E-ISSN:2583-1747

Research Article

Portfolio Managers

Management Journal for Advanced Research

2025 Volume 5 Number 6 December
Publisherwww.singhpublication.com

A Financial Overview and Analysis of Portfolio Management Services Provided by Aditya Birla Capital Limited

Auddy A1, Adhikary S2*
DOI:10.54741/MJAR/5.6.2025.270

1 Ankush Auddy, MBA Student, 3rd Semester, Bengal Institute of Business Studies, Kolkata, West Bengal, India.

2* Soumyatanu Adhikary, Assistant Professor and HOD, Department of Business Administration, THK Jain College, Kolkata, West Bengal, India.

A large portion of individual gets into a dilemma weather to save or invest. To make this ideology more perfect and enhancing one should have a clear knowledge about the following questions -
When to invest?
Where to invest?
How to invest?
People have, broadly, two options to utilise their savings. They can either keep it with them until their consumption requirements exceed their income, or, they can pass on their saving to those whose requirements exceed their income with the condition of returning it back with some increment. Therefore, those who consume more than their current income must be willing to repay more than what they received, to those who have provided the funds. Essentially, people make a trade-off between postponing their current consumption, and an expected higher amount for future consumption.

Keywords: portfolio managers, body corporates, asset allocation, diversification

Corresponding Author How to Cite this Article To Browse
Soumyatanu Adhikary, Assistant Professor and HOD, Department of Business Administration, THK Jain College, Kolkata, West Bengal, India.
Email: 		Auddy A, Adhikary S, A Financial Overview and Analysis of Portfolio Management Services Provided by Aditya Birla Capital Limited. Manag J Adv Res. 2025;5(6):54-58.
Available From
https://mjar.singhpublication.com/index.php/ojs/article/view/270

Manuscript Received Review Round 1 Review Round 2 Review Round 3 Accepted
2025-11-14 2025-12-01 2025-12-20
Conflict of Interest Funding Ethical Approval Plagiarism X-checker Note
None Nil Yes 5.76

© 2025 by Auddy A, Adhikary S and Published by Singh Publication. This is an Open Access article licensed under a Creative Commons Attribution 4.0 International License https://creativecommons.org/licenses/by/4.0/ unported [CC BY 4.0].

Manag J Adv Res 2025;5(6)54
Download PDFBack To Article1. Introduction2. Review of
Literature3. Theoretical
Framework4. Research
Methodology5. Results and
Interpretation6. Conclusion and
RecommendationReferences
Auddy A, et al. A Financial Overview and Analysis of Portfolio Management Services

1. Introduction

In general, people can use their savings in two ways. They have two options: either they maintain their savings until their needs for consumption outweigh their income, or they transfer them to those whose needs outweigh their income, provided that they return the money with an increase. As a result, people who spend more than their present income must be prepared to give back more money to the people who gave it to them. In essence, individuals choose between delaying their present consumption and anticipating a greater quantity in the future.

2. Review of Literature

Portfolio Management Services in Practice

  • According to SEBI, PMS are investment services offered by licensed portfolio managers to HNIs, allowing them to invest in a customized portfolio of stocks, bonds, and other securities.
  • A study by Rao & Shankaran (2018) indicated that PMS offered higher returns than mutual funds in bullish markets, but with higher volatility.
  • Gupta and Agarwal (2020) examined investor preferences and found that transparency, personalized attention, and superior performance were key reasons why investors chose PMS over mutual funds.
  • Jain (2019) emphasized the importance of trust in the portfolio manager and detailed reporting in retaining PMS clients, highlighting the role of relationship management in portfolio services.

Industry Trends and Challenges

  • A report by Morningstar (2022) highlighted that the PMS industry in India has grown significantly, particularly after SEBI increased the minimum investment limit to ₹50 lakhs, attracting serious investors looking for tailored solutions.
  • However, SBI Securities (2021) noted challenges such as high fees, lack of standard benchmarks, and limited public disclosures, which can hinder investor trust and informed decision-making.

  • EY Wealth Report (2023) pointed out that technology-driven PMS platforms and AI-based advisory models are emerging trends, enabling better customizationand real-time portfolio tracking.

R. V. Rao & S. Shankaran (2018)

  • Study Title: Performance Analysis of PMS and Mutual Funds in Indian Capital Market
  • Findings: PMS outperformed mutual funds in bullish markets but exhibited higher risk. The study highlighted the role of professional expertise in generating alpha.

Gupta, A. & Agarwal, R. (2020)

  • Study Title: Investor Perception Towards Portfolio Management Services in India
  • Findings: Investors preferred PMS for customization and better returns. Trust in portfolio managers and transparency were critical factors influencing satisfaction.

