IndiaNivesh has announced closure of its PMS business. In a statement, the company said, “IndiaNivesh Investment Managers Private Limited, SEBI registered PMS arm has decided to close its current strategy which is Small Cap (Sprout) due to recent market turmoil and difficult economic circumstances due to ongoing Covid19 issues.”
The company has asked its clients to transfer their PMS holdings in their demat account. The company would sell holdings and credit the amount to the bank account of investors if they do not want to continue their PMS holdings.
The company was managing Rs.60 crore in its PMS business.
Mumbai MFD Tarun Birani of TBNG believes that investors should continue to hold their shares to avoid losses. “Assuming that the small call PMS would have a mix of small and mid cap stocks, which are generally illiquid, it would better if investors continue to hold their stocks and consult a financial intermediary. Even if they want to sell it, it is better to do in a staggered manner.”
Daniel GM, Founder, PMSBazaar doubts if the company has closed its PMS business due to market turmoil. “We have tried to reach out to top management to understand the core reason as it is difficult to believe that current market volatility due to covid-19 can trigger such a decision.”
He further said that investors should monitor portfolio and track the PMS performance regularly to avoid such situations.
The company has also shut down its broking arm.