Nippon India PMS
PMSIME's View on Nippon India PMS
AMC View
Nippon India AMC PMS faces challenges common to large MF-driven PMS houses, such as PMS being an add-on instead of a distinct business unit, turnover in the investment team, lack of commitment from the CIO, and vague investment philosophies. Despite potential advantages like distribution support and research access, MF-driven PMS's generally do not match the performance of founder-driven PMS houses with strong CIO leadership. In addition, with Nippon PMS having recently experienced senior team churn, we would wait for the new team to stabalise prior to recommending Nippon PMS funds.
AMC Pedigree
Nippon India AMC is a top-5 asset manager in India, known for managing mutual fund assets. While being part of a larger asset management house has its benefits, their pedigree in PMS cannot compare to investor-driven PMS companies with stable investment teams and defined processes.
Team Pedigree
High FM/team churn risk for AMC-driven PMS firms due to lack of stake in the firm. Varun Goel, with Nippon PMS since 2017, left in Mar-24 to join Mirae MF.
Investment Philosophy
The investment philosophy focuses on being benchmark agnostic, concentration, and following the Must 5 framework, providing flexibility for interpretation by the fund manager.
PMS Background
As part of one of the larger Mutual Fund Houses, Nippon PMS benefits from the substantial research, broker & corporate access and distribution strengths of the Mutual Fund. AMC Driven PMS House Although the PMS House is started from the larger Mutual Fund house and has the benefits from substantial research broker and distribution which would aid in scaling PMS. The PMS house lacks in a clearly defined investment philosophy and lack of skin in the game for the CIO.PMS Investment Philosophy
Nippon India PMS aims to create wealth by creating benchmark agnostic concentrated portfolios of quality stocks, based on fundamental research-driven bottom-up stock picking. Nippon India PMS follows a ‘Must 5’ Framework:- Business Potential: Looking for businesses with growth opportunity & sustainable competitive advantage.
- Corporate Governance: Businesses having a fair treatment for minority shareholder, promoter track record, accounting red flags.
- Promoter ownership: having equity dilution, share pledge
- Capital allocation: unrelated diversification, leverage
- Earnings track record: consistent performance across business cycles on revenue, EBITDA, PAT growth and profitability ratios.
Uses a Bottom-up Approach for stock picking to create a benchmark agnostic concentrated portfolio with the aim to create wealth
Suitable For Investor's seeking the comfort of investing with an established and large brand, but desiring higher risk-returns than MF strategies.Investment team
Rahul Veera | 3-star rated FM
FM | 15 yrs Experience | 2 yrs at current firm
Past Experience: Abakkus (FM), Elara Capital (AVP), Edelweiss (Sr Research Associate)
Rahul Veera currently serves as the Fund Manager (Equity) at Nippon India AIF, boasting over 14 years of extensive experience encompassing Equity Research and Fund Management. He has previously worked with renowned organizations including Abakkus Asset Managers, Morgan Stanley, Edelweiss, and Elara Capital. He holds a Bachelor of Commerce degree from H.R College (Mumbai University), an MBA from Swansea University (UK), and an Executive Finance certification from the Indian Institute of Management (Calcutta).
