RelMoney to launch portfolio mgmt in Jan

Reliance Money, the financial services arm of Anil Ambani group company, Reliance Capital, is all set to launch portfolio management services (PMS) on the occasion of Makarsankranti, on January 15, 2008.

The service targetted at executives and professionals in metros and smaller towns, would be available with an investment limit of between Rs 5 lakh and Rs 75 lakh only.

"It would have an unique value creation, positioned for the masses at the retail level," said Sudip Bandyopadhyay, chief executive officer, Reliance Money.

Typically, PMS in India are targetted at high net worth individuals, who can invest at least Rs 50 lakh and more, with the usual entry barrier set between Rs 50 lakh and Rs 1 crore, but the company would want to be a pioneer in bringing down the entry level at the lowest possible limit, mandated by the industry regulator, Bandyopadhyay said.

"Portfolio management has been an exclusive club and we want to break that thereby opening the market at the retail level," he added.

Another highlight of the scheme would be that no fees would be charged unless the return is 8% or more.

However, if the return is between 8-20% it would charge 10% as fees, whereas for returns above 20% the fees would be 20%.