At Nabil Investment Banking, we pride ourselves to be one of the best providers of Portfolio Management Services – both discretionary and non-discretionary. We are one of the top companies in Nepal with one of the highest assets under management – total portfolio (investments) that is managed for all of its customers.
Oftentimes, we are asked why one should buy a portfolio management service? We believe this question is answered by asking oneself why you should NOT get a portfolio management service. There are specific solutions / features that Portfolio management service at Nabil Investment provides. If you can manage these on your own, there is no need for you to get a PMS service.
These reasons are:
- If you have ample of time
Often an investment decision needs a lot of deliberation. This requires both expertise and time. When we asked our clients, why have they delayed investments till now, we often get answers like:
“We were not sure what strategy would be better for us.” “I understood my goals with investment, but was not sure how to pick stocks and always postponed my decisions.”
This is common and understandable. From experience, the answer to both of the questions above and similar ones need time – and ample of it. In today’s complex world of investments (which has grown more complex in the past years), it could be a full time job managing your portfolio.
At Nabil Investment, its PMS (Portfolio Management Service) wing helps customers who want to get the benefits of investment but have no time.
But, if you have time on your hands and can dedicate ample amount of it to research and compare your investment performance, you should not choose a Portfolio Management Service.
If you have a very good rapport with your broker
It is one thing to understand your strategy and successfully picking stocks to match your strategy, and entirely different thing altogether to implement and carry out that strategy through money market instruments.
We have seen multiple instances when communications between the broker and clients fail and the decisions are implemented at a completely different time period altogether defeating the purpose of the investment decision altogether.
Experienced investors and investment management companies will have a really good working relationship with their brokers and can implement the needed investment decisions very swiftly and at the right time.
At Nabil Investment PMS, discretionary or non-discretionary portfolio clients – both benefit from our powerful working relationships with the brokers.
But, if you have a good rapport with your broker, you could decide not to engage with a Portfolio Management Service provider.
- If you understand the fundamental analysis
People who have some knowledge of the finance world (may be through university courses, experience or general know-how) will appreciate the importance of fundamentals while shaping your investment decisions.
Fundamental analysis involves learning several theories and mastering them in order to understand the working of the companies and if the stock can generate results as per your investment goals. This involves looking at the company’s financial statements; analysing their investment and revenue patterns to forecast their possible returns to the shareholders.
At Nabil Investment, our Portfolio Management Service team regularly monitors and prepares a comprehensive report on the fundamentals of each company before picking or dropping them from a client’s portfolio.
If you have a good understanding of fundamental analysis of the stocks / companies, you may be able to manage your portfolio yourself – without hiring a professional portfolio management company.
- If you understand the technical analysis
When you master your fundamentals, you will soon understand that Nepal’s stock market, depending on your analysis, is either inefficient or shows a very weak form of efficiency. What this means is there could be factors other than just fundamentals that significantly affect the portfolio outcomes.
In situations like these, it is equally important to understand technical analysis. Technical analysis is a forecast tool based on charts and several statistical tools which tries to predict the share market sentiments.
One of the most important outcomes of technical analysis is to predict the support and resistance prices for the stocks that you are buying or selling. At Nabil Investment, our experienced Portfolio management teams not only track different stocks but are also very skilled in determining the support and resistance pricing resulting in entering into a trade at the right moment.
But, if you are one of the few people who understands Technical analysis and understands the theories and sentiments behind support and resistance prices / points of the stock, you may choose to manage your portfolio on your own.
- If you understand the buyers / share market sentiment
Sometimes, the support and resistance pricing and points are breached. This is something that our stock market has seen multiple times in the past. This often happens when the buyers/ share market sentiment reverses without any foreseeable cause.
It takes an experienced campaigner to understand and forecast the market sentiments. Our portfolio management service team regularly enters into meaningful conversations and observations with several parties that shape up the share markets. These include the regulatory publications, investors, traders, brokers and other participants of the share markets. This gives our experts a clear understanding of buyers / share market sentiments and makes our Portfolio management service one of the best in Nepal.
However, if you are also good with understanding buyers / share market sentiment, you may do without a portfolio management service.
- If you don’t want to get analysis reports of your portfolio
Another important facet of portfolio management is to track the results of your investment and regularly monitor them to check if they are meeting your investment goals.
At Nabil Investment, your relationship manager (assigned to you for each of your portfolios managed by us) will provide you with periodic updates and reports on performance of your portfolio. Our relationship managers will discuss your portfolio performance and how it is compared as per different success factors identified for example the hurdle rate, minimum returns expected, etc.
Our Portfolio management tracking software, which you will have access to will also provide you with day to day updates of your portfolio. This means that you will know your exact net worth every day, if you wish to.
However if you don’t want to get these reports and are not worried about your portfolio aligning with your financial goals, you should not get a portfolio management service.
- If you don’t really care about your investee company’s performance
Great investors like Warren Buffet say that one of the success mantras of investing is to understand the company you are investing in inside out. If you don’t understand how they operate and what could impact their performance, then you will not be able to put the most appropriate bets on them.
As mentioned earlier in this blog, our PMS executives carry out a detailed analysis of the company and its performance parameters. This information informs all our investment decisions and hence often confirms with our investment strategies.Furthermore, both kinds of our PMS customers – discretionary or non-discretionary, benefit from these insights.
But, if you are the kind of a person who does not really want to get into the nitty-gritty of your portfolio company’s performance, you could do without a portfolio management service.
Like we mentioned in the beginning, there are several reasons why you may not want to get the Portfolio management services. But, if you have doubts about any of the above that we discussed just now, you should talk to a portfolio management service provider today.
Infact, Nabil Investment has a diverse range of PMS services based on the kind of risk or returns you expect from your investments. For example, if you are a new investor, you should think about the Dhanalaxmi Portfolio Management Service this Tihar. When you get this service, the company also provides a free silver coin for you and your family to celebrate Dhanteras.
This offer was valid for the year of 2078. To learn more about Nabil Investment PMS service and other investment banking services, contact us today.