HNI Investments

Portfolio Management Services(PMS)

When one invests in a PMS, the investor owns individual securities unlike a mutual fund investor, who holds units of a scheme launched by Mutual Fund AMC’s. Difference between a Portfolio Management Services and a Mutual Fund for an investor are listed below:

  • Concentrated Portfolio.
  • Portfolio can be tailored to suit the needs of investor.
  • Investors directly own the stocks, rather than the fund owning the stocks.
  • Administration of taxation is different in Portfolio Management Services and Mutual Funds.

There are broadly two 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.

Majority of PMS providers in India offer Discretionary Services.

Alternate Investment Funds (AIF’s)

Alternate Investment Funds (AIF’s) are investments primarily done by HNI’s or institutional investors into asset classes other than stocks, bonds and cash.

AIF’s usually include Real Estate, Private Equity, Hedge Funds and Venture Capital funds or Investments using strategies that go beyond traditional ways of investing, such as long/short or arbitrage strategies. Because alternatives tend to behave differently than typical stock and bond investments, adding them to a portfolio may provide broader diversification, reduce risk, and enhance returns.

Money Compound is empanelled with exceptional third-party AIF providers so that investors can diversify their portfolio and benefit from their high-return opportunities in the long- run.

Private Equity

Often unfairly reviled, and frequently misunderstood, private equity differs from all other asset classes in various important respects, not least in the nature and timing of its returns, which require a whole new approach for those reared on more traditional investments such as bonds and shares.

Private equity is a critical asset that has become widely accepted as a key component of investment portfolios. Its major virtue is that it delivers attractive risk-adjusted returns with fairly low correlation to equities and bonds.

It avoids frequent mark-to-market trauma while business growth generates wealth over 3-5years.

It has a stable compounded returns as against the need to churn portfolio in public markets to achieve similar returns.