The 10 Most Valuable Portfolio Management Service Providers in 2018. In this issue highlights the prominent names from the portfolio management space. This list of portfolio management service providers is short but comprehensive.

1. September 2018
10
www.insightssuccess.in
10
Service Providers in 2018
The Most Valuable
Industry watch
Portfolio Management Services-
A comparative Analysis with
Mutual Funds
PORTFOLIO MANAGEMENT
Expert Views
Investment Portfolios –
An Undisputed Way to
Create Wealth

4. Editorial
Social scientists say that the current generation is experiencing the best of times
possible in the history of humanity. Everyone has an equal opportunity to earn
independently in a networked business ecosystem through investment where
information flows freely. In India, Portfolio Management as an industry is still
evolving because people at large still prefer other means of investment over stock
exchange for wealth creation. Advancements in technology and policy support by
the government generate a very favorable environment for the common investor to
invest in the stock market. The role of Portfolio Management Services providers is
fundamental to propagate the culture of investment in India.
They often seek help from professional portfolio managers to create wealth for
them. A Power of Attorney can be given by the client to the investment manager to
take all the decisions related to buying and selling on his behalf. Such
Discretionary Decision Making can be a great relief for the investors so that they
can concentrate on what is important for them like managing their own business.
Being able to lead a stress-free and socially active life is also an added advantage.
The wise investment advisors traditionally provide two golden rules worth noting
for wealth creation. Rule # 1: Never Lose Money, Rule # 2: Never Forget Rule #1.
Every PMS provider has its own philosophy and logic behind investments. Wealth
creation strategies usually revolve around the theme of intrinsic value enhancement
for the investor. They resort to all kinds of methods to reduce the risk and
maximize the returns. The asset allocation should be based on individual needs
rather than the market trends and personal life goals acquire more weight.
Optimal diversification is one of the most effective strategies for the assets whose
correlation with one another is not perfectly positive. Currently, complex
algorithms run on advanced computer systems to find the ideal correlation between
them. Construction of the investment portfolio intends to prevent the damage to
financial well-being by protecting the capital.
Recently, the artificial intelligence (AI) and trading robots have made the life of
investment managers more peaceful. As machines rely on real-time data to make
effective decisions, a lack of reliable data makes it difficult to deploy the AI-based
systems beyond the trading platforms. Most prevalent use of AI is in key areas like
portfolio management, shorter trading, and settlement times.
Many investors fall in the trap of the idea called ‘Beat the Market’. What really
matters is how the portfolio performs over a long period of time. Too short of a
time horizon causes investors to focus on factors other than the basic valuation and
disregard their investment principles. An experienced portfolio manager can
differentiate between the real valuations and speculative pricing. The margin of
safety is the difference between the fundamental or intrinsic value in such an
investment and the current price of the stocks.
Learning from the mistakes early is a crucial step and ‘Failing fast’ strategy can be
good for beginners in rebalancing the investment portfolio without losing a fortune.
All advisors suggest keeping a watch on the news regarding the company stocks
and act only if the core reasoning behind the investment is changed. As Benjamin
Franklin said – ‘An investment in knowledge pays the best interest.’ We go a step
further by saying that - if that knowledge is about investment itself then it leads to
wealth creation.
Wealth Creation
Strategies for
Sophisticated
Investors
Datta Taware
Datta Taware

5. Editor-in-Chief Pooja M. Bansal
Database Management Prashant Chevale
Technology Consultant Swapnil Patil
Circulation Manager Vivek Bangade
Research Analyst David
Business Development Executives
Rutuja, Joan, Shraddha
Sapana , Shweta AArt Editor
Business Development Manager Akansha Garewal
Visualiser Shweta Shinde
Marketing Manager Dhruv Apte
Picture Editor Alex Noel
Art & Design Director Amol Kamble
Co-designer Priyanka Rajage
Managing Editor Rajarshi Chatterjee
Senior Editor Shraddha Deshpande
Executive Editor Datta Taware
Copyright © 2018 Insights Success, All rights reserved. The content and images used in this magazine should not be reproduced or
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6. C O N T E N T S
Industry watch
Portfolio Management Services-
A comparative Analysis with
Mutual Funds
Expert Views
Investment Portfolios –
An Undisputed Way to
Create Wealth
Articles
IDBI
Investment Banking and Financial Services
Company Providing a Wide Gamut of
Financial Products and Services
Care Portfolio Managers
Dedicated Portfolio Manager
with 100% variable fees
10
16
28
22
36
New Generation Companies
Creating Wealth through Innovation
and Disruptive Strategies
Expert’s View
INTERVIEW WITH INSIGHTS SUCCESS

7. Alfaccurate Advisors
Best Fund Managers Outperforming
the Market with Low Risk
Dynamic Equities
Enhancing Investor Returns
through Education and
Technology Tools
Equitree Capital Advisors
Earning Alpha Returns for Investors
through Emerging Companies
QED Capital
Demonstrating Consistent
Performance for PMS Clients
Sixth Sense Ventures
A Smart Value Creator Fund for
Indian Opportunities in Consumer
Brands
SMC Investments and
Advisors
Enabling Wealth Preservation
and Enhancement with Optimized
Returns
20
26
32
34
40
42

8. ortfolio Management Service providers are becoming a necessity as Indians are getting richer. The
Pmillionaires are on the rise in India and looking for safe heavens which can grow the valuations of their
investment.
Portfolio management services have been in high demand. The number of clients has increased from around 96
thousand to around 1.34 lakhs in past one year. According to data available with the market regulators, total ‘Assets
Under Management’ (AUM) of portfolio managers has increased by almost twelve percent in recent years to almost
15 lakh crore by August end, mainly on account of the growth in the number of clients.
There are many professional advisory firms which provide advice and also undertake actual tasks of investing like
creating a suitable portfolio on behalf of a client. They manage the funds of the clients as per their goals and many of
them have the reputation of giving very high returns compared to the stock market. Recently, the development of
technology platforms has a massive impact on the time spent with clients, business development and ultimately their
ability to generate revenue with reduced risk exposure. The business models are undergoing a transformation with
advanced technology so as to satisfy the necessities of their clients’ portfolios.
About the Project
We are listing the top portfolio management service providers who are expert in the field and are well known for their
customer-centric services. Entitled by “The 10 Most Valuable Portfolio Management Service Providers in 2018”
this issue highlights the prominent names from the portfolio management space. This list of portfolio management
service providers is short but comprehensive. We have included the information about the founders as well as a
variety of products and services offered by them. The project also includes the articles from the editorial teams and
guest editors on Portfolio management and current industry trends.
The article titled ‘Portfolio Management Services - A Comparative Analysis with Mutual Funds’ is included in this
edition. Another article is titled as ‘New Generation Businesses – Creating Wealth through Innovation and
Disruptive Strategies’ which is written by Mr. Deven Choksey, the Promoter of KRChoksey Group of companies.
We have included the major brands as explained below such as Dynamic Equities Pvt. Ltd. which is a SEBI
registered investment advisor and stockbroker, a leading financial services provider in the Equity markets in India,
with the membership of NSE, BSE & FPSB India. QED Capital Advisors LLP was included as a Limited Liability
Partnership firm and serves as a boutique asset management firm catering to young mass affluent and HNI Clients and
provide simple to understand investment products. Equitree Capital Advisors is an investment firm focused on
listed small and micro-cap emerging businesses with bright prospects and strong management whose full potential is
yet to realize in the market. We also included the Sixth Sense Ventures which is a venture capital firm specializing in
growth capital investments in the consumer domain largely in Startups and SMEs. SMC Investments and Advisors
Limited provide investment, portfolio and wealth management solutions across a wide range of asset classes in India.
With markets entering in a turbulent phase, our readers will definitely find this information valuable for them. We
wish all investors risk-free and rewarding investments ahead!
Portfolio Managers:
Minimizing Risks and Maximizing Returns
Management Service Providers in 2018
10The
PORTFOLIO
Most
Valuable

