Imagine having a financial plan that not only supports your goals but also helps you get there efficiently. 

Bonanza Aegis and Edge PMS have proven to be exceptionally effective in the ever-changing world of investments, providing custom solutions that meet the financial objectives of each individual.

Similarly, 75% of thematic PMS strategies have recently produced alpha over the Nifty 50, demonstrating their potential to beat benchmarks. 

In this blog, we will go deeper into how Bonanza Aegis and Edge PMS can be instrumental in navigating the complexities of the financial market, ultimately driving you closer to your financial objectives.

What Are Portfolio Management Services (PMS)?

 

Portfolio management services, also known as PMS, provide investors with personalised investment solutions to assist them reach their financial objectives. 

Investment portfolio managers look after the investment portfolio, whereas portfolio management services build investment portfolios across a range of investment possibilities. 

By concentrating on the time horizon, risk profile, and investment goals, portfolio management services assist investors in maximising returns with expert wealth management over an extended period. 

Since portfolio managers create custom portfolios by considering investment horizon, risk tolerance, liquidity, and taxes, many High-Net-Worth Individuals (HNIs) choose portfolio management services. Additionally, organizations providing PMS services must register with SEBI to prevent fraud and malpractice.

HNIs, HUFs, partnership firms, NRIs, associations of persons, sole proprietorships, and others favour portfolio management services. A minimum ticket size for investor portfolios is specified by portfolio management providers. 

For example, in 1993, PMS had a minimum ticket price of Rs 5 lakh, which was later raised to Rs 25 lakh. Additionally, in November 2019, SEBI increased the PMS ticket price to Rs 50 lakh.

Types of Portfolio Management Services

1. Discretionary PMS

   – The portfolio manager makes all investment decisions on behalf of the client, including buying, selling, and portfolio allocation.  

   – Clients cannot directly control individual transactions but can set overall investment goals.  

   – Ideal for clients who prefer a hands-off approach with professional management.

2. Non-Discretionary PMS

   – The portfolio manager provides advice and recommendations, but the client has the final say on all investment decisions.  

   – Best suited for clients who want to maintain control but seek professional guidance.  

   – Offers a balance between expert advice and personal decision-making.

3. Advisory PMS

   – The portfolio manager provides strategic advice and helps clients in decision-making, but the client executes the transactions themselves.  

   – This service is generally more cost-effective than discretionary PMS, as it offers less active management.  

   – Suitable for investors who want expert insights while managing their investments.

Each type offers varying degrees of control, involvement, and expertise, allowing clients to choose according to their investment preferences and risk tolerance.

Why Choose Aegis and Edge PMS for Your Investment Strategy?

By combining personalised risk management with strategic insights, Aegis and Edge PMS provide a custom approach to investing. 

These services, which include tactical, momentum, and value recommendations, concentrate on high-potential companies and are for investors who want both growth and stability. 

With a data-driven strategy and knowledgeable portfolio managers leading the charge, Aegis and Edge PMS seek to minimise risks while generating exceptional returns. 

Choosing Aegis vs. Edge PMS will help investors improve their investment approach with a balanced, well-structured portfolio that beats the market.

Unique features of the 2 PMS.

Aegis PMS

1. Investment Strategy for Aegis PMS:

Finding high-growth companies with significant potential to beat the market is the main goal of Aegis PMS. The method chooses stocks that are in position for growth by combining technical indicators and fundamental analysis.

Focus Areas: 

Businesses having a strong market position and promising earnings growth are sought after by the strategy.

Aegis uses a mix of momentum-driven investments and tactical choices, or short-term opportunities, supported by data-driven analysis with proprietary technologies.

2. Risk Management Approach: 

One of Aegis’ main tenets is risk management, which makes sure the portfolio is evenly distributed over industries and asset classes to reduce downside risk.

By using advanced tools to evaluate market movements and striking a balance between growth and value picks, Aegis aims to safeguard assets.

