portfolio management serivces
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Portfolio Management Services
Presented by :- Mr. Vishal A. Narvekar
Agenda Introduction Types of PMS How to invest in an PMS account How to open an PMS account Portfolio Management Services Charges & fées PMS Company:-Motilal Oswal Financial Services Management Schemes and plans Balance sheet Corporate governance Ratio Conclusion
Meaning Portfolio Management Services account is an
investment portfolio in Stocks, Debt and fixed income products managed by a professional money manager, that can potentially be tailored to meet specific
investment objectives.
Introduction In simple words, a portfolio management
service provides professional management of your investments to create wealth.
Portfolio Management Service is a tailor made professional service offered to cater the investments objective of different investor classes.
The clients can be Individuals or Institutions entities with high net worth.
Clients have the freedom to tailor portfolio to address personal preferences and financial goals
Portfolio managers may oversee hundreds of portfolios
As per SEBI guidelines, only those entities who are registered with SEBI for providing PMS services can offer PMS to clients
No separate certification required for selling any PMS product
As per the SEBI guidelines, the minimum investment required to open a PMS account is Rs. 5 lacs
However, different providers have different minimum balance requirements for different products
Types of PMS Discretionary PMS –
Where the investment is at discretion of the fund manager & client has no intervention in the investment process.
Non-Discretionary PMS – Under this service, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the investor. However the execution of the trade is done by the portfolio manager.
How to invest in an PMS account There are two ways to invest in PMS :-
• Through Cheque payment• Through transferring existing shares held by the
customer to the PMS account.
How to open an PMS account Customer will need sign a few documents like–
• PMS agreement with the provider, • Power of attorney agreement, • New DEMAT account opening format
Documents to be provided-• Pan,• Address proof ,• Identity proofs are mandatory
PMS for NRI’s NRIs can invest in a PMS NRI can invest through Non-Resident External
(NRE) account or Non-Resident Ordinary (NRO) account
The documentation required for an NRI • A passport copy, • The visa or residence permit of the NRI,• A set of 2 photographs
A checklist of documents is provided by each PMS provider
Portfolio Management Services Charges & fées
Service fee:-• Entry Load• Management Charges• Profit Sharing
Other charges • Custodian Fee• DEMAT Account opening charges• Audit charges• Transaction brokerage
PMS companyMotilal Oswal Financial Services
Introduction Motilal Oswal Securities Ltd. (MOSL) was founded in
1987 as a small sub-broking unit Now it is India’s leading PMS Service Providers, with
Assets under Management of over Rs.1300 crores Motilal Oswal PMS has one of the largest active
accounts (more than 5,000) on PMS Platform as on 31st May 2012
Motilal Oswal PMS has active clients in 138 different cities
Motilal Oswal has 1500 plus employees
Management
Motilal OswalChairman and Managing
Director
Raamdeo AgrawalJoint Managing
Director
Nitin RakeshCEO, Asset Management
Business
Srikanth IyengarCEO, Principal Strategies Group
Rajat RajgarhiaHead, Research
Ajay Kumar MenonChief Operating Officer
Sameer KamathChief Financial
Officer
Harsh JoshiHead, Corporate Affairs &
Whole-time Director (MOSL)
Sudhir DharHead, HR &
Administration
Ramnik ChhabraHead, Marketing
Schemes and plans Value Strategy Next Trillion Dollar Opportunity Strategy Invest India Strategy Bull`s Eye Strategy Focused 4 – A Flexi Cap Strategy Focused 5- A Contra Strategy
Corporate governance Motilal Oswal Financial Services ensures
good corporate governance through :-
• Board of director • Committees of the board• External auditors
Board of director Composition Board of Directors :
The Board currently consists of 6 members with 50% composition of Independent Directors
Independent directors plays important role of governing & controlling other board of directors
Independent Directors
Balkumar AgarwalMr Agarwal a is retired IAS officer (1967 batch). He has served as Additional Chief Secretary, Secretary
(Housing), Secretary (Transport), Secretary (Industries) to the Government of Maharashtra.
Praveen TripathiMr Tripathi is the CEO of Magic9 Media & Consumer Knowledge Pvt Ltd. He is the Chairman of the National Consumer Classification System Committee and has also worked with Pidilite, Hansa Consulting, Zenithmedia, Starcom/Leo Burnett etc.
Vivek ParanjpeMr Paranjpe is a consultant in HR & strategic management with companies like Reliance Industries, Blackstone etc. He was the Director, HR Operations at HP Singapore, and has worked with Hotel Corp, Johnson & Johnson,Hindustan Lever etc
Board meetings Number of Board Meetings
The Board of Directors met four times during the year ended 31st March, 2012, on 30th April, 2011, 22nd July, 2011, 17th October, 2011 and 16th January, 2012.
The maximum gap between any two meetings should not more than four months
External auditors External auditors play a role in providing an
independent assessment of MOFS’s financial position
Auditors’ to Motilal Oswal Financial Services • M/s. Haribhakti & Co.
Establishment of committees In order to insure good corporate governance
Motilal Oswal Financial Services has six major Board level Committees :-
• Audit Committee• Shareholders / Investors Grievance Committee• Remuneration / Compensation Committee• Nomination Committee• Risk Management Committee
Balance sheetParticular As at 31-Mar-12
(Rs in Millions)As at 31-Mar-11(Rs in Millions)
I. EQUITY AND LIABILITIESShareholders’ FundsShare Capital 145.12 144.42
Reserves and Surplus 5,439.32 4,981.33
5,584.44 5,125.75Non-Current LiabilitiesDeferred Tax Liabilities (Net) 34.76 23.04
Long-term Provision 1.66 0.89
36.42 23.93Current LiabilitiesOther Current Liabilities 510.10 84.44
Short-term Provision 146.99 276.17
657.09 360.61TOTAL 6,277.95 5,510.29
Particular As at 31-Mar-12(Rs in Millions)
As at 31-Mar-11(Rs in Millions)
II. ASSETSNon-Current AssetsFixed AssetsTangible Assets 1,633.07 168.10
Capital Work-in-Progress --- 1,204.86Non Current Investments 987.02 832.63
Long-term Loans and Advances 138.05 126.782,758.14 2,332.36
Current AssetsInventories --- 2.88Cash and bank balances 11.60 16.08Short-term Loans & Advances 3,454.73 3,158.75Other Current Assets 53.47 0.21
3,519.81 3,177.93TOTAL 6,277.95 5,510.29
RatioParticular Value
Face Value (Rs) 1
Price of the share (Rs) 120.00
Return On Capital Employed(%)
12.01
Dividend Payout Ratio(%) 34.96
Earnings Per Share(RS) 3.88
P/E Ratio(no of times) 44.07
Dividend Yield (%) 1.23
Current Ratio 5.17
Long Term Debt Equity Ratio ---
Debt Equity Ratio ---
Operating Profit Margin(%) 70.05
Gross Profit Margin(%) 68.05
Net Profit Margin(%) 68.69
Debtors Turnover Ratio(no of times)
---
Financial Charges Coverage Ratio(%)
75.85
Conclusion
WebliographyWebsite Link
money control .com http://www.moneycontrol.com/india/stockpricequote/financegeneral/motilaloswalfinancialservices/MOF01
motilaloswal.com http://www.motilaloswal.com/Financial-Services/Products-And-Services/Portfolio-Management-Services/Content/C42/Tab52/
business.mapsofindia.com http://business.mapsofindia.com/finance/top-asset-management-companies.html
tflguide.com http://www.tflguide.com/2011/03/portfolio-management-services-in-india-pms.html