10. Read it FirstRead it First
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11. Management BriefCompany Name
Multi-act Equity
Consultancy Pvt. Ltd.
multi-act.com
Jayakumar Babu
President
It is a Portfolio Management Service provider to various HNIs
and also an advisory for overseas entities that are FII’s, QFIs
serving wealthy families, family business owners, sophisticated
investors and capital intermediaries around the globe.
Alfaccurate Advisors
Pvt. Ltd.
alfaccurate.com
AlfAccurate Advisors (AAA) is one of the leading Portfolio
Management Service (PMS) firms. It is known for its unbiased
investment advice and the brand is trusted by corporate and
institutional investors.
Alchemy Capital Management is currently one of the largest
Portfolio Managers in the country with superior experience and
best in class services.
Tamohara Investment
Managers Pvt. Ltd.
tamohara.net
Tamohara is SEBI registered Portfolio Management Company
which creates and invests in benchmark and market cap agnostic
equity portfolios, focused on long-term value creation by
investing early in potential businesses.
Anish Teli
Managing Partner
& Principal Officer
QED Capital Advisors LLP is a Limited Liability Partnership
firm and serves as a boutique asset management firm catering to
young mass affluent and HNI Clients and provide simple to
understand investment products.
QED Capital
Advisors LLP
qedcap.com
Sanjay Panicker
Partner &
Portfolio Manager
Dynamic Equities
Pvt. Ltd.
dynamiclevels.com
Dynamic Equities Pvt. Ltd. is a SEBI registered investment
advisor and stockbroker, a leading financial services provider in
the Equity markets in India, with the membership of NSE, BSE
& FPSB India.
Geojit Financial
Services Ltd.
geojit.com
Jones George
Vice President &
Chief Digital Officer
Geojit is a leading investment services company in India with a
growing presence in the Middle East offering a wide portfolio of
savings and investment solutions via multichannel services.
Shailesh Saraf
Managing Director
D. K. Aggarwal
Chairman & MD
Lashit Sanghvi
Co-Founder &
Whole-Time Director
Alchemy Capital
Management Pvt. Ltd.
alchemycapital.com
Equitree Capital
Advisors Ltd.
equitreecapital.com
Pawan Bharaddia &
Ssuneet Kabra
Founders
Equitree Capital is an investment firm focused on listed small
and micro-cap emerging businesses with bright prospects and
strong management whose full potential is yet to realize in the
market.
SMC Investments and Advisors Limited provides investment,
portfolio and wealth management solutions across a wide range
of asset classes in India.
SMC Investments
And Advisors Ltd.
smcinvestments.co.in
D. K. Aggarwal
Chairman &
Managing Director
Sixth Sense Ventures is a venture capital firm specializing in
growth capital investments in the consumer domain largely in
Startups and SMEs.
Sixth Sense Venture
Advisors LLP
sixth-sense.in
Nikhil Vora
Founder &
Chief Executive Officer
PORTFOLIO
Most
Management Service Providers in 2018
10The Valuable

12. September 2018|10
Nagaraj Garla
CEO

13. IDBIInvestment Banking and Financial Services Company
Providing a Wide Gamut of Financial Products and Services
In an interview with Insights Success, Nagaraj Garla, CEO of IDBI
Capital Markets & Securities Limited gave some insightful answers
highlighting the influences made by his company to take IDBI Capital
to a new level.
1. Kindly brief us about your company.
IDBI Capital Markets & Securities Limited is a wholly owned subsidiary of
IDBI Bank Limited and offers to its clients a bouquet of financial services.
Broadly IDBI Capital provides services in three major areas – Investment
Banking, Institutional and Retail Broking and Portfolio Management
Services.
2. Please tell us something about your Founder/CEO and his/her
contribution towards the company and the industry.
IDBI Capital is a wholly owned subsidiary of IDBI Bank Limited. IDBI
Bank Ltd. has inherited a rich legacy from its predecessor entity - Industrial
Development Bank of India – which was an apex Development Financial
Institution (DFI) in the realm of industry from 1964 to 2004. As a DFI, the
erstwhile IDBI stretched its canvas beyond mere project financing to cover
an array of services that contributed towards balanced geographical spread
of industries, development of identified backward areas, emergence of a
new spirit of enterprise and evolution of a deep and vibrant capital market.
In October 2004, the erstwhile IDBI was converted into a banking
company – IDBI Ltd. – to undertake the entire gamut of banking activities
Interview With Insights Success
September 2018| 11

14. while continuing to play its secular DFI role. IDBI Bank
Ltd., as a full service universal bank, provides a wide
gamut of financial products and services encompassing
deposits, loans, payment services and investment
solutions.
3. How emerging technologies are changing the
portfolio and wealth management industry?
Technological tools such as Robo advisory are expected
to take off in mid market segment of wealth management
where the client is seeking a larger bouquet of products
with lower fees. The key differentiation here will be
financial advice at reasonable cost. However at the high
end of the market, it will be relationship and product
driven. Technology will also play an important role in
terms of providing complex products & strategies to this
affluent class effectively.
Another important role that emerging technological tools
will play is offering number of product innovations.
Having said this, the crux of Wealth management
business is people - relationship managers, that cannot be
ignored at all, irrespective of any kind of technological
enhancements.
4. How new economic and taxation policies of Govt.
and the global trade scenario are transforming the
portfolio and wealth management industry?
With liberal economic policies & reforms that the
government has undertaken over last few years, the rise
in entrepreneurship is expected to raise India to the third
largest number of billionaires in five to seven years as
per some market reports. E.g. the acquisition of Flipkart
by US based retail giant Walmart has created hundreds
of millionaires. Such buyouts are music to the portfolio
& wealth management industry.
The recent initiatives like demonetization drove
millionaires further away from physical assets into
financial assets. Such kind of reforms have only helped
the industry to channelize the investible surplus in an
organized manner. In today’s dynamic world of global &
domestic economic environment, the job of a Wealth
Manager/portfolio manager becomes more important to
provide right asset allocation to clients to optimize the
returns.
The Startup India Stand up India initiative of the
Government is also likely to create more entrepreneurs.
5. Explain the industry challenges in terms of current
trends?
The main challenge in wealth management industry is
the quality & maturity of relationship/portfolio manager.
People with a sincere approach to handhold the clients in
their journey of wealth creation as well as wealth
preservation, instead of looking short term, objective of
revenue maximization is the need of the hour. Since it is
a people centric industry, retaining good talent of wealth
managers/portfolio managers is very important criterion.
The markets conditions have thrust negative returns upon
most Portfolio Managers. Attracting investments at this
point of time, although it is the best time for investing is
a challenge.
6. What are the unique factors of your company?
Explain in brief the purpose behind starting and the
success story of your company?
The USP of the IDBI Capital is provision of varied
services under one roof backed by the IDBI Brand that
endorses its credibility and trustworthiness.
The Company provides capital market services, M&A
and PE, syndication and advisory services for resolution
of stressed assets.
The Company had an experience of handling more
corporate debt restructuring mandates of approximately
Rs. 2 lakh crores. The Company recently launched the
Retail PMS to focus on IDBI Bank Retail Customers.
IDBI Capital has bagged the Award for “Best Investment
Banking & Securities Services Company, 2017” from
September 2018|12

15. International Brand Consulting Corporation (IBC), USA, the “Financial Services Brand of
the Decade – 2018” by Herald Global – ERTC Media; “Asia’s Dream Company to work for
– Financial Services” by World HRD Congress and “Asia’s Most Trusted Company Award”
by IBC (USA) and has also been assessed as the “Most Improved Broking House-2017” by
Asia Money.
7. Kindly describe about the products and services of your company.
In the Investment Banking space, we provide services in Capital Market transactions, M&A
and PE and syndication of debt. On the Institutional front IDBI Capital is empaneled with
leading Institutions as a preferred broker. We also service a vast network of retail and HNI
customers. IDBI Capital also has a strong research team which has a coverage of varied
sectors. We have alliances with leading banks to extend the reach of our broking services
across India.
IDBI Capital recently launched portfolio management service IDBI Focus 20:20 strategy. It
is targeted to cater to HNI/UHNI clients to generate superior returns over medium to long
term by identifying and investing in quality companies with good management track record,
fair valuations with reasonable margin of safety.
8. What are the future challenges in your industry and how are you preparing the
company for that?
• Competition from the organized and unorganized players is a challenge. To remain
prepared to face competition we continue to focus on large deals with a value proposition
• Technology obsolescence is a major challenge. However rather than view it as a threat or
challenge we look at it as an opportunity for advancement and continue to innovate and
focus on digital upgradation. We provide a platform which serves differentiated customer
experiences
• Providing advisory services without funding/cutting a cheque is also a challenge. However
we have diversified our business sufficiently and our also in the process of launching the
Defence and Aerospace Fund.
9. Kindly provide a quote which describes your company in the best way.
I find the great thing in this world is not so much where we stand, as in what direction we are
moving:
To reach the port of heaven, we must sail sometimes with the wind and sometimes against it
- but we must sail, and not drift, nor lie at anchor.
-Oliver Wendell Holmes, Sr.
September 2018| 13

