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Sharekhan Portfolio Management Services Review

Published on Wednesday, December 18, 2019 by Chittorgarh.com Team

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Sharekhan Portfolio Management Services Review

Portfolio Management Services (PMS) is one of the key offerings of Sharekhan. Sharekhan PMS is designed to assist HNIs (High Networth Individuals) in professionally managing their investments and creating wealth. In this article, we will look at the Sharekhan PMS services, understand its features, types of products, and benefits, etc.

Sharekhan PMS Review

Sharekhan PMS is a range of professional services aimed to assist HNIs in realizing their investment goals. In this service, a team of experts from Sharekhan create your portfolio, monitor and manage it. The portfolio is created by understanding your investment goals and risk tolerance. The portfolio is a mix of stocks, mutual funds, and debt instruments chosen in various proportions as per a customer's risk tolerance and returns expectations.Sharekhan PMS- Key Features

  • Open to individuals, HUFs, companies and NRIs
  • Minimum Investment Amount- ₹25 lakhs
  • Offer both discretionary as well as non-discretionary PMS services. In the discretionary portfolio management services, the investment decisions are taken by the portfolio manager. Under non-discretionary services, investment decisions are taken by the client
  • Fortnightly and Quarterly reporting
  • Both fundamental and technical PMS products are available
  • Facility to book profits (partially or wholly) anytime

Sharekhan PMS Advantages

  • Disciplined and professional approach to investments
  • Maximizing returns while minimizing risks
  • Active monitoring by an expert team to optimize returns
  • Transparency in fees and commissions
  • Periodic performance reporting to client

Sharekhan PMS Charges

Sharekhan PMS charges involve 3 types of fees-

1. Annual Maintenance Charges (AMC)- It is an annual recurring fee to be paid. It varies from product to product and is charged as a percentage of the total portfolio value.

2. Brokerage- It is a general brokerage fee paid by the customers while buying and selling of various securities.

3. Profit-Sharing- Sharekhan will charge a percentage of the profits earned annually from your portfolio. The profit-sharing fee is charged once you cross the hurdle rate i.e. the minimum profit that a Portfolio must earn before it can charge a profit-sharing fee. For example, the profit-sharing charges for 'Sharekhan Prime Picks' is 20% after 18% hurdle rate. So, a customer will be charged only if the portfolio earns more than 18% annually. If the returns are lower than that then the profit-sharing fee will not be applicable.

Sharekhan PMS Portfolio Products

Sharekhan PMS Services includes both fundamental and technical products.

1. Fundamental- The fundamental products invest in assets which have strong fundamental research. The key elements of this approach are:

  • Bottom-up stock selection 
  • In-depth, Independent fundamental research 
  • Investment in high-quality companies
  • Investments are made based on multiple valuation measures and long-term vision

There are 4 different fundamental PMS products available-

  1. Prime Picks
  2. Sharp
  3. Diversified Equity Portfolio
  4. Wealth Optimizer

Sharekhan Prime Picks PMS

Investment Philosophy

This portfolio follows a dual investment approach with 2 distinct portfolios- Quality portfolio and Alpha Portfolio in one scheme.

Suitable For

Ideal for all investor types

Benchmark Index

NSE Nifty

Minimum Investment

₹25 Lakhs

Allocation

3 plans as per investor's risk tolerance

Charges

  • AMC 2% of Corpus + taxes
  • Brokerage: 0.50% 
  • 20% profit sharing after 18% hurdle rate

Note- The hurdle rate is the minimum profit that a PMS must earn before it can charge a profit-sharing fee.

Sharekhan PMS Returns- Prime Picks

Duration

Rate

1 Month

1.3 %

3 Months

11.2%

6 Months

10.1%

1 Year

21.5%

Note: 

  1. Net of Quarterly AMC Fees
  2. As on November 30, 2019

Sharekhan Sharp PMS

Investment Philosophy

This portfolio focuses on creating wealth by taking concentrated positions in select stocks with long term investment horizon.

Suitable For

Ideal for investors with a medium to high-risk tolerance.