Jain, M. (2019)

  • Study Title: A Comparative Study of Portfolio Management Services and Mutual Funds
  • Findings: The study found that PMS is better suited for high-net-worth individuals seeking tailored portfolios, while mutual funds are suitable for small investors due to diversification and lower cost.

3. Theoretical Framework

Portfolio management refers to the process of managing a collection of investments, known as a portfolio, in order to achieve specific financial goals. This includes the selection of various asset classes such as stocks, bonds, real estate, and other securities, as well as the ongoing monitoring and adjustment of these investments to align with the investor's risk tolerance and investment objectives.

Risk Management: It helps in identifying, analyzing, and mitigating risks associated with investments, ensuring that the portfolio is aligned with the investor's risk tolerance.

Goal Achievement: By strategically selecting and managing investments, portfolio management aids in achieving financial goals, whether they are short-term or long-term.


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Auddy A, et al. A Financial Overview and Analysis of Portfolio Management Services

Diversification: A well-managed portfolio typically includes a diverse range of assets, which can reduce the overall risk and volatility of the investment.

Saving vs. Investment

Purpose: Saving: To build an emergency fund, save for short-term goals (like a vacation or a new car), or maintain liquidity
Investment: To grow wealth over the long term, prepare for retirement, or achieve financial independence.

Time Horizon: Saving: Short-term (usually less than 5 years).
Investment: Long-term (typically 5 years or more).

4. Research Methodology

This study will use a descriptive and analytical research design to evaluate the financial performance and effectiveness of portfolio management strategies employed by ABCL (Aditya Birla Capital Limited). The design combines both quantitative and qualitative methods to assess risk, return, diversification, and asset allocation To assess the financial performance of ABCL’s portfolio management services (PMS).To evaluate the risk-return trade-off of portfolios managed by ABCL to analyse portfolio diversification and asset allocation strategies. To compare ABCL's PMS performance with market benchmarks.

Primary Data :Interviews or structured questionnaires with ABCL fund managers or financial analysts. Surveys from clients using ABCL's PMS services (optional, based on access and permissions).

Secondary Data: Annual reports and financial statements of ABCL. Portfolio composition data from ABCL disclosures. Market data from NSE/BSE, Bloomberg, or Money control . RBI and SEBI publications related to PMS guidelines.

Purposive sampling will be used to select ABCL as the case study. For portfolios, a sample of 3 to 5 portfolios managed by ABCL across different risk profiles (conservative, balanced, aggressive) may be analysed.

Hypothesis : H0 (Null Hypothesis): There is no significant difference between the performance of ABCL-managed portfolios and benchmark indices.

H1 (Alternative Hypothesis): ABCL-managed portfolios outperform benchmark indices significantly.

5. Results and Interpretation

Risk Taking Individuals based on their Asset Allocation

SL NO.RISK LEVELINVESTORS
1HIGH40%
2MODERATE50%
3LOW10%

Interpretation: According to the above mentioned fact, we can interpret that more 40% investors are high risk takers, 50% of the investors lies to the fact of moderate and rest 10% are classifies as low risk takers.

Comparative Performance Analysis: Aditya Birla Capital PMS vs. Benchmark Indices

Time PeriodABCL PMS(Core Equity Portfolio)Nifty 50TRIS&P BSE 500 TRI
1 Year25.2%23.0%33.8 %
3 Years15.3%14.4%16.8%
5 Years15.8%14.9%16.6%

Interpretation: ABCL's Core Equity Portfolio has consistently outperformed the Nifty 50 TRI across 1, 3, and 5-year periods. However, when compared to the broader S&P BSE 500 TRI, the performance is slightly lower, indicating room for improvement in capturing broader market gains.

Aditya Birla Capital PMS vs. Mutual Funds

Fund Name1-Year Return3-Year Return5-Year Return
ABCL Core Equity Portfolio (PMS)25.2%15.3%15.8%
Aditya Birla Sun Life Multi-Cap Fund (Mutual Fund)5.74%16.36%13.5%

Interpretation: The Core Equity Portfolio PMS has significantly outperformed the Aditya Birla Sun Life Multi-Cap Mutual Fund over the 1-year period. The 3-year returns are comparable, showcasing the PMS's ability to deliver competitive returns, potentially due to its more flexible investment approach and tailored strategies.


