Purnartha Investment Advisory: A Critical Review
As an experienced SEO specialist focusing on financial services, I find it crucial to analyze the performance and reliability of investment advisory firms such as Purnartha. My experience with Purnartha over the last three months has been overwhelmingly negative, and I felt it necessary to share my critical assessment with potential and current investors.
Performance Overview
Purnartha Investment Advisory has been among the worst-performing investment management services (PMs) I have experienced. Over a two-year period, the returns were almost zero, and they fall short even when compared to Fixed Deposits (FDs). Their stock performance is impressive when the market conditions are favorable, as they are adept at identifying multi-baggers (stocks with substantial gains). However, during periods of poor return, there is a lack of response; they neither provide explanations nor take corrective measures.
Analysis of Specific Performance
Two-Year Review: Investing with Purnartha PMs over a period of two years yielded minimal returns. While the portfolio did perform well when the market was favorable, it suffered significant losses during unfavorable conditions. The constant explanation of company-specific details, which investors don’t necessarily need, further detracted from the investor experience.
Personal Experience
Initial Investment: I initially invested 15 lakhs for a three-year plan, paying around 170,000 in fees. After three years and accounting for fees, dividends, and portfolio performance, my net gain was 2.1 lakhs, marking a marginal profit of 14%. This outcome is underwhelming, considering that a corporate Fixed Deposit (FD) at around 8% would have yielded double the return.
MISmanagement and Service Quality
My experience with Purnartha’s customer service was unsatisfactory. The investment managers are often busy and unresponsive. They are quick to forward emails to another team without addressing the customer's issues promptly. Their lack of follow-up and poor communication further diminishes their value proposition, as evidenced by the poor responsiveness to my inquiries and the failure to meet the expected performance goals.
PMS vs Mutual Funds
Comparative Performance: Purnartha PMs are typically more expensive compared to Mutual Funds (MF). My experience has shown that the Mutual Fund alternative provided similar long-term returns, staying within 4-5% compound annual growth rate (CAGR) of the Nifty index. This is not to say that Purnartha does not have the potential to deliver better returns in the future, but based on my past three months’ experience, it does not significantly outperform MFs.
Conclusion
Overall, my experience with Purnartha Investment Advisory has been negative. I would not recommend it to anyone seeking to create value or beat the Nifty index by a significant margin. The advisory service is too expensive, and the poor responsiveness of the investment managers is a significant drawback. If you are looking for a low-risk, low-cost alternative, you might consider mutual funds, which have provided similar returns with less risk.
Additional Considerations
When you invest in PMS, the fees and commissions paid are not tax-deductible. This is a notable point for those considering tax optimization strategies. The Purnartha advisors promised to meet a 25% return hurdle, but my experience shows that this was not achieved, and there has been a significant imbalance in overall performance.
Conclusion in Numbers
Forgoing FDs for PMS means you lose the advantage of guaranteed returns, especially in volatile market conditions. While there is the potential for higher returns in a bull market, the lack of response and transparency is a significant risk factor. In my case, a well-placed FD would have been a better choice, delivering double the returns and eliminating the need for risky investment strategies.
If you are a current or potential investor, it is crucial to consider all these factors before making a decision. Purnartha’s advisory service, while potentially offering better returns in the long run, is fraught with risks, and the lack of responsiveness and poor service further diminish its value proposition.