Unifi PMS

Unifi PMS is famous among portfolio investors for its innovative strategies with specialization in providing risk-adjusted returns to clients. The firm provides personalized portfolio management services to each of its clients and focuses on making a strong relationship with them.

Let’s understand what this business has to offer you in this detailed review!

Unifi PMS Review

Unifi Capital, a portfolio Management specialized firm was established in the year 2001. The headquarter of the company is in Chennai, Tamil Nadu and was established under the leadership of Sarath Reddy.

Unifi PMS has given an outstanding performance in the market for the last 18 years marked by the continuous success of each strategy against the benchmark. This shows the stronghold of the firm in the market by offering quality portfolio service to its clients. The result of the firm helps them to make their client base strong by attracting more and more clients.

Unifi PMS has a strong-in house research team that picks out the best investment option for an investor. And after analyzing the asset, a fund manager decides what to do or not.

The practice of regularly analyzing the Indian stock market makes the company different from the rest of the PMS companies available in the market. They always try to create an unbeatable investment portfolio for their valuable clients.

Unifi PMS works on the belief that the small and mid firms are best for investment as they work hard to grow and result in good stock performance.

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Unifi PMS Types

In this article, we are going to discuss different aspects of Unifi PMS which are very important to know before making an investment decision in the company.

We will try to cover types of PMS offered by the company, PMS strategies, details of managers, commission model, other charges, investment plans offered, benefits, support to clients and some FAQs.

Unifi PMS also offers both Discretionary and Non-discretionary PMS just like other Portfolio management companies in the industry. It is seen that in most of the cases, the client wants to choose a discretionary PMS option between the two.

And the reason  is here:

Discretionary PMS:

In discretionary PMS, the decision related to the investment portfolio of the client lies in the hand of a fund manager who is responsible for the management of the portfolio.

The client gets information about the step taken by the fund manager for their portfolio, but ultimately it will be the fund manager who will decide about the portfolio by their expert knowledge and experience.

While in the case of Non-discretionary PMS things are opposite.

Non-discretionary PMS:

In non-discretionary PMS, a client takes the decision related to the portfolio. A fund manager can only suggest to them the best step for a  portfolio, but the ultimate decision remains in the hand of a client.

And the client will be wholly responsible for the performance of the portfolio as it will be handled by them only.

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Unifi PMS Managers details

Unifi Capital has a team of experts and well-experienced fund managers who help the client to get risk-free returns in unfavorable market movements as well.

Here we are going to discuss details of some of the fund managers of Unifi Capital.

Saravanan V.N (Vice president-Research):

Saravanan works as vice president of the research team at Unifi PMS. He has more than 16 years of experience in the field of equity research, Corporate research, Taxation, and Auditing. He has been associated with the Unifi Capital for more than 9 years.

Presently, he tracks Pharmaceuticals, the domestic debt market and NBFC. Except this, he also helps in Hedging and Arbitrage and Debt fund investment. Before this, he was associated with PWC as 3 years of articles, 2 years with ICICI Bank, corporate division banking.

At Unifi PMS, Saravanan manages AIF High yield fund and the Event Arbitrage fund.

Sarath K. Reddy (Chief Investment Officer):

Sarath K. Reddy, who works as chief investment officer of Unifi PMS has more than 25 years of experience in the field of investments. He started his career with Standard Chartered Bank in Mumbai. Then, he decided to become an entrepreneur by starting Unifi Capital in the year 2001 with a highly experienced team.

Since he is an investment officer of Unifi PMS, he works very closely with the fund manager’s team and analysts.

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Unifi PMS Strategies

Any investment business company tries to use all types of possible strategies to grasp the best market opportunities or whatever opportunities available in the market. The strategies used by portfolio management companies are generally of three basic categories which are:

• Large-cap strategy
• Mid-cap strategy
• Small-cap strategy

The above three strategies are basic strategies used by mostly all PMS houses and so is the case with Unifi PMS. These strategies cover all types of businesses/companies available in the Indian capital market.

The companies that are old in the market and are well-established, the one which has seen many stages, still has to go a long way and the one which has just started their business all can be covered through these strategies.

But, the main point is that what are those techniques that are used by PMS companies to make them different and unique from other PMS houses in the market.

Here we will discuss two main strategies used by Unifi PMS in order to give risk-free returns to its portfolio investors.

