Invest with Banyan Tree

Welcome to your investment journey with us.

Before we embark on this long-term financial voyage together, we encourage you to explore the Investment Philosophy section of our website. That section is central to our approach, reflecting the patience and discipline we see as key to achieving significant returns.

Understanding our investment philosophy is crucial in determining if our investment style resonates with your aspirations. If you find that our principles align with your investment goals, we would be delighted to discuss the next steps with you.

Reading our ‘Investment Philosophy’ section should have provided you with a clearer understanding of the principles that guide our decision-making process. You may now be curious to check the tangible outcomes that our investment process has achieved.

As of August 2024, Banyan Tree Advisors manages ₹ 5,782 crores ($690 m) of investments from 1,934 clients.

At Banyan Tree Advisors, we prioritize long-term investment performance, recognizing that true value is often realized over long periods of time rather than in short-term market movements. The chart below compares our investment returns against the NIFTY50TRI Index for the period April 1, 2008, and March 31, 2024.

You will also find information about our performance in our latest Disclosure Document. The Disclosure Document is an audited document that every Portfolio Management Service provider has to submit to the Securities and Exchange Board of India (SEBI) periodically under regulation 14 of the SEBI (Portfolio Managers) Rules and Regulations, 1993.

Our fee structure is straightforward and centred on the protection of your capital as also the growth of your investments. We earn our fees only when we enhance the value of your portfolio, ensuring our goals are directly aligned with yours.

We charge no fixed management fees. Our compensation is entirely performance-based. We also do not charge any entry or exit loads (expenses charged for joining or leaving our services). We also do not have any lock-in period. You can withdraw your funds any time you wish.

Performance Fee

Our performance fee is based on a concept known as the ‘hurdle rate’. Essentially, a hurdle rate is a minimum return threshold we aim to achieve. For us, this hurdle rate is 5%. We charge a performance fee of 20% only if the gains in your portfolio exceed this hurdle rate of 5%.

For instance, let’s say your portfolio gains 10% in a year. We will apply our 20% performance fee only on the 5% gain that exceeds our hurdle rate of 5%. In other words, the performance fee is charged on the difference between the actual gain (10%) and the hurdle rate (5%). So, if you gave us Rs 100 and your portfolio value is Rs 110 after one year, our fees would be Rs 1 plus the GST on Rs 1.

In years where the returns are below the 5% hurdle rate, no performance fee is charged. Moreover, if there is a shortfall (when the portfolio grows less than the hurdle rate), this shortfall must be compensated by future gains before we can charge a performance fee again. So, if you gave us Rs 100 and it is down to Rs 90 in year 1, the portfolio must grow from 90 in year 1 to at least 110.25 in year 2 before any fees are applicable. (The hurdle rate of year 1 will increase by 5% in the second year). This effectively means that we will charge a fee to clients only after they have made a 5% compounded return.

Fees are calculated and billed annually, offering transparency and simplicity.

This fee structure has been our standard since inception and across all clients irrespective of their size of investment . We believe it’s not only fair but also reflective of our commitment to your financial success. Our approach ensures that we are motivated to maximize your returns while carefully managing any downturns in the market.

The process of opening an account varies slightly depending on whether you are a resident, non-resident, or whether you wish to open an non-individual account, ensuring legal compliance and ease for each type of investor.

Please note that according to SEBI regulations, you must invest at least ₹ 50 Lakhs to start a Portfolio Management Services account with any PMS.

Choose from one of the three options below to read more about the account opening process.