Benchmark Index

NIFTY

Minimum Investment

₹25 Lakhs

Allocation

2 plans as per investor's risk tolerance

Charges

Plan 1

Annual Fee- 2%

Profit-Sharing- 20% above the hurdle rate of 15%


Plan 2

Annual Fee- 2.5%

Profit-Sharing- 20% above the hurdle rate of 25%

Note- The hurdle rate is the minimum profit that a PMS must earn before it can charge a profit-sharing fee.

Sharekhan Diversified Equity Portfolio PMS

Investment Philosophy

This portfolio focuses on to outperform the benchmark indices by investing in quality companies to build a well balanced diversified portfolio.

Suitable For

Ideal for all investor types

Benchmark Index

NIFTY

Minimum Investment

₹25 Lakhs

Allocation

NA

Charges

NA

Note- The hurdle rate is the minimum profit that a PMS must earn before it can charge a profit-sharing fee.

Sharekhan PMS Returns- Diversified Equity Portfolio

Duration

Rate

1 Month

1.4%

3 Months

12.2%

6 Months

2.4%

1 Year

9.2%

2 Years

3.7%

3 Years

11.7%

5 Years

8.1%

Note:

  1. Net of Quarterly AMC Fees
  2. As on November 30, 2019

Sharekhan Wealth Optimizer PMS

Investment Philosophy

This portfolio focuses on undervalued growth stocks and automated decision-making system performs fundamental analysis and assigns a fair value to each stock on the basis of reported financial performance.

Suitable For

Ideal for investors with a medium to higher risk tolerance

Benchmark Index

NIFTY

Minimum Investment

₹25 Lakhs

Allocation

NA

Charges

NA

Note- The hurdle rate is the minimum profit that a PMS must earn before it can charge a profit-sharing fee.

2. Technical- The technical products include investing by trading in Futures and Options based on proprietary trading tools, automated or otherwise, or a combination of both or any model sub-portfolios. Key elements of technical research include-

  • Studies historical data of price, volume, open interest and volatility to understand the underlying trend
  • Assess the probability of the trend
  • Discover entry and exit points based on such analysis

There are 2 different Technical PMS products available

PMS

Suitable For

Investment Philosophy

Index Future

  • Suitable for long-term investors with a high-risk appetite.

It involves going long (buying) or short (selling without holding) on Nifty Futures based on predictions from a back-tested automated model.

Trailing Stops

  • Suitable for investors looking for regular income with a high-risk appetite.

This strategy involves going long (buying) or short (selling without holding) on Stock futures. Returns are paid out monthly.

Conclusion

Sharekhan PMS offers well-diversified choices to investors depending on their investment goals and risk tolerance. The various PMS products offer investors the flexibility to invest as per their needs. Sharekhan has a well-established research division with an excellent reputation in the market. A strong research team helps in offering good PMS performance to the clients.

FAQ's

  1. 1. Who can open a Sharekhan PMS account?

    The sharekhan PMS services are available to all resident and non-resident Indians (NRIs), trusts, associations and corporate bodies. The minimum investment required for sharekhan PMS services is Rs 25 lakhs.

    Discuss this question

  2. 2. Can NRIs avail Sharekhan's Portfolio Management Services?

    Yes, Non-Resident Indians (NRIs) are allowed to avail sharekhan PMS services. To avail PMS services, NRIs need to open a PIS (Portfolio Investment Scheme) account as required under RBI guidelines. All the transaction done in the PMS will be reported to the RBI by Sharekhan on a daily basis.

    Discuss this question

  3. 3. What is the minimum investment account required to open a Sharekhan PMS account?

    The minimum investment amount required for availing Sharekhan PMS services is Rs 25 lakhs. The fees charged for the services will be above the investment amount.

    Discuss this question

  4. 4. Do I have to stay invested in Sharekhan Portfolio Management Services for a fixed time?

    No, there is no lock-in period in sharekhan PMS services. You can withdraw, fully or partially, as per your desires.

    Discuss this question

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