The Hindu Business Line : Motilal Oswal plans hedging scheme for PMS investors

BROKING house Motilal Oswal Securities (MOSt) plans to offer a new portfolio management scheme aimed at clients who wish to tap hedging opportunities.

Value Hedging, as the scheme is likely to be christened, will complement MOSt's current efforts on the PMS front. The brokerage already offers two schemes - Value and Bull's Eye - each meant for a specific set of investors.

MOSt, according to Mr Manish Sonthalia, Vice-President, hopes to cater to a class of clients that is increasingly warming up to the idea of using hedging strategies more actively.

"We hope to attract investors who, having seen how wealth is being created through the PMS route, are becoming bolder by the day in terms of their appetite for risk," he said, adding that the firm has lately witnessed an increase in the number of PMS clients.

As things stand, Value PMS is aimed at those who enter the market with a long-term investment horizon. Bull's Eye, on the other hand, is meant for those who can stand moderate risk with the objective of securing decent returns from equities.

The firm is also looking at the possibility of working out a non-discretionary PMS, Mr Sonthalia said. "This will be introduced at a later stage. But given the trends that have been seen already, such a scheme should have its own following too," he said.

Portfolio management inputs are rapidly becoming an important part of the overall services provided by brokers, said Mr Piyush Kulshreshtha, Head, Brand Management, MOSt. This, in fact, is being seen as part of a general trend that has emerged, thanks partly to efforts put in by the likes of Kotak Mahindra.

"HNIs (high net worth individuals) are going in for PMS options in a big way. In fact, this has never been more evident," he said.

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