Author : Aequitas

Our founders, Siddhartha Bhaiya and Neerav Shah started Aequitas in 2013. Between them, they have a combined experience of more than 40 years in the Portfolio Management Services or PMS space. As industry veterans, Siddhartha and Neerav understand what to look for when identifying multibaggers. And, just as importantly, they also understand what not to do when operating a PMS.

PMS as an investment vehicle holds tremendous opportunity for wealth creation. While there is a high entry requirement for investors, the standard PMS portfolio is much more concise as well as customised than a mutual fund.

What’s the Goal of Our PMS Services?
From Day 1, we at Aequitas have been clear about our overall objective towards PMS funds – maximising returns. We knew that if we militantly adhere to our investment thesis with a singular vision of outsized returns, other metrics of success will follow.
This belief system has worked for us so far, as we have consistently delivered exceptional returns in the PMS space – we have been able to organically grow our investor base, AUM and organisation size.

Quality of Research
Picking stocks, as a study, is an amalgamation of macro and micro factors. From analysing company financial statements, dividend history, corporate governance to understanding the industry market cycle, political and economic changes; all this barely scratches the surface. The point is that picking stocks is time and research intensive.
All portfolio management companies in India invest heavily in research – this is the cornerstone of picking the right stocks. We at Aequitas rely on primary reports, to develop an independent view of a stock or a business. All listed companies publish primary reports that offer a direct, undiluted view- our exceptional research team leverages these reports and past meeting recordings to understand the nitty gritty of a business.

Something For Everyone
An investment strategy is the style of investing that is followed – be it large Cap, mid cap, small cap, flexi cap or anything else. Some investors follow a particular investment philosophy and do not deviate from the same.
We believe that it is much more beneficial to perfect what you know best, than it is to waver and chase after the next crowd favourite. Which is why we stick to our sole investment philosophy without trying to cater to different styles.

PMS Services in India, the Aequitas way
Coming back to Siddhartha and Neerav in 2013, they founded Aequitas with a simple vision – creating an investment company with a singular focus on maximising returns.
It is said, ‘be the change you want to see in the world’. We believe that is exactly what we have done at Aequitas. Keeping in mind what we feel is required to be the best PMS service providers in India, we at Aequitas strictly adhere to our own rulebook:

● We don’t work with any intermediaries or third party
● There are no AUM targets
● We onboard no more than 25 new clients per year (in the PMS)
● One on one relationship with clients
● We invest in businesses not stocks
● Heavy focus on pedigree in our team
● Primary research for analysing companies; no reliance on secondary reports
● Singular strategy of value investing

Has this rulebook worked for Aequitas?
The numbers speak for themselves – Aequitas started in 2013, with 10 investors. Cut to May’24, we have over 120 investors and a CAGR of almost 34% since inception. Meaning that INR 1 mn invested with Aequitas in 2013 would amount to over INR 26 mn.

There is no magic formula to these numbers. We simply remain true to our original vision – our only goal is and will always be, maximising returns.

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