Morningstar Investment Adviser India launches portfolio management service

Morningstar Investment Adviser India, which recently received approval from the Securities and Exchange Board of India to start portfolio management services, has launched Morningstar Managed Portfolios.

Morningstar Managed Portfolio is a discretionary portfolio management service (PMS) for investors in India.

Morningstar Investment Adviser India is a subsidiary of Independent Investment Research Provider Morningstar Inc.

Under the Morningstar Managed Portfolios, the investment adviser will launch four risk-aligned multi-asset portfolios such as Morningstar Active Balanced Portfolio, Morningstar Active Growth Portfolio, Morningstar Active Aggressive Portfolio and Morningstar Active Aggressive Plus Portfolio.

Each of these portfolios is created by combining asset allocation research and independent fund selection.

The PMS industry has witnessed a robust compounded annual growth of 18 percent in the last five years from January 2014 to January 2019 with AUM rising from Rs 6.04 lakh crore to Rs 13.70 lakh crore.

Morningstar will compete with the likes of Motilal Oswal PMS, Kotak PMS, and Aditya Birla Sun Life PMS.

Multi-asset strategy

The Active range of Managed Portfolios will follow a multi-asset investment strategy by investing in asset classes such as domestic equity, fixed income, cash, international equity and gold which will be based on Morningstar’s valuation-driven asset allocation approach. 

The universe of Portfolio holdings will include direct plans of actively managed mutual funds and/or passively managed mutual funds domiciled in India.

These funds will be led and managed by Dhaval Kapadia, Director and Portfolio Specialist at Morningstar Investment Adviser India along with the team of research and investment analysts.

The firm aims to raise Rs 1,000 crore AUM over the next two-three years.

“With a variety of risk-tolerance profiles, our managed portfolios reflect our valuation-driven asset allocation and investment selection expertise,” Kapadia said.

Morningstar Inc already has PMS in four countries; the UK, the USA, Australia and South Africa.

Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, and real-time global market data. 

Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $193 billion in assets under advisement and management as of December 31, 2018. The company has operations in 27 countries.


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