1. FAQ

Why should I invest in Portfolio Management Services (PMS)?

  • Advantage of exposure to equities as an asset class
  • Personalised/Customised solutions for HNIs
  • Regular client interaction regarding portfolio strategy, performance and market outlook

Who is an ideal investor in PMS?

The investment solution caters to a niche segment of clients. The clients can be individuals, HUFs or institutions with a high net worth. The offerings are ideal for investors who are:

  • Looking to invest in asset classes like equities, fixed income, structured products.
  • Desires customised solution for long term
  • Looking for a long-term solution with unprecedented level of service

Who are eligible for enrolling in PMS?

  • Domestic Individuals
  • Hindu Undivided Families (HUF)
  • Trusts
  • Non-Resident Indians (NRIs)
  • Institutions

How is PMS different from a Mutual Fund?

PMS Mutual Fund
Management Provides personalised access to professional money management services. Provides access to professional money management services. It cannot be customised.
Customised Portfolio can be tailored to meet specific client needs. Portfolio structured to meet the fund’s stated objective.
Ownership Clients directly own the individual securities in the portfolio. The trustee owns shares of the fund and cannot influence buy and sell decisions .
Minimum Invetsment Rs. 25 Lakhs Rs. 5000

For the initial corpus, can I transfer my existing stocks or a combination of cash and stocks?

Yes, you can transfer cash, stocks or a combination of both.

How frequently will I get updates on my PMS performance?

Clients will receive quarterly updates on the performance of the portfolio. Clients will be given access to a web portal where they can view their performance and NAV.

What is the tax treatment in PMS investment?

The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his / her tax advisor for the same.

What are the associated fees?

Most Portfolio Managers allow one to choose between a fixed and a performance-linked management fee or a combination.

Fixed Fee: If one opts for the fixed fee, he may pay around 2.50% p.a. of portfolio value; this is usually calculated on a weighted average basis.

Performance linked Fee Option: In the performance linked fee option, there is a fixed fee of around 1.5% to 2% along with a percentage of your profit - usually 20% - earned over and above a threshold level, which may range between 8% and 10%. Apart from management fees, separate charges will be levied example brokerage charges.

What are the rules for funds withdrawal?

Customers can withdraw funds anytime they want by giving a notice to us, as long as post withdrawal. However, we advise clients to give us at least a month’s notice to ensure that there is not too much of impact cost due to forced liquidation. Note that there will be an exit load fee if the funds are withdrawn within 3 years.

Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.

- Albert Einstein