18. CARE PORTFOLIO
MANAGERSDedicated Portfolio Manager
with 100% variable fees
In an interview with Insights Success, CAArpit Shah,
Co-founder of Care Portfolio Managers Pvt Ltd
gave some insightful answers highlighting the
influences made by his company to take Sunday Mattresses
to a new level.
1. Kindly brief us about your company.
Ans. Care Portfolio Managers Pvt Ltd or “CarePMS” is a
SEBI registered portfolio manager with seven years of track
record. We invest in public listed companies in India. We
have a bottom-up, stock specific approach. Our basic
selection criteria revolve around (i) growth potential;
(ii)management capabilities; (iii) strong financials; (iv)
attractive valuation; and (v) niche player with leadership
position. We invest with time horizon of atleast 10-12
quarters.
2. Please tell us something about your Founder/CEO
and his/her contribution towards the company and the
industry.
Ans. I graduated from Narsee Monjee College, completed
my qualification as a Chartered Accountant and was certain
about making acareer in equities. I decided to enterprise
into stock broking but quickly realized that forming an asset
management company was the way ahead. But I wanted
100% dedication, so I quit my stock broking business and
started Care Portfolio Managers Pvt Ltd -- with PMS as
single line of business. I was joined by my mentor and our
fund manager CA Jayant Mamania, CA Harmukh Gangar
and my dear friend CAAmit Doshi who had the same
dream of creating wealth for investors. With respect to
contribution towards the industry, Care Portfolio Managers
was among the first to introduce no fixed fee structure
where clients only pay if there is performance.
3. How emerging technologies are changing the portfolio
and wealth management industry?
Ans. Emerging technologies are changing the way portfolio
and wealth management industry does marketing and CRM
functions. Within Marketing function, increase in channels
of communication to the right audience. For CRM,
technology allows seamless client communication,
engagement and addressing concerns thereby increasing the
bandwidth of CRM personnel in terms of the number of
clients that he can manage.
Technology, however, has not changed the way we do
Research. The conventional way of due diligence is most
reliable.
4. How new economic and taxation policies of Govt. and
the global trade scenario are transforming the portfolio
and wealth management industry?
Ans. Government policies in recent years including some
major steps like Demonetization have been positive for
asset management industry. Taxation policies including
introduction of the GST has been a boost to the organized
sector.
Broadly, formalization of the economy and government
measure to curb cash economy resulted in surplus capital in
the hands of investors, looking for avenues other Bank Fds.
This gave a boost to inflow in equity markets confirmed by
the meteoric rise seen in SIPs in Mutual Funds
Interview With Insights Success
September 2018|16

19. CA Arpit Shah
Co-founder
September 2018| 17

20. 5. Explain the industry challenges in terms of current
trends?
Ans. The are three challenges in current trends (that we see
for portfolio and wealth management industry)
(I) Understanding of Products: Wide variety of Products
introduced by Portfolio and Wealth management
Industry have created too many options for the endclient
who may not be equipped to choose the right
product matching to his risk appetite. (ii) Volatility:
Volatility is the new normal. Changes in portfolio market
value makes investors with curiosity about how future will
enfold. This volatility in market value, in case of small
caps, is north of 25-30%. This fills the end-client with
anxiety which is a challenge as we see end-clients taking
unwarranted decisions like pulling out when valuation are
most compelling. (iii) Investor behaviour: Return from
equities in the previous four years have raised end client
expectations. It is rationale to assume that equities will
outperform other assets classes in the long-term. But, given
the current trend, investors may not be prepared to accept
that growth in equities is non-linear.
6. What are the unique factors of your company?
Explain in brief the purpose behind starting and the
success story of your company?
Ans. What is unique to our company is the fact that we
have created the most client centric ecosystem as a PMS –
because this is only line of business that we are engaged in
and performance is the only way we can bill our clients –
therefore to deliver growth in portfolios is not just our
prerogative but also a matter of our survival.
In 2007, I had formed this company after observing that
during 2002-2007 we made good money but saw a lot
investors had mixed experiences. We realized the difference
was our temperament and research skills. We thought that
we should provide a platform to other investors by which
they can subscribe to our services. The basic sentiment
engrained in our thought was that we cared for these
investors who believed in long-term equity investing.
Hence we named the company Care Portfolio Mangers Pvt
Ltd.
However, between 2009-11 we had to surrender our license
to SEBI as they raised promoters’ capital requirement from
Rs50 lakhs to Rs2 crore. During this time we grew our own
capital using our investment principles and re-applied to
SEBI for a license in June of 2011. Even today, we
continue to follow the same investment principles and this
has allowed to deliver a CAGR of over 24% to clients. This
number is net of our fees and transactions costs.
Comparable number for BSE Midcap and BSE Small Cap
were 10.8% and 7.7% respectively.
7. Kindly describe about the products and services of
your company.
Ans. We provide both Discretionary and Non-Discretionary
portfolio management services. (Non-Discretionary is for
clients who have restrictions at their work place and need
prior approval from their compliance for example the Big 4
Audit firms). The investment philosophy and portfolio
construction, however, remains the same. We essentially
run a Multi-cap PMS with a bottom up stock specific
approach. Also, we don’t follow model portfolio strategy.
8. What are the future challenges in your industry and
how are you preparing the company for that?
Ans. Future challenges is that as market participants
become more efficient the universe of under researched
companies will compress. As we move nearer to an efficient
market stocks start trading nearer to their fair values. This
will put a pressure on fund managers in delivering an alpha
over market return.
We are currently not affected by this. But once we cross
AUM of USD $200 million (over Rs1500 crore) in
the coming years we may have to look for relatively bigger
companies.
9. Kindly provide a quote which describes your
company in the best way.
There are two quotes that I can think:
What we really want to do is buy businesses that we would
be happy to own forever – Warren Buffet
Understand the nature of the companies you own and the
specific reasons for holding the stock – (“It is really going
up, doesn’t count”) – Peter Lynch
September 2018|18

22. Alfaccurate Advisors
Best Fund Managers Outperforming the
Market with Low Risk
Protect
Capital,
Create
Wealth
D. K. Aggarwal
Chairman & Managing Director
““
S
tock Markets throughout the world sometimes face
fluctuation phases and declining stock prices increase
the risk of lower returns for investors. Investors need
expert advisor firms which can outperform the market and
offer the convenience and competitive returns. Most sought
after Portfolio Management Service (PMS) providers like
Alfaccurate Advisors understand this need and provide
higher alpha return than market indices and create wealth
for them. The team works hard in a dynamic business
ecosystem which has a robust, proactive and process-driven
approach to managing a portfolio.
The Brand Name for Performance
Alfaccurate Advisors have remarkably short formed as
AAA and as the name suggests it stands worthy of the
performance and the hallmark of best quality service. Alpha
denotes the active return on an investment. It the
performance of an investment against a market index or
benchmark. The company aims to deliver strong Alpha.
Accurate –Belief in perfection. Advisory – Exclusive
presence only in advisory business.
AlfAccurate Advisors (AAA), established on 23rd Nov
2009, is one of the leading SEBI registered Portfolio
Management Service (PMS) firms. The core team has total
experience of more than 70 years in Indian capital market.
AAA PMS is multi-cap diversified PMS and has delivered
superior risk-adjusted returns during the last nine years. The
firm has unwavering faith in strong corporate governance
and has established high benchmarks in the industry with
respect to transparency, disclosures, and investors’
communication. For instance, AAA is present only in one
business segment – Investment Advisory. Also, to avoid any
conflict of interest, it does not maintain an in-house
brokerage business. The firm has the tie-up with the world-
class institution – Deutsche Bank as Custodians and Fund
September 2018|20

23. Accountant. For NRIs, the bank and custodians are Axis
Bank/HDFC Bank.
Leadership Par Excellence
Rajesh Kothari is Founder & Managing Director of
Alfaccurate Advisors with a rich experience of more than
24 years in Indian capital market. Academically, he has
graduated as CWA and also possesses an MBA degree. His
investment expertise is proven in both Long Only and Long
& Short investment strategies. He was Fund Manager at
DSP Blackrock Fund Managers managing various equity
mutual fund schemes. During his tenure, the fund has
outperformed the benchmark indices significantly. He has
been at the back of performance by the equity schemes
which maintained its “1st Quartile Ranking” consistently.
Achievements
Rajesh Kothari has received CMA Young Achiever Award
in 2014. Various financial media houses like by Economic
Times have awarded him with “Platinum Fund Manager”
for DSP ML Equity Fund and “Gold Fund Manager” award
for DSP ML Balanced Fund. He was invited at Maharashtra
Economic Summit to present views on Indian
Infrastructure. He has shared his expertise as a contribution
to the industry through the invitations by the Institute of
Directors to present views on Governance Deficit and being
elected on the advisory panel of World CSR forum.
Exceptional Strategies
Award-winning investment team and proven track record of
high returns keep the Alfaccurate Advisors above its
competitors. The company’s founders are accessible by
investors and have been fund managers themselves who
knows every hand on detail about investment strategies.
Some of the unique features of the strategy are staggered
investment approach, strong risk management, and client-
centric business model. The company peruses a policy of no
conflict of interest with clients. The company has
diversified multi-cap portfolio strategy with strong stock
selection methodology along with exit Strategy (reduces
risk) aimed at wealth creation.
Products and Services
The company believes in “Protect Capital, Create Wealth”
– meaning managing risk in the portfolio is equally
important as generating returns.
Protection of capital is done by reducing risk through
Diversification, Exposure limits, Stagger Investment
Approach, and a Defined Exit/Sell strategy. Governance
risk, Technology risk, and Business cycle risk are reduced
by diversification. AAA PMS diversifies across 17-20
sectors, 40-50 companies and across market cap with 40%+
in large cap.
Wealth creation is done by using 3M investment approach –
The companies selected are evaluated and filtered on three
parameters - Market Size, Market Share, and Margin of
Safety. The companies with strong profitability, strong
balance sheet – high ROE, high ROCE and strong free cash
flow are selected for creating a healthy portfolio.
Unmatched Products that Beat the Market
The performance of the company is unmatched which can
be validated through multiple incidents in past. AAA IOP
PMS is the main product offered by the company which has
delivered 20.4% CAGR returns since its inception against
BSE 500 Index CAGR return of 9.2%. It has delivered
average returns of 24.6%, 24.9% and 26.6% for 1 year, 3
years and 5 years respectively on a monthly rolling return
basis – implies less volatility and consistent performance.
The Future of Investment Space in India
Despite India has more than 5500 listed companies, the
equity culture in India is still at nascent stage. India needs
to build at least 500 companies posting an annual profit of
more than Rs. 1000 cr. As the universe of right companies
increases, the wealth creation opportunity also expands
significantly. The major challenges for PMS industry can be
summarized to three basic reasons - the ticket size limit of
Rs. 25 lacs and differential taxation for between MF and
PMS investor. Taxation is one of the ways to encourage
investors to allocate more money into equity as an asset
class. Many boutique investment management firms can
emerge if government encourages the PMS industry along
with Mutual Funds. That in turn can help to channelize
financial savings to equity asset class. Brands like AAA
form the real assets of financial ecosystem in India. AAA is
playing crucial role in enhancing investor confidence and
giving them higher alpha with minimum risk.
Management Service Providers in 2018
10The
PORTFOLIO
Most
Valuable
September 2018| 21

