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ASK Indian Entrepreneur Portfolio

AIF & PMS Chatbot

Hello there!

Welcome to AIF & PMS Experts India Pvt. Ltd.

About company

ASK group was incorporated in the year 1983 now ask is leading player in the financial industry. ASK invest money by doing research and taking advice from assets management, private equity, and wealth management team. ASK has around 10 offices in India from there they give service to their client and they have also office in Dubai Africa Singapore etc.
The main focus of ASK is on work with long-term growth in the mind according to the needs of the customer and their risk capacity.

Fund Snapshot

Fund Inception 26 March 2010
Number of Stocks 19
Investment Horizon Long Term
Fund Managers Sumit Jain
Investment Style Long Only
Domicile Mauritius
Base Currency USD
NAV Frequency All Business Days
Investment Manager Enterprise Investment Managers Limited
Exit Load :
IEF T1 1% Upto 1 Year
IEF B 1% Upto 1 Year
IEF Institutional T1 1% Upto 1 Year
IEF T4 3% in Year 1, 2% in Year 2, 1% in Year 3, NIL after that
Minimum Subscription Amount :
IEF T1 $100000
IEF B $500000
IEF Institutional T1 $ 1 Million
IEF T4 $3000

Unique Feature

Invests mostly in businesses owned by promoters. The portfolio looks for high-quality companies with substantial growth potential and robust profit growth (without capital dilution). Strict commitment to an investing philosophy that is well defined, with an internal investment team that is strong and reliable. The research team produced a fund manager consistent with its investing philosophies. It has a track record of generating reliable returns for nearly 10 years. Being successful from the start. 

About ASK Investment Managers

Leading private discretionary money management company ASK IM is registered as a portfolio manager and investment advisor with the Securities and Exchange Board of India, Mumbai, and is subject to its regulation. Through segregated accounts and commingled funds, ASK IM invests solely in listed Indian equities on behalf of clients with residences both in India and abroad. High net worth individuals (HNIS), organizations, pension funds, endowments, sovereign wealth funds (SWFs), family offices, and multi-managers are some of the clientele that the company now serves.
The two main tenets of ASK IM’s basic concept are capital preservation and capital ation. ASK IM looks to make investments in Indian stocks managed by high-quality management that have sustained long-term growth potential and trade at fair and reasonable pricing.

Investment Objective

Investment Purpose IEF seeks to make long-term compounding investments in “Entrepreneur run enterprises” that are listed on Indian stock exchanges. IEF seeks to create better long-term wealth by investing in high-growth (listed) enterprises run by Indian entrepreneurs/families. IEF is a portfolio of high-growth, high-quality companies run by visionary and morally upright business owners who are skilled at distribution, capital allocation, and execution.

Key Investment Attributes

The following primary investing characteristics serve as the foundation for investments in ASK India Select Portfolio:

  • Size of Opportunity: Size of Pond vs. Size of Fish, Dominance, Resilience, Liquidity
  • Quality of Business: High quality of business (superior ROCE), Strong moat, Impregnability, Sustainability, Key pivot of strong wealth creation 
  • Earnings Growth: Quantum, Consistency, Durability, Predating (early vs later), Compounding power
  • Value: Favourable price-value gap, Margin of Safety
  • Management Quality: Good management quality is a given constant

Investment Process

The investment process is driven by a progressive culling of businesses from a larger universe based on particular standards that ASK emphasizes:

  • 500: Start with the top 500 as per market cap 
  • 306: Companies with >25% promoter/family holding
  • 210: Condition of minimum 100 Cr Trailing PBT
  • 123: subjective assessment of, among other things, corporate governance norms, capital allocation, previous performance, and managerial quality
  • 59: Robust filters with at least 25% ROCE (capital efficiency)
  • 20: Finally, a strategy for investing that includes 20 companies and is predicated on 1) earnings growth of 20 to 25 percent over the following three to five years without capital dilution and 2) a margin of safety of 20 percent on intrinsic value

Principles and Overarching Investing Philosophy:

  • More assurance of earnings vs a merely quantitative increase in earnings
  • The superior and constant quality of earnings as opposed to a merely quantitative rise in earnings
  • Superior quality at a fair price as opposed to subpar quality at an absurdly low cost

The investment Approach at ASK IM ensures:

  • Instead of valuing the price, price the value.
  • Investing with discipline in excellent companies
  • Assembling a portfolio of prospects for compounding
  • Purchase “growing” companies for “value” pricing.