3. Portfolio Composition: 

Both growth and value investments are intended to yield benefits from the portfolio structure:

• 80–90% in growth-oriented stocks, or businesses with a strong chance of steady expansion.
• Up to 20% in turnaround equities, which are businesses with promising long-term growth prospects but short-term difficulties.
• Up to 10% in momentum stocks, which have robust technical indicators pointing to near-term growth.
• Aegis usually makes investments in small- and mid-cap stocks, taking advantage of their market growth potential.

4. Use of Proprietary Tools: 

Aegis PMS successfully combines technical and fundamental analysis for stock selection by identifying firms with strong growth potential using proprietary models and tools. These resources assist portfolio managers in spotting new possibilities and staying ahead of market trends.

Edge PMS

1. Investment Strategy:

Edge PMS invests in small- and mid-cap firms with strong growth potential to achieve long-term capital appreciation. The goal of the strategy is to profit from businesses with strong earnings growth, frequently found in specialized markets or growing industries.

Key attributes:

• Finding businesses with solid fundamentals that are of low value and have room to develop over the long run is the goal of the strategy.
• It employs a bottom-up approach to stock selection, focusing on specific businesses as opposed to general macroeconomic patterns.

2. Emphasis on Sustainable Competitive Advantages (Moats): 

• Aegis concentrates on businesses that have economic moats, also known as sustainable competitive advantages. These moats may include advanced technologies, powerful brands, or market positioning that shield them from rivals.
• This increases the possibility for growth by guaranteeing that the investments made have a sustained advantage in their particular markets.

3. Combining a Top-Down and Bottom-Up Method:

• While bottom-up analysis concentrates on choosing businesses based on their competitive stance, development potential, and financial health, top-down analysis entails comprehending more general economic trends and industry dynamics.
• By concentrating on individual stocks with outstanding financials and long-term value creation, Edge’s integrated methodology assists investors in identifying industries with significant development potential.

4. Portfolio Composition: 

• Mid and small-cap companies, which often provide better returns because of their growth potential, make up the majority of the Edge PMS portfolio. 
• In order to take advantage of opportunities in industries that are ready for growth while controlling risk, the approach strikes a balance between growth and value stocks.
• Although they serve diverse investment profiles, both techniques provide Custom Portfolio Management with the aim of producing greater returns. 
• While Edge is more focused on high-growth, smaller businesses with solid foundations for long-term capital gain, Aegis strikes a mix between tactical and long-term investments.

Overview of Aegis and Edge PMS

One of the top wealth managers in India Bonanza Wealth Management offers two distinct Portfolio Management Services (PMS) strategies: Aegis and Edge.  

These strategies provide investors seeking specialized investing options that fit their risk tolerance and financial objectives.

Aegis 

Investment Philosophy of Aegis PMS:

• Finding high-growth companies with the ability to beat the market is the goal of Aegis PMS. The method chooses equities with high growth potential by combining technical indicators and fundamental analysis.

Composition of the Portfolio:

• The Aegis strategy focuses on businesses with solid fundamentals and typically allocates 80–90% of the portfolio to growth-oriented stocks.
• About 10–20% of the money investment is turnaround equities, which are businesses that are changing or that are having short-term difficulties but have the ability to expand in the long run.

Additionally, it includes momentum stocks, which are fueled by technical strength and short-term market movements.

Risk management:

• It is the cornerstone of Aegis, guaranteeing a diversified portfolio review resilient to market swings. The downside risk is reduced through the deployment of unique tools and data-driven insights.
• Performance: Although Aegis is a relatively new strategy, its goal is to provide robust returns by combining growth and value assets in a well-balanced manner. In order to assess its efficacy, investors are encouraged to track its performance over time. 

Edge PMS: 

Investment Philosophy: 

• Edge PMS prioritizes mid- and small-cap stocks with strong earnings growth potential and adopts a long-term growth strategy. The focus of this approach is on identifying cheap stocks with promising growth paths.

Portfolio Composition:

• Edge PMS focuses on equities that have proven to be able to outperform the market, giving special attention to businesses with solid financial records, steady profits, and long-term business plans.
• Businesses having a competitive edge in their sector benefit from the approach, which enables them to sustain growth even in difficult market circumstances.