24. Portfolio
Management
Services -A comparative Analysis with
Mutual Funds
Industry watch
September 2018|22

25. C
omparing Mutual Funds with Portfolio
Management Service is like comparing a public
transport with a hired taxi. Everyone would rather
prefer a taxi than a public transport for the simple reason of
convenience and personalized experience of the journey. As
a matter of fact, the Portfolio Management Service (PMS)
is a part of wealth management service for high-income
individuals. PMS investments are targeting high risk and
high return assets and typically have an investment in 20-30
stocks. A portfolio manager is more knowledgeable about
assets and market conditions, increasing the chances of
good returns on investments. However, a Mutual Fund
(MF) is often run by an asset management company and
represents an investment scheme for a group of people to
pool together their money to invest with common
objectives.
Advantages of PMS over Mutual Funds
Portfolio management services offer investment services,
tailored to meet the financial goals of each investor.
Portfolio analysis is comprehensive in case of mutual funds,
the macroeconomic factors as well as emerging markets
selections while PMS services rely on blue-chip funds and
high growth emerging sectors. In portfolio management
investor actually holds stocks in the Demat account though
the power of attorney can be given to the fund manager.
Equity mutual funds are bought in units which in turn
represent stocks. Portfolio management services charge an
initial management fee and also have a profit sharing
agreement.
The Difference of Risk Appetite
An investor with a risk-taking approach is aggressive on
equity funds whereas a risk-averse investor would invest in
mutual funds offering balanced and less-risky options. PMS
allows aggressive investors to invest larger funds in a single
stock. In a mutual fund, the fund manager and his expert
team take the decisions on how much and where the
investors’ money will be invested. Financial advisors in
PMS prepare the variety of asset allocations and risk
analysis and offer various types of investment products.
Mutual funds, on the other hand, offer a generalized and
spread out investments with low probability to perform
better than PMS. Mutual funds follow the same strategy for
all investors irrespective of their capital positions, and
ability to take risks.
The Distinctiveness of Portfolio Management Services
PMS can be more aggressive with the potential to generate
higher returns in ever-changing market conditions. There
are distinct advantages in investing in portfolio
management services if the holding amount is large enough
to surpass their entry-level investment. It operates with
higher exposure to a certain sector or hold on to specific
stocks as long as they are delivering growth.
Complete Control for HNIs
PMS is a product created to cater to high-net-worth
individuals, which is why the threshold for the investment
amount is much higher. PMS provides professional
managers to develop strategies for consistent returns within
the risk constraints. Most of the time, high-net-worth
investors give decision authority to portfolio managers, in
order to manage the funds for achieving their individual
goals. Every trade is communicated to the investor and even
a view of his portfolio positions is available on demand.
Investing requires knowledge, time, and the right mindset
along with constant monitoring which may not be possible
for many. Moreover, the investor can also have his own
control over the buying and selling decisions, if he so
desires.
Steps to Personalization of Investments
u The first step is to identify the objectives behind
the investment.
u Allocation of the required amount from the funds
available to invest.
u Listing of assets and securities in aligned with the
objectives of the investor.
u Preparation of investment strategy based on the
analysis of the investor.
u Monitoring the portfolio continuously and avoiding
the diversion from the investment policies.
u Rebalancing it again if the market conditions
change sharply.
u Discussion with the investor about the analysis of
his portfolio and reporting the status.
September 2018| 23

26. The portfolio manager must rebalance the portfolio based on the performance of the portfolio and updated objectives of the
investor.
Innovative Products Offered by PMS
PMS offers a variety of investment products considering the specific needs of the client. These are listed as below –
u Concentrated Portfolio – it has only 10-20 stocks of companies with the most promising returns.
u Security Basket – these include carefully selected options, indices, commodities, debt or foreign currencies.
u A structured product – these are also known as market-linked or index-linked investments.
u Principal Guarantee – these products ensures the protection of principal if held to maturity.
u Mortgage Backed Securities – these are used to support in down-market conditions.
Benefits of Portfolio Management Services
This is a highly beneficial service to investors who are either very busy with their own businesses or who lack the technical
expertise in investments. A sensible portfolio manager can optimize or maximize the returns on the portfolio either for short-
term returns or for long-term goals. It helps in reducing the risk of certain asset classes by proper diversification and asset
allocation, the risk of volatile markets can be reduced. The most attractive asset classes come with the riskiest position of
values but with proper portfolio management, profit can still be maximized. Customization of the investment is the most
sought-after feature of PMS. It enables active management of portfolios in which an investor can take his own decisions on
the shares or asset classes he wants to invest in.
Promising Future in India
Portfolio Management Service providers are very popular in global markets. In India, they are still emerging with few players
dominating the market. The increasing number of wealthy individuals, most of whom are young and aggressive for growth,
will be the decisive factor for Portfolio Management Services. Technology has not left any sector untouched. PMSs are way
ahead of mutual funds in usage of advanced technology. They are becoming more capable of analyzing the financial data and
their ability to manage huge funds efficiently for desired goals is also enhanced.
September 2018|24

28. Dynamic EquitiesEnhancing Investor Returns through
Education and Technology Tools
Be Your
Own
Analyst,
Trade Simply,
Enrich Lives
Shailesh Saraf
Managing Director
“
“
G
lobal economies are becoming interdependent
hence stock markets are affected by any major
policy change in domestic and international
economies. Global investors with substantial funds are
looking for relatively stable emerging markets like India.
Portfolio Management Service (PMS) providers with
innovative products are helping them in getting higher
returns on their investment. Dynamic Equities Pvt. Ltd. is
one such company which gives huge emphasis on educating
investors on fundamental analysis, sector analysis and
quantitative analysis tools.
Knowledge-Driven Leadership Personified
Shailesh Saraf is the Managing Director of Dynamic
Equities Pvt. Limited & Dynamic Commodities Pvt. Ltd.
He has learned international best practices and continues to
strive for the best in terms of both moral and material
growth. He has an experience of over 25 years in the
financial market, especially in capital & derivatives market
operations, trading, research, and management related
areas.
He is a popular figure on the investing.com platform, where
his free online webinars attract 1000+ registrants per
webinar. His channel on Youtube has nearly 14000+
subscribers, where more than 25 of his webinar videos have
around 5 lakhs views. Two-day seminars held across cities
are educative, practical and have benefitted investors all
over India. Shailesh Saraf, along with Shridhar Bhuwalka at
the helm of Dynamic group of companies, has been leading
the group with intense hard work, dedication, and integrity.
September 2018|26

