We have two types of services — Portfolio Advisory & Equity Advisory
Difference between Equity and Portfolio Advisory?
In Portfolio Advisory we advise on your entire portfolio you declare to us. We consider ourselves as the “trustee” for the portfolio you mandate us to advise. So we are responsible from day one for overall return, performance and safety of your invested capital. Here you can expect more communication which are personalized, email / SMS / phone based than web based.
In Equity Advisory we only give our recommendations on buy or sell of particular investment opportunities which we find our through our rigorous selection criteria and as per our investment process. We are only responsible here for our recommended stocks and not for your entire portfolio.
These are the main distinctions but quality of our commitment remains same in both cases.
Do we have any suggestion for you about what to choose?
Though we are committed to give our best to both type of services but if you have investible surplus of more than Rs. 10 lakhs we suggest you to adopt the Portfolio advisory service unless you are complementing your own research efforts and using multiple sources for inputs, ideas and advises. In case you go for Portfolio Advise, we can guide you on your entire portfolio and can also suggest you when to sit in cash than to remain invested. Also, it can offer you a complete peace of mind about your entire corpus without losing control and visibility about how your money is being invested unlike other cases (like PMS or Mutual Fund).
You can also do a cost benefit analysis based on our membership fees with the management fees charged by mutual funds or PMS and decide for yourself. Ultimately, you are in best position to decide what suits you best.
Suitable for anyone having Rs. 10 Lakhs or more to invest, High Net Worth Individuals, Non Resident Indians and Family Offices, Firms and Trusts
For those who have moderate to large-sized portfolios or corpus or funds but not sufficient research and stock picking bandwidths. Our offerings would be completely customized to suit your needs, requirements and objectives. Your cost of managing portfolio can also be substantially optimized.
You can expect Portfolio Advice at a very reasonable fixed fee without any compromise on quality; we offer a customized solution with highly effective management of your entire equity and mutual fund portfolio, based on your risk adjusted return expectations. Having been an investor for many years now, we have made multiple transitions during the course of our careers, and know how investment objectives, return expectations and priorities change with increase in size of the corpus. And these objectives and challenges vary with the portfolio objectives, return expectations and risk tolerance limits on one side and, challenges of diversification, asset allocation and market liquidity constraints on the other.
We are suitably experienced and prepared to understand your requirements.
You can check our fixed rate advisory fees vis-à-vis your present portfolio management costs and efforts – If you think it’s favorable and you can manage the execution part yourself, then please avail the service.
In case your require help in execution part, do write to us.
Steps to build your portfolio
We would give suggestions and advises for action only after understanding your goals and expectations. You can clarify those before proceeding for payment. We can interact by mail, phone, Skype or personal meeting. We need to understand your needs to serve you better.
If you have fund to invest: If you want to build portfolio based on your declared initial capital in form of readily available fund at your end, you can directly go to the membership page and pay the requisite membership fee based on your fund size. We will completely take it upon ourselves to ensure your money is deployed with care, foresight and prudence from day one. You just need to follow our advises and act accordingly but always clarify in case of any doubts. We would, over period, invest your corpus and guide you throughout the year at all appropriate times when actions are needed.
If you are having an existing portfolio and now wants it to be advised by us, please pay your membership fee as per the existing total value of your portfolio and then email your portfolio to “firstname.lastname@example.org” (Word, Excel or PDF files only)
For those who submit their portfolios, we will do the following in consultation with you (over phone / mail)
A comprehensive review of your entire equity and Mutual Fund portfolio (one time) to know your reasons for having the portfolio and your expectations in the medium to long term.
We would ascertain if the portfolio is well diversified, balanced, “risk minimized and return maximized” based on your risk profile taking into account factors like age, obligations, plans, uncertainty and volatility tolerance abilities and investment horizon.
We would inform you if there are any risks of permanent loss of initially invested capital in any of the businesses (i.e. stocks) you are holding. We firmly believe that we should be REASONABLY RISK INTOLERANT about your initial capital but REASONABLY TOLERANT about intermittent uncertainties or volatilities (not known risks) which play out in the stock market and business environment at not so irregular intervals.
But if we think that your portfolio should be better “Risk Optimized and Return Maximized” we would suggest you as such.
Ideally we would prefer to shift the entire portfolio to our suggested equities unless you have specific reasons to hold on to some stocks you chosen before. We would gradually re calibrate or re balance your portfolio in line with our recommendations. If immediate action is needed, we will suggest alternatives and if we consider a gradual shift to better businesses more optimal, we will help do that over a period of three months to a year, through the medium of our regular personalized interaction over our website, email or phone, as per your convenience. It would entirely depend on the nature and expectation you have.