Performance

• Since its launch in 2015, Edge PMS has demonstrated a solid track record of success, emphasizing long-term capital growth. 
• Investors are advised to contact Bonanza Wealth for personalised performance updates, even though exact performance numbers aren’t always accessible online.

Client-oriented approach  

• Client-centricity is key to Bonanza Wealth Management’s business practices. They support the development of personalised investment plans that complement each investor’s particular financial objectives.

Tailored Investment Solutions: 

• Every customer gets a custom strategy with tactics made to meet their unique requirements. Bonanza’s PMS products are adaptable enough to accommodate a range of risk profiles, whether investors are seeking rapid growth or consistent returns.

Frequent Reporting & Transparency: 

• Bonanza makes sure that clients receive transparent and unambiguous reporting as well as frequent updates on the performance of their portfolios. This gives investors the information they need to monitor the performance of their investments and make wise decisions.

Dedicated Relationship Managers

• Each investor is matched with a dedicated relationship manager to significantly improve the client experience. This guarantees that customers can get professional guidance, personalised assistance, and prompt answers to any questions or issues.

Long-Term Client Relationships: 

• Establishing enduring ties with clients is a top priority for Bonanza Wealth Management. They collaborate extensively with investors to comprehend their changing financial requirements and modify their approaches accordingly.
  

Both Aegis and Edge PMS from Bonanza Wealth Management address distinct investor objectives, whether you’re looking for long-term growth potential through small and mid-cap stocks (Edge) or a balanced combination of growth and risk management (Aegis). 

Their customer-focused strategy guarantees that investors get the consideration and wiggle room they require to reach their financial objectives.

For the most up-to-date information on past performance and investment details, it is highly recommended to visit Bonanza Wealth Management.

Understanding the Core Strengths of Aegis PMS

By concentrating on companies that have a high chance of outperforming the market and their competitors, the Bonanza Aegis Strategy  aims to provide higher returns. However, this method integrates strong risk mitigation strategies and stresses a diversified portfolio management approach.

Diversified Portfolio Management Approach: 

To successfully manage risk and return,  Aegis PMS uses a diversified investing approach. 

Important elements consist of:

Asset Allocation: 

• Based on their technical and fundamental advantages, the portfolio mostly consists of investments in small- and mid-cap stocks. 
• About 80–90% of the portfolio is made up of high-quality growth companies, 20% is made up of turnaround companies, and the remaining 10% is made up of momentum or tactical possibilities. 

Company Selection:

• To make sure investments are supported by strong financials and positive market trends, the approach concentrates on companies with strong fundamentals and technical indications.

Diversification: 

• The portfolio seeks to lessen the impact of volatility from any one investment by spreading investments across a range of industries and market capitalizations.

The Aegis PMS uses several techniques to control and reduce risks, including:

Proprietary Tools: 

• The approach integrates technical indicators and fundamental analysis to make well-informed decisions by using proprietary tools to evaluate and choose investment possibilities. 

Frequent Monitoring and Rebalancing: 

• To make sure the portfolio is in line with the investor’s goals, it is regularly monitored. To preserve the intended asset allocation and react to market fluctuations, periodic rebalancing is carried out.

Risk Assessment: 

• To identify possible risks connected to each investment and enable proactive management and mitigation, the plan incorporates a thorough risk assessment procedure.
• The Bonanza Aegis Strategy promises to give investors a balanced portfolio that aims to achieve higher returns while successfully controlling potential risks by combining a diverse investing approach with strong risk management strategies.

Reasons Why Aegis PMS Is a Game-Changer for Investors

Selecting the best approach is essential in the field of portfolio management to optimize returns and efficiently control risks. For investors, Bonanza’s Aegis Strategy is revolutionary because it provides a special blend of high growth potential, professional risk management, and diversification.

Here are some reasons to think about adding Aegis PMS to your investment portfolio and why it is causing a stir in the investment world.

