Concentration and Focus brings high performance in the portfolio
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High performance investing is all about Focus. MFs are quite diversified and so offer less volatile returns but at the cost of compromising the potential for high performance which a focused and concentrated strategy could bring. PMS does this, as its crafts and keeps a concentrated & focussed basket of 15 – 25 well-researched companies with low churn. The focused approach of PMS generates superior long term performance but comes at the cost of more volatility.
That is why PMS is meant for informed investors who really want money to work harder, but clearly, have a long term horizon & are not bothered by short to medium-term volatility. Since PMS works with a concentrated approach, there is no compulsion to churn a stock that is performing irrespective of its rising weight in the portfolio over the years. What matters to the Portfolio Management Service Manager is the expected corporate earnings and growth potential in the business. Unlike this, in mutual funds, beyond a point, at times fund manager may be forced to let go of a performing stock to cut its rising weight, as it leads to a high concentration which is not desired, and hence great companies may move out of the portfolio.
Alternate Investment Funds(AIFs)are one of the most advanced forms of investment vehicles available to investors in India. Popular Alternative Investment Funds are across Long Only Equities, Long Short Hedged Equities and Unlisted Private Equities. AIFs are for those set of the ultra-high net worth of investors, who are at the mature phase of their investing lifecycle and want to invest in a privately managed portfolios. In India, there are three categories of Alternative investment funds segregated by the nature of investments. Alternatives Investment Fund Category 1 invests in angel and seed fund type of investments. PMS AIF WORLD Services is conveyed by experienced and proficient store chiefs sponsored by a sound research group; PMS AIF supervisor has the adaptability of making the venture according to his own speculation belief system; In contrast to a shared reserve chief, the PMS AIF service doesn't have a lot of requirements on facing an excess of challenges; Bes...
Alternate Investment Funds in India are of 3 categories, CAT 1 – which invest at a venture level CAT 2 – which invest as private equity CAT 3 – which invest in the listed public equity In practice a lot of the asset management companies use the AIF platform to manage conventional long only strategies in equity to combine the operational ease of MFs with the customization of any PMS. The Minimum investment in any AIF is 1cr. The space is new and evolving. Some of the best known AIFs in India in long only equities so far are Sunil Singhania ( Abakkus Asset Manager), Vikas Khemani ( Carnelian Capital ), Kenith Andrade (Old Bridge Capital), ICICI Pru CompAct AIF, Nippon India Alternate Investment Funds, Edelweiss Asset Management, Avendus Asset Management. In long only AIFs the taxation is done at the fund level as per capital gains slabs and returns are shared net of all expenses and taxes to the investor. AIFs provide a lot more flexibility to fund managers in...
Abakkus Emerging Opportunities fund is a Long only CAT 3 AIF offering from Abakkus Asset Managers which was floated by Sunil Singhania in the Year 2019. Sunil Singhania is a well-known name and comes with more than 2 decades of experience in Fund Management. He had successfully established the asset management business of Erstwhile Reliance AMC. The name Abakkus is inspired by the English word, Abacus, which refers to a “simple instrument used for computing”. Ideology of Abakkus Asset Managers is to Keep things simple, believe in the basics, focus on the fundamentals and numbers. Abakkus Asset Managers has launched 2 Schemes in the Year 2019, i.e. Abakkus Growth Fund 1, which is a Multi Cap Portfolio Management Services was closed for subscription by end of June 2019. Abakkus Emerging Opportunities Fund 1 was incepted on 6 th July, 2019, and his the second offering from Abakkuswhich is a Small Cap Space. Both are CAT 3 Long Only Funds and follow Closed-Ended Structure. Aba...
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