29. Making a Difference with Dynamics of Equities
Dynamic Equities Pvt. Ltd. is a SEBI registered investment
advisor and stockbroker, a leading financial services
provider, and one of the major players in the equity markets
in India, with the membership of NSE, BSE & FPSB India.
The company was incorporated in 1999 with head office in
Kolkata. It launched its website www.dynamiclevels.com in
August 2011 to provide knowledge and hardcore research
information free to investors with more than 2 lakhs users.
The company started its online webinars in January 2017 on
www.investing.com website platform and recently launched
mutual funds research analysis on its App- Dlevels.
Innovative Technology Tools
Dynamic Equities offers free portfolio check followed by a
presentation of strategies to PMS clients by in-house
research experts. The company has an edge over its
contemporaries mainly in the field of data analysis. The
Quantitative Fundamental tool is one of its kinds developed
by the team for identifying stocks in PMS. The intense
effort spanning almost 10 years has resulted in an exclusive
quantitative fundamental strategy based research model for
PMS Service. All collated together very systematically in a
special tool, where at a click of a keyboard, the most
relevant data is populated. This quant tool is one of its kinds
in the industry and has helped in propelling Company’s
PMS performance. It specializes in helping NRIs account
opening process and company has a fair share of NRI’s in
their list of clients.
Supporting Investor Education
The main purpose for launching the dynamiclevels.com
website & Dlevels app is Saraf’s belief in the famous quote
by Chinese Philosopher, Confucius – “If you give a man a
fish, he will be fed for a day. If you teach a man how to fish,
he will be fed for a lifetime.” The intention is to help the
investors realize that the stock market is the best place for
investment, to guide them to invest their savings in the
stock market with the right education.
Dedicated Products and Services
The company offers a wide range of products & services.
Few of them can be listed as below -
Portfolio Management Services: For investors willing to
invest INR 25 lakhs or more, Dynamic PMS is the product
to go for. To track the PMS performance, the company has
launched three Indices – Dynamic Smallcap, Midcap &
Largecap index, which has been calculated and computed
by NSE Indices Limited, a subsidiary of NSE.
Mutual Funds Advisory: Dynamic has also done extensive
research on the mutual fund industry and is well equipped
to advise & manage big HNI portfolios, specializing in NRI
portfolios.
Seminars: Stock Market learning is made simple and
powerful through the 2-day seminars which empower
investors to be their own analyst.
Free Services: Company also provides free services like
Portfolio Check-Up, online webinars, website
dynamiclevels.com & App “Dlevels”.
Embracing New Technologies
Technology has made it easier for investors to become more
knowledgeable and investment in stocks is increasingly
preferred. Quantitative Fundamental Analysis is a very
robust model for identifying stocks in the portfolio. All the
1600 tradable stocks of NSE are filtered with major
fundamental parameters. Remaining 300-400 stocks which
are fundamentally good can be further evaluated
quantitatively. A combination of Fundamental &
Quantitative Analysis can prove to be the most effective
strategy for investment analysis.
Preparing for Future Challenges
The major challenge facing the industry today is for the
Mutual Fund Managers. With the SEBI notification in Oct
& Dec 2017, categorization of the stocks into smallcap,
midcap and large-cap have led to a lot of restructuring of
different mutual funds. This has subsequently affected the
Portfolio & wealth management services as well.
By 2018, all listed companies will have to follow a uniform
system of accounting known as International Financial
Reporting Standards (IFRS). Another major change is that
from 2019, the companies which typically give annual
consolidated results will have to give consolidated quarterly
results. The company has already started employing the
Quant Fundamental method and has also prepared its
database in compliance with IFRS so that the transition is
smooth and without any technical problems for clients.
Dynamic seems to be living its purpose – “Real Research,
Trustworthy Research”
Management Service Providers in 2018
10The
PORTFOLIO
Most
Valuable
September 2018| 27

30. New Generation Companies
Creating Wealth through Innovation and Disruptive Strategies
Mr. Deven Choksey is the Promoter of KRChoksey Group of companies. He has served
BSE as the Director of the exchange, post BSE Demutualization and as a Board Member
of the BSE Derivative Stock Exchange. He has championed the concept of value investing
through strong fundamental research and modern portfolio approach. KRChoksey is
among the most trusted, respected and distinguished name in the India’s nancial
markets, for close to four decades.
About the Author
Deven Choksey
Promoter
September 2018|28

31. Investing in new era clearly
belongs to innovations, the scale
of operations and consistency in
investing in those businesses. Loss-
making business is no more a bad
word or social taboo as entrepreneurs
and investors don’t mind burning
cash when investing in new-gen
businesses. India is experiencing a
clear shift under disruptive trade
emerging out of nowhere and
displacing the established businesses.
Let me present to you, some of the
interesting stories that will help us
understand how technology and
some new gen companies have
displaced existing players in the last
decade. Businesses like consumer
finance, Insurance, BFSI, Online
Shoppers, and Telecom has created
massive wealth for promoters and
shareholders.
Let me place both domestic and
global examples and references that
have led the evolution of
technologies with immense success.
Bajaj Finserv –
Bajaj Finserv diversified financial
services group spanning life
insurance, general insurance, and
lending, with a pan India presence. A
decade old, Bajaj Auto demerged
entity has displaced the traditional
model of agent serviced Insurance
business & banking finance offline
model. Their robust digital online
model has helped them service larger
customer base in just a few years.
With the fast evolution of
smartphones, the launch of the first
finance app has clearly allowed them
to hold a strong leadership position
in the domestic market. Bajaj Finserv
has generated ~39% CAGR return
for an investor in last 8 years. Today
it is valued at Rs 97,415 cr ($
14.53bn).
Avenue Supermarts Limited
(DMart) –
D-Mart’s success has lessons, not
only for rivals in the brick-and-
mortar space but also for e-
commerce companies, which are
struggling to make profits. The firm
has been focused on what it wants,
and its expansion has been measured.
In the first nine years of its existence,
till 2010, it had just 25 D-Mart
stores. Only after perfecting its
business model did the company re-
expands to around 118 stores. D-
Mart follows the strategy similar to
global retailer Walmart and does not
conduct discount festivals to raise its
sales. In its 15 years of operations, it
has never closed, moved or shut
down a store. It has been generating
profit for the last 5 years.
With a listing price of @ INR 299 on
21st March, the stock trades at INR
1599. Amazon.com Inc., the global
giant that’s investing $5 billion in the
Indian market, Flipkart Online
Services Pvt., the biggest domestic e-
commerce company, are yet to make
money in India, whereas Avenue
Supermarts said it had net profit after
tax of Rs 7.8 billion ($117.2million)
in the year ended March 2018.
Nonetheless, we have seen global
players sighting huge opportunity in
coming years with Walmart showing
interest to acquire and valued
Flipkart at $20bn.
Infibeam –
Infibeam is an e-commerce company,
focused on developing successful e-
commerce platforms and ecosystems.
In addition to Infibeam.com, a multi-
category B2C e-retail site, through
Infibeam BuildaBazaar (“BaB”) e-
commerce marketplace, the company
provides a cloud-based, modular,
customizable and scalable
technology platform as well as e-
commerce infrastructure and logistics
support for a diverse universe of
merchants, products and services. E-
commerce is estimated to be $ 101.9
bn by 2020. That is 6X growth over 5
years is been envisaged for e-
Commerce driven by factors like
new-age technology, convenience,
higher adoption rates, and larger
reach.
Infibeam listed in April 2016 has
generated ~237% return for the
investor since then. Today it is
valued at $1.49 bn.
R Jio –
Jio- Rise of Indian AT&T? - Build
multiple sources of revenue – While
data remains the primary source of
revenue for Jio unlike its rivals, the
real money lies in its premium apps.
JioOnDemand and JioBeats have the
potential to become Netflix and
Spotify of India respectively.
Besides, the company also looks to
make a profit by selling 4G enabled
LYF smartphones.
Jio is expected to generate Rs
50,000+ cr ($ 7,740 mn) revenue &
possible market value would be Rs.
100,000 – 120,000 cr ($ 18,575 mn)
in next 1-2 years.
Expert’s View
September 2018| 29

32. A global perspective
From a global perspective let me pull
out a few examples for you that have
followed the disruptive strategy. In
the late 90s and early 2000, Amazon
came up with online bookseller
model which forced established
bookstores likes, Barnes and Noble,
to scale down their operations. Today
Amazon is a complete market place
selling products across various
verticals: from food, grains to fast-
moving consumer goods | from
electronics to Music & Movies.
Amazon and Alibaba- the Chinese
retailer are two of the most
successful companies who have
emerged by disrupting the
conventional retailing.
Apple is another example who
disrupted the domination of HP, Dell,
IBM by dislodging their PC business
within a span of fewer than 5 years
when they came up with MAC
machines. Apple also dislodged Sony
from music and Nokia and Ericson
from the mobile phone business
Microsoft an erstwhile monopoly
player in windows operating systems
is now dislodged to no 3 positions by
Apple and Google in market cap.
And in the process, Apple grew from
$ 8 (Revenue 2000) billion company
to $ 229 (Revenue 2017)Bn company
commanding a market wealth of $
936 billion, which has grown @
CAGR of ~24% in last 17 years.
Google came much later after Yahoo.
It started off with search and now
they are having about several product
verticals including search, OS, maps,
autonomous cars, Home, (Cloud
Platform, Online business,
Person Finder, Firebase which
provides API that allows developers
to store and sync data across multiple
clients, Google Fiber, it is internet
network infrastructure using fiber-
optic communication and Google
Cast which lets you cast your
favorite entertainment and apps from
your phone, tablet or laptop right to
your TV or speakers. Their main
revenue comes from advertisement
amounting to $ 90.3 billion (88% of
Total revenue).
Google is now $ 110.8 billion
Company with the market worth of $
806 billion value. Google investors
have earned ROI of 25% on CAGR
basis over the last 13 years.
Tesla started off with an all-electric
car, buying an unused plant from GM
and Toyota in Fremont, CA. Starting
with sports car which would
accelerate from 0 to 60 mph in less
than 4.5 seconds, they went to
produce a luxury sedan, a 7 seater
SUV and now a mass market sedan,
likely to be launched in H2 of CY
2017.
They produced the 1st autonomous,
all-electric car which is driving on
roads in the USA. They went to the
height of disruption by opening up
all their patents or IPR and made it
available to all.
The investment in Tesla is now
valued at $ 54 billion and the stock
price is quoted at $ 318 as against
their IPO done at $ 17 per share,
some (7 years of listing) 13-14 years
ago, giving a whopping 52% CAGR
return to the investors.
Microsoft the legendary innovator of
windows operating systems and
office software faced the heat of
Android OS from Google and
packaged IOS from Apple. An
uncrowned King who ruled the world
with its OS for more than 2 decades,
is now standing down at rank 3 after
Google and Apple.
Quick enough in adapting to a new
era, MS still commands the valuation
of $ 782 billion and is among the 3rd
largest company by market value as
of now.
Make My Trip has bought a
paradigm shift into travel industry
over more than a decade now. It was
launched in US markets in the year
2000 to service needs of NRIs for
their Indo-American trips.
Operations in India began in 2005,
starting with flight tickets. A few
years later, Make My Trip got listed
in NASDAQ. Today it is valued at
$3.43 bn today.
In a nutshell, one common trait the
mentioned references belong to, they
all have emerged out disruptions, and
they have displaced established
players and have changed their
business model as they evolved
continuously. It is also very clear that
new age entrepreneurs are not averse
to think differently and think
transformation to chase their dreams.
Indian ecosystem is very well poised,
to transform the new generation start-
ups with help of angel investors and
build fortunes with or with.
September 2018|30