• Unifi High Yield Fund (HYF)
• Unifi Green fund

Unifi High Yield Fund (HYF):

Unifi High Yield Fund (HYF) is a discretionary PMS type. It is created with the objective of providing Fixed-income investment opportunities to the portfolio investors with a minimum return of 3% per annum (net post-tax return) over the rate of CPI.

Those investors who wish to get a consistent superior compounded return on an annual basis which is far better than the conventional fixed-income instrument can opt for this portfolio strategy.

Under this strategy, Unifi Capital consistently tries to find those opportunities in the Indian capital market that are created by the flow of economic trends, company announcements and human emotions. The firm always remains mindful of the market events which could surprise an investor.

The majority of the funds under this strategy is invested in a fixed income instrument which gives a stable return without an impact of market volatility and the remaining funds are invested in structured high yield credit, Event* Arbitrage, and some directional deals which are very selective to increase the overall profit to the required level.

*Event arbitrage opportunities: It implies those opportunities which come out of the events like Merger & Acquisition, Buybacks, Open offer made by a controlling shareholder to the public, Special dividend to the shareholders, Delisting of companies etc.

Unifi Green Fund:

The theme of this strategy is the ‘green economy’. The concept of this strategy, comes out of changing climate and need to focus on the green economy.

In green investment or funds, the focus for investment is those companies that operate primarily in renewable energy, Environmental technology space, and clean technology. It includes companies that provide those products and services which are helpful in environmental problem solution or that help in increasing efficiency of use of natural resources.

Unifi Green Fund strategy, focus on those companies which support infrastructure build-up for a ‘Green economy’. It includes a company that produces energy efficiency products, renewable energy, water & waste material solution, emission control products, Organic Chemicals etc.

The key strength of Unifi lies in its strength of identifying the next-generation companies from small-cap and mid-cap. And Unifi Green fund strategy also focuses on the mid-cap and small-cap companies that come under the green theme.

The companies under this strategy will be selected under the following sectors:

• Energy efficiency
• Pollution reduction
• Renewable and Alternative energy
• Environmental support services
• Water infrastructure and technologies
• Green Chemicals
• Waste recycling and management

The above-mentioned sectors are those sectors that come under the ‘Green fund strategy’. The List may include some more sectors also with the advancement in research and sectors can also vary. But in all cases, the theme would be the same ’Green Economy’ for the stock selection.

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Unifi PMS Performance

The performance of Unifi PMS strategies remains outstanding since its inception. It has always given a better return to the portfolio investors throughout the year.

The performance of the portfolio varies with the number of years of investment holding. The portfolio management services returns for Unifi are as follows:

• 3 years was 9%,
• increased to 10.5% in 5 years
• jumped to 12% in 7 years
• for 11 years & onwards, it goes up to 13.5% CAGR.

But seeing the performance of the firm, it is clear that the firm is one of the top destinations for portfolio investors. Having said that, from a competitive point of view, there are other PMS companies providing similar or better returns.

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Unifi PMS Investment Plans

Unifi Capital offers four types of investment plans just like most of the other PMS firms. The portfolio investors of Unifi PMS have four investment options from which they can choose according to their risk-bearing capacity and fund availability.

Here is the name of four investment plans:

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

The first investment plan is Bronze which starts from ₹25L to ₹50L. This range is the basic amount to invest in a portfolio and for those investors also that do not have a high-risk appetite. The second plan is silver and the range of investment is between ₹50L to ₹1CR, it suits those investors who have a moderate risk appetite.

The third plan is Gold, it suits those portfolio investors who have a moderately high-risk appetite and the range is ₹1CR to ₹5 CR.

The Last investment plan offered by the firm is Platinum that starts from ₹5CR and can go as high as an investor want to invest. The investor under this plan has a high risk-bearing capacity and financial strength.

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Unifi PMS Commission/fee model

The commission model of Unifi PMS is of three types. One can pay PMS commission to the fund manager for the services rendered by them in any of the forms. It will be decided by the mutual consent of both the parties that is the fund manager and the portfolio investor.

Here are the three different models of Unifi PMS:

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

Prepaid commission model:

The name of the model is self-explanatory. It means first to pay the commission then only one can get the service. Under this model, you will be offered a portfolio management service only if you pay the commission to a fund manager before starting of portfolio creation.

