Funds managed
| Fund name | Asset Class | License |
| New India Strategy | Equity | PMS |
| Ideal India Strategy | Equity | PMS |
About
- Choice is a SEBI registered portfolio manager vide registration number INP000005856.
- Inception of the firm December 26, 2007
- Portfolio Management Services is a highly sophisticated service wherein a portfolio manager makes investments in equity, fixed income, debt and other money market instruments for Individuals, HNI (High Net worth Individuals) or institutions with a minimum investment value of 25 lakhs.
- Choice Portfolio Management Services offer a wide range of PMS strategies that cater to different segments of clients. These are thematic strategies which aim at maximizing the investors wealth while making investments in diversified stocks in sectors which show growth at a fast pace.
Key staff
Kamal Poddar (Managing partner) – A CA by profession and a fellow member of the Institute of Chartered Accountants of India (ICAI), CA Kamal Poddar is the Managing Director of Choice International Limited.
Ajay Kejriwal (President)A CA is a fellow member of the Institute of Chartered Accountants of India(ICAI). He also holds a degree of D.I.S.A. that has been issued by ICAI to him. He has an experience of more than 15 years in Financial Markets and an avid inclination towards Economics. His additional experience in the field on IFRS convergence, international tax, foreign investment consultancy and exchange control regulations are added advantage for the Broking business.
Sunil Bagaria (Director)He is a post-graduate and has more than 20 years of experience in the areas of finance and accounts, fund raising, financial reporting, management accounting and working capital management. He leads the Business Development team. He stresses on disciplined trading and has the rules for limiting risk per trade and how to work out the size of trading positions. He heads the HNI Client Relationships and also the overall sales within the country. He has played a key role in the expansion of Broking business leading it from the front.
Sundar Sanmukhani (Fund Manager)He is the PMS Fund Manager at Choice Broking. He is a fellow member of the Institute of Chartered Accountants of India (ICAI). With more than 32 years of experience in the field of Financial Industry and Consultancy, he has expertise in several areas like Investment Banking, Taxation, Financial Consultancy regarding Merger and Acquisitions. Apart from the above-mentioned accomplishments he also has articulacy in the field of Wealth Creation and Business Valuation. Currently he is heading the Equity Fundamental Research team at Choice Equity Broking Private Limited for the last 4 years with a team of over 12-15 research analysts responsible for research in various sectors such as BFSI, Power & Steel, IT, Pharmaceutical, logistics, Infrastructure etc.
Fundamental team at choice has issued 2-3 times “dynamic portfolio” (10 selected stock for investment at a particular time for different time frames) for its clients, which has outperformed and given 30-40 % returns in a suggested period. Previously, he served as an Independent Financial Consultant for a period of over 22 years, finally moving on to become a partner in S K Patodia & Associates in the year 2008, a renowned Chartered Accountants Firm, based in Mumbai, having pan India presence.
Investment philosophy
“Reach your financial goals faster, with the right mix of investments.”
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PMS Funds
New India Strategy Portfolio
“IRADE Naye Bharat Ke!”
India has become a favourable investment destination in the world on the back of following factors:
- Progress on policy front improving business environment
- Stable macroeconomic fundamentals.
- Huge market size & demographic dividend
- Low political uncertainties and less sensitivity towards the global market.
Ideology of the portfolio
INFRASTRUCTURE
The government has set an ambitious target of awarding 50,000 KMs of highway projects in the next two years, surpassing the cumulative road length awarded in the last 5 years.
• The overall pace of construction has increased with an average construction of 25.21 KM per day compared to 22.55 KM per day in FY17.
• Under the smart city programmed, to modernize 100 cities with a planned investment of around Rs. 480bn.
• Contribution of smart city to GDP expected to rise to 10-12% by 2022.
RURAL CONSUMPTION & RENEWABLE ENERGY
• To construct 10mn homes in rural India with investment of Rs. 81,975cr.
• FMCG in rural India to increase at a CAGR of 17.41% by 2025
• Increased focus on financial institutions to remit credit facilities.
• Rapid internet penetration in Tier 2-3 cities.
AFFORDABLE HOUSING
• To build 20mn homes by 2022 and 10mn homes by 2019.
• Affordable housing finance is expected to touch Rs. 6tn by 2022.
DIGITAL INDIA
• Indian internet industry expected to double by 2020
• Indian e -commerce market expected to reach US$ 200 billion by 2026
• Digital payments industry to grow 10x to $500bn by 2020.
EMERGING BUSINESS
• India is witnessing changes that have never been seen before in the history such as the public listing of the Insurance Companies.
• India’s insurance market is expected to quadruple in size over the next 10 years from its current size of $60 billion.
• The asset management industry is expected to grow nearly 5x by 2025.
Time horizon is long term and it has a moderate risk appetite.
Ideal India Strategy
- The Ideal Valuation Strategy aims to create wealth by the long term compounding effect on investments done in:-
-Good Business
-Good Management
-Good Valuations - Our strategy is to buy the undervalued stocks, or simply the stocks at a price much lower than its fair price, irrespective of the market movements.
The big market whales and the mammoths of value investing, including Warren Buffet, have argued that the essence of value investing is buying stocks below its intrinsic value.
Ideal Valuation Strategy (IVS) is based on the emphasis on both value as well as growth investing. Under this strategy, They find the businesses which are fundamentally strong and available at reasonable valuation.
We believe that a business can trade at a higher multiple but it’s underlying fundamentals must justify this. Thereby a company is studied both from quantitative as well as qualitative fronts in order to find fundamental strength of the business. 4
Under quantitative analysis, they do rigorous historical financial analysis of the companies through focusing on key ratios relating to growth, margins and returns. They have customized our quantitative approach in the way that any business which shows sustained improvement in key performance parameters comes in selection criteria.
In qualitative analysis, They strategically study the company and focus would remain on understanding business model, products and services analysis, inter-firm comparison based on SWOT, corporate government standards and promoters’ zeal for growth and stability.
The term horizon of the portfolio is long term and the risk appetite is conservative.
Fees Structure
Analyst questions
- Why is investment philosophy not mentioned in the Firm?
- Why is there no past performance given in any of the porfolios?
- Why there is no AUM mentioned in the following AMC?
- No proper explanation of the New India Strategy fund given? Only ideology is given for the portfolio.
- Cannot find proper information on the PMS on various PMS comparison websites?
- Why Very less information itself on the website for the portfolios?
- Why no media interaction of the fund manager?
Prepared by Saiyam Shah
Peer review
- The firm is referred to as the first person in many places whereas it should be referred to as a third person.
- The language of the questions needs to be more refined.
- It is mentioned in the disclosure that the company was incorporated on December 26, 2007. It needs to be mentioned in the dossier.
- It is mentioned on the website that Growth Avenues has partnered with Choice PMS to come up with Plus Delta Portfolios. Why did Choice PMS enter into a partnership with Growth Avenues? What is the role of Choice PMS in the partnership and the management of the portfolios? I think that asking these questions is important.
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