We will review the underlying businesses, and your portfolio performance, once every six months.
We shall immediately inform you about any action needed to be taken on your portfolio.
What can you expect from us?
Complete guidance on your equity and MF investment portfolio in a personalized and customized way to suit your requirements. Larger portfolio management involves challenges and opportunities that are significantly different from those involved in case of a smaller portfolio, and requires very different and unique techniques to manage liquidity, capital preservation and return profiles.
Our portfolio advisory takes customized approach based on your initial investment, return expectation and risk profile. We don’t take same approach for all portfolios as we feel smaller portfolio and larger portfolio both can take unique advantages from market mechanisms, stock selection and asset allocation. Our Portfolio Advisory is customized and take your ideas, expectations and risk profile into consideration.
So, after becoming a member of our Portfolio Advisory, don’t expect ready made recommendations — We would take time to understand your expectations and then suggest you the appropriate actions throughout the year. Give us 3 – 7 days time from the day of your becoming a valued member. As mentioned earlier it would be more personalized.
All portfolio advisory members would get email and phone based support for more customized services apart from Web based update and support for generic purposes.
Equity Advisory For New / Small Investors (With fund up to Rs. 10 Lakhs)
Suitable for any individual who wants to create wealth through investing in Indian equities and probably has made some investments directly on the basis of ‘tips’ of brokers, friends or relatives, mutual funds or TV reports but is not sure of how to improvefurther and feels that there may be more structured ways to strive for higher returns patiently over a period of 1-3-5 years’ time. We can be your ideal guide, advisor and mentor. Apart from Core Investment Picks, we would also provide you with a few lucrative trading ideas on fundamentally good companies over the year as opportunity arises.
Minimum Corpus Ideally Needed to benefit from the service —- Though we are confident of the long term prospects and business quality of our investment recommendations,and also very hopeful about the expected performances of our opportunistic and trading bets,we feel that, in order to maintain abundant caution, unless you have pooled together an investible surplus of a minimum of Rs. 3 Lakhs, which you can invest for a minimum period of 1 – 3 years, it would not be suitable for you to pay the proposed advisory fees, as your advisory outflow adjusted returns may not be sufficient for us to suggest you to avail our services.
Though our aim is to generate high returns on every rupee you invest, assuming a fiduciary responsibility, we should not suggest you something which may harm your interest.
We shall only be happy and content if you gain handsomely and by a wide margin after paying our advisory fees.
Equity Advisory For High Net Worth Individuals (HNI) / Non Resident Indians (NRI) / Family Offices / Boutique Wealth Management Firms
Apart from all the points mentioned above, it may complement your present efforts of identifying the right opportunities to invest in, or can help minimize your research efforts. We don’t focus on ultra-microcaps and completely unknown companies and restrict ourselves to only high-quality or reasonably valued businesses above a threshold market capitalization which are investment worthy at the time of our recommendation for a 1 – 3 – 5 year period. We feel our coverage universe perfectly suits your requirement of good to great quality businesses, mispriced situations and occasional opportunistic bets.
We also understand that apart from return you look for stability of your portfolio, Our weightage to different recommendations would keep that in focus always.
What can you expect from us?
1) Recommendations to invest in above-average businesses at reasonable prices and average businesses at conservative prices with expectations of significantly large absolute returns over one to three years where we feel reasonably confident that chances of achieving such returns are more than 80%. We would mention how much of your portfolio should be allocated to a particular recommendation.
2) Few recommendations on opportunistic bets with 3 months to 1 year time frame to exploit opportunities arising from market volatility, irrationality and extreme pessimism or optimism which plague the market from time to time.
3) Stock recommendations would have specific guidelines for investors. Few recommendations may not be suitable for Retail Investors (Like accumulating low liquidity stock over a long period or an occasional call in the derivative segment) and few may not be suitable for Large or High Net Worth Investors (Like a trading or opportunistic call on a medium liquidity stock on a three months’ time frame).
4) Stock recommendations may not always come in regular intervals. There may be six stock recommendations in a month and there may be no recommendations for the next 3 months. If you spare a few seconds, you can understand the rationale…. Opportunities in the market don’t arise at regular, predictable intervals and we need to patiently wait for the right time to invest at the right price with a good margin of safety and reasonable patience to make the investment theme play out.