The commission model will be decided by the fund manager as well as the client. If both agree, then they will move ahead.

However, in this model, a client will be benefitted only after the performance of the investment portfolio and a fund manager will be benefitted even if the return will be negative or no profit.

Volume-based commission model:

The percentage of commission will be decided on the basis of the volume of transactions completed for a portfolio. The high transaction volume makes the higher percentage of the commission to a fund manager and due to this the probability of wrong transactions increases.

It is very important that a fund manager would be genuine as only he/she can decide the required number of transactions.

A percentage of transaction volume will be paid to the fund manager as their fee or commission.

Profit based commission:

The percentage of commission required to pay to the fund manager under this model is based on the total profit generated in a particular investment portfolio. The higher the profit, the higher the commission.

This model motivates a fund manager to put his hundred percent in the portfolio so that more and more profit can be generated.

And it is a favorite commission model of all the clients of portfolio investment as they are required to pay commission only after they get profit out of their investment portfolio.

Here is the table which shows the percentage of the commission/fee payable to the fund manager:

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Unifi PMS Charges

The commission to a fund manager is one of the main charges taken by the Unifi PMS just like others also. But, you must know that there are many other charges also that you will be required to pay to the firm for the services they offer to you.

Here is the name of those PMS charges:

Management fee: This fee is charged by the management of the firm on the basis of the selected commission model.

Upfront charge: It is charged just like payment in advance for the services offered by the firm to the client. It is charged before stating of service. The range of percentage is 0.85%-1.45%.

Brokerage charge: This is charged by the fund director in the range of 0.006%-0.016%.

Custodian charge: It is a Guardian fee, charged between 0.15%-0.25%.

Depository charge: The range is 0.08%-0.15% of the asset value.

Exit load fee: This fee is taken if a client wants to withdraw his/her fund before one year of portfolio creation. The range is 0.75%-1.15% of the withdrawal amount. No fee for withdrawal after 12 months.

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Unifi PMS Benefits

Following are the Benefits of Portfolio Management Services of Unifi PMS:

• Innovative investment strategies with the best method of risk-adjusted return.
• The layers of research help in the selection of the most profitable stocks for the investment portfolio.
• An outstanding performance of strategies over the years.
• Full support provided to the clients in order to resolve their queries.
• An experienced team of management and research analysts.
• Flexible commission model and investment plans for the convenience of clients.

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Unifi PMS Customer support

Unifi PMS gives priority to customer service and support first. They provide various types of support to the clients in order to serve them genuinely. Some of them are as follows:

• Provides call and Email support to solve queries of the clients.
• WhatsApp support provided by them as it is a famous model of communication nowadays.
• A relationship manager is also provided to the client in order to know anything about the investment portfolio.
• Besides a relationship manager, the clients can directly call to the fund manager also for 2 to 5 times a month to clear things and taking suggestions or to get information related to the portfolio.
• Issue resolving TAT is 14 working days.

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Unifi PMS Conclusion

Unifi Capital is a famous name in the field of PMS in order to provide a customized and thematic investment portfolio. It offers the investment plan according to the investment objective and financial strength of a client. The portfolio created by the firm is of selected stocks which has a record of continuous growth and profit.

Customers are fully supported by the firm in order to resolve their queries or any problem related to the portfolio. The strategies used by the firm is unique and provides the best return to the investors.

Hence, Unifi PMS can be one of your choices in order to start a portfolio investment.

In case you are interested in taking Portfolio Management Services from a top PMS provider, let us assist you in taking the next steps forward:

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Unifi PMS FAQs

Here are some of the most frequently asked questions about Unifi PMS you should ideally be aware of:

Who can offer PMS in India?

SEBI registered portfolio managers can only offer PMS in India.

Who are ideal investors for PMS?

Ideal investors for PMS are the ones who:

• Who wants to invest in assets like equities, Fixed income, and structured products.
• Want to get a highly personalized investment service.
• Long-term wealth creation with an expert suggestion.

What is the ideal time horizon for the equity investment portfolio?

It is for 12-18 months.

Where the fund of a client is invested by Unifi Capital?

It depends on the investment objective and risk-bearing capacity of a client.

Who does a client can call in order to clarify queries related to the portfolio?

A client can call the relationship manager in order to clear any confusion related to PMS and they are also allowed to call the fund manager directly in case of any specific requirement.

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