management Services with Motilal Oswal PMS. Here are some of them:

• Stock selection based on the fundamental analysis like the growth of the company, future prospects, valuation, cash reserve, return on equity etc.
• Value strategy which is launched in the year 2003 has the track record of more than 14 years. It consistently outperformed the benchmark.
• It has the largest active clients of more than 20,624 on PMS platform.
• The active client base in more than 148 cities of the country. So, one can get PMS service of Motilal Oswal in any city.
• Customized investment plans and well-focused portfolio investment.
• The facility of 24*7 portfolio access of client from the web. It means full transparency.
• Provides tax statement from CA at the end of the financial year.

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Motilal Oswal PMS Customer support

Motilal Oswal PMS provides call and email support to the clients to solve their queries. It also provides WhatsApp support.

A relationship manager is assigned to each client so that they can get any type of PMS related help from them.

A client can call the fund manager directly from 1-7 times in a month, in case he/she want to clarify or ask any question.

The TAT for issue resolving is 7 working days.

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Motilal Oswal PMS Conclusion

Motilal Oswal PMS is one of the best PMS Services in India. It has various types of strategies which are used according to the investment objective of the clients. The value strategy of the company has done extremely good in the market.

It offers flexible commission/fee model as well as investment plans to the clients. The customer support is also very well.

Overall, we can say, if you are looking to get the best return out of your investment portfolio then no need to think much. Motilal Oswal PMS is the best option for you.

Are you looking to use PMS for your disposable funds? Let us assist you in taking the next steps forward:

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Motilal Oswal PMS FAQs

Is there any minimum investment limit of Motilal Oswal PMS?

Ans: Yes, if you want to make an investment in PMS with Motilal Oswal, you are required to make the investment with minimum ₹25L.

Who are eligible for PMS service of Motilal Oswal?

Ans: All Indian citizens, HUFs, Corporate houses, The partnership firms, NRIs (Need to open PIS account).

Is there any charge of withdrawal amount before one year of portfolio creation?

Ans: Yes, you will be charged between 1.5%-2.0% of withdarwal amount.

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