Prudential ICICI Asset Management Company(AMC) is a joint venture between UK insurer Prudential and ICICI. With over Rs 4,900 crore in assets under management, it is one of the largest private sector mutual funds in the country. The company has a complete portfolio of mutual fund schemes with at least one catering to every asset segment. Most of its fund schemes have been above average performers.
Recently, the asset management company added portfolio management services (PMS) to its business operations. Currently , the company manages around Rs 25 crore under PMS. The company expects to increase its asset size significantly in the coming years. Shailendra Bhandari, managing director, Prudential ICICI AMC spoke to Indira Vergis about PMS and the state of the equity markets.
What advantages do PMS products offer compared to mutual funds apart from better service, ?
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At the outset, let me say that PMS is not necessarily for the retail investor. It's for high net-worth individuals who are looking for a tailor-made package that can suit certain requirements and objectives.
When you invest in a mutual fund, you can't give any specific instructions or say that you are looking for a certain level of returns in a certain period of time.
Also, with mutual funds, managers look at the index as a benchmark and try to beat it. In the case of PMS, an investor can look at absolute returns.
For example, he can say that he wants a 30 per cent return. And there is a higher degree of interaction. The power of PMS is that it can be tailor-made to meet an investor