Earlier this year, an investor complained about his PMS, or portfolio management service, provider: “I don’t think my managers were all that smart. Also, I didn’t like the fact that they never met me personally. What is the use of PMS if they don’t give privileged services… like special movies, clubs and lunches?” And the returns he got from his PMS? 180 per cent! A case of a spoiled, greedy customer?
In the bull run till early 2008, it was common to see clients being little concerned about the expertise and accountability of their PMS providers, as long as the returns and gifts kept coming in.
(This story appears in the 22 January, 2010 issue of Forbes India. To visit our Archives, click here.)
I think this investor is complaining about FAMS, Financial Assets Managed Simply. They gave me similar returns but we never get to interact or meet the fund manager. I had invested Rs. 50 lakhs 4 years ago when I sold my property. Today that sum is Rs. 3 crores even after they deducted all charges but still have not got the chance to meet my PMS managers, but I am more than satisfied with the returns.
on Feb 8, 2010