The gap it fills
Most advised Indian equity allocations are, in aggregate, a diversified large-and-mid-cap position assembled from several funds that own many of the same businesses. Adding another one changes the fee, not the exposure.
A concentrated Quality and Momentum mandate genuinely diverges from that. Twenty-odd positions selected on strength in earnings and strength in price, with a rules-based exit discipline most diversified products do not operate, produces a return stream that is not simply another draw from the same distribution.
The conversation it creates
Divergence cuts both ways, and the downside quarters are where a distributor earns their position in the relationship. We would rather arm you for that conversation than pretend it will not happen.
That means: a clear statement of the environments where the strategy underperforms, a suitability questionnaire that screens out the wrong clients before they invest, and direct access to the portfolio manager when a client wants to hear it from him.
What we ask of you
- Position it as a satellite allocation, not as core equity exposure.
- Use the suitability questionnaire. It exists to protect your relationship, not ours.
- Set the horizon expectation at the outset and in writing.
- Tell us when a client is unhappy early, rather than at redemption.
We will tell you who this is wrong for
A mis-sold PMS becomes your problem, not ours — you inherit the client conversation and the redemption. We would rather lose an allocation than place it badly, and we say so on the record so you can hold us to it.
- Positioning
- Satellite equity allocation, alongside diversified core
- Typical sizing
- A minority share of a client's equity allocation
- Horizon to set
- A full market cycle, not a calendar year
- What to avoid
- Clients who will benchmark it monthly and act on the gap