• 7 CATs FREE!
    If you earn 100 Forum Points

    Engage in the Beat The GMAT forums to earn
    100 points for $49 worth of Veritas practice GMATs FREE

    Veritas Prep
    VERITAS PRACTICE GMAT EXAMS
    Earn 10 Points Per Post
    Earn 10 Points Per Thanks
    Earn 10 Points Per Upvote
    REDEEM NOW

Defining my industry: Portfolio Management Services in India

This topic has 2 expert replies and 1 member reply

Defining my industry: Portfolio Management Services in India

Post
Hi, I am from India and would like to know how would the US b-schools categorize the Portfolio Management Services industry in India.

Key features of the business:

Only investments size larger than $37k (large amount in Indian terms) are allowed. Threshold of eligible investors is the investment commitment and not networth or annual compensation of an individual.
Investments can be pooled together or separately managed
Managed through investor's account and not fund's account.
Markets are not mature enough so, only long-only public equity exposure allowed. No derivatives allowed.
Various styles or specific sector exposures are allowed.
Can take concentrated positions but leverage not allowed.
There is 2 & 20 system for compensation.
Portfolios can be discretionary or non-discretionary. Most of the portfolios are discretionary.
Usually very small teams like PM, assistant PM, Investment associate & analyst.
Require sell-side research experience of 1-2 years to get in.
Tougher to get in than usual investment management businesses.

Also, there are very few hedge funds, like 5-6 in the whole of India and are allowed to trade only in derivatives but there are many mutual funds (established & mature businesses here) in India. There just 250 PMS in India with just 5-10 being of the size I work at.

I am currently working as a research associate in a PMS. I will be applying for a US MBA in the future and wanted to know how would the b-schools categorize such a business? WIll they consider it as a HF, AM or a subtype of any? Will an experience in such a company be competitive enough for US MBA? Also, how is PMS based on above description competitive against an MBA applicant with WE in IB or PE?

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

Senior | Next Rank: 100 Posts
Joined
27 Mar 2015
Posted:
68 messages
Followed by:
3 members
Upvotes:
19
Post
Hi there,

I think b-schools will categorize it with other asset management jobs, or non-banking finance jobs even more broadly. They are unlikely to understand all the nuances you list and that's OK, but they definitely will be familiar with other Indian applicants applying from that industry so it's not anything completely new. You ask if you'll be competitive applying from that industry, and yes you certainly can be, though whether or not you are competitive really doesn't depend much on your industry. It matters more how successful you've been, what contributions you've made, the leadership experience you've had, your academic credentials, your community involvement, etc. It is a holistic evaluation process, with no quotas or requirements for certain industries. So I'm not sure if I understand the real reason behind your question, but hopefully this is helpful to you.

Good luck!
Kate

  • +1 Upvote Post
  • Quote
  • Flag
Newbie | Next Rank: 10 Posts Default Avatar
Joined
19 Jul 2016
Posted:
7 messages
Post
Thank you Ms. Kate for your detailed reply.

I am an aspiring MBA candidate and will be joining an MBA program after completing 5 years of WE. I asked this question because I haven't seen many candidates with an experience in PMS. Yes, I will make sure my application on a holistic basis will represent leadership in both my professional & non-professional life and will make sure my GMAT score is on par/above the class average.

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

Senior | Next Rank: 100 Posts
Joined
27 Mar 2015
Posted:
68 messages
Followed by:
3 members
Upvotes:
19
Post
You're welcome. Good for you for thinking ahead! I think you'll be in a good position to apply in about 5 years and when it comes time you can highlight some of those unique aspects of the market you mention. Other things to be thinking about -- beyond leadership experience, try to get exposure to executives and clients as much as possible plus any international exposure would be a nice plus. Also make sure you have some involvement in activities or community organizations outside of work too, doesn't have to be NGOs, could be a professional networking or alumni organization, etc. but you'll want something to show you're a well-rounded applicant when it comes time. Good luck!

Kate

  • +1 Upvote Post
  • Quote
  • Flag
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • The Princeton Review
    FREE GMAT Exam
    Know how you'd score today for $0

    Available with Beat the GMAT members only code

    MORE DETAILS
    The Princeton Review
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh

Top First Responders*

1 fskilnik@GMATH 62 first replies
2 Brent@GMATPrepNow 62 first replies
3 Jay@ManhattanReview 50 first replies
4 GMATGuruNY 35 first replies
5 Rich.C@EMPOWERgma... 25 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

Most Active Experts

1 image description fskilnik@GMATH

GMATH Teacher

126 posts
2 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

99 posts
3 image description Max@Math Revolution

Math Revolution

90 posts
4 image description Jay@ManhattanReview

Manhattan Review

84 posts
5 image description Rich.C@EMPOWERgma...

EMPOWERgmat

63 posts
See More Top Beat The GMAT Experts