This distributor puts 99% of his clients' assets in PMS. Here's why.
A wealth manager in Bengaluru chooses to invest the vast majority of his clients’ money through portfolio management services (PMS). Of the ₹2,000 crore he manages, just ₹4 crore is in mutual funds and the rest in PMS. Mint caught up with Ramanan Venkateswaran of Pygmalion Renaissance to find out why.
Venkateswaran (popularly known as Venkat) worked at HDFC Bank before moving to Banyan Tree Advisors, a PMS provider in Bengaluru,and expanding their business significantly. He launched Pygmalion Renaissance in 2018. By this time, many of his long-standing clients from his time at HDFC Bank and Banyan Tree wanted more holistic financial guidance. Today, Venkat’s firm manages about ₹2,000 crore for more than 600 clients. in an interview with Mint, he explains why he chooses PMS for his clients.
Our clients primarily comprise high-net-worth and ultrahigh-net-worth individuals, non-residents, and entities like Hindu Undivided Families, companies, partnership firms and family trusts. A small number of our clients are retail investors with a corpus of less than ₹50 lakh. This is one of the reasons for our higher asset allocation to PMS."
Every investment product has inherent advantages and disadvantages. However, the primary objective of wealth management is to protect capital, which I call risk management. Through my experience of working with PMS fund managers, I feel the PMS structure helps manage risk better than most other investment products.
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