Investors come to a PMS for many reasons, and not just for better returns. Sometimes it is about simplifying complexity, protecting a family legacy, planning for loved ones, or freeing up time. These real-life stories from our clients that illustrate the diverse ways they have used PrimeInvestor PMS to solve unique financial and personal challenges. Please note that client names have been changed to preserve confidentiality.
A novel marriage gift
“Like all parents, I had Rs 50 lakh set aside to buy jewellery for my daughter as a wedding gift. Her marriage is fixed for later this year. But then I thought, why not give her a gift that can compound with time and is more hassle-free?”
This is what prompted Mr Seetharaman, a Chartered Accountant, to explore Prime Velocity – our stocks strategy as a wedding gift. Though he himself is a seasoned investor who has been managing a stock portfolio for long, he saw two advantages to opting for a PMS structure for his daughter Soujanya.
One, after her wedding, her portfolio would be held in her own name with PrimeInvestor becoming accountable for its performance, rather than him shouldering this responsibility. Two, should he face any health setbacks, he wouldn’t have to worry about the management of his daughter’s wealth.
“I am not a fan of jewellery as an investment. First, you incur locker charges and need to check on it every year. Then, when you want to sell the gold, you incur costs on wastage, losses etc, which eat into the return. A stock portfolio is much more transparent and liquid”. That’s how Soujanya became one of our clients for Prime Velocity.
Diversifying from RSUs
When 35-year-old Saurabh enquired about PrimeInvestor PMS, he had only about Rs 30 lakh in his portfolio, well short of the Rs 50 lakh minimum to start his PMS journey.
But a meeting with him revealed that his personal portfolio was dwarfed by his holdings in Restricted Stock Units (RSUs) he held as part of his employment contract with a US tech giant. His RSU holdings were worth Rs 1.5 crore currently.
But the stock had crashed from $300 to $40 over the last three years thanks to the US SaaS wipeout. Having faced this wealth erosion, he was keen to ensure that his personal net worth was not so dependent on his employer’s performance and wanted to diversify. He wanted to liquidate part of his RSUs to invest in a diversified portfolio of Indian stocks outside the tech sector. Prime Velocity, our stock-only PMS seemed an ideal fit.
We promised to research the US tech stock and flag better levels to trim exposures in a phased manner. He has kicked off his liquidation plan to reduce concentration in his RSUs and has already begun his investment in Prime Velocity.
Financial security for a homemaker
“I am a full-time stock trader and investor, and I don’t really need your service” is how 40-year-old Ashish kicked off his call with our advisor.
“But I am thinking of my wife who is a homemaker and knows nothing about markets or finance. I was thinking about how she will untangle my investments or manage all of them, if something were to happen to me. That’s why my wife is also on this call”, he said, introducing her.
Further questioning revealed that he juggled three demat-cum- trading accounts and held mutual funds and ETFs across two platforms. While he had nominations in place, his worry was whether his wife would be able to track down his holdings and deal with all the legal formalities and paperwork required for transmission, if he was not around.
We took him through our three strategies and he settled on Prime Synergy, our stock-plus-mutual funds strategy, as he was looking at a 10 year plus horizon to preserve and create wealth for his wife.
He decided to close two of his three demat accounts while holding on to one for trading. He also moved his mutual fund holdings into his new demat account under PrimeInvestor PMS, in which his wife was named as his sole nominee.
“I deliberately didn’t go to one of those large wealth management outfits because they wouldn’t really give personal attention to my wife. Here, I can be sure that she can reach out to you folks and visit you to get the transmission process done smoothly”, he said.
Protecting a legacy
“I have no sources of income except farming my ancestral land. That’s not a problem. The coconut and areca plantations generate enough income for my living. But it is my stock portfolio that is giving me sleepless nights”.
That’s how Mr Vijaykrishna an AP-based investor, introduced himself when we reached out to him. On looking into his portfolio, we found that his worries were well-founded. While Vijaykrishna had built up investments of about Rs 1 crore from his own savings, he had inherited stock holdings worth Rs 1.4 crore from his father, who passed on recently. And the worry was, his father held all his wealth in just two stocks worth Rs 72 lakh and Rs 68 lakh.
Even at the first glance, one of those stocks looked extremely dicey for a portfolio of this size. It was a microcap auto component maker with a cyclical business and low institutional ownership. What’s more, the stock had shot up from Rs 150 levels to Rs 1500 in the last five years, on the back of a massive PE re-rating. The other stock was a capital goods MNC with better fundamentals but still posing a large concentration risk for this investor.
We advised him to derisk his portfolio as quickly as he could, by paring holdings in the MNC and completely exiting the auto component microcap. This wasn’t easy. The stock was so illiquid that he couldn’t exit it all it once. After checking out its trading volumes, we devised a trading plan that would allow him to liquidate the stock without much impact cost.
He invested the proceeds in Prime Vision Growth (our mutual fund strategy which invests 70% in equity MFs, 20% in debt and 10% in gold) and Prime Velocity and says he is now relieved. Not just because he managed to derisk his portfolio. Also because he managed to protect his father’s legacy for his siblings, should they need it one day!
Filling the missing middle
“I am looking for a high-risk, high-return investment” said 40-year-old Niranjan on our Discovery call. When he spoke to us, he was between jobs having quit his CXO position in a well-known platform company. On probing, it was clear he had the risk appetite for this and had no dearth of income for his needs. He owned three properties in Bengaluru, yielding good rent, had Rs 2 crore parked in fixed deposits supplementing that income with interest. He had also liquidated some of his ESOPs in the startup to invest in a Category 1 AIF specialising in venture and angel funding.
The main challenge we identified in his portfolio was that it straddled two extremes – very safe income-yielding investments on one hand such as property and FDs, and very risky unlisted equity bets on the other.
We suggested that he had the problem of a missing middle – a portfolio of mainstream stocks or mutual funds that would provide double-digit returns with healthy liquidity. We thought Prime Velocity, our stocks only strategy which selects fundamentally sound companies that can deliver long-term earnings compounding, would be a good fit. He’s signed up as one of our larger clients in the strategy.
Freedom for spiritual pursuits
“I am really not interested in money at all. I want to be free to focus on Seva. I was waiting for you to start something like this”, were the opening lines from Mr Santhanam, a 65-year old, when he first approached us to explore PrimeInvestor’s PMS.
An electrical engineer, he had taken early retirement in his 50s to focus on spiritual pursuits. In recent years, he’s been spending nine months every year travelling to Chinmaya Missions in far-flung locations to study the Vedanta, attend Bhagavad Gita discourses and do Seva. When he is engaged in Seva, he goes off-grid and doesn’t want the distraction of tracking stock markets or how his portfolio is doing.
He earns sufficient income from fixed deposits and bonds to meet his frugal living and travel expenses. He was looking for a trustworthy portfolio manager to take over day-to-day management of his Rs 90 lakh mutual fund portfolio.
His objectives were simple. “I don’t need any income from this portfolio. But I know that some part of my retirement money needs to beat inflation, in case I live long. That’s why I am looking for a PMS to invest this money for the next 7 years ”. And that’s how we acquired him as a client for MF-only Prime Vision Growth strategy.
These stories highlight that investing often goes beyond just returns and is intended to serve a personal objective. At PrimeInvestor PMS, we believe portfolio management begins with understanding these goals and building investment solutions that help clients achieve them with clarity, discipline, and confidence.
If you’re keen on knowing more about our PMS and how we can help you identify what’s important and how to achieve it, schedule a call with us.
