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ENS ECONOMIC BUREAU
MUMBAI, Oct 10: Faced with erosion of institutional business, major Mumbai-based broking houses are refoccussing their business to target the retail investors. While Parag Parikh Financial Advisory Services (PPFAS), a multi-dimensional financial company engaged in stock and debt broking on BSE and NSE, has designed a unique advisory package for the investors at an annual cost of Rs 2,000, Altina Finance, a Sebi registered portfolio manager has launched three portfolio management schemes.
PPFAS has launched "Odyssey", an investment planning package, which seeks to provide a guide to formulate a balanced and disciplined portfolio of investments and keep investors updated on new investment opportunities.
"The scheme has been launched with the objective to help investors optimise their existing investment portfolio and to achieve maximum returns with minimum risk," explained PPFAS chairman Parag Parikh. "As a client of Odyssey, the investor will have access to all PPFAS services in equity, debt, mutual fundand research," he added.
The minimum portfolio of a client who wants to avail the membership of the Odyssey family is Rs 3 lakh. The portfolio of the investor will be evaluated and upgraded on a quarterly basis.
Interestingly, unlike many other portfolio managers who rely on the "game of numbers", Parikh believes in tracking the blue chip companies who have a futuristic approach. His investment strategies have been designed with a long-term perspective. Parikh has also decided to participate in the investor education drive, spreading the depository culture. PPFAS also has an investment scheme called Cognito Asset Management scheme.
Deloitte Haskins & Sells has audited and certified the company's financial accounts for the year 1996-98, the funds held by the company under the portfolio management scheme.
However, Altina Finance's Clifton Desilva believes in "making hay while the sun shines". The three schemes floated by the finance company, Asset Income Scheme, Asset Income Plus and Asset Advice havebeen designed to meet the specific investment objectives of different classes of investors.
The Asset Plus scheme has been designed for investment mainly in the secondary market with the objective of maximising capital appreciation. The company has been of the strong opinion that in the current market scenario the investor needs to follow the strategy of "buy and sell". In other words they should trade, rather than hold the stock for a longer period.
Interestingly, considering the market risk in terms of the volatility witnessed on a daily basis, the company has decided to accept all the portfolio only in cash and not in the form of securities.
The Asset Income scheme and the Asset Income Plus scheme has been designed for investment in equity and debt instruments. The Asset Advice scheme is a two-tier scheme which focuses on both restructuring of portfolio and advice on investment strategies. Mirroring the success of the company in terms of the Asset Advice scheme, it has already garnered a huge fund ofRs 100 crore.
Meanwhile, Motilal Oswal Securities, a Mumbai-based broking outfit, is also involved in a similar type of advisory and portfolio manager role. However, Prabhudas Liladhar who runs one of the leading BSE brokerage houses, has decided to step into this arena in the first quarter of 1999.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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