The strategy is to purchase high-quality companies at reasonable costs rather than buying subpar companies for a bargain.

Investment Philosophy

  • The Advantages of ASK PMS “Investing is simple but not easy,” says Buffett. It is the consistent and disciplined execution of simple items in all market environments that needs character, and it is this that makes all the vital difference.
  • ASK Investment Managers’ central philosophy revolves around two main aspects:
  1. Capital preservation comes first (over time)
  2. followed by capital appreciation.

Investment Approach Objective

The core objective of ASK PMS is to build a concentrated portfolio of primarily mid-sized businesses with a proven track record, representing quality and superior long-term compounding potential.

  • Concentrated investment approach of 20-25 carefully identified businesses across range of market capitalization.
  • Focused portfolio of mid-sized businesses with a proven track record which could go on to become much larger thereby creating significant investment returns.
  • Buying businesses with a large competitive advantage & capital efficiency in industries with a large size of opportunity that offer superior growth over long period of time.
  • Largely complementary portfolio to IEP, India Select and Growth strategies.

The Capital Allocation Process

  • Identify large-scale and rapidly expanding business prospects.
  • Identify significant-sized enterprises with a competitive advantage (minimum PBT of Rs.100 crore): Allows for both market share and opportunity size growth, and may be sustained for several years.
    To be able to support rapid development through internal cash flow, the quality of the firm must be good.
  • Each firm we purchase should grow at least 20% compounded annually, and the portfolio should increase at least 25% annually.
  • To support this expansion, the company’s return on capital employed (ROCE) should be more than 25%, with surpluses for dividends.
  • Management should be motivated and have skin in the game in order to produce compounding growth year after year (uncompromised corporate governance is a must)
  • As a result, with a minimum 25% share, invest in enterprises with a well-known business house at the leadership.
  • We aim to find such firms at a modest discount to their intrinsic worth, stay invested for a long period, and profit as EPS compounds.

Risk Factors

The risk is associated with the investing goal, investment strategy, and asset allocation. As opposed to debt, equities represent a higher level of risk. While risk cannot be completely removed, it may be reduced via the use of a well-planned investment strategy. Through research-based investment, ASK Investment Managers Portfolios attempt to limit risk and achieve higher returns. 

However, due to a variety of factors such as negative market movements, portfolio management misjudgment, bad political or economic events, and so on, this goal may not be fully realised. The PMS is run with the goal of regularly achieving respectable returns. Given this context, an investor in the PMS bears the following dangers:

  • Political, economic and/or related risks

Changes in government policy, taxes, interest rates, social and religious instability, and other political, economic, or other developments in or affecting India may have an impact on the portfolio’s Asset Value and liquidity.

  • Industry risk

Changes in government policy on tariffs, FDI, or a foreign nation that is a major market for the sector may impose import restrictions, among other things, might alter the value of a company’s stock.

  • The Indian Securities Market

The Indian stock markets have seen significant price volatility in the past, and there is no guarantee that this would not happen again. The actual market trend may differ from the expected trend, therefore the Portfolio Manager’s actions may not always be lucrative. 

  • Liquidity Risk

Some of the equities in which the investor has invested may not be very liquid. Though PMS service providers will make every effort to keep investments in less liquid equities to a minimum, the investor will still be exposed to liquidity risk.

FAQ

Q1. How good is ASK PMS?

The portfolio performance of ASK PMS is quite appealing and satisfying. It aids the organisation in building a solid client base. Portfolio management service returns have also been capable of outperforming mutual fund returns over a 10-year period. ASK invests in accordance with a precise and disciplined mindset. As a result, the prospect of a positive return on the investment portfolio increases. The organisation maintains a strong relationship with each and every client in order for them to feel at ease when interacting with the company and to keep a long-term relationship with it.