34. Equitree Capital Advisors
Enhancing Investor Returns through
Education and Technology Tools
Sowing
Seeds
of
Growth
Pawan Bharaddia
Founder
““
In the last couple of years, the Indian market has given
extraordinary returns. With that, a lot of portfolio and
wealth managers have mushroomed in recent times
leaving investors confused as to how and whom to rely on
for quality advice. In such a scenario, Equitree Capital
Advisors represents one of those PMS companies which
remain actively engaged with the investors and offer
nonchalant advice – keeping only investors interests in
mind and not flowing with the market sentiments. The
company ensures that investors understand their investment
strategy and risks associated with it well enough and set
their return expectations accordingly.
A Companion in the Growth Journey
Equitree Capital Advisors Limited started as a proprietary
investment office focusing on investing in emerging small
and micro-cap companies with a private equity approach. It
has recently morphed into a SEBI registered Portfolio
Manager and has opened its doors to accept third-party
funds from like-minded investors.
The company has been consistently creating alpha returns
for its investors by identifying emerging businesses early
and staying invested throughout the growth journey. The
Equitree team comprises of super specialists & focused
investors in small and micro-cap companies; companies
typically in the market cap range of Rs. 200 cr - 3000 cr.;
a domain largely catered to by High Net-Worth Individuals
(HNIs) or occasionally by a few semi-institutional
investors. The niche of the company is in identifying these
under-invested / under-researched ideas early on and riding
on the growth journey with them.
Leaders with “Touch & Feel” of Businesses
Pawan Bharaddia & Ssuneet Kabra, are founders of
Equitree Capital Advisors Limited and have been long-
standing friends for over two decades. Both are Chartered
September 2018|32

35. Management Service Providers in 2018
10The
PORTFOLIO
Most
Valuable
Accountants by education and bring in
forty years of collective experience in
investing and allied activities.
Pawan commenced his career with
global organizations like JP Morgan
Chase (then Chase Mahattan Bank)
and ABN Amro. He moved on to doing
private equity investing way back in
2001, a time when private equity as an
investment class was still in a nascent
stage in India. Since then he has had an
extremely successful stint making
investments in small and micro-cap
companies across a diversified range of
industries.
Ssuneet, on the other hand, has been an
in-house advisor to a range of small
and micro-cap companies. He has
dabbled in an entrepreneurial role
himself, managing his family
businesses also. He has been an
extremely astute and successful
investor in real estate. They bring a
unique combination of “touch and
feel” of how Indian businesses work on
the ground. This distinction has been a
cornerstone for the success of the
company.
Strategic Focus on Small Companies
Equitree’s investment domain is
flooded with high volatilities as these
businesses and promoters remain
untested by the larger markets and
therefore don’t find participation by the
larger institutional investors. However,
the experience in understanding of
businesses on the ground gives it an
edge to reduce these volatilities and
identify winners early on. Over the
years, the company has been able to
pick up the winners early across
different sectors like Defense, Building
Materials, Agriculture, and Industrial
Pipes and so on. These attributes
within the company have enabled it to
deliver a consistent IRR of over 25%
over the last six years. Protecting the
capital takes first priority than focus on
quick returns and it is more biased
towards downside risk protection even
at the cost of giving up riskier quick
returns.
The Distinct Products and Services
Equitree follows the classical
fundamental, deep value investment
strategy. Their maiden investment
scheme under the PMS - “Equitree
Emerging Opportunities” adheres to
this philosophy to the hilt.
This product is completely focused on
investing in small and micro-cap
companies. Typically companies in the
market cap range of Rs. 200-3000 cr
are considered in this category. These
companies are generally under-
invested and under-researched by the
markets.
Their proprietary research team looks
for a combination of high growth of at
least 20-25% during the investment
holding period, committed and
passionate managements with zeal to
scale up business and reasonability of
valuations before deciding on any
investment opportunity.
Creating value in a reasonably
de-risked manner
A natural growth almost always
follows a slow transformative process
but conditions for growth are not
constant and there is a constant change.
Whatever happens all of a sudden is
most probably unconstructive for
growth. Focus on returns is a
significant factor, but it is necessary to
first protect the capital of investors.
The right growth conditions are created
with utmost care and detailed attention.
This careful attention is what Equitree
offers to its clients for small and micro-
cap investment.
The company gives preference to the
downside risk protection and does not
mind giving up riskier quick returns.
Risk of negative returns is avoided by
keeping a watch for market valuation
risks along with management related
risks and liquidity risks associated with
the stocks in the portfolio.
Active investing through Constant
Monitoring
Equitree empowers its investments by
consistent monitoring of its portfolio.
Careful watch of industry changes,
monitoring of the company
performance, tracking the
developments within the company and
also on actions taken by the
management are part of the regular
monitoring of investment portfolio.
Equitree believes that successful
investing is not only in identifying a
right investment but is more in
knowing when to sell it – a close and
constant monitoring is what provides
the acumen to constantly review this
decision and maximize the returns for
investors.
Ssuneet Kabra
Founder
September 2018| 33

36. QED CapitalDemonstrating Consistent Performance for PMS Clients
We have
a few
simple ideas,
ruthlessly
executed
Anish Teli
Managing Partner & Principal Ofcer
““
The investment industry is going through a series of
changes. Increasing awareness among investors has
raised the bar for the entire Portfolio Management
Service (PMS) industry. Improvements in regulations are
directed towards transparency especially keeping in mind
the interests of the investor community. Investor friendly
disclosures, reporting, and other submissions have been
made mandatory for asset managers. There are very few
players like QED Capital Advisors LLP who are operating
on the principle of charging fees only after demonstration of
performance.
The Company with a Proven Track Record
QED Capital Advisors LLP (QED Capital) is a SEBI
registered Portfolio Management Services (PMS) firm. It
has the objective of being a boutique asset management
firm catering to HNI clients by providing them a simple to
understand, long-term investment product with a fee
structure aligned with interests of the client. QED stands for
“Quad Erat Demonstratum” – which translated to what
needs to be proven and demonstrated. According to
independent research, behavioural factors in decision
making are resulting in lower average returns for individual
investors compared to overall returns possible from stocks.
The aim is to avoid those biases by following a process
driven approach to investment. QED Capitals is one of the
few PMS firms in the country who does not charge a fixed
management fee. It only charges a performance fee above
a hurdle rate. As the name suggests, the company believes
in charging a fee only when it has demonstrated and proven
performance returns to its clients.
Competent and Committed Leadership
Anish Teli is the Managing Partner and Principal Officer
of QED Capital. He is a rank holding Chartered Accountant
September 2018|34