5) We would sincerely suggest our investors to focus on investments they already own with the help of our recommendations than always look for new ideas. If you get extra investible money in the interim, do invest in one of the stocks you already own than look for new opportunities. We will guide you at right moments as we are always looking for better opportunities for you.
6) Semiannual updates (in June and December in most cases) about the performance of the businesses where you invested your hard earned money.
7) Immediately update, inform and provide suggestions for you to act on(sell / partly sell / invest more), in case we feel that there is any change in the underlying assumptions or the performance of the business is below or above our initial expectations.
8) Immediately inform you in case we feel there is a better option available in another business which can replace your existing investment. Our primary responsibility is to ensure that you maximize your wealth as safely as possible.
9) You can get access to all past and current recommendations and would expect to get around 15 to 25 recommendations during the course of a year. It includes both investment grade and opportunity driven advises for buy or sell. This number is tentative and may vary on both sides depending on market situations and our level of conviction about the positive outcome.
10) A scorecard of performance of the stocks we recommended on six monthly basis. For return calculations we would include the dividends earned during the holding period.
11) We don’t study or recommend ultra-microcap or penny stocks unless the opportunity is extraordinary and compelling, and we are reasonably confident that it’s a real and actionable opportunity.
Not for whom?
Not for those who are looking for fancy voluminous research reports …
Not for those who are looking for fancy voluminous research reports with lots of slides, charts, graphs, tables etc. Our recommendations would be short and crisp with specific advice on buying, selling and asset allocation. We find that such things comprise a wastage of quality executive time and are not of any particular use to any investor who needs a guidance for future action. Our investment recommendations would be short and without detailed research report.
However, all our recommendations are backed by solid background work and deep analysis. So, even after receiving our recommendations, if someone looks for further clarity, we can always try our best to satisfy them as best we can. We are just an email or a phone call away.
If all the above points suits you, please join in …
Not for those who want to run a highly diversified portfolio without proper asset allocation …
Not for those who want to run a highly diversified portfolio without proper asset allocation in very favorable risk adjusted return opportunities. In these cases, possibly after all efforts and locked up investments, your returns may not be satisfactory. If you invest only 1% of your capital in a great business, even if your capital grows 10 times in 5 years, your fortune would hardly change by any significant degree. And getting a hundred great investing ideas at the same time is impossible (if anyone says he knows the tricks, please be careful). So, if you think that you are comfortable with variable asset allocation in concentrated portfolio of at most 20 stocks with the sole aim of generating above average market returns, you are welcome. Be assured that it’s our responsibility to suggest you the asset allocation.
Not for those who want new stock ideas at frequent intervals …
Not for those who want new stock ideas at frequent intervals irrespective of broad market trends and think an Investment Adviser’s performance is measured by the number of new stock recommendations made. Instead, if you think, an Investment Advisor’s performance should be measured only on the basis of what absolute returns your money generates over a 1- 3 – 5 years’ period without taking blind or excessive risks, then our objectives are aligned. So, if you think that partially owning a few good growing businesses is a great idea, and do opportunistic trading only once in a while when risk vs. return profile is extremely favorable then you are most welcome. Our objective is to generate market beating absolute returns on every rupee you invest and not to churn out stock ideas more frequently than there arise real and actionable opportunities.
Not for anyone looking for intra-day or very short term trading opportunities …
Not for anyone looking for intra-day or very short term trading opportunities, futures and/or options strategies or who wants to see their stocks zooming within days of purchase and feels stressed looking at the volatility of stock prices. If you can overcome these impulses, you are most welcome here. Read more….
Looking at the history of capitalism, globally, 99% of people have failed to create wealth by trading and / or investing in mutual funds. Moreover, only two types of people have been able to create wealth honestly: Entrepreneurs and Long Term Investors (and a new third category —- employees in companies who owned cheap stock options). So, if you trade for the excitement and fun and the ‘kick’ and the ‘high’ you get out of it, then Best of Luck. Our alternate suggestion for you is—- You can always keep aside a portion of your money for spending in casinos!! But please keep a significant portion of your investible surplus for the purpose of growing your wealth. If you think that you can follow this disciplined course of action then you are welcome. We would provide you trading ideas when the situations are extremely favorable in quality businesses.
However, all our recommendations are backed by solid background work and deep analysis. So, even after receiving our recommendations, if someone looks for further clarity, we can always try our best to satisfy them as best we can. We are just an email or a phone call away. If it suits you, please join in…