1. A Strategy for Diversified Portfolio Management

Aegis PMS’s diverse approach to portfolio management is its primary strength. Aegis is not only dependent on any one sector or kind of stock. 

Rather, it meticulously strikes a balance between a variety of momentum, value, and growth companies to produce higher returns while lowering risks.

Focus on Growth and Value: 

Aegis invests between 80-90 % of its portfolio in reputable growth companies with strong foundations. Usually, these companies are anticipated to expand quickly, providing investors with an opportunity to profit from their potential. 

Turnaround businesses—companies that are undertaking a positive change and have the potential for considerable growth—make up about 20% of the portfolio.

Sectoral Diversification: 

Aegis also makes certain that a variety of sectors will represent in the portfolio. Regardless of the industry—technology, pharmaceuticals, manufacturing, or consumer goods—the technique lessens the impact of stock or sector volatility. 

This diversification ensures that growth is distributed throughout several market areas and shields investors from substantial losses brought on by sector-specific downturns 

Focus on Mid-Cap & Small-Cap Equities: 

Although large-cap firms are frequently regarded as stable, Aegis searches for chances in mid-cap and small-cap equities that might not be well-known to the general public yet.   

These companies tend to have greater growth potential, which makes them a desirable option for investors looking to optimize their long-term gains.

2. Sturdy Framework for Risk Mitigation

Aegis PMS is aware that minimizing risk is just as crucial as aiming for large profits. In order to achieve this, the strategy heavily emphasises risk management using a number of tried-and-true techniques that safeguard investors’ money.

Proprietary tools: 

The utilization of unique tools for both technical and fundamental analysis is one of Aegis PMS’s most notable aspects. These tools enable more intelligent decision-making by examining possible investments from a variety of perspectives. 

The PMS team can find high-potential stocks and weed out those with too much risk by combining quantitative and qualitative methods 

Constant Monitoring and Rebalancing: 

By conducting routine monitoring and rebalancing, the Aegis team makes sure that the portfolio stays in line with the investor’s goals. 

By taking a proactive stance, one can reduce exposure to underperforming assets, lock in profits from high-performing ones, and react to market fluctuations. Even in erratic markets, this guarantees that risk is managed.

Risk Assessment and Management: 

To analyse the possible risks connected to every investment, Aegis uses a thorough risk assessment procedure. The technique reduces the danger of making bad investment choices by continuously analyzing market developments and evaluating the financial standing of portfolio companies. 

Because their investments are constantly being watched over and managed, investors can rest easy knowing this.

3. Outstanding Historical Performance

Although it’s not always a guarantee, the best PMS strategies for financial success are frequently a reliable predictor of future potential. 

Nevertheless, across several periods, Aegis PMS has continuously outperformed the benchmark indexes, providing investors with outstanding profits.

Aegis has consistently outperformed the market:

• 1-Year Return: 11.08% 
• Since Inception: 18.06%
  Aegis outperforms the Nifty 50 TRI benchmark, which posted 10.09% for the previous year and 12.09% since inception, showcasing its reliable performance.

 (Returns as of 31 Dec 2024)

These returns demonstrate how successful its strategy is. Also, long-term investors find Aegis PMS to be a compelling option due to its reliable performance. 

The combination of diversity, cautious stock selection, and an emphasis on firms with significant growth potential is what has produced this excellent result.

By focusing on firms with excellent technical indications and fundamentals, Aegis makes sure that investments are in companies that are both financially stable and are in good-position for future expansion. 

4. Skilled Team for Portfolio Management

The proficiency of the personnel overseeing the portfolios is yet another strong argument for why Aegis PMS is revolutionary. 

Every choice is made by supporting extensive industry expertise and a strong grasp of market dynamics thanks to this wealth of experience.

To make sure that every investment is made with a thorough grasp of its potential. However, the team uses both technical analysis (using charts and technical indicators) and fundamental analysis (examining financial statements, market positioning, management quality, etc.). 