37. and an MBA from the Indian School of Business,
Hyderabad. He has been a successful investor in Indian
equity markets for over fifteen years. He has worked in
senior positions with private equity firms like ICICI Venture
and Morgan Stanley Private Equity Asia. During this time,
he continued to evaluate opportunities in the listed equity
space also. Beginning in 2011, he started focussing full time
on listed Indian equity markets. He also conducted research
and developed quantitative trading systems and has been
using them successfully since 2012.
The Purpose behind the Inception
The purpose behind starting QED Capital was to provide
clients with a simple, transparent and aligned investment
product. This would help compound their assets over the
long term, by tapping into the huge investment
opportunities India offers. The company provides services
for all, from UHNIs, Family Offices, and mass affluent
investors. The investor education campaigns and
demonetization have resulted in a shift in attitudes and
more savings are flowing into financial assets than physical
assets. Studies have shown that there is a ‘Behaviour Gap’
between returns of the market and returns which an investor
is able to reap from the market. The company wants to
bridge this ‘Behaviour Gap’ by applying process driven
decision making combined with disciplined execution.
Client Service with Unique Products
The company offers its flagship product ‘Alpha-Bets’ to
PMS clients. The objective is to generate the long-term
capital growth from an actively managed portfolio of
equities. Alpha-Bets’ works with investment method of
combining fundamental parameters with long-term
measures of momentum in a sophisticated manner. Alpha-
Bets is a suitable product for investors who are ready with
an investible surplus for the stock market for the period of
at least five years or more. Robust risk management ensures
the preservation of capital during adverse market
conditions. The portfolio only includes stocks which
confirm to companies’ stock selection filters and criteria’s
which help in delivering superior returns compared to the
benchmark. Since inception it has delivered returns (post
fees and expenses) of 16.84% p.a. vs benchmark returns of
11.7%. On the downside, the portfolio has seen a maximum
drawdown of 6.5% vs 9.94% of the benchmark. Hence,
QED Capitals has managed to do better on absolute as well
as risk adjusted parameters. The returns stated above have
been calculated by the custodian HDFC Bank and certified
by its auditors.
Simple Process for Reliable Results
In decision making, the company uses a mix of qualitative
and quantitative analysis in the stock selection process.
Investment process at QED Capital has three simple steps.
1. Investment Universe - Select 500 companies - market
capitalization > 500 Cr.
2. Quantative Filters - Reduce them to list of 80-100 - filters
Growth, EPS, RoE, overall strength.
3. Qualitative Filters - Reduce them further to 15-20 stocks
- Growing sectors, sector leaders, re-rating catalysts and
well-managed companies.
Preparing for Challenges
Some of the challenges in the industry are lack of a
standard way of evaluating the performance of a portfolio
manager. Many fund managers were deviating outside their
stated mandate called as ‘style drift’, in order to achieve
performance in the short term. Asset manager’s reputation
depends on the timely reporting of data, transparency in
fees, and portfolio performance. Technology is being used
to better manage routine transactions and managers are able
to focus more on value addition and customization to their
clients and investors.
Future Full of Opportunities
There seems a bifurcation happening in the asset
management industry. Companies are either very large and
standardized players or small/boutiques customized with
better alignment of client interests. The portfolio and wealth
management industry is still in its infancy in India. Indians
are getting richer by the day and PMS industry has yet to
reach them. There are about one lakh fifty thousand families
in India with the wealth of over 25 Cr rupees or more.
These families are expected to rise to around five lakh by
the year 2025. So, the companies will have to gear up in
terms of manpower to address this opportunity. PMS
providers like QED Capital Advisors LLP are coming up
with innovative solutions to address the need.
Management Service Providers in 2018
10The
PORTFOLIO
Most
Valuable
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38. INVESTMENT
PORTFOLIOS
INVESTMENT
PORTFOLIOSAn Undisputed Way to Create Wealth
Investing is the action of promising money or capital
towards an effort, with the expectation of obtaining a
return, additional income or profit. Investment is
significant to achieve financial goals and provides a buffer
for unforeseen expenses that may arise in future. As it takes
years or even decades for a seed to express itself into a tree,
wealth creation is also a slow process with its own gestation
period. Individuals aspiring to develop an investment
portfolio for wealth need to give their portfolio sufficient
time to grow into a wealth creator.
Investment Approach with Portfolios
There are various ways to invest but investing in the stock
market is a great way to generate wealth over a period of
time. Investing essentially refers to a long-term assurance
of money as opposed to short term trading or speculating.
Constructing a well-maintained portfolio is vital to any
investor's success in creating wealth. Short-term investment
also comes with associated higher risk. Intelligent investing
is the key to build wealth as risks are integral to it. The
business in which the amount is invested may go down in
value or even close down completely. It is important to
research about the businesses and analyze the risk before
putting in the money.
Structure of a Model Portfolio
As an individual investor, the model portfolio should meet
the future needs for capital. They need to learn how to
strike the right balance in asset allocation is best for
personal investment goals and strategies. This is regardless
of whether there are a dozen companies or a hundred in the
equity portfolio they own.
The general principle for an investment is that around half
of the portfolio should go for blue-chip or other well
established companies. The other half should go in
upcoming mid-caps stocks and the balance in small lesser
known companies with high potential for growth. The
stocks selected should represent a stable financial position
and a well-managed balance sheet. The real challenge of
building up a portfolio is to maximize earnings over the
holding period. Five to ten good stocks should be held
actively at any given point of time. For long term
investment in stocks, considerations may be the market
capitalization, CAGR, risk versus return and P/E ratio.
Risk-Return Trade Off
Risk and return are inherent components of any investment.
These two factors remain always relevant irrespective of the
investment in equity in the stock market, government
bonds, financial instruments, and real estate. While the risk
refers to the likelihood of incurring losses comparative to
the investment, the return indicates the actual gain or loss
generated from investment. There is no investment which is
completely risk free. The risk to return tradeoff is therefore
an investment principle that drives the profitability.
“Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will
always be needed.”
– Mahatma Gandhi
September 2018|36

39. September 2018| 37
Expert Views

40. Asset Classes - Building Blocks of a Portfolio
There are numerous asset classes in the investment market that relates to different levels of risk and return. The general rule
is that higher the return higher will be the risk. Public
and corporate bonds, fixed-income securities, cash, marketable securities, equities, stocks and commodities are the most
liquid asset classes. Investment in hedge funds, venture capital, crowd-sourcing or newly emerging crypto-currencies is also
considered under the asset classes by some of the analysts.
There is a bucket approach which offers a modest method for distributing assets and provides psychological benefits as
well. There is one occurrence that is frequently observed in the stock market that the returns from stocks vary greatly over
short periods of holding. But in the long run stocks consistently beat the rate of inflation and the return from other
investments.
Steps to Build the Wealth
Wealth creation is a long term process with a strategy driven by a well-crafted plan to generate returns. A little help from
the professional portfolio management service providers is recommended especially if the amount is higher.
A Blueprint of Wish List - The first step in any major project is to create a wish list and it is equally important to be specific
with the financial wish list. Most people have multiple items on their wish list - such as buying a house or a car, payment of
kids' college expenses, and generating income for retirement.
Prepare a Budget - The real work is in the details of the project. Investors should calculate an estimated amount required for
the project. They should also determine the monthly amount that is required to be kept aside for allocation as an investment
towards a short-term goal.
Diversify - Once the budget is ready the next step is the actual plan of the portfolio. Experts do not believe in a perfect
allocation but various types of assets have their own qualities that are appropriate for specific goals.
Wealth Creation Process
Wealth creation has its own way of unfolding which takes variable time as the investments made previously starts
accumulating returns. Even if someone suddenly gains enormous returns, there might have an equal and opposite adverse
situation either at one or multiple places to compensate for the sudden rise. Therefore, the wise portfolio advisers always
caution investors planning for wealth to wait and watch in a disturbed stock market.
With sufficient time, the power of compounding sustains the wealth and also multiplies it many times over. The wealth
creation, portfolio advisors say, is not a process of unbroken growth over the time period and is often back-loaded in the
given long-term period. The concentrated growth occurs towards the latter half of the investment period if the investors
have the patience to hold on to their goals even in short-term chaos of the market. Investing money is necessary for
allowing it to grow.
Minding the Life Goals
As investment grows the goal should not be profit maximization but to achieve the life goals that are decided. Major life
events in investor s life should be connected to portfolio review and possible revisions. Life events such as a job change, the’
birth of a child should result in revised allocation of assets. Even if there is no life-changing event, the review of the
portfolio should be carried out at least once a year. The returns generated from investment are further reinvested which
consequently show the compounding effect. Earning money on the money already earned is an undisputable way of creating
wealth over time.
September 2018|38

42. Sixth Sense VenturesA Smart Value Creator Fund for Indian Opportunities
in Consumer Brands
Investing
in the
CONSUMER
of
TOMORROW….
TODAY!
Nikhil Vora
Founder & Chief Executive Ofcer
“
“
Indian growth story is emerging with strong market and
resilient economy under the strong rule of law.
According to McKinsey&Company, investing with the
socially responsible impact assessment is a proper policy to
catalyze, and scale up the methods that improve millions of
lives. Indian consumers with large social needs and
companies serving them are surfacing as new wealth
creators. The greatest value is generated by identifying the
trend and investing in promising brands at a very early
stage. Sixth Sense Ventures is proud of its ability to spot
such trends and take calculated risks to create maximum
value for both the investors and investee companies. It
offers more than just capital to the investee companies
through its unique ecosystem.
A Fund for Consumer Innovations
Sixth Sense Ventures is a venture capital firm specializing
in growth capital investments. Founded in 2014 and
operating from Mumbai, it is India’s first domestic,
consumer-centric venture fund. The name ‘Sixth Sense’
indicates the intuition of picking the value trends early. It
invests in consumer innovations at an extremely early stage.
Investment for them is not a mere passive capital
commitment but an active endeavor for the business. Within
the core team, it has a cumulative experience of over
seventy years in the wider consumer domain which can
foresee trends together with deep insights. Its ‘Centre of
Excellence’ comprises of the best in class industry leaders
as mentors who are passionate about engaging with
entrepreneurs. Sixth Sense provides valuable strategic
inputs to the investee companies through its strong
ecosystem offerings like brand capital and backend
capabilities at critical junctures of their growth story.
September 2018|40

