Portfolio Management Services are ideal for High Net Worth Individuals or Institutions who wish to opt for personalized management of their finances. A team of expert professionals conduct extensive research on markets to provide a customized solution for achieving unique investment objectives. This ensures the optimal selection of investment opportunities within an asset class and active monitoring for optimized results. Investors have the access to track their portfolios at all times.

Karvy offers PMS across two asset classes – Debt and Equity


Multi Cap Advantage PMS - the right time to allocate.

“The strategy of buying what's in favor is a fool's errand, ensuring long-term underperformance. Only by standing against the prevailing winds - selectively, but resolutely - can an investor prosper over time. But for a while, a value investor typically underperforms” – Seth Klarman

The current market conditions are a real litmus test for value investors as they never found it so difficult to out-perform the market as they have in the recent months.

We started 2018 on a tricky wicket:

  • Volatility was the call of the day
  • We saw sharp corrections in stocks across market capitalizations
  • The worst hit were midcap and small cap stocks.
Index 1 week 1 month YTD 1 year
Nifty 50 -4.17% 1.02% 1.29% 22.03%
Nifty Midcap 100 -7.29% -8.27% -6.68% 22.99%
Nifty Smallcap 100 -8.41% -11.54% -8.57% 26.41%

All data as on 5th Feb 2018

This type of volatility would continue over the next 12 to 18 months as India is faced with series of factors both local and global.

  • Forthcoming 4 State elections
  • General elections
  • Crude oil Prices
  • Interest rates locally and US interest rate
  • Corporate earnings catchup

Over longer term large cap stocks provide consistent / stable returns as compared to Mid / Small cap stocks.

In uncertain markets like what we are envisaging in the next 12-18 months one should be shift investment bias towards large cap stocks.

In uncertain markets it is also advisable to create a portfolio hedge.

IIFL Multicap Advantage PMS is the only PMS in the country offering :-

  • 1) Large cap biased portfolio of 20-25 selected stocks
  • 2) 100% hedge of the portfolio through index put option.

We continue to remain bullish on the long term potential of building substantial wealth through equity investments. Short to medium term volatilities provide us interesting opportunities to capture and add alpha to the portfolio returns.

While equity markets will still outperform other asset classes, given the events over the next 12-18 months on should shift allocations in favour of Large cap stocks with hedge option .

Happy Investing!

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