Even under erratic market conditions, this two-pronged strategy greatly increases the likelihood of choosing equities that will yield considerable gains.

Furthermore, the portfolio is not handled individually.   Rather, Aegis continuously assesses the state of the market, modifies its holdings, and adjusts for new developments. Investors have an advantage in the market since every decision is data-driven thanks to the tactical use of technologies and data analytics. 

The Edge PMS Approach: How It Aligns with Modern Investment Goals

Edge Portfolio Management Services (PMS) method is a prime example of a comprehensive strategy that fits with contemporary investment objectives in the ever-changing world of investment management. 

To satisfy the changing demands of investors, this strategy combines goal-based investing, active risk management, data-driven insights, customized strategies, and an emphasis on sustainable growth.

1. Data-Driven Insights

In the data-rich world, using data analytics is essential for making well-informed decisions. 

Making better decisions is made possible by the Edge PMS strategy, which uses advanced tools to evaluate enormous volumes of alternative and financial data in real time. 

This data-driven approach makes it possible to spot patterns and trends that guide investment decisions, maximizing profits while controlling risk.

2. Tailored Approaches

The Edge PMS strategy places a strong emphasis on personalised investing strategies since it acknowledges that every investor’s financial circumstances and objectives are different. 

Individual risk tolerance, time horizons, and financial goals are evaluated to create customized portfolios that satisfy certain requirements. 

By ensuring that investment plans are in line with individual objectives, this personalization increases the possibility of reaching desired results. 

3. Effective risk management  

Effective risk management is necessary due to the ever-changing nature of financial markets. To reduce possible losses, the Edge PMS strategy uses active management strategies, including diversification across asset classes and industries and strategic asset allocation. 

Because of its adaptability, portfolios can be adjusted in reaction to changes in the market, guaranteeing their resilience in a range of circumstances. 

4. Investing Based on Goals

The relevance and efficacy of the investment plan are increased when investments are in line with particular financial objectives. Using a goal-based investment framework, the Edge PMS strategy divides objectives into aspirational and necessary goals. 

This structure gives investors a clear road map by enabling the prioritizing of resources and the application of customized tactics to accomplish each goal. 

Through the integration of these components, the Edge PMS approach provides a whole investment strategy that aligns with the goals of modern investors by striking a balance between a desire for profits and ethical and responsible risk management.

Comparing Aegis and Edge PMS: Which One Is Right for You?

 

When choosing between Bonanza Aegis and Edge PMS, it’s essential to understand their distinct strategies, performance metrics, and how they align with your investment objectives.

Strategies for Investing

Aegis Plan:

Aegis PMS, which was introduced in May 2022, is centered on finding and funding companies that have a high chance of outperforming the market in the near future. 

This approach places a strong emphasis on risk management and is set up to profit from both value investments and tactical and momentum picks. 

With an emphasis on businesses with strong technical and fundamental characteristics, the portfolio mostly distributes assets among mid-cap and small-cap stocks.   

Hence about 80–90% of the portfolio is allocated to high-quality growth companies, 20% to turnaround companies, and the remaining 10% to tactical or momentum possibilities.

Edge Strategy:

Launched in August 2015, the Edge PMS invests in a diversified portfolio spanning market capitalisations with the goal of generating long-term capital appreciation. 

The strategy uses both top-down and bottom-up methods to find investment possibilities, concentrating on businesses with strong foundations and promising development. 

Hence, to reduce risks and take advantage of different market movements, the portfolio is diversified across sectors and industries.

Performance Metrics

As of December 31, 2024, the performance of both strategies is as follows:

Source: PMS Bazaar

Factors Affecting Decision-Making

Appetite for Risk: 

• Investors with a higher risk tolerance looking for significant growth potential may find the Aegis strategy. As its large allocation to mid-cap and small-cap firms appealing. 
• On the other hand, investors seeking a balanced risk profile would find the Edge strategy attractive due to its diversified approach across different market capitalizations. 

