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IIFL Discretionary PMS

OVERVIEW

IIFL is a diversified financial services player with presence in Consumer Credit, Housing Finance, Capital Market, Wealth Management, Institutional Equities, Investment Banking, Insurance & Mutual Funds .

IIFL Discretionary Portfolio Management Services is an investment vehicle which capitalizes on opportunities in the market. IIFL Discretionary PMS leverages on IIFL’s award-winning research.

 

Investment objective

The main objective of the Portfolio is to

  1. Generate capital appreciation.
  2. Medium to long term perspective.
  3. Emphasis on fundamentally sound, well researched companies perceived to be undervalued from the point of view of their medium to long term growth prospects.
  4. Focus will be on medium to large capitalisation companies.
    1. Companies which have a proven track record or earning capability, quality management, leadership status in sectors or potential to achieve such status.
    2. Companies which have potential to deliver growth over the long term. 

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Investment Philosophy and Strategy

  1. Opportunity : Invest in businesses operating in sectors / industries that have huge addressable market and are growing at a faster rate than the economy. Also, the growth of the businesses / sectors should sustain over longer period of time.
  2. Longevity : Identify businesses that are scalable and have sustainable competitive advantage through entry barriers, such as technology and processes, access to natural resources, brands and distribution network, and have visibility of earnings for next 2-3 years.
  3. Scalability : Scouting business with high operating leverage and have traction for high return on equity.
  4. Management : Invest in businesses where the management has both intellect and integrity, and have demonstrated innovative thinking. Also, seek out leaders whose objectives are aligned with shareholders and whose ambitions are in line with ground realities.
  5. Value Accretive : Focus on businesses that consistently generate returns better than their cost of capital, derive significant return on incremental capital and produce positive free cash flows from their operations
  6. Emerging Themes : Focus on Identifying Emerging Stocks / Sectors which have potential to deliver growth over the long term. 

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FAQs

Q. What is PMS-V?

A. The objective of PMS-V is capital appreciation through long term equity investing. While aim is to outperform the benchmark in the long run, the idea is not to chase weekly or monthly performance. The discipline of buying quality stocks and remaining invested for the long term with a diversified portfolio will never be compromised.

Q. What type of investor should invest?

A. This product is ideal for investors with high risk appetite to generate long term equity returns.

Q. Who can sign up for PMS?

A. The following investors are eligible to invest through PMS:

  • Resident Individuals
  • Hindu Undivided Families (HUF)
  • Body corporate (Private/Public)
  • Banks/Institutional Investors
  • Trust (Registered)
  • Partnership Firms or any other eligible investor

Q: Can the client transfer stock instead of cash?

A: Apart from cash, the client can also hand over an existing portfolio of stocks, bonds or mutual funds to a Portfolio Manager that could be revamped to suit his profile. However the Portfolio Manager may at his own sole discretion sell the said existing securities in favour of fresh investments.

Q. What are the advantages/benefits of this product?

A: PMS enables the passive investors to take the services of a professional portfolio manager. Investments and wealth creation requires specialized & deep understanding of financial markets. Hence it is always advisable to trust a professional for creating wealth for you.

Q: How is PMS different from a Mutual Fund?

Features PMS Mutual Fund

Management

Provide ongoing, personalized access to professional money management services

Provide access to professional money management services

Customization

Portfolio can be tailored to address each investor's specific needs

Portfolio structured to meet the fund's stated investment objectives

Ownership

Investors directly own the individual securities in their portfolio

The trustee own shares of the fund and cannot influence buy and sell decisions

Minimums

Significantly higher minimum investments than mutual funds. Minimum investment – Rs. 25L

Minimum Investment – Rs. 5,000

Flexibility

PMS products can be customized to meet special customer requirements

No customization possible

 

Q. What is the tax treatment in PMS investment?

A: The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his/ her tax liabilities.

Q: Which forms need to be filled by the client?

A: The client needs to fill four forms, namely: PMS Account Opening Form, CDSL Demat Account Opening Form, KRA (in case not registered) and the Term Sheet which contains the fee structure details. If the client already has a KRA either with IIFL or another broker, then the client does not need to fill the KRA form but has to provide the letter sent by the KRA as a proof

 

Other Details :

Mode of payment By fund transfer/cheque and/or stock Transfer

Investment Horizon

Medium to Long Term (2 Years +)

Benchmark

CNX Nifty50

Account Activation

Next business day of clearance of funds

Portfolio Valuation

Closing NSE market prices of the previous day

Operations

Separate demat and bank account with POA and NAV reporting

Reporting

Yearly Audited Statements

 

Monthly holding statements

Servicing

Dedicated relationship managers

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Awards & Recognition