43. Sensible Thought Leadership
Nikhil Vora is the Founder and Chief Executive Officer
of Sixth Sense Ventures.
Nikhil is regarded as one of the strongest analytical minds
in the country with 25 years’ experience in Consumer
Domain. These are some of the features in his cap -
t Ex - Managing Director and Head of Research at
IDFC Securities
t Voted as India’s No.1 analyst in the Asia Money polls
Asia’s Best Analyst by the Wall Street Journal
t Thought Leadership Award from IDFC Ltd
t Member participant at the Future Leaders Program at
the Saïd Business School, University of Oxford,
London.
t Invited by the ‘Nestle Global Consumer Board’ and
‘Hindustan Unilever’ to evolve a critical and strategic
roadmap.
t Amongst the First Investors (Personal capacity) in
PayTm (One97); Vini Cosmetics (Fogg), Parag Milk
(Go); Kangaroo Kids / Billabong High; BVG Ltd;
Purplle.com; Bewakoof; Infinite Analytics; Saucery
Brands etc.
In-Depth Intuitive Strategies
Sixth Sense Ventures are known for its several strategies
developed by core team with their in-depth analysis and
insights from market trends. These strategies start with
product specifications which include identifying businesses
which have created a unique presence in the large space. In
turn, these spaces are selected based their large potential
such as sectors dominant with a duopoly. Value Creator
strategy seeks to invest early and thereby create the largest
value for clients. Risk Appetite is crucial to investment
strategy at Sixth Sense and ability to take calculated risks is
its core strength.
Unique Products and Services Focused on India
Sixth Sense has developed a unique ecosystem of products
and services that are built with the inherent strengths of the
company. It has launched two schemes to cater to the needs
of different investors.
Sixth Sense India Opportunities I (SSIO I) – It is the first
scheme launched in Nov 2014 with a corpus of 118 Cr
rupees invested across ten companies. This scheme is
representing India’s first consumer-centric domestic venture
fund and has already invested in exciting successful
ventures. Eight of them have already seen significant
up-mark with follow-on investments. SSIO I investments
show a very high rate of return at 2.3x MoC with two of
listed ones measuring up by seven to nine times within the
period of one and half years. The scheme has already
started returning capital to investors in its third year.
Sixth Sense India Opportunities II (SSIO II) – It is the
second scheme launched in Nov 2017, with a corpus of 250
Cr rupees (+100 Cr green shoe option). This fund has
invested in six interesting companies and portfolio is
diversified across sectors like Edutech, Healthcare, Supply
Chain, and Personal care & Hospitality. The continued trust
of investors in the schemes is realized by the fact that
eighty percent of SSIO - I investors have committed to
invest in SSIO - II as well. SSIO II is currently active and
expects to announce close in next 2-3 months.
This scheme is investing in companies for its portfolio with
four major factors. The companies operating in large spaces
or scope of business with huge potential for growth in the
market; the companies owned or managed by first-
generation young entrepreneurs are also preferred;
Identifying companies offering ‘niche’products for
consumers within the large universe, and companies whose
promoters have the ability to take calculated risks are
central methodologies.
Forecasting Future Trends
The company develops its strategies based on the next big
wave of productive functional growth. Entrepreneurs with
entirely diverse skill sets and capabilities, not necessarily
the capital, will be the front-runners in growth. The core
team is engaged with a vision to create a future organization
that gets recognized as a medium for investments for all
types including angel, venture, private, and listed in
consumer-centric businesses in India. Ultimately, the
performance of Sixth Sense Ventures depends on the
financial returns it delivers to the investors and whether it
gets back repeat business from the promoters supported by
the company.
Management Service Providers in 2018
10The
PORTFOLIO
Most
Valuable
September 2018| 41

44. SMC Investments and Advisors
Enabling Wealth Preservation and Enhancement
with Optimized Returns
Building
Wealth,
Enriching
Lives
D. K. Aggarwal
Chairman & Managing Director
““
Emerging economic policies of the government like
demonetization and GST have created the favorable
situation for investors resulting in record inflows
into financial products. Investment companies like SMC
Investments and Advisors are reaping the fruits of this
opportunity by providing an optimal combination of value,
growth, and quality investment options to HNI investors.
The Diversified Group
SMC Investments and Advisors is a part of the prestigious
SMC Group. Established in 1994, SMC is a well-diversified
financial services company based in India and abroad,
offering one-stop investment solutions in trading &
investments. The group has a highly efficient workforce of
around three thousand employees and over twenty thousand
registered associates/service providers for distribution
segment. It offers advanced brokerage services with cutting
edge technology. Services are available across almost all
categories of asset classes like equity, derivative, currency,
and commodity. It also serves in domains like financial
analytics, mortgage advisory, investment banking, real
estate advisory, distribution of financial products and
financing.
Advisors with Strong Research Backup
SMC Investments & Advisors is a SEBI Registered
Portfolio Manager. SMC Portfolio Management Services
(PMS) have been designed to cater to the individual
investment objectives of different investor classes. There
are very few wealth management companies in India who
are following research oriented and methodical approach in
India. Companies like SMC Investments and Advisors is
one of them equipped with a large dedicated team of the
best talents in the country for research-based investments.
September 2018|42

45. Strong commitment to research empowers the analysts to
focus on robust valuation techniques.
Entrepreneurial Leadership
D. K. Aggarwal is Chairman & Managing Director of
the SMC group of companies a Fellow Member of The
Institute of Chartered Accountants of India (ICAI) with
over two decades of experience in the securities market &
financial services.
He has got the prestigious “Entrepreneur Excellence Award
2016” from PHD Chamber of Commerce. He is the Vice
President of “PHD Chamber of Commerce”, around the
113-year-old business chamber. Apart from this, he held the
following positions:
• Vice President, PHD Chamber of Commerce and
Industry.
• Former National President of CPAI.
• Member, BSE, MSEI, NCDEX & MCX Board
Advisory.
• Former Chairman, Capital Market Committee &
Chairman of Banking Committee & Commodities
Exchange Task Force of PHDCCI.
• Former Chairman, Legal & Technical Guidance
Committee of (ANMI-NR).
• Former Co-Chairman, All India Business Development
Committee of ANMI.
Wide Range of Products and Services
Being an unbiased advisory to the clients based on the
strong research is the unique proposition of the company.
SMC always endeavor to enhance and preserve investors’
wealth for the long-term. The company’s product kitty is
unique, which differentiate it from competitors. Some of the
innovative product and services offered to the clients are
given below.
Investment services – These are Broking/Institutional Desk
which includes Trading and Clearing member on NSE and
BSE in Cash and F&O segment, Commodity Broking on
MCX and DGCX & Currency Trading. Portfolio
Management Services: (In-House & Third Party) It includes
Equity PMS and Quant Based Portfolios. Wealth
Management Services include structured products, Private
Equity & Real Estate Solutions, Wealth Builder Process,
Financial & Investment Planning, and Alternative
Investments.
The Financial Services – These are mainly Distribution of
IPOs & Mutual Funds, Fund Mobilization through the
distribution of Debt Instruments & Corporate Fixed
Deposits. The company is facilitating all categories of
Alternative Investment Funds (AIFs) to the clients.
Insurance Broking is done for both Life & non-life
Insurance Products. Financing & Loan Syndication
Providing Loans against Securities & Properties, Business
Loans to SMEs. It is also facilitating debts by tie-ups with
approximately forty banks and NBFCs. Investment Banking
Corporate Advisory, Debt Syndication, FCCB, IPO, FPO,
and Rights Issue, Providing Investment Banking Services
for Private Equity, M&A, Debt Advisory.
Advisory Services – These includes Real Estate Advisory
which provides Real Estate Solutions to Investors,
Corporate and Developers across the Country. NRI & FPI
Services providing Trading facilities in Equity &
Derivatives and Investments in IPOs & Mutual Funds to
NRIs & FPIs. Depository Services are provided for both
Equities and Commodities. It also facilitates opportunities
for investors to participate in the Unlisted Equity space. It
offers different kinds of Structured Products like Equity
linked capital protected or unprotected. The Parent
company is one of the POPs for National Pension Scheme
and has tied up with different players for Trust & Will
Services.
The Future Challenge of Technology Adaptation
Technology plays a major role in term of execution of
clients’ investments and reporting the portfolio of the client.
Robo advisors are becoming popular as they are automated
to execute a financial investment plan and also make instant
health checkup of portfolio investment suggestions, manage
money, and save taxes. The company is mitigating these by
arranging updated software and latest client reporting tools
available in the industry. Retention of talented finance
experts is another major challenge in the portfolio
management industry is facing today. SMC follows best HR
practices for its employees to build a strong team for the
upcoming future.
Management Service Providers in 2018
10The
PORTFOLIO
Most
Valuable
September 2018| 43