Investment Horizon: 

• Investors with a medium-term investment horizon may find the Aegis strategy appropriate due to its emphasis on tactical and momentum picks. 
• Longer-term investors will benefit greatly from the Edge strategy, which emphasizes long-term wealth appreciation through a diversified portfolio.

Market Preferences: 

• The Aegis strategy may appeal to investors who want to take advantage of new opportunities in the mid and small-cap sectors. 
• Conversely, the Edge strategy may be the choice of those who want diverse exposure across industries and market capitalizations in order to reduce risks.

Hence, your personal risk tolerance, investment horizon, and market preferences will all play a role in your decision between Bonanza Aegis and Edge PMS. Therefore, to make sure the chosen approach fits with your financial aims and investment goals, it is essential to speak with a financial counselor.

Steps to Start with Aegis or Edge PMS

1. Selection and Research

• Consider your time horizon, risk tolerance, and investing objectives.
• Examine the past results, asset allocation, and growth potential of the Bonanza Aegis and Edge PMS strategies.
• Additionally, for personalised advice, speak with portfolio management companies or financial advisors.

2. Eligibility Check for the Onboarding Process: 

• Make sure you have the required minimum investment, which in India is normally ₹50 lakh for PMS.
• Provide proof of income, investment mandate details, and KYC documents.
• Discuss portfolio choices and sign a discretionary PMS agreement.

3. Setting Up and Managing a Portfolio

• Using your investment profile and market trends as a guide, your portfolio manager will create the ideal asset mix.
• To safeguard returns, use techniques including diversification and periodic rebalancing.
• At last, use the PMS dashboard to obtain regular reports and insights.

Tips for Collaborating with Portfolio Managers

✅ Keep Lines of Communication Clear: Talk about your risk tolerance, liquidity requirements, and financial goals.

✅ Stay Up to Date: To understand investment choices, periodically examine market developments and portfolio changes.

✅ Have realistic expectations: Recognize that PMS is a long-term approach that is subject to market volatility.  

Frequently Asked Questions About PMS (Aegis and Edge)

1. What is the minimum investment requirement for Aegis and Edge PMS?

Both Aegis and Edge PMS typically require a minimum investment of ₹50 lakh. According to SEBI regulations for Portfolio Management Services in India.

2. How do Aegis and Edge PMS differ in investment strategy?

Aegis PMS focuses on high-growth mid-cap and small-cap stocks with tactical momentum picks. While Edge PMS adopts a diversified, long-term approach across market capitalizations.

3. Can I customize my portfolio under Aegis or Edge PMS?

No, In a discretionary PMS, the portfolio manager makes decisions on your behalf.

4. How often will I receive portfolio performance updates?

Investors receive regular performance reports—typically monthly or quarterly—along with real-time access to portfolio insights via an online dashboard.

5. What are the risks involve in PMS investments?

Like all equity-linked investments, PMS portfolios are subject to market volatility. Aegis carries higher risk due to its mid- and small-cap focus, while Edge PMS mitigates risk with diversification.

The Future of PMS: Trends to Watch

Personalized Strategies: 

There is an increasing need for investment strategies that are specific to a person’s risk tolerance and financial objectives.

AI & Data-Driven Decisions: 

More algorithmic trading, big data, and AI are being used to help investors choose stocks more wisely.

Market Adaptability: 

While Edge PMS targets long-term, diversified portfolios, Aegis PMS can attract mid and small-cap growth investors.

Regulatory Evolution: 

The PMS environment is being shaped by stricter compliance and investor protection measures.

Volatility Management: 

Volatility management places a strong emphasis on risk-adjusted returns and portfolio diversification to manage market swings.

Parting Thoughts

Therefore, both Bonanza Aegis and Edge PMS offer distinct yet effective investment strategies tailored to different risk appetites and financial goals. Aegis PMS provides high-growth potential through mid- and small-cap investments, while Edge PMS ensures long-term stability with a diversified approach. 

Whether you seek tactical opportunities or steady wealth creation, these PMS solutions can help you achieve your financial objectives. 

Unlock your investment potential with Bonanza Wealth!