Products

Advisory PMS is an offering from JM Financial Services exclusively for high networth individuals and corporates having large direct equity portfolios.

Adopting a consultative approach with the Client, our Portfolio Manager aims to generate absolute returns by recommending companies with strong business model led by credible management team for medium term wealth creation.

With a strong research support that tracks both companies and macro-economic factors we assist our clients to build a broad-based quality portfolio with a judicious mix of long and medium term investment ideas with strategic and tactical cash allocation strategies. The client actively participates in the investment process and has complete control over investment decisions.

The Advisory PMS product not only enables our client act timely on investment opportunities but also have an expert view in the monitoring the portfolio to match risk-return expectations, include diversification within is investment constraints.

Ideal for clients whose busy schedule does not permit them to track the markets actively, Discretionary PMS enables management of investments in a guided, hassle-free and transparent manner. As per SEBI guidelines, the client makes an outlay of minimum of 25 lakhs on seeking to avail PMS services.

Our fund management team with a collective experience of over 100 years holds the skills and ability to visualize changing economic dynamics, thus, enabling the construction of a concentrated portfolio with higher weights to preferred sectors. Our general strategy has always been to buy and hold good quality companies that can survive the downturn and come out stronger due to their superior businesses.

Broadly portfolios are suggested and initiated based on the client’s investment objectives and risk appetite. Thereafter portfolios are closely monitored and rebalanced to reduce investment gaps. This is strongly backed by thorough research coverage of viable sectors and stocks along with an astute allocation strategy taking into consideration several domestic and global trends.

The team manages 3 discretionary portfolios – Focus, Growth and Value (G&V) and India Resurgent Portfolio 3 (IRP3) exclusively. While every portfolio caters to a specific investment objective, universally the underlying strategy is to buy and hold good quality companies that can amicably survive through volatilities of their businesses and come out exceptionally strong during an upturn in their business cycle.

With a vast experience and strong delivery network, we are one of the prominent distributors of mutual funds. Given that mutual fund houses extend a buffet of schemes based on investment objective, underlying asset classes, investment horizon, type of returns, etc., it becomes increasing challenging for clients to construct a prudent mutual fund portfolio.

With our expertise and intensive selection process, in simplifying and yet constructing an effective mutual fund portfolio we assist our clients in achieving their investment objectives/financial goals. So to begin with the client's risk appetite and cash flow requirements are taken into consideration.

Once the investment objective is clear the next step is to formulate an asset allocation derived from risk profiling and identify/select appropriate mutual fund schemes. The investment horizon for an investment in a mutual fund can vary from 1 day (liquid fund) to about 3 years plus (equity/long maturity debt funds).

At JM Financial Services, we have a dedicated Mutual Fund Research Desk which provides recommendations for mutual funds through thorough research and analysis. Mutual fund schemes are evaluated on an ongoing basis by our proficient mutual fund research team in terms of:

• Credentials and track record of the fund house and fund management team.
• Process and risk management of the fund house.
• Risk adjusted performance measures of the scheme versus benchmark and peer group.
• Investment style and portfolio quality of the scheme.
• Services offered by the mutual fund and how investor friendly it is in terms of operational efficiency.
• Transparency, which is reflected in the quality and frequency of its communications.

Our teams evaluate the past performance of the funds itself and its comparison in relation to appropriate benchmarks as well as other funds in the same category to present an appropriate picture to our clients.

With this offering we distribute fixed income products such as Company Fixed Deposit Schemes, Non-Convertible Debentures, Government of India Bonds, 54 EC Capital Gains and Infrastructure Bonds, Senior Citizen Savings Scheme, etc. to clients who are interested in a steady income stream but want to indulge in low-risk products. The income may be received at fixed intervals or at the end of a specified time period whereas the principal is repaid to the client on maturity or on the call/put option exercise date.

Backed by good credit rating and attractive yields such products offer the scope of not only creating wealth but also act as investment protection vehicles as they tend to balance out the higher risk products in the portfolio. We analyze the entire spectrum of fixed income products and present opportunities that address the investment needs at different stages of life cycle of a client.

JM Financial Services extends fixed income products to its clients from both the Primary as well as Secondary market, in accordance with their risk appetite and investment horizon.

Apt for high net-worth investors, through Structured Products we offer tailor-made integrated product solutions that can be attuned to the investment profile and risk appetite of our clients thus providing efficient diversification to the investment portfolio.

Essentially, we aim to enhance the return on investment instrument (say equities, fixed income, etc.) while investing in a complementary instrument (say derivatives, etc.) which balances the risk and acts as a payoff on the returns when the markets take an averse turn than the view held by the client.

Some of the Structured Products offer principal protection which is to say that they offer full or partial return of the principal invested at maturity. While others offer debt like payoff or even leveraged returns.

Though structured products are prescribed for risk averse investors, it can be a vital component of the portfolio for all kinds of investors to stay ahead of the market dynamics especially during downturns. Thus structured products:

• Enables investors to express very specific market views and monetize the same
• In case of capital protection, preserves buying power in market downturns
• Are highly customizable, subject to minimum corpus size
• Ability to tailor their returns to provide capital growth, income or even a combination of the two

Various types of structured products that are offered are Auto-call, Market Participation, Knock-Out, Golden Cushion, Enhanced FMP etc.

Other than the traditional modes of investment of equities, fixed income and cash, through Alternate Investment Fund (AIF) we offer our clients an investment vehicle through which they can invest in non-traditional options such as real estate fund, private equity, hedge funds, etc. AIFs are ideal for high net worth individuals, institutional and corporate customers.

These funds broaden the investment avenues by diversifying the client’s portfolio through an extensive range of products such as Private Equity, Residential & Commercial Real Estate services, Real Estate Funds, Hedge Funds etc.

AIFs are categorized into the following three categories:

• Category-I: These funds generally invest in start-ups or early stage ventures, social ventures, SMEs, infrastructure or other sectors which are considered socially or economically important for the country.
• Category-II: These include private equity funds and debt funds. Private equity funds and debt offers investment in diversified portfolios managed by experienced fund managers in line with well-defined investment strategies. Hence they serve as a wary investment alternative as well as a mechanism to hedge.
• Category-III: These include hedge funds and undertake leverage to a great extent. Hedge funds are aggressively managed and use several types of strategies such as leveraged, long, short and derivative positions in both domestic and international markets.