Q2. How do I know if my financial advisor is good?

Investors who are keen and shrewd can question an advisor on these five essential topics:

Core Values

It is vital to learn about your advisor’s core values. A trustworthy advisor is one who believes in building a long-term connection with you rather than a series of commission-generating transactions.

Payment Plan

Make sure you understand how the advisor is charged for financial advice or transactions so you don’t end up handing over a portion of your savings to someone who isn’t looking out for your best interests. Is there a yearly fee? Are you paying for their services with a check each time? Or would the charge be withdrawn automatically from your assets by the advisor? Are you compensating the person according to their degree of performance? In addition, clients should receive an accounting of how much they paid the advisor for tax purposes.

Level of Expertise

You should look at someone’s education, business certifications, and a lot of advanced degrees for your personal comfort level as a customer. It’s also crucial to ensure that your potential advisor hasn’t had any run-ins with regulatory agencies, poor press in the business press, or a history of misconduct inquiries. Transparency is the essential term here, as it relates to one’s ability to trust someone.

Patience

Will your advisor take the time to clarify their ideas in a logical and patient manner? If you don’t understand your investments, especially if your advisor isn’t able or willing to explain them when asked, that’s a significant red flag. Advisors who take custody of an investor’s funds should be avoided at all costs.

Q3. What is the approx AUM of ASK PMS?

The ASK PMS fund’s manager normally manages roughly Rs. 18000 crore in assets under management (AUM) and 290+ clients. ASK PMS has a three-year minimum investment period for all clients.

Q4. Where can I check return or performance of ASK PMS?

On our website, you can quickly get the ASK PMS return or output. We present you with all statistical data, as well as the company’s ratings and success status, so you can make an informed decision. As a result, all of the available details may be discovered by simply finding the head.

Q5. What are the different strategies used by ASK PMS?

A big-cap strategy, a diversified strategy, and a small-mid-cap strategy are all available from ASK PMS. The ASK India Select Strategy is fuelled by opportunities to invest in high-quality, fast-growing companies. The long-term goal is to accomplish capital preservation and capital appreciation. The ASK IEP Strategy focuses on investing in Indian entrepreneurs. High governance, vision, execution, capital allocation, and distribution standards are used to select the defined ones.

Q6. What are the benefits of investing with ASK PMS?

ASK Portfolio Management Service is one of the most well-known asset management firms in the country. The company uses effective PMS procedures that have resulted in tremendously spectacular and satisfying results for its clients or investors. In order to meet the needs of its consumers, the company created customizable commission templates and investment slabs. Aside from the facilities, the company’s excellent support system is well-organized and beneficial to clients.

About Fund Manager

Mr. Sumit Jain: Portfolio Manager, ASK Investment Managers Pvt. Ltd.

Sumit Jain
Mr. Sumit Jain works for ASK Investment Managers Pvt. Ltd. as a Portfolio Manager. He has been with the firm for over ten years and is in charge of the Indian Entrepreneur Portfolio. In addition, he does business research inside the firm’s universe, seeking new investment prospects and monitoring their performance on a regular basis. He graduated from Mumbai University with a master’s degree in management science.

Meet the Team

Bharat Shah;Executive Director, ASK Group

Bharat Shah - Aif Pms Expert
Mr. Bharat Shah is the company’s Executive Director. He graduated from the University of Bombay with a bachelor’s degree in commerce and a postgraduat  diploma in management from the Indian Institute of Management in Calcutta. He is a member of the Indian Institute of Chartered Accountans as well as the Indian Institute of Cost and Works Accountants. He has been a member of the Board of Directors since 2008. He formerly worked at Birla Capital International AMC Limited and Asian Paints (India) Limited, and has over 24 years of investment management expertise

 

Prateek Agrawal:Business Head & Chief Investment Officer (CIO)

Mr. Prateek Agrawal is the Company’s business head and chief investment officer, and was appointed on April 4, 2011. He has a bachelor’s degree in engineering from Sambalpur University’s Regional Engineering College in Rourkela and a postgraduate diploma in management from Bhubaneshwar’s Xavier Institute of Management. He formerly worked as the vice president and head of research at SBI Capital Markets Limited, where he had numerous years of experience in finance and equity management. He has also worked with ABN AMRO Bank Asset Management (India) Limited and Bharti AXA Investment Managers Private Limited.