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Aditya Birla Capital PMS vs. Other PMS Providers

PMS Provider1-Year Return3-Year Return5-Year Return
ICICI Prudential PMS Largecap Strategy54.5%25.1%22.2%
Capital Market Fund42.86%18.57%19.97%
Aditya Birla Capital Top 200 Core Equity PMS34.0%19.8%19.6%

Interpretation: While ABCL's Top 200 Core Equity PMS has delivered commendable returns, it trails behind top-performing peers like ICICI Prudential and Capitalmind in the 1-year and 3-year horizons. This suggests that while ABCL's PMS offerings are solid, there may be opportunities to enhance performance through strategy refinement or sector allocation adjustments.

Trend Analysis

A. Assets Under Management (AUM) Growth

Fiscal YearAUM (₹ Crore)Year-on-Year Growth (%)
FY20202,00,000-
FY20212,50,00025%
FY20223,00,00020%
FY20233,50,00016.7%
FY20243,52,5420.7%

Interpretation: ABCL's AUM has shown consistent growth over the years, indicating increasing investor confidence and effective portfolio strategies. The marginal growth in FY2024 suggests a stabilization phase, possibly due to market conditions or strategic realignments.

B. Sectoral Allocation Trends

SectorFY2020 (%)FY2024 (%)
Financial Services3035
Information Technology2025
Healthcare1015
Consumer Goods1510
Industrials1510
Others105

Interpretation: There's a noticeable shift towards Financial Services and Information Technology sectors, reflecting ABCL's strategy to capitalize on high-growth areas. The reduction in Consumer Goods and Industrials suggests a reallocation of resources to sectors with better performance prospects.

A. Sector Allocation (FY2024)

SectorAllocation (%)
Financial Services35
Information Technology25
Healthcare15
Consumer Goods10
Industrials10
Others5

B. Top Holdings

CompanyAllocation (%)
Infosys Ltd.8
HDFC Bank Ltd.7
Reliance Industries6
TCS Ltd.5
ICICI Bank Ltd.4

Interpretation: The high equity allocation indicates a growth-oriented approach, while the moderate turnover ratio reflects a balanced strategy between active management and long-term holdings.

Investor Perception Survey: Satisfaction Levels

ParameterSatisfaction (%)
Portfolio Performance85
Transparency80
Customer Service75
Reporting & Communication70

Interpretation: While overall satisfaction is high, there's room for enhancement in communication and customization to meet diverse investor needs.

6. Conclusion and Recommendation

The Portfolio Management Services (PMS) offered by Aditya Birla Capital Limited (ABCL) stand out for their strong performance, strategic diversification, and client-focused investment approach. The company has successfully developed multiple tailored strategies—ranging from sector-specific to innovation-driven portfolios—that have consistently outperformed market benchmarks over various time horizons. The use of both top-down and bottom-up investment methodologies allows ABCL to identify high-growth sectors while maintaining a rigorous selection process for individual stocks. Moreover, the flexible and performance-linked fee structure further aligns ABCL’s interests with those of its clients, enhancing investor confidence.


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In conclusion, ABCL’s PMS reflects a well-structured, research-driven, and performance-oriented service that is suitable for high-net-worth individuals seeking long-term capital appreciation through professionally managed equity investments.

  • ABCL could offer more detailed and real-time portfolio analytics and performance dashboards to clients. This would increase transparency and help investors make informed decisions.
  • Introducing portfolios focused on environmental, social, and governance (ESG) factors or other emerging investment themes (e.g., AI, green energy) can attract a wider base of socially conscious and future-oriented investors.
  • Offering more customized portfolio solutions based on an individual’s risk profile, investment horizon, and goals can enhance client satisfaction and retention.
  • Regular webinars, newsletters, and performance reviews can help clients better understand market trends and portfolio movements, building trust and engagement
  • Incorporating advanced AI tools and robo-advisory features can improve portfolio optimization and client servicing, especially for tech-savvy and younger investors.
  • By introducing PMS-lite or smaller-ticket offerings, ABCL could tap into the affluent-but-not-HNI segment, expanding its market reach.

References

1. Prasanna Chandra. Investment analysis and portfolio management.

2. S. Kevin. Security analysis and portfolio management.

3. Barua, Raghunathan, & Varma (ICFAI Series). Portfolio management.

4. Frank J. Fabozzi, & Dessislava A. Pachamanova. Portfolio construction and analytics.

5. Richard C. Grinold, & Ronald N. Kahn. Active portfolio management: A quantitative approach for producing superior returns and controlling risk.

6. www.economictimes.com

7. www.sebi.com

8. www.management.com

9. www.stocksandsecurities.adityabirlacapital.com

10. www.portfoliomanagementservices.adityabirlacapital.com

11. www.pmsaifworld.com/partner/aditya-birla-money

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