The Hindu Business Line : Fortis Securities to rev up operations

FORTIS Securities Ltd (FSL), the stock broking arm of the Ranbaxy group, plans to scale up operations further, courtesy three newly launched portfolio management schemes (PMS) labelled Tortoise, Panther and Hawk Eye.

The schemes, currently being marketed in some cities, will require a minimum ticket size of Rs 25 lakh. A number of high net worth individuals have trooped in, the company has claimed. Thanks to the equity culture that has set in firmly, markets like Kolkata will shape up in terms of investments through the PMS route, feels Mr Kunj Bansal, CIO. FSL tries to cater to clients in various ways, depending primarily on their risk profile, he adds.

Tortoise, as the name suggests, aims at a gradual growth in the value of portfolio - a concept that may well appeal to an investor who adheres to the `low risk-low return' dictum. Panther and Hawk Eye target the `high risk-high return' and the `moderate risk-moderate return' categories. All three schemes try to use derivatives in varying degrees.

"We will utilise the services of other brokers and not depend too heavily on our own broking set-up. With that, we hope to stay away from any conflict of interest," Mr Bansal maintained.

As for the three schemes, portfolio turnover may well be a major differential, it is pointed out. A Tortoise client will see a fairly low turnover as his investments are expected to be made for a longer timeframe.

For Panther, however, it will be higher as there may be a continuous realignment of allocations. As for Hawk Eye, there will be a series of entry and exit, resulting in high turnover.

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