Nimesh Mehta:Director & Country Head – Business Development & Products

Webinar Invite ASK Nimesh Mehta
Nimesh Mehta is in charge of domestic business development for Equity PMS and Real Estate Funds, as well as overseas sales through the distribution network. He has over 20 years ofexperience in areas such as NBFCs, Equities, Asset Management, and Financial Services as a Commerce graduate, MBA, and Certified Financial Planner (CFP). He has worked for Motilal Oswal AMC, GE Money, and Godrej Appliances, and is the author of ‘Sales Booster’.

Fund Performance

Indian markets declined along with most other global equity markets after the US Fed signalled it would stop providing accommodative monetary stimulus and raise interest rates to combat persistently high inflation. As a result, yields on the bond market also rose sharply. The slump has been particularly severe for technology stocks.

The combined 3QFY22 profits of Nifty-50 businesses in the domestic market have thus far exceeded estimates. The investment businesses’ earnings to date have mainly been in line with expectations. So far, results have been reported by around half of the invested businesses. These companies, particularly Bajaj Finance and AU Small Finance Bank, continue to exhibit exceptional growth, asset quality, and margin performance.

The fund underperformed the benchmark in INR terms during the month. APL Apollo, Torrent Pharmaceuticals, PI Industries, Dixon Technologies, and Metropolis are among the top 5 underperformers. APL Apollo’s performance thus far has been in line with predictions, whereas Dixon and Torrent Pharmaceuticals have underperformed.

ASK anticipates that APL Apollo will expand its market share thanks to its size, which will give it an edge in acquiring raw materials, pan-Indian production and marketing, and a strong brand. This should result in higher ROCE and ongoing robust profit growth.

Due to rising freight costs in foreign operations, price erosion in US/export markets, the provision relating to failure to provide in the US, and under-absorbed administrative expenses, Torrent Pharmaceuticals’ profits fell short of expectations. However, India’s and Brazil’s key industries have shown to be quite resilient. While the US company should start to demonstrate improved performance once its Dahej and Indrad facilities receive United States Food and Drug Administration (USFDA) certification, ASK anticipate Torrent to continue growing faster than the market growth in India.

In large part, Dixon’s performance fell short of expectations because of lower than anticipated margins caused by a delay in passing on ongoing price increases for raw materials. Although the growth window is still extremely wide open, ASK anticipates the business will see rapid sales and profit growth over the next years.

In general, fund positioning tends to favour companies with a long growth runway and great execution skills. Even while some firms have temporarily affected their margins, they have exhibited great relative pricing strength, which could eventually allow them to resume robust, profitable growth. Business capital efficiency continues to be higher. ASK think that the expanding macro-opportunity will enable us to provide better returns over an extended period, especially as ASK is concentrating on bottom-up company concepts.

Product - AMC Category AUM (in Cr.) Performance 1M 3M 6M 1Y 2Y 3Y 5Y 10Y SI

ASK India Select Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 40,182
multi cap
(PMS)
4,243 Strategy 4.10 9.00 3.20 -2.00 22.60 16.40 9.60 18.90 16.10
S&P BSE 500 4.60 8.60 7.50 5.40 28.20 19.70 12.20 13.90 10.50

ASK Indian Entrepreneur Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 25-Jan-10
multi cap
(PMS)
21,149 Strategy 5.40 9.40 3.80 0.80 28.90 20.50 14.20 20.60 18.50
S&P BSE 500 4.60 8.60 7.50 5.40 28.20 19.70 12.20 13.90 10.80

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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.